PFP
serves both instrumental (monetary incentives) and symbolic
(recognition) motivational properties (Stajkovic and Luthans,
2001). It establishes the behavioral criteria by which rewards
are allocated and in doing so underpins the alignment of employee
behavior with organizational values and objectives (e.g., service
quality). Simply put, if an employee achieves his/her performance
objectives then he/she receives a pay increase. This visible
connection or link between pay and performance recognizes an
employee for a specific level of accomplishment, thereby fostering
favorable work attitudes, such as satisfaction and commitment
(Heneman et al., 1988).