Compensation management

Author: Liu Hong
Publisher:
Publish Date: 2007-01-01
Features: The specific content arrangement of this book is as follows: First, the book introduces the concept of compensation and the composition of the compensation system, elaborates on the objectives, content, and development trends of compensation management. Starting from the second chapter, it explains the influencing factors and relevant theories of compensation determination. Taking the relevant theories of compensation determination in economics as the starting point, it summarizes the principles that should be followed in compensation formulation and analyzes the influencing factors of enterprise compensation formulation from the perspectives of internal and external environments of the enterprise and the individual employee. To help readers understand compensation management from a holistic systematic perspective, the third chapter first explains the differences between traditional and modern compensation systems, then elaborates on the strategic thinking of compensation systems, and then lists the general situations of compensation systems in several typical countries. Finally, it discusses the compensation systems under flat organizational structures, matrix organizational structures, and learning organizational structures in combination with the relationship between organizational structure and compensation systems.
Compensation design and management must comply with relevant laws and regulations. Compensation management professionals must understand the legal background. The fourth chapter of this book mainly involves the legal evolution of compensation systems. It systematically explains the legislation related to compensation systems in three parts. First, it introduces the historical evolution of compensation legislation in major Western countries, then introduces the four stages of compensation legislation in China, and finally summarizes the current main laws and regulations related to compensation in China.
After introducing the basic knowledge of compensation and compensation management in the first four chapters, the next part involves the principles and specific operations of enterprise compensation management practices. The fifth chapter begins to explain the foundation of compensation formulation—job analysis and job evaluation. It first outlines job analysis and job evaluation, then explains the process of job analysis, the collection of job information, and the specific results of job analysis. Finally, it introduces the process and methods of job evaluation, with a focus on highlighting the principles and application of the Hay job evaluation system. Job analysis and job evaluation are the main means to ensure internal fairness of compensation, while external consistency of compensation must rely on compensation market surveys.
The sixth chapter first elaborates in detail on the important guarantees for successful compensation surveys—meticulous preparation work, then introduces the specific methods of compensation market surveys, and finally summarizes the specific application of compensation survey results.
The compensation design orientation reflects the enterprise's distribution philosophy. The seventh chapter, while introducing compensation design, first outlines compensation design, then focuses on introducing three types of compensation design: position-based compensation design, competency-based compensation design, and performance-based compensation design.
Compensation is an important incentive tool. The eighth chapter introduces the content of compensation incentives. Compensation incentives can be divided into individual incentives, team incentives, and all-company incentive programs based on the target of incentives; long-term incentives and short-term incentives based on the duration of incentives; and intrinsic incentives and extrinsic incentives based on the form of incentives. Building on this, the eighth chapter focuses on introducing stock options in long-term incentives and team compensation in group incentives.
The compensation levels and structures of senior management within the enterprise have always been a focus of attention in both academic circles and management practice, and are currently a hot topic of research and discussion. The ninth chapter of this book introduces the compensation of business managers. It first analyzes the three evolutionary models of business manager compensation incentives, represented by American enterprises, Japanese enterprises, and Chinese enterprises, then analyzes the composition, main models, and establishment standards of business manager compensation, and finally explores the problems faced by China in implementing the annual salary system for management personnel and the corresponding countermeasures.
Like wages and bonuses, benefits and social security are also an important part of the enterprise's compensation system. The tenth chapter is arranged to introduce benefits and social security. It first analyzes the concept, content, and development trends of enterprise benefits, then introduces the main content of China's social security system and the management of social security funds, and finally introduces the benefits and social security systems of Japan, the United States, and Germany.
The eleventh chapter mainly introduces the management of compensation payment. The total compensation level not only affects the company's ability to attract, retain, and motivate employees but also significantly impacts the company's cost and revenue levels. Compensation payment strategies also affect the incentive effect of compensation on employees. This chapter mainly introduces the determination and control of total compensation and the relevant strategies of compensation payment management.
The enterprise's compensation strategy must not only adapt to changes in the external environment but also align with the overall strategy of the enterprise. The twelfth chapter mainly involves the alignment of enterprise compensation strategy with business strategy. It first classifies compensation strategy into three types based on the regularity characteristics of the 12 dimensions of compensation strategy, analyzes the requirements for matching compensation strategy with six types of business strategy, and finally summarizes the different matching models of enterprise compensation strategy and business strategy.
The content of this book includes: compensation and compensation management, the theory and influencing factors of compensation determination, compensation systems, legal and regulatory norms of compensation systems, job analysis and job evaluation, compensation market surveys, etc.