Interest m skilled-based pay by public administration theorists and practitioners is increasing as this innovative pay system is viewed as a viable means of enhancing employee skills and work motivation. Pioneered in private organizations, Ledford (1995) and others have suggested that skill-based pay design and implementation determinants are now fairly settled This case study compares the outcomes of a skill-based pay intervention in a public agency with several of the determinants that are predicted to ensure successful implementation and diffusion. The results of the study indicate all five of the "principles" measured were utilized in this fairly successful skill-based pay intervention. However, the results also indicate that skill-based pay is only congruent with a participative work culture, and that this is probably the strongest variable in determining skill-based pay success.
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