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Human Resource Management
Julie Beardwell Tim Claydon
Julie Beardwell Tim Claydon
Human Resource Management
A Contemporary Approach Human Resource
Management
5th Edition
A Contemporary Approach
management, exploring a range of questions including:
Visit www.pearsoned.co.uk/beardwell
for valuable study resources!
The text covers the most pressing and topical themes and debates of today – such as HR strategy, gender and
diversity, and employee rights, involvement and participation – whilst covering in depth the theory and practice of
the operational aspects of HRM. The final part of the text compares trends in HRM around the world, with a
particular focus on India and China, as well as the influence of multinational corporations on the practice of HRM.
5th Edition
Regular invitations to ‘Stop and think’, questions and activities, and recommended further reading enable you to
learn and research effectively. And a wealth of relevant and appealing case studies and examples include:
Beardwell Claydon
● human resource planning for the London 2012 Olympics
● online selection testing at Cadbury Schweppes
● employee motivation at Harley-Davidson
● career development at soft drinks giant Britvic
● talent spotting and the ‘corporate boot camp’ at multinational GE
Human Resource Management is written for undergraduate, postgraduate and MBA students, as well as those
studying for the CIPD qualifications.
ISBN 978-0-273-70763-9
9 780273 707639
an imprint of www.pearson-books.com
Fifth Edition
Human Resource
Management
A Contemporary Approach
Edited by
Julie Beardwell
Leeds Metropolitan University
Tim Claydon
De Montfort University, Leicester
HUMA_C00.QXD 3/3/08 12:55 PM Page iv
Edinburgh Gate
Harlow
Essex CM20 2JE
England
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise, without either the prior written permission of the
publisher or a licence permitting restricted copying in the United Kingdom issued by the
Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any
trademark in this text does not vest in the author or publisher any trademark ownership rights
in such trademarks, nor does the use of such trademarks imply any affiliation with or
endorsement of this book by such owners.
ISBN: 978-0-273-70763-9
10 9 8 7 6 5 4 3 2
11 10 09 08
Contents
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CONTENTS
vi
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CONTENTS
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CONTENTS
Part 5
INTERNATIONAL HUMAN RESOURCE 17 International HRM
MANAGEMENT Phil Almond and Olga Tregaskis 634
Objectives 634
Introduction to Part 5 563 Introduction 634
The international strategic context 636
15 HRM trends and prospects: Configuration of the international HRM
a comparative perspective function 640
Knowledge and the transfer of the HR
Ian Clark and Tim Claydon 564
policy and practice in international
Objectives 564 organisations 651
Introduction 564 Country effects 654
National employment systems 566 Summary 661
Germany: the social partnership model 566 Questions 662
Japan: the enterprise-based model 571 Case study: All change at Linkz 662
The American employment system: References and further reading 664
a managerial model 576
Three national systems: a summary 581 Part 5 Case study:
Patterns of change in national systems 582 Global and local: the case of the inoperable
Where the USA leads the rest of the world HRM strategy 667
follows? 584
Change, convergence and divergence in Glossary of terms and abbreviations 669
employment systems 591 Index 677
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Preface
This fifth edition is the first edition of this text that has not been co-edited and contributed to
by Len Holden. The book was in many ways Len’s brainchild and the fact that the book goes
on even though he has relinquished his role is a tribute to the quality of the vision that he and
Ian Beardwell shared nearly fifteen years ago. As new co-editors we have tried to ensure that
this edition maintains the analytical and critical standard that they set in earlier ones.
HRM is a continually evolving field of practice and study. In its successive editions this
book has tried to reflect critically upon new developments as the issues and policies that have
become associated with it have multiplied considerably. Previous editions have traced the
debates over the role of the HRM specialist within organisations, the role and nature of HRM
in relation to organisational change initiatives such as total quality management (TQM),
and the strategic role of HRM and its effect on organisational performance. They also
addressed the implications for HRM of the emergence of new concepts such as the learning
organisation and the knowledge-based organisation and new approaches to employee
involvement (EI) and empowerment.
In the last edition we noted how in academic circles the search for a universal HRM para-
digm has given way to an emphasis on understanding how HRM operates in diverse
situations and what contribution it can make to the effectiveness and profitability of the
organisation. Particular attention was paid to concepts such as high performance work
systems, the resource-based view of HRM and ‘bundles’ of HR policies. That edition
also examined the operation of HRM across national boundaries, reflecting the growing
importance of multinational companies and the globalising trends in the world economy.
This edition continues to explore these themes and to reflect further developments in the
field, including changes in employees’ legal rights, developments in employee involvement
and the implications of the continuing emphasis on the need to raise skills and compete in
world markets on the basis of skills and knowledge. We have paid particular attention to the
final section dealing with comparative and international HRM in order to address more fully
the issues for HRM raised by globalisation. There are new chapters that discuss whether dis-
tinctive national patterns of HRM can survive in the face of US-led globalisation, how HRM
is developing in the rapidly growing economies of China and India, and the ways in which
multinational companies are influencing not only HRM ideas and practice across the globe
but also the national and international policy environments within which HRM operates. A
single volume cannot encompass the huge area in and around the HRM sphere, and we
apologise for any omissions. Nevertheless, we have covered the broad sweep of the HRM field
and some aspects in considerable detail.
We would again like to thank our long-standing contributors and those who are making
their first appearance in this edition for their hard work and willing cooperation in getting
this edition to press. We would also like to thank partners, family members and colleagues for
their help and support in the arduous process of academic writing. Finally, we would like to
thank our editors at Pearson for their enthusiastic help and encouragement.
Julie Beardwell
Tim Claydon
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Guided tour
Chapter 2
Objectives
To indicate the significance of the business context in developing an understanding of the
meaning and application of SHRM.
