Research On Compensation Management For Diversification Strategy And Its Consistency And Synergy Mechanism

Diversification strategy has become an option for many enterprises during theirexpansion process. How to design a compensation system matched with enterprisemanagement strategy has become an important topic in theory or practice. Previousresearches, including strategic compensation theory, especially consistencies ofcompensations in diversification strategy and compensations synergy mechanism indiversification strategy, need go further. Based on the modern management sciencetheory and system science method, this paper focused on compensation strategy,consistencies and synergy mechanism with others in diversified enterprises. Finally,put a enterprise in our country as a case illustrated.Main work and innovations are listed as following:First, defined diversification strategy to identify different organizationalcharacteristics. The cooperation of compensation management systems indiversification strategy enterprises was systematically analyzed from aspects ofsystem goals, system influence factors, system input/output and system structure.Finally, a conceptual model of strategic compensation management for diversifiedenterprises was established based on the application of system methods.Second, established an intergrated evaluation model of compensationmanagement and strategy, and analyzed the matching elements between compensationstrategy and diversification one. The method of strategic-oriented compensation levelsand structure were proposed, as well as the strategic-oriented work setting andperformance evaluation. Then, the compensation system based on work setting andperformance were created. Finally, an intergrated method was developed aftersub-unit analysis in longitudinal or lateral dimensions.Third, based on emergence theory of complex systems, proposed a dominantlogic of strategic compensation management system synergy in diversified enterprises.At the same time, the order parameter concept of synergy in strategic compensationmanagement system was put forword. The operation mechanism of the orderparameter and generation mechanism of synergistic effects were analyzed. Besides,the synergy mechanism of strategic compensation management system for diversifiedenterprises was achieved based on the synergy platform.Fourth, association model between synergy degree of strategic compensation management system and its synergistic effects was established with structuralequation. Based on the decomposition coordination method proposed byDantzig-Wolfe, this paper established a mathematical programming model of synergyoptimization for the resource allocation in strategic compensation managementsystem diversified enterprise.Fifth, theoretical methods and models proposed in this paper were applied to acompany in Haikou, and the company’s compensation strategy management systemand collaboration mechanisms were designed. Moreover, compensation system werespecifically designed for sub-unit of this company-JS School.Finally, made a general summary of the study above and some prospects infurther researches.