Pay-for performance: necessary or unsuitable way to increase efficiency in the public sector
Success of pay-for performance tool has been discussed in many ways. Some researchers
like Murphy and Cleveland (1995) support the success stories brining out examples why
it is necessary, some like Ingraham (1993) are not that optimistic about it and draws
attention on its negative effects. To tell weather pay-for performance is good or a bad
“thing” we need to discuss positive influence and negative impact of it and weight the
results. Next discussion based on different scholars articles (Mogultay 2006, Hays 2010,
Weibel et al. 2009) helps us to to that.
What pay-for performance aims to do, is that it should boost public sector performance,
as it does in private sector. The aim is to affect and motivate civil servants in a way, that
they make “better” decisions. Pay-for performance supporters believe that this kind of
motivation makes civil servants to make more quality work. This kind of external
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