Performance and Compensation Management

Performance and Compensation Management

Reasonable compensation management system is based on reasonable performance management and assessment, and the design of a pay system that is compatible with the production and operation of the enterprise is the embodiment and inevitable result of the enterprise's effective performance management. Enterprise managers to take performance management to achieve effective management of enterprises must have a more profound understanding and awareness of reasonable salary management, managers should strengthen communication with employees, so that employees participate in salary management and design, reasonable salary management system to reflect the inherent fairness and external competitiveness, and truly establish a salary management system to make the labor and management *** with the satisfaction of the payroll management system in order to achieve a *** win! The company's payroll management system will provide an important safeguard for the sustainable and healthy development of the enterprise.

First, performance management

With the integration of the global economy and the deepening of China's economic system reform, today's enterprises are faced with more and more brutal and fierce competition in the market and complexity and change. The role of human resource management in the enterprise is becoming more and more prominent, and most enterprises are paying more and more attention to human resource management, especially performance management and performance pay management. As a management idea and management tools of performance management and compensation management in foreign countries have been practiced by many enterprises for many years, while domestic enterprises introduced this concept relatively late, from the specific implementation process is not ideal, on the one hand, because most of these methods come from the research results of foreign scholars, domestic enterprises in the introduction of the implementation of the process of the existence of ? On the one hand, because most of these methods come from the research results of foreign scholars, domestic enterprises have problems in the process of introducing them. and? Indigestion? on the other hand, the performance management process in domestic enterprises is not satisfactory. On the other hand, there are many problems in the design of compensation system in the performance management process of domestic enterprises. How to design a pay system compatible with the production and operation of the enterprise, really play the role of performance management, but also need to continue to explore and practice.

Second, the meaning of performance management

Performance, from the perspective of management, is the organization's desired results, is the organization in order to achieve its goals and to show the effective output at different levels, which includes individual performance and organizational performance in two aspects. Organizational performance should be achieved on the basis of individual performance achievement, but the achievement of individual performance does not necessarily guarantee that the organization is performance. As long as each individual reaches the requirements of the organization, the organization's performance is achieved. Performance management is the activity of developing and implementing performance, an ongoing process of identifying, measuring, and developing individual and team performance and aligning that performance with the strategic goals of the organization. Performance management emphasizes the consistency of organizational and individual goals, and the simultaneous growth of the organization and the individual to form a ? Multi-win? Situation; performance management embodies? People-oriented? The idea of performance management, in all aspects of performance management need managers and employees *** with participation. Therefore, performance management is a complete management process, mainly focusing on information communication and performance improvement. Emphasizing prior communication and commitment, performance management accompanies the whole process of management activities. The key to the implementation of performance management in enterprises is to establish a strategic performance management and performance pay system. In addition, enterprise performance management should also focus on the changes in the internal organizational structure of the enterprise and the ability to adapt to the external environment, and strengthen the internal and external coordination and communication capabilities.

The meaning of pay for performance

Compensation is an important expense for enterprises, and the scientific design of the compensation management system has a direct impact on the efficiency of human resources and labor productivity, which further affects the sustainable development of enterprises. Performance pay is often used to link performance and pay, with the aim of motivating employees to work better, and this pay system was first developed by a company with the ? The father of scientific management? Frederick Taylor. In fact, companies need such a pay-for-performance model in which the content indicators of performance and pay are aligned, i.e., pay for performance. However, the need to find a suitable balance between performance and pay, correctly grasp this balance point, not only to ensure that employees work stable mentality and basic income, and can ensure that employees have a certain work ethic and morale, and vice versa, if this balance point is not well grasped, it may make the employee's psychological instability increased, but also frustrate the enthusiasm of the employees at work. Both the business and the employees themselves are a loss.

Performance pay as an incentive pay system, itself has its own particularity. First, performance pay pays more attention to performance pay, forward pay. Pay is linked to the employee's work performance, and the employee's good or bad performance is linked to the final salary. For the employees of the enterprise, managers need to guide more employees to prepare for long-term career development, strengthen the sense of belonging to the enterprise and the sense of loyalty of the employees, advocate medium- and long-term performance pay incentives, at the same time, pay attention to the effective communication and emotional cultivation between employees. Secondly, the performance pay target should be formulated in line with the long-term development strategic objectives of the enterprise. The future development of the enterprise is related to the long-term interests of employees, in the specific formulation of reasonable compensation, should start to take into account the immediate interests of employees, especially the link between the pay target and the development of the enterprise. Reasonable compensation system can keep employees have a good sense of loyalty and belonging to the enterprise. Third, the performance pay system should fully reflect its flexibility, with relative elasticity. Compared with traditional pay in the modern sense, performance pay is to stimulate and motivate employees' behavior by regulating the income of employees with good performance and those with bad performance, and by making suitable regulation of their psychological and physical behavior, so as to maximize their potential ability. In the pay culture of different enterprises, the pay reform implements uniform pay standards according to the specific situation. Integration is carried out at the technical, institutional and strategic levels of the enterprise. In turn, the specific integration of position, ability and performance trinity to promote the harmonious development of enterprises.

