The impact of performance-related pay on employees’ performance: case studies of Omani public and private sector organisations
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AuthorsAl Rashdi, Mohammed
MetadataShow full item record
AbstractPerformance-related pay (PRP) has witnessed growing interest over the past two decades in Oman, alongside increasing attention to human resource management (HRM) practices. However, despite its continued adoption in various cultural contexts, gaps in its effectiveness remain the subject of widespread controversy. Consequently, this thesis is an attempt to examine the impact of PRP on various Omani public and private sector organisations in the form of four case studies. Three of these are on companies in the private sector which form the backbone of the Omani economy and one on a public sector organisation. The study gap lies in both the lack of studies on PRP in the public and private sectors in Oman, and the few numbers of studies in the pay literature in general in the region. The original contribution being made in this thesis lies in the attempt to bridge the research gap by viewing PRP systems through several lenses: from theoretical framework, managers, employees, contextual and documents (document analysis) perspectives. The different characteristics of the included organisations and the relevant findings can also be considered as an enhancement element of the originality and contribution of the thesis. However, with respect to the reservations of the participating organisations and to preserve their anonymity and confidentiality, they will be referred as Organisation A, B, C and D. Organisation A is a distinguished global organisation operating in Oman, while Organisation (B) is a local organisation working in the private sector. Organisation (C) is characterised by being a wholly-owned government organisation that operates in the private sector, and finally, Organisation (D) is a government entity operating in the civil service. Three research questions were formulated to provide a basis for the thesis structure. Accordingly, the mixed-method approach was adopted as a data collection strategy. The primary approach was face-to-face interviews with middle managers, while survey questionnaires were used with employees to measure their attitudes. In addition, document analysis was used to diversify the data sources and to increase confidence in the results. The thesis examination is based on a comparison of findings from multiple perspectives; for example, from those of middle managers, employees, document analysis, and the theoretical framework of the most important theories underlying PRP. These perspectives were then considered in the light of the literature review to determine the effectiveness of PRP in each organisation. The findings reveal that PRP in Organisations A and B was effective and achieved its goals. The reasons for this can be attributed to the methodological approach adopted in the implementation and operation of the PRP system, which were consistent with the strongest theories underlying the system, such as the agency theory, expectation theory and goal-setting theory, in addition to the systematic activation of the role of HRM and the effective development and preparation of middle managers. On the other hand, the findings related to Organisations C and D show that they do not appear to have achieved the sufficient objectives of PRP. Although the results were somewhat mixed, they revolved around the issues of fairness, favouritism, bureaucracy and the role of HRM.
PublisherUniversity of Wolverhampton
TypeThesis or dissertation
DescriptionA thesis submitted in partial fulfilment of the requirements of the University of Wolverhampton for the degree of Doctor of Philosophy.
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