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 Mumfords 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 & 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 pay 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 & academic 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 & 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 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,Porter - product innovation + cost leadership low labour costs 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 mobility (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?,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 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” - 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 & cycles. 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 schemes 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-lining, 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 & dilemmas . 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 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? Prod