To analyse the relationship between strategic management and SHRM. Objectives provide an overview of
To examine the different approaches to SHRM including:
– the best-fit approach to SHRM;
the topics to be covered in each
– the configurational approach to SHRM;
– the resource based view of SHRM
chapter, giving a clear indication of
– the best-practice approach to SHRM.
To evaluate the relationship between SHRM and organisational performance.
what you should expect to learn.
To present a number of activities and case studies that will facilitate the reader’s
understanding of the nature and complexity of the SHRM debate, and enable the reader
to apply their knowledge and understanding.
This chapter charts the development of strategic human resource management. It assumes
a certain familiarity with the evolution of HRM, early HRM models and frameworks and
their theoretical underpinning as discussed in other chapters and particularly Chapter 1.
The aim of this chapter is to provide a challenging and critical analysis of the strategic
human resource management literature, so that you will be able to understand the synthe-
sis both within and between strategic human resource management and strategic
management in its various forms.
Since the early 1980s when human resource management arrived on the managerial
agenda, there has been considerable debate concerning its nature and its value to organis-
ations. From the seminal works emerging from the Chicago school and the matching model THE SYSTEMATIC APPROACH
of HRM (Fombrun, Tichy and Devanna, 1984) the emphasis has very much concerned its
strategic role in the organisation. Indeed the now large literature rarely differentiates between Figure 2.2 Emergent strategy
human resource management (HRM) and strategic human resource management (SHRM).
While some writers have associated HRM with the strategic aspects and concerns of ‘best-fit’, Int
str ende
ate d
gy
De
34 lib
era
te
str
ate
gy
Realised
Unrealised
strategy
strategy
Emergent strategy
and processes.
is these pluralist tensions that are sometimes ignored in certain branches of the SHRM litera-
ture, most notably the ‘best-practice’ approach.
41
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GUIDED TOUR
Activity Try to answer these questions with regard to your organisation or one you are familiar with.
Alternatively, you could use the case study ‘Café Expresso’ at the end of this chapter. Activities appear throughout the
This approach has further implications for the role of human resource managers in a firm, as text to reinforce learning with
they need to understand the economic consequences of human resource practices and under-
stand where they fit in the value chain. Barney and Wright (1998: 42) suggest that the human problems and practical exercises.
resources function needs to be able to explore the following questions:
Who are your internal customers and how well do you know their part of the business?
Are there organisational policies and practices that make it difficult for your internal
clients to be successful?
What services do you provide? What services should you provide? What services should
you not provide?
How do these services reduce internal customers’ costs/increase their revenues?
Can these services be provided more efficiently by outside vendors?
Can you provide these services more efficiently?
Do managers in the HR function understand the economic consequence of their jobs?
The value of an organisation’s resources is not sufficient alone, however, for sustainable com-
petitive advantage, because if other organisations possess the same value, then it will only
provide competitive parity. Therefore an organisation needs to consider the next stage of the
framework: rarity.
Rarity
The HR manager needs to consider how to develop and exploit rare characteristics of a firm’s
human resources to gain competitive advantage.
Nordstrom is an interesting case, because they operate in a highly competitive retail indus-
try where you would usually expect a lower level of skill and subsequently high labour
turnover. Nordstrom, however, focused on individual salespeople as a key source of its com-
petitive advantage. It therefore invested in attracting and retaining young college-educated
people who were looking for a career in retailing. To ensure horizontal integration, it also
provided a highly incentive-based compensation system (up to twice the industry average)
Question
How did Nordstrom exploit the rare characteristics of their employees?
Summary
The chapter began by outlining seven key objectives and these are revisited here.
Human resource planning can be interpreted in a number of different ways. For some it
means the same as manpower planning, for others it is significantly different and has
many similarities to HRM. The definition used in this chapter relates to HRP as a set of
distinct activities that incorporates both the hard elements associated with manpower
planning and some of the softer elements associated with HRM.
The key stages in the traditional human resource planning process are investigation and
The Summary allows you to recap analysis, forecasting demand and supply, developing action plans to address any imbal-
ance, implementing the plans and evaluating their effectiveness.
and review your understanding of Methods of demand forecasting discussed are time series, ratio analysis, work study, man-
agerial judgement, the Delphi technique and working back from budgets. Quantitative
methods can be problematic as the extrapolation of past data might be inappropriate in a
the main points of the chapter. changing environment but they can provide a reasonable starting point for forecasts.
Qualitative methods are more flexible but can be manipulated for political ends. Supply
forecasting tends to focus mainly on various analyses of labour turnover and stability and
movement through an organisation. Quantitative analysis can help to highlight problem
areas but gives little indication about how problems might be addressed. Qualitative data
can help to address this gap but can sometimes be difficult to obtain. Organisations can
exacerbate problems if they are not seen to act on the information they receive.
A more contemporary approach to HRP aims to enable the organisation to adapt to an
uncertain and changing environment and emphasises the need to develop a well-trained
and flexible workforce. Variants to HRP include micro-planning, contingency planning,
succession planning, skills planning and soft human resource planning.
The main advantages of HRP are that plans can help reduce uncertainty, can build flexibil-
ity and can contribute to vertical and horizontal integration. The key disadvantages relate
to difficulties of predicting an uncertain future, the lack of necessary data to make accurate
predictions and the absence of clear business plans.
Evidence of HRP in practice is varied but the dominant approach seems to view HR as the
‘dependent variable’ and tends to be tentative and incremental rather than systematic.
HRP’s main role in SHRM is as a means to facilitate the integration of HR strategy with
business strategy and to ensure that HR policies and practice are compatible with each
other. In addition, some studies associate formal planning activity with improved organi-
sational performance, particularly if planning is sustained over a number of years. The key
emphasis, however, needs to be on building adaptability and managing change.
