tag:blogger.com,1999:blog-5043138489010794057.post2721751294147414785..comments2024-03-16T17:49:39.343+05:30Comments on Urbanomics: Why peformance pay is difficult to implement in social sectors?Urbanomicshttp://www.blogger.com/profile/16956198290294771298noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5043138489010794057.post-1307975380671145682011-07-06T14:36:01.132+05:302011-07-06T14:36:01.132+05:30Dear Gulzar,
Here I found, an illustration of wha...Dear Gulzar,<br /><br />Here I found, an illustration of what can go wrong in incentive based approaches to education.<br /><br />Search : Systemic Cheating is found in Atlanta's school system<br /><br />NYT. .. on cheating in Atlanta's state-mandated criterion-referenced competency tests.<br /><br />I like this quote from the article<br /><br />“It becomes a question of what it means to be educated,” said Maria Pease, a former teacher who is the parent of a high school student. “Does it mean the highest test score? I would argue it does not. This is part and parcel of a general dysfunction that isn’t particular to Atlanta public schools.” <br /><br />if this is the case in the US, the decline in India in social sciences education ... and anything other than professional degrees (management?)... which actually is a case of both mis-signalling and mis-labelling ... is regressive in the long run.<br /><br />regards,KP.KPhttps://www.blogger.com/profile/06553866275918658507noreply@blogger.comtag:blogger.com,1999:blog-5043138489010794057.post-53797429930754527022011-07-05T06:42:58.703+05:302011-07-05T06:42:58.703+05:30Dear Gulzar,
Thanks for a post that explains the ...Dear Gulzar,<br /><br />Thanks for a post that explains the problem with performance based incentives in government, particularly for a country like India. <br /><br />Bureaucratic roles are structured to be outside the realm of competition. ( While various interests may compete for a decision in their favour).<br /><br />By definition, the role is afforded a large degree of protection, to ensure fairness in decision making within the constraints of a political mandate.<br /><br />The "cost to company", basis - that will include incentives - is an extremely narrow comparison and completely avoids an assessment on the basis of the nature of the role - and ignores subsidised perks and benefits of stability etc., <particularly in the case of roles in government agencies).<br /><br />In many cases the starting point of the discussion is "similar role -similar pay - similay type of incentive" - but that sometimes is just a clever starting point from where this discussion begins.<br /><br />I am assuming that "incentivization" here is in comparison with the private sector - where the pay for performance principle has its own unique downside.<br /><br />The current discussion on incentives centered on the learning from the financial crisis - is the shift in power to managers from shareholders - where perverse incentives have made managers more powerful. <br /><br />Incentivization has complicated the already muddled scenario between Principal (shareholders /stakeholder / Government) - Agent (executive / bureaucrat) - and Society. <br /><br />regards, KP.KPhttps://www.blogger.com/profile/06553866275918658507noreply@blogger.com