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A HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE

11th edition

CONTENTS – TEACHING NOTES

1. The practice of human resource management

2. Strategic human resource management

3. HR strategies

4. Human capital management

5. The role and organization of the HR function

6. The role of the HR practitioner

7. The impact of HRM on performance

8. International HRM

9. Corporate social responsibility

10. Human resource management research methods

11. Competency-based HRM

12. Knowledge management

13. High-performance work systems

14. Work

15. The employment relationship

16. The psychological contract

17. The essence of organizational behaviour

18. Characteristics of people

19. Motivation

20. Engagement and commitment

21. How organizations function

22. Organizational culture

23. Organization design

24. Organization development

25. Change management

26. Job, role, competency and skills analysis

27. Job and role design and development

28. People resourcing strategy

29. Human resource planning

30. People resourcing practice

31. Recruitment and selection

32. Selection interviewing

33. Selection tests

34. Talent management

35. Career management

36. Introduction to the organization

37. Release from the organization

38. The process of performance management

39. 360-degree feedback

40. Learning and development strategy

41. The process of learning and development

42. Learning and development programmes and events

43. How people learn

44. Organizational learning

45. Management development

46. Reward management

47. Job evaluation

48. Market rate analysis

49. Grade and pay structures

50. Contingent pay

51. Rewarding special groups

52. Employee benefits, pensions and allowances

53. Managing reward systems

54. The employee relations framework

55. Employee relations processes

56. Employee voice

57. Employee communications

58. Health and safety

59. Employee well-being

60. HR policies

61. HR procedures

62. HR information systems

1. THE PRACTICE OF HUMAN RESOURCE MANAGEMENT

Teaching notes

Contents

These notes contain:

An outline of the session

A concept map for HRM

Definitions of key concepts and terms

Questions and discussion points

A bibliography

Objective of the session

Provide an overview of the concept of human resource management and its characteristics.

Learning outcomes of the session

The session will cover:

The meaning of HRM

The objectives of HRM

The policy goals of HRM

The characteristics of HRM

How HRM developed as a concept

Reservations expressed about HRM

The context in which HRM operates

The ethical dimensions of HRM

Key concepts and terms

In addition, definitions will be provided of the following concepts and terms:

AMO theory Matching model of HRM

Commitment Mutuality

Contingency theory Pluralism

Hard HRM Resource-based view

Harvard framework Soft version of HRM

HRM system Strategic integration

Human resource management (HRM)

Session outline

The meaning of human resource management (HRM)

A strategic, integrated and coherent approach to the employment, development and

well-being of the people working in organizations.

Other definitions

● ‘All management decisions and action that affect the nature of the relationship

between the organization and its employees – its human resources’ (Beer et al,

1984).

● ‘A distinctive approach to employment management which seeks to achieve

competitive advantage through the strategic deployment of a highly committed and

capable workforce, using an integrated array of cultural, structural and personnel

techniques’ (Storey, 1995).

● ‘The management of work and people towards desired ends’ (Boxall et al, 2007).

The objectives of HRM

● To ensure that the organization is able to achieve success through people.

● To increase organizational effectiveness and capability.

● To be concerned with the rights and needs of people in organizations through the

exercise of social responsibility.

The policy goals of HRM (David Guest)

● Strategic integration.

● High commitment.

● High quality.

● Flexibility.

The characteristics of HRM

‘Human resource management covers a vast array of activities and shows a huge range

of variations across occupations, organizational levels, business units, firms, industries

and societies’ (Boxall et al, 2007). It can:

● be diverse (hard or soft);

● be strategic;

● be business-oriented;

● focus on mutuality – a state that exists when management and employees are

interdependent and both benefit from this interdependency;

● take a unitary view – the belief that management and employees share the same

concerns and it is therefore in both their interests to work together;

● treat people as assets or human capital.

How HRM developed as a concept

Emerged in the 1980s in the form of:

● the matching model – HR systems and the organization structure should be

managed in a way which is congruent with organizational strategy (Fombrun et al,

1984);

● the Harvard framework – based on their belief that the problems of historical

personnel management can only be solved ‘when general managers develop a

viewpoint of how they wish to see employees involved in and developed by the

enterprise, and of what HRM policies and practices may achieve those goals’

(Beer et al, 1984).

Reservations expressed about HRM

● Promises more than it can deliver – HRM is an 'optimistic but ambiguous concept';

it is all hype and hope (David Guest, 1991).

● Manipulative – ‘control by compliance’ (Hugh Willmott, 1993).

● Hostile to interests of employees – ‘Sadly, in a world of intensified competition and

scarce resources, it seems inevitable that, as employees are used as means to an

end, there will be some who will lose out. They may even be in the majority. For

these people, the soft version of HRM may be an irrelevancy, while the hard

version is likely to be an uncomfortable experience’ (Karen Legge, 1998).

The context in which HRM operates

● HRM practices are contingent on the circumstances in which the organization

operates, ie the internal and external environment.

● Contingency theory tells us that definitions of HR aims, policies and strategies, lists

of activities and analyses of the role of the HR department are valid only if they are

related to the situation of the organization.

The ethical dimensions of HRM

The application of HRM requires the exercise of social responsibility – it must be

concerned with the interests (well-being) of employees and act ethically with regard to

the needs of people in the organization and the community.

The HRM system

HUMAN RESOURCE

MANAGEMENT

Learning and

development

Reward

management

Employee

relations Resourcing Organization

Organizational learning

Individual learning

Management development

Design Human resource planning

Development Recruitment & selection

Job/role design Talent management

Job evaluation/ market surveys

Grade and pay structures

Contingent pay

Industrial relations

Employee voice

Communications

Performance management

Health and safety

Employee benefits

HR services

Knowledge management

Employee well-being

Human capital management

Corporate social responsibility

HR strategies, policies, processes, practices and programmes

HR philosophies

Concept map

performance management

mutuality

engagement and commitment

motivation

reward

employee relations

Human resource

management

human capital management

resource-based view

psychological contract

humanism organization development

high performance

people resourcing

learning and development

Concepts Practices


AMO theory – The formula Performance = Ability + Motivation + Opportunity to

Participate provides the basis for developing HR systems that attend to employees’

interests, namely their skill requirements, motivations and the quality of their job.

Commitment – The strength of an individual's identification with, and involvement in, a

particular organization.

Contingency theory – HRM practices are dependent on the organization’s environment

and circumstances. Definitions of HR aims, policies and strategies, lists of activities

and analyses of the role of the HR department are valid only if they are related to the

situation of the organization.

Hard HRM – People are important resources through which organizations achieve

competitive advantage. The focus is on the quantitative, calculative and business-

strategic aspects of managing human resources in as 'rational' a way as for any other

economic factor.

Harvard framework – The belief held by Michael Beer and his Harvard colleagues (1984)

that the problems of historical personnel management can only be solved when

general managers develop a viewpoint of how they wish to see employees involved in

and developed by the enterprise, and of what HRM policies and practices may

achieve those goals.

HR system – HRM as an integrated and coherent bundle of mutually reinforcing

practices.

Human resource management (HRM) – A strategic, integrated and coherent approach to

the employment, development and well-being of the people working in organizations.

Matching model of HRM – The view held by the Michigan school (Fombrun et al, 1984)

that HR systems and the organization structure should be managed in a way which is

congruent with organizational strategy.

Mutuality – A state that exists when management and employees are interdependent

and both benefit from this interdependency.

Pluralism – The belief that the interests of employees will not necessarily coincide with

that of their employers.

Resource-based view – The view that it is the range of resources in an organization,

including its human resources, that produces its unique character and creates

competitive advantage.

Soft HRM – Treating employees as valued assets, a source of competitive advantage

through their commitment, adaptability and high quality (of skills, performance and so

on) (Storey, 1989).

Strategic integration – The ability of the organization to integrate HRM issues into its

strategic plans ensure that the various aspects of HRM cohere, and provide for line

managers to incorporate an HRM perspective into their decision making.


1. Describe the essential characteristics of human resource management (HRM).

2. What are the differences, if any, between HRM and personnel management?

3. In a seminal article (Personnel Management, 1987), Alan Fowler wrote that the real

difference between HRM and personnel management is ‘not what it is but who is

saying it. In a nutshell, HRM represents the discovery of personnel management by

chief executives’. Keenoy (1997) referred to Storey’s (1995) remark that HRM is a

‘symbolic label’ and suggested that it ‘masked managerial opportunism’. To what

extent are these statements valid today?

4. What are the key aims of human resource management?

5. One of your colleagues says to you that they dislike the term ‘human resource

management’ because it implies that employees are simply being treated as factors

of production to be manipulated by management and not as human beings. How do

you reply?

6. Comment on the following remark by Karen Legge (1995) ‘The language of HRM is

a most appropriate vehicle to represent optimum resource utilization in response to

the bottom line.’

7. Explain contingency theory. What is its relevance to human resource management?

Bibliography

Armstrong, M (1987) Human resource management: a case of the emperor's new

clothes, Personnel Management, August, pp 30–35

Armstrong, M (2000) The name has changed but has the game remained the same?,

Employee Relations, 22 (6), pp 576–89

Beer, M, Spector, B, Lawrence P, Quinn Mills, D and Walton, R (1984) Managing

Human Assets, The Free Press, New York

Boselie, P, Dietz, G and Boon, C (2005) Commonalities and contradictions in HRM and

performance research, Human Resource Management Journal, 15 (3), pp 67–94

Boxall, P F (1993) The significance of human resource management: a reconsideration

of the evidence, The International Journal of Human Resource Management, 4 (3), pp

645–55

Boxall, P F, Purcell, J and Wright, P (2007) The goals of HRM, in (ed) P Boxall, J Purcell

and P Wright, Oxford Handbook of Human Resource Management, Oxford University

Press, Oxford

Caldwell, R (2001) Champions, adapters, consultants and synergists: the new change

agents in HRM, Human Resource Management Journal, 11 (3), pp 39–52

Caldwell, R (2004) Rhetoric, facts and self-fulfilling prophesies: exploring practitioners’

perceptions of progress in implementing HRM, Industrial Relations Journal, 35 (3), pp

196–215

Fombrun, C J, Tichy, N M, and Devanna, M A (1984) Strategic Human Resource

Management, Wiley, New York

Fowler, A (1987) When chief executives discover HRM, Personnel Management,

January, p 3

Francis, H and Keegan, A (2006) The changing face of HRM: in search of balance,

Human Resource Management Journal, 16 (3), pp 231–49

Guest, D E (1987) Human resource management and industrial relations, Journal of

Management Studies, 14 (5), pp 503–21

Guest, D E (1989a) Human resource management: its implications for industrial

relations, in (ed) J Storey, New Perspectives in Human Resource Management,

Routledge, London

Guest, D E (1989b) Personnel and HRM: can you tell the difference? Personnel

Management, January, pp 48–51

Guest, D E (1991) Personnel management: the end of orthodoxy, British Journal of

Industrial Relations, 29 (2), pp 149–76

Guest, D E (1997) Human resource management and performance; a review of the

research agenda, The International Journal of Human Resource Management, 8 (3),

pp 263–76

Guest, D E (1999) Human resource management: the workers’ verdict, Human

Resource Management Journal, 9 (2), pp 5–25

Guest, D E and Peccei, R (1994) The nature and causes of effective human resource

management, British Journal of Industrial Relations, June, pp 219–42

Hope-Hailey, V, Gratton, L, McGovern, P, Stiles, P and Truss, C (1998) A chameleon

function? HRM in the 90s, Human Resource Management Journal, 7 (3), pp 5–18

Keenoy, T (1990) HRM: a case of the wolf in sheep's clothing, Personnel Review, 19 (2),

pp 3–9

Keenoy, T (1997) HRMism and the images of re-presentation, Journal of Management

Studies, 4 (5), pp 825–41

Legge, K (1989) Human resource management: a critical analysis, in (ed) J Storey, New

Perspectives in Human Resource Management, Routledge, London

Legge, K (1995) Human Resource Management: Rhetorics and realities, Macmillan,

London

Legge, K (1998) The morality of HRM, in (ed) C Mabey, D Skinner and T Clark,

Experiencing Human Resource Management, Sage, London

Mabey, C, Skinner, D and Clark, T (1998) Experiencing Human Resource Management,

Sage, London

Mackay, L and Torrington, D (1986) The Changing Nature of Personnel Management,

IPD, London

Mohrman, S A and Lawler, E E (1998) The new human resources management: creating

the strategic business partnership, in (ed) S A Mohrman, J R Galbraith and E E

Lawler, Tomorrow’s Organization: Crafting winning capabilities in a dynamic world,

Jossey-Bass, San Francisco, CA

Noon, M (1992) HRM: a map, model or theory?, in (ed) P Blyton, and P Turnbull,

Reassessing Human Resource Management, Sage Publications, London

Sisson, K (1990) Introducing the Human Resource Management Journal, Human


Sisson, K (1995) Human resource management and the personnel function, in (ed) J

Storey, Human Resource Management: A critical text, Routledge, London

Storey, J (1989) From personnel management to human resource management, in (ed)

J Storey, New Perspectives on Human Resource Management, Routledge, London

Storey, J (1992a) New Developments in the Management of Human Resources,

Blackwell, Oxford

Storey, J (1992b) HRM in action: the truth is out at last, Personnel Management, April,

pp 28–31

Storey, J (1995) Human resource management: still marching on or marching out?, in

(ed) J Storey, Human Resource Management: A critical text, Routledge, London

Thompson, P and Harley, B (2007) HRM and the worker: labour process perspectives, in

(ed) P Boxall, J Purcell and P Wright, Oxford Handbook of Human Resource

Management, Oxford University Press, Oxford

Ulrich, D (1998) A new mandate for human resources, Harvard Business Review,

January-February, pp 124–34

Ulrich, D and Brockbank, W (2005a) The HR Value Proposition, Harvard Press,

Cambridge, MA

Walton, R E (1985) From control to commitment in the workplace, Harvard Business

Review, March–April, pp 77–84

Willmott, H (1993) Strength is ignorance, slavery is freedom: managing culture in

modern organizations, Journal of Management Studies, 30 (4), pp 515–52

2. STRATEGIC HUMAN RESOURCE MANAGEMENT

Teaching notes


Explain the meaning and practical application of strategic human resource management (strategic HRM) within its conceptual framework.



The conceptual basis of strategic HRM

The fundamental characteristics of strategy

How strategy is formulated

The aims of strategic HRM

The resource-based view and its implications

The three HRM ‘perspectives’ of Delery and Doty

The significance of the concepts of ‘best practice’ and ‘best fit’

The significance of bundling

The practical implications of strategic HRM theory


Best fit Resource-based view

Best practice Strategic configuration

Bundling Strategic fit

Competitive advantage Strategic HRM

Configuration Human resource advantage

Strategy Lifecycle model


Contents



A concept map for the resource-based view



A bibliography

Session outline

The conceptual basis of strategic HRM

Strategic HRM is the interface between HRM and strategic management. It takes the

notion of HRM as a strategic, integrated and coherent approach and develops that in line

with the concept of strategic management (Boxall, 1996).

Strategy

● Strategy is a forward-looking approach selected to achieve defined goals in the

future.

● Strategy is formulated through an emergent and flexible process of developing a

sense of direction, making the best use of resources and ensuring strategic fit.

The meaning of strategic HRM

Strategic human resource management (strategic HRM) defines how the organization’s

goals will be achieved through people by means of HR strategies and integrated HR

policies and practices.

Main concerns of strategic HRM

● Strategic planning.

● The formulation of HR strategies.

● The implementation of HR strategies.

● The strategic behaviour of HR specialists.

Propositions of strategic HRM

● The human resources of an organization play a strategic role in its success and

are a major source of competitive advantage.

● It is people who implement the strategic plan.

● HR strategies should be integrated with business plans (vertical integration).

● Individual HR strategies should cohere by being linked to one other to provide

mutual support (horizontal integration).

The aims of strategic HRM

● To generate strategic capability by ensuring that the organization has the skilled,

committed and well-motivated employees it needs to achieve sustained

competitive advantage.

● To provide ‘unifying frameworks which are at once broad, contingency based and

integrative’ (Dyer and Holder, 1988).

The resource-based view and its implications

● It is the range of resources in an organization, including its human resources, that

produces its unique character and creates competitive advantage.

● HRM delivers added value and helps to achieve sustainable competitive

advantage through the strategic development of the organization’s rare, hard to

imitate and hard to substitute human resources.

● For a resource to have the potential for creating sustained competitive advantage it

should have four attributes: it must be a) valuable, b) rare, c) imperfectly imitable

and d) non-substitutable (Jay Barney, 1991, 1995).

● Resource-based strategic HRM produces what Boxall (1996) refers to as human

resource advantage.

● It provides a practical justification for key aspects of a firm’s HR policies and

practices such as human capital management, talent management, knowledge

management, and learning and development.

HRM perspectives

Delery and Doty (1996) identify three HRM perspectives:

1. The universalistic perspective – some HR practices are better than others and all

organizations should adopt these best practices.

2. The contingency perspective – in order to be effective, an organization’s HR

policies must be consistent with other aspects of the organization especially its

strategy (‘vertical fit’).

3. The configurational perspective – this is a holistic approach that emphasizes the

importance of the pattern of HR practices and is concerned with how this pattern is

related to organizational performance.

These perspectives can be interpreted as best practice, best fit and bundling

(Richardson and Thompson 1999).

Best practice

This approach is based on the assumption that there is a set of best HRM practices. A

number of lists of ‘best practices’ have been produced, the best known of which was

produced by Pfeffer (1994), namely:

● employment security;

● selective hiring;

● self-managed teams;

● high compensation contingent on performance;

● training to provide a skilled and motivated workforce;

● reduction of status differentials;

● sharing information.

Other lists have been produced by Guest (1999), the US Department of Labor (1993),

Wood and Albanese (1995), Appelbaum et al (2000), Sung and Ashton (2000) and

Thompson and Heron (2005).

It is difficult to accept that there is any such thing as universal best practice. What

works well in one organization will not necessarily work well in another because it may

not fit its strategy, culture, management style, technology or working practices.

Best fit

The best fit approach emphasizes that HR strategies should be contingent on the

context and circumstances of the organization and its type.

‘Best fit’ can be perceived in terms of vertical integration or alignment between the

organization’s business and HR strategies. There is a choice of models, namely:

lifecycle, competitive strategy, and strategic configuration.

1. The lifecycle model

The lifecycle model is based on the theory that the development of a firm takes place in

four stages: start-up, growth, maturity and decline. This is in line with product lifecycle

theory.

2. Competitive strategies

Three strategies aimed at achieving competitive advantage have been identified by

Porter (1985):

a. Innovation – being the unique producer.

b. Quality – delivering high-quality goods and services to customers.

c. Cost leadership – the planned result of policies aimed at 'managing away

expense’.

3. Strategic configuration

This proposition states that organizations will be more effective if they adopt a policy of

strategic configuration (Delery and Doty, 1996).

