The study is based on the study of the problem of insufficient remuneration of employees in the educational sphere. This issue is critical for attention, as the effectiveness of the learning process and aspects such as motivation, engagement, burnout, and dismissal of teachers depend on it. Therefore, in order to gain the most detailed understanding of the highlighted problem, a literary review was conducted, with the help of which the principal agency theory and the theoretical framework that underlies the proposed study were highlighted.
First of all, this academic paper will consider the theoretical approach that was highlighted during the research of scientific sources. Thus, the literary review showed that the principal agency theory has a special connection with the problem of insufficient remuneration of teachers. This approach “is an analytical framework used for analyzing the contractual relationship between two parties” (Yallew et al., 2018, p. 80). In other words, it focuses on the relationship between a principal who engages an agent to perform a particular activity (Cheng et al., 2019). Thus, this theory may be helpful in researching the causes of the problem under study.
The theory of principal agency is based on a particular understanding of the relationship between the parts involved in the process of performing tasks. Thus, the principal has the goal of passing authority to agents. However, in these conditions, there are some problems associated with the control of the performance of activities. This is due to the fact that the representation of the agent and the principal may differ due to the fact that the delegating party does not have a complete understanding of the capabilities and skills of the part taking the role. Hence, within the framework of this theory, the main interest is paid to how the principle can positively affect the fulfillment of the tasks assigned to the agent.
Within the framework of a researched problem, the principal agency of theory can assist in understanding its sources and provide awareness of what measures should be applied to limit it. The need for these actions is due to the fact that reasonable and correct remuneration of teachers has a significant positive effect on the effectiveness of training (Pham et al., 2019). Thus, based on the postulates and basic concepts of the derived theory, the educational system can correct the issue that has arisen.
Within the framework of this approach, the agents are teachers, and the principal can be heads of educational institutions and the state. Research shows that the main assumptions are that “teachers are primarily motivated by money, they are not working hard enough, and know how to be more effective but are choosing not to put forth the necessary effort to do so” (Kozlowski & Lauen, 2019, p. 1). Highlighted aspects can become guides for identifying areas that require attention from principles.
Further, a theoretical framework was isolated from the conducted literary review. According to Mallah (2018), “it focuses on the question of how policymakers and education leaders can improve teacher effort towards the outcome of interest, specifically improving student achievement” (p. 29). Therefore, this approach determines three main areas of incentives: monetary, social, and vision-based. Within the framework of this work, special attention was paid to the financial component.
The proposed framework suggests that the monetary support of teachers predominantly affects the outcomes of the learning process. This is due to the fact that, at the moment, a large number of education providers are underpaid. Research stated that “across the nation, educator pay continues to erode, expanding the large pay gap between what teachers earn and what similarly educated and experienced professionals in other fields earn” (Long, 2019, para. 6). This causes dissatisfaction, burnout, and dismissal of these specialists.
Thus, the problem of low wages is critical for the effectiveness and productivity of students. The literary review emphasized that based on specialized examinations, researchers were convinced that teachers could alter their motivation and approaches to teaching children (Eren, 2019). This can become a severe threat to a decrease in the education of students and an increase in burnout and dismissal of specialists in the field of education.
Based on the studied sources, monetary incentives can be applied in the development of strategies to limit the problem under study. Thus, it is proposed to link the level of teachers’ remuneration with the results of their students (Fryer et al., 2018). This approach showed particular effectiveness in elementary school. However, this initiative should be treated carefully and thoughtfully, as it largely depends on the level of teacher training and the state of the educational system.
In conclusion, this work considered the principal agency theory and the theoretical framework based on monetary incentives, which can help in the study and solution of the problem of insufficient remuneration of teachers. The literary review showed that both approaches could become practical tools for examining the causes of the educational issue. Moreover, an assumption was made as to how financial motivation can be implemented to solve the deduced problem.
References
Cheng, Q., Wang, Y., & Song, X. (2019). Study on principal-agent theory. In 2019 Scientific Conference on Management, Education and Psychology. The Academy of Engineering and Education.
Eren, O. (2019). Teacher incentives and student achievement: Evidence from an Advancement Program. Journal of Policy Analysis and Management, 38(4), 867-890. Web.
Fryer, R. G., Levitt, S. D., List, J., & Sadoff, S. (2018). Enhancing the efficacy of teacher incentives through framing: A field experiment. NBER Working Papers, 18237.
Kozlowski, K. P., & Lauen, D. L. (2019). Understanding teacher pay for performance: Flawed assumptions and disappointing results. Teachers College Record, 121(2), 1-38. Web.
Long, C. (2019). Average teacher salary down 4.5% over past decade. NEA News. Web.
Mallah, F. (2019). A Theoretical Framework for Teacher Incentives: Monetary, Social and Vision-Based. Journal of Education and Learning, 8(1), 29-42.
Pham, L. D., Nguyen, T. D., & Springer, M. G. (2021). Teacher merit pay: A meta-analysis. American Educational Research Journal, 58(3), 527-566.
Yallew, A. T., Juusola, H., Ahmad, I., & Törmälä, S. (2018). Exploring principal-agent theory in higher education research. Working Papers in Higher Education Studies, 3, 80-98.