hrm和报酬系统491

1、Remuneration Systems HRM and Remuneration Systems Chris Jarvis 1 Remuneration Systems Rewards & methods of reward ?The wage-work bargain. Central to employment relationship & regulation ? ? Offer Acceptance - Consideration (incentive package) ? unilateral or bargained? Buyer-seller power? ? Tailored

2、 or standardised? Individual or collective? The Cash Nexus Enid Mumfords contracts Rewards systems vs. Payroll admin. 2 ? ? ? Chris Jarvis Remuneration Systems Pay-offs in the Employer-Employee Relationship ? (Mumford 1972) Knowledge & skill Er wants know-how, competence, experience. ? Ee wants to b

3、e put to good use & be developed Efficiency/rewards Er wants performance & quality output. Ee wants equity, felt- ? fair rewards & opportunity ? Ethical - values & commitments in right/wrong behaviour Psychological Mgt & co-workers want committed, loyal, motivated people. ? Individual wants satisfac

4、tion Task structure - work within policy, procedure & technical constraints. Jobs, work arrangements Keep-T 3 Chris Jarvis Remuneration Systems Issues in pay policy, package & administration ?Integrate Ee. performance with competitive advantage? ?Smooth, reliable, low risk, transactions. Handing ove

5、r the cash: personal or separated? Traditional methods prevail. Where are the innovations? Pay policy - closet management? HRM policy-maker, practitioner & academic interests? ? ? Rewards central to HRM models? ? Theory & practice. Partial? Coherent? robust? Thin, incomplete picture and treatment? 4

6、 ? ? ? Chris Jarvis Remuneration Systems Tixylix Prescription (read the label) ?Proposition: ? ? Reward system X will benefit organisational efficiency & effectiveness Employer Our policy should properly reward & motivate staff to contribute effort, expertise & commitment in line with organisational

7、 objectives. Our reward system must be right for the firm (pay bill & administration) & employees (attracting, motivating, retaining the right staff). 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

8、 labour market (internal/xternal). It should satisfy me when comparing my rewards with what others get for the same kind of work” . 5 Chris Jarvis Remuneration Systems Context and Pressures ? ? Porter - product innovation + cost leadership low labour costs vs. recruitment, retention & ? motivation ?

9、 Rate for the job job class & work technology ? Location in low wage economies ? commitment & flexibility Convergence: white/blue, office/factory ? competencies ? Team-working, flexibility, harmonisation ? Regional market forces (the City, Leeds, Delhi). ? Labour mobility (between occupations + Euro

10、pe) Salary leagues (MNCs & Euro/global manager) 6 Chris Jarvis Remuneration Systems Examining Reward System Concepts and Practices ?Patterns and trends in policy & practice? Propositions and Assumptions? Tests for the propositions/hypotheses? Competing concepts and perceptions? Veracity of the imper

11、atives? 7 ? ? ? ? Chris Jarvis Remuneration Systems Determinism, Rhetoric and Verification Under utilised & sophisticated mechanisms or Debate: crude, problematic tools to drive performance? determinism: ?individual performance pay ?Pay individual/group performance PRP paradigm shift rhetoric vs. pr

12、actice ?normative assumptions in the use of reward systems ?central to or marginal in SHRM? Chris Jarvis ? sea change or traditional ad hocery ?extent of change (coverage & operation) ?innovation - for the few or the many? 8 Remuneration Systems Evidence for ?reward system developments reinforcing o

13、rganisational transformations ?Some new, distinctive features in policy & practice. ?Do the “ claims” - deliver? ?Are our concepts of appropriate or viable pay rigorous enough? ?What are these perceptions and what hold do they have? Chris Jarvis 9 Remuneration Systems Payment Systems 1945 2000 ? ? D

14、istinctive features? ? How have systems changed over the years? ? Current trends? ? A Holy Grail quest for a perfect pay system? Fads, fashions & cycles. ? Since 1945 ? ? Traditional systems have evolved slowly ? Some innovative and marginal changes New solutions associated with STEEPLE. Chris Jarvi

