Free Essay

Merit Pay in School Systems

In:

Submitted By mlspenc
Words 3008
Pages 13
Teacher Merit Pay Systems No matter how smart the student is, the efforts and quality of the school they are in, and the efforts and quality of the teacher that is instructing them has a very large influence on how well they will produce in school. If these factors have such a large influence on children’s ability to perform on standardized and non-standardized tests, both teachers and schools should be properly devoted to the children. This is where the idea of merit pay systems comes in. Merit pay systems reward the teachers with salary raises and reward schools with increased funds when their students do well or significantly improve. This process is made to encourage teachers to bring out the best in their students, and when they are properly influenced, it would seem that good results would be produced. The problem with merit pay systems in today’s schools, is that no one has found a “one size fits all” model for a merit pay system. Some systems have had success in some regions, while similar systems have failed in other regions. Merit systems have not worked in the past as well as they should have, this research paper will identify the failed programs, the problems behind those failed programs, the correct way to execute a merit pay system, and what the intended results can be if merit pay systems work to perfection.
One of the first merit pay systems came about when British educators realized they needed to change the education system to yield better results. In his article “Book Reviews” by Peter Downes, he quoted the educators as wanting “to see far more emphasis placed not just on doing the work but on the quality of the work that is done”. Downes cites research to show that schools and teachers do make a difference to a pupil's performance and seeks to convince us that in order to improve standards nationally, we need to start paying teachers well. Focus is needed especially on those who ensure that children learn particularly effectively, and changing the culture so that standards are raised substantially. His main point is that the higher the standards of teachers, the higher quality of learning will be implemented, and more success will be had by students. He also argues that the best way to increase standards for teachers is through merit pay systems. Merit systems can work, but only because there have been multiple failed attempts in the past that have helped mold the correct model for success.
Some recent implementations of the merit pay programs have failed even though they had been thoroughly researched beforehand. The primary reasons for failing with these programs usually deal with the teacher’s unwillingness to participate. A lot of teachers have reacted negatively to merit pay systems because they deem them as an unwanted change. Obviously, future programs need to do a better job of helping the teachers understand the benefits for them and the students. In the article "Some Efforts on Merit Pay Scaled Back; But other states and districts moving forward with plans,” Nora Fleming discusses about how some schools cut their merit pay programs because of ineffectiveness. The schools that are dropping funds for the program are citing reasons such as lack of results and non-sufficient funds. Even though the “Pay-for-Performance” system was built correctly based on previous research, it ultimately failed to produce the needed results in the amount of time it had to be tested. So far, research has shown limited impact and has led them to scale back, abandon, or change their merit-pay programs, causing others to wonder what the future will hold for compensation systems that link teacher pay to student achievement. Other schools however, are beginning to fund programs for merit pay because of an increase in federal funds pushing the programs. Although some districts are scaling back their efforts on the merit pay system, continued research is still being made to search for the right methods to make the project successful. There are still ways to execute the programs that have not been attempted and can yield great results.
Teachers actually pose one of the biggest problems when it comes to implementing merit pay systems. A lot of teachers already have their own opinions about “Pay-for-Performance” systems that can easily affect their teaching ability and their willingness to comply with such a program. The biggest weakness with teachers is how they are treated and evaluated in a merit pay system. Kay Livingston’s and Jim McCall’s “Evaluation: Judgmental or Developmental?” shows the international comparison of the results that different education systems achieve. The European Commission has published indicators and benchmarks relating to the quality of school education. This type of external evaluation is often perceived by teachers as judgmental and controlling. When teachers feel threatened, their work will undoubtedly suffer. Teachers often like to be creative and teach with their own particular style and any external control can affect them negatively. The teachers of course are not at fault here, but the system can still cause them to slip in their teaching abilities. The teachers are at fault when they either refuse to teach in a merit pay system based on preconceived notions, or intentionally sabotage the results to move back toward the normal salary system. The teachers might do this because they are scared for their jobs or salaries, but the system of merit pay is designed for teachers to be rewarded only with raises to their base salaries, never penalties to their base salaries. This makes it truly a non-risk program that can yield great rewards for both teachers and students. This aspect of the “Pay-for-Performance” system is one that is often misconstrued and can easily lead to the systems failure.
