Significance of Performance Related Pay at Morrison's: Analysis

This report provides an in-depth analysis of the significance of performance-related pay in motivating employees, focusing on a case study of Morrison's. The study begins with an introduction outlining the background, aims, objectives, research questions, and rationale, emphasizing the importance of employee motivation in organizational success. It then delves into a literature review, exploring the role, merits, and drawbacks of performance-related pay. The research methodology section details the approach, philosophy, and design employed. The findings, analysis, and discussion chapter presents the results of the research, followed by conclusions and recommendations. The report highlights the role of performance-related pay in personnel management, its impact on employee motivation, and suggests strategies to enhance its effectiveness within Morrison's. The research uses both primary and secondary data sources, employing a thematic perception test to analyze the data and offering insights into the relationship between performance-related pay and employee motivation.

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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 To evaluate the interrelationship between performances related pay and employee
motivation or morale of Morrison's.
 To recommend the ways or suitable strategies which helps Morrison in increase the
effectiveness of performance related pay.
1.4 Research questions
In order to find out the suitable solution of research problem researcher needs to prepare
questions. Researcher will prepare following questions which helps him in conducting the
research study in efficient manner.
Q. 1 what is the role of performance related pay in the field of personnel management?
Q. 2 what are the merits and drawbacks of performance related pay in context of employees’
motivation?
Q. 3 define the relationship between the performances related pay and employee motivation?
1.5 Significance and scope of the study
The present research study and its findings are highly significant for the companies who
are facing the problem of employee motivation. Through such study researcher is able to assess
the factors which have high level of influence upon the motivational aspects of service
personnel. Usually, motivated employees are highly productive as compared to de-motivated
employees. In addition this, employee productivity, absenteeism and efficiency level is closely
linked with the motivational level of employees (Bellé, 2015).
Moreover, employee motivation highly affects both the productivity of an organization or
of employees as well. Thus, by undertaking performance related pay scheme companies can
easily improve the level of their employees. By setting the different dimensions company can
make payment to their employees on the basis of their skills and performance. Through this
system each and every employee makes efforts to perform their work and activities in an
efficient manner to get the financial appraisal and high basic pay (Ljungholm, 2015).
Nevertheless, performance related pay also places negative impact upon the motivational aspects
employees. If employees are unaware from the dimension which is set by an organization for
financial appraisal and basic pay then it adversely affects the morale of the employees. In
addition to this, it also may create conflicts among the personnel of the firm and there by
negatively affects the motivational aspect of the employees. Thus, the present study will help
researcher in presenting the suitable factors which help companies in evolving the satisfaction

