An Assessment of Merit Pay Administration under New York City's Managerial Performance Evaluation System: Three Years of Experience

Abstract

In 1979, New York City government adopted a results-based performance evaluation system for its more than 2,000 managers. This study describes the City's experience in administering a merit pay program under the new evaluation system. Ratings and merit pay increases are analyzed over a three-year period. Weaknesses and problems are identified. The authors draw conclusions and offer guidelines which may be instructive for other public and private sector employees.