ARMSTRONG?HANDBOOKOf STRATEGIC HUMAN

RESOURCE MANAGEME™

Armstrong'sHandbook ofStrategicHumanResourceManagement

Michael Armstrong

KoganPage

LONDON PHILADELPHIA NEW DELHI

CONTENTS

Introduction 1

PART ONE The conceptualframework of strategic HRM 3

01 The concept of HRM 5

Introduction 6HRM defined 6The philosophy of human resource managementUnderpinning theories of HRM 8The goals of HRM 13Characteristics of HRM 13The diversity of HRM 14The ethical dimension 15Critical evaluation of the concept of HRM 16How HRM is delivered 17The context of HRM 20References 23

02 The concept of strategy 26Introduction 27Development of the concept of strategy 27Strategy defined 28The nature of strategy 29The formulation of strategy 36Implementation of strategy 39The reality of strategy 41References 44

03 The concept of strategic human resourcemanagement 47

Introduction 48SHRM defined 48The nature of SHRM 49Strategic fit 51

Contents

The resource-based view of strategic HRM 53Perspectives on strategic HRM 54The best practice approach 55The best fit approach 57Bundling 60The reality of strategic HRM 62References 64

P A R T T W O The practice of strategic HRM 69

04 The strategic role of HR 71Introduction 71The strategic role of HR practitioners 72The strategic business partner model 73The strategic role of HR directors 74The strategic role of heads of HR functions 75The strategic role of HR business partners 76The strategic contribution of HR advisors or assistants 77References 78

05 The impact of strategic HRM 79Introduction 79The concept of performance 80Research on the link between HR activities and performance 80How strategic HRM makes an impact 85How strategic HRM concepts impact on practice 87References 91

06 Strategic HRM in action 93Introduction 93Formulating HR strategy 94Philosophy on managing people 103Corporate issues 103Achieving integration 107References 109

07 Strategic international HRM noIntroduction 110Strategic international human resource management defined 111International SHRM strategic issues 112Approaches to strategic international HRM 116References 119

Contents

PART THREE HR strategies 121

08 The framework of HR strategy 123

Introduction 123What are HR strategies? 124What is the purpose of HR strategies? 124The nature of HR strategies 125Types of HR strategies 125Evaluating HR strategy 132Developing HR strategies 133Setting out the strategy 138Implementing HR strategies 139References 143

09 Business model innovation 145

Introduction 145Business models defined 146Development of the concept 147Rationale for business models 148Business model innovation defined 148Rationale for business model innovation 148Business model innovation and strategy 149Business model analysis and design 150The role of HR in business model innovation 151References 154

10 High performance strategy 155

Introduction 155High performance work system defined 156Characteristics of a high performance work system 157Components of a HPWS 157Impact of high performance work systems 158Developing a high performance strategy 162References 167

11 Human capital management strategy 169

Introduction 169Aims of human capital management 170The role of human capital management strategy 171The link between HCM and business strategy 172Developing a human capital management strategy 175References 180

Contents

12 Corporate social responsibility strategyIntroduction 181Corporate social responsibility defined 182The rationale for CSR 182Strategic CSR defined 183CSR activities 184Role of HR 185Developing a CSR strategy 186References 189

13 Organization development strategy 190

Introduction 190The story of organization development 192Organization development strategy 196References 198

14 Engagement strategy 200

Introduction 200Engagement defined 201How important is engagement? 201Engagement and discretionary behaviour 203What are the factors that influence employee engagement? 203Strategies for enhancing engagement 206References 210

15 Knowledge management strategy 212Introduction 212The process of knowledge management 213Sources and types of knowledge 213Approaches to the development of knowledge management

strategies 214Strategic knowledge management issues 215Components of a knowledge management strategy 216References 218

16 Resourcing strategy 219

Introduction 219The rationale for strategic resourcing 220The strategic HRM approach to resourcing 220Integrating business and resourcing strategies 221Bundling resourcing strategies and activities 221

Contents

The components of employee resourcing strategy 222Workforce planning 222Employee value proposition 225Resourcing plans 227Retention strategy 229Flexibility strategy 233References 234

17 Talent management strategy 236

Introduction 236Talent management defined 237What is talent? 238The process of talent management 240Developing a talent management strategy 243References 246

18 Learning and development strategy 247

Introduction 247Strategic human resource development (SHRD) 248Human resource development philosophy 248Elements of human resource development 249Strategies for creating a learning culture 250Organizational learning strategies 250Learning organization strategy 252Individual learning strategies 253References 255

19 Reward strategy 256Introduction 256Reward strategy defined 257Why have a reward strategy? 257Characteristics of reward strategies 258The basis of reward strategy 258The content of reward strategy 262Guiding principles 263Developing reward strategy 264Effective reward strategies 264Reward strategy and line management capability 266The problem with the concept of reward strategy 267References 270

Contents

20 Employee relations strategy 271Introduction. 271Employee relations strategy defined 272Concerns of employee relations strategy 273Strategic directions 273The approaches to employee relations strategy 274Formulating employee relations strategies 274Partnership agreements 274Employee voice strategies 275References 277

PART FOUR The strategic HRM toolkit 279

Author Index 305Subject Index 308