This is achieved by matching strategy to one of the ideal types defined by theories

such as those produced by Miles and Snow (1978), who identified three types:

prospectors, defenders and analysers.

Limitations to the concept of best fit

● The danger of ‘contingent determinism’ (Paawue, 2004) – claiming that the context

determines the strategy.

● The risk of mechanistically matching HR policies and practices with strategy. It is

not credible to claim that there are single contextual factors that determine HR

strategy, and internal fit cannot therefore be complete.

● Tendency to be static – not taking into account the processes of change.

● Neglects the fact that institutional forces shape HRM – it cannot be assumed that

employers are free agents able to make independent decisions.

Bundling

‘Bundling’ is the development and implementation of several HR practices together so

that they are interrelated and therefore complement and reinforce each other. Research

conducted by MacDuffie (1995) and others showed that bundling improved performance

significantly.

The practical implications of strategic HRM theory

● Emphasizes that the achievement of sustained competitive advantage depends on

the unique resources and capabilities that a firm brings to competition in its

environment.

● Provides a rationale for generating strategic capability and ensuring that the

organization has the people it needs to achieve sustained competitive advantage.

● Stresses that business and HR strategy and functional HR strategies should be

aligned with one another.

Strategic HRM model

HR strategies – overall/specific

Strategic management – strategic role of HR

Strategic HRM

Strategic choice

Strategic analysis

Concept Map

implementing good HR practices

extending skills base hiring and

developing more capable people

by

non-substitutable

resources are not perfectly mobile

firms more intelligent and flexible than competitors

imperfectly imitatable

creates

means

rare strategic fit

valuable

resources are heterogeneous

strategic capability

by derives from

achieved when resources are

arises when

competitive advantage

unique character of organization

human capital advantage

human process advantage

produce produce produce

RESOURCE-BASED VIEW

financial and other resources human resources

relates to relates to


Best fit – HR strategies should be congruent with the context and circumstances of the

organization. ‘Best fit’ can be perceived in terms of vertical integration or alignment

between the organization’s business and HR strategies.

Best practice – The assumption that there is a set of best HRM practices and that

adopting them will inevitably lead to superior organizational performance. They are

universal in the sense that they are best in any situation.

Bundling – The development and implementation of several HR practices together so

that they are interrelated and therefore complement and reinforce each other.

Competitive advantage – Achieving and sustaining better results than business rivals

and thus developing competitive edge.

Configuration – The structures, processes, relationships and boundaries through which

an organization operates. The term is used in two special senses: 1) the fit between

an organization’s HR strategy and its business strategy (Delery and Doty, 1996), and

2) the fit of different HR practices with one another (bundling, qv).

Human resource advantage – The concept following the resource-based view that

competitive advantage is achieved when firms have more skilled, intelligent and

effective staff than their competitors.

Lifecycle model – The theory that the development of a firm takes place in four stages:

start-up, growth, maturity and decline.

Resource-based view – The view that it is the range of resources in an organization,


competitive advantage. HRM delivers added value and helps to achieve sustainable

competitive advantage through the strategic development of the organization’s rare,

hard to imitate and hard to substitute human resources.

Strategic configuration – The proposition that organizations will be more effective if they

match their strategy to one of the ideal types such as the prospectors, defenders and

analysers identified by Miles and Snow (1978).

Strategic fit – The need when developing HR strategies to achieve congruence between

them and the organization’s business strategies within the context of its external and

internal environment. Strategic fit refers to the two dimensions that distinguish

strategic HRM: ‘First, vertically, it entails the linking of human resource management

practices with the strategic management processes of the organization. Second,

horizontally, it emphasizes the coordination or congruence among the various human

resource management practices’ (Wright and McMahan, 1992).

Strategic human resource management (HRM) – An approach that defines how the

organization’s goals will be achieved through people by means of HR strategies and

integrated HR policies and practices. It involves the delivery of services in a way that

supports the implementation of the firm’s strategy.

Strategy – The approach selected to achieve defined goals in the future; a declaration of

intent.


1. Describe the main features of a strategic HRM approach.

2. Prepare for a chief executive the business case for adopting a strategic human

resource management approach.

3. What is the resource-based view and what is its practical significance?

4. What is meant by the concept of fit in strategic HRM and what is its practical

significance?

5. How important is flexibility in strategic HRM and how can considerations of flexibility

be reconciled with the need for strategic fit?

6. What does the concept of best practice mean? Give examples.

7. Are there any problems with the concept of best practice? If so, what are they?

8. What does the concept of best fit mean?

9. What are the main best fit models?

10. Are there any problems with the concept of best fit? If so, what are they?

11. What does ‘bundling’ mean and why is it important? Give examples.

12. What problems may arise when ‘bundling’? How can they be overcome?

13. What are the main practical implications of strategic HRM theory?

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3. HR STRATEGIES

Teaching notes


Describe HR strategies – their purpose, how they are formulated and what they contain.



Purpose of HR strategy

General HR strategy areas – high-performance management, high-commitment management and high-involvement management

Specific HR strategy areas

Criteria for an effective HR strategy

How HR strategy is formulated

Fundamental questions on the development of HR strategy

How the vertical integration of business and HR strategies is achieved

How horizontal fit (bundling) is achieved

How HR strategies can be set out

How HR strategies can be implemented


High-commitment management

High-involvement management

High-performance management

Horizontal fit or integration

HR strategy

Vertical fit or integration


Contents





A bibliography

Session outline

Purpose of HR strategy

HR strategies set out what the organization intends to do now and in the longer term

about its human resource management policies and practices and how they should be

integrated with the business strategy and each other.

General HR strategy areas – high-performance management

● An approach to HRM that aims to make an impact on the performance of the

organization through its people in such areas as productivity, quality, levels of

customer service, growth and profits.

● High-performance management practices include rigorous recruitment and

selection procedures, extensive and relevant training and management

development activities, incentive pay systems and performance management.

● Note that the term ‘high performance’ is often associated with high commitment or

high involvement and there may be some overlap between these concepts.

General HR strategy areas – high-commitment management

‘A form of management which is aimed at eliciting a commitment so that behaviour is

primarily self-regulated rather than controlled by sanctions and pressures external to the

individual, and relations within the organization are based on high levels of trust’ (Wood,

1996).

General HR strategy areas – high-involvement management

‘High-involvement work practices are a specific set of human resource practices that

focus on employee decision-making, power, access to information, training and

incentives’ (Benson et al, 2006).

Specific HR strategy areas

Specific strategy areas include:

● human capital management;

● corporate social responsibility;

● organization development;

● engagement;

● knowledge management;

● employee resourcing;

● talent management;

● learning and development;

● reward;

● employee relations;

● employee well-being.

Criteria for an effective HR strategy

● Satisfies business needs.

● Founded on detailed analysis and study.

● Can be turned into actionable programmes.

● Is coherent and integrated.

● Takes account of the needs of line managers and employees generally as well as

those of the organization and its other stakeholders.

Fundamental questions on the development of HR strategy

● What are the firm’s strategic objectives and how are these translated into unit

objectives?

● What are the ‘performance drivers’ of those objectives and how do the skills,

motivation and structure of the firm’s workforce influence these performance

drivers?

● How does the HR system influence the skills, motivation and structure of the

workforce?

How the vertical integration of business and HR strategies is achieved

● Understand the business strategy.

● Identify the skills and behaviour necessary to implement the business strategy.

● Understand and develop the HRM practices necessary to elicit those skills and

behaviours. The business strategy may not be clearly defined – it could be in an

emergent or evolutionary state, which would mean that there would be little or

nothing with which to fit the HR strategy.

Problems of achieving vertical integration

● The business strategy may not be clear.

● Even if clear, it may be difficult to determine precisely how HR strategies could

help in specific ways to support the achievement of particular business objectives.

● HR specialists do not always have the strategic capability to make the connection

between business and HR strategies.

● Barriers may exist between top management and HR on strategic issues.

Overcoming the problems

It is up to HR practitioners in their strategic role to overcome these problems by:

● getting to know what the business is aiming to do and what drives it;

● understanding how HR practices make an impact;

● achieving access to strategic business decision making by demonstrating their

credibility as an integral part of the management of the business.

How horizontal fit (bundling) is achieved

● Identify appropriate HR practices.

● Assess how these items can be bundled together so that they become mutually

reinforcing.

● Draw up programmes for the development of these practices, paying particular

attention to the links between them.

How HR strategies can be set out

The format will vary but may typically be set out under the following headings:

● Basic considerations.

● Content.

● Rationale.

● Implementation plan.

● Costs and benefits analysis.

How HR strategies can be implemented

● Analyse business needs and how the HR strategy will help to meet them.

● Communicate full information on the strategy and what it is expected to achieve.

● Involve those concerned in identifying implementation problems and how they

should be dealt with.

● Prepare action plans.

● Project manage the implementation in a way that ensures the action plans are

achieved.


High-commitment management – A form of management aimed at eliciting a

commitment so that behaviour is primarily self-regulated rather than controlled by

sanctions and pressures external to the individual, and relations within the

organization are based on high levels of trust (Wood, 1996).

High-involvement management – A specific set of human resource practices that focus

on employee decision making, power, access to information, training and incentives.

High-performance management – An approach that aims to make an impact on the

performance of the organization through its people in such areas as productivity,

quality, levels of customer service, growth and profits.

Horizontal fit or integration – Linking different HR practices together (also known as

‘bundling’).

HR strategy – Sets out what the organization intends to do about its human resource

management policies and practices and how they should be integrated with the

business strategy and each other.

Vertical fit or integration – Aligning HR strategy with the business strategy.


1. What is the purpose of HR strategy?

2. What are the main areas in which general HR strategies might be developed?

3. What are the main characteristics of high-performance management?

4. What are the main characteristics of high-commitment management?

5. What are the main characteristics of high-involvement management?

6. What are the main areas in which specific HR strategies might be developed?

7. What are the criteria for an effective HR strategy?

8. What are the problems of achieving vertical integration and how can they be

overcome?

9. Under what headings might an HR strategy be set out?

10. How should HR strategies be implemented?

Bibliography

Abell, D F (1993) Managing with Dual Strategies: Mastering the present, pre-empting the

future, Free Press, New York

Appelbaum, E, Bailey, T, Berg, P and Kalleberg, A L (2000) Manufacturing Advantage:


Baird, L and Meshoulam, I (1988) Managing two fits of strategic human resource

management, Academy of Management Review, 13 (1), pp 116–28

Baron, D (2001) Private policies, corporate policies and integrated strategy, Journal of

Economics and Management Strategy, 10 (7), pp 7–45



Personnel and Human Resource Management, 16, pp 53–101

Benson, G S, Young, S M and Lawler, E E (2006) High involvement work practices and

analysts’ forecasts of corporate performance, Human Resource Management, 45 (4),

pp 519–27

Boxall, P (1999) Human resource strategy and competitive advantage: a longitudinal

study of engineering consultancies, Journal of Management Studies, 36 (4), pp 443–

63



Gratton, L A (1999) People processes as a source of competitive advantage, in (ed) L

Gratton, V H Hailey, P Stiles and C Truss, Strategic Human Resource Management,


Gratton, L A, Hailey, V H, Stiles, P and Truss, C (1999) Strategic Human Resource


Kepes, S and Delery, J E (2007) HRM systems and the problem of internal fit, in (ed) P

Boxall, J Purcell and P Wright, Oxford Handbook of Human Resource Management,


Lawler, E E (1986) High Involvement Management, Jossey-Bass, San Francisco, CA

Lawler, E E, Mohrman, S and Ledford, G (1998) Strategies for High Performance

Organizations: Employee involvement, TQM, and re-engineering programs in Fortune

1000, Jossey-Bass, San Francisco, CA

Miles, R E and Snow, C C (1978) Organizational Strategy: Structure and process,

McGraw-Hill, New York

Pfeffer, J (1998) The Human Equation, Harvard Business School Press, Boston, MA

Pil, F K and MacDuffie, J P (1996) The adoption of high-involvement work practices,


Porter, M E (1985) Competitive Advantage: Creating and sustaining superior

performance, The Free Press, New York



Rousseau, D M and Wade-Benzoni, K A (1994) Linking strategy and human resource

practices: how employee and customer contracts are created, Human Resource


Schuler, R S and Jackson, S E (1987) Linking competitive strategies with human

resource management practices, Academy of Management Executive, 9 (3), pp 207–

19

Sung, J and Ashton, D (2005) High Performance Work Practices: Linking strategy and

skills to performance outcomes, DTI in association with CIPD, available at

http://www.cipd.co.uk/subjects/corpstrtgy/

Thompson, M (2002) High Performance Work Organization in UK Aerospace, The

Society of British Aerospace Companies, London

Tyson, S and Witcher, M (1994) Human resource strategy emerging from the recession,

Personnel Management, August, pp 20–23

Ulrich, D and Lake, D (1990) Organizational Capability: Competing from the inside out,

Wiley, New York


Performance, US Government Printing Office, Washington, DC





Wood, S (1996) High commitment management and organization in the UK, The

International Journal of Human Resource Management, 7 (1), pp 41–58

Wood, S, de Menezes, L M and Lasaosa, A (2001) High Involvement Management and

Performance, paper delivered at the Centre for Labour Market Studies, University of

Leicester, May

Wright, P M and Snell, S A (1998) Towards a unifying framework for exploring fit and

flexibility in strategic human resource management, Academy of Management

Review, 23 (4), pp 756–72

Wright, P M, Snell, S A and Jacobsen, H H (2004) Current approaches to HR strategies:

inside-out versus outside-in, Human Resource Planning, 27 (4), pp 36–46

4. HUMAN CAPITAL MANAGEMENT

Teaching notes

Objective of session

Introduce concepts of human capital management and intellectual capital and describe their practical significance.

Learning outcomes of session


The concept of human capital

Characteristics of human capital

Constituents of human capital

Significance of human capital theory

Importance of human capital measurement

Reasons for interest in human capital measurement

Approaches to measurement

Measurement elements

Factors affecting choice of measurement

Criteria for HCM data for managers


Human capital Human capital management (HCM)

Human capital advantage Human capital index – Watson Wyatt

Human process advantage Human capital measurement

Human capital monitor – Andrew Mayo Intellectual capital

Intangible resources Metrics

Organizational capital Organizational performance model

Social capital – Mercer HR Consulting


Contents





A bibliography

Session outline

The concept of human capital

● Human capital comprises the knowledge, skills and abilities of the people

employed in an organization.

● Individuals generate, retain and use knowledge and skill (human capital) and

create intellectual capital.

● Human capital ‘defines the link between HR practices and business performance

in terms of assets rather than business processes’ (Scarborough and Elias, 2002).

Characteristics of human capital

Human capital is non-standardized, tacit, dynamic, context dependent and embodied in

people (Scarborough and Elias, 2002).

Constituents of human capital

Human capital consists of:

● Intellectual capital – the stocks and flows of knowledge available to an

organization, ie the intangible resources associated with people.

● Social capital – the knowledge derived from networks of relationships within and

outside the organization.

● Organizational capital – the institutionalized knowledge possessed by an

organization that is stored in databases, manuals, etc.

Significance of human capital

Human capital theory regards people as assets and stresses that investment by

organizations in people will generate worthwhile returns.

Importance of human capital measurement

Measuring and valuing human capital is an aid to people management decision making.

Reasons for interest in human capital measurement

Human capital constitutes a key element of the market worth of a company.

People in organizations add value

● Focus attention on what needs to be done to make the best use of its human

capital.

● Monitor progress in achieving strategic HR goals and evaluate HR practices.

● You cannot manage unless you measure.

Approaches to measurement

● The human capital index – Watson Wyatt.

● The organizational performance model – Mercer HR Consulting.

● The human capital monitor – Andrew Mayo.

Measurement elements

● Workforce data – demographic data (numbers by job category, sex, race, age,

disability, working arrangements, absence and sickness, turnover and pay).

● People development data – learning and development programmes, performance

management/potential assessments, skills and qualifications.

● Perceptual data – attitude/opinion surveys, focus groups, exit interviews.

● Performance data – financial, operational and customer.

Factors affecting choice of measurement

● Type of organization; its business goals and drivers.

● The existing key performance indicators (KPIs).

● Use of the balanced score card.

● The availability, use and manageability of data.

Criteria for HCM data managers

Data will only be useful for managers if:

● They are credible, accurate and trustworthy.

● The managers understand what it means for them.

● They are accompanied by guidance as to what action can be taken.

● The managers have the skills and abilities to understand and act upon them.


Human capital – The knowledge, skills and abilities of the people employed in an

organization.

Human capital advantage – The achievement of competitive advantage by employing

people with competitively valuable knowledge and skills.

Human capital index – A method of measuring the value of human capital devised by

Watson Wyatt.

Human capital management (HCM) – The process of obtaining, analysing and reporting

on data relating to employees to inform HRM decisions.

Human capital measurement – The process of finding links, correlations and, ideally,

causation, between different sets of (HR) data, using statistical techniques.

Human capital monitor – A method devised by Andrew Mayo (2001) of identifying the

human value of the enterprise or ‘human asset worth’.

Intellectual capital – The stocks and flows of knowledge available to an organization, ie

the intangible resources associated with people.

Intangible resources – The stocks and flows of knowledge available to an organization.

Metrics – Measurements, as used in human capital management, for data on employee

turnover, absenteeism, performance, etc.

Organizational capital – The institutionalized knowledge possessed by an organization

that is stored in databases, manuals, etc.

Organizational performance model – A method of valuing the impact of human capital on

performance devised by Mercer HR Consulting.

Social capital – The knowledge derived from networks of relationships within and outside

the organization.


