MERIT PAY PROGRAMS

Merit Pay Programs

Merit Pay Programs

Introduction

Merit pay program is method of paying staff according to how they perform. Better performance results in higher levels of pay for the individual, poor performance might result in no change to pay or a decrease.

Discussion

The efficiency of merit pay in terms of employee's motivation is still different. Management studies are confused about the outcome of merit pay program. Majority of researchers believe that merit pay may not be a motivator for employees and a factor to augment productivity.

Early in the last century whereas labor organizations were convincing employees to join unions for ...