The Investigation On Compensation System Design Of Private Enterprises That Based On Efficiency Wage Theory

After years of development, China's private enterprises have made great achievements. However, there are still many non-standard and unscientific in Human Resources Management, especially the Compensation Management in private enterprises, which hinder the further development. In our country, Private enterprise's development is in "the capital primitive accumulation" to a certain extent the time. The capital was at the absolute dominant position, the capital wage labor was still the Private enterprise labor management relation true picture. As to the majority of private enterprise's compensation systems, the concept of human capital have not struck root in the hearts of the people. The staffs satisfaction of salary degree decline, the enthusiasm of labor input reduce, the high quality staff flows out, but the low quality staff floods the enterprise. Continuously for a long time hence, the Private enterprise will enter the vicious circle that the core staff outflow , the quality of staff decline and the performance of enterprises, the salary level drops. In order to solve the bottleneck problem , the first step is figuring out how to retain and motive talents in private enterprise , so the redesign and the construction of compensation system has great significance.Based on the research of the theory and model of efficiency wage, this paper applies efficiency wage theory to the compensation design, in order to make a try in the optimization of private enterprises' compensation system. In this way can not only understand the the basic idea of efficiency wage theory profoundly, but also enable us to obtain the beneficial enlightenment from the angle of enterprise's compensation motive.The paper reviewed the efficiency wages theory and the theoretical model, the domestic research tendency and the reference effect of the domestic and foreign related research . Next, The third chapter introduced the erroneous zone of compensation management in private enterprises, as well as problems which exists in the compensation management aspect. The fourth chapter is the core chapter of this paper, it introduced the private enterprise's compensation system design research which based on the efficiency wages theory. This chapter first analyzed the condition which Private enterprise should have in implementing the efficiency wage theory, next combined efficiency wage model and the enterprise life cycle theory to supplement and consummate the original Solow model, and after the analysis, has drawn certain conclusions. This part is also precisely the innovation institute of this article. Finally, in allusion to the question of compensation management aspect in private enterprise which have narrated in third chapter ,combined with the improved Solow model and the conclusion, proposed the optimized countermeasure of compensation management in private enterprise.