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Performance-based pay and
        teachers:


 AN EXAMINATION OF CONSEQUENCES ON
  INTRINSIC MOTIVATION AND WORKER-
       EMPLOYEE RELATIONSHIPS.
Introduction


 How performance-based pay affects teaching
 profession
Introduction


 Extrinsic Motivators (or rewards) Influences:
   Intrinsic motivation

   Working relationships
    Superiors
    Colleagues
Introduction


 Poor student achievement:
   Increased awareness toward public education

   Resulted in many new education reforms
Introduction


 Performance-based pay is used to:
   Motivate teachers

   Raise instructional quality

   Increase student achievement

   Locating inadequate teachers
Outline
Outline

 Types of Incentives
 Use of rewards in different countries
Outline

 Types of Incentives
 Use of rewards in different countries
 Reasons for using performance-based pay
Outline

 Types of Incentives
 Use of rewards in different countries
 Reasons for using performance-based pay
 What research says about the use of performance-
 based pay
Outline

 Types of Incentives
 Use of rewards in different countries
 Reasons for using performance-based pay
 What research says about the use of performance-
  based pay
 Methods used to evaluate teachers
Outline

 Types of Incentives
 Use of rewards in different countries
 Reasons for using performance-based pay
 What research says about the use of performance-
  based pay
 Methods used to evaluate teachers
 Factors which lead to reduced teacher morale
Outline

 Types of Incentives
 Use of rewards in different countries
 Reasons for using performance-based pay
 What research says about the use of performance-
  based pay
 Methods used to evaluate teachers
 Factors which lead to reduced teacher morale
 Risks of using rewards in the workplace
Outline

 Types of Incentives
 Use of rewards in different countries
 Reasons for using performance-based pay
 What research says about the use of performance-
    based pay
   Methods used to evaluate teachers
   Factors which lead to reduced teacher morale
   Risks of using rewards in the workplace
   Conclusion
Types of Incentives

Monetary             Non-Monetary
Types of Incentives

    Monetary                 Non-Monetary

Pay bonuses

Improved job stability

Pensions

Salary supplements
Types of Incentives
    Monetary                 Non-Monetary

Pay bonuses                 Professional development
                              opportunities
Improved job stability
                            Additional teaching
Pensions                     resources

Salary supplements          Coupons or vouchers

                            Social recognition (e.g.
                             award ceremonies, etc)
Comparison of Use

Developed Countries


 Monetary incentives
 Hybrids
   Monetary

  &
   Non-monetary

 Majority of rewards = $
Comparison of Use

Developed Countries          Developing Countries


 Monetary incentives         Non-monetary
 Hybrids                     incentives
   Monetary                     More economical
  &
   Non-monetary

 Majority of rewards = $
Rationale

Improve student academic achievement.

Improve instructional abilities and quality

Increase education standards

Increased teacher work ethic
Capitalism & Education


 Money is the only true form of motivation
 Corporate routines and ethos have influenced
 mainstream education
Capitalism & Education


 Money is the only true form of motivation
 Corporate routines and ethos have influenced
  mainstream education
 Competition for additional funding
     Race to the Top
 Competition will produce
   Increased levels of instruction
   New “types” of teachers who thrive in a competitive
    environment
   A means to identify and remove weak performers
Research says…


 Performance-based pay ≠ Increased student
 achievement
Research says…


 Performance-based pay ≠ Increased student
  achievement
 Frequency of work-related incentives is increasing
Research says…


 Performance-based pay ≠ Increased student
  achievement
 Frequency of work-related incentives is increasing
 Performance-based pay ≠ Increased work quality
Research says…


 “Tone” is advesarial
   Typically in developed countries
Research says… Benefits?


 Reduced teacher mobility between schools
   “Undesirable” schools experienced increased teacher stability
Research says… Benefits?


 Reduced teacher absenteeism
   When pay was linked to attendance
Benefits? However…


 Some teachers sought out schools with performance-
 based pay
    Good teachers moved in order to qualify for higher earnings
    Struggling schools could not hold onto good teachers
Research says…


 Performance based-pay needs to be
   Linked to instructional quality
Research says…


 Performance based-pay needs to be
   Linked to instructional quality

   Transparent to teachers that evaluation methods truly assess
    high quality instruction
Teacher Evaluation

 All tasks are not created equal
   Nor should be evaluated equally
Teacher Evaluation

• All tasks are not created equal
    o Nor should be evaluated equally

Algorithmic Tasks                Heuristic Tasks
Assembly line                    Creative
Predicable outcome & method of   Requires problem-solving
completion
Teacher Evaluation

