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A substantial number of local governments have adopted merit based performance appraisal systems in recent years. By and large translating private sector-like performance-based pay systems into local governments has proven very difficult. “Failed attempts at developing systems that somehow make compensation more of a motivator are legion in the public sector (Walters, 1999)”.
This paper begins with a definition of merit pay and a discussion of its use as a motivational tool. The paper then briefly explores why, according to some authors, government performance-based pay systems are fundamentally more difficult to implement than their private sector equivalents...
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