Compensation Design And Research Of HNCC

Under China's earlier market economy, the development of the state-owned enterprise depends on its original stable economic foundation, the support from the government and the high demands from the national market. Under a severely competitive market, the business development more relies on a high effective management system. In order to improve the capability of execution of business strategy and the internal management level, most of the state-owned enterprises managers primarily focus on setting up an effective performance management system and reasonable salary/compensation scheme.Firstly, the dissertation researches on the general performance evaluation and the performance management system theory, advanced performance management tools (e.g. some key performance evaluation indicators, etc) and also the rationality of salary scheme in theory. Secondly, the writer also interviewed the staff from the HeNan Province Calculation Centre (HNCC) about the present situation of the HNCC and the problems of its performance management system and find out such problems. For example, its performance management system only includes performance evaluation. The performance evaluation indication system is not integrated because it only concerns about the economic indicators, lacks of the management indicators and the financial indicators are not completed.Thirdly, combining the theory and the practice, following the"Man-oriented"basic modern performance management principles, based on the process management operation pattern, the writer devises the performance management system which core is evaluation of the key performance management indicators. Management staff, functional staff and workers are separately managed in the performance management system. The dissertation also provides a more detailed execution plan that includes the key stages and the relationship that has to be taken care of.Finally, the salary scheme system is also a self-development process. The substance of the salary scheme is active continuous communications in order to achieve the goal of departments and enterprises and improve the performance of both the enterprises and staff. The dissertation highlights that the salary scheme should keep in line with the business strategy and also satisfy with both the business needs and staff desires. It will improve the status and increase the value of the performance management within the organization. It will be positive to innovate the salary scheme as well.