ONTENTS k · HRM policy and practice is decoupled from the bureaucracy, to be determined by the...

List of figures and tables viii

Acknowledgements ix

Notes on the contributors x

1I N T R O D U C T I O N

H E L E N N E W E L L A N D H A R RY S C A R B R O U G H 1

Analysing case studies 5

Reference 8

2U N D E R S TA N D I N G H U M A N R E S O U R C E M A N A G E M E N T

H E L E N N E W E L L A N D H A R RY S C A R B R O U G H 9

Introduction 10

Dimensions of change 12

The importance of external and internal organisational contexts 13

The links between business strategy and HRM strategy 27

The role of management in HR 30

Patterns of employment 34

The gap between policy and practice 35

Conclusion 36

References 37

3A L C A N : M A N A G I N G C H A N G E

T H E C A S E O F T E A M W O R K PAU L E DWA R D S A N D M A RT Y N W R I G H T 39

Debates on teamworking 40

How widespread is teamwork? 42

Factors which promote teamwork 43

The case study 45

References 54

kCO N T E N T S

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v i k C O N T E N T S

4B U I L D S O C : D O E S T E A M W O R K I N G M E A N T E A M PAY ?

K E I T H S I S S O N 57

The significance of the pay system 58

The experience of PRP 63

The coming of teamwork 66

Conclusion 70

The case study 71

References 77

5A C C O U N T C O : S M A L L I S B E AU T I F U L ?

H R P L A N N I N G I N A S M A L L F I R M H E L E N N E W E L L 79

Human resource planning 80

Approaches to human resource planning 81

Human resource management in small firms 84

What are recruitment and selection? 87

The importance of getting recruitment and selection ‘right’ 88

The regulatory environment 89

The ‘best practice’ model 90

The case study 101

References 104

6M U LT I C O : N E W T E C H N O L O GY A N D T H E S A L E S F O R C E

I N T R O D U C I N G T E C H N I C A L C H A N G E I N A N O N - U N I O N

E N V I R O N M E N T H E L E N N E W E L L A N D C A R O L I N E L L OY D 107

Introducing technical change 108

The case study 117

References 126

7L O N D O N B O R O U G H : A PA RT N E R S H I P A G R E E M E N T ?

K E I T H S I S S O N 129

Partnership in theory and practice 130

The case study 147

References 150

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C O N T E N T S k v i i

8B A N KC O : M A N A G E R I A L A N D O R G A N I S AT I O N A L

L E A R N I N G E L E N A A N T O N A C O P O U L O U 153

Who learns, the organisation or its employees? 154

The factors which inhibit or facilitate managerial learning 158

The retail banking sector 166

The case study 167

References 174

9P H A R M A C O : O R GA N I S AT I O N A L R E S T R U C T U R I N G A N D

J O B I N S E C U R I T Y H E L E N N E W E L L A N D C A R O L I N E L L OY D 177

Job insecurity 178

The pharmaceutical industry 183

The case study 183

References 192

10 T E L C O : M A N A G I N G A D I V E R S E W O R K F O R C E

S O N I A L I F F 195

Anti-discrimination legislation and equality codes of practice 196

The case study 206

References 214

11 E N G I N E E R I N G P R O D U C T S : I N T E R N AT I O N A L I S I N G

P R O D U C T I O N T O N Y E DWA R D S 217

The internationalisation of economic activity 218

The automotive components industry 228

The case study 229

References 235

12C O N C LU S I O N S : D E V E L O P I N G T H E N E W A G E N DA

F O R H R M H E L E N N E W E L L A N D H A R RY S C A R B R O U G H 239

HRM and the management of change 242

HRM: developing the new agenda 243

References 244

Index 245

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I N T R O D U C T I O N

H E L E N N E W E L L A N D H A R RY S C A R B R O U G H

k

kCH A P T E R O N E

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2 k H U M A N R E S O U R C E M A N A G E M E N T I N C O N T E X T: A C A S E S T U D Y A P P R O A C H

Human resource management (HRM) is defined here in simple

terms as the management of people in organisations. In modern

societies, with complex changes in the nature of work and tech-

nology, it is increasingly recognised that the effective and efficient

production of goods and services requires more from employees

than their passive compliance with managerial instructions. What is

needed is their active commitment and initiative. Management of

human resources can be seen to be as important for corporate

success as the handling of any other management activities.

This text embodies a different, and, we believe, effective

approach to the study of HRM. Most textbooks on HRM tend to be

based either on theoretical discussions, or a relatively fixed menu of

HRM tasks and functions. The latter would typically include tasks

such as recruitment and selection, performance management,

human resource planning and so on. Although the standard menu of

HRM tasks still has a role to play in organisations, its usefulness is

being steadily diminished by the shift away from traditional func-

tional and hierarchical management structures towards process-

based or even virtual forms. In a business process context, much of

the responsibility for HRM issues is devolved to line management.

HRM policy and practice is decoupled from the bureaucracy, to be

determined by the prevailing pressures of a dynamic business envi-

ronment, be that at an operational or strategic level.

