ACHIEVING COMPETITIVE ADVANTAGE OF A COMPANY THROUGH EFFICIENT MANAGEMENT OF WAGES AND EMPLOYEE REWARDS

Tihomir Zec, Vice Mihanovic and Jerko Zunic

Interdisciplinary Management Research, 2015, vol. 11, 1133-1145

Abstract: This paper discusses the correlation between the model of remuneration of employees and the competitive advantage of a company. Business performance of each company is closely linked with the profile of staff represented in the company and the properly planned and executed strategy and policy of wages and rewards. In conditions of market economy, where the effi ciency of work and dedication of employees guarantees improvement of business processes and business performance improvement of a company, great importance is given to the selection of an appropriate system of rewards. By choosing a system of rewards that meets the expectations of employees, the basic preconditions of a successful business are created; since only a motivated and satisfied employee guarantees the efficiency and competitiveness of a company. In the highly competitive environment a company needs to focus on the achievement of a specific, sustainable competitive advantage, because it is the key to long-term profitability. A well defined and transparent management system of wages and rewards allows for an increase in business performance by rewarding the extra effort of employees in achieving set objectives.

Keywords: competitiveness; intellectual capital; the wage system; reward; wage as a form of compensation; human resources. (search for similar items in EconPapers)
JEL-codes: D61 G14 H21 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:osi:journl:v:11:y:2015:p:1133-1145

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