On the other hand, merit pay systems may inspire unhealthy competition among coworkers or excessive peer pressure among teams of workers whose individual performance are measured together.
In the worst case scenario, merit pay can result in unscrupulous conduct and undermine the camaraderie in the work environment to a degree that actually affects overall output negatively instead of positively. Certain vocational environments are more likely to benefit from merit pay than others, but in all cases, effective management oversight is necessary to ensure the positive outcome envisioned by merit pay system proponents.
References
Daft, R. (2005) Management 7th Edition. Mason: Thomson South Western.
Dillon, S. Long Reviled, Merit Pay Gains Among Teachers; the New York Times. (June 18, 2007). Retrieved August 2, 2008 at http://www.nytimes.com/2007/06/18/education/18pay.html?_r=1&pagewanted=2&oref=slogin
Gerrig, R, Zimbardo, P. (2005) Psychology and Life. 17th Edition.
New York: Allyn & Bacon.
Gray, I. (1987) General and Industrial Management. (Revised from Fayol's Original) Belmont: David S. Lake Publishers. Lee, C. Bush Aims to Expand System of Merit Pay Unions Criticize Plan Based on DHS Model; the Washington Post, July 19, 2005. Retrieved August 2, 2008, at http://www.washingtonpost.com/wp-dyn/content/article/2005/07/18/AR2005071801476.html
Mills, C.W. (1953) White Collar: The American Middle Class. New York: Oxford University Press.
Murray, C. (2006) Acid Tests: No Child Left Behind is Beyond Uninformative. It Is Deceptive; the Wall Street Journal, July 25, 2006. Retrieved August 2, 2008, at http://www.opinionjournal.com/editorial/feature.html?id=110008701
Russell-Whalling, E. (2008) 50 Management Ideas You Really…
Sample Source(s) Used
References
Daft, R. (2005) Management 7th Edition. Mason: Thomson South Western.
Dillon, S. Long Reviled, Merit Pay Gains Among Teachers; the New York Times. (June 18, 2007). Retrieved August 2, 2008 at http://www.nytimes.com/2007/06/18/education/18pay.html?_r=1&pagewanted=2&oref=slogin
Gerrig, R, Zimbardo, P. (2005) Psychology and Life. 17th Edition.
New York: Allyn & Bacon.
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