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.
eferences
Daft, . (2005) Management 7th Edition. Mason: Thomson South Western.
Dillon, S. Long eviled, Merit Pay Gains Among Teachers; the New York Times. (June 18, 2007). etrieved August 2, 2008 at http://www.nytimes.com/2007/06/18/education/18pay.html?_r=1&pagewanted=2&oref=slogin
Gerrig, , Zimbardo, P. (2005) Psychology and Life. 17th Edition.
New York: Allyn & Bacon.
Gray, I. (1987) General and Industrial Management. (evised from Fayol's Original) Belmont: David S. Lake Publishers.…...
mlaReferences
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.
This involves "changing the role of school personnel in such a way that the resulting organization is capable of adapting the program of a given school to meet the needs of the child" (Conte, 1972) (finally, someone remembers that schools are about students not teachers). If the "objective of any reform measure is to increase the potential of the learning environment and facilitate the learning process" then creative ideas that involve changing the configuration and responsibilities of staff members to target their strengths must also be considered -- and should probably be implemented before any conversation about offering teachers more pay to do their jobs.
Other alternatives to merit pay
Alternatives to a merit pay system as a means of stoking educational improvement are not easy to find. Tenure and years of teaching experience are the normal and expected measures used to determine a teacher's salary and it would not appear…...
mlaReferences
Conte, a. (1972). Merit pay, problems and alternatives. New Jersey State dept of education.
Cramer, Jerome. (1983). Yes -- merit pay can be a horror, but a few school systems have done it right. American School Board, 170: 28, 33-34.
Drevitch, G. (2006). Merit Pay, Good for Teachers? Scholastic.
Gross, S. (1993). The new variable pay programs: How some succeed, why some don't. Compensation and Benefits Review. 51-62.
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 plans operate on slightly different psychological principles and thus aim for slightly different motivational results.
Merit-based plans attempt to allocate pay to employees based on the employee's assessed merit to the company. If employees show the level of merit expected according to the plan, they are rewarded. By setting a certain concrete standard for employee performance, usually determined by human resource staff and assessed on a case-by-case basis through the use of regular performance reviews, employee quality is continually monitored. Additional…...
mlaWorks cited
"Profit Sharing." (2005) HR Guide. Retrieved 28 Sept 2005 at http://www.hr-guide.com/data/G444.htm
'Variable Payment Plans: People Management." (2005) The Vault. Retrieved 28 Sept 2005 at ch_id=402& article_id=13561596& cat_id=2091http://www.vault.com/nr/newsmain.jsp?nr_page=3& ;
This sentiment is echoed by a lot of supporters of merit pay who believe the way teachers are paid and how much they are paid must differ if districts are to attract a new cohort of teachers" (Drevitch, 2006).
Some of the biggest disputes against merit pay have all been disputed previously, in the 1980's. In the 1980's, global rivalry was undermining U.S. businesses and corporations, and in an attempt to stay viable, the merit pay system was put into place. The new system included awarding workers-based costumer service reviews, supervisor assessments and group achievements, things that may appear subjective or hard to gauge, the same condemnations thrown at merit system today. Barraged by disapproval and battered by the unions, the system nonetheless proved to be victorious. "After trial and error, half of all major American companies utilized similar merit pay incentives by the mid-1990s. The fact is, these incentive…...
mlaReferences
Brown, R. (2009). Why Pay-for-Performance Merits Your Attention. Rural Telecom, 28(5), 32-
38.
Colter, Carolee. (2003). Does Merit Pay Really Work? Retrieved from http://www.cooperativegrocer.coop/articles/2008-12-27/does-merit-pay-really-work
Devera, John. (2008). What is merit-based pay? Retrieved from http://www.helium.com/items/1140967-what-is-merit-based-pay
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…...
Merit System
The principle underlying the merit system is that recruitment and promotion should be based on ability rather than an affiliation. However, in both public and private organizations this has not always been the case. Instead, nepotism to obtain good jobs for members of one's family and rewards for friendship and political loyalty have been common. ut, as political pressures and human resources have come to influence decision making in organizations, the merit system has become the norm rather than the exception in recent years.