For these reasons, we have moved away from these existing

formats towards a case-based approach in which each case study

illuminates a specific issue or theme which has wide relevance to

management students. The rationale for the case-based approach

can be presented briefly as follows:

� Much of the debate in HRM centres on the distinction between

rhetoric and reality. We have privileged the latter, even at the

expense of the neat ideal types of which HRM theorists are so

fond.

� One of the reasons for the reality gap in much existing debate

is to do with the importance of context for HRM practice.

k


I N T R O D U C T I O N k 3

Management actions which have a behavioural dimension – in

other words, the bedrock of HRM practice – are not amenable

to universal models based on rational actors. Behaviour is cued

and enacted according to specific organisational, cultural and

institutional contexts. The best way of understanding the

context dependency of HRM practice is to show it in action

through case examples.

� Research into HRM has consistently shown that the formal

policies which organisations espouse are not always a good

guide to the way they are implemented in practice. HRM poli-

cies often have unintended consequences which are not fully

considered in the decision-making process. Case studies are an

especially good medium for highlighting the contrast between

policy and implementation, and for demonstrating the impor-

tance of unanticipated effects.

� To focus on the practice of HRM is not to dismiss the rhetoric

as unimportant. Indeed, the symbolic order (cf. Tyson, 1995)

which management seek to create within an organisation – the

use of language and the manifestations of culture – has its own

effects on employee behaviour. Again, however, the impact of

the symbols is dependent on the way they are interpreted by

specific employees within a specific context.

The advantages of case studies can easily be overstated of course.

Although long established as a teaching method by Harvard Busi-

ness School and others, the traditional business case study presents

a highly selective view of organisational life. Viewing the world

simply in terms of managerial problem-solving is a poor guide to the

political and behavioural nuances of HRM practice. It follows that

the case studies presented here are far removed from the Harvard

model. Rather, each case is based on critically oriented empirical

research, presenting an unvarnished, if necessarily abbreviated,

account of a particular theme or issue. The accompanying briefing

for each case serves to underline the contextual nature of HRM prac-

tice and the relevance of each case to wider HRM application.



This is, therefore, a collection of research-based case studies

which report on real-life situations: they are neither anecdotes nor

imaginary depictions. They are condensed insights generated out of

in-depth research. All the case studies presented are taken from

recent research undertaken by members of the Industrial Relations

and Organisational Behaviour teaching group and members of the

Industrial Relations Research Unit. They therefore reflect current

issues in real organisations. They do not, however, represent an

attempt to reproduce comprehensively the total range of situations

to which HRM is relevant. Rather they represent a selection of those

cases which raise important HR issues and which are both inter-

esting and of current relevance in HRM.

In sequencing the case studies, our aim has been to analyse

HRM at different levels, beginning with a focus on micro issues,

enterprise or shop-floor relations (work organisation, pay, the intro-

duction of new technology) and moving to a more macro focus,

dealing with corporate HR policies (such as decisions about whether

or not to become a ‘learning organisation’, whether to seek to

develop partnership agreements, how to manage a diverse work-

force) and finally to an international focus looking at HRM issues in

a large multinational organisation.

While there are a number of human resource tasks common to

most organisations (for example recruitment, pay and so on), it is

also important to realise that HRM is about process – the ways in

which organisations get things done through people. It is not just a

bundle of techniques. For this reason the text is designed to develop

your understanding and awareness of the main aspects of HRM as

broadly defined. It does not provide a set of techniques which the

manager can apply directly to her or his own organisation. The

issues involved are too complex to permit the formulation of general

laws or principles. Making sense of relations among workers,

between managers and between management and the workforce is as

much an art as a science. This helps to explain the bewildering

succession of fads and fashions in this area, as publicists and consul-

tants invent novel schemes for keeping employees happily produc-

tive. In fact there are no panaceas or universal recipes. For managers,



there is ultimately no alternative to working out an approach to suit

their own organisation’s circumstances. The problems of doing so

are eloquently underlined by the cases presented here.

AN A LY S I N G C A S E S T U D I E S

HRM involves a sensitive, multidisciplinary analysis of the issues.

The problems encountered are rarely open to ‘one best way’ solu-

tions. In most situations it is possible to argue persuasively for any

of a range of different approaches. The test of analytical ability, then,

is the extent to which the implications of the chosen policy have

been thought through and the response to possible outcomes antic-

ipated. Case studies provide the student with the opportunity to

develop their ability to choose between and justify policy choices.

This will enable students not only to connect their personal exper-

ience to general principles and arguments, but also to link analysis

to practical situations.

Accompanying each case is a background briefing which helps to

locate the case study against the backdrop of wider trends and

concerns. This briefing provides pointers to the critical issues which

emerge in each case, and also helps us to understand what is context

specific or more general about those issues. Through a reading of

the background briefing, the student should be able to develop a

better analysis of the case itself, and an improved appreciation of the

wider issues which it exemplifies.

