[lbo-talk] Merit Pay

[Wojtek S]

[WS:] Interesting.  But in the example that you quote the problem
seems to lie not with pay based on one's "merits" or performance, but
in including in the definition of performance factors that are outside
the control of the employee.  This is analogous to, say, defining
teacher's merits by the achievements (no matter how measured) of
his/her students.  Obviously, many critical factors that affect
student's performance, such as motivation, availability for
instruction, background knowledge or cognitive ability are not
controlled by the teacher.  So the problem is not that pay is linked
to merits, which would be difficult to argue against, but how merits
are defined.

Wojtek

On Mon, Feb 28, 2011 at 12:33 AM, michael perelman
<michael.perelman3 at gmail.com> wrote:
> One of the knocks on collective bargaining is that employers should be able
> to pay people what they are worth.  An interesting example of this
> phenomenon came in the realm of professional football.  In January 2011, Pro
> Bowl cornerback Nnamdi Asomugha's contract was voided because his contract
> included a little-known clause allowed the team to void his contract if he
> didn't achieve his not-likely-to-be-earned incentives in 2010 -- and he
> didn't.  One reason for his failure to earn his incentives was that he was
> so effective that quarterbacks would not to pass to someone near him.
>  Consequently, he did not have any interceptions.
> --
> Michael Perelman
> Economics Department
> California State University
> Chico, CA
> 95929
>
> mperelman at csuchico.edu
>
> 530 898 5321
> fax 530 898 5901
> http://michaelperelman.wordpress.com
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