Philosopher Sin Yu in the third or fourth century stated that “an imperial rater of nine grades seldom rates men according to their merits, but always according to his likes and dislikes.”
While advocates always tout the benefits of “pay for performance” plans for the employee workforce, employees experience the negatives of the “pay for performance” plans.
Given the inherent subjectivity of performance reviews, absent consistent work by management to ensure fairness, “pay for performance” plans are destined for failure.
The GAO, in the end, decided to not give pay raises to about 300 analysts and specialists in January 2006. The agency also split a “pay band,” or salary range, in two and restructured salary caps for many employees. Dozens of GAO employees complained that the new pay system had not been implemented fairly.