There are many different approaches to analysing cases,

depending on the preferences and learning style of the individual

student. However, for most students the best approach normally

involves following a ‘step-by-step approach’. Addressing this to the

student directly, we can identify the following major steps:

� Understanding the situation

� Defining the problem

� Generating and evaluating solutions

� Implementing solutions.

k



U N D E R S TA N D I N G T H E S I T UAT I O N

This is perhaps the single most important stage in successfully

analysing a case study and for this reason the majority of the second

chapter has been spent in providing you with the necessary concepts

and tools to do this. Each case study is also accompanied by a back-

ground briefing which locates it within wider themes and trends. Of

course, understanding will also be enhanced through reading and

rereading the case studies and trying to absorb the information. You

need to work out what information is missing, what constitutes fact,

and what is opinion. You also need to consider the situation from

the different perspectives of the people involved in order to develop

a full understanding of the case.

D E F I N I N G T H E P R O B L E M

Often the specific questions that are asked will guide the student

towards particular problem areas. However, you should not rely on

this exclusively. You need to spend time identifying the problem(s).

Problems are not always explicit, they may be implicit, becoming

apparent only after the details of the case have been fully absorbed.

They may be current problems or indications as to potential threats

and opportunities, and problem areas may be interrelated. Finally,

when you have formulated the problems, you should remember to

provide supporting evidence from the case study. It is important to

be able to identify what it was in the case study that led you to your

conclusions.

When diagnosing the problem you should draw on your know-

ledge of the relevant literature. What problem is an organisation in

this situation likely to suffer from, what problems have other organ-

isations in this or similar situations suffered from, and what are the

common problems within this particular area of HRM? Theoretical

knowledge will be a major resource to draw upon, although your

own knowledge and experience may also be relevant. This part of

the case study process requires you to integrate your theoretical

knowledge with your analysis of the practical situation.



The problems need to be analysed in terms of symptoms and

causality. It can be useful at this stage to summarise your analysis in

a short statement about the problems, with supporting evidence,

and some attempt to prioritise problems, for example in terms of

their importance to the organisation, urgency, and ease of solution.

G E N E R AT I N G A N D E VA LUAT I N G S O LU T I O N S

There is rarely only one possible solution to a social science

problem. You should try to be as creative as possible, while always

bearing in mind what is feasible given the actual difficulties and

complexities of the case and the context you have identified. Again,

you will find the literature a useful source of material on what other

companies have done in similar situations.

Try to predict the reaction to your proposed solutions, not only

by managers but by other stakeholders in the organisation, particu-

larly employees and their representative bodies. It is important to

realise that line managers and HRM professionals may see your

proposals in very different ways, so you need to think through what

impact a solution will have on a whole range of individuals and

groups throughout the organisation. You will find it useful to refer

to the literature to predict any possible problems that may arise with

your solutions. It is also important to clarify the criteria of choice

between different solutions.

I M P L E M E N T I N G S O LU T I O N S

You should also be aware of the political processes at work in

‘selling’ your proposal. Who is going to have to be persuaded and

convinced of what you say in order to make the proposal work? How

are you going to persuade them? What types of argument are going

to appeal to which groups/individuals? Who is likely to oppose your

plans? What could you do about this? What is the cost of what you

propose? What is the likely timetable of events? What will be the

implications of change for different groups and individuals? Finally,

you should always bear in mind whether the HRM department has



the skills and/or power base to manage successfully the process and

changes that you are advocating. If not, does your plan require the

backing of another senior manager and who might this be?

RE F E R E N C E

Tyson, S. (1995) Human Resource Strategy: Towards a General Theory of HRM. London:

Pitman.


AAbraham, K. and Newcorn, C. 102, 104

ACAS 59, 61, 63, 77

Al-Maskati, H. and Thomas, A.B. 165,

174

Allen, M. 140, 150

Antonacopoulou, E.P. 162, 174

Appelbaum, E. and Batt, R. 41, 54

Appelbaum, E. and Berg, P. 44, 54

Argyris, C. and Schön, D.A. 154, 174

Arrowsmith, J. and Sisson, K. 59, 77, 141,

150

Atkinson, J. 80–1, 87, 104

Atkinson, J. and Meager, N. 87, 104

Atkinson, J. and Storey, J. 98, 104

BBach, S. 60, 77

Bacon, N., Ackers, P., Storey, J. and

Coates, D. 84–5, 104–5

BBC 197, 214

Beer, M. 62, 77

Berggren, C. 40, 54

Blinkhorn, S. and Johnson, C. 96, 105

Brading, E. and Wright, V. 63–4, 77

Brennan, J. and McGeevor, P. 89, 105

Brockner, J., Konovsky, M., Cooper-

Schneider, R., Folger, R., Martin, C.

and Bres, R. 78, 192

Buchanan, D. and Boddy, D. 114, 126

Buchanan, D. and McCalman, J. 44, 54

Business in the Community 200, 214

CCapelli, P. and Singh, H. 243–4

Carroll, N., Marchington, M., Earnshaw, J.

and Taylor, S. 101, 105

Carroll, P. 166, 174

Casey, D. 157, 174

Chen, C. and DiTomaso, N. 202, 214

Clark, S. 179, 192

Coller, X. 222, 224, 235

Collinson, D. 101, 105

Collinson, M., Hutchinson, S., Kinnie, N.,

Purcell, J., Scarbrough, H. and Terry,

M. 10–11, 37

Constable, J. and McCormick, R. 162, 174

Culley, M., Woodland, S., O'Reilly, A. and

Dix, G. 85–6, 105

Cyert, R.M. and March, J.G. 154, 174

DDaniel, W.W. and Millward, N. 113, 126

Daniels, K. 135, 150, 179, 192

Davenport, T.H. 242, 244

Department of Trade and

Industry/Department for Education

and Employment 130, 150

Dicken, P. 218, 235

kAU T H O R I N D E X

2 4 5

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2 4 6 k A U T H O R I N D E X

Dickens, L. 197–8, 214

Dopson, S., Neumann, J. and Newell, H.

