Delivery of Incentives for the Development of Managers: Pros and Cons

Nowadays, evaluation systems and compensation schemes are being incorporated to public administrations; these have included monetary incentives when the civil servants reach certain performance's levels. Success pursuit in performing is a constant concern at public administrations. These combine multiple administrative mechanisms that go from highly formalized bureaucracies to more focalized work groups based on capacities than in process. It cannot be deny the advantage of results-oriented management. Nevertheless, the incorporation to a compensation system could have negative or even contrary effects to the pursuit. For this reason, it is important to recognize limits and mistakes which can turn up in managers development systems based on incentives, especially in monetary ones. This article analyzes the core of management incentives system, in order to review incentives delivered by results. Then, it shows positive and negative effects generated by those systems. Civil servants will be motivated to execute a high level effort when they believe than this implies a better performance evaluation and possibly the achievement of a reward such as: bonus, salary rise or a promotion. This may also implies a high level of satisfaction for the executive when fulfilling his job. Developing public manger's compensation plans is a complex issue, because it requires analysis, evaluations during its implementation, success valuation and costs consideration. Public administrations must be more oriented to favorable results to society, and solving problems and satisfying social demands.