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Capturing complexity: developing an integrated approach to analysing HRM in SMEs

This article presents a framework to evaluate HRM in small and medium-sized enterprises (SMEs), using an open systems theoretical perspective. In presenting an open systems perspective the objective is to overcome the limitations of existing theorising in HRM, in particular to facilitate a move away from the ‘small is beautiful’ versus ‘bleak house’ stereotypes evident in much of the literature concerned with HRM in SMEs. The evidence is drawn from six SMEs operating in the Republic of Ireland, using a case study method. The findings show that a complex interplay of external structural factors and internal dynamics shaped HRM in each of the companies. HRM was not the coherent set of practices typically identified in the literature but rather was often informal and emergent. It is argued that the open systems theoretical framework enables a move beyond mere recognition of the complexity and heterogeneity of HRM in SMEs, towards an understanding, accommodation and explanation of particularistic factors

GERMAN SOCIAL HONOR COURTS

Germany\u27s National Socialist regime has prided itself on its ability to maintain peaceful employer-employee relations at a time when other countries of the world are seriously troubled by industrial disturbances. The German government has actively intervened to see that neither employers nor workers overstep bounds set for them by Nazi social and economic policies. Dr. Robert Ley, head of the German Labor Front, has said that the government owes its success in this field to measures that are a healthy combination of freedom and compulsion. Since Hitler\u27s advent to power, the former organizations of both employers and employees have largely been supplanted by new institutions. The new structure can exist only so long as it is supported by the authority of the Nazi government. The transition to the present system has been brought about through the use of force and through alterations in the legal framework within which employer-employee relations have been carried on. In this new deal for German labor, the social honor courts assume a role of great significance

School-Based Performance Award Programs, Teacher Motivation, and School Performance: Findings From a Study of Three Programs

Building on a strong foundation of research and experience with educational reform across the nation, in the 1990s educational policymakers undertook sophisticated comprehensive educational reform efforts. The centerpiece of these reforms was the creation of state educational standards, assessments, and goals, and the realignment of state and local resources to support the achievement of these goals. A number of states and districts have embraced the idea of performance-based accountability (Fuhrman, 1999), in which rewards and sometimes sanctions are used as incentives for measurable improvement in student achievement. Some jurisdictions have modified their teacher compensation systems in order to provide incentives that support improving student achievement. Learning from the relative failure of prior efforts to realign teacher compensation via individual performance pay systems (Murnane and Cohen, 1986), states and districts undertaking compensation reform in the 1990s have tended to focus on innovations such as school-based performance awards (SBPAs) and pay based on knowledge and skills, which are thought to be better ways of supporting collaborative cultures in schools (Odden and Kelley, 1997). This report provides an overview of the findings of a series of studies of SBPA programs conducted by the Consortium for policy Research in Education between 1995 and 1998. The research reported here focuses on two such programs, in Kentucky and Charlotte-Mecklenburg (North Carolina), that pay teachers bonuses, and on one program, in Maryland, that provides the award to schools to use for activities and improvements

Enhancing Teacher Quality Through Knowledge- and Skills-Based Pay

The 1989 Education Summit established the National Education Goals that spurred states to set standards and assess educational outcomes (Patton and Thompson, 1999). A decade into standards-based reform, the 1999 Education Summit identified two important policy areas that have emerged to carry out these goals: teacher quality and accountability (National Education Summit, 1999). Research supports the important relationship between teacher quality and student achievement (Darling-Hammond and Ball, 1998; Ferguson and Ladd, 1996; Sanders and Horn, 1994; Wright, Horn, and Sanders, 1997). Concerns about teacher quality led the National Commission on Teaching and America’s Future to recommend that states and districts consider better ways of linking pay to the development of teacher knowledge and skills (National Commission on Teaching and America’s Future, 1996). Exploring better ways of using pay to enhance teacher quality is also supported, to varying degrees, by teacher unions and associations. Knowledge- and skills-based pay systems are emerging as a potentially promising way of leveraging the investment in teacher pay to improve teacher quality and to provide clearer signals to teachers about how they should focus their professional energies. This CPRE Policy Brief reports on our experiences in working with policymakers and studying knowledge- and skills-based pay systems. We provide guidance on important design issues for these systems, and recommend ways state and district policymakers can strengthen the capacity for and pursue knowledge- and skills-based pay

Teacher Performance Pay: Synthesis of Plans, Research, and Guidelines for Practice

The single salary schedule has ruled the delivery of teacher pay for decades, despite long-standing criticism that it fails to link some portion of teachers\u27pay to their performance. In recent years, there has been some experimentation with performance pay for teachers. Early attempts focused on the development of merit pay, in which pay raises were linked to subjective evaluations of teacher performance. Subsequent evaluations of merit pay plans questioned their effectiveness, especially given their limited survival, though it was acknowledged that the problem was not necessarily merit pay per se, but the way the plans were designed, implemented, and administered (Hatry, Greiner, & Ashford, 1994). Notwithstanding these unsuccessful experiences, national surveys have found that teacher attitudes toward some forms of performance pay are not unfavorable (Ballou, 2001; Ballou & Podgursky, 1993). In the 1990s, other forms of performance pay began to emerge at the state and district levels. Notable were school-based performance awards and knowledge- and skill-based pay plans. Elements from these plans have now been incorporated into combined pay plans. And while none of these plans has been widely adopted, they have drawn intensive national scrutiny and study. This Policy Brief focuses on the nature and effectiveness of these plans. We first provide generic descriptions of three types of plans, followed by a synthesis of research results on their effectiveness. A set of guidelines for effective practice is then provided to help states and districts embarking on these forms of performance pay. We conclude with a look ahead at recent developments in performance pay plans and other deviations from the traditional teacher salary schedule

