ChrisJarvis1RemunerationSystemsHRMandRemunerationSystemsChrisJarvis2RemunerationSystemsRewards&methodsofrewardThewage-workbargain.Centraltoemploymentrelationship®ulationOffer–Acceptance-Consideration(incentivepackage)unilateralorbargained?Buyer-sellerpower?Tailoredorstandardised?Individualorcollective?TheCashNexusEnidMumford’scontractsRewardssystemsvs.Payrolladmin.ChrisJarvis3RemunerationSystemsPay-offsintheEmployer-EmployeeRelationshipKnowledge&skillErwantsknow-how,competence,experience.Eewantstobeputtogooduse&bedevelopedEfficiency/rewardsErwantsperformance&qualityoutput.Eewantsequity,felt-fairrewards&opportunityEthical-values&commitmentsinright/wrongbehaviourPsychologicalMgt&co-workerswantcommitted,loyal,motivatedpeople.IndividualwantssatisfactionTaskstructure-workwithinpolicy,procedure&technicalconstraints.Jobs,workarrangements(Mumford1972)Keep-TChrisJarvis4RemunerationSystemsIssuesinpaypolicy,package&administrationIntegrateEe.performancewithcompetitiveadvantage?Smooth,reliable,lowrisk,transactions.Handingoverthecash:personalorseparated?Traditionalmethodsprevail.Wherearetheinnovations?Paypolicy-closetmanagement?HRMpolicy-maker,practitioner&academicinterests?RewardscentraltoHRMmodels?Theory&practice.Partial?Coherent?robust?Thin,incompletepictureandtreatment?ChrisJarvis5RemunerationSystemsTixylixPrescription(readthelabel)Proposition:RewardsystemXèwillbenefitorganisationalefficiency&effectivenessEmployerOurpolicyshouldproperlyreward&motivatestafftocontributeeffort,expertise&commitmentinlinewithorganisationalobjectives.Ourrewardsystemmustberightforthe‘firm’(paybill&administration)&employees(attracting,motivating,retainingtherightstaff).Employee(felt-fair,equity,expectancytheory)“therewardsystemshouldreflectmywork&itsdemandsonme,myvalue(formykindofwork)within‘labourmarket’(internal/xternal).Itshouldsatisfymewhencomparingmyrewardswithwhatothersgetforthesamekindofwork”.ChrisJarvis6RemunerationSystemsContextandPressuresPorter-productinnovation+costleadershiplowlabourcostsvs.recruitment,retention&motivationRateforthejob–jobclass&worktechnologyLocationinlowwageeconomiescommitment&flexibilityConvergence:white/blue,office/factory–competenciesTeam-working,flexibility,harmonisationRegionalmarketforces(theCity,Leeds,Delhi).Labourmobility(betweenoccupations+Europe)Salaryleagues(MNCs&Euro/globalmanager)ChrisJarvis7RemunerationSystemsExaminingRewardSystemConceptsandPracticesPatternsandtrendsinpolicy&practice?PropositionsandAssumptions?Testsforthepropositions/hypotheses?Competingconceptsandperceptions?Veracityoftheimperatives?ChrisJarvis8RemunerationSystemsDeterminism,RhetoricandVerificationDebate:determinism:individualperformanceèpayPayèindividual/groupperformancePRPparadigmshift–rhetoricvs.practice‘seachange'ortraditional'adhocery'extentofchange(coverage&operation)innovation-forthefeworthemany?normativeassumptionsintheuseofrewardsystemscentraltoormarginalinSHRM?Underutilised&sophisticatedmechanismsorcrude,problematictoolstodriveperformance?ChrisJarvis9RemunerationSystemsEvidenceforrewardsystemdevelopmentsreinforcingorganisationaltransformationsSomenew,distinctivefeaturesinpolicy&practice.Dothe“claims”-deliver?Areourconceptsof'appropriate'or'viable'payrigorousenough?Whataretheseperceptionsandwhatholddotheyhave?ChrisJarvis10RemunerationSystemsPaymentSystems1945–2000Distinctivefeatures?Howhavesystemschangedovertheyears?Currenttrends?AHolyGrailquestfora‘perfect'paysystem?Fads,fashions&cycles.Since1945TraditionalsystemshaveevolvedslowlySomeinnovativeandmarginalchangesNewsolutionsassociatedwithSTEEPLE.ChrisJarvis11RemunerationSystemsDesignFeaturesofPaysystemsMonetarynotrelatedtoperformance-timeperformance-linkedOutput,%,PRP,meritpay,commission,skill-basedcollective-outputschemesCorporateperformancerelatedbonuses+profitparticipationMonetary-equivalentCar,phone,holidays,loans,accommodation,fees,vouchersDeferred(promotion,pension)Non-monetary-status,recognition,plaques,empowermentIntrinsicbenefitsNegativespressure,penalties,harassmentside-lining,dismissalChrisJarvis12RemunerationSystemsSamEilononRewardSchemesEilon,S,1992,Managementpractice&mispractice,Routledge.~jarvis/bola/rewards/rewards.htmlintegraltomanagerialplanningandcontrolprocesses.shouldnotbeconsideredinisolation.Rulesguide,butnotethecontradictions&dilemmas.Rigidimplementationmayhaveawkwardconsequences.Thereismoretoasimplecarrot&stick,effort-rewardrelationship.ChrisJarvis13RemunerationSystemsEilon'sRulesofThumbIncentives-notconfinedtomonetary-seenon-monetary.Attainmentsèrewards:levels&rewardsshouldbeclear.Theactualeffort/responsibilitylink?Individualgoals/attainment&dept/orgn.GoalsIndividualattainmentvs.whatothersmustachieve?Rewardsforhelpingothers-supportstaff.Re-structuring:jeopardiserewardpossibilities?Products&workingpracticeschange?FuturepayprospectsshouldnotunderminewhatEehasalreadyachieved.Benefitinpenalisingundesirableresultsorbehaviour?PeriodicRevie