In “Risk Aversion and Support for Merit Pay” written by Carl Nadler, he examines whether the structure of merit pay affects the types of teachers who support it. . The article shows a model of the relative utility teachers receive from merit pay versus the current fixed schedule of raises. It predicts that teachers with higher base salaries would be more likely to support a merit pay program that allows them to keep their current base salary and risk only future salary increases. It seems to be simple; teachers who are paid more in base salary are more open to try programs like merit pay systems, because they feel more secure. Consistent with the model’s predictions, the article finds that district’s with higher base salaries and a higher proportion of teachers with master’s degrees are more likely to approve merit pay. In contrast, teachers with lower base pay are less likely to support merit pay systems, and can end up being the root cause of a system failing. The teachers in a merit pay system are the lifeblood of the operation, and without their full cooperation, the project is doomed to fail from the beginning. In an interview with Leanette Spencer, the media Specialist of Ferguson Elementary School in Atlanta, Georgia, she too alluded to questions behind the execution of the merit pay system. She said that she could see the possible benefits, but also that she would never run the risk of implementing such a system until it had consistent success in other school districts. There are still plenty of questions about the effectiveness of Pay-for-Performance programs, coupled with a variety of criticisms about the benefits of merit pay are addressed in the article "The Delicate Task Of Developing An Attractive Merit Pay Plan For Teachers." written by Gary W. Ritter and Nathan C. Jensen. These questions and criticisms about merit pay programs have resulted in teachers viewing this type of incentive structure with much skepticism. More problems with the merit pay system arise when the system attempts to judge the teachers abilities as a teacher to help his/her students. There are many questions that pertain as to how it should be done, should it be based of the overall grades of the students? Or should it be based on the average improvement of each student? What about students that are already successful, how should they be judged? How are teachers supposed to help students if the school cannot afford decent materials, such as updated textbooks (Ritter and Jenson)? There are many problems with merit pay systems implemented in the past, and the ones that have failed cannot answer all those questions.
Another big problem is the standardized tests students must take to reflect their academic abilities. Just like how no one has come up with the perfect format for a merit pay system, no one has come up with the perfect standardized test. A student being judged on how they perform on these tests is not good if the tests are not a fair view of the student’s intelligence and abilities. Standardized tests simply cannot interpret a student’s growth and intelligence properly. Sarcastically portrayed in Eric Schwardron’s cartoon is a teacher showing up for a job interview and asking “Will this job be mainly true-and-false, multiple-choice, or essay questions?” This is a funny but true representation of standardized tests not being real world applicable for students, so why bother using them? This cartoon also portrays that teacher evaluations will become generalized and non-specific just like student evaluations when it comes to the merit pay system. It puts a joking tone on the fact that it will be tough to come up with a universal way to judge teacher and student performance in this system. As long as merit pay evaluations continue to be general and non-specific, the system will continue to fail.
With all the problems however, comes multiple solutions and continued research upon how to answer questions and execute a “Pay-for-Performance” system correctly. In contrast to external evaluations, internal school-based evaluations aim to be seen as a developmental process contributing to improve teacher and student learning, where ownership of the evaluation processes remains within the school. In “Evaluation: Judgmental or Developmental?” by Kay Livingston and Jim McCall, they examine the possible tensions and conflicts that may arise between these two types of evaluations. The work explores ways in which school’s internal self-evaluation processes may use the data in different ways to meet some of the external demands placed on them. Teachers are also much more open to critique from their own school districts that are familiar with their particular school, rather than following general orders from a state or national perspective. Also, teachers with masters degrees or higher base salaries are more secure in their jobs, and such are more likely to approve and support merit pay. So, a possible solution would be to either seek to employ more highly educated teachers or to raise the base salaries of teachers within this system. Teachers who are supportive of the program will yield the best results, so everything that can be done to increase their approval of the system is necessary. The ultimate goal is to improve student’s grades and test taking skills, and this is a way to help teachers get more on board to help that become plausible.
In James Caillier’s article "Paying Teachers According To Student Achievement: Questions Regarding Pay-For-Performance Models In Public Education," he outlines a formidable execution plan that is an obvious solution to the mistakes made by merit pay systems in the past. While other people continue to talk about the ultimate goals of merit pay, Cailler seeks to execute his plan to attain those goals. Caillier demonstrates in his article that Pay-for-Performance models were proposed as a way to find out how much students learned in schools and classrooms throughout the school year. What has obviously garnered much controversy regarding the Pay-for-Performance model is the attempt to link pay and tenure to performance. In his article, a framework is introduced that examines the likely success of using Pay-for-Performance assessments. His framework is incorporated in his merit pay model, referred to as “The Conditions that influence the success of pay-for-performance systems.” His