MHRA01 15/09/2005 10:49 Page i Managing Human Resources MHRA01 15/09/2005 10:49 Page ii MHRA01 15/09/2005 10:49 Page iii Managing Human Resources FOURTH EDITION Personnel Management in Transition Previously published as Personnel Management EDITED BY Stephen Bach MHRA01 15/09/2005 10:49 Page iv © 2005 by Stephen Bach BLACKWELL PUBLISHING 350 Main Street, Malden, MA 02148-5020, USA 9600 Garsington Road, Oxford OX4 2DQ, UK 550 Swanston Street, Carlton, Victoria 3053, Australia The right of Stephen Bach to be identified as the Author of this Work has been asserted in accordance with the UK Copyright, Designs, and Patents Act 1988 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, except as permitted by the UK Copyright, Designs, and Patents Act 1988, without the prior permission of the publisher First edition published 1989 as Personnel Management in Britain Second edition published 1994 as Personnel Management Third edition published 2000 Fourth edition published 2005 by Blackwell Publishing Ltd 2005 Library of Congress Cataloging-in-Publication Data Managing human resources : personnel management in transition / edited by Stephen Bach.— 4th ed p cm Rev ed of: Personnel management 3rd ed 2000 Includes bibliographical references and index ISBN-13: 978-1-4051-1850-7 (hardcover : alk paper) ISBN-10: 1-4051-1850-4 (hardcover : alk paper) ISBN-13: 978-1-4051-1851-4 (pbk : alk paper) ISBN-10: 1-4051-1851-2 (pbk : alk paper) Personnel management— Great Britain I Bach, Stephen, 1963– II Personnel management HF5549.2.G7M357 2006 658.3′00941— dc22 2005006590 A catalogue record for this title is available from the British Library Set in 11/13pt Bembo by Graphicraft Limited, Hong Kong Printed and bound in the United Kingdom by TJ International, Padstow, Cornwall The publisher’s policy is to use permanent paper from mills that operate a sustainable forestry policy, and which has been manufactured from pulp processed using acid-free and elementary chlorine-free practices Furthermore, the publisher ensures that the text paper and cover board used have met acceptable environmental accreditation standards For further information on Blackwell Publishing, visit our website: www.blackwellpublishing.com MHRA01 15/09/2005 10:49 Page v Contents Notes on Contributors List of Figures List of Tables List of Boxes Preface Part I Managing Human Resources in Context Personnel Management in Transition Stephen Bach Personnel Management and European Integration: A Case of Indelible Imprint? Keith Sisson vii ix x xi xii 45 Managing Human Resources in Multinational Companies Tony Edwards and Anthony Ferner 68 Managing Human Resources in the Networked Organization Trevor Colling 90 Part II Employee Resourcing 113 Recruitment and Selection Sue Newell 115 Work–Life Balance: Challenging the Overwork Culture Janet Walsh 148 Walking the Talk? Equality and Diversity in Employment Linda Dickens 178 MHRA01 15/09/2005 10:49 Page vi vi Part III Contents Employee Development Skills, Training and the Quest for the Holy Grail of Influence and Status Ewart Keep Management Development and Career Management David Guest and Zella King 209 211 237 10 Employer and Employee Branding: HR or PR? Martin R Edwards 266 Part IV 287 Pay and Performance 11 New Directions in Performance Management Stephen Bach 289 12 Remuneration Systems Ian Kessler 317 13 Customer Service Work, Emotional Labour and Performance Stephen Deery 346 Part V 373 Work Relations 14 Discipline and Attendance: A Murky Aspect of People Management Paul Edwards 375 15 Direct Participation and Involvement Mick Marchington and Adrian Wilkinson 398 16 Management and Trade Unions: Partnership at Work? Stephanie Tailby and David Winchester 424 Index 452 MHRA01 15/09/2005 10:49 Page vii Notes on Contributors Stephen Bach, Reader in Employment Relations and Management, Department of Management, King’s College Trevor Colling, Principal Lecturer, Department of Human Resource Management, De Montford University Stephen Deery, Professor of Health Services Management and Human Resource Management, Department of Management, King’s College Linda Dickens, Professor of Industrial Relations, University of Warwick Business School Martin R Edwards, Lecturer in Human Resource Management and Organizational Psychology, Department of Management, King’s College Paul Edwards, Professor of Industrial Relations, University of Warwick Business School Tony Edwards, Senior Lecturer in International Human Resource Management, Department of Management, King’s College Anthony Ferner, Professor of International HRM, Department of Human Resource Management, De Montford University David Guest, Professor of Human Resource Management and Organizational Psychology, Department of Management, King’s College Ewart Keep, Professorial Fellow and Deputy Director of the ESRC Centre on Skills, Knowledge and Organizational Performance, University of Warwick Business School Ian Kessler, Lecturer in Management Studies and Fellow of Templeton College, University of Oxford Zella King, Director, Centre for Career Management Skills, University of Reading Mick Marchington, Professor of Human Resource Management, Manchester Business School, The University of Manchester Sue Newell, Cammarata Professor of Management, Department of Management, Bentley College MHRA01 15/09/2005 10:49 Page viii viii