Most of the 19th century federal government roles were filled by what was referred to as the spoils system (Pfiffner). Staffing by presidential administrations rewarded political loyalty. At that time, government work was less complex than today and there was great concern that laws would be faithfully executed. Later, as political reform movements took hold, the Pendleton Act was passed in 1883 to replace the spoils…...
mlaBibliography
Merit system principles. Retrieved February 28, 2005 from Web site: http://www.afpc.randolph.af.mil/permiss/civilian/c_12a.htm
Pfiffner, J.P. Government legitimacy and the role of the civil service. Retrieved February 28, 2005 from Web site: http://mason.gmu.edu/~pubp502/pfiffner-readings-legitimacy.htm
In other fields, going the extra mile, investing extra weekend or evening time, or providing exemplary presentations and materials usually results in some form of bonus. In teaching, however, much of this is expected -- before and after school tutoring, evening performances, weekend events, out-of-pocket expenses for supplies and materials not covered in the budget (See: Johnson, 2004).
Thus, while still presenting the overall debate from the public administration, governmental, and even sociological (parental, community) views, the proposed study will focus on specific views and attitudes that teachers' hold towards a pay for performance concept. The study will examine current and proposed legislation adopting such a compensation package, as well as a qualitative evaluation of the efficacy of such programs within the 21st century educational climate. The study will quantitatively analyze the data based on demographic and psychographic indicators such as age, gender, ethnicity, teaching level, education level, length of…...
mlaREFERENCES
Special Ed Groups Try to Shape Pay-for-Performance Movement. (June 2010). Special
Education Report. 36 (2): 2.
Adams, S., Heywood, J., and Rothstein, R. (2009). Teachers, Performance Pay, and Accountability. EPI Books. Cited in:
http://www.epi.org/publications/entry/books-teachers_performance_pay_and_accountability/
compensation and traditional bases for pay.
Mary's Case
Background- Mary is what you could call a perfect employee. She holds the post of a supervisor in a construction company. She has been with the construction company for over 15 years. Mary is one of the few females in the male-dominated company and also the only female supervisor. All her male colleagues joined the company at least five years after her, but got promoted ahead of her. She is the only one among them with an advanced degree. Mary is in love with her job and has no complaints about the treatment she gets. One day, after a long and rough day at work, she decided to go out with some of her colleagues for dinner. While dining with her colleagues, some of her male colleagues got into a discussion about their salaries and other job openings that offer better paychecks. It…...
mlaReferences
(n.d.). DeGarmo -- Innovative talent acquisition and development solutions. Seniority vs. Performance-Based Pay Systems -- DeGarmo. Retrieved February 3, 2016, from http://www.degarmo.com/seniority-versus-performance-based-pay-systems
(n.d.). EEOC Home Page. Notice Concerning the Lilly Ledbetter Fair Pay Act of 2009. Retrieved February 3, 2016, from http://www.eeoc.gov/laws/statutes/epa_ledbetter.cfm
(2000). HR.com - The Human Resources Social Network. Importance of External Factors in Wage Determination - The Human Resources Social Network. Retrieved February 3, 2016, from http://www.hr.com/SITEFORUM?&t=/Default/gateway&i=1116423256281&application=story&active=no&ParentID=1119278025992&StoryID=1119642248468&xref=http%3A//www.bing.com/search%3Fq%3Dexternal+compensation+forces+%26form%3DPRUSEN%26pc%3DmsnHomeST%26mkt%3Den-us%26refig%3Ddd0c59e151db4075a5e5ef33af7da250%26pq%3Dexternal+compensation+forces+%26sc%3D1-29%26sp%3D-1%26qs%3Dn%26sk%3D%26cvid%3Ddd0c59e151db4075a5e5ef33af7da250
(2007). Justia U.S. Supreme Court Center. Ledbetter v. Goodyear Tire & Rubber Co: 550 U.S. 618 (2007): Justia U.S. Supreme Court Center. Retrieved February 3, 2016, from http://supreme.justia.com/cases/federal/us/550/618/
Often employees also receive an end-of-year lump sum bonus that is not included in their base pay (Employee Compensation, 2010).
