Design Research, Based On Private Enterprises Pay Efficiency Wage Theory

First, a literature review is done about wage theory and compensation theory in this thesis and the efficiency wage theory is focused in details. Efficiency wage theory originates from the Economists' research on unemployment and wage stickiness at the end of 1970s. This theory explains why some companies are willing to pay their employees higher wage than the market clearing one. Compensation management theory is studied by considering both economics and management theory based on the shirking model in efficiency wage theory. Some conclusions are obtained about compensation management. The existing problems and corresponding resolution strategies are analyzed in the compensation management of some civilian companies using the efficiency wage theory as analysis frame. From the study about the actual compensation management system of some civilian companies, it is found that there are some urgent problems relating the compensation competitive ability and the incentive durability in quite a number of civilian companies. It is stated in the thesis that these problems should be comprehensively solved using enhancing the overall compensation level of employees, establishing dual career way and etc. At last, a case study is carried out to verify the theoretical analysis and the application of the obtained conclusions.