The Importance of Performance Related Pay in Motivating Employees – Research Proposal Example

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The researchers assert that organisations should not rely on traditional PRP systems rather they should focus on contextual possibilities for designing the PRP systems in order to enhance employee motivation and performance. Schmidt et al. , (2011) also suggested, though it the context of public services, that for PRP to have a positive effect on employee performance it should focus on employee participation in designing the pay system. According to the researchers, this collective designing of system will help renegotiate the performance criteria which will then have an impact of employee performance and motivation.

Furthermore, Forest (2008) also suggested that PRP can be used to keep employees intrinsically motivated by linking pay for performance with fair appraisal systems; hence it can be said that it is time to merge intrinsic and extrinsic rewards systems with the help of collective negotiations and participative interactions in order to keep employees motivated. Revolving around the research question outlined earlier, following are the research aims and objectives; To critically evaluate the elements that can help PRP enhance employee motivation. To investigate how different elements within organisation can link together to design a robust contingent compensation system. Based on these objectives following conceptual framework is designed for this study; Figure I – Conceptual Framework for this Study This framework suggests that if different elements in a compensation system are well-blended and if intrinsic and extrinsic elements are combined well outcomes would be enhanced performance and motivation.

This study will aim to explore these aspects on how PRP can be used as a motivational tool if the whole compensations system is looked at as a whole. Exercise 2 - The Timetable Tasks First half of April Second half of April First half of May Second half of May First half of June Second half of June Third Week on June Topic selection and justification through literature search.

Agreeing on aims and methodology. Refining aims and objectives and studying further literature to form topic base. Approaching participants and taking informed consent. Data Collection Data Documentation and Analysis Report Writing (though few parts have already been written previously) Proofreading and submission of dissertation. Exercise 3 - Locating Literature Boachie-Mensah and Dogbe (2011) carried out an exploratory study to find out the effectiveness of PRP as a motivational tool to enhance organisational performance.


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