Performance related pay and employees motivation

The adoption of performance-related pay schemes is part of the wider market-type reforms occurring in public services today. The main questions raised revolve around the novelty, objectivity and compatibility of such practices to which this study responds.The thesis argues that the value of an incentive scheme policy is a function of the organizational environment, objectivity of performance measurement processes. The research uses data from in-depth interviews, questionnaires. The main reason for this failure to motivate looks to be that the allocation of performance payments is seen by very many staff to be unfair. Awards are given only to those who have received good appraisal ratings. But many of our respondents feel that the appraisal ratings, but many of our respondents feel that the appraisal system has been corrupted. A second reason is that staff feel the amount of money involved in performance pay awards is simply not large enough to justify a change in behavior. A third reason is that very many staff feel that they are already working to the right standard and that they cannot improve.The research instrument was the questionnaire.