01 The essence of human resource management (HRM)

Transcription

1 01 The essence of human resource management (HRM) Key ConCePts and terms Added value Agency theory AMO theory Commitment Contextual model of HRM Contingency theory European model of HRM 5-P model of HRM Hard HRM Harvard framework HR philosophy Human capital theory Human relations Human resource management (HRM) Humanism Institutional theory Matching model of HRM Motivation Organizational behaviour theory Organizational capability Resource-based theory Resource dependence theory Soft HRM Strategic alignment Strategic human resource management (SHRM) Transaction costs theory Unitarist LearnIng outcomes 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 The underpinning theories The reservations made about HRM Models of HRM The position of HRM today Armstrong's Handbook of HRM Practice_print-ready.indb 3 2/20/2014 3:41:06 PM

2 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, knowledge management, corporate social responsibility, organization development, resourcing (workforce planning, recruitment and selection and talent management), 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) that human factors are paramount in the study of organ izational 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, Armstrong's Handbook of HRM Practice_print-ready.indb 4 2/20/2014 3:41:06 PM

3 Chapter 1 The Essence of HRM 5 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 philosophy 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 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; Armstrong's Handbook of HRM Practice_print-ready.indb 5 2/20/2014 3:41:06 PM

4 6 Part 1 The Practice of Human Resource Management 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 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 ). Armstrong's Handbook of HRM Practice_print-ready.indb 6 2/20/2014 3:41:06 PM

5 Chapter 1 The Essence of HRM 7 Motivation 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). 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 organizational 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. Institutional theory Organizations conform to internal and external environmental pressures in order to gain legitimacy and acceptance. 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 opportunity 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 organization 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. Armstrong's Handbook of HRM Practice_print-ready.indb 7 2/20/2014 3:41:06 PM

6 8 Part 1 The Practice of Human Resource Management 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 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 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. 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. Armstrong's Handbook of HRM Practice_print-ready.indb 8 2/20/2014 3:41:06 PM

7 Chapter 1 The Essence of HRM 9 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 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 consideration 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 underestimated 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, Armstrong's Handbook of HRM Practice_print-ready.indb 9 2/20/2014 3:41:06 PM

8 10 Part 1 The Practice of Human Resource Management 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; 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, Armstrong's Handbook of HRM Practice_print-ready.indb 10 2/20/2014 3:41:06 PM

9 Chapter 1 The Essence of HRM 11 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. 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 HRM defined Human resource management (HRM) is concerned with all aspects of how people are employed and managed in organizations. 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 highperformance 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; encourage the application of an ethical approach to people management. Philosophy of HRM 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). 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). Armstrong's Handbook of HRM Practice_print-ready.indb 11 2/20/2014 3:41:07 PM

10 12 Part 1 The Practice of Human Resource Management 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 Armstrong, M ( 2000 ) The name has changed but has the game remained the same? Employee Relations, 22 ( 6 ), pp 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 Boxall, P F and Purcell, J ( 2003 ) Strategy and Human Resource Management, Basingstoke, Palgrave Macmillan 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 Chartered Institute of Personnel and Development ( 2013 ) HR Profession Map, 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 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 Armstrong's Handbook of HRM Practice_print-ready.indb 12 2/20/2014 3:41:07 PM

11 Chapter 1 The Essence of HRM 13 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 Guest, D E (1991) Personnel management: the end of orthodoxy, British Journal of Industrial Relations, 29 (2), pp Hendry, C and Pettigrew, A (1990) Human resource management: an agenda for the 1990s, International Journal of Human Resource Management, 1 (1), pp 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 Keenoy, T (1997) HRMism and the images of re-presentation. Journal of Management Studies, 34 (5), pp 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 Legge, K (1998) The morality of HRM, in (eds) C Mabey, D Skinner and T Clark, Experiencing Human Resource Management, Sage, London, pp 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 Mayo, E (1933) The Human Problems of an Industrial Civilisation, London, Macmillan McGregor, D (1960) The Human Side of Enterprise, New York, McGraw-Hill Noon, M (1992) HRM: a map, model or theory? in (eds) P Blyton and P Turnbull, Reassessing Human Resource Management, London, Sage, pp Osterby, B and Coster, C (1992) Human resource development a sticky label, Training and Development, April, pp 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 Schuler, R S (1992) Strategic HRM: linking people with the needs of the business, Organizational Dynamics, 21, pp 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 Walton, R E (1985) From control to commitment in the workplace, Harvard Business Review, March April, pp Watson, T J (2010) Critical social science, pragmatism and the realities of HRM, The International Journal of Human Resource Management, 21 (6), pp Willmott, H (1993) Strength is ignorance, slavery is freedom: managing culture in modern organizations, Journal of Management Studies, 30 (4), pp Armstrong's Handbook of HRM Practice_print-ready.indb 13 2/20/2014 3:41:07 PM

