INTRODUCTION Happy Living is nothing more than living a normal life free from undue pressures, problems and

tensions. A large income is the best recipe for happiness I ever heard of," the novelist Jane Austen once said. The introduction of 6th Pay Scale has made the faculties life more happy by improving their standard of living, expenditure etc. leading to a luxurious living. Since the purchasing power of money has eroded and the cost of living has increased due to inflation the revision of pay scale leading to increase in wages has helped to support the happy living of employees. At the same time the increase in wages will also bring in other issues in private sectors like willingness of management to implement the pay revision, their own aspects in revising pay scale or increase in expectation with increase in pay etc. Implementation of 6th pay has become a nightmare for the

management as well as the faculties. Management is in a perplexity whether to implement 6th pay or not? If implementing how to frame the system? How to justify the pay scale? How to make it transparent? How to evaluate the faculty performance? How to make sure the system satisfaction? The concept of service being Good Enough may not be adequate or satisfactory and may be replaced by Excellence in implementing 6th pay scale. Performance-based pay system can be adopted to motivate employees to perform their best and to achieve system satisfaction with reference to management as well as faculties. To ensure the system satisfaction there is a need of transparent and efficient mechanism for the implementation of 6th pay in all the institutions which has lead us to write a

TOTAL QUALITY MANAGEMENT TQM is an integrative philosophy of management for continuously improving the quality of products and processes. TQM in an educational institution functions on the premise that the quality of the education is the responsibility of everyone who is involved with the teaching learning process offered by an organization. In other words, TQM capitalizes on the involvement of management, faculties and even students, in order to meet or exceed customer expectations. Total Quality Management (TQM) in Education is a timely tool, which must be clearly understood, adopted and implemented as soon as possible.

SIX SIGMA Six Sigma is a business management strategy originally developed by Motorola, USA in 1986. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in process. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization. The term "six sigma process" comes from the notion that if one has six standard deviations between the process mean and the nearest specification limit, as shown in the graph, practically no items will fail to meet specifications. This is based on the calculation method employed in process capability studies. Capability studies measure the number of standard deviations between the process mean and the nearest specification limit in sigma units. As process standard deviation goes up, or the mean of the process moves away from the center of the tolerance, fewer standard deviations will fit between the mean and the nearest specification limit, decreasing the sigma number and increasing the likelihood of items outside specification.

PERFORMANCE-BASED PAY AS A MOTIVATOR Motivation is the driving force by which humans achieve their goals. Faculties are been motivated to improve the quality and quantity of their work in response to Performance Pay. Lawler in his Expectancy theory (1994) discussed the conditions regarding the effectiveness of an incentive plan and how it is related to performance. One of his assumptions is that motivation is most effective when employees perceive that certain conditions exist for merit pay to motivate. These conditions include: (i) employees belief that their pay is tied to performance; (ii) employees belief that extrinsic rewards are important to their compensation; (iii) employees perception of a certain amount of incentive pay as large enough to impact their performance; (iv) employees belief that the performance measure reflects their effort and the evaluation process is fair; and (v) employees belief that there is a high level of trust between the administration and the employees. A well-designed performance-related pay scheme would have the following elements: Goal setting Communication and understanding of Goals Consideration of performance against Goals Translation of evaluation into performance rating A link between ratings and the determination of pay

GOAL SETTING Goal setting involves establishing specific, measurable, achievable, realistic and time-targeted objectives. Work on the theory of goal-setting suggests

that it's an effective tool for making progress by ensuring that participants in a group with a common goal are clearly aware of what is expected from them if an objective is to be achieved. On a personal level, setting goals is a process that allows people to specify then work towards their own objectives most commonly with financial or career-based goals. Faculty and learners both need to think about goal setting. For faculty, setting goals for each teaching encounter helps you get clear about your expectations and priorities for the session. For learners, specific goals help guide them to where they want to focus during the skill practice encounter. In this way, goal setting is both the starting point for all teaching encounters and also the map that points the way for future work. IMPLEMENTATION ISSUES There are several problems in implementing performance-related pay. There may be disputes about how performance is measured and whether an employee has done enough to be rewarded. Rewarding employees individually does very little to encourage teamwork. It may encourage unhealthy rivalry between employees. There is much doubt about whether performance-related pay actually does anything to motivate employees. This may be because the performance element is usually only a small percentage of total pay