Motivation

The Role of Motivation in Performance Management:

The case of performance-related-pay schemes in British local authorities

By

JOHN ISAAC MWITA

A thesis submitted to the Faculty of Commerce and Social Science of the University of Birmingham for the degree of

DOCTOR OF PHILOSOPHY

International Development Department (IDD) School of Public Policy The University of Birmingham August 2002

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University of Birmingham Research Archive

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Abstract

The adoption of performance-related pay schemes is part of the wider market-type reforms occurring in public services today. However, this ‘managerial revolution’ has prompted an academic debate for and against these practices. The main questions raised revolve around the novelty, objectivity and compatibility of such practices to which this study responds. The thesis argues that the value of an incentive scheme policy is a function of the organisational environment, objectivity of performance measurement processes and perceived equity of the installed scheme. The research uses data from in-depth interviews, questionnaires, and desk research based on a case study of performance-related pay schemes in UK local authorities. The evidence indicates a strong support at policy level for the use of market-type managerial reforms, but less support on the ground for the performance-pay thesis. There are difficulties encountered in the setting, measuring and rewarding...