Key Concepts in Human Resource Management is an essential guide to the theories and issues that define the field - from the critical debates to the more practical considerations that every student should be aware of 52 short and snappy entries will serve to orientate the student round the need-to-know essentials Entries include: • This accessible text would be ideal for undergraduate or MBA students of Human Resources Management and Managing in Organizations MARTIN Employment Tribunals, Benefits, Corporate Social Responsibility, Discipline and Grievance, Control, Employee Relations, Incentive Schemes, Motivation, Organizational Culture, Strategic HRM, Victimisation • A range of relevant HR applications for each term • A selection of recommended readings SAGE key concepts key concepts With the proliferation of terms in use, Key Concepts in HRM should become an indispensible guide providing readers with both a concise defintion as well as the key debates within the topic areas The cross referencing of topics is a particularly helpful feature Students should find this book extremely useful as a foundation to ensure they understand core themes which they can refer back to when preparing assignments or revising for examinations Pam Stevens, Senior Lecturer in Organizational Behaviour and HRM, Nottingham Business School Human Resource Management Key Concepts in HRM is a book which takes students straight to the heart of HRM with comprehensive yet concise explanations of the concepts that matter for HR practitioners An essential reference guide for a quick overview of all facets of the subject Dr David Banner, Principal Lecturer in Management Development, University of Westminster SAGE Key Concepts in Human Resource Management key concepts T he SAGE Key Concepts series provides students with accessible and authoritative knowledge of the essential topics in a variety of disciplines Cross-referenced throughout, the format encourages critical evaluation through understanding Written by experienced and respected academics, the books are indispensable study aids and guides to comprehension Key Concepts in Human Resource Management JOHN MARTIN John Martin is a freelance lecturer, consultant and writer and a Fellow of the Universtiy of Hull martin_kc_HRM_aw.indd 21/6/10 13:37:13 Martin-4019-Prelims:Okitikpi Prelims.qxp 09/04/2010 10:25 AM Page i Key Concepts in Human Resource Management Martin-4019-Prelims:Okitikpi Prelims.qxp 09/04/2010 Recent volumes include: Fifty Key Concepts in Gender Studies Jane Pilcher and Imelda Whelehan 10:25 AM Page ii Key Concepts in Political Communication Darren G Lilleker Key Concepts in Medical Sociology Jonathan Gabe, Mike Bury and Mary Ann Elston Key Concepts in Teaching Primary Mathematics Derek Haylock Key Concepts in Leisure Studies David Harris Key Concepts in Work Paul Blyton and Jean Jenkins Key Concepts in Critical Social Theory Nick Crossley Key Concepts in Nursing Edited by Elizabeth Mason-Whitehead, Annette McIntosh, Ann Bryan and Tom Mason Key Concepts in Urban Studies Mark Gottdiener and Leslie Budd Key Concepts in Mental Health David Pilgrim Key Concepts in Childhood Studies Allison James and Adrian James Key Concepts in Journalism Studies Bob Franklin, Martin Hamer, Mark Hanna, Marie Kinsey and John Richardson Key Concepts in Public Relations Bob Franklin, Mike Hogan, Quentin Langley, Nick Mosdell and Elliot Pill The SAGE Key Concepts series provides students with accessible and authoritative knowledge of the essential topics in a variety of disciplines Cross-referenced throughout, the format encourages critical evaluation through understanding Written by experienced and respected academics, the books are indispensable study aids and guides to comprehension Martin-4019-Prelims:Okitikpi Prelims.qxp 09/04/2010 10:25 AM Page iii JOHN MARTIN Key Concepts in Human Resource Management Martin-4019-Prelims:Okitikpi Prelims.qxp 09/04/2010 10:25 AM © John Martin 2010 First published 2010 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may be reproduced, stored or transmitted in any form, or by any means, only with the prior permission in writing of the publishers, or in the case of reprographic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency Enquiries concerning reproduction outside those terms should be sent to the publishers SAGE Publications Ltd Oliver’s Yard 55 City Road London EC1Y 1SP SAGE Publications Inc 2455 Teller Road Thousand Oaks, California 91320 SAGE Publications India Pvt Ltd B 1/I Mohan Cooperative Industrial Area Mathura Road New Delhi 110 044 SAGE Publications Asia-Pacific Pte Ltd 33 Pekin Street #02-01 Far East Square Singapore 048763 Library of Congress Control Number: 2009938116 British Library Cataloguing in Publication data A catalogue record for this book is available from the British Library ISBN 978-1-84787-330-9 ISBN 978-1-84787-331-6 (pbk) Typeset by C&M Digitals (P) Ltd, Chennai, India Printed in India at Replika Press Pvt Ltd Printed on paper from sustainable resources Page iv Martin-4019-Prelims:Okitikpi Prelims.qxp 09/04/2010 10:25 AM Dedicated to Val, Orla, Lily, Phoebe, Jake and Nathan Page v Martin-4019-Prelims:Okitikpi Prelims.qxp 09/04/2010 10:25 AM Page vi Martin-4019-Prelims:Okitikpi Prelims.qxp 09/04/2010 10:25 AM Page vii contents 10 15 21 25 31 36 41 47 53 59 64 69 74 79 85 91 95 100 107 112 117 124 129 134 140 144 149 154 159 164 169 174 contents Introduction Absence Management Assessment/Development Centre Balanced Business Scorecard Behaviour Management Benchmarking Benefits Bullying and Harassment Career Management Competency Compliance/Commitment Contract of Employment Counselling, Coaching and Mentoring Data Protection Discipline and Grievance Discrimination, Diversity and Equality Downsizing, Reorganisation, Outsourcing and Redundancy Employee Assistance Programme Employee Communication and Consultation Employee Development Employee Empowerment and Engagement Employee Relations and Conflict Expatriation and International Management Flexibility Human Resource Management (HRM) and Personnel Management (PM) High