Introduction of performance-related pay, Public Economics

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Question:

Awards for excellent performance are increasingly employed within the public service in many countries. These will or will not have a financial value. Performance-related pay will be the most contentious of the approaches, but has been widely adopted. Public servants, like all other employees, need recognition of their achievements to maintain their motivation in a demanding and fast changing environment.

(a) Discuss the risks associated with the introduction of Performance-related pay in the Public Service with special emphasis on the Mauritian scene.

(b) Discuss the strategies that may be adopted in introducing financial and non-financial awards in the context of PRP implementation.


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