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A Study on the Importation and Indigenization of Pay-for-Performance

  • Korean Society and Public Administration
  • Abbr : KSPA
  • 2019, 30(1), pp.1-26
  • Publisher : Seoul Association For Public Administration
  • Research Area : Social Science > Public Administration
  • Received : April 11, 2019
  • Accepted : May 30, 2019

Lee Geon 1

1한양대학교

Accredited

ABSTRACT

The New Public Management(NPM) movement allows governmental agencies to initiate reforms in a way that various managerial techniques are implanted in the public sector. One of the techniques is pay-for-performance(PFP) which links pay to job performance in order to improve both individual-and organization-level performance. PFP had been operating for 20 years in government agencies since the Kim Dae-Jung administration adopted. The main purpose of this study is to diagnose the indigenization of PFP and analyze the causes of policy success or failure in Korea. Rather than imitating the PFP type of the specific country, Korean government designed our unique PFP system based on PFP ideas from OECD countries. Yet some problems of using PFP in government have emerged such as complaints and resistance of public managers, equal pay redistribution, and counter-evidence of PFP. Although the limitations of PFP are obvious, it has been operated in a path-dependence way. This paper suggests the three main reasons why PFP is implemented in an instable indigenization manner.

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