179, 192

Dunning, J. 218, 235

EEdmonds, J. and Tuffin, A. 136–7, 150

Edwards, P., Ferner, A. and Sisson, K.

223, 235

Employment Gazette 16, 37

EOR 203, 215

European Commission 134, 136, 139, 150

European Foundation 42, 54, 144, 150

FFelstead, A. and Green, F. 162, 174

Ferner, A. 221, 228, 235

Ferner, A. and Edwards, P. 225, 235

Ferner, A., Edwards, P. and Sisson, K.

222, 236

Financial Times 223, 236

Fiol, C.M. and Lyles, M.A. 154, 174

Flood, P. and Toner, B. 113, 126, 132, 150

Frenkel, S. 224, 236

Fröhlich, D. and Pekruhl, U. 41, 54

GGagné, R.M. 165, 174

Garvin, D.A. 154, 174

Geary, J. 41, 54

Goold, M. and Campbell, A. 27, 37

Goss, D. 85, 105

Gould, D. 166, 174

Greenhalgh, L. 180–2, 192

Greenhalgh, L. and Sutton, R. 135, 150,

179, 192

Guest, D. 28, 37

Guest, D. and Peccei, R. 180, 193

HHall, M., Marginson P. and Sisson, K. 112,

126

Handy, C. 162, 174

Hendry, C. 81–3, 88, 105

Hendry, C., Arthur, M.B. and Jones, A.M.

83, 105

Herzberg, F. 62, 77

Hirst, P. and Thompson, P. 219, 236

Hofstede, G. 18–20, 37, 221, 236

Howcroft, J.B. 166, 174

Hu, Y. 219, 236

Hutchinson, S., Kinnie, N., Purcell, J.,

Collinson, M., Scarbrough, H. and

Terry M. 41, 55, 243–4

IIles, P. 96, 105

Industrial Society 67–8, 77

Institute of Personnel and Development

69–70, 77, 204, 215

Involvement and Participation Association

(IPA) 138, 144, 146, 151

IRS 66, 77, 131, 140, 150–1

JJewson, N. and Mason, D. 197–8, 215

Jones, A.M. 155, 174

KKamoche, K. 228, 236

Kamoche, K. and Mueller, F. 243–4

Keep, E. 165, 174

Kessler, I. 58–60, 64–5, 77

Kim, W.C. and Mauborgne, R.A. 223, 236

Kochan, T., Katz, H. and McKersie, R.B.

136, 151


A U T H O R I N D E X k 2 4 7

LLane, D.A. 83, 105

Legge, K. 115, 126

Liff, S. 80, 83, 105, 204, 215

Liff, S. and Cameron, I. 200, 215

Liff, S. and Dale, K. 197–8, 215

Liff, S. and Turner, S. 85, 105

Lupton, T. and Gowler, D. 65, 77

MMabey, C. and Salaman, G. 28–9, 37

McCarthy, W.E.J. 137, 151

McCormick, J.M. and Rose, S. 166, 174

MacDuffie, J.P. 241, 244

McLoughlin, I. 113, 127, 132, 151

McLoughlin, I. and Clark, J. 114, 127

McLoughlin, I. and Gourlay, S. 115, 127

Maguire, M. 99, 105

Marchington, M. 115, 127

Marchington, M. and Wilkinson, A. 113,

127, 131, 151

Marginson, P. 221, 236

Marginson, P., Armstrong, P., Edwards, P.

and Purcell, J. 223, 236

Marginson, P. and Sisson, K. 14, 37,

219–20, 236

Martinez, M. and Weston, S. 224, 228,

236

Messmer, M. 103, 105

Millward, N., Bryson, A. and Forth, J. 60,

77

Millward, N., Stevens, M., Smart, D. and

Hawes, W. 113, 115, 127

Mueller, F. 162, 174, 218, 236

Mueller, F. and Purcell, J. 224, 236

Mumford, A. 158, 174

Musgrave, P.L. 46, 54

NNewell, H. and Dopson, S. 179, 193

Newell, S. and Shackleton, V. 89, 95, 105

OOsterman, P. 42, 54

PPedler, M., Burgoyne, J. and Boydell, T.

154, 174

Perlmutter, H. 226, 236

Peters, T. 67, 77

Pettigrew, A., Sparrow, P. and Hendry, C.

164, 174

Pollert, A. 43, 54

Porter, M. 222, 236

Prahalad, C.K. and Hamel, G. 28, 37,

243–4

Procter & Gamble 204–5, 215

Purcell, J. 23, 25, 37, 84, 105, 113–14,

127, 131, 151

Purcell, J. and Ahlstrand, B. 25–7, 37, 117

RRainnie, A. 85, 105

Reich, R. 219, 236

Robinson, S.L. and Rousseau, D. 179, 193

Ruigrok, W. and van Tulder, R. 218–19,

236

SScarbrough, H., Swan, J. and Preston, J.

