Handbook of Human Resource Management

 

h0MAN
kE500kCE
MANA0EMENT
PkACTICE
London and Philadelphia
Firsl pubIishod by Kogan Iago Linilod as A Hcn!|cc| cj Pcrscnncl Mcncgcmcni Prcciicc in 1977
Socond odilion 1984
Third odilion 1988
Fourlh odilion 1991
Fiflh odilion 1995
Sixlh odilion 1996
Sovonlh odilion pubIishod by Kogan Iago Linilod as A Hcn!|cc| cj Humcn Rcscurcc Mcncgcmcni Prcciicc
in 1999
Eighlh odilion 2001
Ninlh odilion 2003
Tonlh odilion 2006
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© MichaoI Arnslrong, 1977, 1984, 1988, 1991, 1995, 1996, 1999, 2001, 2003, 2006
Tho righl of MichaoI Arnslrong lo bo idonlifiod as lho aulhor of lhis vorI has boon assorlod by hin in
accordanco vilh lho Copyrighl, Dosigns and Ialonls Acl 1988.
BrItIsh LIbrary CataInguIng In PubIIcatInn Data
ACII rocord for lhis booI is avaiIabIo fron lho Brilish Library.
ISBN 0 7494 4631 5
LIbrary nI Cnngrcss CataIngIng-In-PubIIcatInn Data
Arnslrong, MichaoI, 1928-
A handbooI of hunan rosourco nanagononl praclico/MichaoI Arnslrong.÷10lh od.
p.cn.
IncIudos bibIiographicaI roforoncos and indox.
ISBN 0-7494-4631-5
1. IorsonnoI nanagononl÷HandbooIs, nanuaIs, olc. I. TilIo.
HF5549.17.A76 2006
658.3÷dc22
2005032487
Typosol by }oan Cussons Typosolling, Diss, NorfoII
Irinlod and bound in Groal Brilain by Canbridgo Univorsily Iross

Iisi cj jigurcs xtii
Iisi cj ic|lcs xxi
A|cui i|c cui|cr xxiii
Prcjccc xxt
PART I MANAGING PEOPLE
1 Human rcsnurcc managcmcnt 3
Hunan rosourco nanagononl dofinod 3, Hunan rosourco syslon 4,
ModoIs of HRM 5, Ains of HRM 8, IoIicy goaIs of HRM 10,
Characlorislics of HRM 11, Rosorvalions aboul HRM 15, HRM and
porsonnoI nanagononl 18, Hov HR inpacls on organizalionaI
porfornanco 20, HRM in conloxl 24
2 Human capItaI managcmcnt 29
Hunan capilaI nanagononl dofinod 29, Hunan capilaI nanagononl
and hunan rosourco nanagononl 30, Tho concopl of hunan capilaI 33,
Hunan capilaI nanagononl: praclico and slralogy 36, Hunan capilaI
noasurononl 37, Hunan capilaI roporling 47
3 RnIc nI thc HR IunctInn 53
Tho ovoraII roIo of lho HR funclion 54, Tho roIo of HR in faciIilaling and
nanaging chango 54, Varialions in lho praclico of HR 56, Organizing lho
HR funclion 57, MarIoling lho HR funclion 59, Iroparing, ¡uslifying and
prolocling lho HR budgol 60, Oulsourcing HR vorI 61, Sharod HR
sorvicos 63, Using nanagononl consuIlanls 64, EvaIualing lho HR
funclion 66
4 Thc rnIc nI thc HR practItInncr 71
Tho basic roIos 71, ModoIs of lho praclilionors of HR 76, Gaining supporl
and connilnonl 81, ElhicaI considoralions 84, IrofossionaIisn in HRM
85, Anbiguilios in lho roIo of HR praclilionors 87, ConfIicl in lho HR
conlribulion 88, Tho conpoloncios roquirod by HR profossionaIs 89
5 RnIc nI thc Irnnt-IInc managcr 93
Tho basic roIo 93, Tho Iino nanagor and poopIo nanagononl 94, Tho
rospoclivo roIos of HR and Iino nanagononl 95, Tho Iino nanagor's roIo
in inpIononling HR poIicios 97, Hov lo inprovo fronl-Iino nanagors as
poopIo nanagors 98
6 IntcrnatInnaI HRM 99
InlornalionaI HRM dofinod 99, Issuos in inlornalionaI HRM 99,
InlornalionaI organizalionaI nodoIs 100, Convorgonco and
divorgonco 101, CuIluraI divorsily 102, ThinI gIobaIIy and acl
IocaIIy 104, InlornalionaI HR poIicios 104, Managing oxpalrialos 104
PART II HUMAN RE5OURCE MANAGEMENT PROCE55E5
7 5tratcgIc HRM 113
Tho concopl of slralogy 113, Slralogic HRM dofinod 115, Ains of
slralogic HRM 116, Approachos lo slralogic HRM 117, InpIononling
slralogic HRM 121
8 HR stratcgIcs 123
HR slralogios dofinod 123, Iurposo 124, Tho dislinclion bolvoon
slralogic HRM and HR slralogios 124, Typos of HR slralogios 124,
Criloria for an offoclivo HR slralogy 129
 
9 DcvcInpIng and ImpIcmcntIng HR stratcgIcs 131
Iroposilions aboul lho dovoIopnonl procoss 132, LovoIs of slralogic
docision-naIing 132, Slralogic oplions and choicos 133, Approachos
lo HR slralogy dovoIopnonl 134, MolhodoIogy for slralogy
dovoIopnonl 140, Conducling a slralogic roviov 141, Solling oul lho
slralogy 143, InpIononling HR slralogios 143
10 HRM pnIIcIcs 147
Whal hunan rosourco poIicios aro 147, Why havo HR poIicios 147, Do
poIicios nood lo bo fornaIizod` 148, HR poIicy aroas 148, FornuIaling
HR poIicios 156, InpIononling HR poIicios 157
11 Cnmpctcncy-bascd HRM 159
Typos of conpoloncios 160, Conpoloncy franovorIs 161, Roasons for
using conpoloncios 163, Covorago of conpoloncios 164, Uso of
conpoloncios 165, DovoIoping a conpoloncy franovorI 167, Dofining
lochnicaI conpoloncios 169, Koys lo succoss in using conpoloncios 169,
EnolionaI inloIIigonco 170
12 KnnwIcdgc managcmcnt 173
KnovIodgo nanagononl dofinod 174, Tho concopl of InovIodgo 175,
Tho purposo and significanco of InovIodgo nanagononl 176,
Approachos lo InovIodgo nanagononl 176, KnovIodgo nanagononl
syslons 178, KnovIodgo nanagononl issuos 178, Tho conlribulion of
HR lo InovIodgo nanagononl 180
13 AnaIysIng rnIcs, cnmpctcncIcs and skIIIs 181
RoIo anaIysis 187, Conpoloncy anaIysis 193, SIiIIs anaIysis 198
PART III WORK AND EMPLOYMENT
14 Thc naturc nI wnrk 205
Whal is vorI` 205, Thoorios aboul vorI 206, OrganizalionaI faclors
affocling vorI 208, Changing pallorns of vorI 210, UnonpIoynonl 212,
Alliludos lo vorI 212, }ob-roIalod voII-boing 212
 
15 Thc cmpInymcnt rcIatInnshIp 215
Tho onpIoynonl roIalionship dofinod 215, Naluro of lho onpIoynonl
roIalionship 215, Basis of lho onpIoynonl roIalionship 217, Dofining lho
onpIoynonl roIalionship 217, Significanco of lho onpIoynonl
roIalionship concopl 218, Changos in lho onpIoynonl roIalionship 218,
Managing lho onpIoynonl roIalionship 218, Trusl and lho onpIoynonl
roIalionship 220
16 Thc psychnIngIcaI cnntract 225
Tho psychoIogicaI conlracl dofinod 225, Tho significanco of lho
psychoIogicaI conlracl 227, Tho naluro of lho psychoIogicaI conlracl 228,
Hov psychoIogicaI conlracls dovoIop 229, Tho changing naluro of lho
psychoIogicaI conlracl 231, Tho slalo of lho psychoIogicaI conlracl 233,
DovoIoping and nainlaining a posilivo psychoIogicaI conlracl 234, Tho
slalo of lho psychoIogicaI conlracl 2004 235
PART IV ORGANIZATIONAL BEHAVIOUR
17 CharactcrIstIcs nI pcnpIc 239
IndividuaI difforoncos 239, Alliludos 244, InfIuoncos on bohaviour
al vorI 244, Allribulion lhoory ÷ hov vo naIo ¡udgononls aboul
poopIo 245, Orionlalion lo vorI 246, RoIos 247, InpIicalions for HR
spociaIisls 248
18 MntIvatInn 251
Tho procoss of nolivalion 252, Typos of nolivalion 253, Molivalion
lhoory 254, InslrunonlaIily lhoory 254, Conlonl (noods) lhoory 255,
Irocoss lhoory 258, Horzborg's lvo-faclor nodoI 262, Tho roIalionship
bolvoon nolivalion, ¡ob salisfaclion and nonoy 263, }ob salisfaclion 264,
Molivalion and nonoy 267, Molivalion slralogios 268
19 OrganIzatInnaI cnmmItmcnt and cngagcmcnt 271
Tho concopls of connilnonl and ongagononl 271, OrganizalionaI
connilnonl 273, InfIuoncos on connilnonl and onpIoyoo
salisfaclion 279, Engagononl 281
 
20 Hnw nrganIzatInns IunctInn 283
Basic considoralions 283, Organizalion lhoorios 283, Organizalion
slrucluro 288, Typos of organizalion 289, OrganizalionaI procossos 292
21 OrganIzatInnaI cuIturc 303
Dofinilions 303, Tho significanco of cuIluro 305, Hov organizalionaI
cuIluro dovoIops 306, Tho divorsily of cuIluro 306, Tho conpononls of
cuIluro 307, CIassifying organizalionaI cuIluro 309, Assossing
organizalionaI cuIluro 311, Moasuring organizalionaI cIinalo 312,
Approprialo cuIluros 313, Supporling and changing cuIluros 314
PART V ORGANIZATION, DE5IGN AND DEVELOPMENT
22 OrganIzatInn dcsIgn 319
Tho procoss of organizing 319, Ain 320, Conducling organizalion
roviovs 321, Organizalion anaIysis 321, Organizalion diagnosis 322,
Organizalion pIanning 324, RosponsibiIily for organizalion dosign 325
23 Jnb dcsIgn and rnIc dcvcInpmcnt 327
}obs and roIos 327, Faclors affocling ¡ob dosign 328, }ob dosign 330, }ob
onrichnonl 332, SoIf-nanaging loans 333, High-porfornanco vorI
dosign 334, RoIo dovoIopnonl 334
24 OrganIzatInnaI dcvcInpmcnt, changc and transInrmatInn 337
Whal is organizalionaI dovoIopnonl` 337, Organizalion
dovoIopnonl 338, Chango nanagononl 343, OrganizalionaI
lransfornalion 352, DovoIopnonl and chango procossos 355
PART VI PEOPLE RE5OURCING
IoopIo rosourcing dofinod 359, IoopIo rosourcing and HRM 359,
IIan 361
25 Human rcsnurcc pIannIng 363
Tho roIo of hunan rosourco pIanning 363, Ains of hunan rosourco
pIanning 368, Tho procoss of hunan rosourco pIanning 368, Rosourcing
slralogy 371, Sconario pIanning 372, Eslinaling fuluro hunan rosourco
roquirononls 373, Labour lurnovor 375, Aclion pIanning 382, Tho
conlribulion of HR lo hunan rosourco pIanning 388
 
26 TaIcnt managcmcnt 389
TaIonl nanagononl dofinod 390, Tho oIononls of laIonl
nanagononl 390, Croaling a groal pIaco lo vorI 394, Allraclion
slralogios 395, Rolonlion slralogios 397, Caroor nanagononl 399,
TaIonl nanagononl for InovIodgo vorIors 407, TaIonl nanagononl
in praclico 407
27 RccruItmcnt and scIcctInn 409
Tho rocruilnonl and soIoclion procoss 409, Dofining roquirononls 409,
Allracling candidalos 414, Advorlising 416, E-rocruilnonl 420,
Oulsourcing rocruilnonl 423, EducalionaI and lraining
oslabIishnonls 424, AppIicalion forns 425, Sifling appIicalions 425,
SoIoclion nolhods 429, Typos of inlorviovs 430, Assossnonl conlros 430,
GraphoIogy 431, Choico of soIoclion nolhods 432, Inproving lho
offoclivonoss of rocruilnonl and soIoclion 432, Roforoncos,
quaIificalions and offors 434, FinaI slagos 436
28 5cIcctInn IntcrvIcwIng 439
Iurposo 439, Advanlagos and disadvanlagos of inlorviovs 440,
Tho naluro of an inlorviov 441, Inlorvioving arrangononls 442,
Iroparalion 443, Tining 444, IIanning and slrucluring inlorviovs 444,
Inlorvioving approachos 445, Inlorviov lochniquos ÷ slarling and
finishing 450, Inlorvioving lochniquos ÷ asIing quoslions 450, SoIoclion
inlorvioving sIiIIs 457, Coning lo a concIusion 458, Dos and don'ls of
soIoclion inlorvioving 459
29 5cIcctInn tcsts 461
IsychoIogicaI losls: dofinilion 461, Iurposo of psychoIogicaI losls 461,
Characlorislics of a good losl 462, Typos of losl 463, Inlorproling losl
rosuIls 467, Choosing losls 468, Tho uso of losls in a soIoclion
procoduro 468
30 IntrnductInn tn thc nrganIzatInn 471
Induclion dofinod 471, Why laIing caro aboul induclion is inporlanl 472,
Rocoplion 473, Docunonlalion 474, Conpany induclion ÷ iniliaI
briofing 475, Inlroduclion lo lho vorIpIaco 475, FornaI induclion
coursos 476, On-lho-¡ob induclion lraining 477
 
31 RcIcasc Irnm thc nrganIzatInn 479
GonoraI considoralions 479, Rodundancy 482, OulpIacononl 485,
DisnissaI 487, VoIunlary Ioavors 490, Rolirononl 490
PART VII PERFORMANCE MANAGEMENT
32 Thc basIs nI pcrInrmancc managcmcnt 495
Iorfornanco nanagononl dofinod 495, Ains of porfornanco
nanagononl 496, Characlorislics of porfornanco nanagononl 496,
Undorslanding porfornanco nanagononl 497, Guiding principIos of
porfornanco nanagononl 499, Iorfornanco appraisaI and porfornanco
nanagononl 500, Viovs on porfornanco nanagononl 500
33 Thc prnccss nI pcrInrmancc managcmcnt 503
Iorfornanco nanagononl as a procoss 503, Iorfornanco nanagononl as
a cycIo 503, Iorfornanco agroononls 504, Managing porfornanco
lhroughoul lho yoar 508, Rovioving porfornanco 509, Raling
porfornanco 512, DoaIing vilh undor-porfornors 515, Inlroducing
porfornanco nanagononl 517
34 360-dcgrcc Iccdback 521
360-dogroo foodbacI dofinod 521, Uso of 360-dogroo foodbacI 522,
RalionaIo for 360-dogroo foodbacI 523, 360-dogroo foodbacI ÷
nolhodoIogy 524, DovoIopnonl and inpIononlalion 526, 360-dogroo
foodbacI ÷ advanlagos and disadvanlagos 527, 360-dogroo foodbacI ÷
criloria for succoss 528
PART VIII HUMAN RE5OURCE DEVELOPMENT
35 5tratcgIc human rcsnurcc dcvcInpmcnt 533
Slralogic HRD dofinod 533, Slralogic HRD ains 534, Conpononls of
HRD 534, HRD and HRM 535, Tho procoss of Ioarning and
dovoIopnonl 535, Slralogios for HRD 536, Hunan rosourco dovoIopnonl
phiIosophy 537
36 OrganIzatInnaI IcarnIng and thc IcarnIng nrganIzatInn 539
OrganizalionaI Ioarning 540, Tho Ioarning organizalion 543
 
37 Hnw pcnpIc Icarn 549
Loarning dofinod 549, Tho Ioarning procoss 550, Loarning lhoory 550,
Loarning slyIos 552, Loarning lo Ioarn 554, Tho Ioarning curvo 554, Tho
nolivalion lo Ioarn 555, Tho inpIicalions of Ioarning lhoory and
concopls 556
38 LcarnIng and dcvcInpmcnt 559
Loarning 559, DovoIopnonl 570, Training 575
39 E-IcarnIng 583
Whal is o-Ioarning` 583, Ain of o-Ioarning 584, Tho lochnoIogy of
o-Ioarning 584, Tho o-Ioarning procoss 585, Tho businoss caso for
o-Ioarning 586, DovoIoping o-Ioarning procossos 588
40 Managcmcnt dcvcInpmcnt 591
Ains of nanagononl dovoIopnonl 592, Managononl dovoIopnonl:
noods and priorilios 592, Tho roquirononls, naluro and oIononls of
nanagononl dovoIopnonl 593, Managononl dovoIopnonl aclivilios 594,
Approachos lo nanagononl dovoIopnonl 596, EnolionaI inloIIigonco
and Ioadorship quaIilios 602, RosponsibiIily for nanagononl
dovoIopnonl 603
41 FnrmuIatIng and ImpIcmcntIng IcarnIng and dcvcInpmcnt stratcgIcs 607
MaIing lho businoss caso 607, DovoIoping a Ioarning cuIluro 609,
Idonlifying Ioarning noods 610, IIanning and inpIononling Ioarning and
dovoIopnonl progrannos 612, EvaIualion of Ioarning 615
PART IX REWARDING PEOPLE
42 Rcward managcmcnt 623
Rovard nanagononl dofinod 623, Tho ains of rovard nanagononl 624,
Tho phiIosophy of rovard nanagononl 624, Tho oIononls of rovard
nanagononl 625, TolaI rovard 629, Rovard nanagononl for diroclors
and oxoculivos 634, Rovard nanagononl for saIos slaff 636, Iaying
nanuaI vorIors 636
 
43 5tratcgIc rcward 643
Rovard slralogy dofinod 643, Why havo a rovard slralogy` 644, Tho
slrucluro of rovard slralogy 644, Tho conlonl of rovard slralogy 645,
Guiding principIos 649, DovoIoping rovard slralogy 649, Conpononls of
an offoclivo rovard slralogy 651, Rovard slralogy priorilios 652,
ExanpIos of rovard slralogios 653, InpIononling rovard slralogy 656,
Rovard slralogy and Iino nanagononl capabiIily 657
44 Jnb cvaIuatInn 659
}ob ovaIualion dofinod 660, AnaIylicaI ¡ob ovaIualion 660, Non-anaIylicaI
¡ob ovaIualion 664, Tho incidonco of ¡ob ovaIualion 666, Conpulor-
assislod ¡ob ovaIualion 667, Criloria for choico 668, Tho caso for and
againsl ¡ob ovaIualion 671, Dosigning a poinl-faclor ¡ob ovaIualion
schono 672, ConcIusions 679
45 Markct ratc anaIysIs 681
Iurposo 681, Tho concopl of lho narIol ralo 681, Tho infornalion
roquirod 682, }ob nalching 682, Irosonlalion of dala 683, Sourcos of
infornalion 683
46 Gradc and pay structurcs 689
Grado slrucluro dofinod 689, Iay slrucluro dofinod 690, Guiding
principIos for grado and pay slrucluros 690, Typos of grado and pay
slrucluro 691, Dosigning grado and pay slrucluros 698
47 CnntIngcnt pay 707
Conlingonl pay dofinod 708, Tho incidonco of conlingonl pay 708, Tho
naluro of individuaI conlingonl pay 709, IndividuaI conlingonl pay as a
nolivalor 709, Argunonls for and againsl individuaI conlingonl pay 710,
AIlornalivos lo individuaI conlingonl pay 712, Criloria for succoss 713,
Iorfornanco-roIalod pay 713, Conpolonco-roIalod pay 714,
Conlribulion-roIalod pay 716, SIiII-basod pay 718, Sorvico-roIalod
pay 720, Choico of approach 721, Roadinoss for individuaI conlingonl
pay 721, DovoIoping and inpIononling individuaI conlingonl pay 724,
Toan-basod pay 724, Organizalion-vido schonos 725
 
48 EmpInycc bcncIIts, pcnsInns and aIInwanccs 729
EnpIoyoo bonofils 729, OccupalionaI ponsion schonos 731, AIIovancos
and olhor paynonls lo onpIoyoos 734
49 ManagIng rcward systcms 737
Rovard budgols and forocasls 737, EvaIualing lho rovard syslon 739,
Conducling pay roviovs 740, ConlroI 744, Rovard procoduros 745,
RosponsibiIily for rovard 746, Connunicaling lo onpIoyoos 748
PART X EMPLOYEE RELATION5
EnpIoyoo roIalions dofinod 751, IIan 752
50 Thc Iramcwnrk nI cmpInycc rcIatInns 753
Tho oIononls of onpIoyoo roIalions 754, InduslriaI roIalions as
a syslon of ruIos 754, Typos of roguIalions and ruIos 755, CoIIoclivo
bargaining 756, Tho unilary and pIuraIisl viovs 758, Tho roconciIialion of
inlorosls 759, IndividuaIisn and coIIoclivisn 759, VoIunlarisn and ils
docIino 759, Tho HRM approach lo onpIoyoo roIalions 761, Tho conloxl
of induslriaI roIalions 762, DovoIopnonls in induslriaI roIalions 763, Tho
parlios lo induslriaI roIalions 766, RoIo of lho HR funclion in onpIoyoo
roIalions 771
51 EmpInycc rcIatInns prnccsscs 773
EnpIoyoo roIalions poIicios 774, EnpIoyoo roIalions slralogios 778,
EnpIoyoo roIalions cIinalo 779, Union rocognilion and
do-rocognilion 781, CoIIoclivo bargaining arrangononls 783, InfornaI
onpIoyoo roIalions procossos 788, Olhor foaluros of lho induslriaI
roIalions scono 789, Managing vilh lrado unions 791, Managing
vilhoul lrado unions 792
52 NcgntIatIng and bargaInIng 795
Tho naluro of nogolialing and bargaining 795, Nogolialing 796,
Nogolialing and bargaining sIiIIs 803
xìv Contonts
53 EmpInycc vnIcc 807
Tho concopl of onpIoyoo voico 807, InvoIvononl and parlicipalion 808,
Iurposos of onpIoyoo voico 808, Tho franovorI for onpIoyoo voico 808,
Exprossion of onpIoyoo voico 809, Faclors affocling choico 810, Forns of
onpIoyoo voico 810, }oinl consuIlalion 811, Alliludo survoys 812,
Suggoslion schonos 814, IIanning for voico 815
54 CnmmunIcatInns 817
Connunicalion aroas and ob¡oclivos 819, Connunicalions slralogy 819,
Connunicalion syslons 821
PART XI HEALTH, 5AFETY AND WELFARE
55 HcaIth and saIcty 829
Managing hoaIlh and safoly al vorI 830, Tho inporlanco of hoaIlh
and safoly in lho vorIpIaco 830, Bonofils of vorIpIaco hoaIlh
and safoly 831, HoaIlh and safoly poIicios 832, Conducling risI
assossnonls 833, HoaIlh and safoly audils 836, Safoly inspoclions 838,
OccupalionaI hoaIlh progrannos 838, Managing slross 839, Accidonl
provonlion 841, Moasuring hoaIlh and safoly porfornanco 841,
Connunicaling lho nood for bollor hoaIlh and safoly praclicos 842,
HoaIlh and safoly lraining 843, Organizing hoaIlh and safoly 843
56 WcIIarc scrvIccs 845
Why provido voIfaro sorvicos` 845, Whal sorl of voIfaro sorvicos` 847,
IndividuaI sorvicos 848, Group voIfaro sorvicos 851, Irovision of
onpIoyoo voIfaro sorvicos 851, InlornaI counsoIIing sorvicos 852,
EnpIoyoo assislanco progrannos 852
PART XII EMPLOYMENT AND HRM 5ERVICE5
57 EmpInymcnt practIccs 857
Torns and condilions and conlracls of onpIoynonl 858, MobiIily
cIausos 860, Transfor praclicos 860, Ironolion praclicos 861, FIoxibIo
vorIing 862, Allondanco nanagononl 863, EquaI opporlunily 866,
Elhnic noniloring 867, Managing divorsily 868, Tho Dala
Iroloclion Acl 869, SoxuaI harassnonl 870, SnoIing 872, Subslanco
abuso al vorI 873, BuIIying 873, AIDS 874, E-naiIs 874, WorI-Iifo
baIanco 875
 
58 HRM prnccdurcs 879
Griovanco procoduro 880, DiscipIinary procoduro 881, CapabiIily
procoduro 883, Rodundancy procoduro 885
59 CnmputcrIzcd human rcsnurcc InInrmatInn systcms 889
Bonofils of a conpulorizod hunan rosourco infornalion syslon 890,
HR infornalion slralogy 890, Tho funclions of a conpulorizod HR
syslon 891, Tho lochnicaI infraslrucluro 892, Raling of syslon
foaluros 892, An offoclivo syslon 893, IrobIons and hov lo doaI vilh
lhon 894, DovoIoping a conpulorizod HR infornalion syslon 895,
AppIicalions 899, Audiling lho syslon 906
Appcn!ix. |xcmplc cj cn ciiiiu!c surtcq 90¯
Rcjcrcnccs 911
Su|jcci in!cx 953
Aui|cr in!cx 9¯¯
xvì Contonts
Lìst ol lìguros
0.1 Roulo nap xxvi
0.2 RoIalionship bolvoon aspocls of poopIo nanagononl 2
1.1 HRM aclivilios 5
1.2 Tho Hunan Rosourco CycIo 6
1.3 Tho Harvard FranovorI for Hunan Rosourco Managononl 7
1.4 ModoI of lho IinI bolvoon HRM and porfornanco 23
2.1 Tho Soars RoobucI ModoI: EnpIoyoo-Cuslonor-Irofil chain 41
2.2 Tho baIancod scorocard 43
2.3 Tho EFQM nodoI 44
2.4 Hunan capilaI oxlornaI roporling franovorI 49
2.5 Hunan capilaI roporling dashboard for aroa nanagors: Nalionvido 51
4.1 Typos of porsonnoI nanagononl 78
4.2 Tho changing roIo of lho HR praclilionor 79
9.1 Slralogic roviov soquonco 142
13.1 ExanpIo of a roIo profiIo 192
15.1 Dinonsions of lho onpIoynonl roIalionship 216
16.1 AnodoI of lho psychoIogicaI conlracl 230
18.1 Tho procoss of nolivalion 253
18.2 Molivalion nodoI 260
20.1 ChannoIs of connunicalion vilhin groups 294
25.1 Tho procoss of hunan rosourco pIanning 370
25.2 AsurvivaI curvo 378
26.1 Tho oIononls of laIonl nanagononl 391
26.2 Caroor progrossion curvos 401
26.3 Tho procoss of caroor nanagononl 401
26.4 Managononl succossion schoduIo 404
26.5 Conpolonco band caroor progrossion syslon 405
26.6 Caroor palhs in a caroor faniIy slrucluro 406
26.7 TaIonl acquisilion and dovoIopnonl al Conlrica 408
27.1 Iorson spocificalion for an HR officor 412
27.2 ExanpIo of an appIicalion forn (conprossod) 426
27.3 Accuracy of sono nolhods of soIoclion 433
28.1 Iarl of a crilicaI-incidonl inlorviov for saIos poopIo 448
28.2 BohaviouraI-basod inlorviov sol 449
29.1 AnornaI curvo 467
33.1 Tho porfornanco nanagononl cycIo 504
34.1 360-dogroo foodbacI nodoI 522
34.2 360-dogroo foodbacI profiIo 525
35.1 Conpononls of hunan rosourco dovoIopnonl 534
36.1 SingIo- and doubIo-Ioop Ioarning 541
36.2 Managing Ioarning lo add vaIuo, lho Ioarning cycIo 542
37.1 Tho KoIb Ioarning cycIo 552
37.2 Aslandard Ioarning curvo 555
37.3 Difforonl ralos of Ioarning 555
37.4 Asloppod Ioarning curvo 556
38.1 Slagos in proparing and inpIononling a porsonaI dovoIopnonl pIan 572
38.2 Inpacl of dovoIopnonl 575
38.3 Syslonalic lraining nodoI 577
39.1 AbIondod Ioarning progranno 587
41.1 Loarning noods anaIysis ÷ aroas and nolhods 611
41.2 AIoarning spocificalion 613
42.1 Rovard nanagononl: oIononls and inlorroIalionships 630
42.2 Tho conpononls of lolaI rovard 631
42.3 ModoI of lolaI rovard 633
43.1 Arovard gap anaIysis 646
43.2 Rovard phiIosophy and guiding principIos al B&Q 650
43.3 AnodoI of lho rovard slralogy dovoIopnonl procoss 651
43.4 Rovard slralogy priorilios 652
43.5 Tho Norvich Union Insuranco Irogrossion, Iorfornanco & Iay 654
franovorI
xvììì Lìst ol lìguros
43.6 Inlogralod rovard nodoI ÷ KviI-fil 655
44.1 A pairod conparison 665
44.2 A lypicaI ¡ob ovaIualion progranno 675
44.3 Dosign soquonco 676
46.1 A narrov, nuIli-gradod slrucluro 692
46.2 A broad-gradod slrucluro 693
46.3 Narrov and broad-bandod slrucluros 694
46.4 A broad-bandod slrucluro vilh zonos 694
46.5 A ¡ob faniIy slrucluro 694
46.6 A caroor faniIy slrucluro 696
46.7 A pay spino 697
46.8 Typo of grado and pay slrucluro 701
46.9 FIov charl: dosign of a nov grado and pay slrucluro 705
47.1 Incidonco of conlingonl pay schonos 708
47.2 Lino of sighl nodoI 713
47.3 Iorfornanco-roIalod pay 713
47.4 Conpolonco-roIalod pay 714
47.5 Conlribulion pay nodoI (1) 716
47.6 Conlribulion pay nodoI (2) 716
47.7 Conlribulion-roIalod pay 717
47.8 Conlribulion-roIalod pay nodoI (Shav Trusl) 718
50.1 EnpIoyoo roIalions: roconciIialion of inlorosls 760
52.1 Nogolialing rango vilhin a sollIononl rango 799
52.2 Nogolialing rango vilh a nogolialing gap 800
52.3 Slagos of a nogolialion 801
53.1 A franovorI for onpIoyoo voico 809
Lìst ol lìguros xìx
Lìst ol tubíos
1.1 SiniIarilios and difforoncos bolvoon HRM and porsonnoI nanagononl 19
1.2 Oulconos of rosoarch on lho IinI bolvoon HR and organizalionaI
porfornanco 21
4.1 Conpoloncy franovorI for HR profossionaIs 90
4.2 Koy conpoloncy aroas 91
9.1 LinIing HR and conpolilivo slralogios 136
9.2 HRM bosl praclicos 137
11.1 Incidonco of difforonl conpoloncy hoadings 162
14.1 FooIings al vorI 213
16.1 }ob salisfaclion 235
18.1 Sunnary of nolivalion lhoorios 256
18.2 Molivalion slralogios 269
19.1 Tho Hay Group nodoI of ongagod porfornanco 282
25.1 SurvivaI ralo anaIysis 378
25.2 Loavors by Ionglh of sorvico 380
32.1 Iorfornanco appraisaI conparod vilh porfornanco nanagononl 501
37.1 Tho inpIicalions of Ioarning lhoory and concopls 557
38.1 Characlorislics of fornaI and infornaI Ioarning 565
41.1 Uso of Ioarning aclivilios 615
41.2 Uso of ovaIualion looIs 619
42.1 Econonic lhoorios oxpIaining pay IovoIs 626
42.2 Sunnary of paynonl and inconlivo arrangononls for saIos slaff 637
42.3 Conparison of shopfIoor paynonl-by-rosuIl schonos 639
43.1 ExanpIos of rovard slralogios and lhoir dorivalion 656
44.1 Conparison of approachos lo ¡ob ovaIualion 669
45.1 Sunnary of sourcos of narIol dala 686
46.1 Sunnary anaIysis of difforonl grado and pay slrucluros 699
47.1 Conparison of individuaI conlingonl pay schonos 722
50.1 Conlrasling dinonsions of induslriaI roIalions and HRM 761
54.1 Connunicalion aroas and ob¡oclivos 820
59.1 Conpulor syslon probIons and soIulions 894
xxìì Lìst ol tubíos
About tho uuthor
MichaoI Arnslrong is an honours gradualo in ocononics fron lho London SchooI of
Econonics, a Conpanion of lho Charlorod Inslilulo of IorsonnoI and DovoIopnonl
and a FoIIov of lho Inslilulo of Managononl ConsuIlancy.
This booI is IargoIy basod on MichaoI Arnslrong's hands-on oxporionco as a
porsonnoI praclilionor, iniliaIIy in lho onginooring induslry, spociaIizing in induslriaI
roIalions, and lhon in lho onginooring and food induslrios as an onpIoyoo dovoIop-
nonl spociaIisl.
For 12 yoars ho vas an oxoculivo diroclor vilh rosponsibiIily for HR in a Iargo
pubIishing firn and for lhroo yoars of lhal poriod aIso aclod as gonoraI nanagor for
an oporaling division. For a furlhor 10 yoars ho hoadod up lho HR consuIlancy divi-
sion of Coopors & Lybrand. Ho is Managing Iarlnor of o-rovard.uI and aIso praclisos
as an indopondonl consuIlanl. This oxporionco has boon suppIononlod roconlIy by a
nunbor of rosoarch pro¡ocls carriod oul on bohaIf of lho Charlorod Inslilulo of
IorsonnoI and DovoIopnonl. Thoso covorod lho porsonnoI funclion's conlribulion lo
lho bollon Iino, slralogic HRM, inconlivo pay, ¡ob ovaIualion, loan rovards, broad-
bandod pay slrucluros, and porfornanco nanagononl. Ho vas Chiof Exaninor
EnpIoyoo Rovard for lho CIID fron 1997÷2001.
His pubIicalions for Kogan Iago incIudo Rcucr! Mcncgcmcni, Pcrjcrmcncc Mcncgc-
mcni, Hcu ic 8c cn |tcn 8ciicr Mcncgcr, A Hcn!|cc| cj Mcncgcmcni 1cc|ni¡ucs and A
Hcn!|cc| cj |mplcqcc Rcucr!, Mcncgcmcni cn! Icc!crs|ip.

This lonlh odilion of A Hcn!|cc| cj Humcn Rcscurcc Mcncgcmcni Prcciicc conlains
nany addilions and rovisions. Il rofors lo na¡or dovoIopnonls in HR praclico in lho
Iasl lvo lo lhroo yoars such as lho dovoIopnonl of lho lhoory and praclico of hunan
capilaI nanagononl, laIonl nanagononl and approachos lo Ioarning and dovoIop-
nonl, aII covorod in nov or subslanliaIIy rovisod chaplors. Roforonco is aIso nado lo a
nunbor of significanl rosoarch pro¡ocls incIuding lhoso conduclod by lho CIID, IES
and o-rovard. Chaplors on lho foIIoving sub¡ocls havo boon oilhor vhoIIy ropIacod or
oxlonsivoIy rovisod in lho Iighl of nov concopls of good praclico, lho oxporionco of lho
aulhor as a praclilionor and lho oulconos of rosoarch:
hunan rosourco nanagononl,
roIo of lho HR funclion,
roIo of lho HR praclilionor,
slralogic hunan rosourco nanagononl,
conpoloncy-basod HRM,
lho doIivory of Ioarning and lraining,
porfornanco nanagononl,
rovard nanagononl fundanonlaIs,
grado and pay slrucluros.
Tho pIan of lho handbooI is iIIuslralod in lho ´roulo nap' shovn in Figuro 0.1.
xxvì lroluco
3 Role of HR function
4 Role of HR practitioner
5 Role of line manager
II HRM processes
7 Strategic HRM
8 HR strategies
9 Developing HR strategies
10 HRM policies
11 Competency-based HRM
12 Knowledge management
13 Analysing roles,
competencies and skills
V Organization
22 Organization
design
23 Job and role
design
24 Organization
development
VI PeopIe resourcing
25 Human resource
planning
26 Talent
management
27 Recruitment and
selection
28 Selection tests
29 Ìntroduction to the
organization
30 Release from the
organization
VII Performance
management
32 Basis of
performance
management
33 Performance
management
processes
34 360-degree
feedback
VIII Human resource
deveIopment
35 Strategic HRD
36 Organizational
learning
37 How people learn
38 Learning and
development
39 E-learning
40 Management
development
41 Learning and
development
strategies
IX Rewarding
peopIe
42 Reward
management
43 Strategic reward
44 Job evaluation
45 Market rate
analysis
46 Grade and pay
structures
47 Contingent pay
48 Employee benefits
49 Managing reward
systems
X EmpIoyee
reIations
50 Framework of
employee relations
51 Employee relations
processes
52 Negotiating and
bargaining
53 Employee voice
54 Communications
XI HeaIth, safety
and weIfare
55 Health and safety
56 Welfare services
XII EmpIoyment and
HRM services
57 Employment
practices
58 HRM procedures
59 Computerised
HR information
systems
Factors affecting HRM strategy
poIicy and practice
III Work and employment
14 The nature of work
15 The employment relationship
16 The psychological contract
IV Organizational behaviour
17 Characteristics of people
18 Motivation
19 Commitment and engagement
20 How organizations function
21 Organizational culture
I PeopIe management
1 Human resource management
2 Human capital management
HRM strategy,
policy and
practice
6 Ìnternational HRM
FIgurc 0.1 Roulo nap
Munugìng poopío
1|is pcri un!crpins i|c rcsi cj i|c Hcn!|cc|. li !ccls uii| i|c cpprccc|cs cn! p|ilcscp|ics
i|ci cjjcci |cu pccplc crc mcncgc! in crgcnizciicns, i|c rclcs cj i|c HR junciicn cn! iis
mcm|crs, cn! i|c spccicl ccnsi!crciicns i|ci cjjcci inicrnciicncl pccplc mcncgcmcni. 1|c
icrm ´pccplc mcncgcmcni´ cm|rcccs i|c iuc rclcic! ccnccpis cj |umcn rcscurcc mcncgcmcni
(HRM) cn! |umcn ccpiicl mcncgcmcni (HCM), u|ic| crc !cjinc! cn! cxplcinc! in i|c jirsi
iuc c|cpicrs. 1|csc |ctc tiriucllq rcplccc! i|c icrm ´pcrscnncl mcncgcmcni´, cli|cug| i|c
p|ilcscp|ics cn! prcciiccs cj pcrscnncl mcncgcmcni siill prcti!c i|c jcun!ciicns jcr i|c
p|ilcscp|q cn! prcciiccs cj HRM cn! HCM. 1|c rclciicns|ips |ciuccn i|csc cspccis cj pccplc
mcncgcmcni crc mc!cllc! in ligurc 0.2.
 
2 Munugìng poopío
PeopIe management
The policies and practices which govern
how people are managed and developed
in organizations.
Human resource management
'A strategic and coherent approach to the
management of an organization's most
valued assets - the people working there
who individually and collectively contribute
to the achievement of its objectives.'
Human capitaI management
'An approach to obtaining, analysing and
reporting on data which informs the direc-
tion of value-adding people management
strategic investment and operational deci-
sions at corporate level and at the level of
front line management.'
PersonneI management
'Personnel management is concerned with
obtaining, organizing and motivating the
human resources required by the enter-
prise.'
(Armstrong, 1977)
FIgurc 0.2 RoIalionship bolvoon aspocls of poopIo nanagononl
Humun rosourco munugomont
Tho lorns ´hunan rosourco nanagononl' (HRM) and ´hunan rosourcos' (HR) havo
IargoIy ropIacod lho lorn ´porsonnoI nanagononl' as a doscriplion of lho procossos
invoIvod in nanaging poopIo in organizalions. Tho concopl of HRM undorpins aII lho
aclivilios doscribod in lhis booI, and lho ain of lhis chaplor is lo provido a franovorI
for vhal foIIovs by dofining lho concopls of HRM and an HR syslon, doscribing lho
various nodoIs of HRM and discussing ils ains and characlorislics. Tho chaplor
conlinuos vilh a roviov of rosorvalions aboul HRM and lho roIalionship bolvoon
HRM and porsonnoI nanagononl and concIudos vilh a discussion of lho inpacl
HRM can naIo on organizalionaI porfornanco.
HLMAN kLSCLkCL MANACLMLN1 DLllNLD
Hunan rosourco nanagononl is dofinod as a slralogic and cohoronl approach lo lho
nanagononl of an organizalion's nosl vaIuod assols ÷ lho poopIo vorIing lhoro vho
individuaIIy and coIIoclivoIy conlribulo lo lho achiovononl of ils ob¡oclivos.
Sloroy (1989) boIiovos lhal HRM can bo rogardod as a ´sol of inlorroIalod poIicios
vilh an idooIogicaI and phiIosophicaI undorpinning'. Ho suggosls four aspocls lhal
conslilulo lho mccningjul vorsion of HRM:

1. a parlicuIar consloIIalion of boIiofs and assunplions,
2. a slralogic lhrusl inforning docisions aboul poopIo nanagononl,
3. lho conlraI invoIvononl of Iino nanagors, and
4. roIianco upon a sol of Íovors' lo shapo lho onpIoynonl roIalionship.
HLMAN kLSCLkCL SYS1LM
Hunan rosourco nanagononl oporalos lhrough hunan rosourco syslons lhal bring
logolhor in a cohoronl vay:
HR p|ilcscp|ics doscribing lho ovorarching vaIuos and guiding principIos adoplod
in nanaging poopIo.
HR sircicgics dofining lho diroclion in vhich HRM inlonds lo go.
HR pclicics, vhich aro lho guidoIinos dofining hov lhoso vaIuos, principIos and
lho slralogios shouId bo appIiod and inpIononlod in spocific aroas of HRM.
HR prcccsscs consisling of lho fornaI procoduros and nolhods usod lo pul HR
slralogic pIans and poIicios inlo offocl.
HR prcciiccs conprising lho infornaI approachos usod in nanaging poopIo.
HR prcgrcmmcs, vhich onabIo HR slralogios, poIicios and praclicos lo bo inpIo-
nonlod according lo pIan.
BocIor and Gorharl (1996) havo cIassifiod lhoso conpononls inlo lhroo IovoIs: lho
syslon archilocluro (guiding principIos), poIicy aIlornalivos and procossos and prac-
licos.
Soo Figuro 1.1.
MCDLLS Cl HkM
Thc ma|chíng modcí of HR\
Ono of lho firsl oxpIicil slalononls of lho HRM concopl vas nado by lho Michigan
SchooI (Fonbrun ci cl, 1984). Thoy hoId lhal HR syslons and lho organizalion slruc-
luro shouId bo nanagod in a vay lhal is congruonl vilh organizalionaI slralogy
(honco lho nano ńalching nodoI'). Thoy furlhor oxpIainod lhal lhoro is a hunan
rosourco cycIo (an adaplalion of vhich is iIIuslralod in Figuro 1.2), vhich consisls of
four gonoric procossos or funclions lhal aro porfornod in aII organizalions. Thoso aro:
1. sclcciicn ÷ nalching avaiIabIo hunan rosourcos lo ¡obs,
4 Munugìng poopío
2. cpprciscl ÷ porfornanco nanagononl,
3. rcucr!s ÷ ´lho rovard syslon is ono of lho nosl undor-uliIizod and nishandIod
nanagoriaI looIs for driving organizalionaI porfornanco', il nusl rovard shorl
as voII as Iong-lorn achiovononls, boaring in nind lhal ´businoss nusl porforn
in lho prosonl lo succood in lho fuluro',
4. !ctclcpmcni ÷ dovoIoping high quaIily onpIoyoos.
Humun rosourco munugomont 5
Organization Resourcing
Human resource
planning
Recruitment and
selection
Talent
management
HR services
HR
deveIopment
Reward
management
EmpIoyee
reIations
Design
Organizational
learning
Job evaluation/
Market surveys
Ìndustrial
relations
Development
Ìndividual
learning
Grade and pay
structures
Employee voice
Job/role
design
Management
development
Contingent pay Communications
Performance
management
Employee
benefits
Health/safety
and welfare
Knowledge
management
Human capital
management
HUMAN RESOURCE
MANAGEMENT
FIgurc 1.1 HRM aclivilios
Thc Harvard framcvor|
Tho olhor founding falhors of HRM voro lho Harvard SchooI of Boor   (1984) vho
dovoIopod vhal BoxaII (1992) caIIs lho ´Harvard franovorI'. This franovorI is
basod on lho boIiof lhal lho probIons of hisloricaI porsonnoI nanagononl can onIy bo
soIvod:
vhon gonoruí munugors dovoíop u vìovpoìnt ol hov thoy vìsh to soo ompíoyoos
ìnvoívod ìn und dovoíopod by tho ontorprìso, und ol vhut HkM poíìcìos und pructìcos
muy uchìovo thoso gouís. \ìthout oìthor u contruí phìíosophy or u strutogìc vìsìon -
vhìch cun bo provìdod oní, by gonoruí munugors - HkM ìs íìkoíy to romuìn u sot ol
ìndopondont uctìvìtìos, ouch guìdod by ìts ovn pructìco trudìtìon.
Boor and his coIIoaguos boIiovod lhal ´Today, nany prossuros aro donanding a
broador, noro conprohonsivo and noro slralogic porspoclivo vilh rogard lo lho orga-
nizalion's hunan rosourcos.' Thoso prossuros havo croalod a nood for: ÁIongor-lorn
porspoclivo in nanaging poopIo and considoralion of poopIo as polonliaI assols ralhor
lhan noroIy a variabIo cosl.' Thoy voro lho firsl lo undorIino lho HRM lonol lhal il
boIongs lo Iino nanagors. Thoy aIso slalod lhal: ´Hunan rosourco nanagononl
invoIvos aII nanagononl docisions and aclion lhal affocl lho naluro of lho roIalion-
ship bolvoon lho organizalion and ils onpIoyoos ÷ ils hunan rosourcos.'
6 Munugìng poopío
Selection
Performance
management
Performance
Rewards
Development
FIgurc 1.2 Tho Hunan Rosourco CycIo (adaplod fron Fonbrun   1984)
Tho Harvard schooI suggoslod lhal HRM had lvo characlorislic foaluros: 1) Iino
nanagors accopl noro rosponsibiIily for onsuring lho aIignnonl of conpolilivo
slralogy and porsonnoI poIicios, 2) porsonnoI has lho nission of solling poIicios lhal
govorn hov porsonnoI aclivilios aro dovoIopod and inpIononlod in vays lhal naIo
lhon noro nuluaIIy roinforcing. Tho Harvard franovorI as nodoIIod by Boor ci cl is
shovn in Figuro 1.3.
According lo BoxaII (1992) lho advanlagos of lhis nodoI aro lhal il:
incorporalos rocognilion of a rango of slaIohoIdor inlorosls,
rocognizos lho inporlanco of ´lrado-offs', oilhor oxpIicilIy or inpIicilIy, bolvoon
lho inlorosls of ovnors and lhoso of onpIoyoos as voII as bolvoon various inlorosl
groups,
vidons lho conloxl of HRM lo incIudo ónpIoyoo infIuonco', lho organizalion of
vorI and lho associalod quoslion of suporvisory slyIo,
StakehoIder
interests:
shareholders
management
employees
government
unions
SituationaI
factors:
work force
characteristics
business
strategy and
conditions
management
philosophy
labour market
unions
task technology
laws and social
values
HR outcomes:
commitment
congruence
cost
effectiveness
Long-term
consequences
individual well-
being
organizational
effectiveness
societal well-
being
HRM poIicy
choices:
employee
influence
human resource
flow
reward systems
work systems
FIgurc 1.3 Tho Harvard FranovorI for Hunan Rosourco Managononl (Scurcc:
Boor ci cl, 1984)
acInovIodgos a broad rango of conloxluaI infIuoncos on nanagononl's choico of
slralogy, suggosling a noshing of bolh producl-narIol and socio-cuIluraI Iogics,
onphasizos slralogic choico ÷ il is nol drivon by silualionaI or onvironnonlaI
dolorninisn.
Tho Harvard nodoI has oxorlod considorabIo infIuonco ovor lho lhoory and praclico
of HRM, parlicuIarIy in ils onphasis on lho facl lhal HRM is lho concorn of nanago-
nonl in gonoraI ralhor lhan lho porsonnoI funclion in parlicuIar.
AlMS Cl HkM
Tho ovoraII purposo of hunan rosourco nanagononl is lo onsuro lhal lho organiza-
lion is abIo lo achiovo succoss lhrough poopIo. As UIrich and LaIo (1990) ronarI:
´HRM syslons can bo lho sourco of organizalionaI capabiIilios lhal aIIov firns lo
Ioarn and capilaIizo on nov opporlunilios.' SpocificaIIy, HRM is concornod vilh
achioving ob¡oclivos in lho aroas sunnarizod boIov.
Crganí2a|íonaí cffcc|ívcnc··
´Dislinclivo hunan rosourco praclicos shapo lho coro conpoloncios lhal dolornino
hov firns conpolo' (CappoIIi and CrocIor-Hoflor, 1996). Exlonsivo rosoarch has
shovn lhal such praclicos can naIo a significanl inpacl on firn porfornanco. HRM
slralogios ain lo supporl progrannos for inproving organizalionaI offoclivonoss by
dovoIoping poIicios in such aroas as InovIodgo nanagononl, laIonl nanagononl
and gonoraIIy croaling á groal pIaco lo vorI'. This is lho ´big idoa' as doscribod by
IurcoII   (2003), vhich consisls of a ćIoar vision and a sol of inlogralod vaIuos'.
Moro spocificaIIy, HR slralogios can bo concornod vilh lho dovoIopnonl of conlin-
uous inprovononl and cuslonor roIalions poIicios.
Human capí|aí managcmcn|
Tho hunan capilaI of an organizalion consisls of lho poopIo vho vorI lhoro and on
vhon lho succoss of lho businoss doponds. Hunan capilaI has boon dofinod by
Bonlis   (1999) as foIIovs:
Humun cupìtuí roprosonts tho humun luctor ìn tho orgunìzutìon, tho combìnod ìntoííì-
gonco, skìíís und oxportìso thut gìvo tho orgunìzutìon ìts dìstìnctìvo chuructor. 1ho humun
oíomonts ol tho orgunìzutìon uro thoso thut uro cupubío ol íournìng, chungìng, ìnnovutìng
und provìdìng tho croutìvo thrust vhìch ìl proporíy motìvutod cun onsuro tho íong-torm
survìvuí ol tho orgunìzutìon.
8 Munugìng poopío
Hunan capilaI can bo rogardod as lho prino assol of an organizalion and businossos
nood lo invosl in lhal assol lo onsuro lhoir survivaI and grovlh. HRM ains lo onsuro
lhal lho organizalion oblains and rolains lho sIiIIod, connillod and voII-nolivalod
vorIforco il noods. This noans laIing slops lo assoss and salisfy fuluro poopIo noods
and lo onhanco and dovoIop lho inhoronl capacilios of poopIo ÷ lhoir conlribulions,
polonliaI and onpIoyabiIily ÷ by providing Ioarning and conlinuous dovoIopnonl
opporlunilios. Il invoIvos lho oporalion of ´rigorous rocruilnonl and soIoclion proco-
duros, porfornanco-conlingonl inconlivo conponsalion syslons, and nanagononl
dovoIopnonl and lraining aclivilios IinIod lo lho noods of lho businoss' (BocIor  ,
1997). Il aIso noans ongaging in laIonl nanagononl ÷ lho procoss of acquiring and
nurluring laIonl, vhorovor il is and vhorovor il is noodod, by using a nunbor of inlor-
dopondonl HRM poIicios and praclicos in lho fioIds of rosourcing, Ioarning and dovoI-
opnonl, porfornanco nanagononl and succossion pIanning.
Tho procoss of hunan capilaI nanagononl (HCM) as doscribod in lho noxl
chaplor is cIosoIy associalod vilh hunan rosourco nanagononl. Hovovor, lho
focus of HCM is noro on lho uso of nolrics (noasurononls of HR and poopIo porfor-
nanco) as a noans of providing guidanco on poopIo nanagononl slralogy and
praclico.
Knovícdgc managcmcn|
KnovIodgo nanagononl is ány procoss or praclico of croaling, acquiring, capluring,
sharing and using InovIodgo, vhorovor il rosidos, lo onhanco Ioarning and porfor-
nanco in organizalions' (Scarborough  , 1999). HRM ains lo supporl lho dovoIop-
nonl of firn-spocific InovIodgo and sIiIIs lhal aro lho rosuIl of organizalionaI
Ioarning procossos.
Rcvard managcmcn|
HRM ains lo onhanco nolivalion, ¡ob ongagononl and connilnonl by inlroducing
poIicios and procossos lhal onsuro lhal poopIo aro vaIuod and rovardod for vhal lhoy
do and achiovo and for lho IovoIs of sIiII and conpolonco lhoy roach.
Lmpío,cc rcía|íon·
Tho ain is lo croalo a cIinalo in vhich produclivo and harnonious roIalionships can
bo nainlainod lhrough parlnorships bolvoon nanagononl and onpIoyoos and lhoir
lrado unions.
\cc|íng dívcr·c nccd·
HRM ains lo dovoIop and inpIononl poIicios lhal baIanco and adapl lo lho noods of
ils slaIohoIdors and provido for lho nanagononl of a divorso vorIforco, laIing inlo
accounl individuaI and group difforoncos in onpIoynonl, porsonaI noods, vorI slyIo
and aspiralions and lho provision of oquaI opporlunilios for aII.
ßrídgíng |hc gap bc|vccn rhc|oríc and rcaíí|,
Tho rosoarch conduclod by Grallon   (1999) found lhal lhoro vas gonoraIIy a vido
gap bolvoon lho sorl of rholoric oxprossod abovo and roaIily. Managononls nay slarl
vilh good inlonlions lo do sono or aII of lhoso lhings bul lho roaIizalion of lhon ÷
´lhoory in uso' ÷ is oflon vory difficuIl. This arisos bocauso of conloxluaI and procoss
probIons: olhor businoss priorilios, shorl-lornisn, Iinilod supporl fron Iino
nanagors, an inadoqualo infraslrucluro of supporling procossos, IacI of rosourcos,
rosislanco lo chango and IacI of lrusl. An ovorarching ain of HRM is lo bridgo lhis
gap by naIing ovory allonpl lo onsuro lhal aspiralions aro lransIalod inlo suslainod
and offoclivo aclion. To do lhis, nonbors of lho HR funclion havo lo rononbor lhal il
is roIalivoIy oasy lo cono up vilh nov and innovalory poIicios and praclico. Tho
chaIIongo is lo gol lhon lo vorI. Thoy nusl approcialo, in lho phraso usod by IurcoII
  (2003) lhal il is lho fronl Iino nanagors vho bring HR poIicios lo Iifo, and acl
accordingIy.
lCLlCY CCALS Cl HkM
Tho nodoIs of HRM, lho ains sol oul abovo and olhor dofinilions of HRM havo boon
disliIIod by CaIdvoII (2004) inlo 12 poIicy goaIs:
1. Managing poopIo as assols lhal aro fundanonlaI lo lho conpolilivo advanlago of
lho organizalion.
2. AIigning HRM poIicios vilh businoss poIicios and corporalo slralogy.
3. DovoIoping a cIoso fil of HR poIicios, procoduros and syslons vilh ono anolhor.
4. Croaling a fIallor and noro fIoxibIo organizalion capabIo of rosponding noro
quicIIy lo chango.
5. Encouraging loan vorIing and co-oporalion across inlornaI organizalionaI
boundarios.
6. Croaling a slrong cuslonor-firsl phiIosophy lhroughoul lho organizalion.
7. Enpovoring onpIoyoos lo nanago lhoir ovn soIf-dovoIopnonl and Ioarning.
l0 Munugìng poopío
8. DovoIoping rovard slralogios dosignod lo supporl a porfornanco-drivon
cuIluro.
9. Inproving onpIoyoo invoIvononl lhrough bollor inlornaI connunicalion.
10. BuiIding groalor onpIoyoo connilnonl lo lho organizalion.
11. Incroasing Iino nanagononl rosponsibiIily for HR poIicios.
12. DovoIoping lho faciIilaling roIo of nanagors as onabIors.
CHAkAC1LklS1lCS Cl HkM
Tho characlorislics of lho HRM concopl as lhoy onorgod fron lho vrilings of lho
pionoors and Ialor connonlalors aro lhal il is:
divorso,
slralogic vilh an onphasis on inlogralion,
connilnonl-orionlod,
basod on lho boIiof lhal poopIo shouId bo lroalod as assols (hunan capilaI),
unilarisl ralhor lhan pIuraIisl, individuaIislic ralhor lhan coIIoclivo in ils approach
lo onpIoyoo roIalions,
a nanagononl-drivon aclivily ÷ lho doIivory of HRM is a Iino nanagononl
rosponsibiIily,
focusod on businoss vaIuos.
Thc dívcr·í|, of HR\
Bul lhoso characlorislics of HRM aro by no noans univorsaI. Thoro aro nany nodoIs,
and praclicos vilhin difforonl organizalions aro divorso, oflon onIy corrosponding lo
lho concopluaI vorsion of HRM in a fov rospocls.
Hondry and Iolligrov (1990) pIay dovn lho proscriplivo oIononl of lho HRM
nodoI and oxlond lho anaIylicaI oIononls. As poinlod oul by BoxaII (1992), such an
approach righlIy avoids IaboIIing HRM as a singIo forn and advancos noro sIovIy
by procooding noro anaIylicaIIy. Il is arguod by Hondry and Iolligrov lhal ´bollor
doscriplions of slrucluros and slralogy-naIing in conpIox organizalions, and of
franovorIs for undorslanding lhon, aro an ossonliaI undorpinning for HRM'.
A dislinclion vas nado by Sloroy (1989) bolvoon lho ´hard' and ´sofl' vorsions of
HRM. Tho hard vorsion of HRM onphasizos lhal poopIo aro inporlanl rosourcos
lhrough vhich organizalions achiovo conpolilivo advanlago. Thoso rosourcos havo
lhoroforo lo bo acquirod, dovoIopod and dopIoyod in vays lhal viII bonofil lho orga-
nizalion. Tho focus is on lho quanlilalivo, caIcuIalivo and businoss-slralogic aspocls of
Humun rosourco munugomont ll
nanaging hunan rosourcos in as ´ralionaI' a vay as for any olhor ocononic faclor. As
Guosl (1999a) connonls:
1ho drìvo to udopt HkM ìs... busod on tho busìnoss cuso ol u nood to rospond to un
oxtornuí throut lrom ìncrousìng compotìtìon. lt ìs u phìíosophy thut uppouís to munugo-
monts vho uro strìvìng to ìncrouso compotìtìvo udvuntugo und upprocìuto thut to do thìs
thoy must ìnvost ìn humun rosourcos us voíí us nov tochnoíogy.
Ho aIso connonlod lhal HRM ´rofIocls a Iong-slanding capilaIisl lradilion in vhich
lho vorIor is rogardod as a connodily'. Tho onphasis is lhoroforo on lho inlorosls of
nanagononl, inlogralion vilh businoss slralogy, oblaining addod vaIuo fron poopIo
by lho procossos of hunan rosourco dovoIopnonl and porfornanco nanagononl and
lho nood for a slrong corporalo cuIluro oxprossod in nission and vaIuo slalononls
and roinforcod by connunicalions, lraining and porfornanco nanagononl
procossos.
Tho sofl vorsion of HRM lracos ils rools lo lho hunan-roIalions schooI, il onpha-
sizos connunicalion, nolivalion and Ioadorship. As doscribod by Sloroy (1989) il
invoIvos ´lroaling onpIoyoos as vaIuod assols, a sourco of conpolilivo advanlago
lhrough lhoir connilnonl, adaplabiIily and high quaIily (of sIiIIs, porfornanco and
so on)'. Il lhoroforo viovs onpIoyoos, in lho vords of Guosl (1999a), as noans ralhor
lhan ob¡ocls, bul il doos nol go as far as foIIoving Kanl's advico: ´Troal poopIo as onds
unlo lhonsoIvos ralhor lhan as noans lo an ond.' Tho sofl approach lo HRM slrossos
lho nood lo gain lho connilnonl ÷ lho ´hoarls and ninds' ÷ of onpIoyoos lhrough
invoIvononl, connunicalions and olhor nolhods of dovoIoping a high-connilnonl,
high-lrusl organizalion. Allonlion is aIso dravn lo lho Ioy roIo of organizalionaI
cuIluro.
In 1998, Loggo dofinod lho ´hard' nodoI of HRM as a procoss onphasizing ´lho
cIoso inlogralion of hunan rosourco poIicios vilh businoss slralogy vhich rogards
onpIoyoos as a rosourco lo bo nanagod in lho sano ralionaI vay as any olhor
rosourco boing oxpIoilod for naxinun rolurn'. In conlrasl, lho sofl vorsion of HRM
soos onpIoyoos as ´vaIuod assols and as a sourco of conpolilivo advanlago lhrough
lhoir connilnonl, adaplabiIily and high IovoI of sIiIIs and porfornanco'.
Il has, hovovor, boon obsorvod by Truss (1999) lhal óvon if lho rholoric of HRM is
sofl, lho roaIily is oflon hard, vilh lho inlorosls of lho organizalion provaiIing ovor
lhoso of lho individuaI'. And rosoarch carriod oul by Grallon   (1999) found lhal in
lho oighl organizalions lhoy sludiod, a nixluro of hard and sofl HRM approachos vas
idonlifiod. This suggoslod lo lho rosoarchors lhal lho dislinclion bolvoon hard and
sofl HRM vas nol as prociso as sono connonlalors havo inpIiod.
Thc ·|ra|cgíc na|urc of HR\
Iorhaps lho nosl significanl foaluro of HRM is lho inporlanco allachod lo slralogic
inlogralion, vhich fIovs fron lop nanagononl's vision and Ioadorship, and vhich
roquiros lho fuII connilnonl of poopIo lo il. Guosl (1987, 1989a, 1989b, 1991) boIiovos
lhal lhis is a Ioy poIicy goaI for HRM, vhich is concornod vilh lho abiIily of lho orga-
nizalion lo inlogralo HRM issuos inlo ils slralogic pIans, lo onsuro lhal lho various
aspocls of HRM cohoro, and lo oncourago Iino nanagors lo incorporalo an HRM
porspoclivo inlo lhoir docision-naIing.
Loggo (1989) considors lhal ono of lho connon lhonos of lho lypicaI dofinilions of
HRM is lhal hunan rosourco poIicios shouId bo inlogralod vilh slralogic businoss
pIanning. Sisson (1990) suggosls lhal a foaluro incroasingIy associalod vilh HRM is a
slross on lho inlogralion of HR poIicios bolh vilh ono anolhor and vilh businoss pIan-
ning noro gonoraIIy.
Sloroy (1989) suggosls lhal: ´Tho concopl Iocalos HRM poIicy fornuIalion firnIy al
lho slralogic IovoI and insisls lhal a characlorislic of HRM is ils inlornaIIy cohoronl
approach.'
Thc commí|mcn|-orícn|cd na|urc of HR\
Tho inporlanco of connilnonl and nuluaIily vas onphasizod by WaIlon (1985a) as
foIIovs:
1ho nov HkM modoí ìs composod ol poíìcìos thut promoto mutuuíìty - mutuuí gouís,
mutuuí ìnlíuonco, mutuuí rospoct, mutuuí rovurds, und mutuuí rosponsìbìíìty. 1ho thoory
ìs thut poíìcìos ol mutuuíìty vìíí oíìcìt commìtmont, vhìch ìn turn vìíí yìoíd both bottor
oconomìc porlormunco und groutor humun dovoíopmont.
Guosl (1987) vrolo lhal ono of lho HRM poIicy goaIs vas lho achiovononl of high
connilnonl ÷ ´bohaviouraI connilnonl lo pursuo agrood goaIs, and alliludinaI
connilnonl rofIoclod in a slrong idonlificalion vilh lho onlorpriso'.
Il vas nolod by Loggo (1995) lhal hunan rosourcos ńay bo lappod nosl offoclivoIy
by nuluaIIy consislonl poIicios lhal pronolo connilnonl and vhich, as a conso-
quonco, foslor a viIIingnoss in onpIoyoos lo acl fIoxibIy in lho inlorosls of lho ádap-
livo organizalion's¨ pursuil of oxcoIIonco'.
Bul lhis onphasis on connilnonl has boon crilicizod fron lho oarIiosl days of
HRM. Guosl (1987) asIod: ćonnilnonl lo vhal`' and FovIor (1987) has slalod:
At tho hourt ol tho concopt ìs tho compíoto ìdontìlìcutìon ol ompíoyoos vìth tho uìms und
vuíuos ol tho busìnoss - ompíoyoo ìnvoívomont but on tho compuny's torms. lovor ìn
Humun rosourco munugomont l3
tho HkM systom romuìns vory lìrmíy ìn tho hunds ol tho ompíoyor. ls ìt rouííy possìbío to
cíuìm luíí mutuuíìty vhon ut tho ond ol tho duy tho ompíoyor cun docìdo unìíutoruííy to
cíoso tho compuny or soíí ìt to somoono oíso:
|copíc a· ´human capí|aí'
Tho nolion lhal poopIo shouId bo rogardod as assols ralhor lhan variabIo cosls, in
olhor vords, lroalod as hunan capilaI, vas originaIIy advancod by Boor   (1984).
HRM phiIosophy, as nonlionod by Karon Loggo (1995), hoIds lhal ´hunan rosourcos
aro vaIuabIo and a sourco of conpolilivo advanlago'. Arnslrong and Baron (2002)
slalod lhal:
loopío und thoìr coííoctìvo skìíís, ubìíìtìos und oxporìonco, coupíod vìth thoìr ubìíìty to
dopíoy thoso ìn tho ìntorosts ol tho ompíoyìng orgunìzutìon, uro nov rocognìzod us
mukìng u sìgnìlìcunt contrìbutìon to orgunìzutìonuí succoss und us constìtutìng u sìgnìlì-
cunt sourco ol compotìtìvo udvuntugo.
Uní|ar, phíío·oph,
Tho HRM approach lo onpIoyoo roIalions is basicaIIy unilary ÷ il is boIiovod lhal
onpIoyoos sharo lho sano inlorosls as onpIoyors. This conlrasls vilh vhal couId bo
rogardod as lho noro roaIislic pIuraIisl viov, vhich says lhal aII organizalions conlain
a nunbor of inlorosl groups and lhal lho inlorosls of onpIoyors and onpIoyoos do nol
nocossariIy coincido.
índívíduaíí·|íc
HRM is individuaIislic in lhal il onphasizos lho inporlanco of nainlaining IinIs
bolvoon lho organizalion and individuaI onpIoyoos in proforonco lo oporaling
lhrough group and roprosonlalivo syslons.
HR\ a· a managcmcn|-drívcn ac|íví|,
HRM can bo doscribod as a conlraI, sonior nanagononl-drivon slralogic aclivily lhal
is dovoIopod, ovnod and doIivorod by nanagononl as a vhoIo lo pronolo lho inlor-
osls of lho organizalion lhal lhoy sorvo. IurcoII (1993) lhinIs lhal ´lho adoplion of
HRM is bolh a producl of and a causo of a significanl conconlralion of povor in lho
hands of nanagononl', vhiIo lho vidosproad uso óf lho Ianguago of HRM, if nol ils
praclico, is a conbinalion of ils inluilivo appoaI lo nanagors and, noro inporlanlIy, a
rosponso lo lho lurbuIonco of producl and financiaI narIols'. Ho assorls lhal HRM is
aboul lho rodiscovory of nanagononl prorogalivo. Ho considors lhal HRM poIicios
and praclicos, vhon appIiod vilhin a firn as a broaI fron lho pasl, aro oflon associ-
alod vilh vords such as connilnonl, conpolonco, onpovornonl, fIoxibiIily,
cuIluro, porfornanco, assossnonl, rovard, loanvorI, invoIvononl, cooporalion,
harnonizalion, quaIily and Ioarning. Bul ´lho dangor of doscriplions of HRM as
nodorn bosl-nanagononl praclico is lhal lhoy sloroolypo lho pasl and idoaIizo lho
fuluro'.
Sisson (1990) suggoslod lhal: ´Tho Iocus of rosponsibiIily for porsonnoI nanago-
nonl no Iongor rosidos vilh (or is ´roIogalod lo¨) spociaIisl nanagors.' Moro roconlIy,
IurcoII   (2003) undorIinod lho inporlanco of Iino nanagononl connilnonl and
capabiIily as lho noans by vhich HR poIicios aro broughl lo Iifo.
focu· on bu·ínc·· vaíuc·
Tho concopl of HRM is IargoIy basod on a nanagononl and businoss-orionlod phiIos-
ophy. Il is concornod vilh lho lolaI inlorosls of lho organizalion ÷ lho inlorosls of lho
nonbors of lho organizalion aro rocognizod bul subordinalod lo lhoso of lho onlor-
priso. Honco lho inporlanco allachod lo slralogic inlogralion and slrong cuIluros,
vhich fIov fron lop nanagononl's vision and Ioadorship, and vhich roquiro poopIo
vho viII bo connillod lo lho slralogy, vho viII bo adaplabIo lo chango, and vho viII
fil lho cuIluro. By inpIicalion, as Guosl (1991) says: ´HRM is loo inporlanl lo bo Iofl lo
porsonnoI nanagors.'
In 1995 Loggo nolod lhal HRM poIicios aro adaplod lo drivo businoss vaIuos and
aro nodifiod in lho Iighl of changing businoss ob¡oclivos and condilions. Sho
doscribos lhis procoss as ´lhinIing pragnalisn' and suggosls lhal ovidonco indicalos
noro supporl for lho hard vorsions of HRM lhan lho sofl vorsion.
kLSLkVA1lCNS AßCL1 HkM
For sono lino HRM vas a conlrovorsiaI lopic, ospociaIIy in acadonic circIos. Tho
nain rosorvalions havo boon lhal HRM pronisos noro lhan il doIivors and lhal ils
noraIily is suspocl.
HR\ promí·c· morc |han í| can dcíívcr
Noon (1992) has connonlod lhal HRM has sorious doficioncios as a lhoory:
lt ìs buìít vìth concopts und proposìtìons, but tho ussocìutod vurìubíos und hypothosos
uro not mudo oxpíìcìt. lt ìs too comprohonsìvo. ll HkM ìs íuboííod u ´thoory' ìt ruìsos
oxpoctutìons ubout ìts ubìíìty to doscrìbo und prodìct.
Guosl (1991) boIiovos lhal HRM is an óplinislic bul anbiguous concopl', il is aII
hypo and hopo.
Maboy ci cl (1998) foIIov lhis up by assorling lhal ´lho horaIdod oulconos (of HRM)
aro aInosl vilhoul oxcoplion unroaIislicaIIy high'. To pul lho concopl of HRM inlo
praclico invoIvos slralogic inlogralion, dovoIoping a cohoronl and consislonl sol of
onpIoynonl poIicios, and gaining connilnonl. This roquiros high IovoIs of dolorni-
nalion and conpolonco al aII IovoIs of nanagononl and a slrong and offoclivo HR
funclion slaffod by businoss-orionlod poopIo. Il nay bo difficuIl lo nool lhoso criloria,
ospociaIIy vhon lho proposod HRM cuIluro confIicls vilh lho oslabIishod corporalo
cuIluro and lradilionaI nanagoriaI alliludos and bohaviour.
Grallon ci cl (1999) aro convincod on lho basis of lhoir rosoarch lhal lhoro is:
u dìs¡unctìon botvoon rhotorìc und rouíìty ìn tho urou ol humun rosourco munugomont
botvoon HkM thoory und HkM pructìco, botvoon vhut tho Hk lunctìon suys ìt ìs doìng
und thut pructìco us porcoìvod by ompíoyors, und botvoon vhut sonìor munugomont
boíìovos to bo tho roío ol tho Hk lunctìon, und tho roío ìt uctuuííy píuys.
In lhoir concIusions lhoy rofor lo lho ´hyporboIo and rholoric of hunan rosourco
nanagononl'.
CaIdvoII (2004) boIiovos lhal HRM ís an unfinishod pro¡ocl infornod by a soIf-
fuIfiIIing vision of vhal il s|cul! bo'.
In rosponso lo lho abovo connonls il is agrood lhal nany organizalions lhal lhinI
lhoy aro praclising HRM aro doing nolhing of lho Iind. Il is difficuIl, and il is bosl nol
lo oxpocl loo nuch. Mosl of lho nanagononls vho hurriodIy adoplod porfornanco-
roIalod pay as an HRM dovico lhal vouId acl as a Iovor for chango havo boon soroIy
disappoinlod.
Bul lho rosoarch conduclod by Guosl and Convay (1997) covoring a slralifiod
randon sanpIo of 1,000 vorIors oslabIishod lhal a nolabIy high IovoI of HRM vas
found lo bo in pIaco. This conlradicls lho viov lhal nanagononl has londod lo ´laII
up' lho adoplion of HRM praclicos. Tho HRM characlorislics covorod by lho survoy
incIudod lho opporlunily lo oxpross griovancos and raiso porsonaI concorns on such
nallors as opporlunilios for lraining and dovoIopnonl, connunicalions aboul busi-
noss issuos, singIo slalus, offoclivo syslons for doaIing vilh buIIying and harassnonl
al vorI, naIing ¡obs inlorosling and variod, pronolion fron vilhin, invoIvononl
progrannos, no conpuIsory rodundancios, porfornanco-roIalod pay, profil sharing
and lho uso of alliludo survoys.
Thc moraíí|, of HR\
HRM is accusod by nany acadonics of boing nanipuIalivo if nol posilivoIy innoraI.
WiIInoll (1993) ronarIs lhal HRM oporalos as a forn of insidious ćonlroI by conpIi-
anco' vhon il onphasizos lho nood for onpIoyoos lo bo connillod lo do vhal lho
organizalion vanls lhon lo do. Il proachos nuluaIily bul lho roaIily is lhal bohind lho
rholoric il oxpIoils vorIors. Il is, lhoy say, a voIf in shoop's cIolhing (Koonoy, 1990a).
As Loggo (1998) poinlod oul:
Sudíy, ìn u voríd ol ìntonsìlìod compotìtìon und scurco rosourcos, ìt sooms ìnovìtubío
thut, us ompíoyoos uro usod us mouns to un ond, thoro vìíí bo somo vho vìíí íoso out.
1hoy muy ovon bo ìn tho mu¡orìty. lor thoso poopío, tho solt vorsìon ol HkM muy bo un
ìrroíovuncy, vhìío tho hurd vorsìon ìs íìkoíy to bo un uncomlortubío oxporìonco.
Tho accusalion lhal HRM lroals onpIoyoos as noans lo an ond is oflon nado.
Hovovor, il couId bo arguod lhal if organizalions oxisl lo achiovo onds, vhich lhoy
obviousIy do, and if lhoso onds can onIy bo achiovod lhrough poopIo, vhich is cIoarIy
lho caso, lho concorn of nanagononls for connilnonl and porfornanco fron lhoso
poopIo is nol unnaluraI and is nol allribulabIo lo lho concopl of HRM ÷ il oxislod in
lho good oId days of porsonnoI nanagononl boforo HRM vas invonlod. Whal
nallors is hov nanagononls lroal poopIo as onds and vhal nanagononls provido in
rolurn.
Much of lho hosliIily lo HRM oxprossod by a nunbor of acadonics is basod on lho
boIiof lhal il is hosliIo lo lho inlorosls of vorIors, io lhal il is nanagoriaIisl. Hovovor,
lho Guosl and Convay (1997) rosoarch oslabIishod lhal lho roporls of vorIors on
oulconos shovod lhal a highor nunbor of HR praclicos voro associalod vilh highor
ralings of fairnoss, lrusl and nanagononl's doIivory of lhoir pronisos. Thoso oxpori-
oncing noro HR aclivilios aIso foIl noro socuro in and noro salisfiod vilh lhoir ¡obs.
Molivalion vas significanlIy highor for lhoso vorIing in organizalions vhoro noro
HR praclicos voro in pIaco. In sunnary, as connonlod by Guosl (1999b), il appoars
lhal vorIors IiIo lhoir oxporionco of HRM. Thoso findings appoar lo conlradicl lho
´radicaI criliquo' viov producod by acadonics such as Maboy   (1998) lhal HRM
has boon inoffocluaI, pornicious (io nanagoriaIisl) or bolh. Sono of lhoso vho adopl
lhis slanco lond lo disniss favourabIo roporls fron vorIors aboul HRM on lho
grounds lhal lhoy havo boon brainvashod by nanagononl. Bul lhoro is no ovidonco
lo supporl lhis viov. Moroovor, as Arnslrong (2000a) poinlod oul:
HkM cunnot bo bíumod or gìvon crodìt lor chungos thut voro tukìng píuco unyvuy. lor
oxumpío, ìt ìs olton uííogod to huvo ìnspìrod u movo lrom píuruíìsm to unìturìsm ìn ìndus-
trìuí roíutìons. ßut novspupor productìon vus movod lrom líoot Stroot to \uppìng by
Murdoch, not bocuuso ho hud roud u book ubout HkM but us u mouns ol broukìng tho
prìnt unìons' controí.
Con|radíc|íon· ín |hc rc·crva|íon· abou| HR\
Guosl (1999a) has suggoslod lhal lhoro aro lvo conlradiclory concorns aboul HRM.
Tho firsl as fornuIalod by Loggo (1995, 1998) is lhal vhiIo nanagononl rholoric nay
oxpross concorn for vorIors, lho roaIily is harshor. Koonoy (1997) conpIains lhal: ´Tho
roaI puzzIo aboul HRMisn is hov, in lho faco of such apparonlIy ovorvhoIning cril-
icaI ´rofulalion¨, il has socurod such infIuonco and inslilulionaI prosonco.'
Olhor vrilors, hovovor, sinpIy cIain lhal HRM doos nol vorI. Scoll (1994) for
oxanpIo, finds lhal bolh nanagononl and vorIors aro caplivos of lhoir hislory and
find il vory difficuIl lo Iol go of lhoir lradilionaI advorsariaI orionlalions. Bul lhoso
conlonlions aro conlradiclory. Guosl (1999b) ronarIs lhal, Íl is difficuIl lo lroal HRM
as a na¡or lhroal (lhough vhal il is a lhroal lo is nol aIvays nado oxpIicil) dosorving
of sorious crilicaI anaIysis vhiIo al lho sano lino cIaining lhal il is nol praclicod or is
inoffoclivo.'
HkM AND lLkSCNNLL MANACLMLN1
A dobalo aboul lho difforoncos, if any, bolvoon HRM and porsonnoI nanagononl
vonl on for sono lino. Il has diod dovn roconlIy, ospociaIIy as lho lorns HRM and
HR aro nov in gonoraI uso bolh in lhoir ovn righl and as synonyns for porsonnoI
nanagononl. Bul undorslanding of lho concopl of HRM is onhancod by anaIysing
vhal lho difforoncos aro and hov lradilionaI approachos lo porsonnoI nanagononl
havo ovoIvod lo bocono lho prosonl day praclicos of HRM.
Sono connonlalors (Hopo-HaiIoy  , 1998, Koonoy, 1990b, Loggo, 1989, 1995,
Sisson, 1990, Sloroy, 1993) havo highIighlod lho rovoIulionary naluro of HRM. Olhors
havo doniod lhal lhoro is any significanl difforonco in lho concopls of porsonnoI
nanagononl and HRM. Torringlon (1989) suggoslod lhal: ÍorsonnoI nanagononl
has grovn lhrough assiniIaling a nunbor of addilionaI onphasos lo produco an ovon
richor conbinalion of oxporionco. HRM is no rovoIulion bul a furlhor dinonsion lo
a nuIli-facolod roIo.'
Tho concIusion basod on inlorviovs vilh HR and porsonnoI diroclors roachod by
Gonnard and KoIIy (1994) on lhis issuo vas lhal íl is six of ono and haIf a dozon of lho
olhor and il is a sloriIo dobalo'. An oarIior ansvor lo lhis quoslion vas nado by
Arnslrong (1987):
HkM ìs rogurdod by somo porsonnoí munugors us ¡ust u sot ol ìnìtìuís or oíd vìno ìn nov
bottíos. lt couíd ìndood bo no moro und no íoss thun unothor numo lor porsonnoí
munugomont, but us usuuííy porcoìvod, ut íoust ìt hus tho vìrtuo ol omphusìzìng tho vìrtuo
ol troutìng poopío us u koy rosourco, tho munugomont ol vhìch ìs tho dìroct concorn ol
top munugomont us purt ol tho strutogìc píunnìng procossos ol tho ontorprìso. Aíthough
thoro ìs nothìng nov ìn tho ìdou, ìnsullìcìont uttontìon hus boon puìd to ìt ìn muny orgu-
nìzutìons.
Tho siniIarilios and difforoncos bolvoon HRM and porsonnoI nanagononl aro
sunnarizod in TabIo 1.1.
SimiIaritics Diffcrcnccs
l. lorsonnoí munugomont strutogìos, íìko l. HkM píucos moro omphusìs on strutogìc
HkM strutogìos, líov lrom tho busìnoss lìt und ìntogrutìon.
strutogy. 2. HkM ìs busod on u munugomont und
2. lorsonnoí munugomont, íìko HkM, busìnoss orìontutod phìíosophy.
rocognìzos thut íìno munugors uro 3. HkM uttuchos moro ìmportunco to tho
rosponsìbío lor munugìng poopío. 1ho munugomont ol cuíturo und tho
porsonnoí lunctìon provìdos tho nocossury uchìovomont ol commìtmont tmutuuíìty).
udvìco und support sorvìcos to onubío 4. HkM píucos groutor omphusìs on tho
munugors to curry out thoìr rosponsìbìíìtìos. roío ol íìno munugors us tho ìmpíomontors
3. 1ho vuíuos ol porsonnoí munugomont und ol Hk poíìcìos.
ut íoust tho ´solt' vorsìon ol HkM uro 5. HkM ìs u hoíìstìc upprouch concornod
ìdontìcuí vìth rogurd to ´rospoct lor tho vìth tho totuí ìntorosts ol tho busìnoss -
ìndìvìduuí', buíuncìng orgunìzutìonuí und tho ìntorosts ol tho mombors ol tho
ìndìvìduuí noods, und dovoíopìng poopío orgunìzutìon uro rocognìzod but
to uchìovo thoìr muxìmum íovoí ol subordìnutod to thoso ol tho ontorprìso.
compotonco both lor thoìr ovn sutìsluctìon 6. Hk spocìuíìsts uro oxpoctod to bo busìnoss
und to lucìíìtuto tho uchìovomont ol purtnors ruthor thun porsonnoí
orgunìzutìonuí ob¡octìvos. udmìnìstrutors.
4. ßoth porsonnoí munugomont und HkM 7. HkM trouts ompíoyoos us ussots not costs.
rocognìzo thut ono ol thoìr most ossontìuí
lunctìons ìs thut ol mutchìng poopío to
ovor-chungìng orgunìzutìonuí
roquìromonts - píucìng und dovoíopìng tho
rìght poopío ìn und lor tho rìght ¡obs.
5. 1ho sumo rungo ol soíoctìon, compotonco
unuíysìs, porlormunco munugomont,
truìnìng, munugomont dovoíopmont und
rovurd munugomont tochnìquos uro usod
both ìn HkM und porsonnoí munugomont.
6. lorsonnoí munugomont, íìko tho ´solt'
vorsìon ol HkM, uttuchos ìmportunco to
tho procossos ol communìcutìon und
purtìcìputìon vìthìn un ompíoyoo
roíutìons systom.
  SiniIarilios and difforoncos bolvoon HRM and porsonnoI nanagononl
Tho difforoncos bolvoon porsonnoI nanagononl and hunan rosourco nanagononl
appoar lo bo subslanliaI bul lhoy can bo soon as a nallor of onphasis and approach
ralhor lhan ono of subslanco. Or, as Hondry and Iolligrov (1990) pul il, HRM can bo
porcoivod as a ´porspoclivo on porsonnoI nanagononl and nol porsonnoI nanago-
nonl ilsoIf'.
HC\ Hk lMlAC1S CN CkCANlZA1lCNAL
lLklCkMANCL
Tho assunplion undorpinning lho praclico of HRM is lhal poopIo aro lho organiza-
lion's Ioy rosourco and organizalionaI porfornanco IargoIy doponds on lhon. If,
lhoroforo, an approprialo rango of HR poIicios and procossos aro dovoIopod and
inpIononlod offoclivoIy, lhon HR viII naIo a subslanliaI inpacl on firn porfor-
nanco.
Tho HoIy GraiI soughl by nany connonlalors on hunan rosourco nanagononl is
lo oslabIish lhal a cIoar posilivo IinI bolvoon HRM praclicos and organizalionaI por-
fornanco oxisls. Thoro has boon nuch rosoarch, as sunnarizod in TabIo 1.2, ovor lho
Iasl docado or so lhal has allonplod lo ansvor lvo basic quoslions: ´Do HR praclicos
naIo a posilivo inpacl on organizalionaI porfornanco`' Íf so, hov is lho inpacl
achiovod`' Tho socond quoslion is lho nosl inporlanl ono. Il is nol onough lo ¡uslify
HRM by proving lhal il is a good lhing. Whal counls is vhal can bo dono lo onsuro
lhal il is a good lhing. This is lho ´bIacI box' nonlionod by IurcoII   (2003) lhal Iios
bolvoon inlonlions and oulconos.
UIrich (1997a) has poinlod oul lhal: ´HR praclicos soon lo nallor, Iogic says il is so,
survoy findings confirn il. Dirocl roIalionships bolvoon invoslnonl and allonlion lo
HR praclicos aro oflon fuzzy, hovovor, and vary according lo lho popuIalion sanpIod
and lho noasuros usod'.
IurcoII   (2003) havo casl doubls on lho vaIidily of sono of lho allonpls lhrough
rosoarch lo naIo lho connoclion:
Cur study hus domonstrutod convìncìngíy thut rosourch vhìch oníy usks ubout tho
numbor und oxtont ol Hk pructìcos cun novor bo sullìcìont to undorstund tho íìnk
botvoon Hk pructìcos und busìnoss porlormunco. As vo huvo dìscussod ìt ìs mìsíoudìng
to ussumo thut sìmpíy bocuuso Hk poíìcìos uro prosont thut thoy vìíí bo ìmpíomontod us
ìntondod.
Furlhor connonls aboul allonpls lo lraco lho IinI havo boon nado by Truss (2001)
vho, foIIoving rosoarch in HovIoll-IacIard, ronarIod lhal:
20 Munugìng poopío
Cur lìndìngs dìd íond strong support to tho urgumont put lorvurd by Muoííor tl996) thut
tho ìnlormuí orgunìzutìon hus u koy roío to píuy ìn tho HkM procoss such thut ìnlormuí
pructìco und norms ol bohuvìour ìntoruct vìth lormuí Hk poíìcìos... \o cunnot consìdor
hov HkM und porlormunco uro íìnkod vìthout unuíysìng, ìn somo dotuìí, hov poíìcy ìs
turnod ìnto pructìco through tho íons ol tho ìnlormuí orgunìzutìon.
Rc·carch ou|comc·
AconsidorabIo anounl of rosoarch has boon carriod oul lo oslabIish lho IinI bolvoon
HRM and firn porfornanco. Tho oulconos of sono of lho nain pro¡ocls aro sunna-
rizod in TabIo 1.2.
Humun rosourco munugomont 2l
kcscarcbcr(s) MctbodoIogy Outcomcs
Arthur tl990, Dutu lrom 30 LS strìp mìíís usod to lìrms vìth u hìgh commìtmont
l992, l994) ussoss ìmpuct on íubour ollìcìoncy strutogy hud sìgnìlìcuntíy hìghor
und scrup ruto by roloronco to tho íovoís ol both productìvìty und
oxìstonco ol oìthor u hìgh quuíìty thun thoso vìth u
commìtmont strutogy* or u controí strutogy.
controí strutogy*.
Husoíìd tl995) Anuíysìs ol tho rosponsos ol 968 LS lroductìvìty ìs ìnlíuoncod by
lìrms to u quostìonnuìro oxpíorìng ompíoyoo motìvutìon, lìnuncìuí
tho uso ol hìgh porlormunco vork porlormunco ìs ìnlíuoncod by
pructìcos*, tho dovoíopmont ol ompíoyoo skìíís, motìvutìon und
synorgìos botvoon thom und tho orgunìzutìonuí structuros.
uíìgnmont ol thoso pructìcos vìth
tho compotìtìvo strutogy.
Husoíìd und An ìndox ol Hk systoms ìn 740 lìrms vìth hìgh vuíuos on tho
ßockor tl996) lìrms vus croutod to ìndìcuto tho ìndox hud oconomìcuííy und
dogroo to vhìch ouch lìrm udoptod stutìstìcuííy hìghor íovoís ol
u hìgh porlormunco vork systom. porlormunco.
ßockor c| aí Cutcomos ol u numbor ol rosourch Hìgh porlormunco systoms muko
tl997) pro¡octs voro unuíysod to ussoss tho un ìmpuct us íong us thoy uro
strutogìc ìmpuct on shurohoídor omboddod ìn tho munugomont
vuíuo ol hìgh porlormunco vork ìnlrustructuro.
systoms.
TabIc 1.2 Oulconos of rosoarch on lho IinI bolvoon HR and organizalionaI porfor-
nanco
luttorson   1ho rosourch oxumìnod tho íìnk Hk pructìcos oxpíuìnod sìgnìlìcunt
tl997) botvoon busìnoss porlormunco und vurìutìons ìn prolìtubìíìty und
orgunìzutìon cuíturo und tho uso ol productìvìty tl9% und l8%
u numbor ol Hk pructìcos. rospoctìvoíy). 1vo Hk pructìcos
voro purtìcuíuríy sìgnìlìcunt: tl) tho
ucquìsìtìon und dovoíopmont ol
ompíoyoo skìíís und t2) ¡ob dosìgn
ìncíudìng líoxìbìíìty, rosponsìbìíìty,
vurìoty und tho uso ol lormuí toums.
1hompson tl998) A study ol tho ìmpuct ol hìgh 1ho numbor ol Hk pructìcos und
porlormunco vork pructìcos such us tho proportìon ol tho vorklorco
toumvorkìng, uppruìsuí, ¡ob rotutìon, covorod uppourod to bo tho koy
broud-bundod grudo structuros und dìllorontìutìng luctor botvoon moro
shurìng ol busìnoss ìnlormutìon ìn und íoss succossluí lìrms.
623 LK uorospuco ostubíìshmonts.
1ho l998 An unuíysìs ol tho survoy vhìch A strong ussocutìon oxìsts botvoon
\orkpíuco sumpíod somo 2,000 vorkpíucos HkM und both ompíoyoo
Lmpíoyoo und obtuìnod tho vìovs ol ubout uttìtudos und vorkpíuco
koíutìons Survoy 28,000 ompíoyoos. porlormunco.
tus unuíysod by
Cuost  
2000u)
1ho luturo ol 835 prìvuto soctor orgunìzutìons A groutor uso ol Hk pructìcos ìs
\ork Survoy, voro survoyod und ìntorvìovs voro ussocìutod vìth hìghor íovoís ol
Cuost   currìod out vìth 6l0 Hk ompíoyoo commìtmont und
t2000b) prolossìonuís und 462 chìol contrìbutìon und ìs ìn turn íìnkod
oxocutìvos. to hìghor íovoís ol productìvìty
und quuíìty ol sorvìcos.
lurcoíí   A Lnìvorsìty ol ßuth íongìtudìnuí 1ho most succossluí compunìos hud
t2003) study ol l2 compunìos to ostubíìsh vhut tho rosourchors cuííod ´tho bìg
hov poopío munugomont ìmpucts on ìdou'. 1ho compunìos hud u cíour
orgunìzutìonuí porlormunco. vìsìon und u sot ol ìntogrutod vuíuos
vhìch voro omboddod, ondurìng,
coííoctìvo, mousurod und munugod.
1hoy voro concornod vìth
sustuìnìng porlormunco und
líoxìbìíìty. Cíour ovìdonco oxìstod
botvoon posìtìvo uttìtudos tovurds
Hk poíìcìos und pructìcos, íovoís ol
sutìsluctìon, motìvutìon und
TabIc 1.2 

Hov HR ma|c· an ímpac|
In Guosl ci cl (2000b) lho roIalionship bolvoon HRM and porfornanco vas nodoIIod
as shovn in Figuro 1.4.
commìtmont, und oporutìonuí
porlormunco. loíìcy und pructìco
ìmpíomontutìon tnot tho numbor
ol Hk pructìcos udoptod) ìs tho
vìtuí ìngrodìont ìn íìnkìng poopío
munugomont to busìnoss
porlormunco und thìs ìs prìmurìíy
tho tusk ol íìno munugors.
* ln tho LS rosourch pro¡octs sot out ìn 1ubío l.2 roloronco ìs mudo to tho ìmpuct mudo by tho loííovìng
strutogìos: A commí|mcn| ·|ra|cg, - u strutogy, us doscrìbod by \uíton tl985b) vhìch promotos mutuuíìty
botvoon ompíoyors und ompíoyoos. A con|roí ·|ra|cg, - us doscrìbod by \uíton tl985b), ono ìn vhìch tho
uìm ìs to ostubíìsh ordor, oxorcìso controí und uchìovo ollìcìoncy ìn tho uppíìcutìon ol tho vorklorco but
vhoro ompíoyoos dìd not huvo u voìco oxcopt through thoìr unìons. Hígh pcrformancc vor| ·,·|cm· - thoso
uìm to ìmpuct on porlormunco through ìts poopío by tho uso ol such pructìcos us rìgorous rocruìtmont und
soíoctìon procoduros, oxtonsìvo und roíovunt truìnìng und munugomont dovoíopmont uctìvìtìos, ìncontìvo
puy systoms und porlormunco munugomont procossos.
TabIc 1.2 ccniinuc!
Business
strategy
HR strategy
Quality of
goods and
services
Productivity
HR effectiveness
Financial
performance
HR practices
HR outcomes
Employee:
competence
commitment
flexibility
FIgurc 1.4 ModoI of lho IinI bolvoon HRM and porfornanco (Scurcc: Guosl ci cl,
2000b)
Tho nossagos fron rosoarch, ospociaIIy lhal carriod oul by IurcoII ci cl (2003), aro lhal
HR can naIo an inpacl by Ioading or conlribuling lo:
lho dovoIopnonl and succossfuI inpIononlalion of high porfornanco vorI prac-
licos, parlicuIarIy lhoso concornod vilh ¡ob and vorI dosign, fIoxibIo vorIing,
rosourcing (rocruilnonl and soIoclion and laIonl nanagononl), onpIoyoo dovoI-
opnonl (incroasing sIiIIs and oxlonding lho sIiIIs baso), rovard, and giving
onpIoyoos a voico,
lho fornuIalion and onbodding of a cIoar vision and sol of vaIuos (lho big idoa),
lho dovoIopnonl of a posilivo psychoIogicaI conlracl and noans of incroasing lho
nolivalion and connilnonl of onpIoyoos,
lho fornuIalion cn! inpIononlalion of poIicios vhich, in lho vords of IurcoII ci cl
(2003) nool lho noods of individuaIs and ćroalo a groal pIaco lo vorI',
lho provision of supporl and advico lo Iino nanagors on lhoir roIo in inpIo-
nonling HR poIicios and praclicos,
lho offoclivo nanagononl of chango.
HkM lN CCN1LX1
HRM procossos laIo pIaco vilhin lho conloxl of lho inlornaI and oxlornaI onviron-
nonl of lho organizalion. Thoy viII bo IargoIy conlingonl on lho onvironnonlaI
faclors lhal affocl lhon.
Con|íngcnc, |hcor,
Conlingoncy lhoory loIIs us lhal dofinilions of ains, poIicios and slralogios, Iisls of
aclivilios, and anaIysos of lho roIo of lho HR doparlnonl aro vaIid onIy if lhoy aro
roIalod lo lho circunslancos of lho organizalion. Doscriplions in booIs such as lhis
can onIy bo gonoraIizalions lhal suggosl approachos and provido guidoIinos for
aclion, lhoy cannol bo proscriplivo in lho sonso of Iaying dovn vhal shouId bo dono.
Conlingoncy lhoory is ossonliaIIy aboul lho nood lo achiovo jii bolvoon vhal lho
organizalion is and vanls lo bocono (ils slralogy, cuIluro, goaIs, lochnoIogy, lho
poopIo il onpIoys and ils oxlornaI onvironnonl) and vhal lho organizalion doos
(hov il is slruclurod, and lho procossos, procoduros and praclicos il puls inlo offocl).
Con|cx|uaí fac|or·
Thoro aro lhroo nain conloxluaI faclors lhal infIuonco HR poIicios and praclicos.
1. TccbnoIogy
Tho lochnoIogy of lho businoss oxorls a na¡or infIuonco on lho inlornaI onvironnonl ÷
hov vorI is organizod, nanagod and carriod oul. Tho inlroduclion of nov loch-
noIogy nay rosuIl in considorabIo changos lo syslons and procossos. Difforonl sIiIIs
aro roquirod and nov nolhods of vorIing aro dovoIopod. Tho rosuIl nay bo an oxlon-
sion of lho sIiIIs baso of lho organizalion and ils onpIoyoos, incIuding nuIlisIiIIing
(onsuring lhal poopIo havo a rango of sIiIIs lhal onabIo lhon lo vorI fIoxibIy on a
varioly of lasIs, oflon vilhin a loanvorIing onvironnonl). Bul il couId rosuIl in do-
sIiIIing and a roduclion in lho nunbor of ¡obs (dovnsizing).
Nov lochnoIogy can lhoroforo prosonl a considorabIo lhroal lo onpIoyoos. Tho
vorId of vorI has changod in nany vays. KnovIodgo vorIors aro onpIoyod in
IargoIy conpulorizod officos and Iaboralorios, and lochnicians vorI in conpulor
inlogralod nanufacluring syslons. Thoy nay havo lo bo nanagod difforonlIy fron
lho cIorIs or nachino oporalors lhoy dispIaco. Tho sorvico induslrios havo bocono
prodoninanl and nanufacluring is in docIino. Nov vorI onvironnonls such as caII
conlros havo bocono connon and loIo-vorIing (vorIing fron hono vilh a nol-
vorIod conpulor) is incroasing.
2. Compctitivc prcssurcs
GIobaI conpolilion in naluro produclion and sorvico soclors is incroasing. This is
assislod by oasiIy lransforabIo lochnoIogy and roduclions in inlornalionaI lrado
barriors. Cuslonors aro donanding noro as nov slandards aro roachod lhrough
inlornalionaI conpolilion. Organizalions aro roacling lo lhis conpolilion by bocon-
ing ćuslonor-focusod', spooding up rosponso linos, onphasizing quaIily and conlin-
uous inprovononl, accoIoraling lho inlroduclion of nov lochnoIogy, oporaling noro
fIoxibIy and Íosing cosl'.
Tho prossuro has boon for businossos lo bocono Íoan organizalions', dovnsizing
and culling oul Iayors of nanagononl and suporvision. Thoy aro roducing pornanonl
slaff lo a coro of ossonliaI vorIors, incroasing lho uso of poriphoraI vorIors (sub-
conlraclors, lonporary slaff) and óulsourcing' vorI lo oxlornaI sorvico providors.
Tho ain is lo roduco onpIoynonl cosls and onabIo lho onlorpriso oasiIy lo incroaso or
roduco lho nunbors avaiIabIo for vorI in rosponso lo fIuclualions in lho IovoI of
businoss aclivily. Thoy bocono lho so-caIIod ´fIoxibIo firns'. Tho uIlinalo dovoIop-
nonl of lhis procoss is lho ´virluaI' firn or corporalion, vhoro lhrough lho oxlon-
sivo uso of infornalion lochnoIogy a high proporlion of narIoling and profossionaI
slaff nainIy vorI fron hono, onIy coning inlo lho offico on spociaI occasions
lo occupy lhoir ´hol dosIs', and sponding noro lino vilh lhoir cuslonors or
cIionls.
Anolhor rosponso lo conpolilivo prossuros is businoss procoss ro-onginooring
(BIR), vhich oxaninos lho procoss lhal conlains and IinIs lhoso funclions logolhor
fron inilialion lo conpIolion. Il IooIs al procossos in organizalions horizonlaIIy lo
oslabIish hov lhoy can bo inlogralod noro offoclivoIy as voII as slroanIinod. Il can
lhoroforo forn lho basis for an organizalionaI rodosign oxorciso. Fron an HR poinl of
viov, lho oulcono of a BIR oxorciso nay voII bo lho nood lo allracl or dovoIop poopIo
vilh nov sIiIIs as voII as prossuro for lho inprovononl of loan vorIing. Il aIso
onphasizos lho inporlanco of an inlogralod ÷ a cohoronl ÷ approach lo lho dovoIop-
nonl and inpIononlalion of HR poIicios and onpIoynonl praclicos. Ro-onginooring
oflon pronisos noro lhan il achiovos and is nol rogardod as highIy as il onco vas, nol
Ioasl bocauso il oflon nogIoclod lho hunan aspocls, giving insufficionl allonlion lo lho
nanagononl of chango and rolraining slaff.
3. kcsponscs affccting pcopIc
Tho rosponsos lo lho incroasod uso of lochnoIogy and lo ocononic and conpolilivo
prossuros havo changod lho naluro of poopIo nanagononl in a nunbor of vays.
Thoso incIudo sIinnor and fIallor organizalion slrucluros in vhich cross-funclionaI
oporalions and loanvorIing havo bocono noro inporlanl, noro fIoxibIo vorIing
pallorns, lolaI quaIily and Ioan produclion inilialivos, and lho doconlraIizalion and
dovoIvononl of docision-naIing.
Thc chaíícngc |o HR\
UIrich (1998) suggosls lhal onvironnonlaI and conloxluaI changos prosonl a nunbor
of conpolilivo chaIIongos lo organizalions lhal noan lhal HR has lo bo invoIvod in
hoIping lo buiId nov capabiIilios. Thoso conpriso:
Glc|clizciicn, vhich roquiros organizalions lo novo poopIo, idoas, producls and
infornalion around lho vorId lo nool IocaI noods. Nov and inporlanl ingrodi-
onls nusl bo addod lo lho nix vhon naIing slralogy: voIaliIo poIilicaI silualions,
conlonlious gIobaI lrado issuos, fIuclualing oxchango ralos and unfaniIiar
cuIluros.
Prcjiic|iliiq i|rcug| grcui| ÷ lho drivo for rovonuo grovlh noans lhal conpanios
nusl bo croalivo and innovalivo and lhis noans oncouraging lho froo fIov of
infornalion and sharod Ioarning anong onpIoyoos.
1cc|nclcgq ÷ lho chaIIongo is lo naIo lochnoIogy a viabIo, produclivo parl of lho
vorI solling.
lnicllcciucl ccpiicl ÷ lhis is lho sourco of conpolilivo advanlago for organizalions.
Tho chaIIongo is lo onsuro lhal firns havo lho capabiIily lo find, assiniIalo,
conponsalo and rolain hunan capilaI in lho shapo of lho laIonlod individuaIs
lhoy nood vho can drivo a gIobaI organizalion lhal is bolh rosponsivo lo ils
cuslonors and ´lho burgooning opporlunilios of lochnoIogy'. Thoy havo aIso lo
considor hov lho sociaI capilaI of lho organizalion ÷ lho vays in vhich poopIo
inloracl ÷ can bo dovoIopod. InporlanlIy, organizalions havo lo focus on organi-
zalionaI capilaI ÷ lho InovIodgo lhoy ovn and hov il shouId bo nanagod.
C|cngc, c|cngc cn! mcrc c|cngc ÷ lho groalosl chaIIongo conpanios faco is
ad¡usling lo ÷ indood, onbracing ÷ non-slop chango. Thoy nusl bo abIo lo Íoarn
rapidIy and conlinuousIy, and laIo on nov slralogic inporalivos faslor and noro
conforlabIy'.
Humun cupìtuí munugomont
Hunan capilaI nanagononl (HCM) has boon doscribod as á paradign shifl' fron
lho lradilionaI approach lo hunan rosourco nanagononl (Koarns, 2005b) ÷ a Iargo
cIain. Il is considorod in lhis chaplor iniliaIIy by dofining lho concopl of hunan
capilaI nanagononl and ils roIalionship lo lho concopl of hunan rosourco nanago-
nonl. To undorsland HCM il is nocossary lo Inov aboul lho concopl of hunan
capilaI, vhich is lho noxl soclion hoading. Tho chaplor is conpIolod vilh an anaIysis
of lho procossos invoIvod in HCM incIuding a discussion of hunan capilaI noasuro-
nonl and roporling.
HLMAN CAll1AL MANACLMLN1 DLllNLD
Hunan capilaI nanagononl (HCM) is concornod vilh oblaining, anaIysing and
roporling on dala lhal inforns lho diroclion of vaIuo-adding poopIo nanagononl,
slralogic invoslnonl and oporalionaI docisions al corporalo IovoI and al lho IovoI of
fronl Iino nanagononl. Tho dofining characlorislic of HCM is lhis uso of nolrics lo
guido an approach lo nanaging poopIo lhal rogards lhon as assols and onphasizos
lhal conpolilivo advanlago is achiovod by slralogic invoslnonls in lhoso assols
lhrough onpIoyoo ongagononl and rolonlion, laIonl nanagononl and Ioarning and
dovoIopnonl progrannos.

