The employee receive compensation in the form of rewards, pay, benefit it is basically the output that management uses to increase the performance of organization.
Half of the cash flow is equal to the compensation of the organization but more than half in the service sector. . For the purpose to increase performance of organization the key factor is to motivate employees and attract the employees.
Compensation can be in the form of multiple pay plans and can be in the form of individually, merit pay to performance long incentives, bonus, and merit pay in the form of rewards. These are the different qualities and components of compensation that are in the form of individual performance and multiple pay plan performance, this research was conducted by Millvier and Newman. In order to increase the performance of organization pay plan is commonly used Chani. The most common appraisal of employee is pay plan by Heneman and warner.
Salary Pay have direct impact on the performance of employees the compensation and the pay structure directly impact the performance of the employees and the they provide the output according to the pay plan and pay structure according to the performance of employees. In 1999 the employees have fixed pay and the organization give rewards for their better performance that will give the power job shorter oriented so there is relationship between compensation like pay and performance.
Simon, more and hunt, jahangar Suggested that rewards of managers supervisors significant positive relationship with performance of organization that is performance of employees, enhance productivity, satisfaction of employees organizational citizenship behavior and turnover. For the purpose of achievement of organizational performance either it is financial or non-financial compensation in the form of rewards or incentives are most important component to eradicate employees paying their energy to produce innovation in cress the performance of organization. The researches by employees’ productivity can be increase by motivation which provide effective recognition as a result improve organizational performance.
The research on relationship between organizational performance and compensation in the form of pay suggested that pay is not directly related to the performance of organization but in many statements or claims merit increases the salary and hence increase the performance.
Their research concluded that significant positive relationship between HRM practices and organizational performance , HRM practices like selective hiring, compensation management, training and development, status differences,decentralization,information sharing, employment security, and use of groups on performance of organization as operational performance likeflexibility,cost reduction, quality, and commitment. HR administration structures in US study investigates that organizational performance has significant positive relationship to various HR practices compensation and benefits,
HRM practices like compensation and rewards, training and development, recruitment and selection and performance management have positive effect on organization performance observed in 104 articles documented in 18 that four most important .
To measure the impact of HRM practices like training and development, compensation and rewards,performance appraisal, and employees recruitment and selection their relations on performance of organization that are (product quality, Product cost,, performance, market share compared with competitors and 19 organization performance relative to industry average) and in 20 companies of oil and gas establish significant positive relationship with HRM practices like compensation, training and development, employees development and performance of the organization.
Khan investigates Motivational factor for the employees are the compensation so proposes structure of compensation in which employees who perform better are paid more than average performing employees is important to increase the performance of organization
References
Ivancevich, Glueck JMWF (1989)Foundations of Personnel/HumanManagement.[Accessed on 2018
Gerhart B, Trevor CO (1996) Employment Variability under Different Managerial Compensation Systems. Academy of Management Journal[Accessed on 2018]
Hewitt A (2009) Managing Performance with Incentive Pay. Journal of Personnel Management [Accessed on 2018]
Image
https://www.google.lk/search?q=Compensation+management&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjk1qyugO7bAhVXeysKHe--ASAQ_AUICigB&biw=1536&bih=683#imgrc=-UuKSed1ZRXwYM:[Accessed on 2018]
No comments:
Post a Comment