• Industry Promotion Research
• /
• v.1 no.1
• /
• pp.159-166
• /
• 2016

The purpose of this study is to present and identify the relationship for the effects of performance-based human resource practices on the organizational effectiveness with focusing on small and medium-sized enterprises around Shandong province of China. The performance-based human resource practice factors include selective employment system, education training system, evaluation system, compensation system and the career promotion ladder opportunity system. As a result, among ten hypotheses, six hypotheses turned out to be the meaningful approaches. In addition there exist some human factors that interfere with the fairness of the evaluation due to the regional and personal factors, assessment system difference among firms. Finally the compensation system and organizational investment for increasing or decreasing will critically affect the enthusiasm of the staff members of firms, and the less invested for thema, the greater the likelihood of their turnovers.

• Journal of Labour Economics
• /
• v.29 no.2
• /
• pp.29-66
• /
• 2006

This study investigates the structural change of wage determination within internal labor market that have occurred around the financial crisis in 1997 by using the personnel data(1996~2000) of a Korean large firm. We take the effect of performance-based pay system to apply on wage determination of workers using Mincerian earnings function estimation. After introducing the annual salary system in the firm, we did not find the fact that the wage effect of seniority decreases, but we found the wage effect of relative evaluation ratings increases. Then, this study identifies the importance of the reward strategy of firm in Korean internal labor market. Finally, we have concluded that although the firm acknowledged the positive effects of performance-based HRM practices, we have not obtained enough evidence on the transformation into such practices because the seniority-based HRM has been traditionally prevalent in the Korean internal labor market.

• Land and Housing Review
• /
• v.7 no.3
• /
• pp.137-145
• /
• 2016

This study aims to empirically verify the positive impacts of PB(performance-based) HRM on the organizational effectiveness in a public corporation. The independent variables are 'PB staffing', 'PB appraisal', 'PB compensation'. The dependent variables are 'JS(job satisfaction)', 'OC(organizational commitment)'. The results are as follows. 'PB staffing' shows positive impact on both 'JS' and 'OC', but 'PB compensation' doesn't show positive impact on both 'JS' and 'OC'. Also, it is found that both 'PB appraisal' and 'PB compensation' do not show positive impact on 'OC'. 'PB appraisal' shows positive impact on 'JS', though. From the empirical analysis, the positive effects of the PB-HRM on the organizational effectiveness are partially verified. It is thought that these mixed results are originated from the particular situation in which the surveyed corporation is placed. After the merger of the corporation in 2009, even though it has introduced various PB-HRM systems, it has been through a harsh time such as wage freeze and return as measures of business normalization. This organizational situation may influence the verification of effectiveness of the normal PB-HRM.

• Korean Journal of Social Welfare
• /
• v.59 no.3
• /
• pp.59-73
• /
• 2007

The compensation system in industrial accident insurance is systemized with "either receiving all or no benefits at all" according to "admited or denied as an industrial accident". Therefore, they are centered on the decision as "industrial accident" or "non-industrial accident", but judging between the two is very complicated, and has inherent conflicting factors. In the early stage of industrialization, industrial accident compensation was based on the indemnity liability for employer's faults. In order to be compensated any damage, the injured worker should prove that the accident was not due to his or her faults. However it was very difficult for injured worker or his or her family to prove the employer's faults, so it was almost impossible to get compensation. Thereafter industrialization progress and improvement of workers' political status lead to conversion from principle of liability with employer's faults to principle of liability without employer's faults. In addition to that, coverage of industrial accident compensation was also expanded. This improvement strengthened the benefit payment principle of "All or Nothing". Even though the "All or Nothing" principle provokes tremendous criticism, the reason why it's difficult for industrialized countries to adopt partial compensation system, is that partial compensation system worsens the administrative hardship, therefore industrialized countries overcome the restrictions of the "All or Nothing" principle with making balance in provisions for any risk to some extent. However, in Korea because the general compensation system for covering medical cost and income loss from accidents, is not equipped, it could be possible to cause acute conflicts with regard to coverage of industrial accidents. Therefore it is required to improve the industrial accident insurance with the acceptance of the significance and logic of discriminated compensation, and create the integrated compensation system in the long run.

