International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Performance Management and Compensation as Drivers of Organization Competitiveness: The Philippine Perspective
Pamela F. Resurreccion

With the influx of foreign multi-national companies in the Philippines and the inevitably increasing competition as a result of globalization, Filipino-owned small and medium enterprises (SMEs) are confronted with the challenge of changing paradigms of bureaucracy, centralization, stability, static and rigid policies and procedures, and sheer complacency with traditional practices. The study was conducted to determine the extent of implementation of choose performance management and compensation practices in Filipino-owned SMEs and its underlying relationships with organizational competitiveness. This study found that human resource management practices in performance management and compensation, particularly employee benefits were all found to be significant predictors of organizational competitiveness. This finding signify that Filipino – owned companies are giving more emphasis on employee benefits to support its thrust of achieving competitiveness, further suggesting that employees are more motivated to perform if employee benefits that allows flexibility and convenience are provided.

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