Human Resource Management 11th Edition Derek Torrington No Waiting Time
Human Resource Management 11th Edition Derek Torrington No Waiting Time
Torrington
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HUMAN RESOURCE MANAGEMENT
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NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION
BRIEF CONTENTS
Guided tour xiv
Preface xvii
Publisher’s acknowledgements xix
v
Brief Contents
vi
CONTENTS
Guided tour xiv Is greater divergence a possibility? 58
Preface xvii Summary propositions 59
vii
Contents
viii
Contents
ix
Contents
x
Contents
xi
Contents
xii
Contents
Supporting resources
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xiii
GUIDED TOUR
CHAPTER 7
ORGANISATIONAL AGILITY
AND FLEXIBILITY
Learning Objectives work in conjunction with the THE OBJECTIVES OF THIS CHAPTER ARE TO:
chapter-ending Summary Propositions to quickly show 1 Explain the principles of organisation design and assess the need for
organisational agility
you what you will learn about in the chapter and help 2 Outline the most common types of organisation structure
3 Discuss the reasons for and types of workforce flexibility
you compare how well you have understood the learn- 4 Discuss forms of both employer and employee flexibility and the
extent to which they are implemented in practice
Part 2 Resourcing: getting people in the right places to do the right things
however, there has been a trend to much flatter hierarchies with much wider spans of
control. This trend has been termed ‘delayering’ and is the process of taking out layers
of management in the hierarchy in order to speed response times and make the opera-
tion more efficient.
Activity boxes encourage you to regularly review and
WINDOW ON PRACTICE
critically apply your learning, either as an individual or
Delayering in large organisations
From the mid-1980s onwards many organisations that had traditionally had tall hierarchies
within a group. These have been developed for both
set about the process of delayering. This was common practice in financial services organ-
isations such as large banks (see e.g. Atkinson 2002) and in some newly privatised compa-
nies. The logic behind this restructuring process was to make organisations more flexible
students with little or no business experience, as well
and responsive to increasingly dynamic and competitive market conditions by devolving
decision-making responsibilities to those closest to the customer. In removing layers of
middle management, which had come to be seen as blockages to change and responsive- as those with more practical knowledge.
ness, organisations sought to improve the efficiency and effectiveness of their operations.
While the theory behind delayering was sound, its implementation was in many
instances problematic. As is often the case with change programmes, senior management
gave insufficient consideration to the people aspects of delayering. There is a large body
of research from this period which identifies the negative impact on the morale and moti-
vation of those remaining in delayered organisations. Those left behind were said to suffer
from ‘survivor syndrome’, characterised by mourning for lost colleagues, fearing for their
own future job security and suffering work intensification as they struggled to cope with
often increased workloads with fewer staff. In the face of these conditions, the hoped-for
efficiency gains were rarely achieved.
The links between employee health and performance were identified long ago. Indeed, the
origins of personnel management lie with social reformers such as the Cadbury family
Despite the problems identified in the Window on practice, the search for a responsive who, in the late nineteenth century, began to provide housing, healthcare and education
organisation structure continues, with a contemporary emphasis on agility (Holbeche to their workforces. Welfare officers, the early incarnation of today’s HR officers, were
2015). While a huge variety of organisation structures is possible, most can be categorised appointed to oversee the well-being of the workforce. Although altruism played a part in
into one of three broad types: entrepreneurial, bureaucratic and matrix. this paternalistic approach towards employees, there was also a strong business case
underpinning these practices. Healthy and well-educated workforces are more productive
than those struggling in poor accommodation and with insufficient access to education
The entrepreneurial form and healthcare. The impact of this focus on well-being on workers’ lives was substantial,
as can be seen in Cadbury’s museum in Bourneville which documents these early attempts
The entrepreneurial form relies on central power and can be described as primarily
at improving employee health and well-being.
organic. It is like a spider’s web, with one person or group so dominant that all power However, HRM’s development has had many stages and, for many years, there was
stems from the centre, all decisions are made by the centre and all behaviour reflects little enthusiasm to associate the function with what came to be viewed as a ‘tea and
expectations of the centre. There are few collective decisions, much reliance on sympathy role’. Certainly the supposed evolution of personnel into HR management in
the 1980s, and its preoccupation with the strategic aspects of business, left little room for
146 considerations of employee health. In recent years, however, health and well-being have
again become central to the HR agenda. CIPD, for example, has demonstrated significant
interest in health and well-being, arguing that it is wide-ranging in nature:
Given that good leadership and people management practices form the foundations of
building a healthy workplace, every employer needs to focus their attention on these
areas if they want to make a long-term and sustainable difference to people’s well-being.
