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Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
HUMAN RESOURCE
MANAGEMENT
STRATEGY AND PRACTICE

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
 To all HRM students and professionals who dream of making their workplaces attractive, inspiring,
productive and future-focused.
Alan Nankervis
To my work colleagues and students, for your ongoing interest in and commitment to
creating good employment relations and workplaces.
Marian Baird
To all those who have taken the time to either adopt or read this wonderful edition – thank you for your
ongoing interest to learn more about building and improving an HR culture that will build dynamic and
positive workplaces of the future.
Jane Coffey
To Millennials worldwide – the generation of future leaders on whom our hopes for responsible
organisational stewardship now so much depend.
John Shields

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 EVOLUTION OF STRATEGIC HUMAN RESOURCE MANAGEMENT CHAPTER 1 iii

HUMAN RESOURCE ALAN NANKERVIS

MARIAN BAIRD

MANAGEMENT JANE COFFEY

JOHN SHIELDS

STRATEGY AND PRACTICE

10TH ASIA-PACIFIC EDITION

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 Human Resource Management: Strategy and Practice © 2020 Cengage Learning Australia Pty Limited
10 Edition
Alan Nankervis Copyright Notice
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National Library of Australia Cataloguing-in-Publication Data

Acknowledgements Creator: Nankervis, Alan, author.
Authorised adaptation of Managing Human Resources 18th edition by Title: Human Resource Management: Strategy and Practice / Alan Nankervis,
Scott A. Snell, Shad S. Morris and George W. Bohlander, 2019, Marian Baird, Jane Coffey and John Shields (author).
Cengage Learning Edition: 10th edition
ISBN: 9780170421843 (paperback)
Notes: Includes index.
Other Creators/Contributors: Baird, Marian (author)
Coffey, Jane (author)
Shields, John (author)

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 v

BRIEF CONTENTS

PART 1 HRM IN CONTEXT 1

Chapter 1 Evolution of strategic human resource management 2
Chapter 2 The context of strategic human resource management 47
Chapter 3 Industrial relations: frameworks and practice 78
Chapter 4 Human resource planning in a changing environment 121

PART 2 HRM STRATEGIES, SYSTEMS AND PROCESSES 163

Chapter 5 Work design challenges in a global environment 164
Chapter 6 Talent attraction and selection 199
Chapter 7 Talent retention and development 251
Chapter 8 Management of performance 294
Chapter 9 Strategic reward management 352
Chapter 10 Managing work health and safety 438
Chapter 11 Workplace negotiation processes 480

PART 3 THE EFFECTIVENESS OF SHRM: TOWARDS THE FUTURE 509

Chapter 12 Evaluating SHRM: towards the future 510

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vi

CONTENTS
Guide to the text________________________________________________xii
Guide to the online resources_____________________________________ xvii
Preface and AHRI endorsement____________________________________ xix
About the authors, contributors and acknowledgements________________ xxii

PART 1 HRM IN CONTEXT 1

Chapter 1 Evolution of strategic human resource management_____________ 2
Introduction________________________________________________________________ 3
Development and concepts of SHRM____________________________________________ 6
SHRM, business strategies, perspectives and models_____________________________ 13
Strategic international human resource management_____________________________ 21
Critics of SHRM____________________________________________________________ 24
SHRM: Roles, functions and ethical principles___________________________________ 27
SHRM – our model and this text_______________________________________________ 38
Summary_________________________________________________________ 41
Key terms_________________________________________________________ 41
Emerging issues____________________________________________________ 41
Ethical challenge: Coffee or tea? Nature and nurture: the
birth of Maya Australia_______________________________________________ 42
Case study 1.1: Readify: developing graduate work-readiness skills__________ 44

Chapter 2 The context of strategic human resource management_________ 47

Introduction_______________________________________________________________ 48
The global economic context__________________________________________________ 49
The Australian economy_____________________________________________________ 53
Summary_________________________________________________________ 73
Key terms_________________________________________________________ 73
Emerging issues____________________________________________________ 73
Ethical challenge: Work hours and pay rates_____________________________ 74
Case study 2.1: HR director’s challenge: advancing women
to leadership positions_______________________________________________ 74

Chapter 3 Industrial relations: frameworks and practice__________________ 78

Introduction_______________________________________________________________ 79
Industrial relations and SHRM________________________________________________ 81

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 CONTENTS vii

The industrial relations framework in Australia__________________________________ 82

The state industrial relations systems_________________________________________ 103
Associated legislation______________________________________________________ 104
The Fair Work Act 2009: implications__________________________________________ 106
Summary________________________________________________________ 115
Key terms________________________________________________________ 115
Emerging issues___________________________________________________ 115
Ethical challenge: Business needs vs compliance:
Woolworths’ cleaning contractors____________________________________ 116
Case study 3.1: Working holiday woes__________________________________ 116

Chapter 4 Human resource planning in a changing environment__________ 121

Introduction______________________________________________________________ 122
Human resource planning___________________________________________________ 123
The process of human resource planning______________________________________ 130
Human resource information management systems_____________________________ 144
Formulating human resource plans___________________________________________ 155
Effective human resource planning___________________________________________ 156
Summary________________________________________________________ 157
Key terms________________________________________________________ 157
Emerging issues___________________________________________________ 157
Ethical challenge: Deliveroo wins right not to give riders minimum
wage or holiday pay________________________________________________ 158
Case study 4.1: New Zealand customs service: workforce strategy__________ 159

PART 2 HRM STRATEGIES, SYSTEMS AND PROCESSES 163

Chapter 5 Work design challenges in a global environment_______________ 164
Introduction______________________________________________________________ 165
Job analysis______________________________________________________________ 166
Job design strategies_______________________________________________________ 183
Creativity and innovation____________________________________________________ 190
Diversity management______________________________________________________ 192
Summary________________________________________________________ 193
Key terms________________________________________________________ 194
Emerging issues___________________________________________________ 194
Ethical challenge: Humanising technology or digitising humanity?__________ 195
Case study 5.1: The ties are off_______________________________________ 196
Case study 5.2: TK Ceramics: an Indonesian opportunity__________________ 196

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viii CONTENTS

Chapter 6 Talent attraction and selection_______________________________ 199

Introduction______________________________________________________________ 200
The strategic perspective___________________________________________________ 201
Attracting talent from within_________________________________________________ 208
Attracting talent from outside the organisation__________________________________ 211
The selection process______________________________________________________ 220
Sources of information about job candidates____________________________________ 223
The employment interview__________________________________________________ 229
Employment tests_________________________________________________________ 240
Reaching a selection decision________________________________________________ 243
Summary________________________________________________________ 246
Key terms________________________________________________________ 246
Emerging issues___________________________________________________ 247
Ethical challenge: The Facebook dilemma______________________________ 248
Case study 6.1: Coal India’s recruitment binge___________________________ 249
Case study 6.2: The creative spark____________________________________ 249

Chapter 7 Talent retention and development____________________________ 251

Introduction______________________________________________________________ 252
The challenges of supply and demand_________________________________________ 254
Talent retention___________________________________________________________ 255
Induction and orientation____________________________________________________ 257
Learning and development programs_________________________________________ 262
Developing employees______________________________________________________ 268
Developing leaders________________________________________________________ 272
Career management_______________________________________________________ 279
A strategic perspective to career development__________________________________ 280
Ethics and HRD____________________________________________________________ 286
Summary________________________________________________________ 288
Key terms________________________________________________________ 289
Emerging issues___________________________________________________ 289
Ethical challenge: Is the concept of ‘best fit’ in employee selection
discriminatory?___________________________________________________ 290
Case study 7.1: The emerging talent crisis in India and China_______________ 291
Case study 7.2: Singapore’s got talent_________________________________ 292