QUESTIONS
1 To what extent can forecasting activity influence the effectiveness of human resource plans?
Questions can be used for 2 Why should organisations be concerned with labour turnover and what steps can they take
to address the issue?
self-testing, class exercises 3 Contemporary organisations increasingly operate in a dynamic and uncertain environment.
Does this reduce or increase the need for human resource planning activity? Justify your
or debates. answer.
186
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GUIDED TOUR
CASE STUDY
Case studies, at the end of each
Café Expresso
chapter and part, help consolidate
Café Expresso is one of the three main players in the dated and the range of coffees limited. Ben
‘coffee house’ industry, which now has more than
6000 stores across the globe, 500 of which are in the
Thomson’s review of the competitors supported this,
as he identified the significance of the ‘coffee drinking
your learning of major themes by
UK and Ireland. They employ 7000 staff in the UK
alone and serve 35 million customers in their stores
experience’ which was delivered through appropriate
décor, ambience, variety in the range of products and applying them to real-life examples.
across the globe each week. most importantly of all, the barista or ‘coffee seller’. He
The coffee industry is particularly robust, with identified these as key sources of added value and
coffee being the second most valuable commodity in competitive advantage.
the world after oil, with global retail sales estimated Ben Thomson decided to relaunch Café Expresso’s
to be £39.2 billion. A total of 6.7 million tonnes of business strategy with a new vision: ‘To be the
coffee were produced annually in 1998–2000, which number one coffee house of choice across the globe’
is forecast to rise to 7 million tonnes by 2010. and identified the following mission: Experience Café
The number of coffee bars in the high street has Expresso, we don’t just sell coffee we provide cus-
increased considerably in recent years, with the tomers with an unforgettable experience. This was
market being dominated by three main players. The encapsulated in his value statement: ‘Nowhere else
‘coffee house’ business therefore, is very competitive makes you feel this good.’ which he believed should
with coffee chains constantly looking for innovative apply to staff as well as customers. He was convinced
ways of achieving sustainable competitive advantage, that the success of coffee bars lay not just in selling
to remain ahead of their rivals. coffee as a product, but in selling the ‘coffee house’
Café Expresso had enjoyed first mover advantage experience. To achieve this he felt that Café Expresso’s
in the marketplace and had rapidly grown to number human resources would be crucial to the success of
one position, which they had retained for 15 years. In his strategy. He recognised that human resources
recent years, however, they have lost market share to would face a difficult task, as the coffee house indus-
rival competitors who have copied Café Expresso’s try is traditionally renowned for low pay (minimum
business model and poached key staff to deliver it wage being the norm) and high employee turnover
and subsequently customers had followed. This had (50–100 per cent being the norm), yet the baristas
resulted in Café Expresso slipping to the number (coffee sellers) are crucial to the success of the busi-
three position. This loss of market share had forced ness and the selling of the coffee house experience.
them to rethink their strategy and a new charismatic He identified the following priorities:
chief executive, Ben Thomson, had been appointed in
2005 to turn the business around. Business
In reviewing Café Expresso’s current strategy Ben
To be the number one coffee house across the
Thomson embarked on an international fact finding
globe.
tour of their coffee bars to meet staff and customers
To attract new customers through reputation for
to get a feel for the nature of the business, together
providing the coffee house experience.
with rival coffee houses to gain an understanding of
To retain existing customers through loyalty service.
their source of competitive advantage. He wanted to
return Café Expresso to the number one position in
Customer service
the marketplace. His review identified customers who
were loyal to the brand of Café Expresso but had been Commitment to excellence.
enticed away by the experience, the variety of coffee Internal and external customers valued.
and level of customer service offered by their com- Sell the barista experience.
petitors. His review of human resources found a high
level of staff turnover, due to the minimum wage People
offered and the high percentage of international Diversity and individuality valued.
employees who tended to be employed on short-term Knowledge and talent encouraged and retained.
contracts. The recent loss of market share and high Pride and enthusiasm valued.
employee turnover had led to low morale amongst Reward to retain.
remaining staff, as they felt Café Expresso’s bars were
Useful websites
Abell, D.F. (1993) Managing with Dual Strategies: Mastering the Barney, J.B. (1991) ‘Firm resources and sustained competitive
References, further reading Present, Pre-empting the Future. New York: Free Press.
Ahmad, S. and Schroeder, R.G. (2003) ‘The impact of human
advantage’, Journal of Management, 17, 1: 99–120.
Barney, J. (1995) ‘Looking inside for competitive advantage’,
resource management practices on operational performance: Academy of Management Executive, 9, 4: 49–61.
and useful websites support recognising country and industry differences’, Journal of
Operations Management, 21, 19–34
Barney, J.B. and Wright P.M. (1998) ‘On becoming a strategic
partner: the role of human resources in gaining competitive
Aktouf, O. (1996) Traditional management and beyond: a matter advantage’, Human Resource Management, 37, 1.
the chapter by giving printed of renewal. Montreal: Gaetan Morin.
Alchian, A. and Demsetz, H. (1972) ‘Production information
Barr, P., Stimpert, J. and Huff, A. (1992) ‘Cognitive change,
strategic action, and organisational renewal’, Strategic
costs and economic organisation’, American Economic
and electronic sources for Review, 62, 777–795.
Amit, R. and Shoemaker, P. (1993) ‘Strategic assets and organ-
Management Journal, 13, 15–36.
Batt, R. (2002). ‘Managing customer services: human resource
practices, quit rates and sales growth’ Academy of
isational rent’, Strategic Management Journal, 14, 33–46.
additional study. Ansoff, H.I., (1965) Corporate Strategy. Harmondsworth:
Penguin.
Management Journal, 45, 587–597.
Becker, B. and Gerhart, B. (1996) ‘The impact of human
Ansoff, H.I. and McDonnell, E. (1990) Implanting Strategic resource management on organisational performance:
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Applebaum, E., Bailey, T., Berg, P. and Kalleberg, A. (2000) 4: 779–801.
