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Write a 19 pages paper on pay for performace: why it is a good idea. 1117). The relationship between compensation systems and organizational performance has attracted attention in the modern competiti

Write a 19 pages paper on pay for performace: why it is a good idea. 1117). The relationship between compensation systems and organizational performance has attracted attention in the modern competitive business environment. The primary subjects addressing compensation systems include administration, economics, sociology, and strategic human resource management. Pay for performance is the best approach for enhancing efficiency and effectiveness in modern organizations through motivation enhancement, maintenance of focus on productivity, and efficiency in operations.

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The primary focus of this paper is to analyze the use of pay for performance systems in organizations including the system’s contribution to improvement of efficiency and effectiveness. Pay for performance is believed to enhance worker performance because workers strive to earn extra income by improving their productivity. The paper examines the aspect regarding the compensation of employees, focusing on the relationship between remuneration and worker productivity. Pay for performance is actually one method of remunerating employees, but based on their contribution to the organization’s overall improvement (Kim, Sutton & Gong, 2013, p. 48). Remuneration has been established to be direct proportional to worker productivity because employers make payments to workers from the money they earn for the companies.

There is a positive correlation between compensation systems and organizational performance, which has attracted widespread attention in the modern competitive business environment. For example, The Affordable Care Act broadens pay-for-performance efforts in hospitals by establishing a Hospital Value-Based Purchasing Program.