Table Of Content

HRM_A01.qxd 10/22/04 2:02 PM Page i HUMAN RESOURCE MANAGEMENT Visit the Human Resource Management, sixth edition Companion Website at www.pearsoned.co.uk/torrington to find valuable student learning material including: n Learning objectives for each chapter n Over 250 multiple choice questions to help test your learning n FT articles with exercises and activities n Three extra chapters on organisational processes and structures n Links to relevant sites on the web n A glossary of key concepts HRM_A01.qxd 10/22/04 2:02 PM Page ii We work with leading authors to develop the strongest educational materials in business, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high quality print and electronic publications which help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing please visit us on the World Wide Web at: www.pearsoned.co.uk HRM_A01.qxd 10/22/04 2:02 PM Page iii sixth edition HUMAN RESOURCE MANAGEMENT Derek Torrington Laura Hall Stephen Taylor HRM_A01.qxd 10/22/04 2:02 PM Page iv Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published in Great Britain under the Prentice Hall Europe imprint in 1987 Second edition published 1991 Third edition published 1995 Fourth edition published 1998 Fifth edition published 2002 Sixth edition published 2005 © Prentice Hall Europe 1987, 1991, 1995, 1998 © Pearson Education Limited 2002, 2005 The rights of Derek Torrington, Laura Hall and Stephen Taylor to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP. ISBN: 0 273 68713 1 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress 10 9 8 7 6 5 4 3 2 1 08 07 06 05 Typeset in 10/12.5pt Sabon by 35 Printed and Bound by Mateu Cromo Artes Graficas, Spain The publisher’s policy is to use paper manufactured from sustainable forests. HRM_A01.qxd 10/22/04 2:02 PM Page v Brief contents Preface xiii Publisher’s acknowledgements xvi Guided tour xviii Part I Introduction 1 1 The nature of human resource management 3 2 Strategic human resource management 27 3 Planning: jobs and people 48 Part I Focus on skills 68 Part II Resourcing 81 4 Strategic aspects of resourcing 83 5 Contracts, contractors and consultants 99 6 Recruitment 120 7 Selection methods and decisions 140 8 Staff retention 163 9 Ending the contract 180 Part II Focus on skills 201 Part III Performance 221 10 Strategic aspects of performance 223 11 Organisational performance: knowledge and learning 239 12 Individual performance management 258 13 Team performance 278 14 Leadership and motivation 299 15 Managing absence and attendance 317 Part III Focus on skills 334 Part IV Development 353 16 Strategic aspects of development 355 17 Context, competence and competencies 368 v HRM_A01.qxd 10/22/04 2:02 PM Page vi Brief contents 18 Learning and development 384 19 Career development 406 Part IV Focus on skills 428 Part V Employee relations 449 20 Strategic aspects of employee relations 451 21 Recognition and consultation 470 22 Health, safety and welfare 488 23 Equality: the legal framework 506 24 Equal opportunities and diversity 528 25 Grievance and discipline 553 Part V Focus on skills 573 Part VI Pay 591 26 Strategic aspects of payment 593 27 Job evaluation 612 28 Incentives 630 29 Pensions and benefits 650 Part VI Focus on skills 668 Part VII Cross-functional issues 691 30 The international dimension 693 31 Ethics and corporate social responsibility 715 32 Work-life balance 735 33 Measuring HR: effectiveness and efficiency 753 Part VII Focus on skills 769 Glossary 784 Index 791 vi HRM_A01.qxd 10/22/04 2:02 PM Page vii Contents Preface xiii 3 Planning: jobs and people 48 Publisher’s acknowledgements xvi The contribution and feasibility of Guided tour xviii HR planning 49 The scope of human resource planning 51 Part I Introduction Analysing the environment 52 Forecasting future human resource 1 The nature of human resource needs 54 management 3 Analysing the current situation and Human resource management for the projecting forward 57 twenty-first century 4 Reconciliation, decisions and plans 63 Businesses, organisations and human Summary propositions 65 resource management 5 General discussion topics 66 Defining human resource Further reading 66 management 6 References 66 The evolution of personnel and HR management 11 Part I Focus on skills 68 A philosophy of human resource Interactive skill 1: Face-to-face skills 68 management 13 Summary propositions 76 Debates in HRM 15 General discussion topics 76 Summary propositions 23 Further reading 76 General discussion topics 24 Web links 76 Further reading 24 References 77 References 24 Review of Part I 77 Part I case study problem 78 2 Strategic human resource management 27 Part I examination questions 79 Strategic human resource management and human resource strategy 28 Part II Resourcing The link between business and HR strategy 29 4 Strategic aspects of resourcing 83 Theoretical perspectives of strategic human resource management 32 Responding to labour market trends 84 The role of the HR function in strategy 43 Analysing labour markets 87 Summary propositions 44 Flexible resourcing choices 90 General discussion topics 44 Ready made or home grown? 