Magazine article Management Today

MT Masterclass: Performance-Related Pay (PRP)

Magazine article Management Today

MT Masterclass: Performance-Related Pay (PRP)

Article excerpt

What is it? If only we could get what we paid for.

This is the management dream that lies behind PRP. Why not reward performance according to individuals' direct output? This should provide a clear incentive for staff to work harder and produce more. But life does not work like that. For most people, money is more of a 'hygiene factor' than a true provider of inspiration. Except in the purest of sales-driven environments, performance rewards don't always motivate people to work harder. Basic pay is what counts, what gets people to turn up. And a bonus is just that - a bonus.

Where did it come from? 'Piecework' is the purest form of PRP - no-one gets paid until something gets made. The origins of piecework are pre-industrial, but it was a concept picked up by Frederick Taylor early last century in his theory of 'scientific management'. This idea was satirised brilliantly if brutally in a scene in Steven Spielberg's Oscar-winning film Schindler's List. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.