 All tasks are not created equal
   Nor should be evaluated equally


Algorithmic Tasks                Heuristic Tasks
Assembly line                    Creative
Predicable outcome & method of   Requires problem-solving
completion


• Teaching profession is arguably heuristic
Teacher Evaluation


 How evaluations are used:
   Administrators
      Utilized results to assess teacher’s involvement in school (outside
       of regular teaching schedule)
Teacher Evaluation


 How evaluations are used:
   Administrators
        Utilized results to assess teacher’s involvement in school (outside
         of regular teaching schedule)
    Teachers
      Want results to reflect teaching strengths
      Identify instructional areas that need improvement
Human Motivation Theories


 Range of human needs
   Basic  Food, water, shelter

   Complex  Interests, potential activities that lead to success
Human Motivation Theories


 Extrinsic rewards
   Reduce intrinsic motivation

   Potentially reduce perceived worker autonomy
Human Motivation & Autonomy


 Autonomy is a common thread between many
  human motivation theories
 Autonomy is reduced:
    With overuse use of worker monitoring
    Increased frequency of worker evaluations
Human Motivation & Mainstream Ideals


 Intrinsic motivation & autonomy are given little
  consideration
 Motivation ≠ Intrinsic + Extrinsic according to
  economists
 Money represents the only motivator for all workers
Quality of Work


 Decreased motivation = decreased quality
Quality of Work


 Decreased motivation = decreased quality
 Worker apathy is created with perceived loss of
 autonomy and reduce intrinsic motivation
Low Teacher Morale


 Factors leading to reduced morale:
   Low fixed wages (more common in developing countries)
Low Teacher Morale


 Factors leading to reduced morale:
   Low fixed wages (more common in developing countries)

   New policies
Low Teacher Morale


 Factors leading to reduced morale:
   Low fixed wages (more common in developing countries)

   New policies

   Reduced teacher bargaining rights
Risks of Using Incentives


 Opportunistic behaviour
   Teaching to test

   Reduced teamwork

   Increased teacher mobility
Risks of Using Incentives


 Opportunistic behaviour
   Teaching to test

   Reduced teamwork

   Increased teacher mobility

 Narrowed focus
   Focus on achieving rewards becomes teacher’s primary
    concern
   Aspects of job deemed irrelevant if they did not contribute to
    attaining incentive(s)
Risks of Using Incentives


 Opportunistic behaviour
   Teaching to test
   Reduced teamwork
   Increased teacher mobility

 Narrowed focus
   Focus on achieving rewards becomes teacher’s primary
    concern
   Aspects of job deemed irrelevant if they did not contribute to
    attaining incentive(s)
 Increased resentment toward authority
Conclusion


 Research fails to determine that performance-based
  pays increases:
     Student achievement
     Instructional quality
 Planning process:
   Requires much consideration before implementation

   Should be transparent

   Should allow teacher input
Conclusion


 Alternative Rewards
   Greater consideration for non-monetary incentives

   Alternative rewards may also create cost-saving incentives

 Trust
   Shift in focus from competition to collaboration

   Trust (with accurate tools to measure accountability) should be
    placed back into the teaching profession
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Performance based pay