94 Further reading 44 Summary propositions 96 References 45 General discussion topics 97 vii HRM_A01.qxd 10/22/04 2:02 PM Page viii Contents Further reading 97 Staff retention strategies 170 References 97 Summary propositions 177 General discussion topics 178 5 Contracts, contractors and Further reading 178 consultants 99 References 178 Contracts of employment 100 9 Ending the contract 180 Working patterns 102 Flexible working hours 105 Unfair dismissal 181 Atypical contractual arrangements 107 Written statement of reasons 194 Consultants 112 Constructive dismissal 194 Outsourcing 116 Compensation for dismissal 195 Summary propositions 117 Wrongful dismissal 196 General discussion topics 118 Retirement 197 Further reading 118 Notice 198 References 118 Summary propositions 198 General discussion topics 199 6 Recruitment 120 Further reading 199 Determining the vacancy 121 References 200 Internal recruitment 124 Legal cases 200 Methods of recruitment 125 Part II Focus on skills 201 The recruitment methods compared 126 Recruitment advertising 127 Interactive skill 2: Selection interviewing 201 E-recruitment 130 Practical exercise in selection Employer branding 132 interviewing 213 Control and evaluation 133 Summary propositions 214 Correspondence 134 General discussion topics 214 Shortlisting 136 Further reading 214 Summary propositions 137 Web links 215 General discussion topics 137 References 215 Further reading 138 Review of Part II 216 References 138 Part II case study problem 218 Part II examination questions 220 7 Selection methods and decisons 140 Selection as a two-way process 141 Part III Performance Selection criteria and the person specification 142 10 Strategic aspects of performance 223 Choosing selection methods 144 Selection methods 144 A change in perspective: from Final selection decision making 158 employment to performance 224 Validation of selection procedures 159 Influences on our understanding of Summary propositions 160 performance 225 General discussion topics 160 Do people-management processes Further reading 160 contribute to high performance? 227 References 161 How do HR policies and practices affect performance? 229 8 Staff retention 163 Major performance initiatives 232 Turnover rates and trends 164 Things that go wrong 233 The impact of staff turnover 166 Getting it right 235 Turnover analysis and costing 167 Summary propositions 235 viii HRM_A01.qxd 10/22/04 2:02 PM Page ix Contents General discussion topics 236 Further reading 314 Further reading 236 References 315 References 236 15 Managing absence and 11 Organisational performance: attendance 317 knowledge and learning 239 The national context 318 Organisational performance ‘initiatives’ 240 The organisational context 319 Learning organisations 241 Process and causes of absence 320 Knowledge management 249 Managing for attendance 322 Managing knowledge 250 Summary propositions 331 Summary propositions 255 General discussion topics 332 General discussion topics 255 Further reading 332 Further reading 255 References 332 References 256 Part III Focus on skills 334 12 Individual performance Interactive skill 3: Appraisal interviewing 334 management 258 The appraisal interview 335 Performance management and Contrasting approaches to appraisal 337 performance appraisal 259 Summary propositions 346 Stages in a performance management General discussion topics 347 system 263 Further reading 347 360-degree feedback 271 Web links 347 Summary propositions 275 References 348 General discussion topics 275 Review of Part III 348 Further reading 275 Part III case study problem: Bakersfield References 275 University 350 Part III examination questions 352 13 Team performance 278 Purpose, nature and impact of Part IV Development teamwork 279 Broad team types 283 16 Strategic aspects of development 355 Team effectiveness 290 Summary propositions 295 The national picture 357 General discussion topics 296 Organisational strategy and HR Further reading 296 development strategy 359 References 296 The external labour market and HR strategic integration 361 14 Leadership and m otivation 299 Training and development roles 363 Leadership and management 300 Summary propositions 365 What are the traits of leaders and General discussion topics 366 effective leaders? 301 Further reading 366 What is the ‘best way to lead’? References 366 Leadership styles and behaviours 303 17 Context, competence and Do leaders need different styles for competencies 368 different situations? 305 Do we really need heroes? 