Performance Working Human Capital Human Resource Planning Incentive Schemes Interview Job, Job Analysis and Job Design Job Evaluation Knowledge Management Labour Turnover vii key concepts in human resource management Martin-4019-Prelims:Okitikpi Prelims.qxp viii 09/04/2010 10:25 AM Page viii Learning Organisation Management Development Negotiation Organisational Culture Organisational Development (OD) and Change Organisational Structure Performance Appraisal Performance Management Psychometric and Other Tests Quality of Working Life and the Psychological Contract Resourcing/Retention Reward Management Statutory Bodies (ACAS; Central Arbitration Committee (CAC); Employment Tribunals; Health and Safety Executive (HSE); Equality and Human Rights Commission (EHRC); Low Pay Commission) Strategic HRM Succession Planning and Talent Management Teamworking Total Reward Trade Union/Employee Representation Wage Structure 179 185 190 195 200 205 211 217 221 226 233 238 Index 283 244 252 257 261 267 273 278 Martin-Introduction:Martin-Introduction 09/04/2010 10:33 AM Page I n t r od u c ti o n Key Concepts in Human Resource Management offers an important guide to making the most of, and extending your understanding of the key concepts in your human resource management (HRM) course It will provide you with essential help designed to enhance your understanding in line with your course requirements The book should be used as a supplement to your HRM textbook and lecture notes You should read the relevant entries in parallel with your course lectures and wider reading and note where each topic is covered in both the syllabus and this book Ideally, you should buy this book at the beginning of your HRM course – it will provide you with a brief explanation of any topics you are having trouble with, and of course its value in revising for assignments and exams should not be underestimated! This Key Concepts book is intended to: introduction • Provide you with a summary of key concepts that will facilitate your understanding of them when they are encountered in lectures and tutorials • Provide you with a summary of key concepts that will facilitate your understanding of textbooks and the associated wider reading • Identify which key concepts are primarily associated with each other through the ‘See also’ feature • Identify significant recommended reading and references for each key concept discussed • Save you time when you are preparing for seminars and tutorials by providing key information on the main terms that you would be expected to know and use • Save you time when you are preparing coursework by providing summary information on key terms that you would be expected to know and use • Save you time when you are revising for exams by providing a ready source of material in relation to HRM key concepts • Provide a framework to organise the most important HRM points from textbooks, lecture notes, and other learning materials key concepts in human resource management Martin-CH-W:Martin-CH-W 282 09/04/2010 10:32 AM Page 282 • Pay curves The output from salary surveys is a series of pay curves or tables of salary data categorised by job level and pay Pay curves are, as the name suggests, graphs usually with job magnitude along the X axis and money on the vertical Y axis The actual curves would usually include decile curves (usually 10% and 90%) as well as the median (one measure of average or midpoint) and the quartile (25% and 75%) curves as well These curves then provide the ability to map company intentions and plans on to the market data as part of its salary planning The two most common internal company pay curves that would be included would be the pay policy line – representing the company intentions in relation to what it regards as the most appropriate ‘intended’ company pay line relative to the marketplace – and the pay practice line – the average actual pay for each wage band paid by the company (which may or may not be the same as the policy line perhaps because the company operates a performance-based salary system and the actual levels of pay may be higher or lower than the policy line) The implications arising from the range of pay curves charted can then be assessed and taken into account at the next pay round in terms of where money is targeted and distributed around the wage structure based on company intentions, market conditions, and other factors that need to be incorporated into such planning • Equal value This aspect of wage structure planning is vital and in essence quite simple in its intention and approach Legislation requires that pay systems should not discriminate on the basis of gender (Armstrong and Stephens, 2005: Chapters 11 and 12) Among the issues that impact on wage systems is the need to demonstrate that pay, the basis of job measurement, and the salary management practices operated by the company not discriminate It is suggested that organisations should carry out equal pay reviews of their reward systems regularly – perhaps every four years See also: benchmarking; benefits; competency; contract of employment; employee relations and conflict; expatriation and international management; Human Resource Management (HRM) and Personnel Management (PM); high performance working; incentive schemes; job, job analysis and job design; job evaluation; negotiation; performance appraisal; performance management; reward management; strategic HRM; total reward; trade union/employee representation BIBLIOGRAPHY Armstrong, M and Stephens, T (2005) A Handbook of Employee Reward Management and Practice London: Kogan Page Martin-Index:Martin-Index.qxp 09/04/2010 10:33 AM Page 283 index B balanced business scorecard areas of measurement 15 benefits 16 identifying what to measure 18–19 HR implications of 19–20 human capital and 141 potential problems with 17–18 reasons to implement 16 balanced business scorecard cont steps in using 16–17 success factors 18 total quality management and 16 behaviour management behavioural modification 23 conditioning in 22 disciplinary procedures in and role of 21, 24 group dynamics