David Marsden
- Published in print:
- 2010
- Published Online:
- September 2010
- ISBN:
- 9780199573547
- eISBN:
- 9780191722677
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199573547.003.0010
- Subject:
- Business and Management, Public Management, Organization Studies
This chapter analyses the case of pay for performance in the British Civil Service since the 1980s, which progressively moved from a 19th-century classified pay system (in which pay rises came either ...
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This chapter analyses the case of pay for performance in the British Civil Service since the 1980s, which progressively moved from a 19th-century classified pay system (in which pay rises came either from promotion to a higher grade or from incremental progression on a given grade) to one in which a fifth or more of pay was obtained by discretionary bonuses. It is argued that the intended consequence or perhaps more correctly, anticipated consequence of performance-related pay — to improve the motivation of public servants — has proved elusive. When a policy is the result of decisions by many actors, it is not clear whose intentions were paramount. In contrast, the unintended or unanticipated consequence was that, although performance appears to have improved in several cases, it did so by other means than motivation. Notably, it came about because of the emergence of processes facilitating convergence between goal setting at the individual and organizational levels. These have supported a renegotiation of performance standards and priorities at the individual level.Less
This chapter analyses the case of pay for performance in the British Civil Service since the 1980s, which progressively moved from a 19th-century classified pay system (in which pay rises came either from promotion to a higher grade or from incremental progression on a given grade) to one in which a fifth or more of pay was obtained by discretionary bonuses. It is argued that the intended consequence or perhaps more correctly, anticipated consequence of performance-related pay — to improve the motivation of public servants — has proved elusive. When a policy is the result of decisions by many actors, it is not clear whose intentions were paramount. In contrast, the unintended or unanticipated consequence was that, although performance appears to have improved in several cases, it did so by other means than motivation. Notably, it came about because of the emergence of processes facilitating convergence between goal setting at the individual and organizational levels. These have supported a renegotiation of performance standards and priorities at the individual level.
Phil Almond, Michael Muller-Camen, David G. Collings, and Javier Quintanilla
- Published in print:
- 2006
- Published Online:
- September 2007
- ISBN:
- 9780199274635
- eISBN:
- 9780191706530
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199274635.003.0007
- Subject:
- Business and Management, HRM / IR
This chapter analyses the management of pay and performance in the case study companies, against the background of the embedded systems of the USA and the host countries. Both wage classifications ...
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This chapter analyses the management of pay and performance in the case study companies, against the background of the embedded systems of the USA and the host countries. Both wage classifications and the issue of performance management are examined. Patterns of decision-making on both dimensions are found to be generally more centralized than is the case for other areas of HR policy. On the issue of wage classifications, patterns of broadbanding are examined, as well as the means by which US multinationals challenge sectorally-based pay determination in Germany. It then explores the issue of forms of individual and collective performance pay, looking at recent changes in the nature of merit pay, particularly the increasingly competitive nature of its allocation through mechanisms, such as forced distributions. It also reviews the extent to which performance management is used as a tool to ‘cull’ weaker performers, and suggests that the origins of such policies can be related to the societally-specific norm of ‘employment at will’.Less
This chapter analyses the management of pay and performance in the case study companies, against the background of the embedded systems of the USA and the host countries. Both wage classifications and the issue of performance management are examined. Patterns of decision-making on both dimensions are found to be generally more centralized than is the case for other areas of HR policy. On the issue of wage classifications, patterns of broadbanding are examined, as well as the means by which US multinationals challenge sectorally-based pay determination in Germany. It then explores the issue of forms of individual and collective performance pay, looking at recent changes in the nature of merit pay, particularly the increasingly competitive nature of its allocation through mechanisms, such as forced distributions. It also reviews the extent to which performance management is used as a tool to ‘cull’ weaker performers, and suggests that the origins of such policies can be related to the societally-specific norm of ‘employment at will’.
Phil Almond and Anthony Ferner (eds)
- Published in print:
- 2006
- Published Online:
- September 2007
- ISBN:
- 9780199274635
- eISBN:
- 9780191706530
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199274635.001.0001
- Subject:
- Business and Management, HRM / IR
This book addresses some of the major contemporary issues in comparative business and employment relations. At its core are the findings of a four-year international exploration of the management of ...