308 National training framework 369 Leadership and motivation 312 The context of the competence Summary propositions 314 movement 370 General discussion topics 314 Competences and NVQs 372 ix HRM_A01.qxd 10/22/04 2:02 PM Page x Contents Behavioural competencies 377 Individual employee involvement 462 Summary propositions 381 International perspectives 465 General discussion topics 381 Summary propositions 466 Further reading 381 General discussion topics 467 References 382 Further reading 467 References 468 18 Learning and development 384 The nature of learning 385 21 Recognition and consultation 470 Practical characteristics of learning and Defining recognition 471 development 386 The cases for and against union Methods of learning and development 392 recognition 472 Evaluation of training and development 401 Forms of trade union recognition 474 Summary propositions 403 Derecognition 477 General discussion topics 403 Trade union recognition law 477 Further reading 403 Collective consultation 479 References 404 Consultation in practice 482 19 Career development 406 HR roles in recognition and consultation 484 Summary propositions 485 How and why are careers changing? 407 General discussion topics 486 Definitions and importance of career Further reading 486 development 410 References 486 Understanding careers 411 Individual career management 416 22 Health, safety and welfare 488 Organisational support for career Definitions of health, safety and welfare 489 development 419 HRM and health, safety and welfare 489 Summary propositions 424 Health and safety law 491 General discussion topics 425 Managing stress and emotional welfare 497 Further reading 425 Managing physical welfare 501 References 425 Occupational health departments 503 Part IV Focus on skills 428 Summary propositions 504 General discussion topics 504 Interactive skill 4: Teaching and Further reading 504 presentation 428 References 505 Summary propositions 442 Legal cases 505 General discussion topics 442 Further reading 443 23 Equality: the legal framework 506 Web links 443 Discrimination on grounds of sex or References 443 marital status 508 Review of Part IV 444 Race discrimination 514 Part IV case study problem 445 Disability discrimination 515 Part IV examination questions 447 Discrimination on grounds of sexual orientation 519 Part V Employee relations Discrimination on grounds of religion or belief 520 20 Strategic aspects of employee Trade union discrimination 521 relations 451 Part-time workers 522 Key trends in employee relations 452 Fixed-term workers 523 The study of employee relations 458 Ex-offenders 524 Collective employee involvement 459 Age discrimination law 524 x

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Human Resource Management PDF

832 Pages·2005·14.751 MB·English
by  Torrington, Derek, Laura Hall, Stephen Taylor
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HRM_A01.qxd 10/22/04 2:02 PM Page i HUMAN RESOURCE MANAGEMENT Visit the Human Resource Management, sixth edition Companion Website at www.pearsoned.co.uk/torrington to find valuable student learning material including: n Learning objectives for each chapter n Over 250 multiple choice questions to help test your learning n FT articles with exercises and activities n Three extra chapters on organisational processes and structures n Links to relevant sites on the web n A glossary of key concepts HRM_A01.qxd 10/22/04 2:02 PM Page ii We work with leading authors to develop the strongest educational materials in business, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high quality print and electronic publications which help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing please visit us on the World Wide Web at: www.pearsoned.co.uk HRM_A01.qxd 10/22/04 2:02 PM Page iii sixth edition HUMAN RESOURCE MANAGEMENT Derek Torrington Laura Hall Stephen Taylor HRM_A01.qxd 10/22/04 2:02 PM Page iv Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published in Great Britain under the Prentice Hall Europe imprint in 1987 Second edition published 1991 Third edition published 1995 Fourth edition published 1998 Fifth edition published 2002 Sixth edition published 2005 © Prentice Hall Europe 1987, 1991, 1995, 1998 © Pearson Education Limited 2002, 2005 The rights of Derek Torrington, Laura Hall and Stephen Taylor to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP. ISBN: 0 273 68713 1 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress 10 9 8 7 6 5 4 3 2 1 08 07 06 05 Typeset in 10/12.5pt Sabon by 35 Printed and Bound by Mateu Cromo Artes Graficas, Spain The publisher’s policy is to use paper manufactured from sustainable forests. HRM_A01.qxd 10/22/04 2:02 PM Page v Brief contents Preface xiii Publisher’s acknowledgements xvi Guided tour xviii Part I Introduction 1 1 The nature of human resource management 3 2 Strategic human resource management 27 3 Planning: jobs and people 48 Part I Focus on skills 68 Part II Resourcing 81 4 Strategic aspects of resourcing 83 5 Contracts, contractors and consultants 99 6 Recruitment 120 7 Selection methods and decisions 140 8 Staff retention 163 9 Ending the contract 180 Part II Focus on skills 201 Part III Performance 221 10 Strategic aspects of performance 223 11 Organisational performance: knowledge and learning 239 12 Individual