Contents
Introduction 2- Arguments 3
- Conclusion 4
- References 6
Description
Pay for performance programs is one among a series of measures introduced by the human resource function of companies to achieve company aims while satisfying employee aspirations. It has been gaining popularity around the world due to the revolutionary nature of the program. It proposes to increase the share of performance linked bonus in an individual’s salary. Already around 25% of the income of family practitioners in the UK is related to their performance and more than $3billion is being put into such programs in the US in the health care sector alone (Mehrotra et al. 2010). The basic aims that are set for the program is to reward individuals who are productive and thus motivate them to perform better while cutting cost on poor performers thereby increasing the per capita productivity and overall productivity for the company.
