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HRM and Remuneration SystemsRewards&methods of rewardnThe wage-work bargain.nCentral to employment relationship®ulationnOffer Acceptance-Consideration(incentive package)nunilateral or bargained?Buyer-seller power?nTailored or standardised?Individual or collective?nThe Cash NexusnEnid Mumfords contractsnRewards systems vs.Payroll admin.Pay-offs in the Employer-Employee Relationship n Knowledge&skill Er wants know-how,competence,experience.Ee wants to be put to good use&be developedn Efficiency/rewards Er wants performance&quality output.Ee wants equity,felt-fair rewards&opportunityn Ethical-values&commitments in right/wrong behaviourn PsychologicalMgt&co-workers want committed,loyal,motivated people.Individual wants satisfactionn Task structure-work within policy,procedure&technical constraints.Jobs,work arrangements(Mumford 1972)Keep-TIssues in pay policy,package&administrationnIntegrate Ee.performance with competitive advantage?nSmooth,reliable,low risk,transactions.Handing over the cash:personal or separated?nTraditional methods prevail.Where are the innovations?nPay policy-closet management?nHRM policy-maker,practitioner&academic interests?nRewards central to HRM models?nTheory&practice.Partial?Coherent?robust?nThin,incomplete picture and treatment?Tixylix Prescription(read the label)n Proposition:Reward system X will benefit organisational efficiency&effectivenessn EmployerOur policy should properly reward&motivate staff to contribute effort,expertise&commitment in line with organisational objectives.Our reward system must be right for the firm(pay bill&administration)&employees(attracting,motivating,retaining the right staff).n Employee(felt-fair,equity,expectancy theory)“the reward system should reflect my work&its demands on me,my value(for my kind of work)within labour market(internal/xternal).It should satisfy me when comparing my rewards with what others get for the same kind of work”.Context and Pressures nPorter-product innovation+cost leadershipnlow labour costs vs.recruitment,retention&motivationnRate for the job job class&work technologynLocation in low wage economiesncommitment&flexibilitynConvergence:white/blue,office/factory competenciesnTeam-working,flexibility,harmonisationnRegional market forces (the City,Leeds,Delhi).nLabour mobility(between occupations+Europe)nSalary leagues (MNCs&Euro/global manager)Examining Reward System Concepts and PracticesnPatterns and trends in policy&practice?nPropositions and Assumptions?nTests for the propositions/hypotheses?nCompeting concepts and perceptions?nVeracity of the imperatives?Determinism,Rhetoric and VerificationDebate:determinism:individual performance payPay individual/group performancePRP paradigm shift rhetoric vs.practice sea change or traditional ad hoceryextent of change(coverage&operation)innovation-for the few or the many?normative assumptions in the use of reward systemscentral to or marginal in SHRM?Under utilised&sophisticated mechanisms or crude,problematic tools to drive performance?Evidence fornreward system developments reinforcing organisational transformationsnSome new,distinctive features in policy&practice.nDo the“claims”-deliver?nAre our concepts of appropriate or viable pay rigorous enough?nWhat are these perceptions and what hold do they have?Payment Systems 1945 2000nDistinctive features?nHow have systems changed over the years?nCurrent trends?nA Holy Grail quest for a perfect pay system?nFads,fashions&cycles.nSince 1945nTraditional systems have evolved slowlynSome innovative and marginal changesnNew solutions associated with STEEPLE.Design Features of Pay systemsnMonetarynnot related to performance-timenperformance-linkednOutput,%,PRP,merit pay,commission,skill-basedncollective-output schemes nCorporate performance related bonuses+profit participationnMonetary-equivalentnCar,phone,holidays,loans,accommodation,fees,vouchersnDeferred(promotion,pension)nNon-monetary-status,recognition,plaques,empowermentnIntrinsic benefitsnNegatives pressure,penalties,harassment side-lining,dismissal Sam Eilon on Reward SchemesEilon,S,1992,Management practice&mispractice,Routledge.http:/sol.brunel.ac.uk/jarvis/bola/rewards/rewards.htmlintegral to managerial planning and control processes.should not be considered in isolation.Rules guide,but note the contradictions&dilemmas.Rigid implementation may have awkward consequences.There is more to a simple carrot&stick,effort-reward relationship.Eilons Rules of Thumb nIncentives-not confined to monetary-see non-monetary.nAttainments rewards:levels&rewards should be clear.nThe actual effort/responsibility link?nIndividual goals/attainment&dept/orgn.GoalsnIndividual attainment vs.what others must achieve?nRewards for helping others-support staff.nRe-structuring:jeopardise reward possibilities?nProducts&working