The conditions under which performance related pay motivates:an examination of a newly implemented system.

This dissertation explores the implementation of a newly designed performance related pay system and the possible issues arising from same. The type of research that was undertaken was action research as it was a live situation. In order to examine what issues or success was involved there were a sample number of staff members and manager/team leaders interviewed. Their perception and experience of the performance related system was vital as ultimately they would be the ones that would be taking participating in its operation. As a result of the primary research of semi-structured interviews, I found that although the performance related pay structure was in its infancy, employees were quite positive about it. The main issues arising from same involved communication of goals and feedback, motivation and perception of fairness. The secondary research results proved that the staff members appear to be motivated to achieve the 10% retention bonus. In summary, the main recommendations as a result of the aforementioned research and discussion are: - Improve communications, especially feedback - Visibility of other types of recognition and non monetary rewards - Ensure procedural and content justice is perceived - Consider "reversibility" rewards for the future