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Aim:To develop a critical awareness of current factors required for leading and managing people effectively for sustained organisational economic performance, competitiveness and prosperity. Context: Your Chief Executive Officer (CEO) has just returned from a conference where h/she attended a presentation on flexible working and the psychological contract. The speakers, from a variety of organisations in the public and private sector, presented case studies detailing the organisational benefits that they had received from the flexible working strategies, based on modern notions of the psychological contract, that they had introduced. Although each speaker seemed credible, it appeared that what was meant by these terms differed from speaker to speaker.Furthermore, each organisation seemed to measure ‘flexibility’ in a different way and report different outcomes. Although still very interested in how ‘flexible working’ and the ‘psychological contract’ can benefit your organisation, your CEO has asked you to undertake some research in order to understand what these concepts are, and whether it really does have the reported benefits of improving employee performance. H/she would like to know more about what the organisation can do to develop a more positive ‘psychological contract’ in the workplace. The Tasks: Within Petroleum Development Oman (PDO). draw on relevant research evidence and organisational practice to produce a short report of approximately 1400 words addressed to Petroleum Development Oman (PDO) Managing Director/Chief Executive Officer: Task 1:Critically explore and explain perceptions of ‘flexible working’ and the ‘psychological contract’.Task 2:Critically analyse how each of these concepts are shown to operate in Petroleum Development Oman (PDO) and the obstacles to be overcome by management to ensure a contribution to organisational performance.Task3:Using a change management model provided within Unit materials, draw conclusions and make recommendations based on an argued business case for changes in your organisation to improve high levels of employee engagement in Petroleum Development Oman (PDO). Please note, if a diagrammatic action plan is included, it should support appropriate accompanying text in the main body of your answer. Structure Form: Introduction: (100 words)Literature Review: around (500 words)Discussion: around (500 words)Conclusions and recommendations: (300 words) *** Word count: 1400 words. *** In-Text citation and references using Harvard style. *** It’s mandatory to cite those Attachments and it’s has been uploaded named: “Human Resource” and “Organizational Behavior” *** I’ve also upload zip file named “Materials” related to this work.
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Eighth Edition
HUMAN RESOURCE
MANAGEMENT
A CONTEMPORARY APPROACH
Julie Beardwell &
Amanda Thompson
HUMAN RESOURCE
MANAGEMENT
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To learn more, please visit us at www.pearson.com/uk
HUMAN RESOURCE
MANAGEMENT
A CONTEMPORARY APPROACH
Eighth edition
Edited by
Julie Beardwell
and Amanda Thompson
De Montfort University, Leicester
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First published 1994 (print)
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Fourth edition published 2004 (print)
Fifth edition published 2007 (print)
Sixth edition published 2010 (print), 2011 (electronic)
Seventh edition published 2014 (print and electronic)
Eighth edition 2017 (print and electronic)
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ISBN:
978-1-292-11956-4 (print)
978-1-292-11959-5 (PDF)
978-1-292-20446-8 (ePub)
British Library Cataloguing-in-Publication Data
A catalogue record for the print edition is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Beardwell, Julie, editor. | Thompson, Amanda (Head of the Department
of Human Resource Management), editor.
Title: Human resource management : a contemporary approach / edited by Julie
Beardwell and Amanda Thompson, De Montfort University, Leicester.
Description: Eighth edition. | Harlow, United Kingdom : Pearson Education, 2017.
Identifiers: LCCN 2017007976 | ISBN 9781292119564 (print) | ISBN 9781292119595 (pdf) |
ISBN 9781292204468 (epub)
Subjects: LCSH: Personnel management.
