5th Teaching & Education Conference, Amsterdam

PAY-FOR-PERFORMANCE IN INSTITUTIONS OF HIGHER EDUCATION AND ITS EFFECTS ON STUDENT LEARNING: A CASE STUDY IN CHINA

ZHENG YANG, SHIQIN XU

Abstract:

Teacher evaluation has gained increased interests in the education literature as good teachers are important for enhancing student learning (Firestone, 2014). Nevertheless, very few empirical studies to date have been conducted to understand how pay-for-performance influences faculty performance and student learning outcomes in institutions of higher education (Terpstra and Honoree_2008). Recent studies examining pay-for-performance of K-12 schools in United States provides mixed insights on the use of pay-by-performance plan in teacher evaluation. Although rich research evidence supports that merit pay plans generally positively impact employee performance and organizational productivity within the private sector (Heneman, 2002; Terpstra & Honoree, 2008), the use of pay-for-performance is found to be controversial in the education systems, especially in four-year colleges. Advocates of pay-for-performance emphasize its positive effects to foster accountability, increase competition for merit, and mobilize teachers to enhance effort (Bunk & Gibbons, 2007; Finnigan & Gross, 2007); while opponents point to the many flaws often seen in pay-for-performance systems, such as the lack of reliability of procedures, lack of validity of measures, and the crowding-out effects of teachers’ intrinsic or service commitments by the extrinsic incentives (Frey, 1994; Mintrop, et al., 2018) . In our study, we aim to contribute to the literature by examining how pay-by-performance is used in Chinese universities and its perceived effects on faculty performance and student learning. Our analysis is based on data collected through semi-structured interviews conducted with deans of 19 colleges from 3 different universities in China. Through a comparative case analysis approach, this study provides important implications for policy makers and administrators in education system. Pay-for-Performance is found to bring different effects on faculty performance and student learning depending on whether the university is research-oriented, to what extent discretion at the college level is authorized, and the level of balance between standardized performance measures and customization to different disciplines and different types of faculty. Research findings contribute to both the education and public management literature in terms of how to effectively evaluate faculty performance and enhance organizational productivity.

Keywords: Faculty Evaluation, Pay-for-Performance, Student Learning