Managing employee performance and reward : systems, practices and prospects
Managing employee performance and reward : systems, practices and prospects
John Shields; Jim Rooney; Michelle Brown & Sarah Kaine
- 3rd ed.
- New Delhi Cambridge university press c2020
- xx, 535 P.B
Chapter 1 Performance and reward basics
Preview
Performance and reward management: promise and peril
Performance management basics
What is ‘performance’?
Aims of performance management
Basic requirements for effective performance management
Reward management basics
‘Reward’ and ‘total reward’
Remuneration
Aims of reward management
‘Reality check’ themes
Summary
Discussion questions
Case study: ‘Companies that got rid of performance ratings aren’t doing so well, sadly’
Chapter 2 Strategic alignment and psychological engagement: A systems thinking framework for effecti
Preview
Strategic considerations: dimensions and alignment
Dimensions of strategic alignment: external/vertical and internal/horizontal
Achieving and maintaining external and internal strategic alignment
Business strategy
The employee value proposition
Work design
Managing strategic alignment and misalignment
Psychological engagement: dimensions and determinants
Work behaviour
Intra-personal influences on behaviour
Personality
Motivation
Organisational justice
Organisational trust
An integrated model of psychological engagement
Summary
Discussion questions
Case study: Deloitte Insights, 2018 Global Human Capital Trends Report
Chapter 3 Managing for results
Preview
What are ‘results’?
Measuring results: KRAs, KPIs and goals
Promise and perils of measuring results
Using results-based techniques: goal-setting
Promise and perils of goal-setting
Using results-based techniques: the balanced scorecard
The balanced scorecard ideal
Promise and perils of balanced scorecards
Summary
Discussion questions
Case study: Employee self-regulation of performance I – the influence of evolving technology on th
Chapter 4 Performance appraisal and management
Preview
An overview of work performance assessment
Behavioural assessment
Competency assessment
Sources of assessment information
Behavioural information
Competency information
Common assessment methods in action
Behavioural assessment methods
Competency assessment methods
Common flaws in performance assessment and the shaping of employee performance
Behavioural assessment
Competency assessment
Assessing performance assessment
Behavioural assessment and performance management
Competence assessment and performance management
Performance appraisal: strategic considerations
Summary
Discussion questions
Case study: Employee self-regulation of performance II – the influence of evolving technology on t
Chapter 5 Reviewing, discussing and developing employee performance
Preview
Managing underperformance
Causes of underperformance
From measurement to conversation
Performance review meetings
Review meeting preparation
The reviewer
The assessee
The review meeting
Timing
Content of the meeting
Review meeting styles
‘Tell and sell’
‘Tell and listen’
‘Problem-solving’
Negative feedback
Managers and negative feedback
Employees and negative feedback
Managing underperformance
Developing employees: employee coaching
What is coaching?
GROW model of coaching
Outcomes of coaching
Developing employees: mentoring
What is mentoring?
What is a mentor?
Phases in mentoring
Evaluating mentoring
Performance review and development: strategic alignment considerations
Summary
Discussion questions
Case study: Managing underperformance
Chapter 6 Base pay
Preview
What is ‘base pay’?
Pay for the position versus pay for personal capabilities
Position-based structures
Pay scales
Pay grades
Pricing positions
Market survey methods
Job evaluation methods
Developing a graded base pay structure
Pros and cons of position-based base pay
Person-based base pay structures
Pay bands
Valuing personal capabilities
Pricing skills
Pricing competencies
Developing a banded base pay system
Skill blocks and bands
Competency zones and bands
Pros and cons of person-based pay
Strategic alignment with base pay
Summary
Discussion questions
Case study: Rethinking base pay at Commercial Law Partners
Chapter 7 Employee benefits
Preview
Benefit plans: general contours
Definition and types
Purpose
Drivers
Challenges
Superannuation plans and severance pay
Defined benefit plans
Defined contribution plans
Hybrid plans
Severance pay
Health care and other forms of personal insurance
Health care insurance
Workers compensation, disability and life insurance
Leave and carer benefits
Payment for time not worked
Paid parental leave
Childcare and elder care
Other voluntary benefits
Voluntary financial benefits
Voluntary non-financial benefits
Flexible work-time and work–life balance programs
Wellness and well-being programs
Employee assistance programs
Fixed plans versus flexible plans
Fixed benefits
Flexible benefits
Benefits plan design and strategic alignment
Summary
Discussion questions
Case study: Employee benefits – which perks work?