Classification: LCC HF5549 .H78413 2017 | DDC 658.3–dc23
LC record available at https://lccn.loc.gov/2017007976
10 9 8 7 6 5 4 3 2 1
21 20 19 18 17
Print edition typeset in 9.5/12pt Sabon MT Pro by SPi Global
Printed in Slovakia by Neografia
NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION
BRIEF CONTENTS
Guided tour
Preface
Plan of the book
How to use this book
Contributors
Acknowledgements
xii
xv
xvi
xvii
xix
xxii
PART 1
HUMAN RESOURCE MANAGEMENT
AND ITS ORGANISATIONAL CONTEXT
Introduction to Part 1
1 An introduction to human resource
management
2 Strategic human resource management
3 Contextualising HRM
3
30
67
100
101
145
179
PART 3
DEVELOPING THE HUMAN RESOURCE
Introduction to Part 3
7 Learning and development
8 Leadership and management development
9 Organisational development
10 The employment relationship and employee
rights at work
343
11 Employee engagement
389
12 Performance management
425
13 Employee reward
458
14 Employee voice
508
2
PART 2
RESOURCING THE ORGANISATION
Introduction to Part 2
4 HRM and the labour market
5 Talent management
6 Managing equality and diversity
PART 4
THE EMPLOYMENT RELATIONSHIP
214
215
260
299
PART 5
COMPARATIVE HUMAN RESOURCE
MANAGEMENT
15 Comparative HRM in the context of
financialisation, financial crisis and Brexit
16 Employment relations in emerging
economies: China and India
588
Glossary of terms and abbreviations
Index
625
635
545
CONTENTS
Guided tour
Preface
Plan of the book
How to use this book
Contributors
Acknowledgements
xii
xv
xvi
xvii
xix
xxii
Introduction
Understanding the business context
Approaches to the strategy-making process
The rise of SHRM
Exploring the relationship between strategic
management and SHRM: The best-fit school
of SHRM
Limitations of the best-fit models of SHRM
The resource-based view of SHRM
Best-practice SHRM: high-commitment models
HRM and performance
SHRM and performance: The critique
Measuring the impact of SHRM on performance
Concluding comments
Summary
Case study: High road versus low road in the civil
aviation industry
References and further reading
PART 1
HUMAN RESOURCE MANAGEMENT
AND ITS ORGANISATIONAL CONTEXT
Introduction to Part 1
1
2
An introduction to human resource
management
Julie Beardwell
3
Objectives
3
Case study: Winning HRM practice: simply Business 4
Introduction
4
Definitions of HRM
5
The origins of HRM
7
Models of HRM
8
HRM and organisational performance
12
HRM in practice
17
The impact of HRM on the roles of HR
professionals
20
HR competence
23
Concluding comments
24
Summary
25
Case study: The future of work: the journey to 2022 26
References and further reading
27
2
Strategic human resource management
Heather Connolly and Julie Beardwell
30
Objectives
Case study: Taking the ‘low road’ in big business
30
31
3
32
33
34
38
39
45
47
52
54
57
58
60
60
62
63
Contextualising HRM
Audrey Collin with Julie Beardwell
67
Objectives
Case study: Muddled language hides the
effect of the gig economy
Introduction
The immediate context of HRM
The wider context of HRM
Wider contextual influences on HRM today
Ideas and theories in the wider context of HRM
Underlying assumptions
Alternative ways of thinking
Ethical issues in HRM
Concluding comments
Summary
Case study: BHS report lays bare failure and
culpability: Parliamentary inquiry lambasts
collapsed store chain’s ex-owner, buyer and its
‘directors, advisers and hangers-on’
References and further reading
67
68
69
72
76
79
80
81
82
92
93
94
95
96
viii
CONTENTS
6
PART 2
RESOURCING THE ORGANISATION
Introduction to Part 2
4
5
100
HRM and the labour market
Amanda Thompson
101
Objectives
Case study: More than 100,000 legal roles
to become automated
Introduction
The nature of labour markets
The supply of labour
Population
Workforce
Patterns of labour market participation
Labour demand
Changing patterns of demand
Changes in the occupational structure
of employment
Changing forms of employment
Labour market outcomes: The quality of
employment
Concluding comments
Summary
Case study: Companies struggle to fill quarter
of skilled jobs vacancies
References and further reading
101
102
102
103
105
106
112
115
120
128
130
132
133
140
141
142
143
Managing equality and diversity
Mike Noon
179
Objectives
Case study: Women in the boardroom
Introduction
Discrimination and legal protection in
the workplace
Why is inequality a problem and why should
managers be concerned with it?
What are the embedded and deep-rooted causes
of the problems of equality and diversity
within an organisation?
Two problems with institutional discrimination
Using equality and diversity policies to deal with
the problems
Devising equality and diversity policies
Sameness and difference
Long and short agendas
The process of discrimination in an organisation
Concluding comments
Summary
Case study: Employees of conscience?
