Study On Compensation System Based On Mass Customization

Mass Customization (MC) has become the hot competitive strategy by more and more companies nowadays, because it can provide customers with their personalized products and service by high efficiency and low cost under mass production. As to face the changeable and dynamic competitive environment, it is a must for companies to gain the following production capacities: flexible manufacturing system for diversified products, low cost for low price and short lead time to meet customers'requirements, if they plan to implement the MC strategy. The key to realize is to have some skilled and educated people. But well round compensation & benefit (C&B) system is the most important and direct way to motive those key people.Firstly, the article introduces the original background for MC and C&B and their relevant theories; Secondly, studying on how to build up a competitive C&B system under MC strategy. It found that high talented employees are the first priority for the quick response to requirements personalized. Like design people need various and changing skills in new product development; shop floor people should be versatile and multi-skills; sales people must gain a certain technical know-how; management people have to be strong in problem-solving and emergency response. The company has to establish a group of employees with intensive knowledge, versatile skills and team working spirit by the good system of recruiting, training and motivation. To fulfill this, it needs a sound and competitive C&B system. C&B system under MC should be clear skill-oriented, high elastic pay structure and strong support on key process and people. Company E's practical C&B policy is to reach what MC requires and achieves good performance.