INFLUENCE OF VARIABLE COMPENSATION ON BUSINESS PERFORMANCE OF THE SPLIT - DALMATIA COUNTY PHARMACIES

Ante Mihanovic, Ante Sanader and Mate Krce

Interdisciplinary Management Research, 2015, vol. 11, 633-656

Abstract: One of the basic prerequisites of effective human resource management is to recognize the importance of motivational systems.A satisfied and motivated worker will work effectively and creatively and with greater focus towards goals.If motivation is absent, there is a danger of lowering the level of work of the best workers to that of the average or even poor workers. Employees are the most important resource of any company, and successful achievement of a company’s objectives depends on their motivation and commitment. The importance of the reward system is reflected in the motivation of employees to do their job with as much quality and efficiency as possible.In most successful companies, in addition to giving a basic salary that is the right of every worker, management introduces a variable aspect of the salary knowing that the basic salary is not enough to motivate employees. The system of compensation consists of tangible and intangible rewards.Tangible rewards are based on improving the financial status of individuals, while the intangible rewards are directed towards the fulfillment of broader human needs that are related to working behavior.Naturally, tangible rewards dominate in practice, but intangible rewards are increasingly gaining in importance

Keywords: variable compensation; stimulation; reward system; Split - Dalmatia County Pharmacies (search for similar items in EconPapers)
JEL-codes: M2 M21 M29 (search for similar items in EconPapers)
Date: 2015
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