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Describe how a rank-order tournament incentive pay system for teachers works.

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Rank order tournament incentive is the only scaled-up incentive program for teachers. Here the incentive scheme is introduced in all schools both winning and losing. It is based on the notion that how well teachers do relative to others. Sometimes teachers are rewarded on the basis of their performance relative to other teachers of the same subjects. The results of teacher’s effort are measured on the basis of students achievement decided by the pass rate and the average score. Thus Rank-order tournaments award teachers for performing better than a certain percentage of other teachers on the metric

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