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Eighth Edition

Derek Torrington
Laura Hall
Stephen Taylor
Carol Atkinson

Financial Times
Prentice Hall
is an imprint of

Harlow, England London New York Boston San Francisco 'Toronto


Sydney Tokyo Singapore Hong Kong Seoul Taipei New Delhi
Cape Town Madrid Mexico City Amsterdam Munich Paris Milan

Guided tour
Preface
Acknowledgements

xvi
xix

xxi

3 Strategic human resource


management
Strategic human resource management
and human resource strategy
The link between business and
HR strategy

H In! M mm a mi iresowiirc
1

1 The nature of human resource


management

Defining human resource management

Delivering HRM objectives

15

HRM and the achievement of


organisational effectiveness

16

Contemporary debates in HRM

18

57
58
.

61

Theoretical perspectives of strategic


human resource management

63

Summary propositions

73

General discussion topics

73

Further reading

73

Web link

74

References

74

4 Organisation design and


flexibility

A philosophy of human resource


management

25

Summary propositions

26

Organisation design

78

General discussion topics

26

Organisation structures

80

Further reading

27

Job design

84

References

27

Organisational flexibility

89

Employee flexibility

94

30

Summary propositions

99

Competition

31

General discussion topics

99

The labour market

35

Further reading

100

Regulation

45

References

100

Trade unions

47

Ethical awareness

51

Summary propositions

54

General discussion topics

2 The context of human


resource management

5 Workforce planning

77

103

54

The contribution and feasibility of


HR planning

104

Further reading

54

The scope of workforce planning

107

References

55

Analysing the environment

108

Contents
Forecasting future human resource
needs

113

Analysing the current situation and


projecting forward

115

Reconciliation, decisions and plans

120

Summary propositions

124

Selection as a two-way process

179

124

Selection criteria

180

Web links

125

Choosing selection methods

183

Further reading

125

Selection methods

184

References

125

Final selection decision making

197

Validation of selection procedures

197

Summary propositions

200

General discussion topics

201

Further reading

201

References

201

General discussion topics

6 The international dimension

127

Further reading

175

References

176

8 Selection methods and


decisions

178

Cultural variations

129

Institutional variations

134

HRM in international organisations

136

Managing expatriates

144

Summary propositions

149

General discussion topics

149

Turnover rates and trends

206

Further reading

149

The impact of staff turnover

207

References

150

Turnover analysis and costing

208

Staff retention strategies

213

Summary propositions

220

General discussion topics

220

Further reading

220

References

221

Part 1 Case study problem

152

155

7 Recruitment

157

Determining the vacancy

159

Internal recruitment

161

Methods of recruitment

162

The recruitment methods compared

163

Recruitment advertising

163

Online recruitment

167

Employer branding

170

Control and evaluation

171

Correspondence

172

Shortlisting

174

Summary propositions

175

General discussion topics

175

9 Staff retention

10 Ending the contract

204

223

Unfair dismissal

224

Constructive dismissal

235

Compensation for dismissal

236

Wrongful dismissal

238

Notice

239

Summary propositions

239

General discussion topics

240

Further reading

240

References

240

Legal cases

241

Part 2 Case study problem

242

Contents

(Part 3 IPD-(FirmaDi]ffies s t o e e e s s
amid]
245

11 HRM, employee engagement


and organisational
performance

Do leaders need different styles for


different situations?

293

Do we really need heroes?

296

Followership

300

Summary propositions

302

O A ~7

247

General discussion topics

302

HR and high performance wprking

248

High performance work systems

Further reading

303

948

References

303

The 'black box' of the


HRM/performance link

250

Employee perspective on the


HR/performance link

252

The role of the line manager

253

Employee engagement

255

Critiques of HPWS

14 Managing attendance and


absence

306

The national context

307

The organisational context

309

257

Process and causes of absence

310

Summary propositions

260

Managing for attendance

312

General discussion topics

260

Summary propositions

323

Further reading

261

General discussion topics

323

References

261

Further reading

324

References

324

12 Employee performance
management

263

Performance management and


performance appraisal

264

Stages in a performance management


system

270

Individual versus team performance


management

275

Part 3 Case study problem

326

P a r t 4 weD@[pmn)ifi)ft

329

15 Organisational change and


development

331

The nature of change and the role of


planned change

332

How can organisations be responsive


to change?

334

283

Addressing the employee experience


of change

336

283

Reconceptualising change

341

References

284

Organisational development as
a specific approach to change

343

13 Leadership

287

The evolution and future of OD

346

Leadership and management

288

Summary propositions

347

What are the traits of leaders and


effective leaders?

289

General discussion topics

347

Further reading

347

References

348

Implementation and critique of


performance management

277

360-degree feedback

279

Summary propositions

282

General discussion topics


Further reading

'

What is the 'best way to lead'?


Leadership styles and behaviours

291

xi

Contents

Summary propositions

440

350

General discussion topics

441

Knowledge management

351

Further reading

441

Organisational learning and learning


organisations

References

441

361

Summary propositions

370

16 Knowledge management and


organisational learning

443

370

A regulatory revolution

444

Further reading

370

The contract of employment

447

References

371

Discrimination law

450

Equal pay law

455

Health and safety law

458

Family-friendly employment law

461

The national minimum wage

462

Is employment law a benefit or


a burden for businesses?

