Research On Compensation Mode Of Shanghai Electric Cable Research Institute Under The Background Of Reform

The director of Shanghai electric cable research institute, Mr. Wei Dong put forwardstrategy “Two systems in one institute” when he accepted the interview of <CapitalShanghai> in2012. It means we will let the science and technology development andservices to implement the system of modern scientific research institute, and let thedevelopment of high-tech industry to implement the system of modern enterprise. Both thetechnology services industry and product manufacturing industry will be developed parallel.For the strategy of “Two systems in one institute”, this paper propose appropriatecompensation mode of “Two salary systems in one institute”. It respectively designdifferent compensation mode which are suitable for development of these two systems, andimprove efficiency and motivation of different systems’ employees with effectiveassessment methods and incentives. Employees’ compensation level of modern scientificresearch institute will be decided by their knowledge’s ownership and contribution in theitems; Employees’ compensation level of modern enterprise will be decided by their salesand production. The paper also attempts to explore a cooperation mode between thedepartments of entities of these two systems which could increase the institute’scompetitive advantage. The paper wants to break the original single and dull compensationmode. It proposes working hour system and commission system of modern enterprise’semployees, and project responsibility system of modern scientific research institute’semployees. Although the compensation mode is different, the departments or entities ofthese two systems are interrelated. Really motivating all the employees in the Shanghaielectric cable research institute will be effective way on improve market competitiveness.