Performance Related Pay In Operation: A Case Study From the Electronics Industry

Stephen Procter, Louise McArdle, Michael Rowlinson, Paul Forrester and John Hassard draw on the evidence of a longitudinal case study of a large electronics company to discuss the problems arising from the introduction and operation of a performance related pay system. These included resource constraints, difficulties in criteria selection, and subjectivity. Underlying these problems was the workforce's lack of confidence in the principle as well as the appication of the system. the authors conclude that companies face great difficulty in using such systems to effect cultural change: the necessary culture may already have to exist for such pay systems to work. Stephen Procter, Paul Forrester and John Hassard, respectively, are lecturers and Professor in the School of Management and Economics at the University of Keele, Louise McArdle is in the Department of Organisation Studies at the University of Central Lancashire, and Michael Rowlinson is in the Department of Sociology and Social Policy at the University of Southampton.