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A Quantitative Study of Individual Factors Affecting Chinese Managers’ Compensation

Author: XuKai
Tutor: HuJunChen
School: Fudan University
Course: Business management
Keywords: Management Personnel Competition Individual Factors Encouragement
CLC: F279.2;F224
Type: Master's thesis
Year: 2010
Downloads: 317
Quote: 1
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Abstract

With the deepening of Reform and Opening Up and economic booming, our enterprise ownership form becomes more diversified, along with the change of the business objectives, the strategy, organization and performance of the enterprises, as well as the compensation system. As the mainstay of the enterprise, managers often determine the survival and development of enterprises.And a reasonable compensation standard for managers will enhance their positive,loyalty as well, and will effectively avoid the loss or short-term behavior. Therefore, based on 402 valid questionnaires, we analyses the correlation between characteristics of the management personnel and their compensation. Based on the combination on the basis of previous studies, combined with the actual situation in our country, all samples, the state-owned enterprise management personnel and private enterprise management personnel compensation is explored.According to the previous studies, and we do a regression analysis with the characteristics of the management personnel:age, gender, education,management level tenor and their compensation, while the unit’s ownership as a control variable.The results showed that:(1)In our country management personnel compensation and age is poured U-shaped relation.36-45 years old age is the highest income region. (2) In our country management personnel compensation has nothing to do with sexual factors, explaining the gender discrimination phenomenon in management personnel group is not as serious as workers, administrative personnel, (3)In our country management personnel compensation has a positive correlation with their degree. With the degree gradually increase, the compensation level also corresponding promote. However, the junior degree and senior degree managers have no significant difference with compensation; the state-owned enterprises’management personnel average compensation is higher than the average in private enterprises, (4) There is a positive relation between management personnel compensation and their management levels in our country. Especially enterprise owners and senior middle managers, lower managers’ compensation has great differences.Levels of management have a much outstanding influence for private enterprise management than on state-owned enterprise management personnel compensation, (5)The relation between the tenor and the compensation is not significant. For private enterprises, a manager with more than 10 years tenor has a obviously higher compensation than one who’s tenor is less than 3 years.Refer to the research conclusions, we give out our suggestions:(1)the government should improve human resource market mechanism, especially the entrepreneur and the professional manager market construction, and give full play to the function of market allocation. (2) As a manager must be improve their academic, accumulate experience and skill in their youth (younger than 45),to acquire higher levels of management, which seeks a greater chance of getting much higher compensation.

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