Pay for performance schemes and workers' motivation

The thesis investigates the reward system as a crucial factor of Performance Management. Among the several compensation schemes, this study is focus on pay for performance one and its motivational effects in the workplace are analysed in depth. The question posed is: Does performance-related pay affect positively employee's motivation? In order to offer a complete answer, firstly a literature review is provided with articles in favour and in contrast to the proposition and secondly an empirical analysis is conducted. The analysis is based on the 6th European Working Conditions Survey of 2015 made by the European Foundation for the Improvement of Living and Working Conditions.