Research On The Performance-related Pay In Chinese Institutional Organization Based On Fairness Perspective

Wages as an important form of distribution of income, has been not only an importanteconomic security to meet the basic needs of protection of employees, but also an effectivemeans of enterprises to attract talent, motivate employees and promote the competitiveness.With the deepening of China’s economic reform, the personnel system reform of publicinstitutions is gradually in-depth, and the wage system of institutions in the past has beenso difficult to adapt and even hinder the development of institutions that the reform in thepresent wage system of institutions is imperative. A fair performance-related pay reformprogram is one key factor to implement the performance-related pay system successfully.Studies have shown that staff’s justice perception of salary contribute to maintain thepositive attitude of the staff to the organization; Conversely, the attitude of the staff to theorganization will be negative, thereby affecting work behavior and performance. Theperformance-related pay reform in public institutions still faces with the problem offairness. So how to face with staff’s justice perception of salary become an importantquestion for discussion.This article mainly by the current performance-related pay reform program of aresearch institute as an example, through in-depth investigation and analysis of itsperformance-related pay system, find the problems existing in the research institution’sperformance-related pay reform program, and put forward the improvement proposal. Onthis basis, the institution performance-related pay reform program from the perspective offairness of the proposed own understanding and view.Taking Humanity Assumption Theory, Motivation Theory, Equity Theory and themodern wage theory as its basis, by studying literature, investigating, statistical analysisand case study, the performance-related pay reform in public institutions was discussedusing a research institute as a sample. Form the following three conclusions:Firstly, prominent problems existing in the current performance-related pay reform isfairness. In the process of implementation and the evaluation results of the performanceprogram, the staff’ sense of fairness is not strong. It effects how the incentive mechanismfunction. Staff’s sense of fairness can interfere with employees’ job satisfaction andengagement. Secondly, the establishment of the performance assessment is a criticalconcern in the performance-related pay reform, that is, how to set up the performanceassessment adapted to the characteristics of the institution. Because the institution is a public and service department, the performance-related pay reform should start with thepeople oriented service ideal, coordinate efficiency and fairness, to avoid newcontradiction and risk. Thirdly, the implementation of performance-related pay reformshould have perfect, fair appraisal system, to reduce the subjectivity of the inspection, butto make every employee to understand accurately the performance, to prevent theemergence of the contradiction caused by the deviation of understanding.