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Performance Related Pay

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Performance Related Pay Definition

Performance related pay (PRP) schemes are reward systems where some part (conceivably all) of an employee's remuneration depends on an assessment of performance against predetermined criteria. PRP performance criteria can relate to the individual employee, to work groups or to the organisation as a whole (Armstrong, 2002). Alternatively, the criteria might refer to actions taken by the employee to enhance his or her competence or skill level such as training or mentoring.

Performance Related Pay Description

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Performance Related Pay Examples

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Performance Related Pay Implementation

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Performance Related Pay Strengths

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Performance Related Pay Weaknesses

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Performance Related Pay Value Focus

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Performance Related Pay Life Cycle

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Performance Related Pay Sector Focus

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Performance Related Pay Web resources

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Performance Related Pay Print resources

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Performance Related Pay References

  • Armstrong, M. (2002) Rewarding Individual and Team Contributions and Organisational Performance in Employee Reward, CIPD, London.
  • Arrowsmith, J., French, S., Gilman, M., and Richardson, R. (2001) Performance-related pay in health care, Journal of Health Services, Research and Policy, Vol. 6 (2), pp. 114-119.
  • Conyon, M., Peck, S., and Read, L. (2001) Performance pay and corporate structure in UK firms, European Management Journal, Vol. 19 (1), pp. 73-82.
  • Goodhart, D. (1993) Rewards for top performers, Financial Times. 3 November 16.

There are up to fifteen original source references used to write the overview of Performance Related Pay. Please log in or subscribe to view the original source material our researchers used to write about this concept.

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