| Founded in the 20th year of Jiajing in the Ming Dynasty(1541 AD),G Company is the Chinese traditional medicine enterprise with the longest written history in China,and enjoys the reputation of"living fossil of Chinese traditional medicine" for its nearly 500 years of uninterrupted inheritance.In 2006,it was awarded the title of the first batch of "Chinese time-honored brand" by the Ministry of Commerce of the People’s Republic of China,and is the only time-honored brand in the pharmaceutical industry of Shanxi Province.In 2020,it was recognized as a provincial specialized new "small giant" enterprise.Formerly known as Qinghai Tongren Aluminum Co.,Ltd.,it was listed on the Shanghai Stock Exchange in 1996.It is a listed company with strong regional influence and high market attention.In the past two decades,G Company has many problems in its business operation,such as gathering but not grouping,grouping but not living,large but not strong,and low efficiency,which have seriously affected its subsequent development.From July 2021,the actual controller of G Company will become the SASAC of S Province.After returning to state-owned assets,G Company adjusted its strategic development plan and optimized its internal organizational structure.However,the compensation system has not been adjusted synchronously,so that the compensation system has not played the role of incentive,attraction and retention.It lacks both external competitiveness and internal fairness,and has not effectively allocated the compensation resources to the key value creation links.At the same time,it is unable to effectively link the total compensation control with the company’s operating performance;Performance management can’t play a traction role.In terms of sales,indicators replace management,which seems to be quantitative but can’t be converted into organizational capacity.In terms of production,the overall wage level is low.In terms of research and development,there are many internal and external uncertain factors and the assessment indicators can’t be defined.In terms of functional departments,executive assessment can’t be linked with the business objectives.However,the optimization of the overall compensation performance system of G Company is a huge project,and it is difficult to complete the relevant research within the effective time.Therefore,the author focuses on the compensation optimization of the grass-roots managers in the headquarters.Based on the incentive theory,equity theory,human capital theory,and related theories of the Chinese medicine industry,this paper analyzes and evaluates the positions of the grass-roots management personnel in G Company through interviews and questionnaires.This paper puts forward the problems that need to be solved urgently in terms of faimess,transparency and rationality of the compensation system for the grass-roots managers in the headquarters of G Company,and analyzes the reasons for the disconnection between the compensation system and the enterprise strategy,the insufficient attention to the incentive of compensation,the lack of compensation communication and the imperfect performance appraisal system.In comprehensive consideration of the transition period of operation,the period of institutional change and the period of strategic opportunity in which G Company is located,the salary levels of different categories of personnel in G Company are determined by using statistical analysis and comparative analysis methods,through comparative analysis with the data of the pharmaceutical industry and listed companies in the same industry,and the salary hierarchy system of the middle-level and grass-roots management personnel in G Company based on the position is proposed,and the security measures are formulated.The optimized compensation system for the middle-level and grass-roots management personnel of G Company can stabilize the middle-level and grass-roots management talent team,stimulate the work motivation of employees by fully mobilizing the initiative and enthusiasm of employees,and then improve the core competitiveness of G Company,which is conducive to the healthy,sustainable and stable development of G Company under the support of national policies,and can also provide reference for the compensation system optimization of private enterprises in the early stage of mixed ownership reform. |
