Reward Management: A Critical Text (Routledge Studies in Employment Relations)

239 Pages·2000·1.91 MB·English

by  Geoff White

Reward Management
There have been fundamental changes in remuneration practices in the UK over the last
quarter century, with a substantial decline in collective bargaining as the major method of
pay determination. In its place there has been a growth of more individualistic systems
based on employee performance, skills and competency. While many of these changes
have already been charted by writers in the human resource management field, the
various texts available until now have been largely descriptive and prescriptive in their
nature. This text is the first to adopt a critical and theoretical perspective. It covers the
Institute of Personnel and Development’s employee reward syllabus and tackles the
conceptual issues missing from existing texts.
Each chapter:
(cid:127) is written by a separate specialist author
(cid:127) reviews and critiques the relevant academic literature. This enables both HR
practitioners and those studying reward management to become acquainted with the
range of literature and alternative viewpoints available
(cid:127) contains examples and statistical material to illustrate key points and is completely up-
to-date in terms of recent legislative changes, such as the minimum wage and minimum
paid holiday entitlement.
The book includes the following chapters: Introduction—the context of reward
management, Janet Druker and Geoff White; Determining pay, Geoff White; Trade
unions and the management of reward, Edmund Heery; Grading systems and estimating
value, Sue Hastings; Wages systems, Janet Druker; Salary progression systems, Marc
Thompson; Benefits, Ian Smith; Financial participation schemes, Jeff Hyman;
International reward management, Paul Sparrow; Coda—reward management into the
twenty-first century, Janet Druker and Geoff White.
Geoff White is Reader in Reward Management at the University of Greenwich
Business School. Janet Druker is Professor of Human Resource Management and
Director of Research for the University of Greenwich Business School. Both are members
of the Work and Employment Research Unit at the University of Greenwich and have
written extensively in the fields of reward management and employee relations.
Routledge Studies in Employment Relations
Series editors: Rick Delbridge and Edmund Heery
Cardiff Business School

Aspects of employment relationship are central to numerous courses at both
undergraduate and postgraduate level. Drawing on insights from industrial relations,
human resource management and industrial sociology, this series provides an alternative
source of research-based materials and texts, reviewing key developments in employment
research.
Books published in this series are works of high academic merit, drawn from a wide
range of academic studies in the social sciences.
Rethinking Industrial Relations
Mobilization, collectivism and long waves
John Kelly
Social Partnership at Work
Workplace relations in post-unification Germany
Carola M.Frege
Employee Relations in the Public Services
Themes and issues
Edited by Susan Corby and Geoff White
The Insecure Workforce
Edited by Edmund Heery and John Salmon
Public Relations Employment Relations in Europe
Transformation, modernization or inertia?
Edited by Stephen Bach, Lorenzo Bordogna, Giuseppe Della Rocca and David Winchester
Human Resource Management in the Hotel Industry
Strategy, innovation and performance
Kim Hogue
Reward Management
A critical text
Edited by Geoff White and Janet Druker
Reward Management
A critical text
Edited by Geoff White and
Janet Druker
London and New York
First published 2000
by Routledge
11 New Fetter Lane, London EC4P 4EE
Simultaneously published in the USA and Canada
by Routledge
29 West 35th Street, New York, NY 10001
Routledge is an imprint of the Taylor & Francis Group
This edition published in the Taylor & Francis e-Library, 2005.
“To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of
thousands of eBooks please go to www.eBookstore.tandf.co.uk.”
© 2000 Editorial matter and selection, Geoff White and Janet Druker;
individual chapters, the respective contributors
All rights reserved. No part of this book may be reprinted or
reproduced or utilised in any form or by any electronic,
mechanical, or other means, now known or hereafter
invented, including photocopying and recording, or in any
information storage or retrieval system, without permission in
writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
Reward management: a critical text/edited by Geoff White and Janet
Druker.
p. cm. —(Routledge Studies in Employment Relations)
Includes index.
1. Compensation management. 2. Employee motivation.
I. White, Geoff. II. Druker, Janet. III. Series.
HF5549.5.C67 R485 2000
658.3′225–dc21 00–020582
0-203-00620-8 Master e-book ISBN

