Performance-Based Pay as a Motivational Tool for Achieving Organisational Performance: An Exploratory Case Study
Year: 2011
Type: article
Study design: Observational Study
Abstract: The issue of employees’ performance in furtherance of organisational objectives has occupied managementattention for long. Differences in levels of performance have been attributed to differences in skills and abilitieson the one hand, and to different theories of money on the other. This study examined the issue ofperformance-based pay as a motivational tool for achieving organisational performance, using the situation in amanufacturing company in Ghana as a case study. The main objective of the study was to assess the impact ofperformance-related pay on the motivation of employees and, subsequently, on the achievement oforganisational goals. In all, one hundred and fifty respondents took part in the survey. The sample comprised 20managerial staff and 60 non-managerial staff. The main research instrument was the questionnaire. A two-wayANOVA table was used to test the main hypotheses. The result of the study revealed that the effect ofperformance-based pay on employee performance is minimal; and the motivational effect of merit pay is oftenblunted by biased performance appraisal. The main limitation of the study is that it could not cover allmanufacturing companies within the target population, due to time and financial constraints. In this respect, theinterpretation of the results of the study should not be over-generalised.
Institution: University of Cape Coast
Language: English
Subfield: Human Factors and Ergonomics
Field: Social Sciences
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W1983595308