Contents

List of figures List of tables Foreword

PART I HUMAN RESOURCE MANAGEMENT -AN OVERVIEW 1 The foundations of human resource management

Human resource management defined 3; Aims 4; Concerns of HRM 4; Development of the HRM concept - the US models 5; UK versions of the HRM model 6; Characteristics of HRM 9; Reservations about HRM 10; HRM and personnel management 11; Key HRM activities 12; Key requirements 14

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2 The context of human resource management 17 Introduction 17; Environmental factors 18; Contingency theory 18; Technology 19; Competitive pressures 19; Responses affecting people 20; The challenge to HRM 21

3 The role of the HR practitioner 23 What is expected from HR professionals 23; Activities 24; Roles 25; Models of HR management r o l e s 30; Ambiguities in the role of HR practitioners 31; Conflict in the HR contribution 32; Ethical considerations 33; Professionalism in human resource management 35; How to be an effective HR practitioner 37; Competence in HR management 38

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Managing the HR function Role of the HR function 42; Variations in HR practice between different organizations 43; Changes in the scope of the function 44; Integrating the HR contribution 45; Organizing the HR function 47; The respective roles of HR and line management 49; Gaining support and commitment 51; Marketing the HR function 53; Preparing, justifymg and protecting the HR budget 55; Outsourcing HR work 56; Using management consultants 58

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The contribution of the HR function 61 Contribution to added value 61; Contribution to competitive advantage 62; The HR function’s contribution to quality management 64; The impact of people management on business performance 65

Evaluating the HR function Approaches to evaluation 67; Overall methods of evaluation 68; Types of performance measures 69; Evaluation criteria 69; Practical methods of evaluation 70; Preferred approach 77

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International human resource management 79 International human resource management defined 79; The challenge of international human resource management 79; Characteristics of international personnel management 80; International employment and development strategies 81; Recruitment across international boundaries 83; International employee development 84; Managing expatriates 86; International pay 88

PART II ORGANIZATIONAL BEHAWOUR 8 Characteristics of people 93

Individual differences 93; Ability 94; Intelligence 95; Attitudes 98; Influences on behaviour at work 98; Attribution theory -how we make judgements about people 99; Orientation to work 100; Roles 101; Implications for HR specialists 102

9 Motivation 105 Motivation defined 106; The process of motivation 106; Intrinsic and extrinsic motivation 109; Motivation theories 110; Instrumentality theory 111; Needs (content) theory 111; Herzberg’s two-factor model 114; Process cognitive theory 115; Behavioural theory 119; Social learning theory 120; Attribution theory 120; Role modelling 121; The key messages of motivation theory 121; The relationship between motivation and performance 122; Motivation and money 123; Motivation strategies 124; Conclusions 127

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Commitment 129 The meaning of organizational commitment 129; The sigruficance of commitment 130; Problems with the concept of commitment 131; Creating a commitment strategy 133; Commitment and mutuality 137

How organizations function 139 Basic considerations 139; Organization theories 139; Organization structure 144; Types of organization 145; Organizational processes 148

Organizational culture 159 Definitions 159; The sigruficance of culture 161; How organizational culture develops 161; The diversity of culture 162; The components of culture 162; Classifymg organizational culture 164; Assessing organizational culture 166; Measuring organizational climate 167; Appropriate cultures 168; Supporting and changing cultures 169

PARTID WORKANDEMPLOYMENT 13

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The nature of work 175 What is work? 175; Theories about work 176; Organizational factors affecting work 178; Changing patterns of work 181; Unemployment 182; Career expectations 183; Attitudes to work 183

The employment relationship 185 The employment relationship defined 185; Nature of the employment relationship 185; Basis of the employment relationship 187; Defining the employment relationship 187; Significance of the employment relationship concept 188; Changes in the employment relationship 188; Managing the employment relationship 188; Trust and the employment relationship 190

The psychological contract 195 The psychological contract defined 195; The significance of the psychological contract 197; The nature of the psychological contract 198; The changing nature of the psychological contract 199; The state of the psychological contract 202; How psychological contracts develop 203; Developing and maintaining a positive psychological contract 204

