PERFORMANCE RELATED PAY IN MOTIVATING EMPLOYEES - THE CASE STUDY OF MORRISON'S TABLE OF CONTENTS

AN ANALYSIS INTO THE SIGNIFICANCE OF
PERFORMANCE RELATED PAY IN MOTIVATING
EMPLOYEES – THE CASE STUDY OF MORRISON'S

TABLE OF CONTENTS
CHAPTER 1 : INTRODUCTION..................................................................................................1
1.1 Background of the study.......................................................................................................1
1.2 Aims and objectives..............................................................................................................1
1.3 Research questions................................................................................................................2
1.4 Rationale of the study............................................................................................................2
1.5 Significance and scope of the study......................................................................................3
1.6 Structure of dissertation .......................................................................................................4
1.7 Research framework..............................................................................................................4
REFERENCES................................................................................................................................6

ACKNOWLEDGEMENT
I would like to thank my mentor for bottom of heart as they have provided me good
knowledge and effective support for conducting study effectively. I would like to express my
gratitude to friends, colleagues as well as family members who have guided me at every step of
thesis. Through their support I was able to accomplish my dissertation in an appropriate manner.
In the series I would also like to state special thanks to my team members who have assisted in
collecting data and in analyzing it further.

ABSTRACT
Performance related pay consists of the system in which organization pay to their
employees on the basis their performance and completion of targets. In the preset era,
motivational aspects of an employee’s play a vital role in achieving success in the competitive
business environment. In this, performance related pay system provides assistance to an
organization in developing motivation among their employees. The main objective of the present
study is to assess significance of performance related pay on employee motivation. In addition to
this, making assessment of the benefits and drawbacks of performance related pay is also the
main objective of research for the present study is conducted by researcher.
In order to assess the significance of performance related pay in the motivational aspect
of an employee’s researcher undertake qualitative investigation. Researcher has adopted
inductive approach and interpretivism philosophy to find out the suitable solution of problem.
For the present study, researcher has gathered data from both primary and secondary data
sources. Besides this, researcher have used thematic perception test to analyze the data gathered
by them. After making analysis of data it has been identified that performance related pay plays a
significant role in motivating employees. It can be concluded that performance related pay
system helps organization in build and sustain skilled or efficient employees for longer time
period.
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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background of the study...................................................................................................1
1.2 Aims and objectives.........................................................................................................1
1.3 Research questions...........................................................................................................2
1.4 Rationale of the study.......................................................................................................2
1.5 Significance and scope of the study.................................................................................3
1.6 Structure of dissertation ...................................................................................................4
1.7 Research framework.........................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
Role of performance related pay in the field of personnel management................................6
Merits and drawbacks of performance related pay in the context of employee motivation...8
Relationship between the performance related pay and employee motivation....................12
CHAPTER 4: RESERACH METHODOLOGY...........................................................................15
Research Type......................................................................................................................15
Research Approach...............................................................................................................16
Research Philosophy............................................................................................................17
Research Design...................................................................................................................18
CHAPTER 4 : FINDINGS, ANALYSIS AND DISCUSSION......................................................1
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................14
REFERENCES..............................................................................................................................20
Questionnaire.................................................................................................................................23
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CHAPTER 1: INTRODUCTION
1.1 Background of the study
In the present era, success of an organization is highly dependent upon the skilled and
efficient workforce. Employees are the main asset of an organization who plays an important
role in the organizational growth and development. Each and every organization requires highly
skilled and motivated workforce who help them in build or sustain competitive position over
others (Kvaløy and Olsen, 2015). Nevertheless, large number of enterprises is facing the problem
of less involvement of their employees in business activities and functions. This problem occurs
due to high level of decrease in the employee motivation and morale. In order to increase or
boost up the morale and motivation level of employees several companies had undertaken
different motivational tool. It includes financial and non-financial tools which provide assistance
to an organization in increasing the morale of their employees.
In this regard, it has been identifying that performance related pay plays a significant
role in the motivation level of employees. In performance related pay business units evaluate the
performance of their employees on the basis of predetermined aspects through which employees
are also aware (Lazaroiu, 2015). The present research is based upon Morrison which is largest
multinational retailer of UK. Morrison offers payment to their employees by taking into
consideration their performance and abilities. Thus, the present research study will helps in
assessing the significance of performance related pay into the motivation level of an employees.
Besides this, this research will also provide understanding about positive and negative
implication of the performance related pay on the motivational level of employees. Thus, this
research study will provide framework to business units in relation to the factors which play vital
role in boost up the morale and motivational level of an employees.
1.2 Rationale of the study
What is the research issue?
In the present era, large number of organizations is facing the problem of employee
retention. One of the main causes behind such issue is that organization fails to link monetary
benefits with employee motivation. Employee satisfaction and motivation is the most essential
element which helps in retaining the employees within the firm for long time. This, employee
retention and the awareness in relation to performance related pay is considered as an issue.

Why is it an issue?
Employee motivation and morale is highly associated with the productivity as well as
profitability aspect of the firm. Thus, high level of decrease which takes place in the motivational
level of employees is the most important issue in the present time. Moreover, employee
motivation has high impact upon their satisfaction level, absenteeism, turnover and profitability
aspects. In the present scenario, there is significant decrease in employee productivity and
efficiency so it is considered as most important issue.
Why is it an issue now?
Employee motivation is the most important aspect in now days because survival of an
organization is highly associated with such aspect. In the competitive business environment
company can attain success only when they have skilled and motivated workforce. Thus,
employee motivation is the most significant issue in today's business arena.
How and when it is going to be investigated?
The detailed investigation will be carried out by researcher in relation to the wide range
of factors which are associated with employee motivation and performance related pay. Through
this, researcher is able to frame the suitable strategies which help business units in raising the
level of employee motivation.
What could this research shed light on?
The present research study will shed light on the performance related factors which help
in managing the personnel of an organization more effectively. Besides this, it will also examine
the positive and negative consequences of performance related pay on employee motivation.
Through this, researcher is able to find out the factors which assist business units in increasing
the motivational level of their employees. Further, the present research study will help in
identifying relationship which exists between performance related pay scheme and employee
motivation.
1.3 Aims and objectives
Aims and objectives are the main part of the research study which helps researcher in
conducting research study in the right direction (Ongalo and Tari, 2015). In this, the researcher
aimed at assesses the impact of performance related pay upon the motivation level of human
resource of an organization. Further, objective of the research study are enumerated below:
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 To assess the role of performance related pay in personnel management.
 To identify the merits and drawbacks on performance related pay which has influence
upon the motivational level of employees.
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