Performance-Contingent Pay for Federal Aianagers

Abstract

A new system of performance appraisal based on written standards and merit-based pay for supervisors and managers in the federal government is examined in five sites. The merit-based pay aspects of these systems are not perceived as equitable, nor are they perceived to contribute to agency effectiveness. The performance appraisal and performance standards aspects appear to be contributing positively to work planning and supervisor-subordinate communications. Developmental, forward-looking appraisals are seen to have the most positive impact on attitudes toward these systems, though appraisals have become less developmental under the new system. Results are discussed as they relate to the effectiveness of government operations.

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