Abstract
This paper examines the impact of the Federal merit pay system on motivation. The 1980 Federal Employee Attitude Survey includes a sample of mid-level managers and supervisors (GS 13-19) and SESers who actually experienced a merit pay cycle. This enables us to analyze the differences between merit pay recipients and nonrecipients. Basically, there were no major differences. Merit pay recipients do not appear to be any more motivated nor do they perceive their organizations as being more effective or responsive.