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This book addresses some of the major contemporary issues in comparative business and employment relations. At its core are the findings of a four-year international exploration of the management of employment relations in American multinational companies in the UK, Germany, Ireland, and Spain. Data from detailed case studies are used to illuminate the tensions between the forces of globalization and the continuing distinctiveness of national business systems. It looks at what is distinctively American about US multinationals, asking how the US business system’s particular features influence their management of human resources across national borders. It shows that the transfer of ‘Americanness’ is not a technical, top-down, managerial process, but a highly political and ‘negotiated’ one in which groups and individuals at different levels within the company try to influence the terms of transfer. The book uses a wealth of empirical material to explore the ways in which US multinationals manage international employment relations in different host countries. Four areas of policy and practice are considered in detail: pay and performance; collective employee representation; the management of workforce ‘diversity’; and managerial careers. It shows how global HR policies are made; how they are diffused internationally; and how they are adopted, adapted, or resisted by overseas subsidiaries. It also explores some of the structures and processes that characterize US multinationals: the changing balance between centralization and subsidiary autonomy; the management of international learning; and the structure and role of the international human resource function.Less
This book addresses some of the major contemporary issues in comparative business and employment relations. At its core are the findings of a four-year international exploration of the management of employment relations in American multinational companies in the UK, Germany, Ireland, and Spain. Data from detailed case studies are used to illuminate the tensions between the forces of globalization and the continuing distinctiveness of national business systems. It looks at what is distinctively American about US multinationals, asking how the US business system’s particular features influence their management of human resources across national borders. It shows that the transfer of ‘Americanness’ is not a technical, top-down, managerial process, but a highly political and ‘negotiated’ one in which groups and individuals at different levels within the company try to influence the terms of transfer. The book uses a wealth of empirical material to explore the ways in which US multinationals manage international employment relations in different host countries. Four areas of policy and practice are considered in detail: pay and performance; collective employee representation; the management of workforce ‘diversity’; and managerial careers. It shows how global HR policies are made; how they are diffused internationally; and how they are adopted, adapted, or resisted by overseas subsidiaries. It also explores some of the structures and processes that characterize US multinationals: the changing balance between centralization and subsidiary autonomy; the management of international learning; and the structure and role of the international human resource function.
Gregory Jackson
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199284511
- eISBN:
- 9780191713705
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199284511.003.0010
- Subject:
- Economics and Finance, South and East Asia
This chapter examines employment practices and adjustment drawing on both survey data and case study materials. While over 80% of Japanese listed firms maintain a commitment to lifetime employment, ...
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This chapter examines employment practices and adjustment drawing on both survey data and case study materials. While over 80% of Japanese listed firms maintain a commitment to lifetime employment, many firms have abandoned seniority-based wages in favour of merit-based payment systems based on individual performance evaluations. Some corporate governance practices, such as stock options and equity-based performance measures, negatively impact the continued use of seniority-based pay. Meanwhile, the percentage of in-house board members has a negative impact on market employment patterns, which suggests that external market pressures may be less important than the style of insider governance in determining employment patterns. Despite this continued commitment to lifetime employment, the core of employees covered under such arrangements is shrinking through the active use of ‘benevolent’ methods of employment adjustment, such as early retirement schemes. These finds suggest that some elements of Japanese-style HRM may be compatible with changing corporate governance institutions.Less
This chapter examines employment practices and adjustment drawing on both survey data and case study materials. While over 80% of Japanese listed firms maintain a commitment to lifetime employment, many firms have abandoned seniority-based wages in favour of merit-based payment systems based on individual performance evaluations. Some corporate governance practices, such as stock options and equity-based performance measures, negatively impact the continued use of seniority-based pay. Meanwhile, the percentage of in-house board members has a negative impact on market employment patterns, which suggests that external market pressures may be less important than the style of insider governance in determining employment patterns. Despite this continued commitment to lifetime employment, the core of employees covered under such arrangements is shrinking through the active use of ‘benevolent’ methods of employment adjustment, such as early retirement schemes. These finds suggest that some elements of Japanese-style HRM may be compatible with changing corporate governance institutions.
Margit Osterloh and Bruno S. Frey
- Published in print:
- 2004
- Published Online:
- September 2007
- ISBN:
- 9780199269761
- eISBN:
- 9780191710087
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199269761.003.0009
- Subject:
- Business and Management, Corporate Governance and Accountability
This chapter highlights some important unintentional adverse consequences of mechanisms that are commonly recommended for improving CG. It argues that the circle of reinforcement of monitoring, ...
