Rory Donnelly, Manchester Business School

‘This is a compulsory, benchmark text for all students embarking on a course
in HRM. The focus on skills is excellent and provides students with rich insights
into the application of HRM in real organisational contexts.
It is one of the best, contemporary HRM textbooks available.’
Edel Conway, Dublin City University Business School

Keeping you at the cutting edge of the field, this market-leading text provides:
• A contemporary and strategic analysis of all the key areas of HRM practice
• Over 150 engaging ‘Window on Practice’ illustrations of HRM in action in organisations
such as Barclays, PricewaterhouseCoopers and Jamie Oliver’s Fifteen
• ‘Focus on Skills’ sections develop specific work-based people management skills, such
as interviewing for selection and appraisal
And new to this edition:
• The latest debates in the field: human capital measurement, the changing HR function,
and the future of work
• The most recent developments in practice: HR information systems, continuous
professional development, and coaching skills

Cover image: Andy Roberts/Getty Images

• International examples explore issues that cross national and cultural boundaries

Written from a practical perspective in a clear and
engaging style, this book is highly valued as an introduction to HRM for undergraduate, postgraduate and
professional programmes, including the CIPD diploma.
Derek Torrington is Emeritus Professor of Management,
University of Manchester.
Laura Hall and Stephen Taylor are both Senior Lecturers
in HRM at Manchester Metropolitan University, as well as

National Examiners for the CIPD.

HUMAN RESOURCE MANAGEMENT

‘This is an excellent and highly engaging text. It is clearly written and makes
good use of real life examples, research findings, case studies and opportunities for web-based learning. I would certainly recommend this textbook to
students and HRM professionals alike.’

SEVENTH EDITION

HUMAN RESOURCE
DEREK TORRINGTON
MANAGEMEN
MANAGEMENT
LAURA HALL
STEPHEN TAYLOR

7th EDITION
TORRINGTON
HALL
TAYLOR

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HUMAN RESOURCE
MANAGEMENT
Visit the Human Resource
Management, seventh edition
Companion Website at
www.pearsoned.co.uk/torrington
to find valuable student learning
material including:

• Over 250 multiple choice
questions to test your
understanding

• Extra case studies and exercises
• Extensive links to valuable
resources on the web

• An online glossary to explain
key terms


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Page ii

We work with leading authors to develop the
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bringing cutting-edge thinking and best learning
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seventh edition


HUMAN RESOURCE
MANAGEMENT
Derek Torrington
Laura Hall
Stephen Taylor


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Page iv

Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
Visit us on the World Wide Web at:
www.pearsoned.co.uk
First published in Great Britain under the Prentice Hall Europe imprint in 1987
Second edition published 1991
Third edition published 1995
Fourth edition published 1998
Fifth edition published 2002
Sixth edition published 2005
Seventh edition published 2008

© Prentice Hall Europe 1987, 1991, 1995, 1997
© Pearson Education Limited 2002, 2005, 2008
The rights of Derek Torrington, Laura Hall and Stephen Taylor to be identified
as authors of this work have been asserted by them in accordance with the
Copyright, Designs and Patents Act 1988.
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,
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ISBN: 978-0-273-71075-2
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The publisher’s policy is to use paper manufactured from sustainable forests.


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Page v

Brief contents

Guided tour

xvi

Preface

xix

Acknowledgements

xxi

Part 1 Introduction

1

1. The nature of human resource management

3

2. Strategic human resource management

30

3. Planning: jobs and people


50

4. The international dimension

72

Part 1 Focus on skills

93

Part 2 Resourcing

105

5. Strategic aspects of resourcing

107

6. Contracts, contractors and consultants

123

7. Recruitment

145

8. Selection methods and decisions

167


9. Staff retention

191

10. Ending the contract

210

Part 2 Focus on skills

231

Part 3 Performance

251

11. Strategic aspects of performance

253

12. Organisational performance: knowledge and learning

271

13. Employee performance management

293

14. Leadership and change


317

15. Managing absence and attendance

337

Part 3 Focus on skills

357
v


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Page vi

Brief contents

vi

Part 4 Development

375

16. Strategic aspects of development


377

17. Context, competence and competencies

393

18. Learning and development

412

19. Career development

440

Part 4 Focus on skills

465

Part 5 Employee relations

483

20. Strategic aspects of employee relations

485

21. Employee involvement

510


22. Health, safety and welfare

526

23. Equality: the legal framework

547

24. Equal opportunities and diversity

569

25. Grievance and discipline

595

Part 5 Focus on skills

615

Part 6 Reward

631

26. Strategic aspects of reward

633

27. Salaries


653

28. Incentives

676

29. Pensions and benefits

697

Part 6 Focus on skills

716

Part 7 Emerging issues

737

30. Ethics and corporate social responsibility

739

31. Work-life balance

759

32. The changing HR function

782


33. Information technology and human capital measurement

807

34. The future of work

828

Part 7 Focus on skills

845

Glossary

858

Index

865


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Page vii


Supporting resources
Visit www.pearsoned.co.uk/torrington to find valuable online resources
Companion Website for students