12 Subject index ability 126 ability tests absence management the Bradford factor 255 causes of absence defined 254 long-term absence 255 policies 255 recording and measuring absence 256 short-term absence 255 absenteeism, handling of ACAS 428, 437 accident prevention 458 accountability profile 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 advertising (recruitment) , 233 affective commitment 187 affective engagement 194 age and employment policy 511 agency theory 8 AIDS policy 511 alignment, vertical 18 AMO theory 7 analytical job evaluation schemes , 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 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 construction of survey content described 161 developing 801 and employee voice 432 engagement 201 example of format 806 issues 805 pilot testing plan survey 808 post-survey activities 809 reward 764 scoring 806 survey items, format and content survey providers 813 toolkit topics 806 attitudes 127 attraction and retention policies 733 attrition, employee turnover 249 autonomous work groups 147 autonomy 196 average 584 balance sheets 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 , 373, 384 behaviour modelling 156 behavioural competencies 86, 336 behavioural competency modelling behavioural science 113, 118 benchmark roles 721 best fit critical evaluation 24 model 23 best practice critical evaluation 24 model big idea, the 55, 57, 200 biodata 234 bite-sized training Armstrong's Handbook of HRM Practice_print-ready.indb 823 2/20/2014 3:43:57 PM

13 824 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, 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 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 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 career progression 273 career stages defined , 270 dynamics 271 and plateaued managers 273 policies portfolio career 274 protean career 274 self-managed careers 274 stages 270, 271 strategy 271 career map 273 career planning 270, career progression 271 case presentation case studies, use in research case studies and examples absence management business partnering 44 employee assistance programme 449 employee relations 429 employee voice 435 employment law employer brand 249 engagement 202 high performance work systems 61 HR information systems 529 HR strategies 27, 28 human capital measurement 74 international HRM international performance management international reward management leadership and management development 325 learning and development organization development (culture change) 161 organization of HR function performance management 62, recruitment and selection 243 resourcing 21 reward management reward philosophies and guiding principles reward strategies 360, social media, use in recruiting 230 talent management 266, work organization 142 workforce planning 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 the change process 633 and communications 438 and culture management 157 defined 162 facilitating change 632 field force analysis 634 implementing change leading change 632 and organization development 156, 157, 162 resistance to change role of change agents 637 change models Beckhard 634 Beer et al Lewin Thurley 634 characteristics of people Chartered Institute of Personnel and Development (CIPD) 8, 39, 40, 43, 47, 48, 106, 137, 139, 141, , 161, 201, 216, , 230, 251, 254, , 331, 377, 381, 417, 525, 538, chi-squared test 587 classical school of organization theory 118 coaching 307, cognitive dissonance 127 cognitive evaluation theory of motivation 176, 179 Armstrong's Handbook of HRM Practice_print-ready.indb 824 2/20/2014 3:43:57 PM

14 Subject Index 825 cognitive learning theory 292 collective agreements defined 427 new style agreements 428 partnership agreements 428 procedural agreements 427 single-union deals substantive agreements 427 collective bargaining conjunctive bargaining 427 co-operative bargaining 427 defined 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 defined 6, 167, 185 developing a commitment strategy 189 and engagement 187, factors affecting and flexibility 188 and HRM 6 importance of meaning of 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 for HR professionals 48 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 competency definition criteria 614 competency frameworks defined 86, 89 development of headings and learning needs analysis 304 competency headings competency modelling behavioural competency modelling 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 team members conflict configurational perspective on strategic HRM 22 conjunctive bargaining 427 constructive dismissal 535 constructs 167 consultation 437 consultative committees 439 content (needs) theory of motivation , 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 continuous improvement 631 contribution-related pay 380 control theory 335 convergence achieving convergence advantages and disadvantages of 471 choice of defined 466, 468 and divergence 469 drivers for 470 factors affecting 466, 469, 470 pressure for 471 in international reward management 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 defined 106 developing a CSR strategy and firm performance 109 and HR professionals 106 opposing views policy 106 Armstrong's Handbook of HRM Practice_print-ready.indb 825 2/20/2014 3:43:57 PM