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 CONTENTS ix

Chapter 8 Management of performance________________________________ 294

Introduction______________________________________________________________ 295
Debates and trends in the management of employee performance__________________ 296
Performance management as a continuous cycle________________________________ 300
Performance measurement methods_________________________________________ 304
Why performance management systems often fail_______________________________ 311
The end of PMS – or a new beginning?_________________________________________ 316
Requirements for system effectiveness________________________________________ 320
Performance feedback and feedforward_______________________________________ 326
Processes and practices for improving underperformance________________________ 330
Disciplinary action_________________________________________________________ 337
Summary________________________________________________________ 343
Key terms________________________________________________________ 343
Emerging issues___________________________________________________ 344
Ethical challenge: Losing our way: how the cult of the KPI has
damaged our moral compass________________________________________ 345
Case study 8.1: Google’s ‘OKR’ system_________________________________ 347
Case study 8.2: Performance management resister gets job back__________ 347

Chapter 9 Strategic reward management______________________________ 352

Introduction______________________________________________________________ 353
Total reward management__________________________________________________ 354
Managing base pay_________________________________________________________ 367
Employee benefit plans_____________________________________________________ 382
Performance-based rewards________________________________________________ 390
Rewarding executives______________________________________________________ 410
Managing expatriate pay____________________________________________________ 417
Summary________________________________________________________ 424
Key terms________________________________________________________ 425
Emerging issues___________________________________________________ 425
Ethical challenge: Putting the brakes on bosses’ bonus blow-outs__________ 427
Case study 9.1: Childcare equal pay claim rejected_______________________ 429
Case study 9.2: Bankwest Heroes’: an enterprise-wide recognition
program for a post-GFC world_______________________________________ 431

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x CONTENTS

Chapter 10 Managing work health and safety___________________________ 438

Introduction______________________________________________________________ 439
The extent of the problem___________________________________________________ 440
Perspectives of WHS in Australia_____________________________________________ 442
The harmonisation of WHS law in Australia_____________________________________ 450
Creating a safe, healthy and ethical work environment____________________________ 458
Managing WHS programs___________________________________________________ 471
Summary________________________________________________________ 475
Key terms________________________________________________________ 475
Emerging issues___________________________________________________ 475
Ethical challenge: Foreseeable risks ignored before mine fire_____________ 476
Case study 10.1: Drug and alcohol testing must be reasonable_____________ 477

Chapter 11 Workplace negotiation processes____________________________ 480

Introduction______________________________________________________________ 481
The nature of conflict_______________________________________________________ 482
Positive and negative aspects of workplace conflict______________________________ 483
Common alternative dispute resolution processes_______________________________ 486
Conflict management styles_________________________________________________ 496
Cross-cultural awareness in conflict management______________________________ 499
Summary________________________________________________________ 503
Key terms________________________________________________________ 503
Emerging issues___________________________________________________ 504
Ethical challenge: Ethical dilemmas in the Sarawak oil
and gas industry___________________________________________________ 505
Case study 11.1: Generation Me: implications for workplace
conflict management_______________________________________________ 506
Case study 11.2: New online tool makes it easier for
small businesses to find dispute resolution services_____________________ 507

PART 3 THE EFFECTIVENESS OF SHRM: TOWARDS THE FUTURE 509

Chapter 12 Evaluating SHRM: towards the future_________________________ 510
Introduction______________________________________________________________ 511
SHRM evaluation: theory and practice_________________________________________ 514
HRM accounting___________________________________________________________ 517

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 CONTENTS xi

Indicators of HRM performance______________________________________________ 518

HR program evaluation_____________________________________________________ 529
Corporate governance and corporate social responsibility________________________ 531
The future of work_________________________________________________________ 533
The future of SHRM________________________________________________________ 538
Summary________________________________________________________ 544
Key terms________________________________________________________ 544
Emerging issues___________________________________________________ 544
Ethical challenge: How chatbots could replace your HR department_________ 545
Case study 12.1: The carers__________________________________________ 546
Glossary_____________________________________________________ 549
Index_______________________________________________________ 560

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xii

Guide to the text

As you read this text you will find a number of features in every
chapter to enhance your study of Human Resource Management (HRM)
and help you understand how the theory is applied in the real world.

CHAPTER OPENING FEATURES

2

1
CHAPTER
Evolution of strategic human
Gain an insight into HRM with resource management
industry quotes at the beginning of There is a global shift towards non-standard, flexible employment models, including agency work (which) is
set to become a permanent feature of the modern workplace.
each chapter. Zhang, M. M., Bartram, T., McNeil, N. and Dowling, P. J. (2015), Towards a research agenda on the
sustainable and socially-responsible management of agency workers through a flexicurity model of HRM.
Journal of Business Ethics, 127(3), p. 514.

We must pursue innovation through technology as the main contributor to our future prosperity and
happiness. The new jobs generated will allow us to compete with the world.
Williamson, R. C., Raghnaill, M. N., Douglas, K. and Sanchez, D. (2015), Technology and
Australia’s future: New technologies, and their role in Australia’s security, cultural,
democratic, social and economic systems. Melbourne: ACOLA.

Identify the key concepts that the

OBJECTIVES
chapter will cover in the learning After reading this chapter, you will be able to:

objectives section at the start of

1 explain the development and 4 appreciate the critiques of SHRM
concepts of strategic human resource 5 describe the principal roles, functions
management (SHRM) and ethical principles of SHRM
each chapter. 16 HRM IN CONTEXT
2 understand the relationship between
business strategies and HRM strategies,
professionals
6 understand the SHRM model and
processes and functions in the context framework used throughout this text.

Consider the scope of emerging

of a dynamic global environment
3 understand the principles behind
international human resource
issues in HRM with a box feature employee benefits. Other HRM specialists will focus on the development of close relationships
management
with senior management in order to effectively contribute to the formulation and revision of

that links to relevant highlighted strategic plans.

Several types
Emerging of linkages between HR and organisational strategies have been identified, as
issues
issues throughout the chapter.
follows.
1 Globalisation 3 Employability
• Accommodative: HR strategies simply follow organisational strategies, accommodating the
2 New technology – the Fourth Industrial 4 SHRM theories and new models
staffing needs of already-chosen business strategies.
Revolution 5 HR ethics
• Interactive: This is a two-way communication process between HRM and corporate
planning in which HRM contributes to, and then reacts to, overall strategies.
• Fully integrated: The HR specialist is intimately involved in the overall strategic process in
both formal and informal interactions – a real reflection of SHRM in practice.31
The ideal linkage is where HR and organisation strategies are fully integrated with each
other, and where the HR specialist has direct reporting and communication relationships with

FEATURES WITHIN CHAPTERS

the highest levels of management in the organisation.
HRM in practice 1.2 illustrates the development of a HRM strategy in association with
the organisational strategy and culture of a New Zealand government health authority. The
engagement of both senior managers and all existing employees were key priorities of the new
HRM strategy.

HRM in practice 1.2

Prognosis positive
The largest employer in the city, the Auckland District Health Board (ADHB), didn’t have a

Examine how theoretical concepts

current HRM strategy when the new Chief HR Officer arrived eighteen months ago. So, she set
out to develop one. She heads a team of 80 HR professionals with a total workforce of more
than 10,000 employees, spread over hospitals and community health care centres. Her first task
are used in practice through the was to gather all the data and information already available and to assess the most important
components, which were then aligned with the newly-developed organisational strategy.

HRM in Practice boxes.

The board agreed with her HRM strategy which was ‘not set in stone, but needed to be
a good, solid pathway that allowed us to keep improving and making changes. A document
that was going to evolve as our skills, context and people evolved’, she explained. The
implementation of the strategy after a year is going well – ‘everything we are seeing and hearing
is supportive that the direction is right, and where we’ve had feedback to keep changing, we’ve
done that’. She has had to prioritise some aspects of the strategy so that employees are not
overwhelmed. The priorities include: accelerating employee capabilities and skills; making
it easier to work; building constructive relationship across the board; and ensuring quality
processes and outcomes.
One of the key imperatives of the new HRM strategy was to ‘capture the hearts and minds
of our people from day one’, and the first step was to modernise the employee orientation
process – ‘Whether you are a cleaner, nurse, brain surgeon or in HR, how you feel about working
here changes how you work here’.