in 21 organisations levers for achieving 24–25 organisational structure in 21 job descriptions in 21 management control in 23 reinforcement in 22–23 rewards, role of 24 social engineering 23 supervision and management role in 21 Belbin’s team roles and diversity 83, 265–266 benchmarking appropriate comparisons and 27 basis of exchanging information 28 best in class, in 25, 29 best practice and 29–30 change and 27 continuous improvement, in 26 HRM areas for 28–29 labour turnover and 30 limits of 29 performance, meaning of 25 process of 26–27 productivity and 30 types of 26 benefits clean pay, consequences of 32–33 flexible (cafeteria) approach, advantages and disadvantages 33–4 flexible (cafeteria) approach, frequency of change 34 reasons for 31 relational 32 index A absence management absence, reasons for measuring 5–7 strategy development 7–absence policies – employee rights and obligations 8–9 presenteeism wellness management ACAS role in employee relations and conflict 115 responsibilities of 244 services offered through 245 action plan for data management 72 alienation compliance and commitment links with 57–58 empowerment and engagement links with 108–109 arbitration in employee relations and conflict 116 aspect knowledge 170 assessment/development centre competitiveness and co-operation in 14 design of 11 employee development and 103 management development and 189 scoring 13 tasks included 13–14 tools 12 validity 13 attitude and opinion surveys 201, 237 283 Martin-Index:Martin-Index.qxp 09/04/2010 10:33 AM key concepts in human resource management benefits cont reward management and 242–243 salary sacrifice schemes 33 tax implications of 35 total reward and 31 transactional 31 types of 32 best practice and benchmarking 29–30 Bradford factor 6–7 broad or narrow banded pay structures 279 bullying and harassment consequences of 37 dealing with 39–40 examples of 37–38 legislative provision 38–39 mobbing 36 resolution processes 40 bureaucracy 208 marketplace bureaucracy and groups 263 284 C capitalism, compliance and commitment 54–55 career management flexibility and career breaks 127 components of 43 high performance organisation and 45 individual benefits of 44 individual perspective on 42 individual strategies for 45–46 management development and 189 organisational benefits of 44 organisational perspective on 42 planning lead responsibility 44 principles underpinning provision 42–43 retention strategies and 237 risk assessment in labour turnover 175 case law and employment contracts 60 Central Arbitration Committee (CAC) role of 245–246 procedures for claims 246–247 Certification Officer, responsibilities 273–274 change and benchmarking 27 changing the contract of employment 61 Page 284 classical management theory 208 clean pay, consequences of 32–33 coaching characteristics of 66 management development and 188 code of practice on employment data management 73 cohort analysis in labour turnover 174–175 collective bargaining 112, 190 commitment and the quality of working life 230 common law obligations 60–61 communication and consultation 95–100 competency skill or competency based pay progression 281 contribution benefits 51–52 development activities and 104 HR core competencies 48–50 interviews based on 155 knowledge management and 170 learning organisation and 181 meaning of 48 NVQ, SNVQ framework 50–51 organisational focus 47 performance appraisal and 213 popular competency terms 51 skill and 47–48 weaknesses and criticisms of 52–53 competency based pay 279 compliance/commitment alienation and 57–58 capitalism and 54–55 commitment, why seek 56 compulsory sociability 58–59 conflict 55 going beyond the contract 55 high performance working and 53–54 manufacture of consent, in 57 organisational expectations of employees 58 performance and 220 power balance and control 55 psychological contract and 53–54 public, voluntary sectors and 55 compressed working week 127 compulsory sociability 58–59 Martin-Index:Martin-Index.qxp 09/04/2010 Page 285 culture achieving a diversity 84–85 high performance working and 137 organisational culture 195–199 cultural web 196 custom and practice and employment contracts 61 customer perspectives in the balanced business scorecard 15 D data protection action plan for data management 72 code of practice on employment data management 73 employment based data 70 individual rights to request data held 72 legislative basis for 69 monitoring employee behaviour and use of facilities 73 principles of data handling 69–70 registration with data commissioner 70 rights of data subjects 71–72 derecognition of a trade union 275 discipline and grievance approaches to discipline 75–76 absence and appeal against a grievance outcome 79 behaviour management, and 21, 24 dismissal 76 employment appeal tribunal 78 employment tribunal and 77–78, 247–248 fair dismissal reasons 77 final written warning stage 76 formal hearing 78 grievance procedure stages 78–79 informal hearing 78 interview uses in 157–158 process requirements 77 reasons for doing the wrong this at work 74–75 unfair dismissal remedies 78 verbal warning 76 written warning 76 discretionary employee behaviour 109 index conciliation 115 conditioning behaviour management and 22–23 incentive scheme design and 150–151 conflict compliance and commitment and 55 empowerment and engagement and 111 negotiation, ways to minimising and 192 resistance to management control and 111 consultation and communication 95–100 contingency model of structure 209 contingent pay 267 continuous improvement in benchmarking 26 contract of employment case law and 60 changing the contract 61 common law obligations 60–61 contract of service 60, 62 contract for services 60 custom and practice and 61 employee and worker rights 60 employment tribunals and 60 expressed terms in 61 implied terms in 62 incorporated terms in 62 psychological contract and 62–63 questions to determine employed status 62 statute law and 61 terms in a 62 core and peripheral workers 124 counselling and employee assistance programmes 92 counselling, coaching and mentoring basis for