Notes on Contributors Keith Sisson, Head of Strategy Development, Advisory Conciliation and Arbitration Service and Emeritus Professor of Industrial Relations, University of Warwick Business School Stephanie Tailby, Principal Lecturer, School of Human Resource Management, University of the West of England Janet Walsh, Reader in Human Resource Management, Department of Management, King’s College Adrian Wilkinson, Professor of Human Resource Management, University of Loughborough Business School David Winchester, Associate Member, Industrial Relations Research Unit, University of Warwick Business School MHRA01 15/09/2005 10:49 Page ix Figures 1.1 Changes in the use of different forms of labour over the last years 5.1 The traditional psychometric view of selection 5.2 Selection methods used by employers 5.3 Comparison of the validity of different selection methods 8.1 Expansive and restrictive learning environments 9.1 Groups of management development activities 9.2 Groups of career management activities 10.1 Individual belief strength × work value congruence: effect on outcomes 11.1 Conflicts in performance appraisal 11.2 A typology of rater motives and manipulative rating 11.3 Developments in performance management since 1991 12.1 Establishing job worth 12.2 Types of payment system 14.1 Dimensions of workplace relations 15.1 The escalator of participation 18 117 126 128 225 239 255 278 301 302 310 318 321 385 401 MHRA01 15/09/2005 10:49 Page x Tables 1.1 Stereotypes of personnel management and human resource management 1.2 Changes in worker voice arrangements, 1984–1998 (%) 1.3 Percentage of workplaces using ‘new’ management practices and employee involvement schemes 1.4 Key changes in employment by sector, over 25 years 1.5 Emergent directions in HR practice: From HRM to the New HR 2.1 Manufacturing employment in the UK and EU 2.2 Foreign direct investment inflows into the UK and EU 4.1 Workforce jobs by manufacturing industry (Man) and financial and business services (FBS), December 1979– December 2003 (millions) 6.1 Employees working over 48 hours per week, by occupation, industry and gender 6.2 Provision of family friendly practices for non-managerial employees 6.3 Flexible and family friendly working arrangements, by gender and sector 7.1 Equal treatment practices, by formal equal opportunities policy 7.2 Discrimination claims to employment tribunals, 2002–2003 10.1 Features of employer and employee branding 11.1 Features of performance management 13.1 Organizing service work 15.1 Contrasting meanings of participation 17 19 22 29 59 60 94 151 159 160 180 196 272 292 350 408 MHRD01-Index 15/09/2005 10:51 Page 469 Index Microsoft employee branding 281 employer branding 274 performance appraisal 289 work pressures 152 migration see labour market, migration Milkovich, G 317 Miles, R.E 9, 258 Miles, S.J 271 Milgrom, P 257 Miller, D 191, 202, 203 Miller, J 311 Miller, P 415 Milliken, F.J 161 Milliman, J 311 Millmore, M 125, 129 Millward, N 3, 13, 17, 22, 23, 26, 328, 333, 378, 379, 402, 403, 415, 425, 426, 428, 429 Milsome, S 197, 324, 328, 332 minimum wage see national minimum wage Mintzberg, H 31, 239, 241, 244 misconduct 375, 376 ‘mock’ bureaucracy 383, 384 models of HRM –7 Mole, G 249 monitoring and control of employees 385, 386 – Moore, S 442, 443 Moores, John 186 morale, employee 100 Moralee, L 183 moral panics, absenteeism 389 Moran, 92 Morgan, G 56 Morgenson, F.P 118 Morris, J 74, 346 Morris, T 253, 254 Morton, C 409, 412 motivational model of direct participation 410 Motorola, corporate university 240 Mount, M.K 134, 155 Mouton, J.S 246 Moynihan, L 348, 351, 362, 366 Mrs E Rainey v Greater Glasgow Health Board [1987] 339 Mueller, F 399 Mulholland, K 353, 361 Muller, M 76, 84 multi-level governance, EU 48, 63 multinational companies (MNCs) 68 –9, 84–5 differing national management styles and practices 69 –73 as employers, and national business systems 73 – 4; German firms 74 –5, 77–9; US firms 74, 75 –7, 79 469 European integration 55; benchmarking towards ‘Europeanization’? 57; employment structure, changes 58, 59; Euro-company, emergence of 56 ‘market-based’ and ‘relational’ national systems 79; corporate governance and management style 79–81; state regulation of labour market 81–3; training system and employee development 83–4 organizational restructuring 26 Mundell, R 47 Munro Fraser, J 119 Murlis, H 319 Murphy, N 123 Murray, A 32 mutual gains enterprises 432–3, 441 mystery shoppers 355 Asda 352 Sainsbury’s 329 Nachbagauer, A.G.M 257 National Association of Pension Funds 337 National College for School Leadership 249 national culture and performance appraisal 311 National Economic Development Organization, dismantling of 54 National Employers Skills Survey (NESS) 213–14, 220 National Health Service (NHS) abusive patients and relatives 358 ‘Agenda for Change’ 195, 331, 332, 340, 434 customer expectations 36 equal opportunities 195 labour market segregation and disadvantage 183 performance appraisal 304 personnel function, reinvention of 13 remuneration systems 331, 332, 333, 340 trade unions 434 national management styles and practices Germany 80–1, 82–3, 84 and MNCs as employers 73–4; German firms 74–5, 77–9; US firms 74, 75–7, 79 reasons for differences 69–73 USA 79–80, 81–4 national minimum wage (NMW) 334–6 as competitiveness measure 