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 news, one of the solutions suggested has been a pay for performance system for teachers. Interestingly, these programs are often met with resistance from teachers and teachers' unions. This paper will examine the effectiveness of such programs and the disadvantages for employers and employees.
Pay for performance programs are designed to compensate teachers based on how well their students perform or on observed behaviors in the classrooms (Chait & Miller, 2009). One of the keys to the success of these programs…...
Prince, C.D., Schuermann, P.J., Guthrie, J.W., Witham, P.J., Milanowski, A.T., & Thorn, C.A. (2009, August). The other 69%: Fairly rewarding the performance of teachers of nontested subjects and grades. Retrieved from Center for Educator Compensation: http://cecr.ed.gov/guides/other69Percent.pdf
Plus most teachers saw the pay for performance system as inevitable, and therefore wanted to be involved from the start of the plan (Gratz, 2005).
The pilot faced many challenges. Not the least, the district was faced with the logistical challenge of linking the students in various databases to the teachers. The internal systems for tracking student progress by teacher simply didn't exist. In addition, non-academic staff members had to have appropriate standards devised, such as nurses (Gratz, 2005).
The Denver pilot program experienced the difficulties that were quite unexpected with the implementation of a pay for performance system. The one result that was expected, improved student performance, was interestingly not due to the financial incentives offered. Instead, it came because of the district's commitment to enhancing the entire teaching process. By doing this, they were able to not only boost test scores, but create more effective schools in the process.
elevant…...
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References
Brotherton, P. Meyners pays for performance. Journal of Accountancy, 196(1). Retrieved June 13, 2005, from Business Source Premier database.
Gratz, D.B. (Apr 2005). Lessons from Denver: The pay for performance pilot. Phi Delta Kappan, 86(8). Retrieved June 13, 2005, from ProQuest database.
Pay for performance say Kiwi workers. (Jun 2004). New Zealand Management, 51(5). Retrieved June 13, 2005, from Business Source Premier database.
Rishell, M. & Becker, W. (Nov 2004). Pay for performance: The CFO's stake. Strategic Finance, 86(5). Retrieved June 13, 2005, from Business Source Premier database.
The system must measure true performance in a way that minimizes random variation, as well as undesired and unintended consequences. It must align performance with ultimate outcomes and monitor performance to discourage cheating" (p. 88). In fact, Lavy suggests that any initial incentive pay program implementation will likely be flawed in some ways, but gradual progress in achieving a viable program is possible if the foregoing considerations are taken into account.
Assuming that organizations can successfully implement and administer such a pay-for-performance program, though, the returns on investment can be worth the effort required - but only if everyone involved "gets on board" with the approach. According to Fiorito, Bozeman, Young and Meurs (2007), "Employees should view incentive pay as a form of support and show increased commitment in return. Despite well-known problems with incentive systems, this basic idea suggests that workers will be more committed in firms where performance…...
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References
Bayley, C. (2006). Pay for performance: The next best thing. The Hastings Center Report, 36(1), 1.
Fiorito, J., Bozeman, D.P., Young, a. & Meurs, J.A. (2007). Organizational commitment, human resource practices and organizational characteristics. Journal of Managerial Issues 19(2), 186-187.
Gratz, D.G. (2005). Lessons from Denver: The pay for performance pilot. Phi Delta Kappan, 86(8), 568.
Hyde, a.C. (2005). Pay for performance: How pay for performance has emerged as the new model for federal human resources pay practice and how executives and managers will be challenged to solve its complexities. The Public Manager, 34(1), 3-4.
, 2001).
Prior to 1930, thought, little attention was given to pay-for-performance in the public sector in the United States except for the blue-collar, manufacturing functions that were being primarily performed for the military. During this period in American history, government was viewed (and perhaps still is by many) as a competitive threat to private enterprise; as a result, there was not much public support for developing a highly motivated and effective workforce for civil service jobs (Shafritz, 2000). When strictly applied, in fact, the term "job" would seem to indicate that such merit systems are particularly inappropriate for the public sector that has a specific mandate; for instance, Black's Law Dictionary (1990) notes that a "job" is "A specific task or piece of work to be done for a set fee or compensation" (p. 835). According to Shafritz, pay-for-performance initiatives were first introduced into educational settings as part of the…...