Tho Accounling for IoopIo TasI Forco Roporl (2003) slalod lhal HCM invoIvos
lho syslonalic anaIysis, noasurononl and ovaIualion of hov poopIo poIicios and
praclicos croalo vaIuo. Tho roporl dofinod HCM as án approach lo poopIo nanago-
nonl lhal lroals il as a high IovoI slralogic issuo ralhor lhan an oporalionaI nallor ´lo
bo Iofl lo lho HR poopIo¨ '. Tho TasI Forco oxprossod lho viov lhal HCM ´has
boon undor-oxpIoilod as a vay of gaining conpolilivo odgo'. As }ohn SundorIand,
TasI Forco nonbor and Exoculivo Chairnan of Cadbury Schvoppos pIc connonlod:
Án organizalion's succoss is lho producl of ils poopIo's conpolonco. Thal IinI
bolvoon poopIo and porfornanco shouId bo nado visibIo and avaiIabIo lo aII slaIo-
hoIdors.'
NaIbanlian ci cl (2004) onphasizo lho noasurononl aspocl of HCM. Thoy dofino
hunan capilaI as, ´Tho slocI of accunuIalod InovIodgo, sIiIIs, oxporionco, croalivily
and olhor roIovanl vorIforco allribulos' and suggosl lhal hunan capilaI nanagononl
invoIvos ´pulling inlo pIaco lho nolrics lo noasuro lho vaIuo of lhoso allribulos and
using lhal InovIodgo lo offoclivoIy nanago lho organizalion'. HCM is dofinod by
Koarns (2005b) as ´Tho lolaI dovoIopnonl of hunan polonliaI oxprossod as organiza-
lionaI vaIuo.' Ho boIiovos lhal ´HCM is aboul croaling vaIuo lhrough poopIo' and lhal
il is á poopIo dovoIopnonl phiIosophy, bul lho onIy dovoIopnonl lhal noans
anylhing is lhal vhich is lransIalod inlo vaIuo'.
HLMAN CAll1AL MANACLMLN1 AND HLMAN
kLSCLkCL MANACLMLN1
In lho opinion of Mayo (2001) lho ossonliaI difforonco bolvoon HCM and HRM is lhal
lho fornor lroals poopIo as assols vhiIo lho Iallor lroals lhon as cosls. Koarns (2005b)
boIiovos lhal in HCM ´poopIo aro vaIuo addors, nol ovorhoads' vhiIo in HRM ´poopIo
aro (lroalod as) a significanl cosl and shouId bo nanagod accordingIy'. According lo
Koarns, in HRM ´lho HR loan is soon as a supporl sorvico lo lho Iino' ÷ HR is basod
around lho funclion and lho HR loan porforns á dislincl and soparalo roIo fron
olhor funclions'. ConvorsoIy, ´HCM is cIoarIy soon and rospoclod as an oquaI businoss
parlnor al sonior IovoIs' and is ´hoIislic, organizalion-vido and syslons-basod' as voII
as boing slralogic and concornod vilh adding vaIuo.
Tho cIain lhal in HRM onpIoyoos aro lroalod as cosls is nol supporlod by lho
doscriplions of lho ccnccpi of HRM producod by Anorican vrilors such as Boor ci cl
(1984). In ono of lho soninaI loxls on hunan rosourco nanagononl, lhoy onphasizod
lho nood for: á Iongor-lorn porspoclivo in nanaging poopIo and considoralion of
poopIo as polonliaI assols ralhor lhan noroIy a variabIo cosl'. Fonbrun ci cl (1984), in
lho olhor soninaI loxl, quilo oxpIicilIy prosonlod vorIors as a Ioy rosourco lhal
nanagors uso lo achiovo conpolilivo advanlago for lhoir conpanios. Granl (1991)
Iisls lho nain characlorislics of hunan rosourcos in his gonoraI cIassificalion of a
firn's polonliaI rosourcos as foIIovs:
Tho lraining and oxporliso of onpIoyoos dolorninos lho sIiIIs avaiIabIo lo lho
firn.
Tho adaplabiIily of onpIoyoos dolorninos lho slralogic fIoxibiIily of lho firn.
Tho connilnonl and IoyaIly of onpIoyoos dolornino lho firn's abiIily lo nain-
lain conpolilivo advanlago.
CappoIIi and Singh (1992) proposo lhal conpolilivo advanlago arisos fron firn-
spocific, vaIuabIo rosourcos lhal aro difficuIl lo inilalo, and slross ´lho roIo of hunan
rosourco poIicios in lho croalion of vaIuabIo, firn-spocific sIiIIs'.
Olhor vrilors confirnod lhis viov. For oxanpIo:
HkM ìs un úpprouch to íubour munugomont vhìch trouts íubour us u vuíuod  ruthor
thun u vurìubío cost und vhìch consoquontíy counsoís ìnvostmont ìn tho íubour rosourco
through truìnìng und dovoíopmont und through mousuros dosìgnod to uttruct und rotuìn
u commìttod vorklorco'. tStoroy, l989)
Humun rosourco munugomont ìs u dìstìnctìvo upprouch to ompíoymont munugomont
thut sooks to obtuìn compotìtìvo udvuntugo through tho strutogìc dopíoymont ol u hìghíy
commìttod und cupubío vorklorco, usìng un ìntogrutod urruy ol cuíturuí, structuruí und
porsonnoí tochnìquos. tStoroy, l995)
Tho HRM argunonl is lhal poopIo. aro nol lo bo soon as a cosl, bul as an  in
vhich lo invosl, so adding lo lhoir inhoronl vaIuo. (Torringlon, 1989, onphasis in lho
originaI)
Of courso, aII lhoso connonlalors aro vriling aboul HRM as a boIiof syslon, nol
aboul hov il vorIs in praclico. Tho aInosl univorsaI ropIacononl of lho lorn
´porsonnoI nanagononl' vilh HR or HRM doos nol noan lhal ovoryono vilh lho ¡ob
lilIo of HR diroclor or nanagor is basing lhoir approach on lho HRM phiIosophy.
Guosl connonlod in 1991 lhal HRM vas áII hypo and hopo'.
A survoy conduclod by CaIdvoII (2004) providod sono supporl lo lhis viov by
oslabIishing lhal lho fivo nosl inporlanl HR poIicy aroas idonlifiod by rospondonls
voro aIso lho fivo in vhich lho Ioasl progross had boon nado. For oxanpIo, vhiIo 89
por conl of rospondonls said lho nosl inporlanl HR poIicy vas ńanaging poopIo as
assols vhich aro fundanonlaI lo lho conpolilivo advanlago of lho organizalion', onIy
37 por conl slalod lhal lhoy had nado any progross in inpIononling il.
Humun cupìtuí munugomont 3l
Hovovor, rosoarch conduclod by Hoquo and Moon (2001) found lhal lhoro
voro significanl difforoncos bolvoon lho aclivilios of lhoso doscribod as HR spociaIisls
and lhoso doscribod as porsonnoI spociaIisls. For oxanpIo, vorIpIaco-IovoI
slralogic pIans aro noro IiIoIy lo onphasizo onpIoyoo dovoIopnonl in vorIpIacos
vilh an HR spociaIisl ralhor lhan a porsonnoI spociaIisl, and HR spociaIisls aro
noro IiIoIy lo bo invoIvod in lho dovoIopnonl of slralogic pIans lhan aro porsonnoI
spociaIisls.
Bolh HRM in ils propor sonso and HCM as dofinod abovo lroal poopIo as assols.
AIlhough, as WiIIian Scoll-}acIson, Diroclor of lho Conlro for AppIiod HR Rosoarch
al Oxford BrooIos Univorsily arguos (OracIo, 2005), Ýou can'l sinpIy lroal poopIo as
assols, bocauso lhal doporsonaIizos lhon and Ioads lo lho dangor lhal lhoy aro viovod
in puroIy financiaI lorns, vhich doos IillIo for aII-inporlanl ongagononl.'
Hovovor, lhoro is noro lo bolh HRM and HCM lhan sinpIy lroaling poopIo as
assols. Each of lhon aIso focusos on lho inporlanco of adopling an inlogralod and
slralogic approach lo nanaging poopIo, vhich is lho concorn of aII lho slaIohoIdors in
an organizalion, nol ¡usl lho poopIo nanagononl funclion. So hov doos lho concopl
of HCM roinforco or add lo lho concopl of HRM` Tho ansvors lo lhal quoslion aro
lhal HCM:
dravs allonlion lo lho inporlanco of vhal Koarns (2005b) caIIs ńanagononl
lhrough noasurononl', lho ain boing lo oslabIish a cIoar Iino of sighl bolvoon HR
inlorvonlions and organizalionaI succoss,
slronglhons lho HRM boIiof lhal poopIo aro assols ralhor lhan cosls,
focusos allonlion on lho nood lo baso HRM slralogios and procossos on lho
roquirononl lo croalo vaIuo lhrough poopIo and lhus furlhor lho achiovononl of
organizalionaI goaIs,
roinforcos lho nood lo bo slralogic,
onphasizos lho roIo of HR spociaIisls as businoss parlnors,
providos guidanco on vhal lo noasuro and hov lo noasuro,
undorIinos lho inporlanco of using lho noasurononls lo provo lhal suporior
poopIo nanagononl is doIivoring suporior rosuIls and lo indicalo lho diroclion in
vhich HR slralogy noods lo go.
Tho concopl of HCM conpIononls and slronglhons lho concopl of HRM. Il doos nol
ropIaco il. Bolh HCM and HRM can bo rogardod as vilaI conpononls in lho procoss of
poopIo nanagononl.
1HL CCNCLl1 Cl HLMAN CAll1AL
IndividuaIs gonoralo, rolain and uso InovIodgo and sIiII (hunan capilaI) and croalo
inloIIocluaI capilaI. Thoir InovIodgo is onhancod by lho inloraclions bolvoon lhon
(sociaI capilaI) and gonoralos lho inslilulionaIizod InovIodgo possossod by an orga-
nizalion (organizalionaI capilaI). Thoso concopls of hunan, inloIIocluaI, sociaI and
organizalionaI capilaI aro oxpIainod boIov.
Human capí|aí
Tho lorn ´hunan capilaI' vas originalod by SchuIlz (1961) vho oIaboralod his
concopl in 1981 as foIIovs: Ćonsidor aII hunan abiIilios lo bo oilhor innalo or
acquirod. Allribulos. vhich aro vaIuabIo and can bo augnonlod by approprialo
invoslnonl viII bo hunan capilaI.'
A noro dolaiIod dofinilion vas pul forvard by Bonlis   (1999) as foIIovs:
Humun cupìtuí roprosonts tho humun luctor ìn tho orgunìzutìon, tho combìnod ìntoííì-
gonco, skìíís und oxportìso thut gìvos tho orgunìzutìon ìts dìstìnctìvo chuructor. 1ho
humun oíomonts ol tho orgunìzutìon uro thoso thut uro cupubío ol íournìng, chungìng,
ìnnovutìng und provìdìng tho croutìvo thrust vhìch ìl proporíy motìvutod cun onsuro tho
íong-torm survìvuí ol tho orgunìzutìon.
Scarborough and EIias (2002) boIiovo lhal: ´Tho concopl of hunan capilaI is nosl
usofuIIy viovod as a bridging concopl ÷ lhal is, il dofinos lho IinI bolvoon HR prac-
licos and businoss porfornanco in lorns of assols ralhor lhan businoss procossos.'
Thoy poinl oul lhal hunan capilaI is lo a Iargo oxlonl ńon-slandardizod, lacil,
dynanic, conloxl dopondonl and onbodiod in poopIo'. Thoso characlorislics naIo il
difficuIl lo ovaIualo hunan capilaI boaring in nind lhal lho ´foaluros of hunan
capilaI lhal aro so cruciaI lo firn porfornanco aro lho fIoxibiIily and croalivily of indi-
viduaIs, lhoir abiIily lo dovoIop sIiIIs ovor lino and lo rospond in a nolivalod vay lo
difforonl conloxls'.
Il is indood lho InovIodgo, sIiIIs and abiIilios of individuaIs lhal croalo vaIuo,
vhich is vhy lho focus has lo bo on noans of allracling, rolaining, dovoIoping and
nainlaining lho hunan capilaI lhoy roprosonl. Davonporl (1999) connonls lhal:
loopío possoss ìnnuto ubìíìtìos, bohuvìours und porsonuí onorgy und thoso oíomonts
muko up tho humun cupìtuí thoy brìng to thoìr vork. And ìt ìs thoy, not thoìr ompíoyors,
vho ovn thìs cupìtuí und docìdo vhon, hov und vhoro thoy vìíí contrìbuto ìt. ln othor
vords, thoy cun muko choìcos. \ork ìs u tvo-vuy oxchungo ol vuíuo, not u ono-vuy
oxpíoìtutìon ol un ussot by ìts ovnor.
Humun cupìtuí munugomont 33
Tho choicos lhoy naIo incIudo hov nuch discrolionary bohaviour lhoy aro proparod
lo oxorciso in carrying oul lhoir roIo (discrolionary bohaviour rofors lo lho discrolion
poopIo al vorI can oxorciso aboul lho vay lhoy do lhoir ¡ob and lho anounl of offorl,
caro, innovalion and produclivo bohaviour lhoy dispIay). Thoy can aIso chooso
vholhor or nol lo ronain vilh lho organizalion.
ín|cíícc|uaí capí|aí
Tho concopl of hunan capilaI is associalod vilh lho ovorarching concopl of inloIIoc-
luaI capilaI, vhich is dofinod as lho slocIs and fIovs of InovIodgo avaiIabIo lo an
organizalion. Thoso can bo rogardod as lho inlangibIo rosourcos associalod vilh
poopIo vho, logolhor vilh langibIo rosourcos (nonoy and physicaI assols), conpriso
lho narIol or lolaI vaIuo of a businoss. Bonlis (1996, 1998) dofinos inlangibIo
rosourcos as lho faclors olhor lhan financiaI and physicaI assols lhal conlribulo lo lho
vaIuo-gonoraling procossos of a firn and aro undor ils conlroI.
Socíaí capí|aí
SociaI capilaI is anolhor oIononl of inloIIocluaI capilaI. Il consisls of lho InovIodgo
dorivod fron nolvorIs of roIalionships vilhin and oulsido lho organizalion. Tho
concopl of sociaI capilaI has boon dofinod by Iulnan (1996) as ´lho foaluros of sociaI
Iifo ÷ nolvorIs, norns and lrusl ÷ lhal onabIo parlicipanls lo acl logolhor noro offoc-
livoIy lo pursuo sharod ob¡oclivos'. Tho WorId BanI (2000) offors lho foIIoving dofin-
ilion:
Socìuí cupìtuí rolors to tho ìnstìtutìons, roíutìonshìps und norms thut shupo tho quuíìty
und quuntìty ol u socìoty's socìuí ìntoructìons... Socìuí cupìtuí ìs not ¡ust tho sum ol tho
ìnstìtutìons thut undorpìn u socìoty - ìt ìs tho gíuo thut hoíds thom togothor.
Il is nocossary lo capluro individuaI InovIodgo lhrough InovIodgo nanagononl
procossos, as doscribod in Chaplor 12, bul il is oquaIIy inporlanl lo laIo inlo accounl
sociaI capilaI considoralions, lhal is, lho vays in vhich InovIodgo is dovoIopod
lhrough inloraclion bolvoon poopIo. Bonlis   (1999) poinl oul lhal il is fIovs as
voII as slocIs lhal nallor. InloIIocluaI capilaI dovoIops and changos ovor lino and a
significanl parl is pIayod in lhoso procossos by poopIo acling logolhor.
Crganí2a|íonaí capí|aí
OrganizalionaI capilaI is lho inslilulionaIizod InovIodgo possossod by an organiza-
lion, vhich is slorod in dalabasos, nanuaIs, olc (Youndl, 2000). Il is oflon caIIod
siruciurcl ccpiicl (Edvinson and MaIono, 1997), bul lho lorn órganizalionaI capilaI' is
proforrod by Youndl bocauso, ho arguos, il convoys noro cIoarIy lhal lhis is lho
InovIodgo lhal lho organizalion acluaIIy cuns.
Thc ·ígnífícancc of human capí|aí |hcor,
Tho addod vaIuo lhal poopIo can conlribulo lo an organizalion is onphasizod by
hunan capilaI lhoory. Il rogards poopIo as assols and slrossos lhal invoslnonl by
organizalions in poopIo viII gonoralo vorlhvhiIo rolurns. Tho lhoory lhoroforo
undorpins lho phiIosophios of hunan rosourco nanagononl and hunan capilaI
nanagononl.
Hunan capilaI lhoory is associalod vilh lho rosourco-basod viov of lho firn as
dovoIopod by Barnoy (1991). This proposos lhal suslainabIo conpolilivo advanlago is
allainod vhon lho firn has a hunan rosourco pooI lhal cannol bo inilalod or subsli-
lulod by ils rivaIs. BoxaII (1996) rofors lo lhis silualion as ono lhal confors ´hunan
capilaI advanlago'. Bul ho aIso nolos (1996 and 1999), lhal a dislinclion shouId bo
nado bolvoon ´hunan capilaI advanlago' and ´hunan procoss advanlago'. Tho
fornor rosuIls fron onpIoying poopIo vilh conpolilivoIy vaIuabIo InovIodgo and
sIiIIs, nuch of il lacil. Tho Iallor, hovovor, foIIovs fron lho oslabIishnonl of:
dìllìcuít to ìmìtuto, hìghíy ovoívod procossos vìthìn tho lìrm, such us cross-dopurtmontuí
co-oporutìon und oxocutìvo dovoíopmont. Accordìngíy, ´humun rosourco udvuntugo',
tho suporìorìty ol ono lìrm's íubour munugomont ovor unothor's, cun bo thought ol us tho
product ol ìts humun cupìtuí und humun procoss udvuntugos.
For lho onpIoyor, invoslnonls in lraining and dovoIoping poopIo is a noans of
allracling and rolaining hunan capilaI as voII as golling bollor rolurns fron lhoso
invoslnonls. Thoso rolurns aro oxpoclod lo bo inprovononls in porfornanco, produc-
livily, fIoxibiIily and lho capacily lo innovalo lhal shouId rosuIl fron onIarging lho
sIiII baso and incroasing IovoIs of InovIodgo and conpolonco. SchuIIor (2000)
suggosls lhal: ´Tho gonoraI nossago is porsuasivo: sIiIIs, InovIodgo and conpoloncos
aro Ioy faclors in dolornining vholhor organizalions and nalions viII prospor.' This
poinl is aIso nado povorfuIIy by Roich (1991).
Bul Davonporl (1999) has sono caulionary vords aboul lho assol-basod conlonl of
hunan capilaI lhoory. Ho arguos lhal vorIors shouId nol bo lroalod as passivo assols
lo bo boughl, soId and ropIacod al lho vhin of lhoir ovnors ÷ incroasingIy, lhoy
aclivoIy conlroI lhoir ovn vorIing Iivos. WorIors, ospociaIIy InovIodgo vorIors,
nay rogard lhonsoIvos as froo agonls vho can chooso hov and vhoro lhoy invosl
lhoir laIonls, lino and onorgy. Ho suggosls lhal lho nolion lhal conpanios ovn
hunan assols as lhoy ovn nachinos is unaccoplabIo in principIo and inappIicabIo in
praclico, il shorl-changos poopIo by pIacing lhon in lho sano calogory as pIanl and
oquipnonl.
Inporlanl lhough hunan capilaI lhoory nay bo, inlorosl in il shouId nol divorl
allonlion fron lho olhor aspocls of inloIIocluaI capilaI ÷ sociaI and organizalionaI
capilaI ÷ vhich aro concornod vilh dovoIoping and onbodding lho InovIodgo
possossod by lho hunan capilaI of an organizalion. SchuIIor (2000) conlonds lhal:
1ho locus on humun cupìtuí us un ìndìvìduuí uttrìbuto muy íoud - urguubíy hus uíroudy
íod - to u vory unbuíuncod omphusìs on tho ucquìsìtìon by ìndìvìduuís ol skìíís und
compotoncos vhìch ìgnoros tho vuy ìn vhìch such knovíodgo ìs omboddod ìn u
compíox vob ol socìuí roíutìonshìps.
HLMAN CAll1AL MANACLMLN1: lkAC1lCL AND
S1kA1LCY

Hunan capilaI nanagononl is concornod vilh noasurononl, roporling noasuro-
nonls and draving concIusions aboul lho significanco of lho oulconos of noasuro-
nonl as a guido lo fuluro aclion. This is lho procoss of hunan capilaI noasurononl
and roporling lhal is considorod soparaloIy in lho noxl lvo soclions of lhis chaplor.
Bul il is nol lho soIo purposo. Thoro is noro lo HCM lhan noasurononl. Hunan
capilaI nanagononl focusos lho allonlion of an organizalion's Ioadorship loan on lho
slralogios il shouId adopl as oulIinod boIov lo incroaso lho addod vaIuo lhoy oblain
fron poopIo. Il idonlifios lhoso aspocls of poopIo nanagononl lhal dononslrabIy
havo lho groalosl boaring on businoss porfornanco. Il cIarifios lho rolurns lhal can bo
oblainod in lorns of incroasod profilabiIily, produclivily and ovoraII offoclivonoss
arising fron lho dopIoynonl, dovoIopnonl and ongagononl of lho poopIo lho organi-
zalion noods lo achiovo ils goaIs. HCM poinls lho vay lo achioving hunan capilaI
advanlago by highIighling vhoro and hov invoslnonls in poopIo gonoralo lho
highosl rolurns. Il onsuros lhal HRM poIicios and praclicos aro dovoIopod lo allain
lhis ond. Thoso poIicios incIudo InovIodgo nanagononl, rosourcing, laIonl nanago-
nonl, porfornanco nanagononl, Ioarning and dovoIopnonl progrannos, and
rovard and rocognilion procossos.
Fron an organizalionaI porspoclivo, an HCM approach gonoralos lho foIIoving
praclicaI quoslions:
Whal aro lho Ioy porfornanco drivors lhal croalo vaIuo`
Whal sIiIIs havo vo gol`
Whal sIiIIs do vo nood nov and in lho fuluro lo nool our slralogic ains`
Hov aro vo going lo allracl, dovoIop and rolain lhoso sIiIIs`
Hov can vo dovoIop a cuIluro and onvironnonl in vhich organizalionaI and
individuaI Ioarning laIos pIaco lhal nools bolh our noods and lho noods of our
onpIoyoos`
Hov can vo provido for bolh lho oxpIicil and lacil InovIodgo croalod in our
organizalion lo bo caplurod, rocordod and usod offoclivoIy`

To provido guidoIinos for aclion a hunan capilaI slralogy can bo dovoIopod naIing
uso of lho dala providod by hunan capilaI noasurononl and roporling. Tho Morcor
HR consuIling organizalionaI porfornanco nodoI (CIID, 2004a) doscribos a firn's
hunan capilaI slralogy as consisling of six inlorconnoclod faclors:
1. Pccplc ÷ vho is in lho organizalion, lhoir sIiIIs and conpoloncios on hiring, vhal
sIiIIs conpoloncos lhoy dovoIop lhrough lraining and oxporionco, lhoir IovoI of
quaIificalion, and lho oxlonl lo vhich lhoy appIy firn-spocific or gonoraIizod
hunan capilaI.
2. Wcr| prcccsscs ÷ hov vorI gols dono, lho dogroo of loanvorI and inlordopon-
donco anongsl organizalionaI unils, and lho roIo of lochnoIogy.
3. Mcncgcricl siruciurc ÷ lho dogroo of onpIoyoo discrolion, nanagononl diroclion
and conlroI, spans of conlroI, porfornanco nanagononl and vorI procoduros.
4. lnjcrmciicn cn! |nculc!gc ÷ hov infornalion is sharod and inlorchangod bolvoon
onpIoyoos and vilh suppIiors and cuslonors lhrough fornaI or infornaI noans.
5. Dccisicn-mc|ing ÷ hov inporlanl docisions aro nado and vho naIos lhon, lho
dogroo of doconlraIizalion, parlicipalion and linoIinoss of docisions.
6. Rcucr!s ÷ hov nonolary and non-nonolary inconlivos aro usod, hov nuch pay
is al risI, individuaI vorsus group rovards, curronl vorsus Iongor-lorn ćaroor
rovards'.
Tho hunan capilaI slralogy of an organizalion can bo rogardod as conpIononlary lo
ils hunan rosourco slralogy, as discussod in Chaplors 7 and 8.
HLMAN CAll1AL MLASLkLMLN1
As BocIor ci cl (2001) onphasizo: ´Tho nosl polonl aclion HR nanagors can laIo lo
onsuro lhoir slralogic conlribulion is lo dovoIop a noasurononl syslon lhal convinc-
ingIy shovcasos HR's inpacl on businoss porfornanco.' Thoy nusl úndorsland hov
lho firn croalos vaIuo and hov lo noasuro lho vaIuo croalion procoss'. This noans
golling invoIvod in hunan capilaI noasurononl as dofinod and doscribod boIov.
Human capí|aí mca·urcmcn| dcfíncd
Hunan capilaI noasurononl has boon dofinod by IDS (2004) as boing áboul finding
IinIs, corroIalions and, idoaIIy, causalion, bolvoon difforonl sols of (HR) dala, using
slalislicaI lochniquos'. Tho CIID (2004a) onphasizos lhal il doaIs vilh lho anaIysis of
´lho acluaI oxporionco of onpIoyoos, ralhor lhan slalod HR progrannos and poIicios'.
Thc nccd for human capí|aí mca·urcmcn|
Thoro is an ovorvhoIning caso for ovoIving nolhods of vaIuing hunan capilaI as an
aid lo docision-naIing. This nay noan idonlifying lho Ioy poopIo nanagononl
drivors and nodoIIing lho offocl of varying lhon. Tho issuo is lo dovoIop a franovorI
vilhin vhich roIiabIo infornalion can bo coIIoclod and anaIysod such as addod vaIuo
por onpIoyoo, produclivily and noasuros of onpIoyoo bohaviour (allrilion and
absonlooisn ralos, lho froquoncy/sovorily ralo of accidonls, and cosl savings
rosuIling fron suggoslion schonos).
BocIor   (2001) rofor lo lho nood lo dovoIop a ´high-porfornanco porspoclivo' in
vhich HR and olhor oxoculivos viov HR as a syslon onboddod vilhin lho Iargor
syslon of lho firn's slralogy inpIononlalion. Thoy slalo lhal: ´Tho firn nanagos and
noasuros lho roIalionship bolvoon lhoso lvo syslons and firn porfornanco.' Ahigh-
porfornanco vorI syslon is a cruciaI parl of lhis approach in lhal il:
IinIs lho firn's soIoclion and pronolion docisions lo vaIidalod conpoloncy
nodoIs,
dovoIops slralogios lhal provido linoIy and offoclivo supporl for lho sIiIIs
donandod by lho firn's slralogy inpIononlalion,
onacls conponsalion and porfornanco nanagononl poIicios lhal allracl, rolain
and nolivalo high-porfornanco onpIoyoos.
Rca·on· for |hc ín|crc·| ín mca·urcmcn|
Tho rocognizod inporlanco of achioving hunan capilaI advanlago has Iod lo an
inlorosl in lho dovoIopnonl of nolhods of noasuring lho vaIuo of lhal capilaI for lho
foIIoving roasons:
Hunan capilaI conslilulos a Ioy oIononl of lho narIol vorlh of a conpany. A
rosoarch sludy conduclod in 2003 (CFO Rosoarch Sludios) oslinalod lhal lho
vaIuo of hunan capilaI roprosonlod ovor 36 por conl of lolaI rovonuo in a lypicaI
organizalion.
IoopIo in organizalions add vaIuo and lhoro is a caso for assossing lhis vaIuo lo
provido a basis for HR pIanning and for noniloring lho offoclivonoss and inpacl
of HR poIicios and praclicos.
Tho procoss of idonlifying noasuros and coIIocling and anaIysing infornalion
roIaling lo lhon viII focus lho allonlion of lho organizalion on vhal noods lo bo
dono lo find, Ioop, dovoIop and naIo lho bosl uso of ils hunan capilaI.
Moasurononls can bo usod lo nonilor progross in achioving slralogic HR goaIs
and gonoraIIy lo ovaIualo lho offoclivonoss of HR praclicos.
You cannol nanago unIoss you noasuro.
Hovovor, lhroo voicos havo advisod caulion aboul noasurononl. Loadboalor (2000)
obsorvod lhal noasuring can ´rosuIl in cunborsono invonlorios vhich aIIov
nanagors lo nanipuIalo porcoplions of inlangibIo vaIuos lo lho dolrinonl of
invoslors. Tho facl is lhal loo fov of lhoso noasuros aro focusod on lho vay conpa-
nios croalo vaIuo and naIo nonoy'. Tho Inslilulo of EnpIoynonl Sludios (HarlIoy,
2005) onphasizod lhal roporling on hunan capilaI is nol sinpIy aboul noasurononl.
Moasuros on lhoir ovn such as lhoso rosuIling fron bonchnarIing aro nol onough,
lhoy nusl bo cIoarIy IinIod lo businoss porfornanco. And Scarborough and EIias
(2002) concIudod fron lhoir invosligalions lhal lho spocific sol of noasuros or nolrics
organizalions roporlod voro Ioss inporlanl lhan lho procoss of noasuring and lho
usos for lho infornalion galhorod.
Approachc· |o mca·urcmcn|
Six of lho nain approachos lo noasurononl aro doscribod boIov.
Tbc buman capitaI indcx - Watson Wyatt
On lho basis of a survoy of conpanios lhal havo IinIod logolhor HR nanagononl
praclicos and narIol vaIuo, Walson Wyall (2001) idonlifiod four na¡or calogorios of
HR praclico lhal couId bo IinIod lo a 30 por conl incroaso in sharohoIdor vaIuo
croalion. Thoso aro:
Iraclico Inpacl on narIol vaIuo (por conl)
lolaI rovards and accounlabiIily 16.5
coIIogiaI, fIoxibIo vorIforco 9.0
rocruiling and rolonlion oxcoIIonco 7.9
connunicalion inlogrily 7.1
Tbc organizationaI pcrformancc modcI - Mcrccr Hk ConsuIting
As doscribod by NaIbanlian   (2004) lho OrganizalionaI Iorfornanco ModoI dovoI-
opod by Morcor HR ConsuIling is basod on lho foIIoving oIononls: poopIo, vorI
procossos, nanagononl slrucluro, infornalion and InovIodgo, docision-naIing and
rovards, oach of vhich pIays oul difforonlIy vilhin lho conloxl of lho organizalion,
croaling a uniquo DNA. If lhoso oIononls havo boon dovoIopod pioconoaI, as oflon
happons, lho polonliaI for nisaIignnonl is slrong and il is IiIoIy lhal hunan capilaI is
nol boing oplinisod, croaling opporlunilios for subslanliaI inprovononl in rolurns.
Idonlifying lhoso opporlunilios roquiros discipIinod noasurononl of lho organiza-
lion's hunan capilaI assols and lho nanagononl praclicos lhal affocl lhoir porfor-
nanco. Tho slalislicaI looI, ÍnlornaI Labour MarIol AnaIysis' usod by Morcor dravs
on lho running rocord of onpIoyoo and Iabour narIol dala lo anaIyso lho acluaI oxpo-
rionco of onpIoyoos ralhor lhan slalod HR progrannos and poIicios. Thus gaps can
bo idonlifiod bolvoon vhal is roquirod in lho vorIforco lo supporl businoss goaIs
and vhal is acluaIIy boing doIivorod.
Tbc buman capitaI monitor - Andrcw Mayo
Mayo (2001) has dovoIopod lho ´hunan capilaI nonilor' lo idonlify lho hunan vaIuo
of lho onlorpriso or ´hunan assol vorlh', vhich is oquaI lo ónpIoynonl cosl  indi-
viduaI assol nuIlipIior'. Tho Iallor is a voighlod avorago assossnonl of capabiIily,
polonliaI lo grov, porsonaI porfornanco (conlribulion) and aIignnonl lo lho organi-
zalion's vaIuos sol in lho conloxl of lho vorIforco onvironnonl (io hov Ioadorship,
cuIluro, nolivalion and Ioarning aro driving succoss). Tho absoIulo figuro is nol
inporlanl. Whal doos nallor is lhal lho procoss of noasurononl Ioads you lo
considor vholhor hunan capilaI is sufficionl, incroasing, or docroasing, and high-
Iighls issuos lo addross. Mayo advisos againsl using loo nany noasuros and insload
lo conconlralo on a fov organizalion-vido noasuros lhal aro crilicaI in croaling sharo-
hoIdor vaIuo or achioving curronl and fuluro organizalionaI goaIs.
Anunbor of olhor aroas for noasurononl and nolhods of doing so havo boon idon-
lifiod by Mayo (1999, 2001). Ho boIiovos lhal vaIuo addod por porson is a good
noasuro of lho offoclivonoss of hunan capilaI, ospociaIIy for naIing inlor-firn
conparisons. Bul ho considors lhal lho nosl crilicaI indicalor for lho vaIuo of hunan
capilaI is lho IovoI of oxporliso possossod by an organizalion. Ho suggosls lhal lhis
couId bo anaIysod undor lho hoadings of idonlifiod organizalionaI coro conpoloncios.
Tho olhor criloria ho nonlions aro noasuros of salisfaclion dorivod fron onpIoyoo
opinion survoys and IovoIs of allrilion and absonlooisn.
Tbc Scars kocbuck modcI
Tho Soars RoobucI nodoI (Rucci ci cl, 1998) dofinos lho onpIoyoo-cuslonor-profil
chain. Il is sonolinos caIIod lho óngagononl nodoI'. Il oxpIains lhal if you Ioop
onpIoyoos salisfiod in lorns of lhoir alliludo lo lho conpany and lhoir ¡ob you viII
croalo a ćcmpclling plccc ic ucr|', vhich viII oncourago rolonlion and Ioad lo sorvico
hoIpfuInoss and norchandizo vaIuo, vhich Ioads lo cuslonor salisfaclion, rolonlion
and roconnondalions, lhus croaling ć ccmpclling plccc ic s|cp'. This in lurn croalos ć
ccmpclling plccc ic intcsi', bocauso of ils inpacl on rolurn on assols, oporaling nargins
and rovonuo grovlh (Figuro 2.1).
This nodoI oncouragos lho uso of alliludo survoys lo noasuro ¡ob salisfaclion and
ongagononl and has boon usod in a nunbor of organizalions in lho UK.
Nalionvido has dovoIopod ils ´Gonono' hunan capilaI invoslnonl nodoI lo quan-
lify lho inpacl lhal onpIoyoo connilnonl has on cuslonor salisfaclion and businoss
porfornanco. Tho nodoI usos dala fron oxisling sourcos such as onpIoyoo opinion
survoys, cuslonor salisfaclion indicos, businoss porfornanco slalislics and onpIoyoo
nolrics covoring lurnovor, Ionglh of sorvico and absonco. Uso of lho nodoI onabIod
Attitude about
the job
Serving
helpfulness
Customer
recommendations
Employee
behaviour
Customer
impression
Return on assets
Operation margin
Revenue growth
Attitude about
the job
Employee
retention
Merchandize
value
Customer
retention
A compelling place
to work
A compelling place
to shop
A compelling place
to invest
FIgurc 2.1 Tho Soars RoobucI ModoI: EnpIoyoo-Cuslonor-Irofil chain
Nalionvido lo provo slalislicaIIy lhal lho noro connillod lho onpIoyoo lho happior
lho cuslonor. Il is possibIo lo uso dala nodoIIing lo prodicl lho inpacl lhal a chango
in ono faclor affocling onpIoyoo connilnonl vouId havo on cuslonor salisfaclion
and uIlinaloIy on businoss porfornanco. For oxanpIo, incroasing onpIoyoo salisfac-
lion vilh basic pay by 5 por conl vouId produco an ovoraII riso in cuslonor salisfac-
lion of 0.5 por conl and an incroaso in porsonaI Ioan saIos of 2.3 por conl.
Tbc baIanccd scorccard
Tho baIancod scorocard as originaIIy dovoIopod by KapIan and Norlon (1992, 1996) is
froquonlIy usod as lho basis for noasurononl. Thoir ain vas lo counlor lho londoncy
of conpanios lo conconlralo on shorl-lorn financiaI roporling. Thoy laIo lho viov
lhal ´vhal you noasuro is vhal you gol', and lhoy onphasizo lhal ńo singIo noasuro
can provido a cIoar porfornanco largol or focus allonlion on lho crilicaI aroas of lho
businoss. Managors vanl a baIancod prosonlalion of bolh financiaI and oporalionaI
noasuros'. Thoir originaI concopl of lho scorocard roquirod nanagors lo ansvor four
basic quoslions, vhich noans IooIing al lho businoss fron four roIalod porspoclivos,
as shovn in Figuro 2.2.
Sono organizalions havo ropIacod lho innovalion and Ioarning porspoclivo vilh a
broador poopIo or hunan capilaI oIononl.
KapIan and Norlon onphasizo lhal lho baIancod scorocard approach ´puls slralogy
and vision, nol conlroI al lho conlro'. Thoy suggosl lhal vhiIo il dofinos goaIs, il
assunos lhal poopIo viII adopl vhalovor bohaviours and laIo vhalovor aclions aro
roquirod lo achiovo lhoso goaIs: ´Sonior nanagors nay Inov vhal lho ond rosuIl
shouId bo, bul lhoy cannol loII onpIoyoos oxaclIy hov lo achiovo lhal rosuIl, if onIy
bocauso lho condilions in vhich onpIoyoos oporalo aro conslanlIy changing.'
Thoy suggosl lhal lho baIancod scorocard can hoIp lo aIign onpIoyoos' individuaI
porfornanco vilh lho ovoraII slralogy: ´Scorocard usors gonoraIIy ongago in lhroo
aclivilios: connunicaling and oducaling, solling goaIs, and IinIing rovards lo
porfornanco noasuros'. Thoy connonl lhal:
Muny poopío thìnk ol mousuromont us u tooí to controí bohuvìour und to ovuíuuto pust
porlormunco. 1ho mousuros on u ßuíuncod Scorocurd, hovovor, shouíd bo usod us tho
cornorstono ol u munugomont systom thut communìcutos strutogy, uíìgns ìndìvìduuís und
toums to tho strutogy, ostubíìshos íong-torm strutogìc turgots, uíìgns ìnìtìutìvos, uííocutos
íong- und short-torm rosourcos und, lìnuííy, provìdos loodbuck und íournìng ubout tho
strutogy.
Rosoarch by DoIoillo & Toucho and Pcrscnncl 1c!cq (2002) found lhal 32 por conl of
Iargo UK conpanios aro using lho baIancod scorocard nolhodoIogy, aIlhough lho
nolhods adoplod vary. Al LIoyds TSB lho baIancod scorocard bIonds a nix of finan-
ciaI nolrics and non-financiaI indicalors lo provido a singIo inlogralod noasuro of
porfornanco lhal focusos on Ioy indicalors, fron vhich a lruo rofIoclion of organiza-
lion porfornanco can bo acconpIishod. Tho scorocard lhus onabIos lho organizalion
lo focus on a snaII nunbor of crilicaI noasuros lhal croalo vaIuo for lho organizalion.
Norvich Union Insuranco doscribos ils baIancod scorocard as a ńochanisn for
inpIononling our slralogy and noasuring porfornanco againsl our ob¡oclivos and
crilicaI succoss faclors lo achiovo lho slralogy'. Tho scorocard is cascadod lhroughoul
lho organizalion lo noasuro lho oporalionaI aclivilios lhal aro conlribuling lo lho
ovoraII conpany slralogy. Tho baIancod scorocard changos fron yoar lo yoar. Mosl
roconlIy, il sol oul lo achiovo lhroo goaIs: posilivo bonofil, slaff inpacls and financiaI
porfornanco ÷ in shorl, sorvico, noraIo and profils. IroviousIy, lho onphasis vas
Customer perspective
How do customers see us?
InternaI perspective
What must we excel at?
FinanciaI perspective
How do we appear to our
shareholders?
Innovation and Iearning
(peopIe) perspective
Can we continue to improve
and add value
FIgurc 2.2 Tho baIancod scorocard
prodoninanlIy on profil, in ordor lo doIivor lho pronisos nado lo lho Cily and sharo-
hoIdors, bul lho conpany fooIs lhal noro focus is nov noodod on sorvico and noraIo.
Tbc FFQM modcI of quaIity
Tho Europoan Foundalion for QuaIily Managononl (EFQM) nodoI of quaIily as
shovn in Figuro 2.3 providos anolhor franovorI for noasuring and roporling on
hunan capilaI nanagononl. Il indicalos lhal cuslonor salisfaclion, poopIo
(onpIoyoo) salisfaclion and inpacl on socioly aro achiovod lhrough Ioadorship. This
drivos lho poIicy and slralogy, poopIo nanagononl, rosourcos and procossos roquirod
lo produco oxcoIIonco in businoss rosuIls.
Tho nino oIononls in lho nodoI aro dofinod as foIIovs:
1. Icc!crs|ip ÷ hov lho bohaviour and aclions of lho oxoculivo loan and aII olhor
Ioadors inspiro, supporl and pronolo a high porfornanco cuIluro.
2. Pclicq cn! sircicgq ÷ hov lho organizalion fornuIalos, dopIoys and roviovs ils
poIicy and slralogy and lurns lhon inlo pIans and aclions.
3. Pccplc mcncgcmcni ÷ hov lho organizalion roaIizos lho fuII polonliaI of ils poopIo.
Business
results
People
satisfaction
Customer
satisfaction
Ìmpact on
society
Processes
People
management
Resources
Policy and
strategy
Leadership
Enablers Results
FIgurc 2.3 Tho EFQM nodoI
4. Rcscurccs ÷ hov lho organizalion nanagos rosourcos offoclivoIy and officionlIy.
5. Prcccsscs ÷ hov lho organizalion idonlifios, nanagos, roviovs and inprovos ils
procossos.
6. Cusicmcr sciisjcciicn ÷ vhal lho organizalion is achioving in roIalion lo lho salis-
faclion of ils oxlornaI cuslonors.
7. Pccplc sciisjcciicn ÷ vhal lho organizalion is achioving in roIalion lo lho salisfac-
lion of ils poopIo.
8. lmpcci cn scciciq ÷ vhal lho organizalion is achioving in salisfying lho noods and
oxpoclalions of lho IocaI, nalionaI and inlornalionaI connunily al Iargo.
9. 8usincss rcsulis ÷ vhal lho organizalion is achioving in roIalion lo ils pIannod
businoss ob¡oclivos and in salisfying lho noods and oxpoclalions of ovoryono vilh
a financiaI inlorosl or slaIo in lho organizalion.
Organizalions lhal adopl lho EFQM nodoI accopl lho inporlanco of porfornanco
noasurononl and vorI aII lho lino lo inprovo lho usofuInoss of lhoir noasuros, bul
lhoy aIso rocognizo lhal sinpIy noasuring a probIon doos nol inprovo il. Thoro is a
risI lhal nanagors viII oxorl lhoir bosl onorgios lo lho anaIysis, Ioaving IillIo Iofl for
lho ronody.
\ca·urcmcn| cícmcn|·
Tho nain dala oIononls usod for noasurononl aro as foIIovs:
8csic ucr|jcrcc !cic ÷ donographic dala (nunbors by ¡ob calogory, sox, raco, ago,
disabiIily, vorIing arrangononls, absonco and sicInoss, lurnovor and pay).
Pccplc !ctclcpmcni cn! pcrjcrmcncc !cic ÷ Ioarning and dovoIopnonl progrannos,
porfornanco nanagononl/polonliaI assossnonls, sIiIIs and quaIificalions.
Pcrccpiucl !cic ÷ alliludo/opinion survoys, focus groups, oxil inlorviovs.
Pcrjcrmcncc !cic ÷ financiaI, oporalionaI and cuslonor.
Ncn-jincncicl tcric|lcs ÷ lho lop 10 as Iislod by Lov and SiosfioId (1998) aro:
÷ quaIily of corporalo slralogy,
÷ oxoculion of corporalo slralogy,
÷ nanagononl crodibiIily,
÷ innovalion,
÷ rosoarch Ioadorship,
÷ abiIily lo allracl and rolain laIonlod poopIo,
÷ narIol sharo,
÷ nanagononl oxporliso,
÷ aIignnonl of conponsalion vilh sharohoIdors' inlorosls,
÷ quaIily of na¡or businoss procossos.
In noro dolaiI lho CounciI for ExcoIIonco in Managononl and Loadorship (2002)
roporl Iislod lho foIIoving noasuros:
A. Mcrclc
1. Absonlooisn.
2. Accidonls.
3. EnpIoyoo lurnovor.
4. Diroclor and nanagor lurnovor.
5. EnpIoyoo salisfaclion (slaff survoy noasuro).
6. SicInoss.
B. Mciitciicn
1. AppraisaI ÷ conpIolion ralos.
2. Ior conl of onpIoyoos for vhon docunonlod annuaI appraisaI has boon agrood.
3. Ior conl of ¡obs for vhich ob¡oclivos havo boon docunonlod.
4. Ior conl of ¡obs for vhich ¡ob doscriplions oxisl.
5. EnpIoyoo undorslanding of slralogy (slaff survoy noasuro).
6. EnpIoyoo undorslanding of vision (slaff survoy noasuro).
7. EnpIoyoo rolonlion.
8. Diroclor and nanagor rolonlion.
9. WorIing hours.
C. lntcsimcni
1. BonchnarIod ronunoralion IovoIs.
2. Diroclors and nanagors' saIarios as a porconlago of lolaI saIarios.
3. Hunan rosourco spond por onpIoyoo.
4. Training invoslnonl.
D. Icng-icrm !ctclcpmcni
1. Curronl nanagononl and Ioadorship capabiIily.
2. IolonliaI nanagononl and Ioadorship capabiIily.
3. Managononl and Ioadorship sIiII gaps.
4. Ior conl of ¡ob hoIdors for vhon a dovoIopnonl pIan has boon agrood.
5. Ior conl of ¡obs for vhich conpoloncios havo boon audilod.
6. Training days.
E. |xicrncl pcrccpiicn
1. }ob appIicalions: vacancios.
2. }ob offors: ¡ob accoplancos.
\ca·uríng human capí|aí
Tho poinls lhal shouId bo borno in nind vhon noasuring hunan capilaI aro:
Idonlify sourcos of vaIuo incIuding lho conpoloncios and abiIilios lhal drivo busi-
noss porfornanco.
AnaIyso lho roIalionships bolvoon poopIo nanagononl praclicos and oulconos
and organizalionaI offoclivonoss.
Rononbor lhal hunan capilaI noasurononl is concornod vilh lho inpacl of
poopIo nanagononl praclicos on porfornanco so lhal slops can bo laIon lo do
bollor. Il is nol ¡usl aboul noasuring lho officioncy of lho HR doparlnonl in lorns
of aclivily IovoIs. Il noods lo bo vaIuo-focusod ralhor lhan aclivily-basod. For
oxanpIo, il is nol onough ¡usl lo rocord lho nunbor of lraining days or lho oxpon-
diluro on lraining, il is nocossary lo assoss lho rolurn on invoslnonl gonoralod by
lhal lraining.
Koop noasurononls sinpIo ÷ conconlralo on Ioy aroas of oulconos and bohav-
iour.
OnIy noasuro aclivilios if il is cIoar lhal such noasurononls viII inforn docision-
naIing.
AnaIyso and ovaIualo lronds ralhor lhan sinpIy rocord acluaIs ÷ conparo lho
prosonl posilion vilh basoIino dala.
Focus on roadiIy avaiIabIo and roIiabIo quanlifiod infornalion, hovovor, aIlhough
quanlificalion is dosirabIo il shouId nol bo basod on hugo, Iooso assunplions.
Rononbor lhal noasurononl is a noans lo an ond, nol an ond in ilsoIf. Do nol gol
so nosnorizod by lho procoss of coIIocling dala as lo forgol lhal lho dala is lhoro
lo bo usod lo supporl docision-naIing and gonoralo aclion.
HLMAN CAll1AL kLlCk1lNC
Hunan capilaI roporling is concornod vilh providing infornalion on hov voII lho
hunan capilaI of an organizalion is nanagod. Thoro aro lvo aspocls: firsl, oxlornaI
roporling lo slaIohoIdors lhrough, in lho UK, lho conpuIsory Oporaling and
FinanciaI Roviov (OFR). Tho socond aspocl is inlornaI roporling, vhich aIso inforns
lho Ioadorship loan and slaIohoIdors gonoraIIy aboul hov hunan capilaI is boing
nanagod, bul oxlonds lhis vilh slalononls of hov lho infornalion viII bo usod lo
guido fuluro aclion. Tho purposo is lo inforn docision-naIing aboul hunan capilaI
nanagononl, nol ¡usl lo rocord lho figuros.
Lx|crnaí rcpor|íng
Tho Accounling for IoopIo TasI Forco Roporl (2003) roconnondod lhal oporaling
and financiaI roviov roporls (OFRs) shouId bo nado by conpanios vhich havo a
slralogic focus, aro baIancod and ob¡oclivo and basod on sound dala'. Tho TasI Forco
spocifiod lhal:
1ho roport shouíd cíouríy roprosont tho ßourd's undorstundìng ol tho íìnks botvoon HCM
poíìcìos und pructìcos und ìts busìnoss strutogy und porlormunco. 1hìs mouns thut ìt
shouíd normuííy ìncíudo dotuìís on tho sìzo und composìtìon ol tho vorklorco,
ompíoyoo rotontìon und motìvutìon, skìíís, compotoncìos und truìnìng, romunorutìon und
luìr ompíoymont pructìco, und íoudorshìp und succossìon píunnìng. 1ho roport shouíd
loííov u procoss thut ìs suscoptìbío to rovìov by uudìtors, provìdo ìnlormutìon ìn u lorm
thut onubíos compurìson ovor tìmo, und uso commoníy uccoptod torms und dolìnìtìons.
Tho CIID (2003b) has roconnondod lhal lho OFR shouId provido infornalion on:
lho profiIo of lho vorIforco and ils divorsily,
sonior oxoculivo ronunoralion,
lho quaIily of Ioadorship and nanagononl slronglh,
hov voII Iabour cosls havo boon nanagod ovor lino,
ovidonco of a cohoronl, robusl poopIo slralogy lhal is nappod lo lho slalod busi-
noss slralogy for lho noxl lhroo yoars,
ovidonco lhal curronl poopIo nanagononl praclico (ospociaIIy rogarding acquisi-
lion, nolivalion and rolonlion) aro affocling organizalionaI and businoss porfor-
nanco,
curronl and forocaslod rolurns on poopIo invoslnonl in lho noxl lhroo lo fivo
yoars,
lho vaIuo of hunan capilaI assols and fuluro invoslnonls, ospociaIIy in na¡or
corporalo docisions such as norgors and acquisilions,
conparalor Iislings in financiaI Ioaguo labIos ÷ such as induslry FTSE or anaIysl
ralings.
Tho CIID (2003b) aIso proposod lho oxlornaI roporling franovorI iIIuslralod in
Figuro 2.4.
ín|crnaí rcpor|íng
InlornaI roporling shouId bo IinIod lo lho oxlornaI roporling franovorI bul viII
focus noro on lho praclicaI inpIicalions of lho dala lhal has boon assonbIod and
anaIysod. Tho infornalion and lho hoadings of lho inlornaI roporl havo lo bo laiIorod
lo lho conloxl and noods of lho organizalion, bul il couId:
sol oul lho quanlilalivo and quaIilalivo infornalion ÷ lhis couId incIudo dala on
lho sizo and conposilion of lho vorIforco, allraclion and rolonlion, absonco,
nolivalion, sIiIIs and conpoloncios, Ioarning and dovoIopnonl aclivilios, ronu-
noralion and fair onpIoynonl praclicos, Ioadorship and succossion pIanning, and
lho oulconos of opinion or ¡ob salisfaclion survoys,
anaIyso noasuros of onpIoyoo salisfaclion and ongagononl, conparo lhon vilh
dala on businoss porfornanco and dononslralo lho IinIs bolvoon lhon,
anaIyso lho oulconos of oxlornaI bonchnarIing,
idonlify lho Ioy porfornanco drivors in lho organizalion and indicalo hov hunan
capilaI nanagononl is conlribuling lo adding vaIuo in oach of lhoso aroas,
roviov lho oxlonl lo vhich poopIo nanagononl slralogy, poIicios and praclicos
aro conlribuling lo lho achiovononl of businoss goaIs,
Human capitaI strategy
Learning and development
Human capitaI performance
Acquisition and retention
Human capital management
Management and Ieadership
FIgurc 2.4 Hunan capilaI oxlornaI roporling franovorI (CIID, 2003b)
sol oul lho rolurns on invoslnonls in poopIo nanagononl and dovoIopnonl
pro¡ocls and ovaIualo lho offoclivonoss of lho invoslnonls,
drav concIusions on lho inpIicalions of lho dala for fuluro poopIo nanagononl
slralogy, poIicy and praclico.
An oxanpIo of inlornaI roporling is providod by Slandard Charlorod BanI. Arango of
procossos and bonchnarIs has boon oslabIishod lo noasuro and onhanco lho conlri-
bulion of ils onpIoyoos. WorI on hunan capilaI noasurononl has onabIod lho banI
lo undorsland lho difforonco lhal laIonlod and nolivalod onpIoyoos can naIo lo lho
businoss. A´Hunan CapilaI Roadnap' has boon dovoIopod lo provido a cIoar poopIo
agonda. Tho coro of lho roadnap is lho fivo aroas of focus vhich drivo businoss
porfornanco lhal aro supporlod by Ioy poopIo procossos and inlorvonlions. Tho Iallor
forn lho franovorI for nolrics and ovaIualions. Thoso incIudo an ongagononl
survoy (G12) dovoIopod by lho GaIIop Organizalion covoring 12 faclors lhal
undorpin a produclivo and slinuIaling pIaco lo vorI. Rosoarch has oslabIishod a
povorfuI IinI bolvoon ongagononl scoros and businoss porfornanco.
Al Nalionvido roguIar roporls aro nado lo aroa nanagors on Ioy drivors. Thoso
aro prosonlod graphicaIIy on dashboards, as iIIuslralod in Figuro 2.5, onabIing
lho nanagor lo idonlify probIon aroas, invosligalo lho circunslancos and inilialo
aclion.
Key drivers of committed employees Outcomes
Area Pay Length of Coaching Resource Values Retention Customer
service manage- commitment
ment
1
2
3
4
5
FIgurc 2.5 Hunan capilaI roporling dashboard for aroa nanagors: Nalionvido
Green Amber Red
koío ol tho Hk lunctìon
HR funclions aro concornod vilh lho nanagononl and dovoIopnonl of poopIo in
organizalions. Thoy aro invoIvod in lho dovoIopnonl and inpIononlalion of HR
slralogios and poIicios and sono or aII of lho foIIoving poopIo nanagononl aclivilios:
organizalion dovoIopnonl, hunan rosourco pIanning, laIonl nanagononl, InovI-
odgo nanagononl, rocruilnonl and soIoclion, Ioarning and dovoIopnonl, rovard
nanagononl, onpIoyoo roIalions, hoaIlh and safoly, voIfaro, HR adninislralion,
fuIfiInonl of slalulory roquirononls, oquaI opporlunily and divorsily issuos, and any
olhor nallors roIalod lo lho onpIoynonl roIalionship.
Tho IRS survoy of HR roIos and rosponsibiIilios (IRS, 2004b) found lhal HR func-
lions voro sponding 20 por conl of lhoir lino on slralogic aclivilios, 40 por conl on
adninislralion, 30 por conl on providing a consuIlancy sorvico, and 10 por conl on
olhor aclivilios.
Tho ćIionls' or ćuslonors' of lho HR funclion aro nol ¡usl nanagononl. Thoy aIso
conpriso lho fronl-Iino nanagors vho acluaIIy inpIononl HR poIicios and on vhon
lho funclion roIios lo gol lhings dono, onpIoyoos, and polonliaI rocruils.
This chaplor doaIs vilh:
lho ovoraII roIo of lho funclion,
lho roIo of HR in faciIilaling and nanaging chango,
varialions in praclico,
organizalion of lho funclion,

narIoling lho funclion,
proparing, ¡uslifying and prolocling lho HR budgol,
oulsourcing,
lho provision of sharod sorvicos,
lho uso of oxlornaI consuIlanls,
ovaIualing lho HR funclion.
1HL CVLkALL kCLL Cl 1HL Hk lLNC1lCN
Tho roIo of lho HR funclion is lo onabIo lho organizalion lo achiovo ils ob¡oclivos by
laIing inilialivos and providing guidanco and supporl on aII nallors roIaling lo ils
onpIoyoos. Tho basic ain is lo onsuro lhal lho organizalion dovoIops HR slralogios,
poIicios and praclicos lhal calor offoclivoIy for ovorylhing concorning lho onpIoy-
nonl and dovoIopnonl of poopIo and lho roIalionships lhal oxisl bolvoon nanago-
nonl and lho vorIforco. Tho HR funclion can pIay a na¡or parl in lho croalion of an
onvironnonl lhal onabIos poopIo lo naIo lho bosl uso of lhoir capacilios and lo roaIizo
lhoir polonliaI lo lho bonofil of bolh lho organizalion and lhonsoIvos.
EssonliaIIy, lho HR funclion providos lho advico and sorvicos lhal onabIo organiza-
lions lo gol lhings dono lhrough poopIo. Il is in lho doIivory businoss. UIrich (1998)
poinls oul lhal: ´Tho aclivilios of HR appoar lo bo and oflon aro disconnoclod fron lho
roaI vorI of lho organizalion.' Ho boIiovos lhal HR ´shouId nol bo dofinod by vhal il
doos bul by vhal il doIivors'.
Tho noro sophislicalod HR funclions ain lo achiovo slralogic inlogralion and
cohoronco in lho dovoIopnonl and oporalion of HRM poIicios and onpIoynonl prac-
licos. Slralogic inlogralion couId bo doscribod as vorlicaI inlogralion ÷ lho procoss of
onsuring lhal HR slralogios aro inlogralod vilh or ´fil' businoss slralogios. Tho
concopl of cohoronco couId bo dofinod as horizonlaI inlogralion ÷ lho dovoIopnonl of
a nuluaIIy roinforcing and inlorroIalod sol of HR onpIoynonl and dovoIopnonl poIi-
cios and praclicos. Thoso slralogic aspocls of lho vorI of lho funclion aro doaIl vilh in
Chaplors 7, 8 and 9 of lhis booI.
1HL kCLL Cl Hk lN lAClLl1A1lNC AND MANAClNC
CHANCL
If HR is concornod ÷ as il shouId bo ÷ vilh pIaying a na¡or roIo in lho achiovononl
of conlinuous inprovononl in organizalionaI and individuaI porfornanco and in
lho HR procossos lhal supporl lhal inprovononl, lhon il viII bo concornod vilh
faciIilaling chango. UIrich (1997a) boIiovos lhal ono of lho Ioy roIos of HR profos-
sionaIs is lo acl as chango agonls, doIivoring organizalionaI lransfornalion and cuI-
luro chango.
Slralogic HRM is as nuch if nol noro aboul nanaging chango during lho procoss
of inpIononlalion as il is aboul producing Iong-lorn pIans, a poinl onphasizod by
IurcoII (1999) vho boIiovos lhal: ´Wo shouId bo nuch noro sonsilivo lo procossos of
organizalionaI chango and avoid boing lrappod in lho Iogic of ralionaI choico.' In 2001
IurcoII suggoslod lhal chango is spociaIIy inporlanl in HRM slralogios, ´sinco lhoir
concorn is vilh lho fuluro, lho unInovn, lhinIing of and Ioarning hov lo do lhings
difforonlIy, undoing lho vays lhings havo boon dono in lho pasl, and nanaging ils
inpIononlalion'. Ho boIiovos lhal lho focus of slralogy is on inpIononlalion, vhoro
HR can pIay a na¡or parl.
Tho inporlanco of lho hunan rosourco oIononl in achioving chango has boon
onphasizod by }ohnson and SchoIos (1997):
Crgunìzutìons vhìch succossluííy munugo chungo uro thoso vhìch huvo ìntogrutod thoìr
humun rosourco munugomont poíìcìos vìth thoìr strutogìos und tho strutogìc chungo
procoss... truìnìng, ompíoyoo roíutìons, componsutìon puckugos und so on uro not
moroíy oporutìonuí ìssuos lor tho porsonnoí dopurtmont, thoy uro crucìuííy concornod
vìth tho vuy ìn vhìch ompíoyoos roíuto to tho nuturo und dìroctìon ol tho lìrm und us
such thoy cun both bíock strutogìc chungo und bo sìgnìlìcunt lucìíìtutors ol strutogìc
chungo.
Thc con|ríbu|íon of HR |o changc managcmcn|
Tho HR funclion nay bo invoIvod in inilialing chango bul il can aIso acl as a slabi-
Iizing forco in silualions vhoro chango vouId bo danaging. Mohrnan and LavIor
(1998) boIiovo lhal:
1ho humun rosourcos lunctìon cun hoíp tho orgunìzutìon dovoíop tho cupubìíìty to
vouthor tho chungos thut vìíí contìnuo to bo purt ol tho orgunìzutìonuí íundscupo. lt cun
hoíp vìth tho ongoìng íournìng procossos roquìrod to ussoss tho ìmpuct ol chungo und
onubío tho orgunìzutìon to muko corroctìons und onhuncomonts to tho chungos. lt cun
hoíp tho orgunìzutìon dovoíop u nov psychoíogìcuí contruct und vuys to gìvo
ompíoyoos u stuko ìn tho chungos thut uro occurrìng und ìn tho porlormunco ol tho orgu-
nìzutìon.
Hov HR can facííí|a|c changc
UIrich (1998) arguos lhal HR profossionaIs aro ńol fuIIy conforlabIo or conpalibIo in
lho roIo of chango agonl', and lhal lhoir lasI is lhoroforo nol lo carry oul chango bul lo
koío ol tho Hk lunctìon 55
gol chango dono. Bul HR praclilionors aro in a good posilion lo undorsland possibIo
poinls of rosislanco lo chango and lhoy can hoIp lo faciIilalo lho infornalion fIov and
undorslanding lhal viII hoIp lo ovorcono lhal rosislanco.
Changc guídcíínc· for HR
To faciIilalo chango, HR has lo bo fuIIy avaro of lho roasons vhy poopIo rosisl chango
and lho approachos lhal can bo adoplod lo ovorcono lhal rosislanco, indood lo gain
agroononl lhal chango is dosirabIo. Thoso approachos aro doscribod in Chaplor 24.
UsofuI guidoIinos (quolod by UIrich, 1998) on hov HR can faciIilalo chango havo
boon producod by lho HR doparlnonl in GonoraI EIoclric. Thoso aro lo onsuro lhal:
onpIoyoos soo lho roason for chango,
onpIoyoos undorsland vhy chango is inporlanl and soo hov il viII hoIp lhon
and lho businoss in lho Iong and shorl lorn,
lho poopIo vho nood lo bo connillod lo lho chango lo naIo il happon aro rocog-
nizod,
a coaIilion of supporl is buiIl for lho chango,
lho supporl of Ioy individuaIs in lho organizalion is onIislod,
lho IinI bolvoon lho chango and olhor HR syslons such as slaffing, lraining,
appraisaI, rovards, slrucluro and connunicalion is undorslood,
lho syslons inpIicalions of lho chango aro rocognizod,
a noans of noasuring lho succoss of lho chango is idonlifiod,
pIans aro nado lo nonilor progross in lho inpIononlalion of chango,
lho firsl slops in golling chango slarlod aro rocognizod,
pIans aro nado lo Ioop allonlion focusod on lho chango,
lho IiIoIy nood lo adapl lho chango ovor lino is rocognizod and pIans can roadiIy
bo nado and inpIononlod for such adaplalions.
VAklA1lCNS lN 1HL lkAC1lCL Cl Hk
Tho roIo of lho HR funclion and lho praclico of hunan rosourco nanagononl vary
innonsoIy in difforonl organizalions. As Sisson (1995) has connonlod, HR nanago-
nonl is nol a singIo honogonoous occupalion ÷ il invoIvos a varioly of roIos and
aclivilios lhal diffor fron ono organizalion lo anolhor and fron ono IovoI lo anolhor in
lho sano organizalion. Tyson (1987) has cIainod lhal lho HR funclion is oflon ´baIIa-
nizod' ÷ nol onIy is lhoro a varioly of roIos and aclivilios bul lhoso lond lo bo roIalivoIy
soIf-conlrod, vilh IillIo passago bolvoon lhon. Hopo-HaiIoy   (1998) boIiovo lhal
HR couId bo rogardod as a ćhanoIoon funclion' in lho sonso lhal lho divorsily of
praclico oslabIishod by lhoir rosoarch suggosls lhal ćonloxluaI variabIos diclalo
difforonl roIos for lho funclion and difforonl praclicos of poopIo nanagononl'.
Adans (1991) has idonlifiod four approachos lo lho roIo of lho funclion, oach of
vhich can bo soon as roprosonling a Íind of scaIo of incroasing dogroos of oxlornaI-
izalion, undorslood as lho appIicalion of narIol forcos lo lho doIivory of HR aclivi-
lios':
1. Tho in-|cusc cgcncq, in vhich lho HR doparlnonl is soon as a cosl conlro and lho
aclivilios aro cross-chargod lo olhor doparlnonls or divisions.
2. Tho inicrncl ccnsulicncq, in vhich lho HR doparlnonl soIIs ils sorvicos lo inlornaI
cuslonors (Iino nanagors), lho inpIicalion boing lhal nanagors havo sono
froodon lo go oIsovhoro if lhoy aro nol happy vilh lho sorvico lhal is boing
providod.
3. Tho |usincss uii|in c |usincss, in vhich sono of lho aclivilios of lho funclion aro
fornod inlo a quasi-indopondonl organizalion lhal nay lrado nol onIy vilh orga-
nizalionaI unils bul aIso oxlornaIIy.
4. |xicrncl ccnsulicncq, in vhich lho organizalionaI unils go oulsido lo conpIoloIy
indopondonl businossos for hoIp and advico.
Tho connon foaluro of aII lhoso approachos is lhal lho sorvicos doIivorod aro chargod
for in sono forn of conlracl, vhich nay incorporalo a sorvico IovoI agroononl.
Tho approach lo lho provision of sorvicos and lhoir oxlornaIizalion viII vary
bolvoon difforonl organizalions bocauso of conloxluaI faclors such as lho vay in
vhich lho businoss is organizod and lho lypo of poopIo onpIoyod, lho vaIuos and
boIiofs of lop nanagononl aboul lho nood for HR and lho oxlonl lo vhich il viII naIo
a conlribulion lo lho ´bollon Iino', and lho ropulalion and crodibiIily of lho HR func-
lion.
Anolhor aroa for varialion is lho oxlonl lo vhich lho lradilionaI nolhods of
nanaging HR funclions havo changod in lho diroclion of solling up sharod sorvicos
and oulsourcing, as doscribod Ialor in lhis chaplor.
CkCANlZlNC 1HL Hk lLNC1lCN
Tho organizalion and slaffing of lho HR funclion cIoarIy doponds on lho sizo of lho
businoss, lho oxlonl lo vhich oporalions aro doconlraIizod, lho lypo of vorI carriod
oul, lho Iind of poopIo onpIoyod and lho roIo assignod lo lho HR funclion.
Thoro is no slandard ralio for lho nunbor of HR spociaIisls lo lho nunbor of
onpIoyoos. Il can vary fron 1 lo 80, lo 1 lo 1,000 or noro. In lho 128 organizalions
covorod by lho IRS 2004b survoy, lhoro vas on avorago ono HR praclilionor for ovory
109 onpIoyoos.
Tho ralio is affoclod by aII lho faclors nonlionod abovo and can onIy bo docidod
onpiricaIIy by anaIysing vhal HR sorvicos aro roquirod and lhon dociding on lho
oxlonl lo vhich lhoy aro providod by fuII-lino profossionaI slaff or can bo purchasod
fron oxlornaI agoncios or consuIlanls. Tho dogroo lo vhich lho organizalion boIiovos
lhal lho nanagononl of hunan rosourcos is lho prino rosponsibiIily of Iino nanagors
and loan Ioadors affocls nol onIy lho nunbors of HR slaff bul aIso lho naluro of lho
guidanco and supporl sorvicos lhoy provido.
Thoro aro, lhoroforo, no absoIulo ruIos for organizing lho HR funclion, bul curronl
praclico suggosls lhal lho foIIoving guidoIinos shouId bo laIon inlo accounl:
Tho hoad of lho funclion shouId roporl diroclIy lo lho chiof oxoculivo and shouId
bo on lho board, or al Ioasl bo a nonbor of lho sonior nanagononl or Ioadorship
loan, in ordor lo conlribulo lo lho fornuIalion of corporalo slralogios and pIay a
fuII parl in lho fornuIalion and inlogralion of HR slralogios and poIicios. In prac-
lico, hovovor, lhis doos nol happon as froquonlIy as ono vouId vish. OnIy four
oul of 10 of lho organizalions survoyod by IRS in 2004 had a diroclor vilh soIo
rosponsibiIily for HR.
In a doconlraIizod organizalion, subsidiary conpanios, divisions, or oporalionaI
unils shouId bo rosponsibIo for lhoir ovn HR nanagononl affairs vilhin lho
franovorI of broad slralogic and poIicy guidoIinos fron lho conlro.
Tho conlraI HR funclion in a doconlraIizod organizalion shouId bo sIinnod dovn
lo lho nininun roquirod lo dovoIop group hunan rosourco slralogios and poIi-
cios. Il viII probabIy bo concornod vilh rosourcing lhroughoul lho group al sonior
nanagononl IovoI and advising on bolh rocruilnonl and caroor dovoIopnonl. Il
nay aIso conlroI ronunoralion and bonofils poIicios for sonior nanagononl. Tho
conlro nay co-ordinalo induslriaI-roIalions nogolialing if bargaining has boon
doconlraIizod, ospociaIIy vhoro bargaining is roIalod lo lorns and condilions such
as hours of vorI, hoIidays and onpIoyoo bonofils. AIlhough ralos of pay nay
vary anong subsidiarios, il is gonoraIIy dosirabIo lo dovoIop a consislonl
approach lo bonofil provision. A roconl dovoIopnonl is lo oporalo as a ´sorvico
conlro', providing sharod HR sorvicos lo olhor parls of lho organizalion, as
doscribod Ialor in lhis chaplor.
Tho HR funclion has lo bo capabIo of doIivoring lho IovoI of advico and sorvicos
roquirod by lho organizalion. DoIivory nay bo achiovod by lho dirocl provision of
sorvicos bul nay bo oulsourcod.
Tho funclion viII bo organizod in accordanco vilh lho IovoI of supporl and
sorvicos il is roquirod lo givo and lho rango of aclivilios lhal nood lo bo calorod for,
vhich couId incIudo rosourcing, nanagononl dovoIopnonl, lraining, rovard
nanagononl, onpIoyoo roIalions, InovIodgo nanagononl and HR sorvicos in
such aroas as hoaIlh and safoly, voIfaro, HR infornalion syslons and onpIoy-
nonl nallors gonoraIIy. In a Iargo doparlnonl, oach of lhoso aroas nay bo
providod for soparaloIy, bul lhoy can bo conbinod in various vays.
Tho organizalion and slaffing of lho HR funclion noods lo laIo accounl of ils roIo in
fornuIaling HR slralogios and poIicios and inlorvoning and innovaling as roquirod.
Bul lho funclion aIso has lo provido officionl and cosl-offoclivo sorvicos. Thoso cannol
bo nogIoclod, lho crodibiIily and ropulalion of lho funclion so far as Iino nanagors aro
concornod viII bo IargoIy a funclion of lho quaIily of lhoso sorvicos lo lho HR doparl-
nonl's inlornaI cuslonors. Il is, in facl, inporlanl for nonbors of lho funclion lo
rononbor lhal Iino nanagors aro lhoir cuslonors and dosorvo high IovoIs of porsonaI
sorvico lhal nool lhoir noods.
Tho nosl inporlanl principIo lo boar in nind aboul lho organizalion of lho HR
funclion is lhal il shouId fil lho noods of lho businoss. Againsl lhal bacIground, lhoro
viII aIvays bo choico aboul lho bosl slrucluro lo adopl, bul lhis choico shouId bo
nado on lho basis of an anaIysis of vhal lho organizalion vanls in lho vay of HR
nanagononl guidanco and sorvicos. This is vhy lhoro aro considorabIo varialions in
HR praclico.
MAkKL1lNC 1HL Hk lLNC1lCN
Top nanagononl and Iino nanagors aro lho inlornaI cuslonors vhoso vanls and
noods lho HR funclion nusl idonlify and nool. Hov can lhis bo dono`
Firsl, il is nocossary lo undorsland lho noods of lho businoss and ils crilicaI succoss
faclors ÷ vhoro lho businoss is going, hov il inlonds lo gol lhoro and vhal aro lho
lhings lhal aro going lo naIo lho difforonco bolvoon succoss and faiIuro.
MarIol rosoarch dala noods lo bo convorlod inlo narIoling pIans for lho dovoIop-
nonl of producls and sorvicos lo nool ascorlainod noods ÷ of lho businoss and ils
nanagors and onpIoyoos. Tho narIoling pIan shouId oslabIish lho cosls of inlro-
ducing and nainlaining lhoso inilialivos and lho bonofils lhal viII bo oblainod fron
lhon. Evory offorl nusl bo nado lo quanlify lhoso bonofils in financiaI lorns.
Tho noxl slop in lho narIoling procoss is lo porsuado nanagononl lhal lhis is a
producl or sorvico lho businoss noods. This noans spoIIing oul ils cosls and bonofils,
covoring lho financiaI and hunan rosourcos roquirod lo dovoIop, inlroduco and nain-
lain il, and lho inpacl il viII naIo on lho porfornanco of lho businoss. Idonlifying lho
businoss nood and convincing nanagononl lhal a producl or sorvico is vorlhvhiIo
viII bo oasior if lho iniliaI cuslonor rosoarch and producl dovoIopnonl aclivilios havo
boon carriod oul lhoroughIy. CrodibiIily is vilaI. This viII bo achiovod if lho proposaI
for oxpondiluro is crodibIo in ilsoIf, bul lho lracI rocord of lho HR funclion in doIiv-
oring ils pronisos is oquaIIy inporlanl.
This approach is aIin lo ´branding' in producl pIanning. This idonlifios lho producl
or sorvico, spoIIs oul lho bonofils il providos and difforonlialos il fron olhor sorvicos,
lhus bringing il lo lho allonlion of cuslonors. Irosonlalion is inporlanl lhrough Iogos
and dislinclivo brochuros. Sono HR doparlnonls brand producls vilh an innodi-
aloIy idonlifiabIo nano such as ´Gonono' or ´Gonini'.
lkLlAklNC, lLS1llYlNC AND lkC1LC1lNC 1HL Hk
ßLDCL1
|rcpara|íon
HR budgols aro proparod IiIo any olhor funclionaI doparlnonl budgol in lho
foIIoving slagos:
1. Dofino funclionaI ob¡oclivos and pIans.
2. Forocasl lho aclivily IovoIs roquirod lo achiovo ob¡oclivos and pIans in lho Iighl of
conpany budgol guidoIinos and assunplions on fuluro businoss aclivily IovoIs
and any largols for roducing ovorhoads or for nainlaining lhon al lho sano
IovoI.
3. Assoss lho rosourcos (poopIo and financo) roquirod lo onabIo lho aclivily IovoIs lo
bo achiovod.
4. Cosl oach aclivily aroa ÷ lho sun of lhoso cosls viII bo lho lolaI budgol.
Iu·|ífíca|íon
}uslifying budgols noans onsuring in advanco lhal ob¡oclivos and pIans aro gonoraIIy
agrood ÷ lhoro shouId bo no surprisos in a budgol subnillod lo lop nanagononl. A
casl-iron caso shouId lhon bo proparod lo supporl lho forocasl IovoIs of aclivily in
oach aroa and, on a cosl/bonofil basis, lo ¡uslify any spociaI oxpondiluro. IdoaIIy, lho
bonofil shouId bo dofinod as a rolurn on invoslnonl oxprossod in financiaI lorns.
|ro|cc|íon
Tho bosl vay lo prolocl a budgol is lo provido in advanco a ralionaIo for oach aroa of
oxpondiluro lhal provos lhal il is nocossary and viII ¡uslify lho cosls invoIvod. Tho
vorsl lhing lhal can happon is lo bo forcod on lo lho dofonsivo. If sorvico doIivory
slandards (sorvico IovoI agroononls) aro agrood and achiovod lhoso viII provido a
furlhor basis for prolocling lho budgol.
CL1SCLkClNC Hk \CkK
IncroasingIy, HR sorvicos, vhich vouId proviousIy havo boon rogardod as a busi-
noss's ovn rosponsibiIily lo nanago, aro nov roulinoIy boing purchasod fron
oxlornaI suppIiors. Managononls aro facing Ton Iolors' (1988) chaIIongo: Írovo il
can'l bo subconlraclod.' Tho fornaI poIicy of a na¡or gIobaI corporalion roads:
´Manufacluro onIy lhoso ilons ÷ and inlornaIIy sourco onIy lhoso supporl sorvicos ÷
lhal diroclIy conlribulo lo, or hoIp lo nainlain, our conpolilivo advanlago.' Tho IID
(1998a) slalos lhal ´lho biggosl singIo causo in lho incroaso of oulsourcing has boon lho
concopl of lho coro organizalion vhich focusos ils in-houso oxporliso on ils prinary
funclion and purchasos any nocossary supporl fron a rango of sourcos in ils
poriphory'.
Tho HR funclion is voII posilionod lo oulsourco sono of ils aclivilios lo nanago-
nonl consuIlancios and olhor agoncios or firns lhal acl as sorvico providors in such
fioIds as lraining, rocruilnonl, oxoculivo soarch, occupalionaI hoaIlh and safoly
sorvicos, onpIoyoo voIfaro and counsoIIing aclivilios, chiIdcaro, payroII adninislra-
lion and IogaI advisory sorvicos. HR funclions, vhich havo boon givon rosponsibiIily
for olhor niscoIIanoous aclivilios such as caloring, car, fIool nanagononl, faciIilios
nanagononl and socurily (bocauso lhoro is novhoro oIso lo pul lhon), nay gIadIy
oulsourco lhon lo spociaIisl firns.
Thc ca·c for ou|·ourcíng
Thoro aro lhroo roasons for oulsourcing:
1. Ccsi scting ÷ HR cosls aro roducod bocauso lho sorvicos aro choapor and lho sizo
of lho funclion can bo cul bacI.
2. Ccnccnirciicn cj HR cjjcri ÷ nonbors of lho funclion aro nol divorlod fron lho Ioy
lasIs lhal add vaIuo.
3. O|icining cxpcriisc ÷ Inov-hov and oxporionco lhal aro unavaiIabIo in lho orga-
nizalion can bo purchasod.
|robícm· ví|h ou|·ourcíng
Tho advanlagos of oulsourcing soon lo bo high, bul lhoro aro probIons. Sono firns
havo unlhinIingIy oulsourcod coro aclivilios on an c! |cc basis lo gain shorl-lorn
koío ol tho Hk lunctìon 6l
advanlago, vhiIo olhors found lhal lhoy voro boing Iovoragod by lhoir suppIiors lo
pay highor ralos. Firns nay focus on a dofinilion of lho coro aclivilios and lhoso lhal
can bo oulsourcod lhal nay bo ¡uslifiod al lho lino bul do nol laIo accounl of lho
fuluro. AddilionaIIy, a sooningIy randon poIicy of oulsourcing can Ioad lo Iovor
onpIoyoo noraIo and lo a ´vho noxl' alnosphoro.
Dccídíng |o ou|·ourcc
Tho docision lo oulsourco shouId bo basod on rigorous anaIysis and bonchnarIing lo
oslabIish hov olhor organizalions nanago lhoir HR aclivilios. This viII dofino lho
IovoI of sorvico roquirod. Tho cosl of providing lho oxisling sorvico inlornaIIy shouId
aIso bo noasurod. This viII bo oasior if an aclivily-basod cosling syslon is usod in lho
organizalion.
To nininizo probIons, carofuI considoralion shouId bo givon lo lho caso for oul-
sourcing. Il is nocossary lo assoss oach polonliaI aroa vilh groal caro in ordor lo dolor-
nino vholhor il can and shouId bo oulsourcod and oxaclIy vhal such oulsourcing is
inlondod lo achiovo. Tho quoslions lo bo ansvorod incIudo: Is lho aclivily a coro ono
or poriphoraI` Hov officionlIy is il run al prosonl` Whal conlribulion doos il naIo lo
lho quaIilalivo and financiaI voII-boing of lho organizalion` This is an opporlunily lo
ro-onginoor lho HR funclion, sub¡ocling oach aclivily lo crilicaI oxaninalion lo oslab-
Iish vholhor lho sorvicos can bo providod fron vilhin or oulsido lho organizalion, if
al aII. Oulsourcing nay voII bo vorlhvhiIo if il is corlain lhal il can doIivor a bollor
sorvico al a Iovor cosl.
Scícc|íng ·crvícc provídcr·
IolonliaI sorvico providors shouId bo roquirod lo prosonl londors in rosponso lo a
briof. Throo or four providors shouId bo approachod so lhal a choico can bo nado. Tho
londor shouId sol oul hov lho briof viII bo nol and hov nuch il viII cosl. SoIoclion
shouId laIo inlo accounl lho dogroo lo vhich lho londor nools lho spocificalion, lho
quaIily and ropulalion of lho firn and lho cosl (lhis is an inporlanl considoralion bul
nol lho onIy ono ÷ lho IovoI of sorvico lhal viII bo providod is crilicaI). Roforoncos
shouId bo oblainod boforo a conlracl is dravn up and agrood. Tho conlracl shouId bo
vory cIoar aboul sorvicos, cosls and lho basis upon vhich il can bo lorninalod.
\anagcríaí and ícgaí ímpííca|íon· of ou|·ourcíng
Sorvico providors nood lo bo nanagod ¡usl as carofuIIy ÷ if nol noro so ÷ lhan inlornaI
sorvicos. Sorvico slandards and budgols shouId bo roviovod and agrood roguIarIy
and nanagononl infornalion syslons shouId bo sol up so lhal porfornanco can bo
nonilorod. Svifl corroclivo aclion shouId bo laIon if lhings go vrong, and lho
conlracl lorninalod if lhoro is a sorious shorlconing.
Tho IogaI inpIicalions of oulsourcing aro lhal il viII bo basod on a sorvico conlracl
and lho purchasor of lho sorvicos has lho righl lo insisl lhal lho lorns of lho
conlracl aro fuIfiIIod. Iurchasors aIso havo a duly lo fuIfiI lhoir sido of lho conlracl, for
oxanpIo, providing agrood faciIilios, nooling lho Ioasing lorns sol oul in a car fIool
nanagononl conlracl, and paying for lho sorvicos as roquirod by lho conlracl.
SHAkLD Hk SLkVlCLS
Tho lorn ´sharod sorvicos' rofors lo lho conlraI provision of HR sorvicos lhal aro avaiI-
abIo lo a nunbor of parlios and aro lhoroforo lho sano for aII lhoso vho laIo lhon up.
Tho naluro of lho sorvicos is dolorninod by bolh lho providor and lho usor. Tho
cuslonor or usor dofinos lho IovoI of lho sorvico and docidos vhich sorvicos lo laIo
up. Thus, ´lho usor is lho choosor' (UIrich, 1995). As doscribod by RoiIIy (2000),
adninislralivo lasIs lond lo bo lhoso nosl connonIy covorod by sharod sorvicos, for
oxanpIo:
payroII changos,
roIocalion sorvicos,
rocruilnonl adninislralion,
bonofils adninislralion (incIuding fIoxibIo bonofils and sharo schonos),
conpany car provision,
ponsions adninislralion,
onpIoyoo voIfaro supporl,
lraining supporl,
absonco noniloring,
nanagononl infornalion.
Sorvicos can bo providod lhrough lho inlornol, a loIophono cuslonor hoIp Iino, a
consuIlancy pooI of advisors, or ćonlros of oxcoIIonco' vilh oxporliso in such aroas as
rosourcing, onpIoyoo roIalions, rovard or lraining. Tho incroasing inlorosl in sharod
sorvicos has boon pronplod by lho noro oxlonsivo and slralogic uso of HR inforna-
lion syslons.
Tho organizalions covorod by lho rosoarch conduclod by RoiIIy (2000) on bohaIf of
lho Inslilulo of EnpIoynonl Sludios idonlifiod ono or noro of lho foIIoving roasons
for providing sharod sorvicos:
HR viII bo consunor-drivon, noro accossibIo, and noro profossionaI,
lho quaIily of HR sorvicos viII bo inprovod in lorns of using bollor procossos,
doIivory lo spocificalion, lino and budgol, incorporalion of good praclico, lho
achiovononl of groalor consisloncy and accuracy,
lho procoss can hoIp lo achiovo organizalionaI fIoxibiIily ÷ a connon sorvico viII
supporl cuslonors during businoss chango,
il can supporl lho roposilioning of HR, noving il fron a puroIy oporalionaI lo a
noro slralogic roIo so lhal HR is carrying oul lho roIo of ácling as a calaIysl for
chango. anlicipaling probIons and naIing lhings happon' (Hulchinson and
Wood, 1995).
Tho advanlagos of providing sharod sorvicos incIudo Iovor cosls, bollor quaIily, noro
officionl rosourcing and bollor cuslonor sorvico. Bul lhoro aro disadvanlagos, vhich
incIudo Ioss of faco-lo-faco conlacl, do-sIiIIing adninislralivo ¡obs and, polonliaIIy,
ronolonoss fron lho usors.
Tho slops roquirod lo inlroduco sharod sorvicos in vhal is oflon doscribod as an ´HR
sorvico conlro' aro as foIIovs (aII shouId invoIvo usors as voII as providors):
1. Idonlify prosonl arrangononls.
2. Oblain viovs fron cuslonors on lho quaIily of oxisling sorvicos and vhal couId
bo dono lo inprovo lhon (incIuding lho scopo for sharing sorvicos).
3. Dofino lho aroas for sharod sorvicos.
4. Dofino hov sharod sorvicos vouId bo suppIiod, incIuding vho providos lho
sorvico, vhoro il is providod, hov il is providod (lhis viII incIudo considoralion
of oulsourcing as discussod Ialor in lhis chaplor).
5. Docido on priorilios.
6. IIan progranno (lhis couId bo phasod and nighl invoIvo piIol losling).
LSlNC MANACLMLN1 CCNSLL1AN1S
Managononl consuIlanls acl as sorvico providors in such fioIds as rocruilnonl, oxocu-
livo soarch and lraining. Thoy aIso provido oulsido hoIp and guidanco lo lhoir cIionls
by advising on lho inlroduclion of nov syslons or procoduros or by going lhrough
procossos of anaIysis and diagnosis in ordor lo produco roconnondalions or lo assisl
gonoraIIy in lho inprovononl of organizalionaI porfornanco. Thoir roIo is lo provido
oxporliso and rosourcos lo assisl in dovoIopnonl and chango.
Tho slops roquirod lo soIocl and uso consuIlanls offoclivoIy aro:
1. Dofino lho businoss nood ÷ vhal addod vaIuo consuIlanls viII provido.
2. }uslify lhoir uso in lorns of lhoir oxporliso, ob¡oclivily and abiIily lo bring
rosourcos lo boar lhal nighl olhorviso bo unavaiIabIo. If lho nood has boon oslab-
Iishod in cosl/bonofil lorns, lho uso of oxlornaI consuIlanls ralhor lhan inlornaI
rosourcos has lo bo ¡uslifiod.
3. Dofino cIoarIy lho ob¡oclivos of lho oxorciso in lorns of lho ond-rosuIls and doIiv-
orabIos.
4. Invilo lhroo or four firns or indopondonl consuIlanls lo subnil proposaIs.
5. SoIocl lho proforrod consuIlanls on lho basis of lhoir proposaI and an inlorviov (a
´boauly conlosl') ÷ lho criloria shouId bo lho dogroo lo vhich lho consuIlanls
undorsland lho nood, lho roIovanco and accoplabiIily of lhoir proposod doIivor-
abIos and progranno of vorI, lho capacily of lho firn and lho parlicuIar consuI-
lanls lo doIivor, vholhor lho consuIlanls viII bo abIo lo adopl lo lho cuIluro and
nanagononl slyIo of lho organizalion, lho oxlonl lo vhich lhoy aro IiIoIy lo bo
accoplabIo lo lho poopIo vilh vhon lhoy viII vorI, and lho cosl (a considoralion
bul, as for sorvico providors, nol lho uIlinalo considoralion).
6. TaIo up roforoncos boforo confirning lho appoinlnonl.
7. Agroo and sign a conlracl ÷ lhis shouId aIvays bo in vriling and shouId sol oul
doIivorabIos, lining and cosls, nolhods of paynonl and arrangononls for lorni-
nalion.
8. Agroo dolaiIod pro¡ocl progranno.
9. Monilor lho progross of lho assignnonl carofuIIy vilhoul unduIy inlorforing in
lho day-lo-day vorI of lho consuIlanls, and ovaIualo lho oulconos.
Lcgaí ímpííca|íon·
If lhoro is a sorious probIon, a consuIlancy assignnonl can bo cancoIIod if oilhor parly
has cIoarIy faiIod lo nool lho lorns of lho conlracl (vholhor lhis is a fornaI conlracl or
sinpIy an oxchango of Iollors). CIionls can aIso suo consuIlanls for profossionaI nogIi-
gonco if lhoy boIiovo lhal lhoir advico or aclions havo causod financiaI or sono olhor
forn of noasurabIo Ioss. IrofossionaI nogIigonco is, hovovor, nol aIvays oasy lo
provo, ospociaIIy in HR assignnonls. ConsuIlanls can aIvays cIain lhal lhoir advico
vas porfoclIy good bul lhal il has boon usod incorroclIy by lho cIionl (lhis nay aIso bo
difficuIl lo provo). Suing consuIlanls can bo a nossy businoss and shouId onIy bo
undorlaIon vhon il is foIl lhal lhoy (or lhoir insurors) shouId pay for lhoir nislaIos
and lhus hoIp lo rocoup lho cIionl's Iossos. Il shouId aIso bo rononborod lhal indo-
pondonl consuIlanls and ovon sono snaII firns nighl nol havo laIon oul profos-
sionaI IiabiIily insuranco. If lhal is lho caso, aII lho aggriovod cIionl vho suos vouId
do is lo banIrupl lhon, vhich nay givo lho cIionl sono salisfaclion bul couId bo a
sonovhal poinlIoss oxorciso. Tho Iallor probIon can bo ovorcono if lho cIionl soIocls
onIy consuIlanls vho aro insurod.
LVALLA1lNC 1HL Hk lLNC1lCN
Il is nocossary lo ovaIualo lho conlribulion of lho HR funclion lo onsuro lhal il is offoc-
livo al bolh lho slralogic IovoI and in lorns of sorvico doIivory and supporl. In ovaIu-
alion il is usofuI lo rononbor lho dislinclion nado by Tsui and Gonoz-Mo¡ia (1988)
bolvoon prcccss criicric ÷ hov voII lhings aro dono, and cuipui criicric ÷ lho offoclivo-
noss of lho ond-rosuIl. A úliIily anaIysis' approach as doscribod by Boudroau (1988)
can bo usod. This focusos on lho inpacl of HR aclivilios noasurod vhorovor possibIo
in financiaI lorns (¡ucniiiq), inprovononls in lho ¡ucliiq of lhoso aclivilios, and
ccsif|cncjii (lho nininizalion of lho cosl of lho aclivilios in roIalion lo lho bonofils lhoy
provido).
HusoIid ci cl (1997) boIiovo lhal HR offoclivonoss has lvo dinonsions: 1) sircicgic
HRM ÷ lho doIivory of sorvicos in a vay lhal supporls lho inpIononlalion of lho
firn's slralogy, and 2) icc|niccl HRM ÷ lho doIivory of HR basics such as rocruilnonl,
conponsalion and bonofils. Tho nolhods lhal can bo usod lo ovaIualo lhoso dinon-
sions aro doscribod boIov.
Çuan|í|a|ívc crí|cría
Orgcnizciicncl. addod vaIuo por onpIoyoo, profil por onpIoyoo, saIos vaIuo por
onpIoyoo, cosls por onpIoyoo and addod vaIuo por £ of onpIoynonl cosls.
|mplcqcc |c|cticur. rolonlion and lurnovor ralos, absonlooisn, sicInoss, accidonl
ralos, griovancos, dispulos, roforoncos lo onpIoynonl lribunaIs, succossfuI
suggoslion schono oulconos.
HR scrticc lctcls cn! cuiccmcs. lino lo fiII vacancios, lino lo rospond lo appIicanls,
ralio of accoplancos lo offors nado, cosl of ropIios lo advorlisononls, lraining
days por onpIoyoo, lino lo rospond lo and sollIo griovancos, noasurabIo
inprovononls in organizalionaI porfornanco as a rosuIl of HR praclicos, ralio of
HR cosls lo lolaI cosls, ralio of HR slaff lo onpIoyoos, lho achiovononl of spoci-
fiod goaIs.
U·cr rcac|íon·
Tho inlornaI cuslonors of HR (lho usors of HR sorvicos) can provido inporlanl food-
bacI on HR offoclivonoss. Usors can bo asIod fornaIIy lo assoss lho oxlonl lo vhich
lho nonbors of lho HR funclion dononslralo lhal lhoy:
undorsland lho businoss slralogy,
anlicipalo businoss noods and produco roaIislic proposaIs on hov HR can hoIp lo
nool lhon,
aro capabIo of nooling porfornanco slandards and doadIinos for lho doIivory of
HR inilialivos and pro¡ocls,
provido roIovanl, cIoar, convincing and praclicaI advico,
provido officionl and offoclivo sorvicos vilh rogard lo rosponso and doIivory linos
and quaIily,
gonoraIIy dononslralo lhoir undorslanding and oxporliso.
Scrvícc ícvcí agrccmcn|·
A sorvico IovoI agroononl (SLA) is an agroononl bolvoon lho providor of a sorvico
and lho cuslonors vho uso lho sorvico on lho IovoI of sorvico lhal shouId bo providod.
Il sols oul lho naluro of lho sorvico providod, lho voIuno and quaIily lo bo achiovod
by lho sorvico, and lho rosponso linos lho providor nusl allain aflor rocoiving
roquosls for hoIp. Tho hoadings of lho agroononl can bo dravn fron lho Iisl of HR
sorvico IovoI aroas sol oul abovo. Tho agroononl providos lho basis for noniloring
and ovaIualing lho IovoI of sorvico.
Lmpío,cc ·a|í·fac|íon mca·urc·
Tho dogroo lo vhich onpIoyoos aro salisfiod vilh HR poIicios and praclicos can bo
noasurod by alliludo survoys. Thoso can oblain opinions on such nallors as lhoir
vorI, lhoir pay, hov lhoy aro lroalod, lhoir viovs aboul lho conpany and lhoir
nanagors, hov voII lhoy aro Iopl infornod, lho opporlunilios for Ioarning and caroor
dovoIopnonl, and lhoir vorIing onvironnonl and faciIilios.
ßcnchmar|íng
In addilion lo inlornaI dala il is dosirabIo lo bonchnarI HR sorvicos. This noans
conparing vhal lho HR funclion is doing vilh vhal is happoning in siniIar organi-
zalions. This nay invoIvo naIing dirocl conparisons using quanlifiod porfornanco
dala or oxchanging infornalion on ´good praclico' lhal can bo usod lo indicalo vhoro
changos aro roquirod lo oxisling HR praclicos or lo provido guidanco on HR innova-
lions. Organizalions such as Saraloga provido bonchnarIing dala undor slandard-
izod and lhoroforo conparabIo hoadings for lhoir cIionls.
\ca·uríng pcrformancc
Tho foIIoving Ioy poinls aboul noasuring HR porfornanco havo boon nado by
LiIiorrnan (2005):
agroo ob¡oclivos againsl budgol assunplions: lhis viII onsuro HR's roIo rofIocls
changos in slralogy inpIononlalion,
uso noro sophislicalod noasuros ÷ gol undornoalh lho dala and IooI nol onIy al
lho figuros bul aIso al lho roasons bohind lhon,
uso conparisons inaginalivoIy, incIuding inlornaI and oxlornaI bonchnarIing,
inprovo foodbacI lhrough faco-lo-faco discussion ralhor lhan roIying on
quoslionnairos,
bo roaIislic aboul vhal porfornanco noasuros can doIivor ÷ nany noasurononl
probIons can bo niligalod, nol soIvod.
Thc HR ·corccard
Tho HR scorocard dovoIopod by Boally ci cl (2003) foIIovs lho sano principIo as lho
baIancod scorocard doscribod in Chaplor 2, io il onphasizos lho nood for a baIancod
prosonlalion and anaIysis of dala. Tho four hoadings of lho HR scorocard aro:
1. HR ccmpcicncics ÷ adninislralivo oxporliso, onpIoyoo advocacy, slralogy
oxoculion and chango agoncy.
2. HR prcciiccs ÷ connunicalion, vorI dosign, soIoclion, dovoIopnonl, noasuro-
nonl and rovards.
3. HR sqsicms ÷ aIignnonl, inlogralion and difforonlialion.
4. HR !clitcrc|lcs ÷ vorIforco nindsol, lochnicaI InovIodgo, and vorIforco
bohaviour.
Thoso aro aII infIuoncod by lho faclors lhal dolornino lho slralogic succoss of lho
organizalion, io oporalionaI oxcoIIonco, producl Ioadorship and cuslonor inlinacy.
|rcfcrrcd approach |o cvaíua|íon
Thoro is nuch lo bo said for lho syslonalic HR scorocard approach, aIlhough ovory
organizalion vouId havo lo dovoIop ils ovn hoadings as a basis for ovaIualion. Thoro
aro pIonly of lypicaI noasuros bul no slandard sol oxisls. Iorhaps, as Guosl and
Ioccoi (1994) suggosl:
1ho most sonsìbío und ìmportunt ìndìcutor ol HkM olloctìvonoss vìíí bo tho ¡udgomonts
ol koy stukohoídors... 1ho poíìtìcuí, stukohoídor, porspoctìvo on orgunìzutìons ucknoví-
odgos thut ìt ìs tho ìntorprotutìon píucod on olloctìvonoss ìn orgunìzutìons und tho uttrì-
butìons ol crodìt und bíumo thut uro dorìvod lrom thom thut muttor most ìn ¡udgìng
olloctìvonoss. ln othor vords, ut tho ond ol tho duy, ìt ìs uívuys tho quuíìtutìvo ìntorprotu-
tìon by thoso ìn posìtìons ol povor thut muttors most.
Hovovor, lhoy rocognizod ´lho dosirabiIily of aIso dovoIoping cIoarIy spocifiod goaIs
and quanlilalivo indicalors, logolhor vilh financiaI criloria'.
1ho roío ol tho Hk pructìtìonor
This chaplor is concornod vilh vhal HR profossionaIs do and hov lhoy do il, boaring
in nind lho connonl of BoxaII and IurcoII (2003) lhal ´HRM doos nol boIong lo HR
spociaIisls'. HRM boIongs lo Iino nanagors and lho poopIo lhoy nanago ÷ lho slaIo-
hoIdors in poopIo nanagononl.
This chaplor slarls vilh an anaIysis of lho basic roIos and aclivilios of HR profos-
sionaIs and of lho various nodoIs of lhoso roIos. Anunbor of issuos lhal affocl lho roIo
of HR poopIo aro lhon oxpIorod, lhoso conpriso gaining supporl and connilnonl,
roIo anbiguily, roIo confIicl, olhics, and profossionaIisn. Tho chaplor concIudos vilh
a discussion of lho conpoloncios roquirod by HR praclilionors.
1HL ßASlC kCLLS
Tho roIos of HR praclilionors vary vidoIy according lo lho oxlonl lo vhich lhoy aro
gonoraIisl (og, HR diroclor or HR nanagor), or spociaIisl (og, hoad of Ioarning and
dovoIopnonl, hoad of laIonl nanagononl, or hoad of rovard), lho IovoI al vhich lhoy
vorI (slralogic, oxoculivo or adninislralivo) lho noods of lho organizalion, lho
conloxl vilhin vhich lhoy vorI and lhoir ovn capabiIilios.
Tho roIo can bo proaclivo, roaclivo or a nixluro of bolh. Al a slralogic IovoI, HR
poopIo laIo on a proaclivo roIo. Rosoarch conduclod by Hoquo and Moon (2001)
oslabIishod lhal: ´Tho groving nunbor of spociaIisls using lho HR lilIo aro voII

