1. AN EXAMINATION OF THE ROLE, DYNAMICS AND OUTCOMES OF PERFORMANCE-RELATED PAY (PRP) IN THE PUBLIC SECTOR IN THE UK: AN EMPLOYMENT RELATIONSHIP PERSPECTIVE Miral Metawie Kent Business School Dr. Mark Gilman Senior Lecturer in Industrial Relations/HRM

6. ORGANISATIONAL-PSYCHOLOGY Expectancy Theory Goal-setting Theory expected rewards Agency costs – direct effort Equity Theory Fairness PERFORMANCE Agency Theory ECONOMIC THEORY PRP: Theoretical justifications Motivation Effort

9. The Employment Relationship Framework

10. Method and Research Design Qualitative Approach: Case Study of Kent County Council (KCC) 3-stage data collection Stage One: Initial Fieldwork Informal Interviews Documentary Evidence Feedback Forums (Focus Groups) Stage Two: Explanatory Fieldwork Semi-Structured Interviews with Line-Managers Stage Three: Typicality and Descriptive Analysis Employees Survey

16. Conclusion The employment relationship provides a bridge between the economic theories of the firm and organisational behaviour theories. The political dimension provides a lens through which external factors which have affected employers’ and employees’ frontiers of control can be examined. An examination of task discretion indicates that PRP may contribute to higher performance through labour intensification An examination of the norms of reciprocity and negotiation of the zone of acceptance indicates that PRP may lead to a withdrawal in discretionary effort leading to lower quality PRP can cause a breach in the psychological contract

17. Suggestions and Questions