A Handbook of Human Resource Management Practice – Armstrong Michael

PART I MANAGING PEOPLE
1 Human resource management 3
Human resource management defined 3; Human resource system 4;
Models of HRM 5; Aims of HRM 8; Policy goals of HRM 10;
Characteristics of HRM 11; Reservations about HRM 15; HRM and
personnel management 18; How HR impacts on organizational
performance 20; HRM in context 24
2 Human capital management 29
Human capital management defined 29; Human capital management
and human resource management 30; The concept of human capital 33;
Human capital management: practice and strategy 36; Human capital
measurement 37; Human capital reporting 47
3 Role of the HR function 53
The overall role of the HR function 54; The role of HR in facilitating and
managing change 54; Variations in the practice of HR 56; Organizing the
HR function 57; Marketing the HR function 59; Preparing, justifying and
protecting the HR budget 60; Outsourcing HR work 61; Shared HR
services 63; Using management consultants 64; Evaluating the HR
function 66
4 The role of the HR practitioner 71
The basic roles 71; Models of the practitioners of HR 76; Gaining support
and commitment 81; Ethical considerations 84; Professionalism in HRM
85; Ambiguities in the role of HR practitioners 87; Conflict in the HR
contribution 88; The competencies required by HR professionals 89
5 Role of the front-line manager 93
The basic role 93; The line manager and people management 94; The
respective roles of HR and line management 95; The line manager’s role
in implementing HR policies 97; How to improve front-line managers as
people managers 98
6 International HRM 99
International HRM defined 99; Issues in international HRM 99;
International organizational models 100; Convergence and
divergence 101; Cultural diversity 102; Think globally and act
locally 104; International HR policies 104; Managing expatriates 104
PART II HUMAN RESOURCE MANAGEMENT PROCESSES
7 Strategic HRM 113
The concept of strategy 113; Strategic HRM defined 115; Aims of
strategic HRM 116; Approaches to strategic HRM 117; Implementing
strategic HRM 121
8 HR strategies 123
HR strategies defined 123; Purpose 124; The distinction between
strategic HRM and HR strategies 124; Types of HR strategies 124;
Criteria for an effective HR strategy 129
vi ❚ Contents
9 Developing and implementing HR strategies 131
Propositions about the development process 132; Levels of strategic
decision-making 132; Strategic options and choices 133; Approaches
to HR strategy development 134; Methodology for strategy
development 140; Conducting a strategic review 141; Setting out the
strategy 143; Implementing HR strategies 143
10 HRM policies 147
What human resource policies are 147; Why have HR policies 147; Do
policies need to be formalized? 148; HR policy areas 148; Formulating
HR policies 156; Implementing HR policies 157
11 Competency-based HRM 159
Types of competencies 160; Competency frameworks 161; Reasons for
using competencies 163; Coverage of competencies 164; Use of
competencies 165; Developing a competency framework 167; Defining
technical competencies 169; Keys to success in using competencies 169;
Emotional intelligence 170
12 Knowledge management 173
Knowledge management defined 174; The concept of knowledge 175;
The purpose and significance of knowledge management 176;
Approaches to knowledge management 176; Knowledge management
systems 178; Knowledge management issues 178; The contribution of
HR to knowledge management 180
13 Analysing roles, competencies and skills 181
Role analysis 187; Competency analysis 193; Skills analysis 198
PART III WORK AND EMPLOYMENT
14 The nature of work 205
What is work? 205; Theories about work 206; Organizational factors
affecting work 208; Changing patterns of work 210; Unemployment 212;
Attitudes to work 212; Job-related well-being 212
Contents ❚ vii
15 The employment relationship 215
The employment relationship defined 215; Nature of the employment
relationship 215; Basis of the employment relationship 217; Defining the
employment relationship 217; Significance of the employment
relationship concept 218; Changes in the employment relationship 218;
Managing the employment relationship 218; Trust and the employment
relationship 220
16 The psychological contract 225
The psychological contract defined 225; The significance of the
psychological contract 227; The nature of the psychological contract 228;
How psychological contracts develop 229; The changing nature of the
