Running head: PAY FOR PERFPRMANCE PLAN
Pay for performance plans
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PAY FOR PERFPRMANCE PLAN
Pay for performance plan is a structure of compensating employees that is prepared based on the
assessment of done regarding their performance. An effective plan is the one that is prepared with
the incorporation of employees. In case an organization does not involve its employees in the
preparation of this plan, the performance in that particular organization is deemed to be ineffective.
For instance, the effectiveness of the pay for performance plans is measured in various ways that
help an organization in the determination of its performance based on their payment structures
(Ballou, 2001). Such ways of measuring the effectiveness of the performance include equitable
and fair rewards, rewards driven by performance, flexibility, and choice that have competitive
benefits, competitive market salaries, and rewards due to performance in the market and leading
in the market.
Firstly, equitable and fair rewards help to measure the pay for performance through having
appropriate remunerations and wages to both male and female workers. All the workers in an
organization deserve to be treated equally and thus an active pay for performance is measured by
how an organization equally treat both female and male employees. Fairness is a significant factor
in an organization since it brings the aspect of equality amongst the employees which acts as a
motivation to them since they feel that they are at the same level as t...