32 and European integration 54 and occupational structure 54 National Minimum Wage Act 1998 334 National Skills Task Force (NSTF) 213, 214, 217, 219, 220 National Statistics 30 MHRD01-Index 15/09/2005 10:51 Page 470 470 National Training Organizations (NTOs) 229 National Westminster Bank 240 Neary, D 311 Neathey, F 340 negotiation of order 382 – neo-institutional sociological approach 325 Netemeyer, R.G 155 Netherlands, social partnership 431 networked organization 90 –3, 108–9 challenges 99 –101; strategic outsourcing in IT 101– complexities 34 –5 incidence and character 93 – 6; regulatory context 96 –9 Neuman, G.A 246 Newell, H 245, 249 –50, 256 Newell, S 130, 133, 135, 136, 138 Newman, J 297 ‘New Pay’ agenda 322 –3, 325 newspapers, job advertisements in 123 Newton, T 290, 301, 305, 306 New Zealand, discipline 381 Ngo, H 71 Nichol, V 163, 166, 167 Nichols, T 384 Nickell, S 394 Nickson, D 212, 213, 216, 217 Nissan, investment in UK 29 Noe, R.A 257 Nokes v Doncaster Amalgamated Collieries Ltd [1940] 96 Nolan, P 16, 23, 384 Noon, M 13 Nord, W.R 163, 169, 170 Norton, D 292 Norway, skills and training 227 nurseries, workplace 159, 160, 161, 166–7 Oakley, P 358 Oates, D 92, 94, 102 observation for job analysis 119 occupational structure 23 – O’Cinneide, C 195 O’Connor v The Perry Group plc 339 O’Donnell, R 54 Office for National Statistics (ONS) 69, 94 off-line participation 401 offshoring networked organization 92 trends 27 Oliver, C 325 Ollerearnshaw, S 156, 187, 188, 189 Olsen, J 48 on-line participation 400 –1 open method of co-ordination (OMC), European integration 50, 53 Open University 308 Index Opportunity Now 179, 192, 202 Orange, customer service work 348, 354 order, negotiation of 382–4 O’Reilly, C.A III 141, 278 organizational boundaries 33–5 organizational culture attendance 392 customer service work 365 employee branding 271, 274, 279 management development 250 performance management 293 recruitment and selection 142, 143 work–life balance 169, 170 organizational restructuring 26–7 career management and management development 253– performance appraisal 307 performance management 291 organizational review, recruitment process 117–18 organization development (OD) ethical issues 281, 283 and management development 238, 246, 249 see also learning organizations Organization for Economic Cooperation and Development (OECD) 26, 149, 150, 157 orientation programmes see induction training origins of HRM Osterman, P 3, 161, 162, 254, 432–3 Ostroff, C 142 O’Sullivan, M 80 outsourcing ‘bandwagon’ 96 corporate governance 25 of HR activities: low priorities for CEOs 14 networked organization 91, 93; challenges 100–8; incidence and character 94–6; regulatory context 96, 97–8, 99 of training function 222, 223 see also subcontracting Overell, S 36 overtime working 150–1 overwork culture see work–life balance Owen, D 183 Oxenbridge, S 17, 32, 438, 439, 440, 442, 443 Ozeki, C 155 Paauwe, J 11, 243 Palmer, G 388, 389 Palmer, T 170, 425, 426 Parasuraman, S 150 parental leave and pay 158, 159, 160, 161 Parker, C 132 MHRD01-Index 15/09/2005 10:51 Page 471 Index Parker, L 163 Parker, M 408 Parker, S.K 406 Parmalat 30 participation and involvement strategies 19 –20 Partnership at Work Fund 435 part-time employment equality issues 193 gender factors 182 performance appraisal 299 and service industries’ dominance 22 training and development 213 trends 18 work–life balance 159, 161, 165 Part-time Workers Regulations 2000 193 Pateman, C 412 paternalism corporate social responsibility 283 employee branding 283 US management style 82 paternity leave and pay see parental leave and pay Paton, R 240 patterned interviews 131–2 Patterson, M 399 pay see salaries and wages Payne, J 212, 226, 227, 435, 437– Payne, T 137 Pearn, M.A 242 Peccei, R 11, 347, 363, 364, 365, 439, 440 –1 Pedler, M 248 Pelletier, J 427 Pemberton, C 253 Pendleton, A 25, 26, 322 Pension Investment Research Consultants 336 pension schemes age structure of workforce 327 outsourcing 108 People Management 328 performance 289 –90, 310 –12 from appraisal to performance management 290 –5 best fit HRM 10 –11 branding, employer and employee 268 career management 253, 256 –7 customer service work 362 –3; HR practices 363 –5 direct participation and employee involvement 409 –12 and discipline 386, 387 and equal opportunity initiatives 189 –92 and outsourcing 106 and pay see performance-related pay personnel function, evolution of 11, 15 471 reviews see appraisal systems training and development 229 and work–family policies 164–5 see also appraisal systems performance-related pay (PRP) 320–2, 326 customer service work 364–5 and equal pay 340 executive compensation 336 labour market 332–3 performance appraisal 296, 297, 301 performance management 291–2 sectoral and occupational shifts 328, 329 trends 18, 19 Perlow, L.A 152 permeable organizations 33–5 Perrons, D 182, 191, 192 Perry-Smith, J.E 164 personal development plans (PDPs) nesting training within business strategy 219 performance management 292 personality types and measures appraisal systems 299 customer service work 360, 363 selection process 133, 134–5 personnel function, evolution 15 personnel management and ambiguity 11–13 reinventing the personnel function 13–15 personnel management in transition 3–4, 37–9 business strategies and structures, changes 26–7 