In contrary, the following may help you decide to establish a pay – for – performance system:
§Money can motivate many employees to perform better.
§Top employees may increase their efforts if their contributions are rewarded accordingly.
§A good pay-for-performance plan may make your employees feel more involved in your company's goals.
§A pay-for-performance plan may eliminate surprises during performance evaluations.
§Employees can keep track of their performances and challenge themselves to improve.18

TABLE OF CONTENTS
INTRODUCTION – PLAN OF THE REPORT1
HISTORICAL BACKGROUND1
INDIVIDUAL PAY TECHNIQUES2
Ranges2
Merit pay3
Incentives4
Individual incentives4
Group incentives4
EVALUATION OF PAY-FOR-PERFORMANCE SYSTEMS5
Is money important?5
Should pay increases be based on performance?6
Are Pay Increases Related to Performance?6
NEGATIVE EVIDENCE6
PROS AND CONS OF PAYING FOR PERFORMANCE7
BIOGRAPHY9
TABLE OF CONTENTS10