15 826 Subject Index rationale for 108 strategic CSR 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 of emotional intelligence concept of high performance work systems of the learning organization notion 298 of the resource-based view 22 of the concept of reward strategy of the strategic HRM concept of the concept of strategy of the three-legged stool model 40 critical-incident technique for competency modeling 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 demand forecasting deontological theory 97 detriment 533 development 284 development centres 326 diagnostic cycle 159 diagnostics direct discrimination 533 directors, reward of, see rewarding directors and senior executives disciplinary issues, handling of disciplinary procedure discipline policy 511 discourse ethics 97 discretionary behaviour/effort 167, 168 discretionary learning 292 discretionary performance 169 discrimination rights 533 dismissal , dismissal, handling of 534 dispersion measures 585 dispute resolution aim 428 arbitration conciliation 428 mediation 429 pendulum arbitration 429 distributive bargaining 427 distributive justice 98 divergence 466, diversity 266 dominant coalition 144 double-loop learning 297 education 284 e-hrm 525, see also HR information systems e-learning 307 s policy 512 emotional intelligence and competencies 93, 128 components of 128 critical evaluation of concept 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 importance of 438 methods 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 conclusions 201 defined , 710 diagnostic framework 714 drivers of , 711 the engagement journey 709 enhancing job engagement enhancing organizational engagement 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, Armstrong's Handbook of HRM Practice_print-ready.indb 826 2/20/2014 3:43:58 PM

16 Subject Index 827 outcomes 197 and performance management 198 social engagement 194 and reward , 200 survey 712 theory of engagement toolkit employee relations approaches to basis of 406 climate 408 defined 403 ethical approach 408 ethical guidelines 100 and industrial relations 403 informal processes 429 management style managing with trade unions managing without trade unions 410 objectives 408 pluralism 410 pluralist perspective 188 pluralist viewpoint 409 policies 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 defined 249 employee turnover index half-life index 250 length of service analysis 251 measurement of 724 stability index 250 survival rate 250, 251 employee value proposition 211, , 365 employee voice attitude surveys 432 categorization 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 participation 432 partnership 432 planning for 434 policy 124 stages of suggestion schemes 432 upward communications 432 upward problem solving employee well-being bullying 448 employee assistance programmes (EAPs) 449 group employee services 449 in HRM 38 importance of 446 managing stress practice of 445 reasons for concern 446 services for individuals sexual harassment work environment 446 work-life balance 446 employer brand 211, 248 employer of choice 248, 269 employment law discrimination law dismissal law enforcement family friendly employment law 536 health and safety law 536 hours and wages law and HRM purpose whistle-blowing law employment management 8 employment practices, ethical guidelines 100 employment relationship basis of contracts 415 defined 413 and labour process theory 415 managing the employment relationship nature of policy 407 and the psychological contract and regulation 531 employment security 189 engaged employees 194, 197 engagement, see employee engagement enterprise resource (ERS) systems 527 equal opportunity policy Equality Act (2010) 370, 533 equal pay 370 equifinality 144 equity theory 97 equity theory of motivation 176, 179 e-recruitment 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 ethical dimension to HRM 38, 96 ethical frameworks ethical guidelines for HRM 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 importance of 311 levels of evaluation Kirkpatrick Armstrong's Handbook of HRM Practice_print-ready.indb 827 2/20/2014 3:43:58 PM

17 828 Subject Index problem with return on expectations 313 return on investment 313 evaluation of reward evidence-based management approach to 568 defined in evaluating reward 382 need for 568 executive search consultants 232 exit interviews 253 expatriate defined 495 expatriates, management of assimilation and support career management 500 different approaches to 463 difficulties 495 home-based pay host-based pay 502 importance of 495 pay and allowance policies performance management preparation policy 499 process of qualities and behaviours required recruitment and selection policies resourcing policies RoI on international assignments 496 why use expatriates? 496 expectancy theory of motivation 57, , 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 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, , 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 , 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 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 implementation 800 job family structure design 799 pay range design pay spine 375 protection policy toolkit grade structures 373 grades 373 graphology 240 grievance procedure 520 grievances policy 513 grounded theory 575, 578, 580 group dynamics 156 Armstrong's Handbook of HRM Practice_print-ready.indb 828 2/20/2014 3:43:58 PM

