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The Study on the Redesign of Y Company’s Salary System in Zhoukou

Author: HanBing
Tutor: DengZongBing
School: Southwestern University
Course: Business management
Keywords: The SMEs Salary system the design of payment The points classific
CLC: F272.92
Type: Master's thesis
Year: 2013
Downloads: 21
Quote: 0
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Abstract


Salary is an important part of company’s incentive mechanism. It plays an important role in improving employee job satisfaction and enhancing the company’s cohesion. Reasonable salary system not only can effectively stimulate employees’ enthusiasm and initiative, it also can improve the working efficiency and attract as well as retain talent employees in the fierce competition for talent. However, all employees of Y Company are performing the same salary system which based on the post grades; it’s not a reflection of the different contribution made by the different types of staffs. The old salary system is reducing the employees’motivation; it can also improve the rate of staff turnover. The study on Y Company’s salary system shows that the salary system does not take the differences functions of the different staffs into account. Based on this, the main research issues of this paper are:what is the foundation of the post classification? How to design a salary system according to the different types of jobs? How to make the implementation of the salary system successfully?The main research goals of this paper are:To reveal the main problems of Y Company’s salary system and its causes by making an empirical analysis on the existing salary system, Then, making a job classification according to Y Company’s developing strategy, and ensuring the redesign salary system is in line with the characteristics of various types of jobs. Finally we propose indemnifications for the new salary system.In order to achieve the research goals, the main research contents of this paper are:(1) To reveal the main problems existing in the salary system of Y Company, based on the review of the relevant literature and theory, we can reveal the main problems existing in the salary system of Y Company and its causes.(2) To redesign the salary system of Y Company according to the different jobs’function. On the basis of knowing the principles and the targets of the redesign of Y Company’s salary system, combining the developing strategy and the different jobs’function of Y Company, we can redesign the salary system of Y Company.(3) To propose indemnifications for the new salary system. In order to ensure the new salary system running successfully, we propose the corresponding indemnifications and corrective measures to ensure that the new salary system can effectively motivate employees, employee goals and company strategy will be implemented.The main conclusions of this paper are:(1) There are some problems in Y Company’s salary system such as:the prevalence of low remuneration positioning unattractive, the salary system is opaque, single allocation, the fuzzy job evaluation, the salary system has nothing to do with the performance appraisal and so on.(2) The remuneration system satisfaction survey results show that the key reasons which leads to the lower employees’satisfaction is the existing salary system does not consider the job functions.(3) Y Company should design different salary system for different posts. Among them, Administrative positions should imply the combination of post salary and performance salary system; R&D positions should imply the combination of Skill-based salary and performance salary system; Sales positions should imply the Commission-based salary system; First-line positions should imply the Piece-rate wage model-based pay system; Senior management positions should imply the annual salary system.(4) Y Company’s new salary system needs an excellent performance appraisal system; it also should improve the diversification incentives and enhance the monitoring on the salary 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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