Work performance incentivization in the Philippine public educational organization

Authors: 
Rockangel Jamoral, Mark James Batag, Kayvett Azryll Andres
DOI Number: 
http://doi.org/10.31039/jomeino.2023.7.2.5
Abstract: 
This study investigates the impact of Performance-Based Bonus (PBB) in incentivizing the work performance of public-school teachers in the Philippine educational bureaucracy. Using a cross-sectional design, a survey was administered to public school teachers and personnel in 10 selected schools in the Cagayan Valley region, Philippines. The mechanism of incentivizing work performance is found efficient in increasing work productivity. The interplay of top-down and bottom-up management approaches is paramount in the planning and realization of the agency's PBB key result areas. However, there are perceived issues that the PBB scheme needs further clarification and improvement in its implementation. Regardless of how they may feel about the practical difficulties in the PBB implementation, it serves its purpose as a strong incentivizing scheme for employees to perform, which has a good effect on work productivity.
Keywords: 
Performance-based bonus; Educational organization; Work productivity
Full Text: 
File download
References: 

Albert, J. R. G., Mendoza, R. U., Cuenca, J. S., Opiniano, G. A., Decena-Monje, J., Pastor, M. A., and Muñoz, M. S. (2019). Process Evaluation of the Performance-Based Bonus (PBB) Scheme. PIDS Discussion Paper No. 2019-18. Philippine Institute for Development Studies (PIDS), Quezon City. https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps1915.pdf
Alshaddi AlMansoori, S. J. N., & Mohd Rosdi, S. A. (2021). Allowances, Appreciation and Promotion Influencing Employee Performance. Management Research Journal, 10(2), 112-121. https://doi.org/10.37134/mrj.vol10.2.9.2021
Armstrong, M. (2005). A Handbook of Human Resource Management Practice. (5th Ed.). Ohio: Kogan Page.
Booth, A. L., & Frank, J. (1999). Earnings, Productivity and Performance-Related Pay. Journal of Labour Economics, 17(3), 447-463. http://dx.doi.org/10.1086/209927
Chung, D. J., Steenburgh, T., & Sudhir, K. (2014). Do bonuses enhance sales productivity? A dynamic structural analysis of bonus-based compensation plans. Marketing Science, 33(2), 165-187. https://doi.org/10.1287/mksc.2013.0815
Ciriaco, C. M. (2018, March 7). Teachers nationwide to get merit bonuses, Business Mirror. https://businessmirror.com.ph/teachers-nationwide-toget-merit-bonuses/
Daley, D. (1987). Merit pay enters with a whimper: The initial federal civil service reform experience. Review of Public Personnel Administration, 7(2), 72-79. http://dx.doi.org/10.1177/0734371X8700700206
Department of Education. (2017, October 20). Guidelines on the grant of performance-based bonus for the department of education employees and officials for the fiscal year 2016. Department of Education, Republic of the Philippines. https://www.deped.gov.ph/2017/10/20/do-53-s-2017-guidelines-on-the-grant...
Dowling, B., & Richardson, R. (1997). Evaluating performance-related pay for managers in the National Health Service. International Journal of Human Resource Management, 8(3), 348-366. https://doi.org/10.1080/095851997341685
Egger-Peitler, I., Hammerschmid, G., & Meyer, R. (2007, September). Motivation, identification, and incentive preferences as issues for modernization and HR strategies in local government—First evidence from Austria. In Annual Conference of the European Group of Public Administration, Madrid, Spain, September (pp. 19-22).
Geis, A. A. (1988). Making merit pay work. In C. S. Becker (Ed.), Performance evaluation: An essential management tool, 133-144. Washington, DC: ICMA.
Heinrich, C. J. (2007). False or fitting recognition? The use of high-performance bonuses in motivating organizational achievements. Journal of Policy Analysis and Management, 26(2), 281–304. http://dx.doi.org/10.1002/pam.20244
Handler, J. F. (1992). Discretion: Power, quiescence, and trust. The Uses of Discretion, 331-360.
Handler, J. F. (1986). The conditions of discretion. Russell Sage Foundation.
Hasenfeld, Y. (1992). Theoretical approaches to human service organizations. Human services as complex organizations, 24-44.
Ingraham, P. W. (1993). Of pigs and pokes and policy diffusion: Another look at the pay for performance. Public Administration Review, 53(4), 348-356.
Irvayanti, M. T., & Sopiah. S. (2022). The effect of a psychological capital on employee performance through quality of work life. Journal of Management, Economics, and Industrial Organization, 6(3), 16-32. http://doi.org/10.31039/jomeino.2022.6.3.2
Kerwin, C. M., & Furlong, S. R. (2018). Rulemaking: How government agencies write law and make policy. Congressional Quarterly Press.
Kirunda, H. K. (2004). Performance-based rewards and teachers' performance in private secondary schools in Kampala district. https://www.mak.ac.ug/documents/Makfiles/theses/HARRIET%20KAWESA.K.pdf
Kirunda, H. K. (2004). Performance based rewards and the performance of teachers in private secondary schools in Kampala District. [MA Dissertation, Makerere University]. https://www.mak.ac.ug/documents/Makfiles/theses/HARRIET%20KAWESA.K.pdf
Lasswell, H. (1936). Politics: Who gets what, when and how. New York: McGraw- Hill
Lael R. Keiser, L.R. (1999). State bureaucratic discretion and the administration of social welfare programs: The case of social security disability. Journal of Public Administration Research and Theory, 9(1), 87-106. http://www.jstor.org/stable/1181852
Lavy, V. (2007). Performance-based pay to improve the quality of teachers. The Future of Children,17(1), 87-109. http://www.jstor.org/stable/4150021?seq=1&cid=pdfreference#references_ta...
Lawler, E. E. (1990). The Jossey-Bass management series. Strategic pay: Aligning organizational strategies and pay systems. San Francisco: Jossey-Bass.