1. What is human capital?

2. What is the purpose of human capital management?

3. What questions on people management are raised by human capital theory?

4. Why is the measurement of human capital important?

5. What are the key aspects of human capital that should be measured?

6. What factors determine what human capital data should be reported?

Bibliography

Baron, A and Armstrong, M (2007) Human Capital Management: Achieving added value

through people, Kogan Page, London

Becker, B E, Huselid, M A, Pickus, P S and Spratt, M F (1997) HR as a source of

shareholder value: research and recommendations, Human Resource Management,

Spring, 36 (1), pp 39–47

Bontis, N (1998) Intellectual capital: an exploratory study that develops measures and

models, Management Decision, 36 (2), pp 63–76

Bontis, N, Dragonetti, N C, Jacobsen, K and Roos, G (1999) The knowledge toolbox: a

review of the tools available to measure and manage intangible resources, European

Management Journal, 17 (4), pp 39–1402

CFO Research Services (2003) Human Capital Management: The CFO’s perspective,

CFO Publishing, Boston, MA

Chartered Institute of Personnel and Development (2003) Human Capital: External

reporting framework, CIPD, London

Davenport, T O (1999) Human Capital, Jossey Bass, San Francisco, CA

Donkin, R (2005) Human Capital Management: A management report, Croner, London

Hartley, V (2005) Open for Business: HR and human capital reporting, IES, Brighton

IDS (2004) Searching for the magic bullet, HR Study 783, IDS London

Mayo, A (1999) Making human capital meaningful, Knowledge Management Review,

January/February, pp 26–29

Mayo, A (2001) The Human Value of the Enterprise: Valuing people as assets, Nicholas

Brealey, London

Nalbantian, R, Guzzo, R A, Kieffer, D and Doherty, J (2004) Play to Your Strengths:

Managing your internal labor markets for lasting competitive advantage, McGraw-Hill,

New York

Scarborough, H and Elias, J (2002) Evaluating Human Capital, CIPD, London

5. ROLE AND ORGANIZATION OF THE HR FUNCTION

Teaching notes



The role of the HR function

The activities of the HR function

The diversity of the HR function

The Ulrich three-legged stool model of HR organization

Guidelines on organizing the HR function

Criteria for evaluating the effectiveness of the HR function

The dimensions of HR effectiveness


Benchmarking Process criteria

Boundary management Service level agreement

Business partners Shared service centre

Centre of expertise Transactional activities

Offshoring Transformational activities

Output criteria The Ulrich three-legged stool model

Outsourcing Utility analysis


Contents





A bibliography

Session outline

The role of the HR function

● Take initiatives and provide guidance, support and services on all matters relating

to the organization’s employees in order to support the achievements of business

goals.

● Ensure that HR strategies, policies and practices are introduced and maintained

that cater for everything concerning the employment, development and well-being

of people and the relationships that exist between management and the workforce.

● Further the creation of an environment that enables people to make the best use of

their capacities, to realize their potential to the benefit of both the organization and

themselves and, by improving the quality of working life, to achieve satisfaction

through their work.

The activities of the HR function

● Strategic (transformational) activities concerned with the alignment and

implementation of HR and business strategies.

● Transactional – the main HR service delivery activities of resourcing, learning and

development, reward and employee relations.

The diversity of the HR function

HR management involves a variety of roles and activities that differ from one

organization to another and from one level to another in the same organization.

The Ulrich ‘three-legged stool’ model of HR organization

● Centres of expertise – these specialize in the provision of high-level advice and

services on key HR activities.

● Strategic business partners – these work with line managers to help them reach

their goals through effective strategy formulation and execution. They are often

‘embedded’ in business units or departments.

● Shared service centres – these handle all the routine ‘transactional’ services

across the business, which include such activities as recruitment, absence

monitoring and advice on dealing with employee issues such as discipline and

absenteeism.

Guidelines on organizing the HR function

● The head of the function should report directly to the chief executive and be a

member of the top management team involved in developing business strategy.

● Operational units should be responsible for their own HR management affairs

within the framework of broad strategic and policy guidelines from the centre.

● The professional members of the function should have ‘strategic capability’.

● Increased responsibility for HR matters should be devolved to line managers.

Criteria for evaluating the effectiveness of the HR function

Its ability to operate strategically and its capacity to deliver the levels of services

required.

The dimensions of HR effectiveness

● Strategic HRM – the delivery of services in a way that supports the implementation

of the firm’s strategy.

● Technical HRM – the delivery of HR basics such as recruitment, compensation

and benefits.

Quantitative criteria for evaluating the HR function

● Organizational: added value per employee, profit per employee, sales value per

employee, costs per employee, added value per £ of employment costs.

● Employee behaviour: retention and turnover rates, absenteeism, sickness,

accident rates, grievances, disputes, references to employment tribunals,

successful suggestion scheme outcomes.

● HR service levels and outcomes: time to fill vacancies, time to respond to

applicants, measurable improvements in organizational performance as a result of

HR practices, ratio of HR costs to total costs, ratio of HR staff to employees.

How HR people can demonstrate their effectiveness

● Understand the business strategy.

● Anticipate business needs and propose realistically how HR can help to meet

them.

● Show that they are capable of meeting performance standards.

● Provide relevant, clear, convincing and practical advice.

● Provide efficient and effective services.

● Generally reveal their understanding and expertise.

Key points for measuring HR performance (Likierman, 2005)

● Agree objectives against budget assumptions.

● Use more sophisticated measures.

● Use comparisons imaginatively.

● Improve feedback through face-to-face discussion.

● Be realistic about what performance measures can deliver.

Methods of evaluation

● User reaction.

● Employee satisfaction measures.

● Benchmarking.

The HR scorecard (Beatty et al, 2003)

The four headings are:

1. HR competencies – administrative expertise, employee advocacy, strategy

execution and change agency.

2. HR practices – communication, work design, selection, development,

measurement and rewards.

3. HR systems – alignment, integration and differentiation.

4. HR deliverables – workforce mindset, technical knowledge, and workforce

behaviour.

Outsourcing

● Benefits include reduced cost, access to expertise not available within HR,

increased flexibility and speed of response, and freeing-up HR to focus on more

value-adding activities.

● Problems include suppliers increasing charges, short-term decisions on what can

be outsourced, lower employee morale.

Use of management consultants

Provide expertise and may act as service providers in recruitment, executive search and

training.

Marketing the HR function

Persuade management that HR is a service the business needs by making out the

business case – spelling out its benefits in terms of added value and the impact it will

make on performance.

HR budgeting

● Budgets need to be justified and protected.

● Justification means ensuring in advance that objectives and plans are generally

agreed.

● Protection means providing in advance a rationale for each area of expenditure (a

business case) that proves it is necessary and will justify the costs involved.

The HR role of line managers

HR can initiate new policies and practices but it is the line that has the main

responsibility for implementing them.

Better ownership by line managers of HR practices is more likely to be achieved if:

● the practice demonstrably benefits them;

● they are involved in the development and the testing of the practices;

● the practice is not too complicated, bureaucratic or time-consuming;

● their responsibilities are defined and communicated clearly;

● they are provided with the guidance, support and training required to implement

the practice.


Benchmarking (the HR function) – Comparing what the HR function is doing with what is

happening in similar organizations to establish the extent to which good practices

have been adopted and to indicate areas for improvement.

Boundary management – Managing transactions between departments or units across

organizational boundaries.

Business partners – HR specialists who act as business partners share responsibility

with their line management colleagues for the success of the enterprise and get

involved with them in implementing business strategy and running the business.

Centres of expertise – HR units or sections that specialize in the provision of high-level

advice and services on key HR activities.

Offshoring – Employing people overseas to carry out work on behalf of a UK

organization, eg call centres.

Process criteria – Evaluation based on an assessment of how well things are done.

Service level agreement (SLA) – An agreement between the provider of HR services

and the customers who use the service on the level of service that should be

provided.

Shared service centre – An HR unit or an outsourced facility set up to handle routine

‘transactional’ services across the business. These include such activities as

recruitment, absence monitoring and advice on dealing with employee issues, eg

discipline and absenteeism. The customer or user may define the level of the service

and decide which services to take up.

Transactional activities – Those activities carried out by the HR function that deal with

the administration of standard HR practices such as recruitment, training and reward.

Transformational activities – Those activities carried out by the HR function that are

strategic and aim to make significant changes to the organization’s culture and how

the organization functions or how its employees are treated.

Three-legged organization of HR – An HR function organized in line with the three

categories of HR activity identified by Ulrich, namely: centres of expertise, strategic

business partners and shared service centres.

Utility analysis – An analysis of the impact of HR activities measured wherever possible

in financial terms (quantity), improvements in the quality of those activities, and cost–

benefit (the cost of the activities in relation to the benefits they provide).


1. Describe the role of the HR function.

2. What is Ulrich’s ‘three-legged stool’ model of the HR function? Does it make sense?

3. How can the effectiveness of the HR function be evaluated?

4. What are the benefits and the problems of outsourcing?

5. What is the role of line managers in HRM? What can be done to increase their

effectiveness in this role?

Bibliography

Beatty, R W, Huselid, M A and Schneier, C E (2003) Scoring on the business scorecard,

Organizational Dynamics, 32 (2), pp 107–21

Boudreau, J W (1988) Utility analysis, in (ed) L Dyer, Human Resource Management:

Evolving roles and responsibilities, Bureau of National Affairs, Washington, DC



Press, Oxford

Chartered Institute of Personnel and Development (2007) The Changing HR Function,

CIPD, London

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Crail, M (2008) HR roles and responsibilities 2008: benchmarking the HR function, IRS

Employment Review 888, 3 January, pp 1–8





Guest, D E and King, Z (2004) Power, innovation and problem-solving: the personnel

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23

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management, British Journal of Industrial Relations, June, pp 219–42

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organizational performance, Human Resource Management Journal, 15 (3), pp 49–

66

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resource management effectiveness as determinants of firm performance, Academy

of Management Journal, 40 (1), pp 171–88

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managers in people management, CIPD, London

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relationship, IPD, London

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August, pp 44–45

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Performance: How people management impacts on organisational performance,

CIPD, London

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Employment Studies, Brighton

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Robinson, V (2006) Three legs good? People Management, 26 October, pp 63–64

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Storey, Human Resource Management: A critical text, Routledge, London

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Tyson, S and Fell, A (1986) Evaluating the Personnel Function, Hutchinson, London

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(3) pp 12–23

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MA

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January–February, pp 124–34

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Wiley, New York

6. THE ROLE OF THE HR PRACTITIONER

Teaching notes



The basic role of HR practitioners

The business partner role

The strategic role

The strategic activities of HR practitioners

Other key roles – change agent, internal consultant, service provider, guardian of values

Models of HR roles

Gaining buy-in from top management

Gaining support from line managers

Ethical considerations

Professionalism

Ambiguities and conflict in the role

HR effectiveness

HR competencies


Business partner Conformist innovators

Continuous professional development Deviant innovators

Employee advocate Evidence-based management

Impression management Organizational capability

Process consulting Strategic partner

Thinking performer Value-added approach






A bibliography

Content

Session outline

The basic role of HR practitioners

The roles of HR practitioners vary widely according to:

● The extent to which they are generalist (eg HR director, HR manager, business

partner).

● The extent to which specialist (eg head of learning and development, head of

talent management, head of reward).

● The level at which they work (strategic, executive or administrative).

● The needs of the organization.

● The context within which they work.

● Their own capabilities.

The business partner role

As business partners HR specialists:

● Work closely with their line management colleagues.

● Are aware of business strategies and the opportunities and threats facing the

organization.

● Are capable of analysing organizational strengths and weaknesses and diagnosing

the issues facing the enterprise and their human resource implications.

● Know about the critical success factors that will create competitive advantage.

● Adopt a ‘value added’ approach when making a convincing business case for

innovations.

● Share responsibility with their line management colleagues for the success of the

enterprise and get involved with them in implementing business strategy and

running the business.

The strategic role

● Formulate and implement forward-looking HR strategies that are aligned to

business objectives and integrated with one another.

● Contribute to the development of business strategies.

● Work alongside their line management colleagues to provide, on an everyday

basis, continuous support to the implementation of the strategy of the organization,

function or unit.

The strategic activities of HR practitioners

● Formulate HR strategies.

● Provide continuous support to line managers in implementing their business or

operational strategies.

● Proactive in identifying issues that can be addressed through major or relatively

minor HR initiatives.

Other key roles

● Act as change agents, facilitating change by providing advice and support on its

introduction and management.

● Act as internal consultants, working alongside their colleagues – their clients – in

analysing problems, diagnosing issues and proposing solutions.

● Provide services to internal customers. The services may be general, covering all

aspects of HRM, or services may only be provided in one or two areas.

● May act as the guardians of the organization’s values and ethical standards

concerning people. They point out when behaviour conflicts with those values or

where proposed actions will be inconsistent with them.

Models of HR roles

A number of models of HR roles exist, eg:

● Karen Legge (1978), who identified two types of HR managers: conformist

innovators who go along with their organization's ends and adjust their means to

achieve them, and deviant innovators who attempt to change this means/ends

relationship by gaining acceptance for a different set of criteria for the evaluation of

organizational success and their contribution to it.

● Tyson and Fell (1986), who listed three roles: the clerk of works (mainly

administrative), the contracts manager (more sophisticated with an employee

relations focus) and the architect (strategic/innovative).

● Ulrich and Brockbank (2005), who identified four roles: employee advocate, human

capital developer, functional expert and strategic partner.

Gaining buy-in from top management

● Demonstrate that the proposal will meet organizational needs.

● Base the proposal on a compelling and realistic business case that shows the

innovation will increase the business' competitive edge.

● Prove that the innovation has already worked well within the organization (in a pilot

scheme) or elsewhere.

● Specify how the proposal can be implemented without too much trouble.

● Indicate that the innovation will add to the reputation of the company.

● Emphasize that the innovation will enhance the ‘employer brand’ of the company.

● Ensure that the proposal is brief, to the point and well argued.

Gaining support from line managers

Managers need to be convinced that the innovation will help them to achieve better

results without imposing unacceptable additional burdens on them.

Ethical considerations

HR specialists should speak out against plans or actions that are not in accord with the

organization’s ethical standards or values.

Professionalism

HR specialists are professional when they display expertise in doing their work and act

responsibly.

Ambiguities and conflict in the role

HR practitioners have to be 'specialists in ambiguity’. Conflict may arise because of a

clash of values, different priorities and the need for HR to exercise a measure of control

over the people management activities of managers.

HR effectiveness

Effective HR practitioners:

● operate strategically;

● facilitate change;

● understand organizational and individual needs;

● are businesslike and persuasive;

● use an evidence-based management approach;

● deliver their services efficiently and effectively.

HR competencies

The main competencies required by HR professionals are:

● business awareness;

● strategic capability;

● organizational effectiveness;

● capacity as an internal consultant;

● effective service delivery;

● acting in the interests of employees;

● continuous professional development.


Business partners – HR specialists who act as business partners share responsibility

with their line management colleagues for the success of the enterprise and get

involved with them in implementing business strategy and running the business.

Conformist innovators – As defined by Legge (1978), HR specialists who go along with

their organization's ends and adjust their means to achieve them. Their expertise is

used.

Continuous professional development (CPD) – The process that enables the integration

of learning with work in ways relevant to the learner, is self-directed and contributes to

the learner’s development needs.

Deviant innovators – As defined by Legge (1978), HR specialists who attempt to change

this means/ends relationship by gaining acceptance for a different set of criteria for

the evaluation of organizational success and their contribution to it.

Employee advocate – As described by Ulrich and Brockbank (2005), an HR specialist

who focuses on the needs of employees through listening, understanding and

empathizing.

Evidence-based management – Translating principles based on best evidence into

organizational practices.

Impression management – Seeking to make an impact and create a good impression on

senior managers and colleagues by publicizing high-profile innovations.

Organizational capability – The capacity of an organization to function effectively in order

to compete and deliver results.

Process consulting – Helping clients to generate and analyse information they can

understand and, following a diagnosis, act upon.

Strategic partner – As described by Ulrich and Brockbank (2005), an HR specialist who

aligns HR systems to help accomplish the organization’s vision and mission, helping

managers to get things done, and disseminating learning across the organization.

Thinking performer – A CIPD concept that emphasizes that HR professionals have to

think carefully about what they are doing in the context of their organization and within

the framework of a recognized body of knowledge, and have to perform effectively in

the sense of delivering advice, guidance and services that will help the organization to

achieve its strategic goals.

Value-added approach – An approach to HR that emphasizes that one of the most

important aims is to generate added value, ie the extra value in terms of the benefit to

the business generated by HR activities.


1. What are the main roles of HR practitioners?

2. Critically examine the concept of the business partner.

3. Describe the main models of HR roles.

4. How should HR practitioners gain support from top management?

5. What are the main competencies required by HR professionals?

Bibliography



Caldwell, R (2001) Champions, adapters, consultants and synergists: the new change

agents in HRM, Human Resource Management Journal, 11 (3), pp 39–52

Caldwell, R (2004) Rhetoric, facts and self-fulfilling prophesies: exploring practitioners’

perceptions of progress in implementing HRM, Industrial Relations Journal, 35 (3), pp

196–215

Chartered Institute of Personnel and Development (2005) The Thinking Performer, CIPD



Gratton, L A (2000) Real step change, People Management, 16 March, pp 27–30

Guest, D E and Hoque, K (1994) Yes, personnel management does make the

difference, Personnel Management, November, pp 40–44

Guest, D E and King, Z (2004) Power, innovation and problem-solving: the personnel

managers’ three steps to heaven?, Journal of Management Studies, 41 (3), pp 401–

23

Hope Hailey, V, Farndale, E and Truss, C (2005) The HR department’s role in

organizational performance, Human Resource Management Journal, 15 (3), pp 49–

66

Hoque, K and Noon, M (2001) Counting angels: a comparison of personnel and HR

specialists, Human Resource Management Journal, 11 (3), pp 5–22

Legge, K (1978) Power, Innovation and Problem Solving in Personnel Management,

McGraw-Hill, Maidenhead

Legge, K (1995) Human Resource Management: Rhetorics and realities, Macmillan,

London

Marchington, M (1995) Fairy tales and magic wands: new employment practices in

perspective, Employee Relations, Spring, pp 51–66

Monks, K (1992) Models of personnel management: a means of understanding the

diversity of personnel practices, Human Resource Management Journal, 3 (2), pp 29–

41

Pickard, J (2005) Part not partner, People Management, 27 October, pp 48-50

Reilly, P (2000) HR Shared Services and the Re-alignment of HR, Institute for

Employment Studies, Brighton

Smethurst, S (2005) The long and winding road, People Management, 28 July, pp 25–29

Storey, J (1992) HRM in action: the truth is out at last, Personnel Management, April, pp

28–31

Syrett, M (2006) Four reflections on developing a human capital measurement

capability, What’s the Future for Human Capital?, CIPD, London

Thurley, K (1981) Personnel management: a case for urgent treatment, Personnel

Management, August, pp 24–29

Tyson, S (1985) Is this the very model of a modern personnel manager?, Personnel

Management, May, pp 22–25

Tyson, S and Fell, A (1986) Evaluating the Personnel Function, Hutchinson, London

Ulrich, D (1997) Human Resource Champions, Harvard Business School Press, Boston,

MA





Ulrich, D and Brockbank, W (2005) The HR Value Proposition, Harvard Business School

Press, Cambridge, MA

Ulrich, D and Brockbank, W (2005) Role call, People Management, 16 June, pp 24–28


Wiley, New York

Watson, A (1977) The Personnel Managers, Routledge and Kegan Paul, London

7. THE IMPACT OF HRM ON PERFORMANCE

Teaching notes



Outcomes of research on the link between HRM and firm performance

Problems of establishing a link

HRM and individual performance

Link between HRM and organizational performance

How HR practices make an impact


AMO formula

Contingency theory

Discretionary effort

Expectancy theory

Organizational capability

Organizational effectiveness

Performance

Reversed causality


Contents





A bibliography

Session outline

Outcomes of research on the link between HRM and firm performance

● Firms with a high-commitment strategy had significantly higher levels of both

productivity and quality than those with a control strategy (Arthur, 1992).