• Management & Information Systems Review
• /
• v.35 no.1
• /
• pp.287-305
• /
• 2016

This study confirms that there is a correlation between managers' incentive-compensation system(introduction of the compensation committee) and corporate governance mechanisms (ownership structure, proportion of outside directors, debt ratio, competitive strength), and analyzes whether firm value is affected by corporate governance mechanisms. The purpose of this paper are empirically tested using 318 firm-year data listed on the KRX from 2001 to 2010 and 2SLS(two-stage least square method) were used for the analysis of the hypotheses. The results of empirical tests are as follows. Firstly, there is no correlation between introduction of the compensation committee and corporate governance mechanisms. In addition, the results show that there is a causal relationship between some variables. Secondly, results from the analysis of the impact of corporate governance mechanisms on firm value, only introduction of the compensation committee and foreign investors ownership were analyzed as a positive impact on the firm value. This result means that most domestic firm don't actively used for managers' incentive-compensation system as a useful control device for improving corporate governance.

• Journal of Labour Economics
• /
• v.29 no.3
• /
• pp.75-112
• /
• 2006

We found following evidences from our empirical analysis with the Workplace Panel Survey data of the Korea Labor Institute with reference to 'discord hypothesis' which insists that employee participatory high performance work practices would strengthen not only an enterprise focus in labor-management relations but also the enterprise unionism in the labor union system or collective bargaining structures, so they would probably come into conflict with the superenterprise-oriented industrial solidarity spirit in labor unionism. First, even though there are significant positive management performance effects of high performance work practices, especially in case of mining and manufacturing industries, the positive performance effects of employee participatory work practices such as job rotation ratio of workers and 6-sigma activities were much strengthened relatively in case of non-unionized establishments. Second, the superenterprise-oriented collective bargaining system is also found to give very strong and statistically significant negative performance effects to the introduction and implementation of work teams and performance-related payment systems such as profit sharing, group incentive pay system and so on. Although there are some careful reservations in interpreting the results of our analysis because of data insufficiency, they may have important implications that the industrial labor unionism or the superenterprise-oriented collective bargaining practices exercise the bargaining power to make individual firms be negative or feel it nearly impossible to introduce the employee participatory work practices which can be very favorable to improving those management performance.

• Journal of Labour Economics
• /
• v.34 no.2
• /
• pp.29-52
• /
• 2011

Using occupational wage structure survey(1996-2006) by Korean ministry of employment and labor, we explored the effect of performance based pay on the pay dispersion within firm. Pay dispersion is defined as the within-firm variance of wage residuals after controlling the individual characteristics in the labor market. The results show that introduction of performance-based pay system increases the level of pay dispersion significantly. However, The relationship of employees' ratio who receive performance-based pay and the level of pay dispersion is an inverted U-shaped($\bigcap$).

• Journal of the Korean Society of Food Science and Nutrition
• /
• v.43 no.1
• /
• pp.162-171
• /
• 2014

As the foodservice industry is labor intensive, the efficient management of human resources is an essential element for improving operational efficiency. This study was designed to investigate the performance level of human resource management in self-operated school foodservices and to examine the relationship between human resource management, organizational commitment, and productivity. Whether these factors rated differently by employment and job types was also examined. Data were collected through questionnaires distributed to 60 dieticians and 240 cooks in Seongnam and Yongin. Frequency analysis, factor analysis, the t-test and multiple regression analysis were tested using Minitab. Human resource management practices rated highly in the dimension of employee training (3.51), followed by working environment (3.39), and turnover management (3.37). In contrast, reward management (1.73) and working condition (1.56) received the lowest score. Organizational commitment scored 3.65 points, and showed that dedication (3.82) was the highest score; however, self-esteem (3.50) was the lowest score. For human resource management, there were significant differences between employment types as full time workers (3.85) rated management more highly than part-time worker (3.43). Overall productivity was fairly high, especially in high school foodservices. Only the performance appraisal had an influence on organizational commitment (${\beta}$=0.292, P<0.05). Productivity was positively correlated with human resource management (r=0.432, P<0.001) and organizational commitment (r=0.36, P<0.01). In conclusion, school foodservices need to establish objective performance standards, and increase employee morale by enhancing reward systems and working conditions. In particular, irregular employees require training with job performance standards and given a proper reward program, depending on their performance, to improve organizational commitment.