This report provides a framework for evaluating the use of performance contracts. It serves as a working guide for those who are considering or are committed to performance contracts with public or private organizations. The topics cover (1) the theoretical basis and rationale of performance contracting, (2) the procurement model and the request…

Critics argue against differentiated staffing on the bases that (1) limited compensation ranges lower teacher morale, (2) the loss of the services of trained teachers and the impersonality of the large group organization lower student incentive to achieve, and (3) salary savings are at the expense of the quality of the instructional program. Since…