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Question:
In this era of global competition, organizations are increasingly introducing Performance Management System (PMS) to improve organizational effectiveness. Many organizations have gone so far as adopting performance-related pay (PRP) as a motivation to higher performance.
(i) Explain how PMS helps to improve organizational effectiveness.
(ii) Explain briefly the main conditions for the successful introduction of PRP?
(iii) State briefly the arguments for and against PRP.
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