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The Importance of Performance Related Pay in Motivating Employees - Research Proposal Example

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Though there are intrinsic motivational factors as well, but this fact cannot be denied that without monetary compensation employees may not be interested in job. Among different types of…
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The Importance of Performance Related Pay in Motivating Employees
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Download file to see previous pages There has been several studies on the same topic; however, the findings are varied. Nonetheless, most of the researches that investigated the same area revealed that in longer run performance-related pay (PRP) is not motivating for the employees (Boachie-Mensah and Dogbe, 2011; Forest, 2008; Marsden et al., 2000; Perry et al, 2009). The researches quoted the reason for demotivating effects of PRP as biased appraisal systems and its effects on employees who are not benefited from PRP techniques. These findings are accomplished by several researchers but PRP is still in practice which indicates that there must be something behind this technique that motivates employers to use it in their organisations.
These differences in theory and practice indicate a need to link PRP techniques for employee motivation with entire compensation system (practises) to ensure its positive effects are realised. The underpinning issue identified by this study is that how PRP can be integrated into the compensation system in a way that it works as a motivational tool for the workforce. The findings from other research studies that guide the stance of this study are stated below;
Based on these findings it cannot be said directly that PRP is not motivating but it can be said that fair appraisal systems may help motivate employees and encourage them to achieve the set standard. This study explores how the issues identified by the research in PRP can be tackled and how it can be used as a strong motivation tool. The guiding statement for this research is that PRP is motivating however there should be elements that needs to be integrated if performance related pay is to be used as a motivational tool. Now the question is what elements can make PRP motivational for employees.
Perry et al (2009) suggested that in order to make PRP work, it is important to focus on robust ...Download file to see next pagesRead More
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