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Pay for performance where output is hard to measure : the case of performance pay for school teachers

Marsden, David and Belfield, Richard (2006) Pay for performance where output is hard to measure : the case of performance pay for school teachers. In: Kaufman, Bruce E. and Lewin, David, (eds.) Advances in Industrial and Labor Relations. JAI Press, London, UK, pp. 1-34. ISBN 9780762313860

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The introduction of performance-related pay with Performance Management in the state school sector of England and Wales represents a considerable change in the school management system. After 2000, all teachers were subject to annual goal setting performance reviews. Experienced teachers were offered an extended pay scale based on performance instead of seniority, and to gain access to the new upper pay scale, teachers had to go through a ‘threshold assessment’ based on their professional skills and performance. This paper reports the results of a panel survey of classroom and head teachers which started in 2000 just before implementation of the new system, and then after one and after four years of operation. We find that both classroom and head teacher views have changed considerably over time, from initial general skepticism and opposition towards a more positive view, especially among head teachers by 2004. We argue that the adoption of an integrative bargaining approach to performance reviews explains why a growing minority of schools have achieved improved goal setting, and improved pupil attainments as they have implemented performance management. Pay for performance has been one of the measures of organizational support that head teachers could bring to induce changes in teachers’ classroom priorities. We argue that the teachers’ case shows that a wider range of performance incentives than previously thought can be offered to employees in such occupations, provided that goal setting and performance measurement are approached as a form of negotiation instead of top-down.

Item Type: Book Section
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Additional Information: Reprinted from Advances in Industrial and Labor Relations, In Press, David Marsden and Richard Belfield, Pay for performance where output is hard to measure : the case of performance pay for school teachers, Copyright 2006, with permission from Elsevier. LSE has developed LSE Research Online so that users may access research output of the School. Copyright and Moral Rights for the papers on this site are retained by the individual authors and/or other copyright owners. Users may download and/or print one copy of any article(s) in LSE Research Online to facilitate their private study or for non-commercial research. You may not engage in further distribution of the material or use it for any profit-making activities or any commercial gain. You may freely distribute the URL (<>) of the LSE Research Online website.
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor
Date Deposited: 08 Aug 2006
Last Modified: 20 Feb 2024 17:48

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