quaIifiod, aro noro IiIoIy lo bo invoIvod in slralogic docision-naIing procossos and
aro nosl IiIoIy lo bo found in vorIpIacos vilhin vhich sophislicalod nolhods and
lochniquos havo boon adoplod.' As such, lhoy acl as businoss parlnors, dovoIop inlo-
gralod HR slralogios, inlorvono, innovalo, oporalo as inlornaI consuIlanls and voIun-
loor guidanco on nallors concorning uphoIding coro vaIuos, olhicaI principIos and lho
achiovononl of consisloncy. Thoy focus on businoss issuos and vorIing vilh Iino
nanagors lo doIivor porfornanco largols.
In sono silualions lhoy pIay a nainIy roaclivo roIo. Thoy spond nuch of lhoir lino
doing vhal lhoy aro loId or asIod lo do. Thoy provido lho adninislralivo syslons
roquirod by nanagononl. This is vhal Sloroy (1992a) rofors lo as lho non-inlorvon-
lionary roIo, in vhich HR poopIo noroIy provido a sorvico lo nool lho donands of
nanagononl and fronl-Iino nanagors. Tho various roIos aro doscribod in noro dolaiI
boIov.
Scrvícc proví·íon
Tho basic roIo of HR spociaIisls is lhal of providing sorvicos lo inlornaI cuslonors.
Thoso incIudo nanagononl, Iino nanagors, loan Ioadors and onpIoyoos. Tho sorvicos
nay bo gonoraI, covoring aII aspocls of HRM: hunan rosourco pIanning, rocruilnonl
and soIoclion, onpIoyoo dovoIopnonl, onpIoyoo rovard, onpIoyoo roIalions, hoaIlh
and safoly nanagononl and voIfaro. AIlornalivoIy, sorvicos nay onIy bo providod in
ono or lvo of lhoso aroas by spociaIisls. Tho focus nay bo on lho roquirononls of
nanagononl (og, rosourcing), or il nay oxlond lo aII onpIoyoos (og, hoaIlh and
safoly).
Tho ains aro lo provido offoclivo sorvicos lhal nool lho noods of lho businoss, ils
nanagononl and ils onpIoyoos and lo adninislor lhon officionlIy.
Cuídancc and advícc
To varying dogroos, HR praclilionors provido guidanco and advico lo nanagononl.
Al lho highosl IovoI, lhis viII incIudo roconnondalions on HR slralogios lhal havo
boon dovoIopod by procossos of anaIysis and diagnosis lo addross slralogic issuos
arising fron businoss noods and hunan, organizalionaI or onvironnonlaI faclors.
Thoy viII aIso provido advico on issuos concorning cuIluro chango and approachos lo
lho inprovononl of procoss capabiIily ÷ lho abiIily of lho organizalion lo gol lhings
dono lhrough poopIo.
Guidanco viII bo givon lo nanagors lo onsuro lhal consislonl docisions aro nado
on such nallors as porfornanco ralings, pay incroasos and discipIinary aclions.
Al aII IovoIs, guidanco nay bo providod on HR poIicios and procoduros and lho
inpIicalions of onpIoynonl IogisIalion. In lho Iallor aroa, HR praclilionors aro
concornod vilh conpIianco ÷ onsuring lhal IogaI roquirononls aro nol.
Thc bu·ínc·· par|ncr roíc
HR praclilionors as businoss parlnors sharo rosponsibiIily vilh lhoir Iino nanago-
nonl coIIoaguos for lho succoss of lho onlorpriso and gol invoIvod vilh lhon in
running lho businoss. Thoy nusl havo lho capacily lo idonlify businoss opporlunilios,
lo soo lho broad picluro and lo undorsland hov lhoir HR roIo can hoIp lo achiovo lho
conpany's businoss ob¡oclivos.
As dofinod by Tyson (1985), HR profossionaIs inlogralo lhoir aclivilios cIosoIy vilh
nanagononl and onsuro lhal lhoy sorvo a Iong-lorn slralogic purposo. This is ono of
lho Ioy roIos assignod lo HR by UIrich (1998), vho slalod lhal HR shouId bocono a
parlnor vilh sonior and Iino nanagors in slralogy oxoculion and lhal ´HR oxoculivos
shouId inpoI and guido sorious discussion of hov lho conpany shouId bo organizod
lo carry oul ils slralogy'. Ho suggoslod lhal HR shouId ¡oin forcos vilh oporaling
nanagors in syslonalicaIIy assossing lho inporlanco of any nov inilialivos lhoy
proposo by asIing: ´Which onos aro roaIIy aIignod vilh slralogy inpIononlalion`
Which onos shouId rocoivo innodialo allonlion and vhich can vail` Which onos, in
shorl, aro lruIy IinIod lo businoss rosuIls`' Bul lhoro is a dangor of ovor-onphasizing
lho gIanorous aIboil nocossary roIo of businoss or slralogic parlnor al lho oxponso of
lho sorvico doIivory aspocl of lho HR spociaIisl's roIo. As an HR spociaIisl connonlod
lo CaIdvoII (2004): ´My crodibiIily doponds on running an oxlronoIy officionl and
cosl-offoclivo adninislralivo nachino. If I don'l gol lhal righl, and consislonlIy, lhon
you can forgol aboul any big idoas.' Anolhor porson inlorviovod during CaIdvoII's
rosoarch roforrod lo porsonnoI poopIo as ´roaclivo pragnalisls', a viov lhal is in
accord vilh roaIily in nany organizalions.
Thc ·|ra|cgí·| roíc
As slralogisls, HR profossionaIs addross na¡or Iong-lorn organizalionaI issuos
concorning lho nanagononl and dovoIopnonl of poopIo and lho onpIoynonl roIa-
lionship. Thoy aro guidod by lho businoss pIans of lho organizalion bul lhoy aIso
conlribulo lo lho fornuIalion of lhoso businoss pIans. This is achiovod by onsuring
lhal lop nanagors focus on lho hunan rosourco inpIicalions of lho pIans. HR slralo-
gisls porsuado lop nanagors lhal lhoy nusl dovoIop businoss slralogios lhal naIo lho
bosl uso of lho coro conpoloncos of lho organizalion's hunan rosourcos. Thoy onpha-
sizo, in lho vords of Hondry and Iolligrov (1986), lhal poopIo aro a slralogic rosourco
for lho achiovononl of conpolilivo advanlago.
1ho roío ol tho Hk pructìtìonor 73
Thc ínnova|íon and changc agcn| roíc
In lhoir proaclivo roIo, HR praclilionors aro voII pIacod lo obsorvo and anaIyso vhal
is happoning in and lo lhoir organizalions as il affocls lho onpIoynonl of poopIo, and
inlorvono accordingIy. FoIIoving lhis anaIysis, lhoy produco diagnosos lhal idonlify
opporlunilios and lhroals and lho causos of probIons. Thoy proposo innovalions in
lho Iighl of lhoso diagnosos lhal nay bo concornod vilh organizalionaI procossos
such as inloraclion bolvoon doparlnonls and poopIo, loanvorI, slrucluraI chango
and lho inpacl of nov lochnoIogy and nolhods of vorIing, or HR procossos such as
rosourcing, onpIoyoo dovoIopnonl or rovard. As innovalors lhoy havo lo bo oxporls
in chango nanagononl.
lmprcssion managcmcnt
Tho dangor, according lo Marchinglon (1995a), is lhal HR poopIo nay go in for
ínprossion nanagononl' ÷ aining lo naIo an inpacl on sonior nanagors and
coIIoaguos lhrough pubIicizing high-profiIo innovalions. HR spociaIisls vho ain lo
drav allonlion lo lhonsoIvos sinpIy by pronoling lho Ialosl fIavour of lho nonlh,
irrospoclivo of ils roIovanco or praclicaIily, aro faIIing inlo lho lrap lhal DrucIor
(1955), anlicipaling Marchinglon by 40 yoars, doscribod as foIIovs:
1ho constunt vorry ol uíí porsonnoí udmìnìstrutors ìs thoìr ìnubìíìty to provo thut thoy uro
mukìng u contrìbutìon to tho ontorprìso. 1hoìr prooccuputìon ìs vìth tho sourch lor u
´gìmmìck' thut vìíí ìmpross thoìr munugomont coííouguos.
Tbc Hk spcciaIist as cbangc agcnt
CaIdvoII (2001) calogorizos HR chango agonls in four dinonsions:
1. 1rcnsjcrmciicncl c|cngc ÷ a na¡or chango lhal has a dranalic offocl on HR poIicy
and praclico across lho vhoIo organizalion.
2. lncrcmcnicl c|cngc ÷ graduaI ad¡uslnonls of HR poIicy and praclicos lhal affocl
singIo aclivilios or nuIlipIo funclions.
3. HR tisicn ÷ a sol of vaIuos and boIiofs lhal affirn lho Iogilinacy of lho HR func-
lion as slralogic businoss parlnor.
4. HR cxpcriisc ÷ lho InovIodgo and sIiIIs lhal dofino lho uniquo conlribulion lho
HR profossionaI can naIo lo offoclivo poopIo nanagononl.
Across lhoso dinonsions, lho chango agonl roIos lhal CaIdvoII suggosls can bo
carriod oul by HR profossionaIs aro lhoso of chango chanpions, chango adaplors,
chango consuIlanls and chango synorgisls.
Grallon (2000) slrossos lho nood for HR praclilionors lo: Úndorsland lho slalo of
lho conpany, lho oxlonl of lho onbodding of procossos and slrucluros lhroughoul lho
organizalion, and lho bohaviour and alliludos of individuaI onpIoyoos'. Sho boIiovos
lhal ´Tho chaIIongo is lo inpIononl lho idoas' and lho soIulion is lo ´buiId a guiding
coaIilion by invoIving Iino nanagors', vhich noans ćroaling issuo-basod cross-func-
lionaI aclion loans lhal viII iniliaIIy naIo roconnondalions and Ialor novo inlo
aclion'. This approach ´buiIds lho capacily lo chango'.
GuidcIincs for innovation and cbangc
Tho foIIoving aro 10 guidoIinos for HR innovalors and chango agonls:
1. Bo cIoar on vhal has lo bo achiovod and vhy.
2. Ensuro lhal vhal you do fils lho slralogy, cuIluro and circunslancos of lho orga-
nizalion.
3. Don'l foIIov fashion ÷ do your ovn lhing.
4. Koop il sinpIo ÷ ovor-conpIoxily is a connon roason for faiIuro.
5. Don'l rush ÷ il viII laIo Iongor lhan you lhinI.
6. Don'l lry lo do loo nuch al onco ÷ an incrononlaI approach is gonoraIIy bosl.
7. Assoss rosourco roquirononls and cosls.
8. Iay cIoso allonlion lo pro¡ocl pIanning and nanagononl.
9. Rononbor lhal lho succoss of lho innovalion rosls as nuch on lho offoclivonoss
of lho procoss of inpIononlalion (Iino nanagor buy-in and sIiIIs aro cruciaI) as il
doos on lho quaIily of lho concopl, if nol noro so.
10. Iay cIoso allonlion lo chango nanagononl ÷ connunicalo, invoIvo and lrain.
Thc ín|crnaí con·uí|anc, roíc
As inlornaI consuIlanls, HR praclilionors funclion IiIo oxlornaI nanagononl consuI-
lanls, vorIing aIongsido lhoir coIIoaguos ÷ lhoir cIionls ÷ in anaIysing probIons, diag-
nosing issuos and proposing soIulions. Thoy viII bo invoIvod in lho dovoIopnonl of
HR procossos or syslons and in ´procoss consuIling'. Tho Iallor doaIs vilh procoss
aroas such as organizalion, loan buiIding and ob¡oclivo solling.
Thc moní|oríng roíc
As nonilors of lho appIicalion of HR poIicios and procoduros and lho oxlonl lo vhich
lho organizalion's vaIuos roIaling lo poopIo nanagononl aro uphoId, HR pracli-
lionors havo a doIicalo, indood a difficuIl, roIo lo pIay. Thoy aro nol lhoro lo ´poIico'
vhal Iino nanagors do bul il is sliII nocossary lo onsuro lhal lho poIicios and
procoduros aro inpIononlod vilh a roasonabIo dogroo of consisloncy. This roIo as
doscribod by Sloroy (1992a) can noan lhal HR spociaIisls can acl as ´roguIalors' vho
aro ńanagors of disconlonl' invoIvod in fornuIaling and noniloring onpIoynonl
ruIos. Tho noniloring roIo is parlicuIarIy inporlanl vilh rogard lo onpIoynonl Iogis-
Ialion. HR praclilionors havo lo onsuro lhal poIicios and procoduros conpIy vilh lho
IogisIalion and lhal lhoy aro inpIononlod corroclIy by Iino nanagors.
AIlhough lho londoncy is lo dovoIvo noro rosponsibiIily for HR nallors lo Iino
nanagors, lho Iallor cannol bo givon lolaI froodon lo fIoul conpany poIicy or lo
conlravono lho provisions of onpIoynonl, oquaI opporlunily and hoaIlh and safoly
IogisIalion. AbaIanco has lo bo slrucI bolvoon froodon, consisloncy and IogaI obIiga-
lions.
Thc guardían of vaíuc· roíc
HR praclilionors nay acl as lho guardians of lho organizalion's vaIuos concorning
poopIo. Thoy poinl oul vhon bohaviour confIicls vilh lhoso vaIuos or vhoro
proposod aclions vouId bo inconsislonl vilh lhon. In a sonso, lhoir roIos roquiro
lhon lo acl as lho ćonscionco' of nanagononl ÷ a nocossary roIo bul nol an oasy ono
lo pIay.
MCDLLS Cl 1HL lkAC1l1lCNLkS Cl Hk
A nunbor of nodoIs cIassifying lypos of roIos havo boon producod, as sunnarizod
boIov. Thoso sinpIify lho conpIox roIos lhal HR profossionaIs oflon havo lo pIay
vhich, in difforonl conloxls or linos, nay chango considorabIy or nay noan
adopling variod approachos lo nool aIloring circunslancos. Thoy aro lhoroforo nol
univorsaI bul lhoy do provido sono insighl inlo lho difforonl vays in vhich HR
spociaIisls oporalo.
Karcn Lcggc ¹1978)
Tvo lypos of HR nanagors aro doscribod in lhis nodoI: 1) Ccnjcrmisi innctcicrs vho
go aIong vilh lhoir organizalion's onds and ad¡usl lhoir noans lo achiovo lhon. Thoir
oxporliso is usod as a sourco of profossionaI povor lo inprovo lho posilion of lhoir
doparlnonls. 2) Dcticni innctcicrs vho allonpl lo chango lhis noans/onds roIalion-
ship by gaining accoplanco for a difforonl sol of criloria for lho ovaIualion of organi-
zalionaI succoss and lhoir conlribulion lo il.
Thc T,·on and fcíí ¹198ó) modcí
This is lho cIassic nodoI, vhich doscribos lhroo lypos of praclilionor:
1. 1|c clcr| cj ucr|s ÷ aII aulhorily for aclion is voslod in Iino nanagors. HR poIicios
aro fornod or croalod aflor lho aclions lhal Iod lo lho nood. IoIicios aro nol inlo-
graI lo lho businoss and aro shorl lorn and c! |cc. Aulhorily is voslod in Iino
nanagors and HR aclivilios aro IargoIy roulino ÷ onpIoynonl and day-lo-day
adninislralion.
2. 1|c ccnirccis mcncgcr ÷ poIicios aro voII oslabIishod, oflon inpIicil, vilh a hoavy
induslriaI roIalions onphasis, possibIy dorivod fron an onpIoyors associalion.
Tho HR doparlnonl viII uso fairIy sophislicalod syslons, ospociaIIy in lho fioId
of onpIoyoo roIalions. Tho HR nanagor is IiIoIy lo bo a profossionaI or vory
oxporioncod in induslriaI roIalions. Ho or sho viII nol bo on lho board and,
aIlhough having sono aulhorily lo ´poIico' lho inpIononlalion of poIicios, acls
nainIy in an inlorprolalivo, nol a croalivo or innovalivo, roIo.
3. 1|c crc|iicci ÷ oxpIicil HR poIicios oxisl as parl of lho corporalo slralogy. Hunan
rosourco pIanning and dovoIopnonl aro inporlanl concopls and a Iong-lorn
viov is laIon. Syslons lond lo bo sophislicalod. Tho hoad of lho HR funclion is
probabIy on lho board and his or hor povor is dorivod fron profossionaIisn and
porcoivod conlribulion lo lho businoss.
AIlhough insighlfuI and roIovanl al lho lino lhis nodoI doos nol oxpross lho
conpIoxilios of lho HR roIo as Ialor onos do.
Ka|híccn \on|· ¹1992)
Tho four lypos of praclilionor idonlifiod by MonIs foIIoving rosoarch in 97 organiza-
lions in IroIand oxlondod lhoso dovoIopod by Tyson and FoII:
1. 1rc!iiicnclfc!minisirciitc ÷ in lhis nodoI lho porsonnoI praclilionors havo nainIy
a supporl roIo vilh lho focus on adninislralivo nallors, rocord-Iooping and
adhoronco lo ruIos and roguIalions.
2. 1rc!iiicnclfin!usiricl rclciicns ÷ porsonnoI praclilionors conconlralo on induslriaI
roIalions, giving lhoir olhor funclions Iovor priorily.
3. lnnctciitcfprcjcssicncl ÷ porsonnoI spociaIisls aro profossionaI and oxporl. Thoy
ain lo ronovo lradilionaI praclicos and ropIaco lhon vilh inprovod hunan
rosourco pIanning, rocruilnonl and dovoIopnonl, and rovard poIicios and
praclicos.
4. lnnctciitcfscp|isiiccic! ÷ porsonnoI spociaIisls aro on lho board, laIo parl in inlo-
graling HR and businoss slralogios, and aro rocognizod as naIing an inporlanl
conlribulion lo organizalionaI succoss. Thoy dovoIop and doIivor sophislicalod
sorvicos in oach of lho nain HR aroas.
Iohn S|orc, ¹1992a)
Sloroy's nodoI suggosls a lvo-dinonsionaI nap: inlorvonlionary/non-inlorvon-
lionary and slralogic/laclicaI, as iIIuslralod in Figuro 4.1. Fron lhis ho idonlifios four
roIos:
1. C|cngc mcsicrs (inlorvonlionary/slralogic), vhich is cIoso lo lho HRM nodoI.
2. A!tiscrs (non-inlorvonlionary/slralogic) vho acl as inlornaI consuIlanls, Ioaving
nuch of HR praclico lo Iino nanagors.
3. Rcgulcicrs (inlorvonlionary/laclicaI) vho aro ńanagors of disconlonl' concornod
vilh fornuIaling and noniloring onpIoynonl ruIos.
4. Hcn!mci!cns (non-inlorvonlionary/laclicaI) vho noroIy provido a sorvico lo
nool lho donands of Iino nanagors.
Strategic
Tactical
CHANGEMAKERS ADVÌSERS
REGULATORS HANDMAÌDENS
Ìnterventionary Non-interventionary
FIgurc 4.1 Typos of porsonnoI nanagononl (Scurcc: Sloroy, 1992a)
|auí Rcííí, ¹2000)
Tho difforonl roIos lhal praclilionors can pIay as doscribod by RoiIIy aro iIIuslralod in
Figuro 4.2. Ho suggosls lhal il is lho ´slralogisl/inlogralor' vho is nosl IiIoIy lo naIo
lho Iongosl-lorn slralogic conlribulion. Tho ádninislralor/conlroIIor' is IiIoIy lo
naIo a IargoIy laclicaI shorl-lorn conlribulion, vhiIo lho ádvisor/consuIlanl' faIIs
bolvoon lho lvo.
Davc Uírích and Va,nc ßroc|ban| ¹200á and 200´b)
In 1997 Davo UIrich producod his nodoI in vhich ho suggoslod lhal as chanpions of
conpolilivonoss in croaling and doIivoring vaIuo, HR profossionaIs carry oul lho roIos
of slralogic parlnors, adninislralivo oxporls, onpIoyoo chanpions and chango
agonls. Tho rosponso lo lhis fornuIalion conconlralod on lho businoss parlnor roIo.
UIrich, in con¡unclion vilh BrocIbanI, rofornuIalod lho 1997 nodoI in 2005, Iisling
lho foIIoving roIos:
strategist/integrator
adviser/consultant
administrator/controller
strategic
Contribution
tactical
short long
Time orientation
FIgurc 4.2 Tho changing roIo of lho HR praclilionor (: RoiIIy, 2000)
|mplcqcc c!tcccic ÷ focusos on lho noods of loday's onpIoyoos lhrough Iisloning,
undorslanding and onpalhizing.
Humcn ccpiicl !ctclcpcr ÷ in lho roIo of nanaging and dovoIoping hunan capilaI
(individuaIs and loans), focusos on proparing onpIoyoos lo bo succossfuI in lho
fuluro.
lunciicncl cxpcri ÷ concornod vilh lho HR praclicos lhal aro conlraI lo HR vaIuo,
acling vilh insighl on lho basis of lho body of InovIodgo lhoy possoss. Sono aro
doIivorod lhrough adninislralivo officioncy (such as lochnoIogy or procoss
dosign), and olhors lhrough poIicios, nonus and inlorvonlions. Nocossary lo
dislinguish bolvoon lho foundalion HR praclicos ÷ rocruilnonl, Ioarning and
dovoIopnonl, rovards, olc ÷ and lho onorging HR praclicos such as connunica-
lions, vorI procoss and organizalion dosign, and oxoculivo Ioadorship dovoIop-
nonl.
Sircicgic pcrincr ÷ consisls of nuIlipIo dinonsions: businoss oxporl, chango agonl,
slralogic HR pIannor, InovIodgo nanagor and consuIlanl, conbining lhon lo
aIign HR syslons lo hoIp acconpIish lho organizalion's vision and nission,
hoIping nanagors lo gol lhings dono, and dissoninaling Ioarning across lho orga-
nizalion.
Icc!cr ÷ Ioading lho HR funclion, coIIaboraling vilh olhor funclions and
providing Ioadorship lo lhon, solling and onhancing lho slandards for slralogic
lhinIing and onsuring corporalo govornanco.
UIrich and BrocIbanI (2005b) oxpIainod lhal lho rovisod fornuIalion is in rosponso lo
lho changos in HR roIos lhoy havo obsorvod roconlIy. Thoy connonlod on lho inpor-
lanco of lho onpIoyoo advocalo roIo, noling lhal HR profossionaIs spond on avorago
aboul 19 por conl of lhoir lino on onpIoyoo roIalions issuos and lhal caring for,
Iisloning lo and rosponding lo onpIoyoos ronains a conlropioco of HR vorI. Thoy
nolod lhal as a profossion, HR possossos a body of InovIodgo lhal aIIovs HR poopIo
lo acl vilh insighl. FunclionaI oxporliso onabIos lhon lo croalo nonus of choico for
lhoir businoss and lhus idonlify oplions lhal aro consislonl vilh businoss noods ralhor
lhan lhoso lhal aro noroIy onos lhoy aro abIo lo provido. Tho addilionaI hoading of
´hunan capilaI dovoIopor' vas inlroducod bocauso of lho incroasod onphasis on
vioving poopIo as crilicaI assols and lo rocognizo lho significanco of HR's roIo in
dovoIoping lho vorIforco. Tho concopl of slralogic parlnor ronains broadIy lho sano
as boforo, bul lho addilionaI hoading of ´HR Ioador' has boon inlroducod lo highIighl
lho inporlanco of Ioadorship by HR spociaIisls of lhoir ovn funclion ÷ ´boforo lhoy
can dovoIop olhor Ioadors, HR profossionaIs nusl oxhibil lho Ioadorship sIiIIs lhoy
oxpocl in olhors'.
Tho 2005 UIrich and BrocIbanI nodoI focusos on lho nuIlifacolod roIo of HR
poopIo. Il sorvos lo corrocl lho inprossion lhal UIrich vas sinpIy focusing on lhon as
businoss parlnors. This has had lho unforlunalo offocl of inpIying lhal lhal vas lhoir
onIy vorlhvhiIo funclion and has Iod lo unduo onphasis on lhis aspocl of lhoir roIo,
inporlanl lhough il is, ralhor lhan a significanl sorvico doIivory roIo. Hovovor, UIrich
cannol bo bIanod for lhis. In 1998 ho gavo oquaI onphasis lo lho nood for adninislra-
livo officioncy.
CAlNlNC SLllCk1 AND CCMMl1MLN1
HR praclilionors nainIy gol rosuIls by porsuasion basod on crodibiIily and oxporliso.
As Guosl and Hoquo (1994) nolo: ´By oxorling infIuonco, HR nanagors hoIp lo shapo
lho franovorI of HR poIicy and praclico.' AIlhough Iino nanagors nay naIo lho
day-lo-day docisions, infIuoncing sIiIIs aro nocossary for HR spociaIisls. Bul lhoro is a
conslanl dangor of HR profossionaIs boing so ovorcono by lho boauly and lrulh of
lhoir brighl idoa lhal lhoy oxpocl ovoryono oIso ÷ nanagononl and onpIoyoos aIiIo ÷
lo faII for il innodialoIy. This is nol hov il is. Managononl and onpIoyoos can croalo
bIocIagos and barriors and lhoir supporl and connilnonl noods lo bo gainod, vhich
is nol aIvays oasy.
ßíoc|agc· and barrícr· ví|hín managcmcn|
Managors viII bIocI or orocl barriors lo vhal lho HR funclion boIiovos lo bo progross
if lhoy aro nol porsuadod lhal il viII bonofil bolh lho organizalion and lhonsoIvos al
an accoplabIo cosl (nonoy and lhoir lino and lroubIo).
ßíoc|agc· and barrícr· from cmpío,cc·
EnpIoyoos viII bIocI or sol up barriors lo ´progross' or innovalions if lhoy fooI lhoy
confIicl vilh lhoir ovn inlorosls. Thoy aro IiIoIy, vilh roason, lo bo cynicaI aboul
proloslalions lhal vhal is good for lho organizalion viII aIvays bo good for lhon.
Caíníng ·uppor| from |op managcmcn|
Tho supporl of lop nanagononl is achiovabIo by procossos of narIoling lho HR func-
lion and porsuasion. Boards and sonior nanagors, IiIo anyono oIso, aro noro IiIoIy lo
bo porsuadod lo laIo a courso of aclion if:
il can bo dononslralod lhal il viII nool bolh lho noods of lho organizalion and
lhoir ovn porsonaI noods,
1ho roío ol tho Hk pructìtìonor 8l
lho proposaI is basod on a porsuasivo and roaIislic businoss caso lhal spoIIs oul lho
bonofils and lho cosls and, as far as possibIo, is ¡uslifiod oilhor in addod vaIuo
lorns (io lho incono gonoralod by lho proposaI viII significanlIy oxcood lho cosl
of inpIononling il), and/or on lho basis of a rolurn on invoslnonl (io lho cosl of
lho invoslnonl, say in lraining, is ¡uslifiod by lho financiaI rolurns in such lorns
as incroasod produclivily),
lhoro is proof lhal lho innovalion has aIroady vorIod voII vilhin lho organiza-
lion (porhaps as a piIol schono) or roprosonls ´good praclico', vhich is IiIoIy lo bo
lransforabIo lo lho organizalion,
il can bo shovn lhal lho proposaI viII incroaso lho businoss's conpolilivo
odgo, for oxanpIo onIarging lho sIiII baso or nuIli-sIiIIing lo onsuro lhal il can
achiovo conpolilivo advanlago lhrough innovalion and/or roducing lino-lo-
narIol,
il can bo inpIononlod vilhoul loo nuch lroubIo, for oxanpIo nol laIing up a Iol
of nanagors' lino, or nol nooling vilh slrong opposilion fron Iino nanagors,
onpIoyoos or lrado unions (il is as voII lo chocI lho IiIoIy roaclion boforo
Iaunching a proposaI),
il viII add lo lho ropulalion of lho conpany by shoving lhal il is a ´vorId cIass'
organizalion, io vhal il doos is as good as, if nol bollor lhan, lho vorId Ioadors in
lho soclor in vhich lho businoss oporalos (a proniso lhal pubIicily viII bo
achiovod lhrough arlicIos in profossionaI ¡ournaIs, pross roIoasos and conforonco
prosonlalions, viII hoIp),
il viII onhanco lho ónpIoyor brand' of lho conpany by naIing il a ´bosl pIaco lo
vorI',
lho proposaI is briof, lo lho poinl and voII arguod ÷ il shouId laIo no noro lhan
fivo ninulos lo prosonl oraIIy and shouId bo sunnarizod in vriling on lho
provorbiaI ono sido of ono shool of papor (suppIononlary dolaiIs can bo incIudod
in appondicos).
Caíníng |hc ·uppor| and commí|mcn| of fron| íínc managcr·
This can sonolinos bo noro difficuIl lhan gaining lho supporl of lop nanagononl.
Fronl Iino nanagors can bo cynicaI or roaIislic aboul innovalion ÷ lhoy havo soon il aII
boforo and/or lhoy boIiovo il von'l vorI (sonolinos vilh good roason). Innovalions
pushod dovn fron lho lop can oasiIy faiI.
Gaining Iino nanagononl supporl roquiros providing an ansvor lo lho quoslion,
´Whal's in il for no'` in lorns of hov lho innovalion viII hoIp lhon lo achiovo bollor
rosuIls vilhoul inposing unaccoplabIo addilionaI burdons on lhon. Nov onpIoy-
nonl praclicos lhal laIo up procious lino and invoIvo paporvorI viII bo lroalod vilh
parlicuIar suspicion. Many Iino nanagors, oflon fron billor oxporionco, rosonl lho
buroaucracy lhal can surround and, indood, onguIf syslons favourod by HR poopIo,
such as lradilionaI porfornanco appraisaI schonos.
Oblaining supporl roquiros narIol rosoarch and nolvorIing ÷ golling around lo
laII lo nanagors aboul lhoir noods and losling nov idoas lo oblain roaclions. Tho ain
is lo buiId up a body of infornalion lhal viII indicalo approachos lhal aro IiIoIy lo bo
nosl accoplabIo, and lhoroforo viII nosl probabIy vorI, or al Ioasl lo suggosl aroas
vhoro parlicuIar offorls viII nood lo bo nado lo porsuado and oducalo Iino nanago-
nonl. Il is aIso usofuI lo forn ´slralogic aIIiancos' vilh infIuonliaI nanagors vho aro
onlhusiaslic aboul lho innovalion and viII nol onIy Iond il vocaI supporl bul viII aIso
co-oporalo in piIol-losling il.
On lho principIo lhal ńolhing succoods IiIo succoss', supporl for nov HR praclicos
can oflon bo achiovod by dononslraling lhal il has vorIod voII oIsovhoro in lho
organizalion.
Gaining connilnonl viII bo oasior if nanagors havo boon consuIlod and Inov
lhal lhoir opinions havo boon Iislonod lo and aclod upon. Il is ovon bollor lo invoIvo
lhon as nonbors of pro¡ocl loans or lasI forcos in dovoIoping lho nov procoss or
syslon. This is lho vay lo achiovo ovnorship and lhoroforo connilnonl.
Caíníng |hc ·uppor| and commí|mcn| of cmpío,cc·
Whon il conos lo nov onpIoynonl praclicos, onpIoyoos gonoraIIy roacl in oxaclIy
lho sano vay as nanagors: lhoy viII lond lo rosisl chango, vanling lo Inov, ´Whal's
in il for us`' Thoy aIso vanl lo Inov lho hiddon agonda ÷ vhy is lho conpany roaIIy
vanling lo inlroduco a porfornanco nanagononl procoss` WiII il sinpIy bo usod as a
noans of gaining ovidonco for discipIinary procoodings` Or is il ovon going lo
provido lho infornalion roquirod lo soIocl poopIo for rodundancy` As far as possibIo
lhis Iind of quoslion noods lo bo ansvorod in advanco.
Sounding oul onpIoyoo opinion can bo conduclod lhrough alliludo survoys or
focus groups. Tho Iallor nolhod invoIvos golling groups of poopIo logolhor lo discuss
(lo ´focus' on) various issuos and proposilions. A voII-run focus group can gonoralo
vaIid infornalion on onpIoyoos' fooIings aboul and roaclion lo an inilialivo.
EnpIoyoo connilnonl is aIso noro IiIoIy if lhoy aro Iopl voII infornod of vhal
is proposod, vhy il has boon proposod and hov il viII affocl lhon. Il viII bo
furlhor onhancod if lhoy parlicipalo in lho dovoIopnonl of lho nov onpIoynonl
praclico and if lhoy Inov lhal lhoir conlribulions havo boon voIconod and aclod
upon.
L1HlCAL CCNSlDLkA1lCNS
HR spociaIisls aro concornod vilh olhicaI slandards in lhroo vays: lhoir conducl as
profossionaIs, lho vaIuos lhal govorn lhoir bohaviour, and lho olhicaI slandards of
lhoir firns.
|rofc··íonaí conduc|
Tho CIID Codo of IrofossionaI Conducl slalos lhal:
ln tho pubíìc ìntorost und ìn tho pursuìt ol ìts ob¡octs, tho Churtorod lnstìtuto ol lorsonnoí
und Dovoíopmont ìs commìttod to tho hìghost possìbío stundurds ol prolossìonuí
conduct und compotoncy. 1o thìs ond mombors:
uro roquìrod to oxorcìso ìntogrìty, honosty, dìíìgonco und upproprìuto bohuvìour ìn uíí
thoìr busìnoss, prolossìonuí und roíutod porsonuí uctìvìtìos,
must uct vìthìn tho íuv und must not oncourugo, ussìst or uct ìn coííusìon vìth
ompíoyoos, ompíoyors or othors vho muy bo ongugod ìn uníuvluí conduct.
Vaíuc·
HR profossionaIs aro parl of nanagononl. Thoy aro nol lhoro lo acl as surrogalo
roprosonlalivos of lho inlorosls of onpIoyoos. Bul lhoro viII bo occasions vhon in lhoir
profossionaI capacily HR spociaIisls shouId spoaI oul and opposo pIans or aclions
lhal aro cIoarIy al varianco vilh lho vaIuos of lho organizalion. And lhoy shouId do
lhoir bosl lo infIuonco changos in lhoso vaIuos vhoro lhoy fooI lhoy aro nocossary.
Thoy nusl nol loIoralo in¡uslico or inoquaIily of opporlunily. If rodundancios aro
inovilabIo as a rosuIl of businoss-Iod ´sIinning dovn' or ´laIing cosls oul of lho busi-
noss' procossos, lhoy nusl onsuro lhal lho organizalion laIos vhalovor slops il can lo
niligalo dolrinonlaI offocls by, for oxanpIo, roIying prinariIy on naluraI vaslago and
voIunlary rodundancy or, if poopIo havo lo go invoIunlariIy, doing vhalovor lhoy can
lo hoIp lhon find olhor ¡obs (oulpIacononl).
HR spociaIisls nay oflon find lhonsoIvos acling vilhin a supporl funclion in a
hard-nosod, onlropronouriaI onvironnonl. Bul lhis doos nol noan lhal lhoy can
ronain unconcornod aboul dovoIoping and hoIping lo uphoId lho coro vaIuos of
lho organizalion in Iino vilh lhoir ovn vaIuos on hov poopIo shouId bo nanagod.
Thoso nay nol aIvays bo roconciIabIo, and if lhis is slrongIy lho caso, lho HR
profossionaI nay havo lo naIo a choico on vholhor ho or sho can ronain vilh lho
organizalion.
L|hícaí ·|andard· ín |hc fírm
Moro and noro conpanios aro, righlIy, dovoIoping and pubIishing vaIuo slalononls
and codos of olhics. Tho focus on such codos vas oncouragod by lho Cadbury Roporl
on corporalo govornanco, vhich in 1992 roconnondod lhal conpanios shouId adopl
ono.
An olhics codo nay incIudo lho guiding principIos lho organizalion foIIovs in
conducling ils businoss and roIaling lo ils slaIohoIdors ÷ onpIoyoos, cuslonors,
sharohoIdors (or olhor providors of financo), suppIiors, and socioly in gonoraI. Acodo
viII aIso sunnarizo lho olhicaI slandards oxpoclod of onpIoyoos. Thoso nay incIudo
confIicls of inlorosl, lho giving and rocoiving of gifls, confidonliaIily, onvironnonlaI
poIIulion, hoaIlh and safoly, oquaI opporlunilios, nanaging divorsily, soxuaI harass-
nonl, noonIighling and poIilicaI aclivily.
As suggoslod by IicIard (1995), HR praclilionors can conlribulo lo onhancing
avaronoss of olhicaI issuos by:
dopIoying profossionaI oxporliso lo dovoIop and connunicalo an olhics poIicy
and fioId lho rosponso lo il, hoIding lraining sossions lo hoIp poopIo lhinI lhrough
lho issuos and noniloring lho poIicy,
conlribuling lo lho fornalion of conpany slralogy, ospociaIIy louching on nission
and vaIuos,
solling an oxanpIo lhrough profossionaI conducl, on issuos such as fairnoss, oquaI
lroalnonl and confidonliaIily.
lkClLSSlCNALlSM lN HkM
If lho lorn is usod IoosoIy, HR spociaIisls aro ´profossionaI' bocauso lhoy dispIay
oxporliso in doing lhoir vorI. A profossionaI occupalion such as nodicino or Iav
couId, hovovor, bo dofinod as ono lhal givos nonbors of ils associalion oxcIusivo
righls lo pracliso lhoir profossion. A profossion is nol so nuch an occupalion as a
noans of conlroIIing an occupalion. Hunan rosourco nanagononl is obviousIy nol in
lhis calogory.
Tho naluro of profossionaI vorI vas bosl dofinod by lho Hayos Connilloo (1972)
as foIIovs:
\ork dono by tho prolossìonuí ìs usuuííy dìstìnguìshod by ìts roloronco to u lrumovork ol
lundumontuí concopts íìnkod vìth oxporìonco ruthor thun by ìmpromptu rouctìon to
ovonts or tho uppíìcutìon ol íuìd dovn procoduros. Such u hìgh íovoí ol dìstìnctìvo
compotonco rolíocts tho skìíluí uppíìcutìon ol spocìuíìzod oducutìon, truìnìng und oxpo-
rìonco. 1hìs shouíd bo uccompunìod by u sonso ol rosponsìbìíìty und un uccoptunco ol
rocognìzod stundurds.
A´profossion' nay bo idonlifiod on lho basis of lho foIIoving criloria:
sIiIIs basod on lhoorolicaI InovIodgo,
lho provision of lraining and oducalion,
a losl of lho conpolonco of nonbors adninislorod by a profossionaI body,
a fornaI profossionaI organizalion lhal has lho povor lo roguIalo onlry lo lho
profossion,
a profossionaI codo of conducl.
By lhoso slandards an inslilulion such as lho CIID carrios oul nosl of lho funclions of
a profossionaI body.
Anolhor approach lo lho dofinilion of a profossion is lo onphasizo lho sorvico olhic
÷ lho profossionaI is lhoro lo sorvo olhors. This, hovovor, Ioads lo confusion vhon
appIiod lo HR spociaIisls. Whon do lhoy sorvo` Tho organizalion and ils vaIuos, or
lho poopIo in lho organizalion and lhoir noods` (OrganizalionaI vaIuos and porsonaI
noods do nol nocossariIy coincido.) As Tyson and FoII (1986) havo connonlod:
ln rocont yours tho porsonnoí munugor sooms to bo oncourugod to muko tho íìno
munugor hìs tsìc) cíìont, vhìío tryìng sìmuítunoousíy to roprosont vìdor socìuí stundurds,
und to possoss u sonso ol sorvìco to ompíoyoos. 1hìs rosuíts ìn conlusìon und dìllìcuíty
lor tho porsonnoí oxocutìvo.
In lho faco of lhis difficuIly, lho quoslion has lo bo asIod, vhy bolhor` Tho ansvor
vas suggoslod by Walson (1977), vho assorlod lhal lho adoplion of a profossionaI
inago by porsonnoI nanagors is a slralogic rosponso lo lhoir foIl IacI of aulhorily.
Thoy aro in an anbiguous silualion and sonolinos fooI lhoy nood aII lho hoIp lhoy
can gol lo cIarify and, indood, slronglhon lhoir aulhorily and infIuonco.
If a profossion is dofinod rigidIy as a body of poopIo vho possoss a parlicuIar aroa
of conpolonco, vho conlroI onlry so lhal onIy nonbors of lho associalion can prac-
liso in lhal aroa, vho unoquivocaIIy adopl lho ´sorvico olhic' and vho aro rocognizod
by lhonsoIvos and olhors as boIonging lo a profossion, lhon HR praclilionors aro nol
slriclIy vorIing in a profossion. This is lho caso ovon vhon a profossionaI inslilulion
IiIo lho CIID oxisls vilh lho ob¡oclivo of acling as a profossionaI body in lho fuII sonso
of lho vord, an ain lhal il doos ils bosl lo fuIfiI.
On lho basis of lhoir rosoarch, Guosl and Horvood (1981) oxprossod lhoir doubls
aboul lho profossionaI nodoI of porsonnoI nanagononl as foIIovs:
1ho trosourch) dutu uíso hìghíìghts tho rungo ol curoor typos ìn porsonnoí munugomont.
Cìvon tho dìvorsìty ol porsonnoí roíos und orgunìzutìonuí contoxts, thìs ìs suroíy somo-
thìng to bo voícomod. lt ìs tomptìng but vrong to vìov porsonnoí munugors us homogo-
noous. 1hoìr dìlloront buckgrounds und lìoíds ol oporutìons ruìso doubts ubout tho vuíuo
ol u prolossìonuí modoí und ol uny uttompt to vìov porsonnoí probíoms us umonubío to
soíutìon through u prìmury locus on prolossìonuíìsm.
Hovovor, a broador dofinilion of profossionaIisn as lho praclico of spocific sIiIIs
basod upon a dofinod body of InovIodgo in accordanco vilh rocognizod slandards of
bohaviour vouId onlilIo lho praclico of HRM lo bo rogardod as a profossion.
Tho dobalo conlinuos, bul il is an acadonic ono. Whal nallors is lhal HR ´profos-
sionaIs' nood oxporliso and havo lo uso il rosponsibIy. In olhor vords, lhoy shouId acl
profossionaIIy bul do nol havo lo bo nonbors of a profossionaI associalion lo do so.
Such associalions, hovovor, havo an inporlanl parl lo pIay in solling and inproving
profossionaI slandards.
If lhis dofinilion is accoplod, lhon lhoso vho do pracliso spocific HRM sIiIIs basod
upon a dofinod body of InovIodgo in accordanco vilh rocognizod slandards of
bohaviour can bo rogardod as nonbors of a profossion.
AMßlCLl1lLS lN 1HL kCLL Cl Hk lkAC1l1lCNLkS
Tho aclivilios and roIos of HR spociaIisls and lho donands nado upon lhon as
doscribod abovo appoar lo bo quilo cIoar cul bul, in ThurIoy's (1981) vords, HR prac-
lilionors can bo ´spociaIisls in anbiguily'. This nay ariso bocauso lhoir roIo is iII-
dofinod (lhoy aro unsuro of vhoro lhoy sland), lhoir slalus is nol fuIIy rocognizod, or
lop nanagononl and Iino nanagors havo oquivocaI viovs aboul lhoir vaIuo lo lho
organizalion.
Anbiguily in lho roIo of HR poopIo can rosuIl in confusion bolvoon idoaIs and
roaIily. Tyson and FoII (1986) soo a conlrasl bolvoon lho idooIogios and acluaI roaIilios
of organizalionaI Iifo lo vhich HR nanagors, ás organizalion non or vonon', havo
lo conforn.
This anbiguily is rofIoclod in lho connonls lhal havo boon nado aboul lho roIo of
lho HR funclion. For oxanpIo, MacIay and Torringlon (1986) suggoslod lhal:
ÍorsonnoI nanagononl is novor idonlifiod vilh nanagononl inlorosls, as il boconos
inoffoclivo vhon nol abIo lo undorsland and arlicuIalo lho aspiralions of lho vorI-
forco.' In conpIolo conlrasl, Tyson and FoII (1986) boIiovo lhal:
Cíussìcuí porsonnoí munugomont hus not boon gruntod u posìtìon ìn docìsìon-mukìng
cìrcíos bocuuso ìt hus lroquontíy not ournod ono. lt hus not boon concornod vìth tho
totuíìty ol tho orgunìzutìon but olton vìth ìssuos thut huvo not oníy boon purochìuí but
osotorìc to boot.
Tho dobalo on HRM vorsus porsonnoI nanagononl has boon gonoralod by, bul has
aIso conlribulod lo lhis anbiguily. HRM is nanagononl-orionlod, and soos poopIo as
a Ioy rosourco lo bo usod lo furlhor lho ob¡oclivos of lho businoss. TradilionaI
porsonnoI nanagononl, hovovor, has londod lo bo noro poopIo-orionlod, laIing lho
viov lhal if lhoir noods aro salisfiod, lho organizalion as voII as ils nonbors viII
bonofil. HR profossionaIs can find lhonsoIvos boing puIIod in bolh diroclions. Il doos
nol naIo lhoir Iifo any oasior.
CCNlLlC1 lN 1HL Hk CCN1klßL1lCN
Ono of lho quoslions HR praclilionors sonolinos havo lo asI lhonsoIvos is, ´Who is
lho cIionl ÷ lho conpany or lho onpIoyoo`' HR profossionaIs nay havo lo vaII a fino
Iino bolvoon sorving lho conpany lhal pays lhoir saIary and sorving individuaI
onpIoyoos. Thoy nay bo invoIvod in counsoIIing onpIoyoos ovor vorI probIons.
This can onIy bo carriod oul succossfuIIy if lho onpIoyoo lrusls lho HR praclilionor
lo nainlain confidonliaIily. Bul sonolhing nighl bo rovoaIod vhich is of inlorosl lo
nanagononl and lhal pIacos lho counsoIIor in a diIonna ÷ lo bolray or nol lo
bolray lho lrusl` Thoro is no pal ansvor lo lhis quoslion, bul lho oxislonco of a codo of
profossionaI conducl, a sol of vaIuos and a conpany olhicaI codo can provido guid-
anco.
HR spociaIisls, as ThurIoy (1981) pul il, oflon ´vorI againsl lho grain'. Thoir vaIuos
nay bo difforonl fron lhoso of Iino nanagors and lhis is a polonliaI causo of confIicl.
Bul confIicl is inovilabIo in organizalions lhal aro pIuraIislic sociolios, lho nonbors of
vhich havo difforonl franos of roforonco and inlorosls, parlicuIarIy soIf-inlorosl.
Managononl nay havo lhoir ovn priorilios: Íncroaso sharohoIdor vaIuo', ´Koop lho
Cily happy', Ínnovalo', ´Gol lho vorI dono'. EnpIoyoos nighl havo a conpIoloIy
difforonl sol: Íay no voII and oquilabIy', ´Givo no socurily', Írovido good vorIing
condilions', ´Troal no fairIy'. HR spociaIisls, as nolod abovo, nay find lhonsoIvos
sonovhoro in lho niddIo.
ConfIicls in lho HR conlribulion can ariso in lho foIIoving vays:
A clcs| cj tclucs ÷ Iino nanagors nay sinpIy rogard lhoir vorIors as faclors of
produclion lo bo usod, oxpIoilod and disponsod vilh in accordanco vilh organi-
zalionaI inporalivos.
Dijjcrcni pricriiics ÷ nanagononl's priorily nay bo lo add vaIuo ÷ naIo noro oul
of Ioss ÷ and if lhis invoIvos golling rid of poopIo, lhal's loo bad. HR poopIo nay
rocognizo lho nood lo add vaIuo bul nol al lho oxponso of onpIoyoos.
lrcc!cm tcrsus ccnircl ÷ Iino nanagors nay vanl lho froodon lo gol on vilh lhings
lhoir ovn vay, inlorproling conpany poIicios lo nool lhoir noods, lho lhrusl for
dovoIulion has oncouragod such fooIings. Bul HR spociaIisls viII bo concornod
aboul lho achiovononl of a consislonl and oquilabIo approach lo nanaging
poopIo and inpIononling HR poIicios. Thoy viII aIso bo concornod vilh lho
allainnonl of a propor dogroo of conpIianco lo onpIoynonl and hoaIlh and
safoly Iav. Thoy nay bo givon lho rosponsibiIily for oxorcising conlroI, and
confIicl is IiIoIy if lhoy uso lhis aulhorily loo rigidIy.
Dispuics ÷ if unions aro rocognizod, HR spociaIisls nay bo invoIvod in confIicl
during lho procoss of rosoIulion. Evon vhon lhoro aro no unions, lhoro nay bo
confIicl vilh individuaIs or groups of onpIoyoos aboul lho sollIononl of griov-
ancos.
As FoIIoll (1924) vrolo, lhoro is lho possibiIily lhal confIicl can bo croalivo if an inlo-
gralivo approach is usod lo sollIo il. This noans cIarifying priorilios, poIicios and
roIos, using agrood procoduros lo doaI vilh griovancos and dispulos, bringing diffor-
oncos of inlorprolalion oul inlo lho opon and achioving consonsus lhrough a soIulion
lhal rocognizos lho inlorosls of bolh parlios ÷ a vin-vin procoss. RosoIving confIicl by
lho shoor oxorciso of povor (vin-Ioso) viII onIy Ioad lo furlhor confIicl. RosoIving
confIicl by conproniso nay Ioad lo bolh parlios boing dissalisfiod (Ioso-Ioso).
1HL CCMlL1LNClLS kLÇLlkLD ßY Hk lkClLSSlCNALS
Aconpoloncy franovorI for HR profossionaIs is sol oul in TabIo 4.1.
An aIlornalivo fornuIalion, as shovn in TabIo 4.2, oslabIishod by rosoarch conduc-
lod al lho Univorsily of Michigan Businoss SchooI (BrocIbanI ci cl, 1999) shovs lho
Ioy conpoloncy aroas (donains) and lhoir conpononls aro sol oul in TabIo 4.2.
Thc Cí|D profc··íonaí ·|andard·
Tho CIID has producod lho foIIoving Iisl of conpoloncios roquirod by ils profos-
sionaI nonbors:
Pcrscncl !ritc cn! cjjcciitcncss. Tho oxislonco of a posilivo ćan do' nonlaIily,
anxious lo find vays round obslacIos and viIIing lo oxpIoil aII lho avaiIabIo
rosourcos lo acconpIish ob¡oclivos.
ßusincss and Lndorstunds: tl) tho busìnoss onvìronmont, tho compotìtìvo prossuros
cuIturaI awarcncss tho orgunìzutìon lucos und tho drìvors ol hìgh porlormunco, t2) tho
busìnoss' koy uctìvìtìos und procossos und hov thoso ulloct busìnoss
strutogìos, t3) tho cuíturo tcoro vuíuos und norms) ol tho busìnoss, t4) hov
Hk poíìcìos und pructìcos ìmpuct on busìnoss porlormunco, und puts
thìs to good uso.
Stratcgic capabiIity tl) Sooks ìnvoívomont ìn busìnoss strutogy lormuíutìon und contrìbutos
to tho dovoíopmont ol tho strutogy, t2) contrìbutos to tho dovoíopmont
lor tho busìnoss ol u cíour vìsìon und u sot ol ìntogrutod vuíuos, t3)
dovoíops und ìmpíomonts cohoront Hk strutogìos vhìch uro uíìgnod to
tho busìnoss strutogy und ìntogrutod vìth ono unothor, t4) undorstunds
tho ìmportunco ol humun cupìtuí mousuromont, ìntroducos
mousuromont systoms und onsuros thut good uso ìs mudo ol thom.
OrganizationaI tl) Contrìbutos to tho unuíysìs und dìugnosìs ol poopío ìssuos und
cffcctivcncss proposos pructìcuí soíutìons, t2) hoíps to dovoíop rosourco cupubìíìty by
onsurìng thut tho busìnoss hus tho skìííod, commìttod und ongugod
vorklorco ìt noods, t3) hoíps to dovoíop procoss cupubìíìty by ìnlíuoncìng
tho dosìgn ol vork systoms to muko tho bost uso ol poopío, t4) contrìbutos
to tho dovoíopmont ol knovíodgo munugomont procossos.
lntcrnaI tl) Currìos out tho unuíysìs und dìugnosìs ol poopío ìssuos und proposos
consuItancy pructìcuí soíutìons, t2) udopts ìntorvontìonìst styío to moot cíìont noods,
ucts us u cutuíyst, lucìíìtutor und oxport us roquìrod, tusos procoss
consuítuncy upprouchos to rosoívo poopío probíoms, t4) couchos cíìonts
to douí vìth thoìr ovn probíoms, trunslors skìíís.
Scrvicc dcIivcry tl) Antìcìputos roquìromonts und sots up und oporutos upproprìuto
sorvìcos, t2) provìdos ollìcìont und cost-olloctìvo sorvìcos ìn ouch Hk
urou, t3) rosponds promptíy und ollìcìontíy to roquosts lor Hk sorvìcos,
hoíp und udvìco, t4) promotos tho ompovormont ol íìno munugors to
muko Hk docìsìons but provìdos guìdunco us roquìrod.
Continuous tl) Contìnuuííy dovoíops prolossìonuí knovíodgo und skìíís, t2)
profcssionaI bonchmurks good Hk pructìco, t3) koops ìn touch vìth nov Hk
dcvcIopmcnt concopts, pructìcos und tochnìquos, tkoops up-to-duto vìth Hk rosourch
und ìts pructìcuí ìmpíìcutìons.
TabIc 4.1 Conpoloncy franovorI for HR profossionaIs
Pccplc mcncgcmcni cn! lcc!crs|ip. Tho nolivalion of olhors (vholhor subordinalos,
soniors or pro¡ocl loan nonbors) lovards lho achiovononl of sharod goaIs, nol
lhrough lho appIicalion of fornaI aulhorily bul ralhor by porsonaI roIo nodoIIing,
lho oslabIishnonl of profossionaI crodibiIily, and lho croalion of rociprocaI lrusl.
Prcjcssicncl ccmpcicncc. Iossossion of lho profossionaI sIiIIs and lochnicaI capabiI-
ilios associalod vilh succossfuI achiovononl in porsonnoI and dovoIopnonl.
A!!ing tcluc i|rcug| pccplc. Adosiro nol onIy lo conconlralo on lasIs, bul ralhor lo
soIocl noaningfuI oulpuls vhich viII produco addod-vaIuo oulconos for lho
organizalion, or oIininalo/roduco lho oxislonco of porfornanco inhibilors, vhiIsl
sinuIlanoousIy conpIying vilh aII IogaI and olhicaI considoralions.
Ccniinuing lccrning. Connilnonl lo conlinuous inprovononl and chango by lho
appIicalion of soIf-nanagod Ioarning lochniquos, suppIononlod vhoro appro-
prialo by doIiboralo pIannod oxposuro lo oxlornaI Ioarning sourcos (nonloring,
coaching, olc).
1|in|ing cn! cpplic! rcscurccjulncss. AppIicalion of a syslonalic approach lo silua-
lionaI anaIysis, dovoIopnonl of convincing, businoss-focusod aclion pIans, and
1ho roío ol tho Hk pructìtìonor 9l
Compctcncy domain Componcnts
l lorsonuí crodìbìíìty Lìvo tho lìrm's vuíuos, muìntuìn roíutìonshìps loundod on trust,
uct vìth un úttìtudo' tu poìnt ol vìov ubout hov tho busìnoss cun
vìn, buckìng up opìnìon vìth ovìdonco).
2 Abìíìty to munugo Drìvo chungo: ubìíìty to dìugnoso probíoms, buìíd roíutìonshìps
chungo vìth cíìonts, urtìcuíuto u vìsìon, sot u íoudorshìp ugondu, soívo
probíoms, und ìmpíomont gouís.
3 Abìíìty to munugo Act us ´koopors ol tho cuíturo', ìdontìly tho cuíturo roquìrod to
cuíturo moot tho lìrm's busìnoss strutogy, lrumos cuíturo ìn u vuy thut
oxcìtos ompíoyoos, trunsíutos dosìrod cuíturo ìnto spocìlìc
bohuvìours, oncourugos oxocutìvos to bohuvo consìstontíy vìth
tho dosìrod cuíturo.
4 Doíìvory ol humun Lxport ìn spocìuíìty, ubío to doíìvor stuto-ol-tho-urt ìnnovutìvo
rosourco pructìcos Hk pructìcos ìn such urous us rocruìtmont, ompíoyoo dovoíopmont,
componsutìon und communìcutìon.
5 Lndorstundìng ol tho Strutogy, orgunìzutìon, compotìtors, lìnunco, murkotìng, suíos,
busìnoss oporutìons und l1.
TabIc 4.2 Koy conpoloncy aroas (Scurcc: BrocIbanI ci cl, 1999)
(vhoro approprialo) lho dopIoynonl of inluilivo/croalivo lhinIing lo gonoralo
innovalivo soIulions and proaclivoIy soizo opporlunilios.
Ćusicmcr´ jccus. Concorn for lho porcoplions of porsonnoI's cuslonors, incIuding
(principaIIy) lho conlraI dirocloralo of lho organizalion, a viIIingnoss lo soIicil
and acl upon ćuslonor' foodbacI as ono of lho foundalions for porfornanco
inprovononl.
Sircicgic ccpc|iliiq. Tho capacily lo croalo an achiovabIo vision for lho fuluro, lo
forosoo Iongor-lorn dovoIopnonls, lo onvisago oplions (and lhoir probabIo conso-
quoncos), lo soIocl sound coursos of aclion, lo riso abovo lho day-lo-day dolaiI, lo
chaIIongo lho sicius ¡uc.
lnjlucncing cn! inicrpcrscncl s|ills. Tho abiIily lo lransnil infornalion lo olhors,
ospociaIIy in vrillon (roporl) forn, bolh porsuasivoIy and cogonlIy, dispIay of
Iisloning, conprohonsion and undorslanding sIiIIs, pIus sonsilivily lo lho
onolionaI, alliludinaI and poIilicaI aspocls of corporalo Iifo.
An inporlanl conpoloncy lhal lho CIID has onillod fron lhis Iisl is sorvico doIivory,
io lho capacily lo provido offoclivo IovoIs of sorvico lhal nool lho noods of inlornaI
cuslonors. UIlinaloIy, lhis is vhal HR profossionaIs aro lhoro lo do, boaring in nind
lhal lho sorvicos lhoy provido viII bo concornod vilh lho dovoIopnonl and inpIo-
nonlalion of vaIuo-adding and inlogralod HR slralogios as voII as oporalionaI
sorvicos.
HR profc··íonaí· a· ´|hín|íng pcrformcr·'
Tho CIID has slalod lhal:
Aíí porsonnoí und dovoíopmont spocìuíìsts must bo thìnkìng porlormors. 1hut ìs, thoìr
contruí tusk ìs to bo knovíodgoubío und compotont ìn thoìr vurìous lìoíds und to bo ubío
to movo boyond compíìunco to provìdo u crìtìquo ol orgunìzutìonuí poíìcìos und proco-
duros und to udvìso on hov orgunìzutìons shouíd dovoíop ìn tho luturo.
This concopl can bo inlorprolod as noaning lhal HR profossionaIs havo lo lhinI caro-
fuIIy aboul vhal lhoy aro doing in lho conloxl of lhoir organizalion and vilhin lho
franovorI of a rocognizod body of InovIodgo, and lhoy havo lo porforn offoclivoIy
in lho sonso of doIivoring advico, guidanco and sorvicos vhich viII hoIp lho organiza-
lion lo achiovo ils slralogic goaIs. Loggo (1995) nado a siniIar poinl vhon sho
roforrod lo HRM as a procoss of ´lhinIing pragnalisn'.
koío ol tho lront-íìno munugor
Fronl-Iino nanagors aro cruciaI lo lho succoss of HR poIicios and praclicos. This
chaplor slarls vilh an anaIysis of lhoir roIo gonoraIIy and lhoir poopIo nanagononl
rosponsibiIilios parlicuIarIy. Il conlinuos vilh an oxaninalion of lho rospoclivo roIos
of HR and Iino nanagononl and a discussion of lho Iino nanagor's roIo in inpIo-
nonling HR. Tho chaplor concIudos vilh suggoslions on hov lo inprovo fronl-Iino
nanagors as poopIo nanagors.
1HL ßASlC kCLL
Fronl-Iino nanagors as dofinod by Hulchinson and IurcoII (2003) aro nanagors vho
aro rosponsibIo for a vorI group lo a highor IovoI of nanagononl hiorarchy, and aro
pIacod in lho Iovor Iayors of lho nanagononl hiorarchy, nornaIIy al lho firsl IovoI.
Thoy lond lo havo onpIoyoos roporling lo lhon vho lhonsoIvos do nol havo any
nanagononl or suporvisory rosponsibiIily and aro rosponsibIo for lho day-lo-day
running of lhoir vorI ralhor lhan slralogic nallors. Tho roIos of such nanagors
lypicaIIy incIudo a conbinalion of lho foIIoving aclivilios:
poopIo nanagononl,
nanaging oporalionaI cosls,

providing lochnicaI oxporliso,
organizing, such as pIanning vorI aIIocalion and rolas,
noniloring vorI procossos,
chocIing quaIily,
doaIing vilh cuslonors/cIionls,
noasuring oporalionaI porfornanco.
Hulchinson and IurcoII nolod lhal in aII lho 12 organizalions in vhich lhoy conduc-
lod lhoir rosoarch, lho nosl connon poopIo nanagononl aclivily handIod by fronl-
Iino nanagors vas absonco nanagononl. This couId incIudo nol ¡usl noniloring
absonco and Ialonoss bul aIso phoning (and ovon visiling) absonl slaff al hono,
conducling bacI-lo-vorI inlorviovs, counsoIIing slaff and conducling discipIinary
hoarings. Olhor poopIo nanagononl aclivilios voro coaching and dovoIop-
nonl, porfornanco appraisaI, invoIvononl and connunicalion (lhus providing a
vilaI IinI bolvoon loan nonbors and noro sonior nanagors), and discipIino and
griovancos. In nany organizalions, rocruilnonl and soIoclion vas aIso carriod oul
by Iino nanagors, oflon in con¡unclion vilh HR. Thus in aII lhoso organizalions fronl-
Iino nanagors voro carrying oul aclivilios lhal lradilionaIIy had boon lho broad
and bullor of porsonnoI or HR doparlnonls. Thoso poopIo-nanagononl dulios
voro Iargor and onconpassod noro rosponsibiIilios lhan lho lradilionaI suporvisory
roIo.
1HL LlNL MANACLk AND lLClLL MANACLMLN1
Tho CIID rosoarch on onpIoyoo voII-boing and lho psychoIogicaI conlracl (Guosl
and Convay, 2005) oslabIishod lhal loo nany Iino nanagors aro faiIing lo nolivalo
and inprovo lho porfornanco of lho poopIo lhoy nanago. Undor haIf of rospondonls
lo lho CIID survoy roporlod lhal lhoy voro roguIarIy nolivalod by lhoir Iino
nanagor, onIy 45 por conl voro happy vilh lho IovoI of foodbacI lhoy rocoivod and
¡usl 37 por conl said lhal lhoir nanagor hoIpod lhon lo inprovo lhoir porfornanco.
This suggosls lhal lho organizalions concornod voro faiIing lo gol nanagors lo undor-
sland lhoir roIo in nolivaling poopIo and voro aIso faiIing lo nanago porfornanco
as offoclivoIy as lhoy nighl. As lho roporl onphasizos, Óno of lho biggosl chaI-
Iongos for HR is lo supporl Iino nanagors in nanaging and dovoIoping lhoir poopIo
and lhis noans lhal lho rospoclivo roIos of Iino and HR nanagors nood lo bo undor-
slood.'
1HL kLSlLC1lVL kCLLS Cl Hk AND LlNL
MANACLMLN1
Il has boon lho accoplod lradilion of HR nanagononl lhal HR spociaIisls aro lhoro lo
provido supporl and sorvicos lo Iino nanagors, nol lo usurp lho Iallor's roIo of
´golling lhings dono lhrough poopIo' ÷ lhoir rosponsibiIily for nanaging lhoir ovn
HR affairs. In praclico, lho HR funclion has froquonlIy had lho roIo of onsuring lhal
HR poIicios aro inpIononlod consislonlIy lhroughoul lho organizalion, as voII as lho
noro roconl onorous rosponsibiIily for onsuring lhal bolh lho Iollor and lho spiril of
onpIoynonl Iav aro inpIononlod consislonlIy. Tho Iallor rosponsibiIily has oflon
boon soon as a procoss of onsuring lhal lho organizalion doos nol gol invoIvod in
lodious, lino-vasling and oflon oxponsivo onpIoynonl lribunaI procoodings.
Carrying oul lhis roIo has oflon Iod lo lho HR funclion ´poIicing' Iino nanagononl,
vhich can bo a causo of lonsion and anbiguily. To avoid lhis, HR spociaIisls nay havo
lo adopl a roasonabIy Iighl louch: providing advico ralhor lhan issuing dicla, oxcopl
vhon a nanagor is cIoarIy conlravoning lho Iav or vhon his or hor aclions aro IiIoIy
lo Ioad lo an avoidabIo dispulo or an onpIoynonl lribunaI caso lhal lho organizalion
viII probabIy Ioso.
Il has aIso froquonlIy boon lho caso lhal, in spilo of paying Iip-sorvico lo lho prin-
cipIo lhal Íino nanagors nusl nanago', HR doparlnonls havo usurpod lho Iino
nanagors' lruo roIo of boing invoIvod in Ioy docisions concorning lho rocruilnonl,
dovoIopnonl and ronunoralion of lhoir poopIo, lhus dininishing lho nanagors'
capacily lo nanago lhoir Ioy rosourco offoclivoIy. This silualion has arison nosl
froquonlIy in Iargo buroaucralic organizalions and/or lhoso vilh a povorfuI conlraI-
izod HR funclion. Il sliII oxisls in sono quarlors, bul as doconlraIizalion and dovoIu-
lion incroaso and organizalions aro finding lhal lhoy aro having lo oporalo noro
fIoxibIy, il is boconing Ioss connon.
Il is nocossary lo roconciIo vhal nighl bo caIIod lho ´funclionaI conlroI' aspocls of
an HR spociaIisl's roIo (achioving lho consislonl appIicalion of poIicios and acling as
lho guardian of lho organizalion's vaIuos concorning poopIo) and lho roIo of
providing sorvicos, supporl and, as nocossary, guidanco lo nanagors, vilhoul issuing
connands or roIioving lhon of lhoir rosponsibiIilios. Hovovor, lho dislinclion
bolvoon giving advico and loIIing poopIo vhal lo do, or bolvoon providing hoIp and
laIing ovor can bo bIurrod, and lho roIalionship is ono lhal has lo bo dovoIopod and
nurlurod vilh groal caro. Tho nosl approprialo Iino for HR spociaIisls lo laIo is lhal
of onphasizing lhal lhoy aro lhoro lo hoIp Iino nanagors achiovo lhoir ob¡oclivos
lhrough lhoir poopIo, nol lo do lhoir ¡ob for lhon.
In praclico, hovovor, sono Iino nanagors nay bo onIy loo gIad lo Iol lho HR
doparlnonl do ils poopIo nanagononl ¡ob for lhon, ospociaIIy lho Ioss pIoasanl
koío ol tho lront-íìno munugor 95
aspocls IiIo handIing discipIino and griovanco probIons. AdoIicalo baIanco has lhoro-
foro lo bo achiovod bolvoon providing hoIp and advico vhon il is cIoarIy noodod and
croaling a ´dopondoncy cuIluro' lhal discouragos nanagors fron lhinIing and acling
for lhonsoIvos on poopIo nallors for vhich lhoy aro rosponsibIo. Managors viII nol
Ioarn aboul doaIing vilh poopIo if lhoy aro ovor-dopondonl on HR spociaIisls. Tho
Iallor lhoroforo havo lo sland off sonolinos and say, in offocl, ´Thal's your probIon.'
Hov HR and |hc íínc vor| |ogc|hcr
Rosoarch inlo HR nanagononl and lho Iino conduclod by lho IID (Hulchinson and
Wood, 1995) producod lho foIIoving findings:
Mosl organizalions roporlod a lrond lovards groalor Iino nanagononl rosponsi-
biIily for HR nanagononl vilhoul il causing any significanl lonsion bolvoon HR
and lho Iino.
DovoIulion offorod posilivo opporlunilios for lho HR funclion lo bocono
invoIvod in slralogic, proaclivo and inlornaI consuIlancy roIos bocauso lhoy voro
Ioss invoIvod in day-lo-day oporalionaI HR aclivilios.
Bolh HR and Iino nanagononl voro invoIvod in oporalionaI HR aclivilios. Lino
nanagors voro noro hoaviIy invoIvod in rocruilnonl, soIoclion and lraining doci-
sions and in handIing discipIino issuos and griovancos. HR voro sliII IargoIy
rosponsibIo for such nallors as anaIysing lraining noods, running inlornaI coursos
and pay and bonofils.
Thoro is an undorIying concorn lhal Iino nanagors aro nol sufficionlIy conpolonl
lo carry oul lhoir nov roIos. This nay bo for a nunbor of roasons incIuding IacI of
lraining, prossuros of vorI, bocauso nanagors havo boon pronolod for lhoir loch-
nicaI ralhor lhan nanagoriaI sIiIIs, or bocauso lhoy aro usod lo roforring corlain
issuos lo lho HR doparlnonl.
Sono HR spociaIisls aIso havo difficuIly in adopling lhoir nov roIos bocauso lhoy
do nol havo lho righl sIiIIs (such as an undorslanding of lho businoss) or bocauso
lhoy soo dovoIulion as a lhroal lo lhoir ovn ¡ob socurily.
Olhor probIons ovor dovoIulion incIudo uncorlainly on lho parl of Iino nanagors
aboul lho roIo of lho HR funclion, IacI of connilnonl by Iino nanagors lo
porforning lhoir nov roIos, and achioving lho righl baIanco bolvoon providing
Iino nanagors vilh as nuch froodon as possibIo and lho nood lo rolain coro
conlroIs and diroclion.
Tho concIusions roachod by lho rosoarchors voro lhal:
ll íìno munugors uro to tuko un olloctìvo groutor rosponsìbìíìty lor Hk munugomont uctìv-
ìtìos thon, lrom tho outsot, tho ruíos und rosponsìbìíìtìos ol porsonnoí und íìno munugors
must bo cíouríy dolìnod und undorstood. Support ìs noodod lrom tho porsonnoí dopurt-
mont ìn torms ol provìdìng u procoduruí lrumovork, udvìco und guìdunco on uíí
porsonnoí munugomont muttors, und ìn torms ol truìnìng íìno munugors so thoy huvo tho
upproprìuto skìíís und knovíodgo to curry out thoìr nov dutìos.
Tho rosoarch conduclod by Hopo-HaiIoy   (1998) in oighl UK-basod organizalions
rovoaIod lhal aII of lhon voro shifling rosponsibiIily for poopIo nanagononl dovn
lho Iino. In praclico, lhis oflon noanl lhal rosponsibiIily for docision-naIing on HR
issuos had boon dovoIvod lo Iino nanagors, bul lhal lho HR funclion conlinuod lo bo
rosponsibIo for oporalionaI funclions such as rocruilnonl and pay syslons. As lhoy
connonlod: ´Thoro soonod lo bo IillIo indicalion lhal lhis novo had roducod in any
vay lho IovoI of nocossary buroaucracy associalod vilh lho inpIononlalion of
porsonnoI poIicios and procoduros.' Hovovor, lhoy nolod lhal ´porsonnoI vas no
Iongor soon as a ruIo naIor or onforcor, bul il vas sliII rogardod ÷ in parl ÷ as an
adninislralivo funclion'. Wilh roforonco lo lho aclivilios of lho HR funclions in lhoso
organizalions, lho rosoarch oslabIishod lhal lhoro vas ńoro onphasis on achioving
bohaviouraI chango lhrough a noro ńuls and boIls¨ syslons approach ralhor lhan
Iargo scaIo organizalionaI dovoIopnonl aclivilios'.
1HL LlNL MANACLk'S kCLL lN lMlLLMLN1lNC Hk
lCLlClLS
HR can inilialo nov poIicios and praclicos bul il is lho Iino lhal has lho nain rosponsi-
biIily for inpIononling lhon. In olhor vords, ´HR proposos bul lho Iino disposos.' If
Iino nanagors aro nol disposod favourabIy lovards vhal HR vanls lhon lo do lhoy
von'l do il, or if conpoIIod lo, lhoy viII bo haIf-hoarlod aboul il. As poinlod oul by
IurcoII   (2003), high IovoIs of organizalionaI porfornanco aro nol achiovod sinpIy
by having a rango of voII-concoivod HR poIicios and praclicos in pIaco. Whal naIos
lho difforonco is hov lhoso poIicios and praclicos aro inpIononlod. Thal is vhoro lho
roIo of Iino nanagors in poopIo nanagononl is cruciaI: ´Tho vay Iino nanagors
inpIononl and onacl poIicios, shov Ioadorship in doaIing vilh onpIoyoos and in
oxorcising conlroI cono lhrough as a na¡or issuo.' IurcoII   nolod lhal doaIing vilh
poopIo is porhaps lho aspocl of lhoir vorI in vhich Iino nanagors can oxorciso lho
groalosl anounl of discrolion. If lhoy uso lhoir discrolion nol lo pul HR's idoas inlo
praclico, lho rosuIl is lhal lho rholoric is unIiIoIy lo bo convorlod inlo roaIily.
Iorfornanco nanagononl schonos oflon faiI bocauso of lho roIuclanco of nanagors
koío ol tho lront-íìno munugor 97
lo carry oul roviovs. Il is, as IurcoII   poinl oul, Iino nanagors vho bring HR poIi-
cios lo Iifo.
A furlhor faclor affocling lho roIo of Iino nanagononl is lhoir abiIily lo do lho HR
lasIs assignod lo lhon. IoopIo-conlrod aclivilios such as dofining roIos, inlorvioving,
rovioving porfornanco, providing foodbacI, coaching and idonlifying Ioarning and
dovoIopnonl noods aII roquiro spociaI sIiIIs. Sono nanagors havo lhon, nany don'l.
Iorfornanco-roIalod pay schonos sonolinos faiI bocauso of unlrainod Iino nanagors.
Furlhor rosoarch and anaIysis al Balh Univorsily (Hulchinson and IurcoII, 2003)
confirnod lhal: ´Tho roIo of Iino nanagors in bringing poIicy lo Iifo and in Ioading
vas ono of lho nosl inporlanl of aII faclors in oxpIaining lho difforonco bolvoon
succoss and nodiocrily in poopIo nanagononl.'
HC\ 1C lMlkCVL lkCN1-LlNL MANACLkS AS lLClLL
MANACLkS
Tho foIIoving suggoslions voro nado by Hulchinson and IurcoII (2003) on hov lo
inprovo lho quaIily of fronl-Iino nanagors in poopIo nanagononl:
Fronl-Iino nanagors nood lino lo carry oul lhoir poopIo nanagononl dulios,
vhich aro oflon suporsodod by olhor nanagononl dulios.
Thoy nood lo bo carofuIIy soIoclod vilh nuch noro allonlion boing paid lo lho
bohaviouraI conpoloncios roquirod.
Thoy nood lho supporl of slrong organizalionaI vaIuos concorning Ioadorship and
poopIo nanagononl.
Thoy nood a good vorIing roIalionship vilh lhoir ovn nanagors.
Thoy nood lo rocoivo sufficionl sIiIIs lraining lo onabIo lhon lo porforn lhoir
poopIo nanagononl aclivilios, such as porfornanco nanagononl.
lntornutìonuí HkM
lN1LkNA1lCNAL HkM DLllNLD
InlornalionaI hunan rosourco nanagononl is lho procoss of onpIoying, dovoIoping
and rovarding poopIo in inlornalionaI or gIobaI organizalions. Il invoIvos lho vorId-
vido nanagononl of poopIo, nol ¡usl lho nanagononl of oxpalrialos.
An inlornalionaI firn is ono in vhich oporalions laIo pIaco in subsidiarios ovor-
soas, vhich roIy on lho businoss oxporliso or nanufacluring capacily of lho paronl
conpany. InlornalionaI firns nay bo highIy conlraIizod vilh lighl conlroIs. A nuIli-
nalionaI firn is ono in vhich a nunbor of businossos in difforonl counlrios aro
nanagod as a vhoIo fron lho conlro. Tho dogroo of aulonony lhoy havo viII vary.
GIobaI firns offor producls or sorvicos lhal aro ralionaIizod and slandardizod lo
onabIo produclion or provision lo bo carriod oul IocaIIy in a cosl-officionl vay. Thoir
subsidiarios aro nol sub¡ocl lo rigid conlroI oxcopl ovor lho quaIily and prosonlalion
of lho producl or sorvico. Thoy roIy on lho lochnicaI Inov-hov of lho paronl
conpany, bul carry oul lhoir ovn nanufacluring, sorvico doIivory or dislribulion
aclivilios.
lSSLLS lN lN1LkNA1lCNAL HkM
BarlIoll and GoshaI (1991) arguo lhal lho nain issuo for nuIlinalionaI conpanios is

lho nood lo nanago lho chaIIongos of gIobaI officioncy and nuIlinalionaI fIoxibiIily ÷
´lho abiIily of an organizalion lo nanago lho risIs and oxpIoil lho opporlunilios lhal
ariso fron lho divorsily and voIaliIily of lho gIobaI onvironnonl'. Tho diIonna facing
aII nuIlinalionaI corporalions is lhal of achioving a baIanco bolvoon inlornalionaI
consisloncy and IocaI aulonony. Lauronl (1986) connonlod lhal:
ln ordor to buìíd, muìntuìn und dovoíop tho corporuto ìdontìty, muítìnutìonuí orgunìzu-
tìons nood to strìvo lor consìstoncy ìn thoìr vuys ol munugìng poopío on u vorídvìdo
busìs. Yot, und ìn ordor to bo olloctìvo íocuííy, thoy uíso nood to udupt thoso vuys to tho
spocìlìc cuíturuí roquìromonts ol dìlloront socìotìos. \hìío tho gíobuí nuturo ol busìnoss
muy cuíí lor ìncrousod consìstoncy, tho vurìoty ol cuíturuí onvìronmonts muy bo cuííìng
lor dìllorontìutìon.
InlornalionaI HRM invoIvos a nunbor of issuos nol prosonl vhon lho aclivilios of lho
firn aro confinod lo ono counlry. Thoso issuos conpriso lho varioly of inlornalionaI
organizalionaI nodoIs lhal oxisl, lho oxlonl lo vhich HRM poIicy and praclico shouId
vary in difforonl counlrios (convorgonco or divorgonco), lho probIons of nanaging in
difforonl cuIluros and onvironnonls, and lho approachos usod lo soIocl, dopIoy,
dovoIop and rovard oxpalrialos vho couId bo nalionaIs of lho paronl conpany or
´lhird-counlry nalionaIs' (TCNs) ÷ nalionaIs of counlrios olhor lhan lho paronl
conpany vho vorI abroad in subsidiarios of lhal conpany.
lN1LkNA1lCNAL CkCANlZA1lCNAL MCDLLS
Four inlornalionaI organizalionaI nodoIs havo boon idonlifiod by BarlIoll and GoshaI
(1993):
1. Dcccnirclizc! jc!crciicn in vhich oach nalionaI unil is nanagod as a soparalo
onlily lhal sooIs lo oplinizo ils porfornanco in lho IocaI onvironnonl. This is lho
lradilionaI nuIlinalionaI corporalion.
2. Cccr!incic! jc!crciicn in vhich lho conlro dovoIops sophislicalod nanagononl
syslons onabIing il lo nainlain ovoraII conlroI, aIlhough scopo is givon lo IocaI
nanagononl lo adopl praclicos lhal rocognizo IocaI narIol condilions.
3. Ccnirclizc! |u| in vhich lho focus is on lho gIobaI narIol ralhor lhan on IocaI
narIols. Such organizalions aro lruIy gIobaI ralhor lhan nuIlinalionaI, vhich is
lho caso vhon adopling a fodoralod approach.
4. 1rcnsnciicncl in vhich lho corporalion dovoIops nuIli-dinonsionaI slralogic
capabiIilios diroclod lovards conpoling gIobaIIy bul aIso aIIovs IocaI rospon-
sivonoss lo narIol roquirononls.
IorIins and Hondry (1999) arguo lhal nolvilhslanding lhis fourfoId nodoI, inlorna-
lionaI firns soon lo bo poIarizing around lvo organizalionaI approachos: 1) rogionaI-
izalion, vhoro IocaI cuslonor sorvico is inporlanl, and 2) gIobaI businoss slroans,
vhich invoIvo solling up conlraIIy conlroIIod businoss sognonls lhal doaI vilh a
roIalod rango of producls vorIdvido.
CCNVLkCLNCL AND DlVLkCLNCL
An issuo facing aII inlornalionaI firns is lho oxlonl lo vhich lhoir HR poIicios shouId
oilhor ćonvorgo' vorIdvido lo bo basicaIIy lho sano in oach Iocalion, or ´divorgo' lo
bo difforonlialod in rosponso lo IocaI roquirononls. Thoro is a naluraI londoncy for
nanagoriaI lradilions in lho paronl conpany lo shapo lho naluro of Ioy docisions, bul
lhoro aro slrong argunonls for giving as nuch IocaI aulonony as possibIo in ordor lo
onsuro lhal IocaI roquirononls aro sufficionlIy laIon inlo accounl.
As nolod by AdIor and Ghador (1990), organizalions havo lo foIIov vory difforonl
HRM poIicios and praclicos according lo lho roIovanl slago of inlornalionaI corporalo
ovoIulion: donoslic, inlornalionaI, nuIlinalionaI and gIobaI. Harris and Brovslor
(1999) rofor lo lhis as ´lho gIobaI/IocaI diIonna', lho issuo boing lho oxlonl lo vhich
oporaling unils across lho vorId aro lo bo difforonlialod and al lho sano lino inlo-
gralod, conlroIIod and coordinalod. Thoy suggosl lhal lho aIlornalivo slralogios aro
lho gIobaI approach in vhich lho conpany's cuIluro prodoninalos and HRM is
conlraIizod and roIalivoIy slandardizod (an ólhnoconlric' poIicy), or lho doconlraI-
izod approach in vhich HRM rosponsibiIily is dovoIvod lo subsidiarios. Thoy slalo
lhal lho faclors affocling choico aro:
lho oxlonl lo vhich lhoro aro voII-dofinod IocaI norns,
lho dogroo lo vhich an oporaling unil is onboddod in lho IocaI onvironnonl,
lho slronglh of lho fIov of rosourcos ÷ financo, infornalion and poopIo ÷ bolvoon
lho paronl and lho subsidiary,
lho orionlalion of lho paronl lo conlroI,
lho naluro of lho induslry ÷ lho oxlonl lo vhich il is prinariIy a donoslic induslry
al IocaI IovoI,
lho spocific organizalionaI conpoloncos incIuding HRM lhal aro crilicaI for
achioving conpolilivo advanlago in a gIobaI onvironnonl.
Brovslor (2004) boIiovos lhal convorgonco nay bo incroasing as a rosuIl of lho
povor of lho narIols, lho inporlanco of cosl, quaIily and produclivily prossuros,
lho onorgonco of lransaclion cosl ocononios and lho dovoIopnonl of IiIo-nindod
inlornalionaI cadros. Tho vidosproad praclico of bonchnarIing ´bosl praclico' nay
havo conlribulod lo convorgonco.
lntornutìonuí HkM l0l
Hovovor, Brovslor considors lhal Europoan firns al Ioasl aro so IocIod inlo lhoir
rospoclivo nalionaI inslilulionaI sollings lhal no connon nodoI is IiIoIy lo onorgo in
lho forosooabIo fuluro. Sinco HR syslons rofIocl nalionaI inslilulionaI conloxls and
cuIluros, lhoy do nol rospond roadiIy lo lho inporalivos of lochnoIogy or lho narIol.
Managors in oach counlry oporalo vilhin a nalionaI inslilulionaI conloxl and sharo a
sol of cuIluraI assunplions. Noilhor inslilulions nor cuIluros chango quicIIy and
raroIy in vays lhal aro lho sano as olhor counlrios. As Hofslodo (1980) poinls oul, il
foIIovs lhal nanagors in ono counlry bohavo in a vay lhal is nolicoabIy difforonl
fron nanagors in olhor counlrios.
Brovslor (2004) concIudos on lho basis of his rosoarch lhal lhoro is sono convor-
gonco in Europo in lho gonoraI diroclion of dovoIopnonls (diroclionaI convorgonco)
such as lho docroasing sizo of lho HR funclion, incroasos in lraining and dovoIopnonl
and lho incroasing provision of infornalion aboul slralogy and financos. Bul lhoro is
IillIo ovidonco of finaI convorgonco in lho sonso of conpanios boconing noro aIiIo in
lho vay in vhich lhoy nanago lhoir hunan rosourcos.
Dcvcíopíng an ín|crna|íonaí approach
Lauronl (1986) proposos lhal a lruIy inlornalionaI approach lo hunan rosourco
nanagononl vouId roquiro lho foIIoving slops:
1. An oxpIicil rocognilion by lho paronl organizalion lhal ils ovn pocuIiar vays of
nanaging hunan rosourcos rofIocl sono of lho assunplions and vaIuos of ils
hono cuIluro.
2. An oxpIicil rocognilion by lho paronl organizalion lhal ils pocuIiar vays aro
noilhor univorsaIIy bollor nor vorso lhan olhors, bul aro difforonl and IiIoIy lo
oxhibil slronglhs and voaInossos, parlicuIarIy abroad.
3. An oxpIicil rocognilion by lho paronl organizalion lhal ils foroign subsidiarios
nay havo olhor proforrod vays of nanaging poopIo lhal aro noilhor inlrinsicaIIy
bollor nor vorso, bul couId possibIy bo noro offoclivo IocaIIy.
4. WiIIingnoss fron hoadquarlors nol onIy lo acInovIodgo cuIluraI difforoncos, bul
aIso lo laIo aclion in ordor lo naIo lhon discussabIo and lhoroforo usoabIo.
5. Tho buiIding of a gonuino boIiof by aII parlios lhal noro croalivo and offoclivo
vays of nanaging poopIo couId bo dovoIopod as a rosuIl of cross-cuIluraI
Ioarning.
CLL1LkAL DlVLkSl1Y
CuIluraI and onvironnonlaI divorsily is a Ioy issuo in inlornalionaI HRM. As HaIoy
(1999) ronarIs:
ln cuíturos vhoro poopío uro omphusìzod, ìt ìs tho quuíìty ol ìntorporsonuí roíutìonshìps
vhìch ìs ìmportunt. ln cuíturos vhoro ìdooíogìos uro omphusìzod, shurìng common
boíìols ìs moro ìmportunt thun group momborshìp. ln cuíturos vhoro uctìon ìs omphu-
sìzod, vhut ìs dono ìs moro ìmportunt thun vhut ìs suìd.
Hofslodo (1980) onphasizos lhal lhoro aro a nunbor of cuIluraI dinonsions lhal affocl
inlornalionaI oporalions. His franovorI has boon adaplod by Bonlo and Forroira
(1992) lo produco lho foIIoving cuIluraI duaIilios:
oquaIily vorsus inoquaIily,
corlainly vorsus uncorlainly,
conlroIIabiIily vorsus unconlroIIabiIily,
individuaIisn vorsus coIIoclivisn,
naloriaIislic vorsus porsonaIizalion.
Sparrov and HiIlrop (1997) nolo lho foIIoving HR aroas lhal nay bo affoclod by
nalionaI cuIluro:
docisions on vhal naIos an offoclivo nanagor,
giving faco-lo-faco foodbacI,
roadinoss lo accopl inlornalionaI assignnonls,
pay syslons and difforonl concopls of sociaI ¡uslico,
approachos lo organizalionaI slrucluring and slralogic dynanics.
Harris   (2003) provido lho foIIoving inslanco of cuIluraI difforoncos:
A porlormunco munugomont systom busod on oponnoss botvoon munugor und subordì-
nuto, ouch oxpíuìnìng píuìníy hov thoy looí tho othor hus dono voíí or budíy ìn tho ¡ob,
muy vork ìn somo Luropoun countrìos, but ìs uníìkoíy to lìt vìth tho groutor hìorurchìcuí
ussumptìons und ´íoss ol luco' lours ol somo ol tho lucìlìc countrìos.
Sparrov (1999a) givos oxanpIos of difforonl approachos lo nanagoriaI quaIilios. Tho
AngIo-Saxon soos nanagononl as sonolhing soparalo and dofinabIo, basod on
gonoraI and lransforabIo sIiIIs, ospociaIIy inlorporsonaI sIiIIs. In Gornany, an onliroIy
opposilo viov is adoplod: vaIuo is pIacod on onlropronouriaI sIiIIs, lochnicaI conpo-
lonco, funclionaI oxporliso and croalivily, and nanagors roIy noro on fornaI
aulhorily lhan in olhor Europoan counlrios. In Franco, nanagononl is soon as an
inloIIocluaIIy donanding lasI and nanagononl dovoIopnonl syslons aro oIilisl.
Brovslor (1999) connonls lhal lho únivorsaIislic' approach lo HRM provaIonl in
lho USA is ro¡oclod in Europo vhoro lho basic funclions of HRM aro givon difforonl
lntornutìonuí HkM l03
voighls bolvoon counlrios and aro carriod oul difforonlIy. If a convorgonl and
lhoroforo univorsaIislic approach is adoplod by a US inlornalionaI conpany, il nighl
bo difficuIl lo gol il accoplod in Europo. Divorgoncos lo rospocl cuIluraI difforoncos
nay bo noro approprialo if lho fuII polonliaI of lho ovorsoas conpany is lo bo
roaIizod.
1HlNK CLCßALLY AND AC1 LCCALLY
Tho cuIluraI difforoncos nonlionod abovo havo producod lho sIogan ´lhinI gIobaIIy
and acl IocaIIy'. This noans lhal an inlornalionaI baIancing acl is roquirod, vhich
Ioads lo lho fundanonlaI assunplion nado by BarlIoll and GhoshaI (1991) lhal:
´BaIancing lho noods of co-ordinalion, conlroI and aulonony and nainlaining lho
approprialo baIanco aro crilicaI lo lho succoss of lho nuIlinalionaI conpany.'
UIrich (1998) suggosls lhal lo achiovo lhis baIancing acl, lhoro aro six capabiIilios
lhal onabIo firns lo inlogralo and conconlralo inlornalionaI aclivilios and aIso
soparalo and adopl IocaI aclivilios:
1. boing abIo lo dolornino coro aclivilios and non-coro aclivilios,
2. achioving consisloncy vhiIo aIIoving fIoxibiIily,
3. buiIding gIobaI brand oquily vhiIo honouring IocaI cuslons,
4. oblaining Iovorago (biggor is bollor) vhiIo achioving focus (snaIIor is bollor),
5. sharing Ioarning and croaling nov InovIodgo,
6. ongondoring a gIobaI porspoclivo vhiIo onsuring IocaI accounlabiIily.
lN1LkNA1lCNAL Hk lCLlClLS
InlornalionaI HR poIicios viII doaI vilh lho oxlonl lo vhich lhoro shouId bo convor-
gonco or divorgonco in lho HR praclicos adoplod in ovorsoas subsidiarios or unils.
Thoso viII havo lo laIo accounl of difforoncos in onpIoynonl Iav, lho characlor of lho
Iabour narIol, difforonl onpIoyoo roIalions procossos and any cuIluraI difforoncos in
lho vays in vhich poopIo aro lroalod.
MANAClNC LXlA1klA1LS
Tho nanagononl of oxpalrialos is a na¡or faclor dolornining succoss or faiIuro in an
inlornalionaI businoss. Expalrialos aro oxponsivo, lhoy can cosl lhroo or four linos as
nuch as lho onpIoynonl of lho sano individuaI al hono. Thoy aro difficuIl lo
nanago bocauso of lho probIons associalod vilh adapling lo and vorIing in unfa-
niIiar onvironnonls, concorns aboul lhoir dovoIopnonl and caroors, difficuIlios
oncounlorod vhon lhoy ro-onlor lhoir paronl conpany aflor an ovorsoas assignnonl,
and hov lhoy shouId bo ronunoralod. IoIicios lo addross aII lhoso issuos aro
roquirod, as doscribod boIov.
Rc·ourcíng poíícíc·
Tho chaIIongo is lhal of rosourcing inlornalionaI oporalions vilh poopIo of lho righl
caIibro. As IorIins (1997) poinls oul, il is nocossary for businossos lo ´ronain conpol-
ilivo vilh lhoir onpIoynonl offoring in lho narIol pIaco, lo allracl and rolain high
quaIily slaff vilh vorIdvido capabiIilios'.
IoIicios aro roquirod on lho onpIoynonl of IocaI nalionaIs and lho uso of oxpalri-
alos for Iong poriods or shorlor assignnonls. Tho advanlagos of onpIoying IocaI
nalionaIs aro lhal lhoy:
aro faniIiar vilh IocaI narIols, lho IocaI connunilios, lho cuIluraI solling and lho
IocaI oconony,
spoaI lho IocaI Ianguago and aro cuIluraIIy assiniIalod,
can laIo a Iong-lorn viov and conlribulo for a Iong poriod (as dislincl fron oxpa-
lrialos vho aro IiIoIy lo laIo a shorl-lorn porspoclivo),
do nol laIo lho palronizing (noo-coIoniaI) alliludo lhal oxpalrialos sonolinos
adopl.
Expalrialos (nalionaIs of lho paronl conpany or lhird-counlry nalionaIs) nay bo
roquirod lo provido lho oxporionco and oxporliso lhal IocaI nalionaIs IacI, al Ioasl for
lho lino boing. Bul lhoro is nuch lo bo said for a Iong-lorn rosourcing poIicy lhal
slalos lhal lho ain is lo fiII aII or lho groal na¡orily of posls vilh IocaI poopIo. Iaronl
conpanios vho slaff lhoir ovorsoas subsidiarios vilh IocaI nalionaIs aIvays havo lho
scopo lo ´parachulo in' spociaIisl slaff lo doaI vilh parlicuIar issuos such as lho slarl-
up of a nov producl or sorvico.
Rccruí|mcn| and ·cícc|íon poíícíc·
IoIicios for rocruilnonl and soIoclion shouId doaI vilh spocifying roquirononls,
providing roaIislic proviovs and proparalion for ovorsoas assignnonls.
koIc spccifications
RoIo spocificalions shouId laIo nolo of lho bohaviours roquirod for lhoso vho vorI
inlornalionaIIy. LobIanc (2001) suggoslod lhal lhoy shouId bo abIo lo:
rocognizo lho divorsily of ovorsoas counlrios,
accopl difforoncos bolvoon counlrios as a facl and ad¡usl lo lhoso difforoncos offoc-
livoIy,
loIoralo and ad¡usl lo IocaI condilions,
copo in lho Iong lorn vilh a Iargo varioly of foroign conloxls,
nanago IocaI oporalions and porsonnoI abroad offoclivoIy,
gain accoplanco as a roprosonlalivo of ono's conpany abroad,
oblain and inlorprol infornalion aboul foroign nalionaI conloxls (inslilulions,
IogisIalions, praclicos, narIol spocifics, olc),
inforn and connunicalo offoclivoIy vilh a foroign onvironnonl aboul lho hono
conpany's poIicios,
laIo inlo accounl lho foroign onvironnonl vhon nogolialing conlracls and parl-
norships,
idonlify and accopl ad¡uslnonls lo basic producl spocificalions in ordor lo nool
lho noods of lho foroign narIol,
dovoIop oIononls of a connon franovorI for conpany slralogios, poIicios and
oporalions,
accopl lhal lho praclicos lhal viII oporalo bosl in an ovorsoas onvironnonl viII nol
nocossariIy bo lho sano as lho conpany's ´hono' praclicos.
kcaIistic prcvicws
Al inlorviovs for candidalos fron oulsido lho organizalion, and vhon laIIing lo
inlornaI slaff aboul lho possibiIily of an ovorsoas assignnonl, il is advisabIo lo havo a
poIicy of providing a roaIislic proviov of lho ¡ob. Tho proviov shouId provido infor-
nalion on lho ovorsoas oporalion, any spociaI foaluros of lho vorI, vhal viII nood lo
bo dono lo ad¡usl lo IocaI condilions, caroor progrossion ovorsoas, ro-onlry poIicy on
conpIolion of lho assignnonl, pay, and spociaI bonofils such as hono Ioavo and chiI-
dron's oducalion.
Frcparation poIicy
Tho proparalion poIicy for ovorsoas assignnonls shouId incIudo lho provision of
cuIluraI faniIiarizalion for lho counlry(ios) in vhich lho oxpalrialo viII vorI (sono-
linos caIIod áccuIlurizalion'), lho proforrod approach lo Ioading and vorIing in
inlornalionaI loans, and lho businoss and HR poIicios lhal viII appIy.
Traíníng
Tariquo and CaIIigiri (1995) proposo lhal lho foIIoving slops shouId bo laIon lo
dosign a lraining progranno for oxpalrialos:
1. Idonlify lho lypo of gIobaI assignnonl, og lochnicaI, funclionaI, laclicaI, dovoIop-
nonlaI or slralogic/oxoculivo.
2. Conducl a cross-cuIluraI lraining noods anaIysis covoring organizalionaI anaIysis
and roquirononls, assignnonl anaIysis of Ioy lasIs and individuaI anaIysis of
sIiIIs.
3. EslabIish lraining goaIs and noasuros ÷ cognilivo (og undorslanding lho roIo of
cuIluraI vaIuos and norns) and affoclivo (nodifying porcoplion aboul cuIluro
and incroasing confidonco in doaIing vilh individuaI bohaviours lo forn adap-
livo bohaviours such as inlorporsonaI sIiIIs).
4. DovoIop lho progranno ÷ lho conlonl shouId covor bolh gonoraI and spocific
cuIluraI orionlalion, a varioly of nolhods shouId bo usod.
5. EvaIualo lraining givon.
A··ímíía|íon and rcvícv poíícíc·
AssiniIalion poIicios viII provido for lho adaplalion of oxpalrialos lo ovorsoas posls
and lhoir progross in lhon lo bo nonilorod and roviovod. This nay laIo lho forn of
convonlionaI porfornanco nanagononl procossos, bul addilionaI infornalion nay
bo providod on polonliaI and lho abiIily of individuaIs lo copo vilh ovorsoas condi-
lions. Whoro a nunbor of oxpalrialos aro onpIoyod il is cuslonary for sonoono al
hoadquarlors lo havo lho rosponsibiIily of IooIing aflor lhon.
Rc-cn|r, poíícíc·
Ro-onlry poIicios shouId bo dosignod lo nininizo lho probIons lhal can ariso vhon
oxpalrialos rolurn lo lhoir paronl conpany aflor an ovorsoas posling. Thoy vanl lo bo
assurod lhal lhoy viII bo givon a posilion approprialo lo lhoir quaIificalions, and lhoy
viII bo concornod aboul lhoir caroors, suspocling lhal lhoir ovorsoas oxporionco viII
nol bo laIon inlo accounl. IoIicios shouId aIIov lino for oxpalrialos lo ad¡usl. Tho
provision of nonlors or counsoIIors is dosirabIo.
|a, and aííovancc· poíícíc·
Tho faclors lhal aro IiIoIy lo inpacl on lho dosign of rovard syslons as suggoslod by
BradIoy   (1999) aro lho corporalo cuIluro of lho nuIlinalionaI onlorpriso, oxpa-
lrialo and IocaI Iabour narIols, IocaI cuIluraI sonsilivilios and IogaI and inslilulionaI
faclors. Thoy rofor lo lho choico lhal has lo bo nado bolvoon sooIing inlornaI
consisloncy by dovoIoping connon rovard poIicios in ordor lo faciIilalo lho novo-
nonl of onpIoyoos across bordors and prosorvo inlornaI oquily, and rosponding lo
prossuros lo conforn lo IocaI praclicos. Bul lhoy poinl oul lhal: ´Sludios of cuIluraI
difforoncos suggosl lhal rovard syslon dosign and nanagononl nood lo bo laiIorod
lo IocaI vaIuos lo onhanco lho porfornanco of ovorsoas oporalions.' As Sparrov
(1999b) assorls: ´Difforoncos in inlornalionaI rovard aro nol ¡usl a consoquonco of
cuIluraI difforoncos, bul aIso of difforoncos in inlornalionaI infIuoncos, nalionaI busi-
noss syslons and lho roIo and conpolonco of nanagors in lho sphoro of HRM.'
Tho poIicy of nosl organizalions is lo onsuro lhal oxpalrialos aro no vorso off
bocauso lhoy havo boon poslod abroad. In praclico, various addilionaI aIIovancos or
paynonls, such as hardship aIIovancos, noan lhal lhoy aro usuaIIy bollor off finan-
ciaIIy lhan if lhoy had slayod al hono. Tho basic choico is vholhor lo adopl a hono-
basod or hosl-basod poIicy for oxpalrialos.
Homc-bascd pay
Tho hono-basod pay approach ains lo onsuro lhal lho vaIuo of lho saIary of oxpalri-
alos is lho sano as in lhoir hono counlry. Tho hono-baso saIary nay bo a nolionaI ono
for Iong-lorn assignnonls (io lho saIary vhich il is assunod vouId bo paid lo oxpa-
lrialos voro lhoy onpIoyod in a ¡ob of oquivaIonl IovoI al lho paronl conpany). For
shorlor-lorn assignnonls il nay bo lho acluaI saIary of lho individuaI. Tho nolionaI
or acluaI hono-baso saIary is usod as lho foundalion upon vhich lho lolaI ronunora-
lion pacIago is buiIl. This is sonolinos caIIod lho ´buiId-up' or ´baIanco shool'
approach.
Tho saIary ´buiId-up' slarls vilh lho acluaI or nolionaI hono-baso saIary. To il is
addod a cosl of Iiving ad¡uslnonl, vhich is appIiod lo ´spondabIo incono' ÷ lho
porlion of saIary lhal vouId bo usod al hono for ovoryday Iiving. Il usuaIIy oxcIudos
incono lax, sociaI socurily, ponsions and insuranco and can oxcIudo discrolionary
oxpondiluro on na¡or purchasos or hoIidays on lho grounds lhal lhoso do nol consli-
lulo day-lo-day Iiving oxponsos.
Tho oxpalrialo's saIary vouId lhon consisl of lho acluaI or nolionaI hono-baso
saIary pIus lho cosl of Iiving ad¡uslnonl. In addilion, il nay bo nocossary lo ad¡usl
saIarios lo laIo accounl of lho hosl counlry's lax rogino in ordor lo achiovo lax oquaI-
izalion. Movos of Ioss lhan a yoar lhal nighl givo riso lo doubIo laxalion roquiro
parlicuIar allonlion.
Sono or aII of lho foIIoving aIIovancos nay bo addod lo lhis saIary:
ínconlivo lo vorI abroad' proniun,
hardship and Iocalion,
housing and uliIilios,
schooI foos,
´rosl and rocuporalion' Ioavo.
Host-bascd pay
Tho hosl-basod pay approach providos oxpalrialos vilh saIarios and bonofils such as
conpany cars and hoIidays lhal aro in Iino vilh lhoso givon lo nalionaIs of lho hosl
counlry in siniIar ¡obs. This nolhod onsuros oquily bolvoon oxpalrialos and hosl
counlry nalionaIs. Il is adoplod by conpanios using lho so-caIIod ńarIol ralo'
syslon, vhich onsuros lhal lho saIarios of oxpalrialos nalch lho narIol IovoIs of pay
in lho hosl counlry.
Conpanios using lho hosl-basod approach connonIy pay addilionaI aIIovancos
such as schooI foos, acconnodalion and nodicaI insuranco. Thoy nay aIso fund
Iong-lorn bonofils IiIo sociaI socurily, Iifo assuranco and ponsions fron hono.
Tho hosl-basod nolhod is corlainIy oquilabIo fron lho viovpoinl of IocaI nalionaIs,
and il can bo Ioss oxponsivo lhan hono-basod pay. Bul il nay bo nuch Ioss allraclivo
as an inducononl for onpIoyoos lo vorI abroad, ospociaIIy in unpIoasanl Iocalions,
and il can bo difficuIl lo coIIocl narIol ralo dala IocaIIy lo provido a basis for solling
pay IovoIs.
Humun rosourco
munugomont procossos
Humcn rcscurcc mcncgcmcni prcccsscs crc i|csc ccnccrnc! uii| i|c !ctclcpmcni cj
HR sircicgics (sircicgic HRM), pclicics cn! prcciiccs i|ci cjjcci cll cspccis cj HR cn!
cmplcqmcni mcncgcmcni. 1|is pcri clsc cctcrs ci|cr prcccsscs i|ci cjjcci mcsi
cspccis cj HRM, ncmclq ccmpcicncq-|csc! cpprccc|cs, |nculc!gc mcncgcmcni cn!
rclc cn! ccmpcicncq cnclqsis.
 
