The relationship between performance, motivation and compensation in human resource management

In human resource management, performance, motivation and compensation are inextricably linked, and there is a close relationship between them that can promote and influence each other. Here's a brief rundown of the relationship between them:

1.The relationship between performance and motivation.

Performance is an important indicator to evaluate employees' performance and contribution, while motivation is a means to promote employees' enthusiasm and creativity, and the relationship between the two can be described as "performance-oriented incentives". By formulating incentive mechanisms, such as performance bonuses, promotion opportunities, training opportunities, etc., employees can be motivated and creative to improve their performance.

2.The relationship between performance and compensation.

Compensation is an important reward for employees' work, and it is also an important means for enterprises to attract and retain talents. Performance is the basis for evaluating employees' performance and contributions, and the relationship between the two can be described as "performance-oriented compensation". By formulating a system that links performance to salary, such as performance pay and performance bonus, employees can be motivated to improve their performance, and at the same time, they can also provide better salary returns.

3.The relationship between incentives and compensation.

The relationship between incentives and compensation can be described as "incentive-oriented compensation". By formulating incentive mechanisms, such as performance bonuses, options, etc., employees can be motivated to work and creative, improve their performance, and obtain better salary returns.

Performance can be used as a reference for the payment of salary, and the performance pay is formed by formulating the salary according to the performance.

Pay for performance is often used to link performance and compensation in order to motivate employees to do their best work. Broadly understood, performance-based pay is a clear link between the performance of an individual, team or company and compensation, and compensation is flexible and flexible according to changes in the performance of individuals, teams and enterprises; Its narrow understanding is the relationship between employees' personal behavior and performance and salary, and the salary changes accordingly according to the employee's behavior and performance, because the employee's own performance and behavior can be controlled by themselves to a greater extent, therefore, employees can control their own total salary level, so as to achieve the purpose of salary to regulate the performance of employees.

Performance-based pay is one of the functions of business strategy, which involves the core of business management and all aspects of employee motivation theory, and is directly affected by cultural, historical, political and economic factors. The historical development trend of the compensation system is crucial to the feasibility assessment of pay-for-performance. Often, they provide a foundation for understanding what types of compensation employees value most, as well as warning companies what questions to avoid.

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Incentive pay and performance-based pay are both pay systems used by enterprises to motivate employee performance and improve work performance.

Incentive compensation refers to the payment of additional compensation to motivate employees to achieve specific goals or perform well. This compensation is often linked to individual performance, team performance, or company performance as a whole. Incentive compensation can take various forms, such as bonuses, options, commissions, etc.

Performance-based pay is a compensation system based on an employee's performance. It is based on the employee's job performance to determine their salary level. Performance-based pay typically uses management by objectives and performance appraisal systems to evaluate an employee's performance.

If an employee's job performance meets or exceeds expectations, they can earn a higher salary.

Connection: Incentive pay and pay-for-performance are both pay systems that are used to motivate employees to improve their work performance and improve their performance. They are all based on the employee's performance to determine the salary level, which can increase the motivation and motivation of the employee.

Differences: Incentive pay emphasizes that employees can receive additional compensation when they achieve specific goals or perform well, while performance-based pay determines the salary level based on the employee's work performance. In addition, incentive pay is usually a one-time payment, while performance pay is regular and is usually evaluated annually.

Describe the connection and difference between incentive pay and performance-based pay.

View answer analysis [Correct answer] Incentive pay and performance pay are both related and different.

The main connection between the two is:

Both of them can be used as a supplementary form of basic salary, and through the change of payment method, payment standard and payment time to link the interests of employees and the enterprise, and then play a role in motivating employees.

The main differences between the two:

First, there are different ways of influencing performance.

Performance-based pay is based on outstanding performance in the past, and the company does not inform employees of the specific benefit distribution plan in advance, which is a "reward" after the employee's ideal work performance appears.

Incentive compensation is designed to influence employees' future behavior, so that employees can be clear about their own goals, and it is an "inducement" before the employee's ideal work performance appears.

Second, the impact on the labor cost of enterprises is different.

Performance-based pay is usually permanently added to the employee's base salary, which will increase the labor cost of the enterprise.

For incentive compensation, if the pre-set performance targets cannot be met, the incentive compensation will be lowered or not paid, and the incentive compensation may also be automatically reduced. Therefore, the one-time payment of incentive compensation will not have a permanent impact on the labor cost of the enterprise.

Answer analysis] See textbook p259.

In human resource management, compensation planning is an important part, which is an important means for enterprises to attract and retain talents, and improve employees' enthusiasm and creativity. Compensation planning should not only consider how to motivate employees, but also consider how to control costs, maintain fairness, comply with regulations, and other aspects. Therefore, the balance between incentives and governance is an important issue to be considered in compensation planning.

In terms of incentives, compensation planning needs to consider how to develop an incentive mechanism to motivate employees to improve their performance and contributions. Common incentives include performance bonuses, options, benefits, etc. When formulating the incentive mechanism, it is necessary to formulate corresponding incentive plans according to the work performance and contribution of employees, and at the same time ensure the fairness and feasibility of the incentive mechanism, so as to avoid the incentive mechanism being too biased towards a certain group or bringing excessive cost pressure to the enterprise.

In terms of governance, compensation planning needs to consider how to control costs, maintain fairness, and comply with regulations. In terms of cost control, enterprises need to formulate reasonable salary standards and incentive mechanisms according to their own economic conditions and market competition to avoid excessive salary costs and affect the profitability of enterprises. In terms of maintaining fairness, enterprises need to establish a fair salary distribution mechanism to avoid unfair salary distribution, which can lead to employee dissatisfaction and resignation.

