Contents
Introduction…………………………………………………………………………………........3- Theories explaining relationship btn pay and performance…………………………………..3
- Equity Theory……………………………………………………………………………………4
- Performance Related Pay Theory………………………………………………………………5
- Efficiency Wage Theory…………………………………………………………………………6
- Empirical Analysis of Evidence…………………………………………………………………8
- Effectiveness of Performance for Pay Initiatives………………………………………………9
- References……………………………………………………………………………………….12
Description
This report is based on the following requirement -
You are hired by the Fair Work Commission Australia as a consultant to examine issues relating to pay and performance. Your task is to provide a report detailing findings from the economic literature on the effectiveness of pay for performance initiatives in generating improved outputs (or business outcomes), how performance should be evaluated and key ideas on establishing incentive pay and related evaluation frameworks for the organisation.
• You should aim to think critically and write originally.
• A key component of the assessment of the assignment will be based on your ability to explain your answers using the economic concepts and theory discussed in this unit. You will be rewarded for linking the theory with a real life example.
• You are required to research this topic. The use of journal article searches and newspaper article searches will assist you with the assignments.
