The Determinants of Compensation Strategy: An Empirical Research in Taiwan

• Main Authors: Pierce Yang, 楊川逸
• Other Authors: Nien-Chi Liu
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/92350050835111349945

碩士 === 國立中央大學 === 人力資源管理研究所 === 92 === Organization must allocate its limited resources because of pursuing efficiency and effectiveness. Compensation is the most flexible strategy to achieve company’s goal. Not only can it influence employees’ behavior such as attraction, retention and work-related performance, but also help organization to have better performance. Therefore, this study has two general focuses. Firstly, after reviewing the literatures on compensation, we will figure out the dimensions of compensation. Secondly, there are many determinants influencing organization to design pay system and examining which factor will influence which dimension. This study used questionnaires to survey the HR managers who are responsible for employees’ compensation. Sampling unit is firm and there are 1106 public listed companies, including 672 companies listed in TSE (Taiwan-Stock-Exchange) market and 434 companies listed in OTC (Over-The-Counter) market. Findings indicate that dimensions of compensation strategy are not exclusively; instead they are highly interrelated. Organizations can choice pay strategy depending on their consideration and offset each dimension’s shortages by one another. The usage of compensation strategy is rather flexible and complementary .The results also suggest that Employee Participation is very important factor when designing compensation system. Although the organization have an authority to design and implement policy, it is more important for company to make employee buy in the program. Only when understanding the need and expectation of members can organization motivate employee by reward system.