15、s 10 Remuneration Systems Design Features of Pay systems ?Monetary ? ? not related to performance - time performance-linked ? ? Output, %, PRP, merit pay, commission, skill-based ? collective-output schemes Corporate performance related bonuses + profit ? participation Monetary-equivalent ? Car, pho

16、ne, holidays, loans, accommodation, fees, vouchers ? Deferred (promotion, pension) ? Non-monetary - status, recognition, plaques, empowerment ? Intrinsic benefits Negatives pressure, penalties, harassment side-lining, dismissal 11 Chris Jarvis Remuneration Systems Sam Eilon on Reward Schemes Eilon,

17、S, 1992, Management practice & mispractice, Routledge. http:/sol.brunel.ac.uk/jarvis/bola/rewards/rewards.html integral to managerial planning and control processes. should not be considered in isolation. Rules guide, but note the contradictions & dilemmas . Rigid implementation may have awkward con

18、sequences. There is more to a simple carrot & stick, effort-reward relationship. ? ? ? ? ? Chris Jarvis 12 Remuneration Systems Eilons Rules of Thumb ? ? Incentives - not confined to monetary - see non-monetary. ? Attainments rewards: levels & rewards should be clear. ? The actual effort/responsibil

19、ity link? ? Individual goals/attainment & dept/orgn. Goals ? Individual attainment vs. what others must achieve? ? Rewards for helping others - support staff. ? Re-structuring: jeopardise reward possibilities? Products & working practices change? Future pay prospects ? should not undermine what Ee h

20、as already achieved. ? Benefit in penalising undesirable results or behaviour? Periodic Reviews - scheme objectives must remain valid. Chris Jarvis 13 Remuneration Systems Components in pay by time schemes ?simple to administer ?Control mechanisms & tools clocks, supervision, time sheets? ?Job evalu

21、ation - evaluate the job not the person doing it ?Flexi-time schemes ?Supervision & performance ?defined time F/T, P/T, mixed-time, casual . ?No time, no pay? Hourly, weekly, annual ?Premiums 1.5T, 2T, nights, “ door knob syndrome” ?“ When the cats away” ? ?Assume trust, confidence, competence & dil

22、igence ?Off-site working. Is actual presence necessary? r r ?Work for E in E time versus .in your time? ?Assume fidelity, care, good-will, cooperation ?Life sentence? Chris Jarvis 14 Remuneration Systems Pay for performance systems Performance measures (tangible & quantifiable) Individual piecework

23、measured time work commission individual target PRP merit pay skill-based pay Group measured time work team bonus profit sharing gain sharing employee share ownership output input Job definition, MbO, method & work study. Information and control. Chris Jarvis 15 Remuneration Systems PRP, merit pay,

24、skill-based schemes ? ? Information requirements Manager appraisal and judgement Measurable, targeted PRP (narrowly defined). Pay linked to ? ? concrete individual or group targets. Individual merit (behavioural) traits: e.g. flexibility, ? cooperation, punctuality. ? Staff appraisal rating criteria

25、. Skill, physical & mental capabilities. Automatic on ? qualification? Performance-related? Annual increments? Chris Jarvis 16 Remuneration Systems Collective-output schemes ?work group, plant or company performance - bonus (fixed or % of standard pay) ?automatic for achievement of targeted output,

26、profit, sales or added value ?Generally do not require employee appraisal or managerial discretion (? . not to pay .?). ?Scheme formula: complexity, visibility of targets achieved. Chris Jarvis 17 Remuneration Systems Employee share ownership schemes ?Senior manager-owners ?Extension of ownership &

27、participation pay? ?Social engineering assumptions ?Rewards from capital gains & dividends long term ?The small print share prices can go up or down! ?Dependent upon capital being available - to buy shares for employees. Chris Jarvis 18 Remuneration Systems Lupton & Gowler: Selecting a payment syste

28、m (1969) ? ? Analytical framework for “ selecting” a payment system contingency approach (normative & rational framework) Proposition: ? choices can & should be based upon ? recognition of managerial goals manager appreciation of internal & external circumstances. ? BUT radical choice or do P-system