•
•
•
•

Over 250 multiple choice questions to test your understanding
Extra case studies and exercises
Extensive links to valuable resources on the web
An online glossary to explain key terms

For instructors

• Complete, downloadable Instructor’s Manual
• Over 1,000 PowerPoint slides that can be downloaded and used for
presentations

• Testbank of question material
Also: The Companion Website provides the following features:

• Search tool to help locate specific items of content
• E-mail results and profile tools to send results of quizzes to instructors
• Online help and support to assist with website usage and troubleshooting
For more information please contact your local Pearson Education sales
representative or visit www.pearsoned.co.uk/torrington



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Pearson Custom publishing
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or via your local representative at: www.pearsoned.co.uk/replocator

viii


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Page ix

Contents

Guided tour

xvi

Summary propositions

46

Preface

xix

General discussion topics

46

Acknowledgements


xxi

Further reading

46

References

47

Part 1 Introduction
1 The nature of human resource
management
Human resource management for the
twenty-first century

1

3
4

3 Planning: jobs and people

50

The contribution and feasibility
of HR planning

51


The scope of human resource planning

53

Analysing the environment

54
58

Businesses, organisations and human
resource management

5

Defining human resource management

6

Forecasting future human resource
needs

11

Analysing the current situation and
projecting forward

61

Reconciliation, decisions and plans


65

The evolution of personnel and
HR management
HRM and the achievement of
organisational effectiveness

15

Summary propositions

69

Debates in HRM

16

General discussion topics

69

A philosophy of human resource
management

Further reading

70

25


References

70

Summary propositions

26

General discussion topics

27

Further reading

27

References

27

2 Strategic human resource
management
Strategic human resource management
and human resource strategy
The link between business and
HR strategy
Theoretical perspectives of strategic
human resource management


30
31
32
35

4 The international dimension

72

International human resource
management

75

Cultural differences in management

77

International communication and
coordination

83

Summary propositions

90

General discussion topics

90


Further reading

90

Web links

91

References

91
ix


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Contents

Part 1 Focus on skills
Interactive skill 1: Face-to-face skills

The recruitment methods compared


151

93

Recruitment advertising

151

Summary propositions

101

E-recruitment

155

General discussion topics

101

Recruiting overseas

158

Further reading

101

Employer branding


159

Web links

102

Control and evaluation

161

References

102

Correspondence

161

Review of Part 1

102

Shortlisting

163

Part 1 case study problem

104


Summary propositions

164

General discussion topics

164

Further reading

165

References

165

Part 2 Resourcing

105

5 Strategic aspects of resourcing

107

Responding to labour market trends

108

Analysing labour markets


111

Selection as a two-way process

168

Flexible resourcing choices

114

Ready made or home grown?

118

Selection criteria and the person
specification

169

Summary propositions

120

Choosing selection methods

171

General discussion topics

121


Selection methods

171

Further reading

121

Final selection decision making

186

References

121

Validation of selection procedures

187

Summary propositions

188

General discussion topics

188

Further reading


188

References

189

6 Contracts, contractors and
consultants

x

93

123

8 Selection methods and decisions 167

Contracts of employment

124

Working patterns

126

Flexible working hours

129


Atypical contractual arrangements

131

Turnover rates and trends

192

Consultants

137

The impact of staff turnover

194

Outsourcing

140

Turnover analysis and costing

196

Summary propositions

142

Staff retention strategies


200

General discussion topics

143

Summary propositions

206

Further reading

143

General discussion topics

207

References

143

Further reading

207

7 Recruitment

References


207

145

9 Staff retention

10 Ending the contract

191

210

Determining the vacancy

147

Internal recruitment

149

Unfair dismissal

211

Methods of recruitment

150

Constructive dismissal


225


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Contents

12 Organisational performance:
knowledge and learning

Compensation for dismissal

226

Wrongful dismissal

227

Notice

228

Organisational performance ‘initiatives’


272

Summary propositions

228

Learning organisations

273

General discussion topics

229

Knowledge management

281

Further reading

229

Managing knowledge

283

References

229


Summary propositions

289

Legal cases

230

General discussion topics

289

Further reading

289

References

290

Part 2 Focus on skills

231

Interactive skill 2: Selection interviewing

231

Practical exercise in selection
interviewing


243

Summary propositions

244

General discussion topics

244

Further reading

244

Web links

245

References

245

Review of Part 2

246

Part 2 case study problem

248


Part 3 Performance

251

11 Strategic aspects of performance 253
A change in perspective: from
employment to performance

254

Influences on our understanding
of performance

255

Do people-management processes
contribute to high performance?
How do HR policies and practices
affect performance?