diagram depicts 3 bubbles all being pointed to one large bubble with the words “Success of Pay-for-Performance System” written in it. The 3 smaller bubbles say “The People Producing the Output,” “The Kind of Output,” and “The Organizational Setting in Which the Output is Produced.” This diagram shows that you need quality teachers producing the output, you need those quality teachers to produce the correct type of output (as in, teach the students correctly), and you need a quality structural environment in which the teachers can work. All these factors add up to the “Success of Pay-for-Performance” system. Another model for success outlined in John W. Ritter and Nathan C. Jenson’s article presents five key lessons based on work with three Arkansas charter schools of how to best implement a merit pay program to avoid criticisms and common failures within the merit pay system. Basically, the five key lessons are that school administrators should generate staff support, they should create a bonus structure that is motivating to teachers, adopt assessments to help teachers track student performance, encourage collaboration, and define merit more broadly than improvements in student test scores. These five lessons are all great incentives for teachers tied to the merit pay program and it will encourage efficient effort with cooperation. These also end up helping answering questions generated by the cartoon “Teacher Evaluations vs Student Evaluations” by Eric Schawdron. The better the evaluation of students process is, the easier it is on the teachers and the better results will come from the merit system. The more teachers know about what they are dealing with in terms of student ability, the more they can do to help their students.
In Evan Sojourner’s article "When Does Teacher Incentive Pay Raise Student Achievement? Evidence From Minnesota's Q-Comp Program,” it shows that to prevent free riding by some teachers, this system may make individual or small team incentives preferable. The article is able to investigate whether incentives offered to the individual teacher are more or less productive than those offered at the school or district level as well. Sojourner’s findings suggest that if districts design plans locally, many will design plans that base rewards largely on informed evaluations. Finally, a solution to the failed merit pay systems of the past would be to reframe the teacher’s accountability in order to benefit not only the students, but also themselves. The basic principles that the article “Reframing Accountability as a Strategy to Save Public Education” by George Thomas covers are that it “focuses on engagement rather than compliance” and it “fosters trust rather than blame.” It declares many principles like those that it claims will only improve a Pay-for-Performance system. This article really focuses on the positive encouragement for students and faculty that need to go hand in hand with a merit pay system to help it function correctly. The positive reinforcement portrayed in his article can do nothing but secure the success of a merit pay system. Intertwining all these proven methods researched by various experts can help make the merit pay system reach its eventual goal of improving not only the life and abilities of students, but of teachers and school districts as well.
Merit pay systems have been attempted many times since their first modern implementation, but still have yet to yield consistent results. The problems have been identified like never before, and the solutions to those problems are ready to be implemented. Students, teachers and school districts are all set up to benefit from the proper execution of a merit pay system. With all the solutions provided by experts on this system, students are that much closer to doing better in school, teachers can be set up to reward their good teaching abilities, and schools will be better funded based on the success of these systems. While still not perfect, more and more kinks are getting worked out every day as new systems are being executed all around the country. The “Pay-for-Performance” system is no longer a good plan in theory, but it is ready to be a good plan in execution.
Work Cited
Caillier, James. "Paying Teachers According To Student Achievement: Questions Regarding Pay-For-Performance Models In Public Education." Clearing House 83.2 (2010): 58-61. Professional Development Collection. Web. 7 Mar. 2013.
Caillier, James. “The Conditions that influence the success of pay-for-performance systems.” Diagram. The Clearing House, 83.2 (2010): 61. 7 Mar. 2013.
Downes, Peter. "Book Reviews." Cambridge Journal Of Education 23.2 (1993): 226. Professional Development Collection. Web. 8 Mar. 2013.
Fleming, Nora. "Some Efforts on Merit Pay Scaled Back; But other states and districts moving forward with plans." Education Week 21 Sept. 2011: 1. Educators Reference Complete. Web. 28 Feb. 2013.
Livingston, Kay and McCall, Jim. “Evaluation: Judgmental or Developmental?” European Journal of Education. 28.2 (2005): 166-170. Web, 7 Mar. 2013.
Nadler, Carl. “Risk Aversion and Support for Merit Pay” Association for Education Finance and Policy. (2011): 75-78. Web, 10 Mar. 2013.
Ngoma, Sylvester. "Improving Teacher Effectiveness: An Examination Of A Pay For Performance Plan For Boosting Student Academic Achievement In Charlotte-Mecklenburg Schools." Online Submission (2011): ERIC. Web. 9 Mar. 2013.
Ritter, Gary W., and Nathan C. Jensen. "The Delicate Task Of Developing An Attractive Merit Pay Plan For Teachers." Phi Delta Kappan 91.8 (2010): 32-37. ERIC. Web. 9 Mar. 2013.
Schwadron, Eric. “Teacher Evaluations vs Student Evaluations.” Cartoon. Pdkintl.org May 2011. 9 Mar. 2013.
Sojourner, Evan. "When Does Teacher Incentive Pay Raise Student Achievement? Evidence From Minnesota's Q-Comp Program." Society For Research On Educational Effectiveness (2011): ERIC. Web. 8 Mar. 2013.
Spencer, Leanette. Personal Interview. 9 Mar. 2013.
Thompson, George. “Reframing Accountability as a Strategy to Save Public Education.” Professional Association of Georgia Educators. (2012): 27-29. Web, 10 Mar. 2013.

