The Importance of Performance Related Pay in Motivating Employees: A Study of Frontline Employees at Holiday Inn (2013)

Performance Related Pay Systems and Employee Motivation Dissertation – This research dissertation seeks to investigate the importance of performance related pay in motivating the employees at Holiday Inn, Sheffield. Performance related pay (PRP) is basically a financial reward given by the organisation to the outstanding employees after evaluating their performance at the workplace. In the present business world, most of the organisations have introduced the concept of PRP with an aim to motivate the employees and achieve the desired targets and organisational goals.

Over the last couple of years, there has been substantial growth in terms of using performance pay systems in the business organisations. In this highly competitive business environment due to globalisation, most of the organisations are forced hard to reassess their human resource related strategies and approaches. They are looking for best suitable strategy and approach for obtaining competitive advantage over the others.

There has been a sustainable amount of change in the structures and functions of the organisations in terms of performance and reward systems in order to cope with the changes in the global market. In order to achieve the competitive advantages and accelerate in the global markets, the organisations are relying on the performances of the employees which increase the importance of motivating the staff members.

This is one of the reasons that several organisations are introducing performance related pay system which is helpful in motivating the employees and achieving desired level of performance from the staff members. The researcher has used both primary and secondary data sources in order to undertake this research. The investigator has conducted a questionnaire survey with the employees of the hotel in order to identify their responses regarding the organisational reward and pay related policies. The questionnaire survey is also helpful in collecting the primary data and first hand information for the research purpose.

The researcher has also conducted interviews in order to collect the primary data. The secondary data has been collected through the academic journals, articles and books written on the topic of performance related pay schemes and reward management systems. The outcomes of the research show that performance related pay system is helpful in motivating the staff members at the workplace. This results in improved performance of the organisation and it is helpful for the management to achieve desired level of performance from the employees.

The research outcomes also show that PRP acts as a powerful motivator especially for the employees who are working in the front office department within the hotel. The research findings show that in the hotel industry, performance related pay system and monetary rewards are helpful in increasing the productivity level of the employees at the workplace. The conclusion of the research shows that organisations should use performance related pay systems because they are considered to be very effective in enhancing the motivation level of the high performing individuals in the modern business world. The objectives of this research are as follows;

  • To identify the impact of performance related pay system on the motivational level of the employees
  • To examine that how performance related pay system can be helpful in increasing employee loyalty with the firm and improving their retention level
  • To assess the role of performance based pay system in improving the overall performance of the organisation
  • 16,000 words – 70 pages in length
  • Excellent use of literature
  • Good in analysis of subject area
  • Well written throughout
  • Includes questionnaire
  • Ideal for HRM students

1 – Introduction
Research Focus
Rationale of Research
Research Background
The Objectives
Methods Selected for the Research

2 – Literature Review
Performance Related Pay
What is Performance Related pay?
Performance Related pay and Employee Motivation
Advantages of performance related pay
Disadvantages of performance related pay
performance related pay in Hotels
Impact of performance related Pay on Employee Loyalty
performance related Pay and organisational Productivity
Reward Management
What is Reward Management
Reward Management in Hotels
Motivation of Employees in Hotels
Retention of Employees in Hotels

3 – Research Methods
Research Methods
Qualitative and Quantitative Research
Research Approach
Data Collection Method
Secondary Data
Primary Data
Data Analysis

4 – Discussion of Findings
Survey Results
Interpretations of the findings
Link between Literature Review and Research Findings

5 – Conclusions and Recommendations
Recommendations for further research
Limitations of the Study
Self Evaluation


Appendix Section

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