256
259

13 Employee performance
management

271

293


Performance management and
performance appraisal

294

Stages in a performance management
system

299

Individual versus team performance
management

304

Implementation and critique of
performance management

306

360-Degree Feedback

308

Summary propositions

312

General discussion topics


313

Further reading

313

References

314

14 Leadership and change

317

Leadership and management

318

What are the traits of leaders and
effective leaders?

319

What is the ‘best way to lead’?
Leadership styles and behaviours

321
323


Current directions in HRM-performance
thinking

264

Major performance initiatives

265

Do leaders need different styles for
different situations?

Summary propositions

266

Do we really need heroes?

326

General discussion topics

267

Leadership and change

329

Further reading


267

Summary propositions

333

References

267

General discussion topics

334
xi


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Contents

Further reading

334


References

335

15 Managing absence and
attendance

393

National training framework

394

Competences and NVQs

399

Behavioural competencies

403

Summary propositions

409

General discussion topics

410

Further reading


410

References

410

The national context

338

The organisational context

340

Process and causes of absence

341

Managing for attendance

343

Summary propositions

354

General discussion topics

354


Further reading

354

The nature of learning

413

References

355

Practical characteristics of learning and
development

414

357

Methods of learning and development

420

Interactive skill 3: Appraisal interviewing

357

Evaluation of training and development


434

Summary propositions

368

Summary propositions

435

General discussion topics

369

General discussion topics

436

Further reading

369

Further reading

436

Web links

369


References

437

References

370

Review of Part 3

371

How and why are careers changing?

442

Part 3 case study problem:
Bakersfield University

372

Definitions and importance of career
development

446

Understanding careers

447


Individual career management

452

Organisational support for career
development

456

Summary propositions

461

General discussion topics

461

Further reading

461

References

462

Part 3 Focus on skills

Part 4 Development
16 Strategic aspects of
development


xii

337

17 Context, competence and
competencies

375

377

The national picture and strategy

379

Organisational strategy and HR
development strategy

382

18 Learning and development

19 Career development

412

440

The external labour market and HR

strategic integration

385

Training and development roles

386

Summary propositions

389

Interactive skill 4: Coaching and
presentation

465

General discussion topics

390

Summary propositions

477

Further reading

390

General discussion topics


478

References

390

Further reading

478

Part 4 Focus on skills

465


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Contents

Web links

478


References

545

References

478

Legal cases

546

Review of Part 4

479

Part 4 case study problem: Micropower

480

Part 5 Employee relations

483

23 Equality: the legal framework

547

Discrimination on grounds of sex or
marital status


549

Race discrimination

554

Disability discrimination

556

Discrimination on grounds of sexual
orientation

559

Discrimination on grounds of religion
or belief

561

Age discrimination law

562

Trade union discrimination

563

Part-time workers


564

20 Strategic aspects of employee
relations

485

Key trends in employee relations

486

Strategic choices

492

Union recognition and derecognition

497

The study of employee relations

503

International perspectives

504

Summary propositions


506

Fixed-term workers

565

General discussion topics

506

Ex-offenders

565

Further reading

506

Summary propositions

566

References

507

General discussion topics

567


510

Further reading

567

Terminology

511

References

568

Information sharing

513

Legal cases

568

Consultation

517

The legal duty to consult

519


Co-determination

522

Current employment experiences of
socially defined minority groups

570

Summary propositions

524

Different approaches to equality

576

General discussion topics

524

Implications for organisations

584

Further reading

524

Summary propositions


590

References

525

General discussion topics

590

Further reading

590

References

591

21 Employee involvement

22 Health, safety and welfare

526

24 Equal opportunities and diversity 569

HRM and health, safety and welfare

527


Health and safety law

529

Managing stress and emotional welfare

536

The Milgram experiments with obedience

597

Managing physical welfare

540

What do we mean by discipline?

600

Occupational health services

543

What do we mean by grievance?

602

Summary propositions


544

The framework of organisational justice

603

General discussion topics

544

Grievance procedure

608

Further reading

544

Disciplinary procedure

609

25 Grievance and discipline

595

xiii



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Contents

Are grievance and discipline processes
equitable?

