Pay for Performance Schemes

Paper Summary:

The paper explores pay-for-performance plans, emphasizing manual workers in UK distribution/warehouse environments. The paper discusses pay-for-performance plans that involve teammates who help decide raises and how well their other teammates are performing. The paper examines motivators in the workplace, the content and process models of human motivation and the nature and causes of motivational problems. The paper explores quality of work life (QWL) with a focus on ethical issues, laws, and discrimination. The paper examines employee morale and concludes that it is important that the QWL of the employees be kept high, as well as their morale and their motivation, in order for pay-for-performance schemes to succeed.

Outline:
Pay for Performance Schemes
Motivation
Quality of Work Life
Employee Morale

From the Paper:

"Organizations that have low-skilled workers in the warehouse sector, however, seem to work pretty well on a team basis, and using pay for performance incentives might be more likely to cause problems and difficulties between teammates, especially if the pay raise of one teammate is lowered or jeopardized because of something that another teammate said or did. This could easily lead to hurt feelings, bad attitudes, a lack of teamwork, and a host of other problems for the company (McConaughy, 1997). These problems might be very difficult to fix, and could have ramifications that could flow throughout the entire company, affecting much more than just the initial two people involved."

Sample of Sources Used:

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• Brockner, J., Tyler, T.R., & Cooper-Schneider, R. (1992). The Influence of Prior Commitment to an Institution on Reactions to Perceived Unfairness. Administrative Science Quarterly, 37, 241-261
• Carpenito-Moyet, L.J. (2003). Maslow's hierarchy of needs--revisited. Nursing forum.
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• Cole, J. (1995, March 14). Axes to Continue to Fall in Defense Industry. Wall Street Journal, A2.

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