Personnel Economics Essay Example | Topics and Well Written Essays - 1500 words

Personnel Economics - Essay Example One of the key concerns in this context is related with selecting and subsequently, assigning appropriate individual staff members with responsibilities to deliver better education to the students. The other concern in this regard has been the stimulation of adequate mechanisms in order to develop the ultimate potentials in students (Neal, 2011). Emphasising the present performance of the personnel economics framework as applied in the modern educational institutions, the discussion hereunder intends to briefly highlight the impact of teacher quality on educational outcomes. Moreover, the discussion focused on addressing the impacts of teachers’ compensation contracts on their performances or educational outcomes. Background of the Problem Arguments in various studies have signified that the professional qualities of a teacher are of paramount importance to ensure the success of a student (Hasnain & et. al., 2012; Leigh, 2012; Neal, 2011; Lazear, 2003). However, the recently o bserved changes in the global economy can be observed to have created various problems relating to teachers’ aptitude and their capabilities. ... As from the preceding few generations, it has been viewed that the personnel policies practiced by the public school systems often create link between teachers’ retention and their respective performances inappropriately; therefore, hindering the effectiveness of the entire education system to a substantial extent. However, in various scenarios, scholars have been evidently advocated that the existing tenure decision along with retention practices often involve inefficient attributes of personnel policies, which altogether affects the educational system efficiency (Neal, 2011). Nevertheless, the organisational system that tends to measure teachers’ performances creating a linkage with retention or tenure decision is not widely followed by the modern educational institutions, which eventually generates various potential issues within the system (Neal, 2011). From the observation of various studies, weak retention and promotion processes in the educational system tend to reduce the aptitude and the capability of the teachers in delivering quality education. In relation to the present educational settings, the personnel economic policies have also been identified with significant deficiencies associated with the interrelation between the performance of the teachers and their existing salary structure. Moreover, the educational institutions have further been identified to reduce cost of their services through lower salary structure of the teaching professionals owing to easy availability of competent teachers (Leigh, 2012). Although the incentive plans designed for the teachers in the educational system often play a decisive role in improving their quality, it