Writing

Linking Pay to Performance: Pros and cons:

Some experts say that linking pay and performance is not a good idea, and that pay should not be used to motivate employees to do a better job because they stop focusing on things like quality of work and how to improve their performance and start focusing on money and how much the raise is.

Others feel that pay for performance pits employees against one another in competition for the highest raises. That's why some businesses give the same across-the-board- raises to all employees. It eliminates competition and ensures that the whole workforce is working toward the same goal. But, if everyone gets the same raise, there is no motivation to exceed expectations and go the extra mile in the job. Only you can determine which approach will work best for your employees.

Indeed, it is your role as a manager to choose the approach that best suits your company if you decide to pay for performance.

ASSIGNMENT: As a manager of (provide a name for your company) Company, you noticed that your employees were not excited about their job anymore and fear many will just leave to join other businesses in the area which are providing many benefits and incentives you are not giving your employees. You are debating whether to raise their wages across-the-board or whether to introduce an evaluation scheme to measure their performance and promise a reward according to the result of the evaluation.