A Study On Salary System's Problems And Improvement In A Shipping Company

In the environment of market economy, the competition of enterprises is the competition of persons with ability in the final analysis. How to attract, keep and make good use of them is a key problem in the enterprises' human resource management. The effective compensation system is the most powerful tool to attract, encourage, develop and keep them. In order to strengthen the energy of enterprises, raise their ability of competition and realize their persistent development, we should set up a scientific and reasonable compensation system which can play a good role in the function of encouragement.Based on the review of theories about manager compensation management and performance salary management, this essay analyzes the problems of compensation system of one shipping corporation, and finds problems in manager's annual-salary plan and headquarter's post salary system. The manager's annual-salary plan brings subsidiary manager's near-sight behaviour and consigner-agent conflict. Subsidiary managers prefer company's annual profits to persistent development. They try to reduce costs, raise annual profit to get more annual-salary, while they neglect jobs of company's persistent development, such as planning long-term investment, carrying out research & development and trainning clerk. The headquarter's post salary system is of no effect on performance evaluating. The evaluating object of headquarter is every branch, but not every clerk, which means that clerk in one branch get the same salary, no matter how they work hard. This system disobeys the theory of justice, harms clerk's enthusiam, makes they feel that they can't fulfill their ambition and then leave the company for another job, thus brings damages and difficulties of long-term development to the company.In order to solve above problems, this essay makes out domestic policies about compensation and carries out feasibility analysis, with reference to international enterprises and national well-run shipping companies. This essay draws out subsidiary manager's stock-appreciation plan and headquarter's performance salary system, which will fulfill the function of compensation, encourage manager to create long-term benefit and accord the goal of company & manager, increase sence of justice and satisfaction of clerk on compensation, thus promote manager and clerk's passion on work, construct a team with creativity and competition, raise company's competition power and realize company's persistent development.