Performance Based Pay: Is it a Functional Alternative in Government?

• Main Author: Templet, Jerry
• Format: Others
• Published: ScholarWorks@UNO 2006
• Subjects: compensation; business; government
• Online Access: http://scholarworks.uno.edu/td/428; http://scholarworks.uno.edu/cgi/viewcontent.cgi?article=1449&context=td

The use of performance-based, or incentive based, compensation plans is ubiquitous in the private sector. Private business operates under the belief that the use of incentives leads to increased performance from employees and higher profits for the companies. This study is centered on the function of those performance-based pay plans within the government. Its purpose is to determine if the use of such pay plans is effective, both for the efficiency of government organizations and the motivation of employees. Through the analysis of government documents and organizational plans, and interviews of human resource managers and employees, this study analyzes performance-based pay and its effectiveness in the public sector.