Application Essay for Managing People Should firms embrace a Pay for Performance approach?
You are on the leadership team of a company and the latest business journal lists Pay for Performance as the best practice for companies.

What are the implications of performance based compensation from an academic research perspective?  Positive and negative? Consider discussions framed from :
Motivation / Performance theories
Fairness / Equity Theory
Recruitment / Retention theories

Ultimately your essay should indicate whether you will advocate to do this or not, and why your recommendations is appropriate for your specific firm.

Systematic approach to providing monetary value to employees in exchange for work performed
Base pay
Incentive / Bonus / Commission / Profit Sharing
Benefits (dental, insurance, medical, vacation, leaves, retirement, taxes, perks, travel / meal / housing allowance)

Compensation may achieve several organizational purposes:
Recruitment
Job performance
Retention