Pay-for-Performance Pay System and Job Attitudes in Government Agencies

TL;DRAbstract

It is well documented that public organizations are different from private ones in many respects –the goals of the organization, institutional rules, personnel systems, and employee motivation and behaviors. Over the past three decades, much research has revealed differences in behaviors and perceptions between the private and public sectors–known as sector difference–in the public administration field. Since the New Public Management (NPM) movement, public-sector organizations have adopted many managerial principles from the private sector. Pay-for-performance (PFP) is one of the common managerial practices that has been widely employed in public organizations. At present, many federal government agencies utilize alternative pay systems based on the PFP mechanism, replacing the General Schedule (GS) system in which pay increase is based on seniority. \nWith the growing popularity of PFP systems in the public sector, many public administration scholars are raising concerns that the use

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