practices change?Future pay prospects should not undermine what Ee has already achieved.nBenefit in penalising undesirable results or behaviour?nPeriodic Reviews-scheme objectives must remain valid.Components in pay by time schemesnsimple to administerndefined time F/T,P/T,mixed-time,casual.nNo time,no pay?Hourly,weekly,annualnPremiums 1.5T,2T,nights,“door knob syndrome”nControl mechanisms&tools clocks,supervision,time sheets?nJob evaluation-evaluate the job not the person doing itnFlexi-time schemesnSupervision&performancen“When the cats away”?nAssume trust,confidence,competence&diligencenOff-site working.Is actual presence necessary?nWork for Er in Er time versus.in your time?nAssume fidelity,care,good-will,cooperationnLife sentence?Pay for performance systems employee share ownershipmerit pay skill-based payinputmeasured time workteam bonusprofit sharinggain sharingpieceworkmeasured time workcommissionindividual target PRPoutputGroupIndividualPerformance measures(tangible&quantifiable)Job definition,MbO,method&work study.Information and control.PRP,merit pay,skill-based schemesnInformation requirementsnManager appraisal and judgementMeasurable,targeted PRP(narrowly defined).Pay linked tonconcrete individual or group targets.nIndividual merit(behavioural)traits:e.g.flexibility,cooperation,punctuality.nStaff appraisal rating criteria.nSkill,physical&mental capabilities.Automatic on qualification?Performance-related?nAnnual increments?Collective-output schemesnwork group,plant or company performance -bonus(fixed or%of standard pay)nautomatic for achievement of targeted output,profit,sales or added valuenGenerally do not require employee appraisal or managerial discretion(?.not to pay.?).nScheme formula:complexity,visibility of targets achieved.Employee share ownership schemesnSenior manager-ownersnExtension of ownership&participation pay?nSocial engineering assumptionsnRewards from capital gains÷nds long termnThe small print share prices can go up or down!nDependent upon capital being available-to buy shares for employees.Lupton&Gowler:Selecting a payment system(1969)nAnalytical framework for “selecting”a payment systemncontingency approach(normative&rational framework)Proposition:choices can&should be based upon nrecognition of managerial goals nmanager appreciation of internal&external circumstances.BUT radical choice or do P-systems merely evolve?Traditional schemes.vs.what alternatives?Managerial&employee preferences?Prevailing expectations.What trends are discernable?Pay scheme development-contingency and choice nProposition:design the P-system to fit the goal/circumstances.True?How?Evidence?nmanagerial response to internal&external demands.nWhy these designs?Reactive or proactive?nHow&how frequently?Who is influential in design?Institutional promotion&reform of pay determination.n(informed)prescriptions&recommendationsNBPI,CIR,ACAS,CBI,IoD,IPD,TUs,DfEE.nACAS on appropriateness a payment system has a better chance of success if it is carefully selected&shaped to meet the specific needs of the organization&work group in which it is to apply.Pay developmentspiecework schemes 1945-1960 nstimulated by labour&product market pressures.nwell suited to high-volume,low-cost productionnwhat were the problemsnItemisation&local bargaining?nGold-bricking?productivity bargaining 1960s to mid-1980s search for control&societal justification(incomes policy)Manning,demarcation&craft flexibility.Job enlargement&work restructuring.Participation in EquityPerformance-related pay 1980s-to date Governmental interventionnIncomes policies national and public sector controlsnPrivatisation&deregulation of labour marketnEmployee share ownershipnNational minimum wage&48-hour rulingnEqual pay&equal opportunitiesnTaxationnCastigation of high executive pay but no regulation.HRM models?nProposition:Reward.a key policy-making lever to achieveCommitmentFlexibilityQualityStrategic integration.Links between rewards&such goals are not new.But petitive advantage&the argument for strategic integration.Is there evidence?Tight and Loose ViewsLooserresponses are more ad hoc,reactive&opportunistic.Tightn coherent,managerial rationale exists-reward system selection nsensitive to business circumstances&needsnrewards underpin broader business plansndiversification&product life cycle strategies ncompany re-structuring,flexibility&culture changensupport other HRM interventions.ButnAre the efforts so tightly articulated?nTheory+consistency in application&outcome.Have organisations changed their approach to pay?n individual performance-related or merit-based pay schemesn individualisation of pay-public&private-filters down the hierarchy.ACAS(1985-88)40%modify P-systems closer pay-performance link.By end 19924,000 approved profit-related pay schemes(1 million employees)2000 employee share ownership(3 million)WIRS 1990merit pay more prevalent at senior manager levelevidence in admin.