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8 reasons why pay for performance only works in theory
In this short paper I will explain why the statement “The introduction of individual pay for performance contributes to an improvement in a company's (financial) performance” is to my opinion not valid. Before we can jump into a reflection on the statement, two questions arise that will be discussed as an introduction “What is pay for performance?” and “Why is pay for performance considered as a system that might contribute to a company’s performance?”
What is pay for performance?
Pay for performance is a motivation concept in human resources, in which employees receive compensation for their work based on the level of reaching certain targets (individually or with their team, department or company). The term is often referred to when one is addressing the topic of variable pay based on performances. Although not generally recognised, the term pay for performance should, to my opinion, include as well, aside......
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Title: 8 Reasons Why Pay For Performance Only Works In Theory
Approximate Word Count: 1977
Approximate Pages: 8 (250 words per double-spaced page)
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