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On Salary Management of State-owned Enterprises
On Salary Management of State-owned Enterprises

Chapter 1: research on the problems and countermeasures of salary management in state-owned enterprises

Salary distribution and performance appraisal have always been the concerns of salary managers and state-owned enterprise operators. A fair, just, scientific and reasonable salary distribution and performance evaluation system plays an important role in mobilizing and stimulating employees' enthusiasm and enthusiasm for work. At present, in order to improve the core competitiveness, most state-owned enterprises are carrying out enterprise management reform, clearly recognizing and beginning to solve the problems existing in salary distribution and performance appraisal. Based on this situation, only by establishing a comprehensive and effective salary management system and guiding new practice with updated management concepts can we adapt to the requirements of the times.

1 Problems existing in the current salary management of state-owned enterprises

In recent years, China's state-owned enterprises have established the reform goal of establishing a modern enterprise system. With the development of modern enterprises and the reform of enterprise system, ownership and management rights are separated, the status of independent operation of enterprises is established, and the development of state-owned enterprises is increasingly standardized. However, on the whole, there are still many problems in the salary management of state-owned enterprise operators.

1. 1 The basic work of salary management is weak and the concept of salary management is backward.

Many state-owned enterprises have weak basic work such as job analysis, post evaluation and performance appraisal, and the methods are unscientific and unfair, and salary management is still in the stage of experience management. The system is not perfect, the mechanism is not perfect, and there is no incentive mechanism. At present, job skills pay is mainly based on skills, and seniority has a great influence, which leads to low employee satisfaction and is not conducive to mobilizing the enthusiasm of young employees. At the same time, the management concept of many state-owned enterprises from leaders to ordinary employees is still relatively backward. Old ideas such as iron rice bowl, iron chair, pot rice, official standard, human feelings and money worship have seriously hindered the establishment of market mechanism and internal salary system and dynamic mechanism of enterprises.

1.2 Disregard between government and enterprise

There is no distinction between government and enterprise, and the government intervenes too much in enterprise salary management. At present, the distribution subject status of state-owned enterprises has not been fundamentally established. The main manifestations are as follows: although state-owned enterprises have greater autonomy in internal distribution, after the overall goal of establishing a socialist market economic system in China is determined, the decision-making power of the total wages of most state-owned enterprises is still in the hands of relevant government departments, and the government implements the method of linking work efficiency with wages through administrative means; Most other enterprises implement the method of lump-sum payment of total wages or direct approval of total wages by relevant government departments. Some local governments not only control the total wages of enterprises, but also directly intervene in specific management decisions such as the proportion of wages within enterprises. This makes it difficult for enterprises to implement the autonomy of salary management, which seriously affects the quality of internal distribution system reform.

1.3 The wage level of state-owned enterprises is out of line with the market price.

Total compensation control can't really be linked with enterprise benefits, and employees can't feel the pressure of market competition. According to a survey conducted by the Ministry of Labor and Social Security, there is a phenomenon of "one high and one low" in most enterprises at present, that is, the salary level of employees in general positions is higher than the labor market price, while the salary level of employees in key and important positions is generally lower than the labor market price. This situation is extremely unfavorable for enterprises to attract and retain talents. It is precisely because of the serious disconnect between the wage level of enterprises and the labor market price that a large number of talents in key and important positions in enterprises are lost. Those who want to be diverted cannot be diverted, which leads to unreasonable allocation structure of labor demand.

1.4 Individual wage distribution overemphasizes distribution according to benefits.

In the current distribution system of state-owned enterprises, the individual wage income of employees mainly depends on the economic benefits of their units. Some people have made great contributions in production and operation, but they can't get the corresponding remuneration because of the poor benefits of enterprises. On the other hand, people who don't work hard in production and management get higher rewards because of the good benefits of enterprises. In state-owned enterprises, the size of administrative positions, the level of academic qualifications and professional titles, and the length of service have a decisive impact on wages. Some front-line workers engaged in hard work have a small wage gap with other employees, which is the new pot rice distribution.

The mechanism of 1.5 is not perfect, and the value of human capital has not been properly reflected.

