ERIC ED357416: Value-Added Merit Pay. | |
by ERIC | |
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The purpose of merit pay is to reward employees for their | |
accomplishments and motivate them to continue improving. | |
Critics of merit pay say the increased extrinsic | |
motivation that it prompts is more than offset by the | |
decrease in intrinsic motivation. Supporters of | |
performance-based pay claim several benefits of the | |
practice. This study addressed adding value to and | |
improving the process of appraising and rewarding | |
employees. Two major problems concern what is measured to | |
determine merit and how it is measured. Some critics | |
claim merit cannot be measured reliably. Problems with | |
what is measured to determine merit include influence | |
from outside forces, the accuracy of performance goals, | |
and an emphasis on performance rather than ability and | |
effort. Performance-appraisal and merit-pay practices | |
must be redesigned. There are three major redesign | |
elements that organizations must address. First, the | |
inherent limitations of accuracy in all appraisal systems | |
must be recognized and redesigned so they do not impose | |
finite distinctions. Second, a broader range of employee | |
contributions should be incorporated into the appraisal. | |
Third, appraisal and merit pay should be viewed as a | |
means of supporting the organization's overall strategy | |
and a means for encouraging continuous improvement. (JPT) | |
Date Published: 2014-10-30 08:30:41 | |
Identifier: ERIC_ED357416 | |
Item Size: 12866424 | |
Language: english | |
Media Type: texts | |
# Topics | |
ERIC Archive; Evaluation Methods; Inc... | |
# Collections | |
ericarchive | |
additional_collections | |
# Uploaded by | |
@chris85 | |
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