Summary propositions

672

610

General discussion topics

673

Summary propositions

613

Further reading

673


General discussion topics

613

References

674

Further reading

613

Legal cases

674

References

614

28 Incentives
Part 5 Focus on skills

615

Interactive skill 5: Grievance and
disciplinary interviewing

615


Summary propositions

625

General discussion topics

626

Further reading

626

Web links

626

References

627

Review of Part 5

627

Part 5 case study problem:
Industrial disputes at British
Airways, 1997–2007

628


631

26 Strategic aspects of reward

677

The extent to which incentives are paid

681

Payment by results schemes

682

Disadvantages of PBR schemes

684

Performance-related pay

686

Skills-based pay

690

Profit sharing

691


Summary propositions

693

General discussion topics

694

Further reading

694

References

694
697

Pensions

698

633

Occupational pensions and HRM

706

Total reward


634

Sick pay

708

Reward strategies

637

Company cars

709

Setting base pay

643

London allowances

711

The elements of payment

646

Flexible benefits

712


The importance of equity

649

Summary propositions

713

Summary propositions

650

General discussion topics

714

General discussion topics

651

Further reading

714

Further reading

651

References


715

References

652

27 Salaries

xiv

Basic choices

29 Pensions and benefits

Part 6 Reward

676

Part 6 Focus on skills

716

653

Interactive skill 6: Negotiation

716

Salary structures


654

Summary propositions

732

Broadbanding

660

General discussion topics

732

Job evaluation

661

Further reading

732

Employee participation in job evaluation

666

Web links

733


The legal framework for pay and reward

667

References

733


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Contents

Review of Part 6

734

Part 6 case study problem: Cavendish
Hall Hotel

735

Part 7 Emerging issues


737

30 Ethics and corporate social
responsibility

739

The ethical dimension

740

Ethics and human resource
management

747

Ethics across national boundaries

750

Some current and developing ethical
dilemmas

751

Summary propositions

756

General discussion topics


757

Further reading

757

References

757

31 Work-life balance
Drivers for work-life balance

759
760

Summary propositions

802

General discussion topics

802

Further reading

803

Web link


803

References

803

33 Information technology and
human capital measurement

807

The contribution of technology to
effective and efficient HR provision

808

Measuring HR and human capital

812

Human capital reporting

823

Summary propositions

825

General discussion topics


825

Further reading

825

Web link

826

References

826

34 The future of work

828

The future demand for workers

829

The future supply of workers

834

The legislative context:
family-friendly law


762

Future contractual arrangements

838

Work-life balance practices

767

Summary propositions

842

Benefits of work-life balance

769

General discussion topics

843

Further reading

843

References

843


Barriers to, and problems with,
work-life balance

771

Summary propositions

778

General discussion topics

778

Further reading

778

References

779

Legal case

781

32 The changing HR function

782

Analysis of HR roles and structures


783

HR strategic role

786

Outsourcing HR

790

HR shared services

795

The role of line managers in HR

798

Critique of the development of HR
roles and structures

Part 7 Focus on skills

845

Interactive skill 7: Chairing meetings

845


Summary propositions

854

General discussion topics

854

Further reading

854

Web links

854

Review of Part 7

855

Part 7 case study problem:
Offshoring to India

856

Glossary

858

Index


865

799
xv


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Page xvi

Guided tour
NAVIGATION AND SETTING THE SCENE
The book is divided into seven parts, each of which
opens with a visual guide to the chapters and topics
covered.

Part 6 Reward

Reward is clearly central to the employment relationship. While there are plenty of people who enjoy
working and who claim that they would not stop working even if they were to win a large sum in a
lottery, most of us work in large part because it is our only means of earning the money we need to
sustain us and our families in the style to which we are accustomed. How much we are paid and in
what form is therefore an issue which matters hugely to us. These questions are also central for the
human resource management function because money spent on salaries, benefits and other forms
of reward typically accounts for well over half an organisation’s total costs. For commercial

organisations it is thus a major determinant of both profitability and competitive advantage. In the
public sector the cost of rewarding staff is determined by and, in turn helps determine, the level of
taxes that we pay.
For these reasons, to a greater extent than is the case in other areas of HR practice, the
management of reward is heavily constrained by the financial position of the organisation. The aim is
thus to design competitive reward packages which serve to attract, retain and motivate staff, while at
the same time keeping a lid on the costs so as to ensure the organisation’s commercial and financial
viability. This is not an easy task, and it is made harder because of the great significance that
employees themselves attach to their pay, and particularly to the level of pay they receive vis-à-vis
other people. Getting it wrong has major, negative consequences, because it can demotivate in quite
serious ways, leading to the departure of good performers, higher absence levels, less effort and the
deterioration of the organisation’s employee relations climate. Over time, of course, these too serve to
reduce an organisation’s effectiveness and damage its financial performance.