organisational provision 64–65 benefits of counselling 65 benefits of mentoring 67 characteristics of coaching 66 characteristics of mentoring 66 HR requirements in developing mentoring 68 management development and 188 mentoring process 67–68 10:33 AM 285 key concepts in human resource management Martin-Index:Martin-Index.qxp 286 09/04/2010 10:33 AM discrimination, diversity and equality achieving a diversity culture 84–85 direct discrimination 80 diversity management 81 Belbin’s team roles and 83 individual difference and 82–83 organisational criteria for 84 organisational implications of 82 employment equality areas 80 equal opportunity legislation intentions 81 Equality and Human Rights Commission (EHRC) 250–251 indirect discrimination 80 job evaluation and 164 organisational approaches to 83–84 positive action 82 positive discrimination 80, 82 types of discrimination 80–81 victimisation 81 diversity, equality and discrimination 79–85 double, single and triple loop learning in the learning organisation 181 downsizing, reorganisation, outsourcing, and redundancy alternatives to downsizing 86 downsizing purpose 87 HR role in downsizing and productivity 86 outsourcing 88 benefits of 88 potential problems with 88–89 reorganisation, methods for achieving 87–88 business process re-engineering (BPR) 87 business restructuring 88 organisational development (OD) 87–88 systems approaches 88 work study and 87 redundancy 89–90 employment tribunal and 90 policy areas involved 89–90 reasons for 89 selection criteria for 90 reorganising possibilities include 86–87 survivor syndrome and 90 Page 286 E employee and worker rights under the contract of employment 60 employee assistance programme benefits from 93 confidentiality and 92 counselling and 92 issues covered by 91 justification for 92–93 provider selection criteria 94–95 role of provider 93 success criteria 93–94 employee communication and consultation consultation legislative basis for 98 consultation purposes 98 consultation provision requirements 99 consultation information areas 99 employee communication strategy requirements 97–98 European level legislation requirements 98 informal communication networks 96 managing formal communication processes 96–97 objectives for employee communication 97 purposes of formal communication 96 reasons for refusing information or consultation 99 employee development assessment/development centres in 103 budget constraints in 104 choices in the planning of 103–104 competence in 104 evaluation of 105–106 government role 101 hypercompetition influence on 101 model of, stages in 102 performance appraisal in 103 psychological contract and 100 relational rewards and 268 retention and 237 return on investment 105 single, double and triple loop learning in the learning organisation 181 Martin-Index:Martin-Index.qxp 09/04/2010 Page 287 employee voice 108 employee relations, conflict and 113, 116 employer of choice as a retention strategy 238 employment contract employment appeal tribunal 78 employment tribunals employment contract and 60 discipline and 77–78 procedures for claims 247–248 redundancy and 90 role of 247 encounter groups 201 equal value, discrimination, job evaluation and pay 164, 282 Equality and Human Rights Commission (EHRC) procedure for claims 251 remit of 250 role in relation to HR 250–251 equality, diversity and discrimination in employment 79–85 European influences in employee relations 113 expatriation and international management checks before adopting 118–119 information for employee 119–120 inpatriation 123 justification for 118 potential partner problems 121–122 preparation of family for 122 repatriation 122–123 reward design 120–121 types of 117–118 written statement, requirement for 119 explicit knowledge 170, 171, 180 expressed terms in the employment contract 61 extrinsic motivation and reward 149, 220 F financial perspective, in balanced business scorecard 15 financial participation and profit share in empowerment and engagement 108 index employee development cont strategic links with 101–102, 104 traditional view of cost 101 training needs 102 triggers for 102 employee empowerment and engagement alienation and 108–109 benefits to employee 107, 110, 268 conflict and 111 delegation and 107 dimensions of engagement 109 discretionary behaviour and 109 employee engagement 109 empowerment, brought about by 110 engagement, development of 109–110 financial participation and profit share 108 high performance working and 108 involvement and participation 108 performance management and 110 mistakes, toleration of 110 organisational citizenship and 109 purpose of 107 resistance to management control and 111 value to the organisation 107, 110 voice and 108 employee relations and conflict ACAS role in 115 arbitration in 116 benefits from involvement and high performance working 113–114 collective bargaining and 112 conciliation in 115 European influences 113 high performance working and 116 HR areas involving 115 industrial action and 116 influences on performance 220 involvement, employee in 116 manufacture of consent 116–117 mediation in 116 pressure and power in 115 retention strategies and 237 social partnerships in 113, 114 styles of employee relations 112–113 trade union recognition and 114 voice in and barriers to 113, 116 10:33 AM 287 Martin-Index:Martin-Index.qxp 09/04/2010 10:33 AM key concepts in human resource management financial flexibility 126 flexibility career breaks 127 compressed working week 127 core and peripheral workers 124 flexible firm model 124–125 causes for concern 125 financial flexibility 126 functional flexibility 124, 126 locational flexibility 126 numerical flexibility 125 options for include 127 part-time contracts and 126–127 temporal flexibility 126 types of 125–126 work-life balance and 126–127 flexible (cafeteria) approach to benefits 33–4 frequency rate functional flexibility 124, 126 functional job analysis 160 288 G grievance procedure stages 78–79 group development model 264–265 group dynamics 265 group dynamics in behaviour management 21 group norms H half-life analysis