Research On The Impact Of Salary Gap On Organizational Performance In B Power Grid Companie

As human resources are the first factor in the development of a company,the behavior of employees has a crucial impact on the normal operation of the company.Numerous studies have shown that pay incentives have a significant impact on the performance of companies.As a result,pay is a necessary means of motivating employees.In the day-to-day management of a company,managers are willing to be paid more than ordinary employees to create positive incentives to improve organizational performance,given that managers are burdened with more responsibilities and tasks,and that they generally possess higher quality human capital.However,when ordinary employees find that they are paid less than their line manager,this can lead to negative emotions that can discourage them from working and affect performance.For employees in the same position,the pay gap between each other will have a psychological impact on the employees,by pulling the pay gap of the staff in the same tier,motivate employees to improve performance is also one of the means to drive employees.Based on the background of the reform of the three systems of state-owned enterprises,breaking the tradition of employees’ iron rice bowls,employees’ pay has formed a large gap,thus,this paper takes B Grid Company as the main subject of research,the main concern is how much the pay gap between employees of B Grid Company,and how the gap works on organizational performance,so as to propose a multi-dimensional pay gap optimization solution for B Grid Company,in order to achieve the promotion of organizational performance The ultimate goal is to promote organizational performance.The main significance of this study is the practical implications for Grid B in addressing poor organizational performance and providing lessons for similar state-owned enterprises.Through the study of the relationship between the size of the pay gap and organizational performance in B Grid,we will further explore a reasonable pay gap for the company,and also provide a reference basis for a more complete and standardized pay system for state-owned enterprises in China,so as to improve the motivation of employees,reduce the turnover rate of employees,improve the management level of the company,improve efficiency and promote corporate performance through pay gap optimization management.This paper is divided into seven main parts to develop.The first part is the introduction,which briefly introduces the actual situation of Grid Company B,clarifies the significance of the study,and in this part outlines the research ideas and methods,main contents and framework of the full paper.The second part is a review of relevant literature,mainly outlining the findings and rationale of previous studies on the pay gap and organizational performance.The third part is a specific analysis of Grid Company B,in terms of its development history and organizational set-up as well as an introduction to the pay system and an analysis of the pay gap within Grid Company B.The fourth part is an analysis of the organizational performance of Grid B in 2021 and the organizational performance of the company’s departments.The analysis of organizational performance provides a full three-dimensional analysis of the current problems and dilemmas faced by Grid B.The fifth part is based on the tournament theory,equity theory and the internal situation of Grid B.A multiple regression analysis of the horizontal pay gap and vertical pay gap and organizational performance of Grid B is conducted to analyze what effect the two pay gaps have on organizational performance.The sixth section presents the pay gap optimization solution for Grid B.Based on the results of the first five sections,reasonable and objective recommendations are made to improve the organizational performance of Grid B from multiple dimensions.The seventh section presents the conclusions as well as the limitations and outlook of the study.