PART 6

In this part of the book we explore all the major elements that make up the reward package. In
Chapter 27 we will look at how salaries are determined and at how organisations go about deciding
how much each employee should be paid in comparison to others. In Chapter 28 our focus is on
incentives and bonus payments of one kind or another and in Chapter 29 on pensions and benefits.
Before these, in Chapter 26 we ask more general questions about reward practices and consider what
factors need to be taken into account when developing a coherent reward strategy.

REWARD
26 Strategic aspects of reward
27 Salaries
28 Incentives
29 Pensions and benefits
Part 6 Focus on skills
Interactive skill 6: Negotiation


632

Learning objectives enable you to focus on what
you should have learned by the end of the chapter.

C HA P T E R 32

THE CHANGING HR FUNCTION

2

Explore the extent to which the HR function operates strategically

3

Examine the extent of outsourcing and shared services and the benefits and
drawbacks of these approaches

4

Explore the role of line managers in HRM

5

Debate and critique the current developments in HR roles
and structures

W


xvi

Identify and explain current models relating to the roles and structure of the HR
function

EB

THE OBJECTIVES OF THIS CHAPTER ARE TO:
1

Follow the Web icon in the margin of the text
to find a range of resources on the website
(www.pearsoned.co.uk/torrington)
which will help you to check your understanding
of key topics


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Guided tour

AIDING YOUR UNDERSTANDING
Chapter 34 The future of work


Figures and Tables illustrate key concepts
and processes, visually reinforcing your learning.
Activity boxes allow you to review and apply
your learning at regular intervals throughout
the text.

Figure 34.1
Employee jobs:
by industry,
1978 (Quarter
2) and 2005
(Quarter 2)
Part 7 Emerging issues

(Source: ONS (2006a: 7))

and fishing account for just 200,000 jobs; energy and water for fewer still (see Figure 34.1).
The big growth areas have been in retailing, distribution, hotels and restaurants, finance,
business services, public administration, education and health. Employment in the financial services sector has grown especially quickly, more than doubling since 1978.
In the most recent years the biggest growth areas in terms of jobs have been in the
public sector. Public sector employment fell during the 1990s. Having peaked at 5.9 million in 1991, it reached a ‘low point’ of 5.1 million in 1998 before climbing back to 5.9
million again. Over 300,000 new jobs have been created in the NHS since 1998 and over
200,000 in education. The expansion of local and central government has led to the creation of 128,000 jobs, a further 45,000 being created in the police service (ONS 2006a,
p. 26). Another major employment trend since the 1970s has been a substantial growth
in the proportion of people working in small businesses. The small firms sector now
employs 55 per cent of the UK workforce.

SUMMARY PROPOSITIONS
32.1 For many years categorisations of the HR role have been proposed. These include
Tyson and Fell (1985); and Storey (1992). The most recent proposal is from Ulrich

and Brockbank (2005a) who identify these roles: employee advocate; human
capital developer; strategic partner; functional expert; and leader, with a compound
role.
32.2 Alongside these role definitions a three-legged HR department structure appears to
be evolving: a strategic/business partner group; an administrative/transactional
group, usually comprising shared services, e-HR and/or outsourcing; and a centre
of functional expertise group.
32.3 The strategic partner role has been most attractive to organisations. The extent to
which HR specialists are involved in HR strategy is influenced by the environment of the business, its culture, the perspective of the chief executive, HR board
membership and the qualities, characteristics and working relationships of the most
senior HR specialist.

ACTIVITY 34.1
Why do you think countries such as the UK have seen so great a transformation in
their industrial structure since the 1970s? Why are there so many fewer manufacturing

32.4 Whilst there have been some early problems with outsourcing, this continues to
be pursued by many organisations, and often involves cost savings and staff
reductions.

jobs and so many more jobs in the service sector? Why are organisations so much
more likely to employ small numbers of people than was the case fifty years ago?

32.5 Devolution of HR activities to line managers enables HR professionals to focus on
strategic issues. But line managers often do not have the required motivation, skills
or time to carry out HR activities effectively.

831

32.6 There are concerns that the focus on the business partner role has been at the

expense of the employee champion/advocate role, with the consequence that
employee well-being is compromised.
32.7 The current trends in HR roles and structure are fragmenting the HR function,
resulting in a lack of integration and consistency, and difficulties in effective
strategic HR.

Summary propositions recap and reinforce
the key points to take away from the chapter.
They also provide a useful revision tool.

GENERAL DISCUSSION TOPICS
1 Does it really matter whether the most senior HR person is on the board of directors, or are
personal work relationships, political alliances and personal track records more important?
2 ‘Outsourcing may be an effective solution in the medium term, but it brings short-term disruption and long-term damage to organisational capability and success.’ To what extent do
you agree or disagree with this statement?

