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If people are being paid for non-performance then the burden is on management to turn that situation around. Non-performance is more a factor of management than non-management. If management is not coaching, monitoring and being what a great supervisor should be then there is anarchy within the ranks, thus a culture of non-performance. When there are a number of individuals not performing, management needs to be counseled first and then perhaps there might be consideration to form a new management team. It is the responsibility of management to model high-level performance and to exact accountability.
When a classroom of students fail, it is more about the teacher’s ability to engage students than it is about the students’ ability. By the same token, poor performers on the job is an indication of management’s inability to manage, guide, direct, motivate, influence and lead. Everybody should be paid based on performance. Should I be paid more because I perform better? Perhaps. Afterall, people do have different levels of ability. The notion of addressing pay for performance is not a good strategy or statement. Everybody should be paid for performance. Those individuals who perform at an exceptional level, most important ,displaying  the fair and equitable treatment of people should be duly rewarded.
However, when people start to work on any job they are entering into a contractual agreement. I am to provide said number and quality of tasks for an agreed upon salary and other terms so outlined. There is not much to be said. The idea that Federal employees should be paid for performance is nearly insulting. If you are now going to pay me for performance what were you paying me for all the years of service I put in prior. The notion also gives the Federal workforce the label of being non-performers. There are individuals at every level in government and private industry who have not been motivated to do their best.  Supervisors and managers need to put boots on the ground by investing in growing their employees and not destroying them by the inappropriate use of power and labels.
P. S. Always Remember to Share What You Know.
Dianna Tafazoli