Similar Documents

Premium Essay

Module 7 Action Inquiry Essay Merit Pay

...Running head: ACTION INQUIRY RESEARCH PAPER- MERIT PAY Action Inquiry Research Paper- School Finance Jennifer Ponton Grand Canyon EDA 535 July 01, 2012 Action Inquiry Research Paper- School Finance Statement of the Problem This past spring thousands of teachers protested at the Louisiana State Capital to prevent Louisiana lawmakers from passing an educational reform bill proposed by Governor Bobby Jindall that would change the face of public education in Louisiana forever. Many superintendents and school personnel were relieved of their professional responsibilities on the days they protested hoping that they could sway the governor and the lawmakers from passing the bill. The bill was passed even without the support of many educational leaders and lawmakers in Louisiana. The laws passed by Louisiana lawmakers read like a conservative education reformer’s wish list. Teacher tenure in Louisiana after three years of employment was eliminated and replaced with teachers receiving a “highly effective rating for five out of six consecutive years of teaching. Back to back “ineffective rating will result in a teacher being fired. Seniority will no longer be a dominant factor in layoff decisions. In fact most decisions involving teacher employment and pay will now be the responsibility of both the principal and the superintendent of school. Before Governor Jindall’s reform plan it was the responsibility of the local school board. The reform proposed by the governor...

