The Study Of Strategic Compensation System In FiberHome Telecommunication Technologies Co.

Profound changes have been taking place in today's world, and knowledge is one of the resources that become more and more important. With the speeding of the adjustment of the industrial structure all over the world, a kind of new economy based on knowledge is coming into being, which results in the noticeable changes in the organizational structure of the enterprises. Facing the complex and changeable operating environment, compensation management, a functional management, must serve the organizational strategic management. It is necessary for the compensation system to reinforce the corporation's competition advantage, and to help realize the corporation's purpose. The issue of compensation is a critical means of human resources management for a corporation. Applied properly, the compensation system will satisfy and encourage the employees, thus making the cost of human resources optimal and the enterprise develop fast. It is indispensable that a high-tech enterprise should make best use of the compensation system to stimulate the employees effectively. In this thesis, after an analysis of the compensation system of FiberHome Telecommunication Technologies Co., Ltd. (FiberHome Telecom), a public company, we arrived at the conclusion that some problems exist, such as the disconnection between the compensation system and the operating strategy of the enterprise, the lack of strategic plan in compensation management, and the lack of competitive ability in compensation orientation. Generally speaking, the compensation system of FiberHome Telecom only creates fairness inside the enterprise, but demands comprehensive and overall program. To solve this problem, this thesis proposes a strategic compensation system, studies the methods of establishing it, and provides five steps to establish this system: drafting the strategy, choosing tactics, arranging the program, designing the compensation and managing dynamically. Finally, on the ground of the operating strategy of FiberHome Telecom, we establish the practical strategic compensation system.