The Construction and Evaluation of Consistency Between Compensation Management and Strategy

Abstract

As an important function of human resources management, strategic compensation management plays a significant role in motivation and constraint. How compensation management be consistent with operation strategy of enterprises, and whether compensation management can support execution of enterprise management strategy effectively have become research hotspots to many enterprises and scholars. To impel further development of theory in this field, research and evaluation of consistency between compensation management and enterprise strategy should be strengthen. Therefore, this paper constructs a consistency model of compensation management and enterprise strategy. Based on this model, an evaluation model about consistency between compensation management and enterprise strategy is also built. At last, a practical example is shown to explain the evaluation methods.