in labour turnover 175 halo or horns effect 157 Hawthorne studies 263–264 Health and Safety Executive enforcement through 250 legal obligations on employers 248–249 penalties for breaches of 249 purpose of 248 risk assessment and 249–250 high performance organisation and career management 45 high performance teams 261 high performance working benefits from 113–114 characteristics of 134–135 compliance and commitment and 53–54 culture and 137 Page 288 high performance teams cont egalitarianism and 136 employee relations and conflict and 116 empowerment and engagement and 108 features of 137 financial viability 139 HR practices important for 135, 137–139 knowledge development 136 performance and 220–221 performance reward links with 136 policies should embrace 135 principles that underpin 136 quality of working life and 229–232 shared information in 136 HR and international talent management 260 HR areas involving employee relations and conflict 115 HR core competencies 48–50 HR implications of the balanced business scorecard 19–20 HRM (Human Resource Management) and personnel management adviser role 133 basis for 131–132 change maker role 133 feminisation of the workforce and 129 handmaiden role 133 models of 130–131 planning and 146 regulator role 133 roles for 132–133 role of line manager and relationship with 131, 132–133 trade unions and 129 HRM topics suitable for benchmarking 28–29 HR involvement in change 204 HR practices important for high performance working 135, 137–139 HR role in downsizing, redundancy and productivity 85–90 human capital balanced business scorecard and 141 calculating 140 data for 140–141 Martin-Index:Martin-Index.qxp 09/04/2010 human capital cont internal and external reporting of 142–143 principles underpinning 142–143 knowledge management and 162 links between strategic HRM and 256 stakeholder interest in 141–142 steps in preparing information 143 human resource planning basic question include 144 current approaches to 146 HRM and 146 links with business planning and strategy 147 outcome of HR planning 147–148 purpose of 144–145 traditional approach to 145 trend and data areas relevant to 146–147 Page 289 interview appraisal uses of 158 approaches to 155–156 bias or stereotyping 157 cultural noise 157 discipline and grievance uses of 157–158 ground rules for employment uses of 156–157 halo or horns effect 157 problems with 157 provides opportunity for individual to 154 provides opportunity for organisation to 154–155 types of 155 intrinsic motivation and reward 149, 220 involvement and participation 108 benefits from 113–114 employee relations and conflict in 116 J job, job analysis and job design absence, and approaches to job design job enlargement 162 job enrichment 162–163 job rotation 162 simplification and job engineering 161 socio-technical approach to job design 163 factors influencing job design 161 forms of job enrichment 162 functional job analysis 160 HRIS and 161 influence on performance 219 job characteristics model 163 job design as a retention strategy 237 job, meaning of 159–160 job analysis 160–161 position analysis questionnaire 161 quality of working life and 227 task inventory analysis 161 job characteristics model 163 job descriptions and behaviour management 21 index I incentive schemes absence and extrinsic motivation 149 intrinsic motivation 149 motivation theory and 149 reinforcement of behaviour and 150–151 negative reinforcement 150 omission 150 positive reinforcement 150 punishment 150–151 reward management and 240 scheme design decisions 152–154 types of incentive scheme 151–152 induction crisis and labour turnover 177 induction as a retention strategy 236–237 industrial action 116 informal and formal groups 263 innovation and learning perspectives in the balanced business scorecard 15 inpatriation 123 implied terms in the employment contract 62 incorporated terms in the employment contract 62 internal business perspectives in the balanced business scorecard 15 10:33 AM 289 Martin-Index:Martin-Index.qxp 09/04/2010 10:33 AM key concepts in human resource management job enlargement 162 job enrichment 162–163 job evaluation analytical methods analytical factor comparisons 165 points rating 164–165 benchmark jobs 167 computers in 166 equal value, discrimination and 164 factor weighting 167 links to payment systems 164 market pricing 166 non-analytical methods job classification 165 job ranking 165 paired comparisons 166 proprietary schemes 165–166 reward management, links to 168, 241–242 salary structure links, to 168 stages in points rating scheme development 166–168 job rotation 162 290 K knowledge architects 170 knowledge aware people 171 knowledge facilitators 171 knowledge management approaches to best practice approach 171 congruence approach 172 human and social capital approach 172 knowledge work approach 171–172 learning approach 172 aspect knowledge 170 competence and 170 competitor intelligence 171 data and 170 development in high performance working 136 explicit knowledge 170, 171 information paths and 169 intention of 170 knowledge as a commodity 171 organisational context and 169–170 organisational roles based on 170–171 Page 290 knowledge management cont power and 171 process perspective on 170 separating data form knowledge 169 strategies for 172 structuralist perspective on 170 tacit knowledge 170, 171 trust and competitive trust 173 goodwill trust 173 wisdom and 170 L labour turnover benchmarking and 30 cohort analysis 174–175 costing labour turnover 177–178 exit interviews in 177 half-life analysis 175 induction crisis and 177 reasons people leave 176–177, 236 risk assessment in 175 simplest measure 174 stability index 174 when is it a problem 177 learning organisation characteristics of 180, 183–184 competence and 181 criticisms of 180–181 explicit and tacit knowledge in 180 meaning of 179 Senge’s model 182 single, double and triple loop learning and 181 variety and 180–181 locational flexibility 126 lost time rate 5–6 low pay commission activities of 251 role of 251 role in relation to HR 251 M management by objectives 216 