The Impact of Performance Related Pay on Motivation

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

In this study, there has been attempt to explore the concept of Performance Related Pay in a holistic context. The main focus of the research is the impact of Performance Related Pay and Enhancement/Alternative to the Approach in Private Sector”. The research also analyses many aspects of Performance Related Pay and Motivation. It tries to gauge its effect in the private sector and the benefits it can create for the company. Finally the research describes various Performance Related Pay factors which play a vital role in motivating the number of employees. Lastly, the way it is considered as an enhancement or alternative approach for the Private Sector organisations. Although, there are other factors that play a crucial role in increasing the motivation of employees but the focus of this research was on the Performance Related Pay. The value of Performance Related Pay will always remain in the private sector because it is important for the organisation to motivate their workers at the highest level. This factor does not have that much importance in the public sector because the concept of motivation does not carry that much value in these organisations. However, a detailed analysis was necessary regarding PRP Plan and its impact on the motivation of the workers. Therefore, all these issues have been discussed in detail in this topic.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

1.1 Background of the study1

1.2 Problem Statement3

1.3 Research Aims and Objectives3

CHAPTER 2: LITERATURE REVIEW5

2.1 Classic Performance Related Pay5

2.2 Popularity6

2.3 Criteria6

2.4 Steps8

2.6 Disadvantages10

2.7 Motivation12

2.8 Intrinsic and Extrinsic Motivators: Frederick Herzberg15

2.9 Theories and Models17

2.11 Employees working upon motivation21

2.12 Impact25

2.13 PRP Impact25

2.14 Motivation Impact27

2.15 Pay Secrecy and Individual Task Performance28

2.16 The importance of pay for employees29

2.17 The Moderating Effect of Tolerance for Inequity30

CHAPTER 3: METHODOLOGY32

3.1 Features of Mixed Methodology32

3.2 Benefits of Mixed Methodology33

3.3 Limitations of Mixed Methodology34

3.5 Reliability36

3.6 Validity37

Theoretical framework38

CHAPTER 4: DISCUSSION AND ANALYSIS39

4.1 Information regarding HRM and evidence related to Performance Management39

4.2 Constituents that Impact Employee Performance41

4.3 Procession of performance management42

4.5 The role of performance management43

4.6 Performance management, promotion management processes and business process optimization44

4.7 Key elements of performance management45

4.8 New trends in specialized work45

4.9 Rewarding talent46

4.10 Location of the compensation factor47

4.11 Remuneration, Management fees and establishing compensation plans48

4.12 Compensation based on the area49

On the basis explained in the previous point, depending on the area of ??compensation or the function of HR in relation to staff salaries are the study and analysis of:49

4.13 How to implement a compensation scheme50

4.14 Wages within a framework of management competencies51

4.15 Different sources for market ...