Problems and Usage of PFP for informal Workers in China

Bachelor Thesis , 2011 , 49 Pages , Grade: B

Business economics - Business Management, Corporate Governance

Pay for performance, is a motivational aspect in human resource management in that the hired workers receive increased benefits for their work output if the team they belong to, department or group reaches certain set targets by the organization they are affiliated with. According to Conyon and Murphy, (2000) and Bebchuk and Fried, (2006), pay depends on performance of an employee in relation to the threshold set as measurement.
Pay for performance has different categories and they include the following : Competence based payment rewards and training links directly with competency platforms, measured upon on the employee demonstrating specified qualifications like: identifying, analyzing and solving problems, taking responsibility and making critical decisions concerning job description, leadership qualities traits that are relevant to the job, customer satisfaction i.e. good interpersonal skills , dealing with conflicting views and means of resolving them or having certain qualifications. Profits resulting to payments of bonuses or being given shares according to organization performance in their set financial years; this is common and well embraced in the private sector, in which share options as a means of reward are offered to senior managers or top performers based upon organization criteria. Profit related pay has lost its value and appreciation from the time government stepped in and did away with tax exemption on Performance for Pay schemes.

The main criteria followed in PFP are: setting goals, results analysis and connecting the streams of accomplishments to rewards which is in form of payments. The objective and main purpose of pay for performance is to benchmark clear goals and materialize employees with the firm’s reasons for existence; to inspire workers through extending recognition and rewards to attainment of the set target rather than the duration taken by the employees in the firm; to applaud accomplishment thus note under performance in the employees; enhancing working together and integrity; to contribute in totality in increase of production or quality services; to come up with flexible and reliable pay systems, handling efficiently recruitment and retention technicalities in situations for certain employers, to enhance and uplift managers powers and cripple trade union capability of speaking out or expressing sentiments put forward by employees against the organization they work for or employer.

Table of Contents

• ABSTRACT
• CHAPTER 1: INTRODUCTION
• 1.1 Outline of Performance for Pay
• 1.2 Informal workers in China
• 1.3 Objectives of the Study
• 1.4 Conclusion
• CHAPTER TWO: LITERATURE REVIEW
• 2.1 Introductions
• 2.2 Theoretical Literature Review
• 2.3 Empirical literature review
• 2.3.1 Pay for Performance in China
• 2.3.2 Merits and Demerits of PFP
• 2.3.3 Problems in performance for Pay schemes
• 2.4 Statement of the Problem
• 2.5 Conclusion of chapter
• CHAPTER THREE: METHODOLOGY
• 3.1 Introduction
• 3.2 Research design
• 3.3 Target Population
• 3.4 Sample and Sampling Techniques
• 3.5 Data Collection and instruments
• 3.5.1 Validity
• 3.5.2 Reliability
• 3.6 Data Processing and Analysis
• CHAPTER FOUR: DATA ANALYSIS
• 4.1 Demographic Characterization of Respondents
• 4.1.1 Distribution by Gender
• 4.1.2 Distribution by Age
• 4.2 Level of education
• 4.3 The length of time the respondent had been working in the informal sector
• 4.4 Category of informal workers
• 4.5 Presence of performance form pay scheme at respondents work place
• 4.6 Categories of performance for pay scheme
• 4.7 Docket under which decisions on pay for performance are formulated
• 4.8 Steps followed in formulation of performance for pay schemes
• 4.9 Evaluation of employee's performance at respondent's work place
• 4.10 Factors influence pay for performance
• 4.11 Importance of pay for performance schemes
• 4.13 The possible drawbacks of pay for performance
• 4.14 Management commitment to pay for performance
• CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
• 5.1 Introduction
• 5.2 Summary of the Findings
• 5.3 Conclusion
• 5.4 Recommendations
• REFERENCES

Objectives and Key Themes

This study aims to identify and analyze the problems and usage of performance for pay (PFP) schemes in the informal sector of the Chinese economy. The study seeks to understand the impact of PFP on the livelihoods and well-being of informal workers in China and explore possible solutions to address the shortcomings of existing PFP schemes.

• The challenges and effectiveness of performance for pay schemes in the informal sector of China
• The impact of PFP schemes on the income, working conditions, and social welfare of informal workers
• The factors that influence the design and implementation of PFP schemes in the informal sector
• The benefits and drawbacks of PFP schemes for both employers and employees in the informal sector
• Possible solutions to improve the effectiveness and fairness of PFP schemes for informal workers

Chapter Summaries

Chapter 1: Introduction

This chapter provides an overview of performance for pay in the informal sector, outlining its relevance to human resource management. It also introduces the study's objectives and sets the stage for the research.

Chapter 2: Literature Review

This chapter presents a comprehensive review of existing literature on performance for pay schemes in China. It explores theoretical frameworks and empirical research findings related to PFP in the informal sector.

Chapter 3: Methodology

This chapter details the research methodology employed in the study, including the research design, target population, sampling techniques, data collection methods, and data analysis procedures.

Chapter 4: Data Analysis

This chapter presents the findings of the study, analyzing the demographic characteristics of the respondents and the prevalence and features of PFP schemes in their workplaces. It examines the factors influencing PFP implementation and the perceived benefits and drawbacks of these schemes.

Keywords

The study focuses on performance for pay, informal workers, China, human resource management, economic development, social welfare, income inequality, working conditions, and policy implications.

• College: University of Cambridge
• Grade: B
• Author: Dr Kelly Clarkson (Author)
• Publication Year: 2011
• Pages: 49
• Catalog Number: V213225
• ISBN (eBook): 9783656414261
• ISBN (Book): 9783656414988
• Language: English
• Tags: Performance for Pay