(33%)+skilled manual(25%)Are these deep,structural,qualitative,strategic changes?Pay and HRM goals:commitment,flexibility&quality.nfeatures and contexts?npotential tensions in the linkages?nthe dynamics for change?Reward&commitmentnlong history,on-going management concern nmotivation&performance,incentives to strengthen identification&loyalty Taylor,McGregor&Herzbergnweaken competing(often collective)interestsnHalt the dilution of managerial prerogatives.nPEST conditions help managerial recoverynNew participation e.g.share ownership&profit-sharingnstatutory support But are the schemes effective?nResearch into participation&staff attitudes returns ambiguous results.Some positive impact.with doubtsnProblem:Isolating the participation variable&corporate performance.Other involvement techniques in the change programmes.Blinder(USA study)the way workers are treated may boost productivity more than the way they are paid.Visible,meaningful ways to lock-in the individual.nDialogue&bonding.nPerformance appraisal“forces”direct communicationnStrengthen line manager employee relationshipnIndividualise the effort-reward bargainnNo external 3rd party.Undermine collective bargaining?Profit&share initiatives reduce TU orientation.PRP schemes-less in evidence where TUs are strong.De-recognition?Reports onnBritish Rail&TSSA-10,000 middle&junior managersnPRP&individual senior manager contracts -a hint of TU de-recognition(Thames Water,Amersham&BT).nNUT&PRP-related teacher appraisal nSome TU say in PRP operation.nagree performance criteriannegotiate size of kitty vs.its distributionnrepresenting appeals against appraisal&pay judgementsndisclosure of information via Central Arbitration Committee&monitor system fairnessnA few unfair discrimination cases(sex/race&merit-pay)PRP vs.Commitment-compatibility in practiceIndividual PRP rewards narrow&short-term achievement?undermine group cooperation&longer-term goals?Corporate financial constraints+evidencen weak results may limit profit-sharing pay-outs&bonusesn Disappointment -disaffectionn Procedural injustice subjectivity&inconsistency disaffectionindividual PRP:more in tune with hard HRM.n employee appraisal-a judgmental processn penalties from failure to meet standards.n management control over the pay bill?n Individual deals across-the-board,cost-of-living increases.Compare with soft developmental HRM Reward&employee flexibility in tasks/duties n perennial managerial goal.n Manager prerogative to distribute work“rationally&flexibility”?n Countervailing employee pressure to structure the use of labourn Reasonableness under contract(not in my job description)n the Unionn custom&practice,(worker culture)Job-evaluated grading structures facilitate flexibility in the performance of tasks.True or false?Job-evaluated grading structuresLarge mechanistic,bureaucracies.Principlesestablish a internally consistent set of job ratesevaluate the job not the person doing it.ensure relativities:internal equity.Systematically compare&measure different jobs within the same organizationIf individual performance merits it-PROMOTE.JE grading structures lack sensitivity to external market pressures.nSTEEPLE pressuresnflexibility imperatives intensifyReward structure ossificationnCivil Service&local authorities-pay supplements for shortage jobs(response to labour market).Can unwieldy grading structures&demarcations cope with njob redesign,technological change&new production methods?nteam or cellular working&flexibility across skills&tasks?nchanging organizations-lean,flexible structuresndynamic circumstances-stress adaptive performance beyond rigid,ossified job descriptions&evaluated grades.Grow,develop,perform!Out-grow job&be promoted!Job evaluation not abandoned.WIRS 1980-90-workplaces with J.Eval schemes rise from 21-26%Countervailing pressure-equal pay legislation(evaluated structures)Incompatibility of job-evaluation with PRP?Modify the structures.How?Base grades on generic job descriptions&broad bands(flexibility of task performance).Move from grades&fixed increments,to min-max ranges&give scope for individual performance.Growth structures-formal career paths&criteria.nprofessional and technical job familiesnachievement of qualifications&competence standards(cf.promotion only when vacancies arise).nharmonise manual&white-collar terms&conditionsnmulti-skillingnPromotion route for the good technician,nurse,scientist or engineer not because you are a manager.The nursing consultantThe technical consultant(programmer)A surfeit of richesnhigher Ee expectations not all can be fulfilled.npay for unwanted skills?Flexibility we dont need.nextended grades,growth&skills acquisition structures.Managers over-estimate&dont use.nPirelli AberdarenLow staff turnover&local unemploymentnSuspend