The inequitable distribution of principal effectiveness raises concern among policymakers. Principal sorting likely contributes to wider achievement and opportunity gaps between low- and high-need schools. As a possible policy tool, policymakers proposed performance-based compensation systems (PBCS). Tennessee was one of the states that supported…

This paper discusses the theoretical background of the pay-for-performance incentive as well as its implication for administrators in higher education institutions. Using pay data of a large state university system in the U.S., the paper finds that presidents in public research universities receive significantly higher pay than their counterparts…

The paper considers the extent to which the education sector has embraced performance management and performance-related pay. It contemplates the transfer and adaptation of performance management by the public sector as an audit mechanism for improving the performance, productivity, accountability and transparency of public services. The paper…

The need for more effective schools and the centrality of the teacher's role in any substantive school improvement plans are well known. Educators, political factions, and policymakers are engaged in a lively debate as to whether performance pay schemes or more substantial increments across the salary schedule are more likely to motivate teachers…

This article draws on research from outside of education to evaluate some common myths about performance pay and to consider future directions for designing and evaluating performance pay systems in K-12 education. The five common myths surrounding performance pay include: (1) Performance pay systems improve performance; (2) Performance pay…

In an effort to correct for perceived deficiencies in the No Child Left Behind Act, value-added models were proposed as a way to find out how much students learned in schools and classrooms throughout the school year. What has garnered much controversy regarding the value-added model, however, is the attempt to link pay and tenure to performance.…

When proposing performance pay for teachers, reformers first must answer three questions: What is the definition of teacher performance? What is the definition of student performance? and What are the goals of schooling? Reformers also need to examine the assumptions that guide their proposals and prepare to deal with the implementation issues…

President Obama's education agenda, which unhappily seems to be George W. Bush's program squared, contains two major features that will impact teacher pay and working conditions. The first is that charter schools are to be promoted aggressively. The second is an insistence on teacher merit pay. In this article, the author talks about teacher merit…

Although today's performance pay plans take many forms, the most commonly proposed version--in which teachers are rewarded on the basis of their students' standardized test scores--flows from flawed logic and several troublesome assumptions: that teachers lack motivation and supposedly need financial awards to give students what they need; that…

After earlier plans fell out of favor, pay for performance plans are becoming more popular. Factors that make those plans more viable include new data systems and ways to measure performance, increased attention on the importance of effective teaching, the need for efficiencies in salary schedules during tough economic conditions, and a change in…

Discusses performance-related pay and why the system was introduced, how it was negotiated, and how it has operated. The case study illustrated is in a British financial services company where the system was negotiated in 1986 and began in 1987. (JOW)

It has been argued that by varying the duration and dollar amount of salary increases, positive behavior can be induced. By using this concept properly, a college can expend the normal amount generally used in its salary budget and receive a greater return for the money than if across-the-board general increases are given. (MLW)

In 1984, a Salt Lake City school district began developing a merit pay program to cover all certified teachers. A committee of teachers designed an assessment method called AIM. Implementation involved developing measurement criteria, establishing evaluation procedures, providing feedback, creating a merit pay plan tied to career development, and…

Evidence from one high school using merit pay to reward student retention was compared to that from another with traditional compensation. Difference-in-differences analysis implied that merit pay increased retention but had unintended consequences: no effect on grade point average, reduced average daily attendance, and increased percentage of…

Assessed relationship between pay-for-performance perceptions and pay satisfaction among 104 hospital employees. Results indicated positive relationship between pay-for-performance perceptions and pay-raise satisfaction, pay-level satisfaction, and overall pay satisfaction even after effects of salary level, salary increases, performance ratings,…