01
The essence of
human resource
management (HRM)
K e y Co n C e P t s a n d t e r M s
Added value
Humanism
Agency theory
Institutional theory
AMO theory
Matching model of HRM
Commitment
Motivation
Contextual model of HRM
Organizational behaviour theory
Contingency theory
Organizational capability
European model of HRM
Resource-based theory
5-P model of HRM
Resource dependence theory
Hard HRM
Soft HRM
Harvard framework
Strategic alignment
HR philosophy
Strategic human resource management
Human capital theory
(SHRM)
Human relations
Transaction costs theory
Human resource management (HRM)
Unitarist
L e a r n I n g o u tCoM e s
On completing this chapter you should be able to define these key concepts. You should
also know about:
●
The fundamental concept of HRM and
how it developed
●
The meaning of HRM
●
The goals of HRM
●
The philosophy of HRM
Armstrong's Handbook of HRM Practice_print-ready.indb 3
●
The underpinning theories
●
The reservations made about HRM
●
Models of HRM
●
The position of HRM today
2/20/2014 3:41:06 PM
4
Part 1 The Practice of Human Resource Management
Introduction – the HRM
concept
Human resource management (HRM) is concerned
with all aspects of how people are employed and
managed in organizations. It covers the activities of
strategic HRM, human capital management, know­
ledge management, corporate social responsibility,
organization development, resourcing (workforce
planning, recruitment and selection and talent manage­
ment), learning and development, performance and
reward management, employee relations, employee
well-being and the provision of employee services.
It also has an international dimension. As described
in Chapter 3, HRM is delivered through the HR
architecture of systems and structures, the HR function and, importantly, line management.
The practice of referring to people as resources
as if they were any other factor of production is often
criticised. Osterby and Coster (1992: 31) argued that:
‘The term “human resources” reduces people to the
same category of value as materials, money and technology – all resources, and resources are only valuable to the extent they can be exploited or leveraged
into economic value.’ People management is sometimes preferred as an alternative, but in spite of its
connotations, HRM is most commonly used.
The development of the HRM
concept
The term HRM has largely taken over that of
‘personnel management’, which took over that
of ‘labour management’ in the 1940s, which took
over that of ‘welfare’ in the 1920s (the latter process
emerged in the munitions factories of the First
World War). HRM largely replaced the human
relations approach to managing people founded
by Elton Mayo (1933) who based his beliefs on the
outcome of the research project conducted in the
1920s known as the Hawthorne studies. Members
of this school believed that productivity was directly
related to job satisfaction and that the output of
people would be high if someone they respected
took an interest in them. HRM also shifted the
emphasis away from humanism – the belief held by
writers such as Likert (1961) and McGregor (1960)
Armstrong's Handbook of HRM Practice_print-ready.indb 4
that human factors are paramount in the study of
organ­izational behaviour and that people should be
treated as responsible and progressive beings.
An early reference to human resources was
made by Bakke (1966). Later, Armstrong (1977: 13)
observed that in an enterprise ‘the key resource
is people’. But HRM did not emerge in a fully
fledged form until the 1980s through what might
be called its founding fathers. These were the US
academics Charles Fombrun and his colleagues
in the ‘matching model’, and Michael Beer and his
colleagues in the ‘Harvard framework’ as described
on page 9.
In the UK they were followed by a number of commentators who developed, explained and frequently
criticized the concept of human resource management. Legge (2005: 101) commented that: ‘The term
[HRM] was taken up by both UK managers (for
example, Armstrong, 1987; Fowler, 1987) and UK
academics’. Hendry and Pettigrew (1990: 18) stated
that HRM was ‘heavily normative from the start:
it provided a diagnosis and proposed solutions’.
They also mentioned that: ‘What HRM did at this
point was to provide a label to wrap around some
of the observable changes, while providing a focus
for challenging deficiencies – in attitudes, scope,
coherence, and direction – of existing personnel
management’ (ibid: 20). Armstrong (1987: 31) argued
that:
HRM is regarded by some personnel managers
as just a set of initials or old wine in new bottles.
It could indeed be no more and no less than
another name for personnel management, but as
usually perceived, at least it has the virtue of
emphasising the virtue of treating people as
a key resource, the management of which is the
direct concern of top management as part of the
strategic planning processes of the enterprise.
Although there is nothing new in the idea,
insufficient attention has been paid to it in
many organizations.
However, commentators such as Guest (1987) and
Storey (1995) regarded HRM as a substantially different model built on unitarism (employees share
the same interests as employers), individualism, high
commitment and strategic alignment (integrating
HR strategy with the business strategy). It was also
claimed that HRM was more holistic than traditional personnel management and that, importantly,
2/20/2014 3:41:06 PM
Chapter 1 The Essence of HRM
it emphasized the notion that people should be
regarded as assets rather than variable costs.
The conceptual framework of HRM
HRM as conceived in the 1980s had a conceptual
framework consisting of a philosophy underpinned
by a number of theories drawn from the behavioural
sciences and from the fields of strategic management, human capital and industrial relations. The
HRM philosophy has been heavily criticized by
academics as being managerialist and manipulative
but this criticism has subsided, perhaps because it
became increasingly evident that the term HRM
had been adopted as a synonym for what used to be
called personnel management. As noted by Storey
(2007: 6): ‘In its generic broad and popular sense
it [HRM] simply refers to any system of people
management.’
HRM practice today
HRM practice is no longer governed by the original
philosophy – if it ever was. It is simply what HR
people and line managers do. Few references are
made to the HRM conceptual framework. This is
a pity – an appreciation of the goals, philosophy
and underpinning theories of HRM and the various
HRM models provides a sound basis for understanding and developing HR practice. But account
needs to be taken of the limitations of that philo­
sophy as expressed by the critics of HRM set out
later in this chapter.
Aim of this chapter
The aim of this chapter is to remedy this situation.
It starts with a selection of definitions (there have
been many) and elaborates on these by examining
HRM goals. Because the original concept of HRM
is best understood in terms of its philosophy and
underpinning theories these are dealt with in the
next two sections. Reference is then made to the
reservations made about HRM but it is noted that
while these need to be understood, much of what
HRM originally set out to do is still valid. However,
as explained in the next section of the chapter,
HRM is more diverse than interpretations of the
Armstrong's Handbook of HRM Practice_print-ready.indb 5
5
original concept can lead us to believe. This is
illustrated by the various models summarized in
this section which provide further insights into the
nature of HRM. The chapter ends with an assessment of where the concept of HRM has got to
now. Following this analysis the next two chapters
explain how in general terms HRM is planned
through the processes of strategic HRM and delivered through the HR architecture and system, the
HR function and its members, and, importantly,
line managers.
HRM defined
Human resource management can be defined as
a strategic, integrated and coherent approach to
the employment, development and well-being of the
people working in organizations. It was defined by
Boxall and Purcell (2003: 1) as ‘all those activities
associated with the management of employment
relationships in the firm’. A later comprehensive
definition was offered by Watson (2010: 919):
HRM is the managerial utilisation of the efforts,
knowledge, capabilities and committed behaviours
which people contribute to an authoritatively
co-ordinated human enterprise as part of an
employment exchange (or more temporary
contractual arrangement) to carry out work tasks
in a way which enables the enterprise to continue
into the future.
The goals of HRM
The goals of HRM are to:
●●
support the organization in achieving its
objectives by developing and implementing
human resource (HR) strategies that are
integrated with the business strategy
(strategic HRM);
●●
contribute to the development of
a high-performance culture;
●●
ensure that the organization has the talented,
skilled and engaged people it needs;
●●
create a positive employment relationship
between management and employees and
a climate of mutual trust;
2/20/2014 3:41:06 PM
Part 1 The Practice of Human Resource Management
6
●
encourage the application of an ethical
approach to people management.
An earlier list of HR goals was made by Dyer and
Holder (1988: 22–28) who analysed them under
the headings of contribution (what kind of employee behaviour is expected?), composition (what
headcount, staffing ratio and skill mix?), competence (what general level of ability is desired?) and
commitment (what level of employee attachment
and identification?). Guest (1987) suggested that
the four goals of HRM were strategic integration,
high commitment, high quality and flexibility.
And Boxall (2007: 63) proposed that ‘the mission of
HRM is to support the viability of the firm through
stabilizing a cost-effective and socially legitimate
system of labour management’.
The philosophy of human
resource management
Doubts were expressed by Noon (1992) as to
whether HRM was a map, a model or a theory.
But it is evident that the original concept could
be interpreted as a philosophy for managing people
in that it contained a number of general principles
and beliefs as to how that should be done. The
following explanation of HRM philosophy was
made by Legge (1989: 25) whose analysis of a
number of HRM models identified the following
common themes:
That human resource policies should be
integrated with strategic business planning
and used to reinforce an appropriate (or change
an inappropriate) organizational culture, that
human resources are valuable and a source of
competitive advantage, that they may be tapped
most effectively by mutually consistent policies
that promote commitment and which, as a
consequence, foster a willingness in employees
to act flexibly in the interests of the ‘adaptive
organization’s’ pursuit of excellence.
Storey (2001: 7) noted that the beliefs of HRM
included the assumptions that it is the human
resource that gives competitive edge, that the aim
should be to enhance employee commitment, that
HR decisions are of strategic importance and that
Armstrong's Handbook of HRM Practice_print-ready.indb 6
therefore HR policies should be integrated into the
business strategy.
underpinning theories of
HRM
The original notion of HRM had a strong theoretical base. Guest (1987: 505) commented that:
‘Human resource management appears to lean
heavily on theories of commitment and motivation
and other ideas derived from the field of organizational behaviour.’ A number of other theories,
especially the resource-based view, have contributed
to the understanding of purpose and meaning of
HRM. These theories are summarized below.
Commitment
The significance in HRM theory of organizational
commitment (the strength of an individual’s identification with, and involvement in, a particular organization) was highlighted in a seminal Harvard Business
Review article by Richard Walton (1985).
Source review
From control to commitment –
Walton (1985: 77)
Workers respond best – and most creatively – not
when they are tightly controlled by management,
placed in narrowly defined jobs and treated as
an unwelcome necessity, but, instead, when they
are given broader responsibilities, encouraged to
contribute and helped to take satisfaction in their
work. It should come as no surprise that eliciting
commitment – and providing the environment in
which it can flourish – pays tangible dividends for
the individual and for the company.
The traditional concept of organizational commitment resembles the more recent notion of organizational engagement (see Chapter 15).
2/20/2014 3:41:06 PM
Chapter 1 The Essence of HRM
7
Motivation
Institutional theory
Motivation theory explains the factors that affect
goal-directed behaviour and therefore influences
the approaches used in HRM to enhance engagement (the situation in which people are committed
to their work and the organization and are motivated to achieve high levels of performance).
Organizations conform to internal and external
environmental pressures in order to gain legitimacy
and acceptance.
The resource-based view
Resource-based theory expressed as ‘the resourcebased view’ states that competitive advantage is
achieved if a firm’s resources are valuable, rare and
costly to imitate. It is claimed that HRM can play
a major part in ensuring that the firm’s human
resources meet these criteria.
Organizational behaviour theory
Organizational behaviour theory describes how
people within their organizations act individually
or in groups and how organizations function in
terms of their structure, processes and culture. It
therefore influences HRM approaches to organization design and development and enhancing organ­
izational capability (the capacity of an organization
to function effectively in order to achieve desired
results).
Contingency theory
Contingency theory states that HRM practices are
dependent on the organization’s environment and
circumstances. This means that, as Paauwe (2004:
36) explained: ‘The relationship between the relevant independent variables (eg HRM policies and
practices) and the dependent variable (performance) will vary according to the influences such as
company size, age and technology, capital intensity,
degree of unionization, industry/sector ownership
and location.’
