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?
Ee wants to be put to good use & be developed
Reward system X è will benefit organisational efficiency & effectiveness
Under utilised & sophisticated mechanisms or crude, problematic tools to drive performance?
PRP paradigm shift – rhetoric vs. practice
Eilon, S, 1992, Management practice & mispractice, Routledge.
(tangible & quantifiable)
measured time work
individual target PRP
measured time work
employee share ownershipPay for performance systems
Job definition, MbO, method & work study.
Information and control.
Measurable, targeted PRP (narrowly defined). Pay linked to
Proposition: choices can & should be based upon
Institutional promotion & reform of pay determination.
piecework schemes 1945-1960
productivity bargaining 1960s to mid-1980s
Participation in Equity
Performance-related pay 1980s - to date
Reward ...... a key policy-making lever to achieve
Are these deep, structural, qualitative, strategic changes?
Undermine collective bargaining?
Individual PRP rewards
Corporate financial constraints + evidence
individual PRP: more in tune with 'hard' HRM.
Compare with 'soft’ developmental HRM
Job-evaluated grading structures facilitate flexibility in the performance of tasks. True or false?
Large mechanistic, bureaucracies.
If individual performance merits it - PROMOTE.
JE grading structures lack sensitivity to external market pressures.
Job evaluation not abandoned.
Incompatibility of job-evaluation with PRP?
The "nursing consultant"
The technical consultant (programmer)
'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).
Proposition: Managers can ensure high performance by assessing an employee for pay purposes once a year,
Proposition: A closer, ongoing management-employee relationship is more capable of “motivating performance”.
Based on Storey's report of
How do we test this?