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This chapter highlights some important unintentional adverse consequences of mechanisms that are commonly recommended for improving CG. It argues that the circle of reinforcement of monitoring, sanctions and incentives in response to scandals configures a ‘governance for crooks’ that tends to worsen the very problem it is designed to solve. It highlights that one important underlying mechanism explaining this adverse consequence is the ‘crowding out effect’, whereby an excess of extrinsic motivation crowds out intrinsic motivation and undermines corporate virtue. The chapter offer a stylized model of the phenomenon and draws implications for human resource management — HRM — (personnel selection and reward policies).Less
This chapter highlights some important unintentional adverse consequences of mechanisms that are commonly recommended for improving CG. It argues that the circle of reinforcement of monitoring, sanctions and incentives in response to scandals configures a ‘governance for crooks’ that tends to worsen the very problem it is designed to solve. It highlights that one important underlying mechanism explaining this adverse consequence is the ‘crowding out effect’, whereby an excess of extrinsic motivation crowds out intrinsic motivation and undermines corporate virtue. The chapter offer a stylized model of the phenomenon and draws implications for human resource management — HRM — (personnel selection and reward policies).
John D. Martin, J. William Petty, and James S. Wallace
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780195340389
- eISBN:
- 9780199867257
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195340389.003.0008
- Subject:
- Economics and Finance, Macro- and Monetary Economics, Financial Economics
This chapter presents a fundamental component of every firm's internal control system, its compensation program. The basic paradigm espoused by the proponents of VBM is that what a firm measures and ...
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This chapter presents a fundamental component of every firm's internal control system, its compensation program. The basic paradigm espoused by the proponents of VBM is that what a firm measures and rewards will get done. Consequently, the compensation program must measure employees’ activities that contribute toward wealth creation and reward those efforts. In essence, the compensation plan should pay employees to think and act like owners. Both the level of compensation and its form and composition are discussed. Many observed problems and potential remedies are presented. One characteristic that firms must be aware of is the public's perception that executive compensation has become unacceptably excessive. A complete VsBM program must consider the political implications of its behavior as these perceptions can and do effect a firm's reputation and ultimately its wealth-creating ability. One mechanism for addressing these perceptions is to consider fairness criteria when designing a compensation program.Less
This chapter presents a fundamental component of every firm's internal control system, its compensation program. The basic paradigm espoused by the proponents of VBM is that what a firm measures and rewards will get done. Consequently, the compensation program must measure employees’ activities that contribute toward wealth creation and reward those efforts. In essence, the compensation plan should pay employees to think and act like owners. Both the level of compensation and its form and composition are discussed. Many observed problems and potential remedies are presented. One characteristic that firms must be aware of is the public's perception that executive compensation has become unacceptably excessive. A complete VsBM program must consider the political implications of its behavior as these perceptions can and do effect a firm's reputation and ultimately its wealth-creating ability. One mechanism for addressing these perceptions is to consider fairness criteria when designing a compensation program.
Marcus Rebick
- Published in print:
- 2005
- Published Online:
- July 2005
- ISBN:
- 9780199247240
- eISBN:
- 9780191602566
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199247242.003.0003
- Subject:
- Economics and Finance, South and East Asia
Examines changes that have been taking place in the treatment of regular full-time workers in Japan. Among the developments examined are the introduction of performance-related pay, flattening of the ...
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Examines changes that have been taking place in the treatment of regular full-time workers in Japan. Among the developments examined are the introduction of performance-related pay, flattening of the age-earnings profile, specialist training, and shorter working hours. Looks at trends in labour mobility and concludes that long-term employment is still the rule for the majority of these employees.Less
Examines changes that have been taking place in the treatment of regular full-time workers in Japan. Among the developments examined are the introduction of performance-related pay, flattening of the age-earnings profile, specialist training, and shorter working hours. Looks at trends in labour mobility and concludes that long-term employment is still the rule for the majority of these employees.
Kristin Madison
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780195390131
- eISBN:
- 9780199775934
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195390131.003.005
- Subject:
- Law, Medical Law
One of the many factors that contribute to fragmentation in the delivery of health care services is the law. While laws hindering efforts to coordinate care take multiple forms, many share an aim of ...