Words: 1475 - Pages: 6

Premium Essay

Merit Pay In Public Schools

...Merit pay, or pay-for-performance, is a bonus determined by an employee’s performance in a job (United States Department of Labor, 2016). Merit pay plans were developed as a part of the accountability movement sparked by the 1983 publication A Nation At Risk which discussed how American education was falling behind international countries such as Japan, and was solidified with the creation of No Child Left Behind in 2001, which created set standards in order to improve American public schools and the education students received. Administrators in schools use merit pay to incentivize teachers to remain in the profession and continue improving their skills through personal development programs. Pay is usually received based on students’ standardized...

Words: 1355 - Pages: 6

Free Essay

Business Report

...Measurement at the Edwards School of Business Table of Content Executive summary 3 1. Introduction 4 2. Discussion 5 2.1 Problems with performance measurement 5 2.2 Factors that cause problems 6 2.3 Prediction of other institutions 8 3. Conclusion 10 4. References 11 Executive summary This report is a case study from Edward School of Business to analyze the problems in performance measurement. The point-based merit system is introduced for the purpose of improving faculty members’ performance in academic research when keeping good performance in teaching and motoring students. The reports will first give a general background of Edwards School of Business and the merit system. It then presents three specific problems that the school encounters, namely faculty members focusing too much on getting points rather than improving outputs, unfairness due to quantifying performance into points and confusions and distrust from faculty members. Besides, how these problems generate is discussed and prediction of results in other organizations is discussed. Introduction Edwards School of Business is the second largest college of The University of Saskatchewan, enrolling about 2,000 students every year. It is now undergoing institutional transformation to enhance academic research, the student experience and faculty engagement. To support the transformation, a new human resource strategy, the merit system, is made to set standards of performance measuring. It is a point-based system where rewards of...

Words: 2431 - Pages: 10

Premium Essay

Compensation and Benefit

...Institution: Performance pay also called merit pay can be defined as a system that remunerates its employees in relation to an assessment of individual performance and how well one works. Such systems basically are meant to align employees’ individual effort to the goals and objectives of the organization. Hence it is a reward to individual employees whose tasks have been considered to be above the set standards of an organization or above average. In cases and situations where the output produced or sales produced by an employee are hard or difficult to be empirically determined, performance pay is most applicable; for examples in the teaching profession. In cases of performance payment, individual performance is usually reviewed regularly through a process called performance appraisal. Performance appraisal helps in establishing and identifying if the set objectives and standards are in line with the performance results. Generally, performance pay is usually rewarded on basis of performance results rather than on the time worked, (Council, 2011). Performance pay for teachers has been quite a subject of contention in many places and especially in the USA. Performance pay is meant to compensate teachers based on a set of performance standard and does not consider a teacher’s level of education or the level of experience gained. Hence, the more outstanding results a teacher produces from the students, the more the teacher is to be paid. Merit pay does not necessarily come...

Words: 1560 - Pages: 7

Premium Essay

Effects of Merit Pay on Job Atisfaction

...Effects of Merit Pay on Job Satisfaction I should start out by mentioning the fact that no employee at the school corporation that I work for has received a raise in the last five years. Recently the school corporation has decided to give everyone a merit raise based on the previous year’s performance evaluation instead of employee tenure. I have heard many employees carrying on conversations with other staff members about how upset they are that the raise is based on past performance instead of how long they have been employed at the school corporation. This had led me to want to discover how merit pay affects a teacher’s job satisfaction. I am not a teacher however, I am the schools registrar and I will also receive my raise based on my previous year’s performance evaluation. It has always been my past experience that typically raises are based on performance no matter where I have worked. Using Evidence-based Human Resource as presented by Rousseau and Barends (2011) I will attempt to present my findings on how merit pay affects a teacher’s job satisfaction. Summary of Rousseau and Barends (2011) Article The article by Rousseau and Barends (2011), presents us with an overview of the decision-making process called Evidence-based Human Resource (EBHR). “EBHR is a decision-making process combining critical thinking with use of the best available scientific evidence and business information” (Rousseau & Barends, 2011). Rousseau and Barends (2011), maintain that Human...