464

Summary propositions

467

General discussion topics

467

Further reading

467

References

468

Legal cases

468

General discussion topics

17 The context of employee


learning and development

374

The national picture and strategy

376

National training framework

379

NVQ framework and competences

385

Summary propositions

388

General discussion topics

389

Further reading

389

References

389

18 Learning and development

392

The nature of learning

393

Practical characteristics of learning


and development

394

- Behavioural competencies

399

Methods of learning and development

403

Evaluation of training and development

416

Summary propositions

418

General discussion topics

418

Further reading

418

References

419

Part 4 Case study problem

422
425

21 Equal opportunities and


diversity

469

How 'equal' is the workforce?

470

Different approaches to equality

474

Implications for organisations

481

Summary propositions

484

General discussion topics

485

Further reading

485

Web links

485

References

486

22 Discipline and grievance

488

The Milgram experiments with


obedience

490

429

What do we mean by discipline?

493

Terminology

430

What do we mean by grievance?

495

Information sharing

432

Consultation

437

The framework of organisational


justice

496

Co-determination

439

Grievance procedure

500

19 Employee voice

xii

20 The legal framework of work

Contents
Disciplinary procedure

502

Are grievance and discipline procedures

Sick pay

580

Company cars

582

equitable?

503

London allowances

583

Summary propositions

505

Flexible benefits

584

General discussion topics

506

Summary propositions

586

Further reading

506

General discussion topics

586

506

Further reading

586

Part 5 Case study problem

508

References

587

Fart

513

23 Setting pay

References

-"

Part 6 Case study problem

589

518

P a r t T ([fi]'D'ini[p@[rao''j7 D S S M S

591

Introducing reward management

519

26 Talent management

593

The elements of payment

524

Setting base pay

526

The importance of equity

532

Salary progression

534

Total reward

What is talent?

594

Talent management activities

595

Strategic talent management

601

542

How organisations evaluate talent


management

604

Summary propositions

544

Barriers to talent management

605

General discussion topics

545

Critique of talent management

606

Further reading

545

Summary propositions

607

References

546

General discussion topics

608

Further reading

608

References

609

24 Incentives

548

Basic choices

549

The extent to which incentives are paid

552

Payment by results schemes

554

Disadvantages of PBR schemes

556

The ethical dimension

612

Performance-related pay

557

Early management concern with ethics

616

Skills-based pay

562

Renewed interest in business ethics

617

Profit sharing

564

Summary propositions

566

Ethics and human resource


management

621

General discussion topics

566

Ethics across national boundaries

624

Further reading

566

References

567

Some current and developing ethical


dilemmas

625

Summary propositions

631

569

General discussion topics

631

Pensions

571

Further reading

632

Occupational pensions and HRM

578

References

632

25 Pensions and benefits

27 Ethics and corporate social


responsibility

611

xiii

Contents

28 The changing HR function

634

Part m S e l e c t e d IhM sMIBs

695

Analysis of HR roles and structures

635

HR strategic role

638

31 Skills set 1: Face-to-face and


other communications skills

697

HR shared services

641

Effectiveness in interaction

698

Outsourcing HR

645

Different types of interaction

700

The role of line managers in HR

648

Fundamental skills in setting the tone

701

Critique of the development of HR roles


and structures

Fundamental skills in listening

701

650

Fundamental skills in questioning

702

Summary propositions

652

Fundamental skills in feedback

704

Summary propositions

705

General discussion topics

705

Further reading

705

Reference

706

I The selection interview

706

Summary propositions

717

General discussion topics

717

Further reading

717

Web links

718

References

718

II The appraisal interview

718

Summary propositions

727

General discussion topics

728

Further reading

728

General discussion topics

ceo

Further reading

ceo
DOo

References

DO4

29 Information technology and


human capital measurement

653
CCA

657

The contribution of technology to


effective and efficient HR provision

658

Measuring HR and human capital

663

Human capital reporting

674

Summary propositions

676

General discussion topics

676

Further reading

676

Web links

677

References

677

30 Health and well-being

679

Web links

728

The nature of health and well-being

680

References

729

Initiatives within a health and well-being


agenda

682

III Coaching

729

Summary propositions

734

General discussion topics

734

Further reading

735

The impact of health and well-being


initiatives on individuals and
organisations

685

Criticisms of health and well-being


initiatives

Web links

735

687

References

735

Summary propositions

690

IV Presentation

735

General discussion topics

691

Summary propositions

739

Further reading

691

General discussion topics

739

Web links

691

Further reading

739

References

692

Web links

739

693

Reference

740

Part 7 Case study problem

Contents

32 Skills set 2: Skills for analysis


and decision making

769

742

X Using and interpreting statistics

770

Summary propositions

751

XI Designing procedures

779

General discussion topics

752

Summary propositions

783

Further reading

752

Further reading

783

Web links

752

XII Designing questionnaires

784

References

752

Further reading

787

VII Report writing

753

Web links

787

Summary propositions

757

XIII Using consultants

788

Further reading

757

Summary propositions

790

Reference

758

General discussion topics

790

VIII Presentation at tribunal

758

Further reading

791

Further reading

761

Web links

791

References

762

Reference

791

IX Dealing with bullying and


harassment at work

762

Summary propositions

767

General discussion topics

767

Further reading

767

V Mediation
VI The disciplinary or grievance
interview

740

Web links

, 768

References

Part 8 Case study problem and


exercises
Glossary
Index

792
794
802

768

XV

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