In previous articles, it has been repeatedly emphasized that the ultimate goal of traditional enterprise transformation is to achieve organizational integration, when the organization becomes an organic system, it can flexibly respond to changes in the external market through changes within the organization, so its biggest feature is the ability to digest the impact of the external environment through rapid internal transformation, no matter how the market changes, it can maintain its own vitality, and the integrated organization is like an ecosystem with strong metabolic ability, which is an inevitable requirement for market development to a certain stage。
In order to achieve organizational integration, it is necessary to establish a dynamic management system that can self-regulate according to market changes, and only in this way can we respond to change with change, which we call metabolism. When the enterprise develops into a multi-business group, the enterprise management system must reflect this characteristic, otherwise it will not be able to face frequent changes in the market, we take the payroll management evolution system as an example to illustrate.
Salary management is a value distribution mechanism, so it must be built on the basis of fairness, from the perspective of market, organization, talent integration, there are four principles of fairness, namely organizational fairness, internal fairness, external fairness, self-fairness. Organizational fairness refers to the value balance relationship between the organization and other market entities, and the compensation management mechanism based on organizational fairness is called employer compensationInternal fairness refers to the value balance relationship between different members of the organization, and the compensation management mechanism based on internal fairness is called position compensationExternal fairness refers to the value balance relationship between the members of the organization and the external equal opportunities, and the compensation management mechanism based on external fairness is called role compensationSelf-fairness refers to the value balance relationship between the reality and expectations of the members of the organization, and the compensation management mechanism based on self-fairness is called value-based compensation. The characteristics of the four compensation management mechanisms have been described in detail in previous articles and will not be repeated.
Excerpt from the Evolution trilogy.
In the process of enterprise development, the salary management mechanism based on the four fairness constitutes a gradual change relationship, which we call the law of salary management evolution, which itself is guided by the change of customer needs and changes with the change of the market The salary management rules, when we will combine this evolution law with the business development law of the enterprise, it forms a salary management conversion system based on the business life cycle.
When Chinese enterprises develop into a complex system of multiple businesses, enterprises can not only reflect the value of diversified talents with a principle of fairness, but a variety of fairness principles work together to meet the value needs of different groups, based on the business life cycle of the salary management evolution system is generated, in our knowledge system is to integrate the law of salary management evolution and life cycle management SGMD model of these two types of management tools, when the market demand changes, the business type will be adjusted in time, and the salary management mechanism can also be changed, so as to reflect the metabolic ability of the integrated organization。
Integrated Organizational Metabolic Capacity - Compensation Management Conversion System
For example, when an enterprise discovers a market opportunity and begins to prepare for a start-up business (S category), the strategic goal is first to enable the new business to survive in the market, and there is no need for a perfect management system. Founders, followed by those in charge of production and sales functions, have a direct impact on the viability of the start-up, so their compensation levels can be implemented as long as the company or employer can accept them, and they do not need to be included in the company's compensation system. Nowadays, market opportunities are gradually increasing, and many companies often adopt the so-called green channel of salary to solve this problem, in fact, the reason is the same.
When the market gradually accepts new products, the start-up business (S class) will evolve into the growth stage business (G class), and the strategic goal is how to make the new business develop rapidly in the market and seize more market share. To expand the scale, the employees of this kind of growth business mainly adopt position compensation, and the incentive target is mainly the manager group, so it is necessary to build a systematic salary management mechanism based on the position level, and clarify the salary level and change rules of different ranks and positions, so that each employee can find their own salary standard. At present, the vast majority of Chinese companies are paid for this position, which is suitable for growth businesses (Class G), and when the period of rapid development is over, the problem of salary will follow, and many companies must have felt it.
When the market demand is gradually saturated, the growth stage business (G class) will evolve into the mature business (M class), and then the strategic goal will change to how to make the enterprise live well, the enterprise will reduce internal friction as much as possible, reduce operating costs, maintain the existing market share, To maintain a certain level of profits, and at the same time promote the continuous innovation of enterprises, to maintain business vitality and competitiveness, so the personnel of this kind of mature business mainly adopt role compensation, the incentive target is mainly key talents, it is necessary to build a role-based salary management mechanism, advocate employees to continuously improve their professional ability, by playing a more important role in business activities, and obtain the desired salary level.
When the market demand changes, the mature business (M type) will evolve into a recession business (D class), and then the strategic goal changes to how to realize value, usually introducing external forces or abandoning this type of business, which also means that the mission of this business is about to end, so after entering the recession period, it is necessary to pay attention to the value realization of everyone, so the main value compensation is adopted.
Any business has its own life cycle, nothing more than each stage is long or short, which depends on the degree of change in market demand, according to the business life cycle to adopt a matching salary management mechanism, to maintain the fairness of the organization's value distribution, is one of the important contents of organizational management;When many businesses exist in the enterprise at the same time, the dynamic payroll management conversion system can effectively enhance the vitality of the organization, and when the enterprise enters the transformation stage, it needs to gradually shape the metabolic capacity and promote the enterprise to move towards an integrated organization.