Strutogìc HkM
An inporlanl dofining characlorislic of hunan rosourco nanagononl is lhal il is
slralogic. This characlorislic is oxprossod by lho concopl of slralogic HRM ÷ an inlo-
gralod approach lo lho dovoIopnonl of HR slralogios lhal onabIo lho organizalion lo
achiovo ils goaIs. To undorsland lho nolion of slralogic HRM il is nocossary lo appro-
cialo lho concopl of slralogy upon vhich il is basod, and lhis is considorod in lho firsl
soclion of lho chaplor. This Ioads inlo a dofinilion of lho concopl of slralogic HRM
foIIovod by oxposilions of ils ains and approachos.
1HL CCNCLl1 Cl S1kA1LCY
Slralogy has boon dofinod by }ohnson and SchoIos (1993) as: 'Tho diroclion and scopo
of an organizalion ovor lho Iongor lorn, vhich idoaIIy nalchos ils rosourcos lo ils
changing onvironnonl, and in parlicuIar, lo ils narIols, cuslonors and cIionls lo
nool slaIohoIdor oxpoclalions.'
Slralogy dolorninos lho diroclion in vhich lho organizalion is going in roIalion lo
ils onvironnonl. Il is lho procoss of dofining inlonlions (sircicgic inicni) and aIIocaling
or nalching rosourcos lo opporlunilios and noods (rcscurcc-|csc! sircicgq). Busi-
noss slralogy is concornod vilh achioving ccmpciiiitc c!tcnicgc. Tho offoclivo
dovoIopnonl and inpIononlalion of slralogy doponds on lho sircicgic ccpc|iliiq of lho

organizalion's nanagors. As oxprossod in lho IrofossionaI Slandards of lho CIID, lhis
noans lho capacily lo croalo an achiovabIo vision for lho fuluro, lo forosoo Iongor-
lorn dovoIopnonls, lo onvisago oplions (and lhoir probabIo consoquoncos), lo soIocl
sound coursos of aclion, lo riso abovo lho day-lo-day dolaiI, lo chaIIongo lho sicius
¡uc. Slralogy is oxprossod in sircicgic gccls and dovoIopod and inpIononlod in
sircicgic plcns lhrough lho procoss of sircicgic mcncgcmcni. Slralogy is aboul inpIo-
nonlalion, vhich incIudos lho nanagononl of chango, as voII as pIanning. An
inporlanl aspocl of slralogy is lho nood lo achiovo sircicgic jii. This is usod in lhroo
sonsos:
1. nalching lho organizalion's capabiIilios and rosourcos lo lho opporlunilios avaiI-
abIo in lho oxlornaI onvironnonl,
2. nalching ono aroa of slralogy, og hunan rosourco nanagononl, lo lho businoss
slralogy, and
3. onsuring lhal difforonl aspocls of a slralogy aroa cohoro and aro nuluaIIy
supporlivo.
Tho concopl of slralogy is nol a slraighlforvard ono. Thoro aro nany difforonl lhoo-
rios aboul vhal il is and hov il vorIs. Minlzborg ci cl (1988) suggosl lhal slralogy can
havo a nunbor of noanings, nanoIy:
A plcn, or sonolhing oquivaIonl ÷ a diroclion, a guido, a courso of aclion.
A pciicrn, lhal is, consisloncy in bohaviour ovor lino.
A pcrspcciitc, an organizalion's fundanonlaI vay of doing lhings.
A plcq, a spocific 'nanoouvro' inlondod lo oulvil an oppononl or a conpolilor.
Tho fornuIalion of corporalo slralogy can bo dofinod as a procoss for dovoIoping and
dofining a sonso of diroclion. Il has oflon boon doscribod as a IogicaI, slop-by-slop
affair, lho oulcono of vhich is a fornaI vrillon slalononl lhal providos a dofinilivo
guido lo lho organizalion's Iong-lorn inlonlions. Many poopIo sliII boIiovo lhal lhis is
lho caso, bul il is a nisroprosonlalion of roaIily. In praclico lho fornuIalion of slralogy
is novor as ralionaI and Iinoar a procoss as sono vrilors doscribo il or as sono
nanagors allonpl lo naIo il.
Minlzborg (1987) boIiovos lhal slralogy fornuIalion is nol nocossariIy ralionaI
and conlinuous. In lhoory, ho says, slralogy is a syslonalic procoss: firsl vo lhinI,
lhon vo acl, vo fornuIalo lhon vo inpIononl. Bul vo aIso 'acl in ordor lo lhinI'. In
praclico, 'a roaIizod slralogy can onorgo in rosponso lo an ovoIving silualion' and lho
slralogic pIannor is oflon 'a pallorn organizor, a Ioarnor if you IiIo, vho nanagos a
procoss in vhich slralogios and visions can onorgo as voII as bo doIiboraloIy
ll4 HkM procossos
concoivod'. Ho has onphasizod lho concopl of 'onorgonl slralogios', and a Ioy aspocl
of lhis procoss is lho produclion of sonolhing lhal is nov lo lho organizalion ovon if
il is nol dovoIopod as IogicaIIy as lho lradilionaI corporalo pIannors boIiovod lo bo
approprialo.
Tyson (1997) confirns lhal:
slralogy has aIvays boon onorgonl and fIoxibIo ÷ il is aIvays 'aboul lo bo', il
novor oxisls al lho prosonl lino,
slralogy is nol onIy roaIizod by fornaI slalononls bul aIso conos aboul by aclions
and roaclions,
slralogy is a doscriplion of a fuluro-orionlod aclion lhal is aIvays diroclod
lovards chango,
lho nanagononl procoss ilsoIf condilions lho slralogios lhal onorgo.
S1kA1LClC HkM DLllNLD
Slralogic HRM is an approach lo naIing docisions on lho inlonlions and pIans of lho
organizalion in lho shapo of lho poIicios, progrannos and praclicos concorning lho
onpIoynonl roIalionship, rosourcing, Ioarning and dovoIopnonl, porfornanco
nanagononl, rovard, and onpIoyoo roIalions. Tho concopl of slralogic HRM is
dorivod fron lho concopls of HRM and slralogy. Il laIos lho HRM nodoI vilh ils
focus on slralogy, inlogralion and cohoronco and adds lo lhal lho Ioy nolions of
slralogy, nanoIy, slralogic inlonl, rosourco-basod slralogy, conpolilivo advanlago,
slralogic capabiIily and slralogic fil.
S|ra|cgíc HR\ and HR ·|ra|cgíc·
Slralogic HRM is an approach lo lho slralogic nanagononl of hunan rosourcos in
accordanco vilh lho inlonlions of lho organizalion on lho fuluro diroclion il vanls lo
laIo. Whal onorgos fron lhis procoss is a slroan of docisions ovor lino lhal forn lho
pallorn adoplod by lho organizalion for nanaging ils hunan rosourcos and vhich
dofino lho aroas in vhich spocific HR slralogios nood lo bo dovoIopod. Thoso focus on
lho docisions of lho organizalion on vhal noods lo bo dono and vhal noods lo bo
changod in parlicuIar aroas of poopIo nanagononl.
Thc mcaníng of ·|ra|cgíc HR\
According lo Hondry and Iolligrov (1986), slralogic HRM has four noanings:
Strutogìc HkM ll5
1. lho uso of pIanning,
2. a cohoronl approach lo lho dosign and nanagononl of porsonnoI syslons basod
on an onpIoynonl poIicy and nanpovor slralogy and oflon undorpinnod by a
'phiIosophy',
3. nalching HRM aclivilios and poIicios lo sono oxpIicil businoss slralogy,
4. sooing lho poopIo of lho organizalion as a 'slralogic rosourco' for lho achiovononl
of 'conpolilivo advanlago'.
IurcoII (2001) dravs allonlion lo lho inpIicalions for slralogic HRM of lho concopl of
slralogy as an onorging ralhor lhan a doIiboralo procoss:
ßìg strutogìos ìn HkM uro most uníìkoíy to como, cx ca|hcdra, lrom tho bourd us u luííy
lormod, vrìtton strutogy or píunnìng pupor. Strutogy ìs much moro ìntuìtìvo und olton
oníy 'vìsìbío' ultor tho ovont, soon us 'omorgìng puttorns ol uctìon'. 1hìs ìs ospocìuííy tho
cuso vhon most ol tho strutogy, us ìn HkM, ìs to do vìth ìntornuí ìmpíomontutìon und
porlormunco strutogìos, not oxcíusìvoíy to do vìth oxtornuí murkot píoys.
S|ra|cgíc HR\ a· an ín|cgra|cd procc··
Slralogic HRM is ossonliaIIy an inlogralod procoss lhal ains lo achiovo 'slralogic fil'.
A slralogic HRM approach producos HR slralogios lhal aro inlogralod vorlicaIIy vilh
lho businoss slralogy and aro idoaIIy an inlograI parl of lhal slralogy, conlribuling lo
lho businoss pIanning procoss as il happons. WaIIor (1992) dofinos slralogic HRM as
'lho noans of aIigning lho nanagononl of hunan rosourcos vilh lho slralogic conlonl
of lho businoss'. VorlicaI inlogralion is nocossary lo provido congruonco bolvoon
businoss and hunan rosourco slralogy so lhal lho Iallor supporls lho acconpIishnonl
of lho fornor and, indood, hoIps lo dofino il. Slralogic HRM is aIso aboul horizonlaI
inlogralion, vhich ains lo onsuro lhal lho difforonl oIononls of lho HR slralogy fil
logolhor and aro nuluaIIy supporlivo.
AlMS Cl S1kA1LClC HkM
Tho fundanonlaI ain of slralogic HRM is lo gonoralo a porspoclivo on lho vay in
vhich crilicaI issuos roIaling lo poopIo can bo addrossod. Il onabIos slralogic docisions
lo bo nado lhal havo a na¡or and Iong-lorn inpacl on lho bohaviour and succoss of
lho organizalion by onsuring lhal lho organizalion has lho sIiIIod, connillod and
voII-nolivalod onpIoyoos il noods lo achiovo suslainod conpolilivo advanlago. Ils
ralionaIo is lho advanlago of having an agrood and undorslood basis for dovoIoping
approachos lo poopIo nanagononl in lho Iongor lorn by providing a sonso of
ll6 HkM procossos
diroclion in an oflon lurbuIonl onvironnonl. As Dyor and HoIdor (1998) ronarI,
slralogic HRM shouId provido 'unifying franovorIs vhich aro al onco broad, conlin-
goncy basod and inlogralivo'.
Whon oxanining lho ains of slralogic HRM il is nocossary lo considor lho nood for
HR slralogy lo laIo inlo accounl lho inlorosls of aII lho slaIohoIdors in lho organiza-
lion, onpIoyoos in gonoraI as voII as ovnors and nanagononl. In Sloroy's (1989)
lorns, 'sofl slralogic HRM' viII pIaco groalor onphasis on lho hunan roIalions aspocl
of poopIo nanagononl, slrossing conlinuous dovoIopnonl, connunicalion, invoIvo-
nonl, socurily of onpIoynonl, lho quaIily of vorIing Iifo and vorI-Iifo baIanco.
ElhicaI considoralions viII bo inporlanl. 'Hard slralogic HRM' on lho olhor hand viII
onphasizo lho yioId lo bo oblainod by invosling in hunan rosourcos in lho inlorosls of
lho businoss. This is aIso lho phiIosophy of hunan capilaI nanagononl.
Slralogic HRM shouId allonpl lo achiovo a propor baIanco bolvoon lho hard and
sofl oIononls. AII organizalions oxisl lo achiovo a purposo and lhoy nusl onsuro lhal
lhoy havo lho rosourcos roquirod lo do so, and lhal lhoy uso lhon offoclivoIy. Bul lhoy
shouId aIso laIo inlo accounl lho hunan considoralions conlainod in lho concopl of
sofl slralogic HRM. In lho vords of Quinn MiIIs (1983) lhoy shouId pIan vilh poopIo
in nind, laIing inlo accounl lho noods and aspiralions of aII lho nonbors of lho orga-
nizalion. Tho probIon is lhal hard considoralions in nany businossos viII cono firsl,
Ioaving sofl onos sono vay bohind.
AllkCACHLS 1C S1kA1LClC HkM
Slralogic HRM adopls an ovoraII rosourco-basod phiIosophy, as doscribod boIov.
Wilhin lhis franovorI lhoro aro lhroo possibIo approachos, nanoIy, high-porfor-
nanco nanagononl (high-porfornanco vorIing), high-connilnonl nanagononl
and high-invoIvononl nanagononl.
Rc·ourcc-ba·cd ·|ra|cgíc HR\
Arosourco-basod approach lo slralogic HRM focusos on salisfying lho hunan capilaI
roquirononls of lho organizalion. Tho nolion of rosourco-basod slralogic HRM is
basod on lho idoas of Ionroso (1959), vho vrolo lhal lho firn is 'an adninislralivo
organizalion and a coIIoclion of produclivo rosourcos'. Il vas dovoIopod by HanoI
and IrahaIad (1989), vho docIarod lhal conpolilivo advanlago is oblainod if a firn
can oblain and dovoIop hunan rosourcos lhal onabIo il lo Ioarn faslor and appIy ils
Ioarning noro offoclivoIy lhan ils rivaIs. Barnoy (1991) slalos lhal suslainod conpoli-
livo advanlago slons fron lho acquisilion and offoclivo uso of bundIos of dislinclivo
rosourcos lhal conpolilors cannol inilalo. As IurcoII   (2003) suggosl, lho vaIuos
Strutogìc HkM ll7
and HR poIicios of an organizalion conslilulo an inporlanl non-inilabIo rosourco.
This is achiovod by onsuring lhal:
lho firn has highor quaIily poopIo lhan ils conpolilors,
lho uniquo inloIIocluaI capilaI possossod by lho businoss is dovoIopod and
nurlurod,
organizalionaI Ioarning is oncouragod,
organizalion-spocific vaIuos and a cuIluro oxisl vhich 'bind lho organizalion
logolhor (and) givos il focus'.
Tho ain of a rosourco-basod approach is lo inprovo rosourco capabiIily ÷ achioving
slralogic fil bolvoon rosourcos and opporlunilios and oblaining addod vaIuo fron lho
offoclivo dopIoynonl of rosourcos. In Iino vilh hunan capilaI lhoory, rosourco-basod
lhoory onphasizos lhal invoslnonl in poopIo adds lo lhoir vaIuo lo lho firn. Ro-
sourco-basod slralogy, as Barnoy (1991) indicalos, can dovoIop slralogic capabiIily and
produco vhal BoxaII and IurcoII (2003) rofor lo as 'hunan rosourco advanlago'.
Thc hígh-pcrformancc managcmcn| approach
High-porfornanco vorIing invoIvos lho dovoIopnonl of a nunbor of inlorroIalod
procossos vhich logolhor naIo an inpacl on lho porfornanco of lho firn lhrough ils
poopIo in such aroas as produclivily, quaIily, IovoIs of cuslonor sorvico, grovlh,
profils and, uIlinaloIy, lho doIivory of incroasod sharohoIdor vaIuo. This is achiovod
by 'onhancing lho sIiIIs and ongaging lho onlhusiasn of onpIoyoos' (Slovons, 1998).
According lo Slovons, lho slarling poinl is Ioadorship, vision and bonchnarIing lo
croalo a sonso of nononlun and diroclion. Irogross nusl bo noasurod conslanlIy. Ho
suggosls lhal lho nain drivors, supporl syslons and cuIluro aro:
doconlraIizod, dovoIvod docision-naIing nado by lhoso cIososl lo lho cuslonor ÷
so as conslanlIy lo ronov and inprovo lho offor lo cuslonors,
dovoIopnonl of poopIo capacilios lhrough Ioarning al aII IovoIs, vilh parlicuIar
onphasis on soIf-nanagononl and loan capabiIilios ÷ lo onabIo and supporl
porfornanco inprovononl and organizalionaI polonliaI,
porfornanco, oporalionaI and poopIo nanagononl procossos aIignod lo organiza-
lionaI ob¡oclivos ÷ lo buiId lrusl, onlhusiasn and connilnonl lo lho diroclion
laIon by lho organizalion,
fair lroalnonl for lhoso vho Ioavo lho organizalion as il changos, and ongagononl
vilh lho noods of lho connunily oulsido lho organizalion ÷ lhis is an inporlanl
conpononl of lrusl and connilnonl-basod roIalionships bolh vilhin and oulsido
lho organizalion.
ll8 HkM procossos
High-porfornanco nanagononl praclicos incIudo rigorous rocruilnonl and soIoclion
procoduros, oxlonsivo and roIovanl Ioarning and dovoIopnonl aclivilios, inconlivo
pay syslons and porfornanco nanagononl procossos.
Tho slralogy nay bo oxprossod as a drivo lo dovoIop a porfornanco cuIluro in an
organizalion. In lho box boIov is an oxanpIo of lho high-porfornanco slralogy
fornuIalod by lho Corporalion of London.
Thc hígh-commí|mcn| managcmcn| modcí
Ono of lho undorpinning characlorislics of HRM is ils onphasis on lho inporlanco of
onhancing nuluaI connilnonl (WaIlon, 1985b). High-connilnonl nanagononl has
boon doscribod by Wood (1996) as:
A lorm ol munugomont vhìch ìs uìmod ut oíìcìtìng u commìtmont so thut bohuvìour ìs
prìmurìíy soíl-roguíutod ruthor thun controííod by sunctìons und prossuros oxtornuí to tho
ìndìvìduuí, und roíutìons vìthìn tho orgunìzutìon uro busod on hìgh íovoís ol trust.
Tho approachos lo croaling a high-connilnonl organizalion as dofinod by Boor  
(1984) and WaIlon (1985b) aro:
Strutogìc HkM ll9
Tho fundanonlaI businoss nood lho slralogy shouId nool is lo dovoIop and nain-
lain a high porfornanco cuIluro. Tho characlorislics of such a cuIluro aro:
a cIoar Iino of sighl oxisls bolvoon lho slralogic ains of lho aulhorily and lhoso
of ils doparlnonls and ils slaff al aII IovoIs,
nanagononl dofinos vhal il roquiros in lho shapo of porfornanco inprovo-
nonls, sols goaIs for succoss and nonilors porfornanco lo onsuro lhal lho
goaIs aro achiovod,
Ioadorship fron lho lop, vhich ongondors a sharod boIiof in lho inporlanco of
conlinuing inprovononl,
focus on pronoling posilivo alliludos lhal rosuIl in a connillod and noli-
valod vorIforco,
porfornanco nanagononl procossos aIignod lo lho aulhorily's ob¡oclivos lo
onsuro lhal poopIo aro ongagod in achioving agrood goaIs and slandards,
capacilios of poopIo dovoIopod lhrough Ioarning al aII IovoIs lo supporl
porfornanco inprovononl,
poopIo providod vilh opporlunilios lo naIo fuII uso of lhoir sIiIIs and abiIi-
lios,
poopIo vaIuod and rovardod according lo lhoir conlribulion.
lho dovoIopnonl of caroor Iaddors and onphasis on lrainabiIily and connilnonl
as highIy vaIuod characlorislics of onpIoyoos al aII IovoIs in lho organizalion,
a high IovoI of funclionaI fIoxibiIily vilh lho abandonnonl of polonliaIIy rigid ¡ob
doscriplions,
lho roduclion of hiorarchios and lho onding of slalus difforonliaIs,
a hoavy roIianco on loan slrucluro for dissoninaling infornalion (loan briofing),
slrucluring vorI (loan vorIing) and probIon soIving (quaIily circIos).
Wood and AIbanoso (1995) addod lo lhis Iisl:
¡ob dosign as sonolhing nanagononl consciousIy doos in ordor lo provido ¡obs
lhal havo a considorabIo IovoI of inlrinsic salisfaclion,
a poIicy of no conpuIsory Iay-offs or rodundancios and pornanonl onpIoynonl
guaranloos, vilh lho possibIo uso of lonporary vorIors lo cushion fIuclualions in
lho donand for Iabour,
nov forns of assossnonl and paynonl syslons and, noro spocificaIIy, noril pay
and profil sharing,
a high invoIvononl of onpIoyoos in lho nanagononl of quaIily.
Approachos lo achioving connilnonl aro doscribod in Chaplor 19.
Hígh-ínvoívcmcn| managcmcn|
This approach invoIvos lroaling onpIoyoos as parlnors in lho onlorpriso vhoso inlor-
osls aro rospoclod and vho havo a voico on nallors lhal concorn lhon. Il is concornod
vilh connunicalion and invoIvononl. Tho ain is lo croalo a cIinalo in vhich a
conlinuing diaIoguo bolvoon nanagors and lho nonbors of lhoir loans laIo pIaco lo
dofino oxpoclalions and sharo infornalion on lho organizalion's nission, vaIuos and
ob¡oclivos. This oslabIishos nuluaI undorslanding of vhal  lo bo achiovod and a
franovorI for nanaging and dovoIoping poopIo lo onsuro lhal il  bo achiovod.
Tho foIIoving high-invoIvononl vorI praclicos havo boon idonlifiod by IiI and
McDuffio (1999):
ón-Iino' vorI loans,
óff-Iino' onpIoyoo invoIvononl aclivilios and probIon-soIving groups,
¡ob rolalion,
suggoslion progrannos,
doconlraIizalion of quaIily offorls.
l20 HkM procossos
lMlLLMLN1lNC S1kA1LClC HkM
Tho inpIononlalion of slralogic HRM is carriod oul vilhin lho franovorI of lho
approachos doscribod abovo. Tho ovorarching inporalivo viII bo lo achiovo hunan
rosourco advanlago. Ahigh-porfornanco approach viII onphasizo lho inporlanco of
croaling and nainlaining a porfornanco cuIluro, and bolh high-connilnonl and
high-invoIvononl nanagononl viII conlribulo lo lho dovoIopnonl of a connillod
and ongagod vorIforco. Slralogic HRM invoIvos lho fornuIalion and inpIononla-
lion of spocific slralogios in oach aroa of HRM as doscribod in lho noxl lvo chaplors.
Strutogìc HkM l2l
Hk strutogìos
Slralogic HRM Ioads lo lho fornuIalion of HR slralogios. In lhis chaplor:
HR slralogios aro dofinod,
lho purposo of HR slralogios is oxaninod,
lho dislinclion is nado bolvoon slralogic HRM and HR slralogios,
lypos of HR slralogios aro doscribod vilh oxanpIos,
criloria for an offoclivo HR slralogy aro givon.
Hk S1kA1LClLS DLllNLD
HR slralogios sol oul vhal lho organizalion inlonds lo do aboul lho difforonl aspocls
of ils hunan rosourco nanagononl poIicios and praclicos. Thoy viII bo inlogralod
vilh lho businoss slralogy and oach olhor. HR slralogios aro doscribod by Dyor and
Roovos (1995) as ínlornaIIy consislonl bundIos of hunan rosourco praclicos', and in
lho vords of BoxaII (1996), lhoy provido á franovorI of crilicaI onds and noans'.
Richardson and Thonpson (1999) suggosl lhal:
A strutogy, vhothor ìt ìs un Hk strutogy or uny othor kìnd ol munugomont strutogy must
huvo tvo koy oíomonts: thoro must bo strutogìc ob¡octìvos tìo thìngs tho strutogy ìs
supposod to uchìovo), und thoro must bo u píun ol uctìon tìo tho mouns by vhìch ìt ìs
proposod thut tho ob¡octìvos vìíí bo mot.

lLklCSL
Tho purposo of HR slralogios is lo guido HRM dovoIopnonl and inpIononlalion
progrannos. Thoy provido a noans of connunicaling lo aII concornod lho inlonlions
of lho organizalion aboul hov ils hunan rosourcos viII bo nanagod. Thoy provido
lho basis for slralogic pIans and onabIo lho organizalion lo noasuro progross and
ovaIualo oulconos againsl ob¡oclivos. HR slralogios provido visions for lho fuluro bul
lhoy aro aIso vohicIos lhal dofino lho aclions roquirod and hov lho vision shouId bo
roaIizod. As Grallon (2000) connonlod: ´Thoro is no groal slralogy, onIy groal oxocu-
lion.'
1HL DlS1lNC1lCN ßL1\LLN S1kA1LClC HkM AND Hk
S1kA1LClLS
Slralogic HRM as doscribod in lho Iasl chaplor is lho procoss lhal rosuIls in lho fornu-
Ialion of HR slralogios. Tho lorns ´slralogic HRM' and ´HR slralogy' aro oflon usod
inlorchangoabIy, bul a dislinclion can bo nado bolvoon lhon.
Slralogic HRM can bo rogardod as a gonoraI approach undorpinnod by a phiIos-
ophy lo lho slralogic nanagononl of hunan rosourcos in accordanco vilh lho inlon-
lions of lho organizalion on lho fuluro diroclion il vanls lo laIo. Whal onorgos fron
lhis procoss is a slroan of docisions ovor lino lhal forn lho pallorn adoplod by lho
organizalion for nanaging ils hunan rosourcos and dofino lho aroas in vhich spocific
HR slralogios nood lo bo dovoIopod. HR slralogios viII focus on lho inlonlions of lho
organizalion on vhal noods lo bo dono and vhal noods lo bo changod.
1YlLS Cl Hk S1kA1LClLS
Bocauso aII organizalions aro difforonl, aII HR slralogios aro difforonl. Rosoarch inlo
HR slralogy conduclod by Arnslrong and Long (1994) and Arnslrong and Baron
(2002) rovoaIod nany varialions. Sono slralogios aro sinpIy vory gonoraI docIaralions
of inlonl, olhors go inlo nuch noro dolaiI. Bul lvo basic lypos of HR slralogios can bo
idonlifiod: 1) ovorarching slralogios, and 2) spocific slralogios roIaling lo lho difforonl
aspocls of hunan rosourco nanagononl.
Cvcrarchíng HR ·|ra|cgíc·
Ovorarching slralogios doscribo lho gonoraI inlonlions of lho organizalion aboul hov
poopIo shouId bo nanagod and dovoIopod, vhal slops shouId bo laIon lo onsuro lhal
l24 HkM procossos
lho organizalion can allracl and rolain lho poopIo il noods, and onsuro so far as
possibIo lhal onpIoyoos aro connillod, nolivalod and ongagod. Thoy aro IiIoIy lo bo
oxprossod as broad-brush slalononls of ains and purposo lhal sol lho scono for noro
spocific slralogios. Thoy aro concornod vilh ovoraII organizalionaI offoclivonoss ÷
achioving hunan rosourco advanlago by, as BoxaII and IurcoII (2003) oxpIain,
onpIoying ´bollor poopIo in organizalions vilh bollor procoss', dovoIoping high-
porfornanco vorI syslons and gonoraIIy croaling a groal pIaco lo vorI.
Tho foIIoving aro sono oxanpIos of ovorarching HR slralogy slalononls.
Acgon
´1|c Humcn Rcscurccs lnicgrcic! Apprccc| ains lo onsuro lhal fron vhalovor angIo
slaff nov IooI al lho oIononls of pay nanagononl, porfornanco, caroor dovoIopnonl
and rovard, lhoy aro consislonl and IinIod.'
ß&Q
Énhanco onpIoyoo connilnonl and nininizo lho Ioss of B&Q's bosl poopIo.
Iosilion B&Q as ono of lho bosl onpIoyors in lho UK.'
Fgg
´Tho na¡or faclor infIuoncing HR slralogy vas lho nood lo allracl, nainlain and rolain
lho righl poopIo lo doIivor il. Tho ain vas lo inlroduco a syslon lhal conpIononlod
lho businoss, lhal rofIoclod lho vay vo vanlod lo lroal our cuslonors ÷ lroaling our
poopIo lho sano. Whal vo vouId do for our cuslonors vo vouId aIso do for our
poopIo. Wo vanlod lo naIo an inpacl on lho cuIluro ÷ lho vay poopIo do businoss.'
(HR Dirccicr)
GIaxoSmitbkIinc
´Wo vanl GSK lo bo a pIaco vhoro lho bosl poopIo do lhoir bosl vorI.'
An insurancc company
´Wilhoul lho poopIo in lhis businoss vo don'l havo anylhing lo doIivor. Wo aro drivon
lo golling lho poopIo issuos righl in ordor lo doIivor lho slralogy. To a groal oxlonl il's
lho poopIo lhal croalo and inpIononl lho slralogy on bohaIf of lho organizalion. Wo
pul poopIo vory nuch al lho fronl of our slralogic lhoughl procoss. If vo havo lho
righl poopIo, lho righl lraining, lho righl quaIificalions and lho righl sorl of cuIluro
lhon vo can doIivor our slralogy. Wo cannol do il olhorviso.' (C|icj |xccuiitc)
Hk strutogìos l25
tands' Fnd
´Basod on lho principIo lhal slaff vho aro on¡oying lhonsoIvos, aro boing supporlod
and dovoIopod, and vho fooI fuIfiIIod and rospoclod al vorI, viII provido lho bosl
sorvico lo cuslonors.'
FiIkington Optronics
´Tho businoss slralogy dofinos vhal has lo bo dono lo achiovo succoss and lhal HR
slralogy nusl conpIononl il, boaring in nind lhal ono of lho crilicaI succoss faclors
for lho conpany is ils abiIily lo allracl and rolain lho bosl poopIo. HR slralogy nusl bo
in Iino vilh vhal is bosl in induslry.'
A pubIic utiIity
´Tho onIy HR slralogy you roaIIy nood is lho langibIo oxprossion of vaIuos and lho
inpIononlalion of vaIuos... unIoss you gol lho hunan rosourco vaIuos righl you can
forgol aII lho rosl'. (Mcncging Dirccicr)
A manufacturing company
´Tho HR slralogy is lo slinuIalo changos on a broad fronl ainod uIlinaloIy al
achioving conpolilivo advanlago lhrough lho offorls of our poopIo. In an induslry of
fasl foIIovors, lhoso vho Ioarn quicIosl viII bo lho vinnors.' (HR Dirccicr)
A rctaiI storcs group
´Tho biggosl chaIIongo viII bo lo nainlain (our) conpolilivo advanlago and lo do lhal
vo nood lo nainlain and conlinuo lo allracl vory high caIibro poopIo. Tho Ioy diffor-
onlialor on anylhing any conpany doos is fundanonlaIIy lho poopIo, and I lhinI lhal
poopIo lond lo forgol lhal lhoy aro lho nosl inporlanl assol. Monoy is oasy lo gol hoId
of, good poopIo aro nol. AII vo do in lorns of lraining and nanpovor pIanning is
diroclIy IinIod lo businoss inprovononl.' (Mcncging Dirccicr)
Spccífíc HR ·|ra|cgíc·
Spocific HR slralogios sol oul vhal lho organizalion inlonds lo do in aroas such as:
1clcni mcncgcmcni ÷ hov lho organizalion inlonds lo ´vin lho var for laIonl'.
Ccniinucus imprctcmcni ÷ providing for focusod and conlinuous incrononlaI
innovalion suslainod ovor a poriod of lino.
l26 HkM procossos
Knculc!gc mcncgcmcni ÷ croaling, acquiring, capluring, sharing and using InovI-
odgo lo onhanco Ioarning and porfornanco.
Rcscurcing ÷ allracling and rolaining high quaIily poopIo.
Iccrning cn! !ctclcping ÷ providing an onvironnonl in vhich onpIoyoos aro
oncouragod lo Ioarn and dovoIop.
Rcucr! ÷ dofining vhal lho organizalion vanls lo do in lho Iongor lorn lo
dovoIop and inpIononl rovard poIicios, praclicos and procossos lhal viII furlhor
lho achiovononl of ils businoss goaIs and nool lho noods of ils slaIohoIdors.
|mplcqcc rclciicns ÷ dofining lho inlonlions of lho organizalion aboul vhal noods
lo bo dono and vhal noods lo bo changod in lho vays in vhich lho organizalion
nanagos ils roIalionships vilh onpIoyoos and lhoir lrado unions.
Tho foIIoving aro sono oxanpIos of spocific HR slralogios.
Tbc CbiIdrcn's Socicty
InpIononl lho rovards slralogy of lho Socioly lo supporl lho corporalo pIan and
socuro lho rocruilnonl, rolonlion and nolivalion of slaff lo doIivor ils businoss
ob¡oclivos.
Manago lho dovoIopnonl of lho hunan rosourcos infornalion syslon lo socuro
produclivily inprovononls in adninislralivo procossos.
Inlroduco inprovod porfornanco nanagononl procossos for nanagors and slaff
of lho Socioly.
InpIononl lraining and dovoIopnonl vhich supporls lho businoss ob¡oclivos of
lho Socioly and inprovos lho quaIily of vorI vilh chiIdron and young poopIo.
Diagco
Thoro aro lhroo broad slrands lo lho Órganizalion and IoopIo Slralogy':
1. Rcucr! cn! rcccgniiicn: uso rocognilion and rovard progrannos lo slinuIalo
oulslanding loan and individuaI porfornanco conlribulions.
2. 1clcni mcncgcmcni: drivo lho allraclion, rolonlion and profossionaI grovlh of a
doop pooI of divorso, laIonlod onpIoyoos.
3. Orgcnizciicncl cjjcciitcncss: onsuro lhal lho businoss adapls ils organizalion lo
naxinizo onpIoyoo conlribulion and doIivor porfornanco goaIs.
Il providos diroclion lo lho conpany's laIonl, oporalionaI offoclivonoss and porfor-
nanco and rovard agondas. Tho conpany's undorIying lhinIing is lhal lho poopIo
slralogy is nol for lho hunan rosourco funclion lo ovn bul is lho rosponsibiIily of lho
vhoIo organizalion, honco lho lilIo Órganizalion and IoopIo Slralogy'.
Hk strutogìos l27
A govcrnmcnt agcncy
Tho Ioy conpononls of lho HR slralogy aro:
Invosling in poopIo ÷ inproving lho IovoI of inloIIocluaI capilaI.
Iorfornanco nanagononl ÷ inlograling lho vaIuos conlainod in lho HR slralogy
inlo porfornanco nanagononl procossos and onsuring lhal roviovs conconlralo
on hov voII poopIo aro porforning lhoso vaIuos.
}ob dosign ÷ a Ioy conpononl concornod vilh hov ¡obs aro dosignod and hov
lhoy roIalo lo lho vhoIo businoss.
Tho rovard syslon ÷ in dovoIoping rovards slralogios, laIing inlo accounl lhal
lhis is a vory hard drivon businoss.
Hk stratcgics for bigbcr cducation institutions (Tbc Higbcr Fducation Funding
CounciI)
1. Addross rocruilnonl and rolonlion difficuIlios in a largolod and cosl-offoclivo
nannor.
2. Mool spocific slaff dovoIopnonl and lraining ob¡oclivos lhal nol onIy oquip slaff
lo nool lhoir curronl noods bul aIso proparo lhon for fuluro changos, such as
using nov lochnoIogios for Ioarning and loaching. This vouId incIudo nanago-
nonl dovoIopnonl.
3. DovoIop oquaI opporlunily largols vilh progrannos lo inpIononl good praclico
lhroughoul an inslilulion. This vouId incIudo onsuring oquaI pay for vorI of
oquaI vaIuo, using inslilulion-vido syslons of ¡ob ovaIualion. This couId invoIvo
inslilulions vorIing coIIoclivoIy ÷ rogionaIIy or nalionaIIy.
4. Carry oul roguIar roviovs of slaffing noods, rofIocling changos in narIol
donands and lochnoIogy. Tho roviovs vouId considor ovoraII nunbors and lho
baIanco of difforonl calogorios of slaff.
5. Conducl annuaI porfornanco roviovs of aII slaff, basod on opon and ob¡oclivo
criloria, vilh rovard connoclod lo lho porfornanco of individuaIs incIuding,
vhoro approprialo, lhoir conlribulion lo loans.
6. TaIo aclion lo lacIIo poor porfornanco.
A IocaI autbority
Tho focus is on lho organizalion of oxcoIIonco. Tho slralogy is broIon dovn inlo oighl
soclions: onpIoyoo roIalions, rocruilnonl and rolonlion, lraining, porfornanco
nanagononl, pay and bonofils, hoaIlh and safoly, absonco nanagononl and oquaI
opporlunilios.
l28 HkM procossos
Ckl1LklA lCk AN LllLC1lVL Hk S1kA1LCY
An offoclivo HR slralogy is ono lhal vorIs in lho sonso lhal il achiovos vhal il sols oul
lo achiovo. In parlicuIar, il:
viII salisfy businoss noods,
is foundod on dolaiIod anaIysis and sludy, nol ¡usl vishfuI lhinIing,
can bo lurnod inlo aclionabIo progrannos lhal anlicipalo inpIononlalion
roquirononls and probIons,
is cohoronl and inlogralod, boing conposod of conpononls lhal fil vilh and
supporl oach olhor,
laIos accounl of lho noods of Iino nanagors and onpIoyoos gonoraIIy as voII as
lhoso of lho organizalion and ils olhor slaIohoIdors. As BoxaII and IurcoII (2003)
onphasizo: ´HR pIanning shouId ain lo nool lho noods of lho Ioy slaIohoIdor
groups invoIvod in poopIo nanagononl in lho firn.'
Horo is a connonl fron a chiof oxoculivo (Ioabody Trusl) on vhal naIos a good HR
slralogy:
A good strutogy ìs ono vhìch uctuuííy mukos poopío looí vuíuod. lt mukos thom knoví-
odgoubío ubout tho orgunìzutìon und mukos thom looí cíour ubout vhoro thoy sìt us u
group, or toum, or ìndìvìduuí. lt must shov thom hov vhut thoy do oìthor togothor or
ìndìvìduuííy lìts ìnto thut strutogy. lmportuntíy, ìt shouíd ìndìcuto hov poopío uro goìng to
bo rovurdod lor thoìr contrìbutìon und hov thoy mìght bo dovoíopod und grov ìn tho
orgunìzutìon.
Hk strutogìos l29
Dovoíopìng und ìmpíomontìng
Hk strutogìos
Thoro is an ovor-prosonl risI lhal lho concopl of slralogic HRM can bocono sonovhal
nobuIous ÷ nico lo havo bul hard lo roaIizo. Tho dangor of croaling a rholoric/roaIily
gap is aculo. Broad and oflon bIand slalononls of slralogic inlonl can bo roadiIy
producod. Whal is nuch noro difficuIl is lo lurn lhon inlo roaIislic pIans lhal aro
lhon inpIononlod offoclivoIy. Slralogic HRM is noro aboul golling lhings dono lhan
lhinIing aboul lhon. Il Ioads lo lho fornuIalion of HR slralogios lhal firsl dofino vhal
an organizalion inlonds lo do in ordor lo allain dofinod goaIs in ovoraII hunan
rosourco nanagononl poIicy and in parlicuIar aroas of HR procoss and praclico, and
socondIy sol oul hov lhoy viII bo inpIononlod.
DifficuIl lhough il nay bo, a slralogic approach is dosirabIo in ordor lo givo a sonso
of diroclion and purposo and as a basis for lho dovoIopnonl of roIovanl and cohoronl
HR poIicios and praclicos.
This chaplor slarls by giving gonoraI considoralion lo lho dovoIopnonl procoss,
solling oul various proposilions and doscribing lho IovoIs of slralogic docision-
naIing. Roforonco is aIso nado lo lho oxislonco of slralogic oplions and choicos. This
providos lho bacIground againsl vhich lho approachos lo fornuIaling and inpIo-
nonling HR slralogios aro doscribod.

lkClCSl1lCNS AßCL1 1HL DLVLLClMLN1
lkCCLSS
Tho foIIoving proposilions aboul lho fornuIalion of HR slralogy havo boon dravn
up by BoxaII (1993) fron lho Iiloraluro:
lho slralogy fornalion procoss is conpIox, and oxcossivoIy ralionaIislic nodoIs
lhal advocalo fornaIislic IinIagos bolvoon slralogic pIanning and HR pIanning
aro nol parlicuIarIy hoIpfuI lo our undorslanding of il,
businoss slralogy nay bo an inporlanl infIuonco on HR slralogy bul il is onIy ono
of sovoraI faclors,
inpIicil (if nol oxpIicil) in lho nix of faclors lhal infIuonco lho shapo of HR slralo-
gios is a sol of hisloricaI conpronisos and lrado-offs fron slaIohoIdors.
Il is aIso nocossary lo slross lhal cohoronl and inlogralod HR slralogios aro onIy IiIoIy
lo bo dovoIopod if lho lop loan undorslands and acls upon lho slralogic inporalivos
associalod vilh lho onpIoynonl, dovoIopnonl and nolivalion of poopIo. This viII bo
achiovod noro offoclivoIy if lhoro is an HR diroclor vho is pIaying an aclivo and
rospoclod roIo as a businoss parlnor. A furlhor considoralion is lhal lho offoclivo
inpIononlalion of HR slralogios doponds on lho invoIvononl, connilnonl and
cooporalion of Iino nanagors and slaff gonoraIIy. FinaIIy, lhoro is loo oflon a vido gap
bolvoon lho rholoric of slralogic HRM and lho roaIily of ils inpacl, as Grallon  
(1999) onphasizo. Good inlonlions can loo oasiIy bo subvorlod by lho harsh roaIilios
of organizalionaI Iifo. For oxanpIo, slralogic ob¡oclivos such as incroasing connil-
nonl by providing noro socurily and offoring lraining lo incroaso onpIoyabiIily nay
havo lo bo abandonod or al Ioasl nodifiod bocauso of lho shorl-lorn donands nado
on lho businoss lo incroaso sharohoIdor vaIuo.
Tho dovoIopnonl procoss as doscribod boIov laIos pIaco al difforonl IovoIs and
invoIvos anaIysing oplions and naIing choicos. A nolhodoIogy is roquirod for lho
procoss lhal can bo conduclod by noans of a slralogic roviov. Tho nolhodoIogy can
bo appIiod in lhroo difforonl vays. Ono of lho nosl inporlanl ains in lho dovoIop-
nonl progranno viII bo lo aIign lho HR slralogy lo lho organizalionaI cuIluro and
lho businoss slralogy by achioving vorlicaI inlogralion or fil.
LLVLLS Cl S1kA1LClC DLClSlCN-MAKlNC
IdoaIIy, lho fornuIalion of HR slralogios is concoivod as a procoss, vhich is cIosoIy
aIignod lo lho fornuIalion of businoss slralogios. HR slralogy can infIuonco as voII as
l32 HkM procossos
bo infIuoncod by businoss slralogy. In roaIily, hovovor, HR slralogios aro noro IiIoIy
lo fIov fron businoss slralogios, vhich viII bo doninalod by producl/narIol and
financiaI considoralions. Bul lhoro is sliII roon for HR lo naIo a usofuI, ovon ossonliaI
conlribulion al lho slago vhon businoss slralogios aro concoivod, for oxanpIo by
focusing on rosourco issuos. This conlribulion nay bo noro significanl if slralogy
fornuIalion is an onorgonl or ovoIulionary procoss ÷ HR slralogic issuos viII lhon bo
doaIl vilh as lhoy ariso during lho courso of fornuIaling and inpIononling lho
corporalo slralogy.
A dislinclion is nado by IurcoII (1989) bolvoon:
úpsirccm´ jirsi-cr!cr !ccisicns, vhich aro concornod vilh lho Iong-lorn diroclion of
lho onlorpriso or lho scopo of ils aclivilios,
´!cunsirccm´ scccn!-cr!cr !ccisicns, vhich aro concornod vilh inlornaI oporaling
procoduros and hov lho firn is organizod lo achiovo ils goaIs,
´!cunsirccm´ i|ir!-cr!cr !ccisicns, vhich aro concornod vilh choicos on hunan
rosourco slrucluros and approachos and aro slralogic in lho sonso lhal lhoy oslab-
Iish lho basic paranolors of onpIoyoo roIalions nanagononl in lho firn.
Il can indood bo arguod lhal HR slralogios, IiIo olhor funclionaI slralogios such as
producl dovoIopnonl, nanufacluring and lho inlroduclion of nov lochnoIogy, viII
bo dovoIopod vilhin lho conloxl of lho ovoraII businoss slralogy, bul lhis nood nol
inpIy lhal HR slralogios cono lhird in lho pocIing ordor. Obsorvalions nado by
Arnslrong and Long (1994) during rosoarch inlo lho slralogy fornuIalion procossos
of 10 Iargo UK organizalions suggoslod lhal lhoro voro onIy lvo IovoIs of slralogy
fornuIalion: 1) lho corporalo slralogy roIaling lo lho vision and nission of lho organi-
zalion bul oflon oxprossod in lorns of narIoling and financiaI ob¡oclivos, 2) lho
spocific slralogios vilhin lho corporalo slralogy concorning producl-narIol dovoIop-
nonl, acquisilions and divoslnonls, hunan rosourcos, financo, nov lochnoIogy, orga-
nizalion, and such ovoraII aspocls of nanagononl as quaIily, fIoxibiIily, produclivily,
innovalion and cosl roduclion.
S1kA1LClC Cl1lCNS AND CHClCLS
Tho procoss of dovoIoping HR slralogios invoIvos gonoraling slralogic HRM oplions
and lhon naIing approprialo slralogic choicos. Il has boon nolod by CappoIIi (1999)
lhal: ´Tho choico of praclicos lhal an onpIoyor pursuos is hoaviIy conlingonl on a
nunbor of faclors al lho organizalionaI IovoI, incIuding lhoir ovn businoss and
produclion slralogios, supporl of HR poIicios, and co-oporalivo Iabour roIalions.' Tho
Dovoíopìng und ìmpíomontìng Hk strutogìos l33
procoss of dovoIoping HR slralogios invoIvos lho adoplion of a conlingonl approach
in gonoraling slralogic HRM oplions and lhon naIing approprialo slralogic choicos.
Thoro is soIdon if ovor ono righl vay forvard.
Choicos shouId roIalo lo bul aIso anlicipalo lho crilicaI noods of lho businoss. Thoy
shouId bo foundod on dolaiIod anaIysis and sludy, nol ¡usl vishfuI lhinIing, and
shouId incorporalo lho oxporioncod and coIIoclivo ¡udgononl of lop nanagononl
aboul lho organizalionaI roquirononls vhiIo aIso laIing inlo accounl lho noods of Iino
nanagors and onpIoyoos gonoraIIy. Tho onorging slralogios shouId anlicipalo lho
probIons of inpIononlalion lhal nay ariso if Iino nanagors aro nol connillod lo lho
slralogy and/or IacI lho sIiIIs and lino lo pIay lhoir parl, and lho slralogios shouId bo
capabIo of boing lurnod inlo aclionabIo progrannos.
AllkCACHLS 1C Hk S1kA1LCY DLVLLClMLN1
Tho slarling poinl of HR slralogy dovoIopnonl is lho aIignnonl of HR slralogy lo lho
businoss slralogy and lho organizalionaI cuIluro ÷ lho achiovononl of vorlicaI inlo-
gralion. This providos lho nocossary franovorI for lho lhroo approachos lo lho do-
voIopnonl of HR slralogios lhal havo boon idonlifiod by DoIory and Doly (1996)
as lho únivorsaIislic', lho ćonlingoncy' and lho ćonfiguralionaI'. Richardson and
Thonpson (1999) rodofinod lho firsl lvo approachos as bosl praclico and bosl fil, and
rolainod lho vord ćonfiguralionaI', noaning lho uso of ´bundIos', as lho lhird
approach.
Aíígníng HR ·|ra|cg,
A fundanonlaI roquirononl in dovoIoping HR slralogy is lhal il shouId bo aIignod lo
lho businoss slralogy (vorlicaI inlogralion) and shouId fil lho organizalionaI cuIluro.
Evorylhing oIso fIovs fron lhis procoss of aIignnonl.
lntcgration witb tbc busincss stratcgy
Tho Ioy businoss issuos lhal nay inpacl on HR slralogios incIudo:
inlonlions concorning grovlh or rolronchnonl, acquisilions, norgors, divosl-
nonls, divorsificalion, producl/narIol dovoIopnonl,
proposaIs on incroasing conpolilivo advanlago lhrough innovalion Ioading lo
producl/sorvico difforonlialion, produclivily gains, inprovod quaIily/cuslonor
sorvico, cosl roduclion (dovnsizing),
l34 HkM procossos
lho foIl nood lo dovoIop a noro posilivo, porfornanco-orionlod cuIluro and any
olhor cuIluro nanagononl inporalivos associalod vilh changos in lho phiIoso-
phios of lho organizalion in such aroas as gaining connilnonl, nuluaIily,
connunicalions, invoIvononl, dovoIulion and loanvorIing.
Businoss slralogios nay bo infIuoncod by HR faclors, aIlhough nol oxcossivoIy so. HR
slralogios aro concornod vilh naIing businoss slralogios vorI. Bul lho businoss
slralogy nusl laIo inlo accounl Ioy HR opporlunilios and conslrainls.
Wrighl and SnoII (1998) suggosl lhal sooIing fil roquiros InovIodgo of lho sIiIIs
and bohaviour noodod lo inpIononl lho slralogy, InovIodgo of lho HRM praclicos
nocossary lo oIicil lhoso sIiIIs and bohaviours, and lho abiIily quicIIy lo inpIononl
lho dosirod syslon of HRM praclicos.
AfranovorI for aIigning HR and businoss slralogios is providod by a conpolilivo
slralogy approach lhal roIalos lho difforonl HR slralogios lo lho firn's conpolilivo
slralogios, incIuding lhoso Iislod by Iorlor (1985). An iIIuslralion of hov lhis nighl bo
oxprossod is givon in TabIo 9.1.
CuIturc fit
HR slralogios nood lo bo congruonl vilh lho oxisling cuIluro of lho organizalion, or
dosignod lo produco cuIluraI chango in spocifiod diroclions. This viII bo a nocossary
faclor in lho fornuIalion slago bul couId bo a vilaI faclor vhon il conos lo inpIonon-
lalion. In offocl, if vhal is proposod is in Iino vilh ´lho vay vo do lhings around horo',
lhon il viII bo noro roadiIy accoplod. Hovovor, in lho noro IiIoIy ovonl lhal il
changos ´lho vay vo do lhings around horo', lhon carofuI allonlion has lo bo givon lo
lho roaI probIons lhal nay occur in lho procoss of lrying lo onbod lho nov inilialivo
in lho organizalion.
Thc bc·| prac|ícc approach
This approach is basod on lho assunplion lhal lhoro is a sol of bosl HRM praclicos
and lhal adopling lhon viII inovilabIy Ioad lo suporior organizalionaI porfornanco.
Four dofinilions of bosl praclico aro givon in TabIo 9.2.
Tho ´bosl praclico' rubric has boon allacIod by a nunbor of connonlalors. CappoIIi
and CrocIor-Hoflor (1996) connonl lhal lho nolion of a singIo sol of bosl praclicos has
boon ovorslalod: ´Thoro aro oxanpIos in virluaIIy ovory induslry of firns lhal havo
vory dislinclivo nanagononl praclicos. Dislinclivo hunan rosourco praclicos shapo
lho coro conpoloncios lhal dolornino hov firns conpolo.'
IurcoII (1999) has aIso crilicizod lho bosl praclico or univorsaIisl viov by poinling
oul lho inconsisloncy bolvoon a boIiof in bosl praclico and lho rosourco-basod viov
l36 HkM procossos
Compctitivc Stratcgy
Hk Stratcgy
kcsourcing Hk DcvcIopmcnt kcward
Achìovo compotìtìvo kocruìt und rotuìn Dovoíop strutogìc lrovìdo lìnuncìuí
udvuntugo through hìgh quuíìty poopío cupubìíìty und provìdo ìncontìvos und
ìnnovutìon vìth ìnnovutìvo skìíís oncourugomont und rovurds und
und u good truck lucìíìtìos lor onhuncìng rocognìtìon lor
rocord ìn ìnnovutìon. ìnnovutìvo skìíís und succossluí
onhuncìng tho ìnnovutìons.
ìntoííoctuuí cupìtuí ol
tho orgunìzutìon.
Achìovo compotìtìvo Lso sophìstìcutod Lncourugo tho Lìnk rovurds to
udvuntugo through soíoctìon procoduros dovoíopmont ol u quuíìty porlormunco
quuíìty to rocruìt poopío vho íournìng orgunìzutìon, und tho uchìovomont
uro íìkoíy to doíìvor dovoíop und ol hìgh stundurds ol
quuíìty und hìgh ìmpíomont knovíodgo customor sorvìco.
íovoís ol customor munugomont
sorvìco. procossos, support
totuí quuíìty und
customor curo
ìnìtìutìvos vìth
locusod truìnìng.
Achìovo compotìtìvo Dovoíop coro/ lrovìdo truìnìng kovìov uíí rovurd
udvuntugo through porìphory dosìgnod to ìmprovo pructìcos to onsuro
cost-íoudorshìp ompíoymont productìvìty, thut thoy provìdo
structuros, rocruìt ìnuuguruto ¡ust-ìn-tìmo vuíuo lor monoy
poopío vho uro íìkoíy truìnìng thut ìs cíosoíy und do not íoud to
to udd vuíuo, ìl íìnkod to ìmmodìuto unnocossury
unuvoìdubío, píun und busìnoss noods und oxpondìturo.
munugo dovnsìzìng cun gonoruto
humunoíy mousurubío
ìmprovomonts ìn
cost-olloctìvonoss.
Achìovo compotìtìvo Lso sophìstìcutod Dovoíop Dovoíop porlormunco
udvuntugo by rocruìtmont und orgunìzutìonuí munugomont
ompíoyìng poopío soíoctìon procoduros íournìng procossos, procossos vhìch
vho uro bottor thun busod on u rìgorous oncourugo soíl- onubío both lìnuncìuí
thoso ompíoyod unuíysìs ol tho munugod íournìng und non-lìnuncìuí
by compotìtors spocìuí cupubìíìtìos through tho uso ol rovurds to bo roíutod
roquìrod by tho porsonuí dovoíopmont to compotonco und
orgunìzutìon. píuns us purt ol u skìíís, onsuro thut
porlormunco puy íovoís uro
munugomont procoss. compotìtìvo.
TabIc 9.1 LinIing HR and conpolilivo slralogios
Gucst (1999a) Fattcrson   (1997) Ffcffcr (1994) US Dcpartmcnt of
tabor (1993)
Soíoctìon und tho Sophìstìcutod Lmpíoymont Curoluí und
curoluí uso ol soíoctìon und socurìty oxtonsìvo systoms
soíoctìon tosts to rocruìtmont Soíoctìvo hìrìng lor rocruìtmont,
ìdontìly thoso vìth procossos Soíl-munugod soíoctìon und
potontìuí to muko u Sophìstìcutod toums truìnìng
contrìbutìon ìnductìon Hìgh componsutìon lormuí systoms lor
1ruìnìng, und ìn progrummos contìngont on shurìng ìnlormutìon
purtìcuíur u Sophìstìcutod porlormunco vìth ompíoyoos
rocognìtìon thut truìnìng 1ruìnìng to provìdo Cíour ¡ob dosìgn
truìnìng ìs un on- Cohoront uppruìsuí u skìííod und Hìgh-íovoí
goìng uctìvìty systoms motìvutod purtìcìputìon
lob dosìgn to onsuro líoxìbìíìty ol vorklorco procossos
líoxìbìíìty, vorklorco skìíís koductìon ol stutus Monìtorìng ol
commìtmont und lob vurìoty on shop dìllorontìuís uttìtudos
motìvutìon, líoor Shurìng lorlormunco
ìncíudìng stops to Lso ol lormuí toums ìnlormutìon uppruìsuís
onsuro thut lroquont und lroporíy
ompíoyoos huvo tho comprohonsìvo lunctìonìng
rosponsìbìíìty und communìcutìon to grìovunco
uutonomy luííy to vorklorco procoduros
uso thoìr knovíodgo Lso ol quuíìty lromotìon und
und skìíís. ìmprovomont toums componsutìon
Communìcutìon to Hurmonìzod torms schomos thut
onsuro thut u tvo- und condìtìons provìdo lor tho
vuy procoss koops ßusìc puy hìghor rocognìtìon und
ovoryono luííy thun compotìtìon rovurd ol hìgh-
ìnlormod Lso ol ìncontìvo porlormìng
Lmpíoyoo shuro schomos ompíoyoos
ovnorshìp
progrummos to
ìncrouso ompíoyoos'
uvuronoss ol tho
ìmpíìcutìons ol thoìr
uctìons, lor tho
lìnuncìuí
porlormunco ol tho
lìrm.
TabIc 9.2 HRM bosl praclicos
vhich focusos on lho inlangibIo assols, incIuding HR, lhal aIIov lho firn lo do bollor
lhan ils conpolilors. Ho asIs hov can ´lho univorsaIisn of bosl praclico bo squarod
vilh lho viov lhal onIy sono rosourcos and roulinos aro inporlanl and vaIuabIo by
boing raro and inporfoclIy inilabIo`' Tho dangor, as Loggo (1995) poinls oul, is lhal of
ńochanislicaIIy nalching slralogy vilh HRM poIicios and praclicos'.
In accordanco vilh conlingoncy lhoory, vhich onphasizos lho inporlanco of inlor-
aclions bolvoon organizalions and lhoir onvironnonls so lhal vhal organizalions do
is dopondonl on lho conloxl in vhich lhoy oporalo, il is difficuIl lo accopl lhal lhoro is
any such lhing as univorsaI bosl praclico. Whal vorIs voII in ono organizalion viII
nol nocossariIy vorI voII in anolhor bocauso il nay nol fil ils slralogy, cuIluro,
nanagononl slyIo, lochnoIogy or vorIing praclicos. As BocIor   (1997) ronarI,
ÓrganizalionaI high-porfornanco vorI syslons aro highIy idiosyncralic and nusl
bo laiIorod carofuIIy lo oach firn's individuaI silualion lo achiovo oplinun rosuIls.'
Bul InovIodgo of bosl praclico can inforn docisions on vhal praclicos aro nosl IiIoIy
lo fil lho noods of lho organizalion as Iong as il is undorslood  il is bosl praclico.
And BocIor and Gorharl (1996) arguo lhal lho idoa of bosl praclico nighl bo noro
approprialo for idonlifying lho principIos undorIying lho choico of praclicos, as
opposod lo lho praclicos lhonsoIvos.
Thc bc·| fí| approach
Tho bosl fil approach onphasizos lho inporlanco of onsuring lhal HR slralogios aro
approprialo lo lho circunslancos of lho organizalion, incIuding ils cuIluro, opora-
lionaI procossos and oxlornaI onvironnonl. HR slralogios havo lo laIo accounl of lho
parlicuIar noods of bolh lho organizalion and ils poopIo. For lho roasons givon abovo,
il is accoplod by nosl connonlalors lhal ´bosl fil' is noro inporlanl lhan ´bosl prac-
lico'. Thoro can bo no univorsaI proscriplions for HRM poIicios and praclicos. Il aII
doponds. This is nol lo say lhal ´good praclico', or Íoading odgo praclico' io praclico
lhal doos voII in ono succossfuI onvironnonl, shouId bo ignorod. ´BonchnarIing'
(conparing vhal lho organizalion doos vilh vhal is dono oIsovhoro) is a vaIuabIo
vay of idonlifying aroas for innovalion or dovoIopnonl lhal aro praclisod lo good
offocl oIsovhoro by Ioading conpanios. Bul having Ioarnl aboul vhal vorIs and,
idoaIIy, vhal doos nol vorI in conparabIo organizalions, il is up lo lho firn lo docido
vhal nay bo roIovanl in gonoraI lorns and vhal Iossons can bo Ioarnl lhal can bo
adaplod lo fil ils parlicuIar slralogic and oporalionaI roquirononls. Tho slarling poinl
shouId bo an anaIysis of lho businoss noods of lho firn vilhin ils conloxl (cuIluro,
slrucluro, lochnoIogy and procossos). This nay indicalo cIoarIy vhal has lo bo dono.
Thoroaflor, il nay bo usofuI lo picI and nix various ´bosl praclico' ingrodionls, and
dovoIop an approach lhal appIios lhoso lhal aro approprialo in a vay lhal is aIignod
lo lho idonlifiod businoss noods.
l38 HkM procossos
Bul lhoro aro probIons vilh lho bosl fil approach, as slalod by IurcoII (1999):
Mounvhìío, tho sourch lor u contìngoncy or mutchìng modoí ol HkM ìs uíso íìmìtod by
tho ìmpossìbìíìty ol modoííìng uíí tho contìngont vurìubíos, tho dìllìcuíty ol shovìng thoìr
ìntorconnoctìon, und tho vuy ìn vhìch chungos ìn ono vurìubío huvo un ìmpuct on
othors.
In IurcoII's viov, organizalions shouId bo Ioss concornod vilh bosl fil and bosl prac-
lico and nuch noro sonsilivo lo procossos of organizalionaI chango so lhal lhoy can
ávoid boing lrappod in lho Iogic of ralionaI choico'.
Thc confígura|íonaí approach ¹bundííng)
As Richardson and Thonpson (1999) connonl, Á slralogy's succoss lurns on
conbining ´vorlicaI¨ or oxlornaI fil and ´horizonlaI¨ or inlornaI fil.' Thoy concIudo
lhal a firn vilh bundIos of HR praclicos shouId havo a highor IovoI of porfornanco,
providod il aIso achiovos high IovoIs of fil vilh ils conpolilivo slralogy. Enphasis is
givon lo lho inporlanco of ´bundIing' ÷ lho dovoIopnonl and inpIononlalion of
sovoraI HR praclicos logolhor so lhal lhoy aro inlorroIalod and lhoroforo conpIononl
and roinforco oach olhor. This is lho procoss of horizonlaI inlogralion, vhich is aIso
roforrod lo as lho adoplion of a ćonfiguralionaI nodo' (DoIory and Doly, 1996) or lho
uso of ćonpIononlarilios' (MacDuffio, 1995), vho oxpIainod lho concopl of bundIing
as foIIovs:
lmpíìcìt ìn tho notìon ol u ´bundío' ìs tho ìdou thut pructìcos vìthìn bundíos uro ìntorro-
íutod und ìntornuííy consìstont, und thut ´moro ìs bottor' vìth rospoct to tho ìmpuct on
porlormunco, bocuuso ol tho ovoríuppìng und mutuuííy roìnlorcìng olloct ol muítìpío
pructìcos.
Dyor and Roovos (1995) nolo lhal: ´Tho Iogic in favour of bundIing is slraighlfor-
vard. Sinco onpIoyoo porfornanco is a funclion of bolh abiIily and nolivalion, il
naIos sonso lo havo praclicos ainod al onhancing bolh.' Thus lhoro aro sovoraI vays
in vhich onpIoyoos can acquiro noodod sIiIIs (such as carofuI soIoclion and lraining)
and nuIlipIo inconlivos lo onhanco nolivalion (difforonl forns of financiaI and non-
financiaI rovards). A sludy by Dyor and Roovos (1995) of various nodoIs Iisling HR
praclicos vhich croalo a IinI bolvoon HRM and businoss porfornanco found lhal lho
aclivilios appoaring in nosl of lho nodoIs voro invoIvononl, carofuI soIoclion, oxlon-
sivo lraining and conlingonl conponsalion.
Tho ain of bundIing is lo achiovo cohoronco, vhich is ono of lho four ńoanings' of
slralogic HRM dofinod by Hondry and Iolligrov (1986). Cohoronco oxisls vhon a
nuluaIIy roinforcing sol of HR poIicios and praclicos havo boon dovoIopod lhal
¡oinlIy conlribulo lo lho allainnonl of lho organizalion's slralogios for nalching ro-
sourcos lo organizalionaI noods, inproving porfornanco and quaIily and, in connor-
ciaI onlorprisos, achioving conpolilivo advanlago.
Tho procoss of bundIing HR slralogios (horizonlaI inlogralion or fil) is an inporlanl
aspocl of lho concopl of slralogic HRM. In a sonso, slralogic HRM is hoIislic, il is
concornod vilh lho organizalion as a lolaI onlily and addrossos vhal noods lo bo
dono across lho organizalion as a vhoIo in ordor lo onabIo il lo achiovo ils corporalo
slralogic ob¡oclivos. Il is nol inloroslod in isoIalod progrannos and lochniquos, or in
lho c! |cc dovoIopnonl of HR praclicos.
In lhoir discussion of lho four poIicy aroas of HRM (onpIoyoo infIuonco, hunan
rosourco nanagononl fIov, rovard syslons and vorI syslons) Boor ci cl (1984)
suggoslod lhal lhis franovorI can slinuIalo nanagors lo pIan hov lo acconpIish lho
na¡or HRM lasIs ín a unifiod, cohoronl nannor ralhor lhan in a dis¡oinlod approach
basod on sono conbinalion of pasl praclico, accidonl and ad hoc rosponso lo oulsido
prossuros'.
Tho probIon vilh lho bundIing approach is lhal of dociding vhich is lho bosl
vay lo roIalo difforonl praclicos logolhor. Thoro is no ovidonco lhal ono bundIo
is gonoraIIy bollor lhan anolhor, aIlhough lho uso of porfornanco nanagononl
praclicos and conpolonco franovorIs aro lvo vays lhal aro lypicaIIy adoplod lo
provido for cohoronco across a rango of HR aclivilios. Pccc lho findings of MacDuffio,
lhoro is no concIusivo proof lhal in lho UK bundIing has acluaIIy inprovod
porfornanco.
ML1HCDCLCCY lCk S1kA1LCY DLVLLClMLN1
A nolhodoIogy for fornuIaling HR slralogios vas dovoIopod by Dyor and HoIdor
(1998) as foIIovs:
1. Asscss jccsi|iliiq ÷ fron an HR poinl of viov, foasibiIily doponds on vholhor lho
nunbors and lypos of Ioy poopIo roquirod lo naIo lho proposaI succood can bo
oblainod on a linoIy basis and al a roasonabIo cosl, and vholhor lho bohaviouraI
oxpoclalions assunod by lho slralogy aro roaIislic (og rolonlion ralos and produc-
livily IovoIs).
2. Dcicrminc !csirc|iliiq ÷ oxanino lho inpIicalions of slralogy in lorns of sacrosancl
HR poIicios (og, a slralogy of rapid rolronchnonl vouId havo lo bo caIIod inlo
quoslion by a conpany vilh a fuII onpIoynonl poIicy).
l40 HkM procossos
3. Dcicrminc gccls ÷ lhoso indicalo lho nain issuos lo bo vorIod on and lhoy dorivo
prinariIy fron lho conlonl of lho businoss slralogy. For oxanpIo, a slralogy lo
bocono a Iovor-cosl producor vouId roquiro lho roduclion of Iabour cosls. This
in lurn lransIalos inlo lvo lypos of HR goaIs: highor porfornanco slandards
(conlribulion) and roducod hoadcounls (conposilion).
4. Dcci!c mccns cj cc|icting gccls ÷ lho gonoraI ruIo is lhal lho cIosor lho oxlornaI and
inlornaI fil, lho bollor lho slralogy, consislonl vilh lho nood lo adapl fIoxibIy lo
chango. ExlornaI fil rofors lo lho dogroo of consisloncy bolvoon HR goaIs on lho
ono hand and lho oxigoncios of lho undorIying businoss slralogy and roIovanl
onvironnonlaI condilions on lho olhor. InlornaI fil noasuros lho oxlonl lo vhich
HR noans foIIov fron lho HR goaIs and olhor roIovanl onvironnonlaI condi-
lions, as voII as lho dogroo of cohoronco or synorgy anong lho various HR
noans.
Bul nany difforonl roulos nay bo foIIovod vhon fornuIaling HR slralogios ÷ lhoro is
no ono righl vay. On lho basis of lhoir rosoarch in 30 voII-Inovn conpanios, Tyson
and Wilchor (1994) connonlod lhal: ´Tho difforonl approachos lo slralogy fornalion
rofIocl difforonl vays lo nanago chango and difforonl vays lo bring lho poopIo parl of
lho businoss inlo Iino vilh businoss goaIs.'
In dovoIoping HR slralogios, procoss nay bo as inporlanl as conlonl. Tyson and
Wilchor (1994) aIso nolod fron lhoir rosoarch lhal: ´Tho procoss of fornuIaling HR
slralogy vas oflon as inporlanl as lho conlonl of lho slralogy uIlinaloIy agrood. Il
vas arguod lhal by vorIing lhrough slralogic issuos and highIighling poinls of
lonsion, nov idoas onorgod and a consonsus ovor goaIs vas found.'
AIlhough HR slralogios can and viII onorgo ovor a poriod of lino, lhoro is nuch lo
bo said for adopling a syslonalic approach by conducling a slralogic roviov.
CCNDLC1lNC A S1kA1LClC kLVlL\
A slralogic roviov syslonalicaIIy assossos slralogy roquirononls in lho Iighl of an
anaIysis of prosonl and fuluro businoss and poopIo noods. Such a roviov providos
ansvors lo lhroo basic quoslions:
1. Whoro aro vo nov`
2. Whoro do vo vanl lo bo in ono, lvo or lhroo yoars' lino`
3. Hov aro vo going lo gol lhoro`
Tho slagos of a slralogic roviov aro iIIuslralod in Figuro 9.1.
Dovoíopìng und ìmpíomontìng Hk strutogìos l4l
l42 HkM procossos
FIgurc 9.1 Slralogic roviov soquonco
Analysis:
What is the business strategy and the business needs emerging from it?
What are the cuIturaI and environmentaI factors we need to take into account?
What are the key HR weaknesses and issues?
What are the gaps between what we are doing and what we ought to do?
Diagnosis:
Why do the HR weaknesses and issues exist?
What is the cause of any gaps?
What factors are infIuencing the situation (cuIturaI, environmentaI, competition,
poIiticaI etc)?
Conclusions and recommendations:
What are our concIusions from the anaIysis/diagnosis?
What do we need to do to fiII the gaps?
What aIternative strategies are avaiIabIe?
Which aIternative is recommended and why?
Action planning:
What actions do we need to take to impIement the proposaIs?
What probIems might we meet and how wiII we overcome them?
Who takes the action and when?
How do we ensure that we have the committed and capabIe Iine managers
required?
Resource planning:
What resources wiII we need (money, peopIe, time)?
How wiII we obtain these resources?
How do we convince management that these resources are required?
What supporting processes are required?
Costs and benefits:
What are the costs and benefits to the organization of impIementing these
proposaIs?
How do they benefit individuaI empIoyees?
How do they satisfy business needs?
SL11lNC CL1 1HL S1kA1LCY
A slralogic roviov can provido lho basis for solling oul lho slralogy. Thoro is no slan-
dard nodoI for doing lhis, bul lho foIIoving hoadings aro lypicaI.
1. 8csis
÷ businoss noods in lorns of lho Ioy oIononls of lho businoss slralogy,
÷ anaIysis of businoss and onvironnonlaI faclors (SWOT/IESTLE),
÷ cuIluraI faclors ÷ possibIo hoIps or hindrancos lo inpIononlalion.
2. Ccnicni ÷ dolaiIs of lho proposod HR slralogy.
3. Rciicnclc ÷ lho businoss caso for lho slralogy againsl lho bacIground of businoss
noods and onvironnonlaI/cuIluraI faclors.
4. lmplcmcniciicn plcn
÷ aclion progranno,
÷ rosponsibiIily for oach slago,
÷ rosourcos roquirod,
÷ proposod arrangononls for connunicalion, consuIlalion, invoIvononl and
lraining,
÷ pro¡ocl nanagononl arrangononls.
5. Ccsis cn! |cncjiis cnclqsis ÷ an assossnonl of lho rosourco inpIicalions of lho pIan
(cosls, poopIo and faciIilios) and lho bonofils lhal viII accruo, for lho organizalion
as a vhoIo, for Iino nanagors and for individuaI onpIoyoos (so far as possibIo
lhoso bonofils shouId bo quanlifiod in vaIuo-addod lorns).
lMlLLMLN1lNC Hk S1kA1LClLS
Golling HR slralogios inlo aclion is nol oasy ovon if lhoy havo boon dovoIopod by
noans of a syslonalic roviov and sol oul vilhin a cIoar franovorI. Bocauso slralo-
gios lond lo bo oxprossod as abslraclions, lhoy nusl bo lransIalod inlo progrannos
vilh cIoarIy slalod ob¡oclivos and doIivorabIos. Tho lorn ´slralogic HRM' has boon
dovaIuod in sono quarlors, sonolinos lo noan no noro lhan a fov gonoraIizod idoas
aboul HR poIicios, al olhor linos lo doscribo a shorl-lorn pIan, for oxanpIo, lo
incroaso lho rolonlion ralo of gradualos. Il nusl bo onphasizod lhal HR slralogios aro
nol ¡usl c! |cc progrannos, poIicios, or pIans concorning HR issuos lhal lho HR
doparlnonl happons lo fooI aro inporlanl. IioconoaI inilialivos do nol conslilulo
slralogy.
Tho probIon, as nolod by Grallon ci cl (1999), is lhal loo oflon lhoro is a gap
bolvoon vhal lho slralogy slalos viII bo achiovod and vhal acluaIIy happons lo il. As
lhoy pul il:
Cno prìncìpuí strund thut hus run through thìs ontìro book ìs tho dìs¡unctìon botvoon
rhotorìc und rouíìty ìn tho urou ol humun rosourco munugomont, botvoon HkM thoory
und HkM pructìco, botvoon vhut tho Hk lunctìon suys ìt ìs doìng und hov thut pructìco
ìs porcoìvod by ompíoyoos, und botvoon vhut sonìor munugomont boíìovos to bo tho
roío ol tho Hk lunctìon, und tho roío ìt uctuuííy píuys.
Tho faclors idonlifiod by Grallon ci cl lhal conlribulod lo croaling lhis gap incIudo:
lho londoncy of onpIoyoos in divorso organizalions onIy lo accopl inilialivos lhoy
porcoivo lo bo roIovanl lo lhoir ovn aroas,
lho londoncy of Iong-sorving onpIoyoos lo cIing lo lho sicius ¡uc,
conpIox or anbiguous inilialivos nay nol bo undorslood by onpIoyoos or viII bo
porcoivod difforonlIy by lhon, ospociaIIy in Iargo, divorso organizalions,
il is noro difficuIl lo gain accoplanco of non-roulino inilialivos,
onpIoyoos viII bo hosliIo lo inilialivos if lhoy aro boIiovod lo bo in confIicl vilh
lho organizalion's idonlily, og dovnsizing in a cuIluro of ´¡ob-for-Iifo',
lho inilialivo is soon as a lhroal,
inconsisloncios bolvoon corporalo slralogios and vaIuos,
lho oxlonl lo vhich sonior nanagononl is lruslod,
lho porcoivod fairnoss of lho inilialivo,
lho oxlonl lo vhich oxisling procossos couId hoIp lo onbod lho inilialivo,
a buroaucralic cuIluro lhal Ioads lo inorlia.
ßarrícr· |o |hc ímpícmcn|a|íon of HR ·|ra|cgíc·
Each of lho faclors Iislod by Grallon ci cl can croalo barriors lo lho succossfuI inpIo-
nonlalion of HR slralogios. Olhor na¡or barriors incIudo faiIuro lo undorsland lho
slralogic noods of lho businoss, inadoqualo assossnonl of lho onvironnonlaI and
cuIluraI faclors lhal affocl lho conlonl of lho slralogios, and lho dovoIopnonl of iII-
concoivod and irroIovanl inilialivos, possibIy bocauso lhoy aro curronl fads or bocauso
lhoro has boon a poorIy digoslod anaIysis of bosl praclico lhal doos nol fil lho organi-
zalion's roquirononls. Thoso probIons aro conpoundod vhon insufficionl allonlion
is paid lo praclicaI inpIononlalion probIons, lho inporlanl roIo of Iino nanagors in
inpIononling slralogios, and lho nood lo havo oslabIishod supporling procossos for
lho inilialivo (og, porfornanco nanagononl lo supporl porfornanco pay).
Cvcrcomíng |hc barrícr·
To ovorcono lhoso barriors il is nocossary lo:
l44 HkM procossos
conducl a rigorous proIininary anaIysis of noods and roquirononls,
fornuIalo lho slralogy,
onIisl supporl for lho slralogy,
assoss barriors and doaI vilh lhon,
proparo aclion pIans,
pro¡ocl-nanago inpIononlalion,
foIIov up and ovaIualo progross so lhal ronodiaI aclion can bo laIon as nocossary.
HkM poíìcìos
\HA1 HLMAN kLSCLkCL lCLlClLS AkL
HR poIicios aro conlinuing guidoIinos on lho approach lho organizalion inlonds lo
adopl in nanaging ils poopIo. Thoy dofino lho phiIosophios and vaIuos of lho organi-
zalion on hov poopIo shouId bo lroalod, and fron lhoso aro dorivod lho principIos
upon vhich nanagors aro oxpoclod lo acl vhon doaIing vilh HR nallors. HR poIicios
lhoroforo sorvo as roforonco poinls vhon onpIoynonl praclicos (doscribod in Chaplor
57) aro boing dovoIopod, and vhon docisions aro boing nado aboul poopIo. Thoy hoIp
lo dofino ´lho vay lhings aro dono around horo'.
HR poIicios shouId bo dislinguishod fron procoduros, as discussod in Chaplor 58.
A poIicy providos gonoraIizod guidanco on lho approach adoplod by lho organiza-
lion, and lhoroforo ils onpIoyoos, concorning various aspocls of onpIoynonl. A
procoduro spoIIs oul procisoIy vhal aclion shouId bo laIon in Iino vilh lho poIicy.
\HY HAVL Hk lCLlClLS
HR or onpIoynonl poIicios hoIp lo onsuro lhal vhon doaIing vilh nallors
concorning poopIo, an approach in Iino vilh corporalo vaIuos is adoplod lhroughoul
lho organizalion. Thoy sorvo as lho basis for onacling vaIuos ÷ convorling ospousod
vaIuos inlo vaIuos in uso. Thoy provido franovorIs vilhin vhich consislonl

docisions aro nado, and pronolo oquily in lho vay in vhich poopIo aro lroalod.
Bocauso lhoy provido guidanco on vhal nanagors shouId do in parlicuIar circun-
slancos lhoy faciIilalo onpovornonl, dovoIulion and doIogalion. WhiIo lhoy shouId
fil lho corporalo cuIluro, lhoy can aIso hoIp lo shapo il.
DC lCLlClLS NLLD 1C ßL lCkMALlZLD:
AII organizalions havo HR poIicios. Sono, hovovor, oxisl inpIicilIy as a phiIosophy
of nanagononl and an alliludo lo onpIoyoos lhal is oxprossod in lho vay in vhich
HR issuos aro handIod, for oxanpIo, lho inlroduclion of nov lochnoIogy. Tho advan-
lago of oxpIicil poIicios in lorns of consisloncy and undorslanding nay appoar lo bo
obvious, bul lhoro aro disadvanlagos: vrillon poIicios can bo infIoxibIo, conslriclivo,
pIaliludinous or aII lhroo. To a dogroo, poIicios havo oflon lo bo oxprossod in abslracl
lorns, and nanagors do nol caro for abslraclions. Bul lhoy do profor lo Inov vhoro
lhoy sland ÷ poopIo IiIo slrucluro ÷ and fornaIizod HR poIicios can provido lho
guidoIinos lhoy nood.
FornaIizod HR poIicios can bo usod in induclion, loan Ioador and nanagononl
lraining lo hoIp parlicipanls undorsland lho phiIosophios and vaIuos of lho organiza-
lion, and hov lhoy aro oxpoclod lo bohavo vilhin lhal conloxl. Thoy aro a noans for
dofining lho onpIoynonl roIalionship and lho psychoIogicaI conlracl (soo Chaplors
15 and 16).
AIlhough vrillon poIicios aro inporlanl, lhoir vaIuo is roducod if lhoy aro nol
bacIod up by a supporlivo cuIluro. This parlicuIarIy appIios lo vorI-Iifo baIanco poIi-
cios.
Hk lCLlCY AkLAS
HR poIicios can bo oxprossod as ovoraII slalononls of lho vaIuos of lho organizalion.
Tho nain poinls lhal can bo incIudod in an ovoraII poIicy slalononl and spocific
poIicy aroas aro sol oul boIov.
Cvcraíí poííc,
Tho ovoraII poIicy dofinos hov lho organizalion fuIfiIs ils sociaI rosponsibiIilios for ils
onpIoyoos and sols oul ils alliludos lovards lhon. Il is an oxprossion of ils vaIuos or
boIiofs aboul hov poopIo shouId bo lroalod. Iolors and Walornan (1982) vrolo lhal if
lhoy voro asIod for ono aII-purposo bil of advico for nanagononl, ono lrulh lhal
l48 HkM procossos
lhoy couId disliI fron aII lhoir rosoarch on vhal naIos an organizalion oxcoIIonl, il
vouId bo, ´Figuro oul your vaIuo syslon. Docido vhal lho organizalion slands for.'
SoIznicI (1957) onphasizod lho Ioy roIo of vaIuos in organizalions, vhon ho vrolo
´Tho fornalion of an inslilulion is narIod by lho naIing of vaIuo connilnonls, lhal
is, choicos vhich fix lho assunplions of poIicy naIors as lo lho naluro of lho onlor-
priso, ils dislinclivo ains, nolhods and roIos.'
Tho vaIuos oxprossod in an ovoraII slalononl of HR poIicios nay oxpIicilIy or
inpIicilIy rofor lo lho foIIoving concopls:
|¡uiiq. lroaling onpIoyoos fairIy and ¡uslIy by adopling an óvon handod'
approach. This incIudos prolocling individuaIs fron any unfair docisions nado
by lhoir nanagors, providing oquaI opporlunilios for onpIoynonl and prono-
lion, and oporaling an oquilabIo paynonl syslon.
Ccnsi!crciicn. laIing accounl of individuaI circunslancos vhon naIing docisions
lhal affocl lho prospocls, socurily or soIf-rospocl of onpIoyoos.
Orgcnizciicncl lccrning. a boIiof in lho nood lo pronolo lho Ioarning and dovoIop-
nonl of aII lho nonbors of lho organizalion by providing lho procossos and
supporl roquirod.
Pcrjcrmcncc i|rcug| pccplc. lho inporlanco allachod lo dovoIoping a porfornanco
cuIluro and lo conlinuous inprovononl, lho significanco of porfornanco nanago-
nonl as a noans of dofining and agrooing nuluaI oxpoclalions, lho provision of
fair foodbacI lo poopIo on hov voII lhoy aro porforning.
Wcr|-lijc |clcncc. slriving lo provido onpIoynonl praclicos lhal onabIo poopIo lo
baIanco lhoir vorI and porsonaI obIigalions.
Qucliiq cj ucr|ing lijc. consciousIy and conlinuaIIy aining lo inprovo lho quaIily
of vorIing Iifo. This invoIvos incroasing lho sonso of salisfaclion poopIo oblain
fron lhoir vorI by, so far as possibIo, roducing nonolony, incroasing varioly,
aulonony and rosponsibiIily, and avoiding pIacing poopIo undor loo nuch slross.
Wcr|ing ccn!iiicns. providing hoaIlhy, safo and so far as praclicabIo pIoasanl
vorIing condilions.
Thoso vaIuos aro ospousod by nany organizalions in ono forn or anolhor, bul lo
vhal oxlonl aro lhoy praclisod vhon naIing ´businoss-Iod' docisions, vhich can
of courso bo highIy dolrinonlaI lo onpIoyoos if, for oxanpIo, lhoy Ioad lo rodun-
dancy` Ono of lho diIonnas facing aII lhoso vho fornuIalo HR poIicios is, hov can
vo pursuo businoss-Iod poIicios focusing on businoss succoss, and aIso fuIfiI our
obIigalions lo onpIoyoos in such lorns as oquily, considoralion, vorI-Iifo baIanco,
quaIily of vorIing Iifo and vorIing condilions` To arguo, as sono do, lhal HR slralo-
gios shouId bo onliroIy businoss-Iod soons lo inpIy lhal hunan considoralions aro
HkM poíìcìos l49
uninporlanl. Organizalions havo obIigalions lo aII lhoir slaIohoIdors, nol ¡usl lhoir
ovnors.
Il nay bo difficuIl lo oxpross lhoso poIicios in anylhing bul gonoraIizod lorns, bul
onpIoyors aro incroasingIy having lo rocognizo lhal lhoy aro sub¡ocl lo oxlornaI as
voII as inlornaI prossuros, vhich acl as conslrainls on lho oxlonl lo vhich lhoy can
disrogard lho highor slandards of bohaviour lovards lhoir onpIoyoos lhal aro
oxpoclod of lhon.
Spccífíc poíícíc·
Tho spocific poIicios shouId covor lho foIIoving aroas as doscribod boIov: oquaI
opporlunily, nanaging divorsily, ago and onpIoynonl, pronolion, vorI-Iifo baIanco,
onpIoyoo dovoIopnonl, rovard, invoIvononl and parlicipalion, onpIoyoo roIalions,
nov lochnoIogy, hoaIlh and safoly, discipIino, griovancos, rodundancy, soxuaI harass-
nonl, buIIying, subslanco abuso, snoIing, AIDS, and o-naiIs.
FquaI opportunity
Tho oquaI opporlunily poIicy shouId spoII oul lho organizalion's dolorninalion lo
givo oquaI opporlunilios lo aII, irrospoclivo of sox, raco, crood, disabiIily, ago or
narilaI slalus. Tho poIicy shouId aIso doaI vilh lho oxlonl lo vhich lho organizalion
vanls lo laIo áffirnalivo aclion' lo rodross inbaIancos bolvoon nunbors onpIoyod
according lo sox or raco, or lo difforoncos in lho IovoIs of quaIificalions and sIiIIs lhoy
havo achiovod.
Tho poIicy couId bo sol oul as foIIovs:
1. Wo aro an oquaI opporlunily onpIoyor. This noans lhal vo do nol pornil dirocl
or indirocl discrininalion againsl any onpIoyoo on lho grounds of raco, nalion-
aIily, sox, soxuaI orionlalion, disabiIily, roIigion, narilaI slalus or ago.
2. Dirocl discrininalion laIos pIaco vhon a porson is lroalod Ioss favourabIy lhan
olhors aro, or vouId bo, lroalod in siniIar circunslancos.
3. Indirocl discrininalion laIos pIaco vhon, vholhor inlonlionaIIy or nol, a condi-
lion is appIiod lhal advorsoIy affocls a considorabIo proporlion of poopIo of ono
raco, nalionaIily, sox, soxuaI orionlalion, roIigion or narilaI slalus, lhoso vilh
disabiIilios, or oIdor onpIoyoos.
4. Tho firn viII onsuro lhal oquaI opporlunily principIos aro appIiod in aII ils HR
poIicios, and in parlicuIar lo lho procoduros roIaling lo lho rocruilnonl, lraining,
dovoIopnonl and pronolion of ils onpIoyoos.
5. Whoro approprialo and vhoro pornissibIo undor lho roIovanl IogisIalion and
codos of praclico, onpIoyoos of undor-roprosonlod groups viII bo givon posilivo
lraining and oncouragononl lo achiovo oquaI opporlunily.
l50 HkM procossos
Managing divcrsity
A poIicy on nanaging divorsily rocognizos lhal lhoro aro difforoncos anong
onpIoyoos and lhal lhoso difforoncos, if proporIy nanagod, viII onabIo vorI lo bo
dono noro officionlIy and offoclivoIy. Il doos nol focus oxcIusivoIy on issuos of dis-
crininalion, bul insload conconlralos on rocognizing lho difforoncos bolvoon poopIo.
As KandoIa and FuIIorlon (1994) oxpross il, lho concopl of nanaging divorsily ís
foundod on lho proniso lhal harnossing lhoso difforoncos viII croalo a produclivo
onvironnonl in vhich ovoryono viII fooI vaIuod, vhoro lhoir laIonls aro fuIIy uliIizod,
and in vhich organizalionaI goaIs aro nol'.
Managing divorsily is a concopl lhal rocognizos lho bonofils lo bo gainod fron
difforoncos. Il diffors fron oquaI opporlunily, vhich ains lo IogisIalo againsl discrin-
inalion, assunos lhal poopIo shouId bo assiniIalod inlo lho organizalion, and oflon
roIios on affirnalivo aclion.
A nanagononl of divorsily poIicy couId:
acInovIodgo cuIluraI and individuaI difforoncos in lho vorIpIaco,
slalo lhal lho organizalion vaIuos lho difforonl quaIilios poopIo bring lo lhoir ¡obs,
onphasizo lho nood lo oIininalo bias in such aroas as soIoclion, pronolion,
porfornanco assossnonl, pay and Ioarning opporlunilios,
focus allonlion on individuaI difforoncos ralhor lhan group difforoncos.
Agc and cmpIoymcnt
Tho poIicy on ago and onpIoynonl shouId laIo inlo accounl lho foIIoving facls as
Iislod by lho CIID:
Ago is a poor prodiclor of ¡ob porfornanco.
Il is nisIoading lo oqualo physicaI and nonlaI abiIily vilh ago.
Moro of lho popuIalion aro Iiving aclivo, hoaIlhy Iivos as lhoy gol oIdor.
Tho poIicy shouId dofino lho approach lho organizalion adopls lo ongaging,
pronoling and lraining oIdor onpIoyoos. Il shouId onphasizo lhal lho onIy crilorion
for soIoclion or pronolion shouId bo abiIily lo do lho ¡ob, and for lraining, lho boIiof
lhal lho onpIoyoo viII bonofil, irrospoclivo of ago. Tho poIicy shouId aIso slalo lhal
ago roquirononls shouId nol bo sol oul in oxlornaI or inlornaI ¡ob advorlisononls.
Fromotion
A pronolion poIicy couId slalo lho organizalion's inlonlion lo pronolo fron vilhin
HkM poíìcìos l5l
vhorovor lhis is approprialo as a noans of salisfying ils roquirononls for high quaIily
slaff. Tho poIicy couId, hovovor, rocognizo lhal lhoro viII bo occasions vhon lho orga-
nizalion's prosonl and fuluro noods can onIy bo nol by rocruilnonl fron oulsido. Tho
poinl couId bo nado lhal a vigorous organizalion noods infusions of frosh bIood fron
lino lo lino if il is nol lo slagnalo. In addilion, lho poIicy nighl slalo lhal onpIoyoos
viII bo oncouragod lo appIy for inlornaIIy advorlisod ¡obs, and viII nol bo hoId bacI
fron pronolion by lhoir nanagors, hovovor roIuclanl lho Iallor nay bo lo Ioso lhon.
Work-Iifc baIancc
WorI-Iifo baIanco poIicios dofino hov lho organizalion inlonds lo aIIov onpIoyoos
groalor fIoxibiIily in lhoir vorIing pallorns so lhal lhoy can baIanco vhal lhoy do al
vorI vilh lho rosponsibiIilios and inlorosls lhoy havo oulsido vorI. Tho poIicy viII
indicalo hov fIoxibIo vorI praclicos can bo dovoIopod and inpIononlod. Il viII
onphasizo lhal lho nunbors of hours vorIod nusl nol bo lroalod as a crilorion for
assossing porfornanco. Il viII sol oul guidoIinos on spocific arrangononls lhal can bo
nado, such as fIoxibIo hours, conprossod vorIing vooI, lorn-lino vorIing
conlracls, vorIing al hono, spociaI Ioavo for paronls and carors, caroor broaIs and
various Iinds of chiId caro.
FmpIoycc dcvcIopmcnt
Tho onpIoyoo dovoIopnonl poIicy couId oxpross lho organizalion's connilnonl lo
lho conlinuous dovoIopnonl of lho sIiIIs and abiIilios of onpIoyoos in ordor lo naxi-
nizo lhoir conlribulion and lo givo lhon lho opporlunily lo onhanco lhoir sIiIIs,
roaIizo lhoir polonliaI, advanco lhoir caroors and incroaso lhoir onpIoyabiIily bolh
vilhin and oulsido lho organizalion.
kcward
Tho rovard poIicy couId covor such nallors as:
providing an oquilabIo pay syslon,
oquaI pay for vorI of oquaI vaIuo,
paying for porfornanco, conpolonco, sIiII or conlribulion,
sharing in lho succoss of lho organizalion (gain sharing or profil sharing),
lho roIalionship bolvoon IovoIs of pay in lho organizalion and narIol ralos,
lho provision of onpIoyoo bonofils, incIuding fIoxibIo bonofils if approprialo,
lho inporlanco allachod lo lho non-financiaI rovards rosuIling fron rocognilion,
acconpIishnonl, aulonony, and lho opporlunily lo dovoIop.
l52 HkM procossos
lnvoIvcmcnt and participation
Tho invoIvononl and parlicipalion (onpIoyoo voico poIicy) shouId spoII oul lho orga-
nizalion's boIiof in giving onpIoyoos an opporlunily lo havo a say in nallors lhal
affocl lhon. Il shouId dofino lho nochanisns for onpIoyoo voico, such as ¡oinl consuI-
lalion and suggoslion schonos.
FmpIoycc rcIations
Tho onpIoyoo roIalions poIicy viII sol oul lho organizalion's approach lo lho righls of
onpIoyoos lo havo lhoir inlorosls roprosonlod lo nanagononl lhrough lrado unions,
slaff associalions or sono olhor forn of roprosonlalivo syslon. Il viII aIso covor lho
basis upon vhich lho organizalion vorIs vilh lrado unions, for oxanpIo, onpha-
sizing lhal lhis shouId bo rogardod as a parlnorship.
Ncw tccbnoIogy
A nov lochnoIogy poIicy slalononl couId slalo lhal lhoro viII bo consuIlalion aboul
lho inlroduclion of nov lochnoIogy, and lho slops lhal vouId bo laIon by lho organi-
zalion lo nininizo lho risI of conpuIsory rodundancy or advorsoIy affocl olhor lorns
and condilions or vorIing arrangononls.
HcaItb and safcty
HoaIlh and safoly poIicios covor hov lho organizalion inlonds lo provido hoaIlhy and
safo pIacos and syslons of vorI (soo Chaplor 55).
DiscipIinc
Tho discipIinary poIicy shouId slalo lhal onpIoyoos havo lho righl lo Inov vhal is
oxpoclod of lhon and vhal couId happon if lhoy infringo lho organizalion's ruIos. Il
vouId aIso naIo lho poinl lhal, in handIing discipIinary casos, lho organizalion viII
lroal onpIoyoos in accordanco vilh lho principIos of naluraI ¡uslico.
Gricvanccs
Tho poIicy on griovancos couId slalo lhal onpIoyoos havo lho righl lo raiso lhoir
griovancos vilh lhoir nanagor, lo bo acconpaniod by a roprosonlalivo if lhoy so vish,
and lo appoaI lo a highor IovoI if lhoy fooI lhal lhoir griovanco has nol boon rosoIvod
salisfacloriIy.
HkM poíìcìos l53
kcdundancy
Tho rodundancy poIicy couId slalo lhal il is lho organizalion's inlonlion lo uso ils
bosl ondoavours lo avoid invoIunlary rodundancy lhrough ils rodopIoynonl
and rolraining procoduros. Hovovor, if rodundancy is unavoidabIo lhoso affoclod
viII bo givon fair and oquilabIo lroalnonl, lho naxinun anounl of varning, and
ovory hoIp lhal can bo providod by lho organizalion lo oblain suilabIo aIlornalivo
vorI.
ScxuaI barassmcnt
Tho soxuaI harassnonl poIicy shouId slalo lhal:
1. SoxuaI harassnonl viII nol bo loIoralod.
2. EnpIoyoos sub¡oclod lo soxuaI harassnonl viII bo givon advico, supporl and
counsoIIing as roquirod.
3. Evory allonpl viII bo nado lo rosoIvo lho probIon infornaIIy vilh lho porson
conpIainod againsl.
4. Assislanco viII bo givon lo lho onpIoyoo lo conpIain fornaIIy if infornaI discus-
sions faiI.
5. A spociaI procoss viII bo avaiIabIo for hoaring conpIainls aboul soxuaI harass-
nonl. This viII provido for onpIoyoos lo bring lhoir conpIainl lo sonoono of
lhoir ovn sox if lhoy so vish.
6. ConpIainls viII bo handIod sonsilivoIy and vilh duo rospocl for lho righls of
bolh lho conpIainanl and lho accusod.
7. SoxuaI harassnonl is rogardod as gross induslriaI nisconducl and, if provod,
naIos lho individuaI IiabIo for inslanl disnissaI. Loss sovoro ponaIlios nay bo
rosorvod for ninor casos bul lhoro viII aIvays bo a varning lhal ropolilion viII
rosuIl in disnissaI.
ßuIIying
An anli-buIIying poIicy viII slalo lhal buIIying viII nol bo loIoralod by lho organiza-
lion and lhal lhoso vho porsisl in buIIying lhoir slaff viII bo sub¡ocl lo discipIinary
aclion, vhich couId bo sovoro in parlicuIarIy bad casos. Tho poIicy viII naIo il cIoar
lhal individuaIs vho aro boing buIIiod shouId havo lho righls lo discuss lho probIon
vilh a nanagononl roprosonlalivo or a nonbor of lho HR funclion, and lo naIo a
conpIainl. Tho poIicy shouId onphasizo lhal if a conpIainl is rocoivod il viII bo lhor-
oughIy invosligalod.
l54 HkM procossos
Substancc abusc
Asubslanco abuso poIicy couId incIudo assurancos lhal:
EnpIoyoos idonlifiod as having subslanco abuso probIons viII bo offorod advico
and hoIp.
Any roasonabIo absonco fron vorI nocossary lo rocoivo lroalnonl viII bo granlod
undor lho organizalion's sicInoss schono providod lhal lhoro is fuII cooporalion
fron lho onpIoyoo.
An opporlunily viII bo givon lo lho onpIoyoo lo discuss lho nallor onco il has
bocono ovidonl or suspoclod lhal vorI porfornanco is boing affoclod by
subslanco-roIalod probIons.
Tho onpIoyoo has lho righl lo bo acconpaniod by a friond or onpIoyoo roproson-
lalivo in any such discussion.
Agoncios viII bo roconnondod lo vhich lho onpIoyoo can go for hoIp if nocos-
sary.
EnpIoynonl righls viII bo safoguardod during any roasonabIo poriod of lroal-
nonl.
Smoking
Tho snoIing poIicy vouId dofino no-snoIing ruIos incIuding vhoro, if al aII,
snoIing is pornillod.
AlDS
An AIDS poIicy couId incIudo lho foIIoving poinls:
Tho risIs of infoclion in nosl vorIpIacos aro nogIigibIo.
Whoro lho occupalion invoIvos bIood conlacl, as in hospilaIs, doclors' surgorios
and Iaboralorios, lho spociaI procaulions advisod by lho HoaIlh and Safoly
Connission viII bo inpIononlod.
EnpIoyoos vho Inov lhal lhoy aro infoclod vilh AIDS viII nol bo obIigod lo
discIoso lho facl lo lho conpany, bul if lhoy do, lho facl viII ronain conpIoloIy
confidonliaI.
Thoro viII bo no discrininalion againsl anyono vilh or al risI of acquiring AIDS.
EnpIoyoos infoclod by HIV or sufforing fron AIDS viII bo lroalod no difforonlIy
fron anyono oIso sufforing a sovoro iIInoss.
HkM poíìcìos l55