Contingency theory is associated with the notion
of fit – the need to achieve congruence between an
organization’s HR strategies, policies and practices
and its business strategies within the context of its
external and internal environment. This is a key
concept in strategic HRM.
Armstrong's Handbook of HRM Practice_print-ready.indb 7
Human capital theory
Human capital theory is concerned with how people
in an organization contribute their knowledge, skills
and abilities to enhancing organizational capability
and the significance of that contribution.
Resource dependence theory
Resource dependence theory states that groups
and organizations gain power over each other by
controlling valued resources. HRM activities are
assumed to reflect the distribution of power in the
system.
AMO theory
The ‘AMO’ formula as set out by Boxall and Purcell
(2003) states that performance is a function of
Ability + Motivation + Opportunity to Participate.
HRM practices therefore impact on individual
performance if they encourage discretionary effort,
develop skills and provide people with the oppor­
tunity to perform. The formula provides the basis
for developing HR systems that attend to employees’
interests, namely their skill requirements, motivations and the quality of their job.
Social exchange theory
Employees will reciprocate their contribution to
the organization if they perceive that the organ­
ization has treated them well.
Transaction costs theory
Transaction costs economics assumes that businesses
develop organizational structures and systems that
economize the costs of the transactions (interrelated
exchange activities) that take place during the course
of their operations.
2/20/2014 3:41:06 PM
Part 1 The Practice of Human Resource Management
8
together) is questionable. Fowler (1987: 3)
commented that: ‘At the heart of the concept
is the complete identification of employees
with the aims and values of the business –
employee involvement but on the company’s
terms. Power in the HRM system remains
very firmly in the hands of the employer. Is it
really possible to claim full mutuality when
at the end of the day the employer can decide
unilaterally to close the company or sell it to
someone else?’ Later, Ramsey et al (2000:
521) questioned the unitarist assumption
underlying much mainstream management
theory that claims that everyone benefits
from managerial innovation.
Agency theory
Agency theory states that the role of the managers
of a business is to act on behalf of the owners of the
business as their agents. But there is a separation
between the owners (the principals) and the agents
(the managers) and the principals may not have
complete control over their agents. The latter may
therefore act in ways that are against the interests of
those principals. Agency theory indicates that it is
desirable to operate a system of incentives for
agents, ie directors or managers, to motivate and
reward acceptable behaviour.
Reservations about the
original concept of HRM
●●
HRM is ‘macho-management dressed up as
benevolent paternalism’ Legge (1998: 42).
●●
HRM is manipulative. Willmott (1993: 534)
asserted that: ‘any (corporate) practice/value
is as good as any other so long as it secures
the compliance of employees’. HRM was
dubbed by the Labour Research Department
(1989: 8) as ‘human resource manipulation’.
John Storey (2007: 4) referred to ‘the
potential manipulative nature of seeking
to shape human behaviour at work’.
●●
HRM is managerialist. ‘The analysis of
employment management has become
increasingly myopic and progressively more
irrelevant to the daily experience of being
employed. While the reasons for this
development are immensely complex... it is
primarily a consequence of the adoption of
the managerialist conception of the discourse
of HRM’ (Delbridge and Keenoy, 2010: 813).
●●
HRM overemphasizes business needs.
Keegan and Francis (2010) have rightly
criticized the increasing focus on the business
partnership role of HR at the expense of its
function as an employee champion. An
illustration of this is provided by the
Professional Map produced by the British
Chartered Institute of Personnel and
Development (CIPD), which as stated by the
CIPD (2013: 2): ‘Sets out standards for HR
professionals around the world: the
activities, knowledge and behaviours needed
for success.’ The map refers to ‘business’ 82
times but to ‘ethics’ only once and ‘ethical’
only twice.
On the face of it, the original concept of HRM as
described above had much to offer, at least to management. But for some time, HRM was a controversial topic, especially in academic circles. The main
reservations as set out below have been that HRM
promises more than it delivers and that its morality
is suspect:
●●
Guest (1991: 149) referred to the ‘optimistic
but ambiguous label of human resource
management’.
●●
HRM ‘remains an uncertain and imprecise
notion’ Noon (1992: 16).
●●
‘The HRM rhetoric presents it as an all or
nothing process which is ideal for any
organization, despite the evidence that different
business environments require different
approaches’. (Armstrong, 2000: 577)
●●
HRM is simplistic – as Fowler (1987: 3) wrote:
‘The HRM message to top management tends
to be beguilingly simple. Don’t bother too
much about the content or techniques of
personnel management, it says. Just manage
the context. Get out from behind your desk,
bypass the hierarchy, and go and talk to
people. That way you will unlock an enormous
potential for improved performance.’
●●
The unitarist approach to industrial relations
implicit in HRM (the belief that management
and employees share the same concerns and
it is therefore in both their interests to work
Armstrong's Handbook of HRM Practice_print-ready.indb 8
2/20/2014 3:41:06 PM
Chapter 1 The Essence of HRM
These concerns merit attention, but the more important messages conveyed by the original notion
of HRM such as the need for strategic integration,
the treatment of employees as assets rather than
costs, the desirability of gaining commitment, the
virtues of partnership and participation and the key
role of line managers are still valid and are now
generally accepted, and the underpinning theories
are as relevant today as they ever were.
And it should be remembered that these objections, with the exception of the last one, mainly
apply to the original concept of HRM. But today, as
explained in the final section of this chapter, HRM
in action does not necessarily conform to this concept as a whole. The practice of HRM is diverse.
Dyer and Holder (1988) pointed out that HRM
goals vary according to competitive choices, technologies, characteristics of employees (eg could be
different for managers) and the state of the labour
market. Boxall (2007: 48) referred to ‘the profound
diversity’ of HRM and observed that: ‘Human resource management covers a vast array of activities
and shows a huge range of variations across occupations, organizational levels, business units, firms,
industries and societies.’ There are in fact a number
of different models of HRM as described below.
Models of HRM
The most familiar models defining what HRM is
and how it operates are as follows.
The matching model of HRM
Fombrun et al (1984) proposed the ‘matching
model’, which indicated that HR systems and the
organization structure should be managed in a way
that is congruent with organizational strategy. This
point was made in their classic statement that: ‘The
critical management task is to align the formal
structure and human resource systems so that they
drive the strategic objectives of the organization’
(ibid: 37). Thus they took the first steps towards the
concept of strategic HRM.
The Harvard model of HRM
Beer et al (1984) produced what has become known
as the ‘Harvard framework’. They started with the
Armstrong's Handbook of HRM Practice_print-ready.indb 9
9
proposition that: ‘Human resource management
(HRM) involves all management decisions and
actions that affect the nature of the relationship between the organization and employees – its human
resources’ (ibid: 1). They believed that: ‘Today... many
pressures are demanding a broader, more comprehensive and more strategic perspective with regard
to the organization’s human resources’ (ibid: 4). They
also stressed that it was necessary to adopt ‘a longerterm perspective in managing people and consider­
ation of people as a potential asset rather than merely
a variable cost’ (ibid: 6). Beer and his colleagues were
the first to underline the HRM tenet that it belongs
to line managers. They suggested that HRM had
two characteristic features: 1) line managers accept
more responsibility for ensuring the alignment of
competitive strategy and HR policies; 2) HR has
the mission of setting policies that govern how HR
activities are developed and implemented in ways
that make them more mutually reinforcing.
Contextual model of HRM
The contextual model of HRM emphasizes the
importance of environmental factors by including
variables such as the influence of social, institutional and political forces that have been under­
estimated in other models. The latter, at best,
consider the context as a contingency variable.
The contextual approach is broader, integrating
the human resource management system in the
environment in which it is developed. According to
Martin-Alcázar et al (2005: 638): ‘Context both
conditions and is conditioned by the HRM strategy.’ A broader set of stakeholders is involved in
the formulation and implementation of human
resource strategies that is referred to by Schuler
and Jackson (2000: 229) as a ‘multiple stakeholder
framework’. These stakeholders may be external
as well as internal and both influence and are influenced by strategic decisions
The 5-P model of HRM
As formulated by Schuler (1992) the 5-P model of
HRM describes how HRM operates under the five
headings of:
1 HR philosophy – a statement of how the
organization regards its human resources,
2/20/2014 3:41:06 PM
Part 1 The Practice of Human Resource Management
10
the role they play in the overall success of
the business, and how they should be treated
and managed.
2 HR policies – these provide guidelines for
action on people-related business issues and
for the development of HR programmes and
practices based on strategic needs.
3 HR programmes – these are shaped by HR
policies and consist of coordinated HR
efforts intended to initiate and manage
organizational change efforts prompted by
strategic business needs.
4 HR practices – these are the activities
carried out in implementing HR policies
and programmes. They include resourcing,
learning and development, performance and
reward management, employee relations and
administration.
5 HR processes – these are the formal
procedures and methods used to put HR
strategic plans and policies into effect.
●
multicultural organizations;
●
participation in decision-making;
●
continuous learning.
The hard and soft HRM models
Storey (1989: 8) distinguished between the ‘hard’
and ‘soft’ versions of HRM. He wrote that: ‘The
hard one emphasises the quantitative, calculative
and business-strategic aspects of managing human
resources in as “rational” a way as for any other
economic factor. By contrast, the soft version traces
its roots to the human-relations school; it emphasizes communication, motivation and leadership.’
However, it was pointed out by Keenoy (1997:
838) that ‘hard and soft HRM are complementary
rather than mutually exclusive practices’. Research
in eight UK organizations by Truss et al (1997) indicated that the distinction between hard and soft
HRM was not as precise as some commentators
have implied. Their conclusions were as follows.
European model of HRM
Brewster (1993) described a European model of
HRM as follows:
●
environment – established legal framework;
●
objectives – organizational objectives and
social concern – people as a key resource;
●
focus – cost/benefits analysis, also
environment;
●
relationship with employees – union and
non-union;
●
relationship with line managers – specialist/
line liaison;
●
role of HR specialist – specialist managers –
ambiguity, tolerance, flexibility.
The main distinction between this model and what
Brewster referred to as ‘the prescribed model’ was
that the latter involves deregulation (no legal framework), no trade unions and a focus on organizational
objectives but not on social concern.
As set out by Mabey et al (1998: 107) the characteristics of the European model are:
●
dialogue between social partners;
●
emphasis on social responsibility;
Armstrong's Handbook of HRM Practice_print-ready.indb 10
Source review
Conclusions on hard and soft models of
HRM – Truss et al (1997: 70)
Even if the rhetoric of HRM is ‘soft’, the reality is
almost always ‘hard’, with the interests of the
organization prevailing over those of the individual.
In all the organizations, we found a mixture of both
hard and soft approaches. The precise ingredients
of this mixture were unique to each organization,
which implies that factors such as the external and
internal environment of the organization, its
strategy, culture and structure all have a vital role
to play in the way in which HRM operates.
HRM today
As a description of people management activities
in organizations the term HRM is here to stay,
2/20/2014 3:41:06 PM
Chapter 1
even if it is applied diversely or only used as a label
to describe traditional personnel management
practices. Emphasis is now placed on the need for
HR to be strategic and businesslike and to add
value, ie to generate extra value (benefit to the business) by the expenditure of effort, time and money
on HRM activities. There have been plenty of new
interests, concepts and developments, including
human capital management, engagement, talent
management, competency-based HRM, e-HRM,
high performance work systems, and performance
and reward management. But these have not been
introduced under the banner of the HRM concept
as originally defined.
HRM has largely become something that organizations do rather than an aspiration or a philosophy and the term is generally in use as a way of
describing the process of managing people. A convincing summary of what HRM means today, which
focuses on what HRM is rather than on its philosophy, was provided by Peter Boxall, John Purcell and
Patrick Wright (2007), representing the new generation of commentators.
