Managing Human Resources

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1 Managing Human Resources

2 Managing Human Resources FIFTH EDITION Human Resource Management in Transition EDITED BY Stephen Bach and Martin R. Edwards A John Wiley and Sons, Ltd., Publication

3 2013 Stephen Bach, Martin Edwards and John Wiley & Sons Ltd Registered of ce John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom For details of our global editorial of ces, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at The right of the author to be identi ed as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher. Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at For more information about Wiley products, visit Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and speci cally disclaim any implied warranties of merchantability or tness for a particular purpose. It is sold on the understanding that the publisher is not engaged in rendering professional services and neither the publisher nor the author shall be liable for damages arising herefrom. If professional advice or other expert assistance is required, the services of a competent professional should be sought. Library of Congress Cataloging-in-Publication Data Managing human resources : human resource management in transition / edited by Stephen Bach and Martin R. Edwards. 5th ed. p. cm. Includes bibliographical references and index. ISBN (pbk.) ISBN (ebk) ISBN (ebk) ISBN (ebk) 1. Personnel management Great Britain. I. Bach, Stephen, II. Edwards, Martin R. HF G7M dc Set in 11/13pt BemboStd by MPS Limited, Chennai, India. Printed in Great Britain by CPI Group (UK) Ltd, Croydon, CR0 4YY

4 Contents Notes on Contributors List of Figures List of Tables List of Boxes vii ix x xi Part I Introduction 1 1. Human Resource Management in Transition Martin R. Edwards and Stephen Bach 3 2. Human Resource Management and Performance 18 Paul Boselie 3. Legal Aspects of the Employment Relationship 37 Graeme Lockwood and Kevin Williams Part II Context Corporate Governance and Human Resource Management 61 Andrew Pendleton and Howard Gospel 5. The International Human Resource Function 79 Tony Edwards and Anthony Ferner 6. Customer Service Work, Employee Well-being and Performance 100 Stephen Deery and Vandana Nath Part III Resourcing and Development Recruitment and Selection 125 Jane Bryson, Susan James and Ewart Keep

5 vi Contents 8. Work Life Balance: The End of the Overwork Culture? 150 Janet Walsh 9. Skills and Training 178 Irena Grugulis 10. HRM and Leadership 198 Deanne N. Den Hartog and Corine Boon Part IV Performance and Rewards Performance Management 221 Stephen Bach 12. Remuneration Systems 243 Ian Kessler 13. Employee Involvement and Voice 268 Adrian Wilkinson, Tony Dundon and Mick Marchington 14. Employee Representation 289 Stephanie Tailby Part V Process and O utcomes Outsourcing and Human Resource Management 317 Virginia Doellgast and Howard Gospel 16. Employee Engagement: An Evidence-based Review 336 Riccardo Peccei 17. HRM and Employee Well-being 364 Michael Clinton and Marc van Veldhoven 18. Employer Branding: Developments and Challenges 389 Martin R. Edwards Index 411

6 Notes on Contributors Stephen Bach, Professor of Employment Relations, Department of Management, King s College London Corine Boon, Assistant Professor, Amsterdam Business School, University of Amsterdam Paul Boselie, Professor in Strategic Human Resource Management (SHRM), Utrecht School of Governance, Utrecht University and Associate Professor in SHRM, Department of Human Resource Studies, Tilburg University Jane Bryson, Associate Professor in Human Resource Management, Victoria Management School, Victoria University of Wellington Michael Clinton, Lecturer in Work Psychology and HRM, Department of Management, King s College London Stephen Deery, Professor of Human Resource Management, Department of Management, King s College London Deanne N. Den Hartog, Professor of Organizational Behaviour, Amsterdam Business School, University of Amsterdam Virginia Doellgast, Lecturer in Comparative Employment Relations, Department of Management, London School of Economics Tony Dundon, Senior Lecturer in Employment Relations and HRM, Department of Management, National University of Ireland, Galway Martin R. Edwards, Senior Lecturer in HRM and Organizational Psychology, Department of Management, King s College London Tony Edwards, Professor in Comparative HRM, Department of Management, King s College London Anthony Ferner, Professor of International Human Resource Management, Leicester Business School, De Montfort University Howard Gospel, Professor of Management and Senior Research Fellow, Department of Management, King s College London

7 viii Notes on Contributors Irena Grugulis, Professor of Employment Studies, Durham Business School, University of Durham Susan James, Assistant Director of SKOPE and Associate Fellow, Pembroke College and St. Anne s College, Oxford Ewart Keep, Deputy Director of SKOPE, School of Social Sciences, Cardiff University Ian Kessler, Professor of Public Sector Management, Department of Management, King s College London Graeme Lockwood, Senior Lecturer in Law, Department of Management, King s College London Mick Marchington, Professor of Human Resource Management, Manchester Business School, University of Manchester Vandana Nath, Teaching Fellow in Human Resource Management, Department of Management, King s College London Riccardo Peccei, Professor of Organizational Behaviour and Human Resource Management, Department of Management, King s College London Andrew Pendleton, Professor of Human Resource Management, York Management School, University of York Stephanie Tailby, Professor of Employment Studies, Bristol Business School, University of the West of England Marc Van Veldhoven, Professor of Work, Health & Well-Being, Department of Human Resource Studies, Tilburg University Janet Walsh Professor in Human Resource Management, Department of Management, King s College London Adrian Wilkinson, Professor and Director of the Centre for Work, Organization and Wellbeing, Grif th University, Australia Kevin Williams, Reader in law, Shef eld Hallam University

8 Figures 2.1 HRM activities in relation to HRM outcomes and performance The international dimension to the HR function The monitoring of HR outcomes The monitoring of HR outcomes across countries Percentage of employed people working more than 45 hours per week, Full-time employment - selected European countries, Percentage of establishments with exible work and paid leave policies, Perceived availability of exible working arrangements (manager and employee reports) People management-performance causal chain The Process Model of HRM Pay and the job Types of payment system The escalator of participation Outsourcing and offshoring Overall framework of antecedents and outcomes of employee work engagement The circumplex model of subjective well-being (Warr 1990) 372

9 Tables 2.1 The VRIO framework Discrimination claims to employment tribunals Compensation awards by tribunals by jurisdiction Automatically unfair reasons for dismissal Ritzer s (2004) dimensions of McDonaldized service production R&S focus of the three main disciplines Recent research on selection methods used by UK employers Flexible work arrangements Job evaluation weighting scheme, National Health Service Agenda for Change NHS pay: Pay and job weight Proportion of low paid workers by country Contrasting meanings of participation Antecedents of employee work engagement: Summary of meta-analytic results Outcomes of employee work engagement: Summary of meta-analytic results Features of employer and employee branding 395

10 Boxes 6.1 A look at Abercrombie & Fitch Migrant workers project, London, UNITE The hairdressing salon Some examples of organisational initiatives directed at improving and/or maintaining employee well-being 382

Managing Human Resources

Managing Human Resources Managing Human Resources FIFTH EDITION Human Resource Management in Transition EDITED BY Stephen Bach and Martin R. Edwards A John Wiley and Sons, Ltd., Publication 2013 Stephen