Manufacturing Competitive Advantage: Why high-performance Becker, B.E., Huselid, M.A., Pickus, P.S. and Spratt, M.F. (1997)
systems pay off. Ithaca, NY: ILR Press. ‘HR as a source of shareholder value: research and recom-
Applebaum, E. and Batt, R (1994) The New American mendations’, Human Resource Management, 36, 1: spring,
Workplace. Ithaca, NY: ILR Press. 39–47.
Armstrong, M. and Baron (2002) Strategic Human Resource Beer, M., Spector, B., Lawrence, P.R., Quinn Mills, D. and
Management, A Guide to Action, 2nd edn. London: CIPD. Walton, R.E. (1984) Managing Human Assets. New York: Free
Arthur, J. (1994) ‘Effects of human resource systems on manu- Press.
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Management Journal, 37, 3: 670–687. R., (1985) Human Resource Management: A General
Atkinson, J. (1984) Manpower strategies for the flexible organ- Managers Perspective. New York: Free Press.
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Baden-Fuller, C. (1995) ‘Strategic innovation, corporate entre- on job satisfaction in the US steel industry’, Industrial
preneurship and matching outside-in to inside-out Relations, 54, 111–35.
approaches to strategy research’, British Journal of Blyton, P. and Turnbull, P. (1992) (eds) Reassessing HRM.
Management, 6 (special issue), 3–16. London: Sage.
Bae, J. and Lawler, J.J. (2000) ‘Organisational and HRM strat-
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Baird, L. and Meshoulam, I. (1988) ‘Managing two fits of Journal, 6, 3: 59–75.
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Bamberger, P. and Phillips, B. (1991) ‘Organisational environ- Boxall, P. and Steeneveld, M. (1999) ‘Human resource strategy
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78
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GUIDED TOUR
Supporting resources
Visit www.pearsoned.co.uk/beardwell to find valuable online resources.
xiii
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Part 1
HUMAN RESOURCE MANAGEMENT AND ITS ORGANISATIONAL CONTEXT
Part 2
RESOURCING THE ORGANISATION
Part 3
DEVELOPING THE HUMAN RESOURCE
Part 4
THE EMPLOYMENT RELATIONSHIP
Part 5
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
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This text is designed to meet the needs of a range of requirements for a selection of post-graduate pro-
students who are studying HRM either as a core or grammes. There is no corresponding outline for
option subject on undergraduate degrees in Business undergraduates because of the multiplicity of courses
and Social Science, MBAs, specialised Master’s pro- at this level which individual tutors will have devised.
grammes, or for the CIPD’s professional development Nevertheless, it is hoped that these suggested ‘routes’
scheme (PDS). through the book will be helpful guidelines for tutors
All the chapters are designed to take a critically who have responsibility for some or all of these pro-
evaluative approach to their subject material. This grammes.
means that the book is not written in a prescriptive or
descriptive style as are some other HRM textbooks, MBA Route
though there will be sections that must necessarily Introduction: Chapters 1, 2, 3
incorporate aspects of that approach. Some chapters Core: Chapters 4, 5, 6, 9, 11, 12, 13, 14, 15
will also be more easily absorbable by the novice Options: Chapters 7, 8, 10, 16, 17
student than others. For example. Chapters 1
(Introduction to HRM) and 2 (Strategic HRM) are MA/MSc Route
good introductions to the subject, while Chapter 3
Introduction: Chapters 1, 2, 3, 4
takes a more unusual perspective on contextualising
Core: Chapters 5, 6, 9, 11, 12, 13, 14, 15
HRM and developing critical thinking that will prove
Options: Chapters 7, 8, 10, 16, 17
rewarding to the more able student. Likewise, Chapter
8 is a demanding and stimulating introduction to the
CIPD Professional Development Scheme
processes of learning and development, whilst
Chapter 9 contains more elements of what the stu- People Management and Development: Chapters 1,
dent might expect in a chapter on HRD. 2, 3, 4, 5, 6, 7, 9, 11, 12, 13
This edition features Activities and ‘Stop and think’ People Resourcing: Chapters 4, 5, 6, 7, 13
exercises throughout the text. These are to give read- Learning and Development: Chapters 8, 9, 10
ers pause for thought to help them absorb and Employee Relations: Chapters 7, 11, 12, 14
understand the concepts and ideas in both a practical Employee Reward: Chapter 13
and theoretical context. As in earlier editions, there Advanced Practitioner Standards: Chapters 1, 2, 15,
are case studies, exercises, activities and questions at 16, 17
the end of each part. These can be used by lecturers as
course work exercises and the Lecturer’s Guide that CIPD specialist modules may be supported by the use
accompanies this edition gives detailed suggested of relevant chapters, for example:
answers. Additional material is also available on the Managing diversity and equality: Chapters 4, 7
companion website. Managing organisational learning and knowledge:
The outlines which follow are intended to indicate Chapters 8, 9 and 10
how the material in this book can be used to cover the
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Contributors
Phil Almond, BSc, MA, PhD, is Reader in multi-country study which examined HRM and
International Human Resource Management at industrial relations in subsidiaries of US multination-
De Montfort University. His main research interests als. An innovative aspect of this project was its
are international and comparative HRM and he also corporate and subsidiary level empirical research. In
has an active research interest in industrial relations addition to this, together with Trevor Colling, Ian
in France. He is a member of an international team developed the analysis of sector effects as a conceptual
of researchers investigating the HRM practices of category that complements and further develops the
American-owned multinational companies and has analysis of country of origin and host country effects
recently edited, American Multinationals in Europe: in international HRM. Ian is currently researching the
Managing Employment Relations across National impact of shareholder value approaches to corporate
Borders. strategy on HRM and the role of private equity firms
in the market for corporate control.
