Performance related pay and employees : a case study

Abstract

Pay for Performance Programmes are arguably one of the best tools to enhance organisational and employee performance. Playmobil Malta Ltd has been driving to develop an environment based on flexibility (in attitude, skill and time), trust, teamwork, initiative, continuous improvement and quality to be able to treat the 'customer as king'. A performance programme was felt to be needed in order to encourage improvement in both productivity and quality and which provided incentives in a fair manner. In this study, a review of the current situation with respect to the Pay for Performance Programme as it is being undertaken at Playmobil Malta Ltd, is conducted. The scope of this study is to identify issues that are pertaining to this exercise as it is being practised within this organisation. This dissertation attempts to identify through research and analysis ways as to how our pay for performance scheme could contribute more to enhance both employee and organisational performance. In the light of the findings from this study, the report will also provide information and recommendations that may be utilized by the organisation within present and future organisational structures and practices.