among the customers (Han, Bartol and Kim, 2015). Through this, business unit is able to build
and sustain their employees for longer duration.
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1.6 Structure of dissertation
Chapter 1: Introduction
In introduction researcher will provide the background of the research study. Besides
this, he also states the rationale which present the reasons due to researcher have selected the
topic of research as an issue.
Chapter 2: Literature review
In the second chapter of research, researcher will critically evaluate the secondary data
sources such as books, journals and research papers. It will provide deeper insight to the
researcher about the benefits and drawbacks of performance related pay on employee’s
motivation.
Chapter 3: Research methodology
It includes the types of investigation which will be carried out by the researcher in their
study. Besides this, it also entails the sampling and data collection methods which researcher will
undertake to conduct research in an effective manner.
Chapter 4: Data analysis
In chapter 4, researcher will analyze the data by making use of appropriate data analysis
technique. It is the most important section of research study which entails the outcome of
research study.
Chapter 5: Conclusion and recommendation
In this section, researcher will conclude the findings of the research study. In this,
researcher will provide information about the extent to which performance related pay have an
influence upon the motivational level of employees. Along with it, researcher will also give
suggestion about the ways through which companies can motivate their employees and their
maximize employee productivity.
CHAPTER 2: LITERATURE REVIEW
Literature review may be defined as a process in which review of secondary sources such
as books, journals and research paper are undertaken by the researcher. By making analysis of
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secondary data sources researcher is able to represent the fair view of researcher topic or
problem. It provides assistance to researcher to evaluate the current findings and there by
represent the appropriate solution of the research problem. In this literature, significance of the
performance related pay in the context of personnel management will be analyzed. In addition to
this, the present literature also helps in assessing the benefits and drawbacks of performance
related pay. Through this, researcher is able to make analysis of result of the survey in an
effectual manner.
Role of performance related pay in the field of personnel management
Performance related pay may be defined as a system in which employer make payment of
wages to their workers as well as salaries to employees on the basis of their skills and abilities
that how they works. In this system employer sets standard and there by evaluate performance of
the employees on the basis of such standards. Through this, employer or company is able to
assess the effectiveness of their employees and thereby give them monetary rewards on the basis
of this aspect. According to the view point of Han, Bartol and Kim (2015) performance related
pay is not only limited to financial reward but also it is highly associated with the non-financial
rewards such as reward, recognition, promotion etc. As per the view point of Layton and Ryan
(2015) there are several reasons or aspects due to which manager of an organization is attracted
to introduce performance related pay system within the business unit. This system provides
assistance to HR manager of an organization in recruit and selects the skilled and efficient
personnel. Besides this, it also helps in weaken the power of trade union. For instance: When
enterprise makes payment to workers or employees on the basis of their skills and abilities then
they are very less scope for trade union. Moreover, in performance related pay system each
employee gets different pay on the basis of his work or efficiency level. Thus, by limiting the
role of trade union within the business unit can easily introduce change and thereby take benefit
from it. Performance related pay system also ensures financial control and value of money by
giving salary to their workers on the basis of their skills and abilities. Through this, organization
is able to make optimum utilization of their financial resources to the large extent and there by
achieving success in the dynamic business environment.
Saint-Lary and et.al, (2015) claimed that there are mainly two types of performance
related pay namely merit pay and incentive pay. Merit pay consists of the increment which
organization make in the salary aspect of the employees by taking into consideration the
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performance aspect of them. It refers to the permanent increment in the salaries of employees or
workers. Whereas incentive pay refers to the money which employees or workers get by
completing their target in terms of bonus, gifts etc. Both these performance related pay system
helps personnel management in motivating the human resource of an organization. However, it is
to be critically evaluated by Prendergast (2015) that incentive related pay provides assistance to
personnel department in motivate the employees as compared to merit pay. Moreover, it
incentive related every employee get equal chance to get bonus by completing the target which
are given by the firm. This aspect encourages employees to give their best efforts and there
increase their earnings. Each and every people have desire to improve their standard of living.
Incentive pay provides opportunity to employees to increase their disposable income and thereby
raise their standard of living.
In addition to this, employees or worker have so many dreams which they want to
convert into reality. In this, incentive pay gives chance to the employees to work hard and fulfill
their dreams. On other hand, in merit pay permanent increment take place in salary of respective
workers. Therefore, it is not the highly motivating factor to the workforce of an organization for
the longer time period. Once increment took place in remuneration of an employee’s then they
does not make high level of efforts while performing the business activities and function. Thus, it
can be stated incentive pay provides helps to the personnel management in encouraging the
workforce.
This statement is contradicted by Gittleman and Pierce (2015) that merit pay also plays a
vital role in field of the personnel management. They claimed that merit pay also has high level
of importance for the organization. In merit pay business enterprise frame standards on the basis
of which they make evaluation of the performance of all employees. Thus, standards are also act
as a motivator which encourages employees to work hard and there by achieve the permanent
monetary gain. It is the effective performance pay system which aligns with the motivational
theories which are developed by several analysts. In addition to this, standards also help
manager in recruit the appropriate person on the suitable job. Thus, HR manager can easily
encourage the workforce of an organization by assigning the work to them on the basis of their
skills and abilities. Through this, manager is able to manage the employees of an organization in
an effective and efficient manner.
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According to the view point of Han, Bartol and Kim (2015) performance related pay
plays an important role in the area of personnel management. HR manager of an organization
can use performance related pay as a tool which assists organization in encouraging their
workforce. By offering compensation and other monetary benefit company is able to evolve
satisfaction among the workforce. Usually, satisfied workforce is highly productive and makes
their best efforts for the well being of an organization. When employees get monetary
appreciation from their employees then they are encouraged to work best harder. Thus,
performance related pay helps company in maximizing employee productivity and profitability.
Besides this, it also helps organization in reducing the employee absenteeism and there by assists
in fulfilling the goals or objectives of an organization.
Merits and drawbacks of performance related pay in the context of employee motivation
According to the viewpoint of Bellé (2015) performance related pay makes remarkable
contribution in employee motivation. On the basis of this system company give financial
rearward to their employees if they have met predetermined standard. Standards may be in terms
of units which workers needs to be produced with the given time period. In addition to this,
company also gives sales target to their employees by introducing monetary rewards such as
bonus or gift hampers. It is the most effective way through which enterprise can motivate their
workforce to work hard and thereby build their bright future. For instance: Company who
produce toys wants to raise their productivity and profitability with the help of satisfying and
motivated workforce. In this situation, firm can encourage their workforce towards the activities
and functions of an organization by introducing performance related pay. Enterprise have
introduced that workers who produce more than 15000 toys within the moth then company will
give £100 extra to them on each toy. In the preset era, worker or employee can give quality life
only when then they have sufficient amount of financial resources to fulfill their needs, wants
and desire. Thus, the additional sum of money which organization is ready to pay to their
employees act as a motivator in front of them.
It is contradicted by Lazaroiu (2015) that performance related pay or monetary reward
system places negative impact upon the human resource of the firm. For instance: Company have
introduced that they will provide £100 on each toys if they exceed the limit of 15000 toys. In the
business enterprise, employees differ in terms of their skills and abilities. Thus, if some efficient
employees have produced more units of toys in excess of 1500 units then it negatively affects the
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performance of other employees who are not able to cross such limit. Moreover, each employee
have desire to get some extra financial benefits along with their basic pay or salary. Thus,
performance related pay also has negative influence upon the employees of the business unit.
Employees who are failed to give additional benefits think that they are not highly efficient as
others and there by demotivated by their own. This aspect also place negative impact upon the
productivity and profitability of the employees. Moreover, if some of the employees who are no
near to the target then prefers to work in a slow manner. In this situation, personnel think that
they are unable to get the monetary reward in the concerned month or time period then does not
perform their work in an efficient manner.
Ljungholm (2015) claimed that performance related pays also helps business unit in
reducing the graph of employees’ absenteeism and thereby make contribution in the attainment
of organizational goals and objectives. Moreover, when firm sets target for their employees they
make avoid taking leave from work so they will be able to meet the deadline. In this situation
employees think that if they take any leave then they are not being able to achieve their set target
and standard. Thus, performance related pay system helps organization by reducing the rate of
employee absenteeism and there by helps it improving the productivity and profitability aspect.
Stea, Foss and Christensen (2015) argued that company who undertakes performance related pay
system to motivate their employees also faces the problem of employee absenteeism. Moreover,
the employees who are unable to meet their target level then they does not hesitate to take leave.
This aspect may result into high level of employee absenteeism which adversely affects the sales
and gross margin of the company.
As per the view point of Conrad, Ghosh and Isaacson (2015) company who follow
performance related pay system make review of the performance of their employees on a
periodical basis. Through this, business unit categorized their employees in terms of outstanding
and star performer of the month, best employee of the month or year etc. On the basis of this
aspect company give monetary appreciation to their personnel who met the standard which are
set by the firm. By this, company motivates their personnel to perform their functions and
activities in an efficient manner who got monetary reward. Besides this, such kind of financial
reward or incentive system also motivates other employees of an organization to work harder.
Through this, other are also encouraged to make their best efforts with the aim to attain monetary
rewards. Thus, performance related pay helps organization in developing satisfaction among the
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workforce. Through this, company is able to retain and sustain the workforce for the longer
duration. Agarwal, Yadav and Acharya (2015) argued that in merit pay organization faces many
difficulties which affect the satisfaction level of the human resource. One of the main problems
which manager faces in relation to the measurement of the performance. Measurement is the
main aspect which is highly associated with the satisfaction level of employees. It is usually
happen in an organization that there are two deserving candidate who accounts for the merit pay.
In this, policies of an organization in relation one star and outstanding performer award create
conflict between the employees. For instance: If personnel who also deserve the reward but due
to policies of an organization he does not get merit pay. In this situation, merit pay system
adversely affects the motivational aspect of the employees.
According to the view point of Filbeck, Gorman and Fink (2015) feedback and
acceptance of the results are also the main issue which is faced by the enterprise in the recent
time. Usually, employees are not satisfied with the results of appraisal which are declared by an
organization. Moreover, each employee thinks that they have performed the business activities in
an efficient manner rather than others. Besides this, it is the main cause which also creates
conflicts among the workforce and thereby negatively impacts the working environment of the
firm. Cohesiveness among the employees and positive working environment is the key factor
which develops satisfaction among them. If performance related pay fails to give desired
outcomes or results then they affects the motivational aspect of an employees in the negative
direction.
In accordance with the view point of Khan and et.al, (2015) business unit can motivate
their workforce by communicating the standards which are undertaken by them for the appraisal.
Specification in terms of standards is required to be clear in mind of all employees. By
communicating the standards company can represent the fair judgment in front of employees.
Through this, manger is able to motivate the employees of an organization and there by develop
satisfaction among the workforce in relation to the pay for performance system. However, it is to
be critically evaluated by Bellé (2015) that only communication in terms of standards is not only
sufficient to develop the satisfaction among the workforce. Long time which is undertaken by the
manager of an enterprise in relation to performance and reward also affects the motivational
aspects of the personnel. In addition to this, conflicts between the financial and non-financial
reward also have impact upon the performance of the human resources.
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Liang and Akiba (2015) claimed that Performance related pay place positive impact upon
the working aspect of an organization. Nevertheless, different employees vary in terms of their
preference in relation to the monetary and non-monetary awards. Usually, lower salaried workers
prefer to take financial rewards in terms of bonus, incentive rather than non-financial rewards.
On other hand, upper level have desire to gain non-financial rewards. Thus, it may also cause the
effectiveness of performance related pay. In addition to this, most of the employees think that
manager is usually biased who make evaluation of their performance. Employees think that
manager give financial reward only to those employees who follow them. Thus, biasness of the
manager also affects the motivational aspect of the employees. On the basis of all these aspect it
can be stated that there are also some factors which affects the gross output of the firm.
Chen and et.al, (2015) said that business unit can encourage their workforce to strive their
best efforts by setting the suitable performance related pay structure. This structure has high
level of impact upon the performance of employees. This structure contains each and every
aspect which is relation to working aspect or performance of employees. In includes punctuality,
disciplinary as well as achievement of target. On the basis of such aspects manager is able to
appraise the performance of their employees in an effective manner. However, it is to be
critically evaluated by Bankert and et.al, (2015) that enterprise cannot motivate their workforce
only by preparing the roper performance related structure. If standards which are set by an
organization are not clear to the employees then it negatively affects the working aspects of
them.
In accordance with the view point of Driver and et.al, (2015) pay for performance system
helps organization in retaining the talented workforce. In this system, enterprise makes increment
in the salary of employees by taking into consideration their competencies and efficiency level.
In addition to this, firm also offer incentive, bonus, allowances and other monetary reward to
employees on the basis of their level of performance. This aspect reflects that company considers
the actual potentials of the employees while appraising them. Through this, each deserving
candidate get chance to get high salary and other additional financial benefits. It develops
satisfaction among the workforce and thereby retains them for the long time. In the dynamic
business environment, company can attain success only when they have talented personnel.
Thus, pay for performance related provides assistance to an organization in obtain and retaining
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the skilled and efficient human resources. On the basis of all the above mentioned aspect it can
be stated that pay for performance system proves to be more fruitful for an organization.
Relationship between the performance related pay and employee motivation
The businesses in present scenario tend to highly emphasize on increasing employees
motivation. It is necessary for the organization to divert efforts of all its employees in a single
direction so as to achieve long term goals. However, employees tend to feel motivates when their
performance within organization is valued. According to Filbeck, Gorman and Fink (2015
traditional pattern of prioritizing senior employees have been changed in recent past. It is seen
that the employees strive to involve extra efforts when they are rewarded. Khan and et.al., (2015)
claimed that performance related pay scale helps in motivating employees to accomplish short
term and long term organization’s goals. Employees feel appreciated when their efforts or
performance is directly linked to their pay scale. Agarwal, Yadav and Acharya (2015) believed
that monetary benefits are highly important in nature for employees. The basic motive for every
employee to get employed is to earn sufficient level of monetary benefits. Moreover, as per the
Maslow’s hierarchy theory all basic necessities of employees are met by the monetary benefits
received. Henceforth, the monetary benefits and rewards are considered to be highly important in
nature Conrad, Ghosh and Isaacson (2015) suggested that the businesses should adopt efficient
performance appraisal system. The organizations should be effective enough to measure the
performance of its employees. Thereafter, the employees’ pay scale and incentives should be
decided on the basis of their performance. This in turn results in motivating employees towards
their organizational goals and objectives. On the basis of literature published in past, it can be
claimed that there is a direct and positive relationship between performance related pay and
employees motivation.
As per the views of Chen and et.al, (2015) success of the business unit is highly
dependent on the performance of employees. Moreover, the organization is able to impact
performance of employees by providing them related monetary benefits. This implies that when
employees are paid for their additional efforts, they feel motivated. Further, Ljungholm (2015)
identified the fact that employees deserve to be rank differently within the organization. They
desire to be appreciated in monetary and non-monetary terms on the basis of their performance.
It also motivates every employee to perform in an efficient manner. In case, few of the
employees have been rewarded monetary benefits on the basis of performance. Other group of
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employees set criteria to reach the highest standard. This in turn motivates entire set of staff
members within the organization. Stea, Foss and Christensen (2015) argued that the monetary
benefits add tangibility to appreciation or rewards awarded to employees. Henceforth, the
business should attach some sort of monetary benefits to employees’ performance. Finally, the
performance related pay that emphasizes on setting pay scale as per performance is a novel and
widely accepted concept. The salary or pay-scale is a direct return that employees receive on
their return. The businesses can establish a link between employees’ performance and their pay
scale. It is through direct connection between performance and pay scale that employees are
motivated to perform more efficiently. Henceforth, the previous literature indicates that
employees’ motivation is highly dependent on performance related pay.
Different employees have different views on performance related pay system which are
introduced by manager within an organization. As per the view point of Prendergast (2015)
perception of the employees closely affects each and every aspect or change which are
introduced by the manger within an organization. Company can introduce change within the
company more successfully only when then employees possess positive attitude about each and
every aspect. For instance: If employees have negative attitude about the performance related
pay system then it places negative impact upon the performance of the employees. Thus,
performance related pay system make contribution in the employee motivation only when
employees see such system in a positive manner. Thus, attitude of employees towards the
performance related system closely influence the working aspects of them. It is to critically
evaluate by Han, Bartol and Kim (2015) that employee perception is not only the factor which
affects the motivational level of them. Along with it, there are several factors which have high
level of influence upon the motivational aspects of them. Moreover, perception of the employees
about performance related pay consists of their views and feelings about the system which are
introduced by HR manager in the firm. It is not necessary that manager cannot change the
perception of their employees in relation to the performance related pay.
According to the view point of Layton and Ryan (2015) employee motivation is high
related to the monetary reward and benefits which are offered by the firm. According to Maslow
hierarchical theory people having unlimited needs and wants. This theory states that needs of the
people are arises in a hierarchical order. On the basis of this theory performance related pay
system helps employees in fulfilling their every need which occurs at different level.
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Performance related pay system offers financial benefits and basic pay to the employees on the
basis of their skills and efficiency level. Thus, it provides opportunity to employees to fulfill
their dreams and there motivate the employees to make their best efforts in the interest of an
organization. On the basis of all the above mentioned aspect it can be stated that there is high
level of relationship exists between pay for performance system and employee motivation. This
system helps firm in achieving success in the strategic business environment by maximizes the
sales revenue of the enterprise.
From this chapter of dissertation it has been concluded that performance related pay plays
a significant role in motivating the employees. Further, this strategy or aspect of HR has both
positive and negative influence upon the employee motivation. Nevertheless, benefits which are
offered by the performance related pay is also higher than the cons. Thus, company who adopt
this strategy is able to attain encourage their employees to the great extent.
CONCEPTUAL FRAMEWORK: For conducting research in the right direction it is essential
for the researcher to make assessment of the importance of performance related pay in
managing the personnel. Thereafter, researcher is also required to make evaluation of the
benefits and disadvantages of performance related pay. By this, researcher is able to identify that
whether positive or negative relationship exist between the performance related pay and
employee motivation. With the help of all these aspect researcher is able to identify the level to
which performance related pay system affects the motivational aspect of the personnel.
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CHAPTER 4: RESERACH METHODOLOGY
Research methodology consists of the tools and techniques which enable researcher to
identify the suitable solution of the problem. It entails the process and methods which researcher
undertakes for the present study. It includes the nature and type of research which are undertaken
by the researcher (Carson and et.al, 2014). In addition to this, researcher methodology can be
served as a guideline which provides information about the data collection methods used by the
researcher. Besides this, it also states the sampling technique which researcher will use in order
to select the sample size fort the study. Through this, researcher is able to conduct their study
more effectively and efficiently.
Along with it, research methodology also entails the techniques which researcher will
undertake to analyze the data collected by them. Thus, research methodology helps researcher in
conducting the research study in the right direction. Further, it also includes the ethical
consideration or aspect which researcher needs to be taken into consideration during their study
(Creswell, 2013). Besides this, it also includes the limitation of the present research study which
has influence upon the significance of such study. In addition to this, it also entails the reliability
and validity aspect of the sources and techniques which are undertaken by the researcher to
assess the significance of performance related pay on employee motivation.
Research Type
In order to examine the issues or problem of the investigation researcher requires
identifying the type of the research which are undertaken by them. It is the most important aspect
which provides deeper insight to the researcher about the suitability of data collection methods.
There are specifically two types of research namely qualitative and quantitative research which
are usually used by the researcher for their study. Quantitative research may be defined as a
systematic investigation of observable phenomena with the help statistical or mathematical tools
or techniques (Hippisley‐Cox, Coupland and Brindle, 2015). In this, researcher makes evaluation
of the numbers or figures to assess the suitable solution of the research issue.
In contrary to this, qualitative research refers to the exploratory research which is used by
researcher to develop deeper understanding about the underlying reasons and opinions.
Qualitative research enables researcher to explore the aspects of problem on the basis of the
existing theories and application. It enables researcher to present fair outcome by making focus
upon the qualitative aspects of issue (Jackson, 2015). In order to assess the significance level of
16

