Research Of Compensation System Design: Case Study Of LH Group

Along with the vapid development of China’s economy in the recent years andthe constant development of socialist market economy, competition among companiesbecomes more and more fierce. However, the competition among enterprises is talentcontest, is the ability to integrate human resources, as no matter how sophisticatedtechnology, high-quality product or service is created by people. Whether to attract,obtain and make the most of the suitable talent, and make them create value forcompany, is the most vital factor for enterprise to win in competition. To achieve this,the key approach is to improve enterprise management mechanisms, especiallyemolument incentive mechanism, which plays a crucial role in it and reflectsenterprise’s principles and culture directly. Therefore, designing the suitable emolumentincentive mechanism for the enterprise development affects the success of enterprisestrategy.Real estate industry is increasingly competitive with relatively high gross profit.The study case, Zhongshan LH Real Estate Group (hereinafter LH Group), is a realestate development company at the fast-growing stage. However, its overallmanagement level, especially the human resources management is significantly laggingbehind its business development, and far from the needs of fierce market competition.Facing the principle contradiction between the enterprise development and the laggingmanagement mechanisms, it is extremely urgent to establish the scientific andreasonable emolument management mechanism to attract，keep the talented and to exertcompensation’s maximal efficiency. It can improve the overall corporate efficiency andprofitability, rebuild the fair, justice and reasonable enterprise culture, realize thetransformation to delicacy management, and thereby achieve the strategic developmenttarget.Taking the development status and strategic development target of LH Group forthe guidance, through studying the modern scientific theory and tools of emolumentmanagement, by the approach of Business Process Reengineering and the reconstructionof organizational structure, this thesis is a case study to design the emolument mechanism suitable for LH Group’s development and promoting the realization oflong-term strategic target. Hopefully, the thesis could provide a helpful reference ofemolument design for China’s large and medium-size real estate enterprises, especiallyfor the private-owned enterprises.