HRM IN PRACTICE Source: Michel, F. (2017), Treatment plan. HRM, http://www.hrmonline.com.au, September, pp. 18–19.

Are you work-ready yet? Ch 1, p. 5 Australian government axes 457

work visa: experts react Ch 2, p. 51
Prognosis positive Ch 1, p. 16
To chip or not to chip? Ch 2, p. 53
Picture perfect Ch 1, p. 20
KCGM ups level of support for new
Professional certification Ch 1, p. 31 parents Ch 2, p. 62

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 GUIDE TO THE TEXT xiii

FEATURES WITHIN CHAPTERS

HRM IN PRACTICE
‘Relentless focus’ leads Westpac to Beware the humble reference check Ch 6, p. 228
hit 50% women in leadership target Ch 2, p. 64
Preparing for the virtual interview Ch 6, p. 235
Job sharing – opportunities and
challenges Ch 2, p. 70 Lorna Jane receptionist job requires
physical measurements Ch 6, p. 239
FWO’s Food Precincts campaign
returns $471,904 in wages owed to Gamified induction Ch 7, p. 261
hospitality workers Ch 3, p. 91 The ‘only at Deloitte’ learning
Characteristics of employment, experience Ch 7, p. 264
Australia, August 2016 Ch 3, p. 93 Simulations in clinical teaching and
Fair Work Act 2009, s. 12 – the learning Ch 7, p. 270
dictionary Ch 3, p. 95 Energy workers get wearables for
Union no show at Commission as training Ch 7, p. 271
another agreement terminated Ch 3, p. 109 Aboriginal and Torres Strait Islander
Wage theft Ch 3, p. 112 mentoring programs Ch 7, p. 276

Key HRP challenges Ch 4, p. 124 The special relationship Ch 7, p. 277

NSW Department of Education: Inside the new talent war Ch 7, p. 284

business priorities = HR plan Ch 4, p. 139 The new work order Ch 7, p. 286
Michell Wool Ch 4, p. 134 Employees don’t want feedback, they
Labour supply analysis for public want attention Ch 8, p. 328
health physicians in Australia Ch 4, p. 140 Salesforce – the best place to work in
Using data across HRM functions Ch 4, p. 148 Australia, 2018 Ch 9, p. 356

OPM-Gate ‘biggest cyber-security Fixing the gender pay gap Ch 9, p. 375

breach in US history’? Ch 4, p. 154 Employee perks that attract the best
What do Australian employers look talent Ch 9, p. 386
for from university graduates? Ch 5, p. 175 Australian Work Health and Safety
Australia’s casualisation crisis Ch 5, p. 185 Strategy 2012–2022 Ch 10, p. 448

How to have great virtual teams Ch 5, p. 188 Injury prevention and management
at Gay’s Construction Ch 10, p. 459
Hilton named one of Australia’s best
companies for which to work Ch 5, p. 190 What does bullying in the workplace
look like? Ch 10, p. 465
Outside the box Ch 6, p. 202
Family matters Ch 10, p. 467
Indian Railways gears up for the
world’s largest recruitment drive Ch 6, p. 213 Preventing body stressing injuries Ch 10, p. 469

Outsourced recruitment: bad apples?Ch 6, p. 215 Mediation for North Sydney Council Ch 11, p. 488

Employee referral programs need to Mediation helps family farm disputes

be supported by employers Ch 6, p. 217  Ch 11, p. 490

Recruiters again urged to use social Core principles in negotiating Ch 11, p. 494
media cautiously Ch 6, p. 219 Cross-cultural disputes: the impact
So, you want to hire a digital native? Ch 6, p. 224 of language Ch 11, p. 502

Playing for keeps Ch 6, p. 224 HR strategy and HR analytics at

Chevron US Ch 12, p. 512
Public servant convicted of fraud for
lying on résumé Ch 6, p. 226 Accounting for HR at GMHBA Ch 12, p. 519

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xiv GUIDE TO THE TEXT 22 HRM IN CONTEXT

(Amazon, Webjet.com, Facebook, Expedia.com, Google, Microsoft, Alibaba) that trade online
throughout the world.
SIHRM now encompasses SHRM in multinationals (i.e. the impact of context and culture
on SHRM); comparative HRM (i.e. comparisons of HRM theories and practices in different
countries or regions); and the management of expatriates in different countries or regions. It
also explores a broad range of employee types – short-term assignments, repatriates (employees

FEATURES WITHIN CHAPTERS returning home from international assignments, especially the diaspora from China, Vietnam
and India), third country nationals (employees from neither the home nor host countries of
operation), locals working for global corporations, and self-initiated employees (people who
choose to work overseas to advance their skills and careers).43

HRM IN PRACTICE
In essence, SIHRM is concerned with the management of global workforces, including
features such as the choice and development of global leaders and global mindsets, global
employees and global HRM systems. Accordingly, SIHRM is now linked with sub-disciplines

Ch 12, p. 540
such as knowledge management, change management, managing joint ventures and
Valuing human capital – BT’s new HRM drivers
multinational work teams, the transfer of management systems, and the management of post-
initiatives Ch 12, p. 522 merger or post-acquisition processes, in regional and global contexts.44
Banking on strategic HR system
While these kinds of jobs and work regimens require some of the same HRM activities
as those in domestic operations, they also present more complex problems, including the
The most effective ways for digitisation Ch 12, p. 541
need for more sophisticated employee skills (e.g. language and cross-cultural); additional
organisations to retain workers Ch 12, p. 526 human resource development and career plans; complicated international remuneration and
performance management schemes; and a broader range of occupational health and safety
issues (e.g. stress, fatigue, terrorism and security threats, deep vein thrombosis) and associated
family issues. International perspective 1.1 presents an apparently counterintuitive approach to
talent management in some global corporations operating in China.

International perspective 1.1

Explore practical applications that Managing talent in cross-border mergers and acquisitions in China:
going global
show how HRM relates to and China is continuing its ‘going global’ process and has occupied the headlines with its prominent
outbound foreign direct investments (FDIs). Since 2009 the cross-border investment deals
informs international practices have grown steadily according to the 2017 World Investment Report, ‘Chinese outward FDI rose
by 44 per cent to $183 billion, driven by a surge of cross-border (mergers and acquisitions –

through the International M&A) purchases by Chinese firms’.45 Despite a reduction in its outbound investment during
the first half of year 2017, it is forecasted that the outstanding cross-border M&A activities will
reach an aggregated volume of $278 billion in 2018, and by 2019 the amount will hit $297.1
Perspective boxes. billion. Obviously, the increasing appetite for international M&As has pushed forward China’s
strategy and outcomes on moving towards a more dynamic, inclusive and sustainable economic
globalisation process.

