An extract from the Payfolio series published by North West Thames Regional Health Authority′s Pay Unit which guides managers of local units on decisions which will have to be made on remuneration issues that were previously taken centrally. Identifies the need for both a new management structure to reflect these new responsibilities and a strategic review as prerequisites. The constraints on change include the capacity of the personnel function, the inadequacy of information on labour costs, the assimilation costs of moving to new pay and conditions, the contractual entitlements of individual employees, the continuation of national pay determination, and the attitudes of staff and their representatives. Makes suggestions about making the transition to a local pay strategy in a way which is incremental yet strategic, so that change to new payment systems, structures, grading and staff groups are achieved gradually over time in a way which flows as smoothly as possible from the status quo.
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