performance management 258 13 Team performance 278 14 Leadership and motivation 299 15 Managing absence and attendance 317 Part III Focus on skills 334 Part IV Development 353 16 Strategic aspects of development 355 17 Context, competence and competencies 368 v HRM_A01.qxd 10/22/04 2:02 PM Page vi Brief contents 18 Learning and development 384 19 Career development 406 Part IV Focus on skills 428 Part V Employee relations 449 20 Strategic aspects of employee relations 451 21 Recognition and consultation 470 22 Health, safety and welfare 488 23 Equality: the legal framework 506 24 Equal opportunities and diversity 528 25 Grievance and discipline 553 Part V Focus on skills 573 Part VI Pay 591 26 Strategic aspects of payment 593 27 Job evaluation 612 28 Incentives 630 29 Pensions and benefits 650 Part VI Focus on skills 668 Part VII Cross-functional issues 691 30 The international dimension 693 31 Ethics and corporate social responsibility 715 32 Work-life balance 735 33 Measuring HR: effectiveness and efficiency 753 Part VII Focus on skills 769 Glossary 784 Index 791 vi HRM_A01.qxd 10/22/04 2:02 PM Page vii Contents Preface xiii 3 Planning: jobs and people 48 Publisher’s acknowledgements xvi The contribution and feasibility of Guided tour xviii HR planning 49 The scope of human resource planning 51 Part I Introduction Analysing the environment 52 Forecasting future human resource 1 The nature of human resource needs 54 management 3 Analysing the current situation and Human resource management for the projecting forward 57 twenty-first century 4 Reconciliation, decisions and plans 63 Businesses, organisations and human Summary propositions 65 resource management 5 General discussion topics 66 Defining human resource Further reading 66 management 6 References 66 The evolution of personnel and HR management 11 Part I Focus on skills 68 A philosophy of human resource Interactive skill 1: Face-to-face skills 68 management 13 Summary propositions 76 Debates in HRM 15 General discussion topics 76 Summary propositions 23 Further reading 76 General discussion topics 24 Web links 76 Further reading 24 References 77 References 24 Review of Part I 77 Part I case study problem 78 2 Strategic human resource management 27 Part I examination questions 79 Strategic human resource management and human resource strategy 28 Part II Resourcing The link between business and HR strategy 29 4 Strategic aspects of resourcing 83 Theoretical perspectives of strategic human resource management 32 Responding to labour market trends 84 The role of the HR function in strategy 43 Analysing labour markets 87 Summary propositions 44 Flexible resourcing choices 90 General discussion topics 44 Ready made or home grown? 94 Further reading 44 Summary propositions 96 References 45 General discussion topics 97 vii HRM_A01.qxd 10/22/04 2:02 PM Page viii Contents Further reading 97 Staff retention strategies 170 References 97 Summary propositions 177 General discussion topics 178 5 Contracts, contractors and Further reading 178 consultants 99 References 178 Contracts of employment 100 9 Ending the contract 180 Working patterns 102 Flexible working hours 105 Unfair dismissal 181 Atypical contractual arrangements 107 Written statement of reasons 194 Consultants 112 Constructive dismissal 194 Outsourcing 116 Compensation for dismissal 195 Summary propositions 117 Wrongful dismissal 196 General discussion topics 118 Retirement 197 Further reading 118 Notice 198 References 118 Summary propositions 198 General discussion topics 199 6 Recruitment 120 Further reading 199 Determining the vacancy 121 References 200 Internal recruitment 124 Legal cases 200 Methods of recruitment 125 Part II Focus on skills 201 The recruitment methods compared 126 Recruitment advertising 127 Interactive skill 2: Selection interviewing 201 E-recruitment 130 Practical exercise in selection Employer branding 132 interviewing 213 Control and evaluation 133 Summary propositions 214 Correspondence 134 General discussion topics 214 Shortlisting 136 Further reading 214 Summary propositions 137 Web links 215 General discussion topics 137 References 215 Further reading 138 Review of Part II 216 References 138 Part II case study problem 218 Part II examination questions 220 7 Selection methods and decisons 140 Selection as a two-way process 141 Part III Performance Selection criteria and the person specification 142 10 Strategic aspects of performance 223 Choosing selection methods 144 Selection methods 144 A change in perspective: from Final selection decision making 158 employment to performance 224 Validation of selection procedures 159 Influences on our understanding of Summary propositions 160 performance 225 General discussion topics 160 Do people-management processes Further reading 160 contribute to high performance? 227 References 161 How do HR policies and practices affect performance? 