HRM讲义Reward.ppt

MSC HRMManaging Human Resources,Large group session 7Reward,What Is Reward?,“The bundle of returns offered in exchange for a cluster of employee contributions”Reward is one side of the effort-reward bargainKey reward is pay but not the only oneReward also includes pensions,holidays,fringe benefits,learning opportunities,Types Of Reward,IntrinsicInternally driven;linked to work satisfaction,self-actualisation and pride in job or companyExtrinsicAssociated with monetary and non-monetary benefits,Types Of Reward,TransactionalTangible rewards(pay,pensions,holidays,fringe benefits)RelationalLess tangible rewards(working environment,training/learning opportunities),Reward,Interest in Total RewardTotal reward combines pay and benefits with other things employees gain from employment skills,experience,opportunity.Aim is to develop a package which appeals to your target employeesAccountco?,Pay Structures,Designed to provide some internal ordering and hierarchy of jobs.Usually involves job evaluationJob evaluation involves the systematic application of a set of rules to a given post(not person),Pay Systems,The mechanisms underlying the pay progressionBased on either time or performancePerformance related pay might be based on output or input and on individual or group performance,Definitions I,Piecework workers are paid at a flat-rate(piece-rate)for each item/operation completed.Piece-rate typically set through work study.Merit Pay an individualised system of payment in which earnings are related to a subjective assessment of employee performance on the job,typically the performance appraisal.,Definitions II,Measured Daywork(MDW)a flat day-rate is made to employees provided that they achieve output targets derived from work study estimates.Gain Sharing output-based incentive operating at the company or workplace level.Payment is linked to a measure of value-added.,Definitions III,Employee Share-Ownership employees are granted shares in the company or given the opportunity to purchase them at a favourable price.,Pay,Pay can be contingent on:Job via grading structurePerson and/or Performance-via pay system,Link between pay and the job-Kessler,Relative Internal equity Job evaluationNon-analytical analytical,Worth External equity Labour market rate/relativity,Three types of pay scheme Casey et al 1991,JOB Person AgeSeniority/experienceQualificationsCompetenceBehaviourAttitudesknowledge,Performance Individual:Sales(commission)Goods(piecework)Objectives(IPRP/merit)Group:Profits(profit sharing)Value added(gain sharing)Team target(team pay),Expectancy Theory,Originates in PsychologySeeks to identify the conditions necessary for worker motivation to occur.Three Conditions Required Valency,Instrumentality and Expectancy In order to work,reward systems must be valued,there must be a predictable link between input and performance,and a link between performance and reward,Expectancy Theory,Lawler 1990PRP or bonuses only work if the link between effort and reward is clear and the value of the reward is worth the effortThis is particularly hard to achieve at times of low inflation when pay rises are small,Pay and the High Performance Work System,Incentive Pay is seen as crucial to HPW as it impacts on performanceTypically a universalistic explanation givenTheory is that pay influences employee attitudes(especially commitment)leading to improved behaviours and better organisational performance,Pay and the High Performance Work System,No clear view on what pay system is best for HPWs some suggest combination of individual and collective PRP;others focus on collective only;few examine structures and levels.May depends on nature of HPWs,especially if it involves team working.,Collective Forms of PRP,Links more easily to HRM and HPWS models than Individual PRPProfit/Gain-sharing and Employee Share Ownership are seen to foster organisational commitmentOften supported by tax breaks in an effort to increase employee identification with firmDifficulty is line of sight problem(employees only have limited influence over firms performance),What Does WERS 2004 Say?,In 2004,Performance Related Payment Systems were found in 40%of British workplaces with 10 or more employeesMore common in the private sector(44%of workplaces)than in public sector(19%)37%of private sector workplaces gave profit-related payments or bonuses and 21%had employee share-ownership schemes,Some Studies of the Impact of PRP on Performance,Lazearbig increase in productivity in US windscreen firm following move to piecework but why?Pearce et alno effect of merit pay on performance in US Social Security administrationBenson/Brownlittle association between PRP and performance in Australia and JapanKruse and WeitzmanProfit sharing has positive association with performance(but what is cause and effect?),PRP And Attitudes/Behaviour,Little evidence that IPRP increases employee commitmentStudy by Gallie,White,Cheng and Tomlinson found IPRP was associated with higher commitment in commercial sector but not in public sector,but:1)is this due to IPRP or other practices in HRM bundle?2)Suggestion is that PRP/performance link is contingent rather than universalistic.No strong evidence of a link between profit-sharing and commitment,Contingency Models,High performance models tend to look at pay systems in universalistic terms,ie.they work the same way everywhereOther models focus on the need to obtain congruence between organisational circumstances,managerial aims and pay systems,ie.match.Believe that it is important to match pay systems to the organisational objectives,Contingency Models,Key issue is whether pay system fits with other elements in HR system and/or production system(internal fit)Most well-known model is Schuler and Jacksons-links pay policies to whether firm is following a product market strategy based on cost,quality or innovation(external fit).,The Integration Approach,Pay is used to integrate business objectives e.g.Lawler and Schuster and ZinghamIncentive pay can be useful at the growth stage in the product life-cycleIndividualistic pay policies can inhibit the development of team-workingLittle evidence that integration approach is common in the majority of firms.Difficult for firms to change pay policies and this inhibits its use strategically,Reward Management:A summary,A wide range of reward systems are associated with HRM/HPW modelsThey do not consistently achieve their desired outcomesPay systems seem to have little affect on commitmentNot clear whether the pay system/performance relationship is best viewed in universalistic or contingency termsPay practices are not typically integrated with business strategy,