Merit Pay Research Articles

The Influence of Teacher Merit Pay on Student Performance

The Influence of Teacher Merit Pay on Student Performance

Why Merit Pay Fails: Comparison of Public and Private School Practices in Shenzhen, China

Purpose Accounts for failures of merit pay in educational settings were stagnated by the “political obstruction hypothesis,” which blamed teacher unions for impeding the merit pay schemes from proper function. It required stronger evidence from both public and private schools to refute this hypothesis. Design/Approach/Methods Accountability typology was conceptualized to uncover the power relations underpinning merit pay schemes, and teachers’ motivational status was described from the perspective of Self-Determination Theory (SDT) to analyze the corresponding consequences. One public school and three private schools were purposefully sampled, and data included principal interviews, teacher interviews, school documents, and relevant policy documents. Findings Our findings suggested an opposite conclusion to the “political obstruction hypothesis” that the more dependent on market, the more intense the conflict between external accountabilities and the nature of teaching. Thus, we supported the “nature of teaching hypothesis” that merit pay was inapplicable in educational settings due to the inherent contradictions between market accountability and professional accountability. Originality/Value Policymakers and school administrators had been misled by the neoliberal initiative of borrowing merit pay into educational settings to promote the quality of teaching. Our findings provided strong evidence to refute this hypothesis and to restore the appreciation of professional autonomy.

The Effects of Merit Pay Increases via Organization-Based Self-Esteem

Although merit pay increase is a pay-for-performance practice that organizations popularly use, its effectiveness has often been questioned. Prior studies have primarily explored merit pay increase outcomes by adopting the idea that merit pay is a form of compensation that makes employees see a conspicuous link between pay and performance. Diverting from this approach, we investigate merit pay increase’s effect on employee satisfaction and motivation using organization-based self-esteem as a key mechanism. We conducted two empirical studies that investigated the interactive indirect effect of merit pay increase and perceived pay dispersion on satisfaction and motivation via organization-based self-esteem. Study 1 analyzed 131 employee observations from two South Korean organizations. Results showed that merit pay positively affects satisfaction and motivation via organization-based self-esteem when perceived pay dispersion is low. In Study 2, 818 employee observations from six Finnish organizations were analyzed, and the findings were comparable to Study 1.

Causes and Consequences of Changing Organizational Pay Practices

Substantial scholarship explores how the employment relationship has changed since the 1970s, but most research focuses on large-scale causes, such as globalization and changing labor market institutions, and how they have reshaped the distribution of rewards across society. At the same, however, organizational pay practices themselves have developed in response to competitive forces, new management theories, and regulatory requirements. These changes in pay practices have distinctive effects on pay outcomes, including the wage distribution and gender inequality. This Presenter Symposium will explore changes in pay practices—including the shift from job evaluations to market-benchmarking, the rise of merit pay, and the adoption of pay transparency—and how these practices have reshaped pay outcomes across organizations. Changes in Pay Inequality Within Organizations Presenter: Peter Cappelli; U. of Pennsylvania Wage Stagnation and the Rise of Merit Pay, 1974-1991 Presenter: Nathan Wilmers; Massachusetts Institute of Technology The Equilibrium Effects of Pay Transparency in a Simple Labor Market Presenter: Zoe Cullen; - From the Job’s Worth to the Person’s Price: Developments in Pay-Setting Practices Since 1950 Presenter: Laura Adler; Harvard U.

Merit Pay for Schoolteachers in Italy, 2015–2016: A New Regime of Education Accountability?

In 2015, a new performance-related pay scheme was introduced for schoolteachers in Italy as part of education accountability policies aimed at improving their performance. Beginning in that year, all Italian state school principals were offered the opportunity to distribute wage bonuses to deserving teachers. During the first year of implementation, 82 percent of the schools appointed ad hoc internal committees and distributed the bonuses, on average to one teacher out of three. A large majority of schools distributed the funds internally, choosing their own criteria for defining what merit was and how much it should be prized. Results suggest that merit pay was mostly uncorrelated to students’ achievements, although more than one round of application would be required for more rigorous tests. However, the article argues that the 2015 reform aligned the Italian system of evaluation and assessment with other international accountability policies.

Influence Analysis Of Forced Distribution Rating Performance Appraisal And Merit Pay To Performance Of Directorate General Of Taxes’s Employees With Job Satisfaction As Intervening Variable At Blora Tax Service Office

This study aims to analyze and determine influence of forced distribution rating performance appraisal and merit pay toward performance of Directorate General of Taxes’s employees with job satisfaction as intervening variable at Blora Tax Service Office. Technique used for this study is census then data analyzed with SmartPLS. This research’s subjects are 80 low management employees at Blora Tax Service Office. The result of this research shows that forced distribution rating performance appraisal and merit pay don’t affect directly on employee’s performance. But forced distribution rating performance appraisal and merit pay have positive and significant effect on job satisfaction while job satisfaction has positive and significant effect on performance. Then indirectly through job satisfaction, forced distribution rating performance appraisal and merit pay have positive and significant effect to employee’s performance. This result shows that job satisfaction is a suitable intervening variable for this research. Based on this research, it is suggested for future managerial policy with goal to increase performance, job satisfaction should be one of deciding factors.

