【正文】 , workers always strive for product quantities but ignore product quality and cost, because of which it is difficult for madetoorder enterprises to establish the process quality standard and operation criterion properly. Process quality mostly relies on workers operation skills and experience. To maintain the product quality, many people are employed to work in manufacture scene to check the product quality, which increase the manhour consumption, and also, the dependency of the operation workers. More reject results in the poorly done work have to be done over again, which greatly increase the manhour and the waste of materials. Although large amount of human resources and time are spent on products quality control, quality plaints and claims from customers still amount high. III. BALANCE AND ADJUSTMENT OF WORKERS WAGES IN SMME Work piece Quota setting is a basic management function. It reflects a pany39。 consciousness。4]. The former means that the quota level is either too high or too low. In the latter case, there is unfair difference in work piece quota levels among different jobs. Imbalance work piece quota level has serious negative impact on productivity. For those whose work piece quotas are higher, they will feel dissatisfactory, and their work efficiency and product quality will be affected. While those whose work piece quotas are lower, they will worry about the possibility that the work piece quotas will be increased if they have a high work efficiency, thus they tend to slow down their work on purpose, which will result in the lower productivity. In practice, because it is difficult to set a reasonable work piece quota level, many SMME adjust the quota level frequently according to the workers39。 wages. This method is easy to manage, but it cannot inspirit the workers. In practice, it has been found that workhour rate based on pay system always results in slowdown of work efficiency and decrease in productivity. While in piece rate system, workers39。 wage level. Traditionally, workers39。 wages, production costs and other important issues [2]. For MaketoOrder enterprises, because the variety of products and quantity ordered vary frequently, it39。 demands and reduce the risks, foreign and domestic dealers have changed their ordering mode. Traditionally, dealers usually order large quantities of products periodically, but now they would like to order small batches randomly for various goods many times. For adapting to the demand mode, the enterprise production mode has changed from the traditional maketostore mode to the maketoorder mode. The diversified varieties, variable batch and random ordering mode have brought many new challenges to SMME, for example, the logistic control, quality standardization and control, production plan and schedule, delivery time guarantee and production cost. With the frequent changes of tasks, how to determine and adjust the piecerate will determine, to a large extent, whether the enterprise can normally develop and win the market petitions. II. WORKPIECEQUOTA MANAGEMENT PROBLEMS IN SMME Work pieceQuota management is the base of manufacture enterprises. Work pieceQuota level affects a pany39。Wage System Innovation in Small and Middle Manufacture Enterprise Zhang bixi School of Economics and Management Guangdong University of Technology Guangzhou, China Xie xiangtian School of Economics and Management Guangdong University of Technology Guangzhou, China AbstractFor small and middle manufacture enterprises (SMME), the problem of workers39。 wages in multivariety and batch production system are studied in this paper. Based on analyzing the operation characters of the enterprises, the piece rate and its shortages in the enterprise have been studied through cases. For the purposes of reducing the production cost, improving the productivity and the job quality, the approaches to ameliorate the wage systems have been developed which are adapted to multivariety and batchorder production enterprises. It has been proved that the new wage system has a better stimulating effect than the traditional one, which can predigest the wage management for the enterprises. Keywords Piecerate, Labor Productivity, Batch production. I. THE OPERATION CHARACTERISTICS OF SMALL AND MEDIUM MANUFACTURING ENTERPRISES After the entrance of WTO, the small and mediumsized manufacturing enterprises in China face more extensive and heated petition than ever before. The market demand bees more diversified, personalized and changes quickly. Only by providing higher quality products with lower cost, better adaptability, shorter delivery time and better services, can SMIME win the petition. To satisfy the customers39