Research On The Effect Of Performance Pay Reform In Public Institutions

With the continuing development of China economy, public institutions have initiated overall reform, including post, performance pay and the classification of public institutions. Among these, performance pay reform, since it is directly related to the interest of public institutions staff, has received great attention. The result of Performance pay will influence staff’s motivation to work and the development of public institutions. Thus, the main concerns of public institution reform are how to deepen the performance pay reform, how to develop a scientific, reasonable, fair and effective distribution system of performance pay and how to ensure income equity and staff’s motivation.Based on the equity theory and motivation theory, this paper analyzes how performance pay plays an important role in reflecting and promoting staffs performance.515 staffs from some public institutions in Guangxi communications system took part in the survey. According to the quantitative analysis of the survey, this paper gets the results of performance pay’s effect to human resource and finds that there are 3 problems in the reform of public institutions of Guangxi communications system. First, performance pay standards of different posts is not reasonable. Second, performance pay reform has not got an ideal result in terms of motivation. Third, the imperfect result in certain degree has caused human resource loss.Aiming at the three problems, this paper proposes some solutions, including perfecting performance pay eform, stablishing cientific erformance ay increasing cheme, einforcing apital ource anagement of performance pay, modifying the performance pay gap of different posts and perfecting performance evaluation system. With all these measures, performance pay reform in public institutions might get a better result.