References and further reading
179
180
180
181
186
191
193
194
200
204
205
205
208
208
210
211
PART 3
DEVELOPING THE HUMAN RESOURCE
Introduction to Part 3
214
Talent management
Julie Beardwell
145
Objectives
Case study: Talent management in
the Red Arrows
Introduction
Defining talent management
Strategic talent management
Attracting talent
Defining the talent required
Recruitment methods
Selecting talent
Retaining talent
Developing talent
Concluding comments
Summary
Case study: Staff retention and staying power:
Nissan builds on loyalty at Sunderland plant
References and further reading
145
146
146
147
148
149
152
153
156
164
167
174
175
176
177
7
Learning and development
Mairi Watson and Jim Stewart
215
Objectives
Case study: From business strategy to training plan
Introduction
The strategic importance of learning and
development for organisations
Individual learning and development
Theories of learning
Theories of the process of development
Learning and development: The organisational
context
Learning and development: The national
perspective
Concluding comments
Summary
Case study: Learning IT systems
References and further reading
215
216
216
217
218
224
229
231
249
254
254
255
256
8
9
Leadership and management
development
Mairi Watson and Deborah Price
260
Objectives
Case study: Saatchi chief’s comments on
‘unambitious’ women come under fire from
ad execs
Introduction
Defining leadership and management
development (LMD)
The purposes of LMD
Developing an LMD strategy
International leadership and management
development
The design of international leadership and
management development programmes
LMD in different contexts
The future for LMD: The need for new thinking
and new practices?
Concluding comments
Summary
Case study: In the NHS we Trust?
References and further reading
260
261
262
262
265
267
284
287
289
292
292
293
294
295
Organisational development
Mairi Watson
299
Objectives
Case study: World asks just how the Brits do it
Introduction
Definitions and development of OD
A brief history of OD
OD today: The last 10 years
The theories of OD
The techniques and practices of OD
OD: Strategy, structure and culture
Concluding comments
Summary
Case study: A whole system event for real-time
strategic change; use of African-influenced
facilitation through lekgotla
References and further reading
299
300
301
303
304
310
312
315
328
335
335
336
336
PART 4
THE EMPLOYMENT RELATIONSHIP
Introduction to Part 4
ix
Objectives
Case study
Introduction
Distinguishing contractual and statutory
employment rights
The importance of the contract of employment
Formation and the contract of employment
Continuation: Discrimination in employment
Termination of the employment contract
Enforcement of contractual and statutory
employment rights
Contractual rights and wrongs?
Current issues
Conclusion
Summary
Case study: Age discrimination more widespread
than sexism in the City
References and further reading
343
344
344
346
348
349
366
367
373
378
379
382
383
385
386
11 Employee engagement
Julia Pointon
389
Objectives
Case study: Alcoa Power and Propulsion
Introduction
Definitions from the practitioner literature
Definitions from the academic literature
Characteristics of engaged employees
Employee disengagement
Employee engagement and related concepts
Employee engagement as an exchange process
Employee engagement and psychological
well-being
Organisational drivers of engagement
Organisational benefits of employee engagement
Employee engagement and the older worker
Measuring employee engagement
Organisational strategies for enhancing employee
engagement
Governmental strategies for enhancing
employee engagement
Patterns of engagement across the world
Summary
Case study: Engaging employees at Tasty Catering
References and further reading
389
390
391
391
392
393
395
396
399
401
402
403
407
408
411
413
414
417
418
422
12 Performance management
342
10 The employment relationship and
employee rights at work
Alan J. Ryan
CONTENTS
343
Deborah Price
425
Objectives
Case study: Mouldaplas
Introduction
The history of performance management
The performance imperative: Why manage
performance?
425
426
427
427
428
x
CONTENTS
What is performance management?
Performance management in practice
Approaches to performance appraisal
Types of performance appraisal
Limitations of performance measurement
Performance management or surveillance?
Collaborative performance management
Green HRM and performance management
Concluding comments
Summary
Case study: Performance improvement at TRW
References and further reading
430
432
435
436
439
441
442
448
451
452
453
454
13 Employee reward
Amanda Thompson and Alan J. Ryan
458
Objectives
Case study: City leaders urge radical reforms of
‘unfair’ executive pay
Introduction
The historical and theoretical foundations of
employee reward
The development of reward systems
The design of reward systems and persistent
debates
Employee reward in the contemporary era
Components of reward
Reward management and the emergence of
strategic approaches to reward
Strategic reward in practice
Factors influencing organisational approaches to
reward practice and pay determination
Gender pay reporting
The Equality Act 2010 (EqA), ss. 64–80
National Minimum Wage Regulations 1999
Working Time Regulations 1998
Internal/organisational factors and the influence
of sector
Pay determination – internal or external focus?