The Essence of HRM
11
Source review
The meaning of HRM – Boxall et al
(2007: 1)
Human resource management (HRM), the
management of work and people towards desired
ends, is a fundamental activity in any organization
in which human beings are employed. It is not
something whose existence needs to be radically
justified: HRM is an inevitable consequence of
starting and growing an organization. While there
are a myriad of variations in the ideologies, styles,
and managerial resources engaged, HRM happens
in some form or other. It is one thing to question the
relative performance of particular models of HRM
in particular contexts... It is quite another thing to
question the necessity of the HRM process itself,
as if organizations cannot survive or grow without
making a reasonable attempt at organizing work
and managing people.
Key learning points: The essence of human resource management
management and employees and a climate of
mutual trust;
HRM defined
Human resource management (HRM) is concerned
with all aspects of how people are employed and
managed in organizations.
●
encourage the application of an ethical approach
to people management.
Goals of HRM
Philosophy of HRM
The goals of HRM are to:
The beliefs of HRM included the assumptions that
it is the human resource that gives competitive
edge, that the aim should be to enhance employee
commitment, that HR decisions are of strategic
importance and that therefore HR policies should be
integrated into the business strategy (Storey, 2001: 7).
●
●
●
support the organization in achieving its
objectives by developing and implementing
human resource (HR) strategies that are
integrated with the business strategy
(strategic HRM);
contribute to the development of a high­
performance culture;
ensure that the organization has the talented,
skilled and engaged people it needs; create
a positive employment relationship between
Armstrong's Handbook of HRM Practice_print-ready.indb 11
Underpinning theories
‘Human resource management appears to lean
heavily on theories of commitment and motivation
and other ideas derived from the field of
organizational behaviour’ (Guest, 1987: 505).
2/20/2014 3:41:07 PM
Part 1 The Practice of Human Resource Management
12
The diversity of HRM
Many HRM models exist, and practices within different
organizations are diverse, often only corresponding
to the conceptual version of HRM in a few respects.
Reservations about HRM
been expressed about it. There may be something in
these criticisms, but the fact remains that as a
description of people management activities in
organizations HRM is here to stay, even if it is applied
diversely or only used as a label to describe
traditional personnel management practices.
On the face of it, the concept of HRM has much to
offer, at least to management. But reservations have
Questions
1 What is HRM?
2 What was the main message of the Harvard
framework?
3 What was the main message of the matching
model?
4 What are the goals of HRM?
5 What is the difference between hard and soft
HRM?
6 What is the essence of the philosophy of
HRM?
7 What is resource-based theory?
8 What is the significance of contingency theory?
9 What are the key reservations made by
commentators about the early version of
HRM?
10 What is the position of HRM today?
References
Armstrong, M (1977) A Handbook of Personnel
Management Practice, 1st edn, London, Kogan
Page
Armstrong, M (1987) Human resource management:
a case of the emperor’s new clothes, Personnel
Management, August, pp 30–35
Armstrong, M (2000) The name has changed but has
the game remained the same? Employee Relations,
22 (6), pp 576–89
Bakke, E W (1966) Bonds of Organization:
An appraisal of corporate human relations,
Archon, Hamden
Beer, M, Spector, B, Lawrence, P, Quinn Mills, D
and Walton, R (1984) Managing Human Assets,
New York, The Free Press
Boxall, P F (2007) The goals of HRM, in (eds)
P Boxall, J Purcell and P Wright, Oxford
Handbook of Human Resource Management,
Oxford, Oxford University Press, pp 48–67
Boxall, P F and Purcell, J (2003) Strategy and Human
Resource Management, Basingstoke, Palgrave
Macmillan
Armstrong's Handbook of HRM Practice_print-ready.indb 12
Boxall, P F, Purcell, J and Wright, P (2007) Human
resource management: scope, analysis and
significance, in (eds) P Boxall, J Purcell and
P Wright, Oxford Handbook of Human Resource
Management, Oxford, Oxford University Press,
pp 1–16
Brewster, C (1993) Developing a ‘European’ model of
human resource management, The International
Journal of Human Resource Management, 4 (4),
pp 765–84
Chartered Institute of Personnel and Development
(2013) HR Profession Map, http://www.cipd.co.uk/
hr-profession-map-download.aspx [accessed
25 January 2013]
Delbridge, R and Keenoy, T (2010) Beyond
managerialism? The International Journal of
Human Resource Management, 21 (6), pp 799–817
Dyer, L and Holder, G W (1988) Strategic human
resource management and planning, in (ed)
L Dyer, Human Resource Management: Evolving
roles and responsibilities, Washington DC, Bureau
of National Affairs, pp 1–46
2/20/2014 3:41:07 PM
Chapter 1 The Essence of HRM
Fombrun, C J, Tichy, N M and Devanna, M A (1984)
Strategic Human Resource Management, New
York, Wiley
Fowler, A (1987) When chief executives discover
HRM, Personnel Management, January, p 3
Guest, D E (1987) Human resource management and
industrial relations, Journal of Management
Studies, 24 (5), pp 503–21
Guest, D E (1991) Personnel management: the end of
orthodoxy, British Journal of Industrial Relations,
29 (2), pp 149–76
Hendry, C and Pettigrew, A (1990) Human resource
management: an agenda for the 1990s,
International Journal of Human Resource
Management, 1 (1), pp 17–44
Keegan, A and Francis, H (2010) Practitioner talk: the
changing textscape of HRM and emergence of HR
business partnership, The International Journal of
Human Resource Management, 21 (6), pp 873–98
Keenoy, T (1997) HRMism and the images of
re-presentation. Journal of Management Studies,
34 (5), pp 825–41
Labour Research Department (1989) HRM – human
resource manipulation? Labour Research, August,
pp 8–9
Legge, K (1989) Human resource management:
a critical analysis, in (ed) J Storey, New Perspectives
in Human Resource Management, London,
Routledge, pp 19–40
Legge, K (1998) The morality of HRM, in (eds)
C Mabey, D Skinner and T Clark, Experiencing
Human Resource Management, Sage, London,
pp 14–32
Legge, K (2005) Human Resource Management –
Rhetorics and realities, Macmillan, Basingstoke
Likert, R (1961) New Patterns of Management, New
York, Harper & Row
Mabey, C, Salaman, G and Storey, J (1998) Human
resource management: A strategic introduction,
2nd edition, Oxford, Blackwell
Martin-Alcázar, F, Romero-Fernandez, P M and
Sánchez-Gardey, G (2005) Strategic human resource
management: integrating the universalistic,
contingent, configurational and contextual
perspectives, International Journal of Human
Resource Management, 16 (5), pp 633–59
Mayo, E (1933) The Human Problems of an
Industrial Civilisation, London, Macmillan
McGregor, D (1960) The Human Side of Enterprise,
New York, McGraw-Hill
Armstrong's Handbook of HRM Practice_print-ready.indb 13
13
Noon, M (1992) HRM: a map, model or theory? in
(eds) P Blyton and P Turnbull, Reassessing Human
Resource Management, London, Sage, pp 16–32
Osterby, B and Coster, C (1992) Human resource
development – a sticky label, Training and
Development, April, pp 31–32
Paauwe, J (2004) HRM and Performance: Achieving
long term viability, Oxford, Oxford University
Press
Ramsay, H, Scholarios, D and Harley, B (2000)
Employees and high-performance work systems:
testing inside the black box, British Journal of
Industrial Relations, 38 (4), pp 501–31
Schuler, R S (1992) Strategic HRM: linking people
with the needs of the business, Organizational
Dynamics, 21, pp 19–32
Schuler, R S and Jackson, S E (2000) Strategic Human
Resource Management, Oxford, Blackwell
Storey, J (1989) From personnel management to
human resource management, in (ed) J Storey,
New Perspectives on Human Resource
Management, London, Routledge, pp 1–18
Storey, J (1995) Human resource management: still
marching on or marching out? in (ed) J Storey,
Human Resource Management: A critical text,
1st edn, London, Routledge
Storey, J (2001) Human resource management today:
an assessment, in (ed) J Storey, Human Resource
Management: A critical text, 2nd edn, London,
Thompson Learning, pp 3–20
Storey, J (2007) What is human resource
management? in (ed), J Storey, Human Resource
Management: A critical text, 3rd edn, London,
Thompson Learning, pp 3–19
Truss, C, Gratton, L, Hope-Hailey, V, McGovern, P
and Stiles, P (1997) Soft and hard models of
human resource management: a re-appraisal,
Journal of Management Studies, 34 (1),
pp 53–73
Walton, R E (1985) From control to commitment
in the workplace, Harvard Business Review,
March–April, pp 77–84
Watson, T J (2010) Critical social science, pragmatism
and the realities of HRM, The International
Journal of Human Resource Management, 21 (6),
pp 915–31
Willmott, H (1993) Strength is ignorance, slavery
is freedom: managing culture in modern
organizations, Journal of Management Studies,
30 (4), pp 515–52
2/20/2014 3:41:07 PM
Subject index
ability 126
ability tests 238–39
absence management
the Bradford factor 255
causes of absence 254–55
defined 254
long-term absence 255
policies 255
recording and measuring
absence 256
short-term absence 255
absenteeism, handling of 659–60
ACAS 428, 437
accident prevention 458
accountability profile 604–05
Accounting for People
Taskforce 68
achievement motivation 172,
178, 182
action learning
defined 326
in practice 161, 296, 298, 308,
322, 325
action research 156
activity analysis 143
adaptive learning 295
added value
in business cases 653
defined 44
and HR business partners 45
and HRM 54
and human capital
measurement 70
and strategic HRM 21
ADDIE model for learning events 310–11
advertising (recruitment) 230–31,
233
affective commitment 187
affective engagement 194
age and employment policy 511
agency theory 8
AIDS policy 511
Armstrong's Handbook of HRM Practice_print-ready.indb 823
alignment, vertical 18
AMO theory 7
analytical job evaluation schemes 372–73, 786–87
analytical job matching 373
analytical skills 569
anchor point 374
annual hours 140
application forms 234, 235
appraisal 334, 338, see also
performance management
appreciative enquiry 156
aptitude tests 239
arbitration 428–29
architecture, HR 36
arithmetic average or mean 584
artefacts 122
arguments
defined 571
development of 571
justifying 571
assessment centres 240
assimilation policy (pay) 799
attendance management, see
absence management
attitude surveys
analyzing responses 809
assessing results 809
conducting survey 801–03
construction of survey 807–08
content 804–05
described 161
developing 801
and employee voice 432
engagement 201
example of 811–12
format 806
issues 805
pilot testing 808–09
plan survey 808
post-survey activities 809
reward 764
scoring 806
survey items, format and
content 806–07
survey providers 813
toolkit 801–13
topics 806
attitudes 127
attraction and retention policies 733
attrition, employee turnover 249
autonomous work groups 147
autonomy 196
average 584
balance sheets 554–55
balanced score card 693
bargaining
conjunctive 427
conventions 627
cooperative 427
distributive 427
integrative 427
power 427
skills 628
tactics 627
basepay 373
base pay management 364–65,
373, 384
behaviour modelling 156
behavioural competencies 86, 336
behavioural competency
modelling 612–16
behavioural science 113, 118
benchmark roles 721
best fit
critical evaluation 24
model 23
best practice
critical evaluation 24
model 22–23
‘big idea’, the 55, 57, 200
biodata 234
bite-sized training 309–10
2/20/2014 3:43:57 PM
824
Subject Index
black box phenomenon 54, 56
blended learning 311
bounded rationality 101, 568
the Bradford factor 255
broad-banded grade and pay
structures 373, 375
broad-graded grade and pay
structures 373, 375
budgetary control 556
bullying 448
bundling 25, 57, 62, 269
bureaucratic model of
organization theory 119
burnout 201
business case 62, 653–54
business issue, HRM as 2
business goals 2
business imperative 2
business and workforce
planning 217, 219
Business in the Community 107
business model
analysis and design 558
defined 557
elements of 557–58
need to understand 545, 549
role of HR in business model
innovation 558
business model innovation 155,
