Individual Performance Related to Pay and Motivation

Several organizations are in the competition to survive in the current dynamic and competitive business market. The organizations by and large depend on performance of well motivated employees and they consider motivation as a basic tool for their success. The concept of performance evaluation through appraisals is a important constituent of organizational management as it directly reflects its achievement and progress. The Performance related Pay is an essential method to fuel motivation, as employees utilize it to accomplish their wants and needs (Fisher, 2005). In addition, Performance-related to pay is principally a kind of payment system that depends on evaluated performance. According to the performance related pay system, payment is awarded on certain merits. This system of pay was initially introduced in the United Kingdom on a broad scale in the 1980s and several organizations become hopeful that the Performance related pay system would bring cultural change and motivate higher levels of organizational and individual performance. At present, this system is a key element of reward strategies in organizations, specifically in sectors for instance financial services.