The "Hadacol" of the Eighties: Paying Senior Public Managers for Performance

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Abstract
While merit pay for senior managers is widely thought to be an attractive inducement to im proved performance, most plans fail to achieve their intended results. Studies of senior managers in various jurisdictions suggest that there is little perceived linkage between performance ratings and pay increases. Similarly, managers report that merit pay is, at best, a minimal incentive as compared to other factors. These findings suggest that merit is the "Hadacol" of the eighties. Like patent medicines of the past, merit pay for senior managers makes many promises, but generally fails to live up to them.

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