Lispky, M. (1980). Street level bureaucrats: Dilemmas of the individual in public services. New York: Russell Sage.
Marsden, D. (2004). Role of performance-related pay in renegotiating the 'effort bargain': The case of the British Public Service. Industrial and Labour Relations Review, 57(3), 1-23. http://dx.doi.org/10.2307/4126656
Marshall, N. (1998). Pay-for-performance systems: Experiences in Australia. Public Productivity and Management Review, 21(4), 403-418. http://www.jstor.org/stable/3380548?seq=1&cid=pdfreference#references_ta...
Meier, K. J. (1987). Politics and the bureaucracy: Policymaking in the fourth branch of government. Harcourt College Pub.
Mensah, F. B. and Dogbe, O. D., (2011). Performance-based pay as a motivational tool for achieving organizational performance: An exploratory case study. International Journal of Business and Management, https://doi.org/10.5539/ijbm.v6n12p270
Mihăiloaie, C. (2014, February 19). Performance based bonus – Philippines Government. Performance Magazine. http://www.performancemagazine.org/performance-based-bonus-%E2%80%93-phi...
Milkovich, G.T., & Newman, K. (1996). Compensation. (5th Edition). Montreal: Irwin.
Milkovich, G. T., & Wigdor, A. K. (Eds.). (1991). Pay for performance: Evaluating performance appraisal and merit pay. National Academy Press.
Nyberg, A. J., Pieper, J. R., & Trevor, C. O. (2013). Pay-for-performance's effect on future employee performance integrating psychological and economic principles toward a contingency perspective. Journal of Management, 42(7), 1753–1783. https://doi.org/10.1177/0149206313515520
Price, R. (2017, September 26). What is top-down management? Bizfluent. https://bizfluent.com/info-8388938-topdown-management.html
Prottas, J. (1979). People-processing: The street-level bureaucrat in public service bureaucracies. Lexington Books.
Pearce, J. L., Stevenson, W. B., & Perry, J. L. (1985). Managerial compensation based on organizational performance: A time series analysis of the effects of merit pay. Academy of Management Journal, 28(2), 261–78. http://dx.doi.org/10.2307/256200
Perrow, C. (1986). Complex organizations: A critical essay. McGraw-Hill Inc.
Perry, J. L., Engbers, T. A., & Jun, S. Y. (2009). Back to the future? Performance-related pay, empirical research, and the perils of resistance. Public Administration Review, 69(1), 33-51.
Raziq, A., & Maulabakhsh, R. (2015). Impact of working environment on job satisfaction. Procedia Economics and Finance, 23, 717-725. https://doi.org/10.1016/S2212-5671(15)00524-9
Schuler, R. S. (1998). Personnel and human resources management. (3rd Edition). West Publishing Company.
Swabe, AIR (1989). Performance-related pay: A case study. Employee Relations, 11(2), 17-23. http://dx.doi.org/10.1108/EUM0000000001016
Sabatier, P.A. (2008) Top-down and bottom-up approaches to implementation research: A critical analysis and suggested synthesis, Journal of Public Policy, 6(1), 21–48. https://doi.org/10.1017/S0143814X00003846
Setia M. S. (2016). Methodology series module 3: Cross-sectional studies. Indian Journal of Dermatology, 61(3), 261–264. https://doi.org/10.4103/0019-5154.182410
Wang, X., & Cheng, Z. (2020). Cross-sectional studies: strengths, weaknesses, and recommendations. Chest, 158(1S), S65–S71. https://doi.org/10.1016/j.chest.2020.03.012
Wells, C. L. (2017). Understanding issues of control in top-down management pedagogies. Power and Education, 9(3), 192-201. https://doi.org/10.1177/1757743817737334
Yao, S. (1997). Profit sharing, bonus payment, and productivity: A case study of Chinese state-owned enterprises. Journal of Comparative Economics, 24(3), 281-296. https://doi.org/10.1006/jcec.1997.1435

Page: 
77-94.
Issue: 
Volume 7, Number 2, May-August 2023
Content Status: 
Published