The Importance Of The Pay For Performance Program For Improving Business Performance Essay

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This is a report finding detailing the significance of the pay for performance program in improving business performance. The report was requested by the Fair Work Commission (FWC), an Australian tribunal firm that solves employees work-related matters. This report begins by providing a history of the FWC, its objectives and functions. This will be followed by a review of theories that expound on worker’ motivation and pay incentives. Some of the concepts and theories that will be analysed include efficiency wage theory, labour supply and demand, Pay structure among others. Later, the theories will be applied businesses that have used the pay for performance structure to their benefit and benefited as a result. The idea is to illustrate the linkage between compensation and other work-related factors such as allowance and motivation.
The Fair Work Commission (FWC) was formed in 2009 (Fair Work Commission 2016). It was formed in conjunction with the Fair Work Act, a legislation whose mandate is to provide a balanced podium for concerted agreement among stakeholder, conducive work setting as well as better working relations. This Act was amended in 2012 to become the Fair Work Amendment Work of 2012. This led to the current name of the organization from it previous name Fair Work Australia (Fair Work Commission 2016).
The objectives of the FWC is to formulate laws and regulations that govern work
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