162, 558
business orientation of HR 38
business partner role of HR
professionals 44, 546
business skills 553–59
business strategy
integration with resourcing
strategy 204
and organization
development 155
and strategic HRM 19
capability procedure 518
career anchors 274
career counselling 270
career dynamics 271
career family grade and pay
structures 274, 373, 375, 395
career management
activities 272
aims 270
career anchors 274
career development
strategy 271
Armstrong's Handbook of HRM Practice_print-ready.indb 824
career progression 273
career stages 270–71
defined 267–68, 270
dynamics 271
and ‘plateaued’ managers 273
policies 272–73
portfolio career 274
protean career 274
self-managed careers 274
stages 270, 271
strategy 271
career map 273
career planning 270, 273–74
career progression 271
case presentation 652–53
case studies, use in research 578–79
case studies and examples
absence management 256–57
business partnering 44
employee assistance
programme 449
employee relations 429
employee voice 435
employment law 539–40
employer brand 249
engagement 202
high performance work
systems 61
HR information systems 529
HR strategies 27, 28
human capital measurement 74
international HRM 502–03
international performance
management 484–85
international reward
management 488–89
leadership and management
development 325
learning and
development 315–17
organization development
(culture change) 161
organization of HR function 41–42
performance management 62,
350–53
recruitment and selection 243
resourcing 21
reward management 486–88
reward philosophies and
guiding principles 358–59
reward strategies 360, 362–63
social media, use in recruiting 230
talent management 266, 275–76
work organization 142
workforce planning 221–22
cash budgeting 557
cash management 557
categorical imperative 97
causal ambiguity 54, 56
causality 56, 60, 346, 347, 574,
584, 586
causation 56, 586
central tendency measures 584
centralization 469
Centre for Creative
Leadership 292
centres of expertise 39
CFO Research Services 68
change agents 637
change management
change models 633–35
the change process 633
and communications 438
and culture management 157
defined 162
facilitating change 632
field force analysis 634
implementing change 636–37
leading change 632
and organization
development 156, 157, 162
resistance to change 635–36
role of change agents 637
change models
Beckhard 634
Beer et al 634–35
Lewin 633–34
Thurley 634
characteristics of people 125–29
Chartered Institute of Personnel
and Development (CIPD) 8,
39, 40, 43, 47, 48, 106, 137,
139, 141, 154–55, 161, 201,
216, 228–29, 230, 251, 254,
269–70, 331, 377, 381, 417,
525, 538, 548–49
chi-squared test 587
classical school of organization
theory 118
coaching 307, 619–20
cognitive dissonance 127
cognitive evaluation theory of
motivation 176, 179
2/20/2014 3:43:57 PM
Subject Index
cognitive learning theory 292
collective agreements
defined 427
new style agreements 428
partnership agreements 428
procedural agreements 427
single-union deals 427–28
substantive agreements 427
collective bargaining
conjunctive bargaining 427
co-operative bargaining 427
defined 426–27
distributive bargaining 427
forms of 427
integrative bargaining 427
as a joint regulating process 427
policy 407
as a political relationship 427
as a power relationship 427
as a social process 427
collective representation 432
commercial job boards 229
commitment
affective commitment 187
and communications 438
critical evaluation 187–88
defined 6, 167, 185
developing a commitment
strategy 189
and engagement 187, 195–96
factors affecting 188–89
and flexibility 188
and HRM 6
importance of 186–87
meaning of 185–86
and motivation 168, 86
strategy 168
unitary frame of reference 188
communications, see employee
communications
communities of practice 79, 81
compa-ratio analysis 384
competence 86
competence analysis, see
competency modelling
competency-based interviews 237
competencies
behavioural 86
and emotional intelligence 93
graded 90
headings 86–88
for HR professionals 48
Armstrong's Handbook of HRM Practice_print-ready.indb 825
keys to success in using 93
NVQ/SNVQ 86
role-specific 89
technical 86
technical competencies and
competence 86
types of competencies 86
using competencies 89
competency 86, see also
competencies
competency-based HRM
applications 90
defined 86
keys to success 93
in learning and development 91
in performance management 91
in recruitment and selection 91
in reward management 91
using competencies 89–90
competency definition criteria 614
competency frameworks
defined 86, 89
development of 91–92
headings 87–88
and learning needs analysis 304
competency headings 86–88
competency modelling
behavioural competency
modelling 612–13
choice of approach 616
critical incident technique 615
defined 605, 612
expert opinion 613
functional analysis 617
repertory grid 616
structured interview 613
technical competency analysis 617
workshops 613, 615
competency-related pay 379, 380,
395
competitive advantage 21
competitive pay 370
conciliation 428
Conference Board 194
conflict 125, 665
conflict management
inter-group conflict 666
inter-personal conflict 666–67
team members conflict 667–68
configurational perspective on
strategic HRM 22
825
conjunctive bargaining 427
constructive dismissal 535
constructs 167
consultation 437
consultative committees 439
content (needs) theory of
motivation 171–73, 178
contextual model of HRM 9
contingency factors affecting
impact of HRM 54
contingency perspective on
strategic HRM 22
contingency school of
organization theory 119
contingency theory 7
contingent determinism 24
contingent pay 374–75
continuous improvement 631
contribution-related pay 380
control theory 335
convergence
achieving convergence 471–73
advantages and disadvantages of 471
choice of 470–71
defined 466, 468
and divergence 469
drivers for 470
factors affecting 466, 469, 470
pressure for 471
in international reward
management 487–88
cooperative bargaining 427
coordinating discussions 659
core and peripheral employees 139
core-periphery firm 139
core values 47, 101, 102, 106
corporate culture, see
organizational culture
Corporate Executive Board 187
corporate social responsibility
(CSR)
benefits 109
CSR activities 107–08
defined 106
developing a CSR
strategy 109–10
and firm performance 109
and HR professionals 106
opposing views 107–08
policy 106
2/20/2014 3:43:57 PM
826
Subject Index
rationale for 108
strategic CSR 106–07
corporate web sites 229
correlation 346, 585
cost/benefit analysis 286
costing 557
counselling 448, 49, 667
criterion-based biographical data 234
criterion behaviour 312
criterion referencing for
behavioural competencies 86
criterion-related measurement of
test validity 239
criterion scores in selection tests 239
critical evaluation, process of 570, 581
critical evaluation skills 570
critical evaluations in text
of best fit model 24
of best practice model 24
of bundling 25
of business partner concept 44
of the concept of
commitment 187–88
of emotional intelligence
concept 128–29
of high performance work
systems 58–61
of the learning organization
notion 298
of the resource-based view 22
of the concept of reward
strategy 361–62
of the strategic HRM concept 19–20
of the concept of strategy 17–18
of the three-legged stool model 40
critical-incident technique for
competency modeling 615–16
critical thinking 570
cross-lagged research models 576
culture, see organizational culture
culture change 161, 162
culture management 157
data 78
databases 79
decentralization 469
deduction 580
delivering HRM 36
Armstrong's Handbook of HRM Practice_print-ready.indb 826
demand forecasting 219–20
deontological theory 97
detriment 533
development 284
development centres 326
diagnostic cycle 159
diagnostics 159–61
direct discrimination 533
directors, reward of, see
rewarding directors and
senior executives
disciplinary issues, handling of 657–59
disciplinary procedure 519–20
discipline policy 511
discourse ethics 97
discretionary behaviour/effort 167, 168
discretionary learning 292
discretionary performance 169
discrimination rights 533
dismissal 258–59, 534–35
dismissal, handling of 534
dispersion measures 585
dispute resolution
aim 428
arbitration 428–29
conciliation 428
mediation 429
pendulum arbitration 429
distributive bargaining 427
distributive justice 98
divergence 466, 469–73
diversity 266
dominant coalition 144
double-loop learning 297
education 284
e-HRM 525, see also HR
information systems
e-learning 307
e-mails policy 512
emotional intelligence
and competencies 93, 128
components of 128
critical evaluation of
concept 128–29
defined 93, 128
emotions 127
models of 128
employee assistance programmes
(EAPs) 257, 449
employee benefits 381
employee communications
approach to 438
and consultation 437
consultative committees 439
defined 437
face-to-face 438–39
importance of 438
methods 438–39
speak-up programme 439
strategy 440
team briefing 439
what should be communicated 438
employee development policy 512, see also learning and
development
employee engagement
affective engagement 194
and burnout 201
and commitment 168, 187, 195
components of 195–96
conclusions 201
defined 193–94, 710
diagnostic framework 714
drivers of 196–97, 711
the engagement journey 709
enhancing job
engagement 198–99
enhancing organizational
engagement 199–200
enhancing overall engagement 197
gap analysis 713
hard and soft approaches to 197
intellectual engagement 194
and job design 198
job engagement 194
and job satisfaction 196
and leadership 187, 200
and learning and
development 198
and line managers 198
management competency
framework 198, 199
meaning of 194
measuring 201
and motivation 168, 195
and organizational citizenship
behaviour 196
and organization
development 158, 162
organizational
engagement 194, 199–200
2/20/2014 3:43:58 PM
Subject Index
outcomes 197
and performance
management 198
social engagement 194
and reward 198–99, 200
survey 712
theory of engagement 194–95
toolkit 709–14
employee relations
approaches to 406–07
basis of 406
climate 408
defined 403
ethical approach 408
ethical guidelines 100
and industrial relations 403
informal processes 429
management style 408–09
managing with trade unions 409–10
managing without trade unions 410
objectives 408
pluralism 410
pluralist perspective 188
pluralist viewpoint 409
policies 406–08
process of 406
scope 403
strategic employee relations 405
strategies 408, 410
unitarist approach to 8
unitary frame of reference 188
employee relations climate 408
employee resourcing 207,
see also resourcing
employee turnover
choice of measurement 251
cost of 251–52
defined 249
employee turnover index 249–50
half-life index 250
length of service analysis 251
measurement of 724
stability index 250
survival rate 250, 251
employee value proposition 211, 247–48, 365
employee voice
attitude surveys 432
categorization 432–33
Armstrong's Handbook of HRM Practice_print-ready.indb 827
collective representation 432
defined 431
elements 432
and engagement 200
expression 433
European Works Councils 432
involvement 432
joint consultation 432
levels of 433
meaning of 431–32
participation 432
partnership 432
planning for 434
policy 124
stages of 433–34
suggestion schemes 432
upward communications 432
upward problem solving 432–33
employee well-being
bullying 448
employee assistance
programmes (EAPs) 449
group employee services 449
in HRM 38
importance of 446
managing stress 446–47
practice of 445
reasons for concern 446
services for individuals 448–49
sexual harassment 447–48
work environment 446
work-life balance 446
employer brand 211, 248
employer of choice 248, 269
employment law
discrimination law 533–34
dismissal law 534–36
enforcement 537–38
family friendly employment
law 536
health and safety law 536
hours and wages law 535–36
and HRM 538–39
purpose 532–33
whistle-blowing law 536–37
employment management 8
employment practices, ethical
guidelines 100
employment relationship
basis of 414–15
contracts 415
defined 413
827
and labour process theory 415
managing the employment
relationship 415–16
nature of 413–14
policy 407
and the psychological
contract 420–21
and regulation 531
employment security 189
engaged employees 194, 197
engagement, see employee
engagement
enterprise resource (ERS)
systems 527
equal opportunity policy 512–13
Equality Act (2010) 370, 533
equal pay 370
equifinality 144
equity theory 97
equity theory of motivation 176, 179
e-recruitment 229–30
ERG theory of motivation
(Alderfer) 172, 178