18 Subject Index 829 group behaviour defined 124 development formal 124 ideology 124 informal 124 norms 124 guiding principles 36, half-life index 250 halo effect 598 handling people problems 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 health and safety accident prevention 458 aim 453 audits communicating on hazards 455 inspections management of 454 measuring performance 459 occupational health programmes , 458 organizing 460 policies risk assessments 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 hierarchies 117 hierarchy of needs (Maslow) 171, 178 high-commitment management high-involvement management 27, 199 High Pay Commission 392 high-performance culture 58 high-performance management 26 high performance work design 148 high performance work practices 141 high performance work systems 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 impact of as an insight-driven discipline 549 and performance role in business model innovation 558 role in leading and facilitating change status of 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 centres of expertise 39 delivery of HRM 4 delivery model 38 ethical dimension of 38 evaluation of 41 fragmentation of 38 as an insight-driven discipline 549 organization of 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 values of HR 46 HR guiding principles 36 HR heads of function, strategic role of 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 functions of 526 integration 527 intranet 527 introducing reasons for introduction 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, HR policies (overall) 510 HR policies (specific) absence management 255 age and employment 511 AIDS 511 attraction and retention 733 bullying 511 career management Armstrong's Handbook of HRM Practice_print-ready.indb 829 2/20/2014 3:43:58 PM

19 830 Subject Index corporate social responsibility 106 discipline 511 diversity management s 512 employee development 512 employee relations , 512 employee voice 12 the employment relationship 512 equal opportunity grievances 513 health and safety , 513 international HRM internet, use of 512 new technology 513 promotion 513 redundancy 513 reward 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 purpose 459 HR procedures (specific) capability 518 disciplinary grievance 520 redundancy HR processes 10 HR Profession Map (CIPD) 8, 43, HR professionals ambiguities in the role 46 behaviours 47 business model innovation role 558 business partner role 44, 546, 548 change agent role competencies required 47 corporate social responsibility, role in 106 as employee advocates 38 employee champion role 8, 38 and employee needs 2 ethical responsibilities 46, ethical values 47 as facilitators 43 general role innovation role 45 insight-led 43 insight requirement 549 leading and delivering change and organizational behaviour theory 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 strategic business partner role strategic role 43 44, 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 change management 632 competency modelling conflict management coordinating discussions 655 critical evaluation 570 critical thinking 570 developing and justifying arguments 571 facilitating 654 financial handling people problems influencing job and role analysis leadership leading and facilitating change learning and development logical reasoning 569 making a business case negotiating and bargaining 628 political problem-solving research selection interviewing statistical strategic HR specialists, see HR professionals HR strategies (general considerations) and business strategies 29 criteria for 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 high performance 62 human capital management 27 individual learning 287 international HRM knowledge management 27, learning and development 27, and line managers 29 motivation organization development 27, organizational learning 287 resourcing 27, 210 Armstrong's Handbook of HRM Practice_print-ready.indb 830 2/20/2014 3:43:58 PM

20 Subject Index 831 reward 27, talent management 27, 269 HR system HR techniques 36 HR values 46 human capital concept of 68 constitutes of defined intellectual capital 69 measuring human capital organizational capital 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 goals 692 introduction of 78, and measurement measures 72 73, priorities 693 process 86 and strategic HRM 21 strategy 27 toolkit uses of 688 human capital measurement approaches to 71 data defined 70 measures need for 70 role of 70 human capital monitor 71 human capital reporting human capital theory 7, 70 human process advantage 21 human relations approach 4 human relations school of organization theory 118 human resource advantage 21 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 ethical dimension to HRM 38, 96 ethical guidelines for HRM ethical HRM 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 impact of HRM on performance 54 impact of HRM practices on performance 57 link to performance links between HR and firm performance 55 as a managerialist approach 8 matching model of HRM 4, 9 meaning of 11 and performance 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 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 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) , 306 induction (research) 580 industrial relations defined 425 informal processes 429 managing with trade unions 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, 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 Armstrong's Handbook of HRM Practice_print-ready.indb 831 2/20/2014 3:43:58 PM