29、s merely evolve? ? ? Traditional schemes . vs.what alternatives? Managerial & employee preferences? Prevailing ? expectations. What trends are discernable? Chris Jarvis 19 Remuneration Systems Pay scheme development - contingency and choice ?Proposition: design the P-system to fit the ? goal/circums

30、tances. True? How? Evidence? managerial response to internal & external demands. ? ? Why these designs? Reactive or proactive? How & how frequently? Who is influential in design? Institutional promotion & reform of pay determination. ?(informed) prescriptions & recommendations ? NBPI, CIR, ACAS, CBI

31、, IoD, IPD, TUs, DfEE. ACAS 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. 20 Chris Jarvis Remuneration Systems Pay developments piecework schemes 1945-1960 ?

32、 ? stimulated by labour & product market pressures. ? well suited to high-volume, low-cost production what were the problems ? ? Itemisation & local bargaining? Gold-bricking? productivity bargaining 1960s to mid-1980s ? ? search for control & societal justification (incomes policy) ? Manning, demar

33、cation & craft flexibility. Job enlargement & work restructuring. Participation in Equity Performance-related pay 1980s - to date 21 Chris Jarvis Remuneration Systems Governmental intervention ? ? Incomes policies national and public sector controls ? Privatisation & deregulation of labour market ?

34、Employee share ownership ? National minimum wage & 48-hour ruling ? Equal pay & equal opportunities ? Taxation Castigation of high executive pay but no regulation. 22 Chris Jarvis Remuneration Systems HRM models? ?Proposition: Reward . a key policy-making lever to achieve ? ? Commitment ? Flexibilit

35、y ? Quality Strategic integration. ? Links between rewards & such goals are not new. But now .competitive advantage & the argument for strategic integration. Is there evidence? 23 Chris Jarvis Remuneration Systems Tight and Loose Views Looser ?responses are more ad hoc, reactive & opportunistic. Tig

36、ht ?coherent, managerial rationale exists - reward system selection ? ? sensitive to business circumstances & needs rewards underpin broader business plans ? ? ? diversification & product life cycle strategies company re-structuring, flexibility & culture change support other HRM interventions. But

37、? ? Are the efforts so tightly articulated? Theory + consistency in application & outcome. 24 Chris Jarvis Remuneration Systems Have organisations changed their approach to pay? ?individual performance-related or merit-based pay schemes ?individualisation of pay - public & private - filters down the

38、 hierarchy. ACAS (1985-88) 40% modify P-systems closer pay-performance link. By end 1992 4,000 approved profit-related pay schemes (1 million employees) 2000 employee share ownership (3 million) WIRS 1990 merit pay more prevalent at senior manager level evidence in admin. (33%) + skilled manual (25%

39、) Are these deep, structural, qualitative, strategic changes? Chris Jarvis 25 Remuneration Systems Pay and HRM goals: commitment, flexibility & quality. ?features and contexts? ? potential tensions in the linkages ? ? the dynamics for change? 26 Chris Jarvis Remuneration Systems Reward & commitment

40、? ? long history, on-going management concern motivation & performance, incentives to strengthen identification & loyalty Taylor, McGregor & Herzberg ? ? weaken competing (often collective) interests ? Halt the dilution of managerial prerogatives. ? PEST conditions help managerial recovery ? New par

41、ticipation e.g. share ownership & profit-sharing statutory support 27 Chris Jarvis Remuneration Systems But are the schemes effective? ?Research into participation & staff attitudes returns ambiguous results. Some positive impact . with doubts ? Problem: Isolating the participation variable & corpor

42、ate 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. 28 Chris Jarvis Remuneration Systems Visible, meaningful ways to lock-in the individual. ? ? Dialogue & bonding. ? Performan

43、ce appraisal “ forces” direct communication ? Strengthen line manager employee relationship ? Individualise the effort-reward bargain No external 3rd party. Undermine collective bargaining? ? ? Profit & share initiatives reduce TU orientation. ? PRP schemes - less in evidence where TUs are strong. D