Examining Student Achievement, Teacher Effectiveness, and Merit Pay in a Rural School District

With more rigorous standards and testing at the forefront of educational reform across the nation, the rural school district in this study developed a strategic compensation plan with bonus pay based on student test scores as a teacher success incentive. A causal-comparative study was conducted to examine the effect of teacher merit pay levels on teacher effectiveness and student achievement within a rural school district. The study also considered if there is a difference among the teacher effectiveness levels and student achievement scores and certain moderating variables including content area, years of experience, gender, and education level. One-way ANOVA analysis determined student achievement scores were significantly lower when the teacher did not qualify for a bonus than at any and every other bonus level. Linear regression analyses found significant moderation effects for years of experience, education level, and content area, but not for teacher gender.

Wage Stagnation and the Rise of Merit Pay, 1974-1991

In the 1970s, US workers' wages stopped growing and steadily declined through the mid-1990s. During this time, employers experimented with employment practices, like merit pay, that seemed likely t...

Comparative Analysis on the Results of Teacher Capability Development Evaluation, Working Accomplishment Evaluation, and Teacher Merit Pay Evaluation

Comparative Analysis on the Results of Teacher Capability Development Evaluation, Working Accomplishment Evaluation, and Teacher Merit Pay Evaluation

Pay for (Individual) Performance: A Longitudinal Study of Merit Pay Plans and Firm Performance

Prior research on merit pay plans is mainly earmarked by cross-sectional designs focusing on individual-level outcomes. We posit that, collectively, this body of work has not made substantial inroa...

PERFORMANCE CONTRACTING AS A STRATEGY FOR IMPROVING TEACHERS’ EFFECTIVENESS: OPINION OF STAKEHOLDERS IN ABIA STATE, NIGERIA

In an effort to explore possible ways of improving teacher professional practice in Nigerian schools, this study sought to determine the opinion of teachers and parents of students on a proposal to introduce performance contracting in the Nigerian school system. Performance contracting is synonymous with pay-for-performance, performance-based-pay, merit-pay, and differentiated pay. The study was guided by 3 research questions and 2 hypotheses. 300 teachers and 300 parents purposively selected from literate ones, constituted the subjects for the study. The instrument for data collection was a 10 -item questionnaire constructed by the researcher and validated by competent and teachers’ lectures. The questionnaire requested respondents to indicate their preference for any of the 10 suggested compensation options they would want to be introduced into the Nigeria schools system. The reliability of the instrument was 0.95 using the Pearson Product Moment Correlation Coefficient. In addition to the questionnaire 2, free-response questions were posed to the respondents to determine their news on the pay-for-performance proposal and the reasons for views. Data were collected from the teachers and parents, and analyzed using means and standard deviations for the research questions and Z-test for the hypotheses. Results showed that all the teachers disagreed with the proposal to introduce all the 10 options while all parents wanted all the ten to be introduced. The results further showed that the more and less experienced teachers did not differ in their negative opinion about the proposal. Respondents expressed their opinions freely. Recommendations were made accordingly. Article visualizations:

Administration of the Merit Pay Systems Enhancing Work Outcomes

This study investigates the relationship between administration of merit pay systems and work outcomes. For data collection purposes, self-administered questionnaires were used on the administrative staff of a Malaysian public research university. The analysis of the Smart PLS path model exhibits three important outcomes: first, the implementation of communication and the assessment of performance are important factors that motivate employees to enhance work satisfaction. Second, the implementation of communication is not an important factor that motivates the employees to enhance organisational commitment . Third, the performance assessment is an important factor that motivates employees to enhance organisational commitment . The results in general, corroborate with previous literature, however, the empirical evidence on the effective communication within the organisation is not an important factor in determining organisational commitment . In addition, this paper provides a clear guidance for managers to administer merit pay system in gaining positive work outcomes. This paper goes on to discussion and implications and is thereafter concluded with conclusion therein.

Profiles of Merit Pay Provisions in Ohio School Districts

ABSTRACTA small number of districts in Ohio from a variety of locales have adopted merit pay provisions. Using Springer’s (2009) taxonomy of teacher compensation, we analyzed compensation provisions of these districts. We asked: What are the characteristics of these districts? What criteria are used to determine merit? Who is determining who receives merit pay? Our analysis reveals that there is wide variation in the design and specifics of these programs. Like Kolbe and Strunk (2012), who developed a typology of incentive programs, our examination of merit pay provisions in Ohio generated a typology of merit pay programs.