ISBN 0-415-19680-9 (hbk)
ISBN 0-415-19681-7 (pbk)
Contents
List of figures and tables vi
List of editors and contributors viii
Acknowledgements x
Abbreviations xi
1 Introduction: the context of reward management 1
JANET DRUKER AND GEOFF WHITE
2 Determining pay 25
GEOFF WHITE
3 Trade unions and the management of reward 53
EDMUND HEERY
4 Grading systems and estimating value 83
SUE HASTINGS
5 Wages systems 105
JANET DRUKER
6 Salary progression systems 125
MARC THOMPSON
7 Benefits 151
IAN SMITH
8 Financial participation schemes 177
JEFF HYMAN
9 International reward management 195
PAUL SPARROW
10 Coda: reward management into the twenty-first century 213
JANET DRUKER AND GEOFF WHITE
Index 219
Figures and tables
Figures
1.1 Earnings growth 1983–97 11
1.2 Income equality in the mid-1980s and early 1990s 12
4.1 Higher Education Role Analysis elements 89
4.2 Ford grading structure pre-1967 89
4.3 Ford grading structure from July 1967 91
Tables
2.1 Basis for most recent pay increase, all sectors, WIRS 1980, 1984 and 1990 32
2.2 Basis for most recent pay increase by major sector, 1980, 1984 and 1990 32
2.3 Collective bargaining in Great Britain 32
2.4 Percentage of employees covered by collective bargaining by workplace 33
characteristics and union membership; Great Britain; Autumn 1998
2.5 Basis for most recent pay increase 1990 37
2.6 Pressures in private sector wage increases: percentage where influence very 41
important
2.7 Factors relating to the most recent pay award 43
2.8 Comparisons of settlement data sources 45
2.9 Information sources on pay and working time 48
3.1 Estimates of the union wage-gap in OECD economies 56
3.2 Union policy on IPRP (trade unions and staff associations in Britain, 1994) 63
3.3 Union attempts to influence the form of IPRP schemes 73
4.1 Local Authorities’ Manual Workers’ Job Evaluation Scheme: Summary, 1987 98
4.2 Local Government NJC (single status) Job Evaluation Scheme, 1997 99
5.1 Employees who receive overtime 110
5.2 Employees in receipt of payment by results 114
7.1 Occupational pension payment, annual increases for year ending December 31 158
7.2 Cars and cash alternatives—necessary usage 160
7.3 Cars and cash alternatives—status provision 160
7.4 Benefits characterised by effect 168
8.1 Key features of UK employee share schemes 180
9.1 Comparison of selected location cost factors in manufacturing sector 197
vii
Editors and contributors
Editors
Geoff White is Reader in Reward Management at the University of Greenwich Business
School. Prior to becoming an academic, he worked for the major pay research
organisation, Incomes Data Services, and was Managing Editor for Research for several
years. Geoff became a university lecturer in 1991 and from January 1998 until
December 1999 he was seconded on a part-time basis to the Low Pay Commission
Secretariat as remuneration advisor. His previous books include Managing People in
Construction (IPD 1996), also with Janet Druker, and Employee Relations in the Public
Services (Routledge 1999), with Susan Corby. Geoff is currently involved in a three-
year NHS-funded research project on pay and grading innovations in the NHS.
Janet Druker is Professor of Human Resource Management and Director of Research at
the University of Greenwich Business School. Prior to working in higher education,
Janet worked as a project officer at Warwick University where she also read for a PhD.
She then worked for seven years with the Union of Construction Allied Trades and
Technicians as head of research and organisation. Janet has researched and written
widely on human resource management, especially on the construction industry and on
self-employment. Her previous book, Managing People in Construction (IPD 1996) was
also co-authored with Geoff White. Janet’s current research is involved with
employment bureaux. She also writes regularly for personnel practitioner journals.
Contributors
Sue Hastings is an independent consultant in pay systems, with a particular interest in
gender aspects. She previously worked for the Trade Union Research Unit (TURU) at
Ruskin College, Oxford and has written widely on the subject of Equal Pay and Equal
Value. She has acted as advisor, primarily to unions and Applicants, on many Equal
Value cases.
Edmund Heery has been Professor of Industrial Relations at Cardiff Business School
since January 1996 and worked previously at Kingston University, Imperial College, the
City University and the London School of Economics. He has published widely on
ix
various aspects of industrial relations and human resource management and is engaged
currently on an ESRC-funded research project examining the links between innovation
and reward.
Jeff Hyman is Professor and Head of Research at the Napier University Business School
in Edinburgh. Previously at Strathclyde University Business School, he has published
widely in the field of employee financial participation schemes, including a major book,
and general reward management issues. He is co-author with Bob Mason of Managing
Employee Involvement and Participation (Sage 1995). He has also been a visiting fellow
with the International Labour Organisation in Geneva.
Ian Smith is a Senior Lecturer in Management at the Cardiff Business School and worked
in industry in both the UK and Canada before becoming an academic. Ian has a PhD
from the University of Wales. He has published several books on remuneration
practice, including The Management of Remuneration: Paying for Effectiveness (IPM 1983)
and Incentive Schemes: People and Profits (Croner Publications 1989). He also acts as a
consultant on reward management to a number of large businesses.
Paul Sparrow is Professor in International HRM at Sheffield University Management
School. Prior to this appointment he was Lecturer in Organisational Behaviour at
Manchester Business School and has also worked in consultancy. He has written widely
on business psychology, HR strategy, management competencies and international
HRM. He is joint author with Jean-Marie Hiltrop of European Human Resource
Management (Prentice Hall 1994) and joint editor with Mick Marchington of Human
Resource Management: The New Agenda (Financial Times/Pitman 1998).
Marc Thompson is currently a Research Fellow in Employee Relations at Templeton
College, Oxford, which he joined after having been Principal Research Fellow at the
Institute for Employment Studies. He has an established research track record in human
resource and employment policy issues going back over ten years. Marc has published a
number of studies on performance pay systems; age discrimination; gender
discrimination in performance assessment systems; and recent developments in
employee relations. His current research interests focus on strategic HRM and in
particular the impact of HR strategies on firm performance. He recently published a
literature review in this area (with Ray Richardson) for the IPD and is also working on
an ESRC-funded research project on reward strategies in high technology companies.