A study of pay for performance in China's non-public sector knowledge-intensive industries
Pay for performance (PFP) has been widely studies in the western context; however it has been paid very little attention with respective to China, especially in non-public sector knowledge-intensive industries. Research related to PFP has been strongly controversial. It is argued that the controversy surrounding PFP largely reflect that a well designed PFP programme must accompany effective implementation over time in order to run pay systems effectively. This thesis explores PFP design and implementation issues from a management perspective within the context of China focusing on four specific areas, namely; the importance of PFP in the current pay system; characteristics of PFP plans; implementation and functions of performance appraisal (PA) and line managers' involvement in PFP. A qualitative milti-case study apprach was applied to 12 non-public enterprises from investment, IT and pharmaceutical industries based in Shanghai consisting of more than 62 interviews with top managers, HR and line managers.