Compensation Management: Coherence between Organization Directions and Teacher Needs Available to Purchase

Emphasizes the need for coherence between the reward structure and the organizational culture of effective schools. Provides a framework for discussion which includes a typology of rewards, including pecuniary, non‐pecuniary extrinsic and intrinsic rewards. Analyses several pay‐for‐performance strategies, classified by permanency of increases (merit or incentive) and mode of distribution (individual or group). Explores the perceived advantages and disadvantages of various merit and incentive plans in support of effective schools. Suggests that more attention to a closer fit between compensation strategies,organizational strategies, and workforce behaviours is required to increase the positive effects of reward structures.