management development approaches to 186 directors and senior managers and 185–186 forms of 188 methods of Martin-Index:Martin-Index.qxp 09/04/2010 N negotiation aggressive tactics in 191–192 collective bargaining and 112, 190 distributive bargaining 190 integrative bargaining 190–191 principled negotiations 193–4 tactics, influencing factors 192–193 ways of minimising conflict in 192 new pay, principles of 269 numerical flexibility 125 NVQ, SNVQ framework 50–51 Page 291 O organisational citizenship in empowerment and engagement 109 organisational culture changing 198–199 components of 195–196 counter cultures 199 cultural web 196 dimensions of 195 influence on performance 219 models of 196–198 bet your company culture 197–198 macho culture 197 person culture 197 power culture 197 process culture 197 role culture 197 task culture 197 work and play hard culture 197 organisation reality of 198 strong and weak culture 197–198 sub cultures 199 organisational development (OD) and change business reorganisation and 87–88 criticisms of 203 features of 200 strands of theory and practice in action research 201–201 attitude and opinion surveys 201 encounter groups 201 HR involvement in change 204 planned approach to OD interventions 202 process consultation 201 quality of working life and 202 strategic change and 202 tactics in a change process 203204 values underpinning 201 organisational structure behaviour management and 21 bureaucracy 208 classical management theory 208 contingency model of 209 decline, dealing with 210 flatter organisations and succession planning 258 forms of entrepreneurial structure 205 index management development cont action learning 188 coaching 188 counselling 188 development centres 189 e- and blended learning 189 formal training courses 189 mentoring 188 performance and development reviews 188 project work 188 secondments 188 succession planning 189 outcomes of 187 political skills and 186 relational rewards and 268 retention and 237 work based forms of 186–187 management of expectation as a retention strategy 236 manufacture of consent 57, 116–117 market price based pay 279–280 marketplace bureaucracy and groups 263 matrix and project structures 206 mediation 116 mentoring process 67–68 mentoring in management development 188 mistakes, toleration of 110 mobbing 36 monitoring employee behaviour and use of facilities and data protection 73 morale motivation theory and incentives 149 10:33 AM 291 Martin-Index:Martin-Index.qxp 09/04/2010 10:33 AM key concepts in human resource management organisational structure cont flexible and flatter organisations 206–207 holding company, the 208 international organisations 207 matrix and project structures 206 process based structures 206 product based structure 205–206 virtual and federal organisations 207 marketplace bureaucracy and groups 263 organisational lifecycle and 209–210 organisational design as a retention strategy 237 segmentalism 208 structure as theatre 208–209 unity of command 208 outsourcing, downsizing, reorganisation, and redundancy 85–90 292 P paired comparisons in job evaluation 166 performance appraisal actions based on 214 competence and 213 development activity based on 103 factors reflecting performance 215 interview uses in 158 key elements of agreement 213 exchange of views 213 feedback 213 future expectations 213 measurement 213 positive reinforcement 213 review and creation of records 213 management development and 189 methods of behaviourally anchored rating scales 215 critical incidents approach 216 essay approach 216 management by objectives approach 216 ranking and forced distribution approach 215–216 rating scales 215 purpose of 211–212 questions arising from purpose of 212 Page 292 performance appraisal cont reasons for lack of effectiveness 214 reward management and 242, 281 training and 213 360 degree appraisal 214–215 performance based hierarchy of groups 261 performance management empowerment and engagement and 110 goal theory, implications for 218 high performance working based on reward and 136, 220–221 influences on performance 219–220 one best way and 217 motivation theory and goal theory of 218 quality of working life and 230 reward management and 242 scientific management and 217 SMART objectives and 218 performance, meaning of 25 performance related pay 151 points rating job evaluation 164–165 positive action in equality 82 positive discrimination 80, 82 potential teams 261 power and knowledge management 171 power balance and control 55 presenteeism 9, 237 principled negotiations 193–4 process based structures 206 process consultation 201 product based structure 205–206 productivity and benchmarking 30 productivity bonus payments 151 profit share/share options 151–152 proprietary schemes in job evaluation 165–166 pseudo-teams 261 psychological contract 53–54 employment contract and the 62–63 development and the 100 quality of working life and 229–230 psychometric and other tests assessment of test validity and reliability 225 big five model of 222–223 brief for test subjects 224 categories Martin-Index:Martin-Index.qxp 09/04/2010 psychometric and other tests cont ability 222 aptitude 222 personality 222 Cattell’s 16PF test 222 Eysenck’s personality types 222 factors to consider before use 223–224 frequency of use 222 interpreting the results 223 process of test development 225–226 test provider assessment 224–225 R real teams 261 recognition, trade union forms of 275 multi-union recognition single table bargaining single union recognition recognition, trade unions, levels of 276–277 Page 293 recognition of trade unions, in employee relations and conflict 114 redundancy, downsizing, outsourcing, and reorganisation 85–90 reinforcement behaviour management and 22–23 incentive scheme design and 150–151 performance appraisal and 213 relational rewards 267–268 achievement, recognition, responsibility, autonomy, growth 268 learning and development 268 experience of work 268 resistance to management control 111 resourcing/retention agencies, consultants, role of 235 appointment and 235 balancing internal