MOTIVATION

Question 1

Conditions necessary for Performance related pay to be an effective way of motivating people. those involved will need:

Answer 1

1. to understand organisational goals
2. to have budgets which they accept as consistent with achieving those goals
3. to feel the budgets are challenging but achievable
4. to have the appropriate SKILLS
5. to feel they can INFLUENCE the performance outcomes.
6. To see the measurment of performance outcomes as fair
7. to be motivated by the level and type of reward

The scheme itself must have.

1. clear definitions as to what performance outcomes will be rewarded
2. an organisation structure which allows performance to be linked to authority & responsibility
3. A method for measuring the relevant performance outcomes
4. Rewards at a suitable level & type to be motivating