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One of the many factors that contribute to fragmentation in the delivery of health care services is the law. While laws hindering efforts to coordinate care take multiple forms, many share an aim of blunting problematic incentives in a world in which patients and payers are unable to assess the quality of care. Examples of such laws include licensure-related limits on the corporate practice of medicine, which may preclude direct employment of physicians; and the anti-kickback and self-referral statutes, which circumscribe potential relationships between hospitals and physicians. Private forms of regulating relationships among providers, such as hospital medical staff bylaws preserving physician independence, may also fit this mould. The recent movement to collect and disseminate information about provider quality, however, may make it reasonable to weaken these restrictions, allowing providers to engage in quality- and efficiency-enhancing integration. Payment tied to quality reporting may give them the incentive to do so.Less
One of the many factors that contribute to fragmentation in the delivery of health care services is the law. While laws hindering efforts to coordinate care take multiple forms, many share an aim of blunting problematic incentives in a world in which patients and payers are unable to assess the quality of care. Examples of such laws include licensure-related limits on the corporate practice of medicine, which may preclude direct employment of physicians; and the anti-kickback and self-referral statutes, which circumscribe potential relationships between hospitals and physicians. Private forms of regulating relationships among providers, such as hospital medical staff bylaws preserving physician independence, may also fit this mould. The recent movement to collect and disseminate information about provider quality, however, may make it reasonable to weaken these restrictions, allowing providers to engage in quality- and efficiency-enhancing integration. Payment tied to quality reporting may give them the incentive to do so.
Masahiro Abe and Takeo Hoshi
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199284511
- eISBN:
- 9780191713705
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199284511.003.0009
- Subject:
- Economics and Finance, South and East Asia
Corporate governance can be defined as a system that constitutes an institution that constrains relations between corporate managers and various stakeholders, including shareholders, creditors, ...
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Corporate governance can be defined as a system that constitutes an institution that constrains relations between corporate managers and various stakeholders, including shareholders, creditors, workers, suppliers, and customers. Under this broad definition, corporate governance is a system of various sub-systems that are complementary to one another. This chapter focuses on two sub-systems of Japanese corporate governance: corporate finance and human resource management. After briefly documenting the characteristics of the Japanese corporate governance in these two sub-systems, the chapter discusses how each sub-system has been going through substantial changes in recent years. Examining the data for fifty-eight listed companies, the evidence shows some degree of complementarity between the two sub-systems. The firms that have a non-traditional ownership structure (especially high with foreign ownership) seem to have more non-traditional human resource management practices.Less
Corporate governance can be defined as a system that constitutes an institution that constrains relations between corporate managers and various stakeholders, including shareholders, creditors, workers, suppliers, and customers. Under this broad definition, corporate governance is a system of various sub-systems that are complementary to one another. This chapter focuses on two sub-systems of Japanese corporate governance: corporate finance and human resource management. After briefly documenting the characteristics of the Japanese corporate governance in these two sub-systems, the chapter discusses how each sub-system has been going through substantial changes in recent years. Examining the data for fifty-eight listed companies, the evidence shows some degree of complementarity between the two sub-systems. The firms that have a non-traditional ownership structure (especially high with foreign ownership) seem to have more non-traditional human resource management practices.
Alex Bryson, Richard Freeman, Claudio Lucifora, Michele Pellizzari, and Virginie Pérotin
- Published in print:
- 2013
- Published Online:
- May 2013
- ISBN:
- 9780199669806
- eISBN:
- 9780191749407
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199669806.003.0010
- Subject:
- Economics and Finance, Macro- and Monetary Economics
The chapter introduces the main issues raised by the second section of the book. First, the authors argue that, in recent years, a growing proportion of firms introduced incentive pay schemes. ...
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The chapter introduces the main issues raised by the second section of the book. First, the authors argue that, in recent years, a growing proportion of firms introduced incentive pay schemes. Moreover, the economic recession has increased interest in firm practices that may improve performance and employment, and in public policies to promote such practices. Most studies have suggested that performance-related pay schemes are usually associated with improved employee productivity. In particular, the book focuses on a new wave of studies that have used company-specific data, with credible identification strategies, to investigate the effects of the introduction of performance-related schemes. The chapter also addresses the topic of a renewed interest in incentive systems that go beyond short-term effort and give employees a stake in the long-term prospects of the firm.Less
The chapter introduces the main issues raised by the second section of the book. First, the authors argue that, in recent years, a growing proportion of firms introduced incentive pay schemes. Moreover, the economic recession has increased interest in firm practices that may improve performance and employment, and in public policies to promote such practices. Most studies have suggested that performance-related pay schemes are usually associated with improved employee productivity. In particular, the book focuses on a new wave of studies that have used company-specific data, with credible identification strategies, to investigate the effects of the introduction of performance-related schemes. The chapter also addresses the topic of a renewed interest in incentive systems that go beyond short-term effort and give employees a stake in the long-term prospects of the firm.
