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On the other hand, merit pay systems may inspire unhealthy competition among coworkers or excessive peer pressure among teams of workers whose individual performance are measured together.
In the worst case scenario, merit pay can result in unscrupulous conduct and undermine the camaraderie in the work environment to a degree that actually affects overall output negatively instead of positively. Certain vocational environments are more likely to benefit from merit pay than others, but in all cases, effective management oversight is necessary to ensure the positive outcome envisioned by merit pay system proponents. (2005) Psychology and Life. 17th Edition.
References
Daft, R. (2005) Management 7th Edition. Mason: Thomson South Western.
Dillon, S. Long Reviled, Merit Pay Gains Among Teachers; the New York Times. (June 18, 2007). Retrieved August 2, 2008 at http://www.nytimes.com/2007/06/18/education/18pay.html?_r=1&pagewanted=2&oref=slogin
New York: Allyn & Bacon.
Gray, I. (1987) General and Industrial Management. (Revised from Fayol's Original) Belmont: David S. Lake Publishers. Lee, C. Bush Aims to Expand System of Merit Pay Unions Criticize Plan Based on DHS Model; the Washington Post, July 19, 2005. Retrieved August 2, 2008, at http://www.washingtonpost.com/wp-dyn/content/article/2005/07/18/AR2005071801476.html
Mills, C.W. (1953) White Collar: The American Middle Class. New York: Oxford University Press.
Murray, C. (2006) Acid Tests: No Child Left Behind is Beyond Uninformative. It Is Deceptive; the Wall Street Journal, July 25, 2006. Retrieved August 2, 2008, at http://www.opinionjournal.com/editorial/feature.html?id=110008701
Russell-Whalling, E. (2008) 50 Management Ideas You Really Need to Know. London: Quercus
References
Daft, R. (2005) Management 7th Edition. Mason: Thomson South Western.
Dillon, S. Long Reviled, Merit Pay Gains Among Teachers; the New York Times. (June 18, 2007). Retrieved August 2, 2008 at http://www.nytimes.com/2007/06/18/education/18pay.html?_r=1&pagewanted=2&oref=slogin
Gerrig, R, Zimbardo, P. (2005) Psychology and Life. 17th Edition.
New York: Allyn & Bacon.
Gray, I. (1987) General and Industrial Management. (Revised from Fayol's Original) Belmont: David S. Lake Publishers. Lee, C. Bush Aims to Expand System of Merit Pay Unions Criticize Plan Based on DHS Model; the Washington Post, July 19, 2005. Retrieved August 2, 2008, at http://www.washingtonpost.com/wp-dyn/content/article/2005/07/18/AR2005071801476.html
Murray, C. (2006) Acid Tests: No Child Left Behind is Beyond Uninformative. It Is Deceptive; the Wall Street Journal, July 25, 2006. Retrieved August 2, 2008, at http://www.opinionjournal.com/editorial/feature.html?id=110008701
Bonuses could also be earned by taking advanced courses in improving classroom techniques and by improving the scores their students achieved on state tests. These salary additions can add up to as much as $9,800 per year. In addition, teachers' pay can be docked if state testing demonstrates that their students have fallen too far below expectations (Philips & Tyre, 2007). The system has been so successful, that Denver has
Value of Merit-Based Plans, Incentive-Based Plans, and Profit Sharing Plans Merit-based payment plans, incentive-based payment plans, and company profit sharing plans all can be classified as organizational attempts to foster employee loyalty, increase employee productivity, and make the company a more attractive place to work. Their aim is to increase the motivation of employees to do quality work, above and beyond the expected minimum of the 'job description.' However, the
Pay for performance is becoming commonplace in the business world. Pay raises and bonuses are often based on how well one performs on the job or on achieving specific results. However, this is not the case in education. Pay levels are typically based on years of experience and levels of education rather than on teacher effectiveness. As concerns about the quality of the nation's educational systems frequently appear in the
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