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The paper presents a framework designed to understand the variations in the PRP system for the managerial and operative level employees. Employee participation, delegation, transparency, and accountability are some of the key factors essential for the successful implementation of PRP. In addition, it is also important that employees have trust in the PRP system and are receptive to building a performance culture in the organization. Implementation of Performance-Related Pay (PRP) is a challenging task for any organization and organizations need to check their readiness for it before implementing PRP.
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