Armstrong hrmpractice

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Armstrong hrmpractice

  1. 1. 11TH EDITION ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE Michael Armstrong
  2. 2. i ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE
  3. 3. ii
  4. 4. iii ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE 11TH EDITION Michael Armstrong London and Philadelphia
  5. 5. 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 publisher and authors 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 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 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 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: 120 Pentonville Road London N1 9JN United Kingdom www.koganpage.com 525 South 4th Street, #241 Philadelphia PA 19147 USA © Michael Armstrong, 1977, 1984, 1988, 1991, 1995, 1996, 1999, 2001, 2003, 2006, 2009 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 5242 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 handbook of human resource management practice / Michael Armstrong. -- Eleventh ed. p. cm. Rev. ed. of: A handbook of human resource management practice. 10th ed. 2006. Includes bibliographical references and index. ISBN 978-0-7494-5242-1 1. Personnel management --Handbooks, manuals, etc. I. Armstrong, Michael, 1928– Handbook of human resource management practice. II. Title. III. Title: Handbook of human resource management practice. HF5549.17.A76 2009 658.3--dc22 2008053904 Typeset by Saxon Graphics Ltd, Derby Printed and bound in India by Replika Press Pvt Ltd
  6. 6. v Contents in Brief Preface xxv Part I 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Human Resource Management The Practice of Human Resource Management Strategic Human Resource Management HR Strategies Human Capital Management The Role and Organization of the HR Function The Role of the HR Practitioner The Impact of HRM on Performance International HRM Corporate Social Responsibility Human Resource Management Research Methods 1 3 25 47 65 81 104 135 150 165 174 Part II 11. 12. 13. Human Resource Management Processes Competency-based HRM Knowledge Management High-performance Work Systems 199 201 218 230 Part III 14. 15. 16. Work and Employment Work The Employment Relationship The Psychological Contract 249 251 260 276 Part IV 17. 18. Organizational Behaviour The Essence of Organizational Behaviour Characteristics of People 289 291 299
  7. 7. vi Brief Contents 19. 20. 21. 22. Motivation Engagement and Commitment How Organizations Function Organizational Culture 316 335 357 383 Part V 23. 24. 25. 26. 27. Organization Design and Development Organization Design Organization Development Change Management Job, Role, Competency and Skills Analysis Job and Role Design and Development 401 403 415 423 443 466 Part VI 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. People Resourcing People Resourcing Strategy Human Resource Planning People Resourcing Practice Recruitment and Selection Selection Interviewing Selection Tests Talent Management Career Management Introduction to the Organization Release from the Organization 477 479 485 495 514 540 567 579 590 602 609 Part VII Performance Management 38. The Process of Performance Management 39. 360-degree Feedback 615 617 643 Part VIII 40. 41. 42. 43. 44. 45. 651 653 663 683 700 713 720 Learning and Development Learning and Development Strategy The Process of Learning and Development Learning and Development Programmes and Events How People Learn Organizational Learning Management Development
  8. 8. Brief Contents Part IX 46. 47. 48. 49. 50. 51. 52. 53. Rewarding People Reward Management Job Evaluation Market Rate Analysis Grade and Pay Structures Contingent Pay Rewarding Special Groups Employee Benefits, Pensions and Allowances Managing Reward Systems 733 735 755 783 795 815 839 849 859 Part X 54. 55. 56. 57. Employee Relations The Employee Relations Framework Employee Relations Processes Employee Voice Employee Communications 875 877 905 935 949 Part XI 58. 59. Health, Safety and Employee Well-being Health and Safety Employee Well-being 957 959 975 Part XII 60. 61. 62. HR Policies, Procedures and Systems HR Policies HR Procedures HR Information Systems 985 987 1000 1010 Appendices A. Example of Employee Engagement and Commitment Survey B. Example of Performance Management Survey C. Example of Reward Survey D. Learning and Development Activities and Methods 1017 1019 1020 1021 1022 Useful Website Addresses Subject Index Author Index 1031 1034 1057 vii
  9. 9. viii This page has been left intentionally blank
  10. 10. ix Contents Supporting resources for instructors and students List of figures List of tables Preface Part I 1. 2. 3. 4. Human Resource Management The Practice of Human Resource Management Introduction 4; Human resource management defined 4; The objectives of HRM 5; Theories of HRM 6; Characteristics of HRM 7; The development of the concept of HRM 13; Reservations about HRM 14; The context of HRM 17; The ethical dimension 19 Strategic Human Resource Management Introduction 26; The conceptual basis of strategic HRM 26; Strategic HRM defined 29; The resource-based view of strategic HRM 30; Strategic fit 32; Perspectives on strategic HRM 32; The best practice approach 33; The best fit approach 35; Bundling 37; The reality of strategic HRM 39; Practical implications of strategic HRM theory 40 HR Strategies Introduction 48; What are HR strategies? 48; General HR strategies 49; Specific HR strategies 52; Criteria for an effective HR strategy 53; How should HR strategies be formulated? 54; Issues in developing HR strategies 55; Implementing HR strategies 59 Human Capital Management Introduction 66; Human capital management defined 66; The concept of human capital 66; The constituents of human capital 68; Human capital measurement 69; Human capital internal reporting 75; Human capital external reporting 76; Introducing HCM 77 xix xxi xxiii xxv 1 3 25 48 65
