Question

1. Why might a firm not wish to see a worker stay on until they are 75 years old?
2. What advantages and what drawbacks can you suggest that a performance related pay scheme for university lecturers might contain?

Answer 1

A. In the firms we see they do not wish to have much older employees due to few reasons, Like elder people may not have the efficiency as equal to a younger employees, the work hours becomes limited to the senior citizens, they need more of breaks and health issues are also there, so all these things become an obstacle for maximum efficiency. One more important problem is that the elder employees demand higher salary in the name of experience. Another issue is that when an employee works for a firm for a longer time he/she gets a little influence on the business activities which is not healthy for the firms.

B. The performance related pay scheme for university lecturers  could be a good option because when the wages are rewarded upon the efficiency of the worker the worker tries to raise it to maximum limit, when the lecturers will be provided with the performance based pay they will try to make the lectures more interactive so that the students can rate it good this will increase the attentiveness of the class, The quality of the lectures will also be affected by this move.