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Paradox of Performance Pay (Background (Component of Contemporary Civil…
Paradox of Performance Pay
Background
Component of Contemporary Civil Service Reform
Business scholars: may not be desirable, as easy to implement or as widely used as commonly believed
Public service: complex and deceptively difficult, both technically and politically
concept of merit today is associated with commercial values and corporate-style performance pay
REALLY SMALL SCOPE (this paper)
Practical experience
Officials are not required under the General Schedule to give raises for time-in-grade rather than for results
Research: although pay for performance repeatedly proves to be unworkable, government is still reluctant to abandon it
Some success stories, but isolated, temporary and/or constrained
Pay does matter, but difficult to link policies to desired results
Policy Findings
Preconditions
trust in management
valid job evluation system
accurate personnel appraisal
clear performance factors
consistent and meaningful funding
If factors exist
Focus on short term, expense of long
encourage mediocrity
reduce creativity/ risk taking
promote self interest / destroy teamwork
win-lose competition for merit
Politicize compensation system
encourage sycophancy (do as i say)
can see merit pay as punishment
Bonhet & Eaton
Production
one defined task that is measurable and attributed to one person's efforts
People
assumption that motivation is key to performance plans (work for cash)
Organization
Knowledge of org - clear goals
Suggestions
Intrinsic Motivators
Goal Setting and Feedback
For reform to work, organizational commitment, time for rehearsal and review, and stakeholder consensus on design, implementation, and cost is required.
Elements
supportive org culture
Fair minded-well trained supervisors
System of checks/balances
Ongoing pro eval
Rig performance appraisal
Money incentives could be used for gain sharing versus individual
Political Reality
Cultural icon: its the American Dream
sports— which are easily observed, measured, and rewarded: spill over effect
officials are generally reluctant to admit mistakes—especially when the reform that vowed to enhance efficiency proves to be inefficient
Really just a means of quick fix/control
Can have biases/discrimination