Merit Pay as a Motivator in the Federal Sector
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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The Civil Service Reform Act of 1978 required the implementation of the Merit Pay System for a portion of the Federal civilian workforce as a means of increasing productivity through the use of monetary incentives. To test the validity of this concept, several theories of worker motivation are reviewed and their relation to money motivation and pay-for-performance is established. These relationships are compared to the results of data gathered from 241 employees affected by the Act. The potential for success or failure of the Merit Pay System is discussed, indicating several problems with the program.
- Administration and Management
- Personnel Management and Labor Relations