Payment Systems and the Influence of Motivation

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TABLE OF CONTENTS

INTRODUCTION 4

TIME RATES PAYMENT 6

TIME RATES PAYMENT PERSONAL EXPERIENCE 8

PAYMENT BY RESULT 13

PAYMENT BY RESULT PERSONAL EXPERIENCE 16

PAYMENT BY RESULT CASE STUDY 19

PERFORMANCE BASED PAYMENT 20

PERFORMANCE BASED PAYMENT CASE STUDY 22

PAYMENT SYSTEMS AND MOTIVATION THEORIES 23

CONCLUSION 28

APPENDICES 29-34

A National Staff 2001 Performance Review

B Payment by Result Case Study

C Performance Based Payment Case Study

D Presentation slides

REFERENCES 35

INTRODUCTION

Pay, effort, performance and rewards are core issues in the employer-employee relationship. The first reference to measure work dates back to the printing trade during the fourteen-century. From the employees' perspective, policies regarding wages, salaries and other earnings have a major impact on their standard of living.

motivation-001

English: Shows early psychological student motivat...

2011 MLS Salary Grid

Pay is often considered as a sign of status and success and, consequently, employees attach great importance to pay decisions when they evaluate their relationship with the organization. As a result, pay decisions are carefully structured and managed in any organization. From the employer's point of view, pay is a powerful tool for furthering the organization's strategic goals. Pay and work measurements are elements of control and motivation for people at work.

According to Armstrong & Murlis (1994), the definition of Reward Management is the process of developing and implementing strategies, policies and systems which lead to organisational objectives by obtaining, keeping and increasing the motivation and commitment of employees.

Reward is one method that companies use to communicate with employees about their value and contribution to the organisation. Effective reward management results in the optimisation of staff costs, while individual and...