10, 37

Scott, M., Roberts, I., Holroyd, G. and

Sawbridge, D. 85, 105


2 4 8 k A U T H O R I N D E X

Scott, W. and Harrison, H. 74, 77

Scullion, H. 227, 236

Senge, P.M. 154, 175

Sewell, G. and Atkinson, B. 110, 127

Sisson, K. 134, 151

Sparrow, P. and Hiltrop, J. 84, 94, 105,

218, 237

Sparrow, P. and Marchington, M. 10,

29–30, 37

Stewart, V. and Stewart, A. 158–9, 175

Storey, J. 8, 28, 31–3, 37, 109, 113, 127,

225, 237

Storey, J. and Sisson, K. 44, 54

Sutcliffe, G.E. 156, 175

TTailby, S. and Winchester, D. 130, 151

Thomas, T. and Wallis, B. 141, 143, 151

Torrington, D. and Hall, L. 67, 77, 92–4,

105, 132, 151, 163, 175

Trades Union Congress 151

Trompenaars, F. 19–20, 23, 37, 221

Trompenaars, F. and Wooliams, P. 22, 37,

237

Tung, R. 226, 237

Turnbull, P. and Wass, V. 178, 193

Tyson, S. 3, 8

UUnited Nations 218, 237

WWhittington, R. 219–20, 237

Wood, S. 28, 37


Aabsenteeism 135

result of job insecurity 179

ACAS 59, 61–3

Accountco 101–4

case analysis – the issues 104

history and analysis 101–4

achievement versus ascription 21

adult learning 155

assumptions about 155

characteristics of 156

advisers 32

Alcan 39–56

appraisal of teamworking 50–1


dissatisfaction with teamworking 52–3

increasing competition in the

aluminium industry 47

industrial relations in 1986 46

introducing teamwork 50

Lynemouth Smelter in 1990 45–6

options for change 47–9

teamworking, 1991–95 49–50

teamworking, 1996–98 51–2

work restructuring 49

alcoholism 135


Amalgamated Engineering and Electrical

Union 147

American management theories 18–22

Hofestede’s four dimensions 18–19

Trompenaars’s five dimensions 19–22

analysing case studies 5–8

defining the problem 6–7

generating and evaluating solutions 7

implementing solutions 7–8

steps involved in 5

understanding the situation 6

anti-discrimination legislation 196–206

business case for equality 198–9

can diversity management succeed?