  • 1. Performance-based pay and teachers: AN EXAMINATION OF CONSEQUENCES ON INTRINSIC MOTIVATION AND WORKER- EMPLOYEE RELATIONSHIPS.
  • 2. Introduction  How performance-based pay affects teaching profession
  • 3. Introduction  Extrinsic Motivators (or rewards) Influences:  Intrinsic motivation  Working relationships  Superiors  Colleagues
  • 4. Introduction  Poor student achievement:  Increased awareness toward public education  Resulted in many new education reforms
  • 5. Introduction  Performance-based pay is used to:  Motivate teachers  Raise instructional quality  Increase student achievement  Locating inadequate teachers
  • 7. Outline  Types of Incentives  Use of rewards in different countries
  • 8. Outline  Types of Incentives  Use of rewards in different countries  Reasons for using performance-based pay
  • 9. Outline  Types of Incentives  Use of rewards in different countries  Reasons for using performance-based pay  What research says about the use of performance- based pay
  • 10. Outline  Types of Incentives  Use of rewards in different countries  Reasons for using performance-based pay  What research says about the use of performance- based pay  Methods used to evaluate teachers
  • 11. Outline  Types of Incentives  Use of rewards in different countries  Reasons for using performance-based pay  What research says about the use of performance- based pay  Methods used to evaluate teachers  Factors which lead to reduced teacher morale
  • 12. Outline  Types of Incentives  Use of rewards in different countries  Reasons for using performance-based pay  What research says about the use of performance- based pay  Methods used to evaluate teachers  Factors which lead to reduced teacher morale  Risks of using rewards in the workplace
  • 13. Outline  Types of Incentives  Use of rewards in different countries  Reasons for using performance-based pay  What research says about the use of performance- based pay  Methods used to evaluate teachers  Factors which lead to reduced teacher morale  Risks of using rewards in the workplace  Conclusion
  • 15. Types of Incentives Monetary Non-Monetary Pay bonuses Improved job stability Pensions Salary supplements
  • 16. Types of Incentives Monetary Non-Monetary Pay bonuses Professional development opportunities Improved job stability Additional teaching Pensions resources Salary supplements Coupons or vouchers Social recognition (e.g. award ceremonies, etc)
  • 17. Comparison of Use Developed Countries  Monetary incentives  Hybrids  Monetary &  Non-monetary  Majority of rewards = $
  • 18. Comparison of Use Developed Countries Developing Countries  Monetary incentives  Non-monetary  Hybrids incentives  Monetary  More economical &  Non-monetary  Majority of rewards = $
  • 19. Rationale Improve student academic achievement. Improve instructional abilities and quality Increase education standards Increased teacher work ethic
  • 20. Capitalism & Education  Money is the only true form of motivation  Corporate routines and ethos have influenced mainstream education
  • 21. Capitalism & Education  Money is the only true form of motivation  Corporate routines and ethos have influenced mainstream education  Competition for additional funding  Race to the Top  Competition will produce  Increased levels of instruction  New “types” of teachers who thrive in a competitive environment  A means to identify and remove weak performers
  • 22. Research says…  Performance-based pay ≠ Increased student achievement
  • 23. Research says…  Performance-based pay ≠ Increased student achievement  Frequency of work-related incentives is increasing
  • 24. Research says…  Performance-based pay ≠ Increased student achievement  Frequency of work-related incentives is increasing  Performance-based pay ≠ Increased work quality
  • 25. Research says…  “Tone” is advesarial  Typically in developed countries
  • 26. Research says… Benefits?  Reduced teacher mobility between schools  “Undesirable” schools experienced increased teacher stability
  • 27. Research says… Benefits?  Reduced teacher absenteeism  When pay was linked to attendance
  • 28. Benefits? However…  Some teachers sought out schools with performance- based pay  Good teachers moved in order to qualify for higher earnings  Struggling schools could not hold onto good teachers
  • 29. Research says…  Performance based-pay needs to be  Linked to instructional quality
  • 30. Research says…  Performance based-pay needs to be  Linked to instructional quality  Transparent to teachers that evaluation methods truly assess high quality instruction
  • 31. Teacher Evaluation  All tasks are not created equal  Nor should be evaluated equally
  • 32. Teacher Evaluation • All tasks are not created equal o Nor should be evaluated equally Algorithmic Tasks Heuristic Tasks Assembly line Creative Predicable outcome & method of Requires problem-solving completion
  • 33. Teacher Evaluation  All tasks are not created equal  Nor should be evaluated equally Algorithmic Tasks Heuristic Tasks Assembly line Creative Predicable outcome & method of Requires problem-solving completion • Teaching profession is arguably heuristic