Julie Beardwell, BA, MA, CFCIPD is Associate
Dean and Head of HRM/OB at Leeds Metropolitan Tim Claydon, BSc, MSc (econ), PhD, is head of the
University. She took up this post in 2006 after fifteen Department of Human Resource Management at
years in the HRM department at De Montfort Leicester Business School, De Montfort University. He
University. She is joint series editor for the HR Series has written on trade union history, union derecog-
published by Elsevier and she is a member of the nition, union–management partnership and ethical
CIPD’s standards moderating team. Her main issues in HRM. His current interests include contem-
research interests concern people management in porary changes in work and employment and
small and medium-sized enterprises. developments in trade unionism in the UK, Europe and
the USA.
Peter Butler, BA, MA, PhD is Lecturer in Industrial
Relations in the Department of Human Resource Audrey Collin, BA, DipAn, PhD, is Emeritus
Management, De Montfort University. He teaches Professor of Career Studies, De Montfort University.
Industrial Relations at undergraduate and postgradu- Her early career was in personnel management, and
ate level. Prior to his current appointment he was at she is now MCIPD. She was awarded a PhD for her
the Centre for Labour Market Studies, University of study of mid-career change; she has researched and
Leicester, working on the ESRC funded project published on career and lifespan studies, mentoring,
Learning to Work. He has written on non-union and the employment of older people. She has co-
employee representation and the management of man- editied (with Richard A. Young) two books on career
agerial careers in US-owned multinational companies. which reflect her questioning of traditional under-
standings of career and her commitment to
Ian Clark, BA, MA, PGCE, PhD, is Reader in interpretative research approaches. Now formally
Industrial Relations and HRM at Birmingham retired, she continues her writing on career for the
University. Ian has written extensively on industrial international academic readership, while also address-
relations and economic performance and the ing the relationship between theory and practice.
influence of the American business system on
HRM and industrial relations in the UK. Recognised Trevor Colling, BA, MA, LLM is Senior Lecturer in
both nationally and internationally as an expert Industrial Relations at the University of Warwick,
on Americanisation, in 2000 Ian published a having moved from De Montfort University in April
well-received monograph on the international 2005. He has written and published widely on public
relations of industrial relations. Together with former sector industrial relations, particularly the implications
colleagues at De Montfort, Ian recently completed a of privatisation and contracting out. More recently he
large ESRC and Anglo-German Foundation-funded has been researching and writing on employment
xvi
HUMA_C00.QXD 3/3/08 12:55 PM Page xvii
CONTRIBUTORS
practices of US multinationals and trade union roles in Routledge on employment relations in smaller firms
the enforcement of individual employment rights. and has been to the USA as a Visiting Professor to lec-
ture on entrepreneurship and gender issues.
Mike Doyle, BA, MA, is Principal Lecturer in
Human Resource Management, De Montfort Mike Noon, BA, MSc, PhD, is Professor of Human
University. He teaches on a range of postgraduate Resource Management at Queen Mary, University of
management programmes in the area of management London. He has previously researched and taught at
development and organisational change. His current Imperial College, London; Cardiff Business School;
research interests include the exploration of major Lancaster University; and De Montfort University. His
change initiatives in public and private sector organ- research interests include: the effects of work trans-
isations and the selection and development of middle formation on employees and managers; equality and
managers as ‘change agents’. discrimination; and contemporary developments in
HRM. He has published widely in academic journals,
Linda Glover, BA, MBA, PhD, is Principal Lecturer and his new books are: The Realities of Work (third
in Human Resource Management, De Montfort edition, 2006, co-authored with Paul Blyton, pub-
lished by Palgrave) and A Dictionary of Human
University. She teaches on undergraduate and post-
Resource Management (second edition, 2007, co-
graduate programmes and is involved in a number of
authored with Ed Heery, published by Oxford
research projects. Linda has managed industry-
University Press).
funded research projects that have been investigating
employee responses to quality management and Julia Pointon, BA, MA, PGCE, CIPD, is Principal
HRM. She has also worked with Olga Tregaskis and Lecturer in Organisational Behaviour and HRM in
Anthony Ferner on a CIPD-sponsored project exam- the Department of Human Resource Management at
ining the role of international HRM committees in De Montfort University. She teaches on a range of
transferring HR knowledge across borders within undergraduate and postgraduate courses and is
multinational companies. She has also collaborated Course Director of the MA in International Business
with Noel Sui of Hong Kong Baptist University on a and HRM and the MA in Personnel and
project examining the human resource issues associ- Development. She is a committee member of the
ated with the management of quality in the People’s CIPD National Upgrading Panel, serves on the CIPD
Republic of China and she has written on the human membership and Education Committee and is Chair
resource problems associated with managing the sub- of the CIPD branch in Leicester.
sidiaries of multinational companies.
Alan J. Ryan, BA, LLM, is a Senior Lecturer in the
Nicky Golding, BA, MSc, CIPD is a Senior Lecturer Department of HRM at De Montfort University. His
in Human Resource Management, De Montfort teaching is focused on the implications of legal
University. She lectures on a range of postgraduate change for the management of people at work and the
and post experience courses in the area of Strategic development of managerial responses to legislative
Human Resource Management and Learning & activity. He teaches courses at undergraduate and
Development. She has led and been involved in a postgraduate level as well as delivering courses and
range of consultancy projects in the public and pri- programmes to corporate clients. His research interest
lies in the development of soft systems analysis as a
vate sector, advising senior management teams on
way of understanding changes in managerial behav-
SHRM and the management of change. Her current
iour following the introduction of legislation. He has
research interests are in exploring the relationship
undertaken some consultancy work in both the pri-
between SHRM and organisational performance.
vate and the voluntary sector. He has written on
reward management, participation regimes in SMEs
Sue Marlow, BA, MA, PhD, is Professor of Small and the legal implications of flexibility.