● Productivity is influenced by employee motivation; financial performance is

influenced by employee skills, motivation and organizational structures. (Huselid,

1995).

● Firms with high values on the index had economically and statistically higher levels

of performance (Huselid and Becker, 1996).

● High-performance systems make an impact as long as they are embedded in the

management infrastructure (Becker et al, 1997).

● HR practices explained significant variations in profitability and productivity

(Patterson et al, 1997).

● High-performance work systems produced strong positive effects on performance

(Appelbaum et al, 2000).

● A strong association exists between HRM and both employee attitudes and

workplace performance (Guest et al, 2000a).

● A greater use of HR practices is associated with higher levels of employee

commitment and contribution and is in turn linked to higher levels of productivity

and quality of services (Guest et al, 2000b).

● The number of HR practices and the proportion of the workforce covered appeared

to be the key differentiating factor between more and less successful firms

(Thompson, 2002).

● If you have HR practices that focus on effort and skill, develop people’s skills, and

encourage cooperation, collaboration, innovation and synergy in teams for most, if

not all employees, the whole system functions and performs better (West et al,

2002).

● Some evidence has been shown of an association between HRM, as described by

the number of HR practices in use, and performance, but there no convincing

indication that the greater application of HRM is likely to result in improved

corporate performance (Guest et al, 2003).

● Clear evidence exists between positive attitudes towards HR policies and

practices, levels of satisfaction, motivation and commitment, and operational

performance (Purcell et al, 2003).

Problems of establishing a link

● At present the studies report a promising association between HRM and

outcomes, but we are not yet in a position to assert cause and effect (Guest,

1997).

● HR practices seem to matter; logic says it is so; survey findings confirm it. Direct

relationships between performance and attention to HR practices are often fuzzy,

however, and vary according to the population sampled and the measures used

(Ulrich, 1997).

● Measures that use profit or shareholder value are too remote from the practice of

people management to be useful (Purcell et al, 2003).

HRM and individual performance

The factors that affect the level of individual performance are: ability, motivation and

opportunity to participate (AMO).

Link between HRM and organizational performance

Three propositions on the link:

1. HR practices can make a direct impact on employee characteristics such as

engagement, commitment, motivation and skill.

2. If employees have these characteristics it is probable that organizational

performance in terms of productivity, quality and the delivery of high levels of

customer service will improve.

3. If such aspects of organizational performance improve, the financial results

achieved by the organization will improve.

How HR practices make an impact.

These are set out in the following table.

The HR practices that impact on performance

HR practice area How it impacts

Attract, develop and retain high quality people

Match people to the strategic and operational needs of the organization. Provide for the acquisition, development and retention of talented employees, who can deliver superior performance, productivity, flexibility, innovation, and high levels of personal customer service, and who 'fit' the culture and the strategic requirements of the organization.

Talent management Ensure that the talented and well-motivated people required by the organization to meet present and future needs are available.

Job and work design Provides individuals with stimulating and interesting work and gives them the autonomy and flexibility to perform these jobs well. Enhance job satisfaction and flexibility, which encourages greater performance and productivity.

Learning and development Enlarge the skill base and develops the levels of competence required in the workforce. Encourage discretionary learning that happens when individuals actively seek to acquire the knowledge and skills that promote the organization’s objectives. Develop a climate of learning – a growth medium in which self-managed learning as well as coaching, mentoring and training flourish.

Managing knowledge and intellectual capital

Focus on organizational as well as individual learning and provide learning opportunities and opportunities to share knowledge in a systematic way. Ensure that vital stocks of knowledge are retained and improve the flow of knowledge, information and learning within the organization.

Increasing engagement, commitment and motivation

Encourage productive discretionary effort by ensuring that people are positive and interested in their jobs, that they are proud to work for the organization and want to go on working there and that they take action to achieve organizational and individual goals.

Psychological contract Develop a positive and balanced psychological contract which provides for a continuing, harmonious relationship between the employee and the organization.

High-performance management Develop a performance culture which encourages high-performance in such areas as productivity, quality, levels of customer service, growth, profits, and, ultimately, the delivery of increased shareholder value. Empower employees to exhibit the discretionary behaviours most closely associated with higher business performance, such as risk taking, innovation, knowledge sharing and establishing trust between managers and their team members.

Reward management Develops motivation and job engagement by valuing people in accordance with their contribution.

Employee relations Develops involvement practises and an employee relations climate that encourages commitment and cooperation.

Working environment – core values, leadership, work–life balance, managing diversity, secure employment

Develop ‘the big idea’ (Purcell et al, 2003), ie a clear vision and a set of integrated values. Make the organization ‘a great place to work’.


AMO theory – The formula Performance = Ability + Motivation + Opportunity to

Participate provides the basis for developing HR systems that attend to employees’

interests, namely their skill requirements, motivations and the quality of their job.

Contingency theory – HRM practices are dependent on the organization’s environment

and circumstances. Definitions of HR aims, policies and strategies, lists of activities,

and analyses of the role of the HR department are valid only if they are related to the

situation of the organization.

Discretionary effort – The discretion or choice people at work can exercise about the

way they do their job and the amount of effort, care, innovation and productive

behaviour they display.

Expectancy theory – The theory that motivation will be high when people know what they

have to do to get a reward, expect that they will be able to get the reward and expect

that the reward will be worthwhile.

Organizational capability – The capacity of an organization to function effectively in order

to compete and deliver results.

Organizational effectiveness – The capacity of an organization to achieve its goals by

making effective use of the resources available to it.

Performance – What has been achieved and how it has been achieved.

Reversed causality – A situation where A might have caused B but it is just as likely that

B caused A. For example, the assumption that more HR practices leads to higher

economic return when it just as possible that it is successful firms that can afford

more extensive (and expensive) HRM practices.


1. What is the evidence that HRM improves the performance of firms?

2. What are the problems in establishing a link between HRM and firm performance?

3. What HR activities are likely to make the most impact on performance?

Bibliography

Appelbaum, E, Bailey, T, Berg, P and Kalleberg, A L (2000) Manufacturing Advantage:


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Minimills, Unpublished PhD dissertation, Cornell University

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American steel mills, Industrial and Labor Relations Review, 45 (3), pp 488–506

Arthur, J (1994) Effects of human resource systems on manufacturing performance and

turnover, Academy of Management Review, 37 (4), pp 670–87

Bailey, T, Berg, P and Sandy, C (2001) The effect of high performance work practices on

employee earnings in the steel, apparel and medical electronics and imaging

industries, Industrial and Labor Relations Review, 54 (2A), pp 525–43



Spring, 36 (1), pp 39–47

Boselie, P, Dietz, G and Boon, C (2005) Commonalities and contradictions in HRM and

performance research, Human Resource Management Journal, 15 (3), pp 67–94



pp 263–76

Guest, D E, Michie, J, Sheehan, M and Conway, N (2000) Employee Relations, HRM

and Business Performance: An analysis of the 1998 Workplace Employee Relations

Survey, Chartered Institute of Personnel and Development, London

Guest, D E, Michie, J, Sheehan, M, Conway, N and Metochi, M (2000) Effective People

Management: Initial findings of future of work survey, Chartered Institute of

Personnel and Development, London

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Huselid, M A (1995) The impact of human resource management practices on turnover,

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38 (3), pp 635–72

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pp 400–22

Paauwe, J (2004) HRM and Performance: Achieving long term viability, Oxford


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London



CIPD, London

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Society of British Aerospace Companies, London



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13 (8), pp 1299–310

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of Management Reviews, 1 (4), pp 397–413

8. INTERNATIONAL HRM

Teaching notes



The meaning of international HRM

Issues in international HRM

The impact of globalization

International environmental differences

International cultural differences

Convergence and divergence

Global HR policies

Managing expatriates


Convergence

Divergence

Globalization

Home-based pay

Host-based pay


Contents





A bibliography

Session outline

The meaning of international HRM

International human resource management is the process of managing people across

international boundaries by multinational companies. It involves the worldwide

management of people, not just the management of expatriates.

Issues in international HRM

● The impact of globalization.

● The influence of environmental and cultural differences.

● The extent to which HRM policy and practice should vary in different countries

(convergence or divergence).

● The approaches used to employ and manage expatriates.

The impact of globalization

Globalization requires organizations to move people, ideas, products and information

around the world to meet local needs (Ulrich, 1998).

International environmental differences

Environmental differences between countries have to be taken into account in managing

globally. These include markets, institutions, regulation, collective bargaining and

workforce characteristics.

International cultural differences

National culture differences can be critical and insensitivity to them can result in

business failure (as well as failure and career consequences for individual managers.

Convergence and divergence

Factors affecting the choice between convergence and divergence (Harris and Brewster,

1999) are the:

● extent to which there are well-defined local norms;

● degree to which an operating unit is embedded in the local environment;

● strength of the flow of resources between the parent and the subsidiary;

● orientation of the parent to control;

● nature of the industry;

● specific organizational competencies, including HRM, that are critical for achieving

competitive advantage in a global environment.

Global HR policies

Three processes constitute global HRM (Brewster et al, 2005):

1. talent management/employee branding;

2. international assignments management;

3. managing an international workforce.

Managing expatriates

Expatriates can be difficult to manage because of:

● Problems associated with adapting to and working in unfamiliar environments.

● Concerns about their development and careers.

● Difficulties encountered when they re-enter their parent company after an overseas

assignment.

● How they should be remunerated.

Special policies for them are required, covering:

● recruitment and selection;

● and review;

● training;

● career management;

● re-entry;

● pay and allowances (home-based or host-based pay).


Convergence – In international HRM, the adoption by a global organization of similar HR

practices across the world.

Divergence – In international HRM, the approach by a global organization when it adapts

its HR practices across the world to suit local conditions.

Globalization – International economic integration in worldwide markets.

Home-based pay – The provision of remuneration (pay, benefits and allowances) to

expatriates that is the same as in their home country.

Host-based pay – The provision to expatriates of salaries and benefits such as company

cars and holidays that are in line with those given to nationals of the host country in

similar jobs.


1. What are the main issues in international HRM?

2. What are the factors that affect the degree of convergence or divergence?

3. What are the main global HR policies?

4. What are the main considerations in managing expatriates?

Bibliography

Adler, N J (2002) International Dimensions of Organizational Behaviour, South-Western,

Cincinnati, OH

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Bartlett, C A and Ghoshal, S (2000) Transnational Management Text: Cases and

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Bradley, P, Hendry, C and Perkins, P (1999) Global or multi-local? The significance of

international values in reward strategy, in (ed) C Brewster and H Harris, International

HRM: Contemporary issues in Europe, Routledge, London

Brewster, C (2004) European perspectives of human resource management, Human

Resource Management Review, 14 (4), pp 365–82

Brewster, C, Harris, H and Sparrow, P (2002) Globalizing HR, CIPD, London

Brewster, C, Sparrow, P and Harris, H (2005) Towards a new model of globalizing HRM,

International Journal of Human Resource Management, 16 (6), pp 949–70

Gerhart, B and Fang, M (2005) National culture and human resource management:

assumptions and evidence, International Journal of Human Resource Management,

16 (6), pp 971–86

Harris, H and Brewster, C (1999) International human resource management: the

European contribution, in (ed) C Brewster and H Harris, International HRM:

Contemporary issues in Europe, Routledge, London

Hofstede, G (1980) Cultural Consequences: International differences in work-related

values, Sage, Beverley Hills, CA

Hofstede, G (1991) Culture and Organization: Software of the mind, Sage, London

Leblanc, B (2001) European competitiveness – some guidelines for companies, in (ed)

M H Albrecht, International HRM, Blackwell, Oxford

Perkins, S J (1997) Internationalization: The people dimension, Kogan Page, London

Perkins, S J and Shortland, S M (2006) Strategic International Human Resource

Management, Kogan Page, London

Sparrow, P R (1999) The IPD Guide on International Recruitment, Selection and

Assessment, IPD, London

Stiles, P (2007) A world of difference?, People Management, 15 November, pp 36–41

Tarique, I and Caligiri, P (1995) Training and development of international staff, in (ed)

A-W Herzorg and J V Ruyssevelde, International Human Resource Management,

Sage, London



. CORPORATE SOCIAL RESPONSIBILITY

Teaching notes



The meaning of corporate social responsibility (CSR)

CSR strategy

CSR activities

The rationale for CSR

Developing a CSR strategy


Corporate social responsibility (CSR)

Stakeholder theory

Strategic CSR


Contents





A bibliography

Session outline

The meaning of corporate social responsibility (CSR)

● CSR refers to the actions taken by businesses that further some social good

beyond the interests of the firm and that which is required by law.

● It is concerned with the impact of business behaviour on society and can be

regarded as a process of integrating business and society.

CSR strategy

CSR strategy determines how socially responsible behaviour is exercised both outside

and within the firm.

CSR activities

CSR activities include:

● Incorporating social characteristics or features into products and manufacturing

processes.

● Adopting progressive human resource management practices.

● Achieving higher levels of environmental performance through recycling and

pollution abatement.

● Advancing the goals of community organizations.

The rationale for CSR

There are two arguments for CSR (Hillman and Keim, 2001):

1. There is a moral imperative for businesses to ‘do the right thing’ without regard to

how such decisions affect firm performance (the social issues argument).

2. Firms can achieve competitive advantage by tying CSR activities to primary

stakeholders (the stakeholders argument).

Developing a CSR strategy

● Identify the areas in which CSR activities might take place by reference to their

relevance in the business context of the organization and an evaluation of their

significance to stakeholders.

● Prioritize as necessary on the basis of an assessment of the relevance and

significance of CSR to the organization and its stakeholders and the practicalities

of introducing the activity or practice.

● Draw up the strategy and make the case for it to top management and the

stakeholders in order to obtain their approval.

● Communicate information on the strategy comprehensively and regularly.

● Provide training to employees on the skills they need in implementing the CSR

strategy.


Corporate social responsibility (CSR) – Exercised by organizations when they conduct

their business in an ethical way, taking account of the social, environmental and

economic impact of how they operate, and going beyond compliance.

Stakeholder theory – Organizations must satisfy a variety of constituents (eg workers,

customers, suppliers, local community organizations) who can influence

organizational outcomes.

Strategic CSR – This involves an initial decision on the extent to which the firm should

be involved in social issues and then creating a corporate social agenda – deciding

what social issues to focus on and to what extent.


1. What is corporate social responsibility (CSR)?

2. What are the key CSR activities?

3. What is the rationale for CSR?

Bibliography

Baron, D (2001) Private policies, corporate policies and integrated strategy, Journal of

Economics and Management Strategy, 10 (7), pp 7–45

Business in the Community (2007) Benchmarking Responsible Business Practice,

bits.org.uk

Chartered Institute of Personnel and Development (2007) Corporate Social

Responsibility, CIPD Fact Sheet, www.cipd.co.uk

CSR Academy (2006) The CSR Competency Framework, The Stationery Office, Norwich

Egan, J (2006) Doing the decent thing: CSR and ethics in employment, IRS Employment

Review 858, 3 November, pp 9–16

Freeman, R E (1984) Strategic Management: A stakeholder perspective, Prentice Hall,


Friedman, M (1970) The social responsibility of business is to increase its profits, New

York Times Magazine, September, p 13

Hillman, A and Keim, G (2001) Shareholder value, stakeholder management and social

issues: what’s the bottom line?, Strategic Management Journal, 22 (2), pp 125–39

Husted, B W and Salazar, J (2006) Taking Friedman seriously: maximizing profits and

social performance, Journal of Management Studies, 43 (1), pp 75–91

Levitt, T (1956) The dangers of social responsibility, Harvard Business Review,

September–October, pp 41–50

McWilliams, A, Siegal, D S and Wright, P M (2006) Corporate social responsibility: strategic

implications, Journal of Management Studies, 43 (1), pp 1–12

Moran, P and Ghoshal, S (1996) Value creation by firms, Best Paper Proceedings,

Academy of Management Annual Meeting, Cincinnati, OH

Porter, M E and Kramer, M R (2006) Strategy and society: the link between competitive

advantage and corporate social responsibility, Harvard Business Review, December,

pp 78–92

Redington, I (2005) Making CSR Happen: The contribution of people management,

CIPD, London

10. HUMAN RESOURCE MANAGEMENT RESEARCH METHODS

Teaching notes



The nature of research

Research philosophy

Planning and conducting research programmes

Literature reviews

Approaches to research

Methods of collecting data

The basics of statistical analysis


Central tendency Multivariate analysis

Chi-squared test Null hypothesis

Correlation Paradigm

Critical evaluation Phenomenology

Deduction Positivism

Dispersion Primary source

Evidence-based theory Proposition

Experimental design Qualitative research

Falsification Quantitative research

Frequency Reductionism

Grounded theory Regression

Hypothesis Research question

Induction Secondary source

Likert scale Significance

Linear regression Theory


Contents





A bibliography

Session outline

The nature of research

Research is concerned with establishing what is and from this predicting what will be. It

is about the conception and testing of ideas.

Research philosophy

Research design can be based on a philosophy of positivism or phenomenology:

● Positivism is the belief that researchers should focus on facts (observable reality),

look for causality and fundamental laws.

● Phenomenology is concerned more with the meaning of phenomena than the facts

associated with them.

Planning and conducting research programmes

1. Define research area.

2. Formulate initial research question.

3. Review literature.

4. Assess existing theoretical frameworks.

5. Formalize the research question.

6. Formulate hypotheses.

7. Establish the methodology.

8. Draw up research programme.

9. Prepare and submit proposal.

10. Collect and analyse evidence.

11. Develop conclusions.

Literature reviews

Literature reviews or searches are essential preliminary steps in any research project.

They often focus on articles in academic journals, though textbooks may also be

consulted, especially if they are based on research.

Approaches to research

Research can:

● Be quantitative or qualitative.

● Use inductive or deductive methods.

● Involve the testing of hypotheses.

● Adopt a grounded theory approach, ie an inductive method of developing the

general features of a theory by grounding the account in empirical observations or

evidence.

● Make use of paradigms – common perspectives that underpin the work of theorists

so that they use the same approach to conducting research.

● Make informed judgements about the value of ideas and arguments through critical

evaluation.

● Use critical thinking, which is the process of analysing and evaluating the quality of

ideas, theories and concepts to establish the degree to which they are valid and

supported by the evidence.

Methods of collecting data

● Interviews obtain factual data and insights into attitudes and feelings and can be

structured, unstructured or semi-structured.

● Questionnaires collect data systematically by obtaining answers on the key issues

and opinions that need to be explored in a research project.

● Surveys obtain information from a defined population of people.

● Case studies collect empirical evidence in a real-life context.

The basics of statistical analysis

The statistical analysis of quantified information is used to:

● Identify and convey salient facts about the population under consideration.

● Test hypotheses.

● Make predictions on what is likely to happen.

● Build a model that describes how a situation probably works.

