The range of the number of surveys that have been carried out is between almost 3500 to 4500 employees. This report aims at analysing the research and to gain a better perspective on the theories of performance related pay and its affects.
One of the common factors those interest employees, employers and the government equally is the most essential element of employment - Pay. Pay affects the employers because it is an expense borne by the business and employee performance matters a lot to the business. Also this factor affects the employer's ability to recruit and retain labour force of quality. Employees are affected by pay as it is the only source of income it also sets the standard of living and measures a value for the performance and value of service. Lastly the government is affected by this since it directly affects the macro economic stability like employment, social economic development, inflation etc. There are a number of different basis on which pay to an individual is decided. One of the oldest forms of pay is Performance Related Pay this is discussed in detail in the next few parts. Performance Related Pay refers to pay scheme used to measure individual performance in the company (Monks, 1997). It can also be used to measure group or organisational performance. ...Show more