Pay-for-performance programs have become increasingly popular in recent years. The federal government introduced a merit pay system for managers under the Civil Service Reform Act of 1978. The failure of the system led to its reform in 1984. The current program, the Performance Management and Recognition System (PMRS), is described and assessed. The paper offers a prognosis for PMRS's future. Other public sector experience is reviewed to identify the probable success of managerial merit pay.
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