PRP for Manual Workers : Issues and Experience

Evidence indicates that the distribution of performance‐related pay (PRP) schemes among manual workers is limited and has increased at a much slower rate than with non‐manual workers. Case study evidence from firms with manual PRP schemes is used to investigate this. A successful PRP scheme for manual workers is likely to demand a very careful introduction. Successful operation of a manual PRP scheme is only likely if the organizational culture changes at the same time, or if it is part of a wider process of performance management.