PROTOCOL: Merit Pay Programs for Improving Teacher Retention, Teacher Satisfaction, and Student Achievement in Primary and Secondary Education: A Systematic Review

PROTOCOL: Merit Pay Programs for Improving Teacher Retention, Teacher Satisfaction, and Student Achievement in Primary and Secondary Education: A Systematic Review

Cognition study of medical workers in Zhejiang province on tiered medical services and two-way referral medical system

Objective To learn influencing factors on tiered medical services and two-way referral in Zhejiang for feasibility recommendations of building the tiered medical services based on community first-visit practice. Methods Stratified sampling was made according to economic development levels, for qualitative interview of the 137 health administrators and medical workers from five cities and 9 counties in Zhejiang.The purpose of this effort is to learn the establishment of the first-visit in community and tiered medical services and their influencing factors. Results Poor regulation by medical insurance policies, medical competency, merit pay system and essential medicine system were influencing factors on community medical services. Conclusion The government should take the lead in building an information platform between large hospitals and primary healthcare institutions, guiding the establishment of tiered medical services and two-way referral system by means of better medical insurance policy and drug policies. Key words: Zhejiang province; Tiered medical services; Two-way referral system; Survey

Evaluating Form and Functionality of Pay‐for‐Performance Plans: The Relative Incentive and Sorting Effects of Merit Pay, Bonuses, and Long‐Term Incentives

Using two‐year longitudinal data from a large sample of US employees from a service‐related organization, the present study investigates the relative effects of three forms of pay‐for‐performance (PFP) plans on employees’ job performance (incentive effects) and voluntary turnover (sorting effects). The study differentiates between three forms of pay: merit pay, individual‐based bonuses, and long‐term incentives. By definition, these PFP plans have different structural elements that distinguish them from each other (i.e., pay plan form) and different characteristics (functionality), such as the degree to which pay and performance are linked and the size of the rewards, which can vary both within and across plan types. Our results provide evidence that merit raises have larger incentive and sorting effects than bonuses and long‐term incentives in multi‐PFP plan environments where the three PFP plans are operating simultaneously. Only merit pay has both incentive and sorting effects among the three PFP plans. The implications for the PFP‐related theory, as well as for the design and implementation of PFP plans, are discussed. © 2015 Wiley Periodicals, Inc.

Multiple Disadvantage and Wage Growth: The Effect of Merit Pay on Pay Gaps

This article concerns rates of wage growth among women and minority groups and their impact on pay gaps. Specifically, it focuses on the pay progression of people with more than one disadvantaged identity, and on the impact of merit pay. Recent research indicates that pay gaps for people in more than one disadvantaged identity category are wider than those with a single‐disadvantaged identity. It is not known whether these gaps are closing, at what rate, and whether all groups are affected equally; nor is it known whether merit pay alleviates or exacerbates existing pay gaps. In addressing these issues, the analysis draws on longitudinal payroll data from a large UK‐based organization. Results show that pay gaps are closing; however, the rate of convergence is slow relative to the size of existing pay disparities, and slowest of all for people with disabilities. When the effect of merit pay is isolated, it is found to have a small positive effect in reducing pay gaps, and this effect is generally larger for dual/multiple‐disadvantaged groups. These findings run counter to the well‐established critique of merit pay in relation to equality outcomes. The implications of this are discussed, and an agenda for research and practice is set out. © 2015 Wiley Periodicals, Inc.

"The Relationships Among Merit Pay, Disability Status, and Trust in Management on Job Satisfaction"

Prior research shows that moderators belie a straightforward relationship between merit pay and job satisfaction. The present study joins this body of research in proposing that disability status is a factor that may alter the relationship between the two. We theorize that although merit pay is positively related to job satisfaction for nondisabled employees, this effect is reversed for disabled employees. We also present theoretical arguments that suggest that trust in management plays a particularly important role for disabled employees, such that the negative effect between merit pay and job satisfaction dissipates for disabled employees who have high trust management. The results of a multi-level analysis of the 2011 Workplace Employee Relations Survey (disabled employee n=1,225; nondisabled employee n=12,346; workplace n=1766) support the majority of our hypotheses. Implications of the findings for theory, future research, and management practice are discussed.

Merit Pay and Music Education: A Motivation Perspective

Recently, state and federal legislators have emphasized teacher quality in their efforts to improve public education. Many reformers believe that merit pay may prove invaluable in attracting highly qualified educators to the workforce and retaining them, as well as in improving students’ test scores. While merit pay's ability to recruit and retain great teachers is as yet unproven, recent studies have found little evidence that merit pay improves students’ test scores. The following article seeks to inform merit pay policies by offering insight from research in educational psychology and outlining possible implications for music education.

The Development of a Model for the Distribution of Merit Pay Increase Monies for Municipal Agencies

Merit pay is based on individual performance and is one of the most widely accepted methods to encourage and recognize meritorious job performance. At the core of an agency’s merit pay increase system is the performance appraisal instrument and interview. A recent study discussed the steps involved in creating job-specific performance appraisal instruments that can be used to assess employees’ range of performance and the interview process involved in conducting a well-defined performance appraisal. This article builds on this previous research and focuses on the final steps of a pay-for-performance system to determine how much of a merit increase will be given for different levels of performance. A case study methodology is used to review the literature on the ways in which organizations differentially compensate individuals based on their performance; to implement the recommendations of the literature review to develop a model for the distribution of merit pay increases for the Elmhurst Park District (Elmhurst, Illinois), and to evaluate employees’ attitudes toward the newly developed model in contrast to a previous model. Comparison of employee attitudes toward the original system and the newly developed system found significant mean differences on four of the six items assessing the employees’ overall satisfaction with the system and their perceptions of distributive justice.