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References
Bagley, C., Evans, C., Mangin, M. & Stewart, P.M. (2001). Teacher Quality: Issues and Research. Education, 122(1), 200.
Black's law dictionary. (1990). St. Paul, MN: West Publishing Company.
Downes, T.A. & Horowitz, J.L. (1995). An Analysis of the Effect of Chicago School Reform on Student Performance. Economic Perspectives, 19(3), 13.
Hardaway, R.M. (1995). America goes to school: Law, reform, and crisis in public education. Westport, CT: Praeger Publishers.
Pay fo Pefomance Systems
How could an oganization measue the effectiveness of thei pay-fo-pefomance plans?
In pinciple, oganizations could measue the effectiveness of thei pay-fo-pefomance plans by establishing objective citeia fo defining "effectiveness" and then measuing those citeia befoe and afte implementation of the plan and compaing those esults (Kline & Sulsky, 2009). Fo example, in a geneal business oganization, the citeia used to evaluate the effectiveness of pefomance plans might be individual and team poductivity, quality of poduction, eo ates, and both supeviso evaluations and self-epots of employee satisfaction (Kline & Sulsky, 2009).
Likewise, employee tunove and etention ates befoe and afte plan implementation could also pove useful. In addition to some of those same citeia, within an educational vocational envionment, some of the education-specific citeia that could be consideed might include student pefomance (both in couse gades and also on standadized tests) and anonymous student teache evaluations. Some of the advantages…...
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references properly in text in accordance with the 6th edition of the APA manual, chapters 6 & 7.
eimbursement and Pay-For-Performance
Pay-for-performance
This entails day-to-day programs designed to offer monetary incentives to health care providers and physicians to meet efficiency, quality and other defined targets. Pay-for-performance entails Agency for health care and quality, which defined as improved strategies in health care delivery, which majorly relies on the use of purchase power or the market power (Heywood, 2002). They referred as proper a financial incentive that heavily rewards service providers for their great achievements over a range of client objectives, such as, data submissions, payer's measure, safety of the patient, quality improvement, and the efficiency in service delivery (Brown, 2002).
Larger number of employees, proper health plans, and the purchase of health care services, which includes Medicaid and Medicare concurrently tries to seek conclusive evidence on what works best or poor in the Agency for health care and research quality resources on pay for performance (Heywood, 2002). However, the pay for performance…...
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References
Aaron, H.J., & Gelband, H. (2000).Extending Medicare reimbursement in clinical trials.
Washington, D.C.: National Academy Press.
Bragg, S.M. (2010). Cost reduction analysis tools and strategies. Hoboken, NJ: John Wiley & Sons.
Brown, M., & Heywood, J.S. (2002).Paying for performance: an international comparison.Armonk, N.Y.: M.E. Sharpe.
employment pay program identified as pay for performance have been part of the business landscape for many years (Bloom). The debate centers on a variety of issues but it also seems to be hobbled somewhat by a lack of clarity and agreement as to what pay for performance actually is. Some in the debate seem to speak of the program as a system of base salary increases that are linked to performance appraisals while others in the debate focus on incentives. For purposes of this discussion, pay for performance means a variable pay approach that is anchored to a measurement of performance, whether that's how many hours an attorney bills every month or a more subjective standard -- how well a manager fosters teamwork, for instance. Often, evaluations are based on best-to-worst forced ranking systems -- known to many employees as rank and yank -- which are thought to…...
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Works Cited
Bloom, Matt. (1999). The Performance Effects of Pay Dispersions on Individuals and Organizations. The Academy of Management Journal, 25-40.
Kose, M. Ayhan. (2008). Understanding the evolution of world business cycles. Journal of International Economics. 110-130.
Koss, Sharon K. (2008). Solving the Compensation Puzzle: Putting Together a Complete Pay and Performance System. Alexandria, VA: Society for Human Resource Management.