e-reward 336, 340, 349, 372
espoused values 106
ethical approach to employee
relations 409
ethical decisions and
judgements 96
ethical dilemmas 100–01
ethical dimension to HRM 38, 96
ethical frameworks 96–97
ethical guidelines for HRM 98–100
ethical stance of HR
professionals 46
ethical values of HR
professionals 47
ethics
defined 96
and morality 96
concerns of 96
European model of HRM 10
European Union 531, 532
European Works Councils 432
evaluating the HR function 41
evaluation of learning
application of 314
approach to 311–12
importance of 311
levels of evaluation – Kirkpatrick 312–13
2/20/2014 3:43:58 PM
828
Subject Index
problem with 313–14
return on expectations 313
return on investment 313
evaluation of reward 381–83
evidence-based management
approach to 568
defined 567–68
in evaluating reward 382
need for 568
executive search consultants 232
exit interviews 253
expatriate defined 495
expatriates, management of
assimilation and support 499–500
career management 500
different approaches to 463
difficulties 495
home-based pay 501–02
host-based pay 502
importance of 495
pay and allowance policies 501–02
performance management 500–01
preparation policy 499
process of 496–97
qualities and behaviours required 497–98
recruitment and selection policies 498–99
resourcing policies 497–98
RoI on international
assignments 496
why use expatriates? 496
expectancy theory of motivation 57, 174–75, 179, 420
experiential learning 292, 293
experienced worker’s standard
(ESW) 294
express terms 535
external environment 679
extrinsic motivation 170, 181
extrinsic rewards and intrinsic
interest 180
facilitating 654
facilitating change 631, 632
factor definitions (job evaluation),
examples of 782
factor levels, definition of 783
factor plan 372, 781, 784
factors, job evaluation 372
Armstrong's Handbook of HRM Practice_print-ready.indb 828
fair dealing 102
fairness 98, 100
fair pay 370
family friendly employment law 536
feedback 156, 196, 334, 335,
338, 348
felt-fair principle 180
field force analysis 634
final offer arbitration 429
financial budgeting 56
financial flexibility 140
financial incentives 171, 176,
180
financial rewards 25, 163, 177,
178, 181, 198, 348, 363,
364–65, 377
FIRM (Forum for In-house
Recruitment Managers) 230, 239
fit (strategic) 7, 16, 34
5-P model of HRM 9–10
FiveS methodology 141
flavours of the month 32
flexibility
and commitment 188
defined 139
financial 140
flexible (core-periphery) firms 139
functional 139
numerical 139
in organizations 144
structural 139
flexible benefits 381
flexible firm, the 139
flexible hours arrangements 140
flexible organizations 139
flexible work teams 140
flexible working
aim 139
defined 139
multi-skilling 140
operational flexibility 139
forced distribution 341
forced ranking 341
formal groups 124
Forum for In-house Recruitment
Managers (FIRM) 230
frequency 584
functional analysis 617
functional flexibility 139
gainsharing 381
Gallup 347
general intelligence 126
general mental ability (GMA) 126, 241
generative learning 297
generic role 605
generic role profile 609, 611
globalization 466
goal theory of motivation 175–76,
179, 292, 335
grade structures 373
grade and pay structures
broad-banded structure 373,
375
broad-graded structure 373, 375
career family structure 373, 375
criteria for choice 376
defined 373
design of 789–800
guiding principles 374, 794
individual job grades 374
job family structure 373, 375
narrow graded 373, 375
pay progression 374
pay spine 375
spot rates 374
types of 375
grade and pay structures design
analysis of present
arrangements 791
assimilation policy 799
career family structure design 799
choice of structure 792
criteria 793
design options 795
design sequence 790
graded pay structure design 795–96
implementation 800
job family structure design 799
pay range design 797–99
pay spine 375
protection policy 799–800
toolkit 789–800
grade structures 373
grades 373
graphology 240
grievance procedure 520
grievances policy 513
grounded theory 575, 578, 580
group dynamics 156
2/20/2014 3:43:58 PM
Subject Index
group
behaviour 124–25
defined 124
development 124–25
formal 124
ideology 124
informal 124
norms 124
guiding principles 36, 358–59
half-life index 250
halo effect 598
handling people problems 657–63
harassment 533
harassment policy 514
harmonization 427
‘hard’ model of HRM 10
Harvard framework of HRM 9
the Hawthorne studies 4, 155
hazards, safety 455
heads of functions, HR 547–48
health and safety
accident prevention 458
aim 453
audits 456–57
communicating on 459–60
hazards 455
inspections 457–58
management of 454
measuring performance 459
occupational health
programmes 453–54, 458
organizing 460
policies 454–55
risk assessments 455–56
safety programmes 453
total loss control 459
training 460
Health and Safety Executive 535
health and safety law 535
Health and Safety at Work etc Act 1974 454
hierarchies 117
hierarchy of needs (Maslow) 171,
178
high-commitment
management 26–27
high-involvement
management 27, 199
High Pay Commission 392
high-performance culture 58
high-performance
management 26
Armstrong's Handbook of HRM Practice_print-ready.indb 829
high performance work design 148
high performance work practices 141
high performance work systems 58–61
high-performance working 141,
162
high trust organizations 416
holistic approachto strategic HRM 25
home-based pay 502
home company nationals 477
homeworking 140
horizontal integration 18
horns effect 598
host-based pay 502
hot-desking 140
hours 535
HR
as a business issue 38
business partnership role 8
contribution to enhancing
organizational
performance 62
contribution to knowledge
management 81
corporate social responsibility,
role in 106
employee champion role 8
ethical role of 101–102
impact of 54–57
as an insight-driven discipline 549
and performance 54–57
role in business model
innovation 558
role in leading and facilitating
change 631–33
status of 46–47
transactional HR 38
transformational HR 38
HR activities 4, 38
HR architecture 36
HR business partners, strategic
role of 548
HR competencies 48
HR directors, strategic role of 547
HR function
case studies 41–42
centres of expertise 39
delivery of HRM 4
829
delivery model 38
ethical dimension of 38
evaluation of 41
fragmentation of 38
as an insight-driven
discipline 549
organization of 38–40
responsibilities 507
role of 38
shared service centres 39
staffing ratios 39
strategic business partners 39
structuring issues, dealing with 40
three-legged stool model 39–40
values of HR 46
HR guiding principles 36
HR heads of function, strategic
role of 547–48
HR information systems (HRIS)
for absence recording 255
B2E portal 527
cloud computing 527
defined 525
e-HRM achievements 528
enterprise resource planning
(ERS) systems 527
features 526–27
functions of 526
integration 527
intranet 527
introducing 527–28
reasons for introduction 525–26
SaaS 527
self-service 527
software 526
vanilla system 526
HR plans 217
HR policies (general
considerations)
defined 10, 36, 507, 509
formulating 515
and HR procedures 509
implementing 515
reason for 10, 509–11
HR policies (overall) 510
HR policies (specific)
absence management 255
age and employment 511
AIDS 511
attraction and retention 733
bullying 511
career management 272–73
2/20/2014 3:43:58 PM
830
Subject Index
corporate social responsibility 106
discipline 511
diversity management 511–12
e-mails 512
employee development 512
employee relations 406–08, 512
employee voice 12
the employment relationship 512
equal opportunity 512–13
grievances 513
health and safety 454–55, 513
international HRM 497–99
internet, use of 512
new technology 513
promotion 513
redundancy 513
reward 513–14
sexual harassment 514
substance-abuse 514
whistle-blowing 514
work-life balance 515
HRM 1, see also human resource
management
HRM toolkits, see toolkits
HR practices 10
HR practitioners, see HR
professionals
HR procedures (general
considerations)
defined 517
and HR policies 507, 509, 517
introduction of 509–10
purpose 459
HR procedures (specific)
capability 518
disciplinary 519–20
grievance 520
redundancy 521–23
HR processes 10
HR Profession Map (CIPD) 8, 43,
548–49
HR professionals
ambiguities in the role 46
behaviours 47
business model innovation role 558
business partner role 44, 546,
548
change agent role 45–46
competencies required 47
corporate social responsibility,
role in 106
Armstrong's Handbook of HRM Practice_print-ready.indb 830
as employee advocates 38
employee champion role 8, 38
and employee needs 2
ethical responsibilities 46, 101–02
ethical values 47
as facilitators 43
general role 42–43
innovation role 45
insight-led 43
insight requirement 549
leading and delivering change 631–32
and organizational behaviour
theory 129–30
and organization design 143
political dimension 672
proactive role 43
professionalism in HRM 47
service delivery role 43
skills required 544
specialist role 42
status 46–47
strategic business partner role 546–47
strategic role 43–44, 545–48
strategic skills required 548
transactional role 43
transformational role 43
values 46
variety of roles 42
HR programmes 10
HR shared service centres 39, 40
HR skills
analytical 567
business 554
case presentation 652–54
change management 632
competency modelling 612–17
conflict management 665–68
coordinating discussions 655
critical evaluation 570
critical thinking 570
developing and justifying
arguments 571
facilitating 654
financial 554–55
handling people problems 657–63
influencing 651–655
job and role analysis 605–12
leadership 641–47
leading and facilitating change 631–37
learning and
development 619–21
logical reasoning 569
making a business case 653–54
negotiating and bargaining 628
political 671–73
problem-solving 563–65
research 573–81
selection interviewing 590–98
statistical 583–87
strategic 548–49
HR specialists, see HR
professionals
HR strategies (general
considerations)
and business strategies 29
criteria for 28–29
defined 1, 25–26, 36
examples of 27, 28
formulation 29
implementation 29
inside-out approach to
formulation 29
outside-in approach to
formulation 29
purpose 26
and strategic HRM 26
HR strategies (specific)
career development 271
commitment 189
corporate social responsibility 27, 110
employee communications 440
employee relations 27, 408
employee well-being 28
engagement 27
general 26–27
high performance 62
human capital management 27
individual learning 287
international HRM 466–67
knowledge management 27, 79–80
learning and development 27, 286–87
and line managers 29
motivation 180–181
organization development 27, 158–59
organizational learning 287
resourcing 27, 210
2/20/2014 3:43:58 PM
Subject Index
reward 27, 359–60
talent management 27, 269
HR system 36–37
HR techniques 36
HR values 46
human capital
concept of 68
constitutes of 69–70
defined 68–69
intellectual capital 69
measuring human capital 70–71
organizational capital 69–70
and people management 70
significance of 72
social capital 69
structural capital 69
theory 7
human capital advantage 21, 70
human capital index 71
human capital management
(HCM)
approach 685
areas 693
business case for 689
case for 687
defined 68
human capital reporting 73–74
goals 692
introduction of 78, 690–91
and measurement 71–72
measures 72–73, 694–96
priorities 693
process 86
and strategic HRM 21
strategy 27
toolkit 685–96
uses of 688
human capital measurement
approaches to 71
data 71–72
defined 70
measures 71–73
need for 70
role of 70
human capital monitor 71
human capital reporting 73–74
human capital theory 7, 70
human process advantage 21
human relations approach 4
human relations school of
organization theory 118
human resource advantage 21
Armstrong's Handbook of HRM Practice_print-ready.indb 831
human resource development
(HRD) 281, see also learning
and development
human resource function,
see HR function
human resource management
(HRM)
activities 4, 38
and added value 21, 54
attitude survey 680
and commitment 6
conceptual framework of 5
contextual model 9
defined 1, 5, 11
delivery of 36
development of concept 4–5
diversity of 9
and employment law 538–39
ethical dimension to HRM 38, 96
ethical guidelines for
HRM 98–100
ethical HRM 101–02
European model 10
5-P model 9–10
goals of 5–6
hard model 10
Harvard framework 4, 9
the HRM concept 4
HRM today 10–11
impact of HRM on
performance 54
impact of HRM practices on
performance 57
link to performance 54–56
links between HR and firm
performance 55
as a managerialist approach 8
matching model of HRM 4, 9
meaning of 11
