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PERFORMANCE PAY AS A COORDINATING MECHANISM IN THE AUSTRALIAN PUBLIC SERVICE
Author(s) -
Wood Robert
Publication year - 1995
Publication title -
australian journal of public administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.524
H-Index - 41
eISSN - 1467-8500
pISSN - 0313-6647
DOI - 10.1111/j.1467-8500.1995.tb01113.x
Subject(s) - decentralization , business , public sector , order (exchange) , mechanism (biology) , public administration , public service , performance management , service (business) , marketing , public relations , public economics , economics , finance , political science , market economy , philosophy , economy , epistemology
Public sector management is in a state of flux. Pressures for greater efficiency and a stronger customer service orientation have led to changes to the structures and planning and reward systems of public sector organisations. In the milieu of reform, performance pay for managers has been given prominence in a recent critical report by the Senate Standing Committee on Finance and Public Administration which recommends a return to a more standardised approach to management salaries in the APS. I argue instead that performance pay should be considered as a third‐or fourth‐order coordinating mechanism and linked to the strategies of individual departments in the APS. A policy for greater decentralisation of the design, implementation and management of performance pay schemes in APS organisations is presented.