M07 Human Resource Management 61645.indd 146 13/01/2020 10:24 (CIPD 2019)
Health and well-being thus go beyond the typically narrower concerns of absence manage-
ment to include a holistic approach to managing employees that recognises links to other
important concepts such as engagement. Although a widely agreed definition is lacking,
there is a general consensus that employee health and well-being underpins strong perfor-
mance and productivity: a sound business case clearly underlies attempts to improve the
workers’ lot.
The re-emergence of health and well-being in the HR agenda can perhaps be
explained by the changes to the employment relationship which have been widely
reported since the mid-1980s. Changes to the psychological contract have given rise to
far less job security for employees, organisational restructuring has led in many sectors
Regular quotes throughout help to enliven and to work intensification and the negative consequences for employee morale have been
widely reported. Alongside this, there has been an explosion in stress-related illness and
absence and an increased focus on supporting mental health. An ageing workforce (see
contextualise the subject. Chapter 23) also requires greater consideration of employee health and well-being.
A need to refocus on employee well-being to prevent detriment to organisations has
become apparent. A further impetus has come from the increasing interest in corporate
social responsibility within firms. Employers have a responsibility to create healthy
workplaces for reasons beyond performance, bearing a responsibility to society to
ensure employees are well treated and healthy. Promoting the work environment as a
source of better health and improving health in the workplace acts as means to reduce
social inequality through employment.
633
xiv
Guided Tour
SUMMARY PROPOSITIONS
Summary Propositions provide a useful revision tool 3.1. While there are important similarities between the approaches to HRM that are
prevalent in different countries, there are also very significant differences and only
enabling you to recap and check your understanding of the 3.2.
limited evidence of any international convergence over time.
The largest economies in the world over recent decades – the USA, Japan and
Objectives, you can quickly determine whether you are pre- ferences explain the ongoing differences between national approaches and those
who favour institutional explanations.
3.4. It is possible that we will in the future see greater divergence in HRM practice around
pared enough to move on, or need further study. the world rather than convergence as organisations in particular countries increas-
ingly specialise in defined forms of industrial endeavour.
General Discussion Topics are useful both as a basis for GENERAL DISCUSSION TOPICS
group discussion within tutorials or study groups, as well as about to expand internationally to be aware of the different ways that HRM is cus-
tomarily carried out in different countries?
2. Some argue that the future will bring both increased convergence and increased
activities to help develop your better understanding of the divergence internationally as far as HRM practice is concerned. How is this
possible?
3.
topics covered within the chapter.
To what extent do you find the models put forward by Geert Hofstede either com-
pelling or practically useful?
istic scenario. Improve your employability by answering the online sales are also growing rapidly.
As part of its overseas expansion plans, a few weeks ago, your company took over another
organisation (Small Co) which operates three high street fashion outlets in South East Asian
➤
associated questions and developing a better understanding
59
of business practice.
➤ cities and also supplies garments to a range of retailers in the UK from its factories. It employs
around 400 people in India, Pakistan and Bangladesh.
You have been seconded for a year to work at Small Co which has not to date ever
employed a professionally qualified HR manager.
Soon after your arrival at Small Co, you become aware of various management practices
which you are uneasy about and which are very different indeed from what you are used to at
Large Co.
Pay rates, for example, do not appear to be established using any rational system. Its staff
are appointed at a variety of rates according to what they were able to negotiate when they
start working for the company. There are also a good number of junior managerial staff who
are working in excess of 60 hours each week. Trade union membership is actively discouraged,
while training and development opportunities are minimal. There is no formal induction pro-
vided and no staff handbook. Health and safety procedures appear to be minimal. Staff turn-
over is running at 35%. You are even more concerned when you visit some of the stores and
garment factories that Small Co operates in Asia. Here pay is very low and hours of work are
long. The more senior posts all seem to be held by male relatives of top managers (all them-
selves men), while people seem to be hired and fired on a whim. While the managers you meet
deny bullying their staff, this is not what the staff themselves say to you when you speak to
them confidentially. Moreover, while it is denied that anyone under the age of 15 is employed,
some staff look to you to be considerably younger. You are also concerned to observe that
water contaminated with dyes and fixing agents appears to be being channelled directly into
a river behind one of the factories you visit.
