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Importance of Hrm Issue

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Importance of HRM Issue
1.When we talk about organizaiton’s management, we cannot ignore the compensation management of HR department. The compensation is directly impact on organization’s budget and employ’s performance.
2.First the first aspect, we all know that organization’s pay level is based on the organization’s goal, market dara, legal requirements and principal fairness. (Noe, Hollenvech, Gerhart, Wright, 2011, p363). Because capital is limited, organization’s HR department often makes the upper limit. However they still want to abstract talent to perform best (work performance management), so there is a balance to keep on the pay level.
3.“Compensation satisfactory degree is a relative concept refers that the employees are to improve the motivation and source of economic progress based on the enterprise, they have occupied absolute proportion in total capital” (Michael Armstong&Helen Murlis2000).
4.Some staff's work enthusiasm is not high. Some employees lack the sense of belonging to a company, resulting in the loss of passion. So companies attach great importance to this problem. To establish a good working relationship, provide the appropriate level of compensation is an important aspect(Kenan S.Abosch and Janice S.Hand,1 998). .“Satisfied or not is one of people’s mood and emotional reactions, from the point of equity in compensation, when determining whether satisfied or not for people, people tend to compared with reference, if people feel input and output ratio is the same as with reference object, people will feel satisfied” (E Jane Amault,Louis Gordon,Douglas HJones,G Michael Phillips. 2001).

Compensation knowledge:
5. So to energized, direct, control employees’ behavior, organizations select forms of incentive pay, such us profit sharing, stock ownership incentives. Incentive pay also raises fairness problems. Communication and

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