Pay for Performance and Unionization

Pay for Performance (230 words)
There is a trend in moving towards pay-for-performance as
the preferred mechanism for compensation (rather than through seniority,
skills, knowledge, etc). Discuss the challenges with implementing a
pay for performance system in the public sector (especially since it
is more challenging to determine productivity and performance with
public programs such as welfare, crime, student performance, etc).

Unionization (230 words)
Nearly 40% of public sector employees are members of a bargaining unit
or union (versus approximately 8% for the private sector). Evaluate
and discuss the impact unionization has on public sector productivity,
both the advantages and disadvantages

Pay for Performance and Unionization

The pay-for-performance system has been a successful means of increasing productivity within the private sector for a long time. Instead of using knowledge, the level of education and the skills, that one has in order to evaluate his or her performance, organizations have long since migrated to the use of general merit to rate the effectiveness of an employee. Employees that are considered best in their performance are given financial incentives. This is after meeting the quantifiable goals that are predetermined during the delegation of duties (Bregn, 2015). Introducing this system into the public sector becomes a source of more challenges because it is not commonly used.

Using pay as an inventive to reward employees does not necessary work for every employee. This means that not everyone is entirely works smart in order to get the reward of money. There are those employees that derive motivation through being praised, recognition as well as accessing opportunities of handling assignments that are better (Bregn, 2015). The other looming danger that is caused by the implementation of the pay-for-performance system is the lack of adequate funds for sustaining the program. The budget for public sector organizations is usually fixed and therefore, employees are rated using their seniority and grade levels. It has been noted that there is a constant conflict between the rate and the ones being evaluated. This results in employees lack of confidence in the  performance evaluation techniques that are employed (Bregn, 2015). The existence of these conflicts is the source of bias and compromises the implementation of pay-for performance system in the public sector.  


Bregn, K. (2015). Pay for performance in the public sector: the challenge of fairness. International Journal of Behavioural Accounting and Finance5(2), 122.


The unionization of workplaces has become a subject of debate in the recent past especially in the public sector. This prompts employees to make informed decisions in a bid to weigh the advantages and disadvantages of joining unions. Primarily unions are significant groups that help in the oversighting the rights and needs of employees. They act as watchdogs for the proper treatment of employees by the employers and if they violate their rights, they will help their clients to sue their bosses. Unionized employees are said to earn higher wages as compared to those that are not unionized (Pontusson, 2013).

With this trend evident in the public sector, it spells doom for the productivity in the public sector. Increased pay for the public sector employees means that the government organizations has to spend more on remuneration and few funds on the exploitation resources and provision of facilities necessary for effective operation of these organizations. Additionally, allowing employees to join unions has been one of the nightmares in the public sector. Employees have been noted to be spending much time in handling cases that deal with pay rise and poor treatment at their workplaces. This means that the lost time is essential for accomplishing the different goals and tasks that increase productivity. In this case, the public sector faces a big decrease in productivity (Pontusson, 2013). On the other hand, union members are legible to present their lamentations about their work environment. Therefore, the managers in public sector can access information about the possible ways to improve the environment of their employees so that they can give their best in terms of productivity.


Pontusson, J. (2013). Unionization, Inequality and Redistribution. British Journal Of Industrial Relations51(4), 797-825.

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