performance related pay on employee motivation researcher undertakes qualitative research. In
this, researcher explores the problem on a wide basis which helps researcher in getting the
reasons and opinions of different people behind such issue. In the present study, researcher
evaluates the system of performance related pay and the ways through which they influence the
level of motivation of human resource. By making in depth analysis of the qualitative aspect
researcher is able to identify the extent to which performance related pay system motivates the
human resources of an organization. Thus, by undertaking qualitative research, researcher is able
to assess the suitable outcome of the research problem or study.
Research Approach
Research approach refers to the ways or formulations through which researcher can
analyze the key issues of the problem in an effective manner. There are mainly two types of
research approach such as inductive and deductive approach. Inductive approach refers to those
which start with observation and hypothesis. Inductive approach is usually used in qualitative
research which ends with the formation of new theories on the basis of the observations and
hypothesis (Kremers and Çakir, 2014). In this, researcher explores each and every aspect of the
issue which is highly associated with the research issue. This approach does not include biasness
in the study and places emphasis upon the development of new theory by examining the existing
theories.
On contrary to this, deductive approach begins with the hypothesis and ends with the
confirmation of hypothesis which is framed by the researcher. In this approach, researcher first
frames hypothesis by taking into consideration the theories and principles which are closely
related to the research problem or issue (McMillan and Schumacher, 2014). Thereafter,
researcher underrates in dept analysis of issue by making use of suitable tools and techniques.
Through this, research is able to present that the hypothesis framed by them is true or not.
Deductive approach places more emphasis upon the cause due to which problem is occurred.
Deductive approach provides assistance to the researcher in finding suitable solution of the
problem while they undertake quantitative type of research. Researcher can select the suitable
approach by taking into consideration the type of research undertaken by them. Researcher
undertakes qualitative research to assess the importance of pay for performance in the
motivational aspect of employees. Thus, researcher makes use of inductive approach to find out
the appropriate solution of the research study.
17