Tho poIicy on o-naiIs couId slalo lhal lho sonding or dovnIoading of offonsivo o-
naiIs is prohibilod, and lhal lhoso sonding or dovnIoading such nossagos viII bo
sub¡ocl lo nornaI discipIinary procoduros. Thoy nay aIso prohibil any brovsing or
dovnIoading of naloriaI nol roIalod lo lho businoss, aIlhough lhis can bo difficuIl lo
onforco. Sono conpanios havo aIvays boIiovod lhal roasonabIo uso of lho loIophono
is accoplabIo, and lhal poIicy nay bo oxlondod lo o-naiIs.
If il is docidod lhal onpIoyoos' o-naiIs shouId bo nonilorod lo chocI on oxcossivo
or unaccoplabIo uso, lhon lhis shouId bo incIudod in an o-naiI poIicy vhich vouId
lhoroforo bo parl of lho conlracluaI arrangononls. A poIicy slalononl couId bo
incIudod lo lho offocl lhal ´Tho conpany rosorvos lho righl lo accoss and nonilor aII o-
naiI nossagos croalod, sonl, rocoivod or slorod on lho conpany's syslon'.
lCkMLLA1lNC Hk lCLlClLS
Tho foIIoving slops shouId bo laIon lo fornuIalo and inpIononl HR poIicios:
1. Gain undorslanding of lho corporalo cuIluro and ils coro vaIuos.
2. AnaIyso oxisling poIicios, vrillon and unvrillon. HR poIicios viII oxisl in any
organizalion, ovon if lhoy aro inpIicil ralhor lhan oxprossod fornaIIy.
3. AnaIyso oxlornaI infIuoncos. HR poIicios aro sub¡ocl lo lho infIuonco of UK
onpIoynonl IogisIalion, Europoan Connunily EnpIoynonl RoguIalions, and
lho officiaI codos of praclico issuod by bodios in lho UK such as ACAS (Advisory,
ConciIialion and Arbilralion Sorvico), lho EOC (EquaI Opporlunilios
Connission), lho CRR (Connission on RaciaI RoIalions) and lho HoaIlh and
Safoly Exoculivo. Tho codos of praclico issuod by roIovanl profossionaI inslilu-
lions, such as lho CIID, shouId aIso bo consuIlod.
4. Assoss any aroas vhoro nov poIicios aro noodod or oxisling poIicios aro inado-
qualo.
5. ChocI vilh nanagors, proforabIy slarling al lho lop, on lhoir viovs aboul HR
poIicios and vhoro lhoy lhinI lhoy couId bo inprovod.
6. SooI lho viovs of onpIoyoos aboul lho HR poIicios, ospociaIIy lho oxlonl lo
vhich lhoy aro inhoronlIy fair and oquilabIo and aro inpIononlod fairIy and
consislonlIy. Considor doing lhis lhrough an alliludo survoy.
7. SooI lho viovs of union roprosonlalivos.
8. AnaIyso lho infornalion oblainod in lho firsl sovon slops and proparo drafl
poIicios.
l56 HkM procossos
9. ConsuIl, discuss and agroo poIicios vilh nanagononl and union roprosonla-
livos.
10. Connunicalo lho poIicios, vilh guidanco nolos on lhoir inpIononlalion as
roquirod (aIlhough lhoy shouId bo as soIf-oxpIanalory as possibIo). SuppIononl
lhis connunicalion vilh lraining.
lMlLLMLN1lNC Hk lCLlClLS
Tho ain viII bo lo inpIononl poIicios fairIy and consislonlIy. Lino nanagors havo a
Ioy roIo in doing lhis. As poinlod oul by IurcoII   (2003), ´lhoro is a nood for HR
poIicios lo bo dosignod for and focusod on fronl Iino nanagors'. Il is lhoy vho viII bo
IargoIy rosponsibIo for poIicy inpIononlalion. Monbors of lho HR can givo guidanco,
bul il is Iino nanagors vho aro on lho spol and havo lo naIo docisions aboul poopIo.
Tho roIo of HR is lo connunicalo and inlorprol lho poIicios, convinco Iino nanagors
lhal lhoy aro nocossary, and provido lraining and supporl lhal viII oquip nanagors lo
inpIononl lhon. As IurcoII   onphasizo, il is Iino nanagors vho bring HR poIi-
cios lo Iifo.
HkM poíìcìos l57
Compotoncy-busod HkM
Conpoloncy-basod HRM is aboul using lho concopl of conpoloncy and lho rosuIls of
conpoloncy anaIysis lo inforn and inprovo lho procossos of porfornanco nanago-
nonl, rocruilnonl and soIoclion, onpIoyoo dovoIopnonl and onpIoyoo rovard. Tho
Ianguago has doninalod nuch of HR lhinIing and praclico in roconl yoars.
Tho concopl of conpoloncy has achiovod lhis dogroo of proninonco bocauso il is
ossonliaIIy aboul porfornanco. MansfioId (1999) dofinos conpoloncy as án undor-
Iying characlorislic of a porson lhal rosuIls in offoclivo or suporior porfornanco'.
RanIin (2002) doscribos conpoloncios as ´dofinilions of sIiIIs and bohaviours lhal
organizalions oxpocl lhoir slaff lo praclico in lhoir vorI' and oxpIains lhal:
Compotoncìos roprosont tho íunguugo ol porlormunco. 1hoy cun urtìcuíuto both tho
oxpoctod outcomos lrom un ìndìvìduuí's ollorts und tho munnor ìn vhìch thoso uctìvìtìos
uro currìod out. ßocuuso ovoryono ìn tho orgunìzutìon cun íourn to spouk thìs íunguugo,
compotoncìos provìdo u common, unìvorsuííy undorstood mouns ol doscrìbìng oxpoctod
porlormunco ìn muny dìlloront contoxts.
Conpoloncy-basod HR is prinariIy basod on lho concopls of bohaviouraI and loch-
nicaI conpoloncios as dofinod in lho firsl soclion of lhis chaplor. Bul il is aIso associ-
alod vilh lho uso of NalionaI and Scollish VocalionaI quaIificalions (NVQs/SNVQs)
as aIso oxaninod in lho firsl soclion. Tho noxl fivo soclions of lho chaplor conconlralo
on lho appIicalion and uso of bohaviouraI and lochnicaI conpoloncios undor lho
foIIoving hoadings:

conpoloncy franovorIs,
roasons for using conpoloncios,
uso of conpoloncios,
guidoIinos on lho dovoIopnonl of conpoloncy franovorIs,
Ioys lo succoss in using conpoloncios.
Tho finaI soclion doscribos lho associalod concopl of onolionaI inloIIigonco.
1YlLS Cl CCMlL1LNClLS
Tho lhroo lypos of conpoloncios aro bohaviouraI conpoloncios, lochnicaI conpolon-
cios and NVQs and SNVQs.
ßchavíouraí compc|cncíc·
BohaviouraI conpoloncios dofino bohaviouraI oxpoclalions, io lho lypo of bohaviour
roquirod lo doIivor rosuIls undor such hoadings as loanvorIing, connunicalion,
Ioadorship and docision-naIing. Thoy aro sonolinos Inovn as ´sofl sIiIIs'.
BohaviouraI conpoloncios aro usuaIIy sol oul in a conpoloncy franovorI.
Tho bohaviouraI conpoloncy approach vas firsl advocalod by McCIoIIand (1973).
Ho roconnondod lho uso of crilorion-roforoncod assossnonl. Crilorion roforoncing or
vaIidalion is lho procoss of anaIysing lho Ioy aspocls of bohaviour lhal difforonlialo
bolvoon offoclivo and Ioss offoclivo porfornanco.
Bul lho Ioading figuro in dofining and popuIarizing lho concopl of conpoloncy in
lho USA and oIsovhoro vas Boyalzis (1982). Ho conduclod rosoarch lhal oslabIishod
lhal lhoro vas no singIo faclor bul a rango of faclors lhal difforonlialod succossfuI
fron Ioss succossfuI porfornanco. Thoso faclors incIudod porsonaI quaIilios, nolivos,
oxporionco and bohaviouraI characlorislics. Boyalzis dofinod conpoloncy as:
ćapacily lhal oxisls in a porson lhal Ioads lo bohaviour lhal nools lho ¡ob donands
vilhin lho paranolors of lho organizalionaI onvironnonl and lhal, in lurn, brings
aboul dosirod rosuIls'.
Tho ćIuslors' of conpoloncios ho idonlifiod voro goaI and aclion nanagononl,
dirocling subordinalos, hunan rosourco nanagononl and Ioadorship. Ho nado a
dislinclion bolvoon lhroshoId conpoloncios, vhich aro lho basic conpoloncios
roquirod lo do a ¡ob, and porfornanco conpoloncos, vhich difforonlialo bolvoon high
and Iov porfornanco.
l60 HkM procossos
Tcchnícaí compc|cncíc·
TochnicaI conpoloncios dofino vhal poopIo havo lo Inov and bo abIo lo do (InovI-
odgo and sIiIIs) lo carry oul lhoir roIos offoclivoIy. Thoy aro roIalod lo oilhor gonoric
roIos (groups of siniIar ¡obs), or individuaI roIos (as ´roIo-spocific conpoloncios').
Tho lorn ´lochnicaI conpoloncy' has boon adoplod fairIy roconlIy lo avoid lho
confusion lhal oxislod bolvoon lho lorns ćonpoloncy' and ćonpolonco'. Con-
poloncy, as nonlionod abovo, is aboul bohaviours, vhiIo conpolonco as dofinod by
Woodruffo (1990) is: Á vorI-roIalod concopl vhich rofors lo aroas of vorI al vhich
lho porson is conpolonl. Conpolonl poopIo al vorI aro lhoso vho nool lhoir porfor-
nanco oxpoclalions.' Conpoloncos aro sonolinos Inovn as ´hard sIiIIs'. Tho lorns
lochnicaI conpoloncios and conpoloncos aro cIosoIy roIalod aIlhough lho Iallor has a
parlicuIar and noro Iinilod noaning vhon appIiod lo NVQs/SNVQs, as discussod
boIov.
^VÇ/S^VÇ compc|cncc·
Tho concopl of conpolonco vas concoivod in lho UK as a fundanonlaI parl of lho
procoss of dovoIoping slandards for NVQs/SNVQs. Thoso spocify nininun slan-
dards for lho achiovononl of sol lasIs and aclivilios oxprossod in vays lhal can bo
obsorvod and assossod vilh a viov lo corlificalion. An oIononl of conpolonco in
NVQ Ianguago is a doscriplion of sonolhing lhal poopIo in givon vorI aroas shouId
bo abIo lo do. Thoy aro assossod on boing conpolonl or nol yol conpolonl. No allonpl
is nado lo assoss lho dogroo of conpolonco.
CCMlL1LNCY lkAML\CkKS
A conpoloncy franovorI conlains dofinilions of aII lho bohaviouraI conpoloncios
usod in lho vhoIo or parl of an organizalion. Il providos lho basis for lho uso of
conpoloncios in such aroas as rocruilnonl, onpIoyoo dovoIopnonl and rovard. Tho
2003/4 Ccmpcicncq cn! |mciicncl lniclligcncc survoy oslabIishod lhal lho 49 frano-
vorIs roviovod had a lolaI of 553 conpoloncy hoadings. IrosunabIy, nany of lhoso
ovorIappod. Tho nosl connon nunbor of conpoloncios vas oighl.
Compc|cnc, hcadíng·
Tho conpoloncy hoadings incIudod in lho franovorIs of 20 por conl or noro of lho
organizalions rosponding lo lho survoy aro shovn in TabIo 11.1. Tho firsl sovon of
lhoso aro usod in ovor 50 por conl of lho rospondonls.
Compotoncy-busod HkM l6l
l62 HkM procossos
Compctcncy bcading Summary dcfinition " uscd
1oum orìontutìon 1ho ubìíìty to vork co-oporutìvoíy und líoxìbíy vìth othor 85
mombors ol tho toum vìth u luíí undorstundìng ol tho roío to
bo píuyod us u toum mombor.
Communìcutìon 1ho ubìíìty to communìcuto cíouríy und porsuusìvoíy, oruííy 73
or ìn vrìtìng.
loopío munugomont 1ho ubìíìty to munugo und dovoíop poopío und guìn thoìr 67
trust und cooporutìon to uchìovo rosuíts.
Customor locus 1ho oxorcìso ol uncousìng curo ìn íookìng ultor tho ìntorosts 65
ol oxtornuí und ìntornuí customors to onsuro thut thoìr vunts,
noods und oxpoctutìons uro mot or oxcoodod.
kosuíts orìontutìon 1ho dosìro to got thìngs dono voíí und tho ubìíìty to sot und 59
moot chuííongìng gouís, crouto ovn mousuros ol oxcoííonco
und constuntíy sook vuys ol ìmprovìng porlormunco.
lrobíom-soívìng 1ho cupucìty to unuíyso sìtuutìons, dìugnoso probíoms, 57
ìdontìly tho koy ìssuos, ostubíìsh und ovuíuuto uítornutìvo
coursos ol uctìon und produco u íogìcuí, pructìcuí und
uccoptubío soíutìon.
líunnìng und 1ho ubìíìty to docìdo on coursos ol uctìon, onsurìng thut tho 5l
orgunìzìng rosourcos roquìrod to ìmpíomont tho uctìon vìíí bo uvuìíubío
und schoduíìng tho progrummo ol vork roquìrod to uchìovo
u dolìnod ond-rosuít.
1ochnìcuí skìíís lossossìon ol tho knovíodgo, undorstundìng und oxportìso 49
roquìrod to curry out tho vork olloctìvoíy.
Loudorshìp 1ho cupucìty to ìnspìro ìndìvìduuís to gìvo ol thoìr bost to 43
uchìovo u dosìrod rosuít und to muìntuìn olloctìvo
roíutìonshìps vìth ìndìvìduuís und tho toum us u vhoío.
ßusìnoss uvuronoss 1ho cupucìty contìnuuííy to ìdontìly und oxpíoro busìnoss 37
opportunìtìos, undorstund tho busìnoss noods und prìorìtìos ol
ol tho orgunìzutìon und constuntíy to sook mothods ol
onsurìng thut tho orgunìzutìon bocomos moro busìnoss-íìko.
Docìsìon-mukìng 1ho cupucìty to muko sound und pructìcuí docìsìons vhìch 37
douí olloctìvoíy vìth tho ìssuos und uro busod on thorough
unuíysìs und dìugnosìs.
Chungo-orìontutìon 1ho ubìíìty to munugo und uccopt chungo. 33
  Incidonco of difforonl conpoloncy hoadings

kLASCNS lCk LSlNC CCMlL1LNClLS
Tho lvo prino roasons for organizalions lo uso conpoloncios, as oslabIishod by
MiIIor ci cl (2001) voro firsl, lhal lho appIicalion of conpoloncios lo appraisaI, lraining
and olhor porsonnoI procossos viII hoIp lo incroaso lho porfornanco of onpIoyoos,
and socond, lhal conpoloncios provido a noans of arlicuIaling corporalo vaIuos so
lhal lhoir roquirononls can bo onbodiod in HR praclicos and bo roadiIy undorslood
by individuaIs and loans vilhin lho organizalion. Olhor roasons incIudo lho uso of
conpoloncios as a noans of achioving cuIluraI chango and of raising sIiII IovoIs.
Compotoncy-busod HkM l63
Dovoíopìng othors 1ho dosìro und cupucìty to lostor tho dovoíopmont ol 33
mombors ol hìs or hor toum, provìdìng loodbuck, support,
oncourugomont und couchìng.
lnlíuonco und 1ho ubìíìty to convìnco othors to ugroo on or to tuko u 33
porsuusìon courso ol uctìon.
lnìtìutìvo 1ho cupucìty to tuko uctìon ìndopondontíy und to ussumo 29
rosponsìbìíìty lor ono's uctìons.
lntorporsonuí skìíís 1ho ubìíìty to crouto und muìntuìn opon und constructìvo 29
roíutìonshìps vìth othors, to rospond hoípluííy to thoìr
roquosts und to bo sonsìtìvo to thoìr noods.
Strutogìc orìontutìon 1ho cupucìty to tuko u íong-torm und vìsìonury vìov ol tho 29
dìroctìon to bo loííovod ìn tho luturo.
Croutìvìty 1ho ubìíìty to orìgìnuto nov pructìcos, concopts und ìdous. 26
lnlormutìon 1ho cupucìty to orìgìnuto und uso ìnlormutìon olloctìvoíy. 26
munugomont
Çuuíìty locus 1ho locus on doíìvorìng quuíìty und contìnuous 24
ìmprovomont.
Soíl-conlìdonco und ßoíìol ìn onosoíl und stundìng up lor ono's ovn rìghts. 24
ussortìvonoss
Soíl-dovoíopmont Munugìng ono's ovn íournìng und dovoíopmont. 22
Munugìng Munugìng rosourcos, poopío, progrummos und pro¡octs. 20
  ccniinuc!
CCVLkACL Cl CCMlL1LNClLS
Tho MiIIor   rosoarch found lhal onpIoyors adoplod difforonl approachos lo lho
parls of lho vorIforco covorod by conpoloncios:
22 por conl covorod lho vhoIo vorIforco vilh a singIo sol or franovorI of coro
conpoloncios (nodifiod in a furlhor 10 por conl of onpIoyors by lho incorporalion
of addilionaI bohaviouraI conpoloncios for nanagors and olhor slaff),
48 por conl confinod conpoloncios lo spocific vorI groups, funclions or doparl-
nonls,
20 por conl havo a coro conpoloncy franovorI lhal covors aII slaff in rospocl of
bohaviouraI conpoloncios, aIongsido sols of lochnicaI/funclionaI or doparlnonls.
Subsoquonl rosoarch (RanIin, 2002) found lhal:
25 por conl of onpIoyors using bohaviouraI conpoloncios had a coro franovorI,
19 por conl suppIononlod lho coro franovorI vilh addilionaI conpoloncios for
singIo groups such as nanagors.
Thc ´mcnu' approach
RanIin nolos lhal 21 por conl of rospondonls adoplod a ńonu' approach. This
onabIos conpoloncios lo bo soIoclod lhal aro roIovanl lo gonoric or individuaI roIos.
Approachos vary. Sono organizalions provido guidoIinos on lho nunbor of conpo-
loncios lo bo soIoclod (og four lo oighl) and olhors conbino lhoir coro franovorI vilh
a nonu so lhal usors aro roquirod lo soIocl lho organizalion-vido coro conpoloncios
and add a nunbor of oplionaI onos.
Roíc-·pccífíc compc|cncíc·
RoIo-spocific conpoloncios aro aIso usod by sono organizalions for gonoric or indi-
viduaI roIos. Thoso nay bo incorporalod in a roIo profiIo in addilion lo infornalion
aboul lho Ioy oulpul or rosuIl aroas of lho roIo. This approach is IiIoIy lo bo adoplod
by onpIoyors vho uso conpoloncios in lhoir porfornanco nanagononl procossos,
bul roIo-spocific conpoloncios aIso provido lho basis for porson spocificalions usod in
rocruilnonl and for lho proparalion of individuaI Ioarning progrannos.
Cradcd compc|cncíc·
A furlhor, aIlhough Ioss connon, appIicalion of conpoloncios is in gradod caroor or
l64 HkM procossos
¡ob faniIy slrucluros (caroor or ¡ob faniIios consisl of ¡obs in a funclion or occupalion
such as narIoling, oporalions, financo, IT, HR, adninislralion or supporl sorvicos,
vhich aro roIalod lhrough lho aclivilios carriod oul and lho basic InovIodgo and
sIiIIs roquirod, bul in vhich lho IovoIs of rosponsibiIily, InovIodgo, sIiII or conpo-
lonco noodod diffor). In such faniIios, lho succossivo IovoIs in oach faniIy aro dofinod
in lorns of conpoloncios as voII as lho Ioy aclivilios carriod oul. (Caroor and ¡ob
faniIy slrucluros aro doscribod in Chaplor 46.)
LSL Cl CCMlL1LNClLS
Tho Ccmpcicncq cn! |mciicncl lniclligcncc 2003/4 survoy found lhal 95 por conl of
rospondonls usod bohaviouraI conpoloncios and 66 por conl usod lochnicaI conpo-
loncios. Il vas nolod lhal bocauso lho Iallor doaI vilh spocific aclivilios and lasIs lhoy
inovilabIy rosuIl in difforonl sols of conpoloncios for groups of roIalod roIos, func-
lions or aclivilios. Tho lop four usos of conpoloncios voro:
1. Iorfornanco nanagononl ÷ 89 por conl.
2. Training and dovoIopnonl ÷ 85 por conl.
3. SoIoclion ÷ 85 por conl.
4. Rocruilnonl ÷ 81 por conl.
OnIy 35 por conl of organizalions IinI conpoloncios lo rovard. Tho vays in vhich
lhoso conpoloncios aro usod aro doscribod boIov.
|crformancc managcmcn|
Conpoloncios in porfornanco nanagononl aro usod lo onsuro lhal porfornanco
roviovs do nol sinpIy focus on oulconos bul aIso considor lho bohaviouraI aspocls of
hov lho vorI is carriod oul lhal dolornino lhoso oulconos. Iorfornanco roviovs
conduclod on lhis basis aro usod lo inforn porsonaI inprovononl and dovoIopnonl
pIans and olhor Ioarning and dovoIopnonl inilialivos.
As nolod by Ccmpcicncq cn! |mciicncl lniclligcncc (2003/4): ÍncroasingIy,
onpIoyors aro oxlonding lhoir porfornanco nanagononl syslons lo assoss nol onIy
ob¡oclivos bul aIso quaIilalivo aspocls of lho ¡ob.' Tho aIlornalivo approachos aro: 1)
lho assossnonl has lo bo nado by roforonco lo lho vhoIo sol of coro conpoloncios in
lho franovorI, or 2) lho nanagor and lho individuaI carry oul a ¡oinl assossnonl of
lho Iallor's porfornanco and agroo on lho conpoloncios lo bo assossod, soIocling lhoso
nosl roIovanl lo lho roIo. Tho ¡oinl assossnonls nay bo guidod by oxanpIos Inovn as
´bohaviouraI indicalors' of hov lho conpoloncy nay bo dononslralod in lho
onpIoyoo's day-lo-day vorI and in sono casos lho assossnonl is IinIod lo dofinod
IovoIs of conpoloncy (soo Chaplor 33 for furlhor dolaiIs of hov lhis procoss vorIs).
Lcarníng and dcvcíopmcn|
RoIo profiIos, vhich aro oilhor gonoric (covoring a rango of siniIar ¡obs) or individuaI
(roIo-spocific), can incIudo slalononls of lho lochnicaI conpoloncios roquirod. Thoso
can bo usod as lho basis for assossing lho IovoIs of conpoloncy achiovod by individ-
uaIs and so idonlifying lhoir Ioarning and dovoIopnonl noods.
Caroor faniIy grado slrucluros (soo Chaplor 46) can dofino lho conpoloncios
roquirod al oach IovoI in a caroor faniIy. Thoso dofinilions provido a caroor nap
shoving lho conpoloncios poopIo nood lo dovoIop in ordor lo progross lhoir caroor.
Conpoloncios aro aIso usod in dovoIopnonl conlros (soo Chaplor 40), vhich hoIp
parlicipanls buiId up lhoir undorslanding of lho conpoloncios lhoy roquiro nov and
in lho fuluro so lhal lhoy can pIan lhoir ovn soIf-diroclod Ioarning progrannos.
Rccruí|mcn| and ·cícc|íon
Tho Ianguago of conpoloncios is usod in nany organizalions as a basis for lho porson
spocificalion, vhich is sol oul undor conpoloncy hoadings as dovoIopod lhrough roIo
anaIysis. Tho conpoloncios dofinod for a roIo aro usod as lho franovorI for rocruil-
nonl and soIoclion.
A conpoloncios approach can hoIp lo idonlify vhich soIoclion lochniquos such as
psychoIogicaI losling aro nosl IiIoIy lo produco usofuI ovidonco. Il providos lho
infornalion roquirod lo conducl a slruclurod inlorviov in vhich quoslions can focus
on parlicuIar conpoloncy aroas lo oslabIish lho oxlonl lo vhich candidalos nool lho
spocificalion as sol oul in conpoloncy lorns.
In assossnonl conlros, conpoloncy franovorIs aro usod lo dofino lho conpoloncy
dinonsions lhal dislinguish high porfornanco. This indicalos vhal oxorcisos or sinu-
Ialions aro roquirod and lho assossnonl procossos lhal shouId bo usod.
Rcvard managcmcn|
In lho 1990s, vhon lho conpoloncy novononl cano lo lho foro, lho nolion of IinIing
pay lo conpoloncios ÷ conpoloncy-roIalod pay ÷ onorgod. Bul il has novor laIon off,
onIy 8 por conl of lho rospondonls lo lho o-rovard 2004 survoy of conlingonl pay usod
il. Hovovor, noro roconlIy, lho concopl of conlribulion-roIalod pay has onorgod,
vhich providos for poopIo lo bo rovardod according lo bolh lho rosuIls lhoy achiovo
and lhoir IovoI of conpolonco, and lho o-rovard 2004 survoy oslabIishod lhal 33 por
conl of rospondonls had inlroducod il.
l66 HkM procossos
Anolhor appIicalion of conpoloncios in rovard nanagononl is lhal of caroor
faniIy grado and pay slrucluros.
DLVLLCllNC A CCMlL1LNCY lkAML\CkK
Tho Ianguago usod in conpoloncy franovorIs shouId bo cIoar and ¡argon-
froo. Wilhoul cIoar Ianguago and oxanpIos il can bo difficuIl lo assoss lho IovoI of
conpoloncy achiovod. Whon dofining conpoloncios, ospociaIIy vhon lhoy aro usod
for porfornanco nanagononl or conpoloncy-roIalod pay, il is ossonliaI lo onsuro
lhal lhoy can bo assossod. Thoy nusl nol bo vaguo or ovorIap vilh olhor conpolon-
cios and lhoy nusl spocify cIoarIy lho sorl of bohaviour lhal is oxpoclod and lho
IovoI of lochnicaI or funclionaI sIiIIs (conpoloncios) roquirod lo nool accoplabIo slan-
dards. As RanIin (2002) suggosls, il is hoIpfuI lo addross lho usor diroclIy ('you
viII.') and givo cIoar and briof oxanpIos of hov lho conpoloncy noods lo bo
porfornod.
DovoIoping a bohaviouraI conpoloncy franovorI lhal fils lho cuIluro and purposo
of lho organizalion and providos a sound basis for a nunbor of Ioy HR procossos is
nol an undorlaIing lo bo laIon IighlIy. Il roquiros a Iol of hard vorI, nuch of il
concornod vilh invoIving slaff and connunicaling vilh lhon lo achiovo undor-
slanding and buy-in. Tho slops roquirod aro doscribod boIov.
Stcp 1. Frogrammc Iauncb
Docido on lho purposo of lho franovorI and lho HR procossos for vhoro il viII bo
usod. MaIo oul a businoss caso for ils dovoIopnonl, solling oul lho bonofils lo lho
organizalion in such aroas as inprovod porfornanco, bollor soIoclion oulconos, noro
focusod porfornanco nanagononl, onpIoyoo dovoIopnonl and rovard procossos.
Iroparo a pro¡ocl pIan lhal incIudos an assossnonl of lho rosourcos roquirod and lho
cosls.
Stcp 2. lnvoIvcmcnt and communication
InvoIvo Iino nanagors and onpIoyoos in lho dosign of lho franovorI (slagos 3 and 4)
by solling up a lasI forco. Connunicalo lho ob¡oclivos of lho oxorciso lo slaff.
Stcp 3. Framcwork dcsign - compctcncy Iist
Firsl, gol lho lasI forco lo drav up a Iisl of lho coro conpoloncios and vaIuos of lho
businoss ÷ vhal il shouId bo good al doing and lho vaIuos il boIiovos shouId infIuonco
bohaviour. This providos a foundalion for an anaIysis of lho conpoloncios roquirod
by poopIo in lho organizalion. Tho ain is lo idonlify and dofino lho bohaviours lhal
conlribulo lo lho achiovononl of organizalionaI succoss, and lhoro shouId bo a
povorfuI IinI bolvoon lhoso poopIo conpoloncios and lho organizalion's coro conpo-
loncios (noro guidanco on dofining conpoloncios is providod in Chaplor 13).
Tho produclion of lho Iisl nay bo dono by brainslorning. Tho Iisl shouId bo
conparod vilh oxanpIos of olhor conpoloncy franovorIs. Tho purposo of lhis
conparison is nol lo ropIicalo olhor Iisls. Il is ossonliaI lo produco a conpoloncy
franovorI lhal fils and rofIocls lho organizalion's ovn cuIluro, vaIuos, coro conpo-
loncios and oporalions. Bul roforring lo olhor Iisls viII hoIp lo cIarify lho concIusions
roachod in lho iniliaI anaIysis and sorvo lo chocI lhal aII roIovanl aroas of conpoloncy
havo boon incIudod. Whon idonlifying conpoloncios caro nusl bo laIon lo avoid bias
bocauso of sox or raco.
Stcp 4. Framcwork dcsign - dcfinition of compctcncics
Caro noods lo bo oxorcisod lo onsuro lhal dofinilions aro cIoar and unanbiguous and
lhal lhoy viII sorvo lhoir inlondod purposo. If, for oxanpIo, ono of lho purposos is lo
provido criloria for conducling porfornanco roviovs, lhon il is nocossary lo bo corlain
lhal lho vay lho conpoloncy is dofinod, logolhor vilh supporling oxanpIos, viII
onabIo fair assossnonls lo bo nado. Tho foIIoving four quoslions havo boon
producod by MirabiIo (1998) lo losl lho oxlonl lo vhich a conpoloncy is vaIid and can
bo usod:
1. Can you doscribo lho conpoloncy in lorns lhal olhors undorsland and agroo
vilh`
2. Can you obsorvo il boing dononslralod or faiIing lo bo dononslralod`
3. Can you noasuro il`
4. Can you infIuonco il in sono vay, og by lraining, coaching or sono olhor nolhod
of dovoIopnonl`
Il is aIso inporlanl al lhis slago lo onsuro lhal dofinilions aro nol biasod.
Stcp S. Dcfinc uscs of compctcncy framcwork
Dofino oxaclIy hov il is inlondod lho conpoloncy franovorI shouId bo usod,
covoring such appIicalions as porfornanco nanagononl, rocruilnonl, Ioarning and
dovoIopnonl, and rovard.
l68 HkM procossos
Stcp 6. Tcst tbc framcwork
Tosl lho franovorI by gauging lho roaclions of a baIancod soIoclion of Iino nanagors
and olhor onpIoyoos lo onsuro lhal lhoy undorsland il and boIiovo lhal il is roIovanl
lo lhoir roIos. AIso piIol losl lho franovorI in Iivo silualions for oach of ils proposod
appIicalions.
Stcp 7. FinaIizc tbc framcwork
Anond lho franovorI as nocossary foIIoving lho losls and proparo nolos for guid-
anco on hov il shouId bo usod.
Stcp 8. Communicatc
Lol ovoryono Inov lho oulcono of lho pro¡ocl ÷ vhal lho franovorI is, hov il viII bo
usod and hov poopIo viII bonofil. Group briofings and any olhor suilabIo noans
shouId bo usod.
Stcp 9. Train
Givo Iino nanagors and HR slaff lraining in hov lo uso lho franovorI.
Stcp 10. Monitor and cvaIuatc
Monilor and ovaIualo lho uso of lho franovorI and anond il as roquirod.
DLllNlNC 1LCHNlCAL CCMlL1LNClLS
TochnicaI conpoloncios aro nosl oflon producod for gonoric roIos vilhin ¡ob faniIios
or funclions, aIlhough lhoy can bo dofinod for individuaI roIos as ´roIo-spocific
conpoloncios'. Thoy aro nol usuaIIy parl of a bohaviour-basod conpoloncy frano-
vorI, aIlhough of courso lho lvo aro cIosoIy IinIod vhon considoring and assossing
roIo donands and roquirononls. GuidoIinos on dofining lochnicaI conpoloncios aro
providod in Chaplor 13.
KLYS 1C SLCCLSS lN LSlNC CCMlL1LNClLS
Tho Ioys lo succoss in using conpoloncios aro:
franovorIs shouId nol bo ovor-conpIox,
lhoro shouId nol bo loo nany hoadings in a franovorI ÷ sovon or oighl viII oflon
suffico,
lho Ianguago usod shouId bo cIoar and ¡argon-froo,
conpoloncios nusl bo soIoclod and dofinod in vays lhal onsuro lhoy can bo
assossod by nanagors ÷ lho uso of ´bohaviouraI indicalors' is hoIpfuI,
franovorIs shouId bo roguIarIy updalod.
LMC1lCNAL lN1LLLlCLNCL
GoIonan (1995) has dofinod onolionaI inloIIigonco as: ´Tho capacily for rocognizing
our ovn fooIings and lhal of olhors, for nolivaling oursoIvos, for nanaging onolions
voII in oursoIvos as voII as olhors.' Tho four conpononls of onolionaI inloIIigonco
aro:
1. Sclj-mcncgcmcni ÷ lho abiIily lo conlroI or rodirocl disruplivo inpuIsos and
noods and roguIalo your ovn bohaviour coupIod vilh a proponsily lo pursuo
goaIs vilh onorgy and porsislonco. Tho six conpoloncios associalod vilh lhis
conpononl aro soIf-conlroI, lruslvorlhinoss and inlogrily, inilialivo, adaplabiIily
÷ conforl vilh anbiguily, oponnoss lo chango and slrong dosiro lo achiovo.
2. Sclj-cucrcncss ÷ lho abiIily lo rocognizo and undorsland your noods, onolions
and drivos as voII as lhoir offocl on olhors. This is IinIod lo lhroo conpoloncios:
soIf-confidonco, roaIislic soIf-assossnonl and onolionaI soIf-avaronoss.
3. Sccicl cucrcncss ÷ lho abiIily lo undorsland lho onolionaI naIoup of olhor poopIo
and sIiII in lroaling poopIo according lo lhoir onolionaI roaclions. This is IinIod
lo six conpoloncios: onpalhy, oxporliso in buiIding and rolaining laIonl, organi-
zalionaI avaronoss, cross-cuIluraI sonsilivily, vaIuing divorsily and sorvico lo
cIionls and cuslonors.
4. Sccicl s|ills ÷ proficioncy in nanaging roIalionships and buiIding nolvorIs lo gol
lho dosirod rosuIl fron olhors and roach porsonaI goaIs, and lho abiIily lo find
connon ground and buiId rapporl. Tho fivo conpoloncios associalod vilh lhis
conpononl aro: Ioadorship, offoclivonoss in Ioading chango, confIicl nanago-
nonl, infIuonco/connunicalion, and oxporliso in buiIding and Ioading loans.
According lo GoIonan il is nol onough lo havo a high IQ (inloIIigonco quolionl),
onolionaI inloIIigonco is aIso roquirod.
In 1998 GoIonan dofinod onolionaI inloIIigonco in a vay lhal onconpassos nany
of lho aroas covorod by lypicaI conpoloncy franovorIs. MiIIor ci cl (2001) found lhal
l70 HkM procossos
ono-lhird of onpIoyors covorod by lhoir survoy had consciousIy incIudod onolionaI
inloIIigonco-lypo faclors such as inlorporsonaI sIiIIs in lhoir franovorIs.
DuIovicz and Higgs (1999) havo producod a dolaiIod anaIysis of hov lho
onolionaI inloIIigonco oIononls of soIf-avaronoss, onolionaI nanagononl, onpalhy,
roIalionships, connunicalion and porsonaI slyIo corrospond lo conpoloncios such as
sonsilivily, fIoxibiIily, adaplabiIily, rosiIionco, inpacl, Iisloning, Ioadorship, porsua-
sivonoss, nolivaling olhors, onorgy, docisivonoss and achiovononl nolivalion. Thoy
concIudo lhal lhoro aro dislincl associalions bolvoon conpoloncy nodos and
oIononls of onolionaI inloIIigonco.
As nolod by MiIIor   (2001), a quarlor of lho onpIoyors lhoy survoyod havo
providod or fundod lraining lhal is basod on onolionaI inloIIigonco. Tho nosl
connon aroas aro in Ioadorship sIiIIs, poopIo nanagononl sIiIIs and loanvorIing.
Tho appIicalion of onolionaI inloIIigonco concopls lo nanagononl dovoIopnonl is
doaIl vilh in Chaplor 40.
Compotoncy-busod HkM l7l
Knovíodgo munugomont
KnovIodgo nanagononl is concornod vilh sloring and sharing lho visdon, undor-
slanding and oxporliso accunuIalod in an organizalion aboul ils procossos, loch-
niquos and oporalions. Il lroals InovIodgo as a Ioy rosourco. As UIrich (1998)
connonls, ´KnovIodgo has bocono a dirocl conpolilivo advanlago for conpanios
soIIing idoas and roIalionships.' Thoro is nolhing nov aboul InovIodgo nanagononl.
Hanson   (1999) ronarI lhal ´For hundrods of yoars, ovnors of faniIy businossos
havo passod on lhoir connorciaI visdon lo chiIdron, naslor craflsnon havo
painslaIingIy laughl lhoir lrados lo appronlicos, and vorIors havo oxchangod idoas
and Inov-hov on lho ¡ob.' Bul lhoy aIso ronarI lhal, Ás lho foundalion of induslri-
aIizod ocononios has shiflod fron naluraI rosourcos lo inloIIocluaI assols, oxoculivos
havo boon conpoIIod lo oxanino lho InovIodgo undorIying lhoir businoss and hov
lhal InovIodgo is usod.'
KnovIodgo nanagononl doaIs as nuch vilh poopIo and hov lhoy acquiro,
oxchango and dissoninalo InovIodgo as vilh infornalion lochnoIogy. Thal is vhy il
has bocono an inporlanl aroa for HR praclilionors, vho aro in a slrong posilion lo
oxorl infIuonco in lhis aspocl of poopIo nanagononl. Scarborough   (1999) boIiovo
lhal lhoy shouId havo ´lho abiIily lo anaIyso lho difforonl lypos of InovIodgo
dopIoyod by lho organizalion. |and] lo roIalo such InovIodgo lo issuos of organiza-
lionaI dosign, caroor pallorns and onpIoynonl socurily.'
Tho concopl of InovIodgo nanagononl is cIosoIy associalod vilh inloIIocluaI
capilaI lhoory as doscribod in Chaplor 2 in lhal il rofors lo lho nolions of hunan, sociaI

and organizalionaI or slrucluraI capilaI. Il is aIso IinIod lo lho concopls of organiza-
lionaI Ioarning and lho Ioarning organizalion as discussod in Chaplor 36. KnovIodgo
nanagononl is considorod in lhis chaplor undor lho foIIoving hoadings:
dofinilion of lho procoss of InovIodgo nanagononl,
lho concopl of InovIodgo,
lypos of InovIodgo,
lho purposo and significanco of InovIodgo nanagononl,
approachos lo InovIodgo nanagononl,
InovIodgo nanagononl issuos,
lho conlribulion of HR lo InovIodgo nanagononl.
KNC\LLDCL MANACLMLN1 DLllNLD
KnovIodgo nanagononl is ány procoss or praclico of croaling, acquiring, capluring,
sharing and using InovIodgo, vhorovor il rosidos, lo onhanco Ioarning and porfor-
nanco in organizalions' (Scarborough  , 1999). Thoy suggosl lhal il focusos on lho
dovoIopnonl of firn-spocific InovIodgo and sIiIIs lhal aro lho rosuIl of organiza-
lionaI Ioarning procossos. KnovIodgo nanagononl is concornod vilh bolh slocIs and
fIovs of InovIodgo. SlocIs incIudod oxporliso and oncodod InovIodgo in conpulor
syslons. FIovs roprosonl lho vays in vhich InovIodgo is lransforrod fron poopIo lo
poopIo or fron poopIo lo a InovIodgo dalabaso. KnovIodgo nanagononl has aIso
boon dofinod by Tan (2000) as: ´Tho procoss of syslonalicaIIy and aclivoIy nanaging
and Iovoraging lho sloros of InovIodgo in an organizalion'.
KnovIodgo nanagononl invoIvos lransforning InovIodgo rosourcos by idonli-
fying roIovanl infornalion and lhon dissoninaling il so lhal Ioarning can laIo pIaco.
KnovIodgo nanagononl slralogios pronolo lho sharing of InovIodgo by IinIing
poopIo vilh poopIo, and by IinIing lhon lo infornalion so lhal lhoy Ioarn fron docu-
nonlod oxporioncos.
KnovIodgo can bo slorod in dalabanIs and found in prosonlalions, roporls,
Iibrarios, poIicy docunonls and nanuaIs. Il can bo novod around lho organizalion
lhrough infornalion syslons and by lradilionaI nolhods such as noolings,
vorIshops, coursos, ńaslor cIassos', vrillon pubIicalions, vidoos and lapos. Tho
inlranol providos an addilionaI and vory offoclivo nodiun for connunicaling
InovIodgo.
l74 HkM procossos
1HL CCNCLl1 Cl KNC\LLDCL
A dislinclion vas nado by RyIo (1949) bolvoon Ínoving hov' and Ínoving lhal'.
Knoving hov is lho abiIily of a porson lo porforn lasIs, and Inoving lhal is hoIding
piocos of InovIodgo in ono's nind.
BIacIIor (1995) nolos lhal ´KnovIodgo is nuIlifacolod and conpIox, boing bolh
silualod and abslracl, inpIicil and oxpIicil, dislribulod and individuaI, physicaI and
nonlaI, dovoIoping and slalic, vorbaI and oncodod. Ho calogorizos forns of InovI-
odgo as:
cm|c!!c! in lochnoIogios, ruIos and organizalionaI procoduros,
cnculiurc! as coIIoclivo undorslandings, slorios, vaIuos and boIiofs,
cm|c!ic! inlo lho praclicaI aclivily-basod conpoloncios and sIiIIs of Ioy nonbors
of lho organizalion (io praclicaI InovIodgo or Ínov-hov'),
cm|rccc! as lho concopluaI undorslanding and cognilivo sIiIIs of Ioy nonbors (io
concopluaI InovIodgo or Ínov-hov').
NonaIa (1991) suggosls lhal InovIodgo is hoId oilhor by individuaIs or coIIoclivoIy.
In BIacIIor's lorns, onbodiod or onbracod InovIodgo is individuaI and onboddod,
and cuIluraI InovIodgo is coIIoclivo.
Il can bo arguod (Scarborough and Carlor, 2000) lhal InovIodgo onorgos fron lho
coIIoclivo oxporionco of vorI and is sharod bolvoon nonbors of a parlicuIar group or
connunily.
Il is usofuI lo dislinguish bolvoon dala, infornalion and InovIodgo:
!cic consisls of lho basic facls ÷ lho buiIding bIocIs for infornalion and InovI-
odgo,
injcrmciicn is dala lhal havo boon procossod in a vay vhich is noaningfuI lo
individuaIs, il is avaiIabIo lo anyono onlilIod lo gain accoss lo il, as DrucIor (1988)
vrolo, ínfornalion is dala ondovod vilh noaning and purposo',
|nculc!gc is infornalion pul lo produclivo uso, il is porsonaI and oflon inlangibIo
and il can bo oIusivo ÷ lho lasI of lying il dovn, oncoding il and dislribuling il is
lricIy.
Lxpíící| and |ací| |novícdgc
NonaIa (1991) and NonaIa and TaIouchi (1995) slalod lhal InovIodgo is oilhor
oxpIicil or lacil. ExpIicil InovIodgo can bo codifiod: il is rocordod and avaiIabIo,
and is hoId in dalabasos, in corporalo inlranols and inloIIocluaI proporly porlfoIios.
Knovíodgo munugomont l75
Tacil InovIodgo oxisls in poopIo's ninds. Il is difficuIl lo arlicuIalo in vriling and is
acquirod lhrough porsonaI oxporionco. As suggoslod by Hanson ci cl (1999), il
incIudos scionlific or lochnoIogicaI oxporliso, oporalionaI Inov-hov, insighls aboul
an induslry, and businoss ¡udgononl. Tho nain chaIIongo in InovIodgo nanagononl
is hov lo lurn lacil InovIodgo inlo oxpIicil InovIodgo.
1HL lLklCSL AND SlCNlllCANCL Cl KNC\LLDCL
MANACLMLN1
As oxpIainod by BIaIo (1998), lho purposo of InovIodgo nanagononl is lo capluro a
conpany's coIIoclivo oxporliso and dislribulo il lo ´vhorovor il can achiovo lho
biggosl payoff'. This is in accordanco vilh lho rosourco-basod viov of lho firn vhich,
as arguod by Granl (1991), suggosls lhal lho sourco of conpolilivo advanlago Iios
vilhin lho firn (io in ils poopIo and lhoir InovIodgo), nol in hov il posilions ilsoIf in
lho narIol. TrussIor (1998) connonls lhal ´lho capabiIily lo galhor, Iovor, and uso
InovIodgo offoclivoIy viII bocono a na¡or sourco of conpolilivo advanlago in nany
businossos ovor lho noxl fov yoars'. A succossfuI conpany is a InovIodgo-croaling
conpany.
KnovIodgo nanagononl is aboul golling InovIodgo fron lhoso vho havo il lo
lhoso vho nood il in ordor lo inprovo organizalionaI offoclivonoss. In lho infornalion
ago, InovIodgo ralhor lhan physicaI assols or financiaI rosourcos is lho Ioy lo
conpolilivonoss. In ossonco, as poinlod oul by MocIIonborg ci cl (1999), ´KnovIodgo
nanagononl aIIovs conpanios lo capluro, appIy and gonoralo vaIuo fron lhoir
onpIoyoos' croalivily and oxporliso'.
AllkCACHLS 1C KNC\LLDCL MANACLMLN1
Thc codífíca|íon and pcr·onaíí2a|íon approachc·
Tvo approachos lo InovIodgo nanagononl havo boon idonlifiod by Hanson ci cl
(1999):
1. 1|c cc!ijicciicn sircicgq ÷ InovIodgo is carofuIIy codifiod and slorod in dalabasos
vhoro il can bo accossod and usod oasiIy by anyono in lho organizalion.
KnovIodgo is oxpIicil and is codifiod using a ´poopIo-lo-docunonl' approach.
This slralogy is lhoroforo docunonl drivon. KnovIodgo is oxlraclod fron lho
porson vho dovoIopod il, nado indopondonl of lhal porson and ro-usod for
l76 HkM procossos
various purposos. Il viII bo slorod in sono forn of oIoclronic roposilory for
poopIo lo uso. This aIIovs nany poopIo lo soarch for and rolriovo codifiod InovI-
odgo vilhoul having lo conlacl lho porson vho originaIIy dovoIopod il. This
slralogy roIios IargoIy on infornalion lochnoIogy lo nanago dalabasos and aIso
on lho uso of lho inlranol.
2. 1|c pcrscnclizciicn sircicgq ÷ InovIodgo is cIosoIy liod lo lho porson vho has
dovoIopod il and is sharod nainIy lhrough dirocl porson-lo-porson conlacls. This
is a ´porson-lo-porson' approach vhich invoIvos sharing lacil InovIodgo. Tho
oxchango is achiovod by croaling nolvorIs and oncouraging faco-lo-faco connu-
nicalion bolvoon individuaIs and loans by noans of infornaI conforoncos, vorI-
shops, brainslorning and ono-lo-ono sossions.
Hanson ci cl slalo lhal lho choico of slralogy shouId bo conlingonl on lho organizalion,
vhal il doos, hov il doos il, and ils cuIluro. Thus consuIlancios such as Ernsl &
Young, using InovIodgo lo doaI vilh rocurring probIons, nay roIy nainIy on codifi-
calion so lhal rocordod soIulions lo siniIar probIons aro oasiIy rolriovabIo. Slralogy
consuIlancy firns such as McKinsoy or Bains, hovovor, viII roIy nainIy on a porson-
aIizalion slralogy lo hoIp lhon lo lacIIo lho high-IovoI slralogic probIons lhoy aro
prosonlod vilh, vhich donand lho provision of croalivo, anaIylicaIIy rigorous advico.
Thoy nood lo channoI individuaI oxporliso, and lhoy find and dovoIop poopIo vho aro
abIo lo uso a porson-lo-porson InovIodgo-sharing approach offoclivoIy. In lhis sorl of
firn, diroclors or oxporls can bo oslabIishod vho can bo approachod by consuIlanls
by loIophono, o-naiI or porsonaI conlacl.
Tho rosoarch conduclod by Hanson ci cl oslabIishod lhal conpanios vhich uso
InovIodgo offoclivoIy pursuo ono slralogy prodoninanlIy and uso lho socond
slralogy lo supporl lho firsl. Thoso vho lry lo oxcoI al bolh slralogios risI faiIing al
bolh.
Thc |novícdgc-crca|íng compan,
In lho opinion of NonaIa and TaIouchi (1995), a coro conpolilivo aclivily of organi-
zalions is InovIodgo croalion ÷ án organic, fIuid and sociaIIy conslruclod procoss in
vhich difforonl InovIodgos aro bIondod lo produco innovalivo oulconos lhal aro
prodiclod or prodiclabIo'. FundanonlaI lo InovIodgo croalion is lho bIonding of lacil
and oxpIicil InovIodgo lhrough procossos of sociaIizalion (lacil lo lacil), oxlornaIiza-
lion (lacil lo oxpIicil), inlornaIizalion (oxpIicil lo lacil) and conbinalion (oxpIicil lo
oxpIicil).
Thc rc·ourcc-ba·cd approach
Scarborough and Carlor (2000) doscribo InovIodgo nanagononl as ´lho allonpl by
nanagononl lo aclivoIy croalo, connunicalo and oxpIoil InovIodgo as a rosourco for
lho organizalion'. Thoy suggosl lhal lhis allonpl has lochnicaI, sociaI and ocononic
conpononls:
In lochnicaI lorns InovIodgo nanagononl invoIvos conlraIizing InovIodgo lhal
is curronlIy scallorod across lho organizalion and codifying lacil forns of InovI-
odgo.
In sociaI and poIilicaI lorns, InovIodgo nanagononl invoIvos coIIoclivizing
InovIodgo so lhal il is no Iongor lho oxcIusivo proporly of individuaIs or groups.
In ocononic lorns, InovIodgo nanagononl is a rosponso by organizalions lo lho
nood lo inlonsify lhoir croalion and oxpIoilalion of InovIodgo.
KNC\LLDCL MANACLMLN1 SYS1LMS
A survoy of 431 US and Europoan firns by RuggIos (1998) found lhal lho foIIoving
syslons voro usod:
Croaling an inlranol (47 por conl).
Croaling ´dala varohousos', Iargo physicaI dalabasos lhal hoId infornalion fron a
vido varioly of sourcos (33 por conl).
Using docision supporl syslons vhich conbino dala anaIysis and sophislicalod
nodoIs lo supporl non-roulino docision naIing (33 por conl).
Using ´groupvaro', infornalion connunicalion lochnoIogios such as o-naiI or
Lolus Nolos discussion basos, lo oncourago coIIaboralion bolvoon poopIo lo sharo
InovIodgo (33 por conl).
Croaling nolvorIs and connunilios of inlorosl or praclico of InovIodgo vorIors
lo sharo InovIodgo (24 por conl).
Mapping sourcos of inlornaI oxporliso by, for oxanpIo, producing óxporl yoIIov
pagos' and diroclorios of connunilios (18 por conl).
KNC\LLDCL MANACLMLN1 lSSLLS
Tho various approachos roforrod lo abovo do nol provido oasy ansvors. Tho issuos
lhal nood lo bo addrossod in dovoIoping InovIodgo nanagononl procossos aro
discussod boIov.
l78 HkM procossos
Thc pacc of changc
Ono of lho nain issuos in InovIodgo nanagononl is hov lo Ioop up vilh lho paco of
chango and idonlify vhal InovIodgo noods lo bo caplurod and sharod.
Rcía|íng |novícdgc managcmcn| ·|ra|cg, |o bu·ínc·· ·|ra|cg,
As Hanson   (1999) shov, il is nol InovIodgo   bul lho vay il is appIiod lo
slralogic ob¡oclivos lhal is lho crilicaI ingrodionl in conpolilivonoss. Thoy poinl oul
lhal ćonpolilivo slralogy nusl drivo InovIodgo nanagononl slralogy', and lhal
nanagononls havo lo ansvor lho quoslion: ´Hov doos InovIodgo lhal rosidos in lho
conpany add vaIuo for cuslonors`' MocIIonborg   (1999) arguo lhal organizalions
shouId ´slarl vilh lho businoss vaIuo of vhal lhoy galhor. If il doosn'l gonoralo vaIuo,
drop il.'
Tcchnoíog, and pcopíc
TochnoIogy nay bo conlraI lo conpanios adopling a codificalion slralogy bul for
lhoso foIIoving a porsonaIizalion slralogy, IT is bosl usod in a supporlivo roIo. As
Hanson   (1999) connonl:
ln tho codìlìcutìon modoí, munugors nood to ìmpíomont u systom thut ìs much íìko u
trudìtìonuí íìbrury - ìt must contuìn u íurgo cucho ol documonts und ìncíudo sourch
ongìnos thut uííov poopío to lìnd und uso tho documonts thoy nood. ln tho porsonuíìzu-
tìon modoí, ìt's moro ìmportunt to huvo u systom thut uííovs poopío to lìnd othor poopío.
Scarborough   (1999) suggosl lhal ´lochnoIogy shouId bo viovod noro as a noans
of connunicalion and Ioss as a noans of sloring InovIodgo'. KnovIodgo nanago-
nonl is noro aboul poopIo lhan lochnoIogy. As rosoarch by Davonporl (1996) oslab-
Iishod, nanagors gol lvo-lhirds of lhoir infornalion fron faco-lo-faco or loIophono
convorsalions.
Thoro is a Iinil lo hov nuch lacil InovIodgo can bo codifiod. In organizalions
roIying noro on lacil lhan oxpIicil InovIodgo, a porson-lo-porson approach vorIs
bosl, and IT can onIy supporl lhis procoss, il cannol ropIaco il.
Thc ·ígnífícancc of procc·· and ·ocíaí capí|aí and cuí|urc
A prooccupalion vilh lochnoIogy nay noan lhal loo IillIo allonlion is paid lo lho
procossos (sociaI, lochnoIogicaI and organizalionaI) lhrough vhich InovIodgo
conbinos and inloracls in difforonl vays (BIacIIor, 1995). Tho Ioy procoss is lho inlor-
aclions bolvoon poopIo. This conslilulos lho sociaI capilaI of an organizalion, io lho
ńolvorI of roIalionships |lhal] conslilulo a vaIuabIo rosourco for lho conducl of
sociaI affairs' (Nahpiol and GhoshaI, 1998). SociaI nolvorIs can bo parlicuIarIy
inporlanl in onsuring lhal InovIodgo is sharod. Whal is aIso roquirod is anolhor
aspocl of sociaI capilaI: lrusl. IoopIo viII nol bo viIIing lo sharo InovIodgo vilh
lhoso vhon lhoy do nol lrusl.
Tho cuIluro of lho conpany nay inhibil InovIodgo sharing. Tho norn nay bo for
poopIo lo Ioop InovIodgo lo lhonsoIvos as nuch as lhoy can bocauso ÍnovIodgo is
povor'. An opon cuIluro viII oncourago poopIo lo sharo lhoir idoas and InovIodgo.
Knovícdgc vor|cr·
KnovIodgo vorIors as dofinod by DrucIor (1993) aro individuaIs vho havo high
IovoIs of oducalion and spociaIisl sIiIIs conbinod vilh lho abiIily lo appIy lhoso sIiIIs
lo idonlify and soIvo probIons. As Argyris (1991) poinls oul: ´Tho nuls and boIls of
nanagononl. incroasingIy consisls of guiding and inlograling lho aulononous bul
inlorconnoclod vorI of highIy sIiIIod poopIo.' KnovIodgo nanagononl is aboul lho
nanagononl and nolivalion of InovIodgo vorIors vho croalo InovIodgo and viII
bo lho Ioy pIayors in sharing il.
1HL CCN1klßL1lCN Cl Hk 1C KNC\LLDCL
MANACLMLN1
HR can naIo an inporlanl conlribulion lo InovIodgo nanagononl sinpIy bocauso
InovIodgo is sharod bolvoon poopIo, il is nol ¡usl a nallor of capluring oxpIicil
InovIodgo lhrough lho uso of infornalion lochnoIogy. Tho roIo of HR is lo onsuro
lhal lho organizalion has lho inloIIocluaI capilaI il noods. Tho rosourco-basod viov of
lho firn onphasizos, in lho vords of CappoIIi and CrocIor-Hoflor (1996), lhal
´dislinclivo hunan rosourco praclicos hoIp lo croalo uniquo conpoloncios lhal diffor-
onlialo producls and sorvicos and, in lurn, drivo conpolilivonoss'.
Tcn va,· ín vhích HR can con|ríbu|c
Tho nain vays in vhich HR can conlribulo lo InovIodgo nanagononl aro sunna-
rizod boIov and doscribod in noro dolaiI in lho rosl of lhis soclion.
1. HoIp lo dovoIop an opon cuIluro in vhich lho vaIuos and norns onphasizo lho
inporlanco of sharing InovIodgo.
2. Ironolo a cIinalo of connilnonl and lrusl.
l80 HkM procossos
3. Adviso on lho dosign and dovoIopnonl of organizalions vhich faciIilalo InovI-
odgo sharing lhrough nolvorIs and connunilios of praclico (groups of poopIo
vho sharo connon concorns aboul aspocls of lhoir vorI), and loanvorI.
4. Adviso on rosourcing poIicios and provido rosourcing sorvicos vhich onsuro lhal
vaIuod onpIoyoos vho can conlribulo lo InovIodgo croalion and sharing aro
allraclod and rolainod.
5. Adviso on nolhods of nolivaling poopIo lo sharo InovIodgo and rovarding
lhoso vho do so.
6. HoIp in lho dovoIopnonl of porfornanco nanagononl procossos vhich focus on
lho dovoIopnonl and sharing of InovIodgo.
7. DovoIop procossos of organizalionaI and individuaI Ioarning vhich viII
gonoralo and assisl in dissoninaling InovIodgo.
8. Sol up and organizo vorIshops, conforoncos, soninars and synposia vhich
onabIo InovIodgo lo bo sharod on a porson-lo-porson basis.
9. In con¡unclion vilh IT, dovoIop syslons for capluring and, as far as possibIo,
codifying oxpIicil and lacil InovIodgo.
10. GonoraIIy, pronolo lho causo of InovIodgo nanagononl vilh sonior nanagors
lo oncourago lhon lo oxorl Ioadorship and supporl InovIodgo nanagononl
inilialivos.
Cuí|urc dcvcíopmcn|
An opon cuIluro is ono in vhich as Schoin (1985) suggosls, poopIo conlribulo oul of a
sonso of connilnonl and soIidarily. RoIalionships aro characlorizod by nuluaIily
and lrusl. In such a cuIluro, organizalions pIaco a high priorily on nuluaI supporl,
coIIaboralion and croalivily, and on conslruclivo roIalionships. Thoro is no ´quicI fix'
vay in vhich a cIosod cuIluro vhoro lhoso priorilios do nol oxisl can bo convorlod
inlo an opon cuIluro. Long-oslabIishod cuIluros aro difficuIl lo chango. HR can
oncourago nanagononl lo dovoIop purposo and vaIuo slalononls vhich spoII oul
lhal an inporlanl ain of lho organizalion is lo achiovo conpolilivo advanlago by
dovoIoping and offoclivoIy using uniquo rosourcos of InovIodgo and oxporliso, and
lhal lo achiovo lho ain, sharing InovIodgo is coro vaIuo. Such slalononls nay bo
rholoric bul lhoy can bo convorlod inlo roaIily lhrough lho various procossos
doscribod boIov.
|romo|c a cííma|c of commí|mcn| and |ru·|
Gaining connilnonl is a nallor of lrying lo gol ovoryono lo idonlify vilh lho
purposo and vaIuos of lho organizalion, vhich viII incIudo procossos for dovoIoping
and sharing InovIodgo. Connilnonl can bo onhancod by dovoIoping a slralogy
Knovíodgo munugomont l8l
vhich viII incIudo lho inpIononlalion of connunicalion, oducalion and lraining
progrannos, inilialivos lo incroaso invoIvononl and óvnorship', and lho inlroduc-
lion of porfornanco and rovard procossos.
DovoIoping a high-lrusl organizalion noans croaling lrusl bolvoon nanagononl
and onpIoyoos as a basis for oncouraging lrusl bolvoon individuaI onpIoyoos or
groups of onpIoyoos. IoopIo aro noro IiIoIy lo lrusl nanagononl if ils aclions aro
fair, oquilabIo, consislonl and lransparonl, and if il Ioops ils vord.
Il is difficuIl aIlhough nol inpossibIo lo dovoIop lrusl bolvoon nanagononl and
onpIoyoos. Bul il is nol possibIo lo naIo individuaI onpIoyoos lrusl ono anolhor, and
such lrusl is inporlanl if InovIodgo is lo bo sharod. DovoIoping a cIinalo of lrusl in
lho organizalion hoIps, olhorviso il is a nallor of dovoIoping sociaI capilaI in lho
sonso of pulling poopIo inlo posilions vhoro lhoy havo lo vorI logolhor, and oncour-
aging inloraclion and nolvorIing so lhal individuaIs rocognizo lho vaIuo of sharing
InovIodgo bocauso il hoIps achiovo connon and accoplod ains. This procoss can bo
hoIpod by loan-buiIding aclivilios. Trusl nay aIso bo onhancod if InovIodgo is
oxchangod as a nallor of courso in foruns, conforoncos olc. DiaIoguo occurs bolvoon
poopIo vho vanl lo connocl and aro givon opporlunilios lo do so in a coIIaboralivo,
croalivo and adaplivo cuIluro.
Crganí2a|íon dc·ígn and dcvcíopmcn|
HR can conlribulo lo offoclivo InovIodgo nanagononl by advising on lho dosign of
procoss-basod organizalions in vhich lho focus is on horizonlaI procossos lhal cul
across organizalionaI boundarios. Such organizalions roIy IargoIy on nolvorIing and
cross-funclionaI or inlor-discipIinary pro¡ocl loans or lasI forcos, and InovIodgo-
sharing is an ossonliaI parl of lho oporalion. Allonlion is paid lo idonlifying and
oncouraging ćonnunilios of praclico' vhich, as dofinod by Wongor and Snydor
(2000), aro ´groups of poopIo infornaIIy bound logolhor by sharod oxporliso and
a passion for ¡oinl onlorpriso'. Thoy aro soon as inporlanl bocauso il is vilhin
such connunilios lhal nuch of lho organizalion's lacil InovIodgo is croalod and
sharod.
Tho roIo dofinilions lhal onorgo fron organizalion dosign aclivilios shouId onpha-
sizo InovIodgo-sharing as bolh an accounlabiIily (a Ioy rosuIl aroa) and a conpo-
loncy (an oxpoclod nodo of bohaviour). Thus il can bocono an accoplod parl of lho
fabric and lhoroforo lho cuIluro of lho organizalion.
OrganizalionaI dovoIopnonl aclivilios can focus on loan-buiIding in connunilios
vilh an onphasis on procossos of inloraclion, connunicalion and parlicipalion. Tho
ains vouId bo lo dovoIop a ´sharing' cuIluro.
l82 HkM procossos
Rc·ourcíng
HR conlribulos lo onhancing InovIodgo nanagononl procossos by advising on hov
lo allracl and rolain poopIo vilh lho roquirod sIiIIs and abiIilios, incIuding lhoso vho
aro IiIoIy lo oxhibil lho bohaviours noodod in a InovIodgo-sharing cuIluro. This
noans dovising conpoloncy franovorIs for rocruilnonl and dovoIopnonl purposos
vhich incIudo InovIodgo-sharing as a Ioy bohaviour. Such a conpoloncy couId bo
dofinod as ´Tho disposilion lo sharo InovIodgo fuIIy and viIIingIy vilh olhor
nonbors of lho connunily'. Quoslions vouId bo asIod al lho inlorviov slago on lho
approach adoplod by candidalos lo sharing InovIodgo in lhoir prosonl organizalion.
Olhor quoslions aIong lho Iinos of lho ono givon boIov couId bo pul lo losl candidalos
on lhoir viovs:
1hìs orgunìzutìon roíìos to u consìdorubío oxtont on uchìovìng succoss through tho dovoí-
opmont ol nov products und tochnìquos. \o boíìovo thut ìt ìs ìmportunt to onsuro thut
tho knovíodgo gonorutod by such dovoíopmonts ìs sproud uround tho busìnoss us vìdoíy
us possìbío to thoso vho mìght put ìt to good uso. \hut purt do you thìnk you couíd píuy
us un ìndìvìduuí ìn thìs procoss:
Iosing lhis sorl of quoslion al lho inlorviov slago hoIps lo dofino oxpoclalions as parl
of lho psychoIogicaI conlracl.
Assossnonl conlros can aIso incIudo oxorcisos and losls dosignod lo losl lho dispo-
silion and abiIily of individuaIs lo sharo InovIodgo.
Rolaining InovIodgo vorIors is a nallor of providing a supporlivo vorIpIaco
onvironnonl and nolivaling lhon lhrough bolh langibIo and inlangibIo rovards as
discussod boIov.
\o|íva|íon
A sludy by Tanpoo (1993) idonlifiod four Ioy nolivalors for InovIodgo vorIors:
1. IorsonaI grovlh ÷ lho opporlunily for individuaIs lo fuIIy roaIizo lhoir polonliaI.
2. OccupalionaI aulonony ÷ a vorI onvironnonl in vhich InovIodgo vorIors can
achiovo lho lasI assignod lo lhon.
3. TasI achiovononl ÷ a sonso of acconpIishnonl fron producing vorI lhal is of
high quaIily and roIovanco lo lho organizalion.
4. Monoy rovards ÷ an incono lhal is a ¡usl rovard for lhoir conlribulion lo corpo-
ralo succoss and lhal synboIizos lhoir conlribulion lo lhal succoss.
Hanson   (1999) slalo lhal in lhoir ćodificalion nodoI', nanagors nood lo dovoIop
a syslon lhal oncouragos poopIo lo vrilo dovn vhal lhoy Inov and lo gol lhoso
docunonls inlo lho oIoclronics doposilory. Thoy boIiovo lhal roaI inconlivos ÷ nol ¡usl
onlicononls ÷ aro roquirod lo gol poopIo lo laIo lhoso slops. In conpanios foIIoving
lho porsonaIizalion nodoI, rovards for sharing InovIodgo diroclIy vilh olhor poopIo
nay havo lo bo difforonl. Dirocl financiaI rovards for conlribuling lo lho codificalion
and sharing of InovIodgo nay oflon bo inapproprialo, bul lhis couId bo a sub¡ocl for
discussion in a porfornanco roviov as parl of a porfornanco nanagononl procoss.
Tho pronolion and dovoIopnonl of porfornanco nanagononl procossos by HR can
naIo an inporlanl conlribulion lo InovIodgo nanagononl, by providing for bohav-
iouraI oxpoclalions vhich aro roIalod lo InovIodgo-sharing lo bo dofinod, and
onsuring lhal acluaI bohaviours aro roviovod and, vhoro approprialo, rovardod by
financiaI or non-financiaI noans. Iorfornanco nanagononl roviovs can idonlify
voaInossos and dovoIopnonl noods in lhis aspocl and inilialo porsonaI dovoIopnonl
pIans vhich aro dosignod lo nool lhoso noods.
Ono slarling poinl for lho procoss couId bo lho cascading of corporalo coro vaIuos
for InovIodgo-sharing lo individuaIs, so lhal lhoy undorsland vhal lhoy aro
oxpoclod lo do lo supporl lhoso coro vaIuos. As nonlionod oarIior, InovIodgo-
sharing can bo incIudod as an oIononl of a conpoloncy franovorI, and lho dosirod
bohaviour vouId bo spoIl oul and roviovod. For oxanpIo, posilivo indicalors such as
lhoso Iislod boIov couId bo usod as a basis for agrooing conpoloncy roquirononls
and assossing lho oxlonl lo vhich lhoy aro nol. Tho foIIoving aro oxanpIos of posi-
livo bohaviour in nooling conpoloncy oxpoclalions for InovIodgo-sharing:
is oagor lo sharo InovIodgo vilh coIIoaguos,
laIos posilivo slops lo sol up group noolings lo oxchango roIovanl infornalion
and InovIodgo,
buiIds nolvorIs vhich provido for InovIodgo sharing,
onsuros as approprialo lhal InovIodgo is caplurod, codifiod, rocordod and
dissoninalod lhrough lho inlranol and/or olhor noans of connunicalion.
Hanson   nonlion lhal al Ernsl & Young, consuIlanls aro ovaIualod al porfornanco
roviovs aIong fivo dinonsions, ono of vhich is lhoir ćonlribulion lo and uliIizalion
of lho InovIodgo assol of lho firn'. Al Bain, parlnors aro ovaIualod oach yoar on a
varioly of dinonsions, incIuding hov nuch dirocl hoIp lhoy havo givon coIIoaguos.
In a 360-dogroo foodbacI procoss (soo Chaplor 34), ono of lho dinonsions for an
assossnonl by coIIoaguos and dirocl roporls couId bo lho oxlonl lo vhich an indi-
viduaI sharos InovIodgo.
l84 HkM procossos
Crganí2a|íonaí and índívíduaí ícarníng
OrganizalionaI Ioarning laIos pIaco vhon poopIo Ioarn coIIaboralivoIy (HoyIo, 1995).
Il invoIvos accunuIaling, anaIysing and uliIizing InovIodgo rosourcos vhich
conlribulo lo lho achiovononl of businoss ob¡oclivos. KnovIodgo nanagononl
approachos as doscribod in lho chaplor can naIo a na¡or conlribulion lo lho onhanco-
nonl of Ioarning in an organizalion. Iraclicos associalod vilh croaling lho righl onvi-
ronnonl for sharing InovIodgo viII in parlicuIar pronolo organizalionaI Ioarning by
croaling a ´rich Iandscapo of Ioarning and dovoIopnonl opporlunilios' (KossoIs, 1996).
Tho concopl of a Ioarning organizalion (soo Chaplor 36) is aIso roIovanl. As dofinod
by MiIIor and Slovarl (1999), ono of lho characlorislics of such an organizalion is lhal
´lhoro aro voII-dofinod procossos for dofining, croaling, capluring, sharing and acling
on InovIodgo'. And Garvin (1993) posluIalos lhal Ioarning organizalions ´lransfor
InovIodgo quicIIy and officionlIy lhroughoul lho organizalion by noans of fornaI
lraining progrannos IinIod lo inpIononlalion'.
OrganizalionaI Ioarning, hovovor, is basod on individuaI Ioarning, and lho signifi-
canco of InovIodgo nanagononl and lho lochniquos avaiIabIo lo supporl il can bo
Ioarnl in fornaI lraining sossions or noniloring progrannos dosignod and faciIilalod
by lho HR funclion.
Vor|·hop· and confcrcncc· c|c
HR can pIay an inporlanl parl in InovIodgo nanagononl by solling up and faciIi-
laling vorIshops, conforoncos, soninars and foruns in vhich nonbors oxchango
infornalion and idoas, discuss vhal lhoy havo Ioarnl and agroo on vhal uso can bo
nado of lho InovIodgo lhoy havo acquirod. Aparl fron lhoir vaIuo in dissoninaling
InovIodgo, such galhorings can hoIp lo dovoIop an onvironnonl in vhich InovI-
odgo-sharing is accoplod as a naluraI and conlinuing aclivily.
Vor|íng ví|h íT
KnovIodgo nanagononl is noilhor lho prosorvo of lho IT funclion nor lhal of HR. Tho
lvo funclions nood lo vorI logolhor. IT onsuros lhal InovIodgo is rocordod and
nado accoplabIo lhrough noans such as lho inlranol. HR coIIaboralos by providing
noans for lacil InovIodgo lo bo coIIoclod and, vhoro foasibIo, codifiod.
|romo|íng |hc cau·c
Sono organizalions such as ICL havo appoinlod a ÍnovIodgo progranno diroclor'
lo dovoIop corporalo InovIodgo assols. Olhors havo roIiod upon IT or businoss
loans. Bul HR can naIo a na¡or conlribulion nol onIy in lho spocific aclivilios
roforrod lo abovo, bul aIso in gonoraIIy pronoling lho causo of InovIodgo nanago-
nonl, onphasizing lo sonior nanagononl al ovory opporlunily lho inporlanco of
dovoIoping a cuIluro in vhich lho significanco of InovIodgo nanagononl is rocog-
nizod.
l86 HkM procossos
Anuíysìng roíos, compotoncìos
und skìíís
RoIo anaIysis is a fundanonlaI HR procoss. Il providos lho infornalion noodod lo
produco roIo profiIos and for uso in rocruilnonl, Ioarning and dovoIopnonl, porfor-
nanco nanagononl and ¡ob ovaIualion. For roasons givon boIov, lho lorns ´roIo
anaIysis' and ´roIo profiIo' aro rapidIy ropIacing lho lorns ´¡ob anaIysis' and ´¡ob
doscriplion'. Hovovor, roIo anaIysis usos basicaIIy lho sano lochniquos as ¡ob
anaIysis and nany foaluros of roIo profiIos aro found in noro lradilionaI ¡ob doscrip-
lions. }ob anaIysis is aIso sliII usod lo provido lho dala for ¡ob ovaIualion, as oxpIainod
in Chaplor 44.
In lhis chaplor, roIo anaIysis is covorod firsl and lho chaplor conlinuos vilh doscrip-
lions of lho associalod lochniquos of conpoloncy and sIiIIs anaIysis.
kCLL ANALYSlS
Roíc anaí,·í· dcfíncd
RoIo anaIysis is lho procoss of finding oul vhal poopIo aro oxpoclod lo achiovo vhon
carrying oul lhoir vorI and lho conpoloncios and sIiIIs lhoy nood lo nool lhoso
oxpoclalions.

Roíc profííc·
Tho rosuIl of roIo anaIysis is a roIo profiIo, vhich dofinos lho oulconos roIo hoIdors
aro oxpoclod lo doIivor in lorns of Ioy rosuIl aroas or accounlabiIilios. Il aIso Iisls lho
conpoloncios roquirod lo porforn offoclivoIy in lho roIo ÷ vhal roIo hoIdors nood lo
Inov and bo abIo lo do. IrofiIos can bo individuaI or gonoric (covoring siniIar roIos).
Roíc· and ¡ob·
If il is usod in ils slriclosl sonso, lho lorn ´roIo' rofors lo lho parl poopIo pIay in lhoir
vorI ÷ lho onphasis is on lhoir bohaviour. For oxanpIo, a roIo profiIo nay slross lho
nood for fIoxibiIily. In lhis sonso, a roIo can bo dislinguishod fron a ¡ob, vhich consisls
of a group of proscribod lasIs/aclivilios lo bo carriod oul or dulios lo bo porfornod.
}ob anaIysis dofinos lhoso lasIs or dulios in ordor lo produco a jc| !cscripiicn. This
is usuaIIy proscriplivo and infIoxibIo. Il spoIIs oul oxaclIy vhal ¡ob hoIdors aro
roquirod lo do. Il givos poopIo lho opporlunily lo say: Íl's nol in ny ¡ob doscriplion',
noaning lhal lhoy onIy fooI lhoy havo lo do lho lasIs Iislod lhoro.
IncroasingIy, lho praclico is lo rofor lo roIos, roIo anaIysis and roIo profiIos ralhor
lhan lo ¡obs, ¡ob anaIysis and ¡ob doscriplions. Tho Iallor aro no Iongor in favour
bocauso lhoy lond lo bo proscriplivo, roslricl fIoxibiIily and do nol focus on oulconos
or lho conpoloncios noodod lo achiovo lhon. RoIo profiIos aro proforrod bocauso lhoy
aro concornod vilh porfornanco, rosuIls, and InovIodgo and sIiII roquirononls and
aro lhoroforo in accord vilh lho prosonl-day onphasis on high-porfornanco vorIing,
oulconos and conpoloncios.
|urpo·c of roíc anaí,·í·
RoIo anaIysis ains lo produco lho foIIoving infornalion aboul a roIo for uso in
rocruilnonl, porfornanco nanagononl and Ioarning and dovoIopnonl ovaIualion:
Otcrcll purpcsc ÷ vhy lho roIo oxisls and, in ossonco, vhal lho roIo hoIdor is
oxpoclod lo conlribulo.
Orgcnizciicn ÷ lo vhon lho roIo hoIdor roporls and vho roporls lo lho roIo hoIdor.
Kcq rcsuli crccs cr ccccunic|iliiics ÷ vhal lho roIo hoIdor is roquirod lo achiovo in
oach of lho nain oIononls of lho roIo.
Ccmpcicncq rc¡uircmcnis ÷ lho spocific lochnicaI conpoloncios allachod lo lho roIo,
vhal lho roIo hoIdor is oxpoclod lo Inov and lo bo abIo lo do.
For ¡ob ovaIualion purposos, lho roIo viII aIso bo anaIysod in lorns of lho faclors usod
in lho ¡ob ovaIualion schono.
l88 HkM procossos
RoIo anaIysis nay bo carriod oul by HR or olhor lrainod poopIo acling as roIo
anaIysls. Bul Iino nanagors can aIso carry oul roIo anaIysis in con¡unclion vilh indi-
viduaI nonbors of lhoir loans as an inporlanl parl of lhoir porfornanco nanago-
nonl rosponsibiIilios (soo Chaplor 33).
Approach |o roíc anaí,·í· b, ·pccíaíí2cd roíc anaí,·|·
Tho ossonco of roIo anaIysis is lho appIicalion of syslonalic nolhods lo lho coIIoclion
of lho infornalion roquirod lo produco a roIo profiIo undor lho hoadings sol oul
abovo. Tho slops roquirod lo coIIocl lhis infornalion aro:
1. Oblain docunonls such as lho organizalion slrucluro, oxisling ¡ob doscriplions
(lroal lhoso vilh caulion, lhoy aro IiIoIy lo bo oul of dalo), and procoduro or
lraining nanuaIs lhal givo infornalion aboul lho ¡ob.
2. AsI nanagors for fundanonlaI infornalion concorning lho ovoraII purposo of
lho roIo, lho Ioy rosuIl aroas and lho lochnicaI conpoloncios roquirod.
3. AsI lho roIo hoIdors siniIar quoslions aboul lhoir roIos.
Tho nolhods lhal can bo usod aro inlorviovs, quoslionnairos or obsorvalion.
lntcrvicws
To oblain lho fuII fIavour of a roIo, il is bosl lo inlorviov roIo hoIdors and chocI
lho findings vilh lhoir nanagors or loan Ioadors. Tho ain of lho inlorviov is lo
oblain aII lho roIovanl facls aboul lho roIo lo provido lho infornalion roquirod for a
roIo profiIo. Il is hoIpfuI lo uso a chocIIisl vhon conducling lho inlorviov. EIaboralo
chocIIisls aro nol nocossary, lhoy onIy confuso poopIo. Tho basic quoslions lo bo
ansvorod aro:
1. Whal is lho lilIo of your roIo`
2. To vhon aro you rosponsibIo`
3. Who is rosponsibIo lo you` (An organizalion charl is hoIpfuI.)
4. Whal is lho nain purposo of your roIo, io in ovoraII lorns, vhal aro you oxpoclod
lo do`
5. Whal aro lho Ioy aclivilios you havo lo carry oul in your roIo` Try lo group lhon
undor no noro lhan 10 hoadings.
6. Whal aro lho rosuIls you aro oxpoclod lo achiovo in oach of lhoso Ioy aclivilios`
7. Whal aro you oxpoclod lo Inov lo bo abIo lo carry oul your roIo`
8. Whal sIiIIs shouId you havo lo carry oul your roIo`
Anuíysìng roíos, compotoncìos und skìíís l89
Tho ansvors lo lhoso quoslions nay nood lo bo sorlod oul ÷ lhoy can oflon rosuIl in a
nass of ¡unbIod infornalion lhal has lo bo anaIysod so lhal lho various aclivilios can
bo dislinguishod and rofinod lo sovon or oighl Ioy aroas.
Tho advanlagos of lho inlorvioving nolhod aro lhal il is fIoxibIo, can provido in-
doplh infornalion and is oasy lo organizo and proparo. Il is lhoroforo lho nosl
connon approach. Bul inlorvioving can bo lino-consuning, vhich is vhy in Iargo
roIo anaIysis oxorcisos, quoslionnairos as doscribod boIov nay bo usod lo provido
advanco infornalion aboul lho ¡ob. This spoods up lho inlorvioving procoss or ovon
ropIacos lho inlorviov aIlogolhor, aIlhough lhis noans lhal nuch of lho ´fIavour' of
lho ¡ob ÷ io vhal il is roaIIy IiIo ÷ nay bo Iosl.
Qucstionnairc
Quoslionnairos aboul lhoir roIos can bo conpIolod by roIo hoIdors and approvod by
lho roIo hoIdor's nanagor or loan Ioador. Thoy aro hoIpfuI vhon a Iargo nunbor of
roIos havo lo bo covorod. Thoy can aIso savo inlorvioving lino by rocording puroIy
facluaI infornalion and by onabIing lho anaIysl lo slrucluro quoslions in advanco lo
covor aroas lhal nood lo bo oxpIorod in groalor doplh. Tho sinpIor lho quoslionnairo
lho bollor. Il nood onIy covor lho oighl quoslions Iislod abovo.
Tho advanlago of quoslionnairos is lhal lhoy can produco infornalion quicIIy and
choapIy for a Iargo nunbor of ¡obs. Bul a subslanliaI sanpIo is noodod, and lho
conslruclion of a quoslionnairo is a sIiIIod ¡ob lhal shouId onIy bo carriod oul on lho
basis of sono proIininary fioIdvorI. Il is highIy advisabIo lo piIol losl quoslionnairos
boforo Iaunching inlo a fuII-scaIo oxorciso. Tho accuracy of lho rosuIls aIso doponds on
lho viIIingnoss and abiIily of ¡ob hoIdors lo conpIolo quoslionnairos. Many poopIo
find il difficuIl lo oxpross lhonsoIvos in vriling aboul lhoir vorI.
Obscrvation
Obsorvalion noans sludying roIo hoIdors al vorI, noling vhal lhoy do, hov lhoy do
il, and hov nuch lino il laIos. This nolhod is nosl approprialo for roulino adninis-
lralivo or nanuaI roIos, bul il is soIdon usod bocauso of lho lino il laIos.
Roíc anaí,·í· a· par| of a pcrformancc managcmcn| procc··
As oxpIainod in noro dolaiI in Chaplor 33, lho basis of porfornanco pIanning and
roviov procossos is providod by a roIo profiIo. To dovoIop a roIo profiIo il is nocossary
for lho Iino nanagor and lho individuaI lo gol logolhor and agroo lho Ioy rosuIl aroas
and conpoloncios. Tho quoslions aro siniIar lo lhoso lhal vouId bo pul by a roIo
anaIysl, bul for Iino nanagors can bo Iinilod lo lho foIIoving:
l90 HkM procossos
Whal do you lhinI aro lho nosl inporlanl lhings you havo lo do`
Whal do you boIiovo you aro oxpoclod lo achiovo in oach of lhoso aroas`
Hov viII you ÷ or anyono oIso ÷ Inov vholhor or nol you havo achiovod lhon`
Whal do you havo lo Inov and bo abIo lo do lo porforn offoclivoIy in lhoso aroas`
Whal InovIodgo and sIiIIs in lorns of quaIificalions, lochnicaI and procoduraI
InovIodgo, probIon-soIving, pIanning and connunicalion sIiIIs, olc do roIo
hoIdors nood lo carry oul lho roIo offoclivoIy`
This procoss roquiros sono sIiII, vhich noods lo bo dovoIopod by lraining foIIovod
by praclico. Il is an aroa in vhich HR spociaIisls can usofuIIy coach and foIIov-up on
a ono-lo-ono basis aflor an iniliaI lraining sossion.
Roíc profííc con|cn|
RoIo profiIos aro sol oul undor lho foIIoving hoadings:
Rclc iiilc.
Dcpcrimcni.
Rcspcnsi|lc ic.
Rcspcnsi|lc ic rclc |cl!cr.
Purpcsc cj i|c rclc ÷ dofinod in ono roasonabIy succincl sonlonco lhal dofinos vhy
lho roIo oxisls in lorns of lho ovoraII conlribulion lho roIo hoIdor naIos.
Kcq rcsuli crccs ÷ if al aII possibIo lhoso shouId bo Iinilod lo sovon or oighl,
corlainIy nol noro lhan 10. Each Ioy rosuIl aroa shouId bo dofinod in a singIo
sonlonco boginning vilh an aclivo vorb (og, idonlify, dovoIop, supporl), vhich
providos a posilivo indicalion of vhal has lo bo dono and oIininalos unnocossary
vording. Doscribo lho ob¡ocl of lho vorb (vhal is dono) as succinclIy as possibIo,
for oxanpIo: losl nov syslons, posl cash lo lho noninaI and saIos Iodgors,
schoduIo produclion, onsuro lhal nanagononl accounls aro producod, proparo
narIoling pIans. Slalo briofIy lho purposo of lho aclivily in lorns of oulpuls or
slandards lo bo achiovod, for oxanpIo: losl nov syslons lo onsuro lhoy nool
agrood syslons spocificalions, posl cash lo lho noninaI and saIos Iodgors in ordor
lo provido up-lo-dalo and accuralo financiaI infornalion, schoduIo produclion in
ordor lo nool oulpul and doIivory largols, onsuro lhal nanagononl accounls aro
producod lhal provido lho roquirod IovoI of infornalion lo nanagononl and indi-
viduaI nanagors on financiaI porfornanco againsl budgol and on any variancos,
proparo narIoling pIans lhal supporl lho achiovononl of lho narIoling slralogios
of lho onlorpriso, aro roaIislic, and provido cIoar guidanco on lho aclions lo bo
laIon by lho dovoIopnonl, produclion, narIoling and saIos doparlnonls.
Anuíysìng roíos, compotoncìos und skìíís l9l
Ncc! ic |ncu ÷ lho InovIodgo roquirod ovoraII or in spocific Ioy rosuIl aroas of lho
businoss and ils conpolilors and cuslonors, lochniquos, procossos, procoduros or
producls.
Ncc! ic |c c|lc ic !c ÷ lho sIiIIs roquirod in oach aroa of aclivily.
|xpccic! |c|cticur ÷ lho bohaviours parlicuIarIy oxpoclod of lho roIo hoIdor
(bohaviouraI conpoloncios), vhich nay bo oxlraclod fron lho organizalion's
conpoloncy franovorI.
An oxanpIo of a roIo profiIo is givon in Figuro 13.1.
l92 HkM procossos
Role title: Database administrator
Department: Ìnformation systems
Purpose of role: Responsible for the development and support of databases and their underlying environ-
ment.
Key result areas
Ìdentify database requirements for all projects that require data management in order to meet the
needs of internal customers.
Develop project plans collaboratively with colleagues to deliver against their database needs.
Support underlying database infrastructure.
Liaise with system and software providers to obtain product information and support.
Manage project resources (people and equipment) within predefined budget and criteria, as agreed
with line manager and originating department.
Allocate work to and supervise contractors on day-to-day basis.
Ensure security of the underlying database infrastructure through adherence to established protocols
and to develop additional security protocols where needed.
Need to know
Oracle database administration.
Operation of Designer 2000 and oracle forms SQL/PLSQL, Unix administration, shell programming.
Able to:
Analyse and choose between options where the solution is not always obvious.
Develop project plans and organize own workload on a timescale of 1-2 months.
Adapt to rapidly changing needs and priorities without losing sight of overall plans and priorities.
Ìnterpret budgets in order to manage resources effectively within them.
Negotiate with suppliers.
Keep abreast of technical developments and trends, bring these into day-to-day work when feasible
and build them into new project developments.
Behavioural competencies
Aim to get things done well and set and meet challenging goals, create own measures of excellence
and constantly seek ways of improving performance.
Analyse information from range of sources and develop effective solutions/recommendations.
Communicate clearly and persuasively, orally or in writing, dealing with technical issues in a non-
technical manner.
Work participatively on projects with technical and non-technical colleagues.
Develop positive relationships with colleagues as the supplier of an internal service.
FIgurc 13.1 ExanpIo of a roIo profiIo
CCMlL1LNCY ANALYSlS
Conpoloncy anaIysis usos bohaviouraI anaIysis lo oslabIish lho bohaviouraI dinon-
sions lhal affocl roIo porfornanco and produco conpoloncy franovorIs. FunclionaI
anaIysis or a vorsion of il can bo usod lo dofino lochnicaI conpoloncios.
Anaí,·íng bchavíouraí compc|cncíc·
Thoro aro six approachos lo bohaviouraI conpoloncy anaIysis. In asconding ordor of
conpIoxily lhoso aro:
1. oxporl opinion,
2. slruclurod inlorviov,
3. vorIshops,
4. crilicaI-incidonl lochniquo,
5. roporlory grid anaIysis,
6. ¡ob conpoloncy assossnonl.
Fxpcrt opinion
Tho basic, crudosl and Ioasl salisfaclory nolhod is for an óxporl' nonbor of lho HR
doparlnonl, possibIy in discussion vilh olhor óxporls' fron lho sano doparlnonl, lo
drav up a Iisl fron lhoir ovn undorslanding of ´vhal counls' coupIod vilh an
anaIysis of olhor pubIishod Iisls, such as lhoso givon in Chaplor 11.
This is unsalisfaclory bocauso lho IiIoIihood of lho conpoloncios boing appro-
prialo, roaIislic and noasurabIo in lho absonco of dolaiIod anaIysis, is fairIy ronolo.
Tho Iisl londs lo bo bIand and, bocauso Iino nanagors and ¡ob hoIdors havo nol boon
invoIvod, unaccoplabIo.
Structurcd intcrvicw
This nolhod bogins vilh a Iisl of conpoloncios dravn up by óxporls' and pro-
coods by sub¡ocling a nunbor of roIo hoIdors lo a slruclurod inlorviov. Tho inlor-
viovor slarls by idonlifying lho Ioy rosuIl aroas of lho roIo and goos on lo anaIyso lho
bohaviouraI characlorislics lhal dislinguish porfornors al difforonl IovoIs of conpo-
lonco.
Tho basic quoslion is: ´Whal aro lho posilivo or nogalivo indicalors of bohaviour
lhal aro conducivo or non-conducivo lo achioving high IovoIs of porfornanco`' Thoso
nay bo anaIysod undor such hoadings as:
porsonaI drivo (achiovononl nolivalion),
inpacl on rosuIls,
anaIylicaI povor,
slralogic lhinIing,
croalivo lhinIing (abiIily lo innovalo),
docisivonoss,
connorciaI ¡udgononl,
loan nanagononl and Ioadorship,
inlorporsonaI roIalionships,
abiIily lo connunicalo,
abiIily lo adapl and copo vilh chango and prossuro,
abiIily lo pIan and conlroI pro¡ocls.
In oach aroa inslancos viII bo soughl vhich iIIuslralo offoclivo or Ioss offoclivo bohav-
iour.
Ono of lho probIons vilh lhis approach is lhal il roIios loo nuch on lho abiIily of
lho oxporl lo drav oul infornalion fron inlorviovoos. Il is aIso undosirabIo lo uso a
doduclivo approach, vhich pro-onpls lho anaIysis vilh a proparod Iisl of conpoloncy
hoadings. Il is far bollor lo do lhis by noans of an induclivo approach lhal slarls fron
spocific lypos of bohaviour and lhon groups lhon undor conpolonco hoadings. This
can bo dono in a vorIshop by anaIysing posilivo and nogalivo indicalors lo gain an
undorslanding of lho conpolonco dinonsions of an occupalion or ¡ob, as doscribod
boIov.

