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Performance Related Pay in Practice: A Critical Perspective1
Authors:Stephen Procter  Louise McArdle  John Hassard  Michael Rowlinson
Abstract:This paper discusses the use of performance related pay (PRP) as a means of control over the relationship between effort and reward. Taking a critical perspective, it describes how the implementation of PRP in a UK-based electronics company has been used as a device to remove trade union influence in wage-setting arrangements and to effect changes in employee behaviour. The opinions of supervisors, line managers, personnel managers and shop-floor staff are discussed and the implications for management control are assessed. The paper concludes that from management's perspective the PRP system appears to have been a success, for it has in some cases ‘commercialized’ the relationship between effort and reward, and has pre-empted expressions of employee resistance.
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