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To: nihil who wrote (18325)5/6/2000 7:56:00 PM
From: Gordon A. Langston  Respond to of 769669
 
Merit Pay-Another Educational Mini-Industry

One of the most interesting interview sessions we held was with Professor Ed Lawler from the University of Southern California. Dr. Lawler, a
prolific writer on organizational behavior with special emphases on pay models, visited our Task Force at the Chancellor's Offices on May 22, 1997.
He told us the following:

* There have been 3,000 studies of merit pay over the past two decades and only 100 claim positive results;

* Most merit pay systems fail to have any impact on motivating workers to perform better;

* The farther an organization (be it a company or government body) lags behind the market in awarding compensation, the harder it is to make
a merit pay model work;

* Even though merit pay plans do not work, management continues to think they should;

* Japan thinks merit pay is ridiculous; it embarrasses people. calstate.edu