PART lV ORGANIZATION, JOBS AND ROLES

16 Organization design 207 The process of organizing 207; Aim 208; Conducting organization reviews 209; Organization analysis 209; Organization diagnosis 210; Organization planning 212; Who does the work? 213

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17 Organizational development 215 What is organizational development? 215; Organization development 216; Change management 221; Team building 229; Total quality management 229; Business process re-engineering 230; Performance management 231; Organizational transformation 231

18 Job design and role building 235 Jobs and roles 235; Factors affecting job design and role building 236; The process of intrinsic motivation 237; Characteristics of task structurt? 237; Motivating characteristics of jobs 237; What is job design? 238; Approaches to job design 239; Techniques of job design 240; Job enrichment 241; Self-managing teams 242; High-performance work design 243

PART V HUMAN RESOURCE MANAGEMENT PROCESSES 19 Strategic HRM 247

Strategic HRM defined 247; Aim of strategic HRM 248; Strategic HRM and strategic management 248; Origins of the concept of strategic HRM 249; The meaning of strategic HRM 250; HR strategies 253; Formulating HR strategies 253; Key issues 255; Developing integrated HR strategies 256; Conclusion 257

20 Human resource policies 259 What are human resource policies? 259; Why have HR policies? 259; Do policies need to be formalized? 260; HR policy areas 260; Overall policy 260; Formulating or revising policies 266

The concept of competency 268; The concept of competence 269; The concepts of competency and competence distinguished 269; The constituents of competency 270; Types of competencies 271; Describing competencies 273; Using the concept 275

22 Job, role and competence analysis 279 Definitions 280; Job analysis 281; Role analysis 290; Skills analysis 290; Competence analysis 293; Job descriptions 299; Role definitions 303

21 Competency-based human resource management 267

PARTVI EMPLOYEE RESOURCING 23 Human resource planning 311

Definition 311; The labour market 313; Aims 313; Achieving the aims 314; Employee resourcing strategy 316; Turning broad strategies into action plans 317; Scenario planning 318; Demand forecasting 318; Supply forecasting 322; Analysing existing human resources 323; Employee turnover or wastage 323; Analysing the effect of promotions and transfers 328; Assessing changes in conditions of work and absenteeism 328; Analysing sources of supply 328;

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Performance management processes 439 Key activities 439; Role definition 441; Performance agreements 441; Managing performance throughout the year 444; Performance reviews 448; Guidelines for the’meeting 450; Conducting a constructive review meeting 451; Performance rating 452; Documentation 457; Introducing performance management 458; Monitoring and evaluating performance management 463

360-degree feedback 360-degree feedback defined 465; Use of 360degree feedback 466; Rationale for 360degree feedback 467; 360degree feedback - methodology 468; Development and implementation 470; 360degree feedback - advantages and disadvantages 471; 360degree feedback - criteria for success 472

PART VIII HUMAN RESOURCE DEVELOPMENT

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The basis of human resource development Definition of human resource development 479; Aims 479; Human resource development activities 480; Human resource development strategy 480; The context of human resource development 482; Marketing human resource development 483; Evaluating the human resource development contribution 484

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Learning and development 485 Organizational learning 486; How people learn 488; Learning theory 491; Conditions for effective learning 494; The learning organization 496; Continuous learning and development 498; Self-managed learning 498

Personal development planning 501 Defined 501; Purpose 501; Focus 502; Personal development planning - the overall process 502; Idenbfymg development needs and wants 504; Idenbfymg the means of satisfymg needs 504; Action planning 505; Responsibility for personal development planning 506; Introducing personal development planning 506 Training Definition 507; Aim 507; Benefits 508; Understanding training 508; Training philosophy 509; The process of training 511; I d e n w g learning and training needs 514; Planning training programmes 518; Training techniques 521; Conducting training programmes 523; Meeting the training needs of special groups 529; Responsibility for training 530; Evaluating training 531

