From an organizational perspective, economic incentives are often used as a tool to induce behaviors which align the goals of individuals with the organization. As a fundamental concept, varied types of merit pay have been utilized to keep organizational and individual motives in sync. This can be illustrated in contracts that base wages on commission. Many small businesses and individuals have their compensation tied to how effective their organization runs. However, when the ultimate goal is to enhance productivity, does merit pay produce the optimal environment that enables workers to achieve their potential? This essay will attempt to investigate that question through analyzing the motivational perceptions of skilled workers who were considering a merit pay policy at Oregon Health and Sciences University (OHSU)
