Abstract
This essay shows why pay for performance scheme in public schools remain controversial. In this plan, teachers’ salaries and other bonuses increase when the students perform well. The paper shows how organizations measure the effectiveness of their pay for performance plans. An effective pay-for-performance scheme increases a teacher’s performance. It is done through a performance appraisal form. An effective pay-for-performance eventually leads to a high overall performance for the school. Disadvantages of using a pay-for-performance plan from an employee's perspective are also covered. Lack of motivation by low rewards is a key disadvantage. It may hinder solutions to the real problems. For instance, when there are set targets, and the teacher fails to meet them, the teacher may be seen as the problem. Disadvantages of using pay-for-performance plan from an employer's perspective are also shown. It may lead to conflict between teachers and students mainly because teachers want the student to performance well in their subjects.
Pay for performance scheme is where teachers’ salaries and other bonuses increase when the students perform well. However, this scheme has its share of challenges, such as how to measure performance considering performance may take different forms. Also, with the increase of cheating and cramming, students test scores cannot be wholly based on the teachers’ performance. Again, there are challenges as to whether this scheme affects students’ performance. The scheme was introduced back in the 60s; but has failed in most schools while succeeding in others (Gratz, 2009). Up to date, negotiations on this scheme still continue. Therefore, pay performance in public schools remains controversial.
How Organization Measure the Effectiveness of their Pay-For-Performance Plans
Pay-for-performance has been adopted by most public schools today where they pay teachers based on students’ performance. However, it can take many forms, such as increment in salary, short-term and long-term incentives, vocational benefits, insurance, and retirement. For this system to be effective, there should be clear criteria for measuring students’ performance. For example, not all performance should be based on test scores. Also, top management, such as school principals’ performance scheme should be different from other teachers at the lower levels (Gratz, 2009).
An effective pay-for-performance scheme increases a teacher’s performance. Usually, this is done through a performance appraisal form. At the beginning of the year, teachers set their target and how they plan to achieve those targets. In most public schools, teachers conduct the evaluation for each term or semester with supervision from the principals. It is to help teachers evaluate students’ performance against the set targets. The supervisors get to give a score for their juniors. Such appraisals are used to grade teachers’ performance (Gratz, 2009).
An effective pay-for-performance eventually leads to an high overall performance for the school. A teacher's performance will affect the school's performance. As pay-for-performance plan motivates teachers to perform well, they should be aligned with the school's short-term and long-term goals. A school stands to achieve short-term goals, such as good scores for the student and increase in number of students enrolling in the school. In the long-term, teachers’ performance contribute towards achieving a school’s vision on academic excellence and better student’s achievement (Chingos, 2002).
Disadvantages of Using a Pay-For-Performance Plan from an Employee's Perspective
A pay-for-performance plan that rewards teachers with a one-time bonus can be a disadvantage to teachers. It is a disadvantage because, in the long-term, it does not increase a teacher's salary (Chingos, 2002). Again, the one-time bonus accrues for only a certain period in which the students have performed well. Sometimes, students may perform well and other times they may not perform.
Lack of motivation by low rewards is also another disadvantage. Sometimes, the reward incentives are so low and; therefore, lack of motivation to perform well. In turn, it leads to lack of interest in teaching particular subjects or generally teaching.Pay-for-performance generates competition among teachers in different disciplines (Chingos, 2002). It is a disadvantage in that it creates rivalry and conflict among teachers. For instance, if one is struggling with a certain topic in mathematics, it becomes difficult to approach other teachers in the same discipline for guidance. Therefore, the struggling teacher will result in teaching poorly which in turn leads to students' poor performance.
The pay-for-performance plan may hinder solutions to the real problems. For instance, when there are set targets, and the teacher fails to meet them, the teacher may be seen as the problem while in fact the real issue is the students. Sometimes, it can be a lack of reading material for students, or poor learning environment, such as lack of enough learning materials. Therefore, such problems may unfairly grade the hard work and rightful pay of a teacher (kew et al., 2010).
Disadvantages of Using Pay-For-Performance Plan From An Employer's Perspective
Pay-for-performance only relate to individual performance. The scheme, therefore, promotes individualism rather than team work and collaboration in schools. A teacher will always be concerned with how their students perform other than being a team player. Sometimes, teachers are not willing to provide assistant to others as they try to maximize how students perform in their subjects (kew et al, 2010). Therefore, it leads to friction between teachers as they perceive each other as competitors.
The school also stands to lose out on aspects that do not attract rewards. Therefore, a school can lose out its impact and relevance on such areas. Example, students discipline, games and other school activities (Chingos, 2002). Sometimes, if teachers perceive that the reward is too low in some areas, there is a lack of motivation towards those areas. In turn, it promotes a high turn-over for students as they seek where their needs are better fulfilled.
Pay for performance may lead to conflict between teachers and students mainly because teachers want the student to performance well in their subjects (Chingos, 2002). The scheme motivates teachers to maximize on this reward by students performing well at the expense of quality education. It can cause conflicts because students seek quality education while teachers seek high scores in their subjects. Eventually, this leads to mistrust students and teachers.
Another disadvantage is that teachers can resist a new technology if the technology is seen as a threat to individual’s output. For instance, if the technology works best for all subjects, it can lead to resistance among employees (Chingos, 2002). Also, there is reduced innovation among teachers on how students can perform in all areas because it can compromise their chance of reward.
Setting up pay-for-performance scheme involves a lot of school’s resources such as manpower, time, and money. It is time-consuming to establish the performance standards and criteria to be used in evaluating teachers' performance. Without proper criteria, it can cause conflict between the education bodies, parents, school principals and teachers. Again, measuring standards such as appraisal forms are time-consuming and, therefore, a waste of schools resources (Kew et al., 2010).
References
Chingos, P. T. (2002). Paying for performance: A guide to compensation management. New York: Wiley.
Gratz, D. B. (2009). The peril and promise of performance pay: Making education compensation work. Lanham: Rowman & Littlefield Education.
Kew, J., Stredwick, J., & Chartered Institute of Personnel and Development. (2010). Human resource management in a business context. London: Chartered Institute of Personnel and Development.
