Performance based pay plans have been implemented in different ways in different places. Some of the key features which distinguish these plans are; is the compensation pecuniary or non pecuniary, is it a once off, permanent or limited time reward, does the reward supplement or replace the salary scale system, are there sanctions for poor performance and finally who evaluates the teachers and what is evaluated (Beavis 2003) .
For a performance based pay plan to be successful literature and practical experience suggests that “preparatory research, experimentation and field trials” must be conducted to ensure that evidence collection and performance assessment methods are valid, reliable and fair. Implementation of performance pay scheme should not be left on individual schools to administer in their own way as they lack resources to conduct fair and reliable assessment of teacher performance against professional standards. Successful, enduring and effective schemes have been found to rely on external systems for creating standards and managing teacher assessment. The teachers must have a good understanding of the requirements and must be given opportunities not only to learn the knowledge and skills but also put it into practice Long term funding support is also a requirement for the performance based pay plan to be successful (Ingvarson, Kleinhenz & Wilkinson, 2007).
Thus a teachers’ performance related scheme is likely to be successful if it has met the “Expectancy Theory”, the “Goal Setting Theory” and the “Systems Theory”.
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