Armstrong's Essential Human Resource Management Practice: A Guide to People Management

433 Pages·2010·2.27 MB·English

by  Michael Armstrong

i
ARMSTRONG’S
ESSENTIAL
HUMAN RESOURCE
MANAGEMENT PRACTICE
ii
THIS PAGE IS INTENTIONALLY LEFT BLANK
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ARMSTRONG’S
ESSENTIAL
HUMAN RESOURCE
MANAGEMENT PRACTICE
A GUIDE TO PEOPLE
MANAGEMENT
Michael Armstrong
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Publisher’s note
Every possible effort has been made to ensure that the information contained in this book is accurate at the
time of going to press, and the publishers and author cannot accept responsibility for any errors or omissions,
however caused. No responsibility for loss or damage occasioned to any person acting, or refraining from
action, as a result of the material in this publication can be accepted by the editor, the publisher or the author.
First published in Great Britain and the United States in 2010 by Kogan Page Limited
Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted
under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or trans-
mitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of
reprographic reproduction in accordance with the terms and licences issued by the CLA. Enquiries concerning
reproduction outside these terms should be sent to the publishers at the undermentioned addresses:
120 Pentonville Road 525 South 4th Street, #241 4737/23 Ansari Road
London N1 9JN Philadelphia PA 19147 Daryaganj
United Kingdom USA New Delhi 110002
www.koganpage.com India
© Michael Armstrong, 2010
The right of Michael Armstrong to be identified as the author of this work has been asserted by him in accord-
ance with the Copyright, Designs and Patents Act 1988.
ISBN 978 0 7494 5989 5
E-ISBN 978 0 7494 5990 1
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Armstrong, Michael, 1928–
Armstrong’s essential human resource management practice : a guide to people management / Michael
Armstrong.
p. cm.
ISBN 978-0-7494-5989-5 — ISBN 978-0-7494-5990-1 (ebook) 1. Personnel management—Handbooks,
manuals, etc. I. Title. II. Title: Essential human resource management practice.
HF5549.17.A758 2010
658.3—dc22
2010000341
Typeset by Graphicraft Limited, Hong Kong
Printed and bound in India by Replika Press Pvt Ltd
v
Contents
Introduction 1
Part I Human Resource Management 5
1. The Practice of Human Resource Management 7
Introduction 8; The philosophy of HRM 8; The purpose of HRM 9;
The diversity of HRM 10; HRM as a system 11; The context of HRM 12;
The ethical dimension 14; The impact of HRM on performance 15;
The HRM role of line managers 15; The role of the HR function 19;
The role of HR practitioners 21; Critical evaluation of the concept of
HRM 28; Key learning points 30; Questions 31; References 31
2. Strategic Human Resource Management 34
Introduction 35; The conceptual basis of strategic HRM 35; Strategic
HRM defined 37; The resource-based view of strategic HRM 39;
Strategic fit 41; Perspectives on strategic HRM 41; HR strategies 47;
Critical evaluation of the concept of strategic HRM 50; Key learning
points 52; Questions 54; References 54
3. HR Policies and Procedures 57
Introduction 57; HR policies 57; HR procedures 66; Key learning points 69;
Questions 70; References 70
4. Human Capital Management 71
Introduction 72; Human capital management defined 72; The concept
of human capital 72; Human capital measurement 74; Human capital
reporting 80; Key learning points 81; Questions 82; References 83
5. Knowledge Management 84
Introduction 84; Knowledge management defined 85; The concept of
knowledge 86; The purpose and significance of knowledge management 87;
Knowledge management strategies 87; Knowledge management systems 88;
Knowledge management issues 90; Key learning points 91; Questions 93;
References 93
vi Contents
6. Corporate Social Responsibility 95
Introduction 95; Strategic CSR defined 96; CSR activities 96; The rationale
for CSR 98; Developing a CSR strategy 99; Key learning points 100;
Questions 100; References 101
7. International HRM 103
Introduction 103; International HRM defined 104; Issues in international
HRM 104; Global HR policies and practices 109; Managing expatriates 109;
Key learning points 114; Questions 116; References 116
Part II Organizations and People 119
8. Organizational Behaviour 121
Introduction 122; Organizational behaviour defined 122; The sources and
applications of organizational behaviour theory 122; How organizations
function 123; Organizational processes 126; Organizational culture 128;
Organization design 129; Characteristics of people 130; Motivation 136;
The psychological contract 144; Organization development 146; Key
learning points 147; Questions 149; References 150
9. Employee Engagement 153
Introduction 153; The meaning of employee engagement 154; Discretionary
behaviour 157; Why engagement is important 158; Drivers of engagement 158;
Enhancing engagement 159; Enhancing organizational engagement 163; Key
learning points 165; Questions 165; References 165
Part III HRM Practice 167
10. Competency-based HRM 169
Introduction 170; Types of competencies 170; Competency frameworks 171;
