A university recently instituted a “Teacher Incentive Program” (TIP) for its faculty.

Basically, faculty committees within each of the university’s colleges were told to award $5000 raises (not bonuses) to about 40 percent of their faculty members based on how good a job they did in teaching undergraduates, and how many of these students they taught per year. What are the potential advantages and pitfalls of such an incentive program? How well do you think it was accepted by the faculty? Do you think that it had the desired effect?