The salary income level of enterprise managers is low. The era of knowledge economy is an era when human capital employs monetary capital, so we should pay full attention to the value of human capital in enterprises. However, the value of human capital, especially the value of enterprise managers, has been neglected in China enterprises. In addition, at present, the reward and incentive methods for entrepreneurs in China are relatively simple, and most of them are composed of basic salary plus bonus and annual bonus. However, some internationally effective experiences such as "equity incentive" are still in the exploratory stage in China.

1.6 single promotion channel, single-plank bridge management.

This is a common problem of state-owned enterprises. If you are not promoted to a management position, your salary and bonus can only be maintained at a roughly fixed level and cannot be raised. However, management positions are limited after all, and more are professional positions. Therefore, in order to increase their income, employees are keeping an eye on management positions, hoping that they can squeeze through the management wooden bridge. However, management positions have special requirements for knowledge, skills and experience, and employees who play well in their own professional fields are not necessarily better managers. In order to increase the chances of promotion, some enterprises have set up a large number of deputies. In a state-owned enterprise, we have more than two deputies at each management level on average, which means that the average management scope is only about 2 people. As a result, enterprises often lose an excellent professional and have an incompetent manager.

2. Solutions to the problems in salary management of state-owned enterprises

To solve the problem of salary system in state-owned enterprises, we should grasp three key points: salary should reflect post value, the rationality of salary model, and performance should be linked with salary. However, due to the fact that the basic management of enterprises has not been fully put in place, many supporting measures are still not perfect. To implement these measures in reality, it is generally necessary to rely on the strength of professional consulting companies to complete the construction of management platforms.

2. 1 Establish a scientific salary management system

To effectively prevent the misunderstanding of salary management, we must establish a scientific salary management system. First, we must establish a job evaluation system. Through job analysis and job evaluation. Adjust and streamline institutions, posts and personnel, determine labor differences, and provide quantitative basis for determining salary and income differences. Second, change the existing salary structure, establish a mechanism of internal competition and on-the-job competition, and gradually form a pattern in which posts can be promoted and demoted, and personnel can enter and exit. Third, establish a scientific, reasonable and efficient performance management system, which is really linked to salary.

2.2 separation of government from enterprise, one enterprise, two systems

Deepen the reform of salary distribution system, completely change the separation between government and enterprise, and reduce the direct government intervention in enterprise salary management. The task of the government is to formulate macro-control salary system and regulations, and create a good policy environment for enterprise reform. At the same time, "one enterprise, two systems" can be implemented for some enterprises whose average wage level is low and it is difficult to connect with the labor force and talent market. In other words, we can implement the post skill wage system based on salary points for ordinary employees, and implement the "negotiated wage system" for talents in short supply in the management backbone and technical backbone, and establish a special wage zone. At the same time, strengthen the cultivation of labor force and talent market, improve social security mechanisms such as unemployment insurance, establish and improve fair competition and reasonable elimination mechanisms within enterprises, and stimulate the vitality of salary management.

2.3 Establish a mechanism for salary distribution to rise and fall.

A truly effective salary system should have scientific salary standard, reasonable salary structure and dynamic, flexible and efficient operation mechanism. First of all, the salary standard should be dynamic and linked to the comprehensive benefits of the enterprise; Secondly, the salary structure should be dynamic and adjusted in time with the needs of different periods; Third, the salary system should be in dynamic operation. The adjustment of salary should be changed from static to dynamic and timely. Excellent salary system will be adjusted in time according to the effect of production and operation, the change of labor market price, the adjustment of posts and the improvement of personal performance. For senior talents urgently needed for the production, operation and development of enterprises, if the market price is high, the growth rate higher than the market average level should be adopted, and the capital increase rate should be large; For simple jobs where the enterprise's wage level is higher than the market price, the capital increase should be very small or even not. Through this dynamic, positive and reasonable salary adjustment, the income of employees can really increase or decrease with the changes of posts and technologies and the labor efficiency and benefits of posts.

