PERFORMANCE RELATED PAY: OBJECTIVES AND APPLICATION

PERFORMANCE RELATED PAY: OBJECTIVES AND APPLICATION HUMAN RESOURCE MANAGEMENTJOURNAL VOL 2 NO 3 PERFORMANCE RELATED PAY OBJECTIVFSAND APPLICATION centrality of pay to the structure and operation of the employment relationship. The efficiency of pay in pursuit of these objectiveshas, however, always proved to be a doubleedged sword. Its very power and centrality have often resulted in major organisational disruption, as unforeseen and unintended procedural and substantiveconsequencesemerge when new pay systems are applied and then decay. This managerial dilemma has partly been reflected in what are perceived to be payment system 'cycles' or different 'fashions' in approaches to pay. Thus, careful design and implementation of systems facilitating shortterm achievement of managerial objectives have often given way to goal distortion and displacement, as procedural 'slack and 'manipulation' arise within the context of social and political workplace pressures. Two research traditions provide different perspectives on these pay cycles and the dynamics of pay structures and systems within organisations. The first tradition places emphasis on managerial control and provides an insight into the apparently unstable character of pay systems. It sees the design and operation of pay structures and systems as central to management as well as employeeattempts to control a wageeffort bargain whose terms can never be http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Human Resource Management Journal Wiley

PERFORMANCE RELATED PAY: OBJECTIVES AND APPLICATION

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Publisher
Wiley
Copyright
Copyright © 1992 Wiley Subscription Services, Inc., A Wiley Company
ISSN
0954-5395
eISSN
1748-8583
DOI
10.1111/j.1748-8583.1992.tb00258.x
Publisher site
See Article on Publisher Site

Abstract

HUMAN RESOURCE MANAGEMENTJOURNAL VOL 2 NO 3 PERFORMANCE RELATED PAY OBJECTIVFSAND APPLICATION centrality of pay to the structure and operation of the employment relationship. The efficiency of pay in pursuit of these objectiveshas, however, always proved to be a doubleedged sword. Its very power and centrality have often resulted in major organisational disruption, as unforeseen and unintended procedural and substantiveconsequencesemerge when new pay systems are applied and then decay. This managerial dilemma has partly been reflected in what are perceived to be payment system 'cycles' or different 'fashions' in approaches to pay. Thus, careful design and implementation of systems facilitating shortterm achievement of managerial objectives have often given way to goal distortion and displacement, as procedural 'slack and 'manipulation' arise within the context of social and political workplace pressures. Two research traditions provide different perspectives on these pay cycles and the dynamics of pay structures and systems within organisations. The first tradition places emphasis on managerial control and provides an insight into the apparently unstable character of pay systems. It sees the design and operation of pay structures and systems as central to management as well as employeeattempts to control a wageeffort bargain whose terms can never be

Journal

Human Resource Management JournalWiley

Published: Mar 1, 1992

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