psychological contract 231; The state of the psychological contract 233;
Developing and maintaining a positive psychological contract 234; The
state of the psychological contract 2004 235
PART IV ORGANIZATIONAL BEHAVIOUR
17 Characteristics of people 239
Individual differences 239; Attitudes 244; Influences on behaviour
at work 244; Attribution theory – how we make judgements about
people 245; Orientation to work 246; Roles 247; Implications for HR
specialists 248
18 Motivation 251
The process of motivation 252; Types of motivation 253; Motivation
theory 254; Instrumentality theory 254; Content (needs) theory 255;
Process theory 258; Herzberg’s two-factor model 262; The relationship
between motivation, job satisfaction and money 263; Job satisfaction 264;
Motivation and money 267; Motivation strategies 268
19 Organizational commitment and engagement 271
The concepts of commitment and engagement 271; Organizational
commitment 273; Influences on commitment and employee
satisfaction 279; Engagement 281
viii ❚ Contents
20 How organizations function 283
Basic considerations 283; Organization theories 283; Organization
structure 288; Types of organization 289; Organizational processes 292
21 Organizational culture 303
Definitions 303; The significance of culture 305; How organizational
culture develops 306; The diversity of culture 306; The components of
culture 307; Classifying organizational culture 309; Assessing
organizational culture 311; Measuring organizational climate 312;
Appropriate cultures 313; Supporting and changing cultures 314
PART V ORGANIZATION, DESIGN AND DEVELOPMENT
22 Organization design 319
The process of organizing 319; Aim 320; Conducting organization
reviews 321; Organization analysis 321; Organization diagnosis 322;
Organization planning 324; Responsibility for organization design 325
23 Job design and role development 327
Jobs and roles 327; Factors affecting job design 328; Job design 330; Job
enrichment 332; Self-managing teams 333; High-performance work
design 334; Role development 334
24 Organizational development, change and transformation 337
What is organizational development? 337; Organization
development 338; Change management 343; Organizational
transformation 352; Development and change processes 355
PART VI PEOPLE RESOURCING
People resourcing defined 359; People resourcing and HRM 359;
Plan 361
25 Human resource planning 363
The role of human resource planning 363; Aims of human resource
planning 368; The process of human resource planning 368; Resourcing
strategy 371; Scenario planning 372; Estimating future human resource
requirements 373; Labour turnover 375; Action planning 382; The
contribution of HR to human resource planning 388
Contents ❚ ix
26 Talent management 389
Talent management defined 390; The elements of talent
management 390; Creating a great place to work 394; Attraction
strategies 395; Retention strategies 397; Career management 399;
Talent management for knowledge workers 407; Talent management
in practice 407
27 Recruitment and selection 409
The recruitment and selection process 409; Defining requirements 409;
Attracting candidates 414; Advertising 416; E-recruitment 420;
Outsourcing recruitment 423; Educational and training
establishments 424; Application forms 425; Sifting applications 425;
Selection methods 429; Types of interviews 430; Assessment centres 430;
Graphology 431; Choice of selection methods 432; Improving the
effectiveness of recruitment and selection 432; References,
qualifications and offers 434; Final stages 436
28 Selection interviewing 439
Purpose 439; Advantages and disadvantages of interviews 440;
The nature of an interview 441; Interviewing arrangements 442;
Preparation 443; Timing 444; Planning and structuring interviews 444;
Interviewing approaches 445; Interview techniques – starting and
finishing 450; Interviewing techniques – asking questions 450; Selection
interviewing skills 457; Coming to a conclusion 458; Dos and don’ts of
selection interviewing 459
29 Selection tests 461
Psychological tests: definition 461; Purpose of psychological tests 461;
Characteristics of a good test 462; Types of test 463; Interpreting test
results 467; Choosing tests 468; The use of tests in a selection
procedure 468
30 Introduction to the organization 471
Induction defined 471; Why taking care about induction is important 472;
Reception 473; Documentation 474; Company induction – initial
