Performance related pay in the Australian public service

Governments must strive to do things better, with fewer resources, and above all, differently' (OECD, 1995:6). Public sector reform seeks to develop a performance-oriented culture in an effort to increase efficiency and effectiveness in the provision and delivery of public services. The implementation of a performance management system and in particular performance related pay, is integral to the achievement of such public sector reform. There are however two research paradigms which inform the assessment and analysis of performance related pay. In this paper these paradigms are explored through a study of the implementation of PRP in the Australian Public Service.