and performance 54–65
and personnel management 4, 5
philosophy 5, 6, 9
practice 5
reservations about 8–9
soft model 10
and strategic HRM 16
as a system 36
underpinning theories 6–8
see also HR
human resource planning, see
workforce planning
831
human resource practitioners/
professionals/specialists
see HR practitioners
human resources 1, 4
humanism 4
humanistic 116, 118, 155, 158,
160
hygiene factors (Herzberg) 179, 178
hypothesis 575
hypothesis testing 580
identifying learning needs,
see learning needs,
identification of
impact of HRM on
performance 54–62
improvement group 433
incentive effect 365
incentive pay and
motivation 171, 176, 180
incentives 170, 171, 176, 177
incentives and expectancy theory 175
Income Data Services (IDS) 39
indirect discrimination 533
individual job grades 374
individual learning strategies 287
induction (employment) 257–58,
306
induction (research) 580
industrial relations
defined 425
informal processes 429
managing with trade
unions 409–10
managing without trade
unions 410
pluralism 410
pluralist perspective 188
unitarist approach to 8
unitary frame of reference 188
see also, employee relations
Industrial Relations Services
(IRS) 39, 41, 107–08
influencing 651
informal organization 117
information 78
insight-led HR 42–43, 549
Institute for Employment Studies 70, 187, 217
institutional theory 7
instruction 292, 621
2/20/2014 3:43:58 PM
832
Subject Index
instrumentality theory of
motivation 171, 178
integrated strategic change 159
integration of HR and business
plans 18
integration in international firms 469
integrative bargaining 427
intellectual capital 21, 69, 78
intelligence 126
intelligence quotient (IQ) 126, 239
intelligence tests 238
internal environment 678
internally equitable pay 370–71
international human resource
management
aim 466
centralization 469
contextual factors 467
convergence 466, 468–73
cultural differences 467–68
decentralizing 469
defined 466
differences between
international and domestic
HRM 463–64
divergence 466, 468–43
drivers for convergence 470
expatriates, management
of 495–02
global managers 479
globalization 466, 468
globalized HRM 466
institutional differences 468
international firms 470
internationalization 466
localization 466
one-country approach 468, 471
performance
management 482–85
practice of 477
resourcing 478–80
reward management 485–87
standardization 466
strategies 466–67
talent management 480–82
workforce planning 478
International Labour
Organization (ILO) 531
internationalization 466
interventions, OD 156
Armstrong's Handbook of HRM Practice_print-ready.indb 832
interviews
job analysis 606
research 576–77
selection 590–98
intranet 79, 439, 527
intrinsic motivation
defined 170
development of 181
effect of 181
and job design 146–147
and Herzberg’s two-factor
model 173
intrinsic interest and extrinsic
rewards 180
and job satisfaction 177
and non-financial rewards 365
involvement 432
job
definition of 145, 604
job characteristics model 147
and roles 145
job analysis
defined 604
information provided 605
interviews, use of 606
methodology 605–07
outcomes 605
questionnaires, use of 606–07
job-based pay 364
job boards 229
jobcentre plus 231
job challenge 196
job characteristics model 146
job description
basis 607
defined 604
example 608
headings 607–08
in organization structures 117
job design
approaches to 147
characteristics of jobs 145–46
and engagement 198
defined 136, 145
and engagement 198
factors affecting 145
and group activities 147
and intrinsic motivation 146
job characteristics model 147
jobs and roles 145
task structure 146
job engagement 194, 198–99
job enlargement 147
job enrichment 137, 147–48
job evaluation
analytical job matching 786–87
analytical schemes 372–73
analysis of current scheme 778
benchmark jobs 786
choice of approach 779
computer-aided job evaluation 785
defined 372
explicit weighting 372
factor definitions, examples of 782
factor levels 372
factor levels, definition of 783
factor plan 372, 781,
factor plan, testing of 784
factor scale 372
factor selection 781
factors 372
features 780
guidelines on defining factor
levels 783
guidelines for selecting
factors 781
implicit weighting 372
market pricing 371–72
non-analytical schemes 373
point-factor rating 372
project plan 780
review and development
sequence 777
scheme features 780
scoring 372
scoring model, development of 784
toolkit 777–87
weighting 372, 785
job family grade and pay
structures 373, 375, 395
job instruction 621
job rotation 147
job satisfaction
and engagement 168, 196
factors affecting 177
and performance 177, 180
job sharing 140
joint consultation 432
joint regulation 427
justice
defined 97
distributive justice 98
2/20/2014 3:43:58 PM
Subject Index
justice as fairness 97
natural justice 98
procedural justice 98
social justice 98
just-in-time training 309
kaizen 297
key performance indicators
(KPIs) 346, 554
key result areas 336, 609
knowledge
concept of 78–79
defined 78, 79
explicit knowledge 78
tacit knowledge 78
knowledge management
codification strategy 79
contribution of HR to 81
defined 79
issues 80–81
and the learning organization 298
and organization
development 162
and organizational learning 295
personalization strategy 80
purpose of 79
and the resource-based view 21
significance of 78, 79
strategies 79–80
knowledge, skills and abilities
(KSAs) 226–27, 237, 303, 336
knowledge workers 395
Kolb’s learning cycle 293
labour management 4
labour process theory 415
Labour Research Department 8
labour turnover, see employee
turnover
labour wastage, see employee
turnover
law of effect 173–74
law of the situation 144
leaders
authentic leaders 645
charismatic 644
qualities 646
transactional leaders 645
transformational leaders 644–45
visionary leaders 644
what leaders do 642–43
Armstrong's Handbook of HRM Practice_print-ready.indb 833
leadership
defined 322
described 125
effective leadership 646–47
and engagement 196–97
and management 323–24
meaning of 641
and motivation 182
reality of leadership 647
styles 643
theories 642
types of leaders 644–45
leadership development 324
leadership and management
development 322
leading change 631, 632
lean manufacturing (‘lean’) 141,
162
learning
blended learning 311
by doing 292
cognitive learning 292, 296
culture 287
defined 284
discretionary learning 292
double loop 297
e-learning 307
evaluation of learning 311–14,
743, 745
evaluation levels 744
events 310–11
and expectancy theory 292
experiential learning 292, 296
formal learning 305
formal training 305
and goal theory 179, 292
Honey and Mumford’s learning
styles 293
how people learn 292
identification of learning needs 302–05
Kolb’s learning cycle 293
implications of learning theory 295–96
individual 287
informal learning 305
the learning curve 294
the learning cycle 293
learning to learn 293–94
learning events, planning and
delivery of 737–45
learning styles 293, 296
learning theory 292
833
motivation to learn 292
on the job 306
organizational 287, 295, 297
outdoor learning 322
process of 295
reflective learning 327
reinforcement 292
responsibility for 314
self-directed or self-managed
learning 292, 299, 306
self-reflective learning 299
70/20/10 model 292
single-loop learning 295–96
social learning 292, 296
specification 304
strategies 286–287
styles 293
theory 292
and training 284
types of learning 295
workplace learning 305–08
learning contracts 296
learning culture 287
the learning curve 294
learning and development
aim 281
approaches to 305–06
business case for 286
components of 284, 285
constituents 284
defined 281, 284
and engagement 198
ethical guidelines 99
and human resource
development 281
learning and development
(L&D) practitioners 314
philosophy 285–86
process of 292
the 70/20/10 model 292, 305
strategic learning and
development 284
strategies 281, 286–87
use of competencies 91
learning and development strategy 27, 286–87
learning events
ADDIE model 310
decide on content and delivery 739, 740–41
define objectives 737
establish learning needs 737, 739
2/20/2014 3:43:58 PM
834
Subject Index
evaluation form (participants) 743
evaluation levels 744
event arrangements checklist 742
overall evaluation of event 745
planning and delivery of
(the ADDIE model) 310–11
toolkit 737–45
learning needs, identification of
analysis of business and
workforce plans 303
approaches to learning needs
analysis 302
establishing learning needs 738–39
gap analysis 302–03
performance and development
reviews 303
role analysis 303–04
skills analysis 305
surveys 303
learning organization
critical evaluation of the notion 298
defined 297
and organizational learning 298
learning specification 304, 605
learning styles 293
learning theory
cognitive learning 292
experiential learning 292
implications of 295–96
Kolb 293
learning to learn 293–94
reinforcement 292
social learning 292
life cycle best fit model 23
Likert scale 577
line of command 117
line of sight 174, 179
line managers
and employee engagement 198
and employee relations 429
and delivery of HR 36
and HR policies 29
and HR professionals 43
HR role of 49
and HR strategies 29
and learning 314
and pay reviews 386
and performance
management 345
Armstrong's Handbook of HRM Practice_print-ready.indb 834
line and staff organization 118
lines of command 117
Linkedin 230
literature reviews 575
logical incrementalism 17
logical reasoning 569
lower quartile 585
management 322–33
management and leadership 323–24
management development
criteria for 328
defined 326
formal approaches to 325
informal approaches to 327
leadership and management
development compared 323–24
objectives 326
role of HR and learning and
development specialists 328
role of the individual 327–28
role of the organization 327
management by objectives
(MBO) 334, 347
management role in employee
relations 429
management style 122, 254,
408–09, 705
management succession
planning 268, 276–77
managing change see change
management
managing expatriates, see
expatriates, management of
manpower planning 216,
see also workforce planning
manual workers 398–400
market pricing
acceptability of 371
defined 371
use of 371
market rate 371
market rate analysis 371–72
Maslow’s hierarchy of needs 184
matching model of HRM 5
McKinsey & Company 263
measured day work 399
measures of central tendency 584
measures of dispersion 585
mechanistic organization 118
mechanistic organization
design 143
median 584
mediation 429
mentoring 307, 620–21
merit pay
arguments against 377
arguments for 377
choice of scheme 379
criteria for success 378
critical evaluation of 378
defined 376
summary of schemes 380
metrics 68
minimum critical specification 144
mode 584
money and motivation 180
morality 96
motivation
achievement motivation 172,
178
cognitive evaluation
theory 176, 179
components of 170
content(needs) theory 171–73,
178
defined 167, 170
and engagement 168, 195
equity theory 176
ERG theory (Alderfer) 172, 178
expectancy theory 57, 174–75,
179, 420
extrinsic motivation 170
goal theory 175–76, 179, 292
hierarchy of needs
(Maslow) 171
the HR contribution 181–82
and HRM 7
improving motivation 170
and incentives 170, 171, 174,
176, 178
instrumentality theory 171, 178
intrinsic motivation 170
and job satisfaction 177, 180
to learn 292
meaning of 170
and money 180
motivating characteristics of
jobs 146
motivating strategies 181–82
motivation theory 171
needs (content theory) 171–73,
178
process (cognitive) theory 173
purposeful work behaviour 176
2/20/2014 3:43:58 PM
Subject Index
reinforcement theory 173–74
self-determination theory 173,
178
social learning theory 176
strategies 180–81
summary of theories 178–79
theory and HRM 7
two-factor model
(Herzberg) 172–73, 178
types of 170
use of motivation theory 167
multinational companies (MNCs) 463, 477
multiple causation 56, 586
multiple regression 586
multi-skilling 140
multi-source feedback 337
mutual commitment 26
mutual trust 535
mutuality 8, 188, 406
Myers-Briggs Types Indicator 127
narrow graded pay structure 373
National Minimum Wage
Regulations 1998 536
National and Scottish Vocational
Qualifications (NVQs/SNVQs) 86
natural justice 98
needs theory of motivation 171–73, 178
negative behaviour, handling
of 660–62
negotiating
bargaining 627, 628
commercial negotiations 626
industrial relations negotiations 626
process of 626
skills 628
stages 626–28
network organization 120
networking 124
neuro-linguistic
programming 156
new style agreements 428
new technology policy 513
non-analytical job evaluation
schemes 373