You are taken aback by what you observe in your first few weeks at Small Co. You are used
to working in Large Co with its big HR division, range of ‘good practice’ employment policies
and prominent corporate code of ethics. None of this exists at Small Co and there is no sign at
all that any kind of ethical culture has been developed. It is, however, a very profitable
business.
Questions
1 What are the main strands of the business case you could make in support of the introduc-
tion across Small Co’s operations, as a matter of priority, an ethical culture alongside ethically
sound HR policies and practices? What counter-arguments might you expect to have to
answer?
2 To what extent might the differences in the way HR is practised in Large Co and Small Co
operations be explained by cultural or institutional factors?
xv
Guided Tour
➤
Questions
1 What staffing and other problems might be anticipated by the strategy of running a for-
profit and a not-for-profit hospital on the same site in exactly the same manner? How might
these potential problems be alleviated?
2 How would you design and implement HR practices so that they support the mission and
margin strategy? Give examples and justify for each HR practice – include recruitment/
selection, development and reward practices as a minimum, but add other relevant prac-
tices to these.
3 To what extent could this mission and margin strategy be used in other types or organisation.
What are the reasons behind your assessment?
Source: Kellner, A., Townsend, K. and Wilkinson, A. (2016) ‘The mission or the margin? A high-performance work system
in a non-profit organisation’ The International Journal of Human Resource Management, Vol. 28, No. 14, pp. 1938–59.
FURTHER READING
Bailey, C., Mankin, D., Kelliher, C. and Garavan, T. (2018) Strategic Human Resource Management.
Oxford: Oxford University Press.
This is a very readable yet thorough and wide-ranging text of strategic HR. Chapters 5, 6 and 8 are
particularly relevant for our chapter here.
Boxall, P. and Purcell, J. (2016) Strategy and Human Resource Management. Basingstoke: Palgrave
Macmillan. Fourth edition
A very useful source book, particularly good on the best practice/best fit debate and on black box
thinking. Also very useful for its exploration of strategic HRM in different contexts: manufacturing,
services, multi-divisional firms and multinational firms
Jiang, K., Takeuchi, R. and Lepak, D. (2013) ‘Where do we go from here? New perspectives on the
Black Box in strategic human resource management research’, Journal of Management Studies,
Vol. 50, No. 8, pp. 1448–80.
This article provides an excellent summary of the mechanisms mediating the HR–performance link.
It provides an excellent review of all the literature in this area and proposes a multilevel model
(organisational, team, individual) of how mediating mechanisms work.
Piening, E., Baluch, A. and Ridder, H. (2014) ‘Mind the intended–implemented gap: Understanding
employees’ perceptions of HRM’, Human Resource Management, Vol. 53, No. 4, pp. 545–67.
The authors report four case studies in German health and social services organisations and explore
the links and potential gaps between intended, implemented and perceived HR practices. In particu-
lar they explore the importance of employee expectations.
WEB LINK Some chapters list relevant Web Links that can help expand
www.cranet.org
83
your understanding of the topics covered within the chapter.
the research behind the chapter and additional sources of Andreeva, T., Vanhala, M., Sergeeva, A., Ritala, P. and Kianto, A. (2017) ‘When the fit between HR
practices backfires: Exploring the interaction effects between rewards for and appraisal of knowl-
edge behaviours on innovation’, Human Resource Management Journal, Vol. 27, No. 2,
pp. 209–27.
information to support your learning. Arkin, A. (2011) ‘Cash in the chips’, People Management, May, pp. 36–9.
Atkinson, C. and Hall, L. (2011) ‘Flexible working and happiness in the NHS’, Employee Relations,
Vol. 33, No. 2, pp. 88–105.
Baird, L., Meshoulam, I. and DeGive, G. (1983) ‘Meshing human resources planning with strategic
business planning: A model approach’, Personnel, Vol. 60, Part 5, pp. 14–25.
Barney, J. (1991) ‘Firm resources and sustained competitive advantage’, Journal of Management,
Vol. 17, No. 1, pp. 99–120.
Batt, R. and Banerjee, M. (2012) ‘The scope and trajectory of strategic HR research: Evidence from
American and British journals’, International Journal of Human Resource Management,
Vol. 23, No. 9, pp. 1739–62.