Business and Entrepreneurship at De Montfort
University, Leicester. Sue has researched and pub- Amanda Thompson, BA, MA, CertEd, FCIPD, is
lished extensively in the area of small firms with a Principal Lecturer in Human Resource Management at
particular interest in women in self-employment, Leicester Business School, De Montfort University. She
labour management, employment regulation, and teaches gender studies at undergraduate level and leads
training. She has recently co-edited a book for modules in employee resourcing on both taught and
xvii
HUMA_C00.QXD 3/3/08 12:55 PM Page xviii
CONTRIBUTORS
distance learning postgraduate programmes. She is Montfort University. Her research interests include
also Programme Leader of the Postgraduate Diploma globalisation and its impact on economic develop-
in Personnel Management. Amanda is currently ment and social change; multinational corporations
involved in a research project with Professor Susan and international HRM; comparative industrial rela-
Marlow to explore labour management processes in tions and social movements; spatial globalisation,
medium-sized enterprises. urban processes and politics; and political economy
of India. She has worked in industry for a few years
Olga Tregaskis is a Senior Research Fellow in the and teaches on a range of undergraduate and post-
Department of Human Resource Management at De graduate management programmes.
Montfort University, having spent a number of years
working at Cranfield School of Management where Mairi Watson, LLB, LLM, MBA, PGCE, MCIM is a
she also attained her PhD. She has published journal Senior Lecturer in Organisational Behaviour and
articles and book chapters on international and com- Human Resource Management at De Montfort
parative HRM with a specific focus on organisational University. Mairi brings her previous professional
learning in multinational companies. Her research has experience as a senior manager in the Prison Service
attracted funding from international and national and as director of a management and leadership devel-
bodies including the European Union and Economic opment consultancy to her role. She teaches on a range
and Social Research Council (ESRC) and private of undergraduate, postgraduate and professional pro-
companies including the Charter Institute of Personnel grammes. Mairi’s research interests are managerial
and Development. perceptions of the process of change, organisational
experiences of learning and development and the ped-
Anita Trivedi, BA, MA, MSc, PhD, is a Lecturer in agogic impact of online learning. Mairi received a Vice
International Human Resource Management in the Chancellor’s Distinguished Teaching Award in 2006
Department of Human Resource Management, De from De Montfort University.
xviii
HUMA_C00.QXD 3/3/08 12:55 PM Page xix
Acknowledgements
Special thanks are due to the following reviewers, Table 1.5 is taken from HR survey: Where we are, where we’re
approached by the publishers, for their valued insightful heading, CIPD (2006), with the permission of the publisher,
and constructive comments that have helped shape the the Chartered Institute of Personnel and Development
contents of this present edition: London; Figure 2.1 and Table 2.9 from Contemporary
Strategy Analysis: Concepts, Techniques, Applications, 4/e,
Alhajie Saidy Khan, Keele University, UK Blackwell Publishing (Grant, R.M. 2002); Figure 2.2
Andrew Charlwood, University of Leeds, UK reprinted by permission of Harvard Business Review. From
Chris Rowley, Cass Business School, City University, London ‘Crafting Strategy’ by Mintzberg, H., July–August 1987.
David Bright, University of Hull, UK Copyright © 1987 by the Harvard Business School Publishing
Denise Thursfield, University of Hull, UK Corporation, all rights reserved; Figure 2.3 and Table 2.1
Geoff Tame, University of Northumbria, UK from What is Strategy and Does it Matter?, Thomson
James Richards, Herriot-Watt University, UK Learning (Whittington, R. 2001), p. 3 and p. 39; Table 2.2
John Geary, University College Dublin, Ireland from ACADEMY OF MANAGEMENT EXECUTIVE by
Marius Meyer, University of South Africa, SA SCHULER, R. & JACKSON, S. Copyright 1987 by ACAD-
Mats Ehrnrooth, Swedish School of Economics and Business EMY OF MANAGEMENT (NY). Reproduced with
Administration, Finland permission of ACADEMY OF MANAGEMENT (NY) in the
Mike Flynn, University of Wales Institute Cardiff, UK format Textbook via Copyright Clearance Center; Table 2.3
Nigel Bassett-Jones, Oxford Brookes University, UK from ACADEMY OF MANAGEMENT JOURNAL by
Roger Brown, Coventry University, UK DELERY J. & DOTY H. Copyright 1996 by ACADEMY OF
Sheila McCallum, Thames Valley University, UK MANAGEMENT (NY). Reproduced with permission of
Sue Hutchinson, Bath University, UK ACADEMY OF MANAGEMENT (NY) in the format
Vaughan Ellis, Glasgow Caledonian University & Sterling Textbook via Copyright Clearance Center; Figure 2.4 from
University, UK Human Resource Management, 4/e, Prentice Hall
(Torrington, D. and Hall, L. 1998); Figure 2.5 ACADEMY
We are grateful to the following for permission to reproduce OF MANAGEMENT REVIEW by WRIGHT, P.M. &
copyright material: SNELL, S.A. Copyright 1998 by ACADEMY OF MANAGE-
Figure 1.1 from Strategic Human Resource Management, John MENT (NY). Reproduced with permission of ACADEMY
Wiley (Fornbrun, C.J. et al. 1984); Figure 1.2 from Managing OF MANAGEMENT (NY) in the format Textbook via
Human Assets, Free Press (Beer, M. et al. 1984); Table 1.1 from Copyright Clearance Center; Table 2.4 reprinted by permis-
New Perspectives on Human Resource Management, Thomson sion of Harvard Business School Press. From Competing for
Learning (Storey, J. 1989); Figure 1.3 from Boxall, P. and the future by Hamel, G. and Prahalad, C. Boston, MA 1994,
Purcell, J., Strategy and Human Resource Management, pp. 217–18. Copyright © 1994 by the Harvard Business
2003, Palgrave Macmillan reproduced with the permission School Publishing Corporation, all rights reserved; Table 2.5
of Palgrave Macmillan; Table 1.3 is taken from Improving reprinted by permission of Harvard Business School Press.