INTERNATIONAL PERSPECTIVE
Managing talent in cross-border What makes Indian employees stay? Ch 7, p. 257
mergers and acquisitions in China:
going global Ch 1, p. 22 Managing employee performance
across borders Ch 8, p. 322
Fathers and care Ch 2, p. 61
Industry preferences of graduates
Employment relations in China Ch 3, p. 104 changing Ch 9, p. 361
The global context Ch 4, p. 132 Who’s top of the expat salary pack in
Asia? Ch 9, p. 420
Employment opportunities in the
Middle East Ch 4, p. 143 Australian and International
Standards Ch 10, p. 472
260 HRM STRATEGIES, SYSTEMS AND PROCESSES

When diversity wins over inequality:

the experience of the Indian IT Conflict management in China –
work team has an idea of who is joining them. This may also reduce the team’s own sense of
industry Ch 5, p. 192 when avoidance
apprehension is not avoidance
about the new staff member. Ch 11, p. 501
The importance of the manager in the induction process cannot be over-emphasised. Since
A global workplace Ch 6, p. 205 CSR in some Indian companies Ch 12, p. 532
induction practices will have lasting effects on employee job performance, the manager plays a
key role in reducing the ‘first-day jitters’ of employees while channelling their enthusiasm into
productive activities. Managers should consider the orientation of all employees (new and old)
to be one of their primary job responsibilities. It is also important to involve any appropriate
team leaders or supervisors in the process. Essentially, whomever the new employee is reporting
to should be an essential partner in the induction process.

Professional tip 7.2

Gain helpful hints on how to be a Use a checklist
successful human resources To avoid overlooking items that are important to employees, many organisations devise
checklists for use by those responsible for conducting some phase of induction. The use of

practitioner with the Professional a checklist compels the manager and the HR manager to pay more attention to each new
employee at a time when personal attentiveness is critical to building a long-term relationship.
However, as mentioned earlier, it is important that the checklist does not become the only
Tip boxes. element, or the focus, of the induction program. The checklist is a helpful tool to assist in
ensuring that all items are covered and to keep the induction focused.

The key to successful induction is to plan and organise the induction in advance as well as
ensure staff are trained in the importance of staff induction and how to conduct the program.
Those who plan induction programs often expect new employees to immediately familiarise

PROFESSIONAL TIP themselves with all types of detailed and assorted facts about the organisation. However, while
there are many things that a new employee should know, most of them can be learnt over a
period of time and in a series of meetings. It is customary to initially provide information about
Key HRM issues Ch 1, p. 33 Key HR roles and competencies Ch 4, p. 125
matters of immediate concern, and then to ensure that a structured program follows, conducted
over days or weeks.
New employees should have a clear understanding of the job, organisational requirements
Collecting data Ch 2, p. 65 Community meetings and events
and any other important matters. The initial emphasis should be on the one-to-one or teamCh 4, p. 156
relationship necessary to give a new person a sense of belonging. During this initial period,
Understanding the Fair Work Act Key HR roles and competencies Ch 5, p. 166
the new employee is provided with a significant amount of information in order for them to
understand their role and the organisation. Many Australian firms now have this information
2009 Ch 3, p. 107 readily available on their intranet system. Induction sessions should be supplemented with a
Reviewing job descriptions Ch 5, p. 182
kit of materials that new employees can read at their leisure. The induction program does not
have to be based on endless supplies of policies and checklists. It can also be interactive and
exciting, making use of digital technology. For example, Bajaj Finserv, voted as one of the best
companies to work for in India, uses a gaming induction program, based on Formula One
racing, to teach new employees about the organisation.5

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
 GUIDE TO THE TEXT xv

FEATURES WITHIN CHAPTERS

PROFESSIONAL TIP
Key HR roles and competencies Ch 6, p. 202 Key HR roles and competencies Ch 10, p. 442
Is there any hope for the interview? Ch 6, p. 237 Who should carry out drug and
alcohol testing procedures? Ch 10, p. 471
Key HR roles and competencies Ch 7, p. 255
Analysing WHS issues Ch 10, p. 473
Use a checklist Ch 7, p. 260
Key HR roles and competencies Ch 11, p. 481
Needs analysis Ch 7, p. 266
26 HRM IN CONTEXT

Use of management styles Ch 11, p. 498

Key HR roles and competencies Ch 8, p. 295
Ch 12, p. 511
particular, in all three countries, the larger and more international the organisation, the more
Key HR roles and competencies
Questions to consider in disciplinary likely it was to adopt a strategic HRM approach.54
However, there are still constraints to the achievement of SHRM due to such issues as
investigations Ch 8, p. 340 Marketing HR Ch 12, p. 533
contested definitions of HRM strategy, senior and line managers’ lack of understanding of
SHRM, and different applications in large versus small and medium organisations.55

Key HR roles and competencies Ch 9, p. 359 New SHRM approaches

The predicted changes in the nature of future workplaces, jobs and their associated skills and
competencies will also necessarily change HR professional roles and practices in important
ways. The future of work 1.1 provides some insights into the challenges ahead.

The future of work 1.1

The gig economy, virtual workplaces and digital disruption
The emergence of the e-commerce economy based on information technology, and on fluid and
changing notions of work and conditions of employment (especially the emerging ‘gig economy)
provides a significant dilemma for HR strategists. The management of the ‘virtual workplace’

Understand the changing HRM will require far more complex and contingent approaches to the structuring of organisations
and the development of appropriate work cultures than have been used formerly. New

landscape with The Future of Work

applications of technology, such as BYOD (bring your own devices); ‘digital disruptions’ (such
as the challenge to the taxi industry from innovative internet-based services such as Uber);
workplace interactions via social media tools and iPads as integrated work systems, represent

boxes. ‘the blurring of personal and work lives’ and demand new approaches to employment contracts,
job design, office space utilisation, learning and development, and performance recording and
evaluation, to mention just a few areas.56
In response to these challenges, new forms of employee benefits and rewards have begun to
emerge, including variable leave entitlements and greater flexibility in attendance requirements
and work–life balance opportunities. As examples of these new benefits and rewards trends,
pharmaceutical company MDA provides ‘green’ bonuses to employees who choose to use public
transport or ride to work; Ernst & Young offers free personal financial planning services to its
employees; Cotton On allows staff to bring their pets to the office on specific days; Patagonia
encourages its employees to ‘go surfing’ at lunch time; Netflix and Virgin have ‘unlimited
leave’ provisions for some of their staff; and Telstra and GE employees can ‘buy out’ extra leave
weeks.57 HR specialists have a major role to play in ensuring that an organisational culture
conducive to the achievement of overall strategic objectives is developed and maintained.

THE FUTURE OF WORK

Lepak and Snell suggest that the roles of HR professionals in the management of culture

The gig economy, virtual workplaces The new MOOCs: the Netflix way Ch 7, p. 278
change towards the achievement of desirable organisational objectives are broad and all-
inclusive, involving the development of an ‘HR architecture that aligns different employment
and digital disruption Ch 1, p. 26 modes, employment relationships, HR configurations and criteria for competitive advantage’.58
Is this the future of performance
Insecurity vs security Ch 3, p. 85 management? Ch 8, p. 317
Employment projections for future The future of reward management Ch 9, p. 389
Australian industry sectors and jobs Ch 4, p. 137
The future of work and WHS Ch 10, p. 446
A day in the life of 2035 Ch 5, p. 191
Conflict resolution by BOTS: humans
A résumé tracking bot Ch 6, p. 226 no longer needed Ch 11, p. 496
Unilever Ch 6, p. 242 Employers and the gig workforce Ch 12, p. 534

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
 4 HRM IN CONTEXT

xvi GUIDE TO THE TEXT

including major revisions to staffing, performance management, executive pay systems, human
resource development, rewards and career development programs.
Two recent developments are likely to significantly affect labour markets in Australia and
Trans-Pacific
Partnership (TPP2)
the Asia Pacific. First, the revised Trans-Pacific Partnership (TPP2), a grouping of 11 countries
A free trade (Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru,
agreement Singapore and Vietnam – see https://dfat.gov.au/trade/agreements/in-force/cptpp/Pages/
between 11 Pacific
Rim countries, comprehensive-and-progressive-agreement-for-trans-pacific-partnership.aspx) – excluding the
excluding the United States; and second, the formation of the ASEAN Economic Community (AEC), which aims
United States
to facilitate trade and labour mobility across the region. Members of the AEC include 10

ICONS
ASEAN Economic
Community (AEC) countries – Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Lao PDR,
A regional trade Myanmar, Cambodia and Brunei Darussalam – excluding Australia. Both developments pose
grouping of 10
ASEAN countries,
potential challenges and opportunities for HR professionals in local organisations with global
excluding Australia or regional operations.