and external appointments in succession planning 258 recruitment and 233–234 induction crisis and labour turnover 177 retention strategies attitude surveys 237 avoiding presenteeism 237 career development 237 defend against ‘poaching’ 237 employee relations strategies 237 employer of choice, become one 238 induction 236–237 job and organisational design 237 management of expectation 236 reward 236 training and development 237 work-life balance and 237 reasons people leave 176–177, 236 risk assessment in labour turnover 175 selection and 234 reward management aim of 238 competency based pay 279, 281 expatriation, design of and 120–121 impact on employee 240–241 incentives role 240 job evaluation, links to 168 market price based pay 279–280 index Q quality of working life and the psychological contract commitment and 230 high performance working and 229–232 OD, change and 202 job dissatisfaction and 228–229 measuring QoWL 228 performance management and 230 psychological contract and 229–230 psychological contract 53–54 employment contract and the 62–63 development and the 100 results emerging 227 themes included health and safety 227 job design 227 job security 227 protection of individual rights 227 respect for non-work activities 227 reward 227 social integration 227 social relevance of work 227 trust and 230 questions to determine employed status 62 10:33 AM 293 key concepts in human resource management Martin-Index:Martin-Index.qxp 294 09/04/2010 10:33 AM reward management cont objective of employees and employer from 239–240 quality of working life and 227 relational rewards 267–268 achievement, recognition, responsibility, autonomy, growth 268 learning and development 268 experience of work 268 retention strategy including 236 salary bands 278 skill based pay 279, 281 spot rates 278, 280 strategy 239 themes involved benefit and pension schemes 242–243 grade and pay structures 241–242 job values and relativities 241 procedures 243 rewarding contribution and performance 242 special groups 242 trade union and 243 unit labour cost 240 rewards, role of in behaviour management 24 S salary structure links, to job evaluation 168 self managed teams 262 Senge’s model of organisational learning 182 shadow organisation 263 simplification and job engineering 161 single, double and triple loop learning in the learning organisation 181 social engineering in behaviour management 23 social partnerships in employee relations 113, 114 social relevance of work and QoWL 227 socio-technical approach to job design 163 skill and competency 47–48 skill based pay 279, 281 stability index in labour turnover174 Page 294 statutory bodies (ACAS; Central Arbitration Committee (CAC); employment tribunals; Health and Safety Executive (HSE); Equality and Human Rights Commission (EHRC); Low Pay Commission ACAS responsibilities of 244 services offered through 245 Central Arbitration Committee (CAC) role of 245–246 procedures for claims 246–247 trade unions and 276 employment tribunals role of 247 procedures for claims 247–248 Equality and Human Rights Commission (EHRC) procedure for claims 251 remit of 250 role in relation to HR 250–251 Health and Safety Executive enforcement through 250 legal obligations on employers 248–249 penalties for breaches of 249 purpose of 248 risk assessment and 249–250 low pay commission activities of 251 role of 251 role in relation to HR 251 strategic HRM employee development and 101–102, 104 HR planning and 147 HR strategy areas 255–256 links between business strategy and 254 links between human capital management and 256 models of strategic HRM best practice model 254–255 contingency model 255 Harvard model 255 resource-based model 255 perspectives on classical or rational approach 253 evolutionary approach 253 Martin-Index:Martin-Index.qxp 09/04/2010 T tacit knowledge 170, 171, 180 talent management, forces acting on employers (demand) side factors) 259 external context 258–259 organisational context 259 workforce (supply) factors 259 team roles 265–266 team-working employee benefits from 263 groups and teams 261 Page 295 team-working cont group development model 264–265 group dynamics 265 Hawthorne studies 263–264 hierarchy of performance based groups 261 informal and formal groups 263 marketplace bureaucracy and 263 organisational benefits of 262–263 shadow organisation 263 successful and unsuccessful teams 266 team roles 265–266 types found in organisations 261–262 temporal flexibility 126 terms in an employment contract 62 total quality management 16 total reward basic pay 267 benefits 267 intrinsic 268 benefits of total reward 270 characteristics of 268–269 contingent pay 267 level of take-up 270 model of 270 relational and communal rewards relational and individual rewards transactional and communal rewards transactional and individual rewards new pay, principles of 269 problems with 271–272 process for implementing 271 relational rewards 267–268 achievement, recognition, responsibility, autonomy, growth 268 learning and development 268 experience of work 268 total reward and benefits 31 trade union/employee representation Central Arbitration Committee (CAC) 276 Certification Officer, responsibilities 273–274 collective bargaining and 112, 190 links with HR 129 index strategic HRM cont processual approach 253 systemic approach 253–254 purpose of 252,256 statute law and the employment contract 61 stress interview based on 155 sub cultures 199 successful and unsuccessful teams 266 succession planning and talent management balancing internal and external appointments 258 flatter organisations and succession planning 258 forces acting on talent management employers (demand) side factors) 259 external context 258–259 organisational context 259 workforce (supply) factors 259 HR and international talent management 260 HR strategy areas relevant to talent 259 links between talent management and succession planning 258 management development and 189 organisational variations in 257–258 talent management, areas of contribution 259 war for talent 258 survivor syndrome after downsizing and redundancy 90 