Human Resource Management & Information Management (MBA) pro 6 - Essay Example

Performance related Pay Performance related pay is one of the strategies used by the employers to increase the productivity in their business and to get their employees to work in a direction focused on the company objectives. As tempting as it sounds, PRP has not yet proved itself to be highly motivational for employees. This might be because of the rivalry that arises or distraction from main focus that is work to money but, PRP is still a very widely practiced approach.Performance related pay is a prevalent mode of reward everywhere, and this is because of many reasons.

One of the main reasons for its prevalence is the general perception of the employers and organizations. Generally it is believed that PRP is a good tool to set a goal for the employees. It sets a criterion for the employees; and so to fulfill that out of their personal welfare, they indirectly help in gaining the objectives of company in a better, more focused and speedy way.PRP does not only act as a reward system, it also works as a silent warning or alarm system for the employees. When lazy or inefficient employees see their colleagues getting benefits, they are naturally alarmed by their situation.

Thus inefficient people come to know through PRP that it is all about “survival of the fittest” thing and so they strive to work in a better way.PRP is a device that articulates the goals of the employers and the company in a better way. By setting criteria for getting performance related pay, employers clearly define what they want from their employees. This might be one of the reasons that PRP still holds importance for the employers. Thus it helps the employers to attain their focused goals in a better and faster way.

Another reason for the prevalence of PRP in organizations is the notion that it targets and reward the deserving employees. Naturally some employees are more efficient and hard working than their colleagues, so this system rewards them for their special efforts and thus encourages them to keep up their good work.Finally I think PRP has an enduring interest for employers just because it is used everywhere. It has become an important phenomenon and is widely practiced so employers use it also because of the peer pressure in the corporate world.

So PRP is here to stay although there is no solid proof about its motivational qualities.