The Application Of Compensation Management Theory In Z Corporation

Sales department is the core resource of the traditional production and marketingenterprise, which gains its competitive advantage. Salary is the essence of corporatecontributions for employees’ compensation that reflects the market value of talent. Theincentive payment is the most important incentive method of the CompensationPerformance Motivation. The purpose of exploring compensation system’s reformationand innovation is to establish the settings of market competitiveness and internal equitycompensation system based on combining the actual situation and strategic needs. After itthe corporation can attract and retain businesses talent, motivate employees and achievethe long-term strategic objectives.Based on studying the theoretical research compensation system related, referring tocompensation management books,and combining with the characteristics of humanresource management of Z Corporation and compensation system status, this paperresearch and analysis Z Corporation existing compensation system and identify itsproblems. The root cause of the problems is lack of correct concept about salary system,mismatch of salary system and corporation strategy and missing standard of salary system.According to the principle of compensation design and process, this paper alsoredesign Z’s compensation system based on its compensation constitutes. New designincludes following actions: simplify the components of basic salary, emphasis on key jobs,standardize performance evaluation and promotion, set up new performance bonus, ensurepayment on time, remove unnecessary punishment, share the team bonus, focus on thefeedback after importing new salary and make the necessary analysis. This design allowsthe sales staff salary and performance payment to link performance appraisal resultsaccording to inefficient and flexibility principles for the performance of the companywhich impact the sales staffs directly. Improving the proportion of commission methodinspires the sales department staff enthusiasm and improves the efficiency of the company management. In addition, the optimization on compensation system enhancescompensation performance motivation of the original condition and takes goodemployment environment and human management. The optimization brings Z into newwould. It also confirms that a compensation system with optimized design associated withemployee behavior usually lead to higher individual performance and organizationalperformance.