Other contributors have said "What is pay-for-performance plan?" is the same question as "What are the advantages and disadvantages of performance related pay?". If you believe that these are not asking the same thing and should be answered differently, click here.
What are the advantages and disadvantages of performance related pay?
In:
Uncategorized
[Edit categories]
Answer:
Advantages:
- motivating and retaining key talent
- getting unmotivated individuals to improve productivity
Disadvantages:
- the performance of a complex job as a whole is often reduced to a simple, often single measure of performance such as profit, without considering other factors that make up overall performance
- performance related pay can be disadvantageous in that it can create the potential for rifts among employees if they feel they are being treated unfairly or unequally if there are not strict and clear stipulations in place for the system.
- employees may only be inclined to perform work that is measured in their performance appraisal
- motivating and retaining key talent
- getting unmotivated individuals to improve productivity
Disadvantages:
- the performance of a complex job as a whole is often reduced to a simple, often single measure of performance such as profit, without considering other factors that make up overall performance
- performance related pay can be disadvantageous in that it can create the potential for rifts among employees if they feel they are being treated unfairly or unequally if there are not strict and clear stipulations in place for the system.
- employees may only be inclined to perform work that is measured in their performance appraisal
- employees are not as motivated by monetary incentives as employers once thought
- assumes it is possible to objectively measure performance
Related answers: - What are the advantages and disadvantages of profit related pay? This kind of pay is directly related to the profits of a company. If the company does well and...
- What are the Advantages and disadvantages of performance appraisals? the weight of your mom
- What is performance related pay? Performance-related pay is pay or a salary increase which is based solely on how well someone...
- Advantages and disadvantages of performance management? Advantages: Performance based conversations Targeted Staff Development Encouragement to staff...
Can you answer these? 