non-financial rewards 25, 163,
173, 178, 181, 198, 247–48,
348, 363, 365, 377, 381, 654
normal curve (test results) 239
norms (cultural) 120, 121–22,
Armstrong's Handbook of HRM Practice_print-ready.indb 835
norms (test) 238, 239
no-strike clause 428
null hypothesis 587
numerical flexibility 139
NVQ/SNVQ competences 86
objectives 336–37
Occam’s razor 564
occupational health
programmes 453–54, 458
occupational pension schemes,
see pensions
OD, see organization development
online recruitment 229–30
openness and HRM 2
operant conditioning 280, 408
opinion surveys 161, see also
attitude surveys
organic organization 118, 120
organic organization design 143
organization culture, see
organizational culture
organization design
activity analysis 699
aim of organization design 143
aims and purpose of
organization 698
analysis 144
and changes in the nature of
organizations 144
conducting organization
reviews 144
defined 136, 143
mechanistic design 143
minimum critical specification 144
organic design 143
organizational choice 143
and organizational development 158, 163
programme 697
reviews 144
role analysis 700
strategic choice 144–45
structure 117
structure analysis 144, 699
successful design 145
toolkit 697–700
organization development (OD)
action plan 707
activities 161–163, 707–08
artefacts analysis 705
and change management 157
conclusions on 164
835
criticisms of 156–57
culture analysis 702
and culture management 157
defined 154
diagnostic checklist –
organizational effectiveness 701–02
ethical guidelines 98–99
and HR 154
integrated strategic change 159
interventions 154, 161
management style analysis 705
nature of 154–55
new approaches to 157–58
norms analysis 704
objectives, assumptions and
values of OD 155–56,
157–58
organization development
programmes 161–63
and organization design 158
original version of OD 155
story of 155–58
strategic perspective on 158
strategy 158–59
teamwork analysis 706
toolkit 701–08
traditional OD programmes 156
values analysis 703
organization reviews 143
organization structure 117–18
organization theory, schools of 118–19
organizational behaviour
characteristics of organizational
behaviour theory 116
defined 116
implications of theory for
HR specialists 129–30
sources and applications of
theory 116–17
theory 7, 113
organizational capability 17,
158
organizational capital 69–70
organizational choice 143
organizational citizenship
behaviour 168, 196
organizational climate 123–24
organizational climate
questionnaire 160–61
organizational commitment 6,
see also commitment
2/20/2014 3:43:58 PM
836
Subject Index
organizational culture
appropriate cultures 123
artefacts 122
classification of 122
climate 123–24
components of 121–22
culture analysis 702
culture change 157
culture management 157
defined 120
development of 120–21
diversity of 121
embedded cultures 123
and international HR practice 467
management style 122, 254,
408–09, 705
norms 120, 121–22
norms analysis 704
organizational climate 123–24
values 120, 121
values analysis 703
Organizational Culture Inventory 157, 160
organizational development, see
organization development
organizational diagnosis 159–61
organizational engagement 6,
194, 199–200
Organizational Ideology
Questionnaire 160
organizational learning 163, 287,
295, 297, 298
Organizational Performance
Model (Mercer) 71
organizational politics 125,
671–72, 673
organizational processes
communications 127
effect on how organizations
function 118
group behaviour 124–25
interaction 124
networking 124
organizational transformation 158
organizations
changes in the nature of 144
defined 117
processes in 118
schools of organization theory 118–19
types of 119–20
Armstrong's Handbook of HRM Practice_print-ready.indb 836
organizing 117
outdoor learning 322
outplacement 258
paradigm 580
participation 432
partnership agreements 428
partnership policy 407
partnership schemes 432
pay determination 364, 370–71
pay matrix 385
pay for organizational
performance 81
pay progression 374
pay range 373
pay reviews 384–86
pay spine 375, 379
pay structures 373–74, 398
pay-work bargain 414
payment-by-results schemes 398
pendulum arbitration 429
pensions 381
people, characteristics of 125–29
people management 1, 44, 704
people resourcing 207, see also
resourcing
performance
defined 331
factors affecting 180
and HRM 54–63
meaning of 334–35
performance agreement 336–37
performance appraisal 334, 338,
see also performance
management
performance assessment 339–41
performance culture 35, 336,
345–46
performance drivers 70
performance and reward 331
performance management
aims 334, 335–36
analysis of areas for
development 753
analysis of components of the
system 755
analysis of objectives and
success criteria 754
analysis of performance review
practices 750
analytical and diagnostic toolkit 747–59
and appraisal 334, 338
assessing performance 339–41
and commitment 189
contribution 346
cycle 336–37
defined 331, 334
design programme 752
design toolkit 752–55
development of system 755
and engagement 198
ethical guidelines 99–100
evaluation toolkit 759
for expatriates 500–01
form 343–44
gap analysis 749
and goal theory 335
goals 747, 748
and high-performance cultures 62
impact on performance 345–48
implementation
programme 756
implementation toolkit 756–57
in international firms 472,
482–85
introduction of 349
issues 341–45
and learning and development 308
and line managers 345
managing performance
throughout the year 338
and motivation 168, 195
objective setting 336–37
operations toolkit 758
and organization
development 163
overall assessment 339–40
performance agreement 336–37
performance management
cycle 336–37
performance management
pathway 748
performance planning 336–37
the performance review 338
performance review meetings,
conduct of 338–39
pilot testing 756
principles 335
purpose 336
rating performance 340–41
recording the performance
agreement and review 341
2/20/2014 3:43:58 PM
Subject Index
requirements for success 350
reviewing performance 338
and the reward system 366
as a rewarding process 348
SMART objectives 336–37
and talent management 267
360-degree feedback 337,
348–49
toolkit 747–59
underpinning theories 335
use of competencies 91
visual assessment 342, 341
web-enabled 341
performance rating 340–41
performance-related pay 181,
376, 377, 378, 379, 380
performance review 303, 338–39
person-based pay 364
person specification 230, 605
personal characteristics 125
personal development
planning 308, 337
personal fulfilment 2
personal injury claims 535
personality
defined 126–27
traits 127
types 127
personality tests 238
personnel function, see HR
function
personnel management 4, 5
personnel practitioners/
professionals see HR
professionals
persuading people 651–52
PESTLE analysis 159
phenomenology 574
piecework 399
planned experience 306–307
pluralism 410
pluralist perspective 188
pluralist view of employee relations 409
point-factor rating job evaluation 372
policies, see HR policies
political approaches 672
political behaviour 672
political sensitivity 672–73
politics, dangers of 673
politics in organizations 125, 671–72, 673
Armstrong's Handbook of HRM Practice_print-ready.indb 837
poor timekeeping, handling of 660
portfolio career 274
positive reinforcement 156
positivism 574
post-bureaucratic school of
organization theory 119
power 125
predictive validity 240
principal agent theory 8
problem solving 563–65
procedural agreements 427
procedural justice 98
process 80–81
process-centred organizations 138
process consulting 156
process planning 138
process(cognitive) theories of
motivation 173–77, 179
professionalism in HR 47
Profession Map, HR (CIPD) 8,
43, 548–49
profitability analysis ratios 556
profit and loss accounts 555–56
profits 555
profit-sharing 381
promotion policy 513
proposition 575
proposition testing 570
protean career 274
protection policy, pay 799–800
Protestant ethic 173
psychological contract
and commitment 189
defined 419–420
developing a positive
psychological contract 421–22
and the employment relationship 420–21
problem with 421
how psychological contracts
develop 421
significance of 420
psychological tests 238
psychometric tests 238
purpose work behaviour theory
of motivation 176
quality circles 158, 433
quality of working life 443
questionnaires, research 577–78
837
rank and hank 341
rating performance 340–41
ratio-trend analysis 220
realistic job preview 422, 499
recognition
and attitudes 127
and financial rewards 368
and job enrichment 137
as a motivator 181
need for 181
recognition schemes 381
recruitment 226, see also
recruitment and selection
recruitment agencies 231, 233
recruitment consultants 231–32
recruitment process outsourcing
(RPO) 232, 233
recruitment and selection
administering the selection
programme 236
advertising 230–31
analysis of recruitment
strengths and
weaknesses 228
analysis of requirements 228
application forms 234
applications, dealing with 234–36
assessment centres 240
attracting candidates 228–33
biodata 234
checking applications 241–42
choice of methods 240–41
corporate web sites 229
dealing with applications 234–36
dealing with recruitment
problems 242
defining requirements 226–27
education and training
establishments 232
e-recruitment 229–20
ethical guidelines 99
following up 242
graphology 240
interviewing 236–37
job boards 229
jobcentre plus 231
offers 241, 242
online recruitment 229–31, 233
outsourcing 232
person specification 226
processing applications 234
2/20/2014 3:43:58 PM
838
Subject Index
realistic job previews 422, 499
recruitment agencies 231
recruitment consultants 231–32
recruitment process outsourcing
(RPO) 232, 232
references 241
role profiles 226
selection methods 236, 240–41
selection testing 238–40
social media, use in recruiting 230
sorting applications 234
sources of candidates 228–33,
232
use of competencies 91
use of tests 239–40
Web 2.0 technologies 230
reductionism 574
redundancy 258
redundancy policy 513
redundancy procedure 521–23
reference group 124, 127
references 241
reflective learning 327
regression 585
reinforcement 156,
reinforcement theory of
motivation 173–74, 179
relational contracts 415
relational rewards 366
release from the organization 258–59
repertory grid 616
research methods in HRM
case studies 578–79
collecting data 576–79
critical evaluation
techniques 581
critical evaluation of research 570–71
cross-lagged models 576
data collection 576–79
deduction 580
diaries 579
experimental designs 579
grounded theory 575, 578, 580
hypothesis 575
hypothesis testing 580
induction 580
interviews 576–77
literature reviews 575
methodology 578
nature of research 574
Armstrong's Handbook of HRM Practice_print-ready.indb 838
observation 579
paradigm 580
phenomenology 574
philosophy 574
positivism 574
processes involved in research 580–81
proposition 575
qualitative methods 576
quantitative methods 576
questionnaires 577–78
research design 575
research programmes 574–76
research question 575
surveys 578
testing propositions 570
theory 574
triangulation 576
resource-based strategy 21
resource-based theory 7
resource-based view
and competitive advantage 21
critical evaluation 22
defined 20
and HRM 7
and knowledge management 21
rationale for 21
and resourcing strategy 207
significance of 16
strategic goal 21
and strategic HRM 21
resource capability 17, 207
resource dependence theory 7, 21
resourcing
defined 207
in international firms 478–80
plans 211
practice 247
strategic approach to 207
talent 733
resourcing strategy 209–10
respect, treating employees with 98
retention planning
areas for action 253–54
factors affecting retention 252–53
retention strategy 253
risk of leaving analysis 253
retirement 259
return on expectations 313
return on investment 313
reverse causation 56, 197, 586
reward 331
reward, evaluation of 381–83
reward policy 513–14
reward management
administration of 384–86
aims 370
attitude survey 764
competitive pay 320
defined 331, 370
and engagement 198–99
ethical guidelines 100
fair pay 370
financial rewards 181, 364–65
guiding principles 358–59
influence on performance 364
internally equitable pay 370–71
in international firms 485–88
job evaluation 372
market pricing 371–72
non-financial rewards 365
pay determination 370–71
philosophy 358
relational rewards 366
reward strategy 359–60
reward system 357, 363–64
and stakeholders 358, 359
total rewards 365–66
transactional rewards 366
use of competencies 91
reward guiding principles 358–59
reward philosophy 358
reward policy 513–14
