Performance related pay and employees motivation

The study examines the implementation of performance-related pay in public services, highlighting issues of fairness and effectiveness. It argues that the success of incentive schemes depends on the organizational context and the objectivity of performance measurements. Findings from interviews and questionnaires reveal that many employees perceive the appraisal system as biased, view the financial rewards as insufficient, and believe they are already performing at an acceptable level. These perceptions contribute to the overall failure of such pay schemes to motivate staff.