Applications of competency-based HRM 171; Behavioural competency
modelling 174; Keys to success in using competencies 175; Key learning
points 175; Questions 176; References 177
11. Job and Role Analysis and Design 178
Introduction 179; Job and role analysis 179; Job design 181; Role
development 183; Key learning points 183; Questions 184; References 185
12. People Resourcing 186
Introduction 187; People resourcing strategy 187; Human resource
planning 189; Recruitment and selection 192; Selection methods 195;
Contents vii
Retention planning 198; Talent management 203; Flexibility planning 208;
Absence management 210; Key learning points 212; Questions 213;
References 214
13. Learning and Development 216
Introduction 217; Learning and development defined 217; Learning
and development strategy 219; Learning culture 219; The learning
organization 220; Organizational learning 221; How people learn 223;
Approaches to learning and development 226; Development 228;
Training 230; Blended learning 232; Planning and delivering learning
programmes and events 232; Identifying learning needs 235; Evaluation
of learning 238; Management and leadership development 239; Key
learning points 242; Questions 244; References 244
14. Managing Performance 246
Introduction 247; The meaning of performance 247; Influences on
performance 248; High-performance cultures 250; High-performance
work systems 251; Managing organizational performance 253; Managing
team performance 257; Managing individual performance 259;
Key learning points 262; Questions 263; References 263
15. Reward Management 266
Introduction 267; Reward management defined 267; Aims of reward
management 267; The reward management framework 268; The reward
package 268; Reward systems 268; Strategic reward 271; Total rewards 273;
Financial rewards 275; Non-financial rewards 279; Job evaluation 279;
Market pricing 281; Grade and pay structures 282; Pay progression 287;
Recognition schemes 289; Employee benefits 289; Key learning points 289;
Questions 291; References 291
16. Employee Relations 293
Introduction 294; The employment relationship 294; Underpinning
employment relations philosophies 297; Employee relations policies 298;
Managing employee relations 299; Collective bargaining 301; Collective
agreements 302; Dispute resolution 304; Employee voice 305;
Communications 307; Key learning points 308; Questions 310;
References 310
17. Employee Well-being 312
Introduction 313; Managing the work environment 313; Health and safety
management 315; Key learning points 320; Questions 322; References 322
viii Contents
Part IV People Management Skills 323
18. Managing Change 325
Introduction 325; The change process 325; Change models 326; Resistance
to change 327; Implementing change 329; Guidelines for change
management 329; References 330
19. Leadership Skills 331
What leadership involves 331; Leaders and followers 333; Ulrich’s
leadership brand 333; Leadership styles 334; What makes a good
leader 335; Leadership and emotional intelligence 335; Developing
leadership skills 336; References 338
20. Selection Interviewing Skills 339
The nature of a selection interview 339; The content of an interview 340;
Preparing for the interview 341; Planning the interview 342; Interviewing
techniques – asking questions 343; Key interviewing skills 349; Coming
to a conclusion 351
21. Performance Management Skills 354
Setting objectives 354; Formal review meetings 357; Guidelines on
providing feedback 361
22. Learning and Development Skills 364
Induction training 364; Continuous learning 364; Personal development
planning 365; Coaching 366; Mentoring 367; Job instruction 368
23. Managing Conflict 370
Introduction 370; Managing inter-group conflict 370; Managing conflict
between individuals 371; The role of the third party in managing
conflict 373; Conclusion 374; References 375
24. Handling People Problems 376
Absenteeism 376; Disciplinary issues 378; Negative behaviour 380; Poor
timekeeping 384; Underperformance 385
Appendix: HRM Research Methods 386
Author index 410
Subject index 415
This book is accompanied by additional online material. To access these resources go to
www.koganpage.com/resources and under ‘Academic Resources’ click on either ‘Student
Resources’ or ‘Lecturer Resources’ as appropriate.
1
Introduction
This book describes the essential features of human resource management (HRM). The aim is
to provide practitioners and students with a succinct picture of the key processes and activities
involved in managing people. The practical approaches to HRM described in the book are
backed up with evidence from research. Critical evaluations are included for the following key
HRM theories and concepts:
zzHRM itself;
zzthe role of HR business partner;
zzstrategy;
zzstrategic HRM;
zzthe resource-based view;
zzthe choice between best practice and best fit;
zzbundling;
zzhuman capital measurement;
zzmotivation theory;
zzemotional intelligence;
zzthe flexible firm;
zzthe learning organization;
zzfinancial rewards.
Underpinning philosophy
The philosophy underpinning this book was well-expressed by Schneider (1987). He wrote that:
‘Organizations are the people in them… people make the place.’ His point was that: