The Merit pay, the most complex provision of the Civil Service Reform Act of 1978. Merit pay provisions are based on a widely accepted perspective on motivation, people expect to receive a valued reward for high performance. The Merit pay is supposed to increase the effort and performance of employees as a result it will be an increase in the overall managerial performance. Managers can see more benefit by using this high performance program than the previous compensation system. On the other hand, there are other opinions at respect, some business people criticize the program saying that the performance of a complex job as whole is reduced to a simple and single measure of performance. They also argue that merit pay discourages teamwork. For example, people in a selling department that are evaluated on the number of contracts negotiated per year, the may not be interested in improving the quality of materials because that not help them as help people in manufacturing. Therefore, they are not going to worry about that kind of improvement even though that generate problems to the organization. The performance related pay also can generate some kind of hostility between employees during a tough economic period because multiple employees may compete for the attention of one customer. This situation can make employees appear to be performing to a lower standard and it does not measure really the actual performance.
Today one of the most frequently argument is if merit pay should be offered to public school teachers in the Uniter States. In June 2003 the National Education Association (NEA) President Reg Weaver said:
“Our members are open to alternatives, but we will always oppose quick fixes designed to weaken the voice of teachers and effectiveness of education employees in all jobs.” Marit Pay for teachers?
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