PERFORMANCE BASED SALARY

Performance Based Pay: A Well Structured Incentive Program can Boost Productivity and Instill a Sense of Shared Responsibility among Employees



Table of Contents

Introduction3

Title of the Study3

Topic Overview3

Aims and Objectives of the Study3

Significance of the Study3

Proposed Research Question/s4

Literature Review4

Incentive Programs5

Performance based Salary as Recognition and Rewards5

Motivation and Empowerment6

Work/Life Balance7

“Live Long and Prosper”7

Evaluation and Review Process9

Proposed Methodology11

Literature Selection Criteria12

Search Technique12

Theoretical Framework12

Proposed References14

Performance Based Pay: A Well Structured Incentive Program can Boost Productivity and Instill a Sense of Shared Responsibility among Employees

Introduction

Title of the Study

“Performance Based Pay: A Well Structured Incentive Program can Boost Productivity and Instill a Sense of Shared Responsibility among Employees”

Topic Overview

Performance base pay is a form of compensation that is reserved for hedge fund employees. The compensation will almost always be based on a percentage of total assets managed, and will be paid out if the portfolio manager delivers returns above a pre-specified level. (Galloway 2007)

Aims and Objectives of the Study

The aim of this study is to discuss performance based salary system and how excellent incentive programs can boost employee productivity and inculcate in them a sense of shared responsibility.

Significance of the Study

It is observed that the high performers in an organization can crave challenge and responsibility; they feel most fulfilled when being pushed to their limits. Along with the demanding nature of life at a public relations agency, employees expect a better work/life balance and extensive career development opportunities. (Guthridge 2008) Public relations firms should develop a philosophy that ensures employees are stretching their skills on a regular basis and institute several programs that will meet their cultural expectations to prevent unwanted turnover. Effective two-way communication must be in place at firms to uncover employees' expectations and to create a motivational environment to achieve the shared goals for success. (Hart 2005)

This study is significant in this sense that it explores the incentive programs which can improve employee productivity in terms of performance and behaviour.

Proposed Research Question/s

With respect performance based salary system what incentive program can be implemented in an organization in order to boost employee productivity and enhance their sense of shared responsibility?

Literature Review

In its 2007 report, the Hay Group cited “profound employee engagement” as a key factor in an organization's reputation. The Hay Group defines engagement as the “result achieved by stimulating employees' enthusiasm for their work and directing it toward organizational success.” (Lawler 2008) Additionally, the study notes that these factors become increasingly important during times of economic uncertainty and downturns in the capital markets. The Most Admired Companies are those that maintain high levels of loyalty and motivation in hard times. One of the ways they recommend organizations achieve this is by ensuring that opportunities for personal advancement and growth are consistently available. (Kramer 2006)

Incentive Programs

Performance based Salary as Recognition and Rewards

A recognition and/or rewards program is an important component of an employee retention plan. The importance of these kinds of programs is rooted in theories of positive reinforcement. By saying “thank you” to employees for a job well done, an organization is reinforcing ...