Research Philosophy
Research philosophy refers to the ways in which data will be gathered by researcher. In
addition to this, it also entails the phenomenon in which collected data will be analyzed and used
by the researcher. In researcher, there are mainly two types of philosophies which are undertaken
by the researcher to diagnose the issue or problem. It includes interpretative and positivism
philosophies which provide deeper insight to researcher about the ways which researcher needs
to undertake for further study. Nature of investigation which is undertaken by the researcher also
affects the selection of research philosophy. In interprtivism philosophy, researcher interprets
fact and figures on the basis of the existing theories and principles. Along with it, researcher also
manipulates data by taking consideration their understanding about such issue. (Neuman, 2005)
Interpretivism philosophy is usually used in qualitative research in which researcher evaluate
qualitative data in the basis of their understanding and existing theories.
Besides this, positivism philosophy makes use of actual facts and aspects to analyze the
data gathered by them. Through this, researcher is able to present the realistic view of the
research issues. Positivism philosophy is highly associated with the quantitative research
(Shawver and et.al, 2016). In the present study, researcher undertakes qualitative research to
assess the significance level of performance related pay on employee motivation of Morrison's.
Thus, researcher adopts interpretative philosophy which helps him in gather and analyze data in
the more effective and efficient manner. By interpreting the results of questionnaire on the basis
of present theories and level of knowledge research is able to present the extent to which
performance related pay have influence upon employee motivation.
Research Design
Research design consists of the strategies and techniques which researcher adopts to
represent their study in the logical and coherent way. It includes the methods which researcher
undertakes to collect data for the study (Zou, 2015). In addition to this, it also entails the
sampling techniques which researcher undertakes to select the sample size. Along with it,
research design may also be served as a blueprint for r the measurement and analysis of data.
Data collection methods
There are specifically two types of data collection methods which researcher can use foe
their study. It includes primary and secondary data collection methods which helps researcher in
conducting the research in an effective manner. Moreover, appropriateness of the outcomes is
18

highly dependent upon the methods which are undertaken by the researcher for gathering the
data. Primary data refers to those which are collected by the researcher specifically for their
research study. Primary data provide assistance to researcher in the whole research program
because it directly addresses the issue of the problem (Wellington, 2015). Researcher can gather
primary data through survey, observation, interview and focus group. It enables researcher to
gather appropriate data by taking into consideration the research issue or aspects. In addition to
this, secondary data consists of those which already gathered by some other authority for their
own research purpose. Secondary data sources include book, journals and research papers which
are published by scholars (Berger, 2015). All these sources also helps researcher in conducting
research with the high level of accuracy. Moreover, when large amount of data is available then
researcher is able to make in depth analysis of the research problem. To assess the extent to
which performance related pay influence the motivational aspect of an employee’s researcher
undertakes both primary and secondary data collection methods.
In order to gather primary data researcher conducts survey by preparing questionnaire
which addresses the research issue. By preparing questionnaire researcher is able to conduct
survey in an efficient manner. For this, researcher sends questionnaire on the e-mail id of trhe 20
customers of Morrison's. It enables researcher to gather suitable amount of data which helps
them in fulfilling the purpose of research study. Besides this, researcher also makes review of
books, journals and research papers which are related to the significance of performance related
pay system. Thus, by undertaking both the sources of data collection researcher is able to assess
the impact which performance related pay system on employee motivation. Thus, both primary
and secondary data sources provide assistance to researcher in conducting the further study in the
more effective and efficient manner.
Sample selection or methods
Sample refers to the small part which researcher requires selecting from the population
by taking into consideration the suitable sampling technique. Usually, it is not possible for the
researcher to conduct the study upon whole population (Windt, 2015). It is one of the main cause
due to which researcher prefers to select the sample size for the study. There are mainly two
types sampling techniques such as probabilistic and non-probabilistic sampling techniques.
Probabilistic sampling may be defined as those in which each all individuals get equal chance of
19

selection as sample (Carter and Lubinsky, 2015). This sampling method includes simple random
sampling, strata, cluster and systematic sampling method.
Probabilistic sampling method prevents biasness and thereby gives equal opportunity to
each individual of the population to being selected as sample. Unlike probabilistic sampling
method, each individual cannot get equal chance or opportunities to being select as a sample for
the research study (Haustein and Larivière, 2015). Non-probabilistic sampling techniques include
convenience, purpose sampling technique etc. Researcher undertakes non-probabilistic sampling
method to assess the significance of performance related pay system upon employee motivation.
Thus, by adopting suitable sampling technique researcher can conduct research in the right
direction.
For this study, researcher makes use of purposive sampling technique which enables him
to meet the purpose of research. In purposive sampling, researcher selects the sample and its size
by taking into consideration the purpose and objectives of research. Through this, researcher is
able to conduct the study in an efficient manner and thereby fulfill the purpose of research.
Researcher has selected 20 employees of Morrison's who undertake performance related pay
system to motivate the human resources of an organization. By taking review from such
employees researcher can easily identify the level to which performance related pay helps in
retain and sustain the employees for longer duration. Through this, researcher is able to conduct
survey in an effective manner. It provides assistance to researcher to represent the fair view or
judgment of the research issue or problem.
Data analysis plan
Data analysis may be defined as an inspecting, transforming and modeling of data which
helps researcher in drawing the valid conclusion. Data analysis is the most important stage of the
research study which helps in assessing the suitable outcome of the research issue or problem
(Bray, Snodin and Carter, 2015). In data analysis, researcher undertakes systematic process or
techniques to evaluate the data collected from survey. By analyzing the data researcher is able to
provide suitable framework to other researcher and companies who undertake performance
related pay system to motivate their employees. Data analysis plan highly depends upon the
nature and type of the research study which are undertaken by the researcher. Nature and type of
the investigation closely affects the technique which researcher will undertake to analyze the
outcomes of the questionnaire. Researcher has to select or frame data analysis plan by taking into
20

consideration the type of investigation such as qualitative and quantitative research. Usually,
thematic perception test is used by the researcher when they undertake qualitative research. On
other hand, researcher makes use of SPSS to analyze quantitative data.
For the assessment of impact which performance related pay places on employee
motivation researcher undertake thematic perception test. By preparing theme on the basis of
questionnaire researcher is able to present the outcomes in the more appropriate way. In addition
to this, it also includes charts and tables which represents clear and fair picture of the results of
questionnaire. Pictorial as well as theoretical framework or presentation of the outcomes of
questionnaire facilitates better understanding about the results of survey. Through this,
researcher is able to identify the level to performance related pay encourage employees to give
their best efforts for the well being of an organization. Thus, by undertaking the thematic
perception test researcher is able to present the fair judgment of research issue or problem.
Accessibility issues
Accessibility issues states the problem or difficulties which are faced by the researcher
during the research study. Moreover, researcher faces difficulty in gathering the suitable amount
of data upon which the accuracy and further study is highly dependent. During the study
researcher have faced problem in collecting the primary data via survey. Moreover, some of the
employees have presented negative attitude in relation to the filling of questionnaire. It is the
main cause due to which they do not give answer of the most of questions. Due to this,
researcher has faced difficulty in collecting the primary data through survey. It is one of the main
issues which hamper the accuracy of the outcomes of research study. In addition this, researcher
has also faced difficulty in gathering data from the secondary sources. Unavailability of latest
books in relation to the performance related pay and employee motivation also created difficulty
in front of the researcher.
Besides this, most of the research paper and journals which are unable to give sufficient
details about the significance of performance related pay. Due to this accessibility issues
researcher has faced difficulty in presenting the fair view of the research issue. Along with it,
availability of the authenticate data sources have also created difficulty in collecting the
appropriate data. Moreover, copyrighted data sources have high level of reliability rather than
other sources. Thus, it is also the main issue which closely affects the outcomes of the research
study.
21

Ethical consideration
Ethical consideration refers to the code of conducts which researcher requires following
while conducting their research study. Ethical aspects or consideration helps researcher in
increasing the reliability of the research study or results (Carson and et.al, 2014). On the basis of
ethical aspect researcher requires to maintain the confidentiality of the respondents. Researcher
has responsibility that they do not disclose the identity of respondents. In addition to this,
researcher does not force employees who are selected as a sample in relation to the filling of
questionnaire. In accordance with the ethical aspect researcher requires to encourage the
respondents to fill the questionnaire to the full extent. Besides this, researcher does not influence
respondents in relation to the filling of questionnaire by taking into consideration the unethical
aspects. Thus, researcher requires taking prior consent from employees before sending
questionnaire to them. In addition to this, researcher needs to make reference of the sources
which are undertaken by the researcher to assess the significance of performance related pay. By
maintaining all the above mentioned ethical aspects researcher is able to raise the effectiveness
of the study.
Research limitations
Sample size, time and financial resources are the main issues which are faced by the
researcher in their study. All these limitations have negative influence upon the outcomes of the
research study (Jackson, 2015). In order to assess the impact of performance related pay on
employee motivation researcher has conducted survey on only 20 employees of top institutions.
Thus, sample size is one of the main limitations of research study because outcome of the
research study is limited to 20 employees. If researcher undertakes more employees as a sample
then he is able to present fair picture of the research results. Along with it, time constraint is also
the most significant issue which hampers the effectiveness of research study.
In the present study, researcher has limited time to assess the relationship between
performance related pay and employee motivation. Usually findings of the researcher have no
value if he fails to present their views or outcomes within the suitable time frame. Thus,
availability of time is also the major issue which creates problem in conducting the research on
employee motivation and pay for performance on the large basis. Besides this, availability of
financial resources also affects the extent of research study. Researcher requires huge amount of
money to conduct survey. If researcher has lack of financial resources then they are unable
22

collect data from the large number of respondents. Moreover, success and accuracy of the
research study is highly dependent upon the data gathered by researcher. Thus, lack of sufficient
amount of financial resources also impacts the outcome of research study. All the above
identified issue has negative influence upon research study.
Reliability and validity
Reliability and validity of the research outcomes or study is the most essential elements
which help in raising the effectiveness of the research study. To make reliable the outcomes
researcher needs to collect data from the authenticate data sources. In addition to this, they also
requires to take caution while collecting data in relation to that they are properly referenced or
not. Researcher has undertaken copyrighted sources to collect data for the study. Usually,
sources which are copyrighted are more reliable rather than other sources. In addition to this,
researcher has made use of latest books and journals which ensures that the outcomes presented
by the researcher are more reliable. On the basis of this aspect, such data provides assistance to
other researcher who wishes to conduct researcher on significance of performance related pay on
employee motivation. Through this, other research is able to conduct the further study on such
issue more effectively with the help of reliable data sources.
23