Perkins and Balkin can choose to do any types of compensation plans that they want to. They can have plans for different areas within the organization. For example, everyone in the company could be on an hourly compensation plan while say the sales department could be on a pay for performance plan. The key is to make sure that everyone that is within a department is on the say type of plan so that everything is kept fair and ethical.
A high performance work system has many benefits for both employees and organizations. If employees feel that they are part of a high performance system then they will be happier employees and thus more productive. There are seven steps that a company must go through in order to establish a high…...
mlaReferences
Employee Compensation. (2010). Retrieved May 23, 2010, from Novelguide Web site:
http://www.novelguide.com/a/discover/ebf_0002_0001_0/ebf_0002_0001_0_00108.html
Fogleman, Sarah L. (2004). Creative Compensation. Retrieved May 23, 2010, from Web site:
http://www.cnr.berkeley.edu/ucce50/ag-labor/7article/article33.htm
H Pay Model
The author of this report has been asked to assess the chapter titles for the class text and then compare them to the pay model shown in figure two of the assignment. The aim of the assignment is to align each chapter title with the corresponding part of the pay model. There are sixteen chapters in total and four overall parts to the pay model, with the latter being alignment, competitiveness, contributors and management. The class text in question is Strategic Compensation by Martocchio. While some of the chapters in the book could technically be assigned to more than one part of the pay model, the fit between chapter and one particular part of the pay model is usually pretty clear.
Analysis
The first chapter in the book is called strategic compensation. One could really assign that to contributors, competitiveness or alignment in one form or another. However, the competitiveness…...
mlaReferences
Martocchio, J. (2015). Strategic compensation (8th ed.). New York, NY: Prentice Hall.
Skills-Based Pay
Lawler and Ledford (1987) argued twenty-six years ago that skill-based pay was going to become an increasingly popular concept in compensation management. Ledford and Heneman (2011) define skill-based pay as "a compensation system that rewards employees with additional pay in exchange for formal certification of the employee's mastery of skills, knowledge and/or competencies." The authors juxtapose this against a "job-based pay system," defined as a system where employees are entitled to receive their pay even if they are not proficient in their position.
There are two issues with the concept from the outset. The first is that employees should be proficient in their position, since they have been given that position. It makes little sense for an employee to remain in a position with no skills. Trotter (2013) notes that a person's skills and competencies contribute to them receiving the position, at least in any company where merit is taken…...
mlaReferences
Giancola, F. (2011). Skill-based pay: Fad or classic? Compensation Benefits Review. Vol. 43 (4) 220-226.
Lawler, Edward E., III, & Ledford, Gerald E., Jr. (1987). Skill-based pay: A concept that's catching on. Management Review, 76(2), 46-46. Retrieved May 30, 2013
Ledford, G. & Heneman, H. (2011). Skill-based pay. Society for Human Resource Management. Retrieved December 6, 2013 from http://www.siop.org/userfiles/image/SIOP_SHRM_Skill_Based_Pay.pdf
Trotter. R. (2013). Skills-based pay structures vs. job-based pay structures. Rory Trotter.com. Retrieved December 6, 2013 from http://rorytrotter.com/2013/04/10/skill-based-pay-structures-versus-job-based-pay-structures/
Merit Pay Grids
The author of this brief report has been asked to react to the statement "merit pay grids have the potential to undermine employee motivation." The author will use outside sources to agree or disagree with that statement. The author of this response will also include personal analysis about the question and perhaps a bit of personal experience as well. While "pay for performance" is deemed to be one of the best (if not the best) way of paying employees, it is not a fix-all and it can come with some downsides as money is not the main or sole motivator for a lot of employees.
The author of this report would generally agree with the statement being posed but the word "undermines" is perhaps not the best word. If anything, a merit-based system that is step-based is really the best way to go. Indeed, giving the same level of…...
mlaReferences
Peck, E. (2015). 3 Ways To Spend More Time With Your Family Without Quitting Your Job. The Huffington Post. Retrieved 7 October 2015, from http://www.huffingtonpost.com/2015/03/20/google-cfo-quit-spend-tim_n_6909526.html
Quast, L. (2013). Forbes Welcome. Forbes.com. Retrieved 7 October 2015, from http://www.forbes.com/sites/lisaquast/2013/01/21/how-to-make-performance-reviews-relevant/
Richman, T. (2010). Merit pay does not always motivate employees. AccountingWEB. Retrieved 7 October 2015, from http://www.accountingweb.com/practice/team/merit-pay-does-not-always-motivate-employees
Representative Rosa DeLauro first introduced an identical bill in the House of Representatives on the same day. These Congresswomen have introduced identical legislation in their respective chambers annually since 2005. The Act was most recently introduced on March 6, 2007. (Absoluteastronomy.com, n.d.)