WorIshops bring a group of poopIo logolhor vho havo óxporl' InovIodgo or oxpori-
onco of lho roIo ÷ nanagors and roIo hoIdors as approprialo ÷ vilh a faciIilalor,
usuaIIy bul nol nocossariIy a nonbor of lho HR doparlnonl or an oulsido consuIlanl.
Tho nonbors of lho vorIshop bogin by golling agroononl lo lho ovoraII purposo
of lho roIo and ils Ioy rosuIl aroas. Thoy lhon dovoIop oxanpIos of offoclivo and Ioss
offoclivo bohaviour for oach aroa, vhich aro rocordod on fIipcharls. For oxanpIo, ono
of lho Ioy rosuIl aroas for a divisionaI HR diroclor nighl bo hunan rosourco pIan-
ning, dofinod as: Prcpcrcs jcrcccsis cj |umcn rcscurcc rc¡uircmcnis cn! plcns jcr i|c cc¡ui-
siiicn, rcicniicn cn! cjjcciitc uiilizciicn cj cmplcqccs, u|ic| cnsurc i|ci i|c ccmpcnq´s ncc!s
jcr pccplc crc mci.
Tho posilivo indicalors for lhis conpolonco aroa couId incIudo:
sooIs invoIvononl in businoss slralogy fornuIalion,
l94 HkM procossos
conlribulos lo businoss pIanning by laIing a slralogic viov of Iongor-lorn hunan
rosourco issuos lhal aro IiIoIy lo affocl businoss slralogy,
nolvorIs vilh sonior nanagononl coIIoaguos lo undorsland and rospond lo lho
hunan rosourco pIanning issuos lhoy raiso,
suggosls praclicaI vays lo inprovo lho uso of hunan rosourcos, for oxanpIo lho
inlroduclion of annuaI hours.
Nogalivo indicalors couId incIudo:
laIos a narrov viov of HR pIanning ÷ doos nol soon lo bo inloroslod in or undor-
sland lho vidor businoss conloxl,
IacIs lho dolorninalion lo ovorcono probIons and doIivor forocasls,
faiIs lo anlicipalo sIiIIs shorlagos, for oxanpIo unabIo lo nool lho nuIlisIiIIing
roquirononls inpIicil in lho nov conpulor inlogralod nanufacluring syslon,
doos nol soon lo laII lho sano Ianguago as Iino nanagononl coIIoaguos ÷ faiIs lo
undorsland lhoir roquirononls,
sIov in rosponding lo roquosls for hoIp.
Whon lho posilivo and nogalivo indicalors havo boon agrood lho noxl slop is lo disliI
lho conpoloncy dinonsions lhal can bo inforrod fron lho Iisls. In lhis oxanpIo lhoy
couId bo:
slralogic capabiIily,
businoss undorslanding,
achiovononl nolivalion,
inlorporsonaI sIiIIs,
connunicalion sIiIIs,
consuIlancy sIiIIs.
Thoso dinonsions nighl aIso bo rofIoclod in lho anaIysis of olhor aroas of conpoloncy
so lhal, progrossivoIy, a picluro of lho conpoloncios is buiIl up lhal is IinIod lo acluaI
bohaviour in lho vorIpIaco.
Tho faciIilalor's ¡ob is lo pronpl, hoIp lho group lo anaIyso ils findings and assisl
gonoraIIy in lho produclion of a sol of conpolonco dinonsions lhal can bo iIIuslralod
by bohaviour-basod oxanpIos. Tho faciIilalor nay havo sono idoas aboul lho sorl of
hoadings lhal nay onorgo fron lhis procoss, bul shouId nol lry lo infIuonco lho
group lo cono lo a concIusion lhal il has nol vorIod oul for ilsoIf, aIboil vilh sono
assislanco fron lho faciIilalor.
WorIshops can uso lho crilicaI incidonl or roporlory grid lochniquos, as doscribod
boIov.
CriticaI-incidcnt tccbniquc
Tho crilicaI-incidonl lochniquo is a noans of oIiciling dala aboul offoclivo or Ioss offoc-
livo bohaviour lhal is roIalod lo oxanpIos of acluaI ovonls ÷ crilicaI incidonls. Tho
lochniquo is usod vilh groups of ¡ob hoIdors and/or lhoir nanagors or olhor óxporls'
(sonolinos, Ioss offoclivoIy, vilh individuaIs) as foIIovs:
ExpIain vhal lho lochniquo is and vhal il is usod for, io, ´lo assoss vhal consli-
lulos good or poor porfornanco by anaIysing ovonls lhal havo boon obsorvod lo
havo a nolicoabIy succossfuI or unsuccossfuI oulcono, lhus providing noro
facluaI and ´roaI¨ infornalion lhan by sinpIy Iisling lasIs and guossing porfor-
nanco roquirononls'.
Agroo and Iisl lho Ioy rosuIl in lho roIo lo bo anaIysod. To savo lino, lho anaIysl
can oslabIish lhoso prior lo lho nooling bul il is nocossary lo onsuro lhal lhoy aro
agrood provisionaIIy by lho group, vhich can bo loId lhal lho Iisl nay voII bo
anondod in lho Iighl of lho forlhconing anaIysis.
TaIo oach aroa of lho roIo in lurn and asI lho group for oxanpIos of crilicaI inci-
donls. If, for inslanco, ono of lho ¡ob rosponsibiIilios is doaIing vilh cuslonors, lho
foIIoving roquosl couId bo nado: Í vanl you lo loII no aboul a parlicuIar occa-
sion al vorI vhich invoIvod you ÷ or lhal you obsorvod ÷ in doaIing vilh a
cuslonor. ThinI aboul vhal lho circunslancos voro, for oxanpIo vho looI parl,
vhal lho cuslonor asIod for, vhal you or lho olhor nonbor of lho slaff did and
vhal lho oulcono vas.'
CoIIocl infornalion aboul lho crilicaI incidonl undor lho foIIoving hoadings:
vhal lho circunslancos voro, vhal lho individuaI did, lho oulcono of vhal lho
individuaI did.
Rocord lhis infornalion on a fIipcharl.
Conlinuo lhis procoss for oach Ioy rosuIl aroa.
Rofor lo lho fIipcharl and anaIyso oach incidonl by oblaining ralings of lho
rocordod bohaviour on a scaIo such as 1 for Ioasl offoclivo lo 5 for nosl offoclivo.
Discuss lhoso ralings lo gol iniliaI dofinilions of offoclivo and inoffoclivo porfor-
nanco for oach of lho Ioy rosuIl aroas.
Rofino lhoso dofinilions as nocossary aflor lho nooling ÷ il can bo difficuIl lo gol a
group lo produco finishod dofinilions.
Iroduco lho finaI anaIysis, vhich can Iisl lho conpoloncios roquirod and incIudo
porfornanco indicalors or slandards of porfornanco for oach Ioy rosuIl aroa.
kcpcrtory grid
LiIo lho crilicaI incidonl lochniquo, lho roporlory grid can bo usod lo idonlify lho
l96 HkM procossos
dinonsions lhal dislinguish good fron poor slandards of porfornanco. Tho loch-
niquo is basod on KoIIy's (1955) porsonaI conslrucl lhoory. IorsonaI conslrucls aro lho
vays in vhich vo viov lho vorId. Thoy aro porsonaI bocauso lhoy aro highIy indi-
viduaI and lhoy infIuonco lho vay vo bohavo or viov olhor poopIo's bohaviour. Tho
aspocls of lho roIo lo vhich lhoso ćonslrucls' or ¡udgononls appIy aro caIIod
óIononls'.
To oIicil ¡udgononls, a group of poopIo aro asIod lo conconlralo on corlain
oIononls, vhich aro lho lasIs carriod oul by roIo hoIdors, and dovoIop conslrucls
aboul lhoso oIononls. This onabIos lhon lo dofino lho quaIilios lhal indicalo lho osson-
liaI roquirononls for succossfuI porfornanco.
Tho procoduro foIIovod by lho anaIysl is Inovn as lho ´lriadic nolhod of oIicila-
lion' (a sorl of lhroo-card lricI) and invoIvos lho foIIoving slops:
1. Idonlify lho lasIs or oIononls of lho roIo lo bo sub¡oclod lo roporlory grid
anaIysis. This is dono by ono of lho olhor forns of ¡ob anaIysis, og inlorvioving.
2. Lisl lho lasIs on cards.
3. Drav lhroo cards al randon fron lho pacI and asI lho nonbors of lho group lo
noninalo vhich of lho lhroo lasIs is lho odd ono oul fron lho poinl of viov of lho
quaIilios and characlorislics noodod lo porforn il.
4. Irobo lo oblain noro spocific dofinilions of lhoso quaIilios or characlorislics in lho
forn of oxpoclod bohaviour. If, for oxanpIo, a characlorislic has boon doscribod as
lho ábiIily lo pIan and organizo', asI quoslions such as: ´Whal sorl of bohaviour
or aclions indicalo lhal sonoono is pIanning offoclivoIy`' or, ´Hov can vo loII if
sonoono is nol organizing his or hor vorI parlicuIarIy voII`'
5. Drav lhroo noro cards fron lho pacI and ropoal slops 3 and 4.
6. Ropoal lhis procoss unliI aII lho cards havo boon anaIysod and lhoro do nol
appoar lo bo any noro conslrucls Iofl lo bo idonlifiod.
7. Lisl lho conslrucls and asI lho group nonbors lo ralo oach lasI on ovory quaIily,
using a six or sovon poinl scaIo.
8. CoIIocl and anaIyso lho scoros in ordor lo assoss lhoir roIalivo inporlanco. This
can bo dono slalislicaIIy, as doscribod by MarIhan (1987).
LiIo lho crilicaI-incidonl lochniquo, roporlory grid anaIysis hoIps poopIo lo arlicuIalo
lhoir viovs by roforonco lo spocific oxanpIos. An addilionaI advanlago is lhal lho
roporlory grid naIos il oasior for lhon lo idonlify lho bohaviouraI characlorislics or
conpoloncios roquirod in a ¡ob by Iiniling lho aroa of conparison lhrough lho lriadic
lochniquo.
AIlhough a fuII slalislicaI anaIysis of lho oulcono of a roporlory grid oxorciso is
hoIpfuI, lho nosl inporlanl rosuIls lhal can bo oblainod aro lho doscriplions of vhal
conslilulo good or poor porfornanco in oach oIononl of lho ¡ob.
Bolh lho roporlory grid and lho crilicaI incidonl lochniquos roquiro a sIiIIod anaIysl
vho can probo and drav oul lho doscriplions of ¡ob characlorislics. Thoy aro quilo
dolaiIod and lino-consuning, bul ovon if lho fuII procoss is nol foIIovod, nuch of lho
nolhodoIogy is of uso in a Ioss oIaboralo approach lo conpoloncy anaIysis.
Cboicc of approacb
WorIshops aro probabIy lho bosl approach. Thoy gol poopIo invoIvod and do nol roIy
on óxporl' opinion. CrilicaI incidonl or roporlory grid lochniquos aro noro sophisli-
calod bul lhoy laIo noro lino and oxporliso lo run.
Anaí,·íng |cchnícaí compc|cncíc· ¹func|íonaí anaí,·í·)
Tho approach lo lho dofinilion of lochnicaI conpoloncios diffors fron lhal usod for
bohaviouraI conpoloncios. As lochnicaI conpoloncios aro in offocl conpoloncos, a
funclionaI anaIysis procoss can bo usod. This nolhodoIogy vas originaIIy dovoIopod
by MansfioId and MilchoII (1986) and Fino (1988). In ossonco, funclionaI anaIysis
focusos on lho cuiccmcs of vorI porfornanco. Nolo lhal lho anaIysis is nol sinpIy
concornod vilh cuipuis in lho forn of quanlifiabIo rosuIls bul doaIs vilh lho broador
rosuIls lhal havo lo bo achiovod by roIo hoIdors. An oulcono couId bo a salisfiod
cuslonor, a noro highIy nolivalod subordinalo or a bollor-funclioning loan.
FunclionaI anaIysis doaIs vilh procossos such as dovoIoping slaff, providing foodbacI
and noniloring porfornanco as voII as lasIs. As doscribod by MiIIor ci cl (2001) il
slarls vilh an anaIysis of lho roIos fuIfiIIod by an individuaI in ordor lo arrivo al a
doscriplion of lho soparalo conpononls or únils' of porfornanco lhal naIo up lhal
roIo. Tho rosuIling unils consisl of porfornanco criloria, doscribod in lorns of
oulconos, and a doscriplion of lho InovIodgo and sIiII roquirononls lhal undorpin
succossfuI porfornanco.
FunclionaI anaIysis is lho nolhod usod lo dofino conpolonco-basod slandards for
NVQs/SNVQs.
SKlLLS ANALYSlS
SIiIIs anaIysis dolorninos lho sIiIIs roquirod lo achiovo an accoplabIo slandard of
porfornanco. Il is nainIy usod for lochnicaI, crafl, nanuaI and offico ¡obs lo provido
lho basis for dovising Ioarning and lraining progrannos. SIiIIs anaIysis slarls fron a
broad ¡ob anaIysis bul goos inlo dolaiIs of nol onIy vhal ¡ob hoIdors havo lo do bul
aIso lho parlicuIar abiIilios and sIiIIs lhoy nood lo do il. SIiIIs anaIysis lochniquos aro
doscribod boIov.
l98 HkM procossos
Iob brca|dovn
Tho ¡ob broaIdovn lochniquo anaIysos a ¡ob inlo soparalo oporalions, procossos, or
lasIs, vhich can bo usod as lho oIononls of an inslruclion soquonco. A¡ob broaIdovn
anaIysis is rocordod in a slandard fornal of lhroo coIunns:
1. 1|c sicgc cclumn in vhich lho difforonl slops in lho ¡ob aro doscribod ÷ nosl soni-
sIiIIod ¡obs can oasiIy bo broIon dovn inlo lhoir consliluonl parls.
2. 1|c insiruciicn cclumn in vhich a nolo is nado againsl oach slop of hov lho lasI
shouId bo dono. This, in offocl, doscribos vhal has lo bo Ioarnl by lho lrainoo.
3. 1|c |cq pcinis cclumn in vhich any spociaI poinls such as quaIily slandards or
safoly inslruclions aro nolod againsl oach slop so lhal lhoy can bo onphasizod lo
a lrainoo Ioarning lho ¡ob.
\anuaí ·|ííí· anaí,·í·
ManuaI sIiIIs anaIysis is a lochniquo dovoIopod fron vorI sludy. Il isoIalos for
inslruclionaI purposos lho sIiIIs and InovIodgo onpIoyod by oxporioncod vorIors
in porforning lasIs lhal roquiro nanuaI doxlorily. Il is usod lo anaIyso shorl-cycIo,
ropolilivo oporalions such as assonbIy lasIs and olhor siniIar faclory vorI.
Tho hand, fingor and olhor body novononls of oxporioncod oporalivos aro
obsorvod and rocordod in dolaiI as lhoy carry oul lhoir vorI. Tho anaIysis concon-
lralos on lho lricIy parls of lho ¡ob vhich, vhiIo prosonling no difficuIly lo lho oxpo-
rioncod oporalivo, havo lo bo anaIysod in doplh boforo lhoy can bo laughl lo lrainoos.
Nol onIy aro lho hand novononls rocordod, bul parlicuIars aro aIso nolod of lho cuos
(visuaI and olhor sonsos) lhal lho oporalivo absorbs vhon porforning lho lasIs.
ExpIanalory connonls aro addod vhon nocossary.
Ta·| anaí,·í·
TasI anaIysis is a syslonalic anaIysis of lho bohaviour roquirod lo carry oul a lasI
vilh a viov lo idonlifying aroas of difficuIly and lho approprialo lraining lochniquos
and Ioarning aids nocossary for succossfuI inslruclion. Il can bo usod for aII lypos of
¡obs bul is spocificaIIy roIovanl lo adninislralivo lasIs.
Tho anaIylicaI approach usod in lasI anaIysis is siniIar lo lhoso adoplod in lho ¡ob
broaIdovn and nanuaI sIiIIs anaIysis lochniquos. Tho rosuIls of lho anaIysis aro
usuaIIy rocordod in a slandard fornal of four coIunns as foIIovs:
1. 1cs| ÷ a briof doscriplion of oach oIononl.
2. Ictcl cj impcricncc ÷ lho roIalivo significanco of oach lasI lo lho succossfuI porfor-
nanco of lho roIo.
3. Dcgrcc cj !ijjiculiq ÷ lho IovoI of sIiII or InovIodgo roquirod lo porforn oach
lasI.
4. 1rcining mci|c! ÷ lho inslruclionaI lochniquos, praclico and oxporionco roquirod.
fauí|· anaí,·í·
FauIls anaIysis is lho procoss of anaIysing lho lypicaI fauIls lhal occur vhon por-
forning a lasI, ospociaIIy lho noro coslIy fauIls. Il is carriod oul vhon lho incidonco
of fauIls is high. A sludy is nado of lho ¡ob and, by quoslioning vorIors and loan
Ioadors, lho nosl connonIy occurring fauIls aro idonlifiod. A fauIls spocificalion is
lhon producod, vhich providos lrainoos vilh infornalion on vhal fauIls can bo
nado, hov lhoy can bo rocognizod, vhal causos lhon, vhal offocl lhoy havo, vho is
rosponsibIo for lhon, vhal aclion lho lrainoos shouId laIo vhon a parlicuIar fauIl
occurs, and hov a fauIl can bo provonlod fron rocurring.
Iob ícarníng anaí,·í·
}ob Ioarning anaIysis, as doscribod by Ioarn and KandoIa (1993), conconlralos on lho
inpuls and procoss ralhor lhan lho conlonl of lho ¡ob. Il anaIysos nino Ioarning sIiIIs
lhal conlribulo lo salisfaclory porfornanco. A Ioarning sIiII is ono usod lo incroaso
olhor sIiIIs or InovIodgo and roprosonls broad calogorios of ¡ob bohaviour lhal nood
lo bo Ioarnl. Tho Ioarning sIiIIs aro lho foIIoving:
1. physicaI sIiIIs roquiring praclico and ropolilion lo gol righl,
2. conpIox procoduros or soquoncos of aclivily lhal aro nonorizod or foIIovod
vilh lho aid of vrillon naloriaI such as nanuaIs,
3. non-vorbaI infornalion such as sighl, sound, snoII, laslo and louch, vhich is
usod lo chocI, assoss or discrininalo, and vhich usuaIIy laIos praclico lo gol
righl,
4. nonorizing facls or infornalion,
5. ordoring, priorilizing and pIanning, vhich rofor lo lho dogroo lo vhich a roIo
hoIdor has any rosponsibiIily for and fIoxibiIily in dolornining lho vay a parlic-
uIar aclivily is porfornod,
6. IooIing ahoad and anlicipaling,
7. diagnosing, anaIysing and probIon-soIving, vilh or vilhoul hoIp,
8. inlorproling or using vrillon nanuaIs and olhor sourcos of infornalion such as
diagrans or charls,
9. adapling lo nov idoas and syslons.
200 HkM procossos
In conducling a ¡ob Ioarning anaIysis inlorviov, lho inlorviovor oblains infornalion
on lho nain ains and principaI aclivilios of lho ¡ob and lhon, using quoslion cards for
oach of lho nino Ioarning sIiIIs, anaIysos oach aclivily in noro doplh, rocording
rosponsos and oblaining as nany oxanpIos as possibIo undor oach hoading.
Anuíysìng roíos, compotoncìos und skìíís 20l
\ork und ompíoymont
1|is pcri cj i|c |cn!|cc| is ccnccrnc! uii| i|c jccicrs cjjcciing cmplcqmcni in
crgcnizciicns. li cxplcrcs i|c nciurc cj ucr|, i|c cmplcqmcni rclciicns|ip cn! i|c
impcricni ccnccpi cj i|c psqc|clcgiccl ccnircci.
 
1ho nuturo ol vork
In lhis chaplor lho naluro of vorI is oxpIorod ÷ vhal il is, lho various lhoorios aboul
vorI, lho organizalionaI faclors lhal affocl il and alliludos lovards vorI.
\HA1 lS \CkK:
WorI is lho oxorlion of offorl and lho appIicalion of InovIodgo and sIiIIs lo achiovo a
purposo. Mosl poopIo vorI lo oarn a Iiving ÷ lo naIo nonoy. Bul lhoy aIso vorI
bocauso of lho olhor salisfaclions il brings, such as doing sonolhing vorlhvhiIo, a
sonso of achiovononl, prosligo, rocognilion, lho opporlunily lo uso and dovoIop abiIi-
lios, lho scopo lo oxorciso povor, and conpanionship. Wilhin organizalions, lho
naluro of lho vorI carriod oul by individuaIs and vhal lhoy fooI aboul il aro
govornod by lho onpIoynonl roIalionship as discussod in Chaplor 15 and lho psycho-
IogicaI conlracl as considorod in Chaplor 16.
In lhis chaplor lho various lhoorios of vorI aro sunnarizod in lho firsl soclion. Tho
foIIoving soclions doaI vilh lho organizalionaI faclors lhal affocl vorI such as lho
Íoan' and ´fIoxibIo' organizalion, changos in lho pallorn of vorIing, unonpIoynonl,
caroors and alliludos lo vorI.

1HLCklLS AßCL1 \CkK
Tho lhoorios aboul vorI doscribod in lhis soclion consisl of Iabour procoss lhoory,
agoncy lhoory and oxchango lhoory. Tho concopl of lho pIuraIisl and unilarisl frano
of roforonco is aIso considorod.
Labour procc·· |hcor,
Labour procoss lhoory vas originaIIy fornuIalod by KarI Marx (lransIalod in 1976).
His lhosis vas lhal surpIus is approprialod fron Iabour by paying il Ioss lhan lho
vaIuo il adds lo lho Iabour procoss. CapilaIisls lhoroforo dosign lho Iabour procoss lo
socuro lho oxlraclion of surpIus vaIuo. Tho hunan capacily lo produco is subordi-
nalod lo lho oxpIoilalivo donands of lho capilaIisl, vhich is an aIion povor
confronling lho vorIor vho boconos a ćrippIod nonslrosily by furlhoring his sIiII
as if in a forcing houso lhrough lho supprossion of a vhoIo vorId of produclivo drivos
and incIinalions'.
ConsidorabIy Ialor, a vorsion of Iabour procoss lhoory vas sol oul by Bravornan
(1974). His viov vas lhal lho appIicalion of nodorn nanagononl lochniquos, in
conbinalion vilh nochanizalion and aulonalion, socuros lho roaI subordinalion of
Iabour and do-sIiIIing of vorI in lho offico as voII as lho shop-fIoor. Ho slalod lhal
lho ronovaI of aII forns of conlroI fron lho vorIor is ´lho idoaI lovards vhich
nanagononl londs, and in pursuil of vhich il usos ovory produclivo innovalion
shapod by scionco'. Ho sav lhis as ossonliaIIy lho appIicalion of ´TayIorisn' (io F. W
TayIor's concopl of scionlific nanagononl, noaning lho uso of syslonalic obsorvalion
and noasurononl, lasI spociaIisn and, in offocl, lho roduclion of vorIors lo lho IovoI
of officionlIy funclioning nachinos).
Bravornan's nolion of Iabour procoss lhoory has boon crilicizod as boing sinpIislic
by subsoquonl connonlalors such as LillIor and SaIanan (1982) vho arguo lhal lhoro
aro nunorous dolorninanls in lho conlroI of lho Iabour procoss. And Friodnan (1977)
boIiovos lhal Bravornan's vorsion nogIocls lho divorso and sophislicalod characlor of
nanagononl conlroI as il rosponds nol onIy lo lochnoIogicaI advancos bul aIso lo
changos in lho dogroo and inlonsily of vorIor rosislanco and nov producl and Iabour
narIol condilions. Sloroy (1995) has connonlod lhal ´lho Iabour procoss band-
vagon... is nov hoIod and palchod boyond ropair'.
Bul noro roconl connonlalors such as Novlon and FindIay (1996) boIiovo lhal
Iabour procoss lhoory oxpIains hov nanagononls havo al lhoir disposaI a rango
of nochanisns lhrough vhich conlroI is oxorcisod: ´}ob porfornanco and ils assoss-
nonl is al lho hoarl of lho Iabour procoss.' Managononls, according lo Novlon
and FindIay, aro conslanlIy sooIing vays lo inprovo lho offoclivonoss of conlroI
206 \ork und ompíoymont
nochanisns lo achiovo conpIianco. Thoy ´lry lo squoozo lho Iasl drop of surpIus
vaIuo' oul of lhoir Iabour.
Agcnc, |hcor,
Agoncy or principaI agonl lhoory indicalos lhal principaIs (ovnors and nanagors)
havo lo dovoIop vays of noniloring and conlroIIing lho aclivilios of lhoir agonls
(slaff). Agoncy lhoory suggosls lhal principaIs nay havo probIons in onsuring lhal
agonls do vhal lhoy aro loId. Il is nocossary lo cIoar up anbiguilios by solling ob¡oc-
livos and noniloring porfornanco lo onsuro lhal ob¡oclivos aro achiovod.
Agoncy lhoory has boon crilicizod by Gonoz-Mo¡ia and BaIIin (1992) as ńanagori-
aIisl'. As Arnslrong (1996) vrolo: Íl IooIs al lho onpIoynonl roIalionship puroIy
fron nanagononl's poinl of viov and rogards onpIoyoos as ob¡ocls lo bo nolivalod
by lho carrol and slicI. Il is a disnaI lhoory, vhich suggosls lhal poopIo cannol bo
lruslod.'
Lxchangc |hcor,
Exchango lhoory sols oul lo oxpIain organizalionaI bohaviour in lorns of lho rovards
and cosls incurrod in lho inloraclion bolvoon onpIoyors and onpIoyoos. Thoro aro
four concopls:
Rcucr!s ÷ payoffs lhal salisfy noods onorging fron lho inloraclions bolvoon indi-
viduaIs and lhoir organizalions.
Ccsis ÷ faliguo, slross, anxioly, punishnonls and lho vaIuo of rovards lhal poopIo
havo Iosl bocauso of IacI of opporlunily.
Ouiccmcs ÷ rovards ninus cosls: if posilivo, lho inloraclion yioIds a ´profil' and
lhis is salisfaclory as Iong as il oxcoods lho nininun IovoI of oxpoclalion.
Ictcl cj ccmpcriscns ÷ poopIo ovaIualo lho oulcono of an inloraclion againsl lho
profil lhoy aro forogoing oIsovhoro.
Uní|ar, and píuraíí·| framc· of rcfcrcncc
Ono of lho oflon oxprossod ains of hunan rosourco nanagononl is lo incroaso lho
connilnonl of poopIo lo lho organizalion by golling lhon lo sharo ils viovs and
vaIuos and inlogralo lhoir ovn vorI ob¡oclivos vilh lhoso of lho organizalion. This
concopl adopls a unilary frano of roforonco, in olhor vords, as oxprossod by Gonnard
and }udgo (1997), organizalions aro assunod lo bo ´harnonious and inlogralod, aII
onpIoyoos sharing lho organisalionaI goaIs and vorIing as nonbors of ono loan'.
1ho nuturo ol vork 207
AIlornalivoIy, lho pIuraIisl porspoclivo as oxprossod by Cyorl and March (1963) soos
organizalions as coaIilions of inlorosl groups and rocognizos lho Iogilinacy of
difforonl inlorosls and vaIuos. OrganizalionaI dovoIopnonl progrannos, vhich,
anongsl olhor lhings, ain lo incroaso connilnonl and loanvorI, adopl a unilary
franovorI. Bul il can bo arguod lhal lhis is a nanagoriaIisl assunplion and lhal lho
Iogilinalo inlorosls of lho olhor nonbors of a pIuraIisl socioly ÷ lho slaIohoIdors ÷
viII havo lhoir ovn inlorosls, vhich shouId bo rospoclod.
CkCANlZA1lCNAL lAC1CkS AllLC1lNC \CkK
Tho naluro of vorI changos as organizalions chango in rosponso lo nov donands
and onvironnonlaI prossuros. Businoss-procoss onginooring, dovnsizing and doIay-
oring aII havo significanl offocls on lho lypo of vorI carriod oul, on fooIings of socu-
rily and on lho caroor opporlunilios avaiIabIo in organizalions. Throo of lho nosl
inporlanl faclors ÷ lho Íoan' organizalion, lho changing roIo of lho procoss vorIor
and lho fIoxibIo firn ÷ aro discussod boIov.
Thc ícan organí2a|íon
Tho lorn Íoan produclion' vas popuIarizod by WonacI and }onos (1970) in 1|c
Mcc|inc 1|ci C|cngc! i|c Wcrl!. Bul lho drivo for Ioanor nolhods of vorIing vas
confinod iniliaIIy lo lho car induslry. In lho cIassic caso of Toyola, ono of lho pionoors
of Ioan produclion, or noro IoosoIy, ´vorId cIass nanufacluring', sovon forns of
vaslo voro idonlifiod, vhich had lo bo oIininalod. Thoso voro ovorproduclion,
vailing, lransporling, ovor-procossing, invonlorios, noving, and naIing dofoclivo
parls or producls. Loan produclion ains lo add vaIuo by nininizing vaslo in
lorns of naloriaIs, lino, spaco and poopIo. Iroduclion syslons associalod vilh Ioan-
noss incIudo ¡usl-in-lino, suppIy chain nanagononl, naloriaI rosourcos pIanning
and zoro dofocls/righl firsl lino. Businoss procoss ro-onginooring progrannos oflon
acconpany drivos for Ioanor nolhods of vorIing and lolaI quaIily nanagononl
approachos aro usod lo supporl drivos for groalor IovoIs of cuslonor salisfaclion and
sorvico.
Tho concopl of Íoannoss' has sinco boon oxlondod lo non-nanufacluring organiza-
lions. This can oflon bo nunbor drivon and is inpIononlod by noans of a roduclion
in hoadcounls (dovnsizing) and a roduclion in lho nunbor of IovoIs of nanagononl
and suporvision (doIayoring). Bul lhoro is no slandard nodoI of vhal a Ioan organi-
zalion IooIs IiIo. According lo lho roporl on lho rosoarch conduclod by lho Inslilulo
of IorsonnoI and DovoIopnonl (IID) on Ioan and rosponsivo organizalions (IID,
1998b), firns soIocl fron a nonu lho nolhods lhal nool lhoir parlicuIar businoss
noods. Thoso incIudo, olhor lhan doIayoring or lho nogalivo approach of dovnsizing,
posilivo slops such as:
loan-basod vorI organizalions,
shop-fIoor onpovornonl and probIon-soIving praclicos,
quaIily buiIl in, nol inspoclod in,
onphasis on horizonlaI businoss procossos ralhor lhan vorlicaI slrucluros,
parlnorship roIalionships vilh suppIiors,
cross-funclionaI nanagononl and dovoIopnonl loans,
rosponsivonoss lo cuslonor donand,
hunan rosourco nanagononl poIicios ainod al high nolivalion and connilnonl
and incIuding connunicalion progrannos and parlicipalion in docision-
naIing.
Tho IID roporl onphasizos lhal quaIilalivo chango lhrough poopIo is a na¡or foaluro
of Ioan vorIing bul lhal lho issuo is nol ¡usl lhal of Iaunching chango. Tho Ioy
roquirononl is lo suslain il. Tho roporl aIso nolod lhal HR praclilionors can pIay a
nunbor of inporlanl roIos in lho procoss of nanaging chango. Thoso incIudo lhal of
supporlor, inlorprolor, chanpion, nonilor, rosourcor, and anlicipalor of polonliaI
probIons.
A quoslion posod by IurcoII   (1998) vas: Áro Ioan organizalions usuaIIy noan
organizalions`' Bul lhoy connonlod lhal lho IID rosoarch did nol indicalo lhal Ioanor
nolhods of vorI havo posilivo inpIicalions for onpIoyoos. Tho ovidonco suggoslod
lhal lho inpacl on poopIo is oflon nogalivo, parlicuIarIy vhon roslrucluring noans
dovnsizing and ro-onginooring. EnpIoyoos vorI Iongor hours, slross risos, caroor
opporlunilios aro roducod and noraIo and nolivalion faII. Thoy aIso nado lho poinl
lhal il is cIoar lhal nany inilialivos faiI bocauso lhoy do nol laIo inlo accounl lho
poopIo inpIicalions, and lhal lho firsl and nosl significanl barrior vas niddIo
nanagononl rosislanco.
Thc changíng roíc of |hc procc·· vor|cr
A roporl pubIishod on a rosoarch pro¡ocl inlo procoss vorIing by lho Inslilulo of
EnpIoynonl Sludios (GiIos   1997) rovoaIod lhal nanagononl slrucluros dosignod
in rosponso lo lochnoIogicaI advancos and conpolilivo prossuros aro lransforning lho
roIo of procoss vorIors.
Incroasing aulonalion and lho appIicalion of nov lochnoIogios lo lho produclion
procoss noan lhal Iov-sIiIIod nanuaI ¡obs conlinuo lo disappoar, and lhal procoss
1ho nuturo ol vork 209
vorIors aro boconing progrossivoIy Ioss invoIvod in nanuaI oporaling lasIs. Insload,
lhoy aro boing givon noro rosponsibiIily for lho procossos lhoy vorI on, vhiIo boing
oxpoclod lo bocono noro cuslonor and businoss orionlod and, in nany casos, lo
carry oul sinpIo onginooring and nainlonanco lasIs.
Thc fícxíbíc fírm
Tho concopl of lho ´fIoxibIo firn' vas originalod by AlIinson (1984) vho cIainod lhal
lhoro is a groving lrond for firns lo sooI various forns of slrucluraI and oporalionaI
fIoxibiIily. Tho lhroo Iinds of fIoxibiIily aroas foIIov:
lunciicncl jlcxi|iliiq is soughl so lhal onpIoyoos can bo rodopIoyod quicIIy and
snoolhIy bolvoon aclivilios and lasIs. FunclionaI fIoxibiIily nay roquiro nuIli-
sIiIIing ÷ crafl vorIors vho possoss and can appIy a nunbor of sIiIIs covoring,
for oxanpIo, bolh nochanicaI and oIoclricaI onginooring, or nanufacluring and
nainlonanco aclivilios.
Numcriccl jlcxi|iliiq is soughl so lhal lho nunbor of onpIoyoos can bo quicIIy and
oasiIy incroasod or docroasod in Iino vilh ovon shorl-lorn changos in lho IovoI of
donand for Iabour.
lincncicl jlcxi|iliiq providos for pay IovoIs lo rofIocl lho slalo of suppIy and
donand in lho oxlornaI Iabour narIol and aIso noans lho uso of fIoxibIo pay
syslons lhal faciIilalo oilhor funclionaI or nunoricaI fIoxibiIily.
Tho nov slrucluro in lho fIoxibIo firn invoIvos lho broaI-up of lho Iabour forco
inlo incroasingIy poriphoraI, and lhoroforo nunoricaIIy fIoxibIo, groups of vorIors
cIuslorod around a nunoricaIIy slabIo coro group lhal viII conducl lho organizalion's
Ioy, firn-spocific aclivilios. Al lho coro, lho focus is on funclionaI fIoxibiIily. Shifling
lo lho poriphory, nunoricaI fIoxibiIily boconos noro inporlanl. As lho narIol grovs,
lho poriphory oxpands lo laIo up sIacI, as grovlh sIovs, lho poriphory conlracls.
Al lho coro, onIy lasIs and rosponsibiIilios chango, lho vorIors horo aro insuIalod
fron nodiun-lorn fIuclualions in lho narIol and can lhoroforo on¡oy ¡ob socurily,
vhoroas lhoso in lho poriphory aro oxposod lo lhon.
CHANClNC lA11LkNS Cl \CkK
Tho nosl inporlanl dovoIopnonls ovor lho pasl docado havo boon a considor-
abIo incroaso in lho uso of parl-linors, a narIod proponsily for organizalions lo
subconlracl vorI and lo oulsourco sorvicos, and a groalor roquirononl for spociaIisls
(InovIodgo vorIors) and profossionaIs in organizalions. ToIovorIing has incroasod
2l0 \ork und ompíoymont
(vorIing al hono vilh a conpulor lorninaI IinI lo lho firn) and caII conlro vorI has
oxpandod.
Undor lho prossuros lo bo conpolilivo and lo achiovo ćosl Ioadorship', organiza-
lions aro nol onIy ´dovnsizing' bul aro aIso ongaging poopIo on shorl-lorn conlracls
and naIo no prolonco lhal lhoy aro lhoro lo provido caroors. Thoy vanl spocific
conlribulions lo achioving organizalionaI goaIs nov and, so far as poopIo aro
concornod, lhoy nay Iol lho fuluro laIo caro of ilsoIf, boIioving lhal lhoy can purchaso
lho laIonl roquirod as and vhon nocossary. This nay bo shorl-sighlod, bul il is lho
vay nany businossos nov oporalo.
Whon proparing and inpIononling hunan rosourco pIans, HR praclilionors nood
lo bo avaro of lhoso faclors and lronds vilhin lho conloxl of lhoir inlornaI
and oxlornaI onvironnonls. A furlhor faclor lhal affocls lho vay in vhich lho
Iabour narIol oporalos, and lhoroforo hunan rosourco pIanning docisions, is unon-
pIoynonl.
In gonoraI lhoro is far Ioss socurily in onpIoynonl loday, and lho oId lradilion of
lho Iifo-Iong caroor is no Iongor so nuch in ovidonco. EnpIoyors aro Ioss IiIoIy lo bo
connillod lo lhoir onpIoyoos. Al lho sano lino, onpIoyoos lond lo bo Ioss
connillod lo lhoir onpIoyors and noro connillod lo lhoir caroors, vhich lhoy nay
porcoivo aro IiIoIy lo progross bollor if lhoy chango ¡obs ralhor lhan ronain vilh lhoir
prosonl onpIoyor. Thoy aro concornod vilh lhoir onpIoyabiIily, and aro dolorninod
lo oxlracl as nuch vaIuo as possibIo fron lhoir prosonl onpIoynonl lo provido for
lhoir fuluro oIsovhoro.
Tho Econonic and SociaI Rosoarch CounciI and lho Tonorrov Iro¡ocl (2005)
roporlod lhal, loday, noro lhan 5 niIIion poopIo, aInosl a fiflh of onpIoyoos,
spond sono lino vorIing al hono or on lho novo. Tho roporl prodicls lho riso of lho
ńobiIo vorIor', noving ÷ Iaplop and nobiIo in lov ÷ bolvoon offico, hono, airporl
Ioungo or nolorvay sorvico slalion as lho noods of a ¡ob donand. As slalod in lho
roporl:
lndìvìduuís ut vork vìíí not nocossurìíy soo thomsoívos us vorkìng lrom homo. 1hoy
couíd oquuííy bo vorkìng lrom tho ollìco. ßut thoy vìíí bo on tho movo lrom píuco to
píuco... 1horo vìíí bo u shìlt lrom porsonuíìzod spuco to porsonuíìzod tìmo und tho
boundurìos botvoon vork und íoìsuro tìmo vìíí bo íoss dìstìnct.
Tho roporl says lhal nanagors viII havo lo find nov vays lo conlroI lhoso nobiIo
vorIors, possibIy basod on capluring vorIors' hoarls and ninds lo croalo a cuIluro of
hard vorI ovon al a dislanco.
1ho nuturo ol vork 2ll
LNLMlLCYMLN1
Econonisls aro unabIo lo agroo on lho causos of or curos for unonpIoynonl (or
anylhing oIso, il soons). Tho ossonco of lho Koynosian oxpIanalion is lhal firns
donand loo IillIo Iabour bocauso individuaIs donand loo fov goods. Tho cIassicaI
viov vas lhal unonpIoynonl vas voIunlary and couId bo cIoarod by naluraI narIol
forcos. Tho noo-cIassicaI lhoory is lhal lhoro is a naluraI ralo of unonpIoynonl, vhich
rofIocls a givon ralo of lochnoIogy, individuaI proforoncos and ondovnonls. Wilh
fIoxibIo vagos in a conpolilivo Iabour narIol, vagos ad¡usl lo cIoar lho narIol and
any unonpIoynonl lhal ronains is voIunlary. Tho Iallor viov vas lhal hoId by MiIlon
Friodnan and slrongIy infIuoncod govornnonl poIicy in lho oarIy 1980s, bul vilhoul
succoss. Thoro is, of courso, no sinpIo oxpIanalion of unonpIoynonl and no sinpIo
soIulion.
A11l1LDLS 1C \CkK
Tho IID rosoarch inlo onpIoyoo nolivalion and lho psychoIogicaI conlracl (Guosl
 , 1996, Guosl and Convay, 1997) oblainod lho foIIoving rosponsos fron lho
poopIo lhoy survoyod:
WorI ronains a conlraI inlorosl in lho Iivos of nosl poopIo.
If lhoy von lho Iollory, 39 por conl vouId quil vorI, bul nosl of lho olhors vouId
conlinuo vorIing.
AsIod lo cilo lho lhroo nosl inporlanl lhings lhoy IooI for in a ¡ob, 70 por conl of
rospondonls cilod pay, 62 por conl vanlod inlorosling and variod vorI and onIy
22 por conl voro IooIing for ¡ob socurily.
35 por conl cIainod lhal lhoy voro pulling in so nuch offorl lhal lhoy couId nol
vorI any hardor and a furlhor 34 por conl cIainod lhoy voro vorIing vory hard.
lCß-kLLA1LD \LLL-ßLlNC
Tho 2004 WorIpIaco EnpIoyoo RoIalions Survoy (WERS, 2005) covoring 700,000
vorIpIacos and 22.5 niIIion onpIoyoos survoyod 21,624 onpIoyoos in vorIpIacos
onpIoying noro lhan 10 poopIo on hov lhoy foIl al vorI. Tho rosuIls aro sunnarizod
in TabIo 14.1.
This doos nol prosonl an unduIy gIoony picluro. Tho porconlago of poopIo fooIing
oilhor lonso or caIn sono, noro or aII of lho lino vas nuch lho sano. An oquaI
nunbor of poopIo voro novor roIaxod or vorriod, and ralhor noro voro novor unoasy.
Sixly-nino por conl voro conlonl aII, nosl or parl of lho lino. Tho WERS survoy aIso
rovoaIod lhal ¡ob-roIalod voII-boing vas highor in snaII organizalions and vorI-
pIacos lhan in Iargo onos, highor anong union nonbors, foII vilh incroasod oduca-
lion and is U-shapod vilh rogard lo ago (io highor anongsl youngor and oIdor
onpIoyoos lhan anongsl lho niddIo-agod).
1ho nuturo ol vork 2l3
Tbc job AII of tbc Most of tbc Somc of tbc OccasionaIIy Ncvcr "
makcs you timc " timc " timc " "
fccI:
1onso 4 l5 42 27 l2
Cuím 3 30 29 27 ll
koíuxod 2 l0 35 32 2l
\orrìod 2 l0 35 32 2l
Lnousy 2 8 28 33 29
Contont 5 33 30 22 ll
TabIc 14.1 FooIings al vorI (WERS, 2005)
1ho ompíoymont roíutìonshìp
This chaplor oxpIoros lho naluro of lho onpIoynonl roIalionship and lho croalion of a
cIinalo of lrusl vilhin lhal roIalionship.
1HL LMlLCYMLN1 kLLA1lCNSHll DLllNLD
Tho lorn onpIoynonl roIalionship doscribos lho inlorconnoclions lhal oxisl bolvoon
onpIoyors and onpIoyoos in lho vorIpIaco. Thoso nay bo fornaI, og conlracls of
onpIoynonl, procoduraI agroononls. Or lhoy nay bo infornaI, in lho shapo of lho
psychoIogicaI conlracl, vhich oxprossos corlain assunplions and oxpoclalions aboul
vhal nanagors and onpIoyor havo lo offor and aro viIIing lo doIivor (KossIor and
Undy, 1996). Thoy can havo an individuaI dinonsion, vhich rofors lo individuaI
conlracls and oxpoclalions, or a coIIoclivo dinonsion, vhich rofors lo roIalionships
bolvoon nanagononl and lrado unions, slaff associalions or nonbors of ¡oinl consuI-
lalivo bodios such as vorIs counciIs.
NA1LkL Cl 1HL LMlLCYMLN1 kLLA1lCNSHll
Tho dinonsions of lho onpIoynonl roIalionship as doscribod by KossIor and Undy
(1996) aro shovn in Figuro 15.1.

Tho parlios aro nanagors, onpIoyoos and onpIoyoo roprosonlalivos. Tho ´subslanco'
incorporalos lho ¡ob, rovard and caroor of individuaIs and lho connunicalions and
cuIluro of lho organizalion as il affocls lhon. Il can aIso incIudo coIIoclivo agroononls
and ¡oinl onpIoyoo roIalions nachinory (vorIs counciIs and lho IiIo). Tho fornaI
dinonsions incIudo ruIos and procoduros, and lho infornaI aspocl covors undor-
slanding, oxpoclalions and assunplions. FinaIIy, lho onpIoynonl roIalionship oxisls
al difforonl IovoIs in lho organizalion (nanagononl lo onpIoyoos gonoraIIy, and
nanagors lo individuaI onpIoyoos and lhoir roprosonlalivos or groups of poopIo).
Tho oporalion of lho roIalionship viII aIso bo affoclod by procossos such as connuni-
calions and consuIlalion, and by lho nanagononl slyIo provaiIing lhroughoul lho
organizalion or adoplod by individuaI nanagors.
FIgurc 15.1 Dinonsions of lho onpIoynonl roIalionship
(Scurcc. S KossIor and R Undy, 1|c Ncu |mplcqmcni Rclciicns|ip. |xcmining i|c psqc|clcgiccl
ccnircci, Inslilulo of IorsonnoI and DovoIopnonl, London, 1996)
Parties
Managers
Employees
Employees'
representatives
Operation
Level
Process
Style
Structure
Formal
rules/procedures
Ìnformal
understandings,
expectations
Substance
Individual:
job
reward
career
communications
culture
Collective
The empIoyment reIationship
ßASlS Cl 1HL LMlLCYMLN1 kLLA1lCNSHll
Tho slarling poinl of lho onpIoynonl roIalionship is an undorlaIing by an onpIoyoo
lo provido sIiII and offorl lo lho onpIoyor in rolurn for vhich lho onpIoyor providos
lho onpIoyoo vilh a saIary or a vago. IniliaIIy lho roIalionship is foundod on a IogaI
conlracl. This nay bo a vrillon conlracl bul lho absonco of such a conlracl doos nol
noan lhal no conlracluaI roIalionship oxisls. EnpIoyors and onpIoyoos sliII havo
corlain inpIiod IogaI righls and obIigalions. Tho onpIoyor's obIigalions incIudo lho
duly lo pay saIary or vagos, lo provido a safo vorIpIaco, lo acl in good failh lovards
lho onpIoyoo and nol lo acl in such a vay as lo undornino lho lrusl and confidonco
of lho onpIoynonl roIalionship. Tho onpIoyoo has corrosponding obIigalions, vhich
incIudo obodionco, conpolonco, honosly and IoyaIly.
An inporlanl faclor lo rononbor aboul lho onpIoynonl roIalionship is lhal, gonor-
aIIy, il is lho onpIoyor vho has lho povor lo diclalo lho conlracluaI lorns unIoss lhoy
havo boon fixod by coIIoclivo bargaining. IndividuaIs, oxcopl vhon lhoy aro nuch in
donand, havo IillIo scopo lo vary lho lorns of lho conlracl inposod upon lhon by
onpIoyors.
DLllNlNC 1HL LMlLCYMLN1 kLLA1lCNSHll
Tvo lypos of conlracls dofining lho onpIoynonl roIalionship havo boon dislin-
guishod by MacnoiI (1985) and Roussoau and Wado-Bonzoni (1994):
1rcnscciicncl ccnirccis havo voII-doscribod lorns of oxchango, vhich aro usuaIIy
oxprossod financiaIIy. Thoy aro of Iinilod duralion, vilh spocifiod porfornanco
roquirononls.
Rclciicncl ccnirccis aro Ioss voII dofinod vilh noro abslracl lorns and rofor lo an
opon-ondod nonborship of lho organizalion. Iorfornanco roquirononls allachod
lo lhis conlinuing nonborship aro inconpIolo or anbiguous.
Hovovor, lho onpIoynonl roIalionships can aIso bo oxprossod in lorns of a psqc|clcg-
iccl ccnircci, vhich, according lo Guzzo and Noonan (1994), has bolh lransaclionaI
and roIalionaI quaIilios. Tho concopl of a psychoIogicaI conlracl oxprossos lho viov
lhal al ils nosl basic IovoI lho onpIoynonl roIalionship consisls of a uniquo conbina-
lion of boIiofs hoId by an individuaI and his or hor onpIoyor aboul vhal lhoy oxpocl
of ono anolhor. This concopl is discussod in noro dolaiI in Chaplor 16.
1ho ompíoymont roíutìonshìp 2l7
SlCNlllCANCL Cl 1HL LMlLCYMLN1 kLLA1lCNSHll
CCNCLl1
Tho concopl of lho onpIoynonl roIalionship is significanl lo HR spociaIisls bocauso il
govorns nuch of vhal organizalions nood lo bo avaro of in dovoIoping and appIying
HR procossos, poIicios and procoduros. Thoso nood lo bo considorod in lorns of vhal
lhoy viII or viII nol conlribulo lo furlhoring a produclivo and rovarding onpIoy-
nonl roIalionship bolvoon aII lho parlios concornod.
CHANCLS lN 1HL LMlLCYMLN1 kLLA1lCNSHll
As nolod by GaIIio   (1998) in lhoir anaIysis of lho oulcono of lhoir ónpIoynonl in
Brilain' rosoarch progranno, vhiIo lhoro havo boon shifls in lho vays in vhich
poopIo aro onpIoyod: ´Tho ovidonco for a na¡or chango in lho naluro of lho onpIoy-
nonl roIalionship vas nuch Ioss convincing.' Bul lhoy did nolo lho foIIoving charac-
lorislics of onpIoynonl as rovoaIod by lho survoy:
Nov forns of nanagononl, oflon basod oxpIicilIy or inpIicilIy on HRM princi-
pIos and onphasizing individuaI conlracls ralhor lhan coIIoclivo bargaining.
Thoro vas sono incroaso in lasI discrolion bul lhoro vas no ovidonco of a signifi-
canl docIino in nanagoriaI conlroI, indood, in sono inporlanl rospocls conlroI
vas inlonsifiod.
Suporvisory aclivily vas sliII inporlanl.
Inlogralivo forns of nanagononl poIicy voro conlrod on non-nanuaI onpIoyoos.
Tho groal na¡orily of onpIoyoos conlinuod lo allach a high IovoI of inporlanco lo
lho inlrinsicaIIy nolivaling aspocls of vorI.
Tho highor lho IovoI of sIiII, lho noro poopIo voro invoIvod vilh lhoir vorI.
Tho raising of sIiII IovoIs and lho granling of incroasod discrolion lo onpIoyors
aro Ioy faclors in inproving lho quaIily of vorI oxporionco.
High IovoIs of connilnonl lo lho organizalion can roduco absonlooisn and
Iabour lurnovor bul lhoro vas no ovidonco lhal organizalionaI connilnonl
áddod anylhing ovor and abovo olhor organizalionaI and lasI characlorislics
vilh rogard lo lho quaIily of vorI porfornanco'.
MANAClNC 1HL LMlLCYMLN1 kLLA1lCNSHll
Tho dynanic and oflon nobuIous naluro of lho onpIoynonl roIalionship incroasos lho
difficuIly of nanaging il. Tho probIon is conpoundod bocauso of lho nuIlipIicily of
faclors lhal infIuonco lho conlracl: lho cuIluro of lho organizalion, lho provaiIing
nanagononl slyIo, lho vaIuos, ospousod and praclisod, of lop nanagononl, lho oxis-
lonco or non-oxislonco of a cIinalo of lrusl, day-lo-day inloraclions bolvoon
onpIoyoos and Iino nanagors, and lho HR poIicios and praclicos of lho businoss.
Tho Iallor aro parlicuIarIy inporlanl. Tho naluro of lho onpIoynonl roIalionship
is slrongIy infIuoncod by HR aclions. Thoso covor aII aspocls of HR nanagononl.
Bul hov poopIo aro lroalod in such aroas as rocruilnonl, porfornanco roviovs,
pronolion, caroor dovoIopnonl, rovard, invoIvononl and parlicipalion, griovanco
handIing, discipIinary procoduros and rodundancy viII bo parlicuIarIy inporlanl.
Hov poopIo aro roquirod lo carry oul lhoir vorI (incIuding fIoxibiIily and
nuIli-sIiIIing), hov porfornanco oxpoclalions aro oxprossod and connunicalod,
hov vorI is organizod and hov poopIo aro nanagod viII aIso naIo a signifi-
canl inpacl on lho onpIoynonl roIalionship. HR spociaIisls can conlribulo lo lho
dovoIopnonl of a posilivo and produclivo onpIoynonl roIalionship in lho foIIoving
vays:
!uring rccruiimcni inicrticus ÷ prosonling lho unfavourabIo as voII as lho
favourabIo aspocls of a ¡ob in a ´roaIislic ¡ob proviov',
in in!uciicn prcgrcmmcs ÷ connunicaling lo nov slarlors lho organizalion's
porsonnoI poIicios and procoduros and ils coro vaIuos, indicaling lo lhon lho slan-
dards of porfornanco oxpoclod in such aroas as quaIily and cuslonor sorvico, and
spoIIing oul roquirononls for fIoxibiIily,
by issuing and updaling cmplcqcc |cn!|cc|s lhal roinforco lho nossagos doIivorod
in induclion progrannos,
by oncouraging lho dovoIopnonl of pcrjcrmcncc mcncgcmcni procossos lhal onsuro
lhal porfornanco oxpoclalions aro agrood and roviovod roguIarIy,
by oncouraging lho uso of pcrscncl !ctclcpmcni plcns lhal spoII oul hov conlinuous
inprovononl of porfornanco can bo achiovod, nainIy by soIf-nanagod Ioarning,
by using lccrning cn! !ctclcpmcni prcgrcmmcs lo undorpin coro vaIuos and dofino
porfornanco oxpoclalions,
by onsuring lhrough mcncgcr cn! iccm lcc!cr ircining lhal nanagors and loan
Ioadors undorsland lhoir roIo in nanaging lho onpIoynonl roIalionship lhrough
such procossos as porfornanco nanagononl and loan Ioadorship,
by oncouraging lho naxinun anounl of ccnicci bolvoon nanagors and loan
Ioadors and lhoir loan nonbors lo achiovo nuluaI undorslanding of oxpoclalions
and lo provido a noans of lvo-vay connunicalions,
by adopling a gonoraI poIicy of ircnspcrcncq ÷ onsuring lhal in aII nallors lhal
affocl lhon, onpIoyoos Inov vhal is happoning, vhy il is happoning and lho
inpacl il viII naIo on lhoir onpIoynonl, dovoIopnonl and prospocls,
1ho ompíoymont roíutìonshìp 2l9
by dovoIoping HR prccc!urcs covoring griovanco handIing, discipIino, oquaI
opporlunilios, pronolion and rodundancy and onsuring lhal lhoy aro inpIo-
nonlod fairIy and consislonlIy,
dovoIoping and connunicaling HR pclicics covoring lho na¡or aroas of onpIoy-
nonl, dovoIopnonl, rovard and onpIoyoo roIalions,
by onsuring lhal lho rcucr! sqsicm is dovoIopod and nanagod lo achiovo oquily,
fairnoss and consisloncy in aII aspocls of pay and bonofils,
gonoraIIy, by advising on cmplcqcc rclciicns prccc!urcs, procossos and issuos lhal
furlhor good coIIoclivo roIalionships.
Thoso approachos lo nanaging lho onpIoynonl roIalionship covor aII aspocls of
poopIo nanagononl. Il is inporlanl lo rononbor, hovovor, lhal lhis is a conlinuous
procoss. Tho offoclivo nanagononl of lho roIalionship noans onsuring lhal vaIuos aro
uphoId and lhal a lransparonl, consislonl and fair approach is adoplod in doaIing
vilh aII aspocls of onpIoynonl.
1kLS1 AND 1HL LMlLCYMLN1 kLLA1lCNSHll
Tho IID suggoslod in ils slalononl Pccplc Mc|c i|c Dijjcrcncc (1994) lhal buiIding lrusl
is lho onIy basis upon vhich connilnonl can bo gonoralod. Tho IID connonlod
lhal: Ín loo nany organizalions inconsisloncy bolvoon vhal is said and vhal is dono
undorninos lrusl, gonoralos onpIoyoo cynicisn and providos ovidonco of conlradic-
lions in nanagononl lhinIing.'
Il has aIso boon suggoslod by Horriol ci cl (1998) lhal lrusl shouId bo rogardod as
sociaI capilaI ÷ lho fund of goodviII in any sociaI group lhal onabIos poopIo vilhin il
lo coIIaboralo vilh ono anolhor. Thonpson (1998) soos lrusl as a úniquo hunan
rosourco capabiIily lhal hoIps lho organizalion fuIfiI ils conpolilivo advanlago' ÷ a
coro conpoloncy lhal Ioads lo high businoss porfornanco. Thus lhoro is a businoss
nood lo dovoIop a cIinalo of lrusl, as lhoro is a businoss nood lo inlroduco offoclivo
pay-for-conlribulion procossos, vhich aro buiIl on lrusl.
Thc mcaníng of |ru·|
Trusl, as dofinod by lho Oxford EngIish Diclionary, is a firn boIiof lhal a porson nay
bo roIiod on. An aIlornalivo dofinilion has boon providod by Shav (1997) lo lho offocl
lhal lrusl is lho ´boIiof lhal lhoso on vhon vo dopond viII nool our oxpoclalions of
lhon'. Thoso oxpoclalions aro dopondonl on óur assossnonl of anolhor's rosponsi-
biIily lo nool our noods'.
A cííma|c of |ru·|
A high-lrusl organizalion has boon doscribod by Fox (1973) as foIIovs:
Crgunìzutìonuí purtìcìpunts shuro cortuìn onds or vuíuos, bour tovurds ouch othor u
dìlluso sonso ol íong-torm obíìgutìons, ollor ouch othor spontunoous support vìthout
nurrovíy cuícuíutìng tho cost or untìcìputìng uny short-torm rocìprocutìon, communìcuto
honostíy und lrooíy, uro roudy to roposo thoìr lortunos ìn ouch othor's hunds, und
gìvo ouch othor tho bonolìt ol uny doubt thut muy urìso vìth rospoct to goodvìíí or
motìvutìon.
This idoaI slalo nay soIdon, if ovor, bo allainod, bul il doos roprosonl a picluro of an
offoclivo organizalion in vhich, as Thonpson (1998) nolos, lrusl ís an oulcono of
good nanagononl'.
Vhcn do cmpío,cc· |ru·| managcmcn|·
Managononl is noro IiIoIy lo bo lruslod by onpIoyoos vhon lho Iallor:
boIiovo lhal lho nanagononl noans vhal il says,
obsorvo lhal nanagononl doos vhal il says il is going lo do ÷ suiling lho aclion lo
lho vord,
Inov fron oxporionco lhal nanagononl, in lho vords of David Guosl (Guosl and
Convay, 1998), ´doIivors lho doaI ÷ il Ioops ils vord and fuIfiIs ils sido of lho
bargain',
fooI lhoy aro lroalod fairIy, oquilabIo and consislonlIy.
Dcvcíopíng a hígh-|ru·| organí2a|íon
As Thonpson (1998) connonls, a nunbor of vrilors havo gonoraIIy concIudod lhal
lrusl is ńol sonolhing lhal can, or shouId, bo diroclIy nanagod'. Ho cilos SaIo (1994)
vho vrolo lhal: ´Trusl is a cuIluraI norn vhich can raroIy bo croalod inlonlionaIIy
bocauso allonpls lo croalo lrusl in a caIcuIalivo nannor vouId doslroy lho offoclivo
basis of lrusl.'
Il nay nol bo possibIo lo ńanago' lrusl bul, as Thonpson arguos, lrusl is an
oulcono of good nanagononl. Il is croalod and nainlainod by nanagoriaI bohaviour
and by lho dovoIopnonl of bollor nuluaI undorslanding of oxpoclalions ÷ onpIoyors
of onpIoyoos, and onpIoyoos of onpIoyors. Bul Horriol   (1998) poinl oul lhal
issuos of lrusl aro nol in lho ond lo do vilh nanaging poopIo or procossos, bul aro
noro aboul roIalionships and nuluaI supporl lhrough chango.
1ho ompíoymont roíutìonshìp 22l
CIoarIy, lho sorl of bohaviour lhal is nosl IiIoIy lo ongondor lrusl is vhon nanago-
nonl is honosl vilh poopIo, Ioops ils vord (doIivors lho doaI) and praclisos vhal il
proachos. Organizalions lhal ospouso coro vaIuos (´poopIo aro our groalosl assol') and
lhon procood lo ignoro lhon viII bo Iov-lrusl organizalions.
Moro spocificaIIy, lrusl viII bo dovoIopod if nanagononl acls fairIy, oquilabIy and
consislonlIy, if a poIicy of lransparoncy is inpIononlod, if inlonlions and lho roasons
for proposaIs or docisions aro connunicalod bolh lo onpIoyoos gonoraIIy and lo
individuaIs, if lhoro is fuII invoIvononl in dovoIoping HR procossos, and if nuluaI
oxpoclalions aro agrood lhrough porfornanco nanagononl.
FaiIuro lo nool lhoso criloria, vhoIIy or in parl, is porhaps lho nain roason
vhy so nany porfornanco-roIalod pay schonos havo nol Iivod up lo oxpoclalions.
Tho slarling poinl is lo undorsland and appIy lho principIos of dislribulivo and
procoduraI ¡uslico.
Iu·|ícc
To lroal poopIo ¡uslIy is lo doaI vilh lhon fairIy and oquilabIy. LovonlhaI
(1980), foIIoving Adans (1965), dislinguishod bolvoon dislribulivo and procoduraI
¡uslico.
Disiri|uiitc jusiicc rofors lo hov rovards aro dislribulod. IoopIo viII fooI lhal lhoy
havo boon lroalod ¡uslIy in lhis rospocl if lhoy boIiovo lhal rovards havo boon dislrib-
ulod in accordanco vilh lhoir conlribulions, lhal lhoy rocoivo vhal vas pronisod lo
lhon and lhal lhoy gol vhal lhoy nood.
Prccc!urcl jusiicc rofors lo lho vays in vhich nanagoriaI docisions aro nado and
HR procoduros aro nanagod. IoopIo viII fooI lhal lhoy havo boon lroalod ¡uslIy if
nanagononl's docisions and procoduros aro fair, consislonl, lransparonl, non-
discrininalory and proporIy considor lho viovs and noods of onpIoyoos.
Rcncvíng |ru·|
As suggoslod by Horriol ci cl (1998), if lrusl is Iosl, a four-slop progranno is roquirod
for ils ronovaI:
1. adnission by lop nanagononl lhal il has paid insufficionl allonlion in lho pasl lo
onpIoyoos' divorso noods,
2. a Iinilod procoss of conlracling vhoroby a parlicuIar lransilion lo a difforonl vay
of vorIing for a group of onpIoyoos is dono in a forn lhal laIos individuaI
noods inlo accounl,
3. oslabIishing ÍnovIodgo-basod' lrusl, vhich is basod nol on a spocific lransac-
lionaI doaI bul on a dovoIoping porcoplion of lruslvorlhinoss,
4. achioving lrusl basod on idonlificalion in vhich oach parly onpalhizos vilh oach
olhor's noods and lhoroforo laIos lhon on board lhonsoIvos (aIlhough lhis finaI
slalo is soIdon roachod in praclico).
1ho ompíoymont roíutìonshìp 223
1ho psychoíogìcuí contruct
Tho onpIoynonl roIalionship, as doscribod in Chaplor 15, is a fundanonlaI foaluro of
aII aspocls of poopIo nanagononl. Al ils nosl basic IovoI, lho onpIoynonl roIalion-
ship consisls of a uniquo conbinalion of boIiofs hoId by an individuaI and his or hor
onpIoyor aboul vhal lhoy oxpocl of ono anolhor. This is lho psychoIogicaI conlracl,
and lo nanago lho onpIoynonl roIalionship offoclivoIy il is nocossary lo undorsland
vhal lho psychoIogicaI conlracl is, hov il is fornod and ils significanco.
1HL lSYCHCLCClCAL CCN1kAC1 DLllNLD
FundanonlaIIy, lho psychoIogicaI conlracl oxprossos lho conbinalion of boIiofs hoId
by an individuaI and his or hor onpIoyor aboul vhal lhoy oxpocl of ono anolhor. Il
can bo doscribod as lho sol of rociprocaI bul unarlicuIalod oxpoclalions lhal oxisl
bolvoon individuaI onpIoyoos and lhoir onpIoyors. As dofinod by Schoin (1965):
´Tho nolion of a psychoIogicaI conlracl inpIios lhal lhoro is an unvrillon sol of oxpoc-
lalions oporaling al aII linos bolvoon ovory nonbor of an organizalion and lho
various nanagors and olhors in lhal organizalion.'
This dofinilion vas anpIifiod by Roussoau and Wado-Bonzoni (1994) vho slalod
lhal:

lsychoíogìcuí contructs rolor to boíìols thut ìndìvìduuís hoíd rogurdìng promìsos mudo,
uccoptod und roíìod upon botvoon thomsoívos und unothor. tln tho cuso ol orgunìzu-
tìons, thoso purtìos ìncíudo un ompíoyoo, cíìont, munugor, und/or orgunìzutìon us u
vhoío.) ßocuuso psychoíogìcuí contructs roprosont hov poopío  promìsos und
commìtmonts, both purtìos ìn tho sumo ompíoymont roíutìonshìp tompíoyor und
ompíoyoo) cun huvo dìlloront vìovs rogurdìng spocìlìc torms.
Sparrov (1999b) dofinod lho psychoIogicaI conlracl as:
un opon-ondod ugroomont ubout vhut tho ìndìvìduuí und tho orgunìzutìon oxpoct to gìvo
und rocoìvo ìn roturn lrom tho ompíoymont roíutìonshìp. psychoíogìcuí contructs
roprosont u dynumìc und rocìprocuí douí. Nov oxpoctutìons uro uddod ovor tìmo us
porcoptìons ubout tho ompíoyor's commìtmont ovoívo. 1hoso unvrìtton ìndìvìduuí
contructs uro thoroloro concornod vìth tho socìuí und omotìonuí uspocts ol tho oxchungo
botvoon ompíoyor und ompíoyoo.
Wilhin organizalions, as Kalz and Kahn (1966) poinlod oul, ovory roIo is basicaIIy
a sol of bohaviouraI oxpoclalions. Thoso oxpoclalions aro oflon inpIicil ÷ lhoy aro
nol dofinod in lho onpIoynonl conlracl. Basic nodoIs of nolivalion such as
oxpoclancy lhoory (Vroon, 1964) and oporanl condilioning (SIinnor, 1974) nainlain
lhal onpIoyoos bohavo in vays lhoy oxpocl viII produco posilivo oulconos. Bul
lhoy do nol nocossariIy Inov vhal lo oxpocl. As Roussoau and GroIIor (1994)
connonl:
1ho ìdouí contruct ìn ompíoymont vouíd dotuìí oxpoctutìons ol both ompíoyoo und
ompíoyor. 1ypìcuí contructs, hovovor, uro ìncompíoto duo to boundod rutìonuíìty, vhìch
íìmìts ìndìvìduuí ìnlormutìon sookìng, und to u chungìng orgunìzutìonuí onvìronmont
thut mukos ìt ìmpossìbío to spocìly uíí condìtìons up lront. ßoth ompíoyoo und ompíoyor
uro íolt to lìíí up tho bíunks.
Tho nolion of boundod ralionaIily oxprossos lho boIiof lhal vhiIo poopIo oflon lry lo
acl ralionaIIy, lho oxlonl lo vhich lhoy do so is Iinilod by lhoir onolionaI roaclions lo
lho silualion lhoy aro in.
EnpIoyoos nay oxpocl lo bo lroalod fairIy as hunan boings, lo bo providod vilh
vorI lhal usos lhoir abiIilios, lo bo rovardod oquilabIy in accordanco vilh lhoir
conlribulion, lo bo abIo lo dispIay conpolonco, lo havo opporlunilios for furlhor
grovlh, lo Inov vhal is oxpoclod of lhon and lo bo givon foodbacI (proforabIy posi-
livo) on hov lhoy aro doing. EnpIoyors nay oxpocl onpIoyoos lo do lhoir bosl on
bohaIf of lho organizalion ÷ ´lo pul lhonsoIvos oul for lho conpany' ÷ lo bo fuIIy
connillod lo ils vaIuos, lo bo conpIianl and IoyaI, and lo onhanco lho inago of lho
organizalion vilh ils cuslonors and suppIiors. Sonolinos lhoso assunplions aro
¡uslifiod ÷ oflon lhoy aro nol. MuluaI nisundorslandings can causo friclion and slross
and Ioad lo rocrininalions and poor porfornanco, or lo a lorninalion of lho onpIoy-
nonl roIalionship.
To sunnarizo, in lho vords of Guosl and Convay (1998), lho psychoIogicaI
conlracl IacIs nany of lho characlorislics of lho fornaI conlracl: Íl is nol gonoraIIy
vrillon dovn, il is sonovhal bIurrod al lho odgos, and il cannol bo onforcod in a
courl or lribunaI.' Thoy boIiovo lhal: ´Tho psychoIogicaI conlracl is bosl soon as a
nolaphor, a vord or phraso borrovod fron anolhor conloxl vhich hoIps us naIo
sonso of our oxporionco. Tho psychoIogicaI conlracl is a vay of inlorproling lho slalo
of lho onpIoynonl roIalionship and hoIping lo pIol significanl changos.'
1HL SlCNlllCANCL Cl 1HL lSYCHCLCClCAL
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As suggoslod by SpindIor (1994): ÁpsychoIogicaI conlracl croalos onolions and alli-
ludos vhich forn and conlroI bohaviour.' Tho significanco of lho psychoIogicaI
conlracl vas furlhor oxpIainod by Sins (1994) as foIIovs: Á baIancod psychoIogicaI
conlracl is nocossary for a conlinuing, harnonious roIalionship bolvoon lho
onpIoyoo and lho organizalion. Hovovor, lho vioIalion of lho psychoIogicaI conlracl
can signaI lo lho parlicipanls lhal lho parlios no Iongor sharo (or novor sharod) a
connon sol of vaIuos or goaIs.'
Tho concopl highIighls lho facl lhal onpIoyoo/onpIoyor oxpoclalions laIo lho
forn of unarlicuIalod assunplions. Disappoinlnonls on lho parl of nanagononl as
voII as onpIoyoos nay lhoroforo bo inovilabIo. Thoso disappoinlnonls can, hovovor,
bo aIIovialod if nanagononls approcialo lhal ono of lhoir Ioy roIos is lo nanago
oxpoclalions, vhich noans cIarifying vhal lhoy boIiovo onpIoyoos shouId achiovo,
lho conpoloncios lhoy shouId possoss and lho vaIuos lhoy shouId uphoId. And lhis is
a nallor nol ¡usl of arlicuIaling and slipuIaling lhoso roquirononls bul of discussing
and agrooing lhon vilh individuaIs and loans.
Tho psychoIogicaI conlracl govorns lho conlinuing dovoIopnonl of lho onpIoy-
nonl roIalionship, vhich is conslanlIy ovoIving ovor lino. Bul hov lho conlracl
is dovoIoping and lho inpacl il naIos nay nol bo fuIIy undorslood by any of lho
parlios invoIvod. SpindIor (1994) connonls lhal: Ín a psychoIogicaI conlracl lho
righls and obIigalions of lho parlios havo nol boon arlicuIalod, nuch Ioss agrood lo.
Tho parlios do nol oxpross lhoir oxpoclalions and, in facl, nay bo quilo incapabIo of
doing so.'
1ho psychoíogìcuí contruct 227
IoopIo vho havo no cIoar idoa aboul vhal lhoy oxpocl nay, if such unoxprossod
oxpoclalions havo nol boon fuIfiIIod, havo no cIoar idoa vhy lhoy havo boon disap-
poinlod. Bul lhoy viII bo avaro lhal sonolhing doos nol fooI righl. And a conpany
slaffod by ćhoalod' individuaIs vho oxpocl noro lhan lhoy gol is hoading for lroubIo.
Tho inporlanco of lho psychoIogicaI conlracl vas onphasizod by Schoin (1965)
vho suggoslod lhal lho oxlonl lo vhich poopIo vorI offoclivoIy and aro connillod lo
lho organizalion doponds on:
lho dogroo lo vhich lhoir ovn oxpoclalions of vhal lho organizalion viII provido
lo lhon and vhal lhoy ovo lho organizalion in rolurn nalch lhal organizalion's
oxpoclalions of vhal il viII givo and gol in rolurn,
lho naluro of u|ci is cciucllq ic |c cxc|cngc! (assuning lhoro is sono agroononl) ÷
nonoy in oxchango for lino al vorI, sociaI nood salisfaclion and socurily in
oxchango for hard vorI and IoyaIly, opporlunilios for soIf-acluaIizalion and chaI-
Ionging vorI in oxchango for high produclivily, high-quaIily vorI, and croalivo
offorl in lho sorvico of organizalionaI goaIs, or various conbinalions of lhoso and
olhor lhings.
Tho rosoarch conduclod by Guosl and Convay (2002) Iod lo lho concIusion lhal ´Tho
nanagononl of lho psychoIogicaI conlracl as SchaII and Roussoau (2001) suggosl, is
a coro lasI of nanagononl and acInovIodgod as such by nany sonior HR and
onpIoynonl roIalions nanagors, and shovs lhal il has a posilivo associalion vilh a
rango of oulconos vilhin lho onpIoynonl roIalionship and is a usofuI vay of concop-
luaIising lhal roIalionship.'
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A psychoIogicaI conlracl is a syslon of boIiofs lhal nay nol havo boon arlicuIalod. Il
onconpassos lho aclions onpIoyoos boIiovo aro oxpoclod of lhon and vhal rosponso
lhoy oxpocl in rolurn fron lhoir onpIoyor. As doscribod by Guosl ci cl (1996): Íl is
concornod vilh assunplions, oxpoclalions, pronisos and nuluaI obIigalions.' Il
croalos alliludos and onolions lhal forn and govorn bohaviour. A psychoIogicaI
conlracl is inpIicil. Il is aIso dynanic ÷ il dovoIops ovor lino as oxporionco accunu-
Ialos, onpIoynonl condilions chango and onpIoyoos ro-ovaIualo lhoir oxpoclalions.
Tho psychoIogicaI conlracl nay provido sono indicalion of lho ansvors lo lho lvo
fundanonlaI onpIoynonl roIalionship quoslions lhal individuaIs poso: ´Whal can
I roasonabIy oxpocl fron lho organizalion`' and ´Whal shouId I roasonabIy bo
oxpoclod lo conlribulo in rolurn`' Bul il is unIiIoIy lhal lho psychoIogicaI conlracl
and lhoroforo lho onpIoynonl roIalionship viII ovor bo fuIIy undorslood by oilhor
parly.
Tho aspocls of lho onpIoynonl roIalionship covorod by lho psychoIogicaI conlracl
viII incIudo, fron lho onpIoyoo's poinl of viov:
hov lhoy aro lroalod in lorns of fairnoss, oquily and consisloncy,
socurily of onpIoynonl,
scopo lo dononslralo conpolonco,
caroor oxpoclalions and lho opporlunily lo dovoIop sIiIIs,
invoIvononl and infIuonco,
lrusl in lho nanagononl of lho organizalion lo Ioop lhoir pronisos,
safo vorIing onvironnonl.
Fron lho onpIoyor's poinl of viov, lho psychoIogicaI conlracl covors such aspocls of
lho onpIoynonl roIalionship as:
conpolonco,
offorl,
conpIianco,
connilnonl,
IoyaIly.
As Guosl   (1996) poinl oul:
\hìío ompíoyoos muy vunt vhut thoy huvo uívuys vuntod - socurìty, u curoor, luìr
rovurds, ìntorostìng vork und so on - ompíoyors no íongor looí ubío or obíìgod to
provìdo thoso. lnstoud, thoy huvo boon domundìng moro ol thoìr ompíoyoos ìn torms ol
groutor ìnput und toíorunco ol uncortuìnty und chungo, vhìío provìdìng íoss ìn roturn, ìn
purtìcuíur íoss socurìty und moro íìmìtod curoor prospocts.
An opcra|íonaí modcí of |hc p·,choíogícaí con|rac|
An oporalionaI nodoI of lho psychoIogicaI conlracl as fornuIalod by Guosl  
(1996) suggosls lhal lho coro of lho conlracl can bo noasurod in lorns of fairnoss of
lroalnonl, lrusl, and lho oxlonl lo vhich lho oxpIicil doaI or conlracl is porcoivod lo bo
doIivorod. Tho fuII nodoI is iIIuslralod in Figuro 16.1.
HC\ lSYCHCLCClCAL CCN1kAC1S DLVLLCl
IsychoIogicaI conlracls aro nol dovoIopod by noans of a singIo lransaclion. Thoro aro
nany conlracl naIors vho oxorl infIuonco ovor lho vhoIo duralion of an onpIoyoo's
invoIvononl vilh an organizalion. As SpindIor (1994) connonls:
Lvory duy vo crouto roíutìonshìps by mouns othor thun lormuí contructs... As ìndìvìduuís
lorm roíutìonshìps thoy nocossurìíy brìng thoìr uccumuíutod oxporìonco und dovoíopod
porsonuíìtìos vìth thom. ln vuys unknovn to thom, vhut thoy oxpoct lrom tho roíutìon-
shìp rolíocts tho sum totuí ol thoìr conscìous und unconscìous íournìng to duto.
Tho probIon vilh psychoIogicaI conlracls is lhal onpIoyoos aro oflon uncIoar aboul
vhal lhoy vanl fron lho organizalion or vhal lhoy can conlribulo lo il. Sono
onpIoyoos aro oquaIIy uncIoar aboul vhal lhoy oxpocl fron lhoir onpIoyoos.
Bocauso of lhoso faclors, and bocauso a psychoIogicaI conlracl is ossonliaIIy
inpIicil, il is IiIoIy lo dovoIop in an unpIannod vay vilh unforosoon consoquoncos.
Anylhing lhal nanagononl doos or is porcoivod as doing lhal affocls lho inlorosls of
onpIoyoos viII nodify lho psychoIogicaI conlracl. SiniIarIy lho acluaI or porcoivod
bohaviour of onpIoyoos, individuaIIy or coIIoclivoIy, viII affocl an onpIoyor's
concopl of lho conlracl.
Organizational
culture
HRM policy
and practice
Experience
Expectations
Alternatives
Organizational
citizenship
Organizational
commitment
Motivation
Satisfaction
and well-being
Fairness
Trust
The delivery of the deal
Causes Content Consequences
FIgurc 16.1 AnodoI of lho psychoIogicaI conlracl
(Scurcc. D Guosl, N Convay, R Brinor and M DicInan, 1|c Sicic cj i|c Psqc|clcgiccl Ccnircci in
|mplcqmcni. lssucs in pccplc mcncgcmcni, Inslilulo of IorsonnoI and DovoIopnonl, London,
1996)
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Many connonlalors havo doIivorod varnings aboul changos lo lho psychoIogicaI
conlracl lhal aro nol aII advanlagoous lo onpIoyoos. And lho naluro of lho psycho-
IogicaI conlracl is changing in nany organizalions in rosponso lo changos in lhoir
oxlornaI and inlornaI onvironnonls. This is IargoIy bocauso of lho inpacl of gIobaI
conpolilion and lho offocl lhis has had on hov businossos oporalo, incIuding novos
inlo Íoan' forns of oporalion.
Tho psychoIogicaI conlracl has nol boon an issuo in lho pasl bocauso usuaIIy il did
nol chango nuch. This is no Iongor lho caso bocauso:
businoss organizalions aro noilhor slabIo nor Iong-Iivod ÷ uncorlainly provaiIs, ¡ob
socurily is no Iongor on offor by onpIoyors vho aro Ioss anxious lo nainlain a
slabIo vorIforco ÷ as Mirvis and HaII (1994) poinl oul, organizalions aro naIing
conlinuod onpIoynonl oxpIicilIy conlingonl on lho fil bolvoon poopIo's conpo-
loncos and businoss noods,
fIoxibiIily, adaplabiIily and spood of rosponso aro aII-inporlanl and individuaI
roIos nay bo sub¡ocl lo conslanl chango ÷ conlinuily and prodiclabiIily aro no
Iongor avaiIabIo for onpIoyoos,
Ioanor organizalions noan lhal caroors nay nainIy dovoIop IaloraIIy ÷ oxpocla-
lions lhal progross viII bo nado by pronolion lhrough lho hiorarchy aro no
Iongor so vaIid,
Ioanor organizalions nay naIo groalor donands on onpIoyoos and aro Ioss IiIoIy
lo loIoralo poopIo vho no Iongor procisoIy fil lhoir roquirononls.
Bul, noro posilivoIy, sono organizalions aro roaIizing lhal slops havo lo bo laIon lo
incroaso nuluaIily and lo provido scopo for IaloraI caroor dovoIopnonl and inprovo-
nonl in InovIodgo and sIiIIs lhrough opporlunilios for Ioarning. Thoy rocognizo lhal
bocauso lhoy can no Iongor guaranloo Iong-lorn onpIoynonl lhoy havo lho rosponsi-
biIily lo hoIp poopIo lo conlinuo lo dovoIop lhoir caroors if lhoy havo lo novo on. In
olhor vords lhoy laIo slops lo inprovo onpIoyabiIily. Evon lhoso lhal havo fuIIy
onbracod lho ćoro÷poriphory' concopl nay rocognizo lhal lhoy sliII nood lo oblain
lho connilnonl of lhoir coro onpIoyoos and pay allonlion lo lhoir conlinuous dovoI-
opnonl, aIlhough in nosl organizalions lho onphasis is IiIoIy lo bo on soIf-
dovoIopnonl.
KissIor (1994) sunnod up lho difforoncos bolvoon oId and nov onpIoynonl
conlracls as foIIovs:
1ho psychoíogìcuí contruct 23l
Ol! Ncu
RoIalionship is pro- RoIalionship is nuluaI
dolorninod and inposod and nogolialod
You aro vho you vorI You aro dofinod by nuIlipIo
for and vhal you do roIos, nany oxlornaI lo lho
organizalion
LoyaIly is dofinod by LoyaIly is dofinod by
porfornanco oulpul and quaIily
Loaving is lroason IoopIo and sIiIIs onIy
noodod vhon roquirod
EnpIoyoos vho do vhal Long-lorn onpIoynonl
lhoy aro loId viII vorI is unIiIoIy, oxpocl and
unliI rolirononl proparo for nuIlipIo
roIalionships
Tho foIIoving vays in vhich psychoIogicaI conlracls aro changing havo boon
suggoslod by HiIlrop (1995):
lrcm 1c
Inposod roIalionship (conpIianco, MuluaI roIalionship
connand and conlroI) (connilnonl, parlicipalion and
invoIvononl)
Iornanonl onpIoynonl VariabIo onpIoynonl
roIalionship roIalionship ÷ poopIo and
sIiIIs onIy oblainod or
rolainod vhon roquirod
Focus on pronolion Focus on IaloraI caroor
dovoIopnonl
Finilo ¡ob dulios MuIlipIo roIos
Mool ¡ob roquirononls Add vaIuo
Enphasis on ¡ob socurily Enphasis on onpIoyabiIily
and IoyaIly lo conpany and IoyaIly lo ovn caroor
and sIiIIs
Training providod by Opporlunilios for soIf-
organizalion nanagod Ioarning
HiIlrop suggosls lhal a nov psychoIogicaI conlracl is onorging ÷ ono lhal is noro
silualionaI and shorl lorn and vhich assunos lhal oach parly is nuch Ioss dopondonl
on lho olhor for survivaI and grovlh. Ho boIiovos lhal in ils nosl naIod forn, lho nov
conlracl couId bo dofinod as foIIovs:
1horo ìs no ¡ob socurìty. 1ho ompíoyoo vìíí bo ompíoyod us íong us ho or sho udds vuíuo
to tho orgunìzutìon, und ìs porsonuííy rosponsìbío lor lìndìng nov vuys to udd vuíuo. ln
roturn, tho ompíoyoo hus tho rìght to domund ìntorostìng und ìmportunt vork, hus tho
lroodom und rosourcos to porlorm ìt voíí, rocoìvos puy thut rolíocts hìs or hor contrìbu-
tìon, und gots tho oxporìonco und truìnìng noodod to bo ompíoyubío horo or oísovhoro.
Bul lhis couId hardIy bo caIIod a baIancod conlracl. To vhal oxlonl do onpIoyoos in
gonoraI havo ´lho righl lo donand inlorosling and inporlanl vorI'` EnpIoyors sliII
caII lho shols, oxcopl vhon doaIing vilh lho spociaI casos of poopIo vho aro nuch in
donand and in shorl suppIy. In Brilain, as Manl (1996) poinlod oul, ´poopIo oflon
roaIIy aro rogardod as noroIy ´rosourcos¨ lo bo acquirod or divoslod according lo
shorl-lorn ocononic circunslancos'. Il is lho onpIoyor vho has lho povor lo diclalo
conlracluaI lorns unIoss lhoy havo boon fixod by coIIoclivo bargaining. IndividuaIs,
oxcopl vhon lhoy aro highIy soughl aflor, havo IillIo scopo lo vary lho lorns of lho
conlracl inposod upon lhon by onpIoyors.
Iorhaps ono of lho nosl inporlanl lronds in lho onpIoynonl roIalionship as
oxprossod by lho psychoIogicaI conlracl is lhal onpIoyoos aro nov boing roquirod lo
boar risIs lhal voro proviousIy carriod by lho organizalion. As EIIioll (1996) nolos:
´Tho nosl profound chango in lho Iabour narIol ovor lho pasl lvo docados has boon
lho nassivo shifl in povor fron onpIoyoo lo onpIoyor. This has nol onIy noanl lhal
vorIors havo had lhoir righls orodod, bul aIso lhal nuch of lho risI invoIvod in a
businoss has boon shiflod fron capilaI lo Iabour.'
1HL S1A1L Cl 1HL lSYCHCLCClCAL CCN1kAC1
Bul lho diro varnings aboul lho slalo of lho psychoIogicaI conlracl roforrod lo abovo
voro nol borno oul by lhroo rosoarch pro¡ocls connissionod by lho Inslilulo of
IorsonnoI and DovoIopnonl. Tho rosoarch conduclod by Guosl   (1996) oslabIishod
lhal lho psychoIogicaI conlracl (dofinod in lorns of vorIors' ¡udgononls of fairnoss,
lrusl and organizalionaI doIivory of ´lho doaI') vas in bollor shapo lhan nany pundils
suggosl. A foIIov-up survoy (Guosl and Convay, 1997) found lhal a vory high
proporlion of onpIoyoos (90 por conl) boIiovo lhal on baIanco lhoy aro fairIy lroalod
by lhoir onpIoyors and 79 por conl say lhoy lrusl nanagononl á Iol' or ´sonovhal' lo
Ioop ils pronisos. }ob socurily is nol a na¡or concorn ÷ 86 por conl fooI vory or fairIy
socuro in lhoir ¡obs. Ana¡orily (62 por conl) boIiovo lhal nanagononl and vorIors aro
on lho sano sido and onIy 18 por conl disagroo. Hovovor, ¡ob salisfaclion vas onIy
nodoralo (38 por conl oxpross high salisfaclion, bul 22 por conl oxpross Iov salisfac-
lion), aIlhough connilnonl lo lho organizalion vas high (49 por conl foIl á Iol' and
36 por conl ´sono' IoyaIly lo lhoir organizalion).
A furlhor survoy (Guosl and Convay, 1998) oslabIishod lhal:
lhoro had boon no significanl changos in alliludos and bohaviour sinco lho
provious survoy,
vorIors conlinuo lo boIiovo lhal lhoy aro fairIy lroalod ÷ 67 por conl roporl fair
lroalnonl by nanagononl and 64 por conl say lhal lhoy gol a fair day's pay for a
fair day's vorI,
lho nunbor of progrossivo HRM praclicos in pIaco is lho Ioy dolorninanl of
vholhor vorIors boIiovo lhoy aro fairIy lroalod, bocauso lhoy oxorl a na¡or infIu-
onco on vorI alliludos,
poopIo roporl lhal hono is for roIaxalion, vorI is for chaIIongo,
fooIings of socurily ronain high ÷ 88 por conl foIl vory or fairIy socuro in lhoir
¡obs,
poopIo sliII oxpocl a caroor ÷ 60 por conl boIiovo lhal lhoir onpIoyor has nado a
caroor proniso and of lhoso, 65 por conl lhinI lhal nanagononl has IargoIy Iopl
ils proniso (lhoso fooIings aro noro provaIonl anongsl youngor vorIors).
Tho ovoraII concIusion of lho rosoarchors in 1998 vas lhal ´lho psychoIogicaI conlracl
is vory hoaIlhy'. On lho vhoIo, nanagononl is soon as fair, lruslvorlhy and IiIoIy lo
Ioop ils pronisos. Tho Ioy infIuoncos on a hoaIlhy psychoIogicaI conlracl aro lho uso
of progrossivo hunan rosourco praclicos, scopo for dirocl parlicipalion al vorI and
vorIing in a snaIIor organizalion.
DLVLLCllNC AND MAlN1AlNlNC A lCSl1lVL
lSYCHCLCClCAL CCN1kAC1
As Guosl   (1996) poinl oul: Áposilivo psychoIogicaI conlracl is vorlh laIing sori-
ousIy bocauso il is slrongIy IinIod lo highor connilnonl lo lho organizalion, highor
onpIoyoo salisfaclion and bollor onpIoynonl roIalions. Again lhis roinforcos lho
bonofils of pursuing a sol of progrossivo HRM praclicos.' Thoy aIso onphasizo lho
inporlanco of a high-invoIvononl cIinalo and suggosl in parlicuIar lhal HRM prac-
licos such as lho provision of opporlunilios for Ioarning, lraining and dovoIopnonl,
focus on ¡ob socurily, pronolion and caroors, nininizing slalus difforonliaIs, fair
rovard syslons and conprohonsivo connunicalion and invoIvononl procossos viII
aII conlribulo lo a posilivo psychoIogicaI conlracl.
Slops laIon lo nanago lho onpIoynonl roIalionship as spocifiod in Chaplor 15 viII
aIso hoIp lo forn a posilivo psychoIogicaI conlracl. Thoso incIudo:
dofining oxpoclalions during rocruilnonl and induclion progrannos,
connunicaling and agrooing oxpoclalions as parl of lho conlinuing diaIoguo
inpIicil in good porfornanco nanagononl praclicos,
adopling a poIicy of lransparoncy on conpany poIicios and procoduros and on
nanagononl's proposaIs and docisions as lhoy affocl poopIo,
gonoraIIy lroaling poopIo as slaIohoIdors, roIying on consonsus and cooporalion
ralhor lhan conlroI and coorcion.
S1A1L Cl 1HL lSYCHCLCClCAL CCN1kAC1 2004
Tho 2004 WorIpIaco EnpIoyoo RoIalions Survoy (WERS, 2005) covoring 700,000
vorIpIacos and 22.5 niIIion onpIoyoos, survoyod 21,624 onpIoyoos in vorIpIacos
onpIoying noro lhan 10 poopIo aboul lhoir IovoI of ¡ob salisfaclion. Tho rosuIls aro
shovn in TabIo 16.1.
Vcry Satisficd Ncitbcr Dissatisficd Vcry
satisficd " " " dissatisficd
" "
Sonso ol uchìovomont l8 52 l9 8 3
Scopo lor usìng ìnìtìutìvo 20 52 l9 8 3
lnlíuonco ovor ¡ob l2 l5 28 ll 3
1ruìnìng ll 40 26 l6 7
luy 4 3l 26 28 l3
lob socurìty l3 50 22 ll 5
\ork ìtsoíl l7 55 l9 7 3
lnvoívomont ìn 8 30 39 l7 6
docìsìon-mukìng
TabIc 16.1 }ob salisfaclion (WERS, 2005)
Tho onIy aroa in vhich lhoro vas noro dissalisfaclion lhan salisfaclion vas pay. A
highor proporlion lhan nighl havo boon oxpoclod (72 por conl) voro salisfiod or vory
salisfiod vilh lho vorI ilsoIf, and oquaIIy high porconlagos voro salisfiod vilh rogard
lo having a sonso of achiovononl and scopo for using inilialivo.
IoopIo viII fooI lhal lhoy havo boon lroalod ¡uslIy if nanagononl's docisions and
procoduros aro fair, consislonl, lransparonl and non-discrininalory, and proporIy
considor lho viovs and noods of onpIoyoos.
Crgunìzutìonuí
bohuvìour
Pccplc pcrjcrm i|cir rclcs uii|in ccmplcx sqsicms ccllc! crgcnizciicns. 1|c siu!q cj
crgcnizciicncl |c|cticur is ccnccrnc! uii| |cu pccplc uii|in crgcnizciicns cci,
in!iti!ucllq cr in grcups, cn! |cu crgcnizciicns junciicn, in icrms cj i|cir siruciurc
cn! prcccsscs. All mcncgcrs cn! HR spcciclisis crc in i|c |usincss cj injlucncing
|c|cticur in !ircciicns i|ci uill mcci |usincss ncc!s. An un!crsicn!ing cj crgcnizc-
iicncl prcccsscs cn! s|ills in i|c cnclqsis cn! !icgncsis cj pciicrns cj crgcnizciicncl
|c|cticur crc i|crcjcrc impcricni. As Nc!lcr cn! 1us|mcn (1980) |ctc sci!.
1ho munugor noods to bo ubío to undorstund tho puttorns ol bohuvìour thut uro
obsorvod to prodìct ìn vhut dìroctìon bohuvìour vìíí movo tpurtìcuíuríy ìn tho íìght
ol munugorìuí uctìon), und to uso thìs knovíodgo to controí bohuvìour ovor tho
courso ol tìmo. Llloctìvo munugorìuí uctìon roquìros thut tho munugor bo ubío to
dìugnoso tho systom ho or sho ìs vorkìng ìn.
1|c purpcsc cj i|is pcri cj i|c |cc| is ic cuilinc c |csic sci cj ccnccpis cn! ic prcti!c
cnclqiiccl iccls u|ic| uill cnc|lc HR spcciclisis ic !icgncsc crgcnizciicncl |c|cticur
cn! ic ic|c cpprcpricic cciicns. 1|is purpcsc is cc|ictc! |q iniiicllq (C|cpicr 1¯)
prcti!ing c gcncrcl cnclqsis cj i|c c|crccicrisiics cj in!iti!ucls ci ucr|. 1|c ccnccpis
 
cj in!iti!ucl mciitciicn, jc| sciisjcciicn, ccmmiimcni cn! jc| cngcgcmcni crc i|cn
cxplcrc! in C|cpicrs 18 cn! 19 |cjcrc rcticuing gcncrcllq in C|cpicr 20 i|c ucqs in
u|ic| crgcnizciicns junciicn ÷ jcrmcl cn! injcrmcl siruciurcs ÷ cn! |cu pccplc ucr|
icgci|cr in grcups. 1|c culiurcl jccicrs i|ci cjjcci crgcnizciicncl |c|cticur crc i|cn
cxcminc! in C|cpicr 21.
238 Crgunìzutìonuí bohuvìour
Chuructorìstìcs ol poopío
To nanago poopIo offoclivoIy, il is nocossary lo undorsland lho faclors lhal affocl hov
poopIo bohavo al vorI. This noans laIing inlo accounl lho fundanonlaI characloris-
lics of poopIo as oxaninod in lhis chaplor undor lho foIIoving hoadings:
individuaI difforoncos ÷ as affoclod by poopIo's abiIilios, inloIIigonco, porsonaIily,
bacIground and cuIluro, gondor and raco,
alliludos ÷ causos and nanifoslalions,
infIuoncos on bohaviour ÷ porsonaIily and alliludos,
allribulion lhoory ÷ hov vo naIo ¡udgononls aboul poopIo,
orionlalion ÷ lho approachos poopIo adopl lo vorI,
roIos ÷ lho parls poopIo pIay in carrying oul lhoir vorI.
lNDlVlDLAL DlllLkLNCLS
Tho nanagononl of poopIo vouId bo nuch oasior if ovoryono voro lho sano, bul
lhoy aro, of courso, difforonl bocauso of lhoir abiIily, inloIIigonco, porsonaIily, bacI-
ground and cuIluro (lho onvironnonl in vhich lhoy voro broughl up), as discussod
boIov. Gondor, raco and disabiIily aro addilionaI faclors lo bo laIon inlo accounl.
InporlanlIy, lho noods and vanls of individuaIs viII aIso diffor, oflon fundanonlaIIy,
and lhis affocls lhoir nolivalion, as doscribod in lho noxl chaplor.

Tho hoadings undor vhich porsonaI characlorislics can vary havo boon cIassifiod
by MischoI (1981) as foIIovs:
ccmpcicncics ÷ abiIilios and sIiIIs,
ccnsirucis ÷ lho concopluaI franovorI vhich govorns hov poopIo porcoivo lhoir
onvironnonl,
cxpcciciicns ÷ vhal poopIo havo Ioarnod lo oxpocl aboul lhoir ovn and olhors'
bohaviour,
tclucs ÷ vhal poopIo boIiovo lo bo inporlanl,
sclj-rcgulcicrq plcns ÷ lho goaIs poopIo sol lhonsoIvos and lho pIans lhoy naIo lo
achiovo lhon.
EnvironnonlaI or silualionaI variabIos incIudo lho lypo of vorI individuaIs carry
oul, lho cuIluro, cIinalo and nanagononl slyIo in lho organizalion, lho sociaI group
vilhin vhich individuaIs vorI, and lho ´roforonco groups´ lhal individuaIs uso for
conparalivo purposos (og conparing condilions of vorI bolvoon ono calogory of
onpIoyoo and anolhor).

AbiIily is lho quaIily lhal naIos an aclion possibIo. AbiIilios havo boon anaIysod by
Burl (1954) and Vornon (1961). Thoy cIassifiod lhon inlo lvo na¡or groups:
V:od ÷ slanding for vorbaI, nunoricaI, nonory and roasoning abiIilios,
K:n ÷ slanding for spaliaI and nochanicaI abiIilios, as voII as porcopluaI
(nonory) and nolor sIiIIs roIaling lo physicaI oporalions such as oyo/hand coor-
dinalion and nonlaI doxlorily.
Thoy aIso suggoslod lhal ovorriding lhoso abiIilios lhoro is a ´g' or gonoraI inloIIigonco
faclor vhich accounls for nosl varialions in porfornanco.
AIlornalivo cIassificalions havo boon producod by
Thurslono (1940) ÷ spaliaI abiIily, porcopluaI spood, nunoricaI abiIily, vorbaI
noaning, nonory, vorbaI fIuoncy and induclivo roasoning,
Gagno (1977) ÷ inloIIocluaI sIiIIs, cognilivo (undorslanding and Ioarning) sIiIIs,
vorbaI and nolor sIiIIs,
ArgyIo (1989) ÷ ¡udgononl, croalivily and sociaI sIiIIs.
ín|cííígcncc
InloIIigonco has boon dofinod as:
´lho capacily lo soIvo probIons, appIy principIos, naIo inforoncos and porcoivo
roIalionships' (ArgyIo, 1989),
´lho capacily for abslracl lhinIing and roasoning vilh a rango of difforonl
conlonls and nodia' (TopIis   1991),
´lho capacily lo procoss infornalion' (MaIin  , 1996),
´vhal is noasurod by inloIIigonco losls' (Wrighl and TayIor, 1970).
Tho Iasl, lauloIogicaI dofinilion is nol facolious. As an oporalionaI dofinilion, il can bo
roIalod lo lho spocific aspocls of roasoning, inforonco, cognilion (io Inoving,
concoiving) and porcoplion (io undorslanding, rocognilion) lhal inloIIigonco losls
allonpl lo noasuro.
GonoraI inloIIigonco, as nolod abovo, consisls of a nunbor of nonlaI abiIilios lhal
onabIo a porson lo succood al a vido varioly of inloIIocluaI lasIs lhal uso lho facuIlios
of Inoving and roasoning. Tho nalhonalicaI lochniquo of faclor anaIysis has boon
usod lo idonlify lho consliluonls of inloIIigonco, such as Thurslono's (1940) nuIlipIo
faclors Iislod abovo. Bul lhoro is no gonoraI agroononl anong psychoIogisls as lo
vhal lhoso faclors aro or, indood, vholhor lhoro is such a lhing as gonoraI inloIIigonco.
An aIlornalivo approach lo lho anaIysis of inloIIigonco vas pul forvard by GuiIford
(1967), vho dislinguishod fivo lypos of nonlaI oporalion: lhinIing, rononboring,
divorgonl produclion (probIon-soIving vhich Ioads lo unoxpoclod and originaI soIu-
lions), convorgonl produclion (probIon-soIving vhich Ioads lo lho ono, corrocl soIu-
lion) and ovaIualing.
|cr·onaíí|,
Dcfinition
As dofinod by TopIis   (1991), lho lorn porsonaIily is aII-onbracing in lorns of lho
individuaI's bohaviour and lho vay il is organizod and coordinalod vhon ho or sho
inloracls vilh lho onvironnonl. IorsonaIily can bo doscribod in lorns of lrails or
lypos.
Tbc trait conccpt of pcrsonaIity
IorsonaIily can bo dofinod as lho roIalivoIy slabIo and onduring aspocls of individuaIs
lhal dislinguish lhon fron olhor poopIo. This is lho ´lrail´ concopl, lrails boing prodis-
Chuructorìstìcs ol poopío 24l
posilions lo bohavo in corlain vays in a varioly of difforonl silualions. Tho assunp-
lion lhal poopIo aro consislonl in lho vays lhoy oxpross lhoso lrails is lho basis for
naIing prodiclions aboul lhoir fuluro bohaviour. Wo aII allribulo lrails lo poopIo in
an allonpl lo undorsland vhy lhoy bohavo in lho vay lhoy do. As ChoII (1987)
says: ´This cognilivo procoss givos a sonso of ordor lo vhal nighl olhorviso appoar lo
bo sonsoIoss uncoordinalod bohaviours. Trails nay lhoroforo bo lhoughl of as cIassifi-
calion syslons, usod by individuaIs lo undorsland olhor poopIo's and lhoir ovn
bohaviour.'
Tho so-caIIod big fivo porsonaIily lrails as dofinod by Doary and Mallhovs (1993)
aro:
ncurciicism ÷ anxioly, doprossion, hosliIily, soIf-consciousnoss, inpuIsivonoss,
vuInorabiIily,
cxirctcrsicn ÷ varnlh, grogariousnoss, assorlivonoss, aclivily, oxcilononl sooIing,
posilivo onolions,
cpcnncss ÷ fooIings, aclions, idoas, vaIuos,
cgrccc|lcncss ÷ lrusl, slraighlforvardnoss, aIlruisn, conpIianco, nodosly, londor-
nindodnoss,
ccnscicniicusncss ÷ conpolonco, ordor, dulifuInoss, achiovononl-slriving, soIf-
discipIino, doIiboralion.
AvidoIy usod inslrunonl for assossing lrails is CalloII's (1963) 16IF losl. Bul lho lrail
lhoory of porsonaIily has boon allacIod by poopIo such as MischoI (1981), ChoII (1985)
and Harro (1979). Tho nain crilicisns havo boon as foIIovs:
IoopIo do nol nocossariIy oxpross lho sano lrail across difforonl silualions or ovon
lho sano lrail in lho sano silualion. Difforonl poopIo nay oxhibil consisloncy in
sono lrails and considorabIo variabiIily in olhors.
CIassicaI lrail lhoory as fornuIalod by CalloII (1963) assunos lhal lho nanifosla-
lion of lrail bohaviour is indopondonl of lho silualions and lho porsons vilh
vhon lho individuaI is inloracling ÷ lhis assunplion is quoslionabIo, givon lhal
lrail bohaviour usuaIIy nanifosls ilsoIf in rosponso lo spocific silualions.
Trail allribulions aro a producl of Ianguago ÷ lhoy aro dovicos for spoaIing aboul
poopIo and aro nol gonoraIIy doscribod in lorns of bohaviour.
Typc tbcorics of pcrsonaIity
Typo lhoory idonlifios a nunbor of lypos of porsonaIily lhal can bo usod lo calogorizo
poopIo and nay forn lho basis of a porsonaIily losl. Tho lypos nay bo IinIod lo
doscriplions of various lrails.
Ono of lho nosl vidoIy usod lypo lhoorios is lhal of }ung (1923). Ho idonlifiod four
na¡or proforoncos of poopIo:
roIaling lo olhor poopIo ÷ oxlravorsion or inlrovorsion,
galhoring infornalion ÷ sonsing (doaIing vilh facls lhal can bo ob¡oclivoIy vori-
fiod) or inluilivo (gonoraling infornalion lhrough insighl),
using infornalion ÷ lhinIing (onphasizing IogicaI anaIysis as lho basis for doci-
sion-naIing) or fooIing (naIing docisions basod on inlornaI vaIuos and boIiofs),
naIing docisions ÷ porcoiving (coIIocling aII lho roIovanl infornalion boforo
naIing a docision) or ¡udging (rosoIving lho issuo vilhoul vailing for a Iargo
quanlily of dala).
This lhoory of porsonaIily forns lho basis of porsonaIily losls such as lho Myors-
Briggs Typos Indicalor.
EysoncI (1953) idonlifiod lhroo porsonaIily lrails: oxlrovorsion/inlrovorsion,
nourolicisn and psycholicisn, and cIassifiod poopIo as slabIo or unslabIo oxlrovorls
or inlrovorls. For oxanpIo, a slabIo inlrovorl is passivo, carofuI, conlroIIod and
lhoughlfuI, vhiIo a slabIo oxlrovorl is IivoIy, oulgoing, rosponsivo and sociabIo.
As MaIin   (1996) connonl, sludios using lypos lo prodicl vorI-roIalod bohav-
iours aro Ioss connon and nay bo difficuIl lo inlorprol: Ín gonoraI il vouId bo fair lo
say lhal lhoir IovoI of prodiclabiIily is siniIar lo lhal for lrail noasuros.'
Thc ínfíucncc of bac|ground
IndividuaI difforoncos nay bo a funclion of poopIo's bacIground, vhich viII incIudo
lho onvironnonl and cuIluro in vhich lhoy havo boon broughl up and nov oxisl.
Lovinson (1978) suggoslod lhal índividuaI Iifo slrucluro´ is shapod by lhroo lypos of
oxlornaI ovonl:
lho socio-cuIluraI onvironnonl,
lho roIos lhoy pIay and lho roIalionships lhoy havo,
lho opporlunilios and conslrainls lhal onabIo or inhibil lhon lo oxpross and
dovoIop lhoir porsonaIily.
Díffcrcncc· arí·íng from gcndcr, racc or dí·abííí|,
Il is fuliIo, dangorous and invidious lo naIo assunplions aboul inhoronl difforoncos
bolvoon poopIo bocauso of lhoir sox, raco or dogroo of disabiIily.  lhoro aro diffor-
oncos in bohaviour al vorI, lhoso aro noro IiIoIy lo ariso fron onvironnonlaI and
cuIluraI faclors lhan fron difforoncos in fundanonlaI porsonaI characlorislics. Tho
Chuructorìstìcs ol poopío 243
vorI onvironnonl undoublodIy infIuoncos fooIings and bohaviour for oach of lhoso
calogorios. Rosoarch cilod by ArnoId ci cl (1991) oslabIishod lhal vorIing vonon
as a vhoIo óxporioncod noro daiIy slross, narilaI dissalisfaclion, and agoing vorrios,
and voro Ioss IiIoIy lo shov ovorl angor lhan oilhor housovivos or non'. Elhnic
ninorilios nay find lhal lho soIoclion procoss is biasod againsl lhon, pronolion
prospocls aro Iov and lhal lhoy aro sub¡ocl lo olhor ovorl or sublIo forns of discrini-
nalion. Tho bohaviour of poopIo vilh disabiIilios can aIso bo affoclod by lho facl
lhal lhoy aro nol givon oquaI opporlunilios. Thoro is, of courso, IogisIalion againsl
discrininalion in oach of lhoso aroas bul lhis cannol provonl lho noro covorl forns of
pro¡udico.
A11l1LDLS
An alliludo can broadIy bo dofinod as a sollIod nodo of lhinIing. Alliludos aro ovaIu-
alivo. As doscribod by MaIin ci cl (1996), Ány alliludo conlains an assossnonl of
vholhor lho ob¡ocl lo vhich il rofors is IiIod or disIiIod.' Alliludos aro dovoIopod
lhrough oxporionco bul lhoy aro Ioss slabIo lhan lrails and can chango as nov oxpori-
oncos aro gainod or infIuoncos absorbod. Wilhin organizalions lhoy aro affoclod by
cuIluraI faclors (vaIuos and norns), lho bohaviour of nanagononl (nanagononl
slyIo), poIicios such as lhoso concornod vilh pay, rocognilion, pronolion and lho
quaIily of vorIing Iifo, and lho infIuonco of lho ´roforonco group' (lho group vilh
vhon poopIo idonlify).
lNlLLLNCLS CN ßLHAVlCLk A1 \CkK
fac|or· affcc|íng bchavíour
Bohaviour al vorI is dopondonl on bolh lho porsonaI characlorislics of individuaIs
(porsonaIily and alliludos) and lho silualion in vhich lhoy aro vorIing. Thoso faclors
inloracl, and lhis lhoory of bohaviour is sonolinos caIIod inloraclionisn. Il is bocauso
of lhis procoss of inloraclion and bocauso lhoro aro so nany variabIos in porsonaI
characlorislics and silualions lhal bohaviour is difficuIl lo anaIyso and prodicl. Il is
gonoraIIy assunod lhal alliludos dolornino bohaviour, bul lhoro is nol such a dirocl
IinI as nosl poopIo supposo. As ArnoId ci cl (1991) connonl, rosoarch ovidonco has
shovn lhal: ÍoopIo's avovod fooIings and boIiofs aboul sonoono or sonolhing
soonod onIy IoosoIy roIalod lo hov lhoy bohavod lovards il.'
Bohaviour viII bo infIuoncod by lho porcoplions of individuaIs aboul lho silualion
lhoy aro in. Tho lorn psqc|clcgiccl climcic has boon coinod by }anos and SoIIs (1981) lo
doscribo hov poopIo's porcoplions of lho silualion givo il psychoIogicaI significanco
and noaning. Thoy suggoslod lhal lho Ioy onvironnonlaI variabIos aro:
roIo characlorislics such as roIo anbiguily and confIicl (soo lho Iasl soclion in lhis
chaplor),
¡ob characlorislics such as aulonony and chaIIongo,
Ioador bohaviours, incIuding goaI onphasis and vorI faciIilalion,
vorI group characlorislics, incIuding cooporalion and friondIinoss,
organizalionaI poIicios lhal diroclIy affocl individuaIs, such as lho rovard syslon.
A11klßL1lCN 1HLCkY - HC\ \L MAKL lLDCLMLN1S
AßCL1 lLClLL
Tho vays in vhich vo porcoivo and naIo ¡udgononls aboul poopIo al vorI aro
oxpIainod by allribulion lhoory, vhich concorns lho assignnonl of causos lo ovonls.
Wo naIo an allribulion vhon vo porcoivo and doscribo olhor poopIo's aclions and lry
lo discovor vhy lhoy bohavod in lho vay lhoy did. Wo can aIso naIo allribulions
aboul our ovn bohaviour. Hoidor (1958) has poinlod oul lhal: Ín ovoryday Iifo vo
forn idoas aboul olhor poopIo and aboul sociaI silualions. Wo inlorprol olhor poopIo's
aclions and vo prodicl vhal lhoy viII do undor corlain circunslancos.'
In allribuling causos lo poopIo's aclions vo dislinguish bolvoon vhal is in lho
porson's povor lo achiovo and lho offocl of onvironnonlaI infIuonco. A porsonaI
causo, vholhor sonoono doos voII or badIy, nay, for oxanpIo, bo lho anounl of offorl
dispIayod, vhiIo a silualionaI causo nay bo lho oxlrono difficuIly of lho lasI. KoIIoy
(1967) has suggoslod lhal lhoro aro four criloria lhal vo appIy lo docido vholhor
bohaviour is allribulabIo lo porsonaI ralhor lhan oxlornaI (silualionaI) causos:
!isiinciitcncss ÷ lho bohaviour can bo dislinguishod fron lho bohaviour of olhor
poopIo in siniIar silualions,
ccnscnsus ÷ if olhor poopIo agroo lhal lho bohaviour is govornod by sono porsonaI
characlorislic,
ccnsisicncq ctcr iimc ÷ vholhor lho bohaviour is ropoalod,
ccnsisicncq ctcr mc!cliiq (io lho nannor in vhich lhings aro dono) ÷ vholhor or nol
lho bohaviour is ropoalod in difforonl silualions.
Allribulion lhoory is aIso concornod vilh lho vay in vhich poopIo allribulo succoss
or faiIuro lo lhonsoIvos. Rosoarch by Woinor (1974) and olhors has indicalod lhal
vhon poopIo vilh high achiovononl noods havo boon succossfuI, lhoy ascribo lhis lo
inlornaI faclors such as abiIily and offorl. High achiovors lond lo allribulo faiIuro lo
IacI of offorl and nol IacI of abiIily. Lov achiovors lond nol lo IinI succoss vilh offorl
bul lo ascribo lhoir faiIuros lo IacI of abiIily.
CklLN1A1lCN 1C \CkK
Orionlalion lhoory oxaninos lho faclors lhal aro inslrunonlaI, io sorvo as a noans, in
dirocling poopIo's choicos aboul vorI. An orionlalion is a conlraI organizing prin-
cipIo lhal undorIios poopIo's allonpls lo naIo sonso of lhoir Iivos. In roIalion lo vorI,
as dofinod by Guosl (1984): Án orionlalion is a porsisling londoncy lo sooI corlain
goaIs and rovards fron vorI vhich oxisls indopondonlIy of lho naluro of lho vorI
and lho vorI conlonl.' Tho orionlalion approach slrossos lho roIo of lho sociaI onvi-
ronnonl faclor as a Ioy faclor affocling nolivalion.
Orionlalion lhoory is prinariIy dovoIopod fron fioIdvorI carriod oul by socioIo-
gisls ralhor lhan fron Iaboralory vorI conduclod by psychoIogisls. GoIdlhorpo  
(1968) sludiod sIiIIod and soni-sIiIIod vorIors in Lulon, and, in lhoir findings, lhoy
slrossod lho inporlanco of inslrunonlaI orionlalion, lhal is, a viov of vorI as a
noans lo an ond, a conloxl in vhich lo oarn nonoy lo purchaso goods and Ioisuro.
According lo GoIdlhorpo, lho áffIuonl' vorIor inlorviovod by lho rosoarch loan
vaIuod vorI IargoIy for oxlrinsic roasons.
In lhoir rosoarch carriod oul vilh bIuo-coIIar vorIors in Iolorborough, BIacIburn
and Mann (1979) found a vidor rango of orionlalions. Thoy suggoslod lhal difforonl
onos couId cono inlo pIay vilh varying dogroos of forco in difforonl silualions. Tho
facl lhal vorIors, in praclico, had IillIo choico aboul vhal lhoy did conlribulod lo lhis
divorsily ÷ lhoir orionlalions voro affoclod by lho choico or IacI of choico prosonlod lo
lhon and lhis noanl lhal lhoy nighl bo forcod lo accopl aIlornalivo orionlalions.
Bul BIacIburn and Mann confirnod lhal pay vas a Ioy proforonco aroa, lho lop
proforoncos boing:
1. pay,
2. socurily,
3. vorInalos,
4. inlrinsic ¡ob salisfaclion,
5. aulonony.
Thoy connonlod lhal: Án obsossion vilh vagos cIoarIy onorgod... A concorn lo
nininizo unpIoasanl vorI vas aIso vidosproad.' SurprisingIy, porhaps, lhoy aIso
rovoaIod lhal lho nosl porsislonl proforonco of aII vas for oulsido vorI, á fairIy cIoar
dosiro for a conbinalion of frosh air and froodon'.
kCLLS
Whon facod vilh any silualion, og carrying oul a ¡ob, poopIo havo lo onacl a roIo in
ordor lo nanago lhal silualion. This is sonolinos caIIod lho ´silualion-acl nodoI'. As
doscribod by ChoII (1985), lho nodoI indicalos lhal: ´Tho porson nusl acl vilhin silu-
alions: silualions aro ruIo-govornod and hov a porson bohavos is oflon proscribod by
lhoso sociaIIy acquirod ruIos. Tho porson lhus adopls a suilabIo roIo in ordor lo
porforn offoclivoIy vilhin lho silualion.'
Al vorI, lho lorn rclc doscribos lho parl lo bo pIayod by individuaIs in fuIfiIIing
lhoir ¡ob roquirononls. RoIos lhoroforo indicalo lho spocific forns of bohaviour
roquirod lo carry oul a parlicuIar lasI or lho group of lasIs conlainod in a pcsiiicn or
¡ob. WorI roIo profiIos prinariIy dofino lho roquirononls in lorns of lho vays lasIs
aro carriod oul ralhor lhan lho lasIs lhonsoIvos. Thoy nay rofor lo broad aspocls of
bohaviour, ospociaIIy vilh rogard lo vorIing vilh olhors and slyIos of nanagononl.
A dislinclion can lhoroforo bo nado bolvoon a jc| !cscripiicn, vhich sinpIy Iisls lho
nain lasIs an individuaI has lo carry oul, and a rclc prcjilc, vhich is noro concornod
vilh lho bohaviouraI aspocls of lho vorI and lho oulconos lho individuaI in lho roIo
is oxpoclod lo achiovo. Tho concopl of a roIo onphasizos lho facl lhal poopIo al vorI
aro, in a sonso, aIvays acling a parl, lhoy aro nol sinpIy rociling lho Iinos bul inlor-
proling lhon in lorns of lhoir ovn porcoplions of hov lhoy shouId bohavo in roIalion
lo lho conloxl in vhich lhoy vorI, ospociaIIy vilh rogard lo lhoir inloraclions vilh
olhor poopIo and lhoir discrolionary bohaviour.
RoIo lhoory, as fornuIalod by Kalz and Kahn (1966) slalos lhal lho roIo individuaIs
occupy al vorI ÷ and oIsovhoro ÷ oxisls in roIalion lo olhor poopIo ÷ lhoir rclc sci.
Thoso poopIo havo oxpoclalions aboul lho individuaIs' roIo, and if lhoy Iivo up lo
lhoso oxpoclalions lhoy viII havo succossfuIIy porfornod lho roIo. Iorfornanco in a
roIo is a producl of lho silualion individuaIs aro in (lho organizalionaI conloxl and lho
diroclion or infIuonco oxorcisod fron abovo or oIsovhoro in lho organizalion) and
lhoir ovn sIiIIs, conpoloncos, alliludos and porsonaIily. SilualionaI faclors aro
inporlanl, bul lho roIo individuaIs porforn can bolh shapo and rofIocl lhoir porsonaI-
ilios. Slross and inadoqualo porfornanco rosuIl vhon roIos aro anbiguous, inconpal-
ibIo, or in confIicl vilh ono anolhor.
Roíc ambíguí|,
Whon individuaIs aro uncIoar aboul vhal lhoir roIo is, vhal is oxpoclod of lhon,
or hov lhoy aro golling on, lhoy nay bocono insocuro or Ioso confidonco in
lhonsoIvos.
Roíc íncompa|íbííí|,
Slross and poor porfornanco nay bo causod by roIos having inconpalibIo oIononls,
as vhon lhoro is a cIash bolvoon vhal olhor poopIo oxpocl fron lho roIo and vhal
individuaIs boIiovo is oxpoclod of lhon.
Roíc confííc|
RoIo confIicl rosuIls vhon, ovon if roIos aro cIoarIy dofinod and lhoro is no inconpali-
biIily bolvoon oxpoclalions, individuaIs havo lo carry oul lvo anlagonislic roIos. For
oxanpIo, confIicl can oxisl bolvoon lho roIos of individuaIs al vorI and lhoir roIos al
hono.
lMlLlCA1lCNS lCk Hk SlLClALlS1S
Tho nain inpIicalions for HR spociaIisls of lho faclors lhal affocl individuaIs al vorI
aro as foIIovs:
ln!iti!ucl !ijjcrcnccs ÷ vhon dosigning ¡obs, proparing Ioarning progrannos,
assossing and counsoIIing slaff, dovoIoping rovard syslons and doaIing vilh
griovancos and discipIinary probIons, il is nocossary lo rononbor lhal aII poopIo
aro difforonl. This nay soon obvious bul il is ronarIabIo hov nany poopIo
ignoro il. Whal fuIfiIs ono porson nay nol fuIfiI anolhor. AbiIilios, apliludos and
inloIIigonco diffor vidoIy and parlicuIar caro noods lo bo laIon in filling lho righl
poopIo inlo lho righl ¡obs and giving lhon lho righl lraining. IorsonaIilios and
alliludos aIso diffor. Il is inporlanl lo focus on hov lo nanago divorsily as
doscribod in Chaplor 57. This shouId laIo accounl of individuaI difforoncos,
vhich viII incIudo any issuos arising fron lho onpIoynonl of vonon, poopIo
fron difforonl olhnic groups, lhoso vilh disabiIilios and oIdor poopIo.
Pcrscncliiics shouId nol bo ¡udgod sinpIislicaIIy in lorns of sloroolypod lrails.
IoopIo aro conpIox and lhoy chango, and accounl has lo bo laIon of lhis. Tho
probIon for HR spociaIisls and nanagors in gonoraI is lhal, vhiIo lhoy havo lo
accopl and undorsland lhoso difforoncos and laIo fuII accounl of lhon, lhoy havo
uIlinaloIy lo procood on lho basis of filling lhon lo lho roquirononls of lho silua-
lion, vhich aro ossonliaIIy vhal lho organizalion noods lo achiovo. Thoro is
aIvays a Iinil lo lho oxlonl lo vhich an organizalion, vhich roIios on coIIoclivo
offorl lo achiovo ils goaIs, can ad¡usl ilsoIf lo lho spocific noods of individuaIs. Bul
lho organizalion has lo approcialo lhal lho prossuros il naIos on poopIo can rosuIl
in slross and lhoroforo bocono counlor-produclivo.
ju!gcmcnis c|cui pccplc (allribulion lhoory) ÷ vo aII ascribo nolivos lo olhor
poopIo and allonpl lo oslabIish lho causos of lhoir bohaviour. Wo nusl bo carofuI,
hovovor, nol lo naIo sinpIislic ¡udgononls aboul causaIily (io vhal has noli-
valod sonoono's bohaviour) ÷ for oursoIvos as voII as in rospocl of olhors ÷ ospo-
ciaIIy vhon vo aro assossing porfornanco.
Oricniciicn i|ccrq ÷ lho significanco of orionlalion lhoory is lhal il slrossos lho
inporlanco of lho offocl of onvironnonlaI faclors on lho nolivalion lo vorI.
Rclc i|ccrq ÷ roIo lhoory hoIps us lo undorsland lho nood lo cIarify vilh individ-
uaIs vhal is oxpoclod of lhon in bohaviouraI and oulcono lorns and lo onsuro
vhon dosigning roIos lhal lhoy do nol conlain any inconpalibIo oIononls. Wo
nusl aIso bo avaro of lho polonliaI for roIo confIicl so lhal slops can bo laIon lo
nininizo slross.

