Disadvantages of Performance-related Pay outweigh its Advantages Essay

Disadvantages of Performance-related Pay outweigh its Advantages - Essay Example Critics have analyzed performance-related pay differently, as many of the writers in various articles indicate that performance-related pay is a fruitful payment method due to which, there is more competition for positive working and people are more motivated towards effective task performance. On the other hand, there are also writers that have written articles negating the effectiveness of performance-related pay. According to the writers that are against the adoption of method of payment on the basis of basis, the payments are given to only those employees that are able to be close to the administration or management and that the pay is not given to them because of their effective working but on the basis of favouritism. Performance-related pay can have a positive as well as negative impact in various workplace environments. This paper discusses that performance related pay has many advantages but the disadvantages associated to it are overwhelming and devalue this mode of payment. The various forms of performance related pay are described after which, some authorial opinions are analyzed in terms of performance related pay and its effects. The advantages and disadvantages of performance related pay are analyzed and it is discussed that disadvantages outweigh advantages of performance related pay. In the end, the topic is concluded.