briefing 475; Introduction to the workplace 475; Formal induction
courses 476; On-the-job induction training 477
x ❚ Contents
31 Release from the organization 479
General considerations 479; Redundancy 482; Outplacement 485;
Dismissal 487; Voluntary leavers 490; Retirement 490
PART VII PERFORMANCE MANAGEMENT
32 The basis of performance management 495
Performance management defined 495; Aims of performance
management 496; Characteristics of performance management 496;
Understanding performance management 497; Guiding principles of
performance management 499; Performance appraisal and performance
management 500; Views on performance management 500
33 The process of performance management 503
Performance management as a process 503; Performance management as
a cycle 503; Performance agreements 504; Managing performance
throughout the year 508; Reviewing performance 509; Rating
performance 512; Dealing with under-performers 515; Introducing
performance management 517
34 360-degree feedback 521
360-degree feedback defined 521; Use of 360-degree feedback 522;
Rationale for 360-degree feedback 523; 360-degree feedback –
methodology 524; Development and implementation 526; 360-degree
feedback – advantages and disadvantages 527; 360-degree feedback –
criteria for success 528
PART VIII HUMAN RESOURCE DEVELOPMENT
35 Strategic human resource development 533
Strategic HRD defined 533; Strategic HRD aims 534; Components of
HRD 534; HRD and HRM 535; The process of learning and
development 535; Strategies for HRD 536; Human resource development
philosophy 537
36 Organizational learning and the learning organization 539
Organizational learning 540; The learning organization 543
Contents ❚ xi
37 How people learn 549
Learning defined 549; The learning process 550; Learning theory 550;
Learning styles 552; Learning to learn 554; The learning curve 554; The
motivation to learn 555; The implications of learning theory and
concepts 556
38 Learning and development 559
Learning 559; Development 570; Training 575
39 E-learning 583
What is e-learning? 583; Aim of e-learning 584; The technology of
e-learning 584; The e-learning process 585; The business case for
e-learning 586; Developing e-learning processes 588
40 Management development 591
Aims of management development 592; Management development:
needs and priorities 592; The requirements, nature and elements of
management development 593; Management development activities 594;
Approaches to management development 596; Emotional intelligence
and leadership qualities 602; Responsibility for management
development 603
41 Formulating and implementing learning and development strategies 607
Making the business case 607; Developing a learning culture 609;
Identifying learning needs 610; Planning and implementing learning and
development programmes 612; Evaluation of learning 615
PART IX REWARDING PEOPLE
42 Reward management 623
Reward management defined 623; The aims of reward management 624;
The philosophy of reward management 624; The elements of reward
management 625; Total reward 629; Reward management for directors
and executives 634; Reward management for sales staff 636; Paying
manual workers 636
xii ❚ Contents
43 Strategic reward 643
Reward strategy defined 643; Why have a reward strategy? 644; The
structure of reward strategy 644; The content of reward strategy 645;
Guiding principles 649; Developing reward strategy 649; Components of
an effective reward strategy 651; Reward strategy priorities 652;
Examples of reward strategies 653; Implementing reward strategy 656;
Reward strategy and line management capability 657
44 Job evaluation 659
Job evaluation defined 660; Analytical job evaluation 660; Non-analytical
job evaluation 664; The incidence of job evaluation 666; Computerassisted job evaluation 667; Criteria for choice 668; The case for and
against job evaluation 671; Designing a point-factor job evaluation
scheme 672; Conclusions 679
45 Market rate analysis 681
Purpose 681; The concept of the market rate 681; The information
required 682; Job matching 682; Presentation of data 683; Sources of
information 683
46 Grade and pay structures 689
Grade structure defined 689; Pay structure defined 690; Guiding
principles for grade and pay structures 690; Types of grade and pay
structure 691; Designing grade and pay structures 698
47 Contingent pay 707
Contingent pay defined 708; The incidence of contingent pay 708; The
