i ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE ii ALSO AVAILABLE BY MICHAEL ARMSTRONG Armstrong’s Handbook of Management and Leadership Armstrong’s Essential Human Resource Management Practice Armstrong’s Handbook of Strategic Human Resource Management Armstrong’s Handbook of Performance Management Armstrong’s Handbook of Reward Management Practice How to Manage People How to be an Even Better Manager Human Capital Management (with Angela Baron) The Reward Management Toolkit (with Ann Cummings) Evidence-based Reward Management (with Duncan Brown and Peter Reilly) www.koganpage.com MICHAEL ARMSTRONG 13TH EDITION iii AND STEPHEN TAYLOR ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE iv 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 authors cannot accept respon sibility 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 any of the authors. First edition published in 1977 as A Handbook of Personnel Management Practice by Kogan Page Limited Seventh edition published in 1999 as A Handbook of Human Resource Management Practice Eleventh edition published in 2009 as Armstrong’s Handbook of Human Resource Management Practice Twelfth edition 2012 Thirteenth edition 2014 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 repro duced, stored or transmitted, 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: 2nd Floor, 45 Gee Street 1518 Walnut Street, Suite 1100 4737/23 Ansari Road London EC1V 3RS Philadelphia PA 19102 Daryaganj United Kingdom USA New Delhi 110002 www.koganpage.com India © Michael Armstrong, 1977, 1984, 1988, 1991, 1995, 1996, 1999, 2001, 2003, 2006, 2009, 2012, 2014 The right of Michael Armstrong to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. ISBN 978 0 7494 6964 1 EISBN 978 0 7494 6965 8 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 handbook of human resource management practice / Michael Armstrong. – 13th Edition. pages cm ISBN 9780749469641 – ISBN 9780749469658 (ebk) 1. Personnel management–Handbooks, manuals, etc. I. Title. II. Title: Handbook of human resource management practice. HF5549.17.A76 2013 658.3–dc23 2013038558 Typeset by Graphicraft Limited, Hong Kong Print production managed by Jellyfish Printed and bound in the UK by Ashford Colour press Ltd v CONTENTS IN BRIEf List of figures xxv List of tables xxvii List of exhibits xxix Preface xxxiii Part I The practice of human resource management 1 01 The essence of human resource management (HRM) 3 02 Strategic HRM 15 03 Delivering HRM – systems and roles 35 04 HRM and performance 53 05 Human capital management 67 06 Knowledge management 77 07 Competency-based HRM 85 08 The ethical dimension of HRM 95 09 Corporate social responsibility 105 Part II People and organizations 113 10 Organizational behaviour 115 11 Work, organization and job design 135 12 Organization development 153 Part III Factors affecting employee behaviour 167 13 Motivation 169 14 Commitment 185 15 Employee engagement 193 vi Contents in Brief Part IV People resourcing 207 16 Strategic resourcing 209 17 Workforce planning 215 18 Recruitment and selection 225 19 Resourcing practice 247 20 Talent management 263 Part V Learning and development 281 21 Strategic learning and development 283 22 The process of learning and development 291 23 The practice of learning and development 301 24 Leadership and management development 321 Part VI Performance and reward 331 25 Performance management 333 26 Reward management – strategy and systems 357 27 The practice of reward management 369 28 Managing reward for special groups 391 Part VII Employee relations 403 29 Strategic employee relations 405 30 The employment relationship 413 31 The psychological contract 419 32 The practice of industrial relations 425 33 Employee voice 431 34 Employee communications 437 Contents in Brief vii Part VIII Employee well-being 443 35 The practice of employee well-being 445 36 Health and safety 453 Part IX International HRM 463 37 The international HRM framework 465 38 The practice of international HRM 477 39 Managing expatriates 495 Part X HRM policy and practice 507 40 HR policies 509 41 HR procedures 517 42 HR information systems 525 43 Employment law 531 Part XI HR skills 543 44 Strategic HRM skills 545 45 Business skills 553 46 Problem-solving skills 563 47 Analytical and critical skills 567 48 Research skills 573 49 Statistical skills 583 50 Selection interviewing skills 589 51 Job, role and skills analysis and competency modelling 603 52 Learning and development skills 619 53 Negotiating skills 625 54 Leading and facilitating change 631 viii Contents in Brief 55 Leadership skills 641 56 Influencing skills 651 57 Handling people problems 657 58 Managing conflict 665 59 Political skills 671 Part XII HRM toolkits 675 60 Strategic HRM toolkit 677 61 Human capital management toolkit 685 62 Organization design toolkit 697 63 Organization development toolkit 701 64 Employee engagement toolkit 709 65 Workforce planning toolkit 717 66 Talent management toolkit 729 67 Planning and delivering learning events toolkit 737 68 Performance management toolkit 747 69 Strategic reward toolkit 761 70 Total rewards toolkit 771 71 Job evaluation toolkit 777 72 Grade and pay structure design toolkit 789 73 Attitude surveys toolkit 801 Appendix 1: Example of attitude survey 811 Appendix 2: Survey providers 813 About the authors 815 Author index 817 Subject index 823 000123 LLLPTIHTURMHSITTACTSPHDIHTTPCnnntethrhhhhhhiiiinerearRRRRtttsssmeorrisrrreeeeaeeedtttltsfaOeMdM ooo iitrapsesa pcnrHHooorcvteeddde tcreervoaeoghafff l retpeuuucscRRs dstanlaitfigfite ooh tri Nccccsul te tace noixoSgii ttutidiesfevfiIrevbofintiiinfcuhHyusgeraxooeoe npn alnto igcsniH irscyexH nnnntlbeRoectTseTep utcsu xedos g iR-ufseH thhRM–aat2i amb niirss 1 Mytbto2il13eRMaoet xEt h i 0 2onhS66x5rob sox efM 5aeHxu expna v of31ddt 3hv xstNi 6eHr89r Rhie o i61i–iugtavsxluef5hMRi ii m vscomceset Me hTtwf oyHaa oriesfsyc n rn 2tRoctc Hir eS2mog freoaMr e iRnStnmeonosecH cModasgfeseluoe ipRp 1 c hlcraut 8 tMco Hu n6reon3c d mR4fmc8e eSM2r aapHmo0ntn lRaaoe g1Mrfnse 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The role and organization of the HR function 38 Evaluating the HR function 41 The roles of HR professionals 42 Carrying out the role of the HR professional 46 The HR role of line managers 49 x Contents 04 HRM and performance 53 Introduction 54 The impact of HR 54 How HRM makes an impact 54 Developing a high-performance culture 58 High-performance work systems 58 Performance management 62 The contribution of HR 62 05 Human capital management 67 Introduction 68 The nature of human capital management 68 The concept of human capital 68 The constituents of human capital 69 Approaches to people management raised by human capital theory 70 Human capital measurement 70 Human capital reporting 73 Introducing HCM 74 06 Knowledge management 77 Introduction 78 The concept of knowledge 78 Knowledge management defined 79 Knowledge management strategies 79 Knowledge management issues 80 The contribution of HR to knowledge management 81 07 Competency-based HRM 85 Introduction 86 Competency defined 86 Competency frameworks 89 Using competencies 89 Applications of competency-based HRM 90 Developing a competency framework 91 Competencies and emotional intelligence 93 08 The ethical dimension of HRM 95 Introduction 96 The meaning and concerns of ethics 96 The nature of ethical decisions and judgements 96 Ethical frameworks 96 Equity theory 97 Justice 97 HRM ethical guidelines 98
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