Critically assess the argument that performance-related pay motivates staff and leads to higher levels of productivity in organizations

Individual Assignment (Word count: 2,000-2,500)

In addition, to the group presentation assignment, students have to complete successfully a written individual assignment, which should be 2,000-2,500 in length

The deadline for the individual assignment is Friday 11th December 2020 11.59pm

The assignment question is the following:

Critically assess the argument that performance-related pay motivates staff and leads to higher levels of productivity in organizations.


Lucifora, C. (2015) Performance-related pay and labor productivity. IZA World of Labor 2015: 152 doi: 10.15185/izawol.152 Claudio Lucifora performance-related-pay-and-labor-productivity.pdf

Beer, M. and Cannon M. D. (2004) Promise and Peril in Implementing Pay-for-Performance,  Human Resource Management 43: 3–48. Beer Promise and Peril in Implementing Pay for Performance.-1.pdf

Gerhart, B. (2017). Incentives and pay for performance in the workplace. In Advances in Motivation Science (Vol. 4, pp. 91-140). Elsevier. incentivesandpayforperformanceintheworkplaceinAdvancesinMotivationScienceprepublicationversion (1).pdf

Gerhart, B. and Fang M. (2015) Pay for (individual) performance: Issues, claims, evidence and the role of sorting effects, Human Resource Management Review 24: 41–52 gerhart pay and performance .pdf

Bryson, Forth, J. and Stokes L. (2017) How much performance pay is there in the public sector and what are its effects? Human Resource Management Journal, Vol 27: 4: 581-597 Bryson et al performance related pay.html

Marsden, D. (2015) Teachers and Performance Pay in 2014: First Results of a Survey CEP Discussion Paper No 1332 Marsden teachers and performance pay-1.pdf 

Peffer, J. (1998) Six dangerous myths about pay Harvard Business Review, 76:3:109-19. pfeffer-1.pdf

Perry, J. A., Engbers, T. A. and Jun S. Y. (2009) Back to the future? Performance-related pay, empirical research, and the perils of persistence, (Links to an external site.)  Public Administration Review, 69:1: 39-51 Perry-Engbers-and-Jun-Back-to-the-Future.pdf

Suff, P. Reilly, P. and Cox, A. (2009) Paying for Performance: New trends in performance-related pay, Institute of Employment Studies, Brighton IES paying for performance.pdf

Trevor J. and Brown W. (2014) The Limits on Pay as a Strategic Tool: Obstacles to Alignment in Non-Union Environments, British Journal of Industrial Relations 52:3: 553–578 Trevopr and Brown.pdf

Assessment Criteria

Assignments will be assessed according to the relevant parts of the conceptual marking system for Masters degree programmes as outlined in the student handbook. Any references which are cited must be included in a bibliography.

Also please note the following presentation guidelines for these assignments.

  1. All assignments must be word processed. Please use Times New Roman, Size 12, black typeface on white paper. Double line spacing should be used. Please insert page numbering.
  2. The first page of each assignment should contain your name, registration number, assignment title and word count.
  3. Students may be penalised for exceeding the word limit.
  4. Please use the Harvard referencing system. A bibliography/reference list must be provided.
  5. Late assignments which are not the subject of extenuating circumstances will be penalised 5% for every day late or part thereof. Where students are citing a medical reason for late submission it should be accompanied by a medical certificate. Except in extreme circumstances, extensions will not be permitted retrospectively.