corporate governance 21, 24–8 emerging directions of HR practice 28, 29; from commitment to the employer to engagement with customer 35–7; globalization 28–31; permeable organization, towards 33–5; re-regulation and legal compliance 31–3 employment restructuring 21; occupational structure 23–4; service industries’ dominance 21–3 evolution of HRM: best fit HRM 9–11; best practice HRM 8–9; models of HRM 5–7; origins evolution of personnel function 15; personnel management and ambiguity 11–13; reinventing the personnel function 13–15 practice of personnel management 15–16; state of play 16–20 Personnel Today 124 person specification, recruitment process 117, 119–20, 121 Peters, T 92 Peterson, R 31 MHRD01-Index 15/09/2005 10:51 Page 472 472 Peterson, S 309 Peugeot 58 Pfeffer, J 8, 241, 253, 256, 323, 399, 410 Phelps Brown, E.H 376 Philips, A 189 Philpott, J 213, 214 piecework 322, 323, 324 and corporate performance 326 and industrial relations instability 328 Pilkington, A 183 Pinnington, A 253, 254 Piore, M 70, 399 Pirani, M 183 Polkey v A E Dayton Services Ltd [1987] 378 Pollard, S 377 Polyhart, R 130 Poole, M 399, 400, 403, 410 Porras, J 246 Porter, M.E 9, 58, 250 Portwood, T.D 257, 259 ‘positional striving’ 153 Position Analysis Questionnaire (PAQ) 118 –19 Posthuma, R 131 Powell, G.N 92, 168 Powell, W 325 power subcontracting 95 – practice of personnel management 15–16 state of play 16 –20 predictive validity of selection methods 127 – 8, 129 assessment centres 136 –7 structured interviews 132 –3 pre-selection methods 130 Price, R 427 Prien, K.O 118 principal–agent theory, executive pay 336 Pritchard, S 99 Private Finance Initiative 333 private sector career management 254, 256 corporate governance 25 direct participation and involvement 398 equal opportunities 179, 180, 186 falling union recognition 16 –17 foreign ownership incidence 26 low pay 23 management development 249 networked organization 94 origins of HRM outsourcing 94 partnership agreements with unions 32 part-time employment 18 performance appraisal 295, 296 performance management 290, 291 practice of personnel management 20 recruitment and selection 122 Index remuneration systems 331, 337 role in public sector 27 service industries, dominance of 21 trade unions 425, 428, 429, 435 work–family policies 159; teleworking 166 privatization industrial relations restructuring 96 remuneration systems 333 and subcontracting 26 problem-solving groups 403, 405 trends 19 Procter, S 27 Procter and Gamble, equal opportunity initiatives 188 productivity bargaining 401 profit sharing schemes 322, 326 cycle of control thesis 401 trends 19 waves analysis of direct participation 402 promotion career management 254 performance appraisal 301 remuneration systems 331–2 Psoinos, A 401, 409 psychological contract career management 257, 258 importance of 60 networked organization 93 selection process 133, 139 trade unions 440 psychological issues benefits of work 153 emotional labour 356–60; resistance 361 overwork culture 153 pay systems 324–5 work–family conflict 15, 156 work–family policies 166 psychological testing, selection process 133 cognitive tests 134 issues 135–6 personality measures 134–5 psychometric approach to recruitment and selection 116–17, 142 limitations 137–41 selection methods 125 public policy see government public private partnerships networked organization 91, 92, 93 two-tier workforce 333 public relations (PR) employee branding 275, 282 employer branding 269 public sector absenteeism 389, 390 career management 254 MHRD01-Index 15/09/2005 10:51 Page 473 Index civil service redundancies announced (2004) 54 corporate governance 25 direct participation and involvement 398, 415; cycles of control thesis 401 equal opportunities 181, 186 management development 249 networked organization: incidence 94; regulatory context 97, 98 origins of HRM outsourcing 94 partnership agreements with unions 32 part-time employment 18 performance appraisal 295, 296 –7, 298; 360-degree feedback 308 performance management 290 –1 permeable organizations 34 practice of personnel management 20 private sector’s role in 27 recruitment and selection 122 remuneration systems: equal pay 340; labour market 330 –1; regulatory pressures 333; trade unions 330 –1, 333 restructuring 427 trade unions 425, 427, 428, 434 –5 work–family policies 159 ‘punishment-centred’ bureaucracy 383, 384 Purcell, J 4, 8, 9, 10, 11, 25, 91, 216, 217, 218, 219, 324, 329, 332, 410 –11, 417 Purcell, K 200 Quack, S 73 quality circles 19, 403, 405 Quality of Life Programmes, USA and Sweden 405 quality of products and processes recruitment and selection 138 questionnaires, job analysis 118 –19 Quintanilla, J 77 Race for Opportunity 179, 195 race issues see ethnic minorities Race Relations Act 1976 184, 193 Race Relations Amendment Act 2000 193, 195 radical approach to equality 201 radio advertising for job applicants 123 –4 Radloff, R 130 Rafaeli, A 360 Ragins, B.R 245 Rainbird, H 211, 219, 222, 223, 224, 231 Ram, M 122, 386 Ramsay, H 399, 401, 438 Rankin, N 123 ‘ranking and yanking’ 289 Reagan, Ronald 82 recency bias, appraisal interviews 302–3 473 recruitment and selection 115–17, 141–3 competency frameworks 276 customer service work 354 effectiveness, and appraisal data 298 employer and employee branding 266, 268, 271, 276–7 equal opportunities 