reward segmentation 391
reward strategy
analysis of strategy and practice 762
arguments for 359
content 360
critical evaluation of the concept 361–62
defined 357
development of 765
formulating 361
implementing 361
purpose 359
reward system 363–64
rewarding directors and senior
executives
corporate governance 392–93
elements of executive
remuneration 393–94
executive pay levels 392
2/20/2014 3:43:58 PM
Subject Index
principles of executive
remuneration 392–93
rewarding special groups
directors and senior executives 392–94
knowledge workers 395
manual workers 398–401
sales representatives 396- 97
right-angle forecasting method 220
risk assessments (health and safety) 455–56
role
analysis 303–04, 605, 609
defined 145, 604
development 145, 148
distinction between roles and
jobs 145
generic 605
profiles 226
role analysis
defined 605
for identification of learning
needs 303–04
key result areas 609
role development 145, 148
role profiles
defined 604
examples of 610, 611
generic 609
headings 538
for the identification of learning
needs 303–04
for recruitment purposes 226
role specifications 498
SaaS 527
safety
inspections 457–58
programmes 453
see also health and safety
sales representatives 396–97
scenario planning 219
security, employment 189
selection
assessment centres 240
defined 226
interviewing techniques 590–98
interviewing 236–37
interviewing skills 590–98
interviewing panel 237
methods 240
Armstrong's Handbook of HRM Practice_print-ready.indb 839
predictive validity of selection
methods 240
selection board 237
see also recruitment and selection
selection interviewing
behavioural event questions 595
biographical approach 593
capability questions 595–96
career questions 596–97
closed questions 594
coming to a conclusion 598
continuity questions 596
criteria-based approach 593
deciding on the questions 593
dos and don’ts 599
establishing rapport 590
focused work questions 597
interview rating form 598
keeping control 591
listening 590
maintaining continuity 590–91
motivation questions 596
note taking 591
open-ended questions 593–94
parts of the interview 592
planning the interview 592
play-back questions 596
preparing for the interview 591
probing questions 594–95
purpose 590
questioning techniques 590,
593,
questions, types of 593–97
questions to be avoided 597
situation-based questions 595
skills 590–98
structuring the interview 591–92
targeted approach 593
useful questions 597
selection interviews
advantages and
disadvantages 236
aim 229
competency-based
interview 237
interviewing techniques 589–98
structured interviews 237
unstructured interviews 237
selection testing
ability tests 238–39
aptitude tests 239
839
characteristics of a good
test 239
criterion-related measurement
of test validity 239
criterion scores 239
intelligence tests 238
interpreting test results 239
norms 239
personality tests 238
psychometric tests 238
psychological tests 238
reliability of 239
use of 238, 239–40
validity of 239
self-determination motivation
theory 173, 178
self-directed learning 284, 289, 306
self-efficacy 176
self-managed careers 274
self-managed learning, see
self-directed learning
self-managing teams 147
self-paced learning 306
self-service (HRIS) 527
senior executives, reward of,
see rewarding directors and
senior executives
service-related pay 379
sexual harassment 447–48
share option schemes 394
share schemes 381
shared service centres 39
SHRM, see strategic human
resource management
Sibson 345, 347–48
single-loop learning 297–98
single status 189, 427
single-union deals 427–28
sitting by Nellie 306
skill-based pay 380
skills analysis
defined 605, 609
faults analysis 612
job breakdown 609
job learning analysis 612
manual skills analysis 609, 611
task analysis 611–12
SMART objectives 336–37
smart working 139, 158, 163
social capital 69, 81
social cognitive theory 335
social exchange theory 7, 19,
195, 200
2/20/2014 3:43:58 PM
840
Subject Index
social justice 98
social learning 220
social learning theory 176, 179,
292
social legitimacy 24
social media, use in
recruitment 230
social networks 81, 145
socio-technical model of
organization 119
‘soft’ model of HRM 10
software 526
soft skills 86
sorting effect 365
speak-up programmes 439
spot rates 374
stability index 250
stakeholder theory 97
stakeholders 189, 358, 359
standard deviation 584
statistics
arithmetic average 584
causality 586
correlation 585
frequency 584
frequency polygon 584
histogram 584
and HR professionals 584
interquartile range 585
lower quartile 585
measures of central tendency 584
measures of dispersion 585
median 584
mode 584
multiple regression 586
pie chart 584
regression 585
standard deviation 584
testing hypotheses 587
tests of significance 586
types of 584–86
upper quartile 585
use of 54
status quo clause 410
strategic business partners 39, 546–47
strategic capability 159
strategic change 158
strategic choice 16, 18, 24, 144
strategic configuration 23
strategic employee relations 405
strategic fit 17, 22, 210
Armstrong's Handbook of HRM Practice_print-ready.indb 840
strategic human resource
development (strategic HRD) 281, see also learning and
development strategy
strategic human resource
management (strategic HRM,
SHRM)
activities 678
aims 18–19
best fit model 23, 24
best practice model 22–23, 24
and bundling 25
conceptual basis 9, 16
critical evaluation of 19–20
defined 16, 18
and fit 7, 16
framework 677
gap analysis 682
as a holistic process 25
HR strategies 25–29
nature of 18
perspectives on 22
and resourcing 210
skills 545–49
strategic configuration 23
toolkit 677–83
strategic HRM skills
strategic contribution of HR
advisors 548
strategic role of HR business
partners 548
strategicrole of heads of
functions 547–48
strategic role of HR
directors 547
strategic role of HR
professionals 545–46
strategic skills required 548–49
strategic integration 9
strategic learning and
development
aims 284
defined 281, 284
strategic management 16
strategic resourcing
bundling resourcing strategies 211
components of 211
defined 209
objective 209–10
and strategic fit 210
and strategic HRM 210
strategic reward
analysis of reward strategy and
practice 762–63
and business strategy 765
critical evaluation of
concept 361–62
defined 357
formulation 769
framework 761
goals 767
implementation 769
integration of reward and HR
strategies 766
purpose 357
reward attitude survey 764
toolkit 761–69
see also reward strategy
strategic role of heads of HR
functions 547–48
strategic role of HR business
partners 548
strategic role of HR directors 547
strategic role of the HR
professional 545–46
strategies, HR see HR strategies
strategy
characteristics of 17
concept of 16–17
critical evaluation of
concept 17–18
defined 16–17
emergent 18
formulation of 17
HR strategies 25–29
implementation of 17
and strategic fit 17
stress, management of 446–47
structural analysis 143
structural capital 69
structural flexibility 139
structured interviews 237
substance abuse policy 514
substantive agreements 427
succession planning 276–77
suggestion schemes 432
supply forecasting 220
survey feedback 156
survival rate 250
SWOT analysis 159
systematic training 309, 310
systems school of organization
theory 119
systems theory 144
2/20/2014 3:43:58 PM
Subject Index
talent 265
talent audit 267
talent development 267
talent management
aims 266
analysis of practice 735
audit 267, 732
defined 263, 264–66, 480
developing a talent management
strategy 269
and diversity 266
in international firms 480–82
people involved 265–66
and performance management 267
planning 267, 729, 731
policy 731
process of 266–68
strategy 269, 729, 730
talent development 267, 734
talent identification 267
talent on demand 269, 277
talent pipeline 266–67, 268
talent planning 267, 729, 731
talent pool 268
talent relationship management 267
talent resourcing 267, 733
talent retention 267
toolkit 729–35
war for talent 263, 265
what is happening to talent
management? 269–70
team briefing 439
team building 163
team pay 379
teamwork 706
technical competencies 86
technical competencies
analysis 617
terminal behaviour 312
testing hypotheses 587
testing propositions 570
tests, selection, see selection tests
tests of significance 586
T-group training 156
theory 574
Theory Y 155, 157, 201
third country nationals (TCNs) 477
three-legged stool model of HR
function 39–40
360-degree feedback 337, 348–49
Armstrong's Handbook of HRM Practice_print-ready.indb 841
timekeeping problems 660
time rates 398
tool kits
attitude surveys 801–13
employee engagement 709–14
grade and pay structure design 789–00
human capital management 685–96
job evaluation 777–87
organization design 687–00
organization development 701–08
performance management 747–59
planning and delivering
learning events 737–45
strategic HRM 677–83
strategic reward 761–69
talent management 729–35
total rewards 771–76
use of 676–77
workforce planning 717–27
total loss control 459
total quality management (TQM) 157
total rewards
analysis grid 774
choice of elements 774
concept 365, 772–73
defined 365
elements of 365
implement 776
introducing 772, 774
model 366
monitor and evaluate 776
and motivation 181
and organization development 163
prioritize introduction 774–75
toolkit 771–76
Towers Perrin model 366
Towers Perrin 197, 366
trade unions
density of membership 426
de-recognition 426
managing with trade unions 409–10
managing without trade unions 410
membership 426
recognition 407, 426
841
trading statements 555
training
bite-sized training 309–10
defined 284, 308
effective training 310
justification for 308–09
just-in-time training 309
and learning 284
systematic training 309, 310
transferring training 309
types of 310
traits
the ‘big five’ classification 127
defined 127
and types 127
transaction costs theory 7
transactional analysis 156
transactional contract 415
transactional HR 38, 207
transactional rewards 366
transformational HR 38, 207
transparency 100
triangulation 576
trust
building trust 416–17
climate of trust 416
and commitment 189
defined 416
high-trust organizations 416
and HRM 5
renewing 417
two-factor model of motivation
(Herzberg) 172–73, 178
types of personality 127
under-performance, dealing with 663
unfair dismissal 534
union, see trade union
unitarism 4
unitarist approach to employee
relations 8
unitary frame of reference 188
universalistic perspective on
strategic HRM 22
upper quartile 585
upward communication 432
US Department of Labor 60
utilitarianism 97, 98
value added 44, 71 see also
added value
value set 121
2/20/2014 3:43:59 PM
842
Subject Index
value statement 106
values 120, 121
values of HR 46
values in use 121
vertical alignment/integration 18
vertical job loading 137
victimization 533
virtual organization 120
visionary leaders 120
vitality curve 341
wages 535
war for talent 263, 265
Watson Wyatt 348
Web 2.0 technologies 230
weighting, job evaluation 372, 785
welfare 4 see also employee
well-being
well-being 443
whistle-blowers 100
whistle-blowing law 536–37
work 136
work design
defined 136,
history of 137
job enrichment 137
work system design 138–42
work environment 28, 98, 100,
123, 136, 137, 139, 167, 197,
200, 365, 445, 446
Armstrong's Handbook of HRM Practice_print-ready.indb 842
workforce planning
action planning 221, 725, 727
activity levels forecasting 719–20
analysis 219
approaches to 211–12
balancing demand and supply 725
and business planning 217
and the business plan 720
data collection 219
defined 211, 216
demand forecasting 219–20,
720–21
factors affecting supply and
demand 718
flowchart 218, 717
forecasting activity levels 219
forecasting requirements 219,
221
forecasting supply of people 725
function of 216
hard and soft versions 211
incidence of 216
internal supply forecasts 725
in international firms 478
issues 217
link with business planning 217
managerial judgement 219–20
ratio-trend analysis 220
reasons for 217
retention planning 252–54
scenario planning 219, 719
supply forecasting 220–21
systematic approach to 217–21
toolkit 717–27
work study techniques 220
work engagement 194
work environment 200, 446
work-life balance 446
Working Time Regulations 1998
535–36
Workplace Employee Relations
Survey (2004) 410, 428
workplace learning 305–08
work-measured pay schemes 399
work system 138
work system design
defined 138
in process-centred
organizations 138
process planning 138
requirements 138–39
working arrangements 407
WorldatWork 345, 347–48
wrongful dismissal 535
zero-hours contracts 140
2/20/2014 3:43:59 PM