The aim of this study was to identify barriers to performance-based pay in public organizations of Iran. This study is a qualitative study that is performed using grounded theory approach. Statistical population included faculty members of university and specialists in human resources that were selected by snowball method. The research was conducted based on reports of twelve countries on implementation of performance-based pay scheme, as one of the richest sources available to identify barriers to performance-based pay. 93 items were identified that during the Delphi process after removing 6 items with low CVR, 40 items, 24 components, 5 main aspects through integration of classification by Robbins (individual, group and organizational) and Mirzaee ( structure, content, environmental) were identified including: individual, group, organizational, content, and environmental. Based on grounded theory approach, data analysis was done in three stages of open coding, axial coding and selective coding; and underlying variables, effective factors, preventive factors, outcomes of payment based on performance were identified.
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