CHAPTER 4 : FINDINGS, ANALYSIS AND DISCUSSION
Data analysis consists of the presentation and evaluation of the primary data or results
which are gathered by the researcher for their study. In order to analyze the extent to which
performance related pay plays significant role in motivating the employee’s thematic perception
test is undertaken by the researcher. By preparing suitable themes researcher is able to present
the fair view of the research issue or problem. It also includes graphs and charts which facilitate
better understanding towards the results of survey. Thus, data analysis sheds light on the results
or outcomes of the survey which is undertaken by the researcher during their study. Thematic
perception test is most effectual data analysis technique which contains both pictorial and
theoretical presentation of the research issue.
Theme 1: Which kind of rewards or benefits motivate you more
Responses No of respondents % of respondents
Monetary benefits 15 75.00%
Non-monetary rewards or
benefits
5 25.00%
Total 20 100

2
Monetary benefits Non-monetary rewards or benefits
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
% of respondents

According to the outcome of survey it has been identifying that 75% employees prefer to
get monetary benefits rather than non-monetary rewards or benefits. One of the employee
claimed that monetary benefits in terms of bonuses, incentives and allowances plays a significant
role in motivate him. Usually, middle and lower level managers or employees give priority to
monetary rewards and benefits. Moreover, financial benefit increases disposable income of the
employees and thereby raising the buying power of them. Thus, monetary gains or benefits
provide opportunity to employees to raise their standard of living and live a happy life. On the
basis of this aspect it can be stated that financial rewards or benefits plays a vital role in evolving
the motivation among the employees.
On contrary to this, 25% employees claimed that non-monetary benefits in terms of
rewards and recognition motivate them to work hard. Moreover, upper level managers do not
have high level of desire to get monetary benefits. Higher level manager have thrust to build
distinct position or image within the business organization. It is the main cause due to which they
prefers to get promotion and rewards such employee of the year etc. According to the Maslow’s
hierarchical theory needs or wants of the people are unlimited and they arise in the sequential
form. Thus, need and desire of self recognition is one of the main aspect or factor which
motivate the upper level manager to the large extent. In accordance with the large number of
respondent’s momentary benefits plays a vital role in developing the satisfaction among them.
3

Theme 2: Do you think that there is any relationship between performance related pay and
employee motivation
Responses No of respondents % of respondents
Yes 14 70.00%
No 6 30.00%
Total 20 100
4
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
% of respondents

On the basis of the above mentioned figure it can be stated that there is positive
relationship exist between performance related pay and employee motivation. Outcome of the
survey shows that 70% employees support this aspect. They claimed that motivational level of an
employee is increases when organization gives payment to them by taking into considerations
their skills and abilities. In the present era, employee have desire to earn extra money along with
their basic pay. It is one of the main aspects which motivate employees to perform their function
ad activities more effectively and efficiently. It provides opportunity to earn high and there by
enjoy their life. Thus, high level of relationship exists between employee motivation and
performance related pay.
Whereas 30% employees said that there is no relationship exist between the performance
related pay and employee motivation. In performance related pay organization give salary and
other financial benefits to employees by taking into consideration their skills and competencies.
In performance related pay two forms of financial benefits are offered to the employees namely
incentive and merit pay. One of the respondent claimed that merit pay negatively impacts the
motivational aspects of the employees. In merit pay, company make increment in the salary of
the after some time period. When organization takes long time to make increment in the salary
of the employees then it negatively impacts their motivational aspect to the large extent.
Theme 3: Do you agree that performance related pay plays a vital role in employee motivation
Responses No of respondents % of respondents
Yes 16 80.00%
No 4 20.00%
Total 20 100
5

On the basis the above mentioned table it has been assessed that performance related pay
plays a vital role in employee motivation. Among the 20 respondents 18 employees said that
performance related pay system is highly effective. In this, company pay to their employees on
6
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
% of respondents

the basis of their knowledge, skills, abilities and efficiency level. This system provides
opportunity to the human resource of an organization to receive bonuses and special perks for
achieving performance goals. This aspect motivates employees to make their best efforts which
help them in getting the extra financial benefits.
In today's world money is one of the main elements which develop satisfaction among
the workforce. In the present era, individual can live a better and luxurious life only when then
they earn high. It is one of the main motivating forces which compel personnel to make their best
efforts and thereby get extra benefits. This aspect clearly reflects that performance related pay
system provides assistance to the organization in motivating the employees. In contrary to this,
20% employees said that performance related pay does not have significant impact upon
employee motivation. They claimed that personnel who have high level skills and competencies
are usually self motivated. In this, there is no need to encourage the human resource of an
organization. From the other studies it has been found that there is still a urge or desire is present
in the employees about which they does not have any idea. Thus, by making assessment of urge
or desire company can easily encourage their employees to work hard and thereby helps in
achieving success in the competitive business arena.
Theme 4: Do you think that performance related pay system has bought a change in your
organization
Responses No of respondents % of respondents
Strongly agree 9 45.00%
Agree 7 35.00%
Disagree 3 15.00%
Strongly disagree 1 5.00%
Total 20 100
7

8
Strongly agree Agree Disagree Strongly
disagree
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
% of respondents

Outcome of the survey represents that performance related pay has bought remarkable
changes within the business enterprise. In performance related pay organization offers incentive
to their employees in terms of bonuses, extra pay etc. It is one of the main factors which motivate
employees to exceed the target and thereby get extra financial benefits. It is the main cause due
to which 45% people strongly agree with this aspect. Whereas 20%c respondents claimed that
pay for performance system does not helps in making profitable change within an organization.
Theme 5: Does performance related pay encourage you to work hard
Responses No of respondents % of respondents
Yes 16 80.00%
No 4 20.00%
Total 20 100
9
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
% of respondents

On the basis of the above mentioned table it has been identifying that performance related
pay encourage the employees of an organization to perform their work in an effective manner.
Result of survey shows that 80% employee prefers to work hard with the desire to get financial
benefits. Whereas 20% employees entail that there are so many factors which motivate
employees to work with the high level of dedication.
Theme 6: Does performance related pay develops competition within an organization
Responses No of respondents % of respondents
Yes 13 65.00%
No 7 35.00%
Total 20 100
10

In accordance with the above mentioned table it has been identifying that performance
related pat develops positive competition among the employees. According to the view point of
65% employees when company offers financial reward in terms of employee of the year, best
performer etc. then employees make competition with their colleagues. They started to race with
other in relation to the meeting of target. It also assists employees in increasing their efficient
and level of competencies. Through this, human resource of an organization is able to build their
career more bright and successful. In contrary to this, 35% entails that pay for performance
system is not high fruitful for the corporation. Moreover, it creates conflict among the personnel
who works within an organization. In today's world each person wishes to earn distinct position
within an organization. Due to this aspect, employees make focus upon their own working
aspects and thereby prevent to help other persons. In addition to this, pay for performance system
11
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
% of respondents

also may cause of jealousy which take place between the employees. Thus, when company
introduces incentive pay then it affects the competition aspect in the negative direction.
Theme 7: Do you agree that performance related pay encourages you to create something
unique or innovative
Responses No of respondents % of respondents
Yes 15 75.00%
No 5 25.00%
Total 20 100
12
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
% of respondents

