Linking performance-related pay to a Business School's mission and objectives

Helen E. Higson, Jane L. Filby

Research output: Contribution to journalArticlepeer-review


This paper first analyses the Performance Related Pay (PRP) schemes developed from 1992/3 to 2002/3 in a large Business School in England and then the School’s mission and strategic objectives in that period. The PRP schemes changed to include more specific performance indicators and these were increasingly linked to the objectives. The School’s resources allocated to PRP increased from £44,000 in 1992/93 to £355,000 in 2002/3 and from 1.08% in 1995/96 to 2.37% of the School’s income in 2002/3. As well as examining the changing strategic objectives and PRP schemes, the paper charts the development of the School’s reputation and resources and the role which staff motivation via PRP played at different stages. The paper concludes that the PRP scheme was at its most effective when it was clearly linked with the School’s strategic objectives, but that the relationship between objectives and motivation may be more complex than apparent from this study. Although the PRP scheme under consideration also applies to academic related staff, this paper concentrates on the effect on academic staff.
Original languageEnglish
Pages (from-to)33-45
Number of pages13
JournalInternational Journal of Management Education
Issue number2
Publication statusPublished - 2006

Bibliographical note

© Oxford Brookes University. This article was written by Helen Higson and Jane Filby at Aston University for the International Journal of Management Education and published by the Business, Management, Accountancy & Finance Subject Centre using funding from the Higher Education Academy.


  • performance related pay
  • PRP
  • strategic objectives
  • mission statements
  • motivation


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