Emerging issues icons link the Political and demographic factors

content to the emerging issues Political developments, including the awkward and divisive Brexit negotiations between the
United Kingdom and the European Union (EU); the replacement of President Barack Obama

outlined in the chapter opener to Emerging issue 1

with President Donald Trump in the United States; ongoing leadership instability in countries
such as Germany, Australia and the United Kingdom; China’s expansion, and tension on the

highlight topical HRM issues Globalisation Korean peninsula, have also provided both challenges and opportunities for global business and
the management of workforces. Demographic factors such as the ageing workforces of most

throughout each chapter. developed countries (the United States, United Kingdom, Australia, Canada, New Zealand,
Singapore and in Europe), but younger workforces in emerging nations like Indonesia and
India, pose different business and SHRM challenges; as do rising education levels in many
countries and regions, combined with diverse expectations of jobs and workplaces from
different generations.

New technology – the Fourth Industrial Revolution

FEATURES WITHIN CHAPTERS Perhaps the greatest challenge for global business EVOLUTION
and OF STRATEGIC
SHRM HUMAN RESOURCE
is provided
impacts of new technology on all industries, workplaces and jobs in the next decades. The so-
by the MANAGEMENT
predicted CHAPTER 1 41

Fourth Industrial called ‘Fourth Industrial Revolution’ (FIR, or Industry 4.0) is the digital transformation in society
Revolution (FIR, EVOLUTION OF STRATEGIC HUMAN RESOURCE MANAGEMENT CHAPTER 1 41
and business that involves an interface between technologies in the physical, digital and
At the end of each chapter you’ll find several tools to help you to review, practise and extend
or Industry 4.0)
Interface between SUMMARY
biological disciplines. It involves the ‘transformation of systems of production, management
physical, digital and governance’. Emerging technologies,
field ofsuch as artificial intelligence, robotics,MANAGEMENT
machine
1
SHRM is a complex and rapidly changing practice
EVOLUTION inOF
industry.
STRATEGICDespite
HUMAN itsRESOURCE
comparatively recent CHAPTER 1 41

your knowledge of the key learning objectives.

and biological
technologies learning,
origins, andthedrawing
Internet of Things
upon (IOT),and
both overseas autonomous vehicles,
local influences, SHRM 3-Dis aprinting, nanotechnology,
critical factor in the success
SUMMARY
of all organisations.
biotechnology, materials science, energy storage, and quantum computing, represent just the
tip Beginning
of
SHRM this in the and
is atechnology
complex 1940s as aThe
iceberg.
rapidly series
FIRoffield
changing isfunctions,
predicted often
of practice neither
byinsome integrated
observers
industry. Despite toitsnor
be ‘a based
major upon
driver
comparatively solid
of
recent

• Review your understanding of the key

conceptual foundations, modern SHRM andis alocal
dynamic specialisation in the process of refining
origins,
long-term andeconomic
drawing upon both overseas
growth…(and) investment influences,
in the SHRM
skills and isorganisational
a critical factor in the
capacities thatits
success
SUMMARY
philosophies,
of practices and overall contributions to organisational effectiveness. In response to external
all organisations.
allow effective technological development, evaluation, adoption and adaptation will help solve
influences,
Beginning including economic,
in the and
1940s demographic,
as achanging
series offield technological,
functions, often legislative
in neither and social
integrated itsnorchanges, as well
based upon as
solid
chapter topics with the Summary.
SHRM is a complex rapidly of practice industry. Despite comparatively recent
social, economic
significant and environmental
transitions in the nature of challenges,
global jobs leading to a prosperous
and workplaces, and healthy
SHRM requires future’.of
the adoption
2
a
conceptual
origins, and foundations,
drawing uponmodern SHRM and
both overseas is alocal
dynamic specialisation
influences, SHRM is in the process
a critical factor of refining
in the successits
strategic approach
philosophies,
of to the
practices
all organisations. andmanagement of human
overall contributions to resources
organisationalfor organisational
effectiveness. In and employee
response benefit.
to external
As Beginning
with other
influences, professions,
including
in the 1940s SHRM
economic, confronts
as ademographic,
series a number of difficult
technological,
of functions, often issues
legislative
neither andsocial
and
integrated dilemmas concerning
norchanges,
based as well
upon its
as
solid
ethical frameworks,
significant
conceptual transitions
foundations,roles,
in the processes
nature
modern of and
SHRM is practices.
global a jobs andFurther
dynamic workplaces,development
specialisation SHRM ofprocess
SHRM
requires
in the thewill eventually
ofadoption
refining ofits
a
resolve these
strategic
philosophies, issuestointhe
approach
practices creative andcontributions
andmanagement
overall effective ways.
of human to resources
organisationalfor organisational
effectiveness. In and employee
response benefit.
to external
As with other
influences, professions,
including SHRM
economic, confronts a number
demographic, of difficult
technological, issuesand
legislative andsocial
dilemmas concerning
changes, as well its
as
KEY TERMS
ethical frameworks,
significant transitionsroles,
in theprocesses
nature of and
globalpractices.
jobs andFurther
workplaces,development of SHRM
SHRM requires thewill eventually
adoption of a
resolve these
strategic issuestointhe
approach creative and effective ways.
management
• AHRI Model of Excellence (MoE) 29 of human resources for organisational
• psychological contract 12 and employee benefit.
As
• with other professions, SHRM (AEC)
confronts
4 a number • ofresource-based
difficult issues view
and dilemmas
(RBV) 13 concerning its
• Revise the key concepts from the chapter
ASEAN Economic Community
KEY TERMS
ethical frameworks, roles,
• employment relationship 12 processes and practices. Further development
• social contract 12 of SHRM will eventually
resolve
• AHRI these
Fourth issues in
Industrial creative and
Revolution (FIR,effective ways. • ‘soft’ HRM 20
• Model of Excellence (MoE) 29or • psychological contract 12
with the Key Terms list. •
IndustryEconomic
• ASEAN
KEY TERMS
• employment
4.0) 4 Community (AEC) 4
globalisation relationship
3 12
• resource-based
• strategic humanview
(SHRM)
• social 8
contract 12
resource
(RBV)management
13