21 832 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 international human resource management aim 466 centralization 469 contextual factors 467 convergence 466, cultural differences decentralizing 469 defined 466 differences between international and domestic HRM divergence 466, drivers for convergence 470 expatriates, management of 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 practice of 477 resourcing reward management standardization 466 strategies talent management workforce planning 478 International Labour Organization (ILO) 531 internationalization 466 interventions, OD 156 interviews job analysis 606 research selection intranet 79, 439, 527 intrinsic motivation defined 170 development of 181 effect of 181 and job design 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 outcomes 605 questionnaires, use of 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 in organization structures 117 job design approaches to 147 characteristics of jobs 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, job enlargement 147 job enrichment 137, job evaluation analytical job matching analytical schemes 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 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 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 Armstrong's Handbook of HRM Practice_print-ready.indb 832 2/20/2014 3:43:58 PM

22 Subject Index 833 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 defined 78, 79 explicit knowledge 78 tacit knowledge 78 knowledge management codification strategy 79 contribution of HR to 81 defined 79 issues 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 knowledge, skills and abilities (KSAs) , 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 law of the situation 144 leaders authentic leaders 645 charismatic 644 qualities 646 transactional leaders 645 transformational leaders visionary leaders 644 what leaders do leadership defined 322 described 125 effective leadership and engagement and management meaning of 641 and motivation 182 reality of leadership 647 styles 643 theories 642 types of leaders 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 , 743, 745 evaluation levels 744 events 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 Kolb s learning cycle 293 implications of learning theory individual 287 informal learning 305 the learning curve 294 the learning cycle 293 learning to learn learning events, planning and delivery of learning styles 293, 296 learning theory 292 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 /20/10 model 292 single-loop learning social learning 292, 296 specification 304 strategies styles 293 theory 292 and training 284 types of learning 295 workplace learning learning contracts 296 learning culture 287 the learning curve 294 learning and development aim 281 approaches to 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 process of 292 the 70/20/10 model 292, 305 strategic learning and development 284 strategies 281, use of competencies 91 learning and development strategy 27, learning events ADDIE model 310 decide on content and delivery 739, define objectives 737 establish learning needs 737, 739 Armstrong's Handbook of HRM Practice_print-ready.indb 833 2/20/2014 3:43:58 PM

23 834 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) toolkit learning needs, identification of analysis of business and workforce plans 303 approaches to learning needs analysis 302 establishing learning needs gap analysis performance and development reviews 303 role analysis 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 Kolb 293 learning to learn 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 line and staff organization 118 lines of command 117 Linkedin 230 literature reviews 575 logical incrementalism 17 logical reasoning 569 lower quartile 585 management management and leadership management development criteria for 328 defined 326 formal approaches to 325 informal approaches to 327 leadership and management development compared objectives 326 role of HR and learning and development specialists 328 role of the individual role of the organization 327 management by objectives (MBO) 334, 347 management role in employee relations 429 management style 122, 254, , 705 management succession planning 268, managing change see change management managing expatriates, see expatriates, management of manpower planning 216, see also workforce planning manual workers market pricing acceptability of 371 defined 371 use of 371 market rate 371 market rate analysis 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, 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 , 178 defined 167, 170 and engagement 168, 195 equity theory 176 ERG theory (Alderfer) 172, 178 expectancy theory 57, , 179, 420 extrinsic motivation 170 goal theory , 179, 292 hierarchy of needs (Maslow) 171 the HR contribution 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 motivation theory 171 needs (content theory) , 178 process (cognitive) theory 173 purposeful work behaviour 176 Armstrong's Handbook of HRM Practice_print-ready.indb 834 2/20/2014 3:43:58 PM

24 Subject Index 835 reinforcement theory self-determination theory 173, 178 social learning theory 176 strategies summary of theories theory and HRM 7 two-factor model (Herzberg) , 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 National and Scottish Vocational Qualifications (NVQs/SNVQs) 86 natural justice 98 needs theory of motivation , 178 negative behaviour, handling of negotiating bargaining 627, 628 commercial negotiations 626 industrial relations negotiations 626 process of 626 skills 628 stages 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, , 348, 363, 365, 377, 381, 654 normal curve (test results) 239 norms (cultural) 120, , norms (test) 238, 239 no-strike clause 428 null hypothesis 587 numerical flexibility 139 NVQ/SNVQ competences 86 objectives Occam s razor 564 occupational health programmes , 458 occupational pension schemes, see pensions OD, see organization development online recruitment 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 structure 117 structure analysis 144, 699 successful design 145 toolkit organization development (OD) action plan 707 activities , artefacts analysis 705 and change management 157 conclusions on 164 criticisms of culture analysis 702 and culture management 157 defined 154 diagnostic checklist organizational effectiveness ethical guidelines and HR 154 integrated strategic change 159 interventions 154, 161 management style analysis 705 nature of new approaches to norms analysis 704 objectives, assumptions and values of OD , organization development programmes and organization design 158 original version of OD 155 story of strategic perspective on 158 strategy teamwork analysis 706 toolkit traditional OD programmes 156 values analysis 703 organization reviews 143 organization structure organization theory, schools of organizational behaviour characteristics of organizational behaviour theory 116 defined 116 implications of theory for HR specialists sources and applications of theory theory 7, 113 organizational capability 17, 158 organizational capital organizational choice 143 organizational citizenship behaviour 168, 196 organizational climate organizational climate questionnaire organizational commitment 6, see also commitment Armstrong's Handbook of HRM Practice_print-ready.indb 835 2/20/2014 3:43:58 PM