The Congress did not ignore the EPA's economic consequences on the salaries and employment opportunities for both men and women. First, as an amendment of the FLSA, the EPA is part of the same legislative structure that houses the federal minimum wage laws. The EPA acts as a wage equalizer between men and women for equal jobs, and has the potential of acting as a price floor on the salaries of men or women for particular jobs. As such, the EPA had the potential of causing some of the same problems observed by minimum wage laws: unemployment, and additional discrimination. (Absoluteastronomy.com, n.d.)
Litigation
From the EEOC's initial enforcement of the…...
mlaBibliography
Absoluteastronomy.com. (n.d.). Equal Pay Act of 1963. Retrieved February 10, 2009, from Absolute Astronomy: http://www.absoluteastronomy.com/topics/Equal_Pay_Act_of_1963
Brunner, B. (n.d.). The Wage Gap. Retrieved February 10, 2009, from Infoplease:
http://www.infoplease.com/spot/equalpayact1.html
EEOC. (n.d.). Equal Pay and Discrimination. Retrieved February 10, 2009, from U.S. Equal
Goodyear which effectively denied employees the right to sue for wage discrimination after the passing of 180 days that "Justice Ruth ader Ginsberg was so incensed she read her scathing dissent aloud from the bench. She defended Lilly Ledbetter's right to sue her employer, Goodyear Tire & Rubber Co., Inc. For pay discrimination on the basis of sex, giving a not-so-gentle reminder of the realities of the American workplace." (Steiger, 2007) Specifically written by Justice Ginsburg is that as follows:
worker knows immediately if she is denied a promotion or transfer, if she is fired or refused employment. And promotions, transfers, hirings, and firings are generally public events, known to co-workers. When an employer makes a decision of such open and definitive character, an employee can immediately seek out an explanation and evaluate it for pretext. Compensation disparities, in contrast, are often hidden from sight." (Steiger, 2007)
Steiger reports that the…...
mlaBibliography
Abrams, Jim (2009) House Approves Bill to Fight Wage Discrimination. Yahoo News. 9 Jan 2009. Online available at http://news.yahoo.com/s/ap/20090109/ap_on_go_co/pay_equity
Barko, N. (2000. June 19). The Other Gender Gap. (Online) Available http://www.prospect.org/archives/V11-15/barko-n.html .
Bland, T.S. (1999, July). Equal Pay Enforcement Heats Up. HR Magazine, p. 138-145.
Bland, T.S., Nail, T.N., Knox, D.P. (2000, May). OFCCP, White House push comparable worth. HR News, p. 22-24.
A man's ethical behavior should be based effectually on sympathy, education and social ties, and needs. No religious basis is necessary."
Einstein, 1954 [emphasis supplied]
Alternate Suggested Application of Pojman's Thesis
From many ethical perspectives, the implications of Pojman's analysis with respect to punishment (i.e. "just deserts"), is more problematic than his suggestions about rewarding positive human behavior at the other end of the spectrum. In fact, there is no reason that Pojman's entire thesis need be discarded just to purify it of its most problematic implications. For example, the following description of a human community would resolve many of the most serious ethical criticisms of Pojman's approach while still allowing some of his more beneficial aspects of his merit-and-just deserts-based analysis: The envisioned society would de-emphasize penal law to the extent it is designed for the purpose of retributive punishment of wrongdoers. On the other hand, it would sanction punitive confinement…...
mlaReferences
Einstein, A. (1954). Ideas and Opinions. New York: Crown.
Pojman, L. "Merit: Why Do We Value It?" Journal of Social Philosophy, Vol. 30, No. 1;
(1999): 83-102.
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