Question

a. Explain in a sentence or two why paying too much might be lead to poorer performance at a task.

b. Give two theoretical reasons why poorer performance when paid too much may not be a real phenomenon. Explain each reason.

Answer 1

a. If employees are paid too much then it might lead to poorer performance at work. This is because the employees will not find any opportunities for their advancement as they are already getting higher salary. They will also not try to take new and challenging work in order to increase their skills.

b. It also sometimes happens that paying too much may not be the real reason of poor performance. Employees are generally motivated to work when they are getting reasonable salary and they are also satisfied with the job. So apart from higher salary, other reasons for poor performance can be:

1. Lack of motivation from the superiors. If employees are not praised for their performance in the work then they are not motivated. Positive reinforcement plays a major role here. Awards, recognition are the factors which are important for better performance. So inspite of better payment, if employees are not motivated then it leads to poor performance

2. Similar nature of work If any employee is continuously doing similar type of job then he will lack his interest and it will ultimately results in poor performance. Thus they should be encouraged to take new challenges which will create enthusiasm and their skills will be improved and better performance of the employees will help the organisation in meeting their goals.