25 836 Subject Index organizational culture appropriate cultures 123 artefacts 122 classification of 122 climate components of culture analysis 702 culture change 157 culture management 157 defined 120 development of diversity of 121 embedded cultures 123 and international HR practice 467 management style 122, 254, , 705 norms 120, norms analysis 704 organizational climate values 120, 121 values analysis 703 Organizational Culture Inventory 157, 160 organizational development, see organization development organizational diagnosis organizational engagement 6, 194, Organizational Ideology Questionnaire 160 organizational learning 163, 287, 295, 297, 298 Organizational Performance Model (Mercer) 71 organizational politics 125, , 673 organizational processes communications 127 effect on how organizations function 118 group behaviour interaction 124 networking 124 organizational transformation 158 organizations changes in the nature of 144 defined 117 processes in 118 schools of organization theory types of organizing 117 outdoor learning 322 outplacement 258 paradigm 580 participation 432 partnership agreements 428 partnership policy 407 partnership schemes 432 pay determination 364, pay matrix 385 pay for organizational performance 81 pay progression 374 pay range 373 pay reviews pay spine 375, 379 pay structures , 398 pay-work bargain 414 payment-by-results schemes 398 pendulum arbitration 429 pensions 381 people, characteristics of people management 1, 44, 704 people resourcing 207, see also resourcing performance defined 331 factors affecting 180 and HRM meaning of performance agreement performance appraisal 334, 338, see also performance management performance assessment performance culture 35, 336, performance drivers 70 performance and reward 331 performance management aims 334, 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 and appraisal 334, 338 assessing performance and commitment 189 contribution 346 cycle defined 331, 334 design programme 752 design toolkit development of system 755 and engagement 198 ethical guidelines evaluation toolkit 759 for expatriates form gap analysis 749 and goal theory 335 goals 747, 748 and high-performance cultures 62 impact on performance implementation programme 756 implementation toolkit in international firms 472, introduction of 349 issues and learning and development 308 and line managers 345 managing performance throughout the year 338 and motivation 168, 195 objective setting operations toolkit 758 and organization development 163 overall assessment performance agreement performance management cycle performance management pathway 748 performance planning the performance review 338 performance review meetings, conduct of pilot testing 756 principles 335 purpose 336 rating performance recording the performance agreement and review 341 Armstrong's Handbook of HRM Practice_print-ready.indb 836 2/20/2014 3:43:58 PM

26 Subject Index 837 requirements for success 350 reviewing performance 338 and the reward system 366 as a rewarding process 348 SMART objectives and talent management degree feedback 337, toolkit underpinning theories 335 use of competencies 91 visual assessment 342, 341 web-enabled 341 performance rating performance-related pay 181, 376, 377, 378, 379, 380 performance review 303, 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 traits 127 types 127 personality tests 238 personnel function, see HR function personnel management 4, 5 personnel practitioners/ professionals see HR professionals persuading people PESTLE analysis 159 phenomenology 574 piecework 399 planned experience 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 politics, dangers of 673 politics in organizations 125, , 673 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 procedural agreements 427 procedural justice 98 process process-centred organizations 138 process consulting 156 process planning 138 process(cognitive) theories of motivation , 179 professionalism in HR 47 Profession Map, HR (CIPD) 8, 43, profitability analysis ratios 556 profit and loss accounts profits 555 profit-sharing 381 promotion policy 513 proposition 575 proposition testing 570 protean career 274 protection policy, pay Protestant ethic 173 psychological contract and commitment 189 defined developing a positive psychological contract and the employment relationship 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 rank and hank 341 rating performance 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 recruitment process outsourcing (RPO) 232, 233 recruitment and selection administering the selection programme 236 advertising analysis of recruitment strengths and weaknesses 228 analysis of requirements 228 application forms 234 applications, dealing with assessment centres 240 attracting candidates biodata 234 checking applications choice of methods corporate web sites 229 dealing with applications dealing with recruitment problems 242 defining requirements education and training establishments 232 e-recruitment ethical guidelines 99 following up 242 graphology 240 interviewing job boards 229 jobcentre plus 231 offers 241, 242 online recruitment , 233 outsourcing 232 person specification 226 processing applications 234 Armstrong's Handbook of HRM Practice_print-ready.indb 837 2/20/2014 3:43:58 PM

