Who should be involved in developing Pay-For-Performance Plan and why?

Answer: As highlighted by Webb (2021), Pay-For-Performance Plans are employee rewards which is based on their performance or contribution to the organisations performance. The employees performance is rewarded monetarily either as an individual or as a part of the groups and the rewards is strictly based on performance and not the employees skills, experience or the worth of the job. The objective of this theory is to encourage employees to operate at their best potential so that the organization can achieve their goals and objectives according to Koss (2008). It is also aimed at motivating persons to join the organisation as well as retaining employees.

The Human Resource professionals along with upper management personnel and the employees are all involved in developing Pay-For-Performance Plans according to Webb (2021). Each manager of the organization must evaluate their departments and analyze the most contributing factors to meeting the organizations goals and objectives. They must then note what is considered most valuable and develop awards programs for individual contribution taking into consideration the organsiations position to implement the plan. The draft is then reviewed by the Human Resource Managers to determine if it is practical by using evaluation of standards.

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