Boxall, P.F. (1996) ‘The strategic HRM debate and the resource-based view of the firm’, Human
Resource Management Journal, Vol. 6, No. 3, pp. 59–75.
Boxall, P. and Macky, K. (2009) ‘Research and theory on high-performance work systems: Progress-
ing the high-involvement stream’, Human Resource Management Journal, Vol. 19, No. 1,
pp. 3–23.
Boxall, P. and Purcell, J. (2016) Strategy and Human Resource Management. Basingstoke: Palgrave
Macmillan.
Butler, J. (1988) ‘Human resource management as a driving force in business strategy’, Journal of
General Management, Vol. 13, No. 4, pp. 88–102.
CIPD (2019) Strategic Human Resource Management. Factsheet. London: CIPD.
CIPD (2018) Human Capital Measurement and Reporting. Factsheet. London: CIPD.
CIPD (2014) Managing the Value of Your Talent: A New Framework for Human Capital Measure-
ment. Key Findings and Conclusions. London: CIPD, July.
Collins, C. and Kehoe, R. (2017) ‘Examining strategic fit and misfit in the management of knowl-
edge workers’, ILR Review, Vol. 70, No. 2, pp. 308–35.
Fombrun, C., Tichy, N.M. and Devanna, M.A. (1984) Strategic Human Resource Management.
New York: Wiley.
Guest, D. (2001) ‘Human resource management: When research confronts theory’, International
Journal of Human Resource Management, Vol. 12, No. 7, pp. 1092–106.
Guest, D. (2011) ‘Human resource management and performance: Still searching for some answers’,
Human Resource Management Journal, Vol. 21, No. 1, pp. 3–13.
Huselid, M. (1995) ‘The impact of human resource management practices on turnover, productivity
and corporate financial performance’, Academy of Management Journal, Vol. 38, No. 3,
pp. 635–73.
Jacobs K (2018) ‘hipster enough’, People Management, July/August, pp 24–8
Jeffery, R. (2015) ‘You don’t always have to be the best’, People Management, April, pp. 18–20.
Jiang, K., Takeuchi, R. and Lepak, D. (2013) ‘Where do we go from here? New perspectives on pthe
Black Box in strategic human resource management research’, Journal of Management Studies,
Vol. 50, No. 8, pp. 1448–80.
Kaufman, B. (2015) ‘Evolution of Strategic HRM as seen through two founding books: A 30th
anniversary perspective of development in the field’, Human Resource Management, Vol. 54,
No. 3, pp. 389–407.
84
xvi
PREFACE
This book has evolved steadily for over forty years to this eleventh edition. Our objective has always
been to track the development of the personnel/HR function and its activities in a way that fits with
the changing approaches to the teaching of the subject in universities. There is no doubt that academic
research and teaching has an important impact on practice. We see our role as helping the teaching
and learning process to assist those working, or aspiring to work, in HR or kindred roles. We hope those
who read it will move on to work in a way that contributes to the productivity of the organisation in
which they are employed. The British economy has one of the lowest rates of productivity improvement
in the western world. HR people believe that improvement can be achieved by making people’s work
more satisfying and effective in making a success of their jobs. That personal success must be connected,
even if indirectly, to productivity improvement. Without that link between the decent work and overall
productivity improvement, the success is shallow and fragile. Our updating of every chapter includes the
implications of Brexit, the increasing use of artificial intelligence (AI) in different parts of HR. We have
also developed our treatment of small and medium enterprises.
We live and work in Britain and basing a text in a specific context gives it more substance and mean-
ing to its readers. Things that were understood in isolation fit together and acquire new meaning when
applied in a specific setting. Nonetheless, we recognise the increasingly global nature of HR activities
and our many readers who are working and studying in very different countries, so we try hard to be
outward-looking, with international examples and references.
Our structure is of seven distinct parts with thirty-five chapters having a structure of objectives, text,
summary propositions, general discussion topics, theory into practice, further reading and references.
Bearing in mind that many of our readers as yet lack work experience, we entitle our chapters on skills
as ‘Employability skills’, those basic skills that can be to some extent learned and practised away from
the workplace. We see advanced skills (in the final chapter) as those often associated with more senior
roles, such as chairing meetings or managing consultants, in which experience is an essential element
in acquiring skilfulness.