In terms of compliance with laws and regulations, enterprises need to comply with relevant laws and regulations, such as minimum wage standards, social insurance, etc., to avoid adverse consequences caused by violations of laws and regulations.

The role of performance appraisal in human resource management:

1. Performance appraisal is the basis for deciding personnel deployment and job promotion.

Before the development of enterprises in the deployment of personnel, it is necessary to understand the use of employees, job analysis and investigation of the degree of matching between people and posts, and the main means of carrying out these tasks is performance appraisal.

Second, performance appraisal is the basis for personnel training.

Personnel training is the basic means of human resources development. Enterprise development should strengthen the education and training of employees. However, there are also some deficiencies, mainly because the enthusiasm of employees is not high, the degree of initiative is poor, the degree of targeting is not strong, the training method is single, and there is a lack of effective education and training evaluation system.

3. Performance appraisal is the need for employees' career development.

Different from the general reward and punishment system within the development of enterprises, career management focuses on helping employees achieve their career plans. In the process of realizing their personal careers, employees will follow the original design of the development path, and constantly transfer from one position to another, from a relatively low level to a relatively high level, until they reach their career goals.

Fourth, performance appraisal is a means to motivate employees.

Rewards and punishments are the main content of incentives, and clear rewards and punishments are the basic principles of human resource management. In order to achieve clear rewards and punishments, it is necessary to scientifically, strictly and fairly carry out performance appraisal, and determine the object of reward or punishment and the level of reward or punishment based on the performance appraisal results.

5. Performance appraisal is the basis for personnel appointment.

The standard of personnel appointment is to have both ability and political integrity, and the principle of personnel appointment is to employ people according to their strengths, and tolerate people's shortcomings. In order to judge the status of the personnel's moral integrity, strengths and weaknesses, advantages and disadvantages, and analyze what kind of position they are suitable for, they must go through performance appraisal.

6. Performance appraisal is the basis for salary distribution.

Distribution according to work is recognized as the principle of employee distribution for enterprise development, and it is self-evident that accurately measuring the quantity and quality of "labor" is the premise of implementing distribution according to work.

7. Performance appraisal is the guidance and incentive for leading cadres of enterprise development.

By giving full play to the guiding and motivating role of performance appraisal, we will further enhance the executive ability of enterprise development leaders and cadres, promote enterprise development leaders and cadres to firmly establish and implement the scientific concept of development and correct performance outlook, and form an atmosphere of serious management and single-minded development.

Performance appraisal is a systematic project, which penetrates into all aspects of enterprise management, and the great effect of ensuring the normal operation of enterprises and improving the economic benefits of enterprises cannot be ignored. The operators and human resource management personnel of enterprise development should take the initiative to strengthen the learning of performance appraisal related knowledge and arm the modern management system with scientific theories.

Performance appraisal plays an important role in human resource management, which is mainly reflected in the following aspects:

Evaluate employee performance: Performance appraisal is an important means to evaluate employees' work performance and performance, which can help enterprises understand the performance of employees' work ability, work attitude, completion and other aspects, and provide an effective management basis for enterprises.

Motivate employees' enthusiasm: Performance appraisal can motivate employees to work more actively, improve employees' work enthusiasm and enthusiasm, and then improve the performance level of the enterprise.

Promote employee growth: Performance appraisal can help enterprises understand the work ability and development potential of employees, provide personalized career development planning and training plans for employees, and promote employees' career growth.

Improve salary management: performance appraisal is an important basis for salary management, which can formulate scientific and reasonable salary policies and incentive plans according to the performance and contribution of employees, so as to improve the fairness and rationality of salary management.

Promote communication and cooperation: Performance appraisal can promote communication and cooperation between employees and leaders, establish good working relationships, and enhance team cohesion and collaboration skills.

Hello, we should consider (1) enterprise development strategy and development stage factors When designing salaries, we must fully consider the development strategy of the enterprise, which is consistent with the principle of strategic orientation. If the enterprise implements a differentiation strategy, it is necessary to implement competitive compensation for key positions; If the company is implementing a cost leadership strategy, it is not necessary to pay too much competitiveness. In fact, the enterprise development strategy should be decomposed to obtain the human resource strategy and implementation measures, in this process, the remuneration concept and salary strategy will be reflected.

External environmental factors include market competition factors and social and legal environmental factors. Market competition factors include market salary level, market talent supply and demand, competitors' salary policies and salary levels, the characteristics and competitive situation of the market where the enterprise is located, etc.; However, the social and legal environment factors need to consider the local minimum wage standard, the relevant overtime wage regulations, the relevant national insurance benefits and other policy factors. When formulating a compensation strategy, an enterprise should be constrained by the company's win-win situation and the company's financial and grand business situation, and should form a win-win situation for shareholders, management and employees.

If the company's profitability is very good, the financial cash flow is sufficient, and the competitive salary is implemented, the income gap between internal employees should be appropriately widened; If the company's profitability is poor and the financial cash flow is tight, then the salary level should not be too high, and the income gap between internal employees should not be too large to maintain the stability of employees' minds.

Answer]: A This question conceals the role of performance management.

Performance management is one of the basic tasks of human resource management. Its functions include: (1) providing a basis for the effective implementation of other human resource management links, such as salary payment, personnel allocation and selection, and helping the organization to implement employee development more effectively.

2) Performance management can be used to evaluate the implementation of plans such as personnel recruitment and employee training.

The BCD is consistent with the conceptual formulation, and item A is not mentioned, which is a interference option.