Devising pay structures
Pay progression
Concluding comments
Summary
Case study: Zizzi cuts staff perks as minimum
wage increases
References and further reading
458
459
459
460
461
463
467
468
474
476
479
482
483
484
486
487
490
491
497
502
502
504
505
14 Employee voice
Peter Butler
508
Objectives
508
Case study: Junior doctors reject call to maintain
paediatrics during strike
509
Introduction
509
Definitions
Employee involvement
Participation
The practice of voice in the workplace
Downward communication
Upward problem-solving and team-working
From team-working to high-performance
management
The impact of HPM on organisational performance
Representative participation
Trade union representation
Voice and the demise of collective bargaining
Trade union decline: Rationale
Opportunities for renaissance? Trade union
voice under New Labour (1997–2010):
‘Fairness, not favours’
Statutory trade union recognition: A critique
Trade union voice under the Coalition (2010–15)
and Conservative (2015–) governments
Trade union voice and membership loss:
Strategies for renewal
Boosting trade union voice: Servicing and organising
Enter partnership
Non-union systems of employee voice: A unitary
approach to collective representation?
Works councils and consultation in the
European Union
The European Works Council Directive
The Information and Consultation Directive
Concluding comments
Summary
Case study: ‘Voice’ issues in a retail fashion
organisation
References and further reading
510
511
512
514
515
516
517
518
518
519
519
521
521
523
523
524
524
525
527
531
531
533
535
536
537
538
PART 5
COMPARATIVE HUMAN RESOURCE
MANAGEMENT
Introduction to Part 5
544
15 Comparative HRM in the context
of financialisation, financial crisis
and Brexit
Ian Clark
545
Objectives
545
Case study: The varied reaction of multinational
car producers to Brexit?
546
Introduction
546
CONTENTS
Comparative and international HRM: The field
of scholarship
547
Contemporary contexts for comparative HRM:
Financialisation, financial crisis, ‘rule making’
and ‘Brexit’
553
National patterns of employment and HRM:
The USA, Japan and Germany
558
Summary
583
Case study: Toyota committed to Japan
584
Case study: Mercedes-Benz in Alabama
584
References and further reading
585
Introduction
Comparative capitalism in Asia
China: State-led capitalist model
India: State-guided capitalist model
China and India: A comparative assessment
Summary
Case study: Organising informal workers in India:
Failures and opportunities
References and further reading
Glossary of terms and abbreviations
Index
16 Employment relations in emerging
economies: China and India
Anita Hammer
588
Objectives
Case study: New skills policy, patterns of skill
formation and firms’ strategies in India
588
589
Lecturer Resources
For password-protected online resources tailored to
support the use of this textbook in teaching, please visit
www.pearsoned.co.uk/beardwell
ON THE
WEBSITE
xi
590
591
593
605
616
620
621
622
625
635
GUIDED TOUR
CHAPTER 1
AN INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT
JULIE BEARDWELL
Objectives

To define human resource management (HRM).

To explore the origins of HRM.

To review and evaluate the main models of HRM.

To explore the association between HRM and business performance.


To explore HRM in practice and the impact of recession and recovery on
HRM practice.
To review the impact of HRM on the changing roles of human resources
professionals.
Objectives
Provide an overview of the topics to be covered
in each chapter, giving a clear indication of what
you should expect to learn.
MODELS OF HRM
9
Political
forces
Cultural
forces
Economic
forces
Mission
and
strategy
Firm
Organisation
structure
Figures
Are used to illustrate key points,
models, theories and processes.
Human
resource
management
Figure 1.1 The matching model of HRM.
Source: Devanna et al. (1984) in Fombrun et al. (1984: 35); reproduced with permission.
The matching model is closely allied with the ‘hard’ interpretation of HRM, that is, the deployment
of human resources to meet business objectives. Two assumptions underpin this model. The first is
that the most effective means of managing people will vary from organisation to organisation and
is dependent on organisational context. The second assumption is that of unitarism, that is, the
assumption that conflict, or at least differing views, cannot exist in the workplace because everyone
(managers and employees) is working to achieve the same goal, the success of the organisation.
This model has formed the basis of the ‘best fit’ school of HRM, discussed further in Chapter 2.
Universalism: More is better
A second influential model, illustrated in Figure 1.2, was developed by Beer et al. (1984) at Harvard
University. ‘The map of HRM territory’, as the authors …
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