An essay on the use of merit pay scales as incentives in health care

These theories are based in the belief that people are rational and react to incentives and that you can increase performance with the correct catalyst. In analysing these we hope to understand not only what the culture of Lincoln Electric is, but also how it was formed and how it is maintained.

Proponents argue that paying teachers according to their effectiveness would be consistent with management precepts from the private sector and would lead to better educational outcomes. An experiment conducted by Kahneman et al. Concerns about favoritism: In many offices, the value of any particular employee is subjective and ultimately determined by a supervisor.

According to an article by the Center for American Progressan evaluation of programs supported by TIF, such as Denver's ProComp program and the Nashville study both discussed belowhas shown initial evidence that performance-based pay has had a positive effect on student achievement.

discuss how medicares patient and provider incentives affect efficient use of services

These incentives will produce improved performance and results for the American people. Critics will pounce on their every mistake as evidence that paying teachers for performance is a bad idea. On the other hand, an additional feature of performance pay might be improved "selection" of who enters and who stays in teaching.

Employee Retention Employees who see that their hard work is, in fact, being rewarded are naturally more apt to stay with that company, allowing employers to retain top talent.

Teachers willing to erase wrong answers on exams to avoid having their school labeled "needing improvement" will also be tempted by the thought of a personal raise. In an effort to promote teaching, many institutions have suggested merit pay, paying teachers bonuses based on how well their students perform.

Some argue that merit pay will also help motivate teachers to work harder. To cry for change is easy, trying to knock the walls down that have been in place for centuries was the dilemma.

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Advantages and Disadvantages of the Merit Pay System