205–6

case study: Telco 206–14

changing organisational cultures

199–200

and codes of practice 196–206

Codes of Practice 196–7

Commission for Racial Equality 196–7

Disability Discrimination Act 1995 196

Equal Opportunities Commission

196–7

limitations of business case arguments

200–1

mainstreaming 199–200

managing diversity 201–5

Race Relations Act 1976 196

Sex Discrimination Act 1975 196

arbitrary filters and non-valid tests 99–100

assessment centres 96

Association of the Chartered Institute of

Banking 166

assumptions about adult learning 155

automotive components industry 228–9

autonomy 42

kSU B J E C T I N D E X

2 4 9


2 5 0 k S U B J E C T I N D E X

Bbackground to the case study approach

1–8

analysing case studies 5–8

reasons for approach 2–3

Bankco 167–73


emphasis on learning 168–9

evaluating training and learning 171–3

history 167–8

managers’ perspective 169–71

transition to a learning organisation

169

Bayer 136

BBC 197

equal opportunities policy 197

Blue Circle 140

BMW 136

bottom-up approach 114, 116

British Psychological Society 96

British Rail 66

British Steel 165

British Telecom 66

Buildsoc 57–78


conclusions 240

debate over team pay 74–6

financial sector 72

grading system 73

history 71

individual PRP in practice 73–4

introducing individual PRP 73

pay system 72

bureaucracy 67

business process re-engineering 242–4

as fad 242

focus of core competencies 243

retaining of skilled employees 244

business sector 16–17

Ccase studies

Accountco 101–4

Alcan 45–54

Bankco 167–73

Buildsoc 71–6

Engineering Products 229–35

London Borough 147–50

Multico 117–26

Pharmaco 183–92

Telco 206–14

challenges facing industry 137–8

challenges to HRM practice 10–12

changes in the employment

relationship 10–11

different kinds of flexibility 11–12

new technology 10

change 47–9

implementation of 109

initiation of 108–9

opportunity for 85

changemakers 31–2, 108

Chartered Institute of Personnel and

Development 90, 96

Codes of Practice devised by 197

managing diversity 204

codes of practice 196–7

coercive comparisons 224

collective bargaining 10

broadening of 139

and decision-making 112

employee involvement 112

introduction of new institutions 139

limiting scope of 26

see also trade unions


Codes of Practice devised by 196–7

commitment 110–11

and equality 205

competition in the aluminium industry 47

cooperation 30, 131

core competencies 28–9

developing the new agenda for HRM

243


S U B J E C T I N D E X k 2 5 1

Ddebates on teamworking 40–2

definition of HRM 2

delayering 244

Department of Trade and

Industry/Department for Education

and Employment 130

depression 135


devolution 31

differentials 58

Digital 44

dimensions of change 12

Disability Discrimination Act 1995 196

provision under 196

diversity 195–216

appraisal 202

approaches to managing diversity

202–3

culture creation 203

ethnic minorities 201

managing a diverse workforce

195–216

divestment 27

dot.com companies 84

drug abuse 135


Eemployability 34

employee involvement 110–12

in decision-making 180

and job insecurity 180

survivor guilt 180

top-down approach 110

employers’ response to labour shortages

60

Employment Relations Act 1999 26

employment systems 82

external labour market 88

internal labour market 81–3, 88

main types 81

empowerment 134

end users 114

Engineering Products 229–35


geographical distribution of sales and

employment 230

history 229–30

implications for managers and

employees 232–5

standardisation of production 230–2

Equal Opportunities Commission 90,

196–7

Codes of Practice devised by 196–7

equality codes of practice 196–206

anti-discrimination legislation

196–206

business case for equality 198–9

can diversity management succeed?