74 HRM IN CONTEXT
• Fourth
‘hard’Model
HRM 20 • psychological
strategic
• AHRI Industrial Revolution
of Excellence (FIR,29or
(MoE) • ‘soft’ HRMinternational
20 contract human
12 resource
74 • Industry
•
HRM IN CONTEXT HRM community
ASEAN 4.0) 4 32
Economic Community (AEC) 4 management
• resource-based
strategic human(SIHRM)/strategic
resource
view 13 global
(RBV)management
• globalisation
• HRM ethics 34
employment 3
relationship 12 humancontract
(SHRM)
• social resource
8 12management (SGHRM) 21
• ‘hard’
• humanHRM
Fourth resource
20 management
Industrial Revolution (FIR,(HRM)
or 3 • ‘soft’
• Trans-Pacific
strategic 20 Partnership
HRMinternational (TPP2)
human 4
resource
• HRM
• legal community
contract4 12 32 • management
unitarist 19 (SIHRM)/strategic global
b Industry
What are4.0)the main human resource implications •of women’s strategic human
increased resource
workforcemanagement
participation?
• HRM
• pluralist 19 343
ethics • human
work-readiness
resource (employability) 5
management (SGHRM) 21
c globalisation
How are organisations responding? (SHRM) 8
b What are the main human resource implications of women’s increased workforce participation?
• human resource
20 management (HRM) 3 • Trans-Pacific Partnership (TPP2) 4
• Develop your knowledge of topical HRM
‘hard’ HRM strategic international human resource
EMERGING ISSUES
c How
•3 HRM
legal
are organisations
Ageing workforce
contract
community 12 32
responding?
• management
unitarist 19 (SIHRM)/strategic global
pluralist
•TheHRM 19 population
ethics
Australian 34 and workforce are ageing.• human work-readiness
resource(employability) 5
management (SGHRM) 21
13 Globalisation
Ageing workforce
issues with the Emerging Issue •a human
•
Why is this
EMERGING ISSUES
Globalisation
b legal
resource management
an important
The Australianofpopulation
are thebusiness
Whatcontract 12
advantages has
issue (HRM)
andbecome
of an ageing
3 resource
for human
workforce are ageing.
a reality,
• managers
Trans-Pacific
with •theunitarist
workforce? economic
Partnership (TPP2) 4
to consider?
19interconnectedness of nations and
a Why is this an important issue for human resource managers to consider?
questions linked to the icons throughout •their organisations
c pluralist
What 19
changes facilitated
within by new
workplaces technologies
might need to be •and an increasing
work-readiness
introduced number of older
(employability)
to accommodate trade agreements
5 workers?
b Globalisation
What countries
1between are the advantages
and regions. of an ageing workforce?
ac4 Visit
What changes
Flexibility
the ASEAN within workplaces
Economichas Community
mightwebsite
need to(http://asean.org/asean-economic-community)
be introduced to accommodate older workers?
with the economic interconnectedness of nations and
EMERGING ISSUES
Globalisation of business become a reality, and
the chapters. their consider
4Thealso
increasing
Flexibility
1between
Globalisation
the
the
organisations positive and
facilitated
flexibility
possible
countries
negative
of the
challenges
and
implications
by employment
new technologies for labour
and an may
relationship mobility
increasing
suggestacross
number the ASEAN
of trade
positives
regions. for Australian organisations wishing to expand to the region.
region, andfor
agreements
and negatives
employers and employees.
The increasing flexibility of the employment relationship may suggest positives and negatives for
a a Visit
Whatthe
Globalisation areASEAN
the Economic
of business
pros andhasconsCommunity
become website
a reality,
of flexible work (http://asean.org/asean-economic-community)
with the economic
arrangements for (i)interconnectedness
employers and managers, andand
of nations and
(ii)
2employers
New
consider
technology
and employees.
the positive
–andthenegative
Fourthimplications
Industrial Revolution
their organisations
employees? facilitated by new technologiesforand labour mobility across
an increasing number the ASEAN
of traderegion, and
agreements
a What
The Fourth are the prosRevolution
Industrial and cons of(FIR)flexible work
is the arrangements
digital transformation for (i)
in employers
society andand managers, and (ii)
also
between the possible
countries challenges
and regions. for Australian organisations wishing to expand tobusiness that involves
the region.
• Examine the Ethical Challenge scenarios a
2
employees?
an interface
ETHICAL CHALLENGE
applications
consider
betweenEconomic
Visit the ASEAN
New technology
include
the
technologies
–and
driverless
positive Fourth
in the physical,
Community
thenegative
website digital
Industrial
trucks and Revolution
cars, implications trains,
for
and biological disciplines. New technological
(http://asean.org/asean-economic-community)
labour‘cashier-less’
mobility across shops, and robotic
the ASEAN
and
doctors,
region, and
ETHICAL CHALLENGE
Work hours andmechanics,
pay ratesconstruction
and consider the ethical implications of
lawyers,
The Fourth
also farmers,
the Industrial
possible Revolution
challenges (FIR)
for is theworkers,
Australiandigital tutors, insurance
transformation
organisations wishing toagents
in society
expand and
and bank
tobusiness
the tellers, among
that involves
region.
many
an others.
Youinterface
have been Significant
between
asked workplace
technologies
torates changes,
in the to
provide advice and
physical,
a fellow the
digital replacement
and who
student biologicalof (particularly)
worksdisciplines. low and medium
New technological
in a restaurant on weekends
Work hours and pay
2 andNew
skilled jobs
applications
feels technology
byinclude
robots,by
pressured –their
are the Fourth
anticipated.
driverless bosscars, Industrial
trucks
to work Revolution
and hours
longer trains,than
‘cashier-less’
they wish. In shops, and robotic
discussion doctors,
with your fellow
theories and practices covered in the You have been asked to provide advice to a fellow student who works in a restaurant on weekends
lawyers,
student,
The Fourth farmers,
you also mechanics,
realise
Industrial that construction
Revolution the student
(FIR) workers,
is theis possibly
digital tutors, insurance
not being
transformation paid agents
the
in society
and feels pressured by their boss to work longer hours than they wish. In discussion with your fellow
many others. Significant workplace changes, and the replacement of
and
correct
and bank tellers,
hourly
business
(particularly) low
rate. among
that You
and medium
also
involves
ansuspect the between
interface student istechnologies
already working in themore hoursdigital
physical, than their visa allows.
and biological disciplines. New technological

chapter.
student, you also realise that the student is possibly not being paid the correct hourly rate. You also
skilled
1 Howjobs
applications byinclude
would robots, are anticipated.
you advise the student
driverless cars, about
truckstheir
andinitial
trains,request to refuse shops,
‘cashier-less’ more hours of work?doctors,
and robotic
suspect the student is already working more hours than their visa allows.
2 Whatfarmers,
lawyers, other issues does theconstruction
mechanics, conversation raise? tutors, insurance agents and bank tellers, among
workers,
1 How would you advise the student about their initial request to refuse more hours of work?
3 Would
many youSignificant
others. raise theseworkplace
issues withchanges,
your fellowandstudent, or keep them
the replacement to yourself? What
of (particularly) would
low and you
medium
2 What other issues does the conversation raise?
sayjobs
skilled and bydo?robots, are anticipated.
3 Would you raise these issues with your fellow student, or keep them to yourself? What would you
say and do?

CASE STUDY 2.1

• Analyse in-depth Case studies that CASE
HR STUDY
director’s 2.1 advancing women to leadership positions
challenge:

present issues in context, encouraging

A large
HR (just over
director’s 3000 employees)
challenge: publicly
advancing women listedtocompany has positions
leadership received bad publicity recently
about the low representation of women in leadership positions in the organisation. The company
A large (just over 3000 employees) publicly listed company has received bad publicity recently
is headed by a male CEO and the current senior executive team has one woman (the HR director)

you to integrate and apply the concepts

about the low representation of women in leadership positions in the organisation. The company
and three men (Marketing director, Operations director and Finance director). The composition of
is headed by a male CEO and the current senior executive team has one woman (the HR director)
the non-managerial workforce is largely female, with 75 per cent female and 25 per cent male.
and three men (Marketing director, Operations director and Finance director). The composition of
discussed in the chapter to the The profile changes at the managerial level, with 20 per cent of managers being female and 70 per
the non-managerial workforce is largely female, with 75 per cent female and 25 per cent male.
cent being male. As a consultant specialising in women and work, you have been asked to provide
The profile changes at the managerial level, with 20 per cent of managers being female and 70 per
advice about the most effective way to advance women to leadership positions in the organisation.
workplace. cent being male. As a consultant specialising in women and work, you have been asked to provide
The CEO wants change to be introduced quickly so that he can demonstrate to the public and media
advice about the most effective way to advance women to leadership positions in the organisation.
that the organisation has responded to the bad publicity. The HR director argues that it is not just
The CEO wants change to be introduced quickly so that he can demonstrate to the public and media
a structural issue, but also a cultural problem, and it will therefore take a number of years to shift
that the organisation has responded to the bad publicity. The HR director argues that it is not just
the managerial ratios between men and women.
a structural issue, but also a cultural problem, and it will therefore take a number of years to shift
the managerial ratios between men and women.