health through human resource management: a starting point From The Human Equation: Building Profits by Putting
for change, Hyde, P., Boaden, R., Cortvriend, P., Harris, P., People First by Pfeffer, J., Boston, MA 1998. Copyright ©
Marchington, M., Pass, S., Sparrow, P., and Sibald, B. (2006), 1998 by the Harvard Business School Publishing
with the permission of the publisher, the Chartered Institute Corporation, all rights reserved; Table 2.7 reprinted by per-
of Personnel and Development, London; Table 1.4 from ‘Role mission of Sage Publications Ltd from Wall, T.D. and Wood,
Call’, in People Management, 16 June 2005, CIPD (Ulrich, D. S.J., ‘The romance of human resource management and
and Brockbank, W. 2005) with permission from D. Ulrich business performance, and the case for big science’, in
and W. Brockbank; Figure 1.4 from ‘Commonalities and con- Human Relations, Vol. 58, No. 4. Copyright (© Sage
tradictions in HRM and performance research’, in Human Publications Ltd, 2005); Table 2.8 from Strategic Human
Resource Management Journal Vol. 15 No. 3, Blackwell Resource Management: A Guide to Action, 2/e, Kogan Page
Publishing (Boselie, et al. 2005) adapted from Strategic Becker & G (Armstrong, M. and Baron, A. 2002), adapted
human resource management and performance and intro- from Measures that Matter, Ernst & Young (Ernst & Young
duction in The International Journal of Human Resource 1997) with the permission of Ernst & Young; Chapter 4,
Management, Vol. 8 No. 3, http://www.tandf.co.uk/journals, Activity, p. 126, table from Census 2001, ONS (ONS, 2001)
Taylor & Francis Ltd (Paauwe, J. and Richardson, R. 1997); reproduced under the terms of the Click Use Licence;
xix
HUMA_C00.QXD 3/3/08 12:55 PM Page xx
ACKNOWLEDGEMENTS
Figure 4.1 from UK Snapshot 2005, www.statistics.gov.uk and Development, CIPD (2005). with the permission of the
reproduced under the terms of the Click Use Licence; publisher, the Chartered Institute of Personnel and
Figure 4.2 from SCER Report 1 – Understanding the Labour Development, London; Figure 9.5 from Effective Coaching:
Market, Scottish Centre for Employment Research, Lesson’s from the Coach’s Coach, South-Western (Downey, M.
University of Strathclyde (Scottish Centre for Employment 2003); Table 10.1 from Management development for the
Research 2001); Table 4.1 from Labour Force Survey, Spring individual and the organisation in Personnel Mangement,
2004, ONS (ONS, 2004) reproduced under the terms of the June, CIPD (Burgoyne, J.G. 1988) with the permission of
Click Use Licence; Table 4.2 from Sex and Power: Who Runs Dr J.G. Burgoyne; Table 13.1 adapted from New Earnings
Britain?, Equal Opportunities Commission, www.eoc. Surveys, HMSO (HM SO 1993-1997) reproduced under the
org.uk (Equal Opportunities Commission 2006); Table 4.3 terms of the Click Use Licence; Figure 13.2 from
from Ethnic Penalties in the Labour Market: Employers http://ollie.dcccd.edu reproduced with permission of Janet
and Discrimination, DWP Research Report No. 341, HMSO Caldwell-Cannedy, Director of Communications, Blue Rain
(Heath, A. and Cheung, S.Y. 2006) reproduced under Gallery; Figure 14.1 from New Developments in Employee
the terms of the Click Use Licence; Table 4.4 and 4.5 Involvement, Department of Employment Research Series
from Working Futures: New Projections of Occupational No. 2, HMSO (Marchington, M. et al. 1992) reproduced
Attainment by Sector and Region 2002-2012, Vol. 1: National under the terms of the Click Use Licence; Table 14.1
Report, Institute for Employment Research, University of reprinted by permission of Sage Publications Ltd from
Warwick (Wilson, R., Homenikou, K. and Dickerson, A. Hyman, J. and Mason, B., Managing Employee Involvement
2004); Table 4.6 from The Rise and Decline of Job Insecurity, and Participation, Copyright (© Sage Publications Ltd,
Department of Economics Discussion Paper, Kent 1995); Table 14.4 and 14.5 adapted from All Change at
University (Green, F. 2004); Figure 5.1 is taken from Human Work?: British Employment Relations 1980–1998, as por-
Resource Planning, Bramham, J. (1994), with the permission trayed by the Workplace Industrial Relations Survey series,
of the publisher, the Chartered Institiute of Personnel Routledge (Millward, N. et al. 2000); Table 14.6 from
and Development, London; Figure 5.2 is taken from ‘Bouquets, brickbats and blinkers: TQM and employee
Recruitment, retention and turnover 2005, CIPD (2005), with involvement in practice’, Organizational Studies, Vol. 18
the permission of the publisher, the Chartered Institute of No. 5, Walter de Gruyter (Wilkinson, A. et al. 1997) with
Personnel and Development, London; Figure 5.5 adapted permission of G. Godfrey; Table 16.1 from ‘Human
from ‘Human resource planning’ (Rothwell, S.) in Human resources in the People’s Republic of China: the “three sys-
Resource Management: A Critical Text, Routledge (Storey, J. tems reforms”’, in Human Resource Management Journal,
(ed.) 1995); Figure 5.6 from A Handbook of Human Vol. 6, No. 3, Blackwell Publishing (Warner, M. 1996); Table 16.2
Resource Management Practice, Kogan Page Becker & G and 16.3 from ‘Re-inventing China’s industrial relations at
(Armstrong, M. 2005); Table 6.1 from Recruitment and enterprise level: an empirical field-study in four major
Selection, Advisory Booklet No. 6, Advisory, Conciliation cities’, in Industrial Relations Journal, Vol. 30, No. 3,
and Arbitration Service (ACAS 1983); Figure 6.2 from Blackwell Publishing (Ding. Z. and Warner, M. 1999);
