Professional Documents
Culture Documents
Main messages (1) Old fashioned Reward Management has an image of dullness and inflexibility Reward systems, like business strategy itself, may not flow rationally from the top down, but rather emerge from events, and through negotiation with stakeholders such as Trade Unions
B1. Strategic Reward Management: Key Elements of Reward System Design (Midland Main Line e.g.)
Business Strategy e.g. higher co. income, lower costs, better quality
Required Employee Behaviours e.g. flexibility & customer care Reward Strategy
HRM Systems
Reward Strategy
Co. Core Reward Values Reward Process Reward Structure
Job Design
Org Structure
Reward System
Culture
9
Equity
individual performance related pay team based rewards sometimes a trade-off between external equity (alignment with external market price of the labour) and internal comparisons) also procedural justice issues
11
13
This means a move to as much emphasis on external equity (the market value of the employees labour power) as on internal equity (e.g. how he/she compares with similar colleagues)
15
Reconciling team based pay with internal equity is difficult, so the authors suggest combining it with individual performance related pay.
16
D4. Reward Management Structures (4) Typical imperatives in relation to equity (and building a sense of community) include: To be careful that the directors are not seen to award themselves unfairly large pay increases Equal pay for work of equal value by men & women
17
D5. Reward Management Structures (5) Closing the gap in benefits between blue and white collar workers Wider pay bands: room to reward good citizens
lateral movement across the organisation without promotion reward for multi-skilling & teamwork continual rewards for continual improvement in performance
18
19
To apply non-financial rewards, the company may Publish peoples successes in the inhouse magazine Give thank you prizes e.g. a weekend trip overseas Train line managers in appraisal, goal setting, feedback skills
20
Apply job design theory to make jobs more meaningful & responsible, and where people can see the successful outcomes of their work Skill based pay is a financial reward that may have a big impact on organisational change. It can be applied both in manufacturing and service industries
21
E1. Reward Management Processes (1) Employee involvement in developing the system
5. Implement, and ongoing monitoring & evaluation by task force
4. Communication to those effected; plus training for supervisors and line managers
3. Pilot implementation of the scheme: why not pilot on the employees who were involved in (2). This pilot scheme is monitored, is it achieving its aims? 2. Task force of around 12 managers, supervisors & employees develops a detailed proposal to top mgt
1. Feasibility study: establishes the aims of the scheme
22
E2. Reward Management Processes (2) Employee involvement in developing the system
The process may be preceded by an employee attitude survey Employee involvement isnt enough on its own: the system wont work unless it is technically sound With team based pay, it may be appropriate to award an overall amount to the whole team, and empower the team to determine how this is allocated to individual based on their contribution members Cafeteria benefits systems may allow individuals to choose their own combination of benefits (e.g health benefits, vs. more leave, vs. cash bonus).
23
F1. What has All This Got to Do With the Management of Change (1)?
As just noted, companies are very secretive about reward systems (invoking confidentiality). More openness about this can lead to more open communication generally.
Strategic Reward Management is a tool of organisational change. Adopting appropriate reward management values (see slide 10) can remove blockages to organisational change.
25
F2. What has All This Got to Do With the Management of Change (2)?
Changing the reward structures (e.g. designing jobs to be intrinsically satisfying, instituting skill based pay, or adopting gainsharing schemes) can have a big impact on employee behaviour and readiness to learn.
Developing a new reward system (strategy, values, structures, processes) is itself a major organisational change
26
Thank you
27