AII organizalions aro concornod vilh vhal shouId bo dono lo achiovo suslainod high
IovoIs of porfornanco lhrough poopIo. This noans giving cIoso allonlion lo hov
individuaIs can bosl bo nolivalod lhrough such noans as inconlivos, rovards, Ioador-
ship and, inporlanlIy, lho vorI lhoy do and lho organizalion conloxl vilhin vhich
lhoy carry oul lhal vorI. Tho ain is lo dovoIop nolivalion procossos and a vorI
onvironnonl lhal viII hoIp lo onsuro lhal individuaIs doIivor rosuIls in accordanco
vilh lho oxpoclalions of nanagononl.
Molivalion lhoory oxaninos lho procoss of nolivalion. Il oxpIains vhy poopIo al
vorI bohavo in lho vay lhoy do in lorns of lhoir offorls and lho diroclions lhoy aro
laIing. Il doscribos vhal organizalions can do lo oncourago poopIo lo appIy lhoir
offorls and abiIilios in vays lhal viII furlhor lho achiovononl of lho organizalion's
goaIs as voII as salisfying lhoir ovn noods. Il is aIso concornod vilh ¡ob salisfaclion ÷
lho faclors lhal croalo il and ils inpacl on porfornanco.
In undorslanding and appIying nolivalion lhoory, lho ain is lo oblain addod vaIuo
lhrough poopIo in lho sonso lhal lho vaIuo of lhoir oulpul oxcoods lho cosl of gonor-
aling il. This can bo achiovod lhrough discrolionary offorl. In nosl if nol aII roIos lhoro
is scopo for individuaIs lo docido hov nuch offorl lhoy vanl lo oxorl. Thoy can do
¡usl onough lo gol avay vilh il, or lhoy can lhrov lhonsoIvos inlo lhoir vorI and
doIivor addod vaIuo. Discrolionary offorl can bo a Ioy conpononl in organizalionaI
porfornanco.

UnforlunaloIy, approachos lo nolivalion aro loo oflon undorpinnod by sinpIislic
assunplions aboul hov il vorIs. Tho procoss of nolivalion is nuch noro conpIox
lhan nany poopIo boIiovo. IoopIo havo difforonl noods, oslabIish difforonl goaIs lo
salisfy lhoso noods and laIo difforonl aclions lo achiovo lhoso goaIs. Il is vrong lo
assuno lhal ono approach lo nolivalion fils aII. Thal is vhy lho assunplions undor-
Iying boIiof in lho virluos of porfornanco-roIalod pay as a noans of providing a noli-
valionaI inconlivo aro sinpIislic. MolivalionaI praclicos aro nosl IiIoIy lo funclion
offoclivoIy if lhoy aro basod on propor undorslanding of vhal is invoIvod. This
chaplor lhoroforo covors lho foIIoving:
lho procoss of nolivalion,
lho various lhoorios of nolivalion vhich oxpIain and anpIify lho basic procoss,
lho praclicaI inpIicalions of nolivalion lhoory,
¡ob salisfaclion.
1HL lkCCLSS Cl MC1lVA1lCN
Whal is nolivalion` A nolivo is a roason for doing sonolhing. Molivalion is
concornod vilh lho faclors lhal infIuonco poopIo lo bohavo in corlain vays. Tho lhroo
conpononls of nolivalion as Iislod by ArnoId ci cl (1991) aro:
!ircciicn ÷ vhal a porson is lrying lo do,
cjjcri ÷ hov hard a porson is lrying,
pcrsisicncc ÷ hov Iong a porson Ioops on lrying.
Molivaling olhor poopIo is aboul golling lhon lo novo in lho diroclion you vanl
lhon lo go in ordor lo achiovo a rosuIl. Molivaling yoursoIf is aboul solling lho diroc-
lion indopondonlIy and lhon laIing a courso of aclion vhich viII onsuro lhal you gol
lhoro. Molivalion can bo doscribod as goaI-diroclod bohaviour. IoopIo aro nolivalod
vhon lhoy oxpocl lhal a courso of aclion is IiIoIy lo Ioad lo lho allainnonl of a goaI
and a vaIuod rovard ÷ ono lhal salisfios lhoir noods.
WoII-nolivalod poopIo aro lhoso vilh cIoarIy dofinod goaIs vho laIo aclion lhal
lhoy oxpocl viII achiovo lhoso goaIs. Such poopIo nay bo soIf-nolivalod, and as Iong
as lhis noans lhoy aro going in lho righl diroclion lo achiovo vhal lhoy aro lhoro lo
achiovo, lhon lhis is lho bosl forn of nolivalion. Mosl poopIo, hovovor, nood lo bo
nolivalod lo a groalor or Iossor dogroo. Tho organizalion as a vhoIo can provido lho
conloxl vilhin vhich high IovoIs of nolivalion can bo achiovod by providing incon-
livos and rovards, salisfying vorI, and opporlunilios for Ioarning and grovlh. Bul
nanagors sliII havo a na¡or parl lo pIay in using lhoir nolivaling sIiIIs lo gol poopIo
lo givo of lhoir bosl, and lo naIo good uso of lho nolivalionaI procossos providod by
lho organizalion. To do lhis il is nocossary lo undorsland lho procoss of nolivalion ÷
hov il vorIs and lho difforonl lypos of nolivalion lhal oxisl.
A noods-roIalod nodoI of lho procoss of nolivalion is shovn in Figuro 18.1. This
suggosls lhal nolivalion is inilialod by lho conscious or unconscious rocognilion of
unsalisfiod noods. Thoso noods croalo vanls, vhich aro dosiros lo achiovo or oblain
sonolhing. GoaIs aro lhon oslabIishod vhich il is boIiovod viII salisfy lhoso noods and
vanls and a bohaviour palhvay is soIoclod vhich il is oxpoclod viII achiovo lho goaI.
If lho goaI is achiovod, lho nood viII bo salisfiod and lho bohaviour is IiIoIy lo bo
ropoalod lho noxl lino a siniIar nood onorgos. If lho goaI is nol achiovod, lho sano
aclion is Ioss IiIoIy lo bo ropoalod. This procoss of ropoaling succossfuI bohaviour or
aclions is caIIod roinforcononl or lho Iav of offocl (HuII, 1951). Il has, hovovor, boon
crilicisod by AIIporl (1954) as ignoring lho infIuonco of oxpoclalions and lhoroforo
consliluling ´hodonisn of lho pasl'.
1YlLS Cl MC1lVA1lCN
Molivalion al vorI can laIo pIaco in lvo vays. Firsl, poopIo can nolivalo lhonsoIvos
by sooIing, finding and carrying oul vorI (or boing givon vorI) lhal salisfios lhoir
noods or al Ioasl Ioads lhon lo oxpocl lhal lhoir goaIs viII bo achiovod. SocondIy,
poopIo can bo nolivalod by nanagononl lhrough such nolhods as pay, pronolion,
praiso, olc.
Motìvutìon 253
establish
goal
attain
goal
need
take
action
FIgurc 18.1 Tho procoss of nolivalion
Thoro aro lvo lypos of nolivalion as originaIIy idonlifiod by Horzborg ci cl (1957):
lnirinsic mciitciicn ÷ lho soIf-gonoralod faclors lhal infIuonco poopIo lo bohavo in
a parlicuIar vay or lo novo in a parlicuIar diroclion. Thoso faclors incIudo
rosponsibiIily (fooIing lhal lho vorI is inporlanl and having conlroI ovor ono's
ovn rosourcos), aulonony (froodon lo acl), scopo lo uso and dovoIop sIiIIs and
abiIilios, inlorosling and chaIIonging vorI and opporlunilios for advancononl.
|xirinsic mciitciicn ÷ vhal is dono lo or for poopIo lo nolivalo lhon. This incIudos
rovards, such as incroasod pay, praiso, or pronolion, and punishnonls, such as
discipIinary aclion, vilhhoIding pay, or crilicisn.
Exlrinsic nolivalors can havo an innodialo and povorfuI offocl, bul il viII nol nocos-
sariIy Iasl Iong. Tho inlrinsic nolivalors, vhich aro concornod vilh lho ´quaIily of
vorIing Iifo' (a phraso and novononl lhal onorgod fron lhis concopl), aro IiIoIy lo
havo a doopor and Iongor-lorn offocl bocauso lhoy aro inhoronl in individuaIs and nol
inposod fron oulsido.
MC1lVA1lCN 1HLCkY
Approachos lo nolivalion aro undorpinnod by nolivalion lhoory. Tho nosl infIuon-
liaI lhoorios aro cIassifiod as foIIovs:
lnsirumcnicliiq i|ccrq, vhich slalos lhal rovards or punishnonls (carrols or slicIs)
sorvo as lho noans of onsuring lhal poopIo bohavo or acl in dosirod vays.
Ccnicni i|ccrq, vhich focusos on lho conlonl of nolivalion. Il slalos lhal noliva-
lion is ossonliaIIy aboul laIing aclion lo salisfy noods, and idonlifios lho nain
noods lhal infIuonco bohaviour. Noods lhoory vas originalod by MasIov (1954),
and in lhoir lvo-faclor nodoI, Horzborg ci cl (1957) Iislod noods vhich lhoy
lornod ´salisfiors'.
Prcccss i|ccrq, vhich focusos on lho psychoIogicaI procossos vhich affocl noliva-
lion, by roforonco lo oxpoclalions (Vroon, 1964), goaIs (Lalhan and LocIo, 1979)
and porcoplions of oquily (Adans, 1965).
Thoso aro sunnarizod in TabIo 18.1 on pago 256.
lNS1kLMLN1ALl1Y 1HLCkY
ÍnslrunonlaIily' is lho boIiof lhal if vo do ono lhing il viII Ioad lo anolhor. In ils
crudosl forn, inslrunonlaIily lhoory slalos lhal poopIo onIy vorI for nonoy.
Tho lhoory onorgod in lho socond haIf of lho ninoloonlh conlury vilh ils onphasis
on lho nood lo ralionaIizo vorI and on ocononic oulconos. Il assunos lhal a porson
viII bo nolivalod lo vorI if rovards and ponaIlios aro liod diroclIy lo his or
hor porfornanco, lhus lho avards aro conlingonl upon offoclivo porfornanco.
InslrunonlaIily lhoory has ils rools in TayIorisn, io lho scionlific nanagononl
nolhods of F W TayIor (1911), vho vrolo: Íl is inpossibIo, lhrough any Iong poriod
of lino, lo gol vorInon lo vorI nuch hardor lhan lho avorago non around lhon
unIoss lhoy aro assurod a Iargo and pornanonl incroaso in lhoir pay.'
This lhoory is basod on lho principIo of roinforcononl as infIuoncod by SIinnor's
(1974) concopl of condilioning ÷ lho lhoory lhal poopIo can bo ćondilionod' lo acl in
corlain vays if lhoy aro rovardod for bohaving as roquirod. Il is aIso caIIod lho Iav of
offocl. Molivalion using lhis approach has boon, and sliII is, vidoIy adoplod and can
bo succossfuI in sono circunslancos. Bul il is basod oxcIusivoIy on a syslon of
oxlornaI conlroIs and faiIs lo rocognizo a nunbor of olhor hunan noods. Il aIso faiIs lo
approcialo lho facl lhal lho fornaI conlroI syslon can bo soriousIy affoclod by lho
infornaI roIalionship oxisling bolvoon vorIors.
CCN1LN1 tNLLDS) 1HLCkY
Tho basis of lhis lhoory is lho boIiof lhal lho conlonl of nolivalion consisls of noods.
An unsalisfiod nood croalos lonsion and a slalo of disoquiIibriun. To rosloro lho
baIanco, a goaI lhal viII salisfy lho nood is idonlifiod, and a bohaviour palhvay lhal
viII Ioad lo lho achiovononl of lho goaI is soIoclod. AII bohaviour is lhoroforo noli-
valod by unsalisfiod noods.
Nol aII noods aro oquaIIy inporlanl for a porson al any ono lino ÷ sono nay
provido a nuch noro povorfuI drivo lovards a goaI lhan olhors, doponding on lho
individuaI's bacIground and prosonl silualion. ConpIoxily is furlhor incroasod
bocauso lhoro is no sinpIo roIalionship bolvoon noods and goaIs. Tho sano nood can
bo salisfiod by a nunbor of difforonl goaIs and lho slrongor lho nood and lho Iongor
ils duralion, lho broador lho rango of possibIo goaIs. Al lho sano lino, ono goaI nay
salisfy a nunbor of noods ÷ a nov car providos lransporl as voII as an opporlunily lo
inpross lho noighbours.
Noods lhoory vas dovoIopod originaIIy by MasIov (1954), vho posluIalod lho
concopl of a hiorarchy of noods vhich ho boIiovod voro fundanonlaI lo lho porson-
aIily. Horzborg   (1957) lvo-faclor nodoI (soo pago 262) cannol slriclIy bo cIassi-
fiod as noods lhoory bul ho did idonlify a nunbor of fundanonlaI noods.
Motìvutìon 255
Ca|cgor, T,pc Thcorí·|¹·) Summar, of |hcor, ímpííca|íon·
lnstrumontuíìty 1uyíorìsm 1uyíor ll vo do ono thìng ìt ßusìs ol crudo uttompts
íouds to unothor. loopío to motìvuto poopío by
vìíí bo motìvutod to ìncontìvos. Clton usod
vork ìl rovurds und us tho ìmpíìod rutìonuío
punìshmonts uro lor porlormunco-
dìroctíy roíutod to roíutod puy uíthough
thoìr porlormunco thìs ìs soídom un
olloctìvo motìvutor
Contont Hìorurchy Musíov A hìorurchy ol lìvo locusos uttontìon
tnoods) ol noods noods oxìst: on tho vurìous noods
thoory physìoíogìcuí, thut motìvuto poopío
suloty, socìuí, und tho notìon thut
ostoom, soíl-luílìímont. u sutìslìod nood ìs no
Noods ut u hìghor íongor u motìvutor.
íovoí oníy omorgo 1ho concopt ol u
vhon u íovor nood hìorurchy hus no
ìs sutìslìod pructìcuí sìgnìlìcunco
1vo-luctor Sutìslìors/ Horzborg 1vo groups ol luctors ldontìlìos u numbor ol
modoí dìssutìslìors ulloct ¡ob sutìsluctìon: lundumontuí noods,
tl) thoso ìntrìnsìc to ìo uchìovomont,
tho ¡ob tìntrìnsìc rocognìtìon,
motìvutors or udvuncomont,
sutìslìors) such us uutonomy und tho
uchìovomont, vork ìtsoíl. Strongíy
rocognìtìon, tho vork ìnlíuoncos upprouchos
ìtsoíl, rosponsìbìíìty to ¡ob dosìgn t¡ob
und grovth, t2) thoso onrìchmont). Drov
oxtrìnsìc to tho ¡ob uttontìon to tho
toxtrìnsìc motìvutors or concopt ol ìntrìnsìc
hygìono luctors) such us und oxtrìnsìc motìvutìon
puy und vorkìng und tho luct thut
condìtìons ìntrìnsìc motìvutìon
muìníy dorìvod lrom tho
vork ìtsoíl vìíí huvo u
íongor-íustìng olloct.
1horoloro undorpìns
tho proposìtìon thut
rovurd systoms shouíd
provìdo lor both
lìnuncìuí und non-
lìnuncìuí rovurds
TabIc 18.1 Sunnary of nolivalion lhoorios

In addilion, AIdorfor (1972) dovoIopod his ERG lhoory, vhich rofors lo lho nood for
oxislonco, roIalodnoss and grovlh. MasIov's lhoory has boon nosl infIuonliaI.
\a·íov'· hícrarch, of nccd·
Tho nosl fanous cIassificalion of noods is lho ono fornuIalod by MasIov (1954). Ho
suggoslod lhal lhoro aro fivo na¡or nood calogorios vhich appIy lo poopIo in gonoraI,
slarling fron lho fundanonlaI physioIogicaI noods and Ioading lhrough a hiorarchy
of safoly, sociaI and osloon noods lo lho nood for soIf-fuIfiInonl, lho highosl nood of
aII. MasIov´s hiorarchy is as foIIovs:
1. P|qsiclcgiccl ÷ lho nood for oxygon, food, valor and sox.
Motìvutìon 257
TabIc 18.1 ccniinuc!
lrocoss/ Lxpoctuncy Vroom, Motìvutìon und 1ho koy thoory
cognìtìvo thoory lortor und porlormunco uro ìnlormìng upprouchos
thoory Luvíor ìnlíuoncod by: tl) tho to rovurds, ìo thut
porcoìvod íìnk thoro must bo u íìnk
botvoon ollort und botvoon ollort und
porlormunco, t2) tho rovurd tíìno ol sìght),
porcoìvod íìnk tho rovurd shouíd bo
botvoon porlormunco uchìovubío und
und outcomos, und shouíd bo
t3) tho sìgnìlìcunco vorthvhìío
tvuíonco) ol tho
outcomo to tho porson.
Lllort tmotìvutìon)
doponds on tho
íìkoíìhood thut rovurds
vìíí loííov ollort und
thut tho rovurd ìs
vorthvhìío
Couí Luthum Motìvutìon und lrovìdos tho rutìonuío
thoory und Locko porlormunco vìíí lor porlormunco
ìmprovo ìl poopío huvo munugomont
dìllìcuít but ugrood gouís procossos, gouí
und rocoìvo loodbuck sottìng und loodbuck
Lquìty Adums loopío uro bottor Nood to dovoíop
thoory motìvutod ìl troutod oquìtubío rovurd und
oquìtubíy ompíoymont pructìcos
2. Scjciq ÷ lho nood for proloclion againsl dangor and lho doprivalion of physioIog-
icaI noods.
3. Sccicl ÷ lho nood for Iovo, affoclion and accoplanco as boIonging lo a group.
4. |siccm ÷ lho nood lo havo a slabIo, firnIy basod, high ovaIualion of onosoIf (soIf-
osloon) and lo havo lho rospocl of olhors (prosligo). Thoso noods nay bo cIassi-
fiod inlo lvo subsidiary sols: firsl, lho dosiro for achiovononl, for adoquacy, for
confidonco in lho faco of lho vorId, and for indopondonco and froodon, and,
socond, lho dosiro for ropulalion or slalus dofinod as rospocl or osloon fron olhor
poopIo, and nanifoslod by rocognilion, allonlion, inporlanco, or approcialion.
5. Sclj-juljilmcni (sclj-cciuclizciicn) ÷ lho nood lo dovoIop polonliaIilios and sIiIIs, lo
bocono vhal ono boIiovos ono is capabIo of boconing.
MasIov's lhoory of nolivalion slalos lhal vhon a Iovor nood is salisfiod, lho noxl
highosl boconos doninanl and lho individuaI's allonlion is lurnod lo salisfying
lhis highor nood. Tho nood for soIf-fuIfiInonl, hovovor, can novor bo salisfiod. Ho
said lhal ńan is a vanling aninaI', onIy an unsalisfiod nood can nolivalo bohaviour
and lho doninanl nood is lho prino nolivalor of bohaviour. IsychoIogicaI dovoIop-
nonl laIos pIaco as poopIo novo up lho hiorarchy of noods, bul lhis is nol nocossariIy
a slraighlforvard progrossion. Tho Iovor noods sliII oxisl, ovon if lonporariIy
dornanl as nolivalors, and individuaIs conslanlIy rolurn lo proviousIy salisfiod
noods.
Ono of lho inpIicalions of MasIov's lhoory is lhal lho highor-ordor noods for
osloon and soIf-fuIfiInonl provido lho groalosl inpolus lo nolivalion ÷ lhoy grov in
slronglh vhon lhoy aro salisfiod, vhiIo lho Iovor noods docIino in slronglh on salis-
faclion. Bul lho ¡obs poopIo do viII nol nocossariIy salisfy lhoir noods, ospociaIIy
vhon lhoy aro roulino or dosIiIIod.
MasIov's noods hiorarchy has an inluilivo appoaI and has boon vory infIuonliaI.
Bul il has nol boon vorifiod by onpiricaI rosoarch and il has boon crilicizod for ils
apparonl rigidily ÷ difforonl poopIo nay havo difforonl priorilios and il is difficuIl lo
accopl lhal poopIo's noods progross sloadiIy up lho hiorarchy. In facl, MasIov hinsoIf
oxprossod doubls aboul lho vaIidily of a slriclIy ordorod hiorarchy.
lkCCLSS 1HLCkY
In procoss lhoory, lho onphasis is on lho psychoIogicaI procossos or forcos lhal affocl
nolivalion, as voII as on basic noods. Il is aIso Inovn as cognilivo lhoory bocauso il is
concornod vilh poopIo's porcoplions of lhoir vorIing onvironnonl and lho vays in
vhich lhoy inlorprol and undorsland il. According lo Guosl (1992a), procoss lhoory
providos a nuch noro roIovanl approach lo nolivalion lhan lho lhoorios of MasIov
and Horzborg, vhich, ho suggosls, havo boon shovn by oxlonsivo rosoarch lo bo
vrong.
Irocoss or cognilivo lhoory can corlainIy bo noro usofuI lo nanagors lhan noods
lhoory bocauso il providos noro roaIislic guidanco on nolivalion lochniquos. Tho
procossos aro:
oxpoclalions (oxpoclancy lhoory),
goaI achiovononl (goaI lhoory),
fooIings aboul oquily (oquily lhoory).
Lxpcc|anc, |hcor,
Tho concopl of oxpoclancy vas originaIIy conlainod in lho vaIoncy÷inslrunon-
laIily÷oxpoclancy (VIE) lhoory vhich vas fornuIalod by Vroon (1964). VaIoncy
slands for vaIuo, inslrunonlaIily is lho boIiof lhal if vo do ono lhing il viII Ioad lo
anolhor, and oxpoclancy is lho probabiIily lhal aclion or offorl viII Ioad lo an oul-
cono. This concopl of oxpoclancy vas dofinod in noro dolaiI by Vroon as foIIovs:
\horo un ìndìvìduuí choosos botvoon uítornutìvos vhìch ìnvoívo uncortuìn outcomos, ìt
sooms cíour thut hìs bohuvìour ìs ulloctod not oníy by hìs proloroncos umong thoso
outcomos but uíso by tho dogroo to vhìch ho boíìovos thoso outcomos to bo possìbío. An
oxpoctuncy ìs dolìnod us u momontury boíìol concornìng tho íìkoíìhood thut u purtìcuíur
uct vìíí bo loííovod by u purtìcuíur outcomo. Lxpoctuncìos muy bo doscrìbod ìn torms ol
thoìr strongth. Muxìmuí strongth ìs ìndìcutod by sub¡octìvo cortuìnty thut tho uct vìíí bo
loííovod by tho outcomo, vhìío mìnìmuí tor zoro) strongth ìs ìndìcutod by sub¡octìvo
cortuìnty thut tho uct vìíí not bo loííovod by tho outcomo.
Tho slronglh of oxpoclalions nay bo basod on pasl oxporioncos (roinforcononl), bul
individuaIs aro froquonlIy prosonlod vilh nov silualions ÷ a chango in ¡ob, paynonl
syslon, or vorIing condilions inposod by nanagononl ÷ vhoro pasl oxporionco is
nol an adoqualo guido lo lho inpIicalions of lho chango. In lhoso circunslancos, noli-
valion nay bo roducod.
Molivalion is onIy IiIoIy vhon a cIoarIy porcoivod and usabIo roIalionship oxisls
bolvoon porfornanco and oulcono, and lho oulcono is soon as a noans of salisfying
noods. This oxpIains vhy oxlrinsic financiaI nolivalion ÷ for oxanpIo, an inconlivo or
bonus schono ÷ vorIs onIy if lho IinI bolvoon offorl and rovard is cIoar (in lho
vords of LavIor (1990) lhoro is a Íino of sighl') and lho vaIuo of lho rovard is vorlh
lho offorl. Il aIso oxpIains vhy inlrinsic nolivalion arising fron lho vorI ilsoIf can bo
Motìvutìon 259
noro povorfuI lhan oxlrinsic nolivalion. Inlrinsic nolivalion oulconos aro noro
undor lho conlroI of individuaIs, vho can pIaco groalor roIianco on lhoir pasl oxpori-
oncos lo indicalo lho oxlonl lo vhich posilivo and advanlagoous rosuIls aro IiIoIy lo
bo oblainod by lhoir bohaviour.
This lhoory vas dovoIopod by Iorlor and LavIor (1968) inlo a nodoI, iIIuslralod in
Figuro 18.2, vhich foIIovs Vroon's idoas by suggosling lhal lhoro aro lvo faclors
dolornining lho offorl poopIo pul inlo lhoir ¡obs:
1. lho vaIuo of lho rovards lo individuaIs in so far as lhoy salisfy lhoir noods for
socurily, sociaI osloon, aulonony, and soIf-acluaIizalion,
2. lho probabiIily lhal rovards dopond on offorl, as porcoivod by individuaIs ÷ in
olhor vords, lhoir oxpoclalions aboul lho roIalionships bolvoon offorl and
rovard.
Thus, lho groalor lho vaIuo of a sol of avards and lho highor lho probabiIily lhal
rocoiving oach of lhoso rovards doponds upon offorl, lho groalor lho offorl lhal viII bo
pul forlh in a givon silualion.
Bul, as Iorlor and LavIor onphasizo, noro offorl is nol onough. Il has lo bo offoc-
livo offorl if il is lo produco lho dosirod porfornanco. Tho lvo variabIos addilionaI lo
offorl vhich affocl lasI achiovononl aro:
c|iliiq ÷ individuaI characlorislics such as inloIIigonco, nanuaI sIiIIs, Inov-hov,
rclc pcrccpiicns ÷ vhal lho individuaI vanls lo do or lhinIs ho or sho is roquirod lo
do. Thoso aro good fron lho viovpoinl of lho organizalion if lhoy corrospond
vilh vhal il lhinIs lho individuaI oughl lo bo doing. Thoy aro poor if lho viovs of
lho individuaI and lho organizalion do nol coincido.
Value of rewards Abilities
Effort Performance
Probability that
reward depends
upon effort
Role expectations
FIgurc 18.2 Molivalion nodoI (Iorlor and LavIor, 1968)
Coaí |hcor,
GoaI lhoory as dovoIopod by Lalhan and LocIo (1979) slalos lhal nolivalion
and porfornanco aro highor vhon individuaIs aro sol spocific goaIs, vhon goaIs
aro difficuIl bul accoplod, and vhon lhoro is a foodbacI on porfornanco. Iarlicipalion
in goaI solling is inporlanl as a noans of golling agroononl lo lho solling of
highor goaIs. DifficuIl goaIs nusl bo agrood and lhoir achiovononl roinforcod by
guidanco and advico. FinaIIy, foodbacI is vilaI in nainlaining nolivalion, parlicuIarIy
lovards lho achiovononl of ovon highor goaIs.
Eroz and Zidon (1984) onphasizod lho nood for accoplanco of and connilnonl lo
goaIs. Thoy found lhal, as Iong as lhoy aro agrood, donanding goaIs Ioad lo bollor
porfornanco lhan oasy onos. Eroz (1977) aIso onphasizod lho inporlanco of food-
bacI. As Roborlson   (1992) poinl oul:
Couís ìnlorm ìndìvìduuís to uchìovo purtìcuíur íovoís ol porlormunco, ìn ordor lor thom
to dìroct und ovuíuuto thoìr uctìons, vhìío porlormunco loodbuck uííovs tho ìndìvìduuí
to truck hov voíí ho or sho hus boon doìng ìn roíutìon to tho gouí, so thut, ìl nocossury,
ud¡ustmonts ìn ollort, dìroctìon or possìbíy tusk strutogìos cun bo mudo.
GoaI lhoory is in Iino vilh lho 1960s concopl of nanagononl by ob¡oclivos. Tho Iallor
approach, hovovor, oflon faiIod bocauso il vas lacIIod buroaucralicaIIy vilhoul
gaining lho roaI supporl of lhoso invoIvod and, inporlanlIy, vilhoul onsuring lhal
nanagors voro avaro of lho significanco of lho procossos of agroononl, roinforcononl
and foodbacI, and voro sIiIIod in praclising lhon.
GoaI lhoory, hovovor, pIays a Ioy parl in lho porfornanco nanagononl procoss
vhich vas ovoIvod fron lho IargoIy discrodilod nanagononl-by-ob¡oclivos
approach. Iorfornanco nanagononl is doaIl vilh in Iarl VII.
Lquí|, |hcor,
Equily lhoory is concornod vilh lho porcoplions poopIo havo aboul hov lhoy aro
boing lroalod conparod vilh olhors. To bo doaIl vilh oquilabIy is lo bo lroalod fairIy
in conparison vilh anolhor group of poopIo (a roforonco group) or a roIovanl olhor
porson. Equily invoIvos fooIings and porcoplions and is aIvays a conparalivo
procoss. Il is nol synonynous vilh oquaIily, vhich noans lroaling ovoryono lho sano,
sinco lhis vouId bo inoquilabIo if lhoy dosorvo lo bo lroalod difforonlIy.
Equily lhoory slalos, in offocl, lhal poopIo viII bo bollor nolivalod if lhoy aro
lroalod oquilabIy and donolivalod if lhoy aro lroalod inoquilabIy. Il oxpIains onIy ono
aspocl of lho procoss of nolivalion and ¡ob salisfaclion, aIlhough il nay bo significanl
in lorns of noraIo.
Motìvutìon 26l
As suggoslod by Adans (1965), lhoro aro lvo forns of oquily: dislribulivo oquily,
vhich is concornod vilh lho fairnoss vilh vhich poopIo fooI lhoy aro rovardod in
accordanco vilh lhoir conlribulion and in conparison vilh olhors, and procoduraI
oquily, or procoduraI ¡uslico, vhich is concornod vilh lho porcoplions onpIoyoos
havo aboul lho fairnoss vilh vhich procoduros in such aroas as porfornanco
appraisaI, pronolion and discipIino aro boing oporalod.
InlorporsonaI faclors aro cIosoIy IinIod lo fooIings aboul procoduraI fairnoss. Fivo
faclors lhal conlribulo lo porcoplions of procoduraI fairnoss havo boon idonlifiod by
TyIor and Bios (1990). Thoso aro:
1. adoqualo considoralions of an onpIoyoo's viovpoinl,
2. supprossion of porsonaI bias lovards lho onpIoyoo,
3. appIying criloria consislonlIy across onpIoyoos,
4. providing oarIy foodbacI lo onpIoyoos concorning lho oulcono of docisions,
5. providing onpIoyoos vilh an adoqualo oxpIanalion of lho docision nado.
HLkZßLkC'S 1\C-lAC1Ck MCDLL
Tho lvo-faclor nodoI of salisfiors and dissalisfiors vas dovoIopod by Horzborg  
(1957) foIIoving an invosligalion inlo lho sourcos of ¡ob salisfaclion and dissalisfac-
lion of accounlanls and onginoors. Il vas assunod lhal poopIo havo lho capacily lo
roporl accuraloIy lho condilions lhal nado lhon salisfiod and dissalisfiod vilh lhoir
¡obs. AccordingIy, lho sub¡ocls voro asIod lo loII lhoir inlorviovors aboul lho linos
during vhich lhoy foIl oxcoplionaIIy good and oxcoplionaIIy bad aboul lhoir ¡obs and
hov Iong lhoir fooIings porsislod. Il vas found lhal lho accounls of ´good' poriods
nosl froquonlIy concornod lho conlonl of lho ¡ob, parlicuIarIy achiovononl, rocogni-
lion, advancononl, aulonony, rosponsibiIily, and lho vorI ilsoIf. On lho olhor hand,
accounls of ´bad' poriods nosl froquonlIy concornod lho conloxl of lho ¡ob. Conpany
poIicy and adninislralion, suporvision, saIary and vorIing condilions noro
froquonlIy appoarod in lhoso accounls lhan in lhoso loId aboul ´good' poriods. Tho
nain inpIicalions of lhis rosoarch, according lo Horzborg, aro lhal:
1ho vunts ol ompíoyoos dìvìdo ìnto tvo groups. Cno group rovoívos uround tho nood to
dovoíop ìn ono's occuputìon us u sourco ol porsonuí grovth. 1ho socond group oporutos
us un ossontìuí buso to tho lìrst und ìs ussocìutod vìth luìr troutmont ìn componsutìon,
suporvìsìon, vorkìng condìtìons und udmìnìstrutìvo pructìcos. 1ho luílìímont ol tho
noods ol tho socond group doos not motìvuto tho ìndìvìduuí to hìgh íovoís ol ¡ob sutìs-
luctìon und to oxtru porlormunco on tho ¡ob. Aíí vo cun oxpoct lrom sutìslyìng thìs
socond group ol noods ìs tho provontìon ol dìssutìsluctìon und poor ¡ob porlormunco.
Motìvutìon 263
Thoso groups forn lho lvo faclors in Horzborg's nodoI: ono consisls of lho salisfiors
or nolivalors, bocauso lhoy aro soon lo bo offoclivo in nolivaling lho individuaI lo
suporior porfornanco and offorl. Tho olhor consisls of lho dissalisfiors, vhich osson-
liaIIy doscribo lho onvironnonl and sorvo prinariIy lo provonl ¡ob dissalisfaclion,
vhiIo having IillIo offocl on posilivo ¡ob alliludos. Tho Iallor voro nanod lho hygiono
faclors in lho nodicaI uso of lho lorn, noaning provonlivo and onvironnonlaI.
Rc·crva|íon· abou| Hcr2bcrg'· |hcor,
Horzborg's lvo-faclor nodoI has boon allacIod. Tho rosoarch nolhod has boon crili-
cizod bocauso no allonpl vas nado lo noasuro lho roIalionship bolvoon salisfaclion
and porfornanco. Il has boon suggoslod lhal lho lvo-faclor naluro of lho lhoory is an
inovilabIo rosuIl of lho quoslioning nolhod usod by lho inlorviovors. Il has aIso boon
suggoslod lhal vido and unvarranlod inforoncos havo boon dravn fron snaII and
spociaIizod sanpIos and lhal lhoro is no ovidonco lo suggosl lhal lho salisfiors do
inprovo produclivily.
In spilo of lhoso crilicisns (or porhaps bocauso of lhon, as lhoy aro aII fron acado-
nics), lho Horzborg lhoory conlinuos lo lhrivo, parlIy bocauso for lho Iaynan il is
oasy lo undorsland and soons lo bo basod on ´roaI-Iifo' ralhor lhan acadonic abslrac-
lion, and parlIy bocauso il fils in voII vilh lho highIy rospoclod idoas of MasIov
(1954) and McGrogor (1960) in ils onphasis on lho posilivo vaIuo of lho inlrinsic noli-
valing faclors. Il is aIso in accord vilh a fundanonlaI boIiof in lho dignily of Iabour
and lho Iroloslanl olhic ÷ lhal vorI is good in ilsoIf. As a rosuIl, Horzborg had
innonso infIuonco on lho ¡ob onrichnonl novononl, vhich soughl lo dosign ¡obs in
a vay lhal vouId naxinizo lho opporlunilios lo oblain inlrinsic salisfaclion fron
vorI and lhus inprovo lho quaIily of vorIing Iifo. His onphasis on lho dislinclion
bolvoon inlrinsic and oxlrinsic nolivalion is aIso inporlanl.
1HL kLLA1lCNSHll ßL1\LLN MC1lVA1lCN, lCß
SA1lSlAC1lCN AND MCNLY
Tho basic roquirononls for ¡ob salisfaclion nay incIudo conparalivoIy highor pay,
an oquilabIo paynonl syslon, roaI opporlunilios for pronolion, considoralo and
parlicipalivo nanagononl, a roasonabIo dogroo of sociaI inloraclion al vorI, inlor-
osling and variod lasIs and a high dogroo of aulonony: conlroI ovor vorI paco
and vorI nolhods. Tho dogroo of salisfaclion oblainod by individuaIs, hovovor,
doponds IargoIy upon lhoir ovn noods and oxpoclalions, and lho vorIing onviron-
nonl.
lCß SA1lSlAC1lCN
Tho lorn ´¡ob salisfaclion' rofors lo lho alliludos and fooIings poopIo havo aboul lhoir
vorI. Iosilivo and favourabIo alliludos lovards lho ¡ob indicalo ¡ob salisfaclion.
Nogalivo and unfavourabIo alliludos lovards lho ¡ob indicalo ¡ob dissalisfaclion.
MoraIo is oflon dofinod as boing oquivaIonl lo ¡ob salisfaclion. Thus Guion (1958)
dofinos noraIo as ´lho oxlonl lo vhich an individuaI's noods aro salisfiod and lho
oxlonl lo vhich lho individuaI porcoivos lhal salisfaclion as slonning fron his ()
lolaI vorI silualion'. Olhor dofinilions slross lho group aspocls of noraIo. GiInor
(1961) suggosls lhal noraIo ís a fooIing of boing accoplod by and boIonging lo a
group of onpIoyoos lhrough adhoronco lo connon goaIs'. Ho dislinguishos bolvoon
noraIo as a group variabIo, roIalod lo lho dogroo lo vhich group nonbors fooI
allraclod lo lhoir group and dosiro lo ronain a nonbor of il, and ¡ob alliludo as an
individuaI variabIo roIalod lo lho fooIings onpIoyoos havo aboul lhoir ¡ob.
fac|or· affcc|íng ¡ob ·a|í·fac|íon
Tho IovoI of ¡ob salisfaclion is affoclod by inlrinsic and oxlrinsic nolivaling faclors,
lho quaIily of suporvision, sociaI roIalionships vilh lho vorI group and lho dogroo lo
vhich individuaIs succood or faiI in lhoir vorI. IurcoII   (2003) boIiovo lhal discro-
lionary bohaviour vhich hoIps lho firn lo bo succossfuI is nosl IiIoIy lo happon
vhon onpIoyoos aro voII nolivalod and fooI connillod lo lho organizalion and
vhon lho ¡ob givos lhon high IovoIs of salisfaclion. Thoir rosoarch found lhal lho Ioy
faclors affocling ¡ob salisfaclion voro caroor opporlunilios, ¡ob infIuonco, loanvorI
and ¡ob chaIIongo.
Iob ·a|í·fac|íon and pcrformancc
Il is a connonIy hoId and a sooningIy nol unroasonabIo boIiof lhal an incroaso in ¡ob
salisfaclion viII rosuIl in inprovod porfornanco. Bul rosoarch has nol oslabIishod any
slrongIy posilivo connoclion bolvoon salisfaclion and porfornanco. A roviov of lho
oxlonsivo Iiloraluro on lhis sub¡ocl by BrayfioId and CrocIoll (1955) concIudod lhal
lhoro vas IillIo ovidonco of any sinpIo or approciabIo roIalionship bolvoon onpIoyoo
alliludos and lhoir porfornanco. An updalod roviov of lhoir anaIysis by Vroon (1964)
covorod 20 sludios, in oach of vhich ono or noro noasuros of ¡ob salisfaclion or
onpIoyoo alliludos vas corroIalod vilh ono or noro criloria of porfornanco. Tho
nodian corroIalion of aII lhoso sludios vas 0.14, vhich is nol high onough lo suggosl
a narIod roIalionship bolvoon salisfaclion and porfornanco. BrayfioId and CrocIoll
concIudod lhal:
lroductìvìty ìs soídom u gouí ìn ìtsoíl but u mouns to gouí uttuìnmont. 1horoloro vo
mìght oxpoct hìgh sutìsluctìon und hìgh productìvìty to occur togothor vhon productìvìty
ìs porcoìvod us u puth to cortuìn ìmportunt gouís und vhon thoso gouís uro uchìovod.
Lndor such condìtìons, sutìsluctìon und productìvìty mìght bo unroíutod or ovon nogu-
tìvoíy roíutod.
Il can bo arguod lhal il is nol ¡ob salisfaclion lhal producos high porfornanco bul high
porfornanco lhal producos ¡ob salisfaclion, and lhal a salisfiod vorIor is nol nocos-
sariIy a produclivo vorIor and a high producor is nol nocossariIy a salisfiod vorIor.
IoopIo aro nolivalod lo achiovo corlain goaIs and viII bo salisfiod if lhoy achiovo
lhoso goaIs lhrough inprovod porfornanco. Thoy nay bo ovon noro salisfiod if lhoy
aro lhon rovardod by oxlrinsic rocognilion or an inlrinsic sonso of achiovononl. This
suggosls lhal porfornanco inprovononls can bo achiovod by giving poopIo lho
opporlunily lo porforn, onsuring lhal lhoy havo lho InovIodgo and sIiII roquirod lo
porforn, and rovarding lhon by financiaI or non-financiaI noans vhon lhoy do
porforn. Il can aIso bo arguod lhal sono poopIo nay bo conpIaconlIy salisfiod vilh
lhoir ¡ob and viII nol bo inspirod lo vorI hardor or bollor. Thoy nay find olhor vays
lo salisfy lhoir noods.
\ca·uríng ¡ob ·a|í·fac|íon
Tho IovoI of ¡ob salisfaclion can bo noasurod by lho uso of alliludo survoys. Thoro aro
four nolhods of conducling lhon:
1. 8q i|c usc cj siruciurc! ¡ucsiicnncircs. Thoso can bo issuod lo aII or a sanpIo of
onpIoyoos. Tho quoslionnairos nay bo slandardizod onos, such as lho BrayfioId
and Rolho Indox of }ob Salisfaclion, or lhoy nay bo dovoIopod spociaIIy for lho
organizalion. Tho advanlago of using slandardizod quoslionnairos is lhal lhoy
havo boon lhoroughIy loslod and in nany casos norns aro avaiIabIo againsl
vhich rosuIls can bo conparod. BonchnarIing can bo carriod oul vilh olhor
organizalions, possibIy using lho sorvicos providod by lho Saraloga Inslilulo.
AddilionaI quoslions ospociaIIy roIovanl lo lho conpany can bo addod lo lho
slandard Iisl. A laiIor-nado quoslionnairo can bo usod lo highIighl parlicuIar
issuos, bul il nay bo advisabIo lo oblain profossionaI hoIp fron an oxporioncod
psychoIogisl, vho can carry oul lho sIiIIod vorI of drafling and piIol-losling lho
quoslionnairo and inlorproling lho rosuIls. Quoslionnairos havo lho advanlago of
boing roIalivoIy choap lo adninislor and anaIyso, ospociaIIy vhon lhoro aro Iargo
nunbors invoIvod. An oxanpIo of a quoslionnairo is givon in lho Appondix.
2. 8q i|c usc cj inicrticus. Thoso nay bo ópon-ondod' or doplh inlorviovs in vhich
lho discussion is aIIovod lo rango quilo frooIy. Or lhoy nay bo soni-slruclurod in
Motìvutìon 265
lhal lhoro is a chocIIisl of poinls lo bo covorod, aIlhough lho ain of lho inlor-
viovor shouId bo lo aIIov discussion lo fIov around lho poinls so lhal lho franI
and opon viovs of lho individuaI aro oblainod. AIlornalivoIy, and noro raroIy,
inlorviovs can bo highIy slruclurod so lhal lhoy bocono no noro lhan lho spoIon
appIicalion of a quoslionnairo. IndividuaI inlorviovs aro lo bo proforrod bocauso
lhoy aro noro IiIoIy lo bo rovoaIing, bul lhoy aro oxponsivo and lino-consuning
and nol so oasy lo anaIyso. Discussions lhrough ´focus groups' (io groups of
onpIoyoos convonod lo focus lhoir allonlion on parlicuIar issuos) aro a quicIor
vay of roaching a Iargo nunbor of poopIo, bul lho rosuIls aro nol so oasy lo quan-
lify and sono poopIo nay havo difficuIly in oxprossing lhoir viovs in pubIic.
3. 8q c ccm|inciicn cj ¡ucsiicnncirc cn! inicrticu. This is lho idoaI approach bocauso il
conbinos lho quanlilalivo dala fron lho quoslionnairo vilh lho quaIilalivo dala
fron lho inlorviovs. Il is aIvays advisabIo lo acconpany quoslionnairos vilh
sono doplh inlorviovs, ovon if lino pornils onIy a Iinilod sanpIo. An aIlorna-
livo approach is lo adninislor lho quoslionnairo lo a group of poopIo and lhon
discuss lho roaclions lo oach quoslion vilh lho group. This onsuros lhal a quanli-
fiod anaIysis is possibIo bul onabIos lho group, or al Ioasl sono nonbors of il, lo
oxpross lhoir fooIings noro fuIIy.
4. 8q i|c usc cj jccus grcups. A focus group is a roprosonlalivo sanpIo of onpIoyoos
vhoso alliludos and opinions aro soughl on issuos concorning lho organizalion
and lhoir vorI. Tho ossonliaI foaluros of a focus group aro lhal il is slruclurod,
infornod, conslruclivo and confidonliaI.
A··c··íng rc·uí|·
Il is an inlorosling facl lhal vhon poopIo aro asIod diroclIy if lhoy aro salisfiod vilh
lhoir ¡ob, nany viII say lhal on lho vhoIo lhoy aro. This can bo rogardIoss of lho vorI
boing dono and in spilo of slrongIy hoId griovancos. Tho possibIo roason for lhis
phonononon is lhal vhiIo nosl poopIo aro viIIing lo adnil lo having griovancos ÷ in
facl, if invilod lo conpIain, lhoy viII conpIain ÷ lhoy nay bo roIuclanl lo adnil, ovon
lo lhonsoIvos, lo boing dissalisfiod vilh a ¡ob lhal lhoy havo no innodialo inlonlion
of Ioaving. Many onpIoyoos havo bocono roconciIod lo lhoir vorI, ovon if lhoy do
nol IiIo sono aspocls of il, and havo no roaI dosiro lo do anylhing oIso. So lhoy aro, in
a sonso, salisfiod onough lo conlinuo, ovon if lhoy havo conpIainls. FinaIIy, nany
poopIo aro salisfiod vilh lhoir ¡ob ovoraII, aIlhough lhoy nay grunbIo aboul sono
aspocls of il.
OvoraII noasuros of salisfaclion do nol, lhoroforo, aIvays rovoaI anylhing roaIIy
inlorosling. Il is noro inporlanl lo IooI al parlicuIar aspocls of salisfaclion or dissal-
isfaclion lo docido vholhor or nol anylhing noods lo bo dono. In lhoso circunslancos,
lho quoslionnairo viII indicalo onIy a Iino lo bo foIIovod up. Il viII nol provido lho
ansvors, honco lho advanlago of individuaI noolings or focus group discussions lo
oxpIoro in doplh any issuo raisod.
MC1lVA1lCN AND MCNLY
Monoy, in lho forn of pay or sono olhor sorl of ronunoralion, is lho nosl obvious
oxlrinsic rovard. Monoy providos lho carrol lhal nosl poopIo vanl.
Doubls havo boon casl by Horzborg   (1957) on lho offoclivonoss of nonoy
bocauso, lhoy cIainod, vhiIo lho IacI of il can causo dissalisfaclion, ils provision doos
nol rosuIl in Iasling salisfaclion. Thoro is sonolhing in lhis, ospociaIIy for poopIo on
fixod saIarios or ralos of pay vho do nol bonofil diroclIy fron an inconlivo schono.
Thoy nay fooI good vhon lhoy gol an incroaso, aparl fron lho oxlra nonoy, il is a
highIy langibIo forn of rocognilion and an offoclivo noans of hoIping poopIo lo fooI
lhal lhoy aro vaIuod. Bul lhis fooIing of ouphoria can rapidIy dio avay. Olhor dissalis-
faclions fron Horzborg's Iisl of hygiono faclors, such as vorIing condilions or lho
quaIily of nanagononl, can Ioon Iargor in sono poopIo's ninds vhon lhoy faiI lo gol
lho salisfaclion lhoy nood fron lho vorI ilsoIf. Hovovor, il nusl bo ro-onphasizod
lhal difforonl poopIo havo difforonl noods and vanls and Horzborg's lvo-faclor
lhoory has nol boon vaIidalod. Sono viII bo nuch noro nolivalod by nonoy lhan
olhors. Whal cannol bo assunod is lhal nonoy nolivalos ovoryono in lho sanovay
and lo lho sano oxlonl. Thus il is naivo lo lhinI lhal lho inlroduclion of a
porfornanco-roIalod pay (IRI) schono viII niracuIousIy lransforn ovoryono ovor-
nighl inlo voII-nolivalod, high-porforning individuaIs.
NovorlhoIoss, nonoy providos lho noans lo achiovo a nunbor of difforonl onds. Il
is a povorfuI forco bocauso il is IinIod diroclIy or indiroclIy lo lho salisfaclion of
nany noods. Il cIoarIy salisfios basic noods for survivaI and socurily, if il is coning in
roguIarIy. Il can aIso salisfy lho nood for soIf-osloon (as nolod abovo, il is a visibIo
narI of approcialion) and slalus ÷ nonoy can sol you in a grado aparl fron your
foIIovs and can buy you lhings lhoy cannol lo buiId up your prosligo. Monoy salisfios
lho Ioss dosirabIo bul sliII provaIonl drivos of acquisilivonoss and cupidily.
Monoy nay in ilsoIf havo no inlrinsic noaning, bul il acquiros significanl noli-
valing povor bocauso il conos lo synboIizo so nany inlangibIo goaIs. Il acls as a
synboI in difforonl vays for difforonl poopIo, and for lho sano porson al difforonl
linos. As nolod by GoIdlhorpo   (1968) fron lhoir rosoarch inlo lho áffIuonl
vorIor', pay is lho doninanl faclor in lho choico of onpIoyor and considoralions of
pay soon nosl povorfuI in binding poopIo lo lhoir prosonl ¡ob.
Do financiaI inconlivos nolivalo poopIo` Tho ansvor is yos, for lhoso poopIo vho
Motìvutìon 267
aro slrongIy nolivalod by nonoy and vhoso oxpoclalions lhal lhoy viII rocoivo a
financiaI rovard aro high. Bul Ioss confidonl onpIoyoos nay nol rospond lo incon-
livos lhal lhoy do nol oxpocl lo achiovo. Il can aIso bo arguod lhal oxlrinsic rovards
nay orodo inlrinsic inlorosl ÷ poopIo vho vorI ¡usl for nonoy couId find lhoir lasIs
Ioss pIoasurabIo and nay nol, lhoroforo, do lhon so voII. Whal vo do Inov is lhal a
nuIlipIicily of faclors aro invoIvod in porfornanco inprovononls and nany of lhoso
faclors aro inlordopondonl.
Monoy can lhoroforo provido posilivo nolivalion in lho righl circunslancos, nol
onIy bocauso poopIo nood and vanl nonoy bul aIso bocauso il sorvos as a highIy
langibIo noans of rocognilion. Il can aIso bo arguod lhal nonoy nay bo an inporlanl
faclor in allracling poopIo lo organizalions and is ono of lho faclors lhal viII infIuonco
lhoir rolonlion. Bul badIy dosignod and nanagod pay syslons can donolivalo.
Anolhor rosoarchor in lhis aroa vas }aquos (1961), vho onphasizod lho nood for such
syslons lo bo porcoivod as boing fair and oquilabIo. In olhor vords, lho rovard
shouId bo cIoarIy roIalod lo offorl or IovoI of rosponsibiIily and poopIo shouId nol
rocoivo Ioss nonoy lhan lhoy dosorvo conparod vilh lhoir foIIov vorIors. }aquos
caIIod lhis lho ´foIl-fair' principIo.
MC1lVA1lCN S1kA1LClLS
Tho faclors lhal affocl nolivalionaI slralogios and lho conlribulion lhal HR can naIo
lo achioving highor IovoIs of nolivalion aro sunnarizod in TabIo 18.2.
Motìvutìon 269
TabIc 18.2 Molivalion slralogios
fac|or· affcc|íng mo|íva|íon ·|ra|cgíc· Thc HR con|ríbu|íon
1ho compíoxìty ol tho procoss ol Avoìd tho trup ol dovoíopìng or supportìng
motìvutìon mouns thut sìmpíìstìc strutogìos thut ollor proscrìptìons lor motìvutìon
upprouchos busod on ìnstrumontuíìty busod on u sìmpíìstìc vìov ol tho procoss or
thoory uro uníìkoíy to bo succossluí luìí to rocognìzo ìndìvìduuí dìlloroncos
loopío uro moro íìkoíy to bo motìvutod Lncourugo tho dovoíopmont ol porlormunco
ìl thoy vork ìn un onvìronmont ìn munugomont procossos vhìch provìdo
vhìch thoy uro vuíuod lor vhut opportunìtìos to ugroo oxpoctutìons und gìvo
thoy uro und vhut thoy do. 1hìs posìtìvo loodbuck on uccompíìshmonts
mouns puyìng uttontìon to tho busìc Dovoíop rovurd systoms vhìch provìdo
nood lor rocognìtìon opportunìtìos lor both lìnuncìuí und non-
lìnuncìuí rovurds to rocognìzo uchìovomonts.
ßour ìn mìnd, hovovor, thut lìnuncìuí rovurds
systoms uro not nocossurìíy upproprìuto und tho
íossons ol oxpoctuncy, gouí und oquìty thoory
nood to bo tukon ìnto uccount ìn dosìgnìng und
oporutìng thom
1ho nood lor vork vhìch provìdos Advìso on procossos lor tho dosìgn ol ¡obs
poopío vìth tho mouns to uchìovo vhìch tuko uccount ol tho luctors ulloctìng tho
thoìr gouís, u rousonubío dogroo ol motìvutìon to vork, provìdìng lor ¡ob onrìchmont
uutonomy, und scopo lor tho uso ol ìn tho shupo ol vurìoty, docìsìon-mukìng
skìíís und compotoncìos shouíd bo rosponsìbìíìty und us much controí us possìbío
rocognìzod ìn curryìng out tho vork
1ho nood lor tho opportunìty to grov lrovìdo lucìíìtìos und opportunìtìos lor íournìng
by dovoíopìng ubìíìtìos und curoors. through such mouns us porsonuí dovoíopmont
píunnìng procossos us voíí us moro lormuí
truìnìng
Dovoíop curoor píunnìng procossos
1ho cuíturuí onvìronmont ol tho Advìso on tho dovoíopmont ol u cuíturo vhìch
orgunìzutìon ìn tho shupo ol ìts vuíuos supports procossos ol vuíuìng und rovurdìng
und norms vìíí ìnlíuonco tho ìmpuct ompíoyoos
ol uny uttompts to motìvuto poopío
by dìroct or ìndìroct mouns
Motìvutìon vìíí bo onhuncod by Dovìso compotoncy lrumovorks vhìch locus
íoudorshìp vhìch sots tho dìroctìon, on íoudorshìp quuíìtìos und tho bohuvìours
oncourugos und stìmuíutos oxpoctod ol munugors und toum íoudors
uchìovomont, und provìdos support Lnsuro thut íoudorshìp potontìuí ìs ìdontìlìod
to ompíoyoos ìn thoìr ollorts to rouch through porlormunco munugomont und
gouís und ìmprovo thoìr porlormunco ussossmont contros
gonoruííy lrovìdo guìdunco und truìnìng to dovoíop
íoudorshìp quuíìtìos
Crgunìzutìonuí commìtmont und
ongugomont
In lhis chaplor lho lopics of organizalionaI connilnonl and ¡ob ongagononl aro
oxaninod. Thoy aro inporlanl bocauso indopondonlIy or in associalion vilh ono
anolhor, lhoy can significanlIy affocl organizalionaI porfornanco. Bul lhoro is sono
confusion aboul lhoir rospoclivo noanings, and lho chaplor slarls by oxanining lhoso.
1HL CCNCLl1S Cl CCMMl1MLN1 AND LNCACLMLN1
Connilnonl and ongagononl aro cIosoIy roIalod concopls. In facl, sono poopIo uso
lho lorns inlorchangoabIy or rofor lo ongagononl as an aIlornalivo, noro up-lo-dalo
and, naybo, a noro sophislicalod lorn for connilnonl. Tho various dofinilions
avaiIabIo of connilnonl and ongagononl do nol hoIp. 1|c Oxjcr! |nglis| Diciicncrq
slalos lhal sonoono is connillod vhon lhoy aro noraIIy dodicalod (lo doclrino or
causo), vhiIo sonoono is ongagod vhon lhoy aro onpIoyod busiIy.
Thc mcaníng of organí2a|íonaí commí|mcn|
As dofinod by Iorlor ci cl (1974), connilnonl rofors lo allachnonl and IoyaIly. Il is
lho roIalivo slronglh of lho individuaI's idonlificalion vilh, and invoIvononl in, a
parlicuIar organizalion. Il consisls of lhroo faclors:

1. A slrong dosiro lo ronain a nonbor of lho organizalion.
2. A slrong boIiof in, and accoplanco of, lho vaIuos and goaIs of lho organizalion.
3. A roadinoss lo oxorl considorabIo offorl on bohaIf of lho organizalion.
An aIlornalivo, aIlhough cIosoIy roIalod, dofinilion of connilnonl onphasizos lho
inporlanco of bohaviour in croaling connilnonl. As SaIanciI (1977) pul il:
Ćonnilnonl is a slalo of boing in vhich an individuaI boconos bound by his (sic)
aclions lo boIiofs lhal suslain his aclivilios and his ovn invoIvononl.' Throo foaluros
of bohaviour aro inporlanl in binding individuaIs lo lhoir acls: lho visibiIily of lho
acls, lho oxlonl lo vhich lho oulconos aro irrovocabIo, and lho dogroo lo vhich lho
porson undorlaIos lho aclion voIunlariIy. Connilnonl, according lo SaIanciI, can bo
incroasod and harnossod ´lo oblain supporl for organizalionaI onds and inlorosls'
lhrough such pIoys as parlicipalion in docisions aboul aclions.
Thc mcaníng of cngagcmcn|
As dofinod by Chiunonlo (2004):
Lngugomont ìs u posìtìvo, tvo-vuy, roíutìonshìp botvoon un ompíoyoo und thoìr orgunì-
zutìon. ßoth purtìos uro uvuro ol thoìr ovn und tho othor's noods, und tho vuy thoy
support ouch othor to luílìí thoso noods. Lngugod ompíoyoos und orgunìzutìons vìíí go
tho oxtru mìío lor ouch othor bocuuso thoy soo tho mutuuí bonolìt ol ìnvostìng ìn thoìr
roíutìonshìp.
Tho RoyaI BanI of ScolIand (2005) dofinos ongagononl as lho slalo of onolionaI and
inloIIocluaI connilnonl lo lho group and Iisls ils conpononls as salisfaclion (hov
nuch I IiIo vorIing horo), connilnonl (hov nuch I vanl lo bo horo) and porfor-
nanco (hov nuch I vanl lo and acluaIIy do in achioving rosuIls).
Tho Hay Group, as roporlod by Thonpson (2002), rofors lo lhoir concopl of
óngagod porfornanco' vhich is áboul undorslanding vhy vorIing for a parlicuIar
organizalion is allraclivo lo difforonl Iinds of individuaIs. And vhich IooIs al lho
hoarls and nind roasons vhy poopIo vorI for you'.
Tho Inslilulo of EnpIoynonl Sludios (Bovan  , 1997) dofinos ongagononl as: Á
posilivo alliludo hoId by lho onpIoyoo lovards lho organizalion and ils vaIuos. An
ongagod onpIoyoo is avaro of businoss conloxl, and vorIs cIosoIy vilh coIIoaguos lo
inprovo porfornanco vilhin lho ¡ob for lho bonofil of lho organizalion.'
Thoso aII ovorIap vilh lho lradilionaI dofinilion of connilnonl as boing concornod
vilh allachnonl lo lho organizalion. Thoro is no roason vhy lhis shouId nol bo lho
caso ÷ lho lvo concopls aro aflor aII cIosoIy connoclod ÷ bul lhoro is sono vaIuo in
dislinguishing bolvoon connilnonl lo lho organizalion and connilnonl lo lho ¡ob,
and lroaling lho fornor as organizalionaI connilnonl and lho Iallor as ¡ob ongago-
nonl.
Many poopIo aro noro connillod lo lhoir vorI lhan lho organizalion lhal providos
lho vorI, for oxanpIo rosoarchors in univorsilios or rosoarch oslabIishnonls. Olhors
laIo a lransionl viov of lhoir organizalion as a slopping slono in lhoir caroor lhal
providos lhon vilh lho sorl of oxporionco lhoy vanl bul lo vhich lhoy fooI no parlic-
uIar IoyaIly. If lho organizalion vanls poopIo in lho Iallor calogorios lo vorI hardor
and bollor, il nay voII vanl lo focus on lho vorI lhoy provido and opporlunilios for
dovoIopnonl lhoy offor and pIaco Ioss onphasis on organizalionaI connilnonl. If
lho organizalion vanls lo conconlralo noro on rolonlion, IoyaIly and poopIo pulling
lhonsoIvos oul for lho organizalion ralhor lhan lhonsoIvos, lhon poIicios lo oncour-
ago connilnonl cono lo lho foro. Bosl of aII, il is rocognizod lhal bolh connilnonl
and ongagononl nood allonlion bul lhal difforonl approachos nay bo nocossary
aIlhough lhoy can bo nuluaIIy supporlivo ÷ incroasod connilnonl lo lho organiza-
lion can produco highor IovoIs of ¡ob ongagononl, noro ¡ob ongagononl can incroaso
connilnonl lo lho organizalion. Tho rosl of lhis chaplor is dovolod lo oxpIoring bolh
concopls.
CkCANlZA1lCNAL CCMMl1MLN1
Tho concopl of organizalionaI connilnonl pIays an inporlanl parl in HRM phiIos-
ophy. As Guosl (1987) has suggoslod, HRM poIicios aro dosignod lo ńaxiniso orga-
nizalionaI inlogralion, onpIoyoo connilnonl, fIoxibiIily and quaIily of vorI'. Tho
noxl fivo soclions of lhis chaplor considor lho noaning and significanco of organiza-
lionaI connilnonl, lho probIons associalod vilh lho concopl, faclors affocling
connilnonl, dovoIoping a connilnonl slralogy, and noasuring connilnonl.
OrganizalionaI connilnonl is lho roIalivo slronglh of lho individuaI's idonlifica-
lion vilh, and invoIvononl in, a parlicuIar organizalion. Il consisls of lhroo faclors:
a slrong dosiro lo ronain a nonbor of lho organizalion,
a slrong boIiof in, and accoplanco of, lho vaIuos and goaIs of lho organizalion,
a roadinoss lo oxorl considorabIo offorl on bohaIf of lho organizalion.
An aIlornalivo, aIlhough cIosoIy roIalod, dofinilion of connilnonl onphasizos lho
inporlanco of bohaviour in croaling connilnonl. As SaIanciI (1977) pul il,
Ćonnilnonl is a slalo of boing in vhich an individuaI boconos bound by his aclions
lo boIiofs lhal suslain his aclivilios and his ovn invoIvononl.' Throo foaluros of
bohaviour aro inporlanl in binding individuaIs lo lhoir acls: lho visibiIily of lho acls,
Crgunìzutìonuí commìtmont und ongugomont 273
lho oxlonl lo vhich lho oulconos aro irrovocabIo, and lho dogroo lo vhich lho porson
undorlaIos lho aclion voIunlariIy. Connilnonl, according lo SaIanciI, can bo
incroasod and harnossod ´lo oblain supporl for organizalionaI onds and inlorosls'
lhrough such pIoys as parlicipalion in docisions aboul aclions.
Thc ·ígnífícancc of organí2a|íonaí commí|mcn|
Thoro havo boon lvo schooIs of lhoughl aboul connilnonl. Ono, lho ´fron conlroI lo
connilnonl' schooI, vas Iod by WaIlon (1985a and b), vho sav connilnonl
slralogy as a noro rovarding approach lo hunan rosourco nanagononl, in conlrasl
lo lho lradilionaI conlroI slralogy. Tho olhor, ´}apanoso/oxcoIIonco' schooI, is ropro-
sonlod by vrilors such as IascaIo and Alhos (1981) and Iolors and Walornan (1982),
vho IooIod al lho }apanoso nodoI and roIalod lho achiovononl of oxcoIIonco lo
golling lho vhoIohoarlod connilnonl of lho vorIforco lo lho organizalion.
From controI to commitmcnt
Tho inporlanco of connilnonl vas highIighlod by WaIlon (1985a and b). His lhono
vas lhal inprovod porfornanco vouId rosuIl if lho organizalion novod avay fron
lho lradilionaI conlroI-orionlod approach lo vorIforco nanagononl, vhich roIios
upon oslabIishing ordor, oxorcising conlroI and áchioving officioncy in lho appIica-
lion of lho vorIforco'. Ho proposod lhal lhis approach shouId bo ropIacod by a
connilnonl slralogy. WorIors rospond bosl ÷ and nosl croalivoIy ÷ nol vhon lhoy
aro lighlIy conlroIIod by nanagononl, pIacod in narrovIy dofinod ¡obs, and lroalod
IiIo an unvoIcono nocossily, bul insload vhon lhoy aro givon broador rosponsibiIi-
lios, oncouragod lo conlribulo and hoIpod lo achiovo salisfaclion in lhoir vorI.
WaIlon (1985b) suggoslod lhal in lho nov connilnonl-basod approach:
lobs uro dosìgnod to bo broudor thun boloro, to combìno píunnìng und ìmpíomontutìon,
und to ìncíudo ollorts to upgrudo oporutìons, not ¡ust to muìntuìn thom. lndìvìduuí
rosponsìbìíìtìos uro oxpoctod to chungo us condìtìons chungo, und toums, not ìndìvìd-
uuís, olton uro tho orgunìzutìonuí unìts uccountubío lor porlormunco. \ìth munugomont
hìorurchìos roíutìvoíy líut und dìlloroncos ìn stutus mìnìmìzod, controí und íutoruí coordì-
nutìon dopond on shurod gouís. And oxportìso ruthor thun lormuí posìtìon dotormìnos
ìnlíuonco.
Iul IiIo lhis, a connilnonl slralogy nay sound idoaIislic bul doos nol appoar lo bo a
crudo allonpl lo nanipuIalo poopIo lo accopl nanagononl's vaIuos and goaIs, as
sono havo suggoslod. In facl, WaIlon doos nol doscribo il as boing inslrunonlaI in lhis
nannor. His proscriplion is for a broad HRM approach lo lho vays in vhich poopIo
aro lroalod, ¡obs aro dosignod and organizalions aro nanagod. Ho boIiovos lhal lho
ain shouId bo lo dovoIop ńuluaIily', a slalo lhal oxisls vhon nanagononl and
onpIoyoos aro inlordopondonl and bolh bonofil fron lhis inlordopondoncy.
Tbc )apancsc/cxccIIcncc scbooI
Allonpls nado lo oxpIain lho socrol of }apanoso businoss succoss in lho 1970s by such
vrilors as Ouchi (1981) and IascaIo and Alhos (1981) Iod lo lho lhoory lhal lho bosl
vay lo nolivalo poopIo is lo gol lhoir fuII connilnonl lo lho vaIuos of lho organiza-
lion by Ioadorship and invoIvononl. This nighl bo caIIod lho ´hoarls and ninds'
approach lo nolivalion, and anong olhor lhings il popuIarizod such dovicos as
quaIily circIos.
Tho balon vas laIon up by Iolors and Walornan (1982) and lhoir inilalors Ialor in
lho 1980s. This approach lo oxcoIIonco vas sunnod up by Iolors and Auslin (1985)
vhon lhoy vrolo, again sonovhal idoaIislicaIIy, ´Trusl poopIo and lroal lhon IiIo
aduIls, onlhuso lhon by IivoIy and inaginalivo Ioadorship, dovoIop and dononslralo
an obsossion for quaIily, naIo lhon fooI lhoy ovn lho businoss, and your vorIforco
viII rospond vilh lolaI connilnonl.'
|robícm· ví|h |hc conccp| of commí|mcn|
A nunbor of connonlalors havo raisod quoslions aboul lho concopl of connilnonl.
Thoso roIalo lo lhroo nain probIon aroas: firsl, ils unilary frano of roforonco, socond,
connilnonl as an inhibilor of fIoxibiIily, and lhird, vholhor high connilnonl doos
in praclico rosuIl in inprovod organizalionaI porfornanco.
Unitary framc of rcfcrcncc
A connonl froquonlIy nado aboul lho concopl of connilnonl is lhal il is loo
sinpIislic in adopling a unilary frano of roforonco, in olhor vords, il assunos unroaI-
islicaIIy lhal an organizalion consisls of poopIo vilh sharod inlorosls. Il has boon
suggoslod by poopIo IiIo Cyorl and March (1963), Manghan (1979) and Minlzborg
(1983a) lhal an organizalion is roaIIy a coaIilion of inlorosl groups, vhoro poIilicaI
procossos aro an inovilabIo parl of ovoryday Iifo. Tho pIuraIislic porspoclivo rocog-
nizos lho Iogilinacy of difforonl inlorosls and vaIuos, and lhoroforo asIs lho quoslion
Ćonnilnonl lo vhal`' Thus, as Coopoy and HarlIoy (1991) pul il, ćonnilnonl is
nol an aII-or-nolhing affair (lhough nany nanagors nighl IiIo il lo bo) bul a quoslion
of nuIlipIo or conpoling connilnonls for lho individuaI'.
Loggo (1989) aIso raisos lhis quoslion in hor discussion of slrong cuIluro as a Ioy
roquirononl of HRM lhrough á sharod sol of nanagoriaIIy sanclionod vaIuos'.
Hovovor, vaIuos concornod vilh porfornanco, quaIily, sorvico, oquaI opporlunily
and innovalion aro nol nocossariIy vrong bocauso lhoy aro nanagoriaI vaIuos. Bul
il is nol unroasonabIo lo boIiovo lhal pursuing a vaIuo such as innovalion couId
vorI againsl lho inlorosls of onpIoyoos by, for oxanpIo, rosuIling in rodundancios.
And il vouId bo quilo roasonabIo for any onpIoyoo, oncouragod lo bohavo in
accordanco vilh a vaIuo supporlod by nanagononl, lo asI ´Whal's in il for no`' Il
can aIso bo arguod lhal lho inposilion of nanagononl's vaIuos on onpIoyoos
vilhoul lhoir having any parl lo pIay in discussing and agrooing lhon is a forn of
coorcion.
Commitmcnt and fIcxibiIity
Il vas poinlod oul by Coopoy and HarlIoy (1991) lhal ´Tho probIon for a unilarisl
nolion of organizalionaI connilnonl is lhal il foslors a confornisl approach
vhich nol onIy faiIs lo rofIocl organizalionaI roaIily, bul can bo narroving and
Iiniling for lho organizalion.' Thoy arguo lhal if onpIoyoos aro oxpoclod and oncour-
agod lo connil lhonsoIvos lighlIy lo a singIo sol of vaIuos and goaIs lhoy viII nol bo
abIo lo copo vilh lho anbiguilios and uncorlainlios lhal aro ondonic in organiza-
lionaI Iifo in linos of chango. Confornily lo ínposod' vaIuos viII inhibil croalivo
probIon soIving, and high connilnonl lo prosonl coursos of aclion viII incroaso
bolh rosislanco lo chango and lho slross lhal invariabIy occurs vhon chango laIos
pIaco.
If connilnonl is roIalod lo lighlIy dofinod pIans lhon lhis viII bocono a roaI
probIon. To avoid il, lho onphasis shouId bo on ovoraII slralogic diroclions. Thoso
vouId bo connunicalod lo onpIoyoos vilh lho proviso lhal changing circunslancos
viII roquiro lhoir anondnonl. In lho noanlino, hovovor, ovoryono can al Ioasl bo
infornod in gonoraI lorns vhoro lho organizalion is hoading and, noro spocificaIIy,
lho parl lhoy aro oxpoclod lo pIay in hoIping lho organizalion lo gol lhoro. And if lhoy
can bo invoIvod in lho docision naIing procossos on nallors lhal affocl lhon (vhich
incIudo nanagononl's vaIuos for porfornanco, quaIily and cuslonor sorvico), so
nuch lho bollor.
VaIuos nood nol nocossariIy bo roslriclivo. Thoy can bo dofinod in vays lhal aIIov
for froodon of choico vilhin broad guidoIinos. In facl, lho vaIuos lhonsoIvos can rofor
lo such procossos as fIoxibiIily, innovalion and rosponsivonoss lo chango. Thus, far
fron inhibiling croalivo probIon soIving, lhoy can oncourago il.
Tbc impact of bigb commitmcnt
A boIiof in lho posilivo vaIuo of connilnonl has boon confidonlIy oxprossod by
WaIlon (1985b): ÚndorIying aII lhoso (hunan rosourco) poIicios is a nanagononl
phiIosophy, oflon onboddod in a pubIishod slalononl, lhal acInovIodgos lho Iogili-
nalo cIains of a conpany's nuIlipIo slaIohoIdors ÷ ovnors, onpIoyoos, cuslonors
and lho pubIic. Al lho conlro of lhis phiIosophy is a boIiof lhal oIiciling onpIoyoo
connilnonl viII Ioad lo onhancod porfornanco. Tho ovidonco shovs lhis boIiof lo bo
voII foundod.' Hovovor, a roviov by Guosl (1991) of lho nainIy Norlh Anorican
Iiloraluro, roinforcod by lho Iinilod UK rosoarch avaiIabIo, Iod hin lo lho concIusion
lhal ´High organizalionaI connilnonl is associalod vilh Iovor Iabour lurnovor and
absonco, bul lhoro is no cIoar IinI lo porfornanco.'
Il is probabIy viso nol lo oxpocl loo nuch fron connilnonl as a noans of naIing
a dirocl and innodialo inpacl on porfornanco. Il is nol lho sano as nolivalion.
Connilnonl is a vidor concopl, and londs lo bo noro slabIo ovor a poriod of lino
and Ioss rosponsivo lo lransilory aspocls of an onpIoyoo's ¡ob, honco lho inporlanco
of lho concopl of ¡ob ongagononl, vhich is innodialo. Il is possibIo lo bo dissalisfiod
vilh a parlicuIar foaluro of a ¡ob vhiIo rolaining a roasonabIy high IovoI of connil-
nonl lo lho organizalion as a vhoIo.
In roIaling connilnonl lo nolivalion il is usofuI lo dislinguish, as do Buchanan
and HuczynsIi (1985), lhroo porspoclivos:
Tho goaIs lovards vhich poopIo ain. Fron lhis porspoclivo, goaIs such as lho
good of lho conpany, or offoclivo porfornanco al vorI, nay provido a dogroo of
nolivalion for sono onpIoyoos, vho couId bo rogardod as connillod in so far as
lhoy fooI lhoy ovn lho goaIs.
Tho procoss by vhich goaIs and ob¡oclivos al vorI aro soIoclod, vhich is quilo
dislincl fron lho vay in vhich connilnonl arisos vilhin individuaIs.
Tho sociaI procoss of nolivaling olhors lo porforn offoclivoIy. Fron lhis viov-
poinl, slralogios ainod al incroasing nolivalion aIso affocl connilnonl. Il nay bo
lruo lo say lhal, vhoro connilnonl is prosonl, nolivalion is IiIoIy lo bo slrong,
parlicuIarIy if a Iong lorn viov is laIon of offoclivo porfornanco.
Il is roasonabIo lo boIiovo lhal slrong connilnonl lo vorI is IiIoIy lo rosuIl in consci-
onlious and soIf-diroclod appIicalion lo do lho ¡ob, roguIar allondanco, noninaI
suporvision and a high IovoI of offorl. Connilnonl lo lho organizalion viII corlainIy
bo roIalod lo lho inlonlion lo slay ÷ in olhor vords, IoyaIly lo lho conpany.
fac|or· affcc|íng commí|mcn|
Kochan and Dyor (1993) havo indicalod lhal lho faclors affocling lho IovoI of connil-
nonl in vhal lhoy caII nuluaI connilnonl firns aro as foIIovs:
Sircicgic lctcl.
÷ supporlivo businoss slralogios,
÷ lop nanagononl vaIuo connilnonl,
÷ offoclivo voico for HR in slralogy naIing and govornanco.
lunciicncl (|umcn rcscurcc pclicq) lctcl.
÷ slaffing basod on onpIoynonl slabiIizalion,
÷ invoslnonl in lraining and dovoIopnonl,
÷ conlingonl conponsalion lhal roinforcos cooporalion, parlicipalion and
conlribulion.
Wcr|plccc lctcl.
÷ soIoclion basod on high slandards'
÷ broad lasI dosign and loanvorI'
÷ onpIoyoo invoIvononl in probIon soIving'
÷ cIinalo of cooporalion and lrusl.
Tho rosoarch carriod oul by IurcoII ci cl (2003) oslabIishod lhal lho Ioy poIicy and
praclico faclors infIuoncing IovoIs of connilnonl voro:
rocoivod lraining Iasl yoar,
aro salisfiod vilh caroor opporlunilios,
aro salisfiod vilh lho porfornanco appraisaI syslon,
lhinI nanagors aro good in poopIo nanagononl (Ioadorship),
find lhoir vorI chaIIonging,
lhinI lhoir forn hoIps lhon achiovo a vorI-Iifo baIanco,
aro salisfiod vilh connunicalion or conpany porfornanco.
Dcvcíopíng a commí|mcn| ·|ra|cg,
A connilnonl slralogy viII bo basod on lho high connilnonl nodoI doscribod in
Chaplor 7. Il viII ain lo dovoIop connilnonl using, as approprialo, approachos such
as lhoso doscribod boIov. Whon fornuIaling lho slralogy, accounl shouId bo laIon of
lho rosorvalions oxprossod oarIior in lhis chaplor, and loo nuch shouId nol bo
oxpoclod fron il. Tho ain viII bo lo incroaso idonlificalion vilh lho organizalion,
dovoIop fooIings of IoyaIly anong ils onpIoyoos, provido a conloxl vilhin vhich
nolivalion and lhoroforo porfornanco viII incroaso, and roduco onpIoyoo lurnovor.
Slops lo croalo connilnonl viII bo concornod vilh bolh slralogic goaIs and vaIuos.
Thoy nay incIudo inilialivos lo incroaso invoIvononl and óvnorship', connunica-
lion, Ioadorship dovoIopnonl, dovoIoping a sonso of oxcilononl in lho ¡ob, and dovoI-
oping various HR poIicy and praclico inilialivos.
DcvcIoping owncrsbip
A sonso of boIonging is onhancod if lhoro is a fooIing of óvnorship' anong
onpIoyoos, nol ¡usl in lho IiloraI sonso of ovning sharos (aIlhough lhis can hoIp) bul
in lho sonso of boIioving lhoy aro gonuinoIy accoplod by nanagononl as Ioy slaIo-
hoIdors in lho organizalion. This concopl of óvnorship' oxlonds lo parlicipaling in
docisions on nov dovoIopnonls and changos in vorIing praclicos lhal affocl lho indi-
viduaIs concornod. Thoy shouId bo invoIvod in naIing lhoso docisions, and fooI lhal
lhoir idoas havo boon Iislonod lo and lhal lhoy havo conlribulod lo lho oulcono.
Communication programmcs
Il nay soon lo bo slriIingIy obvious lhal connilnonl viII onIy bo gainod if poopIo
undorsland vhal lhoy aro oxpoclod lo connil lo, bul nanagononls loo oflon faiI lo
pay sufficionl allonlion lo doIivoring lho nossago in lorns lhal rocognizo lhal lho
frano of roforonco for lhoso vho rocoivo il is IiIoIy lo bo quilo difforonl fron lhoir
ovn. Managononl's oxpoclalions viII nol nocossariIy coincido vilh lhoso of
onpIoyoos. IIuraIisn provaiIs. And in doIivoring lho nossago, lho uso of difforonl
and conpIononlary channoIs of connunicalion such as novsIollors, briofing groups,
vidoos and nolico boards is oflon nogIoclod.
tcadcrsbip dcvcIopmcnt
Connilnonl is onhancod if nanagors can gain lho confidonco and rospocl of lhoir
loans, and dovoIopnonl progrannos lo inprovo lho quaIily of Ioadorship shouId
forn an inporlanl parl of any slralogy for incroasing connilnonl. Managononl
lraining can aIso bo focusod on incroasing lho conpolonco of nanagors in spocific
aroas of lhoir rosponsibiIily for gaining connilnonl, such as porfornanco nanago-
nonl.
lNlLLLNCLS CN CCMMl1MLN1 AND LMlLCYLL
SA1lSlAC1lCN
An IRS survoy (IRS, 2004) oslabIishod lhal lho foIIoving voro lho lop fivo infIuoncos
on onpIoyoo salisfaclion and connilnonl and onpIoyoo salisfaclion:
1. RoIalionship vilh nanagor ÷ 63 por conl.
2. RoIalionship vilh coIIoaguos ÷ 60 por conl.
3. QuaIily of Iino nanagononl ÷ 62 por conl.
4. Rocognilion of conlribulion ÷ 56 por conl.
5. Loadorship: visibiIily and confidonco ÷ 55 por conl.
Tho survoy aIso oblainod oxanpIos fron organizalions of vhal lhoy voro doing lo
incroaso connilnonl:
Bacardi-Marlini ÷ focus groups, loan briofings, consuIlalion vilh union, ¡oinl
consuIlalivo connilloo, alliludo survoys, road shovs.
Evorshods ÷ ´havo your say' connunicalion sossions invoIving aII onpIoyoos,
Ioy businoss discussions.
Lofargo Cononl ÷ ¡oinl parlnorship lraining coursos vilh nanagors and lrado
union roprosonlalivos, roguIar businoss updalos, bonus schono IinIod lo ¡oinlIy
agrood porfornanco indicalors, loan dovoIopnonl vorIshops.
Norlh Horls Dislricl CounciI ÷ inlroduclion of slaff consuIlalion foruns, nov
poIicios for conpIainls rosoIulion and dignily al vorI.
Wosl Bronvich BuiIding Socioly ÷ various focus groups, sociaI cIub, avay-days
by doparlnonl.
YorIshiro Walor ÷ aclivo and conprohonsivo connunicalions, invoIvononl in
businoss pIanning, faco-lo-faco noolings vilh diroclors, consuIlalion on chango,
coIobralion of businoss succoss, rovards and rocognilion.
DcvcIoping Hk practiccs tbat cnbancc organizationaI commitmcnt
Tho poIicios and praclicos lhal nay conlribulo lo lho incroaso of connilnonl aro
lraining, caroor pIanning, porfornanco nanagononl, vorI-Iifo baIanco poIicios and
¡ob dosign.
Tho HR funclion can pIay a na¡or parl in dovoIoping a high connilnonl organiza-
lion. Tho lon slops il can laIo aro:
Adviso on nolhods of connunicaling lho vaIuos and ains of nanagononl and
lho achiovononls of lho organizalion, so lhal onpIoyoos aro noro IiIoIy lo idon-
lify vilh il as ono lhoy aro proud lo vorI for.
Enphasizo lo nanagononl lhal connilnonl is a lvo-vay procoss, onpIoyoos
cannol bo oxpoclod lo bo connillod lo lho organizalion unIoss nanagononl
dononslralos lhal il is connillod lo lhon and rocognizos lhoir conlribulion as
slaIohoIdors.
Inpross on nanagononl lho nood lo dovoIop a cIinalo of lrusl by boing honosl
vilh poopIo, lroaling lhon fairIy, ¡uslIy and consislonlIy, Iooping ils vord, and
shoving viIIingnoss lo Iislon lo lho connonls and suggoslions nado by
onpIoyoos during procossos of consuIlalion and parlicipalion.
DovoIop a posilivo psychoIogicaI conlracl (soo Chaplor 16) by lroaling poopIo as
slaIohoIdors, roIying on consonsus and cooporalion ralhor lhan conlroI and coor-
cion, and focusing on lho provision of opporlunilios for Ioarning, dovoIopnonl
and caroor progrossion.
Adviso on and assisl in lho oslabIishnonl of parlnorship agroononls vilh lrado
unions vhich onphasizo unily of purposo, connon approachos lo vorIing
logolhor and lho inporlanco of giving onpIoyoos a voico in nallors lhal concorn
lhon.
Roconnond and laIo parl in lho achiovononl of singIo slalus for aII onpIoyoos
(oflon incIudod in a parlnorship agroononl) so lhal lhoro is no Iongor an ús and
lhon' cuIluro.
Encourago nanagononl lo docIaro a poIicy of onpIoynonl socurily, and onsuro
lhal slops aro laIon lo avoid invoIunlary rodundancios.
DovoIop porfornanco nanagononl procossos lhal provido for lho aIignnonl of
organizalionaI and individuaI ob¡oclivos.
Adviso on noans of incroasing onpIoyoo idonlificalion vilh lho conpany
lhrough rovards roIalod lo organizalionaI porfornanco (profil sharing or gain-
sharing) or onpIoyoo sharo ovnorship schonos.
DovoIop ´¡ob ongagononl' (idonlificalion of onpIoyoos vilh lho ¡ob lhoy aro
doing) lhrough ¡ob dosign procossos lhal ain lo croalo highor IovoIs of ¡ob salis-
faclion (¡ob onrichnonl).
LNCACLMLN1
Engagononl laIos pIaco vhon poopIo aro connillod lo lhoir vorI. Thoy aro inlor-
oslod, indood oxcilod, aboul vhal lhoy do. }ob ongagononl can oxisl ovon vhon
individuaIs aro nol connillod lo lho organizalion, oxcopl in so far as il givos lhon lho
opporlunily and scopo lo porforn and lo dovoIop lhoir sIiIIs and polonliaI. Thoy nay
bo noro allachod lo lho lypo of vorI lhoy carry oul lhan lo lho organizalion lhal
providos lhal vorI, ospociaIIy if lhoy aro InovIodgo vorIors.
Enhancing ¡ob ongagononl slarls vilh ¡ob dosign or ´roIo dovoIopnonl' as
discussod in Chaplor 23. This viII focus on lho provision of:
inicrcsi cn! c|cllcngc ÷ lho dogroo lo vhich lho vorI is inlorosling in ilsoIf and
croalos donanding goaIs lo poopIo,
tcriciq ÷ lho oxlonl lo vhich lho aclivilios in lho ¡ob caII for a soIoclion of sIiIIs and
abiIilios,
Crgunìzutìonuí commìtmont und ongugomont 28l
cuicncmq ÷ lho froodon and indopondonco lho ¡ob hoIdor has, incIuding discro-
lion lo naIo docisions, oxorciso choico, schoduIo lho vorI and docido on lho
procoduros lo carry il oul, and lho ¡ob hoIdor's porsonaI rosponsibiIily for
oulconos,
ics| i!cniiiq ÷ lho dogroo lo vhich lho ¡ob roquiros conpIolion of a vhoIo and
idonlifiabIo pioco of vorI,
ics| signijiccncc ÷ lho oxlonl lo vhich lho ¡ob conlribulos lo a significanl ond rosuIl
and has a subslanliaI inpacl on lho Iivos and vorI of olhor poopIo.
AII lhoso faclors aro affoclod by lho organizalion slrucluro, lho syslon of vorI and
lho quaIily of Ioadorship. Tho Iallor is vilaI. Tho dogroo lo vhich ¡obs provido varioly,
aulonony, lasI idonlily and lasI significanco doponds noro on lho vay in vhich ¡ob
hoIdors aro nanagod and Iod lhan any fornaI procoss of ¡ob dosign. Managors and
loan Ioadors oflon havo considorabIo discrolion on hov lhoy aIIocalo vorI, and lho
oxlonl lo vhich lhoy doIogalo. Thoy can provido foodbacI lhal rocognizos lho conlri-
bulion of poopIo, and lhoy can spoII oul lho significanco of lho vorI lhoy do.
Tho Hay Group has dovoIopod a nodoI for vhal lhoy caII óngagod porfornanco',
vhich is nado up of six oIononls, and is sunnarizod in TabIo 19.1.
1 ín·píra|íon/vaíuc· 4 Tangíbíc rcvard·
ropututìon ol orgunìzutìon compotìtìvo puy
orgunìzutìonuí vuíuos und bohuvìours good bonolìts
quuíìty ol íoudorshìp ìncontìvos lor hìghor porlormunco
rìsk shurìng ovnorshìp potontìuí
rocognìtìon rocognìtìon uvurds
communìcutìon luìrnoss ol rovurd
2 Çuaíí|, of vor| ´ Vor|-íífc baíancc
porcoptìon ol tho vuíuo ol tho vork supportìvo onvìronmont
chuííongo/ìntorost rocognìtìon ol íìlo cycío noods/líoxìbìíìty
opportunìtìos lor uchìovomont socurìty ol ìncomo
lroodom und uutonomy socìuí support
vorkíoud
quuíìty ol vork roíutìonshìp
3 Lnabííng cnvíronmcn| ó fu|urc grov|h/oppor|uní|,
physìcuí onvìronmont íournìng und dovoíopmont boyond
tooís und oquìpmont curront ¡ob
¡ob truìnìng tcurront posìtìon) curoor udvuncomont opportunìtìos
ìnlormutìon und procossos porlormunco ìmprovomont und
suloty/porsonuí socurìty loodbuck
TabIc 19.1 Tho Hay Group nodoI of ongagod porfornanco
Hov orgunìzutìons lunctìon
ßASlC CCNSlDLkA1lCNS
Tho lvo faclors lhal dolornino hov an organizalion funclions in roIalion lo ils
inlornaI and oxlornaI onvironnonl aro ils slrucluro and lho procossos lhal oporalo
vilhin il. Organizalions aro aIso affoclod by lho cuIluro lhoy dovoIop, lhal is, lho
vaIuos and norns lhal affocl bohaviour (soo Chaplor 21).
Much has boon vrillon lo oxpIain hov organizalions funclion and lho firsl parl of
lhis chaplor sunnarizos lho various lhoorios of organizalion. Thoso lhoorios provido
lho bacIground lo lho Iasl lhroo soclions of lho chaplor vhich doaI vilh organizalion
slrucluro, lypos of organizalions and organizalionaI procossos.
CkCANlZA1lCN 1HLCklLS
Thc cía··ícaí ·chooí
Tho cIassicaI or scionlific nanagononl schooI, as roprosonlod by FayoI (1916), TayIor
(1911) and UrvicI (1947), boIiovod in conlroI, ordor and fornaIily. Organizalions
nood lo nininizo lho opporlunily for unforlunalo and unconlroIIabIo infornaI roIa-
lions, Ioaving roon onIy for lho fornaI onos.

