The Fatal Flaw in Pay for Performance
From the point of view of productivity, it is production or other economic activities of human labor input the ary funds manifestations, is the final cost of the ponents. In the conditions of market economy, enterprises mainly through paid to the accounting or measuring production and other economic activities of human labor consumption. Due to the pressure petition, enterprises must consider cutting labor costs.
From the point of view of the relations of production, compensation for the e distribution reflects the e of the staff was the allocation of shares.
Under the current social system of our country, compensation is the main sources to the means of subsistence consumption of workers. It have a major impact on the level of consumption and the consumption structure , and consumption actually is the process of reproduction labor, reproduction of labor also has an important influence in the next phase of production. Therefore, pensation’s level has great significance for sustained and stable increase production or promote other economic activities.
Such a dual character pensation, it decided that pensation management is actually reduce expenditure and e distribution on production costs and that continued to improve pay levels of this contradiction and make an adjustment.
(2)The function pensation
The function pensation may from the enterprises, workers and social aspects to inspect:
①From the point of view of the enterprises, compensation has the following functions: First, the increment functions. Compensation is not only the costs of purchase labor by enterprises, as well as the investment of live working, it will give employers greater than expected cost benefits. The existence of such benefit, provided the impetus mechanism of labor employment and investment labor for the enterprises.
Second, the promoting functions. Compensation is an evaluation of workers and operators’ performance, reflect the qual
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