Bonuses and performance in the public sector.

Abstract

This article examines the decision by the Treasury Board, representing management in the Federal public service, to implement a system of bonus payments for outstanding senior mangers. The analysis is based on a review of the current performance appraisal system for senior managers and a summary of empirical studies of motivation largely drawn from the private sector and laboratory settings. The findings demonstrate the need for an improved system of appraising senior managers and for more relevant research on the motivation and attitudes of senior public sector managers.