HRM and Remuneration Systems（英文版）(ppt 49页).ppt

1、HRM and 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 or standardised? Individual or collective? The Cash Nexus Enid Mu

2、mfords contracts Rewards systems vs. Payroll admin.,Pay-offs in the Employer-Employee Relationship,Knowledge & skill Er wants know-how, competence, experience. Ee wants to be put to good use & be developed Efficiency/rewards Er wants performance & quality output. Ee wants equity, felt-fair rewards &

3、 opportunity Ethical - values & commitments in right/wrong behaviour PsychologicalMgt & co-workers want committed, loyal, motivated people. Individual wants satisfaction Task structure - work within policy, procedure & technical constraints. Jobs, work arrangements,(Mumford 1972),Keep-T,Issues in pa

4、y policy, package & administration,Integrate Ee. performance with competitive advantage? Smooth, reliable, low risk, transactions. Handing over the cash: personal or separated? Traditional methods prevail. Where are the innovations? Pay policy - closet management? HRM policy-maker, practitioner & ac

5、ademic interests? Rewards central to HRM models? Theory & practice. Partial? Coherent? robust? Thin, incomplete picture and treatment?,Tixylix Prescription (read the label),Proposition: Reward system X will benefit organisational efficiency & effectiveness EmployerOur policy should properly reward &

6、 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). Employee (felt-fair, equity, expectancy theory)“the reward sy

7、stem 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,Porter - product innovation + cost leadership low labour cost

8、s vs. recruitment, retention & motivation 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 mobilit

9、y (between occupations + Europe) Salary leagues (MNCs & Euro/global manager),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 imperatives?,

10、Determinism, Rhetoric and Verification,Debate: determinism: individual performance pay Pay individual/group performance PRP paradigm shift rhetoric vs. practice sea change or traditional ad hocery extent of change (coverage & operation) innovation - for the few or the many? normative assumptions in

11、the use of reward systems central to or marginal in SHRM?,Under utilised & sophisticated mechanisms or crude, problematic tools to drive performance?,Evidence for,reward system developments reinforcing organisational transformations Some new, distinctive features in policy & practice. Do the “claims

12、” - deliver? Are our concepts of appropriate or viable pay rigorous enough? What are these perceptions and what hold do they have?,Payment Systems 1945 2000,Distinctive features? How have systems changed over the years? Current trends? A Holy Grail quest for a perfect pay system? Fads, fashions & cy

13、cles. Since 1945 Traditional systems have evolved slowly Some innovative and marginal changes New solutions associated with STEEPLE.,Design Features of Pay systems,Monetary not related to performance - time performance-linked Output, %, PRP, merit pay, commission, skill-based collective-output schem

14、es Corporate performance related bonuses + profit participation Monetary-equivalent Car, phone, holidays, loans, accommodation, fees, vouchers Deferred (promotion, pension) Non-monetary - status, recognition, plaques, empowerment Intrinsic benefits Negatives pressure, penalties, harassment side-lini

15、ng, dismissal,Sam Eilon on Reward Schemes,Eilon, 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 & dil

16、emmas . Rigid implementation may have awkward consequences. There is more to a simple carrot & stick, effort-reward relationship.,Eilons Rules of Thumb,Incentives - not confined to monetary - see non-monetary. Attainments rewards: levels & rewards should be clear. The actual effort/responsibility li

17、nk? 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 has already achie

18、ved. Benefit in penalising undesirable results or behaviour? Periodic Reviews - scheme objectives must remain valid.,Components in pay by time schemes,simple to administer defined time F/T, P/T, mixed-time, casual . No time, no pay? Hourly, weekly, annual Premiums 1.5T, 2T, nights, “door knob syndro

19、me” Control mechanisms & tools clocks, supervision, time sheets? Job evaluation - evaluate the job not the person doing it Flexi-time schemes Supervision & performance “When the cats away”? Assume trust, confidence, competence & diligence Off-site working. Is actual presence necessary? Work for Er i

20、n Er time versus .in your time? Assume fidelity, care, good-will, cooperation Life sentence?,Pay for performance systems,Job definition, MbO, method & work study. Information and control.,PRP, merit pay, skill-based schemes,Information requirements Manager appraisal and judgement Measurable, targete

21、d PRP (narrowly defined). Pay linked to concrete individual or group targets. Individual merit (behavioural) traits: e.g. flexibility, cooperation, punctuality. Staff appraisal rating criteria. Skill, physical & mental capabilities. Automatic on qualification? Performance-related? Annual increments?

22、,Collective-output schemes,work group, plant or company performance - bonus (fixed or % of standard pay) automatic for achievement of targeted output, profit, sales or added value Generally do not require employee appraisal or managerial discretion (? . not to pay .?). Scheme formula: complexity, vi

23、sibility of targets achieved.,Employee share ownership schemes,Senior manager-owners Extension of ownership & 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

24、 buy shares for employees.,Lupton & Gowler: Selecting a payment system (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 &

25、 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,Proposition: design the P-system to fit the

26、goal/circumstances. 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 & recommendationsNBPI, CIR, ACAS,

27、 CBI, 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.,Pay developments,piecework schemes 1945-1960 stimulated by labour & product mar

28、ket 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, demarcation & craft flexibility. Job enlargement & wor

29、k restructuring. Participation in Equity Performance-related pay 1980s - to date,Governmental intervention,Incomes policies national and public sector controls Privatisation & deregulation of labour market Employee share ownership National minimum wage & 48-hour ruling Equal pay & equal opportunitie