122–3, 134, 190, 198–9 exchange perspective 137, 139, 142 outsourcing 106–7 psychometric approach, limitations 137–41 recruitment methods 121–2; attracting applicants 123–5; sources of external applicants 122–3 recruitment process: job analysis 118–19; job competencies 120–1; job description 119; organizational review 117–18; person specification 119–20, 121 selection methods 129–30; assessment centres 136–7; interviews 130–3; pre-selection methods 130; psychological testing 133–6 selection process 125–6; reliability 126–7, 129; validity 127–9 service sector 36, 116, 139–40 as skill acquisition mode 212–13 US MNCs 75–6 work–family policies 156 Redman, T 116 reduced hours 165, 168 redundancy 375, 444 outsourcing 107 Reed, H 336 Reed, M 242 Rees, C 412 referrals, employee 122–3, 190 Regional Development Agencies (RDAs) 229 regional pay 330–1 regulatory issues see legal and regulatory issues Reid, M.A 211, 221 Reilly, P 325 reliability of selection methods 126–7, 129 religious beliefs, and equal opportunities 192, 193, 194 remuneration systems 317–18, 340–2 360-degree feedback 308 competitive pressures: rewards strategies 325–6; strategic pay, models of 322–5 definitions and types of reward 318–22 employee branding 277 and outsourcing 106, 108 performance management 291 regulatory pressures 333–4; equal pay 337–40; low pay 334–6; top pay 336–7 trends in personnel management 18–19 MHRD01-Index 15/09/2005 10:51 Page 474 474 remuneration systems (cont’d ) workforce pressures 326; diversity 326–8; labour market 330 –3; sectoral and occupational shifts 328 –30 see also salaries and wages repertory grids, job analysis 118 representation gap 429, 442 ‘representative’ bureaucracy 383, 384 representative voice 17 reputation, corporate branding, employer 268, 270, 279, 283 corporate social responsibility movement 282 direct participation 416 equal opportunity initiatives 188 work–family policies 164 resource-based theory of the firm best fit HRM –10 remuneration 324, 325 restrictive learning environments 224–6 Restrictive Trade Practices Act 1976 96 return-to-work interviews 391, 392 Reuters, FAST initiative 276 reward systems see remuneration systems; salaries and wages Reynolds, A 248 Rhodes, M 49 Richards, W 192 Richbell, S 223 Richer Sounds, employer branding 274 Riedl, G 257 risk, and globalization 29 Roberts, G 121 Roberts, J 257 Robertson, I.T 129, 131, 132, 134, 135, 136, 143 Robinson, H 335 Roche, B 76, 85 Rodger, A 119, 120 Roe, M 79 Roehling, P.V 155 Roethlisberger, F.J 119 Roger, A 257 Rogers, J 410 Rollinson, D 381 Rome, Treaty of 49 employment regulation 52 Rosamond, B 45, 47, 48 Rosenbaum, J.E 253, 256 Rosenthal, P 36, 347, 360 –1, 362, 363, 364, 365, 367, 416 Roth, P.L 132 Rousseau, D.M 253, 269 Rover 439 Rowe, K 301 Roy, D 382 Royal Dutch Shell see Shell Index Royal Mail, sexual harassment allegations 195 Royal Pharmaceutical Society of Great Britain, continuing professional development 248 Royle, T 76, 82 Rubery, J 34, 35, 91, 191, 199, 334 Rucci, A 355 Rucker and Scanlon, gain sharing plans 322 Ruderman, M.N 155 Ruiz, Y 330 Russell, C 141 Rutherford 187, 188, 189 Rynes, S 318 Sabel, C 70, 399 Sainsbury’s diversity of workforce 189 team bonus system 329 Sako, M 95, 415 Saks, A.M 277 Salaman, G 242 salaries and wages diversity of workforce 326–8 employee branding 277 equal opportunities 180, 182–3, 184, 199, 200; legal issues 192, 193, 194–5, 197 European integration 50 of HR professionals: gender factors 13 inequalities: growing 218–19; and occupational structure 23–4 labour market 330–3 minimum wage see national minimum wage outsourcing 103, 106 pay and the job 318–20 pay, person and performance 320–2 performance appraisal 295, 296 regulatory pressures 333–4; equal pay 337–40; low pay 334–6; top pay 336–7 resource-based view of competitive advantage 218–19 reward strategies 325–6 sectoral and occupational shifts 328–30 strategic pay, models of 322–5 of top managers: HR specialists’ failure to challenge 15; increases 30, 218; inequalities 23–4, 218–19; performance appraisal 295; regulatory pressures 336–7; resource-based view of competitive advantage 218–19 trade union membership 426 work–family policies 167 see also remuneration systems sales commission 322 ‘sandwiched employees’ 150 Sartain, L 274, 276, 293 Saville & Holdsworth Ltd 119 Saxenian, A 259 MHRD01-Index 15/09/2005 10:51 Page 475 Index Sayles, L.R 377 Scandura, T.A 165, 245, 257 Scarborough, H 35, 399 Scharpf, F 60 Schein, E.H 250, 251, 259, 276 Schlosser, E 82 Schmidt, F.L 134, 135 Schneider, B 142, 354, 365 Schon, D 246, 249 Schuler, R 9, 323 Schuster, J 322 Scullion, H 92, 218 Sears Roebuck 355 Sectoral Skills Councils (SSCs) 229, 230 security strategies 19, 20 segmented markets 216 –17 Select Committee on Trade and Industry 337 selection see recruitment and selection self-appraisal 304 self-discipline 376 –7 self-employment, ethnic minorities 183 self-management 403 – 4, 406 semiautonomous service work 349, 350, 351 Senge, P 247, 248 Senior Executive Programmes 244 Sennett, R 36, 92, 95 Sergeant, A 365 service profit chain 363 service sector direct participation and employee involvement 399 diversity of workforce 188 –9 dominance 21–3 European integration 58 foreign ownership incidence 26 gender split 182 occupational structure 23 performance appraisal 299; 360-degree feedback 