2.4 Establish a basic salary system and implement a comprehensive salary strategy.

Clean up the existing bonus and allowance items and incorporate them into the salary as much as possible. Establish a basic salary system with post salary as the main content. On the basis of job analysis and job evaluation, design the basic salary system of this unit, reform the current salary structure, optimize the salary structure, simplify the salary items, such as cleaning up the existing bonus and allowance items, and try to bring them into unified salary management. Cancel and merge the average wage units, increase the proportion of post wages, so that post wages account for about 70% of wage income, and form a post performance wage system with post wages as the main body, in which enterprises can survive the fittest, posts can be promoted and demoted, personnel can enter and leave, and income increases and decreases. At the same time, in order to further break egalitarianism, improve the salary level of key management and technical posts and the shortage of high-quality talents, widen the distribution gap between key posts and general posts, retain key talents and flow general personnel. According to the characteristics of all kinds of employees, flexible and diverse wage distribution methods and forms are selected on the basis of post performance wage system. For example, if the annual salary system is implemented for key managers, on the basis of strict assessment, the risk-return ratio should be appropriately increased to improve the incentive effect for key managers; The remuneration of scientific and technical personnel and main management backbones should be linked to posts, projects and performance, and the wage distribution system such as shares and stock options should be tried out to give full play to its long-term incentive function; For salespeople, the salary of salespeople can be designed by combining the commission system with the basic salary system.

2.5 Scientific use of the art of salary incentives

The Art of Salary Incentive Although salary is not the only way to motivate employees, it is also not the best way, but it is a very important and easy-to-use method. The same total salary and different payment methods will achieve different results. The first is to design welfare programs that meet the needs of employees. A perfect welfare system is very important for attracting and retaining employees, and it is also an important symbol of the soundness of the company's human resources system. The second is to pay attention to skills in salary distribution. Different people should use different incentives. Thirdly, appropriately shortening the time interval of regular rewards and keeping the timeliness of incentives will help to achieve the best incentive effect. Frequent small-scale rewards will be more effective than large-scale rewards. Reduce regular rewards and increase irregular rewards, so that employees have more unexpected surprises and enhance the incentive effect. The fourth is to pay attention to the reward for the team. Although the incentive effect of rewarding teams is weaker than rewarding individuals, it is necessary to establish a team incentive plan in order to promote the cooperation among team members and prevent the unbalanced mentality of subordinates due to the excessive wage gap between superiors and subordinates. The fifth is to implement scientific performance management. Scientific performance management can enable enterprises to enter a virtuous circle of "high salary, high efficiency and high benefit", achieve first-class career with first-class talents, and the company and employees will have an accelerated development.

3 Conclusion

At present, due to the impact of the international financial crisis, the challenges and competition faced by state-owned enterprises are quite fierce, and the reform of salary management system is directly related to the survival and development of the company. Establishing a scientific and reasonable distribution mechanism, giving full play to the leverage of the distribution mechanism, encouraging and attracting talents, maximizing the enthusiasm and creativity of all kinds of personnel, especially those in key positions, and activating human resources are the key points that enterprises need to reform at present. Reasonable salary system and performance appraisal system will certainly make enterprises more competitive.

Chapter two: Research on the countermeasures to improve the salary management of state-owned enterprises in China.

Problems and implementation difficulties of salary management in state-owned enterprises

The salary management system of state-owned enterprises has been basically fair and reasonable in the long-term evolution process, but there is a lack of understanding of the basic role and structure of the salary system, which can be summarized as follows:

First, the relative fairness of salary management. The long-term salary reward mechanism of state-owned enterprises pays attention to the standardized fair model, that is to say, in state-owned enterprises, there are great differences between departments and ranks, and the salary changes are small. The salary seems fair in the big structure, but due to the lack of employees, it is difficult to understand and feel the salary difference. Most of the salary assessment in state-owned enterprises has a basic value, and then the salary is positioned in a wide range according to the individual's contribution to the work, with the overall benefit of the enterprise as the biggest reference item, so some employees can still get higher salary because of their low work efficiency, which is the lack of relative fairness.

Second, the wage standard is unreasonable. This problem is mainly manifested in: lower positions in state-owned enterprises enjoy higher wages than non-state-owned enterprises, while higher positions enjoy lower wages than non-state-owned enterprises. This is because the development foundation of state-owned enterprises is relatively good and has generally experienced a long development history. Therefore, many state-owned enterprises have been changing their salary positioning standards according to their own traditional standards, without comparing the actual market situation. In fact, with the development of economy and the progress of the times, the salary management of non-state-owned enterprises has a more reasonable standard, and the salary standard of high-skilled talents is higher, which will lead to the shortage of talents in state-owned enterprises, the decrease of core knowledge-based talents and the slowdown of enterprise development.

