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17 12TH EDITION ARMSTRONG'S HANDBOOK v * , * . : KoganPage Michael Armstrong

12TH EDITION ARMSTRONG'S HANDBOOK - Willkommen · 12TH EDITION ARMSTRONG'S HANDBOOK v * •,*.: ... 08 Competency-based HRM 89 ... The strategic HRM approach to resourcing 204

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17

12TH EDITION

ARMSTRONG'SHANDBOOK

v *

• , * . :

KoganPage Michael Armstrong

CONTENTS

Supporting resources for instructors and students xxvList of Figures xxviiList of Tables xxixList of Exhibits xxxiPreface xxxv

PART I The practice of human resource management 1

01 The concept of human resource management 3

Introduction 4HRM overview 4The philosophy of human resource management 6Underpinning theories of HRM 6Reservations about the original concept of HRM 7HRM today 8

02 Strategic HRM 13

Introduction 14The conceptual basis of strategic HRM 14The nature of strategic HRM 16AimsofSHRM 16Critical evaluation of the concept of SHRM 17The resource-based view of SHRM 18Strategic fit 20Perspectives on SHRM 20HR strategies 23

03 Delivering HRAA 31

Introduction 32HR architecture 32The HR system 32The HR delivery model 34The role and organization of the HR function 34Case studies on the organization of the HR function 37The roles of HR professionals 38The HR role of line managers 44

Contents

04 HRM and performance 49

Introduction 49The impact of HR 50How HRM makes an impact 50Developing a high-performance culture 53High-performance work systems 54Performance management 57The contribution of HR 57

05 International HRM 6i

Introduction 61International HRM defined 61Issues in international HRM 62Global HR policies and practices 64Managing expatriates 65Case studies 68

06 Human capital management 71

Introduction 72The nature of human capital management 72The concept of human capital 72The constituents of human capital 73Approaches to people management raised by human capital theory 74Human capital measurement 74Human capital reporting 76Introducing HCM 78HCM case studies on approaches to measurement 78

07 Knowledge management 81

Introduction 81Knowledge management defined 82The concept of knowledge 82The purpose and significance of knowledge management 83Knowledge management strategies 83Knowledge management issues 84The contribution of HR to knowledge management 85

08 Competency-based HRM 89

Introduction 90Competency defined 90Competency frameworks 90Using competencies 94Applications of competency-based HRM 94Developing a competency framework 95Competencies and emotional intelligence 96

Contents

09 The ethical dimension of HRM 99

Introduction 100The meaning and nature of ethics 100The nature of ethical decisions and judgements 100Ethical frameworks 100Equity theory 101Justice 101Ethical HRM 102HRM ethical guidelines 103Ethical dilemmas 105

10 Corporate social responsibility 109

Introduction 109Corporate social responsibility defined 110Strategic CSR defined 110CSR activities 110The rationale for CSR 111The opposing view 112Benefits of CSR 112The basis for developing a CSR strategy 113

PART iB People and organizations 117

11 Organizational behaviour 119

Introduction 120Organizational behaviour defined 120The sources and applications of organization behaviour theory 120How organizations function 121Organizational culture defined 122Organizational climate 127Organizational processes 127Characteristics of people 129Implications for HR specialists 132

12 Work, organization and job design 137

Introduction 138Work design 138Case studies 144Organization design 145Job design 149Role development 152

Contents

13 Organization development 155Introduction 156Organization development defined 156The nature of organization development 156The story of organization development 157Organization development strategy 160Organizational diagnosis 161Organization development programmes 163

14 Employee engagement 167Introduction 167The meaning of employee engagement 168The theory of engagement 169Drivers of employee engagement 171Outcomes of engagement 171Enhancing overall employee engagement 172Enhancing job engagement 172Enhancing organizational engagement 174Measuring engagement 175Case study 175

15 Motivation I8i

Introduction 181The meaning of motivation 182Types of motivation 182The process of motivation 182Motivation theories 182Motivation and money 188Motivation strategies 188

16 Commitment 193Introduction 193The meaning of organizational commitment 194The importance of commitment 194Commitment and engagement 195Critical evaluation of the concept of commitment 195Factors affecting commitment 196Developing a commitment strategy 197

Contents

PART ill People resourcing 201

17 Strategic resourcing 203

Introduction 204The objective of strategic resourcing 204The strategic HRM approach to resourcing 204Strategic fit in resourcing 205Bundling resourcing strategies and activities 205The components of strategic employee resourcing 205Case study 206

18 Workforce planning 209

Introduction 209Workforce planning defined 210Incidence of workforce planning 210The link between workforce and business planning 210The rationale for workforce planning 211Workforce planning issues 211Approaches to workforce planning 211Case studies 215

19 Recruitment and selection 219

Introduction 220The recruitment and selection process 220Defining requirements 220Attracting candidates 221Dealing with applications 227Interviewing 229Selection testing 231Assessment centres 233Provisional offers and obtaining references 234Choice of selection methods 234Checking applications 235Offering employment 235Following up 236Dealing with recruitment problems 236Case studies 236

