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Research on Compensation Structure of Small and Medium-sized Enterp-rises in the West of China

Author: YangLiHong
Tutor: TuXiaoTing
School: Guizhou College of Finance and Economics
Course: Business management
Keywords: Compensation Structure Compensation Strategy Compensation Management Compensation Satisfaction
CLC: F272.92
Type: Master's thesis
Year: 2011
Downloads: 177
Quote: 1
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Abstract


In the 21 century, talented people are the core for the competitive society. Compensation arrangement plays a great role in attracting and reserving the talents. Compensation structure, as one of the key compensation management factors, has an important effect on attracting and reserving the talent and enhancing organization performance. Consummating compensation structure in SMES contributes to improving the compensation competitiveness and attracting and reserving the talented.In the first place, the paper states represent the significance of compensation structure study based on SMES’uncompetitive compensation structure ,and the lackness of talent people. And then the paper has a simple overview in the compensation structure study theories. In terms of SMES’effect on the compensation structure, the paper analyzes the SMES’compensation structure, and put forward the problems, such as compensation structure designed without strategic thinking, imbalance in compensation structure because of the imperfect human resource systems,simple incentive approaches leading to the inflexible structure, and ineffective structure adjustment.The paper takes the case of DB Corporation in Guiyang, analyzes its compensation structure, and give several improving compensation proposes. Firstly, SMES should define its objective of design compensation structure according to their own stage of development; secondly, SMES should predefine its compensation rank arrangement in line with present positions and future strategic needs. Thirdly, SMES should establish different compensation structure for diverse staff groups. Fourthly, SMES should make innovation in welfare and properly adjust some employees’payment in accordance with the market level. At last, the paper puts forward some advises to help SMES establish sound compensation structure, for example,drawing up suitable compensation strategy to match the development, designing logical and diverse compensation structure, making the compensation structure much more flexible, reinforcing compensation management by ERM (Employee Relationship Management), and make compensation adjusting in good time.The emphasis of the paper is analyzing the current situation of SMES compensation structure, pointing out the problems, explore how to complete SMES compensation structure and boosting their competitiveness, so as to lay a sound foundation for the future develepment of compensation system.

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CLC: > Economic > Economic planning and management > Enterprise economy > Enterprise planning and management decision - making > Corporate Administration > Personnel Management
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