On the basis of the above mentioned figures it has been evaluating that 75% employees
are encouraged to create something unique or different when organization pay to them in
accordance with their efficiency level. Usually, company encourages their employees to present
their unique ideas and suggestions. For this aspect, organization introduces special kind of
reward and benefits to their personnel who will give their unique ideas. Through this,
organization is able to offer unique product or services to their customers. It helps firm in
attracting the large number of customers towards the product or services offered by them and
thereby build customer loyalty. In addition to this, incentive system motivate employee to think
unique and there by grab the opportunities which are present in the business environment.
Whereas 25% employees do not support the fact that pay for performance method
encourages them to offer something creative. One of the main causes behind the negative
response of the employees is that when employees work consistently with the aim to meet the
target. In this situation, they are not able to create something unique or different. Besides this,
many of time one of the employees thinks that his or her suggestion is highly as compared to
others. This aspect also affects the motivation of the employees.
Theme 8: Does performance related pay system supports culture and existing values of an
organization
Responses No of respondents % of respondents
To some extent 2 10.00%
To middle extent 8 40.00%
To the large extent 10 50.00%
Total 20 100
13

According to survey 10% respondents said that performance related pay system supports
culture and existing value of an organization. Whereas 40% employees support this aspect to the
middle extent. In contrary to this, out of the 20 employees 10 employees claimed that pay for
performance influence values and cultural aspect of the firm to the large extent. Approximately
50% employees support performance related pay because such system helps in developing the
14
To some extent To middle extent To the large extent
0
0.1
0.2
0.3
0.4
0.5
0.6
% of respondents

positive working environment within the firm. Incentive pay scheme encourage each and every
personnel to give their best efforts which helps them in achieving the financial benefits.
Moreover, working environment is highly associated with the motivational facet of the
employees. When some of the employee works hard to achieve to special perk and benefits then
other people are also motivated to work harder. On the basis of this aspect it can be stated that
pay for performance system positively influence the value and culture of the corporation.
Whereas 2% employees said that pay for performance method negatively influence the
cultural aspect of the business enterprise. Group cohesiveness is one of the main aspects of
working environment which plays a crucial role in achieving the success in the strategic business
environment. Nevertheless, performance related pay scheme negatively hampers the
cohesiveness of the team members. In team, each member makes efforts to get financial reward
over other and by impacts the growth and developments of the group.
Theme 9: Are you aware from the standards which are undertaken by the organization while
appraising their performance
Responses No of respondents % of respondents
Yes 12 60.00%
No 8 40.00%
Total 20 100
15

According to the results of survey 60% respondents said that they are highly aware from
the standard which is undertaken by an organization while appraising their performances. In
performance related pay system employer undertake several parameters to assess the
performance of an employees. It includes disciplinary, punctuation, efficiency etc. which provide
assistance to firm in measuring the performance of their employees. In accordance with the
above mentioned theoretical framework several authors support this aspect. If employees have
information about the parameters against which their performance is measured then it evolve
satisfaction among them. Moreover, it provides deeper insight about the standards upon which
they require to make focus. Through this, human resources of an organization are able to perform
in the right direction and there by receive financial benefit. In addition to this, if standards are
known to the employees then they are able to evaluate their performance after the predetermined
time period. It develops feeling among them that their performance is fairly treated. It is one of
the main factors which is highly associated with the satisfaction and motivational aspect of
employees.
16
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
% of respondents

In contrary to this, according to the views of 40% employees they do not have any idea
about the standards or parameters which are adopted by an organization for their appraisals. This
aspect may cause high level of dissatisfaction among the customers. Moreover, if employees are
unaware form the ways through which performance of employees are measured then it
negatively affects the employee motivation. It is one of the main factor which entails that
appraiser have undertaken the biasness while appraising the performance of employee. This
aspect places high level of impact upon the productivity and profitability aspect of the
employees. On the basis of all the above mentioned aspects it has been assessed that large
number of employees of an organization has information about the standards which are used by
them for performance appraisal.
Theme 10: Does company involve you while setting the parameters against which your
performance is evaluated
Responses No of respondents % of respondents
Yes 13 65.00%
No 7 35.00%
Total 20 100
17

On the basis of survey it has been found that 65% employees entail that company
encourage them to take active participation in setting the most suitable parameters for
performance appraisal. One of the employee said that his organization encourage him to give
their views and suggestions which helps in evaluating the performance in the right direction. In
performance related pay, corporation make evaluation of the performance of their employees by
taking into consideration the set parameters. Such standards or parameters are highly associated
with the working aspects and functions of individual. When organization involves their
employees to set parameters for appraisal then it places positive impact upon the motivational
aspect of the human resources. In this, employees have an idea about the ways through they can
enhance their performance and thereby able to get financial benefits and recognition.
Besides this, it also provides information to the employees about their roles and
responsibilities which are highly associated with their appraisal. Through this, human resources
of an organization are able to perform their functions and activities in an efficient manner. Thus,
by involving the employees in the decision making process organization can increase the level of
motivation of their employees and thereby getting the desired level of outcome or success.
Whereas 35% employees of top institutions have presented their views that their employees does
not involve them in the process of setting parameters for financial appraisal. Usually, I board of
director and manager plays a vital role in setting the criteria which is used by an organization to
18
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
% of respondents

evaluate the performance of their personnel. This kind of appraisal is recognized as hidden
appraisal in which employees do not have any idea about the measures which are undertaken by
the firm. It negatively affects the motivational level or aspect of the employees. Moreover, they
think that manager give reward only who the persons who agree on their aspect whether it is
right or wrong. This aspect have significant upon the motivational aspect of an employees and
their closely impacts the employee retention as well as absenteeism.
Theme 11: Do you agree to fact that the performance related pay contributes towards growth
and development of the organization
Responses No of respondents % of respondents
Strongly agree 11 55.00%
Agree 6 30.00%
Disagree 2 10.00%
Strongly disagree 1 5.00%
Total 20 100
19
Strongly agree Agree Disagree Strongly
disagree
0
0.1
0.2
0.3
0.4
0.5
0.6
% of respondents

According to the views of respondent’s performance related pay system makes
remarkable contribution in the growth and development of the business organization. Result of
survey shows that 55% strongly agree that pay for performance system helps organization in
reducing employee absenteeism. Besides this, it also provides assistance to the business
enterprise in declining the ratio of employee turnover. Moreover, when firm sets deadline for the
project and also introduce the financial benefits which are highly associated with it then
personnel is encourage meeting up the deadline. It is most effective factor which encourages
employees to perform their work with the high level of dedication and there by receive extra
benefits. Deadline and incentive pay are the main aspects which encourage employees to avoid
taking leave from the work and there by maximizing the productivity and profitability of an
organization. In the present scenario, employee motivation is the key to success. In the
competitive business environment firm can attain success only when they have highly satisfied
and motivated workforce.
In addition to this, 30% people also agree that incentive pay system helps in getting the
desired level of outcomes or results. In performance related pay System Company make
assessment of the performance of their employees on periodical basis. This aspect provides
deeper insight to an organization about the training and development need of their employees.
Through this, organization is able to build the competencies among their employees in which
they are less efficient. Through this, employees are able to act organizational functions in an
20

effective manner without facing any difficulties. Moreover, when employee faces difficulty in
performing their work then it closely affects the motivational level of employees and thereby
negatively impacts the productivity and profitability of the business enterprise. This facet of
performance related helps firm in getting success in the strategic business environment.
In contrary to this, 10% employees disagree that pay for performance system helps
company in achieving growth and success. Besides this, 5% respondents are also strongly
disagreeing with the aspect that pays for performance system proves to be more fruitful for the
enterprise. Employee said that only performance related pay is not only the factor which
encourages employees to perform more effectively and efficiently. Culture, structure, norms and
values of the corporation also have high level of influence upon the satisfaction and motivational
level of employees. These factors are also closely associated with the organizational growth and
development.
Theme 12: Do you think that the performance related pay helps in employees’ retention for
long run
Responses No of respondents % of respondents
Strongly agree 13 65.00%
Agree 4 20.00%
Disagree 2 10.00%
Strongly disagree 1 5.00%
Total 20 100
21

The above mentioned tables shows that 65% respondents are strongly agree that
performance related pay helps in retaining the employees for longer duration. Level of employee
retention is the key indicator which helps in identifying the level of satisfaction and motivation
of employees. In incentive pay system organization offers chance to their employees to get extra
financial benefits in each month. In performance related pay System Corporation give monetary
benefits to their employees along with the rewards. With the aim to encourage other employees
organization conducts programs in which all the employees of the group are invited by the
manager. In this, financial rewards along with the certificates are distributed by the director of
the corporation. This aspect develops special feeling among the personnel who is rewarded by
employer.
22
Strongly agree Agree Disagree Strongly
disagree
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
% of respondents

