This research aims to discuss the effects of nursing staff's cognition and their job satisfaction, organizational commitment of a case hospital after the implementation of the performance pay system since January 1, 2005. Results are provided as references to hospital for establishing important policies in the future. The object of study included the nursing staff began working and still working at general and special wards before January 1, 2004. A total of 232 questionnaires were distributed, and 188 were returned; the number of valid questionnaire was 179, and the valid return rate was 77.16%. The results showed that after the hospital has implemented the performance pay, over 80% nursing staffs have developed positive recognition toward the system. Under the new system, In the respect of nursing staff's cognition over the job satisfaction, the one with higher cognition toward incentive salary will show higher satisfaction over "the coordination ability established with colleagues," "obtaining fair distribution on job" and "supervisors ask subordinates for opinions when bringing about policy making." In point of organizational commitment, the level of cognition on "I can learn job direction and goal more explicit" and "I should be adamant to my then correct decision to seek job opportunity in this hospital" is presented in direct proportion. It is suggested to investigate the needs of nursing staff first, and then to design a long-term program for a more accurate estimation in the future.