20 Resourcing practice 239

Introduction 239Employee value proposition 239Employer brand 240Case study 241Employee turnover 241Retention planning 244

Contents

Absence management 246Case studies 248Induction 249Release from the organization 250

21 Talent management 255

Introduction 255Talent management defined 256The process of talent management 258Developing a talent management strategy 260What is happening in talent management 260Management succession planning 261Career management 262Case studies 267

PART iv Learning and development 271

22 Strategic learning and development 273

Introduction 274Learning and development defined 274Strategic L&D defined 274Aims of strategic L&D 274Learning and development philosophy 275The business case for L&D 276Learning and development strategies 276

23 The process of learning and development 279

Introduction 280How people learn 280The implications of learning theory and concepts 282Organizational learning 284The notion of the learning organization 285Self-directed learning 287

24 The practice of learning and development 289

Introduction 290Identifying learning needs 290Approaches to learning and development 293Development 295Training 296Planning and delivering learning events 299Blended learning 299Evaluation of learning 299Responsibility for the implementation of learning 302Case studies 303

Contents

25 Leadership and management development 309

Introduction 310Leadership and management development defined 310The nature of leadership and management 310Leadership and management development compared 311Leadership development 312Case studies and examples 313Management development 314Criteria for leadership and management development 316

w Performance and reward 319

Performance and reward basics 321

Introduction 321The meaning of performance 322The meaning of reward 322Performance management 322Reward management 324

The practice of performance management 327

Introduction 328Managing organizational performance 328Managing team performance 331Managing individual performance 331Line managers and performance management 342Performance management as a rewarding process 342360-degree feedback 342Case studies 343

Strategic reward 349

Introduction 349Strategic reward defined 350The characteristics of strategic reward 350Critical evaluation of the concept of strategic reward 350Reward strategy 351Reward philosophy 353Formulating reward strategy 356Implementing reward strategy 356Case studies 358

The practice of reward management 363

Introduction 364Reward management defined 364Aims of reward management 364

Contents

The reward system 364Total rewards 365Financial rewards 368Non-financial rewards 370Pay determination 371Market pricing 371Job evaluation 372Base pay management 373Contingent pay 377Recognition schemes 379Employee benefits 380Evaluating reward 380Administering reward management 382Case studies 385

PART vi Employee relations 391

30 Strategic employee relations 393

Introduction 393The process of employee relations 394The basis of employee relations 394Employee relations policies 394Employee relations strategies 395Employee relations climate 396Managing with unions 397Managing without unions 398Implementing employee relations strategy 398

31 The employment relationship 401

Introduction 401The nature of the employment relationship 401The basis of the employment relationship 402Labour process theory and the employment relationship 403Employment relationship contracts 403Managing the employment relationship 403High-trust organizations 404

32 The psychological contract 407

Introduction 407The psychological contract defined 407The significance of the psychological contract 408The psychological contract and the employment relationship 408How psychological contracts develop 409The problem with psychological contracts 409Developing and maintaining a positive psychological contract 409

Contents

33 The practice of industrial relations 413

Introduction 413Trade union membership 414Union recognition 414Collective bargaining 414Collective agreements 415Informal employee relations processes 417Case study 417

34 Employee voice 419

Introduction 419The meaning of employee voice 419The elements of employee voice 420Categorization of employee voice 420Expression of employee voice 421Levels of employee voice 421Stages of employee voice 421Effectiveness of employee voice 422Planning for voice 422Case studies 423

35 Employee communications 425

Introduction 425The importance of employee communications 425What should be communicated 426Approach to communication 426Communication methods 426Employee communication strategy 427

PART V I I Employee wellbeing 429

36 The practice of employee wellbeing 431

Introduction 431Reasons for concern 432The work environment 432Managerial behaviour 432Work-life balance 432Managing stress 433Sexual harassment 433Bullying 434Services for individuals 435Case study 435Group employee services 436

Contents

37 Health and safety 439

Introduction 440Managing health and safety at work 440Health and safety policies 440Conducting risk assessments 441Health and safety audits 443Health and safety inspections 444Accident prevention 444Occupational health programmes 445Measuring health and safety performance 445Communicating the need for better health and safety practices 445Health and safety training 446Organizing health and safety 446

P&RT ¥BB8 HR policies, procedures and systems 449

38 HR policies 451

Introduction 451Why have HR policies? 451Overall HR policy 452Specific HR policies 452Formulating HR policies/457Implementing HR policies 457

39 HR procedures 459

What are HR procedures? 459Capability procedure 460Disciplinary procedure 461Grievance procedure 462Redundancy procedure 463

40 HR information systems 467

Introduction 467Reasons for introducing an HRIS 468The functions of an HRIS 468Features of an HRIS 468Introducing an HRIS 469e-HRM achievements 470Case studies 471

Contents

PART IX HR Skills 473

41 Strategic HRM skills 475

Introduction 475The strategic role of the HR professional 475The strategic business partner model 476The strategic role of HR directors 477The strategic role of heads of HR functions 477The strategic role of HR business partners 478The strategic contribution of HR advisers or assistants 478The strategic skills required 478HR strategic skills as defined by the CIPD 478Ten things to do if you want to be strategic 479

