The document discusses some of the issues with implementing a performance-based pay system, noting there are often no clear guidelines for how performance is determined, inadequate funding levels and distribution can cause problems, and it can degrade teamwork and focus more on individual performance rather than productivity. It uses an example of grades in school to illustrate the debate around whether pay or grades should reflect the work done or the product or learning produced.

2.  Pay based on “how well” someone works.
“High”
Performance
PAY “Low”
Performance

3.  James S. Bowman
 Florida State University
 Professor of Public Administration

5.  No Clear Guidelines
 How is Performance Determined?
 Gray Areas
 Margin of Error

6.  Inadequate Amount of Funding
 Distribution of Funding
 Who gets what?
 Why do they get it?

7. DEGREDATION OF
TEAMWORK

8.  Focus on Performance Rather Than Product
 Limits Productivity

9. PROBLEM: PROBLEM: PROBLEM: PROBLEM:
IMPLEMENTATION FUNDING TEAMWORK PRODUCTIVITY
• No Clear • Inadequate • Degrades • Focus on
Guidelines Funding Teamwork Performance Not
• Distribution of • Unhealthy Product
Funding Competition • Limits
Productivity

11.  Base Example of Performance Pay: Grades.
 PIL Product: Learning.
 What should grades reflect?
WORK -OR- PRODUCT
DONE PRODUCED
GRADE

12.  Select One “Top Performing” Individual OUTSIDE of
Your Group.
 Pay Them!

13.  What did you base their performance on?
 How do you feel about performance pay?
 How do you feel about a single group/individual
judging your performance and basing your pay upon
it?