Evaluating the Effectiveness of Performance Related Pay Preliminary Tasks Research and identify the advantages and disadvantages of performance related pay from both theoretical and practical perspectives. Identify a performance related pay scheme in your organisation or an organisation with which you are familiar and clearly identify its aims and objectives. Arrange a semi-structured interview with one or more managers responsible for the scheme and three employees rewarded by the scheme. Then ask both managers and employees the following questions. (adapted from Armstrong, 2002): How is good and poor performance measured and/or identified? Have the causes of good and poor performance been established? How is performance rewarded (both positive and negative)? Is the way in which performance is rewarded fair? Are there any inconsistencies in the way performance is rewarded? It is important that you probe and get as much information as possible from both managers and employees. On completion of the above tasks, provide a report of a maximum of 3000 words to your Chief Executive Officer that: Critically evaluates how the aims and objectives of the scheme are underpinned by the theoretical and practical perspectives and fit with the organisation’s aims and objectives. Critically evaluates the effectiveness of the scheme. Presents conclusions as to whether the scheme meets its objective and those of the organisation and provides recommendations for the management of performance related pay in the organisation.