Book contents
- Frontmatter
- Contents
- List of figures and tables
- Foreword by John Egan
- Acknowledgements
- Introduction: Setting the scene
- Part 1 The fundamentals
- Part 2 Performance management in action
- Part 3 Base pay and benefits
- Part 4 Rewarding employee performance
- Part 5 Fitting it all together
- 21 System review, change and development
- Model responses to case studies
- References
- Index
21 - System review, change and development
from Part 5 - Fitting it all together
- Frontmatter
- Contents
- List of figures and tables
- Foreword by John Egan
- Acknowledgements
- Introduction: Setting the scene
- Part 1 The fundamentals
- Part 2 Performance management in action
- Part 3 Base pay and benefits
- Part 4 Rewarding employee performance
- Part 5 Fitting it all together
- 21 System review, change and development
- Model responses to case studies
- References
- Index
Summary
In the past, managing employee performance and reward was a relatively uncomplicated affair. On the performance management side, it was a matter of requiring supervisors to assess each of their subordinates once a year using a simple rating scale instrument, perhaps with a few management-imposed objectives included for good measure. On the remuneration side, the focus was on developing and maintaining a job-based base pay and benefits structure that tempered external competitiveness with a degree of attention to internal equity. In the more complex traditional pay systems, there may also have been an element of individual performance-related reward, perhaps in the form of assessment-based merit increments or one or other of the traditional forms of payment by results, possibly coupled with a modest level of collective STI in the form of profitsharing. Underlying all was an accent on the maintenance of a traditional top-down management culture, a mechanistic organisational structure and a stable relational psychological contract.
How things have changed! Today, performance and reward practitioners find themselves confronted by myriad alternative design options: everything from competency-based assessment and performance coaching, with broad-graded and broad-banded base pay structures, to goal-based STIs for individuals, teams and business units, and an ever-growing range of sophisticated equity plans for employees at all levels – from those on the production line to the habitués of the executive suite.
- Type
- Chapter
- Information
- Managing Employee Performance and RewardConcepts, Practices, Strategies, pp. 509 - 539Publisher: Cambridge University PressPrint publication year: 2007