● Answer questions about the strength of evidence and how much certainty can be

attached to predictions and models.


Central tendency – The middle or centre of a set of data.

Chi-squared test – The use of a statistical formula to assess the degree of agreement

between the data actually obtained and that expected under a particular hypothesis.

Correlation – The relationship between two variables. If they are highly correlated they

are strongly connected to one another, and vice versa. In statistics, correlation is

measured by the coefficient of correlation, which ranges from –1 to +1, which indicate

totally negative and totally positive correlations respectively. A correlation of zero

means that there is no relationship between the variables.

Critical evaluation – The process of making informed judgements about the value of

ideas and arguments. It makes use of critical thinking.

Deduction – The process of using logical reasoning to reach a conclusion that

necessarily follows from general or universal premises.

Dispersion – The extent to which the items in a set are spread over a range of data.

Evidence-based theory – A theory that is supported by evidence derived from research.

Experimental design – Setting up an experimental group and a control group and then

placing subjects at random in one or other group. The conditions under which the

experimental group functions are then manipulated and the outcomes compared with

the control group, whose conditions remain unchanged.

Falsification – An approach to testing hypotheses advocated by Karl Popper. He

proposed that it was insufficient simply to assemble confirmatory evidence; what must

also be obtained is evidence that refutes the hypothesis.

Frequency – The number of times a value occurs in a set of data.

Grounded theory – An inductive method of developing the general features of a theory

by grounding the account in empirical observations or evidence. The researcher uses

empirical evidence directly to establish the concepts and relationships that will be

contained in the theory.

Hypothesis – A supposition (a tentative explanation of something) that is taken to be true

for the purpose of argument or a research study.

Induction (scientific method) – The process of reaching generalized conclusions from the

observation of particular instances.

Likert scale – A scale that records the views of respondents to a questionnaire or survey

on the extent to which they agree or disagree with a statement.

Linear regression – The mathematical relationship between two variables expressed on

a graph as a straight line.

Multivariate analysis (Manova) – Variance analysis where there is more than one

dependent variable and where the dependent variables cannot be combined.

Null hypothesis – A method used by researchers of testing a hypothesis in which it is

assumed that there is no relationship between two or more variables.

Paradigm – Broadly, a way of looking at things. The term is often used loosely, but

properly it means a philosophical and theoretical framework of a scientific school or

discipline within which theories, laws and generalizations, and the experiments

performed in support of them, are formulated. In other words, it is a common

perspective that underpins the work of theorists so that they use the same approach

to conducting research.

Phenomenology – An approach to research that is concerned more with the meaning of

phenomena than the facts associated with them.

Positivism – The belief that researchers should focus on facts (observable reality).

Primary source – Information obtained directly by a researcher from the originator of the

evidence.

Proposition – A proposal put forward as an explanation of an event, a possible situation

or a form of behaviour.

Qualitative research – Research based on evidence that is not easily reduced to

numbers. It makes use of interviews, case studies and observation.

Quantitative research – Research based on the collection of quantitative data from

interviews, questionnaires, surveys, case studies, tests, observation and experiment.

Reductionism – Reducing phenomena to their simplest elements.

Regression – The relationship between two variables indicating how changes in levels of

X relate to changes in levels of Y.

Research question – A statement that answers the questions: ‘What is this research

project intended to address and what is its potential contribution to increasing

knowledge?’

Secondary source – Information obtained by a researcher that is already available in the

literature or on the internet.

Significance – The degree to which an event could have occurred by chance.

Theory – An established explanatory principle of why something happens and how it

happens based on a hypothesis or hypotheses that have been tested through

research. A theory can be used to make predictions of future developments.


1. How is qualitative and/or quantitative research used in a research project?

2. How are surveys used in a research project?

3. How are case studies used in research?

4. What are the advantages and disadvantages of interviews as a means of obtaining

research data?

Bibliography

Anderson, V (2004) Research Methods in HRM, CIPD, London

Bryman, A and Bell, E (2007) Business Research Methods, 2nd edn, Oxford University

Press, Oxford

Easterby-Smith, M, Thorpe, R and Lowe, A (1991) Management Research: An

introduction, Sage, London

11. COMPETENCY-BASED HRM

Teaching notes



The different types of competencies

The contents of competency frameworks

Reasons for using competencies

Coverage of competencies

Applications of competency-based HRM

How to develop a competency framework

Keys to success in using competencies

Competencies and emotional intelligence


Behavioural competencies

Behavioural indicator

Competency

Competency-based HRM

Competency framework

Criterion referencing

Emotional intelligence

Role-specific competencies

Technical competencies


Contents





A bibliography

Session outline

The different types of competencies

● Behavioural competencies.

● Technical competencies.

● NVQs and SNVQs.

The contents of competency frameworks (the most popular headings)

● Team orientation.

● Communication.

● People management.

● Customer focus.

● Results orientation.

● Problem solving.

● Planning and organizing.

● Technical skills.

● Leadership.

Coverage of competencies (Rankin, 2002)

● Twenty-two per cent covered the whole workforce.

● Forty-eight per cent confined competencies to specific work groups, functions or

departments.

● Twenty per cent have a core competency framework that covers all staff in respect

of behavioural competencies, alongside sets of technical competencies in

functions departments.

Uses of competencies (Competency and Emotional Intelligence 2006/07)

● Learning and development – 82 per cent.

● Performance management – 76 per cent.

● Selection – 85 per cent.

● Recruitment – 55 per cent.

● Reward – 30 per cent.

How to develop a competency framework

● Decide on the purpose of the framework and the HR processes for which it will be

used.

● Make out a business case for its development, setting out the benefits to the

organization.

● Prepare a project plan that includes an assessment of the resources required and

the costs. Involve line managers and employees in the design of the framework.

● Communicate the objectives of the exercise to staff.

● Draw up a list of the core competencies of the business.

● Define the competencies for inclusion in a competency framework.

● Test and finalize and communicate framework.

Keys to success in using competencies

● Frameworks should not be over-complex.

● There should not be too many headings in a framework – seven or eight will often

suffice.

● The language used should be clear and jargon-free.

● Competencies must be selected and defined in ways that ensure that they can be

assessed by managers – the use of ‘behavioural indicators’ is helpful.

● Frameworks should be regularly updated.

Competencies and emotional intelligence

The emotional intelligence elements of self-awareness, emotional management,

empathy, relationships, communication and personal style correspond to competencies

such as sensitivity, flexibility, adaptability, resilience, impact, listening, leadership,

persuasiveness, motivating others, energy, decisiveness and achievement motivation.


Behavioural competencies – The types of behaviour required for successful performance

of a role.

Behavioural indicator – A definition of how the effective use of a behavioural competency

can be demonstrated in a person’s day-to-day work.

Competency – An underlying characteristic of a person that results in effective or

superior performance.

Competency-based HRM – The use of competencies and competency frameworks in

HR activities such as recruitment and selection, performance management, learning

and development, and reward.

Competency framework – A set of definitions of the behavioural competencies used in

the whole or part of an organization.

Criterion referencing – Comparing one measure or situation with a criterion in the form of

another measure or outcome to determine the relationship between them; for

example: in functional analysis, measuring the outcome of learning and development

programmes and comparing test scores with job success and training outcomes.

Emotional intelligence – A combination of skills and abilities such as self-awareness,

self-control, empathy and sensitivity to the feelings of others.

Role-specific competencies – Competencies for generic or individual roles.

Technical competencies – What people have to know and be able to do (knowledge and

skills) to carry out their roles effectively.


1. What are the main types of competencies?

2. What is a competency framework?

3. What are the uses to which competencies are put in HRM?

Bibliography

Boyatzis, R (1982) The Competent Manager, Wiley, New York

Competency and Emotional Intelligence (2006/7) Raising Performance Through

Competencies: The annual benchmarking survey, Competency and Emotional

Intelligence, London

Dulewicz, V and Higgs, M (1999) The seven dimensions of emotional intelligence,

People Management, 28 October, p 53

Goleman, D (1995) Emotional Intelligence, Bantam, New York

Goleman, D (1998) Working with Emotional Intelligence, Bloomsbury, London

Mansfield, B (1999) What is ‘competence’ all about?, Competency, 6 (3), pp 24–28

Mansfield, B and Mitchell, L (1986) Towards a Competent Workforce, Gower, Aldershot

McClelland, D C (1973) Testing for competence rather than intelligence, American

Psychologist, 28 (1), pp 1–14

Miller, L, Rankin, N and Neathey, F (2001) Competency Frameworks in UK

Organizations, CIPD, London

Mirabile, R J (1998) Leadership competency development: competitive advantage for

the future, Management Development Forum, 1 (2), pp 1–15

Rankin, N (2002) Raising performance through people: the ninth competency survey,

Competency and Emotional Intelligence, January, pp 2–21

Rankin, N (2004) Benchmarking survey, Competency and Emotional Intelligence, 12 (1),

pp 4–6

Woodruffe, C (1990) Assessment Centres, IPM, London

Woodruffe, C (1991) Competent by any other name, Personnel Management,

September, pp 30–33

12. KNOWLEDGE MANAGEMENT

Teaching notes



The purpose and significance of knowledge management

Knowledge management strategies

Knowledge management systems

Knowledge management issues

The contribution HR can make to knowledge management


Communities of practice

Data

Explicit knowledge

Information

Intellectual capital

Knowledge


Learning organization

Resource-based view

Tacit knowledge


Contents



A concept map



A bibliography

Session outline

The purpose and significance of knowledge management

Knowledge management is about getting knowledge from those who have it to those

who need it in order to improve organizational effectiveness.

It is as much if not more concerned with people and how they acquire, exchange and

disseminate knowledge as it is about information technology.

It is significant because, as Ulrich (1998) points out: ‘Knowledge has become a direct

competitive advantage for companies selling ideas and relationships.’ It is linked to the

concepts of:

● The resource-based-view – the concept that it is the range of resources in an

organization, including its human resources, that produces its unique character

and creates competitive advantage.

● Intellectual capital – the stocks and flows of knowledge available to an

organization, ie the intangible resources associated with people.

● The learning organization – defined by Garvin et al (2008) as a place where

employees excel at creating, acquiring and transferring knowledge.

Knowledge management strategies

● The codification strategy – knowledge is carefully codified and stored in databases

where it can be accessed and used easily by anyone in the organization.

Knowledge is explicit and is codified using a ‘people-to-document’ approach.

● The personalization strategy – knowledge is closely tied to the person who has

developed it and is shared mainly through direct person-to-person contacts. This is

an approach that involves ensuring that tacit knowledge is passed on.

Knowledge management systems

● Operating an intranet.

● Creating ‘data warehouses’.

● Using decision support systems.

● Using ‘groupware’, ie information communication technologies such as e-mail or

Locus Notes discussion bases.

● Creating networks or communities of practice of knowledge workers.

Knowledge management issues

● The pace of change.

● Relating knowledge management strategy to business strategy.

● IT is best used in a supportive role.

● Attention must be paid to the processes (social, technological and organizational)

through which knowledge combines and interacts in different ways.

● The significance of knowledge workers must be appreciated.

The contribution HR can make to knowledge management

Knowledge management is an important area for HR practitioners, who are in a strong

position to exert influence in this aspect of people management.

Scarborough et al (1999) believe that they should have ‘the ability to analyse the

different types of knowledge deployed by the organization… (and) to relate such

knowledge to issues of organizational design, career patterns and employment security’.

HR practitioners should:

● Help to develop an open culture that emphasizes the importance of sharing

knowledge.

● Promote a climate of commitment and trust.

● Advise on the design and development of organizations that facilitate knowledge

sharing. Ensure that valued employees who can contribute to knowledge creation

and sharing are attracted and retained.

● Advise on methods of motivating people to share.

● Help in the development of performance management processes that focus on the

development and sharing of knowledge.

● Develop processes of organizational and individual learning that will generate and

assist in disseminating knowledge.

● Set up and organize workshops, conferences and communities of practice and

symposia that enable knowledge to be shared on a person-to-person basis.

● In conjunction with IT, develop systems for capturing and, as far as possible,

codifying explicit and tacit knowledge.

● Generally, promote the cause of knowledge management with senior managers.

Knowledge Management– Concept Map

dealt with by

The concepts of:

The resource-based view

Intellectual capital

The learning organization

Intranet

Data warehouses

Decision support systems

Groupware

Communities of practice

Mapping sources of internal expertise

linked to

handled by


consists of

contributes to

Knowledge

Data Information

Explicit knowledge

Tacit knowledge

Stocks and flows of

knowledge


Communities of practice – Groups of people bound together by shared expertise who

meet together to share knowledge.

Data – The basic facts or building blocks for information and knowledge.

Explicit knowledge – Knowledge that is recorded and available and is held in databases,

in corporate intranets and intellectual property portfolios.

Information – Data that have been processed in a way that is meaningful to individuals.

Intellectual capital – The stocks and flows of knowledge available to an organization, ie

the intangible resources associated with people.

Knowledge – What people understand about things, concepts, ideas, theories,

procedures, practices and ‘the way we do things around here’. It can be described as

’know-how’ or, when it is specific, ‘expertise’.

Knowledge management – Storing and sharing the wisdom, understanding and

expertise accumulated in an organization about its processes, techniques and

operations.

Learning organization – A place where employees excel at creating, acquiring and

transferring knowledge (Garvin et al, 2008).

Resource-based view – The concept that it is the range of resources in an organization,


competitive advantage. HRM delivers added value and helps to achieve sustainable

competitive advantage through the strategic development of the organization’s rare,

hard to imitate and hard to substitute human resources.

Tacit knowledge – Knowledge that exists in people’s minds. It is difficult to articulate in

writing and is acquired through personal experience.


1. Why is the concept of knowledge management important to HR specialists?

2. How is knowledge management linked to the concepts of the resource-based view,

intellectual capital and the learning organization?

3. ‘Understanding knowledge creation as a process of making tacit knowledge explicit…

has direct implications for how a company designs its organization and defines

managerial roles and responsibilities within it. This is the “how” of the knowledge

creating company, the structures and practices that translate company’s vision into

innovative technologies and products’ (Nonaka, 1991, The knowledge creating

company, Harvard Business Review, Nov–Dec, pp 96–104). In this seminal article,

Nonaka demonstrated the significance of knowledge management. He contends, as

this extract indicates, that it must be a fundamental consideration in the design and

operation of organizations. To what extent do you agree with this and why?

4. What is the difference between explicit and tacit knowledge and why is this

significant?

5. You have been asked by your chief executive to prepare a business case for a more

systematic approach to knowledge management in your firm, which can be described

as ‘knowledge intensive’, ie as defined by Swart et al (People and Performance in

Knowledge-intensive Firms, CIPD, London, 2003), a firm that has ‘the capacity to

solve complex problems through creative and innovative solutions’. At present there

are no policies or practices that have been deliberately designed systematically to

enhance the knowledge management capabilities of the company. Prepare the case

that your chief executive would expect to be made on the proverbial one side of a

sheet of paper.

6. ‘Organizational capital (knowledge) stays behind when the employee leaves; human

capital is the intellectual asset that goes home every night with the employee’ (Fitz-

enj, J, 2000, The ROI of Human Capital, American Management Association, New

York). What are the implications of this statement for knowledge management

policies within a firm?

7. ‘Knowledge is at the heart of the new economy… In this knowledge-based economy,

knowledge is not just another resource alongside the other traditional factors but the

only meaningful resource’ (Drucker, P, 1993, Post-Capitalist Society, Butterworth-

Heinemann, Oxford). To what extent do you agree with this claim by Drucker and

why?

8. What contribution can HR make to the development and implementation of

knowledge management policies?

Bibliography

Argyris, C (1991) Teaching smart people how to learn, Harvard Business Review, May–

June, pp 54–62

Blackler, F (1995) Knowledge, knowledge work and experience, Organization Studies,

16 (6), pp 16–36

Blake, P (1988) The knowledge management explosion, Information Today, 15 (1), pp

12–13

Davenport, T O (1999) Human Capital, Jossey-Bass, San Francisco, CA

Drucker, P (1993) Post-Capitalist Society, Butterworth-Heinemann, Oxford

Fitzenji, J (2000) The ROI of Human Capital, American Management Association, New

York

Hansen, M T, Nohria, N and Tierney, T (1999) What’s your strategy for managing

knowledge?, Harvard Business Review, March–April, pp 106–16

Mecklenberg, S, Deering, A and Sharp, D (1999) Knowledge management: a secret

engine of corporate growth, Executive Agenda, 2, pp 5–15

Nahpiet, J and Ghoshal, S (1998) Social capital, intellectual capital and the

organizational advantage, Academy of Management Review, 23 (2), pp 242–66

Nonaka, I (1991) The knowledge creating company, Harvard Business Review,

November–December, pp 96–104

Nonaka, I and Takeuchy, H (1995) The Knowledge Creating Company, Oxford

University Press, New York

Rugles, R (1998) The state of the notion, Californian Management Review, 40 (3), pp

80–89

Ryle, G (1949) The Concept of Mind, Oxford University Press, Oxford

Scarborough, H and Carter, C (2000) Investigating Knowledge Management, CIPD,

London

Scarborough, H, Swan, J and Preston, J (1999) Knowledge Management: A literature

review, Institute of Personnel and Development, London

Swart, J, Kinnie, N and Purcell, J (2003) People and Performance in Knowledge-

intensive Firms, CIPD, London

Tan, J (2000) Knowledge management – just more buzzwords?, British Journal of

Administrative Management, March/April, pp 10–11

Trussler, S (1998) The rules of the game, Journal of Business Strategy, 19 (1), pp 16–19

Wenger, E and Snyder, W M (2000) Communities of practice: the organizational frontier,

Harvard Business Review, January–February, pp 33–41



13. HIGH-PERFORMANCE WORK SYSTEMS

Teaching notes



The characteristics of a high-performance culture

The characteristics of a high-performance work system (HPWS)

The components of an HPWS

Impact of an HPWS

Developing an HPWS


High-commitment management

High-commitment model

High-involvement management

High-performance culture

High-performance management

High-performance work systems (HPWSs)

Performance management model


Contents





A bibliography

Session outline

The key characteristics of a high-performance culture

● People know what's expected of them – they understand their goals and

accountabilities.

● People feel that their job is worth doing, and there is a strong fit between the job

and their capabilities.

● Management defines what it requires in the shape of performance improvements,

sets goals for success and monitors performance to ensure that the goals are

achieved.

● There is a focus on promoting positive attitudes that result in an engaged,

committed and motivated workforce.

● Performance management processes are aligned to business goals to ensure that

people are engaged in achieving agreed objectives and standards.

● Capacities of people are developed through learning at all levels to support

performance improvement.

The characteristics of a high-performance work system (HPWS)

● Links the firm’s selection and promotion decisions to validated competency

models.

● A basis for developing strategies that provide timely and effective support for the

skills demanded to implant the firm’s strategies.

● Enacts compensation and performance management policies that attract, retain

and motivate high-performance employees.

