Pay-for-performance and motivation Jimmy and Maria have worked for their company for several years now, to the satisfaction of all parties involved. Lately, however, it has been suggested that they be stimulated to up their performance.

– Jimmy is a senior administrative worker at a major transportation company. He frequently feels bored and takes long breaks. He is often at loggerheads with his colleagues, specifically with regards to his commitment and behaviour. In the past, Jimmy was proven to be susceptible to extra money as an incentive to work harder.

– Maria is a good sales representative, who is values highly by her team members.

Her recent sales figures, however, have been disappointing. This is limiting her team’s ability to achieve their desired targets. There do not appear to be any unusual circumstances in Maria’s situation. Does she need a bit of a pick-me-up?

a Would pay-for-performance be a viable tool in both situations? What are the conditions for using pay-for-performance?

b There are other ways of motivating Jimmy. What are they? Pick a strategy that falls under the heading of ‘motivating through appealing work’.

c The sales department uses targets and bonuses. Would you recommend Maria be valued individually for her performance, or would you opt for a team reward?

d Maria could also be motivated by employing the ‘setting challenging goals’ strategy.

Wat are the requirements for this strategy. Does it match Maria’s self-image?