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Management Style and FairPayment
Tom Husband
This article discusses the relationship between management style within a firm and the procedures used to determine internal wage and salary differentials. At a time when management styles are apparently becoming less authoritarian and paternalistic in favour of greater worker participation there is obviously a danger of firms using payment techniques which are inappropriate to the current management/worker relationship. Some simple models of workers and organization are used to identify four broad styles of management. These styles are then related to the job evaluation and performance rating techniques in common use in British industry today. Some general conclusions are drawn concerning future trends in payment to suit management style.
Introduction
Problems of internal pay structuring have always been of keen interest to both managers and students of British industry. In recent years however the setting of rational and fair pay differentials has taken on a particular significance. Our social and managerial attitudes to criteria for reward are changing fast. The whole question of pay relativities is now seen to be central to the establishment of a just industrial society. Within individual firms managers and employees are questioning the traditional approaches to work structuring and wage payment. There is a distinct move from both sides of industry towards a greater degree of employee consultation and participation in the running of the firm. This trend has brought with it fresh approaches to the analysis of work and the determination of equitable wage and salary differentials.
A great many British companies have already applied themselves to solving the dynamic problems of work analysis and reward. The majority are probably only now deciding how best to approach these same problems. It is fair to say that a great deal of confusion and even controversy surrounds the issues involved. In the last decade managers have be
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