The Design Of Strategic Compensation And Demonstration Research Demonstration Research

In times of knowledge economy, the competition pressure makes more and more enterprises to gain competition advantages through HRM strategy. Compensation and rewards system play a key role in attracting, motivating and retaining employees. At present, However, about 90% of our business is based on the operation and management of the pay process operation. There are little company which based on the strategic management. The problem which about company performance and compensation of managers has been studied repearly, However, the combination of the various stages of their development strategies and competitive pay and a suitable strategy designed to meet the matching salaries strategic in the study was relatively small. In academia, national study of strategic compensation has basically followed the framework of the foreign study. Furthermore, the domestic theory of pay on the strategic issues of strategic theory is more introduced into China from abroad straightly or or use of Western theoretical framework for theoretical or empirical analysis of the practical issues. Pay Strategy stems from the company's core values and strategic management objectives, enterprises should pay its own unique strategy for different industries, different cultural identities and different stages of development. So compensation and rewards system based on enterprise Strategy will be of great value to improve competition advantages, reach business goals and supporting business strategy changing.In this paper, through the theoretical study of pay system, the author considered the issue of reword from the enterprise business strategy which as a starting point, using a systematic approach to the design of the pay system. Different strategic support different competitive strategy, Generally, There are three alternative business strategies enterprises (Edilberto- F-Montemayor. 1996) : cost leaders, innovators and the differentiators, and salaries are decided by the pay criterion, the standard payment of salary structure and system management (Gomez Mejía. 1988). This paper defined compensation strategy as mechanical strategy, the organic strategy and innovative pay strategy, And Enterprises in different stages of development requires different pay strategies. At these factors, The author started with internal coordination and external competition to establish strategic compensation system which including the establishment of wages, bonuses, pay and benefits in kind of personal promotions, job redesign, flexibility time, and tried to make the system subject to change and flexible by changing the pay system's rigid.In the part of demonstration research, the design of pay structure of company A follows following principles: the principle of fairness, competition, incentive, economic principles, legal principles and strategic principles. Meanwhile, according to the company located in the industry, the environment and their own characteristics, it is also guided by the following principles: the principle of transparency, the principles of promotion and the principle of stability. Through group discussion and interviews, questionnaires, the author finded the pay system defects of company A:①the system has no clear promotion, which is not conducive to the career development of employees.②the lack of internal fairness, which harmed the enthusiasm of the staff.③low competitive in the market, which resulting in higher staff mobility.④salary structure is too rigid,which harmed incentive function of the pay. On this basis, through the grasp of the company's pay system, the author sorted out the pay system design : First, a clear strategy for enterprises pay. Second, work analysis, job evaluation, the market survey. Finally, the salary structure of the pay system design and re-evaluation.At the end, the author also use the form of a questionnaire to survey satisfaction of the new salary system, which educed the following conclusion: This system combined the value of enterprises with the realization of the value of human. This new pay system changed the organization's operations and conduct of personnel, further solidified the relationship between employees and enterprises, improved employee satisfaction, strengthened the competitiveness of enterprises, and aroused more vitality. By doing this, the enterprise can break the limitations of traditional system of retrospective pay, improve enterprise performance, optimize the allocation of human resources, and enhance their core competitiveness.