the skill acquisition schemePRP may inhibit encourage flexibility.npersonalized targets can encourage a rigid,narrow focus on short-term objectives.nLess attention to daily tasks than target sheetsnEe as a labour contractor,performance judged on contract measures vs.wider performance criteria(future&potential).nif targets are uncertain,fixed pay contracts restrict the scope for flexibility&discretion.Reward&qualityn quality cost or volume todays imperativen leaner production-combine speed+quality maintenancen TQM initiatives raise questions about the structure&administration of reward systems.n Schonberger(1992)Once reward&recognition were reducible to little more than two monetary numbers,wages&benefits.Since TQM is a continuous push for improvement,the management system must itself continuously shift,prod,encourage,praise&reward(p.21).n Implications for nthe range of rewards availablenfrequency of application the need to reward continuallynmanagement skills.Rewarding continuously?New management skills.nEstablishing valid&viable performance criterianJudging if targets have been met-assessing the relationship between assessed performance&rewardsnInterpersonal skills:coaching,counselling&interviewing.PieceworknSimple,direct,mechanistic pay-output link.nControls motivation&productivity.nCriticism of piecework schemes but was there a positive link between piecework&productivity?nPremature rejection of economic man?A performance management backlashProposition:Managers can ensure high performance by assessing an employee for pay purposes once a year,versusProposition:A closer,ongoing management-employee relationship is more capable of“motivating performance”.A shift from M-by control to M-by leadership.Leaders mustnensure that the broad picture is known,understoodnrelate this to measurable personal&team objectivesnaid job satisfaction through feedback-performance&objectives.ndiscriminate in the reward given standard vs.exceptionalnunderstand their accountability for people.nsend out clear quality&performance messages.Based on Storeys report of NatWest Warningnwithout requisite skills,P-system may become discredited.nHRM guidance to line managers on scheme operationntight definitions of performance objectivesnassessed performance levelsnthe distribution of markingsnstimulates resentment over personnel intrusionPay and the pursuit of qualitynwe take quality seriously by setting quality-related targets and creating a pay-quality linknSymbolism and credibility.nUS Car company case:Employees unconvinced of company commitment to quality.Dept.managers set targets(with bonuses)for Q-related group activities.nRank Xerox:European executive performance partly linked to customer satisfaction&loyalty targets.Bonuses:up to 30%of salary.Linking pay to behaviour traits related to quality.n Pay tied to treatment of internal&external consumers-behaviours which satisfy consumer needs.Hay Consultancy 3-category rating systemnindividuals evaluated for base pay on such variables as nability to communicatencustomer focus critical to TQM effortnability to work in a team.nManagers rated onnemployee developmentngroup productivity&leadership.Variable pay based on not meeting customer expectationsmeeting themexceeding themCo-wide indicators of Q-performance linked to bonuses.nElida Gibbs(non-management employees)Bonus related to sales turnover&customer service targets.ndifficult to establish viable Q-measures.nresource hungry QA administration and surveying Many organizations have selected systems relating pay to indicators of individual group or company performanceRewards&Strategic Integration:Distinctive Approach?n Proposition:UK rewards systems have been selected by rationale analysis systematic evaluation of pay alternatives.n An over-simplification?n complexities&irrationalities of managerial decision-makingHow do we test this?n Little research into evolution of rewards systems&related decision-making processes.n Suspicion:management rarely considers P-system as a wholen changes driven by short-term reaction to local labour market pressures.Case reports of rewards-business&culture change.n Selectivity of case studies:post hoc,rationalization&justificationn down-play difficulties&exaggerate benefits.But n Finance sector&privatisation(Post Office,BT,public utilities)nDeregulation&competitionnwider services-more marketing and product innovation Success depends on changing employee attitudes&valuesshift in traditional,managerial culturesRewards(esp.PRP)are central to reinforce performance culturenot just revised remuneration but cultural changebreak down paternalism&bureaucratic centralism谢谢观看/欢迎下载BY FAITH I MEAN A VISION OF GOOD ONE CHERISHES AND THE ENTHUSIASM THAT PUSHES ONE TO SEEK ITS FULFILLMENT REGARDLESS OF OBSTACLES.BY FAITH I BY FAITH
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