Chapter 8 Recognising and rewarding individual performance
Preview
Merit increments
Straight increments
The merit grid approach
The merits and demerits of merit increments
Merit bonuses
The effectiveness of merit pay
Merit pay in the public sector
Results-based individual incentives
Standard piece rate
‘Scientific’ piece rates
Task-and-time bonus plan
Sales commissions
Goal-based individual bonuses
Non-cash recognition
Non-cash recognition: for and against
Strategic alignment and individual reward and recognition
Summary
Discussion questions
Case study: Developing a non-cash recognition system
Chapter 9 Collective short-term incentive plans
Preview
Collective short-term incentives: rationale and options
Profit-sharing
Varieties of profit-sharing
Profit-sharing and individual performance pay
Pros, cons, impact
Gainsharing
Scanlon Gainshare Plan
Rucker Plan
Improshare Plan
Weighing up single-factor gainsharing
Multifactor gainsharing
Evidence on the gains from gainsharing
Gainsharing: design and implementation
Goal-sharing
Goal-sharing: for and against
Team incentives
Team structure: process, parallel and project teams
Advantages and disadvantages of team incentives
Designing and implementing team incentives
Strategic alignment and collective incentives
Summary
Discussion questions
Case study: Rethinking incentives in Australian retail banking – are collective incentives the ans
Chapter 10 Employee share ownership
Preview
Overview of employee share ownership
Rationale for employee share ownership
Types of employee shares
Share grants/gifts
Share purchase plans
Share option plans
Evaluating employee share ownership
For organisations
For employees
Employee share ownership and supportive HR policies
Strategic alignment considerations with employee share plans/long-term incentives
Summary
Discussion questions
Case study: Axis Bank
Chapter 11 System review, change and development
Preview
Systems thinking and system purpose: a reprise
A framework for system development and change
Strategic alignment and psychological engagement revisited
Articulating a performance and reward philosophy and strategy
Philosophy statement
Strategy statement
Reviewing current practice
Diagnostic data
Prescriptive data
Recommendations for improved performance management practice
Performance management: system and process
Performance criteria
Performance feedback
Recommendations for improved reward practice
Total reward balance
Pay variability
Pay dispersion
Pay level
Pay transparency
Pay mix
Base pay
Benefits
Performance pay/incentives
Implementing change
Rehearsal
Roll-out
Change communication
Summary
Discussion questions
Case study: Beyond the hard sell – rethinking performance and reward practices at Wealth Bank Corp
Chapter 12 New horizons in performance and reward management
Preview
Introduction
Industry 4.0
What is Industry 4.0?
Implications of Industry 4.0 for employees and human resource management
The ‘gig economy’ and new organisational forms
What is the gig economy?
Carrots and sticks – performance management in the gig economy
Benefits in the gig economy
Supply chains and franchising
Impact of generational change
Baby boomers
Gen X
Gen Y (Millennials)
Gen Z
Managing intergenerational diversity
Reality check wrap-up: final thoughts, future prospects and new research
Strategic alignment
Employee engagement
Organisational justice
Workforce diversity
Summary
Discussion questions
Case study: Millennials, Gen Z and the future of performance and reward practice
References
Index
9781108701044 7694
R 658.314 MAN.Ed3
Chapter 1 Performance and reward basics
Preview
Performance and reward management: promise and peril
Performance management basics
What is ‘performance’?
Aims of performance management
Basic requirements for effective performance management
Reward management basics
‘Reward’ and ‘total reward’
Remuneration
Aims of reward management
‘Reality check’ themes
Summary
Discussion questions
Case study: ‘Companies that got rid of performance ratings aren’t doing so well, sadly’
Chapter 2 Strategic alignment and psychological engagement: A systems thinking framework for effecti
Preview
Strategic considerations: dimensions and alignment
Dimensions of strategic alignment: external/vertical and internal/horizontal
Achieving and maintaining external and internal strategic alignment
Business strategy
The employee value proposition
Work design
Managing strategic alignment and misalignment
Psychological engagement: dimensions and determinants
Work behaviour
Intra-personal influences on behaviour
Personality
Motivation
Organisational justice
Organisational trust
An integrated model of psychological engagement
Summary
Discussion questions
Case study: Deloitte Insights, 2018 Global Human Capital Trends Report
Chapter 3 Managing for results
Preview
What are ‘results’?
Measuring results: KRAs, KPIs and goals
Promise and perils of measuring results
Using results-based techniques: goal-setting
Promise and perils of goal-setting
Using results-based techniques: the balanced scorecard
The balanced scorecard ideal
Promise and perils of balanced scorecards
Summary
Discussion questions
Case study: Employee self-regulation of performance I – the influence of evolving technology on th
Chapter 4 Performance appraisal and management
Preview
An overview of work performance assessment
Behavioural assessment
Competency assessment
Sources of assessment information
Behavioural information
Competency information
Common assessment methods in action
Behavioural assessment methods
Competency assessment methods
Common flaws in performance assessment and the shaping of employee performance
Behavioural assessment
Competency assessment
Assessing performance assessment
Behavioural assessment and performance management
Competence assessment and performance management
Performance appraisal: strategic considerations
Summary
Discussion questions
Case study: Employee self-regulation of performance II – the influence of evolving technology on t
Chapter 5 Reviewing, discussing and developing employee performance
Preview
Managing underperformance
Causes of underperformance
From measurement to conversation
Performance review meetings
Review meeting preparation
The reviewer
The assessee
The review meeting
Timing
Content of the meeting
Review meeting styles
‘Tell and sell’
‘Tell and listen’
‘Problem-solving’
Negative feedback
Managers and negative feedback
Employees and negative feedback
Managing underperformance
Developing employees: employee coaching
What is coaching?