42 Business skills 483

Introduction 484Business skills 484Financial skills 484Business models 487

43 Problem-solving skills 493

Introduction 493Problem solving 493Twelve problem-solving steps 494

44 Analytical and critical skills 497

Introduction 497Evidence-based management 497Analytical skills 499Logical reasoning 499Critical thinking 500Critical evaluation 500Developing and justifying original arguments 501

45 Research skills 503

Introduction 504The nature of research 504Planning and conducting research programmes 504Quantitative and qualitative methods of research 506Methods of collecting data 506Processes involved in research 509

Contents

46 Statistical skills 513

Introduction 514Frequency 514Measures of central tendency 514Measures of dispersion 515Correlation 515Regression 515Causality 515Tests of significance 516Testing hypotheses 516

47 Selection interviewing skills 519

Introduction 519Selection interviewing skills 520Preparing for the interview 521Planning the interview 521Questioning techniques 523Coming to a conclusion 528Dos and don'ts of selection interviewing 529

48 Job, role, competency and skills analysis 533

Introduction 534Definitions 534Job analysis 535Job descriptions 537Role analysis and role profiles 538Behavioural competency analysis 539Technical competencies analysis 545Skills analysis 545

49 Learning and development skills 549

Introduction 549Coaching 549Mentoring 550Job instruction 551

50 Negotiating skills 555

Introduction 555The process of negotiation 556Stages of negotiation 556Negotiating and bargaining skills 558

Contents

51 Leading and facilitating change 561

Introduction 561The role of HR in leading and facilitating change 561The change process 563Change models 563Resistance to change 565The role of change agents 567

52 Leadership skills 571

Introduction 571The meaning of leadership 571Leadership theories 572What leaders do 572Leadership styles 573Types of leaders 574The qualities of a good leader 576Effective leadership 576

53 Influencing skills 579

Introduction 579Persuading people 579Case presentation 580Making a business case 581Facilitating 582Coordinating discussions 582

54 Handling people problems 585

Introduction 585Disciplinary issues 585Absenteeism 587Handling poor timekeeping 588Handling negative behaviour 588Dealing with under-performance 590

55 Managing conflict 593

Introduction 593Handling inter-group conflict 594Handling interpersonal conflict 594Resolving conflict between team members 595

Contents

56 Political skills 597

Introduction 597Typical political approaches 598Using political means to get things done 598Political sensitivity 598Dangers of politics 599Dealing with organizational politics 599

PART X HRM tOOlkitS 601

57 Strategic HRM 603

Purpose of the toolkit 603The strategic HRM framework 603Strategic HRM activities 604Strategic HRM gap analysis 609

58 Human capital management 611

Purpose of the toolkit 611The human capital management approach 611The process of human capital management 611Reasons for adopting an HCM approach 611Introducing HCM 616

59 Organization design 623

Purpose of the toolkit 623Aims and purpose, of organization 624Activities and structure analysis 625Role analysis 626

60 Organization development 627

Purpose of the toolkit 627

61 Employee engagement 633

Purpose of the toolkit 633The meaning of employee engagement 633Drivers of employee engagement 635Engagement gap analysis 637Diagnosis 638

Contents

62 Workforce planning 641

Purpose of the toolkit 641Factors affecting demand and supply 642Balancing demand and supply 649

63 Talent management 653

Purpose of the toolkit 653Talent management strategy 653Talent management policy 654Talent planning 655Talent audit. 656Resourcing talent 657Succession planning 658Talent development 659Overall analysis 660

64 Planning and delivering learning events 661

Purpose of the toolkit 661Planning learning events 661

65 Performance management 669

Purpose of the toolkit 669Structure of the toolkit 669Analysis and diagnosis 669Design toolkit 674Areas for development 675Analysis of possible objectives and success criteria 676Development of performance management system 677Implementation toolkit 678Pilot testing 678Performance management operations toolkit 680The evaluation toolkit 681

66 Strategic reward 683

Purpose of the toolkit 683The reward strategy development framework 683Analysis of reward strategy and practice 684Developing and implementing reward strategy 687

67 Total rewards 693

Purpose of the toolkit 693Introducing total rewards 693Clarify the concept and objectives of total rewards 694

Contents

Identify total reward elements 696Prioritize 696Implement 698Monitor and evaluate 698

68 Job evaluation 699

Purpose and contents of the toolkit 699The job evaluation review and development sequence 699

69 Grade and pay structure design 7ii

Purpose of the toolkit 711The grade and pay structure design sequence 711Analysis of present arrangements 713Choice of structure 714Definition of guiding principles 716Design options 717Graded pay structure design 718Pay range design 719Career family structure design 721Job family structure design 721Assimilation policy 721Protection policy 721Implementing new grade and pay structures 722

70 Attitude surveys 723

Introduction 723Developing and conducting an attitude survey 723Post-survey activities 731

Subject Index 733Author Index 749