307– recruitment and selection 36, 116, 139–40 remuneration systems 328, 329 rise, and trade union membership decline 426 training and skills: changing meaning 212; market segmentation 217 see also customer service work Seven Point Plan, person specification 119 –20 severance packages, executive 337 Sewell, G 388, 407, 411 sex discrimination see gender issues, equal opportunities Sex Discrimination Act (SDA) 1976, 1986 193 sexual harassment allegations against Royal Mail 195 compensation awards 196 475 sexual orientation and equal opportunities 192, 194 Shackleton, V.J 130, 133, 135, 136, 138 shareholders Germany 80–1 USA 79–80; MNCs 75–6 shareholder value corporate governance 24, 25–6 German MNCs 79 USA 80 work–family policies 164 Share Incentive Plan (SIP) 322 share ownership schemes employee 322; knowledge workers 329; trends 19 institutional: corporate governance 24, 26; globalization 29; USA 79–80 Shaw, J 182 Shell corporate university 240 European integration 56 fraud 30 performance management 293 shift working 151, 158 Silicon Valley 259 Silver, M.S 238 Silvers, R 246 Simpson, B 334 Simpson, R 152, 153, 171, 303 Singh, J 364 Single European Act 1987 47 employment regulations 52 single European currency see euro Single Status Agreement 298, 339 Sirianni, C 347, 348, 349, 352, 354, 358, 360, 366 Sisson, K 3, 6, 4, 24, 28, 45, 47, 54, 56, 57, 58, 216, 219, 398, 403, 415 situational interviews 131 example 132 size of workplace executive compensation 336 and service industries’ dominance 23 training and development 213 and union recognition 17, 23 work–family policies 161 Skapinker, M 298 skills see training and development Skule, S 223 Slaughter, J 408 Sloman, M 301 Slovakia, multi-employer bargaining 63 Slovenia, multi-employer bargaining 63 Sly, F 183 Smallwood, N 266, 275, 289 Smethurst, S 124 Smith, A 183, 231 MHRD01-Index 15/09/2005 10:51 Page 476 476 Smith, C 388 Smith, I 328 Smith, M 115, 125, 129, 141 Smith, V 346, 349, 355 Smither, G 309 Smithson, S 401, 409 Snell, S.A 256, 258 Snow, C.C 9, 258 socialization employer and employee branding 274–5, 276, 277 organizational climate 142 post-selection 141 recruitment and selection as part of 142–3 social justice 186 –7 socially responsible investment (SRI) 282 social model, European 430 –2, 434 social responsibility movement see corporate social responsibility Social Security Act 1989 193 Society Guardian 330 soft version of HRM –7 Soskice, D 24, 72 South Korea, performance appraisal 311 Southwest Airlines employee branding 274, 276 –7 performance management 293 Sparks, K 153 Sparrow, P.R 22, 36, 120, 121, 242, 330, 392 specialization subcontracting 95 Spijkers v Gebroeders Benedik Abbatoir CV [1986] 98 Spurgeon, A 391 Stability and Growth Pact, EU 47 staff attitude surveys 403 trends 19 staggered hours 158 stakeholder management 281 Starkey, K 218 state see government status issues permeable organizations 34 training function 221–3 trends in personnel management 19, 20 Staw, B 416 Stevens, J 157, 161, 168 Stevens, M 402 Stiglitz, J 23, 29, 31 Stilgoe, E 378 stock markets, globalization 29 Storey, J 4, 5, 269, 296, 303, 405, 414 strategic alliances economies of scale 91 European integration 55 strategic business units 91 Index strategic human resources management (SHRM) 323 Strauss, G 15, 372 Strebler, M 294, 295, 296, 300, 303, 304 Streeck, W 48, 81 stress absenteeism 391 customer service work 347, 356 employers’ ‘duty of care’ 390 management by 408 and work effort 152 work–family conflict 155, 156 strikes against emotion management 360, 361, 362 and European integration 55 Stringfield, P 304 Stroh, L.K 153 structured interviews, selection process 131–3 Stuart, B 289 Stuart, M 435, 436, 438 Sturdy, A 360, 361 Sturges, J 256, 257 subcontracting networked organization 91, 92, 93; incidence and character 94; regulatory context 99 phases 26–7 types of 95–6 see also outsourcing succession planning 218, 255 suggestion schemes 405 Supply of Goods and Services Act 1982 96 survey work, emergence of 15–16 Susskind, A.M 365 Sutton, R 360 Sweden culture 71 Quality of Work Life Programmes 405 sector-level bargaining 72–3 and single European currency 48, 59, 60 Taffler, R 130 Tailby, S 333, 435, 441 take-overs see mergers and acquisitions Tamkin, P 229 task-based participation 403–4, 405–6 task discretion and skills 226 taste for power hypothesis 411 Tatton-Brown, C 378 tax benefits, employee share ownership schemes 322 Taylor, B 189 Taylor, F.W 115–16 Taylor, K 303 Taylor, P 132, 387, 409, 438 Taylor, R 18, 54, 226 MHRD01-Index 15/09/2005 10:51 Page 477 Index Taylor, S 358, 362, 366, 386 –7 Taylor v Connex South Eastern Ltd [2000] 98 teachers remuneration 332 trade unions 434 team briefings 403, 404, 407 and trade unions 414 trends 17, 19 teamwork customer service work 353 – direct participation 403 – 4, 406, 408 remuneration 322, 324, 329 trends 19 –20 US MNCs 77 virtual 30 Tebbutt, M 404 television advertising for job applicants 124 teleworking 166 see also homeworking temporary employees labour market segregation 183 performance appraisals 299 USA 80; MNCs 75 – terms and conditions of employment 99 term-time working 158, 165 Terry, M 32, 428, 435, 436, 441, 443, 444, 445, 446 Tesco broad banding remuneration scheme 332 categorization of employees 36 marketing and HR functions combined 37 performance