GENERAL KNOWLEDGE

Detailed explanation-1: -It facilitates in suitable compensation design, rewarding employees based on the performance linkage. It supports employee motivation (which leads to increased performance), helping employees to receive their performance feedback, understanding their strengths and weaknesses.

Detailed explanation-2: -Another disadvantage of pay for performance is that employees are more likely to focus on reaching individual goals than setting goals together as a team. In some instances, employees may even put each other down to be the ones to reach their rewards.

Detailed explanation-3: -The aim of performance-related pay is to motivate employees to try harder, achieve more, perform better and be more effective, and to reward those who do. Employers often argue that pay systems linking salary to performance, work as an incentive for employees.

Detailed explanation-4: -This means that employees are likely to work harder-if the business makes more profit then each employee will gain more money. Performance-related pay is payment that is based on the performance of employees-the better an employee performs, the more they are paid.