Nigro, L., Nigro, F., and Kellough, J. (2014). The new public personnel administration. 7th. Independence, Kentucky. Cengage. 

Sifunda-Evelia, M. (2017). Human resource management practices: A biblical perspective. Singapore: Partridge.

Paul Luntumbuez 

WednesdayMar 30 at 8:51pm

Manage Discussion Entry

Should Pay Be Tied to Performance in Public Sector

Pay in the public sector should, in my opinion, be linked to performance because this will boost productivity and cost-effectiveness. Employees in the public sector should be paid based on their performance since it motivates them to improve their work delivery efficiency. The main perceived advantage of pay for performance in the public sector is that it results in employees’ best performance. Due to this factor, I agree that the pay should be tied to performance as the public sector will be able to avoid investing many resources into low performers but rather use it to motivate those who show hard work and good performance (Park, 2021). I conquer with the concept because workers who receive performance-based pay always end up working hard in most instances. It always makes the employees get to see the fruits of their labor without seeing their salaries capped. For instance, the government should embrace making performance pay more successful because it can be a strategy, they can use to maintain its competition with the private sector in terms of employees’ productivity and performance. The idea is that it can allow the public sector to weed out fewer effective employees at the workplace. Different managers also pointed out that the use of this scheme in the organization contributes to overall accountability to the public sector. This gives the managers and workers a clear picture of who is responsible for poor or good performance (Hasnain & Pierskalla, 2016). Finally, the public sector should analyze what they want employees to accomplish using the pay-for-performance system. Although I believe that remuneration in the public sector should be linked to performance, additional drawbacks include demotivating low-performing workers and shifting employees’ focus. However, to avoid the disadvantages of performance pay, the public sector should carefully construct it to increase the public sector’s productivity and performance.

A performance program needs to encompass various key elements, such as a thorough performance process and clear objectives. Having the pay for performance well designed helps ensure that the public sector achieves its goals and increases the budget to fund the program effectively. Although effective pay for performance is an effective program, different characteristics make it look effective (Park, 2021). For instance, the effective pay for performance has evaluation forms which employee groups differentiate. It is clear that the evaluation form is one of the significant characteristics of the pay-for-performance program. It helps ensure that each performance’s goal is clearly defined and rating options for each category of employee groups are available. Another important characteristic of an effective pay for performance is an effective communication channel. Given that the program is meant to bring change in the workplace, it needs to be communicated both to the management, from the top managers to the juniors within the public sector. By having effective communication channels, the programs can be effectively enhanced within the organization. For this process to be effective, human resource personnel must be involved because they always play an important role in employment; thus, the need for them to act as interpreters and problem-solver in the program. Also, the administrative manual is characteristic of an effective pay-for-performance program. For the program to be effective, the manual should be available as that will help leaders in public sectors to ensure they effectively evaluate the performance pay. Being a manual book, it should provide rules for the administration and effectiveness that are needed to make the program successful (Staff, 2013). The initial and ongoing training is also characteristic of an effective pay for performance because it helps the HR maintain looking at the key point. For instance, when the program is introduced within the workplace, HR must take the initiative to monitor it. That will help know how the managers use it to boost employees’ productivity and effective public sector performance. Apart from manual, coaching and feedback are other important characteristics of an effective pay-for-performance program. With it, the management can ensure that employees and managers are on track. The main goal of this characteristic is always to ensure that the managers in the public sector are well informed about the program. That will help them correct where they think there is weakness and improve it for positive future growth of the company. Ultimately, the main goal of this characteristic in pay performance is to ensure there is positive performance throughout the year.

Among the characteristics I have discussed, the most important for the program’s success include evaluation forms, effective communication channels, and coaching and feedback. These three-give emphasize what pay for performance needs to undergo to be effective within the organization. For instance, evaluation forms are the most essential component because they give the managers a clear view of what the employee needs to do to be rated outstanding. I also find the three important for the programs because they are evidence-based and promising in the delivery and implementation of the program.

References:

Hasnain, Z., & Pierskalla Henryk, N. (2016). Performance-related pay in the public sector: a review of theory and evidence. World Bank Policy Research Working Paper, (6043).

Park, J. (2021). What Makes Performance-Related Pay Effective in the Public Sector? Target, Pay Design, and Context. Review of Public Personnel Administration, 0734371X21990722.

Staff, H. (2013, July 24). Five components of an effective pay-for-performance program. Retrieved March 25, 2022, from https://hrdailyadvisor.blr.com/2013/07/24/5-components-of-an-effective-pay-for-performance-program