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Does Performance-Based Pay Improve the Effectiveness of Professionals?

In: Business and Management

Submitted By michyva
Words 345
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Does performance-based pay improve the effectiveness of professionals?
For many years, most public and private organizations have been implementing the performance-based pay system in order to improve the effectiveness of professionals but the question one might ask is ‘Does it necessarily improve the performance of professionals and is it the best method?
The world is gradually becoming a global village where people from different cultural background and orientation make up the entirety of an organization workforce. What happens in cultures where rewards have to be given collectively to a team and not based on an individual’s performance alone?
In a performance-based pay system, managers may set targets for the employees and these must be met at a given period of time. After which the employees get a reward or an incentive. These targets may sometimes require an employee to work overtime and what then happens if this employee comes from a low masculinity country for instance, where personal time is valued. This employee will less likely meet his set targets at the timeline given to him; he would prefer to spend time with his family than give up his evenings because of what he is expecting as a reward. This goes to say that the type of reward system is also linked to the cultural background of an employee.
The purpose of this paper is to determine if performance-based pay improves the performance of professionals.
It is true that money is a necessity of life but it also pertinent to note that it is not the only thing that drives people and there are other ways to motivate people. In chapter two, we will examine the different types of rewards systems based on literature reviewed for this topic; chapter three will investigate which research method will best improve the effectiveness of professionals and how an individual’s culture affects his perception…...

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