Compensation plans in affecting employee motivation


Problem:

There is much debate over the role of compensation plans in affecting employee motivation. The vice president of operations wants to know your studied opinion on the matter and is glad to share hers.

Review the following article:

Why Performance Related Pay (PRP) Doesn't Work https://www.arrod.co.uk/archive/concept_PRP_doesnt_work.php

The VP of operations asks you the following questions:

* Does pay motivate employees? Why or why not?

* How could you measure the motivating effects of your organization's compensation programs?

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