A Study On The Optimization Design Of The Incentive Pay System Of Trading Co., Ltd.

At present, the service industry has played a more and more powerful role in theeconomic development in the country. China has also created a policy andinstitutional environment for the development of the service industry. All of theseprovide a strong support for the development of the service sector, at the same timemany enterprises are facing severe challenges of sustainable development in front ofthis opportunity. Most companies have recognized that the human resourcemanagement and compensation management are very importance to creating acompetitive advantage for businesses in the fierce competition. However, many of thecompany’s managers could not design a reasonable, incentive pay system and can’tadministrative the compensation system. For this reason, the salary system can’t playits central role in the establishment of a core competitive advantage. Enterprises needto establish the pay incentive system to save the costs of development of humanresources, attract talents, retain talents, and create the competitive advantage.In this thesis, I have selected TH Trading Co., Ltd. as the research object. At thefirst, I have understood the company’s organizational structure and human resourcessituation. Then, I investigated the TH company’s incentive pay system status quo, andfound there were many problems and inadequacies in it after my carefully analysis.And then I optimized the design of the company’s incentive pay system from threeaspects of the basic wage system, the bonus system and the welfare system. Theoptimized pay system is combined with the development of the company and its owncharacteristics, it is designed under some relevant theories and the principles ofincentive pay system designing. Finally, the paper presents the implementation andsafeguards of the optimization design scheme. These all can not only help the THcompany further steady development but also provide some suggestions for othersimilar enterprises in the service sector to improve human resources incentivecompensation management.