Posted: September 6th, 2015

Effectiveness of their pay-for-performance plans

Pay for Performance
HR Headline: Pay for Performance in Public Schools Remains Controversial

“Pay for Performance” has made inroads in business, but has remained a hard sell in public school systems. There are some successful examples where teacher pay has been linked to student test scores. In Minnesota some districts have stopped giving automatic raises for seniority and base 60% of all pay increases on performance. In Denver, unions and school districts designed an incentive program where teachers receive bonuses for student achievement and for earning national teaching certificates. However, some plans have not worked. For example, Cincinnati teachers voted against a merit pay proposal and Philadelphia teachers gave their bonus checks to charity rather than cashing them. It appears that having teachers involved in planning the incentive system is one key factor to success. The same can be said for all incentive plans – if employees don’t buy into them, they will not work.

Questions to Research:
1. How could an organization measure the effectiveness of their pay-for-performance plans?

2. From an employee’s perspective, what are the disadvantages of using a pay-for-performance plan?

3. From an employer’s perspective, what are the disadvantages of using a pay-for-performance plan?

Research Paper Instructions:
Please support your ideas, arguments, and opinions with independent research, include at least three (3) supporting references or sources (NOT Wikipedia, unknown, or anonymous sources), format your work in proper APA format, include a cover page, minimum of 3 FULL pages of written content, double space all work, include an abstract, reference section, and cite all listed references properly in text in accordance with the 6th edition of the APA manual, chapters 6 & 7.

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