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Forecasting human resource requirements 330; Use of spreadsheets - flexibility arrangements 333; Productivity and costs 336; Action planning 337; Overall plan 337; The human resource development plan 338; The recruitment plan 338; The retention plan 339; The flexibility plan 341; The productivity plan 346; The downsizing plan 346; Control 347

Recruitment and selection The recruitment and selection process 349; Defining requirements 350; Attracting candidates 354; Advertising 355; Outsourcing recruitment 359; Educational and training establishments 361; Sifting applications 361; Selection methods 368; Types of interviews 368; Assessment centres 369; Graphology 370; Choice of selection methods 370; Improving the effectiveness of recruitment and selection 372; References and offers 372

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Selection interviewing 375 Purpose 375; Advantages and disadvantages of interviews 376; The nature of an interview 377; Interviewing arrangements 378; Preparation 380; Thing 380; Planning and structuring interviews 380; Interviewing approaches 382; Interview techniques - starting and finishing 385; Interviewing techniques - asking questions 386; Selection interviewing skills 392; Coming to a conclusion 394; Dos and don’ts of selection interviewing 395

Psychological tests 397 Definition 397; Purpose 397; Characteristics of a good test 398; mes of test 399; Interpreting test results 402; Choosing tests 403; The use of tests in a selection procedure 404 Introduction to the organization 405 Induction defined 405; Why taking care about induction is important 406; Reception 407; Documentation 408; Company induction - initial briefing 409; Introduction to the workplace 409; Formal induction courses 410; On-the-job induction training 411

Release from the organization 413 General considerations 413; Redundancy 416; Outplacement 419; Dismissal 421; Voluntary leavers 424; References 426; Retirement 426

PARTVII PERFORMANCE MANAGEMENT 29 The basis of performance management 429

Performance management defined 429; Purpose of performance management 431; Principles of performance management 431; Concerns of performance management 432; Ethical considerations 433; The scope of performance management 433; Background to performance management 436; The process of performance management 437; Conclusion 438

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36 Management development 535 What is management development? 535; Management development as a business-led process 536; The impact of management development 536; Management development activities 537; The nature of management development 538; Management development strategy 539; Responsibility for management development 539; The basis of management development 543; Approaches to management development 544; An integrated approach to management development 546; Competency-based management development 547; Development centres 548

Definitions 551; Overall aims 552; The process of career management 552; Career management policies 556; Demand and supply forecasts 559; Succession planning 559; Performance and potential assessment 562; Recruitment 562; Career planning 562

37 Career management - management succession and career planning 551

PART D( REWARD MANAGEMENT 38 Reward management systems

Introduction 569; The reward management system 569; Components of a reward system 570; The elements of reward management 570; General factors determining pay levels 573; Economic factors affecting pay levels 573; Aims of reward management - the organization’s requirements 576; Reward aims from the employee’s point of view 577; Achieving the aims 578; The new pay 579; Reward strategy 579; Reward policy 581; Developments in the reward management scene 582

Job evaluation - definition and purpose 585; The key features of job evaluation 586; Basic methodology 587; Job evaluation schemes 588; Job ranking 589; Job classification 589; Internal benchmarking 590; Point-factor rating 590; Skill-based evaluation 596; Competence-based evaluation 597; Market pricing 597; Pros and cons of formal job-centred evaluation 598; Is job evaluation necessary? 599; Introducing job evaluation 600; Developing a point-factor scheme 602; Conducting the job evaluation exercise 605; Equal value 609

Purpose 611; The concept of the market rate 611; The information required 612; Job matching 612; Presentation of data 613; Sources of information 613

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40 Market rate analysis

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41 Pay structures 617 Definition 617; Purpose 617; Criteria for pay structures 618; Number of pay structures 619; The basis of pay structures 619; Graded pay structures 621; Broad-banded pay structures 626; Individual job ranges 628; Job family structures 629; Pay curves 630; Spot rate structures 632; Pay spines 632; Pay structures for manual workers 633; Integrated pay structures 635; Rate for age scales 635; Choice of structure 635