On the basis of the above theoretical framework it has been assessed that reward and
recognition program also motivates the other employee of an organization to work harder and
thereby get such reward from the employer. Usually, employees have desire to build their
distinct image or identity over the other employees of the firm. Moreover, employee prefers to
work in the organization who offers financial benefits and rewards to them on the periodical
basis. Thus, reward and recognition program helps organization in retaining the employees for
longer duration. It is the main feature due to which 20% employees also supports the fact that
company can retain the talented workforce for long time by paying salaries and other benefits to
them on the basis of their skills and competencies. High employee retention also provides benefit
to the corporation as well. When company is succeed in retaining their talented employees then
they does not require making huge expenditure on training and development of new employees.
In addition to this, it also provides assistance to an organization in saving the cost of recruitment
and selection of new employees. Thus, performance related pay system helps in retaining the
employees and there by provide benefit to both employer and employee.
Whereas 10% employees disagree with the fact that pays for performance system helps in
employee retention. Another 5% people strongly disagree with the above mentioned aspect. On
the basis of the critical assessment of such issue it has been identifying that in performance
related pay is not only the factor which plays a vital role in retaining the employees for longer
duration. There are also several other factors which have high level of influence upon employee
retention. Leadership is the most important factor which plays a significant role in motivating the
Employees of organization. Leader provides guidance to their team member through which they
are capable to perform the activities in an effective manner without facing any difficulties. One
of the employee said that pay does not matter where organization offer wide development
opportunities with proper guidance. In order to build the bright future or career personnel
primarily focus upon the building of competencies. Through this, they are become capable to
grab the most profitable opportunity in the near future.
Theme 13: Do you agree to fact that the performance related pay system helps in reducing
employees’ turnover within the organization
Responses No of respondents % of respondents
Strongly agree 12 60.00%
23

Agree 7 30.00%
Disagree 1 5.00%
Strongly disagree 1 5.00%
Total 20 100
24
Strongly agree Agree Disagree Strongly
disagree
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
% of respondents

According to the above mentioned table 60% employees strongly agree that pay for
performance system helps in reducing the employee turnover within the organization. Employee
motivation has high level of positive correlation with their productivity. Usually, when
employees are highly motivated then they present to take leave from work. In addition to this,
they also make efforts to work in an appropriate manner and thereby make contribution in the
sales and gross margin of an organization. Among 20 employees 30% respondents agree that
performance related pay helps in maximizing the productivity of the human resources of an
organization. It enables corporation to reduce the percentage or graph of the employee turnover
by taking into consideration the performance related pay. Attractive incentive and bonus pay
system encourage personnel to exceed the target which is provided to him. It provides
opportunity to employees to earn extra and thereby raise their standard of living. It helps
organization in reducing the employee turnover which ensures that employees are highly
satisfied and motivated.
Whereas 10% employees said that pay for system does not help organization in reducing
the employee turnover to the large extent. Moreover, there are several factors which may cause
of high employee turnover. Boredom is the main factor which closely affects the motivational
aspect and work speed of the human resources. In addition to this, if employees are unhappy with
the strategies and policies of management then it closely affects the employee productivity and
profitability. One of the respondents claimed that absence of advancement or growth
opportunities are also the main factor due to which employee turnover is increases within the
business enterprise. When existing organization fails to offer opportunities which helps
personnel in building the bright future or career then employee prefers to look after the new job
outside of an organization. Thus, only performance related pay system does not help
organization in reducing the high employee turnover.
Theme 14: Do you find some negative consequences of performance related pay
Responses No of respondents % of respondents
Yes 7 35.00%
25

No 13 65.00%
Total 20 100
26
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
% of respondents

On the basis of the above mentioned figures it has been analyzing that 35% employees
said that performance related pay scheme have positive influence upon employee motivation.
One of the respondents claimed that when company pay to their employees on the basis of their
skills and competencies then it entails satisfaction among the employees. In addition this,
monetary benefits and rewards are one of the main force which motivate the middle and lower
level managers to the full extent. In addition to this, performance related pay system also provide
information the employees about the area in which they needs to make development. Thus, pay
for performance system plays a vital role in raising the motivational aspect of their employees.
Along with the employees, performance related pay method also provide benefit to the
organization in terms of high level of productivity and profitability. In incentive pay Scheme
Company give chance to their employees to earn extra and thereby evolve satisfaction among
them. Usually, satisfied employees are highly productive as compared to dissatisfied workforce.
In addition to this, motivated people strive their best efforts which contribute in the
accomplishment of goals and objectives of the firm.
In contrary to this, 65% employees claimed that performance related pay places negative
impact upon the motivational aspect or level of employees. In Merit Pay Company make
increment in basic pay of the employees by evaluating their performance. If highly efficient
employee fails to achieve target in the one quarter then it negatively affects the merit pay of him.
Besides this, usually form makes evaluation of the performance of their employees after a long
period of time in merit pay system. It is one of the main aspects which have impact on employee
motivation. Most of the time performance related pay creates conflict among the individuals and
there by hampers the culture of the organization. When firm introduces financial benefit for the
best performance then employees started to create competition with their co-workers. Along with
it, if employees have lack of the awareness in relation to the standards which organization
follows to appraise their performance then it also place negative impact upon employee
motivation. Thus, biasness in evaluation, awareness about the standards etc. are the main aspect
which develops negative consequences of pay for performance scheme.
27

28

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
From this research it has been concluded that performance related pay have plays a vital
role in developing the motivation among employees. In pay for performance System Company
make payment of salaries and wages to their employees on the basis of their skills, abilities,
competencies and efficiency level. Besides this, it can be inferred that performance related pay
scheme is more effective which helps organization in enhancing the motivational aspect of an
employees. In this scheme, company offer merit as well as incentive pays to their employees for
their remarkable performance. It is the most effectual system which helps organization in give
credit to their employees for their fabulous performance.
Objective 1 and 2: Role of performance related pay in personnel management along with the
benefits and drawbacks
It can be seen in the report that performance related pay method plays a significant role in
the field of personnel management. In this, HR manager of the business enterprise evaluate the
performance of their employees in against to the set parameters on the periodical basis. Through
this, HR manager is able to assess the skills and efficiency of their employees. It helps
organization in recognizing the performance of suitable candidates and there by encourage them
to work harder. It can be stated that performance relates pay helps HR manager in managing the
employees in an effective manner. In addition to this, in pay for performance scheme
organization sets some parameters which also provide assistance to HR manager in recruiting
and selecting the best personnel for the job. Parameters or standards help human resource
manager in assessing the present level of knowledge and capabilities of the personnel.
Further, it can concluded that monetary benefits or rewards help in evolving the
motivation among the workforce. Lower and middle salaried workers usually prefer to get
additional financial benefits from their employers as compared to rewards. Moreover, salary of
the middle and lower level manager is not high and thereby closely affects the standards of living
of them. Thus, monetary benefits and reward also act a motivator which encourages them to
work harder and thereby raise their disposable income. It can be articulated that there is high as
well as positive relationship exists between the performance related pay and employee
motivation. Moreover, pay for performance scheme provides opportunity to the employees to
meet up the target and thereby enjoy extra monetary benefits. From the present research study it
has been found that money is one of the main factors which motivate the employees of an
29

organization to the large extent. This scheme provides high level of assistance to the business
organization in enhancing the performance of their employees.
On the basis of the outcome of survey it can be inferred that pay for performance system
helps in increasing the level of motivation of the human resources. Performance related pay
system encourage employees to work harder and thereby receive additional perk and benefits to
their employees along with the basic pay. It enables employees to increase their disposable
income and thereby live a better and wealthy life. Further, it also has been concluded that pay for
performance scheme also helps Morrison in making remarkable changes within an organization.
In the present era, company introduces unique prizes, gifts and other monetary benefits for the
employees who have achieved success in creating something unique or innovative within the
firm. This aspect highly motivates the employee to think differently and thereby get financial
perks or benefits. Innovation or uniqueness in the product or services also helps business
enterprise in build or sustain competitive advantage over others.
In addition to this, it also has been concluded that performance related pay method helps
Morrison to encourage their employees to work hard and thereby receive extra financial benefits.
In the competitive business environment employees have desire to build distinct image in the
firm by completing the target within the less period of time. Through this, personnel are able to
get financial rewards or recognition and thereby crate their distinct identity in the mind of their
colleagues. It is of the motivating factor which encourages employees who got reward as well as
other employees to strive their best efforts which make contribution in the attainment of
organizational goals and objectives. Thus, it can be inferred that pay for performance scheme
motivate the workforce of the enterprise to perform their functions and activities with the high
level of dedication.
On the basis the results of survey it can be stated that pay for performance system
develops positive competition within an organization. When employer sets target for all their
employees and thereby announce the financial benefits on the basis of such target then it
develops competition among the workforce. In this, each employee make their great efforts to
meet up the target with the aim to receive the special perks and benefits. In addition to this, each
employee have desire to work on the high level of designation. Thus, it is also the main factor
which encourages employees to compete with their colleagues in the positive manner and
thereby build the bright future or career of themselves.
30