Third, salary management is limited by the mechanism of state-owned enterprises. Most of the management subjects of state-owned enterprises are still in the hands of relevant government departments. Therefore, the salary quota positioning of state-owned enterprises is mostly formulated and mastered by government departments. There is no gap in decision-making among enterprises themselves, and the relevant departments of enterprises have also become simple wage payment institutions. Government agencies do not actually participate in the operation and management of enterprises, so they have no in-depth understanding of the operating conditions of enterprises and the working conditions of employees, and their salary standards may not necessarily conform to the actual situation of enterprises. In this case, when the enterprise loses the right to operate independently, the salary management cannot play a real role.

Fourth, the basic role of the salary system is ignored. The fundamental function of the salary system is to prove and reward the work together with employees, and it is the response of employees' work contribution, especially the promotion of employees' work enthusiasm by the salary system. After a long period of development, the research on enterprise salary management has gradually shifted from this core direction to salary standards and mechanisms, thus ignoring its basic role, which has led to the gradual reduction of the consideration of employee promotion awards and excellent work awards in the formulation of salary standards, and the loss of the employee incentive function that the salary system should have.

Thoughts on salary management of state-owned enterprises

Based on the above analysis, we can see that the core problems mainly appear in several aspects: the connotation of salary system, the reform of salary reward system under the new situation, the participation of employees and the initiative of enterprises. To understand the connotation of salary, we should pay attention to the fundamental goal of enterprise salary system formulation, and carry out salary management research under the guidance of the core concept of stimulating employees' enthusiasm and promoting enterprise development; Under the new situation, the reform of salary reward system is to understand the general employment methods and salary standards in time, formulate a reasonable and perfect salary reward system with external fairness, and at the same time consider many people's understanding of the "iron rice bowl" of state-owned enterprises' salary under the influence of current social culture, change this traditional understanding, and ensure the enthusiasm and vitality of employees' thoughts; Employee participation needs to change the situation that the traditional salary management mode is only decided by the upper level, and employees don't understand the standards and salary calculation methods, which can also better promote the enthusiasm of employees and make them easier to understand the meaning of salary reward; Enterprises have mastered the initiative of salary management, and then formulate salary reward standards that are more in line with the actual situation of enterprises.

Suggestions on improving salary management in state-owned enterprises

Through the analysis of the first chapter, we can know that the improvement of the salary system of state-owned enterprises needs to focus on raising awareness, adjusting salary standards and changing the way of setting standards. The following are detailed countermeasures for these points.

First, establish a scientific salary management system and strengthen the overall understanding of salary management.

Under the new situation, a scientific management system should pay attention to the understanding of management and the scientificity of salary standards, re-recognize the incentive function of salary management, and formulate more detailed and scientific salary payment standards. The specific implementation requires enterprises to do the following: First, enterprises regularly carry out knowledge training for the staff of salary management institutions, and consolidate their ideological understanding while consolidating their knowledge base; Secondly, the salary management organization should regularly investigate the salary evaluation standards of the talent market and take the survey results as a reference for the formulation of enterprise salary standards; Finally, enterprises should formulate more detailed salary evaluation standards in different positions, different ages and different institutions, refine salary differences, reflect relative fairness, and better enable employees to realize the link between salary and performance, so as to pay more attention to employees' work and enhance their labor enthusiasm.

Second, optimize the salary structure and improve the salary incentive mechanism.

In the optimization of the salary system, more job evaluation and structural division are added, and employees are advised to participate in the formulation of various evaluation and division projects, so that the salary reward is more clear, and employees can realize where each item of their salary comes from, so that employees can have a clearer direction to get higher salary. Of course, we should also avoid loopholes in the system and prevent some employees from taking opportunistic actions against loopholes in the salary system, so we should also consider rationalization when formulating the system.

Third, change the tradition of complete government control and strengthen the control of enterprises.

To reduce the government's participation in the formulation of the salary system, the government only needs to supervise the legitimacy of the salary system and the compliance with the national macro-policies, and the actual formulation process is given to the enterprise, which can better provide the basis for the salary formulation of the enterprise, so as to formulate the salary system that conforms to the actual situation of the enterprise and is conducive to the long-term development of the enterprise.

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