Human resources management mechanism

In the situation of peace and development as two major subjects of the current world, competition in economy and technology is becoming increasingly fierce. Against the background of maturing worldwide market economy, the competitions between different companies are fundamentally competitions of human intelligence, and also that of people's overall quality and development and management of human resources. Talented people are fundamental and the most valuable resources to all enterprises. They are the primary factor to the survival and development of enterprises, thus all enterprises which are developing quickly and take an active part in the international competitions, change their resources emphasis of economical development from material resources to the effective management and development of human and information resources. It can be expected that the 21st century will be a new era with human resources and wisdom capital as its power and the success of any enterprise is closely connected to the management and development of its human resources.

The philosophy of market economy, which ensures the rapid development of LOVOL.

Establishing human resources values which are compatible with market economy inside the enterprise

We should not select and use candidates only according to their diplomas or capabilities, but should know about and cultivate their culture-values.

LOVOL adopts the basic concept of market economy in human resources management .

First, we emphasize the concept of grade differential. The concept of grade differential: firstly, it stresses that human capabilities are different which result in their division differences in the enterprise. Secondly, the division differences would result in the disparity of income type. Thirdly, the disparity of income type would result in the level of income which is normal. It is normal to be different and not normal if there is no difference; so we are strongly against the practice of having everyone 'eat from the same big pot'
　　
Second, we emphasize the concept of efficiency-first, not others. Efficiency-first, since enterprises don't emphasize equity, which is the function of societies and societies emphasize equity. Enterprises emphasize benefit and because enterprises emphasize efficiency while societies emphasize equity, the concept of achieving the integration of efficiency and equity, and emphasizing efficiency-first, in fact helps human capital step on the stage of history.
　　
Third, we emphasize the concept of team spirit. There is grade differential in enterprises which shows that everyone is important and is part of the organizations, thus team spirit is crucial to the success of enterprises.
　　
Fourth, we emphasize the concept of loyalty. Capital is loyal to human capital; comrades at the higher levels are loyal to that at the lower levels and vice verse. We emphasize the concept of loyalty, and it is actually a kind of enterprise culture which helps human capital step on the stage of history and standardizes and ensures the operation of human capital.

The enlistment and exploration of human resources

We supplement talents which are needed urgently for key posts relying on the socialist labor market. In the background of socialist market economy, the socialized procedure of human resources is higher and higher, thus during the rapid development period of enterprises, we should make use of social resources effectively, rely on the external labor market, give full play to the role of market mechanism in the distribution of human resources to achieve the optimal effect of it.
　　
Also, Foton Lovol cultivates internal talents to meet its needs for human resources, and such means enjoys two advantages: First, it provides internal employees with development opportunities and strengthens their sense of trust, which is conducive to inspiring internal employees, facilitating the employees' career development, fixing employee size, and arousing employee's working enthusiasm. Moreover, such means helps cultivate a uniform concept of value, enhance the relationship between employees and the enterprise, in addition to forming and accumulating special human capitals. Second, promotion to internal employees helps strengthen their loyalty to the enterprise. Such being the case, managers can make a long-term planning while considering management decisions.
　
'It takes ten years to grow trees, but a hundred to rear people' implied that talent training is not a day of work but a long-term mission.
　　
In this case, Foton Lovol should actively recruit contractual employees and adjust human resources'structure, in addition to basically cultivating a high-quality work team through training and cultivation, in an effort to meet its demands for fast-rate development.

Better use and keep talents

Keeping talent is the foundation for implementing talent strategy, meaning that employment of active and efficient measures in keeping talents is the precondition of maintaining employee size at a reasonable and scientific level and continuously accelerating the company development. However, feasible and practical measures should be employed to keep talent, and in general, companies usually adopt 'alluring strategy', 'participating strategy' and 'investing strategy” to keep talent, while Foton Lovol adopts the following four measures:

First, keeping talents by career development: Foton Lovol's ambitious development strategy of invigorating national industry greatly allures its employees. As an entrepreneur, is there anything more attractive than success in a great career after arduous endeavor?
　　
Second, keeping talents by company mechanism. During production and operation activities, Foton Lovol all along insists in people-oriented management mechanism and employs scientific, systematic & standardized management mode. Its management behavior is human-centric. Also, Foton Lovol emphasizes people's value and dignity, and advocates democratic management and behavioral sciences. Moreover, Foton Lovol takes 'working in high efficiency and high quality” as its core, 'establishing system, checking & examination, reward & punishment, and salary allocation' as its operation mode, 'implementing mission-based responsibility'as its inspiring mechanism. Furthermore, Foton Lovol advocates study mechanism, in order to improve its employees' theory knowledge and service quality.  Meanwhile, it leverages different means (like training, further study, and company-arranged study) and a series of systems (like cadre study system and staff training system) to cultivate a strong study atmosphere.

a Third, keeping talents by interest: Foton Lovol encourages and guides its employees to chieve anticipated goal, make full use of the employee's potential, and mobilizes their initiative, enthusiasm, and creativity, in order to promote company operation and management. Regarding talents policy, Foton Lovol advocates the principle of 'Family First, Career Second', and makes endeavor to resolve talents' living problems. Foton Lovol 'Housing Management Method' and 'Young Leaders Selection, Training and Management Method' catering to graduate students reflect its strategic viewpoint in talents issue.

Fourth, keeping talents by corporate culture. Corporate culture is unique and it conveys the employees' common dream, working style, concept of value, and code of conduct. Besides, the corporate culture showcases the development course of Foton Lovol's operation philosophy, and helps form enterprise members' common concept of value through uniform behavior and ideology. Moreover, corporate culture creates a harmonious, united, and striving working circumstance for binding all employees together, which offers convenience for the enterprise to stabilize the employee size and make special and proper strategy. Through the aforead measures, Foton Lovol not only employs its required talents, but also keeps talents successfully. In this case, it wins the initiative power in carrying out its talent strategy.

Perseverant talents flow helps keep vigor of human resources

1. Cadres are likely to be promoted or demoted, in order to keep the vigor of carder team. While electing cadres, Foton Lovol persists in the principle of 'promoting the capable, replacing the incapable, demoting the ordinary', in order to employ and promote cadres featuring professional knowledge, management knowledge, and management capability, as well as regulate cadres' knowledge structure and age structure. As to the incompetent lacking necessary knowledge & capability, Foton Lovol will demote them; but to the competent with much knowledge and high capability, the company will promote them boldly.
　　
2. Professional technicians will be evaluated every year. While evaluating professional technicians, Foton Lovol refers to the social title, practical capability, and yearly work performance. Such evaluation will be conducted one time a year and it is linked with salary, in a bid to spur employees to improve quality and capability, work hard, and give priority to business performance.
　
3. Foton Lovol persists in principle of eliminating the last and optimizing the human resource structure, and it actively carries out the policy of reducing employee size and improving efficiency, in order to keep the vigor among employees and improve overall labor productivity. Toshiwo Doko, renowned Japanese operation and management analyst, said: the rail in pole jump should be raised all the time, people who fail to leap over it will be eliminated from the arena.