The role and significance of salary management is determined by the importance and function of salary itself. Because people have different understanding of salary, their understanding of the importance and function of salary is also very different. The author believes that the importance and function of salary can be analyzed from two aspects: employees and employers. From the point of view of general management, its importance and basic function are mainly reflected in three aspects: distribution, regulation and encouragement. Therefore, the role and significance of salary management are also reflected in the following aspects:
(A) Salary management determines the rational allocation and use of human resources.
The rational allocation of resources is considered to be the basic problem of all economic systems. The finiteness and scarcity of resources have been fully proved by theory and practice. Under the condition of limited and scarce resources, it is the rational allocation of resources to combine resources in different production fields through certain means to make the best use of them and give full play to their maximum efficiency.
The management process is essentially the process of allocating and using various resources. Resources can be roughly divided into three categories: material resources, financial resources and human resources. Among these three resources, the allocation and use of human resources is very important, because people are the decisive and dynamic factors in various production factors. As a labor force, its labor ability is varied, and its potential ability tendency and development direction are also very different. Therefore, how to make people as laborers "make the best use of their talents" as much as possible has become a core issue in modern management. In addition, the full play and free development of human labor ability is also related to the ultimate ideal and the highest value choice of the whole social development and the realization of relevant political, cultural and ethical goals. Therefore, the rational allocation and use of human resources is of great significance in social and economic development.
As the basic means to realize the rational allocation of human resources, salary plays a very important role in the development and management of human resources. On the one hand, salary represents the quantity and quality of different labor abilities that workers can provide, reflecting the basic characteristics of labor supply, on the other hand, it represents the type, quantity and degree of demand for human resources by employers, reflecting the characteristics of labor demand. Salary management is to use salary, the most important economic parameter in human resources, to guide human resources to move in a reasonable direction, so as to maximize organizational goals.
There are two different management mechanisms for salary management. One is the government-led salary management mechanism. This mechanism directly determines the wage level and wage structure of different types and qualities of workers through administrative, directive and planned methods, thus guiding the allocation of human resources. This mechanism can't answer whether human resources are really used where they are most needed, and can't determine whether human resources are really used where they can play the most important role, so it is difficult to really solve the problem of rational allocation of human resources. The other is the market-oriented salary management mechanism. This mechanism is essentially an efficiency mechanism, which mainly guides the allocation of human resources through the flow of labor force and market competition, and the salary level and salary difference formed in the balance between supply and demand. Obviously, this mechanism can not only reflect the scarcity of all kinds of labor in time and accurately, but also find the best position when workers change jobs or posts, so as to maximize their salary, thus making the allocation and use of human resources more reasonable. Therefore, in salary management, in order to allocate and use human resources more reasonably, market-oriented salary management mechanism should be adopted as far as possible.
(B) Salary management directly determines labor efficiency.
Salary management is the management of people, and the management of people is essentially to let others do what managers want to do, while the managed do what managers want to do, unless a mechanism is established to make the managed behavior meet the requirements of managers, so that management can succeed. The traditional salary management only has the nature of material reward distribution, and rarely considers the behavior characteristics of the managed. Modern salary management regards salary as the main lever to stimulate labor efficiency. It not only pays attention to motivating workers from the outside with material rewards such as salary, bonus and welfare, but also motivates workers from the inside with spiritual rewards such as work diversity, work challenges, achievements, recognition, responsibility, acquisition of new skills and career development opportunities, thus making the salary management process an incentive process for workers. Under this salary management system, employees can not only improve their salary level, but also improve their position, reputation and value in the organization through personal efforts.
In the traditional salary management mode, this incentive mechanism between labor and salary has not been paid enough attention, such as the traditional grade salary system and post salary system. Although there are differences in wages between the same level and different levels, or between different levels, this difference can also motivate workers to climb up along a vertical structure within the organization, but this incentive mechanism has obvious defects, which are as follows: only paying attention to material incentives and ignoring spiritual incentives; Only the salary difference within the organization is considered, but the influence of external environment changes on the salary of workers is not considered; Only consider the needs of employers and managers, regardless of the behavior of employees and managed people. Especially in the later stage of implementation, because wages are regarded as a tool to ensure the basic living standards of workers, the relationship between labor remuneration is gradually weakened, and the incentive mechanism is gradually lost, which eventually evolves into a "big pot" of more work and less income.
Modern salary management has changed this traditional incentive mechanism and paid attention to the comprehensive application of the following three mechanisms: first, the material mechanism encourages workers to have more and better labor skills by paying according to work, thus improving labor efficiency and obtaining more labor remuneration and better jobs; The second is the spiritual mechanism, which affirms the self-realization of workers in labor through personal contribution rewards, thus embodying the humanistic concept and letting workers understand that only good professional accomplishment can realize personal value; The third is the team mechanism. Through the relationship between employees' personal performance and organizational goals, it encourages employees to participate in the profit sharing of the organization and rewards employees' efforts from the perspective of organizational benefits, thus enhancing employees' team consciousness and cooperation spirit. It can be seen that salary management is related to "the needs of food, safety, social relations and respect, and the satisfaction of these needs, to some extent, the need for self-realization." As can be seen from the above, modern salary management is a dynamic management, which directly determines the labor efficiency of workers. Practice has also proved that successful salary management can often greatly mobilize the enthusiasm and creativity of workers, on the contrary, it will dampen the enthusiasm and creativity of workers.
(C) Salary management is directly related to social stability.
At the present stage in China, wages are the main source of workers' personal consumption data. From an economic point of view, once wages are paid to workers, they exit the production field and enter the consumption field. As a consumer wage, it guarantees the living needs of workers and realizes the reproduction of their labor. Therefore, in salary management, if the salary standard is set too low, it will affect the basic life of workers and the labor consumption will not be fully compensated. If the salary standard is set too high, it will have a great impact on the product cost, especially when the salary growth generally exceeds the labor productivity growth, and it will also lead to cost-driven inflation. Once this kind of inflation appears, it will first have a direct and serious impact on the lives of domestic people. On the other hand, the temporary false excessive demand caused by inflation will also give birth to a "bubble economy" and aggravate the irrationality of the economic structure. Internationally, inflation will increase the price of a country's export products and reduce its export competitiveness. In addition, if the wage standard is set too high, it will also lead to the contraction of labor demand and the expansion of the unemployed population. Therefore, in modern salary management, we should usually pay special attention to the following three issues: First, meet the requirements of expanding and reproducing the labor force marked by improving the quality of the labor force in modern society, so that the determination of salary can meet the needs of expanding and reproducing the labor force under the existing productivity level and avoid causing social problems; Second, in salary management, it is necessary to prevent the turmoil brought by the spiral rise of "salary-price" to social life; Third, the salary level must take into account the employment level to prevent the excessive expansion of the unemployed from causing social unrest.
In addition, here is some information about the importance of salary management, I hope it will help you!
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