Is Pay for Performance Ethical?

Thompson, Richard E.
November 2005
Physician Executive;Nov/Dec2005, Vol. 31 Issue 6, p60
Academic Journal
The article comments on the pay for performance compensation systems in organizations. Pay for performance is purposely established to create inequity in pay between two individuals or groups working in the same area of an organization. In a pay-for-performance compensation system, there are two payment schedules. One is guaranteed basic pay given to everyone who dependably, but minimally, accomplishes a set of defined tasks. The other pay schedule is incentive pay. This extra money is given only to those who satisfy criteria presumed to identify performance that is in some way better than minimal.


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