Compensation System Study And Design For KR Company

KR Company is the leading enterprise of reconstitute tobacco industry in China, which faces serious challenges and important strategic opportunities under the remarkable change of china tobacco industry background. However, the compensation system of KR Company still uses the traditional method which has planned economic characteristics somehow. Now, this kind of system has been already impended the development of KR Company. Based on the tobacco industry background, this paper used salary satisfaction investigation to analyze the problems of KR Company compensation system, and then, the three major problems:internal inequity of position salary, insufficiency of performance salary and inflexibility of welfare system were analyzed.Aimed at the major problems, this paper optimized the compensation system of KR Company by four steps in which motivation theories and compensation management theories were used. First, this paper optimized the composition of human resources cost according to the performance based compensation strategy of KR Company. Secondly, this paper used scientific job evaluation methods of the Point-factor method and the analytic hierarchy process to study and design the new position salary. After the decomposition of corporate strategic targets, the Key Performance Indicator was introduced to establish the performance salary system thirdly. Finally, the welfare system was optimal designed by the welfare analysis and planning. By means of the four steps, we set up a new modern compensation management systems fit for KR Company in conclusion.This paper suggested a number of solutions to the three major problems of KR Company's compensation system, and the guarantee conditions of the new designed system also discussed. We realized the object of the research by set up an optimal designed compensation system for KR Company which has the characteristics of equity and motivation.