The components of an HPWS

● There is no ‘magic list’ of best practices for an HPWS, although they work best if

bundled together.

● The lists that have been produced include sophisticated HR practices in such

areas as recruitment, learning and development, performance management and

reward processes. Typical lists are shown in the following table.

Components of an HPWS

Table 12.1 Lists of HR practices in high-performance work systems

Impact of an HPWS

A number of studies demonstrate that the impact of high-performance work systems is

positive. Examples are:

● US Department of Labor (1993): in a survey of 700 organizations, the US

Department of Labor found that firms that used innovative human resource

practices had an HPWS.

● King (1995): a survey of Fortune 1000 companies in the United States revealed

that 60 per cent of those using at least one practice increasing the responsibility of

employees in the business process reported that the result was an increase in

productivity, while 70 per cent reported an improvement in quality.

● Varma et al (1999): a survey of 39 organizations was conducted to examine the

antecedents, design and effectiveness of high-performance initiatives. Results

indicated that HPWSs had a significant impact on financial performance and

created a positive culture change in the organization (eg cooperation and

innovation).

● Appelbaum et al (2000): a survey of 4,400 employees and 44 manufacturing

facilities found that in the steel industry HPWSs produced strong positive effects

Careful and extensive systems for recruitment, selection and training.

Formal systems for sharing information with employees.

Clear job design.

High-level participation processes.

Monitoring of attitudes.

Performance appraisals

Properly functioning grievance procedures.

Promotion and compensation schemes that provide for the recognition and reward of high-performing employees.

Work is organized to permit front-line workers to participate in decisions that alter organizational routines.

Workers require more skills to do their jobs successfully, and many of these skills are firm-specific.

Workers experience greater autonomy over their job tasks and methods of work.

Incentive pay motivates workers to extend extra effort on developing skills.

Employment security provides front-line workers with a long-term stake in the company and a reason to invest in its future.

High-involvement work practices – eg self-directed teams, quality circles, and sharing/access to company information.

Human resource practices – eg sophisticated recruitment processes, performance appraisals, work redesign and mentoring.

Reward and commitment practices – eg various financial rewards, family friendly policies, job rotation and flexi-hours.

Information sharing.

Sophisticated recruitment.

Formal induction programme.

Five or more days of off-the-job training in the last year.

Semi or totally autonomous work teams; continuous improvement teams; problem-solving groups.

Interpersonal skill development.

Performance feedback.

Involvement – works council, suggestion scheme, opinion survey.

Team-based rewards, employee share ownership scheme, profit-sharing scheme.

US Department of Labor (1993)

Appelbaum et al (2000)

Sung and Ashton (2005) Thompson and Heron (2005)

on performance, in the apparel industry the introduction of group piecework rates

linked to quality as well as quantity rather than individual piecework, plus multi-

skilling, dramatically speeded up throughput times, and in the medical electronics

and imaging industry those using an HPWS ranked highly on eight diverse

indicators of financial performance and production efficiency and quality.

● Sung and Ashton (2005): a survey of 294 UK companies provided evidence that

the level of HPWS adoption as measured by the number of practices in use is

linked to organizational performance. Those adopting more of the practices as

‘bundles’ had greater employee involvement and were more effective in delivering

adequate training provision, managing staff and providing career opportunities.

Developing an HPWS

The approach to developing an HPWS is based on an understanding of what the goals

of the business are and how people can contribute to their achievement. This leads to an

assessment of what type of performance culture is needed. The steps required are:

1. Analyse the business strategy.

2. Define the desired performance culture of the business and the objectives of the

exercise.

3. Analyse the existing arrangements.

4. Identify the gaps between what is and what should be.

5. Draw up a list of practices that need to be introduced or improved.

6. Identify the practices that can be linked together in ‘bundles’ to complement and

support one another.

7. Assess practicality.

8. Prioritize.

9. Define project objectives.

10. Get buy-in.

11. Plan the implementation.

12. Implement.


High-commitment management – A form of management aimed at eliciting a

commitment so that behaviour is primarily self-regulated rather than controlled by

sanctions and pressures external to the individual, and relations within the

organization are based on high levels of trust (Wood, 1996).

High-commitment model (Guest, 2007) – A move from external control through

management systems, technology and supervision to self-control by workers or

teams of workers who, because of their commitment to the organization, would

exercise responsible autonomy and control in the interests of the organization. The

emphasis is on intrinsic control and intrinsic rewards.

High-involvement management – A specific set of human resource practices that focus

on employee decision making, power, access to information, training and incentives.

High-performance culture – One in which the values, norms and HR practices of an

organization combine to create a climate in which the achievement of high levels of

performance is a way of life.

High-performance management – An approach that aims to make an impact on the

performance of the organization through its people in such areas as productivity,

quality, levels of customer service, growth and profits.

High-performance work systems (HPWS) – Bundles of practices that facilitate employee

involvement, skill enhancement and motivation. They can constitute: ‘An internally

consistent and coherent HRM system that is focused on solving operational problems

and implementing the firm’s competitive strategy’ (Becker and Huselid, 1998).

Performance management model (Guest, 2007) – An approach that focuses on the

adoption of practices designed to maximize high performance by ensuring high levels

of competence and motivation.


1. What is a high-performance culture?

2. What is the distinction between high-commitment, high-involvement and high-

performance work systems?

3. What are the characteristics of a high-performance work system?

4. What are the components of a high-performance work system?

Bibliography

Appelbaum, E, Bailey, T Berg, P and Kalleberg, A L (2000) Manufacturing Advantage:


Armitage, A and Keble-Allen, D (2007) Why people management basics form the

foundation of high-performance working, People Management, 18 October, p 48

Ashton, D and Sung, J (2002) Supporting Workplace Learning for High performance, ILO,

Geneva



Personnel and Human Resource Management, 16, pp 53–101, JAI Press, Stamford,

CN



Spring, 36 (1), pp 39–47

Becker, B E, Huselid, M A and Ulrich, D (2001) The HR Score Card: Linking people,

strategy, and performance, Harvard Business School Press, Boston, MA

Ericksen, J (2007) High performance work systems: dynamic workforce alignment and

firm performance, Academy of Management Proceedings, pp 1–6

Gephart, M A (1995) The road to high performance: steps to create a high-performance

workplace, Training and Development, June, p 29

Godard, J (2004) A critical assessment of the high-performance paradigm, British

Journal of Industrial Relations, 42 (2), pp 349–78

Guest, D (2007) HRM: towards a new psychological contract, in (ed) P Boxall, J Purcell


Press, Oxford

King, J (1995) High performance work systems and firm performance, Monthly Labour

Review, May, pp 29–36

Lawler, E E (1986) High Involvement Management, Jossey-Bass, San Francisco, CA

Lawler, E E, Mohrman, S and Ledford, G (1998) Strategies for High Performance

Organizations: Employee involvement, TQM, and re-engineering programs in Fortune

1000, Jossey-Bass, San Francisco, CA

Nadler, D A (1989) Organizational architecture for the corporation of the future, Benchmark,

Fall, 12–13

Nadler, D A and Gerstein, M S (1992) Designing high-performance work systems:

organizing people, technology, work and information, Organizational Architecture,

Summer, pp 195–208

Ramsay, H, Scholarios, D and Harley, B (2000) Employees and high-performance work

systems: testing inside the black box, British Journal of Industrial Relations, 38 (4), pp

501–31

Stevens, J (2005) High Performance Wales: Real experiences, real success, Wales

Management Council, Cardiff

Sung, J and Ashton, D (2005) High Performance Work Practices: Linking strategy and skills

to performance outcomes, DTI in association with CIPD, available at

http://www.cipd.co.uk/subjects/corpstrtgy/

Thompson, M and Heron, P (2005) Management capability and high performance work

organization, International Journal of Human Resource Management, 16 (6), pp

1029–48


Performance, US Government Printing Office, Washington DC

Varma, A, Beatty, R W, Schneier, C E and Ulrich, D O (1999) High performance work

systems: exciting discovery or passing fad?, Human Resource Planning, 22 (1), pp

26–37



Walton, R E (1985) Towards a strategy of eliciting employee commitment based on

principles of mutuality, in (ed) R E Walton and P R Lawrence, HRM Trends and

Challenges, Harvard Business School Press, Boston, MA

Wood, S (1996) High commitment management and organization in the UK, International

Journal of Human Resource Management, 7 (1), pp 41–58



14. WORK

Teaching notes


This session will cover:

The nature of work

The essential components of work

Feelings about work

Organizational factors affecting work

The future of work


Financial flexibility

Flexible firm

Functional flexibility

Lean organization

Numerical flexibility

Portfolio career

Work


Contents





A bibliography

Session outline

The nature of work

● Most people work to earn a living.

● They also work because of the other satisfactions it brings, such as doing

something worthwhile, a sense of achievement, prestige, recognition, the

opportunity to use and develop abilities, the scope to exercise power, and

companionship.

The essential components of work

● Work produces or achieves something (it is not an end in itself).

● Work involves a degree of obligation or necessity (it is a task set either by others

or ourselves).

● Work involves effort and persistence (it is not wholly pleasurable, although there

may be pleasurable elements in it).

Feelings about work

As established by research conducted by Guest et al (1996) and Guest and Conway

(1997):

● Work remains a central interest in the lives of most people.

● If they won the lottery, 39 per cent would quit work while most of the others would

continue working.

● Asked to select the three most important things they look for in a job, 70 per cent

of respondents cited pay, 62 per cent wanted interesting and varied work and only

22 per cent were looking for job security.

● 35 per cent claimed that they were putting in so much effort that they could not

work any harder and a further 34 per cent claimed they were working very hard.

Organizational factors affecting work

The nature of work alters as organizations change in response to new demands and

environmental pressures. The notions of the flexible firm and the ‘lean’ organization are

particularly significant:

● The flexible firm is one in which there is structural and operational flexibility.

Structural flexibility is present when the core of permanent employees is

supplemented by a peripheral group of part-time employees, employees on short-

or fixed-term contracts or sub-contracted workers. Operational flexibility can be

functional, numerical or financial.

● In the lean organization, lean production aims to add value by minimizing waste in

terms of materials, time, space and people.

The future of work

Futurologists have predicted various fundamental changes, ‘paradigm shifts’, in the

nature of work but as Nolan and Wood (2003) comment, the evidence on work and

employment patterns in Britain confounds many of these claims.


Financial flexibility – Pay levels reflect the state of supply and demand in the external

labour market and flexible pay systems are used that facilitate either functional or

numerical flexibility (qv).

Flexible firm – One in which there is structural flexibility, ie the existence of a core of

permanent employees and a periphery of temporary and sub-contracted workers.

There may also be operational flexibility with regard to the way in which work is

carried out (eg multi-skilling) and flexible working hours.

Functional flexibility – The use of workers who possess and can apply a number of skills,

or who carry out a number of different tasks.

Lean organization – One in which ‘lean’ production takes place, which aims to add value

by minimizing waste in terms of materials, time, space and people.

Numerical flexibility – The number of employees can be quickly and easily increased or

decreased in line with even short-term changes in the level of demand for labour.

Portfolio career – A term coined by Charles Handy (1984) to describe his forecast that

people will increasingly change the direction of their careers during the course of their

working life.

Work – The exertion of effort and the application of knowledge and skills to achieve a

purpose.


1. What is the nature of work?

2. What is a flexible firm?

3. What is lean production?

4. What is the future of work?

Bibliography

Atkinson, J (1984) Manpower strategies for flexible organizations, Personnel

Management, August, pp 28–31

Bridges, M (1995) Job Shift: How to prosper in a world without jobs, Nicolas Brealey,

London

Doeringer, P and Priore, M (1971) Internal Labour Markets and Labour Market Analysis,

Heath, Lexington, DC

Gallie, D and White, M (1993) Employee Commitment and the Skills Revolution, Policy

Studies Institute, London

Gallie, D, Marsh, C and Vogler, C (1994) Social Changes and the Experience of

Unemployment, Oxford University Press, Oxford

Guest, D E and Conway, N (1997) Employee Motivation and the Psychological Contract,

IPD, London

Guest, D E, Conway, N and Briner, T (1996) The State of the Psychological Contract in

Employment, IPD, London

Handy, C (1984) The Future of Work, Blackwell, Oxford

Holbeche, L and Springett, N (2004) In Search of Meaning at Work, Roffey Park

Institute, Horsham

Kinnie, N, Hutchinson, S, Purcell, J, Rees, C, Scarborough, H and Terry, M (1996) The

People Management Implications of Leaner Methods of Working, IPD, London

Leadbeater, C (2000) Living on Thin Air: The new economy, Viking, London

Loveridge, R and Mok, A (1979) Theories of Labour Market Segmentation: A critique,

Martinus Nijhoff, The Hague

Nolan, P and Wood, S (2003) Mapping the future of work, British Journal of Industrial

Relations, 41 (2), pp 165–74

Noon, M and Blyton, P (2007) The Realities of Work, Palgrave Macmillan, Basingstoke

Rifkin, J (1995) The End of Work: The decline of the global labour force and the dawn of

the new economy, Putnam, New York

Thomas, K (ed) (1999) The Oxford Book of Work, Oxford University Press, Oxford

Womack, J and Jones, D (1970) The Machine that Changed the World, Rawson, New York

15. THE EMPLOYMENT RELATIONSHIP

Teaching notes



Basis of the employment relationship

Employment relationship contracts

What is happening to the employment relationship

Managing the employment relationship

Developing a high-trust organization

Theories explaining the employment relationship


Agency theory Employment relationship

Exchange theory High-trust organization

Labour process theory Mutuality

Pay–work bargain Pluralist framework of reference

Procedural justice Psychological contract

Relationship contract Transactional contract

Trust Unitary framework of reference


Contents





A bibliography

Session outline

Basis of the employment relationship

● An undertaking by an employee to provide skill and effort to the employer in return

for which the employer provides the employee with a salary or a wage.

● The employer's obligations also include the duty to provide a safe workplace, to

act in good faith towards the employee and not to act in such a way as to

undermine the trust and confidence of the employment relationship.

● The employee has corresponding obligations, including obedience, competence,

honesty and loyalty.

Employment relationship contracts

The three types are:

1. Relational contract: A contract expressing the relationships between employers

and employees in abstract terms that refer to open-ended membership of the

organization. Performance requirements attached to this continuing membership

are incomplete or ambiguous. It is less well-defined than a transactional contract

(qv).

2. Transactional contract: A contract that has well-described terms of exchange

between employer and employee, which are usually expressed financially.

3. Psychological contract: The combination of beliefs held by an individual and his or

her employer about what they expect of one another. It can be described as the

set of reciprocal but unwritten expectations that exist between individual

employees and their employers.

What is happening to the employment relationship

Three of the more important developments in the employment relationship (Gallie et al,

1998) are:

1. New forms of management, often based explicitly or implicitly on HRM principles

and emphasizing individual contracts rather than collective bargaining.

2. There was some increase in task discretion but there was no evidence of a

significant decline in managerial control; indeed, in some important respects

control was intensified.

3. The higher the level of skill, the more people were involved with their work.

Managing the employment relationship

The dynamic and often nebulous nature of the employment relationship and the

multiplicity of the factors that influence the contract increase the difficulty of managing it.

Developing a high-trust organization

● A high-trust organization exists when management is honest with people, keeps its

word (delivers the deal) and practises what it preaches.

● Trust is created and maintained by managerial behaviour and by the development

of better mutual understanding of expectations – employers of employees, and

employees of employers.

Theories explaining the employment relationship

The theories explaining the employment relationship are:

● Labour process theory: Karl Marx’s theory that capitalists appropriate surplus from

labour by paying it less than the value it adds to the labour process.

● Agency theory: The role of the managers of a business is to act on behalf of the

owners of the business as their agents.

● Exchange theory: Organizational behaviour can be explained in terms of the

rewards and costs incurred in the interaction between employers and employees.


Agency theory – The role of the managers of a business is to act on behalf of the owners

of the business as their agents. But there is a separation between the owners (the

principals) and the agents (the managers) and the principals may not have complete

control over their agents. The latter may therefore act in ways that are against the

interests of those principals.

Employment relationship – The relationships that exist between employers and

employees in the workplace: how they work together and get on with one another.

Exchange theory – The theory that organizational behaviour can be explained in terms

of the rewards and costs incurred in the interaction between employers and

employees.

High-trust organization – One in which high levels of trust exist between employees and

management.

Labour process theory – Karl Marx’s theory that capitalists appropriate surplus from

labour by paying it less than the value it adds to the labour process. As interpreted by

Braverman (1974), the theory refers to the application of modern management

techniques in combination with mechanization and automation, which secures the

real subordination of labour and de-skilling of work in the office as well as the shop

floor.

Mutuality – A state that exists when management and employees are interdependent

and both benefit from this interdependency.

Pay–work bargain – The agreement made between employers and employees whereby

the former undertake to pay for the work done by the latter.

Pluralist frame of reference – A belief based on pluralism, ie that the interests of

employees will not necessarily coincide with those of their employers.

Procedural justice – Treating people fairly in accordance with the principles of natural

justice, ie that individuals should know the standards they are expected to achieve

and the rules to which they are expected to conform, should be given a clear

indication of where they are failing or what rules have been broken.

Psychological contract – The combination of beliefs held by an individual and his or her

employer about what they expect of one another. It can be described as the set of

reciprocal but unwritten expectations that exist between individual employees and

their employers.

Relational contract – A contract expressing the relationships between employers and

employees in abstract terms that refers to open-ended membership of the

organization. Performance requirements attached to this continuing membership are

incomplete or ambiguous. It is less well-defined than a transactional contract (qv).

Transactional contract – A contract that has well-described terms of exchange between

employer and employee, which are usually expressed financially. It is usually limited

in duration and has specified performance requirements.

Trust – The belief that a person may be relied on by meeting our expectations of them

and suiting actions to words.

Unitary frame of reference – A belief based on unitarism, ie that management and

employees share the same concerns and it is therefore in both their interests to work

together.


