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 theresults of opinion surveys of classroom and head teachers with Department for Education and Skills schoolperformance data to consider the operation and impact of the new system in England since 2000. We find thatteachers' response to the new system closely resembles that of other groups of public service workers to similarschemes. In particular, teachers appear not to be greatly motivated by the financial-incentive element of thesystem. 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 nationallevelpolicy objectives. We present tentative evidence that improvements in goal setting within schools arepositively related to rising pupil academic performance.
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number
dp0703.
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