Words: 1084 - Pages: 5

Premium Essay

Union Seniority System

...UNION SENIORITY SYSTEMS Introduction Seniority systems have played a major role in the everyday aspect of American and International labor relations. And in enacting Title VII of the Civil Rights Act of 1964, Congress provided a special exemption for seniority systems. Seniority systems popularity the work places makes the interpretation of the seniority exemption very important to both those who support seniority systems, Labor Unions, and those who support the broadest possible application of Title VII, Employers. The concept of seniority systems entails employment preferences based on an employee’s length of employment at a given employer. The basic concept is as the employee’s length of service increases so does their employment benefits and rights. There are two basic types of seniority systems – competitive and benefit seniority. Competitive seniority is used to determine an employee’s priority for job security, promotion, transfer, scheduling, and training opportunities. Benefit seniority involves the employee’s access to fringe benefits entitlements without regard to the status of other employees. Labor unions have been the strongest advocate for seniority systems, seeing three labor-oriented advantages: 1) employee’s have a degree of independence from employers in the areas of laid off and promotions, 2) the union has a guide when it comes to defending jobs for employees, and 3) seniority systems gives a sense of security and predictability for employee’s...

Words: 3007 - Pages: 13

Free Essay

Teacher Union

...have been created for the public school system which takes place at local school districts; rules have been imposed to create ineffective forms of organization at schools. The rules that are currently in place by collective bargaining are also creating a big disconnection with many public schools, that being the interest of the children. The teachers union is one main role players that is behind the organized education system of the United States. So, why are the public schools systems in the United States failing? The answer can be complicated a one, one of the reasons why the public school system is broken is due to the collective bargaining through the teachers union. Collective bargaining has made great impact on student achievement, as a result, the teacher unions have often used their political power to block or weaken major education reform efforts, efforts that would expand school choice for many students and parents. School districts that engage in collective bargaining only promote job interest for teachers. The collective bargaining with teachers union does not promote an effective way for students to succeed in the classroom. Teachers are the most important people in children’s lives, their role is significant when it comes to educational achievement. In order, to have students succeed and reach academic success teachers help develop and implement a system that best fits the student; Unions play a big role when developing these systems or processes. Unions are there...

Words: 2302 - Pages: 10

Premium Essay

Case 9

...SCHOOL OF BUSINESS ADMINSITRATION BACHELOR OF BUSINESS ADMISNITRATION Semester: Fall 2015 – 2016 Course Title Performance & Compensation Course Code HURM402 TITLE OF Case Study APPRAISING PERFORMANCE AT PRECISION In submitting this work, I am confirming that it is all my own work, or the work of my group. I have correctly acknowledged the work of others by using references. Once my work is submitted to Turnitin, it becomes part of the database that subsequent works are checked against. Full Name of Student: Submission Date: Nov 27th, 2015 Assessment: CASE-2 Semester: Fall Academic Year: 2015 ------------------------------------------------- ------------------------------------------------- Date of Case-2 Handover Nov 20th, 2015 ------------------------------------------------- ------------------------------------------------- Time Period Start time: 02:00 PM End time: 03:00 PM ------------------------------------------------- ------------------------------------------------- Duration of Case-2 Handover 2 weeks (Due Date: 4th Dec, 2015) ------------------------------------------------- ------------------------------------------------- Number of Case-2 Handover Pages 7 pages (Including this cover sheet-1) ------------------------------------------------- Marking Scheme: Question | Score | Marks | CLO | Achieved | 1 | 7.5 | | 5 | □ Yes □ No | 2 | 7.5 |...

