Reward-Performance-Related Pay

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Written by:

Aubrey V


Date added:

November 24, 2012








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1 / 271


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Its key aim is to motivate employees and improve firm performance and productivity. Reasons for using performance-related pay (PRP)? • Improve productivity and firm performance • Improve motivation • PRP give great power to managers and reduce trade union influence. • A way to distinguish the good performer from the bad and to reward them accordingly...
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There are some problems related to PRP: 1) There is much doubt about whether performance-related pay actually does anything to do with performance. 2) Since performance related pay usually rewarding employees individually, it is difficult to encourage teamwork. 3) Performance depends on other factors such as job autonomy, job flexibility, working with the ‘right’ colleagues, etc...
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