Research Assignment 2: Week 6

Pay-for-performance (PFP) continues to be a topic of debate. In America's public

school and health care systems, PFP is controversial issue. In some cases, such as

law enforcement and the military, there is a belief such a system would not work

at all.

Although the process has made inroads in business and is a means to help

determine promotions, pay, and retention, pay for performance has not been

consistently well received despite the successes experienced.

You have been asked by the organization's senior leadership to explore the

practicality of implementing a pay for performance program for your organization

(i.e., merit pay, variable pay, discretionary bonuses, and non-discretionary

bonuses) or one you are interested in working with. Before providing your

summary and recommendations, you will want to include the following points:

A brief background of the organization and industry.

Identify and discuss which, if not all, PFP plans you will be considering.

How the organization measure the effectiveness of the plan.

• Employees' perspective - advantages and disadvantages of PFP.

• Employer's perspective - advantages and disadvantages of PFP

• Include any additional information that will support your position and

recommendation; do not limit yourself to these points.

Note: If you determine that PFP would not work for the organization, please make

sure you the information you provide justifies your recommendation.