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Challenges with implementing a pay for performance system

There is a trend in moving towards pay-for-performance as the preferred mechanism for compensation (rather than through seniority, skills, knowledge, etc). Discuss the challenges with implementing a pay for performance system in the public sector (especially since it is more challenging to determine productivity and performance with public programs such as welfare, crime, student performance, etc).

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The pay-for-performance methodology was designed to promote productivity while decreasing costs in the public sector. It has been particularly useful in state governments, and probably as a way to deal with decreasing availability or allocations of funding.

The state programs are worth viewing because even though they may have the same objectives as similar federal programs, states don't have the ability to print money, and therefore they are forced to be more realistic in their programs funded and managed.

The very common type of pay-for- performance funding is in the use of grants. A ...

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