27 838 Subject Index realistic job previews 422, 499 recruitment agencies 231 recruitment consultants recruitment process outsourcing (RPO) 232, 232 references 241 role profiles 226 selection methods 236, selection testing social media, use in recruiting 230 sorting applications 234 sources of candidates , 232 use of competencies 91 use of tests Web 2.0 technologies 230 reductionism 574 redundancy 258 redundancy policy 513 redundancy procedure reference group 124, 127 references 241 reflective learning 327 regression 585 reinforcement 156, reinforcement theory of motivation , 179 relational contracts 415 relational rewards 366 release from the organization repertory grid 616 research methods in HRM case studies collecting data critical evaluation techniques 581 critical evaluation of research cross-lagged models 576 data collection deduction 580 diaries 579 experimental designs 579 grounded theory 575, 578, 580 hypothesis 575 hypothesis testing 580 induction 580 interviews literature reviews 575 methodology 578 nature of research 574 observation 579 paradigm 580 phenomenology 574 philosophy 574 positivism 574 processes involved in research proposition 575 qualitative methods 576 quantitative methods 576 questionnaires research design 575 research programmes 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 plans 211 practice 247 strategic approach to 207 talent 733 resourcing strategy respect, treating employees with 98 retention planning areas for action factors affecting retention 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 reward policy reward management administration of aims 370 attitude survey 764 competitive pay 320 defined 331, 370 and engagement ethical guidelines 100 fair pay 370 financial rewards 181, guiding principles influence on performance 364 internally equitable pay in international firms job evaluation 372 market pricing non-financial rewards 365 pay determination philosophy 358 relational rewards 366 reward strategy reward system 357, and stakeholders 358, 359 total rewards transactional rewards 366 use of competencies 91 reward guiding principles reward philosophy 358 reward policy reward segmentation 391 reward strategy analysis of strategy and practice 762 arguments for 359 content 360 critical evaluation of the concept defined 357 development of 765 formulating 361 implementing 361 purpose 359 reward system rewarding directors and senior executives corporate governance elements of executive remuneration executive pay levels 392 Armstrong's Handbook of HRM Practice_print-ready.indb 838 2/20/2014 3:43:58 PM

28 Subject Index 839 principles of executive remuneration rewarding special groups directors and senior executives knowledge workers 395 manual workers sales representatives right-angle forecasting method 220 risk assessments (health and safety) role analysis , 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 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 for recruitment purposes 226 role specifications 498 SaaS 527 safety inspections programmes 453 see also health and safety sales representatives scenario planning 219 security, employment 189 selection assessment centres 240 defined 226 interviewing techniques interviewing interviewing skills interviewing panel 237 methods 240 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 career questions 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 motivation questions 596 note taking 591 open-ended questions parts of the interview 592 planning the interview 592 play-back questions 596 preparing for the interview 591 probing questions purpose 590 questioning techniques 590, 593, questions, types of questions to be avoided 597 situation-based questions 595 skills structuring the interview targeted approach 593 useful questions 597 selection interviews advantages and disadvantages 236 aim 229 competency-based interview 237 interviewing techniques structured interviews 237 unstructured interviews 237 selection testing ability tests aptitude tests 239 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, 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 share option schemes 394 share schemes 381 shared service centres 39 SHRM, see strategic human resource management Sibson 345, single-loop learning single status 189, 427 single-union deals 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 SMART objectives smart working 139, 158, 163 social capital 69, 81 social cognitive theory 335 social exchange theory 7, 19, 195, 200 Armstrong's Handbook of HRM Practice_print-ready.indb 839 2/20/2014 3:43:58 PM