High-performance work systems and workplace performance in small, medium-sized and large firms

This paper draws on the Organisational Growth and Development (OGD) lifecycle model to extend understanding of congruence or ‘best fit’ theory within strategic human resource management (SHRM) debates on the relationship between high performance work systems (HPWS) and performance. With reference to management control theory, economies of scale and the availability of specialist managerial skills, the paper hypothesises that while an HPWS-performance relationship might exist in small, medium-sized and large firms, the relationship will be stronger in large firms than in both small and medium-sized firms, and stronger in medium-sized firms than in small firms. Analysis of data from the British Workplace Employment Relations Survey demonstrates, however, that there is no association between HPWS and workplace performance in medium-sized firms, in contrast to the positive relationship between HPWS and performance found in large firms and between HPWS and labour productivity in small firms

Signaling in Secret: Pay-for-Performance and the Incentive and Sorting Effects of Pay Secrecy

Key Findings: Pay secrecy adversely impacts individual task performance because it weakens the perception that an increase in performance will be accompanied by increase in pay; Pay secrecy is associated with a decrease in employee performance and retention in pay-for-performance systems, which measure performance using relative (i.e., peer-ranked) criteria rather than an absolute scale (see Figure 2 on page 5); High performing employees tend to be most sensitive to negative pay-for- performance perceptions; There are many signals embedded within HR policies and practices, which can influence employees’ perception of workplace uncertainty/inequity and impact their performance and turnover intentions; and When pay transparency is impractical, organizations may benefit from introducing partial pay openness to mitigate these effects on employee performance and retention

Standards-Based Teacher Evaluation as a Foundation for Knowledge- and Skill-Based Pay

State accountability systems and the federal No Child Left Behind Act have put additional demands on schools and teachers to improve teacher quality and improve student achievement. Many researchers (e.g., Cohen, 1996; Corcoran & Goertz, 1995; Floden, 1997; Newman, King, & Rigdon, 1997) have argued that such improvements will require a substantial increase in the instructional capacity of schools and teachers. One strategy for capacity building is to provide teachers with incentives to improve their performance, knowledge, or skills. The incentive strategy requires the design and implementation of alternative teacher compensation systems that depart from the single salary schedule (Odden, 2000; Odden & Kelley, 2002). Though slow to take hold, the incentive strategy is currently being pursued by several states (Peterson, 2006). Most of these new or proposed plans link pay to combinations of assessments of teacher performance, acquisition of new knowledge and skills, and student test score gains. Denver\u27s widely followed Pro Comp plan also contains these components. The Teacher Compensation Group of the Consortium for Policy Research in Education (CPRE) has been studying the design and effectiveness of such systems for nearly a decade. We initially focused on school-based performance award programs, in which each teacher in a school receives a bonus for meeting or exceeding schoolwide student achievement goals (Heneman, 1998; Heneman & Milanowski, 1999; Kelley, Heneman, & Milanowski, 2002; Kelly, Odden, Milanowski, & Heneman, 2000). We then shifted our attention to knowledge- and skill-based pay (KSBP) plans, an approach that provides teachers with base pay increases for the acquisition and demonstration of specific knowledge and skills thought to be necessary for improving student achievement. Our initial research described a variety of experiments with KSBP plans (see Odden, Kelley, Heneman, & Milanowski, 2001). We found plans that were rewarding numerous knowledge and skills, including (a) additional licensure or certification, (b) participation in specific professional development activities, (c) National Board Certification, (d) mastery of specific skill blocks such as technology or authentic assessment, (e) leadership activities, and (f) teacher performance as measured by a standards-based teacher evaluation system. We also found districts experimenting with standards-based teacher evaluation without an intended pay link. As described below, in standards-based teacher evaluation systems, teachers\u27 performance is evaluated against a set of standards that define a competency model of effective teaching. Such systems replace the traditional teacher evaluation system and seek to provide a more thorough description and accurate assessment of teacher performance. Findings from our research on some of these systems are the focus of this issue of CPRE Policy Briefs

The Motivational Effects of School-Based Performance Awards

From 1995-1998, CPRE teacher compensation researchers conducted extensive interviews and survey questionnaires of teachers and principals in three sites to measure the motivational effects of school-based performance award (SBPA) programs. When a school met preset educational objectives, usually related to increases in student achievement, the SBPA programs in Charlotte-Mecklenburg (North Carolina) and Kentucky provided salary bonuses to all the teachers in the school and the SBPA program in Maryland provided a monetary award to the school for school improvements. CPRE researchers found that the SBPA programs in two of the three sites helped teachers focus on student performance goals. However, the motivational power of the programs varied due to differences in teachers’ beliefs. For instance, it mattered whether teachers believed their individual effort would lead to increases in schoolwide student performance, the SBPA system was fair and the award amount was worth the extra effort and stress, and that they would be given the award if they could produce the improved performance results. The relationship between teachers who were motivated by school-based performance awards or sanctions and improvements in school performance also varied and may have been attributable to differences in the actual programs as well as the local context