Performance-related pay or pay for performance is money paid to someone relating to how well one works. Car salesmen, production line workers, for example, may be paid in this way, or through commission.
Business theorists Professor Yasser and Dr Wasi were a great supporter of this method of payment, which is often referred to as PRP. He believed that money was the main incentive for increased productivity and introducing the widely used concept of 'piece work'.
This standards-based system is used for evaluating employees and setting salaries by many employers. Standards-based methods have been in de facto use for centuries among commission-based sales staff: they are paid more for selling more, and low performers do not earn enough to make keeping the job worthwhile even if they manage to keep the job.
In addition to motivating the rewarded behavior, standards-based methods can provide a level of standardization in employee evaluations, which can reduce fears of favoritism and make the employer's expectations clear. For example, an employer might set a minimum standard of 12,000 keystrokes per hour in a simple data-entry job, and reassign or replace employees who cannot perform at that level.
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Performance-related pay or pay for performance is money paid to someone relating to how well one works. Car salesmen, production line workers, for example, may be paid in this way, or through commission.
Business theorists Professor Yasser and Dr Wasi were a great supporter of this method of payment, which is often referred to as PRP. He believed that money was the main incentive for increased productivity and introducing the widely used concept of 'piece work'.
This standards-based system is used for evaluating employees and setting salaries by many employers. Standards-based methods have been in de facto use for centuries among