Performance Related Pay and its Impact on Organizational development: A Study of Banking Sector of Pakistan
Preston University Kohat
Prince Mohamed bin Fahad University Al khobar KSA
Abasyn University Peshawar
The study deals with the impact of performance related pay (PRP) as part of an employee reward system on the development of an organization. This is a highly debated research topic in academia and corporate sector. This research work attempts to study PRP implementation among business development and professional staff of Allied Bank and Bank Alfalah, one of the leading Banking service companies in Pakistan, and a subsidiary of Ibrahim Leasing Limited and Abu Dhabi Group, one of the leading companies in the developing world and a multi-million-dollar conglomerates. The survey questionnaires and interviews are used to solicit the responses of business development (BD) and operation staff at different levels to different issues on PRP implementation and processes. The findings of the survey indicate that the business development and professional staff of Allied Bank Limited (ABL) and Bank Alfalah are satisfied and feel positively towards PRP and its implementation, and that they hold PRP to be the prime motivator for their performance improvement as is evident from the remarkable market performance of both Banks in Pakistan.
Keywords: Reward System, Performance-Related-Pay, Reward Management, Human Resource Management, Organizational Development