| The improvement of modern enterprise's economic benefit, not only relies on high technology, but also lies in the development and management of talent. Salary is the major incentive way in enterprise management, and compensation management is also important part in human resource management. Establishing reasonable and effective compensation system, not only can stimulate employees'enthusiasm and initiative effectively to promote the employees work hard to achieve organizational goals, but also can attract and retain good quality staff in an increasingly competitive market environment, and thus creates a better economic benefit for the enterprise.Basing on this topic, applying the Principal-Agent Theory, The Human Capital Theory, Equity Theory, and general principles on pay in Human Resource Management, adopting the method of combining theory with experience of foreign countries, the paper gives a systematic analysis on course and management situation of compensation reform in state-owned enterprises, at the same time, the author researches and studies superficially unreasonable status and countermeasures that executive compensation in state-owned enterprises are facing. Novelty of this paper is to propose that government should establish a state-owned enterprises'compensation system coping with socialist market economy, that is marketization of compensation system, and design compensation system suitable for enterprise features and make effective implementation. |