Lawler, Edward. (2008). Pay and Organizational Effectiveness: A Psychological View. London: McGraw-Hill.
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 completely eliminated their pay scale based solely on years of experience and academic degrees (Olson, 2007b).
Denver's program collaborated with the Denver Classroom Teachers Association, an NEA affiliate, to develop their plan. In addition, they've permitted teaching veterans to opt into the program, rather than force them to participate. This has helped with the acceptance of the program as teachers have not felt pressured into joining the ProComp Plan.
To help facilitate this decision, Denver's ProComp Plan has its own Internet website…...
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References
Boles, K. & Troen, V. (Nov/Dec 2007). How to improve professional practice. Principal, 87(2). Retrieved November 11, 2007, from Education Research Complete database.
Cavanagh, S. (24 Oct 2007). Employees sharing in Alaska's bonuses. Education Week, 27(9). Retrieved November 11, 2007, from MasterFILE Premier database.
A good mark for teacher merit pay. (27 Aug 2007). Christian Science Monitor, 99(190). Retrieved November 11, 2007, from Academic Search Premier database.
Honawar, V. (24 Oct 2007a). N.Y.C. Unveils merit-pay plan for teachers in high-need schools. Education Week, 27(9). Retrieved November 11, 2007, from Academic Search Premier database.
Pay for PerformanceIntroductionA pay-for-performance plan is a system of compensation that ties an employee's pay to their individual performance. In other words, it is a type of compensation structure that provides rewards to employees based on their individual performance. Typically, in such plans employees who meet or exceed predetermined benchmarks are eligible for bonuses, salary increases, or other incentives. While there are some challenges associated with pay-for-performance plans, such as the potential for discrimination and the need for clear objectives, these plans can be a helpful tool for motivating and retaining employees. This paper will describe how to measure the effectiveness of such plans as well as the advantages and disadvantages of pay-for-performance from the standpoint of both employees and employers.Measuring EffectivenessThere are a number of ways in which an organization could measure the effectiveness of its pay-for-performance plans. One approach would be to look at changes in employee productivity.…...
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References
Bucklin, B. R., Li, A., Rodriguez, M. M., Johnson, D. A., & Eagle, L. M. (2022). Pay-
for-performance: Behavior-based recommendations from research and practice. Journal of Organizational Behavior Management, 1-27.
Donev, D. (2022). Pay-for-performance and tools for quality assurance in health
In addition, managers should be measured in part on their ability to implement this new system. The employees will need to be educated about the new system. Managers will need to implement the means of measuring performance so that employees can understand how they are being measured in addition to why.
The third step will be to address the issue with the union. ith a designed system in hand, the company needs to make the new system a priority in negotiations with the union. This may require the company to break the union, as union resistance to the current gravy train of blanket raises may be high. If the union agrees to the plan, it must be implemented into the collective bargaining agreement.
The fourth step will be a review of the system. It cannot reasonably be expected that a new system will be totally flawless. A team consisting of management,…...
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Works Cited:
Haradkiewicz, J. & Elliot, a. (1998). The joint effects of target and purpose goals on intrinsic motivation: A mediational analysis. Personality and Social Psychology Bulletin. Vol. 24 (7) 675-689.
Priority: Protect Children from Abuse and Neglect and Connect Them to Caring Permanent Families.
A lot of money is mismanaged when it comes to investigating child abuse cases and placing abused or neglected children into foster care. Many times the families that take in these children do so to earn extra money from monthly foster care subsidies. They don't even spend that money on the betterment or maintenance of the child and instead spend it on themselves. This may not be the case for some foster parents, but it is often to true for many.
Furthermore, children placed in foster homes often only stay there for as little as a few weeks and have move from one foster care family to another. The constant placement of these children in different homes can have negative psychological effects not just on the children in their youth, but can carry out…...
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References
Kelly, G. (2000). Issues in foster care: policy practice and research. London: Jessica Kingsley.
