Theoretical aspects of remuneration and performance in the context of providing general education in the conditions of Latvia regional disparities

Ensuring a consistently high level of education performance across Latvia is difficult because the current funding arrangements do not provide equal opportunities to pay for all teacher responsibilities in regional and urban schools. As a result, teachers' performance may vary. The article introduces the key elements between remuneration and performance. Remuneration is defined as a motivating factor for employees and the organization. The aim of the study was to investigate the theoretical aspects of remuneration and to identify performance determinants. This article addresses two research questions: 1) whether remuneration and salary have different meanings, and 2) wheather remuneration is closely linked to performance. The study used a monographic or descriptive method, a graphical method, and a synthesis and analysis method. The results revealed that remuneration and salary have different meanings. Literature research involves a theoretical framework that reflects the relationship between remuneration and performance. This relationship is based on motivation that has been researched by using equity theory. Remuneration is part of the system as motivational element that provides specific performance in organizations. The system also identified the potential impact of organizational culture and policy on performance. It was also recognized that the level of skills and knowledge can influence performance. The elements of remuneration, performance, motivation, politics and cultural elements of organization are combined in a system. Thus, in the context of current regional development in Latvia, the authors assume that the "Money follows the student" financing model has adversely affected teacher performance, as remuneration is a key motivational component.