There was an article in our local e-newspaper today about introducing merit-based pay into the school system.
http://www.pantagraph.com/articles/2007/11/04/news/doc472d0b56f29ba722020593.txt
Merit pay seems pretty challenging for any job that's dissimilar from widget-making, where the results have high, easily measured volume under consistent conditions. I'm a fan of peer review for other types of jobs. Students, parents, administrators, teachers or anyone else who's around them can give an idea of the person's effectiveness. A numerical scoring system probably wouldn't do enough justice -- narrative comments would help separate sincere, detailed feedback from a simple popularity contest.
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