The idea the head wants to introduce--pay for performance (or competition) is hard to benchmark for teachers. There is little evidence that it produces better performance. What matters is increasing the standards (ie, competitive hiring and no tenure) which makes it possible to retain good salaries and ensure good outputs (ie, students with good test scores and have achieved the desired skill levels set by the schools). BTW, I would not introduce the changes unless you recieve a top position as manager since it seems that he/she is attempting to avoid responsiblity for the policy change. I'm not exactly sure what your options are, but this is my iniital cut at a response.