Multiple choice questions on the Companion
Website give you the chance to check what you
have learnt and get instant feedback.

3 Debate the following comment: ‘There has always been a debate about the extent to which
day-to-day HR activities should be shared between the professional function and the line. In
essence nothing has really changed.’
802

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Guided tour

HUMAN RESOURCE
MANAGEMENT IN CONTEXT

Part 2 Resourcing

existing employees are made aware of their employer’s brand proposition too as so
much recruitment is carried out informally through word of mouth. Provided the
message is accurate and provided it is communicated effectively over time, the result
will be a ‘leveraging of the brand’ as more and more people in the labour market begin
to associate the message with the employer.

Windows on practice provides
a range of interesting and topical
illustrations of HRM in practice.

WINDOW ON PRACTICE
Like many fast food chains, Burger King and McDonald’s have found it hard to recruit
managers to run their restaurants. Such workplaces have long suffered from a poor
image in the labour market and lose out as a result in the recruitment of graduates and
junior managerial staff, many of whom would prefer to work pretty well anywhere else.

Part 5


Burger King reversed its fortunes to a great extent during 2002 and 2003 by running

CAS E S T U DY P RO BL E M

a shrewd recruitment advertising campaign rooted in an employer branding exercise.
The advertisements were strikingly designed and printed in colour to attract attention.
A small corporate logo was featured in one corner, but this was dwarfed by slogans

Focus on skills
appears at the end
of each part, offering
clear guidance and
a range of exercises
to help you develop
the skills required of
a Human Resource
Manager.

which set out what made working as a Burger King manager distinct. The focus was
on the following:

Industrial disputes at British Airways, 1997–2007

• The fact that the job was never dull

British Airways is an international company by any standards and, by 1990, was

•


the world’s most popular and most profitable airline, although this position was

The career development opportunities that were available to ambitious people

compromised after the events of September 2001, which had such a disastrous

• The relatively attractive salary package on offer

effect on air travel.

In the week after the first advertisement was placed in a local paper two hundred

Because of its extensive network and the salient position of Heathrow as the

people phoned for further details leading to the appointment of eight new managers.

world’s busiest airport, it was relatively straightforward for BA to become the most

The company’s equivalent old-style advertisement had only yielded twenty applicants,

popular airline, but achieving high profitability was more difficult. There was

none of whom were considered appointable.

overstaffing and the need for radical measures:

McDonald’s has also developed a bold approach to its recent recruitment
campaigns, making good use of the employer branding concept in a bid to rid itself of
The organisation had a bureaucratic style of management, damaging industrial relations
and a poor reputation for customer service . . . There was a drastic reduction in staff

numbers from 60,000 to 38,000. This was achieved by a combination of voluntary
severance and natural wastage. (Hopfl 1993, p. 117)

the image as a bad employer to work for. As the leading organisation in the fast food
market the company has had to suffer the ignomany of seeing the term ‘McJob’ being
included in the Oxford English Dictionary and being defined as a job which is badly
paid, unstimulating and having few prospects. It has, however, sought to turn this
notoriety to its advantage by running recruitment campaigns which flag up the
positive aspects of a career with McDonald’s (flexibility, fast career prospects, etc.)

In order to maintain market leadership the airline embarked on a famous

while incorporating the slogan ‘Not bad for a McJob?’ In addition the company has

programme of staff training to develop commitment to customer service, and the

revamped its selection procedures so that would-be staff at all levels experience a day

quality of service to the customer improved markedly, so that British Airways was

working in a restaurant before they are offered a job. This has the twin advantages of

able to maintain its premier position despite ever-increasing competition.

ensuring that they know what to expect and do not accept a job on false premises,

There were, however, mounting problems with the staff as the pressure on margins

while also helping recruiters to make better-informed judgement about their suitability.


continued. In 1996 a strike by pilots was narrowly averted, but 1997 brought one

Sources: IRS (2003b) and IRS (2006).

stoppage and the threat of another.
On 9 July a 72-hour strike by cabin staff began. It was an official stoppage called
by the Transport and General Workers Union following protracted negotiations and a

160

ballot among its members working for the airline. According to British Airways only
142 cabin crew formally joined the strike, but 1,500 (compared with a normal daily
average of 120) reported sick – a novel strategy! The number that reported for work
as usual was 834.
The management reaction was to announce that all strikers would forfeit travel

Part 4

FOCUS ON SKILLS

perks and promotion prospects for three years. Film was also taken of strikers on
picket lines. The threats were later withdrawn and the filming was stopped. The
situation was complicated by the existence of a rival union, Cabin Crew 89,

Case study problems at the end of
each part help consolidate your learning
of major themes by applying them to
real-life examples.

