We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Performance Related Pay - Essay Example

Comments (0)
Although the relationship between pay and performance is complex and problematic performance pay remains of central interest to employers as a human resorting strategy aimed at improving organizational performance. Comment critically on the above statement.
Download full paper

Extract of sample
Performance Related Pay

Download file to see previous pages... A critical look at performance pay however points to the fact that this method utilizes only performance as the determinant factor. It neglects other important determinants of pay such as no knowledge and skills, educational background and orientation, possession of relevant experience and other extraneous factors that play equally important roles in determining the amount of salary. The performance pay system may sometimes lack proper control system therefore giving superiors unwarranted control over the system. The system relies on money as the sole motivator hence it assumes that workers are so interested in monetary gains such that they will increase production as long as they are paid for it.
However there exists checks and balances which if put in place will make the implementation process of this system all much easier and acceptable to the employees. Many organizations have turned into the performance pay system as their basis of rewarding, reviewing salaries as well as for job evaluation. Also many organizations have resorted into the performance pay system in order to motivate their employees who achieve outstanding and exemplary results. The pay system just like many others is vulnerable to abuse and misuse. Research has shown that there have been many cases of discrimination and segregation, which happens in organization as a direct result of an employee's gender, colour, race, political orientation as well as religious affiliation.
Performance Pay and Unfair Discrimination
When discrimination is applied to employees, it contributes to de-motivation and therefore affecting output. Countries have put in place anti discrimination laws to check on arbitrary and unfair discrimination against employees. Discrimination can be in various forms such as, on gender, race, nationality, marital status, ideology, political inclination, disability or religious affiliation. Anti discrimination laws protect employees and ensures that they are treated in respect to terms entered in the contract of employment. Employers should ensure equal pay regardless of individual backgrounds or circumstances. Equal pay is different from identical pay in that the latter depends on other factors such as length of service and age. Discrimination can either be direct, i.e., whereby and employer treats a person less favourably than others on the grounds of sex, marital status or race.
Indirect discrimination occurs whereby the effect of a condition of employment is discriminatory.
Employers should offer or make adjustments to working conditions in order to ensure that vulnerable groups are not at a disadvantage and thus they can perform or deliver like the rest of the employees. Victimization should be eliminated for it will affect the output of the victim and eventually lead to unfair reward.
Management of companies can use the performance pay system as a human resource strategy in order to attract and retain the best employees.

There is a significant relationship between pay and performance in order for organization to attract appropriate staff their pay must look relatively attractive. While it is in the interest of most employees to earn the best salaries possible it is worthy noting that the interest of employer and employee significantly differ. For the employer the interest is more on employee performance hence they will not mind paying more in order to getting more ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
Strategic Human Resource Management. Performance-Related Pay Systems
Based on this research the desires of employees are often significantly different from that of their employers. While employers seek high production, employees do not generally have loyalty to the overall outcomes of the company. This disparity means that many employees often do not work at their full potential and consequently the productivity of the company itself is lower than it could potentially be.
12 Pages(3000 words)Essay
Is Performance Related Pay a Proven Path to Improving Employee Performance and Job Satisfaction
The paper operates mainly based on research question which can be stated as follows: Is performance related pay a proven path to improving employee performance and job satisfaction? The researcher states that the performance related pay systems do have some inbuilt lacunas, and may not serve the desired purpose, if not imbued with some salient attributes.
8 Pages(2000 words)Essay
Performance Related Pay in TYLT Mobile
The ultimate purpose of a Performance Related Pay system is to encourage employees to link their expectation with the organisation's goals and work hard to improve themselves on an incremental basis (Alberto, 2011). This implies that the PRP system of a business aims at identifying the improvement in employees and compensating them accordingly.
11 Pages(2750 words)Essay
History, Relevance in Todays Market
With the passage of time, human resource is being viewed as the strategic asset of the organisations. For this reason, organisations are giving special attention to increase the performance and output of the human resource and employees. In order to increase the productivity and performance of the employees organisations are directly linking the incentives and pay with the output and performance.
3 Pages(750 words)Essay
Reward management and performance related pay
Human Resources Management is one such area that is gaining importance by the day. Human Resources Managers work towards the fundamental problem of creating a balance between the expectations of both, employers and employees.
6 Pages(1500 words)Essay
Performance Related Pay Essay
The reason for this question has its strong base on the potential disadvantages PRP systems have. This paper will examine how systems of PRP can impact upon employees in the finance sector, with a specific focus on both productivity levels and the quality of service.
15 Pages(3750 words)Essay
Performance Related Production
Studies have reflected the importance of employee participation programmes and group based pay incentives. These measures have met with success, and so too have profit and gain sharing programmes. 'High-performance' and 'High-involvement' are two business terms related to employees and production.
20 Pages(5000 words)Essay
How might performance-related pay (PRP) improve performance Are there other forms of financial incentive that could be better suited to the task
At the same time, the personal goals and career development of the employees have also become major work paradigms that must be addressed by
8 Pages(2000 words)Essay
Linking pay to employee performance ( related pay performance )
icant portion of his total cost of operations; pay can be used to improve employees’ performance and as a result organisational effectiveness, and also has an impact in attracting and retaining an effective workforce. For the employees, compensation has a direct effect on
12 Pages(3000 words)Assignment
Human Resource management: Performance-related pay literature review
The review will critique important elements and aspects of the fundamental theories that define motivation and employee commitment. This will include important theories like expectancy
11 Pages(2750 words)Essay
Let us find you another Essay on topic Performance Related Pay for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us