management 293 recruitment 125 ‘retail gene’ 36 tester reliability, selection methods 126 test reliability, selection methods 126 –7 test–retest reliability, selection methods 126 Tett, R.P 134 Thatcher, Margaret cycles of control thesis 401 deregulation of labour market 334 European integration 45 theft 382 Thelen, K 72 Thomas, L.T 155, 165, 167, 169 Thompson, C.A 169, 173 Thompson, M 197, 329 Thompson, P 36, 116, 121, 139, 212, 324, 328, 332, 354, 366, 406, 409 Thomson 56 Thomson, A 238, 243, 244, 245, 249, 250 tightly constrained service work 349, 350 time-based pay systems 320 Tinbergen, J 47 tipping 386 Tomkins, C 336 top-grading 289 477 Torrington, D 12, 203, 222, 375, 376, 390 total quality management (TQM) 387, 417 Total Reward schemes 327–8 Totterdill, P 227 Towers, B 429 Townley, B 12, 290, 297, 298, 305, 306 Toynbee, P 16 Trades Board Act 1909 334 Trades Union Congress (TUC) career management 253 equal opportunities 183 executive pay 337 information and consultation of employees directive 444, 447 partnership principles 430, 435–7, 441, 442 work–family policies 162 trade unions 424, 447–8 and age structure of workforce 21–2 customer service work 350; resistance to emotion management 362 declining membership, and workplace organization 16–17, 425–6; reasons for decline 426–30 direct participation and employee involvement 402, 413–14 discipline 379 employers’ attitudes towards representatives 18 equal opportunities 194–5, 196 European integration 45, 61; social dimension 49; ‘voluntarism’, end of ? 54 Germany 82–3, 84 HR specialists’ move away from welfare tradition 15 legislation 441–2; impact 442–3; on information and consultation of emloyees 443–7 MNCs: German 78; US 76, 77 networked organization 98 origins of HRM partnership with management 430; debates, issues and evidence 437–41; European social model 430–2; mutual gains enterprise 432–3; politics 433–5; TUC principles 435–7 performance appraisal 297, 306 regulatory and legal systems 31, 32–3, 98 remuneration systems: equal pay 338–9; low pay 334; public sector 330–1, 333; regulatory pressures 333; timebased pay systems 320; top pay 337 and size of workplace 17, 23 USA 81–2 work–life balance 162 see also collective bargaining MHRD01-Index 15/09/2005 10:51 Page 478 478 training and development 211–12, 231–2 360-degree feedback 308 for appraisal process 304 changing meaning and patterns of provision 212 –14 corporate governance 25 customer service work 354 –5, 364 dispersal of the function 221–3 diversity of workforce 189 employer and employee branding 275, 276 Germany 84; MNCs 78 glittering future? 215 –16 learning environment 224 – low status function? 221–3 of management see management, development; career management nesting within business strategy 219–20 new research and theory 223 –4 organizational salience of skill 220–1 outsourcing 106 –7 public policy 227 – 8; complexity and comprehensibility 229 –30; employers ‘centre stage’? 228 –9; four national systems in UK 228; post-voluntarism? 230 resource-based view of competitive advantage 217–19 and selection process 141 skills: best practice or ‘fit’? 216–17 trends in personnel management 20 USA 83 – work–life balance 170 work organization and job design 226–7 Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE) networked organization: case example 105, 106 –7, 108; challenges 100; regulatory context 97–9 remuneration systems 333 Transport and General Workers’ Union (TGWU) 338 Travel Inn, corporate governance 26 Traxler, F 71 Tremblay, M 257 Tremlett, N 379 tribunals, industrial/employment 378, 379–81 discrimination claims 196 increasing claims 55 Truss, C TRW, performance management 311 Turban, D.B 268 Turnbull, P 92, 426 Turner, A 31 turnover of employees call centres 140 career management 257 customer service work 349, 353 Index equal opportunity initiatives 189 recruitment and selection 140–1 work–family conflict 156 work–family policies 163, 165; childcare facilities 167 Tüselmann, H.-J 78 Twomey, B 183 ‘two ticks’ campaign 179 two-tier workforce 333 Tyson, S 11, 280–1 Ulrich, D 13, 14, 266, 269, 275, 289 uncertainty, and globalization 29 unemployment disabled people 183 ethnic minority groups 183 levels, and discipline 388 trade unions 426–7 Unfair Contract Terms Act 1977 96 Unifi 440 uniforms 275 Unilever, European integration 56 UNISON 93, 97, 334, 338 United Distillers 300 United Nations 68 United States of America best fit HRM 9–10 collective bargaining 72 contemporary workplace trends 31 corporate governance 25 corporate scandals 298 customer-service work 352 direct participation and employee involvement 403; Quality of Work Life Programmes 405 discipline 379, 381 diversity of workforce 81, 190; MNCs 76 employers of choice 274 HR specialists: welfare tradition, move away from 15; women, and wage decline 13 internal labour market 82, 83–4, 91 knowledge economy 46 management development 238; MBAs 241 MNCs 69, 74, 75–7; European integration 58; and national business system 79–80, 81–4 offshoring 92 origins of HRM overwork culture 148 pay inequalities 23 performance appraisal 311; 360-degree feedback 308–9 Silicon Valley 259 work–family policies 157, 161 working hours 150, 153 MHRD01-Index 15/09/2005 10:51 Page 479 Index universities corporate 240 recruitment from 123 unrationalized labour-intensive service work 349, 350 