Research Of Payroll Cost Control From The Perspective Of Utility Maximization

Payroll cost not only occupies a certain proportion in the cost of enterprise production, but also intertwined with employee motivation. With the improving of strategic position of human resources, human resource management has became a central part of the enterprise cost controlling and profit creation. But at present, the payroll cost controlling still faces two major problems,one of the problem ishowpayroll cost can be effectively controlled and saved in the case of asymmetric information,the other is how can we dominate certain human resource cost and meet the employees’utility better ordering to achieve maximum economic benefits.In allusion to these problems, this paper mainly researched and explored the methods of payroll cost controlling from two aspects:(1)This paper takes utility maximization of human resource as the starting point,and design the method of the total wages base with the purpose of realizing the company annual business targets. Controlling the total wages is a central part of the enterprise human resource cost management. Most enterprises generally control the total wages basing on the last year’s total wages and make the decision of this annual total wages’base through statistical analysis of labor allocation rate, the personnel rate, levels of human resources per capita, proportion of disposable income and other relevant indicators. This method is a kind of Afterwards controls means, but because the payroll cost has strong rigidity, once provided the downward adjustmentsin controlling and adjustingthe total wages, it tend to have a negative influence on employee’s work enthusiasm.In addition, if separate the determination process of total wages’base with the goal of enterprise management, it tend to against the direct incentive to staffs enthusiasm and initiative brought by payroll cost.This paper attempts to combine the completion of management goal with control of total wages’base,taking the asymmetricalinformationof the efforts and equality between enterprises and employees as precondition.According to "the method of Jointly determine the base" provided by professor Hu Zuguanginthe studying of the "Internal principal-agent",that is"HU theory",this paper tries to design themodel of "modifieddetermine method of joint base"so that motivates the employees to achieve maximum business goalsandobtain the corresponding highest wage level.what’s more, it also expects to realize the maximizition of enterprise’s wealth and employees’ compensation and finally maximizing the effectiveness of human resource cost.(2)Under the cases of total human resource costbeing constant, the different methods of distribution will produce different incentive to employees and eventually generate different economic benefits to enterprise.At the same time, the fair theory holds that employees’work enthusiasm is not only related to the actual payments, but also have a close contact with their attitude toward the distribution of the remuneration. Because the sense of fairness directly affect the staffs work motivation and behavior. This paper takes the core employees as the research object, studies the method of analyzing the pay equityand tries to adjust the key point of pay structure and pay levels,ordering to maximum retain and motivate the core staff so that creating the biggest value for enterprise.The above views is this paper’s two main lines of studying utility maximization of payroll cost controlling, I hope this research will produce some new revelation for the methods of human resource cost controlling, and eventually realize the economic benefit maximization and utility maximization undersome certain payroll cost controlling.