which had broken away from the TGWU in 1989. This union, known as CC89,

supported the management position and all its members worked normally through
the stoppage.
Another interesting feature of the dispute was reported by The Times:

INTERACTIVE SKILL 4: COACHING
AND PRESENTATION

628

A central function of HRM is to enable people to learn. There
are many ways to do this, especially with the development of
technical aids, but here we concentrate on the face-to-face
learning situations of coaching and presentation. Many
people visualise teaching as a process in which someone
who knows instructs someone who does not; but coaching
is enabling people to learn by a process that goes beyond
simple instruction. Learners frequently have to discover for
themselves, as this is the only way in which they will understand, and they frequently need the assistance of a coach to
be a sounding board for their uncertainties, to point out
things about their performance which they try to ignore
and to be a wise counsellor in times of difficulty or lack of
confidence.

Annotated weblinks
allow you to develop
your understanding of
relevant organisations.
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Preface

This book and its antecedent Personnel Management have been through many editions over
nearly thirty years, and it has steadily evolved in line with the development of the personnel/HR
function and the changing mix of students studying the subject.
We have been very glad to see the number of people buying the book increase year by year
and the steady growth of editions in foreign languages, with Russian, Portuguese and Mandarin
being the latest versions. It is also gratifying to see that the use of the text is equally strong at all
academic levels from specialist masters’, through MBA to all undergraduate and professional
courses, and that it is also being used by many practitioners.
For this seventh edition we have comprehensively updated and revised the material to
encompass legislative changes, emerging issues of professional and academic debate, findings
and commentary from our own recent research into contemporary business practices, and other
recent data and survey findings. Despite adding much new material we have maintained the
same general structure that has been appreciated in the past, taking each of the main functional
areas of HRM in turn. We have also been careful to retain all of the material that regularly
receives special commendation and requests for permission to copy.
We have moved the chapter on the international dimension into the first part of the book
to reflect its increasing importance and have introduced many more international cases and
examples, without lessening its main focus on British practice. Parts 3 and 5 have some
slight reorganisation and we have brought in two new chapters, one on the future of work and
the other on the changing HR function.

We have also increased the level of integration between the book and its companion website
www.pearsoned.co.uk/torrington, which has a great deal of supplementary material.
There is a range of assessment material and illustrations, as well as several design features
to assist readers further in using and learning from the text; these include:

•

Integrated Window on Practice Boxes provide a range of illustrative material throughout the
text, including examples of real company practice, survey results, anecdotes and quotes, and
court cases.

•

Integrated Activity Boxes encourage readers to review and critically apply their understanding at regular intervals throughout the text, either by responding to a question or by
undertaking a small practical assignment, individually or as part of a group. In recognition that
this text is used on both professional and academic courses, most of the exercises reflect the
fact that many students will have little or no business experience. Others may appear to
exclude students who are not in employment by asking readers to consider an aspect in their
own organisation; however, the organisation could be a college or university, the students’
union, a political body or sports team.

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Preface

•

Discussion Topics: at the end of each chapter there are two or three short questions intended
for general discussion in a tutorial or study group.

•

Case Study Problems: at the end of each Part we have included one short case study with
several questions to enable readers to review, link and apply their understanding of the
previous chapters to a business scenario.

•

Web Links are given as appropriate at various points in the text. These are either to the text’s
companion website, where there is a great deal of further material, or to other websites
containing useful information relating to the topics covered.

•

Annotated Readings for each chapter suggest further relevant readings, with guidance on
their value.

•
•

Each Part of the text includes a brief introduction to its scope and purpose.


•

There are full references at the end of each chapter to aid further exploration of the chapter
material, as required.

•

Each Part of the book concludes with a Focus on Skills dealing with the face-to-face situations that make up a large part of the HR manager’s day, followed by a review of the Part of
the text which they conclude.

•

The Website, www.pearsoned.co.uk/torrington, has more material, including further case
studies or exercises for each chapter and support for both tutor and student. The HRP exercise is directly referred to in Chapter 3, as this is an integral part of the chapter. This exercise
is a case study giving worked examples of how the techniques have been used.

Chapter objectives to open and Summary propositions to conclude each chapter set up the
readers’ expectations and review their understanding progressively.

Figure P.1 represents the contents of this book in the six main parts. After the four-chapter
introduction in Part 1 come the six parts, which each have the same format: strategic aspects,
operational features and a concluding Focus on skills which highlights an interaction that is
central to that set of operations. This is the HRM process, a strategic core with operational
specialist expertise and a strong focus on dealing with people face to face.