  • 34. Teacher Evaluation  How evaluations are used:  Administrators  Utilized results to assess teacher’s involvement in school (outside of regular teaching schedule)
  • 35. Teacher Evaluation  How evaluations are used:  Administrators  Utilized results to assess teacher’s involvement in school (outside of regular teaching schedule)  Teachers  Want results to reflect teaching strengths  Identify instructional areas that need improvement
  • 36. Human Motivation Theories  Range of human needs  Basic  Food, water, shelter  Complex  Interests, potential activities that lead to success
  • 37. Human Motivation Theories  Extrinsic rewards  Reduce intrinsic motivation  Potentially reduce perceived worker autonomy
  • 38. Human Motivation & Autonomy  Autonomy is a common thread between many human motivation theories  Autonomy is reduced:  With overuse use of worker monitoring  Increased frequency of worker evaluations
  • 39. Human Motivation & Mainstream Ideals  Intrinsic motivation & autonomy are given little consideration  Motivation ≠ Intrinsic + Extrinsic according to economists  Money represents the only motivator for all workers
  • 40. Quality of Work  Decreased motivation = decreased quality
  • 41. Quality of Work  Decreased motivation = decreased quality  Worker apathy is created with perceived loss of autonomy and reduce intrinsic motivation
  • 42. Low Teacher Morale  Factors leading to reduced morale:  Low fixed wages (more common in developing countries)
  • 43. Low Teacher Morale  Factors leading to reduced morale:  Low fixed wages (more common in developing countries)  New policies
  • 44. Low Teacher Morale  Factors leading to reduced morale:  Low fixed wages (more common in developing countries)  New policies  Reduced teacher bargaining rights
  • 45. Risks of Using Incentives  Opportunistic behaviour  Teaching to test  Reduced teamwork  Increased teacher mobility
  • 46. Risks of Using Incentives  Opportunistic behaviour  Teaching to test  Reduced teamwork  Increased teacher mobility  Narrowed focus  Focus on achieving rewards becomes teacher’s primary concern  Aspects of job deemed irrelevant if they did not contribute to attaining incentive(s)
  • 47. Risks of Using Incentives  Opportunistic behaviour  Teaching to test  Reduced teamwork  Increased teacher mobility  Narrowed focus  Focus on achieving rewards becomes teacher’s primary concern  Aspects of job deemed irrelevant if they did not contribute to attaining incentive(s)  Increased resentment toward authority
  • 48. Conclusion  Research fails to determine that performance-based pays increases:  Student achievement  Instructional quality  Planning process:  Requires much consideration before implementation  Should be transparent  Should allow teacher input
  • 49. Conclusion  Alternative Rewards  Greater consideration for non-monetary incentives  Alternative rewards may also create cost-saving incentives  Trust  Shift in focus from competition to collaboration  Trust (with accurate tools to measure accountability) should be placed back into the teaching profession
  • 50. References Amiable, T.M. (1993). Motivational synergy: Toward new conceptualization of intrinsic and extrinsic motivation in the workplace. Human Resource Management Review, 3(3), 185. doi:10.1016/1053-4822(93)90012-S Andrews, H.A. (2011). Supporting quality teachers with recognition. Australian Journal of Teacher Education, 36(12), 59-70. Ballot, D. (2001). Pay for performance in public schools. Economics of Education Review, 20, 51-61.
  • 51. References Barkema, H.G. (1995). Do job executives work harder when they are monitored? Kyklos, 48, 19–42. Buck, S., & Greene, J.P. (2011). Blocked, diluted, and co-opted: Interest groups wage war against merit pay. Education Next, 11(2), 26-31. Camerer, C.F. (2010). Removing financial incentives demotivates the brain. Proceedings of the National Academy of Sciences of The United States of America, 107(49), 20849-20850. doi:10.1073/pnas.1016108107
  • 52. References Chamberlin, R., Wragg, T., Haynes, G., &Wragg, C. (2002). Performance-related pay and the teaching profession: A review of the literature. Research Papers in Education, 17(1), 31-49. doi:10.1080/02671520110102534 Cohen, D.K., &Murnane, R.J. (1985). The merits of merit pay. Retrieved from http://eric.ed.gov/ERICWebPortal/search/detailmini.jsp?_nfpb=tr ue&_&ERICExtSearch_SearchValue_0=ED270843&ERICExtSearc h_SearchType_0=no&accno=ED270843 Deckop&Cirka. (2000). The risk and reward of a double-edged sword: Effects of a merit pay program on intrinsic motivation. Nonprofit & Voluntary Sector Quarterly, 29(3), 400-418. doi:10.1177/0899764000293003
  • 53. References Dee, T.S., & Keys, B.J. (2004). Does merit pay reward good teachers? Evidence from a randomized experiment. Journal of Policy Analysis & Management, 23(3), 471-488. doi:10.1002/pam.20022 Frey, B.S. (1993). Does monitoring increase work effort? The rivalry between trust and loyalty. Economic Inquiry, 31(4), 663–670. doi:10.1111/j.1465-7295.1993.tb00897.x Frey, B.S., &Jegen, R. (2001). Motivation crowding theory. Journal of Economic Surveys, 15(5), 589–611. doi:10.1111/1467-6419.00150
