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Performance Pay for Teachers: Linking Individual and Organisational Level Targets

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  • Richard Belfield
  • David Marsden

Abstract

The introduction of performance-related pay and performance management schemes in the maintained, state, school sector represents a considerable change in the school management system. This paper combines the results of opinion surveys of classroom and head teachers with Department for Education and Skills school performance data to consider the operation and impact of the new system in England since 2000. We find that teachers' response to the new system closely resembles that of other groups of public service workers to similar schemes. In particular, teachers appear not to be greatly motivated by the financial-incentive element of the system. However, the goal-setting and appraisal aspect of the system is steadily establishing itself in schools, and seems to be giving rise to a better alignment of teacher and school objectives and with those of nationallevel policy objectives. We present tentative evidence that improvements in goal setting within schools are positively related to rising pupil academic performance.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0703.

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Date of creation: Aug 2005
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Handle: RePEc:cep:cepdps:dp0703

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

Related research

Keywords: Education; teachers; performance related pay; public sector; compensation; industrial relations;

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  1. Atkinson, Adele & Burgess, Simon & Croxson, Bronwyn & Gregg, Paul & Propper, Carol & Slater, Helen & Wilson, Deborah, 2009. "Evaluating the impact of performance-related pay for teachers in England," Labour Economics, Elsevier, vol. 16(3), pages 251-261, June.
  2. Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December.
  3. David Marsden, 2000. "Teachers Before the Threshold," CEP Discussion Papers dp0454, Centre for Economic Performance, LSE.
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Cited by:
  1. David Marsden & Richard Belfield, 2006. "Pay for performance where output is hard to measure: the case of performance pay for school teachers," LSE Research Online Documents on Economics 4675, London School of Economics and Political Science, LSE Library.
  2. Richard Belfield & David Marsden, 2006. "Pay for Performance Where Output is Hard to Measure: the Case of Performance Pay for School Teachers," CEP Discussion Papers dp0747, Centre for Economic Performance, LSE.

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