Rewarding employee performance: line managers' values, beliefs and perspectives

This article explores managerial perceptions of the effectiveness and fairness of individual performance related pay schemes. It draws upon findings from a two part study of middle managers' interpretation and application of performance related pay processes in a variety of organisational contexts. The analysis reveals that middle managers all too often do not share the principles or the stated objectives of the schemes they are required to operationalise. It concludes that the importance of managerial values and beliefs about rewarding individual contribution has been an overlooked and underestimated dimension in the design and application of individual performance related pay schemes (IPRP) despite the significance of the manager 's role in their organisational effectiveness.