Journal of Organization and Human Behaviour

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Integration of Performance and Compensation Management System in CPSEs in India


Affiliations
1 Institute of Public Enterprise, Osmania University Campus, Hyderabad., India
     

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A primary HR tool that is used to affect motivation and performance is compensation (Lawler, 1971). Recently, more emphasis has been on the use of variable compensation schemes, instead of fixed forms of pay in order to increase employee productivity and thus firm performance. As per the pay-scale of the 2nd Pay revision for the Central Public Sector Enterprises (CPSEs) in India, the CPSEs will now have variable pay along with the fixed pay as an integral component of compensation structure. Keeping the 2nd pay revision in mind, the paper tries to explore the prospects of a transparent and robust performance management system in place and as well as to study the concept of performance related pay and its implication with respect to CPSEs in India to establish a performance oriented work culture.

Keywords

CPSEs, India, Compensation Management, Performance Management System, Performance Related Pay
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  • Burke, L. A. & Terry, B. (2004). At the intersection of economics and HRM: an argument for variable pay schemes, American Business Review, 22, 88-92.19th Dec, 2010. http://www.dpe.nic.in.

  • Lawler, E. (1971), Pay and Organizational Effectiveness: A Psychological Perspective. New York, McGraw-Hill.

  • Mark, R., Marc, W., Masson & Rebecca (2007).Differentiating Rewards overcoming pay for performance struggle, Journal ofCompensation & Benefits, 23, 6, 27-30.

  • A Study Report on Comparative Compensation in Public, Private and Other sector within and outside India, Submitted by IPE to 2nd Pay Revision Committee for Executives of CPSEs.


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  • Integration of Performance and Compensation Management System in CPSEs in India

Abstract Views: 305  |  PDF Views: 0

Authors

Punam Singh
Institute of Public Enterprise, Osmania University Campus, Hyderabad., India

Abstract


A primary HR tool that is used to affect motivation and performance is compensation (Lawler, 1971). Recently, more emphasis has been on the use of variable compensation schemes, instead of fixed forms of pay in order to increase employee productivity and thus firm performance. As per the pay-scale of the 2nd Pay revision for the Central Public Sector Enterprises (CPSEs) in India, the CPSEs will now have variable pay along with the fixed pay as an integral component of compensation structure. Keeping the 2nd pay revision in mind, the paper tries to explore the prospects of a transparent and robust performance management system in place and as well as to study the concept of performance related pay and its implication with respect to CPSEs in India to establish a performance oriented work culture.

Keywords


CPSEs, India, Compensation Management, Performance Management System, Performance Related Pay

References