Successful Selection Interviewing, Blackwell (Anderson, N. Figure 17.2 from Schuler, R., Dowling, P. and De Cieri, H.,
and Shackleton, V. 1993) with permission of Professor Neil ‘An integrative framework of strategic international human
Anderson; Table 6.2 is taken from Recruitment, retention resource management’, Journal of Management (Vol. 19,
and turnover 2005, CIPD (2005), with the permission of the No. 2) pp. 419–459, copyright 1993 by Sage Publications,
publisher, the Chartered Institiute of Personnel and reprinted by permission of Sage Publications Inc.; Table 17.2
Development, London; Table 6.3 is taken from Recruitment from ‘Strategic human resource management: a global per-
on the Internet, CIPD (2002), with the permission of the spective’ (Adler, N. and Ghadar, F.) in Human Resource
publisher, the Chartered Institute of Personnel and Management: An International Comparison, Walter de
Development, London; Table 6.4 is taken from Recruitment, Gruyter (Pieper, R. 1990). John Wiley & Sons Inc., for
retention and turnover 2005, CIPD (2005), with the permis- extracts from ‘On Becoming a Strategic Partner: The Role of
sion of the publisher, the Chartered Institute of Personnel Human Resources in gaining Competitive Advantage’, by
and Development, London; Table 6.5 is taken from Barney J.B. and Wright P.M, published in Human Resource
Recruitment, retention and turnover 2005, CIPD (2005), Management, Vol. 37, no. 1, 1998 and Effective Mentoring
with the permission of the publisher, the Chartered Institute and Teaching, Jossey-Bass (Daloz, J.A. 1986). Reprinted with
of Personnel and Development, London; Figure 8.1 from the permission of John Wiley & Sons, Inc.; DDB London
‘Design for learning in management training and develop- for an extract from John Webster’s 1985 advertisement
ment: a view’, in Journal of European Industrial Training, Vol. 4, for the Guardian; The Guardian for extracts from; ‘Stuck on
No. 8, MCB University Press (Binsted, D.S. 1980); Table 9.1 the “mummy track” – why having a baby means lower
from www.bibb.de; Figure 9.3 is taken from Building a pay and prospects’, by Patrick Barkham, published in
training and development strategy, Mayo, A. (2000), with the the Guardian, 20 January 2006 Copyright Guardian
permission of the publisher, the Chartered Institute of Newspapers Limited 2006 and ‘Chill enters cosy German
Personnel and Development (www.cipd.co.uk), London; Boardroom’ by David Gow, published in the Guardian, 25
Figure 9.4 is taken from Annual Survey report 2005 Training October 2004 Copyright Guardian Newspapers Limited 2004;
xx
HUMA_C00.QXD 3/3/08 12:55 PM Page xxi
ACKNOWLEDGEMENTS
The Independent for an extract from ‘Systematic Racism M@n@gement, Professor Andreas Georg Scherer and William
At Car Plant Was Ignored By Ford’, published in The McKinley; The Economist for an extract from ‘Mitsubishi
Independent, 24 September 1999; The Employers company man’ published in The Economist 9 December
Organisation for an extract from Local government 1995 © The Economist Newspaper Limited; The Nikkei
workforce profile and the top ten skills shortage areas – 2005: Weekly for their kind permission to reproduce an extract
national recruitment and retention initiatives, reproduced from The Nikkei Weekly special issue 6 March 2006.
with kind permission from the IDeA (Improvement and
Development Agency); The Chartered Institute of We are grateful to the Financial Times Limited for permission
Personnel and Development for an extract from The CIPD to reprint the following material:
Learning and Development Generalist Standard: CIPD
Practitioner-Level Professional Standards, reproduced with Box 2.5: ‘Moving the goalposts’, © Financial Times, 19 April
the permission of the Chartered Institute of Personnel and 2006; and ‘American to review bonus strategy’, © Financial
Development, 151 The Broadway, London, SW19 1JQ; Times, 26 January 2006; Chapter 3 Case Study: ‘Awkward
Investors in People UK for an extract about Wealden squad promises a rough ride at Blackpool’, © Financial
District Council, reprinted with the kind permission of Times, 9 September 2002; Part 1 Case Study: ‘Human
Investors in People; The Institute of Administrative resources departments are unloved but not unnecessary’, ©
Management for an extract from Employee Engagement by Financial Times, 18 April 2006; Chapter 8 Case Study (1):
Woodruffe, C., published in the British Journal of ‘Growing pains let change blossom’, © Financial Times, 25
Administrative Management January 2006, 50, 28–29; March 2006; Chapter 8 Case Study (2): ‘GE’s corporate boot
Melcrum Publishing for an extract from ‘Harley-Davidson’, camp cum talent spotting venue’, © Financial Times, 20
Scott et al published in the Strategic HR Review, Jan/Feb March 2006; Chapter 12 Case Study: ‘Fears about job
2006, 5, 2, 28–31. www.melcrum.com; Management destruction proved to be unfounded’, © Financial Times, 30
Journal and the authors; Cornelia Kothen, William September 2005.
McKinley and Professor Andreas Georg Scherer, for an
extract from Alternatives to organizational downsizing: In some instances we have been unable to trace the owners
a German case study, published in M@n@gement, Vol. 2, of copyright material, and we would appreciate any infor-
No. 3 (special issue), reproduced with kind permission from mation that would enable us to do so.
xxi
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