29 840 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 upper quartile 585 use of 54 status quo clause 410 strategic business partners 39, strategic capability 159 strategic change 158 strategic choice 16, 18, 24, 144 strategic configuration 23 strategic employee relations 405 strategic fit 17, 22, 210 strategic human resource development (strategic HRD) 281, see also learning and development strategy strategic human resource management (strategic HRM, SHRM) activities 678 aims best fit model 23, 24 best practice model 22 23, 24 and bundling 25 conceptual basis 9, 16 critical evaluation of defined 16, 18 and fit 7, 16 framework 677 gap analysis 682 as a holistic process 25 HR strategies nature of 18 perspectives on 22 and resourcing 210 skills strategic configuration 23 toolkit strategic HRM skills strategic contribution of HR advisors 548 strategic role of HR business partners 548 strategicrole of heads of functions strategic role of HR directors 547 strategic role of HR professionals strategic skills required 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 and strategic fit 210 and strategic HRM 210 strategic reward analysis of reward strategy and practice and business strategy 765 critical evaluation of concept defined 357 formulation 769 framework 761 goals 767 implementation 769 integration of reward and HR strategies 766 purpose 357 reward attitude survey 764 toolkit see also reward strategy strategic role of heads of HR functions strategic role of HR business partners 548 strategic role of HR directors 547 strategic role of the HR professional strategies, HR see HR strategies strategy characteristics of 17 concept of critical evaluation of concept defined emergent 18 formulation of 17 HR strategies implementation of 17 and strategic fit 17 stress, management of structural analysis 143 structural capital 69 structural flexibility 139 structured interviews 237 substance abuse policy 514 substantive agreements 427 succession planning 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 Armstrong's Handbook of HRM Practice_print-ready.indb 840 2/20/2014 3:43:58 PM

30 Subject Index 841 talent 265 talent audit 267 talent development 267 talent management aims 266 analysis of practice 735 audit 267, 732 defined 263, , 480 developing a talent management strategy 269 and diversity 266 in international firms people involved and performance management 267 planning 267, 729, 731 policy 731 process of strategy 269, 729, 730 talent development 267, 734 talent identification 267 talent on demand 269, 277 talent pipeline , 268 talent planning 267, 729, 731 talent pool 268 talent relationship management 267 talent resourcing 267, 733 talent retention 267 toolkit war for talent 263, 265 what is happening to talent management? 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 degree feedback 337, timekeeping problems 660 time rates 398 tool kits attitude surveys employee engagement grade and pay structure design human capital management job evaluation organization design organization development performance management planning and delivering learning events strategic HRM strategic reward talent management total rewards use of workforce planning total loss control 459 total quality management (TQM) 157 total rewards analysis grid 774 choice of elements 774 concept 365, 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 toolkit Towers Perrin model 366 Towers Perrin 197, 366 trade unions density of membership 426 de-recognition 426 managing with trade unions managing without trade unions 410 membership 426 recognition 407, 426 trading statements 555 training bite-sized training defined 284, 308 effective training 310 justification for 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 climate of trust 416 and commitment 189 defined 416 high-trust organizations 416 and HRM 5 renewing 417 two-factor model of motivation (Herzberg) , 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 Armstrong's Handbook of HRM Practice_print-ready.indb 841 2/20/2014 3:43:59 PM

31 842 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 work 136 work design defined 136, history of 137 job enrichment 137 work system design work environment 28, 98, 100, 123, 136, 137, 139, 167, 197, 200, 365, 445, 446 workforce planning action planning 221, 725, 727 activity levels forecasting analysis 219 approaches to balancing demand and supply 725 and business planning 217 and the business plan 720 data collection 219 defined 211, 216 demand forecasting , 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 ratio-trend analysis 220 reasons for 217 retention planning scenario planning 219, 719 supply forecasting systematic approach to toolkit work study techniques 220 work engagement 194 work environment 200, 446 work-life balance 446 Working Time Regulations Workplace Employee Relations Survey (2004) 410, 428 workplace learning work-measured pay schemes 399 work system 138 work system design defined 138 in process-centred organizations 138 process planning 138 requirements working arrangements 407 WorldatWork 345, wrongful dismissal 535 zero-hours contracts 140 Armstrong's Handbook of HRM Practice_print-ready.indb 842 2/20/2014 3:43:59 PM