1. What is the basis of the employment relationship?

2. What types of contract are incorporated in the employment relationship?

3. How can a high-trust organization be developed?

Bibliography

Braverman, H (1974) Labour and Monopoly Capital, Monthly Review Press, New York

Cox, A and Purcell, J (1998) Searching for leverage: pay systems, trust, motivation and

commitment in SMEs, in (ed) S J Perkins and St John Sandringham, Trust, Motivation

and Commitment: A reader, Strategic Remuneration Research Centre, Faringdon

Cyert, R M and March, J G (1963) A Behavioural Theory of the Firm, Prentice-Hall,


Edwards, P K (1990) Understanding conflict in the labor process: the logic and anatomy

of struggle, in Labor Process Theory, Macmillan, London

Fox, A (1973) Beyond Contract, Faber and Faber, London

Gallie, D, White, M, Cheng, Y and Tomlinson, M (1998) Restructuring the Employment

Relationship, The Clarendon Press, Oxford

Gennard, J and Judge, G (2005) Employee Relations, 3rd edn, CIPD, London

Guest, D E and Conway, N (1998) Fairness at Work and the Psychological Contract,

IPD, London

Herriot, P, Hirsh, W and Riley, P (1988) Trust and Transition: Managing the employment

relationship, Wiley, Chichester

Kessler, S and Undy, R (1996) The New Employment Relationship: Examining the

psychological contract, IPM, London

Macneil, R (1985) Relational contract: what we do and do not know, Wisconsin Law

Review, pp 483-525




Rubery, J, Earnshaw, J, Marchington, M, Cooke, F L and Vincent, S (2002) Changing

organizational forms and the employment relationship, Journal of Management

Studies, 39 (5), pp 645–72

Shaw, R B (1997) Trust in the Balance, Jossey-Bass, San Francisco, CA

Thompson, M (1998) Trust and reward, in (ed) S J Perkins and St John Sandringham,

Trust, Motivation and Commitment: A reader, Strategic Remuneration Research

Centre, Faringdon

Thompson, P and Harley, B (2007) HRM and the worker: labour process perspectives, in

(ed) P Boxall, J Purcell and P Wright, Oxford Handbook of Human Resource


Tyler, T R and Bies, R J (1990) Beyond formal procedures: the interpersonal context of

procedural justice, in (ed) J S Carrol, Applied Social Psychology and Organizational

Settings, Lawrence Erlbaum, Hillsdale, NJ

16. THE PYSCHOLOGICAL CONTRACT

Teaching notes



A definition of the psychological contract

The psychological contract and the employment relationship

The core of the psychological contract

The significance of the psychological contract

Changes to the psychological contract

The state of the psychological contract

How psychological contracts develop

Developing a positive psychological contract


Employability

Psychological contract

Social exchange theory


Contents





A bibliography

Session outline

A definition of the psychological contract

● A psychological contract is a set of unwritten expectations that exist between

individual employees and their employers.

● It is a system of beliefs that encompasses the actions employees believe are

expected of them and what response they expect in return from their employer

and, reciprocally, the actions employers believe are expected of them and what

response they expect in return from their employees.

The psychological contract and the employment relationship

The aspects of the employment relationship covered by the psychological contact will

include, from the employees’ point of view:

● how they are treated in terms of fairness, equity and consistency;

● security of employment;

● scope to demonstrate competence;

● career expectations and the opportunity to develop skills;

● involvement and influence;

● trust in the management of the organization to keep their promises.

From the employer's point of view, the psychological contract covers such aspects of the

employment relationship as competence, effort, compliance, commitment and loyalty.

The core of the psychological contract

The core of the psychological contract can be measured in terms of fairness of

treatment, trust, and the extent to which the explicit deal or contract is perceived to be

delivered.

The significance of the psychological contract

A psychological contract creates emotions and attitudes that form and control behaviour.

Changes to the psychological contract

The nature of the psychological contract is changing in many organizations in response

to changes in their external and internal environments. For example, there is more focus

on mutuality, a variable employment relationship and employability.

The state of the psychological contract

● A national survey (WERS) in 2004 found that the only area in which there was

more dissatisfaction than satisfaction was pay.

● A higher proportion than might have been expected (72 per cent) was satisfied or

very satisfied with the work itself.

● Equally high percentages were satisfied with regard to having a sense of

achievement and scope for using initiative.

How psychological contracts develop

Psychological contracts are not developed by means of a single transaction; they evolve

over time and can be multifaceted.

Developing a positive psychological contract

● Define expectations during recruitment and induction programmes.

● Communicate and agree expectations as part of the continuing dialogue that is

implicit in good performance management practices.

● Adopt a policy of transparency on company policies and procedures and on

management’s proposals and decisions as they affect people.

● Generally treat people as stakeholders, relying on consensus and cooperation

rather than control and coercion.


Employability – The ability of an individual to take on new forms of employment, within or

without the company.

Psychological contract – The combination of beliefs held by an individual and his or her

employer about what they expect of one another. It can be described as the set of

reciprocal but unwritten expectations that exist between individual employees and

their employers.

Social exchange theory – A theory that explains social change and stability as a process

of negotiated exchanges between parties.


1. What is the psychological contract?

2. What is its significance?

3. How can a positive psychological contract be developed?

Bibliography

Argyris, C (1957) Personality and Organization, Harper & Row, New York

Guest, D (2007) HRM: towards a new psychological contract, in (ed) P Boxall, J Purcell

and P Wright, Oxford Handbook of Human Resource Management, Oxford


Guest, D E and Conway, N (1997) Employee Motivation and the Psychological Contract,

IPD, London

Guest, D E and Conway, N (1998) Fairness at Work and the Psychological Contract,

IPD, London

Guest, D E and Conway, N (2002) Communicating the psychological contract: an

employee perspective, Human Resource Management Journal, 12 (2), pp 22–39

Guest, D E, Conway, N and Briner, T (1996) The State of the Psychological Contract in

Employment, IPD, London

Hiltrop, J M (1995) The changing psychological contract: the human resource challenge

of the 1990s, European Management Journal, 13 (3), pp 286–94

Katz, D and Kahn, R (1966) The Social Psychology of Organizations, John Wiley, New

York

Rousseau, D M (1995) Psychological Contracts in Organizations, Sage, Thousand

Oaks, CA

Rousseau, D M (2001) The idiosyncratic deal: flexibility versus fairness, Organizational

Dynamics, 29 (4), pp 260–73

Rousseau, D M and Greller, M M (1994) Human resource practices: administrative

contract makers, Human Resource Management, 33 (3), pp 385–401




Schein, E H (1965) Organizational Psychology, Prentice-Hall, Englewood Cliffs, NJ

Sims, R R (1994) Human resource management's role in clarifying the new

psychological contract, Human Resource Management, 33 (3), pp 373–82

Spindler, G S (1994) Psychological contracts in the workplace: a lawyer's view, Human

Resource Management, 33 (3), pp 325–33

17. THE ESSENCE OF ORGANIZATIONAL BEHAVIOUR

Teaching notes



A definition of organizational behaviour

The characteristics of organizational behaviour

The factors affecting organizational behaviour

The sources and applications of organizational behaviour theory

The significance of organizational behaviour theory


Behavioural science

Organizational behaviour

Process theory

Social sciences

Variance theory


Contents





A bibliography

Session outline

A definition of organizational behaviour

‘The study of the structure, functioning and performance of organizations, and the

behaviour of groups and individuals within them’ (Pugh, 1971).

Characteristics of organizational behaviour (Ivancevich et al, 2008)

● It is a way of thinking about individuals, groups and organizations.

● It is multidisciplinary.

● There is a distinctly humanistic orientation.

● It is performance-oriented.

● The use of scientific method is important in studying variables and relationships.

● It is applications-oriented in the sense of being concerned with providing useful

answers to questions that arise when managing organizations.

Organizational behaviour and the social and behavioural sciences

● Organizational behaviour studies use social and behavioural science

methodologies, which involve scientific procedures.

● The social sciences include the disciplines of psychology, social psychology,

sociology, anthropology, economics and political science.

● Behavioural science is mainly concerned with psychology and sociology. It was

defined by Kelly (1969) as: ‘The field of enquiry dedicated to the study of human

behaviour through sophisticated but rigorous methods.’

Factors affecting organizational behaviour

The actions, reactions and interactions of people that constitute organizational behaviour

are influenced by the following factors:

● The characteristics of people at work – individual differences, attitudes,

personality, attributions, orientation and the roles they play.

● How people are motivated.

● The process of employee engagement.

● The process of organizational commitment.

● How organizations function.

● Organizational culture.

Explaining organizational behaviour

Variance theory

● Variance theory explains the causes of organizational behaviour by reference to

the independent or causal variables that cause a change and result in dependent

variables – the outcomes of the change.

● Variance theory involves the definition and precise measurement of the variables.

Process theory

Process theory explains organizational behaviour by producing narratives that provide

probable explanations of the outcomes of a series of events.


1. What is meant by organizational behaviour?

2. What is the basis of organizational behaviour studies?

3. What are the factors affecting organizational behaviour?

Bibliography

Argyris, C (1960) Understanding Organizational Behaviour, Dorsey Press, Homewood,

IL

Baron, R and Byrne, D (2000) Social Psychology, Allyn and Bacon, London

Bowditch, J L and Buono, A F (2006) A Primer on Organizational Behaviour, Wiley, New

York

Brooks, L (2006) Organizational Behaviour: Individuals, groups and organizations, FT

Prentice Hall, Harlow

French, W L, Kast, F E and Rosenzweig, J E (1985) Understanding Human Behaviour in

Organizations, Harper & Row, New York

Huczynski, A A and Buchanan, D A (2007) Organizational Behaviour, FT Prentice Hall,

Harlow

Ivancevich, J M, Konopaske, R and Matteson, M T (2008) Organizational Behaviour and

Management, McGraw-Hill/Irwin, New York

Kelly, J (1969) Organizational Behaviour, Irwin, Homewood, IL

Locke, E A (2004) The Blackwell Handbook of Principles of Organizational Behaviour,

Blackwell, Oxford

Miner, J B (2007) Organizational Behavior 4: From theory to practice, Sharpe, New York

Mohr, L B (1982) Explaining Organizational Behaviour: The limits and possibility of

theory and research, Jossey-Bass, San Francisco, CA

Mullins, l J (2005) Management and Organizational Behaviour, FT Prentice Hall, Harlow

Mullins, I J (2006) Essentials of Organizational Behaviour, FT Prentice Hall, Harlow

Nadler, D A and Tushman, M L (1980) A congruence model for diagnosing

organizational behaviour, in (ed) R H Miles, Resource Book in Macro-organizational

Behaviour, Goodyear Publishing, Santa Monica, CA

Newstrom, J W (2007) Organizational Behaviour: Human behaviour at work, McGraw-

Hill, New York

Penny, D and Ellis, S (2006) Introduction to Organizational Behaviour, McGraw-Hill,

Maidenhead

Pugh, D S (ed) (1971) Organization Theory: Selected readings, Penguin Books,

Harmondsworth

18. CHARACTERISTICS OF PEOPLE

Teaching notes



AMO theory

Individual differences

Variations in personal characteristics

Personality theories

Emotional intelligence characteristics

Types of behaviour

Role theory


Ability Orientation theory

Attitude Perception

Attribution theory Personality

Bounded rationality Psychological climate

Emotion Role

Emotional Intelligence Self-efficacy

Intelligence


Contents



A concept map for personality



A bibliography

Session outline

Individual differences

The development of HR processes and the design of organizations are often based on

the belief that everyone is the same and will behave rationally when faced with change

or other demands. But the behaviour of people varies because of their characteristics

and individual differences and it is not always rational.

Bases of variations in personal characteristics

● Competencies – abilities and skills.

● Constructs – the conceptual framework that governs how people perceive their

environment.

● Expectations – what people have learnt to expect about their own and others’

behaviour.

● Values – what people believe to be important.

● Self-regulatory plans – the goals people set themselves and the plans they make

to achieve them.

Personality theories

Personality is a product of both nature (hereditary) and nurture (the pattern of life

experience). Personality can be described in terms of traits or types.

Emotional intelligence characteristics

● Self-management.

● Self-awareness.

● Social awareness.

● Social skills.

Types of behaviour

The types of behaviour associated with individual differences are:

● perception;

● attribution;

● orientation;

● carrying out roles;

● bounded rationality.

Role theory

● The role individuals occupy at work, and elsewhere, exists in relation to other

people.

● This is their role set, which consists of the individuals with whom a role-holder

interacts and therefore influences and is also influenced by them.

behaviour sensing/ intuition

thinking/ feeling

perceiving/ judging

conscientiousness

extraversion

agreeableness

neuroticism

attitudes extraversion/ introversion

openness

nature nurture traits types (Jung)

self-perception

personality tests

a product of

described in terms of

impacts on assessed by

PERSONALITY

Concept map – personality


Ability – The quality possessed by people that makes an action possible.

Attitude – A settled mode of thinking.

Attribution theory – This explains how people assign causes to events.

Bounded rationality – The extent to which people behave rationally is limited by their

capacity to understand the complexities of the situation they are in and their

emotional reactions to it.

Emotion – Feelings such as anger, fear, sadness, joy, anticipation and acceptance that

arouse people and therefore influence their behaviour.

Emotional intelligence – A combination of skills and abilities such as self-awareness,

self-control, empathy and sensitivity to the feelings of others.

Intelligence – The capacity for reasoning and abstract thinking governing the ability to

solve problems, apply principles, make inferences and perceive relationships.

Orientation theory – This examines the factors that are instrumental, ie serve as a

means, in directing people’s choices about work.

Perception – The intuitive understanding, recognition and interpretation of things and

events.

Personality – The psychological qualities that influence an individual’s characteristic

behaviour patterns in a stable and distinctive manner (Huczynski and Buchanan,

2007).

Psychological climate – A situation where psychological significance and meaning is

given by perceptions.

Role – The part played by individuals and the patterns of behaviour expected of them in

fulfilling their work requirements.

Self-efficacy – An individual's self-belief that he or she will be able to accomplish certain

tasks, achieve certain goals or learn certain things.


1. How do individual differences arise?

2. What are the main personal characteristics that affect people’s behaviour at work?

3. What is the trait theory of personality? Comment on its validity.

4. What is attribution theory?

Bibliography

Argyle, M (1989) The Social Psychology of Work, Penguin, Harmondsworth

Arnold, J, Robertson, I T and Cooper, C L (1991) Work Psychology, Pitman, London

Bandura, A (1982) Self-efficacy mechanism in human agency, American Psychologist,

37, pp 122–47

Blackburn, R M and Mann, R (1979) The Working Class in the Labour Market,

Macmillan, London

Burt, C (1954) The differentiation of intellectual ability, British Journal of Educational

Psychology, 24, pp 45–67

Cattell, R B (1963) The Sixteen Personality Factor Questionnaire, Institute for

Personality and Ability Training, IL

Chell, E (1985) Participation and Organisation, Macmillan, London

Chell, E (1987) The Psychology of Behaviour in Organisations, Macmillan, London

Costa, P and McRae, R R (1992) NEO PI-R: Professional manual, Psychological

Assessment Resources, Odessa, FL

Eysenck, H J (1953) The Structure of Human Personality, Methuen, London

Gagne, R M (1977) The Conditions of Learning, 3rd edn, Rinehart and Winston, New

York

Goldthorpe, J H, Lockwood, D C, Bechofer, F and Platt, J (1968) The Affluent Worker:

Industrial attitudes and behaviour, Cambridge University Press, Cambridge

Goleman, D (1995) Emotional Intelligence, Bantam, New York

Goleman, D (1998) Working With Emotional Intelligence, Bloomsbury, London

Grandey, A (2000) Emotion regulation in the workplace: a new way to conceptualize

emotional labour, Journal of Occupational Psychology, 5, pp 95–110

Guest, D E (1984) What's new in motivation, Personnel Management, May, pp 30–33

Guilford, J P (1967) The Nature of Human Intelligence, McGraw-Hill, New York

Heider, F (1958) The Psychology of Interpersonal Relationships, Wiley, New York

Huczynski, A A and Buchanan, D A (2007) Organizational Behaviour, 6th edn, FT

Prentice Hall, Harlow

Ivansevich, J M, Konopaske, R and Matteson, M T (2008) Organizational Behaviour and

Management, 8th edn, McGraw-Hill/Irwin, New York

James, R and Sells, S B (1981) Psychological climate: theoretical perspectives and

empirical research, in (ed) D Magnusson, Towards a Psychology of Situations: An

interactional perspective, Erlbaum, Hillsdale, NJ

Jung, C (1923) Psychological Types, Routledge and Kegan Paul, London

Katz, D and Kahn, R (1966) The Social Psychology of Organizations, Wiley, New York

Kelley, H H (1967) Attribution theory in social psychology, in (ed) D Levine, Nebraska

Symposium on Motivation, University of Nebraska Press, Lincoln, NB

Levinson, D (1978) The Seasons of Man’s Life, Knopf, New York

Makin, P, Cooper, C and Cox, C (1996) Organizations and the Psychological Contract,

BPS Books, Leicester

Miller, S, Hickson, D J and Wilson, D C (1999) Decision making in organizations, in (ed)

S R Clegg, C Hardy and W R Nord, Managing Organizations: Current issues, Sage,

London

Mischel, W (1968) Personality and Assessment, Wiley, New York

Mischel, W (1981) Introduction to Personality, Holt, Rinehart and Winston, New York

Salovey, P and Mayer, J D (1990) Emotional intelligence, Imagination, Cognition and

Personality, 9, pp 185–211

Schmidt, F L and Hunter, J E (1998) The validity and utility of selection methods in

personnel psychology: practical and theoretical implications of 85 years of research

findings, Psychological Bulletin, 124 (2), pp 262–74

Thurstone, L L (1940) Current issues in factor analysis, Psychological Bulletin, 30, pp

26–38

Toplis, J, Dulewicz, V and Fletcher, C (2004) Psychological Testing, Institute of

Personnel Management, London

Vernon, P E (1961) The Structure of Human Abilities, Methuen, London

Weiner, B (1974) Achievement Motivation and Attribution Theory, General Learning

Press, New Jersey

Wright, D S and Taylor, A (1970) Introducing Psychology, Penguin, Harmondsworth

19. MOTIVATION

Teaching notes



The process of motivation

Types of motivation

Motivation theories

Motivation and money

Motivation strategies


Content (needs) motivation theory Maslow’s hierarchy of needs

Discretionary behaviour/effort McClelland’s need theory

Equity theory Motivation

ERG theory Process or cognitive theory (motivation)

Expectancy motivation theory Quality of working life

Extrinsic motivation Reinforcement theory

Goal motivation theory Social learning theory

Herzberg’s two-factor theory of motivation Theory X

Instrumentality Theory Y

Instrumentality motivation theory Valency-instrumentality-expectancy theory

Intrinsic motivation


Contents





A bibliography

Session outline

The process of motivation

● Motivation is goal-directed behaviour.

● People are motivated when they expect that a course of action is likely to lead to

the attainment of a goal and a valued reward – one that satisfies their needs and

wants.

Types of motivation

The two basic types are:

1. Intrinsic motivation – the self-generated factors that influence people’s behaviour,

which may arise from the work itself.

2. Extrinsic motivation – this occurs when things are done to or for people to motivate

them.

Motivation theories

Motivation theories are classified as:

● reinforcement theory;

● instrumentality;

● content (needs) theory;

● process theory;

● Herzberg’s two-factors model.

Reinforcement theory

As experience is gained in taking action to satisfy needs, people perceive that certain

actions help to achieve their goals, while others are less successful.

Instrumentality

The belief that if we do one thing it will lead to another. It assumes that people will be

motivated to work if rewards and penalties are tied directly to their performance; thus the

awards are contingent upon effective performance.

