The Development of a Pay-for-Performance Appraisal System for Municipal Agencies: A case Study
  

 In this article, it shows how performance appraisal assist agencies in identifying issues with employee training needs and cross training opportunities. The steps to identify a more effective pay-for-performance system for public agencies are: (1) identified a systematic procedure for creating performance appraisal instruments (2) describe the correct way to conduct appraisal interviews (3) by using the developed instruments and appraisal interview/review training that will help with performance review (4) Can evaluate attitudes toward the new system. There were significant differences identified through a survey results. The attitudes developed by employees toward the new system was analyzed in a case study.

The performance appraisal process is reviewed as frustration with employee and managers. 
 Recognizing how the performance appraisal system impacts individual and organizational operations regarding compensation and merit salary often leads both administration and staff to see this as a painful annual exercise. In the development of appraisal systems, research identified five benefits: (1) employee participation (2) appraisal participation (3) employees unique skills they possess (4) employee ownership (5) employee participation. Within the Strategic Human Resource Management (SHRM), it recognizes the cognizant of the value of an agency’s material resources (i.e. financial and physical) of importance to an agency’s human resources service. This study shows how the pay-for-performance systems are described as one of the most effective methods of motivating employee performance. When creating a pay-for-performance method, it always develop three things needed to have satisfaction requirements. First, need a definition of specific job performance outlines. Secondly, a well-conducted performance appraisal interview process and, third make equal decisions regarding merit amount increases. The study focus was on implementing the pay-for-performance system, which would assess the employees’ attitudes toward newly developed system. The need for development of a pay-for-performance appraisal system that will motivate staff will assist the agency to meet their goals across the field of municipal management. The performance appraisal study conducted by Elmhurst Park District divided the instrument into two sections. The first is for the supervisors to evaluate employee skills/capabilities that will affect job performance. Second section represents the employees overall performance level for the year on a five-point scale. This provides the annual pay-for-performance decision. In additional research, the social context of performance appraisal development in municipal agencies could provide additional insight into the role of employee participation. 
Work Cited
Grote, D. (2000) Public sector organizations, Public Personnel Management, 29(1) 1-20.
Roberts, G.E. (2003). Op.cit.