한국지방행정연구원

The Korea Local Administration Review

Year
2005-03
Author
Shin, Yeol․Jang, Duck-Hee

An Analysis of the Link between Performance and Employee Compensation in the Medical Center of Local Public Enterprises

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The purpose of this study is to analyze the relationship between compensation and managerial achievement in the medical center of local public enterprises. For this study a 4-year panel data of all 33 centers during the years 1999 - 2002 was used.
The analysis shows that although managerial achievement continued to decrease, the amount of compensation that the employees received actually increased. To get a clearer picture, a piecewise linear regression was performed, which showed the same results. The salary was higher in the medical institutions located in Seoul, Busan and Gyeonggi province where the medical environment is rather good compared to those in the smaller cities where the need for these medical centers are more critical.
To resolved this disparity, this study suggests assuring the correlativeness between managerial achievement and compensation, reforming the compensation system at the institutional level, and reviewing and repositioning the organization and its personnel.