Research On The Optimization Of Compensation System Of DB Auto Company

21century is the age of competition of human resource (HR), which plays a very important role at the age of knowledge economy. Competition did what is it? That is the talent competition. Now the key topic warmly discussed among enterprises is how to attract, inspire and keep their talents, and one of the most complex affairs is how to use remuneration the double-edged sword to do incentive talents. It is said that each manager and employee concern more about the compensation distribution. The disputes between the labor and the capital in the company is basically the balance of interests, especially after the establishment of China’s socialist market economic system, enterprise acts as a independent subject in the market economic behavior, assumes sole responsibility for its profits or losses, ego develops, and establishes a reasonable and effective compensation system, which fundamentally guarantees the HR advantages for the enterprises, and is also an important aspect of the core competitiveness of the enterprises.Nowadays build a set of "inside equilibrium, outside competition" compensation system is one of the core problems for each boss. A compensation system which is reasonable, scientific and fully embodies the principle of fair, competition and incentive is crucially important to achieve enterprises objective. There is no doubt that establishing a scientific, comprehensive compensation management system is of great significance for enterprises to promote core competitive ability and maintain sustainable development in the age of knowledge economy.The author comes from DB Auto Company, which is Sino-Japanese joint ventured and produces large passenger vehicles, and its parent company is one of the world’s top500companies. DB has achieved great success during8years operation, which benefits from the high quality product, the precise marketing and the high efficient management, and even more to an excellent staff group which is vigorous and with different domain and experience background. However, its compensation system that has run for8years neither match to the excellent group, nor suitable for the development of the enterprise. Such system has so many problems, if it is not timely solved, it will inevitably bring tremendous influence to the company. Therefore, the DB’s leadership makes a decision:DB Auto Company will carry out "compensation system of optimization" project in 2011.The paper takes the modern compensation and broadband salary theory as guiding theory, fully analyzes the real situation of DB, aims at inspiring talents, makes sinicization of broadband salary, and makes an optimization of DB’s compensation system. Besides, this paper also puts forward solutions to the existing problems of the DB compensation system such as optimizing DB’s former compensation system, setting compensation standard in accordance with each position’s important degree based on the broadband salary system, and giving full consideration to the differences of each employee’s performance, combines employee’s compensation with individual performance, trying to shape a culture-orientated environment emphasizes on employee’s performance and the master spirit of the enterprise, guiding the staff to constantly strengthen skill levels, promote business quality, and in order to ultimately achieve the optimization of enterprise’s allocation of human resources.The paper is composed by7chapters. The first chapter analyzes the paper’s background, purpose, significance, target, content, idea and method. The second chapter describes the compensation management theory, the evolution process, broadband salary theory and its application at home and abroad, and the possible compensation challenges for Chinese enterprises. The third chapter deeply analyzes the DB’s basic conditions, strategic analysis and general situation of HR management through SWOT analysis method, finds out both the advantages and disadvantages of HR management, and puts forward improvement countermeasures for the shortcomings. The fourth chapter analyzes the systems, regulations and management of DB’s compensation management system, mainly finds out the key problems of the compensation system, and gives suggestions on improvements. The fifth chapter makes DB’s compensation strategy and horizontal orientation development, redesigns the broadband and compensation system, and puts forward the method of the compensation budget and daily management based on the company’s situation. The sixth chapter, also the last part, summarizes DB’s safeguard measures for carrying out broadband salary, and proposes the optimization direction of the compensation system.This article deeply studies and discusses the setting of the compensation system for the large and medium-sized enterprises, which is of good consulting value for the compensation reform of the large and medium-sized enterprises and machinery manufacturing enterprises.