  • 54. References Goodman, S., & Turner, L. (2011). Does whole-school performance pay improve student learning? Evidence from the New York City schools. Education Next, 11(2), 67-71. Griffith, S.A. (2008). A proposed model for assessing quality of education. International Review Of Education, 54(1), 99-112. doi:10.1007/s11159-007-9072-x Guarino, C.M., Brown, A.B., & Wyse, A.E. (2011). Can districts keep good teachers in the schools that need them most?. Economics of Education Review, 30(5), 962-979.
  • 55. References Hatry, H.P., Greiner, J.M., & Urban Inst., W.C. (1984). Issues in teacher incentive plans. Retrieved from http://eric.ed.gov/ERICWebPortal/search/detailmini.jsp?_nfpb=tr ue&_&ERICExtSearch_SearchValue_0=ED244340&ERICExtSearc h_SearchType_0=no&accno=ED244340 Howell, W., Peterson, P.E., & West, M. (2011a). The public weighs in on school reform: Intense controversies do not alter public thinking, but teachers differ more sharply than ever. Education Next, 11(4), 10-22. Howell, W., West, M., & Peterson, P.E. (2011b). Meeting of the minds. Education Next, 11(1), 20-31.
  • 56. References James, H.S. (2005). Why did you do that? An economic examination of the effect of extrinsic compensation on intrinsic motivation and performance. Journal Of Economic Psychology, 26(4), 549-566. doi:10.1016/j.joep.2004.11.002 Kessler, I., & Purcell, J. (1991). Performance-related pay: theory and practice. Paper presented at the 10th Colloquium for the European Group of Organisation Studies, Vienna, July 1991. Oxford: Templeton College: The Oxford Centre for Management Studies. Kobakhidze, M. (2010). Teacher incentives and the future of merit- based pay in Georgia. European Education, 42(3), 68-89. doi:10.2753/EUE1056-4934420304
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  • 58. References Matsumura, L., Garnier, H., Pascal, J., &Valdés, R. (2002). Measuring instructional quality in accountability systems: Classroom assignments and student achievement. Educational Assessment,8(3), 207-229. doi:10.1207/S15326977EA0803_01 McCollum, S. (2001). How merit pay improves education. Educational Leadership, 58(5), 21-24. McKeachie, W.J. (1997). Student ratings the validity of use. American Psychologist 52(11), 1218–1225. doi:10.1037//0003- 066X.52.11.1218
  • 59. References McLeod, D.B., Stake, R.E., Schappelle, B., Mellissinos, M., &Gierl. M. (1996). Setting the standards: NCTM’s role in the reform of mathematics education. In: Bold Ventures: U.S. Innovations in Science And Mathematics Education. Vol 3: Cases in Mathematics Education, ed. by Senta A. Raizen and Edward D. Britton, 13–132. Dordrecht, The Netherlands: Kluwer. Muralidharan, K., &Sundararaman, V. (2011). Teacher opinions on performance pay: Evidence from India. Economics of Education Review, 30(3), 394-403. doi:10.1016/j.econedurev.2011.02.001 Murayama, K., Matsumoto, M., Izuma, K., & Matsumoto, K. (2010). Neural basis of the undermining effect of monetary reward on intrinsic motivation. Proceedings of The National Academy of Sciences of The United States of America, 107(49), 20911-20916. doi:10.1073/pnas.1013305107
  • 60. References Murnane, R.J., & Cohen, D.K. (1985). Merit pay and the evaluation problem: why most merit pay plans fail and a few survive. Harvard Educational Review, 56(1), 1–17. Osterloh, M., & Frey, B.S. (2000). Motivation, knowledge transfer, and organizational forms. Organization Science, 11(5), 538-72. Pink, D.H. (2009). Drive: The surprising truth about what motivates us. New York, NY: Riverhead Books.
  • 61. References Pfau, B.N., & Kay, I.T. (2002). The five key elements of a total rewards and accountability orientation. Benefits Quarterly, 18(3), 7-15. Podgursky, M., & Springer, M.G. (2007). Credentials versus performance: Review of the teacher performance pay research. Peabody Journal of Education (0161956X), 82(4), 551-573. doi:10.1080/01619560701602934 Pouliakas, K. (2010). Pay enough, don't pay too much or don't pay at all? The impact of bonus intensity on job satisfaction. Kyklos, 63(4), 597-626. doi:10.1111/j.1467-6435.2010.00490.x
  • 62. References Ramirez, A. (2001). How merit pay undermines education. Educational Leadership, 58(5), 16-20. Rynes, S.L., Gerhart, B., & Parks, L. (2005). Personnel psychology: Performance evaluation and pay for performance. Annual Review of Psychology, 56(1), 571-600. doi:10.1146/annurev.psych.56.091103.070254 Scott, T. (2011). A nation at risk to win the future: The state of public education in the U.S. Journal for Critical Education Policy Studies, 9(1), 267-316.
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  • 65. References Woessmann, L. (2011b). Merit pay international. Education Next, 11(2), 72-77. Zhao, J., & Gallant, D.J. (2012). Student evaluation of instruction in higher education: Exploring issues of validity and reliability. Assessment & Evaluation in Higher Education, 37(2), 227-235.