Fourth, the problems of compensation management and its countermeasures analysis

Performance management is a more complete system, and performance pay is a component of this system, a link. Performance management is a process that focuses on the management of . Every aspect. At the same time, performance management is also forward-looking, can help enterprises to solve the thorny problems encountered in the near or distant development. Compensation management is a result and stage summary. The design and operation of the enterprise's compensation management system is an important reference to reflect the high and low level of performance management of the enterprise.

With the deepening of China's market economic reform, most enterprises to their own reform of the thinking and understanding of the continuous improvement, especially in the payroll management has undergone a major change, the realization of the plan, the promotion of the wage system to the new job, the position of the efficiency of the wage system, both the basic level of the enterprise's employees or the strategic level of the executives of the payroll management of the understanding of the rise to a new stage. However, when we rationally analyze the compensation management of some enterprises, we find that there is still room for improvement.

(A) Problems of compensation management

1. Inconsistency between compensation management strategy and company development strategy

Our understanding of compensation management should be elaborated from two aspects, namely, the enterprise and the employees. On the one hand, it is necessary to give the employees of the enterprise reasonable wages, to ensure the basic interests of the employees, to meet the realization of their multiple needs, and to produce a deeper sense of loyalty to the enterprise. At the same time, it is necessary to take into account the fairness and transparency of the payroll, in order to improve the motivation of other employees. On the other hand, enterprises need to conduct strategic thinking and research on compensation management and develop a set of tailor-made compensation management system. The design of the compensation system fully reflects the future development strategy of the enterprise, and strategically oriented to organically combine the enterprise's compensation management structure with the development strategy. According to the different business strategies, to take a flexible payroll management system, only the establishment of a fair and reasonable payroll distribution system, is more conducive to the development of employees and enterprises.

2. Salary management implementation and employee communication disconnect

The long-term development of enterprises rely on employees to provide a steady stream of intellectual support and physical support. Nowadays, the general enterprises do not link the salary management of employees with the necessary communication management of employees, and most of the enterprises may only consider the immediate short-term economic benefits and enterprise development. Managers and employees to communicate is to strengthen the key to pay management, only so that employees understand the enterprise's payroll design principles and specific procedures, to enable employees to understand the significance of payroll management, and their own material needs and spiritual needs linked to the managers can really know the needs of employees to develop a practical pay program to meet the needs of employees.

3. Salary management fails to adapt to the corporate culture

The formulation and implementation of the salary management system has a great correlation with the implementation of the system by the enterprise's managers, who are the formulators and guides of the salary system, and the degree of attention they pay to it is directly related to the employees' personal interests. At the same time, the enterprise culture also represents the development direction of the enterprise. Corporate culture is a key step in the implementation of payroll management, must be the development strategy of the enterprise, the enterprise's human resources, capital resources, material resources, etc., combined to drive the implementation of the enterprise's payroll into practice.

(B) Countermeasures analysis of payroll management problems

1. Strengthen the understanding of the importance of payroll management communication

In the payroll management of the enterprise, you may encounter a variety of problems, which may be due to the enterprise's managers or employees of the enterprise. If there are conflicts and mistrust between management and employees, the lack of communication between managers may make some well-designed compensation system much less effective in the actual implementation process. Often communicate with employees, absorb employees to participate in the system design, and promote mutual trust between managers and employees. At the same time, change the staff's understanding of their own pay and corporate compensation system. Managers and employees can understand each other and tolerance, for the problems in salary management *** with to solve, is conducive to brainstorming to create a more reasonable and humane salary system.

2. Salary management to enable employees to participate in salary design, strengthen the training and education of employees

Salary management and performance management is inseparable, if you want to pay for the success of the management, there must be a set of scientific and effective performance management system and appraisal methods with the use of. Usually due to performance management or appraisal problems make the very good payroll management lost. Managers in the development of pay, let the staff involved, this time between the top and bottom can provide different views, and the theoretical knowledge of the staff education, so that they realize the importance and significance of pay.

3. Flexibility of the payroll management system within the enterprise combined with the principle

The payroll management of the enterprise should reflect the flexibility of the characteristics of the enterprise according to the different employees to take different payroll standards, at the same time, to take into account the overall principle of the enterprise payroll. According to the specific circumstances to take differentiated approach to pay management, for the better performance, higher performance, ability to give high pay, and for the performance of the general staff to give a moderate level of pay. This can be a great incentive to motivate employees, mobilize the enthusiasm and initiative of employees to create more value for the enterprise.