SY Group Influence On Middle And Grass-roots Staff Incentive Compensation Structure Research

Compensation motivation research is one of the important subjects of corporategovernance, and payment structure is the key factor of employee motivation. Wage gaptheory, efficiency wage theory, human capital theory, expectancy theory, attribution theory,fair theory, etc., are important theoretic basis on studying the motivating influence oncompensation hierarchical organization and factor structure. According to above theories,enterprises should design an optimum incentive salary structure in order to improve thepayment motivation to employees. Different payment structures will produce differentmotivation effects. The reasonable pay structure can help enterprises to utilize the limitedcompensation resources and fully arouse the enthusiasm and creativity of all staff, therebypromoting enterprise performance.The designing on compensation structure is an important approach for an enterprise tomotivate employees. Under the guidance of related compensation and incentive theory, thisthesis deeply analyzes and generalizes the motivating influence of compensation structureto middle level and grass-roots staff of SY group through questionnaire and interviewmethod. The research results show that compensation hierarchical organization (rate ofchange of differential, wage change rate, coincide degree, etc.) and compensation factorstructure (e.g. payment elastic) are the most important factor to affect the salary incentiveeffect. Based on the analysis of SY group pay structure for middle-level and grass-rootsemployees on the basis of the incentive effect, this thesis proposes that SY group shouldadopt following methods, such as to reduce wage levels, to increase in wage change ratesand contact ratio and to expand the pay scale relate to individual performance in order toimprove the salary motivation to employees. This thesis take SY group as an example andthe conclusion will need more cases as well as the solid evidences to prove.