PAY FOR PERFORMANCE

Pay for Performance

Pay for Performance

Background

Many researches and proposals proof that pay-for-performance drives across the whole world with the back of health plans, employer coalitions, and insurance programs now surpasses more than 100. Through these different programs, many healthcare institutes in the United States presently take part in some form of pay-for-performance or are in process with local buyers for participating in this system. The sponsors of these motivation systems state that remunerating or enhancing quality of care is an essential objective; the other objective is usually regulating expenses either straightforwardly or obliquely by decreasing errors and its wrong use (Leapfrog, 2006).

Aim

The major aim of pay for performance is to encourage the staff involvement in the company's performance and further improve their motivation and commitment with the working practices. It also aims to help the trade unions and employers to resolve the common issues among any unfair pay for performance in the working environment. It also aims to reward with financial benefits and non-financial benefits on an individual or group basis. It creates an awareness of achieving a growth within the organization with an incentive benefit (Bootsma, A.A., 2009).

Research Questions and HypothesesThe purpose of research question is to analyze and examine compensation benefits being provided or any performance being recorded in a particular period or year. The research may carry some common questions as mentioned below:

What are the determinants of the level and structure of employer or employee compensation?

How strong is the relationship between top executive compensation and company performance?

Has the pay-performance relationship strengthened during the current or specified period?

Has there been any change after providing the incentive of pay for performance?

Does the compensation benefit more than bonus or not?

Does the change in the pay for performance affect the CEO's pay?

The research hypotheses will raise a question against the ...