GROW model of coaching
Outcomes of coaching
Developing employees: mentoring
What is mentoring?
What is a mentor?
Phases in mentoring
Evaluating mentoring
Performance review and development: strategic alignment considerations
Summary
Discussion questions
Case study: Managing underperformance
Chapter 6 Base pay
Preview
What is ‘base pay’?
Pay for the position versus pay for personal capabilities
Position-based structures
Pay scales
Pay grades
Pricing positions
Market survey methods
Job evaluation methods
Developing a graded base pay structure
Pros and cons of position-based base pay
Person-based base pay structures
Pay bands
Valuing personal capabilities
Pricing skills
Pricing competencies
Developing a banded base pay system
Skill blocks and bands
Competency zones and bands
Pros and cons of person-based pay
Strategic alignment with base pay
Summary
Discussion questions
Case study: Rethinking base pay at Commercial Law Partners
Chapter 7 Employee benefits
Preview
Benefit plans: general contours
Definition and types
Purpose
Drivers
Challenges
Superannuation plans and severance pay
Defined benefit plans
Defined contribution plans
Hybrid plans
Severance pay
Health care and other forms of personal insurance
Health care insurance
Workers compensation, disability and life insurance
Leave and carer benefits
Payment for time not worked
Paid parental leave
Childcare and elder care
Other voluntary benefits
Voluntary financial benefits
Voluntary non-financial benefits
Flexible work-time and work–life balance programs
Wellness and well-being programs
Employee assistance programs
Fixed plans versus flexible plans
Fixed benefits
Flexible benefits
Benefits plan design and strategic alignment
Summary
Discussion questions
Case study: Employee benefits – which perks work?
Chapter 8 Recognising and rewarding individual performance
Preview
Merit increments
Straight increments
The merit grid approach
The merits and demerits of merit increments
Merit bonuses
The effectiveness of merit pay
Merit pay in the public sector
Results-based individual incentives
Standard piece rate
‘Scientific’ piece rates
Task-and-time bonus plan
Sales commissions
Goal-based individual bonuses
Non-cash recognition
Non-cash recognition: for and against
Strategic alignment and individual reward and recognition
Summary
Discussion questions
Case study: Developing a non-cash recognition system
Chapter 9 Collective short-term incentive plans
Preview
Collective short-term incentives: rationale and options
Profit-sharing
Varieties of profit-sharing
Profit-sharing and individual performance pay
Pros, cons, impact
Gainsharing
Scanlon Gainshare Plan
Rucker Plan
Improshare Plan
Weighing up single-factor gainsharing
Multifactor gainsharing
Evidence on the gains from gainsharing
Gainsharing: design and implementation
Goal-sharing
Goal-sharing: for and against
Team incentives
Team structure: process, parallel and project teams
Advantages and disadvantages of team incentives
Designing and implementing team incentives
Strategic alignment and collective incentives
Summary
Discussion questions
Case study: Rethinking incentives in Australian retail banking – are collective incentives the ans
Chapter 10 Employee share ownership
Preview
Overview of employee share ownership
Rationale for employee share ownership
Types of employee shares
Share grants/gifts
Share purchase plans
Share option plans
Evaluating employee share ownership
For organisations
For employees
Employee share ownership and supportive HR policies
Strategic alignment considerations with employee share plans/long-term incentives
Summary
Discussion questions
Case study: Axis Bank
Chapter 11 System review, change and development
Preview
Systems thinking and system purpose: a reprise
A framework for system development and change
Strategic alignment and psychological engagement revisited
Articulating a performance and reward philosophy and strategy
Philosophy statement
Strategy statement
Reviewing current practice
Diagnostic data
Prescriptive data
Recommendations for improved performance management practice
Performance management: system and process
Performance criteria
Performance feedback
Recommendations for improved reward practice
Total reward balance
Pay variability
Pay dispersion
Pay level
Pay transparency
Pay mix
Base pay
Benefits
Performance pay/incentives
Implementing change
Rehearsal
Roll-out
Change communication
Summary
Discussion questions
Case study: Beyond the hard sell – rethinking performance and reward practices at Wealth Bank Corp
Chapter 12 New horizons in performance and reward management
Preview
Introduction
Industry 4.0
What is Industry 4.0?
Implications of Industry 4.0 for employees and human resource management
The ‘gig economy’ and new organisational forms
What is the gig economy?
Carrots and sticks – performance management in the gig economy
Benefits in the gig economy
Supply chains and franchising
Impact of generational change
Baby boomers
Gen X
Gen Y (Millennials)
Gen Z
Managing intergenerational diversity
Reality check wrap-up: final thoughts, future prospects and new research
Strategic alignment
Employee engagement
Organisational justice
Workforce diversity
Summary
Discussion questions
Case study: Millennials, Gen Z and the future of performance and reward practice
References
Index
9781108701044 7694
R 658.314 MAN.Ed3