Pay for performance and forced distribution feature prominently. Analyzing the practical implications of the two appraisal systems is necessary for choosing one for a public-sector organization. Forced distribution entails the supervisor arbitrarily classifying most of the employees as average and rewarding the performance of only about 10% (Hinna, Gnan & Monteduro, 2016). Ostensibly, this appraisal method attracts the unintended consequence of demoralizing employees because of the arbitrariness of the performance-based classification. Therefore, such an appraisal system would discourage career growth and hinder recruitment of talented individuals to the public sector. Then again, pay for performance methods also present unique challenges (Hinna, Gnan & Monteduro, 2016).
Significantly, success with this method is possible when employees value the pay and recognition offered by their organization for high performance; understand what is needed of them; have confidence in achieving the desired performance targets and confidence in the organization to honor commitments about meeting such targets. Further advancing this concept, is the need for effective and fair supervision, appropriate training for employees and supervisors among other requirements. Therefore, under certain conditions, the pay for performance method suits public service (Dooren, Bouckaert & Halligan, 2015). Rationally, if those conditions can be met then this system should be successful.
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Pay for performance systems associate employee remuneration to either individual or organizational metrics: performance appraisals. Here, performance standards measures along with their application concern both employer and employee. This is not the case in tenure-based systems where certain decisions are based on seniority (Dooren, Bouckaert & Halligan, 2015). with the employer. Therefore, public agencies must make legislative changes to effectively incorporate this appraisal system. Then again, the system has been criticized for being difficult to implement in the public sector. However, communication, transparency, and training are some tools that can help overcome such difficulty; when they encourage employees to manage and improve their performances (Hinna, Gnan & Monteduro, 2016).
References
Dooren, V. W., Bouckaert, G. & Halligan, J. (2015). Performance Management in the Public Sector. Abingdon-on-Thames, UK: Routledge.
Hinna, A., Gnan, L., & Monteduro, F. (2016). Governance and performance in public and non-profit organizations . Bingley, UK: Emerald Group Publishing Limited