206

case study: Telco 206–14


199–200

Codes of Practice 196–7


Disability Discrimination Act 1995

196

Equal Opportunities Commission

196–7

limitations of business case arguments

200–1


managing diversity 201–5

Race Relations Act 1976 196


equality culture 200

ethics 198

European Commission Green Paper 1997

134–6, 139

European Court of Justice 146

European Foundation for the

Improvement of Living and Working

Conditions 15, 144

web site 15

European Industrial Relations

Observatory 15



European Union 13

directives 112

European dimension on partnership

agreements 132–6

European Industrial Relations

Observatory 15

Green Paper 1997 134–6, 139

legislation 15

new social model 133

single market 139

social demographic ideology of 13

social partners 130

European Works Council Directive 112,

139

exit interview 97

experiential and action learning theories

157

extent of teamworking 42

external organisational context 13–22

business sector 16–17

labour markets 15–16

legal context 14–15

national cultural context 18–22

political and economic context 13–14

Ffactors inhibiting or facilitating learning

158–65

five inhibiting conditions 159–60

four facilitating conditions 158–9

organisational factors 161

personal factors 160–1

training 161–5

training as a learning opportunity 165

factors promoting teamworking 43–5

benefits for management 44

culture of work group relationships 43

national and company environment 44

role of trade unions 43

technology 43

triggering event 44

failure 89

Fiat 136

fire service 205

‘fit’ between business and HRM strategy

28

‘internal fit’ 35, 241

flexibility 11, 134

and partnership 146

or presenteeism 212–14

Ford 33

Gglobal competition 10

globalisation 12, 18

internationalisation of economic

activity 218–28

McDonald’s 219

pharmaceutical industry 117

standardisation 219

group delegation 42

group membership 204–5

growth of MNCs 218–28

impact of capital market structures

219–20


activity 218–28

McDonald’s 219

motivation for firms 218–19

outsider and insider systems 220

shaping nature of consumer tastes 219

size 218

as ‘stateless’ players 219, 222

Hhandmaidens 33

Harvard Business School 3

Hewlett-Packard 25, 114

Hofstede’s four dimensions 18–19

‘Holy Grail’ of HRM 36

Honda 228

how individuals learn 155–7

assumptions about adult learning 155



experiential and action learning

theories 157

types of learner 156

types of training 156–7

HR function in introduction of technical

change 115–16

HRM ‘best practice’ 28

explaining the gap 100–1

recommended stages 91

HRM ‘best practice’ model 90–101

appointment decision 96

choice of selection criteria 90–3

evaluation and feedback 97


reality of recruitment and selection

97–100

recommended stages 91

recruitment strategy and methods 93

selection 93–6

HRM: developing the new agenda 243–4

core competencies 243

in the evolution of the firm 243

knowledge economy 243

offering no ‘quick fixes’ 244

HRM and the management of change

242–3

adapting 242

initiatives on quality 243

major shifts 242

HRM in small firms 84–7

human capital 29

human resource planning 80–1

approaches to 81–3

regulatory environment 89

IIBM 18, 114

ICI 15, 136, 165

example of a partnership 136

importance of training in 165

implementation of change 109

incentive pay 60

individualism 34

individualism versus collectivism 19–21

Industrial Relations Research Unit 4

informal methods of selection 99

initiation of change 108–9

initiatives towards equality 200

benefits of equality 201

resistance to 205

integration of MNCs 222–8


employees 224–8

internal competition 191

internal organisational context 22–7

internal structure 26–7

management style 23–6

internal organisational structure 26–7

International College of Engineering 231

formation of policies 234

internationalisation of economic activity

218–28

Anglo-Saxon traditions 219–20

enduring country of origin influence

219–21

factors affecting elements of HR 222


employees 224–8

international integration of MNCs

222–8

intra-enterprise trade 218

internationalising production 217–36

automotive components industry

228–9

case study: Engineering Products

229–35

country of origin influence 219–21

factors affecting elements of HR 222


employees 224–8

international integration in MNCs

222–8


activity 218–28


‘stateless’ players 219



interviews 95


Investors in People 162

Involvement and Participation Association

136, 138

statement of intent 138

involvement policies 110–11

IRS survey 131–2

IT 12

and introducing technical change 109

JJaguar 165

job analysis 92

job insecurity 11, 135, 177–94

adoption of strategies to cope with

182

causes of 135


growing importance of 178

how it arises 178–9

managing insecurity 180–2

pharmaceutical industry 183–92

psychological contract 179–80

resentment 179

UK redundancy laws 178

job for life 34

John Lewis Partnership 136

joint consultation 112

committees 112

European Works Council Directive

112

ICI 136

see also works councils

Kkeiretsu groupings 220

knowledge economy 243

knowledge workers 17

LLabour government 13, 26

concern about lack of competitiveness

147

employment spokesperson for 137

implications for industrial relations

140

lack of legislation re partnerships 146

labour markets 15–16

drive towards equality 200–1

growth of 201

labour and product market factors in

technical change 115

lack of competitiveness 147, 163

and training 163

lean production 11

contrasting models of team

organisation 41

focus on core competencies 243


242

‘lean and mean’ 242

see also teamworking

learning organisation 154–7

‘adaptive’ and ‘generative’ learning

154

factors inhibiting or facilitating

learning 158–65

how do individuals learn? 155–7

‘single loop’ and ‘double loop’