44、e-recognition? 29 Chris Jarvis Remuneration Systems Reports on ?British Rail & TSSA - 10,000 middle & junior managers ?PRP & individual senior manager contracts - a hint of TU de- recognition (Thames Water, Amersham & BT). ?NUT & PRP-related teacher appraisal ?Some TU say in PRP operation. ?agree pe

45、rformance criteria ?negotiate size of kitty vs. its distribution ?representing appeals against appraisal & pay judgements ?disclosure of information via Central Arbitration Committee & monitor system fairness ?A few unfair discrimination cases (sex/race & merit-pay) Chris Jarvis 30 Remuneration Syst

46、ems PRP vs. Commitment - compatibility in practice Individual PRP rewards narrow & short-term achievement? undermine group cooperation & longer-term goals? Corporate financial constraints + evidence weak results may limit profit-sharing pay-outs & bonuses Disappointment - disaffection Procedural inj

47、ustice subjectivity & inconsistency disaffection ? ? ? ? ? ? ? ? ? Chris Jarvis individual PRP: more in tune with hard HRM. Compare with soft employee appraisal - a judgmental process developmental HRM penalties from failure to meet standards. management control over the pay bill? Individual deals a

48、cross-the-board, cost-of-living increases. 31 Remuneration Systems Reward & employee flexibility in tasks/duties ? ? perennial managerial goal. Manager prerogative to distribute work “ rationally & flexibility” ? ? Countervailing employee pressure to structure the use of labour ? ? Reasonableness un

49、der contract (not in my job description) ? the Union custom & practice, (worker culture) Job-evaluated grading structures facilitate flexibility in the performance of tasks. True or false? 32 Chris Jarvis Remuneration Systems Job-evaluated grading structures Large mechanistic, bureaucracies. Princip

50、les ? ? establish a internally consistent set of job rates ? evaluate the job not the person doing it. ensure relativities: internal equity. Systematically compare & measure different jobs within the same organization If individual performance merits it - PROMOTE. JE grading structures lack sensitiv

51、ity to external market pressures. ? ? STEEPLE pressures flexibility imperatives intensify 33 Chris Jarvis Remuneration Systems Reward structure ossification ?Civil Service & local authorities - pay supplements for ? ? ? ? shortage jobs (response to labour market). Can unwieldy grading structures & d

52、emarcations cope with job redesign, technological change & new production methods? team or cellular working & flexibility across skills & tasks? changing organizations - lean, flexible structures dynamic circumstances - stress adaptive performance beyond rigid, ossified job descriptions & evaluated

53、grades. Chris Jarvis 34 Remuneration Systems 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

54、 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. 35 Chris Jarvis Remuneration Systems Growth structures - formal career

55、 paths & criteria. ?professional and technical job families ?achievement of qualifications & competence standards (cf. promotion only when vacancies arise). ?harmonise manual & white-collar terms & conditions ?multi-skilling ?Promotion route for the good technician, nurse, scientist or engineer not

56、because you are a manager. The nursing consultant The technical consultant (programmer) Chris Jarvis 36 Remuneration Systems A surfeit of riches ? ? higher Ee expectations not all can be fulfilled. ? pay for unwanted skills? Flexibility we dont need. extended grades, growth & skills acquisition stru

57、ctures. ? Managers over-estimate & dont use. Pirelli ? Aberdare ? Low staff turnover & local unemployment Suspend the skill acquisition scheme 37 Chris Jarvis Remuneration Systems PRP may inhibit encourage flexibility. ?personalized targets can encourage a rigid, narrow focus on short-term objective

58、s. ? ? Less attention to daily tasks than target sheets Ee as a labour contractor, performance judged on contract ? measures vs. wider performance criteria (future & potential). if targets are uncertain, fixed pay contracts restrict the scope for flexibility & discretion. 38 Chris Jarvis Remuneratio

59、n Systems Reward & quality ? ? quality cost or volume todays imperative ? leaner production - combine speed + quality maintenance TQM initiatives raise questions about the structure & administration of reward systems. ? Schonberger (1992) Once reward & recognition were reducible to little more than

60、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). ? Implications for ? ? the range of rewards available ? frequency of application the need to reward continually manag