Targeted Teachers Pay Case Study

Targeting Teachers’ Pay
ADMN 2916
Submitted By: Scott Thornton
Submitted To: Professor Gordon
Date: October 15, 2014
Table of Contents
Introduction to the Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Knowledge Based Pay Systems versus Person Based Pay Systems . . . . . . . . . . . . . . 4
Define Knowledge Based Pay Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Define Person Based Pay Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Which System is Most Appropriate? Why? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
The Differential Effects/Impacts on Teacher Motivation and Costs . . . . . . . . . . . . . . 6
Salary Differentials and Motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Salary Differential Impact on School Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Seniority versus Increased
This method does not reward based on formal knowledge, but rather looks to assess employees on their proficiency in specific areas such as communication. Employees can demonstrate their level of proficiency in a given area based on their background and previous work experiences. The competencies can be assessed and rated using competency indicators, which are observable behaviours that demonstrate the employee’s level of competence in that area (Cole et al., 2013). Employees are then compensated based on the degree to which they are able to effectively demonstrate the competencies that are important to the employer. The competency-based pay structure applies more to white-collar jobs where the focus is not on manual labour but rather applying ones knowledge and abilities in order to do their