Study On Standardization Of Compensation Management And Process Design For State-owned Enterprises

Due to the advantages of standardization on unifying thinking, regulating behavior, improving management efficiency, the State-Owned Enterprises begin to enter the stage of building a comprehensive system of standardization. Compensation management, as an important part of Human Resource Management, is also includes in the scope of standardization. But the State-Owned Enterprises just completed the initial establishment of corporate standardization system, the degree of standardization and management level are at a primary stage. Most Managers tend to focus on the production, cost, safety, quality and other services which are highly correlated with profit surplus and easy to quantify, and ignore the importance of standardization of compensation management.At present, compensation management standardization has many shortages on position, content settings and control means. The overall degree of standardization is not high and it is lack of an effective solution to not only match the corporate status quo but also ensure the implementation of results, resulting in the high internal staff competition, low loyalty(especially for core talent) and high turnover rate. It also has a negative affected on internal equity and external competitiveness about enterprise’s compensation. Therefore, combining with the reality of the situation, designing a complete process to match the corporate status quo and easy to control for State-Owned Enterprises play an significant role on improving the standardization management level and ensuring the effectiveness of incentives.The main contents of this thesis are summarized as follows. Firstly, it summarizes the relevant theoretical knowledge on compensation management standardization by finding and sorting out the domestic and foreign literature of compensation and standardization management. And it mainly elaborates the contents of compensation management standardization, explaining the implications for State-Owned Enterprises to use standardization in compensation management. Secondly, this thesis summarizes the status of State-Owned Enterprises’ compensation management standardization, analyses the background and measures the State-Owned Enterprises always taking for compensation management standardization and then makes a summary on the achievement the State-Owned Enterprises getting in compensation management standardization at present. Thirdly, it depth analyses the problems of standardization utilizing in State-Owned Enterprises’ compensation management from 3 aspects: formulation, publication and implement. Finally, the thesis designs a work process based on the improvement and development of state-owned enterprise compensation management standardization, using the thoughts and ideas on Expectation Theory, Target Management Theory, Equity Theory, Contingency Theory and Risk Management Theory.