30、s Taxation Castigation of high executive pay but no regulation.,HRM models?,Proposition: Reward . a key policy-making lever to achieve Commitment Flexibility Quality Strategic integration. Links between rewards & such goals are not new.But now petitive advantage & the argument for strategic integrat

31、ion. Is there evidence?,Tight and Loose Views,Looser responses are more ad hoc, reactive & opportunistic. Tight coherent, managerial rationale exists - reward system selection sensitive to business circumstances & needs rewards underpin broader business plans diversification & product life cycle str

32、ategies company re-structuring, flexibility & culture change support other HRM interventions. But Are the efforts so tightly articulated? Theory + consistency in application & outcome.,Have organisations changed their approach to pay?,individual performance-related or merit-based pay schemes individ

33、ualisation 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 lev

34、elevidence in admin. (33%) + skilled manual (25%) Are these deep, structural, qualitative, strategic changes?,Pay and HRM goals: commitment, flexibility & quality.,features and contexts? potential tensions in the linkages ? the dynamics for change?,Reward & commitment,long history, on-going manageme

35、nt 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 participation e.g. share ownership & profit-shar

36、ing statutory support,But are the schemes effective?,Research into participation & staff attitudes returns ambiguous results. Some positive impact . with doubts Problem: Isolating the participation variable & corporate performance. Other involvement techniques in the change programmes. Blinder (USA

37、study)the way workers are treated may boost productivity more than the way they are paid.,Visible, meaningful ways to lock-in the individual.,Dialogue & bonding. Performance appraisal “forces” direct communication Strengthen line manager employee relationship Individualise the effort-reward bargain

38、No external 3rd party.,Undermine collective bargaining?,Profit & share initiatives reduce TU orientation. PRP schemes - less in evidence where TUs are strong. De-recognition?,Reports on,British Rail & TSSA - 10,000 middle & junior managers PRP & individual senior manager contracts - a hint of TU de-

39、recognition (Thames Water, Amersham & BT). NUT & PRP-related teacher appraisal Some TU say in PRP operation. agree performance criteria negotiate size of kitty vs. its distribution representing appeals against appraisal & pay judgements disclosure of information via Central Arbitration Committee & m

40、onitor system fairness A few unfair discrimination cases (sex/race & merit-pay),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 pr

41、ofit-sharing pay-outs & bonuses Disappointment - disaffection Procedural injustice subjectivity & inconsistency disaffection individual PRP: more in tune with hard HRM. employee appraisal - a judgmental process penalties from failure to meet standards. management control over the pay bill? Individua

42、l deals across-the-board, cost-of-living increases.,Compare with soft developmental HRM,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 Reasonab

43、leness under 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?,Job-evaluated grading structures,Large mechanistic, bureaucracies. Principles establish a internally con

44、sistent 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 sensitivity to external market pressures. ST

45、EEPLE pressures flexibility imperatives intensify,Reward structure ossification,Civil Service & local authorities - pay supplements for shortage jobs (response to labour market).Can unwieldy grading structures & demarcations cope with job redesign, technological change & new production methods? team

46、 or cellular working & flexibility across skills & tasks? changing organizations - lean, flexible structures dynamic circumstances - stress adaptive performance beyond rigid, ossified job descriptions & evaluated grades.,Grow, develop, perform! Out-grow job & be promoted!,Job evaluation not abandone

47、d. 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).

48、Move from grades & fixed increments, to min-max ranges & give scope for individual performance.,Growth structures - formal career paths & criteria.,professional and technical job families achievement of qualifications & competence standards (cf. promotion only when vacancies arise). harmonise manual

49、 & white-collar terms & conditions multi-skilling Promotion route for the good technician, nurse, scientist or engineer not because you are a manager. The nursing consultant The technical consultant (programmer),A surfeit of riches,higher Ee expectations not all can be fulfilled. pay for unwanted sk

50、ills? Flexibility we dont need. extended grades, growth & skills acquisition structures. Managers over-estimate & dont use. Pirelli Aberdare Low staff turnover & local unemployment Suspend the skill acquisition scheme,PRP may inhibit encourage flexibility.,personalized targets can encourage a rigid,

51、 narrow focus on short-term objectives. 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 & discreti

52、on.,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 two monetary n

53、umbers, 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 management skills.,Rewardin

54、g continuously? New management skills.,Establishing valid & viable performance criteria Judging if targets have been met - assessing the relationship between assessed performance & rewards Interpersonal skills: coaching, counselling & interviewing.,Piecework,Simple, direct , mechanistic pay-output l

55、ink. Controls motivation & productivity. Criticism of piecework schemes but was there a positive link between piecework & productivity? Premature rejection of economic man?,A performance management backlash,Proposition: Managers can ensure high performance by assessing an employee for pay purposes o

56、nce a year, versus Proposition: A closer, ongoing management-employee relationship is more capable of “motivating performance”. A shift from M-by control to M-by leadership.,Leaders must,ensure that the broad picture is known, understood relate this to measurable personal & team objectives aid job s

57、atisfaction through feedback - performance & objectives. discriminate in the reward given standard vs. exceptional understand their accountability for people. send out clear quality & performance messages.,Based on Storeys report of NatWest,Warning,without requisite skills, P-system may become discr

58、edited. HRM guidance to line managers on scheme operation tight definitions of performance objectives assessed performance levels the distribution of markings stimulates resentment over personnel intrusion,Pay and the pursuit of quality,we take quality seriously by setting quality-related targets and creating a pay-quality link Symbolism and credibility. US Car company case: Employees unconvinced of company commitment to quality. Dept. managers set targets (with bonuses) for Q-related group activities. Rank Xerox: European executive performance partly linked to customer satisfaction & loyal