What are benefits but also the risks of using performance appraisal and/or individual performance-related pay to motivate employees? Discuss, drawing on research evidence, and consider what can be done to modify the risks and maximise the benefits

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Description
Key?terms,?theories,?themes:
?Terms??intrinsic/?extrinsic?motivation,?external?versus?internal?equity
?Theories/concepts???agency?theory,?goal?setting?theory,?expectancy?theory,?psychological?contract,?wage?effort
bargain
Themes
?Motivation?as?a?complex?issue??easier?to?demotivate?than?motivate?
?Work?tasks/performance?as?complex?issues??not?all?activities?are?measurable
?Equity?and?fairness?as?complex?issues??different?frames?of?reference?and?scope?for?bias

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