Business human resource management
Project description
ESSAY TITLE: Discuss the role of motivation theories (in lecture slides) in developing an understanding of the relationship between pay and performance<br />
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PLAN IS ATTACHED, WITH LECTURE SLIDES, AND REFERENCE FILES<br />
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1. try and use the references provided in the plan (especially the ones in bold). however, not all are essential. <br />
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2. read the questions and answers section in the plan. This should have some helpful information and highlights information from two important sources (heery and marsden) <br />
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3. with regards to the first part of the question. the movational theories which are relevant are within the lecture slides and are expectancy theory, goal setting theory and share ownership schemes.
ESSAY TITLE: Discuss the role of motivation theories (in lecture slides) in developing an understanding of the relationship between pay and performance
NOTES
use examples: research data or case studies, cases mentioned in the textbooks in references, or current HR issues in the media
ASPECTS TO CONSIDER:
¢ Pay and reward and motivating employees (theories of motivation how pay and reward help motivate employees at work)- NOTE USE THE THOERIES OF MOTIVATION WHICH ARE WITHIN THE LECTURE SLIDES ATTACHED
¢ Consider different types of reward systems
¢ Trends in pay new pay’? Linking pay to performance
¢ Advantages and disadvantages/implications for employers and employees of different pay systems
¢ Consider fairness and equality issues when discussing different pay systems
¢ Use readings in references, e.g. Marchington et al (2012), Marsden (2004 attached), Heery (1996- attached )
¢ Use lecture notes attached as well as references from above point and reference list
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Notes continued (questions and answers)
Relating mainly to Heery (1996)
¢ Why do the advocates of new pay’ argue that strategic pay should also be variable and flexible? To keep up with changing business environment (increase competition linking pay to repeat business), flexible = moving away from fixed pay hierarchy. Variable = pay/ performance strategic pay = pay design that starts with the business strategy
¢ What are the potential negative impacts for employees?Increase employee risk, uncertainty/ subjective measures of deciding pay which employees can’t control (not fair?)
¢ Discuss whether Heery’s proposals for implementing new pay might offer a good compromise or undermine the purpose and effectiveness of new pay?good compromise = employees control over measures of performance but still need to consider who/how measures.
Relating mainly to Marsden (2004):
¢ Under what conditions might performance pay systems fail to motivate according to expectancy theory? Employees may feel that their effort will make little difference (expectancy theory), employees may feel management lacks ability to evaluate and reward performances fairly (instrumentality)
Note: expectancy theory: circle of valence (if the value is high, the incentive is high) instrumentality (if believe increased performance, increase rewards) expectancy (if they believe their efforts can get rewards)
¢ What is Marsden’s explanation for the persistence of PRP systems in the public sector and their apparent association with higher productivity, despite evidence that employees do not find them motivating? Main explanation for persisting with PRP was to facilitate the renegotiation of performance norms (renegotiating performance standards with employees) , revising of contracts in relation to its duration and content
¢ How does goal setting’ potentially explain why productivity may increase even for those employees who react negatively to performance related pay? Lead to cheating/unethical behavior
References (MOST IMPORTANT IN BOLD WITH ASTERIX)
¢ *Marchington, Mick and Wilkinson, Adrian (2008 or 2012) Human Resource Management at Work, CIPD, Harlow, England Chapter 14 Reward Management
¢ * Kessler, I.(2012) Remuneration systems in S.Bach eds. Managing Human Resources. Wiley-Blackwell
¢ *Perkins,S. and White, G. (2011) Reward Management, London: CIPD ch. 6.
¢ *M. Thompson (2009) Salary Progression systems’ in G. White and J.Drucker eds. Reward Management: A Critical Text, Routledge 2nd edition
¢ Brown, M. (2001) Merit Pay Preferences among Public Sector Employees’, Human Resource Management Journal, 11(4), 38-54.
¢ Corby, S., G. White, L. Millward, E. Meerabeau, and J. Druker (2003) Finding a Cure? Pay in England’s National Health Servic’, Employee Relations, 25 (5), 502-516.
¢ *Cox, A. (2005) The Outcomes Of Variable Pay Systems: Tales Of Multiple Costs And Unforeseen Consequences’, International Journal of Human Resource Management. Vol. 16, No. 8: 1475-1497.
¢ Dickinson, J. (2006) Employees’ preferences for the bases of pay differentials, Employee Relations, 28 (2), 164-183.
¢ Grimshaw, D. and Rubery, J. (2010) Pay and working time: shifting contours of the employment relationship’ in T. Colling and M. Terry eds. Industrial Relations: Theory and Practice, Chichester: Wiley. Blackboard
¢ White G (2010) Critical Issues in Reward Management: Is the New Pay’ Still New?’ in Roper I, Prouska R and Chatrakul Na Ayudhya U (eds.) Critical Issues in Human Resource Management CIPD, London pp 229-243
¢ Marsden, D. (2004) The Role of Performance-related Pay in Renegotiating the Effort Bargain: The Case of the British Public Sector’, Industrial and Labor Relations Review, 57 (3), 350-370.
¢ Hyman, J. (2008) Financial Participation Schemes’ in G. White and J. Ducker eds. Reward Management Routledge
¢ Adnett, N. (2003) Reforming Teachers’ Pay: Incentive Payments, Collegiate Ethos and UK Policy’, Cambridge Journal of Economics, 27 (1), 145-157.
¢ Lewis, P. (1998) Managing performance-related pay based on evidence from the financial services sector Human Resource Management Journal 8 (2): 66-77
¢ Heery, E. (1996) Risk, representation and the new pay’ Personnel Review 25,6 pp.54-65 (attached)
¢ Marsden,D. (2004) Value for money’ Centrepiece pp.14-19 (attached)