systems approaches to business reorganisation 88 10:33 AM 295 key concepts in human resource management Martin-Index:Martin-Index.qxp 296 09/04/2010 10:33 AM trade union/employee representation cont derecognition reasons 275 legislative based obligations on 277 recognition, forms of 275 multi-union recognition single table bargaining single union recognition recognition, levels of 276–277 recognition of, in employee relations and conflict 114 reward management and 243 trades union congress 274–275 training needs analysis in development 102 triple, single and double loop learning in the learning organisation 181 trust and 172–173 competitive trust 173 goodwill trust 173 types of team found in organisations action and negotiation teams 262 advice and involvement teams 262 crews 262 production and service teams 262 project and development teams 262 self managed teams 262 virtual teams 262 U unfair dismissal remedies 78 V variety in the learning organisation 180–181 voice, employee 108 employee relations, conflict and 113, 116 victimisation 81 virtual and federal organisations 207 virtual teams 262 Page 296 W wage policies and absence wage structure job evaluation links, to 168 possible variables broad or narrow banded structures 279 competency based pay 279 market price based pay 279–280 pay interval variations 279 salary bands 278 skill based pay 279 spot rates 278, 280 pay progression variables incremental progression 280 incre-merit progression 280–281 performance based progression 281 skill or competency based progression 281 spot rates 280 relational rewards 267–268 achievement, recognition, responsibility, autonomy, growth 268 learning and development 268 experience of work 268 pay review processes equal value 282 pay curves 282 salary survey 281 war for talent 258 wellness management wisdom and knowledge management 170 working group 261 work-life balance flexibility and 126–127 retention and 237 work study and business reorganisation 87 [...]... oldest) application of psychological 21 key concepts in human resource management Martin- CH-B :Martin- CH-B 22 12/04/2010 7:02 PM Page 22 thinking to controlling the behaviour of a subject (another living organism) by an experimenter is the work of Skinner and instrumental conditioning Instrumental in this context refers to behaviour being ‘instrumental’ in producing an outcome For example, a hungry rat.. .key concepts in human resource management Martin- Introduction :Martin- Introduction 2 09/04/2010 10:33 AM Page 2 Whichever HRM textbook you are using you should read this Key Concepts book in parallel with it to identify where specific topics are covered because some topics will appear in more than one location in a textbook For example, performance appraisal has relevance in reward management, training... benchmarking B e n ch m ar k i n g 25 key concepts in human resource management Martin- CH-B :Martin- CH-B 26 12/04/2010 7:02 PM Page 26 potentially valuable process involving the comparison of two situations in order to be able to make judgements and take actions intended to improve the functioning of an inferior situation Given the lack of clarity in the meaning of some of the terms used to define benchmarking,... business but also have a negative effect on others 19 Martin- CH-B :Martin- CH-B 12/04/2010 7:02 PM Page 20 key concepts in human resource management idea of the balanced business scorecard is an important one for managing people because: 20 • Balance (in effect success in business) follows on from the alignment of financial activity with that related to customers, internal business processes, and innovation... help to support management s objectives • Training Training courses can upgrade and reinforce an individual’s competencies But they also present opportunities to reinforce management preferred behaviours and attitudes For example, selection for attendance on training courses sends a signal – ‘punishment’ (remedial training) or ‘developmental’ (someone worth investing in) ; during training an opportunity... 15 Martin- CH-B :Martin- CH-B 12/04/2010 7:02 PM Page 16 key concepts in human resource management The balanced scorecard provides feedback around both the internal business processes and the external outcomes in order to continuously improve the strategic performance and results When fully utilised, it transforms strategic planning from an academic and sterile paper exercise into the central driving... the same time key concepts in human resource management The Balanced Scorecard Institute (2009) has identified what they see as the main success factors for the implementation of the balanced business scorecard These are: 18 • Obtaining senior management sponsorship and commitment • Involving a wide range of leaders, managers and employees in the scorecard development • Agreeing on the terminology to... approach to guiding the development of an absence strategy involves the following stages: 7 key concepts in human resource management Martin- CH-A :Martin- CH-A 8 12/04/2010 7:01 PM Page 8 • Redesign (if necessary) the absence control procedures Set targets for absence levels and absence reduction and determine action levels Establish procedures and guidelines for return to work interviews and ‘during absence’/progress... PM Page 9 • Including a provision for return to work interviews (identified as one of the most effective interventions to manage short-term absence) • Including an indication of company intentions with regard to maintaining contact with sick employees and also to facilitating effective return to work strategies See also: behaviour management; counselling, coaching and mentoring; discipline and grievance;... Wellness management is a topic beginning to emerge in organisations which includes a range of services, processes and facilities to promote good health Benefits can result in resourcing, the psychological contract, duty of care and productivity aspects of HR activity 9 Martin- CH-A :Martin- CH-A 12/04/2010 7:01 PM Page 10 A s se s s m en t / D ev el o pm e n t C en tr e key concepts in human resource management