  11. 11. x Full Contents 5. 6. 7. 8. 9. 10. Part II 11. The Role and Organization of the HR Function Introduction 82; The role of the HR function 82; The organization of the HR function 84; Evaluating the HR function 87; HR shared service centres 92; Outsourcing HR work 93; Offshoring 94; Using management consultants 94; Marketing the HR function 95; HR budgeting 96; The HR role of front line managers 97 The Role of the HR Practitioner Introduction 105; The basic role 105; The business partner role 106; The strategic role of HR specialists 108; The change agent role 111; The internal consultancy role 112; The service delivery role 112; The guardian of values role 113; Models of HR roles 113; Gaining support and commitment 117; Ethical considerations 120; Professionalism in human resource management 121; Ambiguities in the role of HR practitioners 122; Conflict in the HR contribution 124; The qualities required by HR professionals 125; Continuous professional development 129 The Impact of HRM on Performance Introduction 136; The impact made by HRM 136; How HRM strategies make an impact 141; How HRM practices make an impact 144 International HRM Introduction 151; International HRM defined 151; Issues in international HRM 151; Global HR policies and practices 156; Managing expatriates 156 Corporate Social Responsibility Introduction 166; Strategic CSR defined 166; CSR activities 167; The rationale for CSR 168; Developing a CSR strategy 170 Human Resource Management Research Methods Introduction 175; The nature of research 175; Research philosophy 176; Planning and conducting research programmes 178; Literature reviews 180; Quantitative and qualitative methods of research 181; Methods of collecting data 182; Processes involved in research 187; Statistical analysis 191 Human Resource Management Processes Competency-based HRM Introduction 202; Types of competencies 202; Competency frameworks 204; Coverage of competencies 209; Applications of competency-based HRM 210; Developing a competency framework 212; Competencies and emotional intelligence 214 81 104 135 150 165 174 199 201
  12. 12. Full Contents 12. 13. Part III 14. 15. 16. Part IV 17. Knowledge Management 218 Introduction 219; Knowledge management defined 219; The concept of knowledge 220; The purpose and significance of knowledge management 221; Knowledge management strategies 222; Knowledge management systems 223; Knowledge management issues 223; The contribution of HR to knowledge management 225 High-performance Work Systems 230 Introduction 231; High-performance culture 231; High-performance work system defined 232; Characteristics of a high-performance work system 234; Components of an HPWS 235; Impact of highperformance work systems 238; Reservations about the impact of an HPWS 240; Developing a high-performance work system 241 Work and Employment Work Introduction 252; The nature of work 252; Organizational factors affecting work 255; Changes in the pattern of employment 256; The future of work 257 The Employment Relationship Introduction 261; The employment relationship defined 261; The basis of the employment relationship 262; Employment relationship contracts 263; What is happening to the employment relationship 265; Managing the employment relationship 266; Developing a high trust organization 267; Theories explaining the employment relationship 270 The Psychological Contract Introduction 277; The psychological contract defined 277; The psychological contract and the employment relationship 279; The significance of the psychological contract 280; Changes to the psychological contract 282; State of the psychological contract 2004 283; How psychological contracts develop 284; Developing and maintaining a positive psychological contract 285 249 251 260 276 Organizational Behaviour 289 The Essence of Organizational Behaviour 291 Introduction 292; Organizational behaviour defined 292; Characteristics of organizational behaviour 292; Organizational behaviour and the social and behavioural sciences 293; Explaining organizational behaviour 294; Factors affecting organizational behaviour 294; The sources and applications of organization behaviour theory 295; The significance of organizational behaviour theory 296 xi
  13. 13. xii Full Contents 18. 19. 20. 21. 22. Part V 23. 24. 25. Characteristics of People Introduction 300; Individual differences 300; Personal characteristics 302; Types of behaviour 307; Implications for HR specialists 311 Motivation Introduction 317; Motivation defined 317; Types of motivation 318; Motivation theories 319; Motivation and money 329; Motivation strategies 330 Engagement and Commitment Introduction 336; The concepts of engagement and commitment compared 336; Employee engagement 337; Organizational commitment 345; The contribution of HR to developing commitment 351 How Organizations Function Introduction 358; Organization theory 359; Organization structure 365; Types of organization 366; Organizational processes 369 Organizational Culture Introduction 384; Organizational culture defined 384; Organizational climate defined 385; How organizational culture develops 386; The diversity of culture 387; The components of culture 387; Classifying organizational culture 390; Assessing organizational culture 391; Measuring organizational climate 392; Appropriate cultures 394; Supporting and changing cultures 394 Organization Design and Development Organization Design Introduction 404; The process of organizing 404; Aims of organization design 405; Conducting organization reviews 406; Who does the work? 412 Organization Development Introduction 416; Organization development defined 416; Organization development programmes 417; Assumptions and values of organization development 417; Organization development activities 418 Change Management Introduction 424; Types of change 424; The change process 426; Change models 426; Resistance to change 430; Implementing change 432; Guidelines for change management 433; Organizational transformation 434; The role of HR in managing change 437 299 316 335 357 383 401 403 415 423
  14. 14. Full Contents 26. 27. Part VI 28. 29. 30. 31. 32. 33. Job, Role, Competency and Skills Analysis Introduction 444; Definitions 444; Job analysis 446; Job descriptions 449; Role analysis and role profiles 451; Generic role profiles 453; Behavioural competency modelling 454; Analysing technical competencies 461; Skills analysis 461 Job and Role Design and Development Introduction 467; Job design 467; Role development 473 443 People Resourcing People Resourcing Strategy Introduction 480; The objective of people resourcing strategy 480; The strategic HRM approach to resourcing 480; Integrating business and resourcing strategies 481; The components of people resourcing strategy 482; Bundling resourcing strategies and acti