Content (needs) theory

The theory focuses on the content of motivation in the shape of needs. Its basis is the

belief that an unsatisfied need creates tension and a state of disequilibrium. To restore

the balance a goal is identified that will satisfy the need, and a behaviour pathway is

selected that will lead to the achievement of the goal and the satisfaction of the need. All

behaviour is therefore motivated by unsatisfied needs. Needs theory has been

developed by Maslow, Alderfer and McClelland:

● Maslow’s hierarchy of needs – there are five major need categories that apply to

people in general, starting from the fundamental physiological needs and leading

through a hierarchy of safety, social and esteem needs to the need for self-

fulfilment, the highest need of all. When a lower need is satisfied the next highest

becomes dominant and the individual’s attention is turned to satisfying this higher

need. The need for self-fulfilment, however, can never be satisfied. Maslow`s

needs hierarchy has an intuitive appeal and has been very popular. But it has not

been verified by empirical research such as that conducted by Wahba and Bridwell

(1979), and it has been criticized for its apparent rigidity – different people may

have different priorities and it is difficult to accept that needs progress steadily up

the hierarchy.

● Alderfer (1972) devised his ERG theory of human needs, which has three

categories: existence needs, relatedness needs and growth needs.

● McClelland (1961) identified three needs as being most important for managers:

achievement, affiliation and power.

Process theory

Process theory is concerned with the psychological processes or forces that affect

motivation, as well as basic needs. The main process theories are:

● Expectancy theory – motivation will be high when people know what they have to

do to get a reward, expect that they will be able to get the reward and expect that

the reward will be worthwhile.

● Goal theory – motivation and performance are higher when individuals are set

specific goals, when goals are difficult but accepted, and when there is feedback

on performance.

● Equity theory – this refers to the perceptions people have about how they are

being treated as compared with others. Better motivation is achieved when people

are dealt with equitably, ie treated fairly in comparison with another group of

people (a reference group) or a relevant other person.

These three process theories are generally regarded as the most significant. Expectancy

theory is particularly important in reward management.

Herzberg’s two-factor model

The two factors in Herzberg’s model are:

1. Te satisfiers that motivate individuals to superior performance and effort.

2. The dissatisfiers or hygiene factors that prevent job dissatisfaction, while having

little effect on positive job attitudes.

Herzberg pointed out that while financial incentives may motivate in the short term, the

effect quickly wears off. This theory has been attacked because it is said to be based on

inadequate research. But the concepts of ‘hygiene factors’ and the transient effect of

rewards persist.

Motivation and money

Money is a powerful motivating force because it is linked directly or indirectly to the

satisfaction of many needs. Money may in itself have no intrinsic meaning, but it

acquires significant motivating power because it comes to symbolize so many intangible

goals.

Motivation strategies

Motivation strategies aim to create a working environment and to develop policies and

practices that will provide for higher levels of performance from employees. They include

the development of total reward systems and performance management processes, the

design of intrinsically motivating jobs and leadership development programmes.

Summary of motivation theories

Category Type Theorist(s) Summary of theory Implications

Instrumentality Taylorism Taylor (1911) If we do one thing it leads to another. People will be motivated to work if rewards and punishments are directly related to their performance.

Basis of crude attempts to motivate people by incentives. Often used as the implied rationale for performance-related pay, although this is seldom an effective motivator.

Reinforcement The motivation process

Hull (1951)

As experience is gained in satisfying needs, people perceive that certain actions help to achieve goals while others are unsuccessful. The successful actions are repeated when a similar need arises.

Provide feedback that positively reinforces effective behaviour.

Needs (content) theory

Hierarchy of needs

Maslow (1954)

A hierarchy of five needs exist: physiological, safety, social, esteem, self-fulfilment. Needs at a higher level only emerge when a lower need is satisfied.

Focuses attention on the various needs that motivate people and the notion that a satisfied need is no longer a motivator. The concept of a hierarchy has no practical significance.

ERG theory Alderfer (1972)

Three fundamental needs: existence, relatedness and growth.

A simpler and more convincing approach to Maslow’s on the motivation provided by needs.

Managerial needs theory

McClelland (1975)

Managers have three fundamental needs: achievement, affiliation and power.

Draws attention to the needs of managers and the important concept of ‘achievement motivation’.

Process/cognitive theory

Expectancy theory

Vroom (1964), Porter and Lawler (1968)

Effort (motivation) depends on the likelihood that rewards will follow effort and that the reward is worthwhile.

The key theory informing approaches to rewards, ie that there must be a link between effort and reward (line of sight), the reward should be achievable and it should be worthwhile.

Goal theory Latham and Locke (1979)

Motivation will improve if people have demanding but agreed goals and receive feedback.

Provides the rationale for performance management, goal setting and feedback.

Equity theory Adams (1965)

People are better motivated if treated equitably.

Need to have equitable reward and employment practices.

Social learning theory

Bandura

(1977)

Emphasizes the importance of internal psychological factors, especially expectancies about the value of goals and the individual's ability to reach them.

Influences performance management and learning and development practices.


Theory X and theory Y

General approaches to motivation

McGregor (1960)

Theory X is the traditional view that people must be coerced into performing; theory Y is the view that people will exercise self-direction and self-direction in the service of objectives to which they are committed.

Emphasizes the importance of commitment, rewards and integrating individual and organizational needs.


Instrumentality Taylorism Taylor (1911) If we do one thing it leads to another. People will be motivated to work if rewards and punishments are directly related to their performance.

Basis of crude attempts to motivate people by incentives. Often used as the implied rationale for performance-related pay, although this is seldom an effective motivator.

Reinforcement The motivation process

Hull (1951)

As experience is gained in satisfying needs, people perceive that certain actions help to achieve goals while others are unsuccessful. The successful actions are repeated when a similar need arises.

Provide feedback that positively reinforces effective behaviour.

Needs (content) theory

Hierarchy of needs

Maslow (1954)

A hierarchy of five needs exist: physiological, safety, social, esteem, self-fulfilment. Needs at a higher level only emerge when a lower need is satisfied.

Focuses attention on the various needs that motivate people and the notion that a satisfied need is no longer a motivator. The concept of a hierarchy has no practical significance.

ERG theory Alderfer (1972)

Three fundamental needs: existence, relatedness and growth.

A simpler and more convincing approach to Maslow’s on the motivation provided by needs.

Managerial needs theory

McClelland (1975)

Managers have three fundamental needs: achievement, affiliation and power.

Draws attention to the needs of managers and the important concept of ‘achievement motivation’.

Process/cognitive theory

Expectancy theory

Vroom (1964), Porter and Lawler (1968)

Effort (motivation) depends on the likelihood that rewards will follow effort and that the reward is worthwhile.

The key theory informing approaches to rewards, ie that there must be a link between effort and reward (line of sight), the reward should be achievable and it should be worthwhile.

Goal theory Latham and Locke (1979)

Motivation will improve if people have demanding but agreed goals and receive feedback.

Provides the rationale for performance management, goal setting and feedback.

Equity theory Adams (1965)

People are better motivated if treated equitably.

Need to have equitable reward and employment practices.

Social learning theory

Bandura

(1977)

Emphasizes the importance of internal psychological factors, especially expectancies about the value of goals and the individual's ability to reach them.

Influences performance management and learning and development practices.


Theory X and theory Y

General approaches to motivation

McGregor (1960)

Theory X is the traditional view that people must be coerced into performing; theory Y is the view that people will exercise self-direction and self-direction in the service of objectives to which they are committed.

Emphasizes the importance of commitment, rewards and integrating individual and organizational needs.


Content (needs) motivation theory – A theory based on the content of motivation in the

shape of needs. It states that an unsatisfied need creates tension and a state of

disequilibrium. To restore the balance a goal is identified that will satisfy the need,

and a behaviour pathway is selected that will lead to the achievement of the goal and

the satisfaction of the need.

Discretionary behaviour/effort – The discretion or choice people at work can exercise

about the way they do their job and the amount of effort, care, innovation and

productive behaviour they display.

Equity theory – This refers to the perceptions people have about how they are being

treated as compared with others. To be dealt with equitably is to be treated fairly in

comparison with another group of people (a reference group) or a relevant other

person.

ERG theory – Alderfer’s theory of human needs (1972), which postulated three primary

categories: existence, relatedness and growth.

Expectancy motivation theory – The theory that motivation will be high when people

know what they have to do to get a reward, expect that they will be able to get the

reward and expect that the reward will be worthwhile.

Extrinsic motivation – This occurs when things are done to or for people to motivate

them.

Goal motivation theory – As developed by Latham and Locke (1979), this states that

motivation and performance are higher when individuals are set specific goals, when

goals are difficult but accepted, and when there is feedback on performance.

Herzberg’s two-factor theory of motivation – The motivation factors in Herzberg`s model

are the satisfiers or motivators, because they are seen to be effective in motivating

the individual to superior performance and effort, and the dissatisfiers (the hygiene

factors), which essentially describe the environment and serve primarily to prevent job

dissatisfaction, while having little effect on positive job attitudes.

Instrumentality – The concept that if one thing is done it will lead to another.

Instrumentality motivation theory – People will be motivated to work if rewards and

penalties are tied directly to their performance.

Intrinsic motivation – The self-generated factors that influence people’s behaviour that

may arise from the work itself.

Maslow’s hierarchy of needs – There are five major need categories starting from the

fundamental physiological needs and leading through a hierarchy of safety, social and

esteem needs to the need for self-fulfilment, the highest need of all. When a lower

need is satisfied the next highest becomes dominant and the individual’s attention is

turned to satisfying this higher need.

McClelland’s need theory – Three needs are most important: achievement, affiliation and

power.

Motivation – The strength and direction of behaviour and the factors that influence

people to behave in certain ways.

Process or cognitive theory (motivation) – This explains motivation as a function of

psychological processes or forces as well as of basic needs.

Quality of working life – The feelings of satisfaction and happiness arising from the work

itself and the way people are treated at work.

Reinforcement theory – The belief that changes in behaviour take place as a result of an

individual’s response to events or stimuli and the ensuing consequences (rewards or

punishments).

Social learning theory – As a motivation theory, social learning theory (Bandura, 1977)

recognizes the significance of the basic behavioural concept of reinforcement as a

determinant of future behaviour but also emphasizes the importance of internal

psychological factors, especially expectancies about the value of goals and the

individual's ability to reach them. In learning theory, social learning theory expresses

the belief that effective learning requires social interaction. Social learning theory has

also influenced behaviour modelling processes.

Theory X – McGregor’s (1960) description of the traditional view that the average human

dislikes work and wishes to avoid responsibility and that, therefore, ‘most people must

be coerced, controlled, directed, threatened with punishment to get them to put

forward adequate effort towards organizational objectives’.

Theory Y – McGregor’s (1960) theory of integration which, in contrast to theory X,

emphasizes the importance of recognizing the needs of both the organization and the

individual and creating conditions that will reconcile these needs so that members of

the organization can work together for its success and share in its rewards.

Valency-instrumentality-expectancy theory – Formulated by Vroom (1964) to explain the

process of motivation where valency stands for value, instrumentality is the belief that

if we do one thing it will lead to another, and expectancy is the probability that action

or effort will lead to an outcome. Forms the basis of expectancy theory.


1. What is motivation?

2. What are the main types of motivation?

3. Which motivation theories are most relevant to HRM?

4. What impact does money in the shape of financial rewards have on motivation?

Bibliography

Adams, J S (1965) Injustice in social exchange, in (ed) L Berkowitz, Advances in

Experimental Psychology, Academic Press, New York

Alderfer, C (1972) Existence, Relatedness and Growth, The Free Press, New York

Allport, G (1954) The historical background of modern social psychology, in (ed) G

Lindzey, Theoretical Models and Personality, Addison-Wesley, Cambridge, MA

Arnold, J, Robertson, I T and Cooper, C L (1991) Work Psychology, Pitman, London

Bandura, A (1977) Social Learning Theory, Prentice-Hall, Englewood Cliffs, NJ

Bandura, A (1986) Social Boundaries of Thought and Action, Prentice-Hall, Englewood

Cliffs, NJ

Deci, E L and Ryan, R M (1985) Intrinsic Motivation and Self-determination in Human

Behaviour, Plenum, New York

Guest, D E (1992) Motivation after Herzberg, Unpublished paper delivered at the

Compensation Forum, London

Hackman, J R and Oldham, G R (1974) Motivation through the design of work: test of a

theory, Organizational Behaviour and Human Performance, 16 (2), pp 250–79

Herzberg, F W, Mausner, B and Snyderman, B (1957) The Motivation to Work, Wiley,

New York

Hull, C (1951) Essentials of Behavior, Yale University Press, New Haven, CT

Hunter, J E, Schmidt, F L and Judiesch, M K (1990) Individual differences in output

variability as a function of job complexity, Journal of Applied Psychology, 75 (1), pp 28–

42

Jaques, E (1961) Equitable Payment, Heinemann, Oxford

Latham, G and Locke, R (1979) Goal setting – a motivational technique that works,

Organizational Dynamics, Autumn, pp 68–80

McClelland, D C (1961) The Achieving Society, Van Nostrand, New York

McGregor, D (1960) The Human Side of Enterprise, McGraw-Hill, New York

Maslow, A (1954) Motivation and Personality, Harper & Row, New York

Opsahl, R C and Dunnette, M D (1966) The role of financial compensation in individual

motivation, Psychological Bulletin, 56, pp 94–118

Porter, L W and Lawler, E E (1968) Managerial Attitudes and Performance, Irwin-

Dorsey, Homewood, IL

Robertson, I T and Cooper, C L (1983) Human Behaviour in Organizations, Macdonald

& Evans, Plymouth

Skinner, B F (1974) About Behaviourism, Cape, London

Taylor, F W (1911) Principles of Scientific Management, Harper, New York

Vroom, V (1964) Work and Motivation, Wiley, New York

Wahba, M A and Bridwell, L G (1979) Maslow reconsidered: a review of research on the

need hierarchy theory, in (ed) R M Sters and L W Porter, Motivation and Work

Behaviour, McGraw-Hill, New York

20. ENGAGEMENT AND COMMITMENT

Teaching notes



Comparison of the concepts of engagement and commitment

The significance of employee engagement

The factors that influence engagement

Engagement strategy

Measuring engagement

Engagement and job satisfaction

The meaning of organizational commitment

The importance of commitment

Problems with the concept of commitment

Factors affecting commitment

Developing a commitment strategy

The contribution of HR to developing commitment


Commitment

Discretionary behaviour/effort

Discretionary learning

Engagement

Job satisfaction

Learning culture

Organizational climate

Unitary frame of reference


Contents





A bibliography

Session outline

Comparison of the concepts of engagement and commitment

Engagement is job-oriented and commitment is organization-oriented. This is a clear

distinction but the terms are often confused.

The significance of employee engagement

There is a close link between high levels of engagement and positive discretionary

behaviour.

The factors that influence engagement

● An employee’s understanding of his or her role, where it fits in the wider

organization, and how it aligns with business objectives.

● How people feel about the organization, whether their work gives them a sense of

personal accomplishment and how they relate to their manager.

Engagement strategy

Enhance motivation through the work itself, the work environment, leadership and

opportunities for growth.

Measuring engagement

This can be done through published surveys that enable benchmarking against the

levels of engagement achieved in other organizations. Alternatively, organizations can

develop their own surveys to suit their circumstances.

Engagement and job satisfaction

● The concept of job satisfaction is closely linked to that of engagement.

● Job satisfaction refers to the attitudes and feelings people have about their work.

Positive and favourable attitudes towards the job lead to engagement and

therefore job satisfaction.

● The level of job satisfaction is affected by intrinsic and extrinsic motivating factors,

the quality of supervision, social relationships with the work group and the degree

to which individuals succeed or fail in their work.

The meaning of organizational commitment

● Commitment refers to attachment and loyalty. It is associated with the feelings of

individuals about their organization.

● As defined by Porter et al (1974), commitment is the relative strength of the

individual's identification with, and involvement in, a particular organization.

The importance of commitment

Two schools of thought about what makes commitment important:

1. The 'from control to commitment' school was led by Walton (1985a and 1985b).

2. The 'Japanese/excellence' school, represented by writers such as Ouchi (1981),

Pascale and Athos (1981) and Peters and Waterman (1982).

Problems with the concept of commitment

● Its unitary frame of reference.

● It might inhibit flexibility.

● It does not necessarily result in improved organizational performance.

Factors affecting commitment

Kochan and Dyer (1993) have indicated that the factors affecting the level of

commitment are:

● Strategic level: supportive business strategies, top management value

commitment and effective voice for HR in strategy making and governance.

● Functional (human resource policy) level: staffing based on employment

stabilization, investment in training and development, and contingent

compensation that reinforces cooperation, participation and contribution.

● Workplace level: selection based on high standards, broad task design and

teamwork, employee involvement in problem solving, and a climate of cooperation

and trust.

Developing a commitment strategy

● Initiatives to increase involvement and 'ownership'.

● Communication.

● Leadership development.

● Developing a sense of excitement in the job.

The contribution of HR to developing commitment

HR can provide advice and guidance on:

● communicating corporate values;

● building trust;

● making commitment a two-way process;

● developing a positive psychological contract;

● the development of partnership agreements, single status and increased

employment security;

● the use of performance management to align individual and organizational goals.


Commitment – The strength of an individual's identification with, and involvement in, a

particular organization.

Discretionary behaviour/effort – The discretion or choice people at work can exercise

about the way they do their job and the amount of effort, care, innovation and

productive behaviour they display.

Engagement – This takes place when people at work are interested in and positive, even

excited about their jobs and are prepared to go the extra mile to get them done to the

best of their ability.

Job satisfaction – The attitudes and feelings people have about their work. Positive and

favourable attitudes towards the job indicate job satisfaction. Negative and

unfavourable attitudes towards the job indicate job dissatisfaction.

Learning culture – An environment that promotes learning because it is recognized by all

concerned as an essential organizational process to which they are committed and in

which they engage continuously.

Organizational climate – The relatively persistent set of perceptions held by organization

members concerning the characteristics and quality of organizational culture (French,

Kast and Rosenzweig, 1985).

Organizational commitment – The strength of an individual's identification with, and

involvement in, a particular organization.

Unitary frame of reference – A belief based on unitarism, ie that management and

employees share the same concerns and it is therefore in both their interests to work

together.


1. What is the difference between engagement and commitment?

2. What is the significance of employee engagement?

3. What are the factors that affect employee engagement?

4. What are the factors affecting job satisfaction?

5. What are the characteristics of commitment?

6. What are the actors affecting commitment?

7. How can commitment be developed?

Bibliography

Alderfer, C (1972) Existence, Relatedness and Growth, New York, The Free Press

Bevan, S, Barber, l and Robinson, D (1997) Keeping the Best: A practical guide to

retaining key employees, Institute for Employment Studies, Brighton

Brayfield, A H and Crockett, W H (1955) Employee attitudes and employee performance,

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