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David Marsden

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About the author, department and centre

Personal webpage:
http://www.lse.ac.uk/management/people/dmarsden.aspx

Management Department:
http://www.lse.ac.uk/management/home.aspx

Centre for Economic Performance:
http://cep.lse.ac.uk/ 

Relevant research

Marsden, David and Richardson, Ray (1994) Performing for pay?: the effects of 'merit pay' on motivation in a public service. British Journal of Industrial Relations, 32 (2). pp. 243-261. http://eprints.lse.ac.uk/4030/

Marsden, David and French, Stephen (1998) What a performance: performance related pay in the public services. Centre for Economic Performance special papers, CEPSP10. Centre for Economic Performance, London School of Economics and Political Science, London, UK. http://eprints.lse.ac.uk/4421/

Marsden, David (2004) The role of performance related pay in renegotiating the ‘effort bargain’: the case of the British public service. Industrial and Labor Relations Review, 57: 3, April, pp. 350-370. http://eprints.lse.ac.uk/4036/ http://ilr.sagepub.com/content/57/3/350.refs

Marsden, David and Belfield, Richard (2006) Pay for performance where output is hard to measure: the case of performance pay for school teachers. Advances in Industrial and Labor Relations, 15 . pp. 1-34. Winner of the 2006 LERA ‘Best paper’ competition. [The US LERA is one of the oldest and largest associations for the study of labour and employment relations in the world].  http://eprints.lse.ac.uk/22871/

Marsden, David and Belfield, Richard (2006) Pay for performance where output is hard to measure: the case of performance pay for school teachers. 747. Centre for Economic Performance, London School of Economics and Political Science, London, UK. http://eprints.lse.ac.uk/4675/

Marsden, David (2010) The paradox of performance-related pay systems: why do we keep adopting them in the face of evidence that they fail to motivate? In: Hood, Christopher, Margetts, Helen and 6, Perri, (eds.) Paradoxes of Modernization: Unintended Consequences of Public Policy Reforms. Oxford University Press, Oxford, UK, pp. 185-202. http://eprints.lse.ac.uk/23639/

Evidence of impact

United Kingdom

Makinson (2000) Incentives for change: Rewarding performance in national government networks. Public Services Productivity Panel, HM Treasury, London, p. 3. This report cited the research as evidence that the then systems of performance pay left employees disenchanted, and so argued for experimentation with team-based systems.

Hutton W. (Chair) (2011) Hutton Review of Fair Pay in the public sector: Final Report. March 2011, HM Treasury, London, pp 45-46. This review develops the argument that linking rewards to performance is an important element of fairness, but warns of the risks highlighted by the research findings:
https://www.gov.uk/government/publications/independent-public-service-pensions-commission-final-report-by-lord-hutton

Winsor T. (chair) (2012) Independent Review of Police Officer and Staff Remuneration and Conditions: Final Report, Volume 2. See Ch. 8, pp 483ff. and Appendix 4, and Recommendations 79-82. This report on the reform of police pay proposed performance-related pay but with a well-developed system of performance appraisal and recognition of team-work:
https://www.gov.uk/guidance/police-pay-winsor-review

DfE (2012) Evidence to the STRB: the case for change, Dept. for Education, London. See p. 70 for reference to the research:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/192218/evidence_to_the_strb_the_case_for_change.pdf

DfE (2013) Research Priorities and Questions: Teachers and Teaching, Dept. for Education, London. The DfE has highlighted how schools use the new freedoms to promote teacher effectiveness as one of its research gaps (see pp 9-10):
https://www.gov.uk/government/publications/research-priorities-and-questions-teachers-and-teaching

International

OECD (2005) Performance related pay policies for government employees: an overview of OECD countries. Organisation for Economic Cooperation and Development (OECD), Paris:
http://www.oecd-ilibrary.org/governance/performance-related-pay-policies-for-government-employees_9789264007550-en

Hong Kong Government Efficiency Unit (2008) Managing high performance, October, Hong Kong, China. This report cites OECD (2005) on p 29:
http://www.eu.gov.hk/en/reference/publications/managing_for_high_performance.pdf

Government of India (2008) Sixth Central Pay Commission 2008, New Delhi. OECD (2005) is cited on p 145 proposing a Performance Related Incentive Scheme. In the annex to the report, there is a chapter devoted to the international experience, which makes considerable use of the OECD 2005. On p 152 the report notes the problems of divisiveness and decline in morale associated with individual performance pay for civil servants, and so recommends use of a mix of group and individual measures:
http://pensionersportal.gov.in/sixthCPC/paycommissionreport.pdf

Mridul Maheshwari and Manjari Singh (2010) Organizational readiness for performance-related pay: Foucs on Government of India employees, Vikalpa, Vol 35(1), p. 63. This cites Belfield and Marsden (2003) on the role of PRP 'to modify the behavioural patterns of the employees in order to make them deliver the desired results':
http://www.vikalpa.com/pdf/articles/2010/vol-35-1jan-mar-63-73.pdf

Also available from the Indian Governance Knowledge Centre, Promoted by the Department of Administrative Reforms and Public Grievances:
http://indiagovernance.gov.in/files/vol-35-1jan-mar-63-73.pdf

Peter Harkness & Mark Schier (2011) Performance-related pay in Australian universities: The case of Swinburne University, Australian Universities' Review, 53(2). This cites Marsden, French and Kubo (2001):
http://issuu.com/nteu/docs/aur_53-02

Hasnain, Zahid; Manning, Nick; and Pierskalla, Jan Henryk (2012) Performance-related Pay in the Public Sector: A Review of Theory and Evidence. Policy Research Working Paper 6043, World Bank, Washington, DC:
https://openknowledge.worldbank.org/bitstream/handle/10986/6046/WPS6043.pdf

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