The application of systems of performance related remuneration in the UK food industry
This study investigates the relationship (or correlation) between the performance of employees and their remuneration in the United Kindgom (UK) food industry. Within the study, remuneration systems which involve a correlation between the performance of employees and their remuneration are referred to as Performance Related Remuneration (PRR). Since the early 1980's, the use of performance based remuneration within UK organisations has increased to a level never witnessed before. Such remuneration systems have generally been employed as part of a wider management strategy to improve employee and organisational performance. In the companies of the 1990's, it has become `normal' to find part of the total remuneration package tied to individual, group or organisational performance. There are many systems of PRR in use in the 1990's and these include various forms of merit pay, profit related pay, payment by results, commission, profit sharing and employee share ownership plans. This thesis is motivated by the increasing use of performance based remuneration systems and focuses on the use of such systems within one specific industry - the UK food industry. The aim of the thesis is to identify trends relating to the use of PRR within the industry and in particular examine the extent to which PRR is used, why such systems are used, the various systems in operation, and the way in which the various systems are implemented and managed. The first part of the thesis contains a substantive literature review which examines several important aspects of PRR. The remainder of the thesis is concerned with the data gathered on the use of PRR within the UK food industry.