Public Employee Compensation and Its Role in Public Sector Strategic Management

Public Employee Compensation and Its Role in Public Sector Strategic Management

Public Employee Compensation and Its Role in Public Sector Strategic Management

Public Employee Compensation and Its Role in Public Sector Strategic Management

Synopsis

Siegel emphasizes the role of compensation system design and decision making in the strategic management of public organizations, including issues of performance improvement. His book begins and ends with consideration of the environment of public organizations, changes in conditions of public employment, and implications for compensation policy and technology. The research literature on pay practices, system design, and evaluation is reviewed. Possible alternatives and generalizations for different pay objectives are suggested in terms of emerging futures.

Excerpt

The title of this book suggests the blending of two major aspects of public organizations: public employee compensation and public sector strategic management. The former has been going on since the founding of the republic in the United States. However, it is still not clear that most public organizations practice strategic management. Strategic management is defined as the guiding of an organization relative to challenges and opportunities appearing in the contingent environment to achieve preset missions and goals.

Modern contingent environments have forced issues of new ways of thinking about the role of compensation in achieving public organizational effectiveness (indeed, survival). The idea of survival points to potentially dire consequences for the nonadaptive public organization. We will explore some of these consequences as they have emerged, particularly those that are compensation related.

In addition to the organizational context or environment we present broad-brush models of the past and particularly the present American civil service. The contemporary model helps us to place the role of compensation in perspective. Popularly held attitudes about the civil service mold a set of expectations for its performance. These expectations drive objectives in compensation, and these objectives relate to instrumentalities for the use of monetary rewards in achieving more important strategic goals. Perhaps the most important thing that can be said about contemporary thinking, in contrast to the older model, is that compensation is seen more as an intervening variable in the better achievement of public purposes than it has been historically. One of the lines of development in the chapters that follow is the explication of how this can take place.

This book seeks to explore ideas for adaptation of organizational compensation policy. Its purpose is not to dwell upon the technology of compensation. However, the reader needs at least a modest level of technical sophistication to understand . . .

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