637 42 Contingent pay Contingent pay defined 637; The rationale for contingent pay 639; Criteria for contingent pay 640; Performance-related pay 640; Competence-related pay 645; Contribution-related pay 647; Team-based pay 649; Executive bonus and incentive schemes 651; Shop-floor incentive schemes 651; Organization-wide schemes 654; Skill-based pay 655; Choice of approach 656

Employee benefits 659; Occupational pension schemes 661; Allowances and other payments to employees 664

43 Employee benefits, pensions and allowances 659

44 Managing reward systems 665 Reward budgets and forecasts 665; Evaluating the reward system 666; Pay reviews 668; Control 669; Reward procedures 670; Responsibility for reward 671; Communicating to employees 673

PART X EMPLOYEE RELATIONS

45 The employee relations framework 679 The elements of employee relations 680; Industrial relations as a system of rules 680; Types of regulations and rules 681; Collective bargaining 682; The unitary and pluralist views 6 8 4 ; The reconciliation of interests 685; Individualism and collectivism 686; Voluntarism and its decline 686; The HRM approach to employee relations 686; The context of industrial relations 688; Developments in industrial relations 689; The current industrial relations scene 691; Findings of the 1998 Workplace Employee Relations Survey (WEE) 692; The parties to industrial relations 693

46 Employee relations - processes and outcomes 701 Employee relations policies 702; Employee relations strategies 706; Employee relations climate 707; Union recognition and de-recognition 709; Collective bargaining arrangements 710; Dispute resolution 712; Partnership agreements 714; Informal employee relations processes 716; Other features of the industrial relations scene 717; Employee relations outcomes 719; Managing with trade unions 722; Managing without trade unions 723

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Negotiating and bargaining The nature of negotiating and bargaining 727; Negotiations 728; Negotiating and bargaining skills 735

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Involvement and participation 739 Definitions 740; Aims of employee involvement and participation 741; Forms of employee involvement and participation 742; Varieties of employee involvement and participation 744; Attitude surveys 746; Quality circles 748; Suggestion schemes 750; Joint consultation 751; Works councils 753; Worker directors 754; Incidence of involvement and participation 754; Requirements for successful employee involvement and participation 755;Planning for involvement and participation 756

Communications 757 Communication areas and objectives 759; Communications strategy 759; Communication systems 761

PART XI HEALTH, SAFETY AND WELFARE 50 Health and safety 767

Managing health and safety at work 768; The importance of health and safety in the workplace 768; Health and safety policies 769; Conducting risk assessments 770; Health and safety audits 773; Safety inspections 775; Occupational health programmes 775; Managing stress 777; Accident prevention 777; Measuring health and safety performance 778; Communicating the need for better health and safety practices 779; Health and safety training 780; Organizing health and safety 780

51 Welfare services 783 Why provide welfare services? 783; What sort of welfare services? 785; Individual services 786; Group welfare services 789; Provision of employee welfare services 789; Internal counselling services 790; Employee assistance programmes 790

PART MI EMPLOYMENT AND HR SERVICES

52 Employment practices Terms and conditions and contracts of employment 796; Mobility clauses 797; Transfer practices 797; Promotion practices 798; Attendance management 799; Equal opportunity 801; Ethnic monitoring 802; Managing diversity 803; Age and employment 804; Sexual harassment 805; Smoking 807; Substance abuse at work 807; AIDS 809; E-mails 809; Bullying 809

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53 Human resource management procedures 811 Grievance procedure 812; Disciplinary procedure 813; Capability procedure 815; Redundancy procedure 817

54 HR information and record systems 821 Introduction 821; Benefits of a computerized human resource information system 822; Information technology strategy 823; Developing an information system 825; Examples of applications 828; Manual records 834

APPENDICES Appendix A Training techniques

On-the-job training techniques 837; On- or off-the-job training techniques 839; Off-the-job training techniques 845

Appendix B HR record forms Basic record card 854; Monthly analysis of leavers 855; Monthly/annual summary of absence 856; Quarterly return - employment, labour turnover and earnings 857

References . Subject index

Author index

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