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Reviews reward management practice in the construction industry, based on a postal survey of larger construction firms. The research results provide little evidence of thorough‐going use of reward management to encourage and reinforce organizational change. Collective agreements survive for manual employees. Non‐manual employees are loosely grouped in broad‐banded grading structures with significant scope for managerial discretion in the treatment of individual salaries. However, there is little evidence of developed performance management systems. The absence of more formalized reward systems may provide a short‐term benefit in allowing considerable flexibility but may have negative implications for long‐term productivity, the control of wage costs and the availability of skills. Given the uneven gender balance, existing pay systems could also give rise to claims for equal pay.

A postal survey of companies registered in Scotland considered various occupational pension issues. A major finding was the strong managerial belief (but absence of hard evidence) that pension schemes had positive recruitment and motivational effects. Ad hoc‐ery ‐ in the sense of expediency ‐ might help to explain this lack of evidence. Nevertheless, schemes could fulfil certain covert objectives, indicative of a more purposive management. The relationships between pension schemes and human resource management (HRM) are shown to be complex. Aggregate pension provisions seems to run counter to the individualistic thrust of HRM. However, early retirements and shifts into money purchase schemes for some employees might reflect a distinction between “core” and “periphery” employees, as well as “hard” and “soft” HRM approaches.

The 1986 Green Paper on Profit‐related Pay (PRP) saw the initiative as contributing to the elimination of the “them and us mentality” from British industry. Considers the impact of PRP and shows the Green Paper’s view to be optimistic. This conclusion derives from an examination of the PRP scheme and its context within government policies on taxation, employment, industrial democracy and industrial relations. These are shown to be exacerbating the inequalities of reward and power out of which the categories “them and us” are structured. Given this, it is difficult to see PRP promoting industrial unitarism.

Senior management in the newly privatized water companies have been keen to secure employee commitment to the new commercial goals they are now pursuing. Considers the use of profit sharing as a rhetorical device for this purpose. The introduction of profit sharing schemes was intended by management not only to assist in the construction of a new version of organizational reality, but more particularly to communicate to organizational members the quite different ideological conceptualization of organizational purposes and activities associated with the change in status from public sector water authority to private sector water company. Reports research based on documentary evidence and interviews with managers from six of the new water companies which provides scope for comparisons between the companies high‐lighting different interpretations of the role profit sharing may play in the processes of organizational change.

Conventional wisdom is that decentralized bargaining, performance pay and individualized remuneration schemes enable managers to utilize human resources more effectively. Examines employers’ recent experiences of such arrangements by drawing on data on company pay policies. Argues that moves to fragment bargaining and individualize reward systems have created new difficulties and problems in the management of pay, and that such initiatives can have costly consequences for employers.

Provides a framework for understanding the motivational influences on behaviour and discusses a way forward for reward systems that will encourage behaviour consistent with a quality organization. Explores a shift in thinking away from pay being associated with status towards pay being associated with contribution. Outlines such concepts as merit pay, profit sharing, performance bonus and pay for competence. Suggests that with an understanding of people and work, high levels of effective behaviour can be encouraged by imaginative recognition/pay systems reinforced by the appropriate management style.

The effect of variable pay schemes on workplace absenteeism is estimated using two cross-sections of private sector British establishments. Establishments that explicitly link pay with individual performance are found to have significantly lower absence rates. The effect is stronger for establishments that offer variable pay schemes to a greater share of their non-managerial workforce. Matched employer–employee data suggest that the effect is robust to a number of sensitivity tests. Establishments that tie a greater proportion of employees’ earnings to variable pay schemes experience lower absence rates. Quintile regressions suggest that the effect is greater among establishments with a higher than average (‘sustainable’) absence rate. Finally, panel data suggest that a feedback mechanism is present; high absenteeism in the past is correlated with a greater future incidence of individual variable pay schemes, which, in turn, is correlated with lower current absence rates.

Discusses performance‐related pay schemes, highlighting their importance in stimulating individuals to higher levels of achievement. Explores how the engineer, the academic, the politician and the grocer′s daughter have all contributed to the present attitude towards reward and motivation. Outlines what exactly is rewarded and how, company‐wide profit share schemes are designed to promote greater acceptance of the profit motive and a climate of co‐operating and working together. Reviews six principles of reward and concludes with the views of the critics.

States that companies are confronted by increasing competition and changing employment practices; struggling with recession conditions and searching for excellence resulting in the impetus behind the adoption of new forms of work organization. Addresses the impact of human resource management (HRM) and total quality management (TQM) as organizations continually strive to adapt to radical change in pursuit of survival. Two companies were selected for inclusion in the business case analysis. Besides a number of concluding factors, presents a framework specifically designed to enhance successful firms and assist companies on the road to introducing programmes of HRM and TQM.

This paper investigates which company characteristics affect the decision to introduce profit‐sharing. Unlike most studies, this paper relies on a ten‐year panel. The results presented in this paper are based on the estimation of a panel data fixed‐effect logit model. Given that they are immune from heterogeneity bias, it is believed that these results are more reliable than those obtained by estimating cross‐sectional models. These results are in line with the common findings of the literature. Companies that are more likely to introduce profit‐sharing (PS) are larger firms which invest more, due to the lower cost of debt, and tend to pay higher wages as an incentive to boost the initially lower productivity. These companies are more likely to undertake investment projects which support the interpretation of PS as a risk‐sharing device.