Performance Related Pay.
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Performance Related Pay Human resource management is defined as 'the part of the management process that specializes in the management of people in work organization. It emphasizes that employees are the primary resource for gaining sustainable competitive advantages, that human resources activities need to be integrated with the corporate strategy...' (Bratton & Gold, 1994, p5) Human resource management has become an important tool in today's business environment, with organizations looking forward to enhancing productivity through effective employee management. In recent years there has been an increased emphasis on how businesses use reward and appraisal schemes in order to achieve this. One area of a reward scheme is payment of employees and what method is used to achieve this. Performances related pay (henceforth PRP), often termed individual performance related pay, is defined as 'a system in which an individual's increase in salary is solely or mainly dependent on his/her appraisal or merit...