Figure P.1
The
Honeycomb
of HRM


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Acknowledgements

We are grateful to the following for permission to reproduce copyright material:
Ralph Windle for his poem ‘The Business Consultant’ from The Bottom Line: A Book of
Business Ballads by Bertie Ramsbottom published by Century Hutchinson (Random House)
1985. (Bertie Ramsbottom is the pen-name of Ralph Windle); Pearson Education Ltd for an
extract adapted from Finding and Keeping the Right People by Jon Billsberry 1996; Roisin
Woolnough for an extract adapted from ‘Racism reinforces the glass ceiling’ published in
The Guardian November 2000; IRS Ltd for an extract ‘Arriva, dramatic results on diversity’
by C. Wolff published in Equal Opportunities Review no. 160, January 2007 and News
International Syndication Ltd for an extract ‘BA is plunging toward disaster’ by Harvey
Elliott published in The Times July 1997. NF 2.2 from Managing Human Assets,Free Press,
(Beer, M., Spector, B., Lawrence, P.R., Quinn Mills, D. and Walton, R.E. 1984); NF 2.3 and
2.4 from Strategic Human Resource Management, John Wiley and Sons, (Fombrun, C.,
Tichy, N.M. and Devanna, M.A. 1984), Reprinted with permission of John Wiley and Sons,
Inc; NF 3.1 from Human Resource Strategic Visioning and Strategic Planning in ‘The Fall
and Rise of Strategic’, Harvard Business Review, (Mintzberg, H. 1994); NF 5.2 from
‘Strategic Determinants of Managerial Labour Markets’, (Sonnenfield et al, J.A. 1992),

Reprinted with permission of John Wiley and Sons, Inc; T6.3 based on: Labour Market:
Incidence of part-time employment, OECD Factbook 2007, Economic, Environmental and
Social Statistics, © OECD 2007; T7.2 from Methods of obtaining a job, Labour Market
Trends (2002) in Labour Market Spotlight, HMSO, reproduced under the terms of the clickuse licence; F12.1 from The Learning Company, McGraw-Hill, (Pedler, M., Burgoyne, J. and
Boydell, T. 1991), Reproduced with the kind permission of The McGraw-Hill Publishing
Company; F12.2 from Becoming a Learning Organisation, Addison-Wesley, (Swieringa, J.
and Wierdsma, A. 1992); T17.1 from Level Three Management Standards in Management Standards Organisation, www.managementstandards.org; T17.2 and 17.3 from The
Competant Manager, John Wiley, (Boyatzis, R. 1982), Reprinted with permission of John
Wiley and Sons, Inc; T18.1 from ‘Planned and Emergent Learning: A Framework and a
Method; Executive Development, Vol. 7, (Megginson, D. 1994), Republished with kind
permission of Emerald Group Publishing Limited; T20.2 from Categories of Management
Styles in Employee Relations in Strategies and Practice in the Management of Industrial
Relations: Blackwell, (Purcell, J. and Sisson, K. 1983); F24.1 from Conceptual model of
Diversity, Human Resource Management, Vol. 31, Nos 1 and 2, Spring/Summer, (Jackson,
B.W., LaFasto, F., Schultz, H.G. and Kelly, D. 1992).
We are grateful to the Financial Times Limited for permission to reprint the following
material:
Aviva says job cuts will save £250m annually, © Financial Times, 15 September 2006; When
the ideal applicant is too good to be true, © Financial Times, 12 January 2004.
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PART 1

INTRODUCTION
1 The nature of human resource management
2 Strategic human resource management
3 Planning: jobs and people
4 The international dimension
Part 1 Focus on skills
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Part 1 Introduction


The first part of the book has four chapters and a Focus on skills to
introduce various dimensions of what human resource management
involves. Chapter 1 sets the scene by describing the way in which human
resource management works today and then explains how it has evolved
to its present form over the hundred years of its existence as a separate
function of management. It shows that present-day practice is not only a
response to contemporary business demands and social expectations,
but also an amalgam of different features which built up throughout
the twentieth century and continue in the twenty-first. Later there is
a philosophy for human resource management. This is followed by
summaries of major debates in the field. Chapter 2 concentrates on
strategy in human resource management. We see the way in which
HR specialists make their strategic contribution, drawing a distinction
between a human resource strategy and strategic human resources.
Chapter 3 is different from the others in having a strong focus on the
analytical techniques and processes involved in planning relating to jobs
and people. Understanding issues is an essential feature of HR work, but
careful, systematic analysis is a vital underpinning for all decision and
action. Chapter 4 reviews the international dimension to human resource
management. Earlier versions of the book have had this chapter towards
the end of the book, but we have moved it nearer the beginning because
of its growing significance as a dimension of the work done by almost all
HR specialists. The Part 1 Focus on skills begins a series of treatments
of the way in which being effective in different face-to-face situations is a
fundamental feature of life for all in human resource management.

2