Employee Motivation : An Organization Essay

1463 Words Nov 16th, 2015 6 Pages
Introduction
Pay-for-Performance (PFP) is an organisational employee motivation tool put in place by the human resources team, wherein the employees are rewarded and compensated based on achieving certain performance targets in addition to the overall time worked (Billikopf, 2001). From the above definition it can be seen that PFP revolves around two critical elements; motivation and performance. The critical analysis of these two elements individually and as a combination, would help in understanding PFP and its associated implications. Some of the implications associated with PFP are its long term sustainability aspect and ethical consequences in the evolving business scenario. In order for an organisation to have a competitive edge, the retention of skilled performing employees is critical and is an area where PFP comes into play.
PFP and Motivation
Fitzgerald (2013) mentions that motivation is one of the key drivers of employee performance. In his research, he has mentioned that in order to motivate employees or a team in an organisation, they should be provided with “purpose, autonomy and progress”. The three mentioned constituents form the core for intrinsic motivation within an organisation, which is reflected in the delivery of high performance outputs that can be rewarded. Another theory which is influential in understanding employee motivation is the expectancy theory. Expectancy theory highlights that for an individual to be intrinsically motivated for a salaried…

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