IGCSE, A Level Business Student Forum

Q17 Analyse one limitation of introducing performance-related pay for teachers. [5]

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Possible Structure
[KN]
[AN]
[AN+]
[AN+]
[AN+]

[KN] Favoritism to some employees. [AN] This means that managers may prefer to give some teachers more generous bonous payments than others in the school. [AN+] This may lead to feeling of jealousy in the teachers that worked hard but do not feel recognized equally. This may cause internal conflicts between the school staff. [An+] As a result of the jealousy, the unfairly treated teachers may become dissatisfied and this my reduce their incentive to teach efficiently, therefore the quality of education for students may suffer. [AN+] Moreover, the teachers who feel unrecognized due to favoritism may leave the school to teach elsewhere, as a result the labour turnover may rise along with recruitment cost of school.

Kn: burdens and demotivates the teachers
An: since PRP involves a lot of competition , favoritism teachers are overworked in order to be at same pace as others
An+: this lowers the morale of teachers because of the competitive culture of the school
An+ apart from that PRP also causes conflicts and arguments in the work place
An+ all these limitations associated with PRP automatically forces teacher to resign affecting school's image too

[KN]Measuring teacher performance can be highly subjective, as it often relies on observations, evaluations, and assessments that can vary widely between different evaluators and schools.
[AN]Different observers may have different criteria for what constitutes effective teaching, leading to inconsistency in assessments.
[AN+]This can also create misunderstandings and conflicts among the teachers who get higher pay than the others and the management.
[AN+]Teachers may get discouraged and demotivated because of favoritism among the management towards the teachers.
[AN+]Moreover, when the teachers start feeling demotivated, they may resign hence deteriorating the image of the school.

kn: inaccurate information
an: if performance is evaluated using feedback from students, it might be inaccurate as some students may be biased.
an+: this is unfair to the teachers and might result in them leaving the school.

[KN]: the result of performance-related pay might not be accurate
[AN]: due to which the performance of the teachers would not be evaluated properly and efficiently
[AN+]: therefore, some teachers might get paid higher than other
[AN+]: creating demotivation and conflicts among the teachers and the authority
[AN+]: leading to teachers resigning deteriorating the image of the school in public

[KN]inaccuracy in evaluating performance related pay
[AN]some teacher could get pay less
[AN+]which could demotivate the teacher
[AN+]which can bring down overall performance of the school
[AN+]which will decrease the overall revenue of the school

[KN]Evaluating performance-related pay inaccurately.
[AN]Some teachers may receive lower compensation.
[AN+]This situation could potentially demotivate the teacher.
[AN+]This, in turn, can negatively impact the overall performance of the school.
[AN+]which will decrease the overall revenue of the school

[Kn] Unhealthy competition.
[An] Though some teachers may see this as a sign to improve their position in the company, some may perceive it as a competition between each other to perform well and thus, lead to conflicts in the organization.
[An+] This will lead to output fall in the school as the work environment doesn't foster friendliness.
[An+] This output fall will lead to increased time and resource wastages, increasing admin. costs.
[An+] Increased costs of the school will lead to the business becoming inefficient and may have to shut down if it starts going into loss.

KN: Innacurate info on their performances
AN: Can lead to teachers thinking their is favoritism in the organization
AN+: Demotivation
AN+: More Labour turnover
AN+: Leads to an increase in wastages of time and resources as more recruitment

KN: measuring the performance of the employee is subjective
AN: The evaluation of employees may be biased or inaccurate
AN+: Teachers will get paid less due to wrong evaluation
AN+: Not getting paid fairly will make them demotivated and lower performance
AN+: Lowered performance of the teachers will effect the quality of education in the institute and parents of the students will become dissatisfied

Piece is the payment given to workers for each unit produced.
(Kn)Money is necessary to satisfy physical needs, it also play a vital role in satisfying the other levels of needs and also increases motivation.
(An)this is still used nowadays but less as compared than in Taylors time.
(An+)it has become difficult to measure the outcome of individuals.
(An+)but a well motivated teacher can do his work very well.
(An+)therefore, it would lead to high piece rate.

(Kn) teachers would work overtime to meet the expectations.
(An) to achieve the margin of extra payments like bonuses they would work harder and long time which would create high stress levels amongst them.
(An+) this would make teachers exaust and tired which may reduce their productivity levels in organization hence would reduce overall business productivity.
(An+) working long hours and doing same work again and again would make them bore and reduce their motivation level hence would reduce their efficiency in organization.
(An+) dissatisfaction could create communication gaps between employees in organization and this could lead to errors and flaws which may slow down business decision making process.