nature of individual contingent pay 709; Individual contingent pay as a
motivator 709; Arguments for and against individual contingent pay 710;
Alternatives to individual contingent pay 712; Criteria for success 713;
Performance-related pay 713; Competence-related pay 714;
Contribution-related pay 716; Skill-based pay 718; Service-related
pay 720; Choice of approach 721; Readiness for individual contingent
pay 721; Developing and implementing individual contingent pay 724;
Team-based pay 724; Organization-wide schemes 725
Contents ❚ xiii
48 Employee benefits, pensions and allowances 729
Employee benefits 729; Occupational pension schemes 731; Allowances
and other payments to employees 734
49 Managing reward systems 737
Reward budgets and forecasts 737; Evaluating the reward system 739;
Conducting pay reviews 740; Control 744; Reward procedures 745;
Responsibility for reward 746; Communicating to employees 748
PART X EMPLOYEE RELATIONS
Employee relations defined 751; Plan 752
50 The framework of employee relations 753
The elements of employee relations 754; Industrial relations as
a system of rules 754; Types of regulations and rules 755; Collective
bargaining 756; The unitary and pluralist views 758; The reconciliation of
interests 759; Individualism and collectivism 759; Voluntarism and its
decline 759; The HRM approach to employee relations 761; The context
of industrial relations 762; Developments in industrial relations 763; The
parties to industrial relations 766; Role of the HR function in employee
relations 771
51 Employee relations processes 773
Employee relations policies 774; Employee relations strategies 778;
Employee relations climate 779; Union recognition and
de-recognition 781; Collective bargaining arrangements 783; Informal
employee relations processes 788; Other features of the industrial
relations scene 789; Managing with trade unions 791; Managing
without trade unions 792
52 Negotiating and bargaining 795
The nature of negotiating and bargaining 795; Negotiating 796;
Negotiating and bargaining skills 803
xiv ❚ Contents
53 Employee voice 807
The concept of employee voice 807; Involvement and participation 808;
Purposes of employee voice 808; The framework for employee voice 808;
Expression of employee voice 809; Factors affecting choice 810; Forms of
employee voice 810; Joint consultation 811; Attitude surveys 812;
Suggestion schemes 814; Planning for voice 815
54 Communications 817
Communication areas and objectives 819; Communications strategy 819;
Communication systems 821
PART XI HEALTH, SAFETY AND WELFARE
55 Health and safety 829
Managing health and safety at work 830; The importance of health
and safety in the workplace 830; Benefits of workplace health
and safety 831; Health and safety policies 832; Conducting risk
assessments 833; Health and safety audits 836; Safety inspections 838;
Occupational health programmes 838; Managing stress 839; Accident
prevention 841; Measuring health and safety performance 841;
Communicating the need for better health and safety practices 842;
Health and safety training 843; Organizing health and safety 843
56 Welfare services 845
Why provide welfare services? 845; What sort of welfare services? 847;
Individual services 848; Group welfare services 851; Provision of
employee welfare services 851; Internal counselling services 852;
Employee assistance programmes 852
PART XII EMPLOYMENT AND HRM SERVICES
57 Employment practices 857
Terms and conditions and contracts of employment 858; Mobility
clauses 860; Transfer practices 860; Promotion practices 861; Flexible
working 862; Attendance management 863; Equal opportunity 866;
Ethnic monitoring 867; Managing diversity 868; The Data
Protection Act 869; Sexual harassment 870; Smoking 872; Substance
abuse at work 873; Bullying 873; AIDS 874; E-mails 874; Work-life
balance 875
Contents ❚ xv
58 HRM procedures 879
Grievance procedure 880; Disciplinary procedure 881; Capability
procedure 883; Redundancy procedure 885
59 Computerized human resource information systems 889
Benefits of a computerized human resource information system 890;
HR information strategy 890; The functions of a computerized HR
system 891; The technical infrastructure 892; Rating of system
features 892; An effective system 893; Problems and how to deal with
them 894; Developing a computerized HR information system 895;
Applications 899; Auditing the system 906
Appendix: Example of an attitude survey 907
References 911
Subject index 953
Author index 977