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
 xvii

Guide to the online resources

FOR THE INSTRUCTOR

Cengage is pleased to provide you with a selection of resources that

will help you prepare your lectures and assessments. These
teaching tools are accessible via cengage.com.au/instructors
for Australia or cengage.co.nz/instructors for New Zealand.

MINDTAP
Premium online teaching and learning tools are available on the MindTap platform – the
personalised eLearning solution.
MindTap is a flexible and easy-to-use platform that helps build student confidence and gives you
a clear picture of their progress. We partner with you to ease the transition to digital – we’re
with you every step of the way.
The Cengage Mobile App puts your course directly into students’ hands with course materials
available on their smartphone or tablet. Students can read on the go, complete practice quizzes
or participate in interactive real-time activities.
MindTap for Nankervis’ Human Resources Management is full of innovative resources to support
critical thinking, and help your students move from memorisation to mastery! Includes:
• Human Resources Management 10th edition eBook
• Revision quizzes, video quizzes, concept clips, what would you do? scenarios and more!
MindTap is a premium purchasable eLearning tool.
Contact your Cengage learning consultant to find out how
MindTap can transform your course.

INSTRUCTOR’S MANUAL
The Instructor’s Manual includes:
• learning objectives • tutorial activities
• chapter outlines • answers to case studies
• key questions • websites and readings
• sample responses to emerging issue
questions, ethical challenges and tutorial
activities

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xviii GUIDE TO THE ONLINE RESOURCES

COGNERO TESTBANK POWERED BY MINDTAP

A bank of questions has been developed in conjunction with the text for creating quizzes, tests
and exams for your students. Create multiple test versions in an instant and deliver tests from
your LMS, your classroom, or wherever you want using Cognero. Cognero test generator is a
flexible online system that allows you to import, edit, and manipulate content from the text’s
testbank or elsewhere, including your own favourite test questions.

POWERPOINT™ PRESENTATIONS
Use the chapter-by-chapter PowerPoint presentations to enhance your lecture presentations
and handouts to reinforce the key principles of your subject.

ARTWORK FROM THE TEXT

Add the digital files of graphs, tables, pictures and flow charts into your course management
system, use them in student handouts, or copy them in your lecture presentations.

FOR THE STUDENT

MINDTAP
MindTap is the next-level online learning tool that helps you get better grades!
MindTap gives you the resources you need to study – all in one place and available when you
need them. In the MindTap Reader, you can make notes, highlight text and even find a definition
directly from the page.
If your instructor has chosen MindTap for your subject this semester, log in to MindTap to:
• Get better grades
• Save time and get organised
• Connect with your instructor and peers
• Study when and where you want, online and mobile
• Complete assessment tasks as set by your instructor
When your instructor creates a course using MindTap, they will let you know your course key so
you can access the content. Please purchase MindTap only
when directed by your instructor. Course length is set by
your instructor.

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 xix

PREFACE AND AHRI ENDORSEMENT

Preface: The future of human resource management

As we approach 2020, profound sociopolitical, economic, technical and environmental changes
are affecting the world of work. These changes and the accompanying challenges will impact
on the roles, skills and significance of human resource management (HRM) in theory and in
practice.
Perhaps the most important catalyst in changing present and future organisations, workplaces,
employment conditions, jobs and employees’ skills requirements will be the impact of the so-
called Fourth Industrial Revolution (4IR, ‘Industry 4.0’, or simply ‘4.0’). Coined by Charles
Schwab, founder of the World Economic Forum, this technological ‘revolution’ is the digital
transformation in society and business which involves an interface between technologies in the
physical, digital and biological disciplines. Emerging technology – such as artificial intelligence,
robotics, the Internet of Things, autonomous vehicles, 3-D printing, nanotechnology,
biotechnology, materials science, energy storage and quantum computing – represent just the
tip of this technology iceberg. Significant workplace changes and the potential to replace low-
and medium-skilled jobs with robots are anticipated. It is likely that all industries and most
occupations will be transformed by the 4IR.1 Some observers suggest the occupations that
will be least affected by these technological developments are those in creative work, human-
centred and skilled trades jobs.2
Compounding these major technological changes are political and economic uncertainties,
and broad demographic and sociocultural developments, including the ageing of the population
and workforces in most developed and many emerging countries. This is contrasted with
youthful labour markets in countries such as Indonesia and India. Younger generations of
workers possess particular lifestyles and attitudes towards their jobs and careers, working
alongside older employees who have different motivations and considerable work knowledge
and experience. The gig economy and project-based or contract work have challenged
traditional employment models, and global career opportunities requiring multicultural
knowledge, skills and capabilities have also provided significant challenges for organisations,
managers, unions and, in particular, human resource professionals.
Legislative changes aimed at ensuring equity, encouraging diversity and strengthening
corporate governance have been enacted in many countries, with far-reaching consequences
for all organisations, HR professionals and employees. As examples, the UN Human Rights
Commission and UNICEF have been more active in recent years in proscribing child slavery
and sex work, enhancing female workers’ rights and attempting (often with only limited
success) to enforce the rights and employment conditions of cross-regional migrant workers.

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
xx PREFACE AND AHRI ENDORSEMENT

At the global level, the volatility of political and economic environments provides
organisations across the world with new and unexpected threats and opportunities. These are
illustrated by such diverse developments as the election of President Donald Trump in the
United States and the challenges posed by North Korea; the contested withdrawal of the
United Kingdom from the European Union following the Brexit referendum; the formation
of the ASEAN Economic Community (AEC); the continuing rise of China and India; frequent
leadership changes in Australia and elsewhere, and constantly fluctuating currencies and stock
markets.
While it is difficult to predict, there are indications that HRM theories will need to
incorporate stronger environmental, social responsibility and ethical dimensions (‘green
HRM’, ‘sustainable HRM’ and ‘responsible HRM’) as communities and workers demand that
organisations respond more strategically to these global challenges. In an increasing ‘war’ for
talent, organisations that fail to respond will find it difficult to compete as employer branding in
these dimensions becomes more imperative for choosy younger workers. In many organisations,
HRM professionals are (or will become) the catalysts for such challenges. In addition, given the
monumental changes to jobs, skills and entire workplaces associated with Industry 4.0, HRM
professionals will need to focus more intensively on proactive human resource planning, global
and local environmental scanning, devolving many of their traditional functions (attraction
and retention, learning and development, performance and rewards management) to line
managers and/or outsourcing to external service providers, and using artificial intelligence or
robotic technologies to augment them. The increasing use of big data and more sophisticated
human resource information management systems (HRIMS) will become mandatory for these
purposes, as well as stronger accountability for their strategies, processes and outcomes.
The roles of HRM professionals are also likely to become more fragmented, with
emphases on functional specialists (e.g. attraction and retention consultants, reward specialists,
learning and development experts) and ‘fair work’ counsellors who monitor and enforce
compliance with legal and industrial relations regulations and processes. Such new HRM
roles may be undertaken both within organisations and externally. With respect to traditional
HRM functions, the demands of Industry 4.0 are likely to transform attraction and selection
systems via the use of chatbots, computer-aided selection processes and social media; learning
and development is likely to comprise blended, self-paced packages on demand; job and
performance management criteria may emphasise soft skills over specific technical competence
and capabilities; while, increasingly, rewards and benefits are likely to be individualised rather
than generalised, dependent on mutually agreed outcomes. Multiple (internal and external)
careers will become the norm.
The challenge for the HRM profession and its practitioners is to understand the avalanche
of forthcoming changes; to develop flexible long-, medium- and short-term strategies and plans
to accommodate them based on available data; to collaborate with line managers, outsourced
and in-sourced service providers and (where appropriate) unions in order to deliver responsive,

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 PREFACE AND AHRI ENDORSEMENT xxi

responsible and cost-effective HRM systems; and to account for their effectiveness in terms
that reflect business imperatives. As Peter Wilson, National President of the Australian Human
Resources Institute (AHRI) suggests, it is important to ‘measure and reward the execution of
HRM service delivery that optimises human relationships and a more positive culture … (and)
secures a more responsible operation that safeguards brand and reputation’.3
Our goal in this 10th edition of HRM Strategy and Practice is to provide students of HRM
with the capacity to understand and act within this new context, and to become capable and
ethical HRM practitioners and leaders across the range of HRM functions.
Alan Nankervis, Marian Baird, Jane Coffey and John Shields

ENDNOTES
1 Ford, M. (2018), Architects of intelligence: The truth about artificial intelligence from the people building it. New York: Pacht Publishing.
2 Schwab, F. (2015), The Fourth Industrial Revolution:What it means and how to respond. Geneva: WEF.
3 Wilson, P. (2019), Ethics 4.0: An HR guide to shaping modern ethics. hrmonline.com.au, December/January, p. 6.