229 8 Staff retention 163 Major performance initiatives 232 Turnover rates and trends 164 Things that go wrong 233 The impact of staff turnover 166 Getting it right 235 Turnover analysis and costing 167 Summary propositions 235 viii HRM_A01.qxd 10/22/04 2:02 PM Page ix Contents General discussion topics 236 Further reading 314 Further reading 236 References 315 References 236 15 Managing absence and 11 Organisational performance: attendance 317 knowledge and learning 239 The national context 318 Organisational performance ‘initiatives’ 240 The organisational context 319 Learning organisations 241 Process and causes of absence 320 Knowledge management 249 Managing for attendance 322 Managing knowledge 250 Summary propositions 331 Summary propositions 255 General discussion topics 332 General discussion topics 255 Further reading 332 Further reading 255 References 332 References 256 Part III Focus on skills 334 12 Individual performance Interactive skill 3: Appraisal interviewing 334 management 258 The appraisal interview 335 Performance management and Contrasting approaches to appraisal 337 performance appraisal 259 Summary propositions 346 Stages in a performance management General discussion topics 347 system 263 Further reading 347 360-degree feedback 271 Web links 347 Summary propositions 275 References 348 General discussion topics 275 Review of Part III 348 Further reading 275 Part III case study problem: Bakersfield References 275 University 350 Part III examination questions 352 13 Team performance 278 Purpose, nature and impact of Part IV Development teamwork 279 Broad team types 283 16 Strategic aspects of development 355 Team effectiveness 290 Summary propositions 295 The national picture 357 General discussion topics 296 Organisational strategy and HR Further reading 296 development strategy 359 References 296 The external labour market and HR strategic integration 361 14 Leadership and m otivation 299 Training and development roles 363 Leadership and management 300 Summary propositions 365 What are the traits of leaders and General discussion topics 366 effective leaders? 301 Further reading 366 What is the ‘best way to lead’? References 366 Leadership styles and behaviours 303 17 Context, competence and Do leaders need different styles for competencies 368 different situations? 305 Do we really need heroes? 308 National training framework 369 Leadership and motivation 312 The context of the competence Summary propositions 314 movement 370 General discussion topics 314 Competences and NVQs 372 ix HRM_A01.qxd 10/22/04 2:02 PM Page x Contents Behavioural competencies 377 Individual employee involvement 462 Summary propositions 381 International perspectives 465 General discussion topics 381 Summary propositions 466 Further reading 381 General discussion topics 467 References 382 Further reading 467 References 468 18 Learning and development 384 The nature of learning 385 21 Recognition and consultation 470 Practical characteristics of learning and Defining recognition 471 development 386 The cases for and against union Methods of learning and development 392 recognition 472 Evaluation of training and development 401 Forms of trade union recognition 474 Summary propositions 403 Derecognition 477 General discussion topics 403 Trade union recognition law 477 Further reading 403 Collective consultation 479 References 404 Consultation in practice 482 19 Career development 406 HR roles in recognition and consultation 484 Summary propositions 485 How and why are careers changing? 407 General discussion topics 486 Definitions and importance of career Further reading 486 development 410 References 486 Understanding careers 411 Individual career management 416 22 Health, safety and welfare 488 Organisational support for career Definitions of health, safety and welfare 489 development 419 HRM and health, safety and welfare 489 Summary propositions 424 Health and safety law 491 General discussion topics 425 Managing stress and emotional welfare 497 Further reading 425 Managing physical welfare 501 References 425 Occupational health departments 503 Part IV Focus on skills 428 Summary propositions 504 General discussion topics 504 Interactive skill 4: Teaching and Further reading 504 presentation 428 References 505 Summary propositions 442 Legal cases 505 General discussion topics 442 Further reading 443 23 Equality: the legal framework 506 Web links 443 Discrimination on grounds of sex or References 443 marital status 508 Review of Part IV 444 Race discrimination 514 Part IV case study problem 445 Disability discrimination 515 Part IV examination questions 447 Discrimination on grounds of sexual orientation 519 Part V Employee relations Discrimination on grounds of religion or belief 520 20 Strategic aspects of employee Trade union discrimination 521 relations 451 Part-time workers 522 Key trends in employee relations 452 Fixed-term workers 523 The study of employee relations 458 Ex-offenders 524 Collective employee involvement 459 Age discrimination law 524 x

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