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Why Merit Pay Plans Are Not Working: a Search for Alternative Pay Plans in the Public Sector — a Symposium Part II

Some time back, Frederick Thayer, who is not often given to complimenting organizational reform on its face value, stated a challenge to academics and practitioners in public personnel administration. The essence of this challenge was to show some evidence that merit pay plans in the public sector are working. Does merit pay actually lead to increases in employee performance and motivation? This is a penetrating challenge, because it strikes a raw nerve close to the heart of many public administrators. As professionals, we like to think we have the knowledge, wisdom, and technical sophistication to successfully engineer rather complex and elegant alterations in the design and behavior of