Denver Public Schools' pay-for-performance program conflict and resolution

Human Resources

Organizational Behavior

Relevant Problem

In the case The Pay-For Performance Program among Denver Teachers hits a Roadblock, Robbins & Judge, (2007), the relevant problem is the dissention between the school district and the union about wage increases. The Denver Public schools had implemented a pay-for-performance plan three years prior. When the plan was first put into place it was thought to be a model for this type of plan around the country, but not so much anymore. The breakdown appears to come from an idealistic disagreement between the school district and the teachers union.

The district is proposing big increased in incentive pay, with the caveat that the largest increases going to early and midcareer teachers and those willing to take risks working in poor schools or taking jobs that few others want. The union agrees with the idea of large bonuses but also wants to see an across the board pay increase for all teachers. The biggest thing that the union opposes in the changes that would hold down wages of veteran teachers in order to make money available for bonuses for novice teachers. In the end the school board has to come up with a motivational pay incentive plan that will be agreeable to both the school board and the teachers union.

Options or Alternatives

One alternative that could be used would be to institute a base pay for everyone based on the tenure and then implement bonuses based on the following criteria. Bonuses could be given for those teachers who achieve good evaluations and/or further their education. This would be something that the teachers could do on personal level. The motivation for them would simple be that of personally increasing their own salaries. In addition to these bonuses, teachers would be eligible to receive increases based upon their affect on the students that they teach. This could be done in one of two ways.

Another alternative would be to go with something like what is already proposed. Currently teachers are eligible for raises for good evaluations and continuing their own education. Teachers get bonuses for guiding students to high schools on the Colorado achievement tests. They also get bonuses for meeting student accomplishment goals that have nothing to do with test scores. In this scenario teacher bonuses are tacked onto the base salary and are cumulative (Robbins & Judge, 2007).

Implementation Tactics

It is important when implementing a plan based on equity theory that one considers the Adams' Equity Theory factors when striving to improve an employee's job satisfaction and motivation level and what can be done to encourage higher levels of each. To do this, one should consider the balance or imbalance that presently exists between the employee's inputs and outputs. Inputs characteristically include: effort, loyalty, hard work, commitment, skill, ability, adaptability, flexibility, tolerance, determination, enthusiasm, trust in superiors, support of colleagues and personal sacrifice. Outputs normally include: financial rewards such as salary, benefits and perks, and intangibles that typically include: recognition, reputation, responsibility, sense of achievement, praise, stimulus, sense of advancement and job security (Adams' Equity Theory, 2011).

When implementing a solution to the school districts dilemma it would be necessary to reward the teachers for their amount of inputs. This would include effort, hard work and commitment. Those teachers that put forth the most effort in the area of inputs would be rewarded the most in outputs such as increased salary and benefits. This would be the best plan to have a pay for performance plan. Those that perform well will get rewarded the most.

Assessment Criteria for Success or Failure

In these days of budget cuts, classroom congestion, and obligatory high risk testing, teacher motivation is more and more difficult to maintain. A lot of teachers criticize the lack of power they have over their classroom preparation due to federally, state, or district commanded programs. Not only is their classroom time strictly proscribed, it is also frequently very intricate, with students being pulled out or sent in for enhancement or aptitude grouped mini classes. Unfortunately, the lack of successful teacher motivation is a major factor in knowledgeable teachers looking for work elsewhere (Cory, 2011).

Because of the fact that all of these de-motivation factors are present in the classroom on a daily basis, the last straw that drives teachers away is unbalance in the compensation system of the district. Teachers want to know that they are being rewarded for their hard work. They want to know that the harder they work with the kids that they teach the more reward that they are going to get from the school. Nothing de-motives a teacher quicker than not feeling that they are appreciated for the hard work that they do.

Teaching can be a very rewarding profession but can also be a much underappreciated one as well. This is why it is so significant to make sure that the teachers are shown the appreciation that they deserve. This does not have to be something that is done by way of salary and benefits, but this is a good place to start. If the teachers are happy with the contract that they have then they can spend more of their time concentrating on teaching the children and not worrying about contracts, wages and benefits. When teachers are not happy with their contracts they might eventually end up going on strike in hopes of gaining what they want in contract negotiations. In this scenario the ones who lose the most are the students. When teachers are all caught up in contract negations they can't possibly be able to concentrate on doing the best job that they can.