As before there are several design features to assist readers further in using and learning from the
text; these include:
● Window on Practice boxes provide illustrative material throughout the text, including examples
of real company practice, survey results, anecdotes and quotations, and court cases.
● Integrated Activity boxes encourage readers to review and critically apply their understanding at
regular intervals throughout the text, either by responding to a question or by undertaking a small
practical assignment, individually or as part of a group. In recognition that this text is used on both
professional and academic courses, most of the exercises reflect the fact that many students will have
little or no business experience. Others may appear to exclude students who are not in employment
by asking readers to consider an aspect in their own organisation; however, the organisation could
be a college or university, the students’ union, a political body or sports team.
● Discussion topics: at the end of each chapter there are two or three short questions intended for
general discussion in a tutorial or study group.
xvii
Preface
● Theory into Practice at the end of chapters enable readers to review, link and apply their under-
standing of the chapter to a business scenario. For skills chapters ‘Theory into Practice’ becomes
‘Putting it into Practice’ as an indicator that these are generally more practical than traditionally
academic.
● Further readings for each chapter suggest further relevant readings, with guidance on their value.
● References at the end of chapters aid further exploration of the chapter material, as required.
Glossary of topics taken from the text is in the companion website.
Sections of Human Resource Management, 11th edition that match the CIPD Level 5
(Undergraduate)
CIPD Chapters
Business issues and contexts of Human Resources 2
Using information in Human Resources 5
Managing and co-ordinating the Human Resources Function 30
Resourcing an talent planning 8–10, 19
Reward management 25–28
Improving organisational performance 4, 11–13, 15
Employee engagement 13, 14, 23, 32
Contemporary issues in Employee relations 21–24, 32, 33
Employment law 22
Organisation design and development 7, 16
Human resources delivery 4, 23, 30
This mapping leaves out the vital elements of this book that go above and beyond the CIPD framework,
namely:
● A full chapter on the HR function and how it has developed into what it is today.
● Three chapters on global issues and managing internationally, as well as constant international
references throughout the text and in the exercises at end of chapters.
● The book has chapters on health and well-being, business ethics, AI, analytics and planning.
● There are six chapters on employability skills, designed to enable new recruits in HR to “hit the
ground running” in their first week.
● Finally there are two completely new chapters: one on the future of work, and the other on HR in
small and medium enterprises, one of the main elements of economic growth that is usually ignored
in mainstream management literature.
xviii
PUBLISHER’S
ACKNOWLEDGEMENTS
Text Credit(s):
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26 March. © The Financial Times Limited 2019. All rights reserved; 6 BBC: BBC (2008b) ‘What did go
wrong at Terminal 5?’ BBC News Website, 30 March; 9 LexisNexis: Stevens, J. (ed) (2005) Managing Risk:
The Human Resources Contribution. London: LexisNexis Butterworths, pp. 137; 13 Allan Flanders: Allan
Flanders, 1960; 14 John Wiley & Sons, Inc.: Bach, S (2005) ‘Personnel Management in Transition’ in S.
Bach (ed) Managing Human Resources: Personnel management in transition (4th Edition). Oxford: Black-
well, pp. 28–29; 17 Taylor & Francis Group: Storey, J, Ulrich, D. and Wright, P. (2009) ‘Introduction’ in
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ment. London: Routledge. pp. 4; 18 John Wiley & Sons, Inc.: Purcell, J. and Hutchinson, S. (2007)
‘Front-line managers as agents in the HRM-performance causal chain: theory, analysis and evidence’,
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ment’ in D Brent Smith (ed) The People Make the Place: Dynamic Linkages between individuals and
organizations. New York, Taylor and Francis; 19 The Chartered Institute of Personnel and Develop-
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and Performance Link: Unlocking the Black Box. London: CIPD; 21–22 Bernard Marr: Reprinted with
permission from Bernard Marr, Published online in 2013: www.linkedin.com/pulse/20131118060732-
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best ambassadors’ People Management, July, pp. 22–23; 70 The Chartered Institute of Personnel and
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xix
Publisher’s Acknowledgements
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No. 3, Academy of Management; 74 John Wiley & Sons, Inc.: Adapted from Samnani, A. and Singh, P.
(2013) ‘Exploring the fit perspective’, Human Resource Management, Vol. 52, No. 1, pp. 124–44; 76 John
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& Sons, Inc.: Wright, P. and McMahon, G. (2011) ‘Exploring human capital: Putting human back into
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xxi
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