ABSTRACT
Many public sector agencies have begun to align pay with employees’ performance rather than tenure. For pay-for-performance and merit-pay systems to be successful, organizations need to ensure that procedural justice and distributive justice exist, the system must be linked to the strategic mission of the organization, employees should participate in the development of the plan, there need to be meaningful distinctions between acceptable and outstanding performance, and costs need to be acknowledged and budgeted during the planning phase of the program.