Words: 1112 - Pages: 5

Premium Essay

Can Merit Pay and Promotion Be a More Motivational Factor for Employees Than Just the Occasional Extrinsic Reward of Employee-of-the Month Recognition

...Can merit pay and promotion be a more motivational factor for employees than just the occasional extrinsic reward of employee-of-the month recognition? Week 7-Applied Research Paper Holly GM591 Leadership and Organizational Behavior Abstract I. Overview of Organization The Cleveland Clinic Foundation often referred to as CCF, is a well-known “non-profit academic medical center that integrates clinical and hospital with research and education” (CCF, 2011, p. 1). CCF is also considered as the leading world class care hospital that is located right here in Cleveland, Ohio. It comes as no surprise that they are consistently voted in as the best hospital, always ranking at the top of the charts with the number one spot in patient care and service in the world. They are also continuously recognized for their excellent service by their patients and organizations that recognize excellence in comparison with other hospitals. My familiarization and experience with the Clinic has enabled me to view and compare its reward systems from both as a volunteer, an employee’s perspective; and now as an observer. My first association with the Clinic began in 1999 as a student volunteer from the John Hay High School Thematics program; who currently still partners with CCF having almost been ten years later. I have not only put in time with volunteering throughout my high school years from 1999 through 2002 in various...

Words: 1571 - Pages: 7

Premium Essay

About Knowledge-Based and Skill-Based Pay

...efore exploring knowledge- and skill-based pay or performance pay as an alternative teacher compensation strategy, it must be clearly understood that this strategy is not "merit pay" under a new name. Individual performance-based pay systems, or merit pay, traditionally have evaluated teachers against one another for a fixed pool of funds. The aim has been to identify and reward the "best" teachers with additional pay, although the determination of "best" often was subjective and based on non-existent or vague criteria. In contrast, skill-based pay rewards teachers for attaining and being able to use knowledge and skills valued by the school, district or state, such as the ability to teach all students the mathematics promoted by the National Council of Teachers of Mathematics or the ability to diagnose individual student's learning needs and to provide instruction targeted at those needs. Skill attainment is judged against a predetermined, clear-cut standard. A skill-based pay system does not create competition among teachers because all have the opportunity to develop the skills. It also signals the type of skills the school wants its faculty to acquire and use. Skill-based pay systems, thus, focus individual skill development on the knowledge and skills necessary for the organization to accomplish its goals. A knowledge- and skill-based pay system can more directly relate a teacher's compensation to acquisition and demonstration of specific and skills than the current...

Words: 661 - Pages: 3

Premium Essay

All for One

...Team F | FastCat | Compensation and Rewards | | Spring 2011 | Intro FastCat’s priority is to increase revenue and the new pay structure will accomplish that goal in the long run. The new, cost containment, policy rewards, among other things, behavior aligned with FastCat’s objectives. This in turn will increase revenue, innovation, and customer satisfaction. This new system will need to be assessed over time to make improvements. Choosing a multiple job structure with a person-based pay will allow FastCat to utilize a hybrid structure. We have decided to lead with pay in the more critical jobs and match with the remainder jobs which include low skill or are entry level positions. We have assessed present salaries, created a merit pay plan, and suggested a bonus structure and benefits package. Employee buy in is vital to this new structure and it is FastCat’s responsibility to keep the communication channels open. Strategy for Recognizing Performance Performance based pay plans are based on a number of dimensions. In light of the work done at FastCat, we have chosen criteria that allows for a better distribution of wages and implies sacrifice on everyone’s behalf. However, in the long run, most employees, and the organization will benefit from the new pay structure. Assess Present Salaries Changes for costs in the employee group did not directly translate for FastCat; there were several red and green circle employees. Benchmark jobs were able to alleviate...

Words: 1913 - Pages: 8

Premium Essay

Teacher Strike

...The impact of the 7 day Chicago Public School teacher strike is a complex problem for each stakeholder. City officials, principals, teachers, parents and children all voice their frustrations and positions regarding the teacher strike. The strike was positioned as Emanuel vs. Lewis, but Lewis was contending with a union that installed her in order to take a more active stance and Emanuel’s plan, at least from publicly, was similarly aggressive. Inevitably, Emanuel and Lewis would meet. Consensus is that the CTU won, but Lewis admits that the actual contractual gains are unsatisfactory to her and the union. CTU came through over two decades of insufficiently strong (for the membership's desires) leadership, and Lewis took over after a major power shift. The teachers union expect that in the course of a couple of years that the union would change its internal stance and that by electing a competent head achieve all its goals in an anti-union environment during a period of austerity, all while contending with a figure like Rahm Emanuel. CTU positioned itself for future battles, such as school closings, and fighting attempts of the mayor to eliminate unions, close to up 120 and open charter schools with non-unionized teachers. Delegates for the Chicago Teachers Union filed a 10 day strike notice on August 29, 2012 and the strike was official Monday, September 10, 2012. Now, one week after the new school year start the city experienced its first...