A detailed description and origins of pay for performance
Pay-for-performance initiatives are designed to improve the efficiency, quality and general value of health care. Other terms used to refer to pay-for-performance include pay-for-quality, alternative payment, valued-based payment, among others. No matter the nomenclature, the main objective of pay-for-performance is to improve efficiency for optimal outcomes. (Rosenthal et al., 2005)
During the early 1990s, many consumers opted for managed care by paying some cash to the providers for a particular set of services. Such arrangement led to compromised quality and put some strain on patients.
Come 2000, the US was experiencing serious deficiency in health care quality. The Institute of Medicine wrote a detailed report on this. Thus pay-for-performance became a valid option for quality health care. (Vogenberg & Smart, 2018)
Who is affected by pay-for-performance?
A number of studies have been conducted to evaluate adherence to medication versus medication subsidies, but no valid conclusions have…...
Performance Management epliesJeffPublic servants are those who work for the government at the local, state, or federal level. As the Bible suggests, public service is a noble field, For even the Son of Man came not to be served but to serve, and to give his life as a ransom for many (Mark 10:45). Yet, just as the world has become increasingly de-Chrsitianized, there are many who see public service as something that needs to be reformed. Thus, in recent years, there has been a growing debate over whether or not public servants should be paid based on their performance. As you point out, Jeff, there are good and bad sides to this issue, and I would have to agree.The argument in favor of pay for performance is that it would provide an incentive for public servants to do their best work. Proponents also argue that it would help to…...
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ReferencesRobbins, T. (2020). Church Autonomy Conflicts. Church-state Relations: Tensions and Transitions.Warhola, J. W. (2019). Holy Rus’: The Rebirth of Orthodoxy in the New Russia, written by John P. Burgess. The Soviet and Post-Soviet Review, 46(1), 80-84.
PAY SYSEM plays a crucial role when managers are looking for ways to retain and motivate employees. Higher employee turnover rate can have a demoralizing impact on company's performance and is usually connected with an unfair pay system whereby some employees' feel that their hard work is not being rewarded adequately and thus choose to leave the firm for better opportunities.
Management literature and some actual examples reveal that the best pay system is the one that is based on employee performance. When pay system is tied to performance, we call it 'paying for performance'. his system ensures that effort, dedication and commitment of each and every employee is properly rewarded and that hard work doesn't go unnoticed. For this reason, it is important to develop a proper system of performance measurement, which helps in designing a better and performance-based pay system.
Measurement of performance and paying for the same in terms…...
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That is why "analysts are predicting that performance-based deals will become increasingly prevalent, with some estimates showing pay-for-performance rising to 30% of all online ad revenues by 2006" (Riolo, 2002)
However, another research-based analytical article by some of the best experts in the related field, read the following thereby highlighting both the negative and the positive recent development in the thought process regarding the pay for performance process:
REAL PAY FOR PERFORMANCE IS THE BIGGEST trend coming down the tracks, and it's going to hit the workforce like a freight train. In today's tight labor market, employers are paying what potential employees demand. But at the same time, they're finding that they've already realized the easy productivity gains from
57, why are metrics, i.e. The choice of what to measure, fair simply because one meets or exceeds a goal?
) The sales people seem to repeatedly confuse "metrics" with "goals" (i.e. "targets"). What do you infer from this? Is there anything you need to foolow up on here?
Tutor is mistaken; the Goals are the Metrics under
Consideration here.
"The Impact of Performance-elated Pay
on Motivation and Job Satisfaction of Sales Personnel
in the Computer Industry
with ecommendations to Improve Management Practices"
Case-study of SEMICO INC
Acknowledgments
Executive Summary
The search for better ways to motivate people in the workplace continues unabated, but the search is becoming increasingly complex as an increasing number of theorists weigh in on what factors tend to affect job performance and employee satisfaction. Although no consensus has been forthcoming, the theoretical work that has emerged concerning employee motivation can be divided into three basic perspectives, the first of which maintains that motivation comes from…...
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Reference
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Chapter 3: Literature Review
18
Motivation Theories
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