learning 155

Legal and General 140

legal organisational context 14–15

link between business strategy and HRM

strategy 27–30

‘fit’ between the two 28

London Borough 147–50

the 1997 Framework National

Agreement on Harmonisation

147–9

approach from UNISON 149

case analysis – the issues 149–50

history 147



Lucas 162

Lynemouth Smelter 45–7

work restructuring 49

MM-form of organisational structure 26

M-form companies 26–7

Maastricht Treaty 1997 140

European works councils 146

McDonald’s 219



199–200

Management Charter Initiative 162

management style 23–6

benefits and implications of

partnerships 143–4

in handling employee relations 23

importance in introducing technical

change 113–14

preferred learning 156

types of approach 24–5

managerial mentality 16

managerial and organisational learning

153–76

case study: Bankco 167–73

factors inhibiting or facilitating

learning 158–65

retail banking sector 166

who learns 154–7

managing change 39–56

case study: Alcan 45–54

debates on teamworking 40–2

factors promoting teamwork 43–5

spread of teamwork 42

managing a diverse workforce 195–216

anti-discrimination legislation

196–206

managing insecurity 180–2

coping strategies 180–1

masculinity versus femininity 19

mediation 30

Mercedes-Benz 136

merit 205

MNCs 218–28

alternatives to resourcing management

positions 225–6

approaches to HRM 221

competition 229


employees 224–8

producing to standard 229

single-product 222

types of staffing policy 226

see also growth of MNCs,

internationalising production

motivation 135

lowered due to job insecurity 179

Motorola 130

Multico 117–26


change in hours worked 122

DrugDiv 118–20

history 117–18

impact of computers 122

introducing technical change 118–21

managers’ views 125–6

responding to problems 123–5

sales reps in branded products 118

system in action 121–3

multinational corporations 22

multiskilling 67

Nnational cultural organisational context

18–22

individualism versus collectivism 19

masculinity versus femininity 19

power distance 18–19

uncertainty avoidance 19

National Joint Council 148

guiding principles 148–9

National Vocational Qualifications 162

nationalisation 17



neutural versus emotional 21

new agenda for HRM 239–44

holistic approach 240

HRM: developing the new agenda

243–4


242–3

implications of case studies 240

New Deal legislation 25

‘new realism’ 136

new technology and the salesforce 107–28

case study: Multico 117–26

introducing technical change 108–17

niche goods 134

Nissan 92, 228

as MNC 228

Ooff-the-job-training 157

on-the-job-training 156

in the retail banking sector 166

Opportunity Now 200

organisational contexts 13–27

external context 13–22

internal context 22–7

organisational restructuring 177–94

case study: Pharmaco 183–92

job insecurity 178–82

pharmaceutical industry 183

outsider and insider systems of MNCs

220

Pparallel processing 22

partnership agreements 129–52

benefits and implications 143–4

case study: London Borough 147–50

closer look at 140–4

definition 130

partnership in theory and practice

130–47

partnership theory 130–47

a closer look at the partnership

agreement 140–4

European dimension 132–6

evaluation 144–7

pressures for partnership in the UK

136–40

partnership types 140–4

Partnership 1 – 1990 140–1

Partnership 2 – 1993 142


patterns of employment 34–5

pay systems 57–78

benefits and drawbacks of team pay

68–9

coming of teamwork 66–76

experience of PRP 63–6

significance of 58–63

team reward action plan 70

typical methods of paying teams 68

Pepsi-Cola 203

performance-related pay schemes 59–66

appraisal schemes 60–1

Engineering Products 232


reasons for implementation 65–6

person specification 92

personal development plans (PDPs) 169

personnel surveillance 110

pharmaceutical industry 116–17, 183–92

mergers and takeovers 183

Pharmaco 183–92


downsizing 184

Drugco 183–9

employee attitudes 191–2

history 183–4

internal competition 191

managing insecurity? 186–91

redundancies 184–5

takeover 185–6

police service 205

policy and practice 35

political and economic organisational

contexts 13–14



poor work performance 135


power distance 18–19

practical application of partnership 136

presenteeism 212–13

see also flexibility

pressures for partnership in the UK

136–40

Procter & Gamble 204–5

productivity coalitions 130

psychological contract 135

and job insecurity 179–80

violation of 179

psychological tests 95–6

Qquality circles 112

Quality of Working Life experiments 40

‘quick fixes’ 244

RRace Relations Act 1976 196

provision under 196

re-employment assistance 181

recession 13

recruitment and selection 87–8

appointment decision 96

choice of selection criteria 90

definition 87–8

evaluation and feedback 97


getting it ‘right’ 88–9

reality of 97–100

recruitment strategy and methods 93

selection 93–6

regulators 33

and decision-making 109

resistance to equality initiatives 205

retail banking 166

on-the-job-training 166

recruitment and training 166

reward systems 29

role of management in HR 30–3

advisers 32

changemakers 31–2

handmaidens 33

regulators 33

Rover 140, 162

training 162

SSaturn Corporation 43

scope of HRM 240

selection criteria 90–3

aim of 96

irrelevant selection criteria 98–9

reliability 93

validity 93

selection methods in European countries

94

sequential time versus synchronic time

21–2

service jobs 17


provision under 196

site consultative council 186

‘sitting next to Nellie’ 156

skill shortages 15–16

small firms 79–106

approaches to human resource

planning 81–3

‘best practice’ model 90–101

case study 101–4

getting recruitment and selection

‘right’ 88–9

human resource management in small

firms 84–7

human resource planning 80–1

recruitment and selection 87–8

regulatory environment 89–90

where found 86

social capital 29

social demographic ideology 13

social and welfare issues 14–15



sociotechnical systems see teamworking

stakeholder society 13

standardisation 219

status and power 21

stereotypes of HRM 133

Storey’s four definitions 31–3

substantive issues 108

supply chain networks 11

survivors of redundancy 178

survivor guilt 180

sustainable competitive advantage 244

sweatshops 84

systems of corporate ownership 13–14

stakeholder/shareholder 14

Tteamworking 39–56

at Alcan 49–53

benefits for management 44

conclusion 70–1

debates on 40–2

definition 42


extent of 42

factors promoting 43–5

reasons for introduction of 66–7

as work organisation 240

teamworking and team pay 57–78

case study: Buildsoc 71–6

coming of teamwork 66–70

conclusion 70–1


significance of the pay system 58–63

technical change 108–17

at implementation stage 109

at initiation stage 108–9

employee involvement 110–12

importance of management style

113–14

labour and product market factors 115

in a non-union environment 112–13

pharmaceutical industry 116–17

role of HR function in 115–16

Telco 206–14


clash of cultures 212–14

conclusions 240

history 206–7

make-up of current workforce 207–8

management of equality and diversity

209–10

reactions to initiatives 211–12

specific initiatives 210–11

statements on equality and diversity

208–9

tension 29

Tesco 140

Third World 134

top-down approach 110, 114

Toyota 41, 228

as MNC 228

trade unions 10

advantages and disadvantages of 113

benefits and implications of

partnerships 144

benefits of working with 131–2

challenging role of 28

drawbacks of working with 132

employee representation 111

introducing technical change in non-

union environment 112–13

involvement in coalition for change

145

negotiation 113

‘new agenda’ 136–7

partnership agreements and 130

as permanent opposition 120

power of 26

and recruitment strategy 90

role of in teamworking 43

working with rather than against 131

see also collective bargaining

training 161–5

complacency 163

emphasis on short-term results 162

external factors 162–3

factors present in organisations 164–5

internal factors 163

New921364indx 12/09/2001 11:35 am 8 Julie JULIE: WORK JULIE:New/Scar 12.09.01:1NSQuark :


lack of competitiveness 163

lack of education 163

as a learning opportunity 165

weakness of demand 163

transnationalism 16

Trompenaars’s five dimensions 19–22

typology of HRM functions 31

UUK redundancy laws 178

uncertainty avoidance 19

understanding human resource

management 9–38

conclusion 36–7

dimensions of change 12

gap between policy and practice 35

importance of organisational contexts

13–27

introduction 10–12

links between business and HRM

strategy 27–30

patterns of employment 34–5

role of management in HR 30–3

Unipart 130

UNISON 147–9

agreement arrived at by 140

universalism 20

universalism versus particularism 20

utopian view of business 244

Vvalue added 116

Volkswagen 136

Volvo 40, 44

WWelsh Water 140–4

‘no redundancy’ policy 141

Partnership 1 – 1990 140–1



threat posed by partnership 145–6

Workplace Employee Relations Surveys

(WERS) 85

findings of 115

Workplace Industrial Relations Surveys

60, 113

findings of 113

works councils 90

and internationalising production 221

introduction of 139

under the Maastricht Treaty 146

see also joint consultation

ZZanussi 136


ONTENTS k · HRM policy and practice is decoupled from the bureaucracy, to be determined by the...

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Transcript of ONTENTS k · HRM policy and practice is decoupled from the bureaucracy, to be determined by the...