Organizational readiness for performance related pay: focus on government of India employees

Abstract

In the recent zeitegist of competitiveness and drive for productivity enhancement, most organizations are experiencing challenges to revamp their existing systems. One such mechanism increasingly practised by organizations these days to enhance the performance of their employees is linking their pay to their performance. However, 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. Besides, readiness in terms of various systems in the organizations, it also includes the psychological preparedness of employees. The study provides a framework to analyse the organizational readiness in the case of Government of India employees to implement PRP systems.