AHRI endorsement
AHRI is pleased to endorse this textbook as a key HR reference for students. The book is a
set text for the AHRI Practising Certification Program (APC), a program equivalent to AQF
8 postgraduate level. Familiarity with the 17 behaviours and capabilities set out in the AHRI
Model of Excellence (MoE) is a central part of the APC, and this updated 10th edition of the
textbook examines each of the 17 attributes of the MoE in detail. The APC is a mandatory
requirement for HR practitioners seeking AHRI certification.
The Australian Human Resources Institute (AHRI) is the national association representing
human resource and people management professionals. AHRI leads the direction and fosters
the growth of the HR profession through actively setting standards, building capability and
providing a certification credential for the profession. Through its international affiliations and
its close association with Australian industry and academia, AHRI ensures that its members
are given access to a rigorous world class professional recognition framework and professional
development opportunities. Professional, Graduate, Affiliate, Organisation and Student
memberships are available through the Institute. Find out more and how to become a member
at http://www.ahri.com.au.

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
xxii

ABOUT THE AUTHORS, CONTRIBUTORS

AND ACKNOWLEDGEMENTS

About the authors

Alan Nankervis is an Adjunct Professor of Human Resource Management at RMIT
University (Melbourne) and Curtin University (Perth) in Australia. He has previously taught
and researched at universities in Melbourne, Sydney, the United Kingdom, Canada, Indonesia
and Thailand. He has co-authored a dozen books and many scholarly articles and conference
papers and was the co-editor of the journal Research & Practice in Human Resource Management
from 2001 to 2011. He is currently the Chair of the Australian Human Resources Institute’s
National Accreditation Committee. His current research interests include comparative Asian
HRM, graduate employability and the future of work in the Asia-Pacific region.

Marian Baird, AO, BEc (Hons), Grad. Dip. Ed., PhD (Sydney), is Professor of Gender and
Employment Relations, Co-Director of the Women, Work and Leadership Research Group,
and Head of the Discipline of Work and Organisational Studies at the University of Sydney
Business School. Marian is a highly recognised academic in the fields of industrial relations,
human resource management and work and family. She is the recipient of several major research
grants from funding bodies, including the Australian Research Council and state and federal
governments, to explore critical aspects of women’s working lives, the ageing workforce, and
the impact of regulatory change across the public and private sectors. She is the Co-editor
in Chief of the Journal of Industrial Relations, and has published extensively in national and
international journals. Marian has contributed to numerous government review panels on
gender equality, discrimination and parental leave.

Jane Coffey, BA (Soc.Sc.), Grad Dip., M.Comm, PhD (Perth), is a senior lecturer with the
School of Management within the Faculty of Business and Law, Curtin University. She has
held numerous positions within the faculty and university, including International Academic
Director, Deputy Head of School, Discipline Leader and Course Coordinator, HRM and
industrial relations. Throughout her academic career, she has developed, managed and taught
a range of HRM and industrial relations programs throughout Australia and South-East Asia.
Jane has actively contributed to the last four editions of this textbook. She researches and
publishes in the areas of career expectations of Generations X and Y and career attraction and
retention issues within the performing arts.
Jane also has significant corporate professional experience, having operated a highly
successful HR consultancy business prior to joining Curtin University. She specialised in

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
 ABOUT THE AUTHORS, CONTRIBUTORS AND ACKNOWLEDGEMENTS xxiii

providing support and advice to the public sector, and she maintains a significant consultancy
profile in this area with the university. She also conducts and facilitates workshops throughout
Australia.

John Shields is Professor of Human Resource Management and Organisational Studies

in the Discipline of Work and Organisational Studies at the University of Sydney Business
School, where he is also Deputy Dean. In the HRM field, John’s research focuses on reward
management and work motivation and performance. He also researches in the corporate
governance field, with a particular interest in board capability, executive reward and firm
performance. A co-authored third edition of his text on managing employee performance
and reward is currently in preparation.

Acknowledgements
The authors wish to acknowledge the long-standing contribution made by Professor
Leigh Compton to previous editions of this text. Cengage joins them in extending our
appreciation to Professor Compton whose contribution as an author over seven of the
previous editions has helped make this text a standard for presenting HRM knowledge in
the Asia Pacific region.
Our sincere gratitude and appreciation are expressed to the following colleagues who have
added inestimable value and quality to this new edition:
• Dr Ros Larkin, University of Newcastle
• Ms Ann Arnold, Australian Broadcasting Commission
• Dr Alan Montague, RMIT University
• Cec Pederson, University of Southern Queensland
• Dr Di Fan,Victoria University
• A/Prof. James Reveley, University of Wollongong
• Senior Honorary Fellow Joy Peluchette, University of Wollongong
• Louise Ingersoll, University of Western Sydney
• Julie McGowan, Whitireia New Zealand

The authors also wish to acknowledge the following people:

• Lyn Goodear and Dana Grgas, of the Australian Human Resources Institute (AHRI), for
their support, and for providing new material on the AHRI’s professional framework.
• Professor Samir Chatterjee (Curtin University) for contributing to the ‘Ethics and HRM’
section.
• Professor Bradon Ellem (University of Sydney) for assisting with the section on the
Australian trade union movement.
• Alison Williams for research assistance with Chapter 3 on industrial relations.

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
xxiv ABOUT THE AUTHORS, CONTRIBUTORS AND ACKNOWLEDGEMENTS

• Gaby Grammeno for research and practical assistance with Chapter 10 on work, health
and safety.
• Peter Vlant and Lyle Potgieter (PeopleStreme) for providing commercial research
information on HRM evaluation, and for contributing their research to Chapter 12.
• Prikshat Verma (Australian Institute of Business, Adelaide) for research assistance.
We are immensely grateful to (in no particular order) Laura Di Iorio, James Cole and,
of course, Dorothy (‘the dinosaur’) Chiu, of Cengage, for their continuing encouragement,
support, professionalism and maintenance of strict deadlines.
Cengage and the authors would like to thank the following reviewers for their incisive and
helpful feedback:
• Fiona Edgar – University of Otago
• Youqing Fan – Western Sydney University
• Jane Jones – Flinders University
• Sarah Kim – RMIT University
• Malliga Marimuthu – Charles Darwin University
• Michael Muchiri – RMIT University
• Leigh-ann Onnis – James Cook University
• Geoff Plimmer – Victoria University of Wellington
• Ancy Ramasamy – Victoria University
• Shuang Ren – Deakin University
• Beth Tootell – Massey University
• Richa Vinod – Murdoch University

Every effort has been made to trace and acknowledge copyright. However, if any infringement
has occurred, the publishers tender their apologies and invite the copyright holders to contact
them.

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
 1

HRM IN CONTEXT PART

1 Evolution of strategic human resource management

2 The context of strategic human resource management
3 Industrial relations: frameworks and practice
4 Human resource planning in a changing environment
1

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
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