When an employee is paid according to his productivity either instead of or along with his fixed remuneration, it is called Pay for Performance model. This technique is used to boost the morale of employees but has to be used heedfully. It's like walking on a tightrope if done properly can bring huge benefits to the company and if failed then employees will leave besides deteriorating the image of the company. Its implementation and evaluation both are complex, making the necessity to issue clear guidelines regarding the same.