The Performance Assessment And Compensation System Design Of The China Railway Construction Engineering Group Installation Engineering Co.Ltd.

Along with the increasingly fierce competition in the construction industry, small and medium construction enterprises are faced with more and more complex competitive environment. Therefore, to establish an integrated human resources incentive system through reasonable and effective performance and compensation system design has become a key factor to strengthen the core competitiveness of enterprises. Good performance management system and compensation system will make employees to work more actively, enhance staff loyalty and the sense of belonging as well as effectively give play to the human resources in promoting the development of the enterprises. This paper sets the performance and compensation system design of the China Railway Construction Engineering Group Installation Engineering Co., Ltd. As the study object. It addressed to the existing problems of the two systems, made analysis and studies on them and strove to establish a practical and competitive performance assessment and compensation systems.Starting from the analysis of the flaws of old system, it took into account of the practical situation of the company and distributed the management objectives to the branches and employees through balanced score card (BSC) and key performance indicator (KPI) design. In this way it established a performance assessment system based on the key performance indicators. Performance appraisal system fully supports the company’s strategic objectives, the implementation of the management responsibility, mobilize the majority of employees to participate in the development of enterprises.Based on the job analysis and employees hierarchical design and combined with the department performances and grade compensation, the integrated and flexible compensation system was established. It integrated the strategic objectives, realized the correlated fluctuation of the company’s interests and the employee’s compensation and established a more scientific, reasonable and integrated compensation structure system. The new salary system to fully mobilize the enthusiasm of the staff, to break the "egalitarianism", highlighting the performance incentives.By implementing the performance assessment results in the compensation system the performance and the salary were tightly combined. It can motivate the employees actively and play a key function in promoting the entire indicators of the company.