... which determine organizational effectiveness. However, several vigorous debates on various aspects of reward system, in particular, debate concerning the extent to which employees either being motivated individually or in group by money. It is argued that trying pay to specific performance outcomes will both ensure that these are met while at the same time motivating employees in a more general sense, by providing them with desired rewards (Thorpe and Homan, 2000, p. 19). Particularly, a controversial debate has been long addressed on the justification of performance-related pay (PRP). In fact, there has been a long tradition of relating performance to pay in the blue-collar jobs in the UK it was only in the late 1970s that PRP started to replace fixed incremental systems in white-collar work (Thorpe & Homan, 2000, p. 302). To begin with, it's necessary to look at the advantages and disadvantages of performance-related pay. Some defining characteristics ...

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