In addition to this, it can be presented that performance related pay method encourage
employees to create something unique or different within the business organization. In the
dynamic business arena, Morrison can survive only when they would offer something different
to their customers. Thus, organization can encourage their workforce to present their unique
ideas and suggestions which helps them in getting success in the highly competitive business
situation. In this, corporation gives monetary rewards and recognition to the personnel whose
idea is highly unique over others. According to this aspect it can be stated that pay for
performance helps in motivating the employees to the large extent. It can be seen in the report
that pays for performance related pay scheme supports culture and existing value of an
organization. When employee get pay on the basis of their skills and abilities then they it
develops positivity in the culture of the corporation. This kind of system encourages each and
every employee of the organization to work harder and there get the benefits from it.
Objective 3: To evaluate the interrelationship between performances related pay and employee
motivation or morale of Morrison's.
Along with it, it can be concluded awareness of the standards of appraisal have high level
of influence upon the motivational aspect of the human resources. If workforce of an
organization is aware from the parameters of performance appraisal then they are motivated to
perform their work in an effective and efficient manner. It also provides assistance to the
employees to evaluate their performance by their own. Thus, pay for performance system also
facilitates self evaluation and thereby provide clear idea to them about the area in which they
needs to make high level of efforts. It enables employees to strive their best efforts and thereby
attain the financial perks and benefits. Further, it can be concluded by paying to the employees
on the basis of their performance company can enhance the motivational level of their employees
to the significant extent.
Besides this, it can be summarized Morrison involves their employees while setting the
parameters for the performance evaluation. It provides deeper insight to the human resource
about the standards against which the performance of them is evaluated. In this, employees are
well-known to the parameters which are undertaken by the organization. In this, employees are
able to perform their activities in accordance with the set parameters. By summing up the
research project it has concluded that corporation can retain their employees for long run by
offering the extra monetary benefits to them. In incentive pay system firm sets the target which
31

employees require to meet. If employees will meet the target then they are able to get some
additional monetary benefits. Additive pay or benefits are the main factors which encourage
personnel to work with the existing organization for the longer duration. Thus, pay for
performance system helps organization in retaining the talented employees with it. Employee
retention is one of the main aspects which make contribution in attainment of organizational
goals and objectives. When efficient employees are motivated to work with the existing firm
then firm have less requirement to recruit new personnel. It provides assistance to an
organization in saving the cost of recruitment, selection as well as training and development.
Moreover, firm needs to conduct training and development session for their new employees
which impose high financial cost in front of them. In this situation, performance related pay
scheme helps Morrison is retaining the efficient employees for long run and thereby maximize
the profitability of them. Besides this, from survey it has been identifying pay for
performance scheme also assists business organization in reducing the high employee turnover.
By paying employee or workers on the basis of their competencies organization can encourage
their workforce. It helps in building the positive culture within the business enterprise and
prevents the high level of absenteeism. Further, appropriateness of performance appraisal is also
the main factor which has influence upon the motivational aspect of employees. If manager of
the corporation make review of the performance of their employees without any biasness then it
helps in raising the satisfaction s well as motivational aspect of an employees. In this, workforce
of the firm avoids to take leave from their work and make their best efforts to enhance the sales
as well as gross margin of the corporation.
Along with the positives, pay for performance system also have some negative
consequences upon the level of satisfaction and motivation aspect of an employees. If Morrison
fails to evaluate the performance of workforce in the right direction then it negatively hampers
the motivating force of them. Besides this, different level of employees has different needs,
wants and desire which closely affects the motivational aspects of them. Usually, low salaried
employees prefer to get monetary rewards which help them in fulfilling their desires. On other
hand, upper level managers wish to earn recognition within the business enterprise. Thus, if HR
manager of the firm fails to identify the motivating force of the individual then organization is
not able to encourage the workforce. In the strategic business scenario performance related pay
scheme have high level of positive consequences as compared to negatives On the basis of the
32

whole research study it can be sum up that performance related pay method is highly significant
in enhancing the motivational aspect of the human resources.
RECOMMENDATIONS
From the findings of the data analysis there are several recommendations which are
provided to Morrison's. Through this, Morrison is able to encourage their personnel to the
significant extent.
 It is recommended to HR manager that they needs to develop the system of self
evaluation within the business enterprise. It provides opportunity to the employees that
they give the grade or rank to their work on the basis of several aspects. It is the best
technique which helps manager in developing the faith or trust among the employees.
Self appraisal or evaluation system ensures the employees that their performance is fairly
evaluated.
 In addition to this, Morrison needs to encourage their human resources to take
participation in the process of setting parameters. Further, manager should encourage the
employees to present their views and suggestions which helps in improving the system of
performance appraisal. Moreover, in pay for performance method merit as well as
incentive pay is highly dependent upon the ways through which performance is appraised
by the manager. Thus, by improving the parameters of performance appraisal manager
can motivate their workforce.
 Along with it, manager of the firm should make efforts to assess the type of rewards or
benefits motivate their employees to the great extent. Usually, different types of
employee have different motivating force. Thus, by identifying the force organization can
easily encourage their workforce in an effectual manner.
 Besides this, manager requires to set achievable target to evolve motivation among the
employees. Moreover, incentives are highly dissociated with the target so company
needs to set appropriate target for their employees which enable them the enjoy monetary
reward or benefits.
 Furthermore, HR manager of the firm needs to make assessment of the performance of
their employees within the suitable time period in terms of quarterly or half yearly basis.
In merit pay scheme employee make review of the performance of their personnel after a
long period of time. It is one of the elements which affects the satisfaction and
33

motivational aspect of the employees. Thus, by reviewing the performance of the
workforce within the suitable time frame company can encourage their employees by
making increment in the salary on the basis of the present level of knowledge and skills.
 Besides this, employer or human resource manager needs to develop positive working
environment within the business enterprise in relation to the performance related pay
scheme.
 Further, Morrison needs to avoid the repetition in the reward and recognition program.
Thus, manager of the firm needs to give reward or recognize the performance of each
employee rather than focusing on one individual. It is also the main aspect which closely
impacts the motivational aspect of the employees.
 Personnel who make evaluation of the performance of the employees need to avoid
biasness at the time of evaluation. When employer avoids biasness in performance
appraisal and evaluation then it positively influence the capability of the employees.
 It is advised to manager of the corporation that they require to conduct training and
development session for their employees who offer opportunity to them to enhance their
skills, knowledge and competencies. Through this, human resource of Morrison is able to
perform their activities in an effective manner without facing any difficulties and thereby
get financial perks or benefits.
 Business enterprise also needs to develop open communication system which provides
opportunity to the employees to share their feelings. Thus, by evolving the suggestion
box organization is able to motivate their workforce.
Thus, by taking into consideration all the above mentioned recommendations
organization is able to gain and retain highly talented and satisfied workforce.
34

Reflective Statement
From this research project I have learned several techniques of research which enables
me in conducting further research in an effective manner. In addition to this, research has also
developed my skills in relation to conducting survey. The present research have also developed
my understanding about the concept of performance related pay as well the ways through which
it helps in enhancing the motivational aspect of an employees. Thus, it can be said that the
present research study helps me in enchaining my knowledge and efficiency level.
35

36

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Questionnaire
Demographic information
Name
Age
Occupation
1. Which kind of rewards or benefits do you motivate more?
 Monetary benefits ()
 Non-monetary rewards or benefits ()
2. Do you think that there is any relationship between performance related pay and employee
motivation?
 Yes ()
 No ()
3. Do you agree that performance related pay plays a vital role in employee motivation?
 Yes ()
 No ()
4. Do you think that performance related pay system has bought a change in your organization?
 Strongly agree ()
 Agree ()
 Disagree ()
 Strongly disagree ()
5. Does performance related pay encourage you to work hard?
 Yes ()
 No ()
6. Does performance related pay develops competition within an organization?
40

 Yes ()
 No ()
7. Do you agree that performance related pay encourages you to create something unique or
innovative?
 Yes ()
 No ()
8. Does performance related pay system supports culture and existing values of an organization?
 To some extent ()
 To middle extent ()
 To the large extent ()
9. Are you aware from the standards which are undertaken by the organization while appraising
their performance?
 Yes ()
 No ()
10. Does company involve you while setting the parameters against which your performance is
evaluated?
 Yes ()
 No ()
11. Do you agree to fact that the performance related pay contributes towards growth and
development of the organization?
 Strongly agree ()
 Agree ()
 Disagree ()
 Strongly disagree ()
12. Do you think that the performance related pay helps in employees’ retention for long run?
 Strongly agree ()
 Agree ()
 Disagree ()
41