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nant feature of current reward strategies'. According to (Swabe, 1989: 17) as cited in Beardwell and Holden (2001, p. 523) performance related pay can be defined as: 'a system in which an individual's increase in salary is solely or mainly dependant on his/ her appraisal or merit rating'.

The critics of performance related pay (PRP) cited several advantages and disadvantages, Beardwell and Holden (2001 p. 523) states the possible reasons for introducing performance related pay (PRP): to increase the motivation of employees; to encourage certain behaviours; to help in recruitment and retention; to facilitate change in organisational culture; to encourage the internalisation of performance norms; to weaken trade union power; increased role of the line manager; greater financial control and 'value for money'; a moral justification; encouragement of flexibility.

Hague (1996) argues that performance related pay can demotivate staff rather than reward performance. Beardwell and Holden (2001, p. 526) states the possible problems with performance related pay (PRP): it is not a guaranteed motivator; it is difficult to produce realistic performance measures and as a result, ratings may be unfair, subjective and consistent; it places undue emphasis on individual performance which can be damaging to teamwork; it can produce poor quality performance as people concentrate on achieving quantitative targets; it leads to short-termism' in the pursuit of quick results to the detriment of longer term strategic goals; reinforcement of status, control and power differences; financial constraints; crowding out' intrinsic motivation.

The underlying theoretical basis for performance related pay is motivation theory. Content theories, such as those of Maslow (1943,1987) and Herzberg (1959), draw attention to pay as one of many sources of human need. The satisfaction of this need can contribute to motivation at work, but the relative importance of pay as a motivator will vary with individual circumstances. More specific to performance related pay are the process theories of equity (Adams, 1965) and the expectancy theory (Porter and Lawler, 1958; Lawler, 1973; Vroom, 1964) and it is useful to have an understanding of these. This will form the basis of the next section of the literature review, which will focus on the motivation of employees.

Motivation
As a consequence of competitive pressure, organisations encourage their employees to increase the ''added value' and also increase their performance beyond the acceptable standard, As a result, the study of employee behaviour and more particularly, motivation, remains a real managerial concern. Maund (1999, p. 87) defines motivation as ' the process by which an individual wants and chooses to engage in certain specified behaviours'. Cole (1995: 119) as cited in Cole (2000, p. 28) states 'Motivation is the term used to describe those processes, both instinctive and rational, by which people seek to satisfy the basic drives, perceived needs and personal goals, which trigger human behaviour'.

There are several theories that help us to identify specific factors that motivate people including the content or needs theory, the two-factor model and the cognitive theory. The underlying assumption is that individuals have needs that must be satisfied.

Motivational Concepts
Motivation as revealed by Abraham Maslow (1943) is