unstructured interviews, selection process 131, 133 Unwin, L 223, 224, 225, 226, 230 up-or-out promotion systems 254 upward appraisal 307 upward problem solving 403 –5 Urry, J 70 Valcour, M.P 154, 165, 167, 169, 172 validity of selection methods 127–9 assessment centres 136 –7 structured interviews 132–3 Vandenberg, R 410 van den Broek, D 362 Van Maanen, J 276 van Tulder 56 Van Vianen, A.E 142 Varul, M.Z 75, 77, 78, 86 vertical fit, pay systems 323 – 4, 326 vertical task-based participation 405 – vocational education and training (VET) see training and development vocational guidance, continuing nature of 252 Vodafone, acquisition of Mannesmann 80 Volkswagen benchmarking towards ‘Europeanization’ 57 Saxony its largest shareholder 80 voluntarism and European integration 46, 51, 53 –5 training and development 230 voluntary organizations, career management in 254 Von Glinow, M.A 257, 259 Vroom, V.H 256, 325 Waddington, J 425, 426, 427, 434, 437 Wageman, R 324 wages see salaries and wages wages councils 334 Wainwright Trust 191 Waldeck, R 156 Walker, A 309 walk-ins 123 Wall, T.D 401, 410, 412 Wallace, T 406 Walton, R 399 Ward, P 307 Warhurst, C 212 Warhurst, R 70, 72 Waring, P 282 479 Warwick University, consortium MBA 240 Washington Department of Personnel 124 Waterman, R.H 92, 253 Watkins, K 250 Watson, T 90, 120 Waung, M 302, 304 waves analysis of direct participation 402 Weaver, N 277 Webb, J 201, 202 Webb, M 388, 389 websites see Internet weekend working 151 Weekley, J.A 131 welfare capitalism, USA 82, 91 West, M.M 10, 289 Wharton, A.S 153, 347, 348, 357, 359, 360, 363 Whetten, D 270 White, M 162, 253, 296, 331, 433 Whitfield, K 410 Whitley, R 72 Whitley Committees 401 Whitston, C 379, 390, 391, 392 Whittle, S 416 W.H Smith 337 Wickens, P 29, 409 Wilk, S 126 Wilkinson, A 391, 398, 401, 407, 408, 412, 413, 415, 416 Wilkinson, B 388, 407 Williams, K 124 Willman, P 398, 416 Willmott, H 407 Wills, J 440 Wilmot, H 267, 270 Wilson, F 300 Wilson, M.C 258 Wilson, R 217 Wilson and others v St Helens Borough Council 99 Winchester, D 195, 296, 331 Wingrove, J 130 Winstanley, D 281, 282 Wolf, M 29 Womack, J 399 women’s employment customer service work 358–9, 363 emotional labour 358–9 equal opportunities 179, 181, 200; changing the focus 201–2; initiatives 188; labour market segregation and disadvantage 182, 184; legal issues 192, 193, 194, 195, 197 equal pay issues 335, 337–40 National Minimum Wage 335 part-time work 18, 22, 182 performance appraisal 303 MHRD01-Index 15/09/2005 10:51 Page 480 480 women’s employment (cont’d ) in personnel management 12–13 training and development 213 work–life balance 149 –50, 161, 165 Wood, S.J 159, 162, 170, 172, 173, 190, 323, 384, 399, 415 Woodall, J 199, 281, 282 Wooden, M 391, 411, 412 Woodland, S 161, 163, 170, 426, 429 Woolridge, A 416 worker directors 401 work–family integration approach 167–8 working hours and absenteeism 392 work–life balance 150 –3, 158 work–life balance 148 –9, 171–3 attendance management 393 childcare support 166 –7 context of debate: women’s employment patterns and family structure 149–50; working hours and ‘face time’ 150–3 flexible work arrangements 165 home-working 166 redesign of work 167– teleworking 166 work–family balance 154 work–family conflict 154 – work–family integration 154 work–family policies 167; adoption of 157– 62 determinants of provision 161–2; effects on employees and employers 163 –5; employee preferences 156 –7; family friendly backlash 163–4; implementing 169 –71; incidence in UK 157– 61; managing 168 –71; nature of 156 –7, 158; performance, organizational 164 –5 work organization and skills 226–7 Workplace Employee Relations Survey (WERS) absenteeism 389 career management 258 consultative committees 17 Index direct participation 403, 416 discipline 378, 379 equal opportunities 179, 194 outsourcing 94–5 performance appraisal 295, 298 personnel function, reinvention of 13 practice of personnel management 16, 17, 19, 20 size of workplace 23 subcontracting 94 teamwork 19 trade unions 428, 429, 441, 446 training and development 219, 221 union recognition 16 work–family policies 158–9, 162 working hours 150 Workplace Industrial Relations Survey (WIRS) collective bargaining 425 merit pay 328 Work Profiling System (WPS) 119 works councils 415 European see European Works Councils Germany 82 social partnerships 431 US MNCs 76 World Wide Web see Internet Worsley, R 194 Wrench, J 189 Wright, M 399, 408, 413 Wright, P.M 258, 399 Wustermann, L 223 Wyplosz, C 47 Yahoo! 293 Young, K 180, 200 Yukl, G 247, 249 Zanchi, L 189 Zingheim, P 322 zonal pay system 331 Zuboff, S 247 Zurich Financial Services, remuneration systems 331 MHRD01-Index 15/09/2005 10:51 Page 481 MHRD01-Index 15/09/2005 10:51 Page 482 ... of the publisher First edition published 1989 as Personnel Management in Britain Second edition published 1994 as Personnel Management Third edition published 2000 Fourth edition published 2005... Indelible Imprint? Keith Sisson vii ix x xi xii 45 Managing Human Resources in Multinational Companies Tony Edwards and Anthony Ferner 68 Managing Human Resources in the Networked Organization Trevor... the context of managing human resources (HR) over recent years This volume continues the style of earlier editions in which each chapter, in the words of the foreword to the 1989 edition, comprises