I believe that in a minority or sectors/situations they can be positive, but so often they do not achieve what they were supposedly designed to achieve.
Halle-bloody-fucking-lujan! A voice of reason! I'm so sick to death of the 'everyone else has to suffer this pile of shit at work so why shouldn't teachers?'
Well, I spend so much time every year listening to my non-teacher friends bitching about their performance related pay, so why should I suddenly think it's such a great and fair system in teaching? I defy anyone to go through their entire career without thinking the performance related pay system has done them over without lube on several occasions.
DH had one year when the average inflationary pay award was announced as 2.6%. He got he dreaded "You have exceeded all your targets but you have been red-circled as you are at the top of your pay grade so will have no pay rise at all".
I worked for a FMCG company who introduced a 'fair and objective' system based on achievement of objectives. My numerical score said that I'd categorically either achieved or exceeded all my objectives but because my 'face didn't fit' I got Needs Improvement. Lucky for me I got to walk away with a bit fat payoff (which paid my way through PGCE) and the company announced the factory was closing three months after I'd left.
Performance related pay is a deeply flawed system wherever it is implemented and is no better or worse than automatic pay progression. It always has to have a degree of human intervention which means it is always open to fudging based on the whims of a manager.
Let's face it though - teaching just isn't an attractive profession in any way, shape or form at the moment.