WORKPLACE ENVIRONMENT AND ITS IMPACT ON EMPLOYEE PERFORMANCE.DOC

Many managers and supervisors labor under the mistaken impression that the level of employee performance on the job is proportional to the size of the employee’s pay packet. Although this may be true in a minority of cases, numerous employee surveys have shown by and large this to be untrue. In fact, salary increases and bonuses for performance, in many instances, have a very limited short-term effect. The extra money soon comes to be regarded not as an incentive but as an "entitlement".