Words: 1426 - Pages: 6

Free Essay

A Look at Compensation Systems

...compensation systems, some advantages and disadvantages of compensation benefits, comparable worth, and some polices. The information will be used to further understand all topics discussed and addressed for management's purpose. KEYWORDS: Compensation systems, advantages and disadvantages of compensation systems, benefits, comparable worth, compensation policies INTRODUCTION This report is to review Compensation and all related information to better understand the advantages and disadvantages of different compensation systems. Compensation and or the benefits worker's get are a reflection of the organization's value of the worker’s worth, and to the position or the duties required to accomplish the job duties. Compensation could and should provide motivation for the worker or applicant to perform to the best of their abilities, not simply clock in and clock out. WHAT IS COMPENSATION The meaning of compensation is as followed, a fundamental component of employment and a critical issue for management and policies set in place. It traditionally refers to wages of employment, to include base pay or salary, bonus or incentives, benefits, and non-cash compensations. Organizations need to set and communicate clear principles by which workers are paid. In the least, they should ensure compensation policies adheres to employment standards and legislation. Some compensation elements governed by regulations are Minimum wage, holiday pay rates, overtime pay, payment methods...

Words: 2114 - Pages: 9

Premium Essay

Assignment 3

...The concept of pay performance is attractive to the public sector because its basis is rooted in the perception that superior performance should be acknowledged and rewarded. Its implementation is varied, consisting of individuals, work groups, or departments being evaluated and having financial incentives distributed as base pay increases, one-time bonuses, or a combination. “Merit pay” is a term typically associated with pay for performance where individual performance ratings are directly correlated to annual salary increases in hopes that the incentive with increase employee effort and productivity. However, the critical component that directly affects success with this pay structure is employee perception on how equitable and attainable the expectations are within the incentive plan. Employees form beliefs and take actions based on how satisfied they are with their jobs as well as an opinion about state agencies as places to work and pursue careers. If these employees feel that the performance appraisal systems are not fair, then they will not be motivated by the premise of linking their pay to incentives. Moreover, these same employees will eventually become disgruntle and work at less productive rates because they feel as though “politics” or favoritism determines the outcome of their evaluations not personal achievement. Many employees were attracted to public sector jobs because of they were perceived to be secure with good benefits. Now, public agencies are moving...

Words: 1302 - Pages: 6

Premium Essay

E-Compensation

...single point. But for a while, the technology had one major flaw: It required the installation of a software product on the desktop. Thin-client technology lets companies serve applications to graphical terminals in a manner similar to that used with legacy mainframe technology. Thin clients resemble today’s client/server systems but actually function as time-sharing clients on which applications are remotely displayed (Seltzer A. Mark, 2001). A client-server is beneficial because it can be controlled locally versus a web-based server has to be controlled through a provider. Web-based servers can only be accessed through internet based but a client-based server can be accessed by any local network. A client-based server is in full control whereas a web-based server is not in control of the software on hand. “Job evaluation creates an internal hierarchy of value. In the most common form of job evaluation, a set of factors is developed that reflects characteristics that add value to work in the specific organization (e.g., the education required). Each factor is weighed by importance, and scales are developed. Every job that will be in the base pay system is evaluated on the set of scales, and a point score is calculated (Kavanagh, Thite, Johnson, 2012).” From management’s perspective when utilizing e-Compensation tools in requires to job evaluation it is easier than having to...

Words: 2311 - Pages: 10