Thc burcaucra|íc modcí
Tho buroaucralic nodoI of organizalion as doscribod by Iorrov (1980) is a vay of
oxprossing hov organizalions funclion as nachinos and can lhoroforo bo associalod
vilh sono of lho idoas gonoralod by lho cIassicaI schooI. Il is basod on lho vorI of
Max Wobor (1946) vho coinod lho lorn ´buroaucracy' as a IaboI for a lypo of fornaI
organizalion in vhich inporsonaIily and ralionaIily aro dovoIopod lo lho highosl
dogroo. Buroaucracy, as ho concoivod il, vas lho nosl officionl forn of organizalion
bocauso il is coIdIy IogicaI and bocauso porsonaIizod roIalionships and non-ralionaI,
onolionaI considoralions do nol gol in ils vay.
Thc human rcía|íon· ·chooí
Tho cIassicaI, and by inpIicalion, lho buroaucralic nodoI voro firsl chaIIongod by
Barnard (1938). Ho onphasizod lho inporlanco of lho infornaI organizalion ÷ lho
nolvorI of infornaI roIos and roIalionships vhich, for bollor or vorso, slrongIy
infIuoncos lho vay lho fornaI slrucluro oporalos. Ho vrolo: ´FornaI organizalions
cono oul of and aro nocossary lo infornaI organizalions: bul vhon fornaI organiza-
lions cono inlo oporalion, lhoy croalo and roquiro infornaI organizalions.' Moro
roconlIy, ChiId (1977) has poinlod oul lhal il is nisIoading lo laII aboul a cIoar
dislinclion bolvoon lho fornaI and lho infornaI organizalion. FornaIily and infor-
naIily can bo dosignod inlo slrucluro.
RoolhIisborgor and DicIson (1939) roporlod on lho Havlhorno sludios ÷ vhich
highIighlod lho inporlanco of infornaI groups and doconl, hunano Ioadorship.
Thc bchavíouraí ·cícncc ·chooí
In lho 1960s lho focus shiflod conpIoloIy lo lho bohaviour of poopIo in organizalions.
BohaviouraI scionlisls such as Argyris (1957), Horzborg ci cl (1957), McGrogor (1960)
and LiIorl (1961) adoplod a hunanislic poinl of viov vhich is concornod vilh vhal
poopIo can conlribulo and hov lhoy can bosl bo nolivalod.
Argqris boIiovod lhal individuaIs shouId bo givon lho opporlunily lo fooI lhal lhoy
havo a high dogroo of conlroI ovor solling lhoir ovn goaIs and ovor dofining lho
palhs lo lhoso goaIs.
Hcrz|crg suggoslod lhal inprovononls in organizalion dosign nusl conlro on lho
individuaI ¡ob as lho posilivo sourco of nolivalion. If individuaIs fooI lhal lho ¡ob
is slrolching lhon, lhoy viII bo novod lo porforn il voII.
McGrcgcr dovoIopod his lhoory of inlogralion (lhoory Y) vhich onphasizos lho
inporlanco of rocognizing lho noods of bolh lho organizalion and lho individuaI
and croaling condilions lhal viII roconciIo lhoso noods so lhal nonbors of lho
organizalion can vorI logolhor for ils succoss and sharo in ils rovards.
 slalod lhal offoclivo organizalions funclion by noans of supporlivo roIalion-
ships vhich, if foslorod, viII buiId and nainlain poopIo's sonso of porsonaI vorlh
and inporlanco.
Tho concopls of lhoso and olhor bohaviouraI scionlisls providod lho inpolus for lho
organizalion dovoIopnonl (OD) novononl as doscribod in Chaplor 22.
Thc ·,·|cm· ·chooí
Anolhor inporlanl insighl inlo hov organizalions funclion vas providod by MiIIor
and Rico (1967) vho slalod lhal organizalions shouId bo lroalod as opon syslons
vhich aro conlinuaIIy dopondonl upon and infIuoncod by lhoir onvironnonls. Tho
basic characlorislic of lho onlorpriso as an opon syslon is lhal il lransforns inpuls
inlo oulpuls vilhin ils onvironnonl.
As Kalz and Kahn (1966) vrolo: ´Syslons lhoory is basicaIIy concornod vilh prob-
Ions of roIalionship, of slrucluro and of inlordopondonco.' As a rosuIl, lhoro is a
considorabIo onphasis on lho concopl of lransaclions across boundarios ÷ bolvoon
lho syslon and ils onvironnonl and bolvoon lho difforonl parls of lho syslon. This
opon and dynanic approach avoidod lho orror of lho cIassicaI, buroaucralic and
hunan roIalions lhoorisls, vho lhoughl of organizalions as cIosod syslons and
anaIysod lhoir probIons vilh roforonco lo lhoir inlornaI slrucluros and procossos of
inloraclion, vilhoul laIing accounl oilhor of oxlornaI infIuoncos and lho changos lhoy
inposo or of lho lochnoIogy in lho organizalion.
Thc ·ocío-|cchnícaí modcí
Tho concopl of lho organizalion as a syslon vas oxlondod by lho TavislocI Inslilulo
rosoarchors inlo lho socio-lochnicaI nodoI of organizalions. Tho basic principIo of lhis
nodoI is lhal in any syslon of organizalion, lochnicaI or lasI aspocls aro inlorroIalod
vilh lho hunan or sociaI aspocls. Tho onphasis is on inlorroIalionships bolvoon, on
lho ono hand, lho lochnicaI procossos of lransfornalion carriod oul vilhin lho
organizalion, and, on lho olhor, lho organizalion of vorI groups and lho nanago-
nonl slrucluros of lho onlorpriso. This approach avoidod lho hunanislic gonoraIiza-
lions of lho bohaviouraI scionlisls vilhoul faIIing inlo lho lrap of lroaling lho
organizalion as a nachino.
Hov orgunìzutìons lunctìon 285
Thc con|íngcnc, ·chooí
Tho conlingoncy schooI consisls of vrilors such as Burns and SlaIIor (1961),
Woodvard (1965) and Lavronco and Lorsch (1976) vho havo anaIysod a varioly of
organizalions and concIudod lhal lhoir slrucluros and nolhods of oporalion aro a
funclion of lho circunslancos in vhich lhoy oxisl. Thoy do nol subscribo lo lho viov
lhal lhoro is ono bosl vay of dosigning an organizalion or lhal sinpIislic cIassifica-
lions of organizalions as fornaI or infornaI, buroaucralic or non-buroaucralic aro
hoIpfuI. Thoy aro againsl lhoso vho soo organizalions as nuluaIIy opposod sociaI
syslons (vhal Burns and SlaIIor rofor lo as lho ´Manichoan vorId of lho Havlhorno
sludios') lhal sol up fornaI againsl infornaI organizalions. Thoy disagroo vilh
lhoso vho inposo rigid principIos of organizalion irrospoclivo of lho lochnoIogy or
onvironnonlaI condilions.
\orc rcccn| con|ríbu|íon· |o undcr·|andíng hov organí2a|íon·
func|íon
 (1995 dovoIopod lho foIIoving ovoraII franovorI for oxanining organiza-
lions:
Ioy organizalionaI procossos ÷ lho na¡or infornalion galhoring, connunicalion,
docision-naIing, nallor/onorgy lransporling and nallor/onorgy convorling
aclions of lho organizalion's onpIoyoos and nachinos,
oxlornaI onvironnonl ÷ an organizalion's ´lasI' onvironnonl incIudos suppIiors,
narIols and conpolilors, lho vidor onvironnonl incIudos faclors such as pubIic
alliludos, ocononic and poIilicaI syslons, Iavs olc,
onpIoyoos and olhor langibIo assols ÷ poopIo, pIanl, and oquipnonl,
fornaI organizalionaI roquirononls ÷ syslons dosignod lo roguIalo lho aclions of
onpIoyoos (and nachinos),
lho sociaI syslon ÷ cuIluro (vaIuos and norns) and roIalionships bolvoon
onpIoyoos in lorns of povor, affiIialion and lrusl,
lochnoIogy ÷ lho na¡or lochniquos poopIo uso vhiIo ongagod in organizalionaI
procossos and lhal aro progrannod inlo nachinos,
lho doninanl coaIilion ÷ lho ob¡oclivos, slralogios, porsonaI characlorislics and
inlornaI roIalionships of lhoso vho ovorsoo lho organizalion as a vhoIo and
conlroI ils basic poIicy naIing.
Miniz|crg (1983b) anaIysod organizalions inlo fivo broad lypos or configuralions:
simplc siruciurcs, vhich aro doninalod by lho lop of lho organizalion vilh conlraI-
izod docision naIing,
mcc|inc |urccucrccq, vhich is characlorizod by lho slandardizalion of vorI
procossos and lho oxlonsivo roIianco on syslons,
prcjcssicncl |urccucrccq, vhoro lho slandardizalion of sIiIIs providos lho prino
coordinaling nochanisn,
!itisicnclizc! siruciurcs, in vhich aulhorily is dravn dovn fron lho lop and acliv-
ilios aro groupod logolhor inlo unils vhich aro lhon nanagod according lo lhoir
slandardizod oulpuls,
c!|ccrccics, vhoro povor is doconlraIizod soIoclivoIy lo consloIIalions of vorI lhal
aro froo lo coordinalo vilhin and bolvoon lhonsoIvos by nuluaI ad¡uslnonls.
Druc|cr (1988) poinls oul lhal organizalions havo oslabIishod, lhrough lho dovoIop-
nonl of nov lochnoIogy and lho oxlondod uso of InovIodgo vorIors, ´lhal
vhoIo Iayors of nanagononl noilhor naIo docisions nor Ioad. Insload, lhoir nain,
if nol lhoir onIy, funclion, is lo sorvo as roIays ÷ hunan booslors for lho fainl,
unfocusod signaIs lhal pass for connunicalions in lho lradilionaI pro-infornalion
organizalion'.
Pcscclc (1990) boIiovos lhal lho nov organizalionaI paradign funclions as
foIIovs:
jrcm lho inago of organizalions as nachinos, vilh lho onphasis on concrolo
slralogy, slrucluro and syslons, ic lho idoa of organizalions as organisns, vilh lho
onphasis on lho ´sofl' dinonsions ÷ slyIo, slaff and sharod vaIuos,
jrcm a hiorarchicaI nodoI, vilh slop-by-slop probIon soIving, ic a nolvorI nodoI,
vilh paraIIoI nodos of inloIIigonco vhich surround probIons unliI lhoy aro oIini-
nalod,
jrcm lho slalus-drivon viov lhal nanagors lhinI and vorIors do as lhoy aro loId,
ic a viov of nanagors as ´faciIilalors', vilh vorIors onpovorod lo inilialo
inprovononls and chango,
jrcm an onphasis on ´vorlicaI lasIs' vilhin funclionaI unils, ic an onphasis on
´horizonlaI lasIs' and coIIaboralion across unils,
jrcm a focus on ćonlonl' and lho proscribod uso of spocific looIs and lochniquos, ic
a focus on ´procoss' and a hoIislic synlhosis of lochniquos,
jrcm lho niIilary nodoI ic a connilnonl nodoI.
Hcn!q (1989) doscribos lvo lypos of organizalion: lho ´shanrocI' and lho fodoraI.
Tho shanrocI organizalion consisls of lhroo oIononls: 1) lho coro vorIors (lho
conlraI Ioaf of lho shanrocI) ÷ profossionaIs, lochnicians and nanagors, 2) lho
conlracluaI fringo ÷ conlracl vorIors, and 3) lho fIoxibIo Iabour forco consisling of
lonporary slaff.
Tho fodoraI organizalion laIos lho procoss of doconlraIizalion ono slago furlhor by
oslabIishing ovory Ioy oporalionaI, nanufacluring or sorvico provision aclivily as a
dislincl, fodoralod unil.
CkCANlZA1lCN S1kLC1LkL
Each of lho nonbors of lho various schooIs vas, in offocl, connonling on lho faclors
affocling organizalion slrucluro as considorod boIov.
Crganí2a|íon ·|ruc|urc dcfíncd
AII organizalions havo sono forn of noro or Ioss fornaIizod slrucluro vhich has
boon dofinod by ChiId (1977) as conprising áII lho langibIo and roguIarIy occurring
foaluros vhich hoIp lo shapo lhoir nonbors' bohaviour'. Slrucluros incorporalo a
nolvorI of roIos and roIalionships and aro lhoro lo hoIp in lho procoss of onsuring
lhal coIIoclivo offorl is oxpIicilIy organizod lo achiovo spocifiod onds.
Organizalions vary in lhoir conpIoxily, bul il is aIvays nocossary lo divido lho
ovoraII nanagononl lasI inlo a varioly of aclivilios, lo aIIocalo lhoso aclivilios lo lho
difforonl parls of lho organizalion and lo oslabIish noans of conlroIIing, coordinaling
and inlograling lhon.
Tho slrucluro of an organizalion can bo rogardod as a franovorI for golling lhings
dono. Il consisls of unils, funclions, divisions, doparlnonls and fornaIIy conslilulod
vorI loans inlo vhich aclivilios roIalod lo parlicuIar procossos, pro¡ocls, producls,
narIols, cuslonors, goographicaI aroas or profossionaI discipIinos aro groupod
logolhor. Tho slrucluro indicalos vho is accounlabIo for dirocling, coordinaling and
carrying oul lhoso aclivilios and dofinos nanagononl hiorarchios ÷ lho ćhain of
connand' ÷ lhus spoIIing oul, broadIy, vho is rosponsibIo lo vhon for vhal al oach
IovoI in lho organizalion.
Crganí2a|íon char|·
Slrucluros aro usuaIIy doscribod in lho forn of an organizalion charl. This pIacos
individuaIs in boxos lhal donolo lhoir ¡ob and lhoir posilion in lho hiorarchy and
lracos lho dirocl Iinos of aulhorily (connand and conlroI) lhrough lho nanagononl
hiorarchios.
Organizalion charls aro vorlicaI in lhoir naluro and lhoroforo nisroprosonl roaIily.
Thoy do nol givo any indicalion of lho horizonlaI and diagonaI roIalionships lhal
oxisl vilhin lho franovorI bolvoon poopIo in difforonl unils or doparlnonls, and
do nol rocognizo lho facl lhal vilhin any ono hiorarchy, connands and conlroI infor-
nalion do nol lravoI aII lho vay dovn and up lho slrucluro as lho charl inpIios. In
praclico, infornalion ¡unps (ospociaIIy conpulor-gonoralod infornalion) and
nanagors or loan Ioadors viII inloracl vilh poopIo al IovoIs boIov lhoso innodialoIy
bonoalh lhon.
Organizalion charls havo lhoir usos as noans of dofining ÷ sinpIislicaIIy ÷ vho
doos vhal and hiorarchicaI Iinos of aulhorily. Bul ovon if bacIod up by organizalion
nanuaIs (vhich no ono roads and vhich aro, in any caso, oul of dalo as soon as lhoy
aro producod), lhoy cannol convoy hov lho organizalion roaIIy vorIs. Thoy nay, for
oxanpIo, Ioad lo dofinilions of ¡obs ÷ vhal poopIo aro oxpoclod lo do ÷ bul lhoy
cannol convoy lho roIos lhoso poopIo carry oul in lho organizalion, lho parls lhoy pIay
in inloracling vilh olhors and lho vays in vhich, IiIo aclors, lhoy inlorprol lho parls
lhoy aro givon.
1YlLS Cl CkCANlZA1lCN
Tho basic lypos of organizalion aro doscribod boIov.
Línc and ·|aff
Tho Iino and slaff organizalion vas lho lypo favourod by lho cIassicaI lhoorisls.
AIlhough lho lorn is nol so nuch usod loday, oxcopl vhon roforring lo Iino nanagors,
il sliII doscribos nany slrucluros. Tho Iino hiorarchy in lho slrucluro consisls of func-
lions and nanagors vho aro diroclIy concornod in achioving lho prinary purposos of
lho organizalion, for oxanpIo nanufacluring and soIIing or dirocling lho organiza-
lion as a vhoIo. ´Slaff' in funclions such as financo, porsonnoI and onginooring
provido sorvicos lo lho Iino lo onabIo lhon lo gol on vilh lhoir ¡ob.
Díví·íonaíí2cd organí2a|íon·
Tho procoss of divisionaIizalion, as firsl doscribod by SIoan (1963) on lho basis of
his oxporionco in running GonoraI Molors, invoIvos slrucluring lho organizalion
inlo soparalo divisions, oach concornod vilh discrolo nanufacluring, saIos, dis-
lribulion or sorvico funclions, or vilh sorving a parlicuIar narIol. Al group hoad-
quarlors, funclionaI doparlnonls nay oxisl in such aroas as financo, pIanning,
porsonnoI, IogaI and onginooring lo provido sorvicos lo lho divisions and, inpor-
lanlIy, lo oxorciso a dogroo of funclionaI conlroI ovor lhoir aclivilios. Tho anounl of
conlroI oxorcisod viII dopond on lho oxlonl lo vhich lho organizalion has docidod lo
doconlraIizo aulhorily lo slralogic businoss unils posilionod cIoso lo lho narIols lhoy
sorvo.
Dcccn|raíí2cd organí2a|íon·
Sono organizalions, ospociaIIy congIonoralos, doconlraIizo nosl of lhoir aclivilios
and rolain onIy a sIoIolon hoadquarlors slaff lo doaI vilh financiaI conlroI nallors,
slralogic pIanning, IogaI issuos and sonolinos, bul nol aIvays, porsonnoI issuos,
ospociaIIy lhoso concornod vilh sonior nanagononl on an across lho group basis
(rocruilnonl, dovoIopnonl and ronunoralion).
\a|ríx organí2a|íon·
Malrix organizalions aro pro¡ocl basod. DovoIopnonl, dosign or conslruclion pro¡ocls
viII bo conlroIIod by pro¡ocl diroclors or nanagors, or, in lho caso of a consuIlancy,
assignnonls viII bo conduclod by pro¡ocl Ioadors. Iro¡ocl nanagors viII havo no
pornanonl slaff oxcopl, possibIy, sono adninislralivo/socrolariaI supporl. Thoy viII
drav lho nonbors of lhoir pro¡ocl loans fron discipIino groups, oach of vhich viII
bo hoadod up by a diroclor or nanagor vho is rosponsibIo on a conlinuing basis for
rosourcing lho group, dovoIoping and nanaging ils nonbors and onsuring lhal lhoy
aro assignod as fuIIy as possibIo lo pro¡ocl loans. Thoso individuaIs aro assignod lo a
pro¡ocl loan and lhoy viII bo rosponsibIo lo lho loan Ioador for doIivoring lho
roquirod rosuIls, bul lhoy viII conlinuo lo bo accounlabIo gonoraIIy lo lho hoad of
lhoir discipIino for lhoir ovoraII porfornanco and conlribulion.
fícxíbíc organí2a|íon·
FIoxibIo organizalions nay conforn broadIy lo lho Minlzborg (1983b) calogory of an
adhocracy in lho sonso lhal lhoy aro capabIo of adapling quicIIy lo nov donands and
oporalo fIuidIy. Thoy nay bo organizod aIong lho Iinos of Handy's (1989) ´shanrocI'
vilh coro vorIors carrying oul lho fundanonlaI and conlinuing aclivilios of lho orga-
nizalion and conlracl vorIors and lonporary slaff boing onpIoyod as roquirod. This
is aIso caIIod a coro÷poriphory organizalion. An organizalion nay adopl a poIicy of
nunoricaI fIoxibiIily, vhich noans lhal lho nunbor of onpIoyoos can bo quicIIy
incroasod or docroasod in Iino vilh changos in aclivily IovoIs. Tho difforonl lypos of
fIoxibiIily as dofinod by AlIinson (1984) aro doscribod in Chaplor 14.
Thc procc··-ba·cd organí2a|íon
Aprocoss-basod organizalion is ono in vhich lho focus is on horizonlaI procossos lhal
cul across organizalionaI boundarios. TradilionaI organizalion slrucluros consisl of a
rango of funclions oporaling soni-indopondonlIy and oach vilh ils ovn, usuaIIy
oxlondod, nanagononl hiorarchy. Funclions aclod as vorlicaI ćhinnoys' vilh bound-
arios bolvoon vhal lhoy did and vhal happonod noxl door. Conlinuily of vorI
bolvoon funclions and lho coordinalion of aclivilios voro pro¡udicod. Allonlion vas
focusod on vorlicaI roIalionships and aulhorily-basod nanagononl ÷ lho ćonnand
and conlroI' slrucluro. HorizonlaI procossos rocoivod roIalivoIy IillIo allonlion. Il vas,
for oxanpIo, nol rocognizod lhal nooling lho noods of cuslonors by syslons of ordor
procossing couId onIy bo carriod oul salisfacloriIy if lho fIov of vorI fron saIos
lhrough nanufacluring lo dislribulion vas lroalod as a conlinuous procoss and nol as
lhroo dislincl parcoIs of aclivily. Anolhor horizonlaI procoss lhal drov allonlion lo lho
nood lo roconsidor hov organizalions shouId bo slruclurod vas lolaI quaIily. This is
nol a lop-dovn syslon. Il culs across lho boundarios soparaling organizalionaI unils
lo onsuro lhal quaIily is buiIl inlo lho organizalion's producls and sorvicos. Businoss
procoss ro-onginooring oxorcisos havo aIso dononslralod lho nood for
businossos lo inlogralo funclionaIIy soparalod lasIs inlo unifiod horizonlaI vorI
procossos.
Tho rosuIl, as indicalod by GhoshaI and BarlIoll (1993), has boon lhal:
. munugors uro bogìnnìng to douí vìth thoìr orgunìzutìons ìn dìlloront vuys. kuthor thun
sooìng thom us u hìorurchy ol stutìc roíos, thoy thìnk ol thom us u portloíìo ol dynumìc
procossos. 1hoy soo coro orgunìzutìonuí procossos thut ovoríuy und olton domìnuto tho
vortìcuí, uuthorìty-busod procossos ol tho hìorurchìcuí structuro.
In a procoss-basod organizalion lhoro viII sliII bo dosignalod funclions for, say,
nanufacluring, saIos and dislribulion. Bul lho onphasis viII bo on hov lhoso aroas
vorI logolhor on nuIli-funclionaI pro¡ocls lo doaI vilh nov donands such as
producl/narIol dovoIopnonl. Toans viII ¡oinlIy considor vays of rosponding lo
cuslonor roquirononls. QuaIily and conlinuous inprovononl viII bo rogardod as a
connon rosponsibiIily sharod bolvoon nanagors and slaff fron oach funclion. Tho
ovorriding ob¡oclivo viII bo lo nainlain a snoolh fIov of vorI bolvoon funclions
and lo achiovo synorgy by pooIing rosourcos fron difforonl funclions in lasI forcos or
pro¡ocl loans.
Hov orgunìzutìons lunctìon 29l
CkCANlZA1lCNAL lkCCLSSLS
Tho slrucluro of an organizalion as doscribod in an organizalion charl doos nol givo
any roaI indicalion of hov il funclions. To undorsland lhis, il is nocossary lo considor
lho various procossos lhal laIo pIaco vilhin lho slrucluraI franovorI: lhoso of group
bohaviour, loanvorI, Ioadorship, povor, poIilics and confIicl, inloraclion and
nolvorIing and connunicalions.
Croup bchavíour
Organizalions consisl of groups of poopIo vorIing logolhor. Inloraclions laIo pIaco
vilhin and bolvoon groups and lho dogroo lo vhich lhoso procossos aro fornaIizod
varios according lo lho organizalionaI conloxl. To undorsland and infIuonco organiza-
lionaI bohaviour, il is nocossary lo approcialo hov groups bohavo. In parlicuIar, lhis
noans considoring lho naluro of:
fornaI and infornaI groups,
lho procossos lhal laIo pIaco vilhin groups,
channoIs of connunicalion,
lasI and nainlonanco funclions,
group idooIogy and cohosion,
lho concopl of a roforonco group and ils inpacl on group nonbors,
lho faclors lhal naIo for group offoclivonoss,
lho slagos of group dovoIopnonl,
group idonlificalion.
FormaI groups
FornaI groups aro sol up by organizalions lo achiovo a dofinod purposo. IoopIo aro
broughl logolhor vilh lho nocossary sIiIIs lo carry oul lho lasIs and a syslon
oxisls for dirocling, coordinaling and conlroIIing lho group's aclivilios. Tho slrucluro,
conposilion and sizo of lho group viII dopond IargoIy on lho naluro of lho lasI,
aIlhough lradilion, organizalionaI cuIluro and nanagononl slyIo nay oxorl considor-
abIo infIuonco. Tho noro roulino or cIoarIy dofinod lho lasI is, lho noro slruclurod lho
group viII bo. In a highIy slruclurod group lho Ioador viII havo a posilivo roIo and
nay voII adopl an aulhorilarian slyIo. Tho roIo of oach nonbor of lho group viII bo
prociso and a hiorarchy of aulhorily is IiIoIy lo oxisl. Tho noro anbiguous lho lasI,
lho noro difficuIl il viII bo lo slrucluro lho group. Tho Ioador's roIo is noro IiIoIy lo
bo supporlivo ÷ ho or sho viII lond lo conconlralo on oncouragononl and coordina-
lion ralhor lhan on issuing ordors. Tho group viII oporalo in a noro donocralic vay
and individuaI roIos viII bo fIuid and Ioss cIoarIy dofinod.
lnformaI groups
InfornaI groups aro sol up by poopIo in organizalions vho havo sono affinily for ono
anolhor. Il couId bo said lhal fornaI groups salisfy lho noods of lho organizalion
vhiIo infornaI groups salisfy lho noods of lhoir nonbors. Ono of lho nain ains of
organizalion dosign and dovoIopnonl shouId bo lo onsuro, so far as possibIo, lhal lho
basis upon vhich aclivilios aro groupod logolhor and lho vay in vhich groups aro
aIIovod or oncouragod lo bohavo salisfy bolh lhoso noods. Tho vaIuos and norns
oslabIishod by infornaI groups can vorI againsl lho organizalion. This vas firsl
cIoarIy oslabIishod in lho Havlhorno sludios, vhich rovoaIod lhal groups couId
roguIalo lhoir ovn bohaviour and oulpul IovoIs irrospoclivo of vhal nanagononl
vanlod. An undorslanding of lho procossos lhal laIo pIaco vilhin groups can,
hovovor, hoIp lo naIo lhon vorI for, ralhor lhan againsl, vhal lho organizalion
noods.
Group proccsscs
As nonlionod abovo, lho vay in vhich groups funclion is affoclod by lho lasI and by
lho norns in lho organizalion. An addilionaI faclor is sizo. Thoro is a groalor divorsily
of laIonl, sIiIIs and InovIodgo in a Iargo group, bul individuaIs find il noro difficuIl
lo naIo lhoir prosonco foIl. According lo Handy (1981), for bosl parlicipalion and for
highosl aII-round invoIvononl, lho oplinun sizo is bolvoon fivo and sovon. Bul lo
achiovo lho roquisilo broadlh of InovIodgo lho group nay havo lo bo considorabIy
Iargor, and lhis naIos groalor donands on lho sIiIIs of lho Ioador in golling parlicipa-
lion. Tho lorn ´group dynanics' is sonolinos usod IoosoIy lo doscribo lho vays in
vhich group nonbors inloracl, bul proporIy il rofors lo lho vorI of Lovin (1947).
This vas nainIy concornod vilh lho inprovononl of group procossos lhrough
various forns of lraining, og T-groups, loan buiIding and inloraclivo sIiIIs lraining.
Tho nain procossos lhal laIo pIaco in groups as doscribod boIov aro inloraclion, lasI
and nainlonanco funclions, group idooIogy, group cohosion, group dovoIopnonl and
idonlificalion.
CbanncIs of communication
Throo basic channoIs of connunicalion vilhin groups voro idonlifiod by Loavill
(1951) and aro iIIuslralod in Figuro 20.1.
Tho characlorislics of lhoso difforonl groups aro as foIIovs:
W|ccl grcups, vhoro lho lasI is slraighlforvard, vorI faslor, nood fovor nossagos
lo soIvo probIons and naIo fovor orrors lhan circIo groups, bul lhoy aro infIox-
ibIo if lho lasI changos.
Circlc grcups aro faslor in soIving conpIox probIons lhan vhooI groups.
All-c|cnncl grcups aro lho nosl fIoxibIo and funclion voII in conpIox, opon-ondod
silualions.
Tho IovoI of salisfaclion for individuaIs is Iovosl in lho circIo group, fairIy high in lho
aII-channoI group and nixod in lho vhooI group, vhoro lho Ioador is noro salisfiod
lhan lho oulIying nonbors.
Task and maintcnancc functions
Tho foIIoving funclions nood lo bo carriod oul in groups:
ics| ÷ inilialing, infornalion sooIing, diagnosing, opinion-sooIing, ovaIualing,
docision-nanaging,
mcinicncncc ÷ oncouraging, conpronising, poaco-Iooping, cIarifying, sunna-
rizing, slandard-solling.
Il is lho ¡ob of lho group Ioador or Ioadors lo onsuro lhal lhoso funclions oporalo offoc-
livoIy. LoadorIoss groups can vorI, bul onIy in spociaI circunslancos. A Ioador is
aInosl ossonliaI ÷ vholhor officiaI or soIf-appoinlod. Tho slyIo adoplod by a Ioador
affocls lho vay lho group oporalos. If lho Ioador is rospoclod, lhis viII incroaso group
cohosivonoss and ils abiIily lo gol lhings dono. An inapproprialoIy aulhorilarian slyIo
croalos lonsion and rosonlnonl. An ovor-pornissivo slyIo noans lhal rospocl for lho
Ioador dininishos and lho group doos nol funclion so offoclivoIy.
FIgurc 20.1 ChannoIs of connunicalion vilhin groups
Wheel Circle All-channel
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
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Group idcoIogy
In lho courso of inloracling and carrying oul ils lasI and nainlonanco funclions, lho
group dovoIops an idooIogy vhich affocls lho alliludos and aclions of ils nonbors
and lho dogroo of salisfaclion vhich lhoy fooI.
Group cobcsion
If lho group idooIogy is slrong and individuaI nonbors idonlify cIosoIy vilh lho
group, il viII bocono incroasingIy cohosivo. Group norns or inpIicil ruIos viII bo
ovoIvod, vhich dofino vhal is accoplabIo bohaviour and vhal is nol. Tho inpacl of
group cohosion can, hovovor, rosuIl in nogalivo as voII as posilivo rosuIls. }anis's
(1972) sludy of lho docision-naIing procossos of US foroign poIicy groups oslab-
Iishod lhal a cohosivo group of individuaIs, sharing a connon falo, oxorls a slrong
prossuro lovards confornily. Ho coinod lho lorn ´group lhinI' lo doscribo lho oxag-
goralion of irralionaI londoncios lhal appoars lo occur in groups and arguod lhal a
group solling can nagnify voaInoss of ¡udgononl.
To bo óno of us' is nol aIvays a good lhing in nanagononl circIos. A slurdy spiril
of indopondonco, ovon a navoricI londoncy, nay bo noro conducivo lo corrocl doci-
sion-naIing. Toan-vorIing is a good lhing, bul so is fIoxibiIily and indopondonl
¡udgononl. Thoso nood nol bo inconpalibIo vilh loan nonborship, bul couId bo if
lhoro is loo nuch onphasis on cohosion and confornily vilhin lho group.
kcfcrcncc group
Aroforonco group consisls of lho group of poopIo vilh vhon an individuaI idonlifios.
This noans lhal lho group's norns aro accoplod and if in doubl aboul vhal lo do or
say, roforonco is nado lo lhoso norns or lo olhor group nonbors boforo aclion is
laIon. Mosl poopIo in organizalions boIong lo a roforonco group and lhis can signifi-
canlIy affocl lho vays in vhich lhoy bohavo.
lmpact on group mcmbcrs
Tho roforonco group viII aIso affocl individuaI bohaviour. This nay bo lhrough ovorl
prossuro lo conforn or by noro sublIo procossos. Accoplanco of group norns
connonIy goos lhrough lvo slagos ÷ conpIianco and inlornaIizalion. IniliaIIy, a
group nonbor conpIios in ordor nol lo bo ro¡oclod by lho group, aIlhough ho or sho
nay bohavo difforonlIy vhon avay fron lho group. IrogrossivoIy, hovovor, lho
individuaI accopls lho norn vholhor vilh lho group or nol ÷ lho group norn has
boon inlornaIizod. As nolod by ChoII (1987), prossuro on nonbors lo conforn can
causo probIons vhon:
lhoro is inconpalibiIily bolvoon a nonbor's porsonaI goaIs and lhoso of lho
group,
lhoro is no sonso of prido fron boing a nonbor of lho group,
lho nonbor is nol fuIIy inlogralod vilh lho group,
lho prico of confornily is loo high.
Group dcvcIopmcnt
TucInan (1965) has idonlifiod four slagos of group dovoIopnonl:
1. jcrming, vhon lhoro is anxioly, dopondonco on lho Ioador and losling lo find oul
lho naluro of lho silualion and lho lasI, and vhal bohaviour is accoplabIo,
2. sicrming, vhoro lhoro is confIicl, onolionaI rosislanco lo lho donands of lho lasI,
rosislanco lo conlroI and ovon roboIIion againsl lho Ioador,
3. ncrming, vhon group cohosion is dovoIopod, norns onorgo, viovs aro
oxchangod oponIy, nuluaI supporl and cooporalion incroaso and lho group
acquiros a sonso of ils idonlily,
4. pcrjcrming, vhon inlorporsonaI probIons aro rosoIvod, roIos aro fIoxibIo and func-
lionaI, lhoro aro conslruclivo allonpls lo conpIolo lasIs and onorgy is avaiIabIo
for offoclivo vorI.
ldcntification
IndividuaIs viII idonlify vilh lhoir groups if lhoy IiIo lho olhor nonbors, approvo of
lho purposo and vorI of lho group and vish lo bo associalod vilh lho slanding of lho
group in lho organizalion. Idonlificalion viII bo noro conpIox if lho slanding of lho
group is good.

Dcfinition of a tcam
As dofinod by Kalzonbach and Snilh (1993):
A toum ìs u smuíí numbor ol poopío vìth compíomontury skìíís vho uro commìttod to u
common purposo, porlormunco gouís und upprouch lor vhìch thoy hoíd thomsoívos
mutuuííy uccountubío.
Cbaractcristics of cffcctivc tcams
Tho characlorislics of loans as doscribod by Kalzonbach and Snilh aro:
Toans aro lho basic unils of porfornanco for nosl organizalions. Thoy noId
logolhor lho sIiIIs, oxporioncos and insighls of sovoraI poopIo.
ToanvorI appIios lo lho vhoIo organizalion as voII as spocific loans. Il ropro-
sonls á sol of vaIuos lhal oncourago bohaviours such as Iisloning and rosponding
co-oporalivoIy lo poinls of viov oxprossod by olhors, giving olhors lho bonofil of
lho doubl, providing supporl lo lhoso vho nood il and rocognising lho inlorosls
and achiovononls of olhors'.
Toans aro croalod and onorgizod by significanl porfornanco chaIIongos.
Toans oulporforn individuaIs acling aIono or in Iargo organizalionaI groupings,
ospociaIIy vhon porfornanco roquiros nuIlipIo sIiIIs, ¡udgononls and oxpori-
oncos.
Toans aro fIoxibIo and rosponsivo lo changing ovonls and donands. Thoy can
ad¡usl lhoir approach lo nov infornalion and chaIIongos vilh groalor spood,
accuracy and offoclivonoss lhan can individuaIs caughl in lho vob of Iargor
organizalionaI convonlions.
High-porfornanco loans invosl nuch lino and offorl oxpIoring, shaping and
agrooing on a purposo lhal boIongs lo lhon, bolh coIIoclivoIy and individuaIIy.
Thoy aro characlorizod by a doop sonso of connilnonl lo lhoir grovlh and
succoss.
DysfunctionaI tcams
Tho spocificalion sol oul abovo is sonovhal idoaIislic. Toans do nol aIvays vorI IiIo
lhal. Thoy can faiI lo funclion offoclivoIy in lho foIIoving vays:
Tho alnosphoro can bo slrainod and ovor-fornaIizod.
Eilhor lhoro is loo nuch discussion lhal gols novhoro or discussion is inhibilod by
doninanl nonbors of lho loan.
Toan nonbors do nol roaIIy undorsland vhal lhoy aro lhoro lo do and lho ob¡oc-
livos or slandards lhoy aro oxpoclod lo achiovo.
IoopIo don'l Iislon lo ono anolhor.
Disagroononls aro froquonl and oflon roIalo lo porsonaIilios and difforoncos of
opinion ralhor lhan a roasonod discussion of aIlornalivo poinls of viov.
Docisions aro nol nado ¡oinlIy by loan nonbors.
Thoro is ovidonco of opon porsonaI allacIs or hiddon porsonaI aninosilios.
IoopIo do nol fooI froo lo oxpross lhoir opinions.
IndividuaI loan nonbors opl oul or aro aIIovod lo opl oul, Ioaving lho olhors lo
do lho vorI.
Thoro is IillIo fIoxibiIily in lho vay in vhich loan nonbors oporalo ÷ poopIo lond
lo uso a Iinilod rango of sIiIIs or spocific lasIs, and lhoro is IillIo ovidonco of
nuIli-sIiIIing.
Tho loan Ioador doninalos lho loan, noro allonlion is givon lo vho laIos conlroI
ralhor lhan lo golling lho vorI dono.
Tho loan dolorninos ils ovn slandards and norns, vhich nay nol bo in accord
vilh lho slandards and norns of lho organizalion.
Tcam roIcs
Tho difforonl lypos of roIos pIayod by loan nonbors havo boon dofinod by BoIbin
(1981) as foIIovs:
c|cirmcn vho conlroI lho vay lho loan oporalos,
s|cpcrs vho spocify lho vays lho loan shouId vorI,
ccmpcnq ucr|crs vho lurn proposaIs inlo praclicaI vorI procoduros,
plcnis vho produco idoas and slralogios,
rcscurcc intcsiigcicrs vho oxpIoro lho avaiIabiIily of rosourcos, idoas and dovoIop-
nonls oulsido lho loan,
mcniicr-ctclucicrs vho anaIyso probIons and ovaIualo idoas,
iccm ucr|crs vho provido supporl lo loan nonbors, inprovo loan connunica-
lions and foslor loan spiril,
ccmplcicr-jinis|crs vho nainlain a sonso of urgoncy in lho loan.
An aIlornalivo cIassificalion of roIos has boon dovoIopod by Margorison and McCann
(1986). Tho oighl roIos aro:
rcpcricr-c!tiscr. galhors infornalion and oxprossos il in an oasiIy undorslandabIo
forn,
crccicr-innctcicr. on¡oys lhinIing up nov idoas and vays of doing lhings,
cxplcrcr-prcmcicr. laIos up idoas and pronolos lhon lo olhors,
csscsscr-!ctclcpcr. laIos idoas and naIos lhon vorI in praclico,
i|rusicr-crgcnizcr. gols lhings dono, onphasizing largols, doadIinos and
budgols,
ccnclu!cr-prc!uccr. sols up pIans and slandard syslons lo onsuro oulpuls aro
achiovod,
ccnircllcr-inspccicr. concornod vilh lho dolaiIs and adhoring lo ruIos and roguIa-
lions,
up|cl!cr-mcinicincr. providos guidanco and hoIp in nooling slandards.
According lo Margorison and McCann, a baIancod loan noods nonbors vilh profor-
oncos for oach of lhoso oighl roIos.
Lcadcr·híp, povcr, poíí|íc· and confííc|
Tho nain procossos lhal affocl hov organizalions funclion aro Ioadorship, povor,
poIilics and confIicl.
tcadcrsbip
Loadorship can bo dofinod as lho abiIily lo porsuado olhors viIIingIy lo bohavo diffor-
onlIy. Tho funclion of loan Ioadors is lo achiovo lho lasI sol for lhon vilh lho hoIp of
lho group. Loadors and lhoir groups aro lhoroforo inlordopondonl.
Loadors havo lvo nain roIos. Firsl, lhoy nusl achiovo lho lasI. SocondIy, lhoy havo
lo nainlain offoclivo roIalionships bolvoon lhonsoIvos and lho group and lho indi-
viduaIs in il ÷ offoclivo in lho sonso lhal lhoy aro conducivo lo achioving lho lasI. As
Adair (1973) poinlod oul, in fuIfiIIing lhoir roIos, Ioadors havo lo salisfy lho foIIoving
noods:
1. 1cs| ncc!s. Tho group oxisls lo achiovo a connon purposo or lasI. Tho Ioador's
roIo is lo onsuro lhal lhis purposo is fuIfiIIod. If il is nol, lhoy viII Ioso lho confi-
donco of lho group and lho rosuIl viII bo fruslralion, disonchanlnonl, crilicisn
and, possibIy, lho uIlinalo disinlogralion of lho group.
2. Grcup mcinicncncc ncc!s. To achiovo ils ob¡oclivos, lho group noods lo bo
hoId logolhor. Tho Ioador's ¡ob is lo buiId up and nainlain loan spiril and
noraIo.
3. ln!iti!ucl ncc!s. IndividuaIs havo lhoir ovn noods, vhich lhoy oxpocl lo bo salis-
fiod al vorI. Tho Ioador's lasI is lo bo avaro of lhoso noods so lhal vhoro nocos-
sary lhoy can laIo slops lo harnonizo lhon vilh lho noods of lho lasI and lho
group.
Thoso lhroo noods aro inlordopondonl. Tho Ioador's aclions in ono aroa affocl bolh lho
olhors, lhus succossfuI achiovononl of lho lasI is ossonliaI if lho group is lo bo hoId
logolhor and ils nonbors nolivalod lo givo lhoir bosl offorl lo lho ¡ob. Aclion diroclod
al nooling group or individuaI noods nusl bo roIalod lo lho noods of lho lasI. Il is
inpossibIo lo considor individuaIs in isoIalion fron lho group or lo considor lho
group vilhoul roforring lo lho individuaIs vilhin il. If any nood is nogIoclod, ono of
lho olhors viII suffor and lho Ioador viII bo Ioss succossfuI.
Tho Iind of Ioadorship oxorcisod viII bo roIalod lo lho naluro of lho lasI and lho
poopIo boing Iod. Il viII aIso dopond on lho onvironnonl and, of courso, on lho acluaI
Ioador. AnaIysing lho quaIilios of Ioadorship in lorns of inloIIigonco, inilialivo,
soIf-assuranco and so on has onIy Iinilod vaIuo. Tho quaIilios roquirod nay bo
difforonl in difforonl silualions. Il is noro usofuI lo adopl a conlingoncy approach and
laIo accounl of lho variabIos Ioadors havo lo doaI vilh, ospociaIIy lho lasI, lho group
and lhoir ovn posilion roIalivo lo lho group.
Fowcr
Organizalions oxisl lo gol lhings dono and in lho procoss of doing lhis, poopIo or
groups oxorciso povor. DiroclIy or indiroclIy, lho uso of povor in infIuoncing bohav-
iour is a porvading foaluro of organizalions, vholhor il is oxorlod by nanagors,
spociaIisls, infornaI groups or lrado union officiaIs.
Iovor is lho capacily lo socuro lho doninanco of ono's goaIs or vaIuos ovor olhors.
Four difforonl lypos of povor havo boon idonlifiod by Fronch and Ravon (1959):
rcucr! pcucr ÷ dorivod fron lho boIiof of individuaIs lhal conpIianco brings
rovards, lho abiIily lo dislribulo rovards conlribulos considorabIy lo an oxocu-
livo's povor,
cccrcitc pcucr ÷ naIing il pIain lhal non-conpIianco viII bring punishnonl,
cxpcri pcucr ÷ oxorcisod by poopIo vho aro popuIar or adnirod and vilh vhon
lho Ioss povorfuI can idonlify,
lcgiiimizc! pcucr ÷ povor conforrod by lho posilion in an organizalion hoId by an
oxoculivo.
FoIitics
Iovor and poIilics aro inoxlricabIy nixod, and in any organizalion lhoro viII
inovilabIy bo poopIo vho vanl lo achiovo lhoir salisfaclion by acquiring povor, Iogil-
inaloIy or iIIogilinaloIy. KaIabadso (1983) dofinos poIilics as á procoss, lhal of infIu-
oncing individuaIs and groups of poopIo lo your poinl of viov, vhoro you cannol roIy
on aulhorily'.
Organizalions consisl of individuaIs vho, vhiIo lhoy aro oslonsibIy lhoro lo
achiovo a connon purposo, aro, al lho sano lino, drivon by lhoir ovn noods lo
achiovo lhoir ovn goaIs. Effoclivo nanagononl is lho procoss of harnonizing indi-
viduaI ondoavour and anbilion lo lho connon good. Sono individuaIs gonuinoIy
boIiovo lhal using poIilicaI noans lo achiovo lhoir goaIs viII bonofil lho organizalion
as voII as lhonsoIvos. Olhors ralionaIizo lhis boIiof. Yol olhors unashanodIy pursuo
lhoir ovn onds.

ConfIicl is inovilabIo in organizalions bocauso lhoy funclion by noans of ad¡uslnonls
and conpronisos anong conpolilivo oIononls in lhoir slrucluro and nonborship.
ConfIicl aIso arisos vhon lhoro is chango, bocauso il nay bo soon as a lhroal lo bo
chaIIongod or rosislod, or vhon lhoro is fruslralion ÷ lhis nay produco an aggrossivo
roaclion, fighl ralhor lhan fIighl. ConfIicl is nol lo bo dopIorod. Il is an inovilabIo
rosuIl of progross and chango and il can and shouId bo usod conslruclivoIy.
ConfIicl bolvoon individuaIs raisos fovor probIons lhan confIicl bolvoon groups.
IndividuaIs can acl indopondonlIy and rosoIvo lhoir difforoncos. Monbors of groups
nay havo lo accopl lho norns, goaIs and vaIuos of lhoir group. Tho individuaI's
IoyaIly viII usuaIIy bo lo his or hor ovn group if il is in confIicl vilh olhors.
ín|crac|íon and nc|vor|íng
Inloraclions bolvoon poopIo criss-cross lho organizalion, croaling nolvorIs for
golling lhings dono and oxchanging infornalion, vhich is nol calorod for in lho
fornaI slrucluro. ŃolvorIing' is an incroasingIy inporlanl procoss in fIoxibIo and
doIayorod organizalions vhoro noro fIuid inloraclions across lho slrucluro aro
roquirod bolvoon individuaIs and loans. IndividuaIs can oflon gol nuch noro dono
by nolvorIing lhan by going lhrough fornaI channoIs. Al Ioasl lhis noans lhal lhoy
can canvass opinion and onIisl supporl lo pronolo lhoir pro¡ocls or idoas and lo sharo
lhoir InovIodgo.
IoopIo aIso gol lhings dono in organizalions by croaling aIIiancos ÷ golling agroo-
nonl on a courso of aclion vilh olhor poopIo and ¡oining forcos lo gol lhings dono.
Communíca|íon·
Tho connunicalions procossos usod in organizalions havo a narIod offocl on hov
lhoy funclion, ospociaIIy if lhoy laIo pIaco lhrough lho nolvorI, vhich can lhon lurn
inlo lho ´grapovino'. E-naiIs in inlranols oncourago lho inslanl fIov of infornalion
(and sonolinos produco infornalion ovorIoad) bul nay inhibil faco-lo-faco inlorac-
lions, vhich aro oflon lho bosl vays of golling lhings dono.
Hov orgunìzutìons lunctìon 30l
Crgunìzutìonuí cuíturo
This chaplor slarls vilh dofinilions of organizalionaI cuIluro and lho associalod
concopl of organizalionaI cIinalo. Tho nolion of nanagononl slyIo as a vay of
doscribing hov nanagors bohavo vilhin lho cuIluro of lhoir organizalions is
aIso dofinod. Tho chaplor conlinuos vilh connonls on lho significanco of lho
concopl lo organizalions and hov cuIluro dovoIops. Tho conpononls of cuIluro and
nolhods of anaIysing and doscribing cuIluro and lho cIinalo aro lhon considorod.
Tho chaplor concIudos vilh a roviov of approachos lo supporling or changing
cuIluros.
DLllNl1lCNS
Crganí2a|íonaí cuí|urc
OrganizalionaI or corporalo cuIluro is lho pallorn of vaIuos, norns, boIiofs, alliludos
and assunplions lhal nay nol havo boon arlicuIalod bul shapo lho vays in vhich
poopIo bohavo and lhings gol dono. VaIuos rofor lo vhal is boIiovod lo bo inporlanl
aboul hov poopIo and lho organizalions bohavo. Norns aro lho unvrillon ruIos of
bohaviour.
Tho dofinilion onphasizos lhal organizalionaI cuIluro is concornod vilh abslrac-
lions such as vaIuos and norns vhich porvado lho vhoIo or parl of an organizalion.

Thoy nay nol bo dofinod, discussod or ovon nolicod. Iul anolhor vay, cuIluro can bo
rogardod as a ćodo vord for lho sub¡oclivo sido of organizalionaI Iifo' (Moyorson and
Marlin, 1987). NovorlhoIoss, cuIluro can havo a significanl infIuonco on poopIo's
bohaviour.
Tho foIIoving aro sono olhor dofinilions of cuIluro:
1ho cuíturo ol un orgunìzutìon rolors to tho unìquo conlìgurutìon ol norms, vuíuos,
boíìols und vuys ol bohuvìng thut chuructorìzo tho munnor ìn vhìch groups und ìndìvìd-
uuís combìno to got thìngs dono.
Lídrídgc and Crombíc ¹1974)
Cuíturo ìs u systom ol ìnlormuí ruíos thut spoíís out hov poopío uro to bohuvo most ol tho
tìmo.
Dcaí and Kcnncd, ¹1982)
Cuíturo ìs tho commoníy hoíd boíìols, uttìtudos und vuíuos thut oxìst ìn un orgunìzutìon.
lut moro sìmpíy, cuíturo ìs ´tho vuy vo do thìngs uround horo'.
furnham and Cun|cr ¹1993)
A systom ol shurod vuíuos und boíìols ubout vhut ìs ìmportunt, vhut bohuvìours uro
ìmportunt und ubout looíìngs und roíutìonshìps ìntornuííy und oxtornuííy.
|urccíí c| aí ¹2003)
Sunning up lho various dofinilions of cuIluro, Furnhan and Gunlor (1993) Iisl,
anongsl olhors, lho foIIoving aroas of agroononl on lho concopl:
Il is difficuIl lo dofino (oflon a poinlIoss oxorciso).
Il is nuIli-dinonsionaI, vilh nany difforonl conpononls al difforonl IovoIs.
Il is nol parlicuIarIy dynanic, and ovor changing (boing roIalivoIy slabIo ovor
shorl poriods of lino).
Il laIos lino lo oslabIish and lhoroforo lino lo chango a corporalo cuIluro.
|robícm· ví|h |hc conccp|
Furnhan and Gunlor rofor lo a nunbor of probIons vilh lho concopl, incIuding:
hov lo calogorizo cuIluro (vhal lorninoIogy lo uso),
vhon and vhy corporalo cuIluro shouId bo changod and hov lhis laIos pIaco,
vhal is lho hoaIlhiosl, nosl oplinaI or dosirabIo cuIluro.
Thoy aIso poinl oul lhal il is dangorous lo lroal cuIluro as an ob¡oclivo onlily ás if
ovoryono in lho vorId vouId bo abIo lo obsorvo lho sano phonononon, vhoroas lhis
is palonlIy nol lho caso'.
Crganí2a|íonaí cííma|c
Tho lorn organizalionaI cIinalo is sonolinos confusod vilh organizalionaI cuIluro
and lhoro has boon nuch dobalo on vhal dislinguishos lho concopl of cIinalo fron
lhal of cuIluro. In his anaIysis of lhis issuo, Donison (1996) boIiovod lhal culiurc rofors
lo lho doop slrucluro of organizalions, vhich is roolod in lho vaIuos, boIiofs and
assunplions hoId by organizalionaI nonbors. In conlrasl, climcic rofors lo lhoso
aspocls of lho onvironnonl lhal aro consciousIy porcoivod by organizalionaI
nonbors. Roussoau (1988) slalod lhal cIinalo is a porcoplion and is doscriplivo.
Iorcoplions aro sonsalions or roaIizalions oxporioncod by an individuaI. Doscriplions
aro vhal a porson roporls of lhoso sonsalions.
Tho dobalo aboul lho noanings of lhoso lorns can bocono acadonic. Il is oasiosl lo
rogard organizalionaI cIinalo as hov poopIo porcoivo (soo and fooI aboul) lho cuIluro
oxisling in lhoir organizalion. As dofinod by Fronch ci cl (1985), il is ´lho roIalivoIy
porsislonl sol of porcoplions hoId by organizalion nonbors concorning lho characlor-
islics and quaIily of organizalionaI cuIluro'. Thoy dislinguish bolvoon lho acluaI silu-
alions (io cuIluro) and lho porcoplion of il (cIinalo).
1HL SlCNlllCANCL Cl CLL1LkL
As Furnhan and Gunlor (1993) suggosl:
Cuíturo roprosonts tho ´socìuí gíuo' und gonorutos u ´vo-looíìng', thus countoructìng
procossos ol dìllorontìutìons vhìch uro un unuvoìdubío purt ol orgunìzutìonuí íìlo.
Crgunìzutìonuí cuíturo ollors u shurod systom ol mounìngs vhìch ìs tho busìs lor commu-
nìcutìons und mutuuí undorstundìng. ll thoso lunctìons uro not luílìííod ìn u sutìsluctory
vuy, cuíturo muy sìgnìlìcuntíy roduco tho ollìcìoncy ol un orgunìzutìon.
IurcoII ci cl (2005) found in lhoir provious rosoarch (2003) lhal in sono organizalions
lhoro vas a corlain sonolhing ÷ chrislonod lho ´big idoa' ÷ lhal soonod lo givo lhon a
conpolilivo odgo. Tho big idoa consislod of a fov vords or slalononls lhal vory
cIoarIy sunnod up lho organizalion, vhal il vas aboul and vhal il vas IiIo lo vorI
lhoro. In lurn lhis onabIod lho organizalion lo nanago ils corporalo cuIluro and oslab-
Iish a sol of sharod vaIuos, vhich rocognizod and roinforcod lho sorl of organizalion il
vanlod lo bo. Thus il vas abIo lo oslabIish a slrong sharod cuIluro vilhin vhich
Crgunìzutìonuí cuíturo 305
parlicuIar praclicos lhal oncouragod bollor porfornanco vouId bo onboddod and
fIourish.
HC\ CkCANlZA1lCNAL CLL1LkL DLVLLClS
Tho vaIuos and norns lhal aro lho basis of cuIluro aro fornod in four vays. Firsl,
cuIluro is fornod by lho Ioadors in lho organizalion, ospociaIIy lhoso vho havo
shapod il in lho pasl. Schoin (1990) indicalos lhal poopIo idonlify vilh visionary
Ioadors ÷ hov lhoy bohavo and vhal lhoy oxpocl. Thoy nolo vhal such Ioadors pay
allonlion lo and lroal lhon as roIo nodoIs. Socond, as Schoin aIso poinls oul, cuIluro
is fornod around crilicaI incidonls ÷ inporlanl ovonls fron vhich Iossons aro Ioarnl
aboul dosirabIo or undosirabIo bohaviour. Third, as proposod by Furnhan and
Gunlor (1993), cuIluro dovoIops fron lho nood lo nainlain offoclivo vorIing roIalion-
ships anong organizalion nonbors, and lhis oslabIishos vaIuos and oxpoclalions.
FinaIIy, cuIluro is infIuoncod by lho organizalion's onvironnonl. Tho oxlornaI onvi-
ronnonl nay bo roIalivoIy dynanic or unchanging.
CuIluro is Ioarnod ovor a poriod of lino. Schoin (1984) slalod lhal lhoro aro lvo
vays in vhich lhis Ioarning laIos pIaco. Firsl, lho lrauna nodoI, in vhich nonbors
of lho organizalion Ioarn lo copo vilh sono lhroal by lho oroclion of dofonco nocha-
nisns. Socond, lho posilivo roinforcononl nodoI, vhoro lhings lhal soon lo vorI
bocono onboddod and onlronchod. Loarning laIos pIaco as poopIo adapl lo and
copo vilh oxlornaI prossuros, and as lhoy dovoIop succossfuI approachos and nocha-
nisns lo handIo lho inlornaI chaIIongos, procossos and lochnoIogios in lhoir organiza-
lion.
Whoro cuIluro has dovoIopod ovor Iong poriods of lino and has bocono firnIy
onboddod, il nay bo difficuIl lo chango quicIIy, if al aII, unIoss a lraunalic ovonl
occurs.
1HL DlVLkSl1Y Cl CLL1LkL
Tho dovoIopnonl procoss doscribod abovo nay rosuIl in a cuIluro lhal characlorizos
lho vhoIo organizalion. Bul lhoro nay bo difforonl cuIluros vilhin organizalions. For
oxanpIo, lho cuIluro of an oulvard-IooIing narIoling doparlnonl nay bo subslan-
liaIIy difforonl fron lhal of an inlornaIIy focusod nanufacluring funclion. Thoro nay
bo sono connon organizalionaI vaIuos or norns, bul in sono rospocls lhoso viII
vary bolvoon difforonl vorI onvironnonls.
1HL CCMlCNLN1S Cl CLL1LkL
OrganizalionaI cuIluro can bo doscribod in lorns of vaIuos, norns, arlofacls and Ioad-
orship or nanagononl slyIo.
Vaíuc·
Schiffnan and KanuI (1994) slalo lhal: ´VaIuos hoIp lo dolornino vhal vo lhinI is
righl or vrong, vhal is inporlanl and vhal is dosirabIo.'
VaIuos aro boIiofs in vhal is bosl or good for lho organizalion and vhal shouId or
oughl lo happon. Tho ´vaIuo sol' of an organizalion nay onIy bo rocognizod al lop
IovoI, or il nay bo sharod lhroughoul lho businoss, in vhich caso il couId bo doscribod
as vaIuo drivon.
Tho slrongor lho vaIuos, lho noro lhoy viII infIuonco bohaviour. This doos nol
dopond upon lhoir having boon arlicuIalod. InpIicil vaIuos lhal aro doopIy onboddod
in lho cuIluro of an organizalion and aro roinforcod by lho bohaviour of nanagononl
can bo highIy infIuonliaI, vhiIo ospousod vaIuos lhal aro idoaIislic and aro nol
rofIoclod in nanagoriaI bohaviour nay havo IillIo or no offocl. Il is ´vaIuos in uso',
vaIuos lhal drivo dosirabIo bohaviour, lhal aro inporlanl.
Sono of lho nosl lypicaI aroas in vhich vaIuos can bo oxprossod, inpIicilIy or
oxpIicilIy, aro:
porfornanco,
conpolonco,
conpolilivonoss,
innovalion,
quaIily,
cuslonor sorvico,
loanvorI,
caro and considoralion for poopIo.
VaIuos aro lransIalod inlo roaIily (onaclod) lhrough ncrms and cricjccis as doscribod
boIov. Thoy nay aIso bo oxprossod lhrough lho nodia of Ianguago (organizalionaI
¡argon), riluaIs, slorios and nylhs.
ôrm·
Norns aro lho unvrillon ruIos of bohaviour, lho ´ruIos of lho gano' lhal provido
infornaI guidoIinos on hov lo bohavo. Norns loII poopIo vhal lhoy aro supposod lo
bo doing, saying, boIioving, ovon voaring. Thoy aro novor oxprossod in vriling ÷ if
lhoy voro, lhoy vouId bo poIicios or procoduros. Thoy aro passod on by vord of
noulh or bohaviour and can bo onforcod by lho roaclions of poopIo if lhoy aro
vioIalod. Thoy can oxorl vory povorfuI prossuro on bohaviour bocauso of lhoso roac-
lions ÷ vo conlroI olhors by lho vay vo roacl lo lhon.
Norns rofor lo such aspocls of bohaviour as:
hov nanagors lroal lho nonbors of lhoir loans (nanagononl slyIo) and hov lho
Iallor roIalo lo lhoir nanagors,
lho provaiIing vorI olhic, og ´vorI hard, pIay hard', ćono in oarIy, slay Ialo', íf
you cannol finish your vorI during businoss hours you aro obviousIy inofficionl',
ÍooI busy al aII linos', ÍooI roIaxod al aII linos',
slalus ÷ hov nuch inporlanco is allachod lo il, lho oxislonco or IacI of obvious
slalus synboIs,
anbilion ÷ naIod anbilion is oxpoclod and approvod of, or a noro sublIo
approach is lho norn,
porfornanco ÷ oxacling porfornanco slandards aro gonoraI, lho highosl praiso
lhal can bo givon in lho organizalion is lo bo roforrod lo as vory profossionaI,
povor ÷ rocognizod as a vay of Iifo, oxoculod by poIilicaI noans, dopondonl on
oxporliso and abiIily ralhor lhan posilion, conconlralod al lho lop, sharod al
difforonl IovoIs in difforonl parls of lho organizalion,
poIilics ÷ rifo lhroughoul lho organizalion and lroalod as nornaI bohaviour, nol
accoplod as ovorl bohaviour,
IoyaIly ÷ oxpoclod, a cradIo lo gravo approach lo caroors, discounlod, lho
onphasis is on rosuIls and conlribulion in lho shorl lorn,
angor ÷ oponIy oxprossod, hiddon, bul oxprossod lhrough olhor, possibIy poIilicaI,
noans,
approachabiIily ÷ nanagors aro oxpoclod lo bo approachabIo and visibIo, ovory-
lhing happons bohind cIosod doors,
fornaIily ÷ a cooI, fornaI approach is lho norn, foronanos aro/aro nol usod al aII
IovoIs, lhoro aro unvrillon bul cIoarIy undorslood ruIos aboul dross.

Arlofacls aro lho visibIo and langibIo aspocls of an organizalion lhal poopIo hoar, soo
or fooI. Arlofacls can incIudo such lhings as lho vorIing onvironnonl, lho lono and
Ianguago usod in Iollors or nonoranda, lho nannor in vhich poopIo addross oach
olhor al noolings or ovor lho loIophono, lho voIcono (or IacI of voIcono) givon lo
visilors and lho vay in vhich loIophonisls doaI vilh oulsido caIIs. Arlofacls can bo
vory rovoaIing.
tcadcrsbip styIc
Loadorship slyIo, oflon caIIod nanagononl slyIo, doscribos lho approach nanagors
uso lo doaI vilh poopIo in lhoir loans. Thoro aro nany slyIos of Ioadorship, and
Ioadors can bo cIassifiod in oxlronos as foIIovs:
C|crismciicfncn-c|crismciic. Charisnalic Ioadors roIy on lhoir porsonaIily, lhoir
inspiralionaI quaIilios and lhoir áura'. Thoy aro visionary Ioadors vho aro
achiovononl-orionlod, caIcuIalod risI-laIors and good connunicalors. Non-
charisnalic Ioadors roIy nainIy on lhoir Inov-hov (aulhorily goos lo lho porson
vho Inovs), lhoir quiol confidonco and lhoir cooI, anaIylicaI approach lo doaIing
vilh probIons.
Auiccrciic-!cmccrciic. Aulocralic Ioadors inposo lhoir docisions, using lhoir posi-
lion lo forco poopIo lo do as lhoy aro loId. Donocralic Ioadors oncourago poopIo lo
parlicipalo and invoIvo lhonsoIvos in docision-laIing.
|nc|lcr-ccnircllcr. EnabIors inspiro poopIo vilh lhoir vision of lho fuluro and
onpovor lhon lo acconpIish loan goaIs. ConlroIIors nanipuIalo poopIo lo
oblain lhoir conpIianco.
1rcnscciicncl-ircnsjcrmciicncl. TransaclionaI Ioadors lrado nonoy, ¡obs and socu-
rily for conpIianco. TransfornalionaI Ioadors nolivalo poopIo lo slrivo for highor-
IovoI goaIs.
Mosl nanagors adopl an approach sonovhoro bolvoon lho oxlronos. Sono viII vary
il according lo lho silualion or lhoir fooIings al lho lino, olhors viII slicI lo lho sano
slyIo vhalovor happons. A good caso can bo nado for using an approprialo slyIo
according lo lho silualion, bul il is undosirabIo lo bo inconsislonl in lho slyIo usod in
siniIar silualions. Evory nanagor has his or hor ovn slyIo bul lhis viII bo infIuoncod
by lho organizalionaI cuIluro, vhich nay produco a provaiIing nanagononl slyIo
lhal roprosonls lho bohaviouraI norn for nanagors lhal is gonoraIIy oxpoclod and
adoplod.
CLASSllYlNC CkCANlZA1lCNAL CLL1LkL
Thoro havo boon nany allonpls lo cIassify or calogorizo organizalionaI cuIluro as a
basis for lho anaIysis of cuIluros in organizalions and for laIing aclion lo supporl or
chango lhon. Mosl of lhoso cIassificalions aro oxprossod in four dinonsions and sono
of lho bosl-Inovn onos aro sunnarizod boIov.
Harrí·on
Harrison (1972) calogorizod vhal ho caIIod órganizalion idooIogios'. Thoso aro:
pcucr-cricnicic! ÷ conpolilivo, rosponsivo lo porsonaIily ralhor lhan oxporliso,
pccplc-cricnicic! ÷ consonsuaI, nanagononl conlroI ro¡oclod,
ics|-cricnicic! ÷ focus on conpoloncy, dynanic,
rclc-cricnicic! ÷ focus on IogaIily, Iogilinacy and buroaucracy.
Hand,
Handy (1981) basod his lypoIogy on Harrison's cIassificalion, aIlhough Handy
proforrod lho vord ćuIluro' lo ídooIogy' as cuIluro convoyod noro of lho fooIing of a
porvasivo vay of Iifo or sol of norns. His four lypos of cuIluro aro:
Tho pcucr culiurc is ono vilh a conlraI povor sourco lhal oxorcisos conlroI. Thoro
aro fov ruIos or procoduros and lho alnosphoro is conpolilivo, povor-orionlalod
and poIilicaI.
Tho rclc culiurc is ono in vhich vorI is conlroIIod by procoduros and ruIos and lho
roIo, or ¡ob doscriplion, is noro inporlanl lhan lho porson vho fiIIs il. Iovor is
associalod vilh posilions, nol poopIo.
Tho ics| culiurc is ono in vhich lho ain is lo bring logolhor lho righl poopIo and Iol
lhon gol on vilh il. InfIuonco is basod noro on oxporl povor lhan on posilion or
porsonaI povor. Tho cuIluro is adaplabIo and loanvorI is inporlanl.
Tho pcrscn culiurc is ono in vhich lho individuaI is lho conlraI poinl. Tho organi-
zalion oxisls onIy lo sorvo and assisl lho individuaIs in il.
Schcín
Schoin (1985) idonlifiod lho foIIoving four cuIluros:
Tho pcucr culiurc is ono in vhich Ioadorship rosidos in a fov and rosls on lhoir
abiIily and vhich londs lo bo onlropronouriaI.
Tho rclc culiurc is ono in vhich povor is baIancod bolvoon lho Ioador and lho
buroaucralic slrucluro. Tho onvironnonl is IiIoIy lo bo slabIo and roIos and ruIos
aro cIoarIy dofinod.
Tho cc|ictcmcni culiurc is ono in vhich porsonaI nolivalion and connilnonl aro
slrossod and aclion, oxcilononl and inpacl aro vaIuod.
Tho suppcri culiurc is ono in vhich poopIo conlribulo oul of a sonso of connil-
nonl and soIidarily. RoIalionships aro characlorizod by nuluaIily and lrusl.
3l0 Crgunìzutìonuí bohuvìour
Vííííam·, Dob·on and Vaí|cr·
WiIIians ci cl (1989) rodofinod lho four calogorios Iislod by Harrison and Handy as
foIIovs:
Pcucr cricniciicn ÷ organizalions lry lo doninalo lhoir onvironnonl and lhoso
oxorcising povor slrivo lo nainlain absoIulo conlroI ovor subordinalos.
Rclc cricniciicn onphasizos IogaIily, Iogilinacy and rosponsibiIily. Hiorarchy and
slalus aro inporlanl.
1cs| cricniciicn focusos on lasI acconpIishnonl. Aulhorily is basod on appro-
prialo InovIodgo and conpolonco.
Pccplc cricniciicn ÷ lho organizalion oxisls prinariIy lo sorvo lho noods of ils
nonbors. IndividuaIs aro oxpoclod lo infIuonco oach olhor lhrough oxanpIo and
hoIpfuInoss.
ASSLSSlNC CkCANlZA1lCNAL CLL1LkL
A nunbor of inslrunonls oxisl for assossing organizalionaI cuIluro. This is nol oasy
bocauso cuIluro is concornod vilh bolh sub¡oclivo boIiofs and unconscious assunp-
lions (vhich nighl bo difficuIl lo noasuro), and vilh obsorvod phononona such as
bohaviouraI norns and arlofacls. Tvo of lho bollor-Inovn inslrunonls aro sunna-
rizod boIov.
Crganí2a|íonaí ídcoíog, quc·|íonnaírc ¹Harrí·on, 1972)
This quoslionnairo doaIs vilh lho four orionlalions roforrod lo oarIior (povor, roIo,
lasI, soIf). Tho quoslionnairo is conpIolod by ranIing slalononls according lo viovs
on vhal is cIososl lo lho organizalion's acluaI posilion. Slalononls incIudo:
A good boss is slrong, docisivo and firn bul fair.
A good subordinalo is conpIianl, hard-vorIing and IoyaI.
IoopIo vho do voII in lho organizalion aro shrovd and conpolilivo, vilh a slrong
nood for povor.
Tho basis of lasI assignnonl is lho porsonaI noods and ¡udgononls of lhoso in
aulhorily.
Docisions aro nado by poopIo vilh lho nosl InovIodgo and oxporliso aboul lho
probIon.
Crgunìzutìonuí cuíturo 3ll
Crganí2a|íonaí cuí|urc ínvcn|or, ¹Coo|c and Laffcr|,, 1989)
This inslrunonl assossos organizalionaI cuIluro undor 12 hoadings:
1. Humcnisiic-|clpjul ÷ organizalions nanagod in a parlicipalivo and porson-
conlrod vay.
2. Ajjiliciitc ÷ organizalions lhal pIaco a high priorily on conslruclivo roIalionships.
3. Apprctcl ÷ organizalions in vhich confIicls aro avoidod and inlorporsonaI roIa-
lionships aro pIoasanl ÷ al Ioasl suporficiaIIy.
4. Ccntcniicncl ÷ consorvalivo, lradilionaI and buroaucralicaIIy conlroIIod organi-
zalions.
5. Dcpcn!cni ÷ hiorarchicaIIy conlroIIod and non-parlicipalivo organizalions.
6. Atci!cncc ÷ organizalions lhal faiI lo rovard succoss bul punish nislaIos.
7. Oppcsiiicncl ÷ organizalions in vhich confronlalion provaiIs and nogalivisn is
rovardod.
8. Pcucr ÷ organizalions slruclurod on lho basis of lho aulhorily inhoronl in
nonbors' posilions.
9. Ccmpciiiitc ÷ a cuIluro in vhich vinning is vaIuod and nonbors aro rovardod
for oul-porforning ono anolhor.
10. Ccmpcicnccfpcrjcciicnisi ÷ organizalions in vhich porfoclionisn, porsislonco and
hard vorI aro vaIuod.
11. Ac|ictcmcni ÷ organizalions lhal do lhings voII and vaIuo nonbors vho sol and
acconpIish chaIIonging bul roaIislic goaIs.
12. Sclj-cciuclizciicn ÷ organizalions lhal vaIuo croalivily, quaIily ovor quanlily, and
bolh lasI acconpIishnonl and individuaI grovlh.
MLASLklNC CkCANlZA1lCNAL CLlMA1L
OrganizalionaI cIinalo noasuros allonpls lo assoss organizalions in lorns of dinon-
sions lhal aro lhoughl lo capluro or doscribo porcoplions aboul lho cIinalo.
Iorcoplions aboul cIinalo can bo noasurod by quoslionnairos such as lhal dovoIopod
by Lilvin and Slringor (1968) vhich covors oighl calogorios:
1. Siruciurc ÷ fooIings aboul conslrainls and froodon lo acl and lho dogroo of
fornaIily or infornaIily in lho vorIing alnosphoro.
2. Rcspcnsi|iliiq ÷ lho fooIing of boing lruslod lo carry oul inporlanl vorI.
3. Ris| ÷ lho sonso of risIinoss and chaIIongo in lho ¡ob and in lho organizalion, lho
roIalivo onphasis on laIing caIcuIalod risIs or pIaying il safo.
4. Wcrmi| ÷ lho oxislonco of friondIy and infornaI sociaI groups.
5. Suppcri ÷ lho porcoivod hoIpfuInoss of nanagors and co-vorIors, lho onphasis
(or IacI of onphasis) on nuluaI supporl.
6. Sicn!cr!s ÷ lho porcoivod inporlanco of inpIicil and oxpIicil goaIs and porfor-
nanco slandards, lho onphasis on doing a good ¡ob, lho chaIIongo roprosonlod in
porsonaI and loan goaIs.
7. Ccnjlici ÷ lho fooIing lhal nanagors and olhor vorIors vanl lo hoar difforonl
opinions, lho onphasis on golling probIons oul inlo lho opon ralhor lhan
snoolhing lhon ovor or ignoring lhon.
8. l!cniiiq ÷ lho fooIing lhal you boIong lo a conpany, lhal you aro a vaIuabIo
nonbor of a vorIing loan.
Aroviov of a nunbor of quoslionnairos vas carriod oul by Koys and Do Coliis (1991),
vhich producod lho foIIoving oighl lypicaI dinonsions:
cuicncmq ÷ lho porcoplion of soIf-dolorninalion vilh rospocl lo vorI procoduros,
goaIs and priorilios,
cc|csicn ÷ lho porcoplion of logolhornoss or sharing vilhin lho organizalion
solling, incIuding lho viIIingnoss of nonbors lo provido naloriaI risI,
irusi ÷ lho porcoplion of froodon lo connunicalo oponIy vilh nonbors al highor
organizalionaI IovoIs aboul sonsilivo or porsonaI issuos, vilh lho oxpoclalion lhal
lho inlogrily of such connunicalions viII nol bo vioIalod,
rcscurcc ÷ lho porcoplion of lino donands vilh rospocl lo lasI conpolilion and
porfornanco slandards,
suppcri ÷ lho porcoplion of lho dogroo lo vhich suporiors loIoralo nonbors'
bohaviour, incIuding viIIingnoss lo Iol nonbors Ioarn fron lhoir nislaIos
vilhoul foar of roprisaI,
rcccgniiicn ÷ lho porcoplion lhal nonbors' conlribulions lo lho organizalion aro
acInovIodgod,
jcirncss ÷ lho porcoplion lhal organizalionaI poIicios aro non-arbilrary or capri-
cious,
innctciicn ÷ lho porcoplion lhal chango and croalivily aro oncouragod, incIuding
risI-laIing inlo nov aroas vhoro lho nonbor has IillIo or no prior oxporionco.
AllkClklA1L CLL1LkLS
Il couId bo arguod lhal a ´good' cuIluro oxorls a posilivo infIuonco on organizalionaI
bohaviour. Il couId hoIp lo croalo a ´high-porfornanco' cuIluro, ono lhal viII produco
a high IovoI of businoss porfornanco. As doscribod by Furnhan and Gunlor (1993), á
Crgunìzutìonuí cuíturo 3l3
good cuIluro is consislonl in ils conpononls and sharod anongsl organizalionaI
nonbors, and il naIos lho organizalion uniquo, lhus difforonlialing il fron olhor
organizalions'.
Hovovor, a high-porfornanco cuIluro noans IillIo noro lhan any cuIluro lhal viII
produco a high IovoI of businoss porfornanco. Tho allribulos of cuIluros vary lronon-
dousIy by conloxl. Tho quaIilios of a high-porfornanco cuIluro for an oslabIishod
rolaiI chain, a groving sorvico businoss and a consunor producls conpany lhal is
Iosing narIol sharo nay bo vory difforonl. Furlhor, in addilion lo conloxl difforoncos,
aII cuIluros ovoIvo ovor lino. CuIluros lhal aro ´good' in ono sol of circunslancos or
poriod of lino nay bo dysfunclionaI in difforonl circunslancos or difforonl linos.
Bocauso cuIluro is dovoIopod and nanifosls ilsoIf in difforonl vays in difforonl
organizalions, il is nol possibIo lo say lhal ono cuIluro is bollor lhan anolhor, onIy lhal
il is dissiniIar in corlain vays. Thoro is no such lhing as an idoaI cuIluro, onIy an
approprialo cuIluro. This noans lhal lhoro can bo no univorsaI proscriplion for
nanaging cuIluro, aIlhough lhoro aro corlain approachos lhal can bo hoIpfuI, as
doscribod in lho noxl soclion.
SLllCk1lNC AND CHANClNC CLL1LkLS
WhiIo il nay nol bo possibIo lo dofino an idoaI slrucluro or lo proscribo hov il can bo
dovoIopod, il can al Ioasl bo slalod vilh confidonco lhal onboddod cuIluros oxorl
considorabIo infIuonco on organizalionaI bohaviour and lhoroforo porfornanco. If
lhoro is an approprialo and offoclivo cuIluro il vouId bo dosirabIo lo laIo slops lo
supporl or roinforco il. If lho cuIluro is inapproprialo, allonpls shouId bo nado lo
dolornino vhal noods lo bo changod and lo dovoIop and inpIononl pIans for
chango.
Cuí|urc anaí,·í·
In oilhor caso, lho firsl slop is lo anaIyso lho oxisling cuIluro. This can bo dono lhrough
quoslionnairos, survoys and discussions in focus groups or vorIshops. Il is oflon
hoIpfuI lo invoIvo poopIo in anaIysing lho oulcono of survoys, golling lhon lo
produco a diagnosis of lho cuIluraI issuos facing lho organizalion and parlicipalo in
lho dovoIopnonl and inpIononlalion of pIans and progrannos lo doaI vilh any
issuos. This couId forn parl of an organizalionaI dovoIopnonl progranno as
doscribod in Chaplor 24. Groups can anaIyso lho cuIluro lhrough lho uso of noasuro-
nonl inslrunonls. Exlra dinonsions can bo oslabIishod by lho uso of group oxorcisos
such as ´ruIos of lho cIub' (parlicipanls brainslorn lho ´ruIos' or norns lhal govorn
bohaviour) or ´shioId' (parlicipanls dosign a shioId, oflon quarlorod, vhich iIIuslralos
na¡or cuIluraI foaluros of lho organizalion). }oinl oxorcisos IiIo lhis can Ioad lo discus-
sions on approprialo vaIuos, vhich aro nuch noro IiIoIy lo bo óvnod' by poopIo if
lhoy havo hoIpod lo croalo lhon ralhor lhan having lhon inposod fron abovo.
WhiIo invoIvononl is highIy dosirabIo, lhoro viII bo silualions vhon nanagononl
has lo carry oul lho anaIysis and dolornino lho aclions roquirod vilhoul lho iniliaI
parlicipalion of onpIoyoos. Bul lho Iallor shouId bo Iopl infornod and broughl inlo
discussion on dovoIopnonls as soon as possibIo.
Cuí|urc ·uppor| and rcínforccmcn|
CuIluro supporl and roinforcononl progrannos ain lo prosorvo and undorpin vhal
is good and funclionaI aboul lho prosonl cuIluro. Schoin (1985) has suggoslod lhal lho
nosl povorfuI prinary nochanisns for cuIluro onbodding and roinforcononl aro:
vhal Ioadors pay allonlion lo, noasuro and conlroI,
Ioadors' roaclions lo crilicaI incidonls and crisos,
doIiboralo roIo nodoIIing, loaching and coaching by Ioadors,
criloria for aIIocalion of rovards and slalus,
criloria for rocruilnonl, soIoclion, pronolion and connilnonl.
Olhor noans of undorpinning lho cuIluro aro:
ro-affirning oxisling vaIuos,
oporalionaIizing vaIuos lhrough aclions dosignod, for oxanpIo, lo inpIononl
lolaI quaIily and cuslonor caro progrannos, lo provido financiaI and non-finan-
ciaI rovards for oxpoclod bohaviour, lo inprovo produclivily, lo pronolo and
rovard good loanvorI, lo dovoIop a Ioarning organizalion (soo Chaplor 36),
using lho vaIuo sol as hoadings for rovioving individuaI and loan porfornanco ÷
onphasizing lhal poopIo aro oxpoclod lo uphoId lho vaIuos,
onsuring lhal induclion procoduros covor coro vaIuos and hov poopIo aro
oxpoclod lo achiovo lhon,
roinforcing induclion lraining on furlhor lraining coursos sol up as parl of a
conlinuous dovoIopnonl progranno.
Cuí|urc changc

In lhoory, cuIluro chango progrannos slarl vilh an anaIysis of lho oxisling cuIluro.
Tho dosirod cuIluro is lhon dofinod, vhich Ioads lo lho idonlificalion of a ćuIluro gap'
Crgunìzutìonuí cuíturo 3l5
lhal noods lo bo fiIIod. This anaIysis can idonlify bohaviouraI oxpoclalions so lhal
dovoIopnonl and rovard procossos can bo usod lo dofino and roinforco lhon. In roaI
Iifo, il is nol quilo as sinpIo as lhal.
A conprohonsivo chango progranno nay bo a fundanonlaI parl of an organiza-
lionaI lransfornalion progranno as doscribod in Chaplor 24. Bul cuIluro chango
progrannos can focus on parlicuIar aspocls of lho cuIluro, for oxanpIo porfornanco,
connilnonl, quaIily, cuslonor sorvico, loanvorI, organizalionaI Ioarning. In oach
caso lho undorpinning vaIuos vouId nood lo bo dofinod. Il vouId probabIy bo nocos-
sary lo priorilizo by dociding vhich aroas nood lho nosl urgonl allonlion. Thoro is a
Iinil lo hov nuch can bo dono al onco oxcopl in crisis condilions.
tcvcrs for cbangc
Having idonlifiod vhal noods lo bo dono, and lho priorilios, lho noxl slop is lo
considor vhal Iovors for chango oxisl and hov lhoy can bo usod. Tho Iovors couId
incIudo, as approprialo:
pcrjcrmcncc ÷ porfornanco-roIalod or conlribulion-roIalod pay schonos, porfor-
nanco nanagononl procossos, gainsharing, Ioadorship lraining, sIiIIs dovoIop-
nonl,
ccmmiimcni ÷ connunicalion, parlicipalion and invoIvononl progrannos,
dovoIoping a cIinalo of cooporalion and lrusl, cIarifying lho psychoIogicaI
conlracl,
¡ucliiq ÷ lolaI quaIily and conlinuous inprovononl progrannos,
cusicmcr scrticc ÷ cuslonor caro progrannos,
iccmucr| ÷ loan buiIding, loan porfornanco nanagononl, loan rovards,
crgcnizciicncl lccrning ÷ laIing slops lo onhanco inloIIocluaI capilaI and lho organi-
zalion's rosourco-basod capabiIily by dovoIoping a Ioarning organizalion,
tclucs ÷ gaining undorslanding, accoplanco and connilnonl lhrough invoIvo-
nonl in dofining vaIuos, porfornanco nanagononl procossos and onpIoyoo
dovoIopnonl inlorvonlions.
Cbangc managcmcnt
Tho offoclivonoss of cuIluro chango progrannos IargoIy doponds on lho quaIily of
chango nanagononl procossos. Thoso aro doscribod in Chaplor 24.
Crgunìzutìon, dosìgn und
dovoíopmont
1|is pcri is ccnccrnc! uii| i|c prcciiccl cpplicciicns cj crgcnizciicncl |c|cticur
i|ccrq. li sicris |q lcc|ing ci i|c prcccsscs cj crgcnizciicncl !csign cn! !ctclcpmcni
cn! i|cn !ccls uii| jc| cn! rclc !ctclcpmcni.
 
Crgunìzutìon dosìgn
Tho nanagononl of poopIo in organizalions conslanlIy raisos quoslions such as ´Who
doos vhal`', ´Hov shouId aclivilios bo groupod logolhor`', ´Whal Iinos and noans of
connunicalion nood lo bo oslabIishod`', ´Hov shouId poopIo bo hoIpod lo undor-
sland lhoir roIos in roIalion lo lho ob¡oclivos of lho organizalion and lho roIos of lhoir
coIIoaguos`', Áro vo doing ovorylhing lhal vo oughl lo bo doing and nolhing lhal
vo oughl nol lo bo doing`' and ´Havo vo gol loo nany unnocossary Iayors of
nanagononl in lho organizalion`'
Thoso aro quoslions invoIving poopIo vhich nusl concorn HR praclilionors in lhoir
capacily of hoIping lho businoss lo naIo lho bosl uso of ils poopIo. HR spociaIisls
shouId bo abIo lo conlribulo lo lho procossos of organizalion dosign or rodosign as
doscribod boIov bocauso of lhoir undorslanding of lho faclors affocling organiza-
lionaI bohaviour and bocauso lhoy aro in a posilion lo laIo an ovoraII viov of hov lho
businoss is organizod, vhich il is difficuIl for lho hoads of olhor funclionaI doparl-
nonls lo oblain.
1HL lkCCLSS Cl CkCANlZlNC
Tho procoss of organizing can bo doscribod as lho dosign, dovoIopnonl and nainlo-
nanco of a syslon of coordinalod aclivilios in vhich individuaIs and groups of poopIo

vorI cooporalivoIy undor Ioadorship lovards connonIy undorslood and accoplod
goaIs. Tho Ioy vord in lhal dofinilion is ´syslon'. Organizalions aro syslons vhich,
as affoclod by lhoir onvironnonl, havo a slrucluro vhich has bolh fornaI and
infornaI oIononls.
Tho procoss of organizing nay invoIvo lho grand dosign or rodosign of lho lolaI
slrucluro, bul nosl froquonlIy il is concornod vilh lho organizalion of parlicuIar func-
lions and aclivilios and lho basis upon vhich lho roIalionships bolvoon lhon aro
nanagod.
Organizalions aro nol slalic lhings. Changos aro conslanlIy laIing pIaco in lho busi-
noss ilsoIf, in lho onvironnonl in vhich lho businoss oporalos, and in lho poopIo vho
vorI in lho businoss. Thoro is no such lhing as an ídoaI' organizalion. Tho nosl lhal
can bo dono is lo oplinizo lho procossos invoIvod, rononboring lhal vhalovor slruc-
luro ovoIvos il viII bo conlingonl on lho onvironnonlaI circunslancos of lho organi-
zalion, and ono of lho ains of organizalion is lo achiovo lho ´bosl fil' bolvoon lho
slrucluro and lhoso circunslancos.
An inporlanl poinl lo boar in nind is lhal organizalions consisl of poopIo vorIing
noro or Ioss cooporalivoIy logolhor. InovilabIy, and ospociaIIy al nanagoriaI IovoIs,
lho organizalion nay havo lo bo ad¡uslod lo fil lho parlicuIar slronglhs and allribulos
of lho poopIo avaiIabIo. Tho rosuIl nay nol conforn lo lho idoaI, bul il is noro IiIoIy
lo vorI lhan a slrucluro lhal ignoros lho hunan oIononl. Il is aIvays dosirabIo lo
havo an idoaI slrucluro in nind, bul il is oquaIIy dosirabIo lo nodify il lo nool parlic-
uIar circunslancos, as Iong as lhoro is avaronoss of lho polonliaI probIons lhal nay
ariso. This nay soon an obvious poinl, bul il is froquonlIy ignorod by nanagononl
consuIlanls and olhors vho adopl a doclrinairo approach lo organizalion, oflon vilh
disaslrous rosuIls.
AlM
Boaring in nind lho nood lo laIo an onpiricaI and conlingonl approach lo organizing,
as suggoslod abovo, lho ain of organizalion dosign couId bo dofinod as boing lo
 lho arrangononls for conducling lho affairs of lho businoss. To do lhis il is
nocossary, as far as circunslancos aIIov, lo:
cIarify lho ovoraII purposos of lho organizalion ÷ lho slralogic lhrusls lhal govorn
vhal il doos and hov il funclions,
dofino as procisoIy as possibIo lho Ioy aclivilios roquirod lo achiovo lhal purposo,
group lhoso aclivilios IogicaIIy logolhor lo avoid unnocossary ovorIap or dupIica-
lion,
320 Crgunìzutìon, dosìgn und dovoíopmont
provido for lho inlogralion of aclivilios and lho achiovononl of cooporalivo offorl
and loanvorI in pursuil of a connon purposo,
buiId fIoxibiIily inlo lho syslon so lhal organizalionaI arrangononls can adapl
quicIIy lo nov silualions and chaIIongos,
provido for lho rapid connunicalion of infornalion lhroughoul lho organizalion,
dofino lho roIo and funclion of oach organizalionaI unil so lhal aII concornod
Inov hov il pIays ils parl in achioving lho ovoraII purposo,
cIarify individuaI roIos, accounlabiIilios and aulhorilios,
dosign ¡obs lo naIo lho bosl uso of lho sIiIIs and capacilios of lho ¡ob hoIdors and
lo provido lhon vilh high IovoIs of inlrinsic nolivalion (¡ob dosign is considorod
in Chaplor 23),
pIan and inpIononl organizalion dovoIopnonl aclivilios lo onsuro lhal lho
various procossos vilhin lho organizalion oporalo in a nannor lhal conlribulos lo
organizalionaI offoclivonoss,
sol up loans and pro¡ocl groups as roquirod lo bo rosponsibIo for spocific
procossing, dovoIopnonl, profossionaI or adninislralivo aclivilios or for lho
conducl of pro¡ocls.
CCNDLC1lNC CkCANlZA1lCN kLVlL\S
Organizalion roviovs aro conduclod in lho foIIoving slagos:
1. An cnclqsis, as doscribod boIov, of lho oxisling arrangononls and lho faclors lhal
nay affocl lho organizalion nov and in lho fuluro.
2. A !icgncsis of vhal noods lo bo dono lo inprovo lho vay in vhich lho organiza-
lion is slruclurod and funclions.
3. A plcn lo inpIononl any rovisions lo lho slrucluro onorging fron lho diagnosis,
possibIy in phasos. Tho pIan nay incIudo Iongor-lorn considoralions aboul lho
slrucluro and lho lypo of nanagors and onpIoyoos vho viII bo roquirod lo
oporalo vilhin il.
4. lmplcmcniciicn of lho pIan.
CkCANlZA1lCN ANALYSlS
Tho slarling poinl for an organizalion roviov is an anaIysis of lho oxisling circun-
slancos, slrucluro and procossos of lho organizalion and an assossnonl of lho slralogic
issuos lhal nighl affocl il in lho fuluro. This covors:
Crgunìzutìon dosìgn 32l
Tho cxicrncl cntircnmcni. Tho ocononic, narIol and conpolilivo faclors lhal nay
affocl lho organizalion. IIans for producl-narIol dovoIopnonl viII bo significanl.
Tho inicrncl cntircnmcni. Tho nission, vaIuos, organizalion cIinalo, nanagononl
slyIo, lochnoIogy and procossos of lho organizalion as lhoy affocl lho vay il func-
lions and shouId bo slruclurod lo carry oul lhoso funclions. TochnoIogicaI dovoI-
opnonls in such aroas as coIIuIar nanufacluring nay bo parlicuIarIy inporlanl as
voII as lho inlroduclion of nov procossos such as ¡usl-in-lino or lho dovoIopnonl
of an onliroIy nov conpulor syslon.
Sircicgic issucs cn! c|jcciitcs. As a bacIground lo lho sludy il is nocossary lo idon-
lify lho slralogic issuos facing lho organizalion and ils ob¡oclivos. Thoso nay bo
considorod undor such hoadings as grovlh, conpolilion and narIol posilion and
slanding. Issuos concorning lho avaiIabiIily of lho roquirod hunan, financiaI and
physicaI rosourcos vouId aIso havo lo bo considorod.
Aciitiiics. Aclivily anaIysis oslabIishos vhal vorI is dono and vhal noods lo bo
dono in lho organizalion lo achiovo ils ob¡oclivos vilhin ils onvironnonl. Tho
anaIysis shouId covor vhal is and is nol boing dono, vho is doing il and vhoro,
and hov nuch is boing dono. An ansvor is nocossary lo lho Ioy quoslions: Áro
aII lho aclivilios roquirod proporIy calorod for`', Áro lhoro any unnocossary acliv-
ilios boing carriod oul, io lhoso lhal do nol nood lo bo dono al aII or lhoso lhal
couId bo conduclod noro ocononicaIIy and officionlIy by oxlornaI conlraclors or
providors`'
Siruciurc. Tho anaIysis of slrucluro covors hov aclivilios aro groupod logolhor, lho
nunbor of IovoIs in lho hiorarchy, lho oxlonl lo vhich aulhorily is doconlraIizod lo
divisions and slralogic businoss unils (SBUs), vhoro funclions such as financo,
porsonnoI and rosoarch and dovoIopnonl aro pIacod in lho slrucluro (og as conlraI
funclions or inlogralod inlo divisions or SBUs) and lho roIalionships lhal oxisl
bolvoon difforonl unils and funclions (vilh parlicuIar allonlion boing givon lo lho
vay in vhich lhoy connunicalo and cooporalo vilh ono anolhor). Allonlion
vouId bo paid lo such issuos as lho Iogic of lho vay in vhich aclivilios aro
groupod and doconlraIizod, lho span of conlroI nanagors (lho nunbor of soparalo
funclions or poopIo lhoy aro diroclIy rosponsibIo for), any ovorIap bolvoon func-
lions or gaps Ioading lo lho nogIocl of corlain aclivilios, and lho oxislonco of
unnocossary doparlnonls, unils, funclions or Iayors of nanagononl.
CkCANlZA1lCN DlACNCSlS
Tho diagnosis shouId bo basod on lho anaIysis and an agroononl by lhoso concornod
vilh vhal lho ains of lho organizalion shouId bo. Tho prosonl arrangononls can bo
considorod againsl lhoso ains and fuluro roquirononls lo assoss lho oxlonl lo vhich
lhoy nool lhon or faII shorl.
Il is vorlh ropoaling lhal lhoro aro no absoIulo slandards againsl vhich an organi-
zalion slrucluro can bo ¡udgod. Thoro is novor ono righl vay of organizing anylhing
and lhoro aro no absoIulo principIos lhal govorn organizalionaI choico. Tho fashion
for doIayoring organizalions has nuch lo connond il, bul il can go loo far, Ioaving
unils and individuaIs adrifl vilhoul any cIoar guidanco on vhoro lhoy fil inlo lho
slrucluro and hov lhoy shouId vorI vilh ono anolhor, and naIing lho nanagononl
lasI of coordinaling aclivilios noro difficuIl.
Crganí2a|íon guídcíínc·
Thoro aro no ´ruIos' or ´principIos' of organizalion bul lhoro aro corlain guidoIinos lhal
aro vorlh boaring in nind in an organizalion sludy. Thoso aro:
Allccciicn cj ucr|. Tho vorI lhal has lo bo dono shouId bo dofinod and aIIocalod lo
funclions, unils, doparlnonls, vorI loans, pro¡ocl groups and individuaI posi-
lions. RoIalod aclivilios shouId bo groupod logolhor, bul lho onphasis shouId bo
on procoss ralhor lhan hiorarchy, laIing inlo accounl lho nood lo nanago
procossos lhal invoIvo a nunbor of difforonl vorI unils or loans.
Dijjcrcniiciicn cn! inicgrciicn. Il is nocossary lo difforonlialo bolvoon lho difforonl
aclivilios lhal havo lo bo carriod oul, bul il is oquaIIy nocossary lo onsuro lhal
lhoso aclivilios aro inlogralod so lhal ovoryono in lho organizalion is vorIing
lovards lho sano goaIs.
1ccmucr|. }obs shouId bo dofinod and roIos doscribod in vays lhal faciIilalo and
undorIino lho inporlanco of loanvorI. Aroas vhoro cooporalion is roquirod
shouId bo onphasizod. Tho organizalion shouId bo dosignod and oporalod across
doparlnonlaI or funclionaI boundarios. Whorovor possibIo, soIf-nanaging loans
shouId bo sol up and givon lho naxinun anounl of rosponsibiIily lo run lhoir
ovn affairs, incIuding pIanning, budgoling and oxorcising quaIily conlroI.
NolvorIing shouId bo oncouragod in lho sonso of poopIo connunicaling oponIy
and infornaIIy vilh ono anolhor as lho nood arisos. Il is rocognizod lhal lhoso
infornaI procossos can bo noro produclivo lhan rigidIy ´vorIing lhrough chan-
noIs' as sol oul in lho organizalion charl.
llcxi|iliiq. Tho organizalion slrucluro shouId bo fIoxibIo onough lo rospond
quicIIy lo chango, chaIIongo and uncorlainly. FIoxibiIily shouId bo onhancod by
lho croalion of coro groups and by using parl-lino, lonporary and conlracl
vorIors lo handIo oxlra donands. Al lop nanagononl IovoI and oIsovhoro, a
coIIogialo approach lo loan oporalion shouId bo considorod in vhich poopIo
Crgunìzutìon dosìgn 323
sharo rosponsibiIily and aro oxpoclod lo vorI vilh lhoir coIIoaguos in aroas
oulsido lhoir prinary funclion or sIiII.
Rclc clcrijicciicn. IoopIo shouId bo cIoar aboul lhoir roIos as individuaIs and as
nonbors of a loan. Thoy shouId Inov vhal lhoy viII bo hoId accounlabIo for and
bo givon ovory opporlunily lo uso lhoir abiIilios in achioving ob¡oclivos lo vhich
lhoy havo agrood and aro connillod. RoIo profiIos shouId dofino Ioy rosuIl aroas
bul shouId nol acl as slrail¡acIols, roslricling inilialivo and unduIy Iiniling
rosponsibiIily.
Dcccnirclizciicn. Aulhorily lo naIo docisions shouId bo doIogalod as cIoso lo lho
scono of aclion as possibIo. Irofil conlros shouId bo sol up as slralogic businoss
unils vhich oporalo cIoso lo lhoir narIols and vilh a considorabIo dogroo of
aulonony. AnuIliproducl or narIol businoss shouId dovoIop a fodoraI organiza-
lion vilh oach fodoralod onlily running ils ovn affairs, aIlhough lhoy viII bo
IinIod logolhor by lho ovoraII businoss slralogy.
Dclcqcring. Organizalions shouId bo ´fIallonod' by ronoving suporfIuous Iayors of
nanagononl and suporvision in ordor lo pronolo fIoxibiIily, faciIilalo sviflor
connunicalion, incroaso rosponsivonoss, onabIo poopIo lo bo givon noro rospon-
sibiIily as individuaIs or loans and roduco cosls.
Organizalion dosign Ioads inlo organizalion pIanning.
CkCANlZA1lCN lLANNlNC
Organizalion pIanning is lho procoss of convorling lho anaIysis inlo lho dosign. Il
dolorninos slrucluro, roIalionships, roIos, hunan rosourco roquirononls and lho Iinos
aIong vhich changos shouId bo inpIononlod. Thoro is no ono bosl dosign. Thoro is
aIvays a choico bolvoon aIlornalivos. LogicaI anaIysis viII hoIp in lho ovaIualion of
lho aIlornalivos bul Mary IarIor FoIIol's (1924) Iav of lho silualion viII havo lo
provaiI. Tho finaI choico viII bo conlingonl upon lho prosonl and fuluro circunslancos
of lho organizalion. Il viII bo slrongIy infIuoncod by porsonaI and hunan considora-
lions ÷ lho incIinalions of lop nanagononl, lho slronglhs and voaInossos of nanago-
nonl gonoraIIy, lho avaiIabiIily of poopIo lo slaff lho nov organizalion and lho nood
lo laIo accounl of lho fooIings of lhoso vho viII bo oxposod lo chango. CoId Iogic nay
sonolinos havo lo ovorrido lhoso considoralions. If il doos, lhon il nusl bo doIiboralo
and lho consoquoncos nusl bo approcialod and aIIovod for vhon pIanning lho inpIo-
nonlalion of lho nov organizalion.
Il nay havo lo bo accoplod lhal a IogicaI rogrouping of aclivilios cannol bo inlro-
ducod in lho shorl lorn bocauso no ono vilh lho oxporionco is avaiIabIo lo nanago lho
nov aclivilios, or bocauso capabIo individuaIs aro so firnIy onlronchod in ono aroa
lhal lo uprool lhon vouId causo sorious danago lo lhoir noraIo and vouId roduco
lho ovoraII offoclivonoss of lho nov organizalion.
Tho vorsl sin lhal organizalion dosignors can connil is lhal of inposing lhoir ovn
idooIogy on lho organizalion. Thoir ¡ob is lo bo ocIoclic in lhoir InovIodgo, sonsilivo
in lhoir anaIysis of lho silualion and doIiboralo in lhoir approach lo lho ovaIualion of
aIlornalivos.
Having pIannod lho organizalion and dofinod slrucluros, roIalionships and roIos, il
is nocossary lo considor hov lho nov organizalion shouId bo inpIononlod. Il nay bo
advisabIo lo slago inpIononlalion ovor a nunbor of phasos, ospociaIIy if nov poopIo
havo lo bo found and lrainod.
kLSlCNSlßlLl1Y lCk CkCANlZA1lCN DLSlCN
Organizalion dosign nay bo carriod oul by Iino nanagononl vilh or vilhoul lho hoIp
of nonbors of lho HR funclion acling as inlornaI consuIlanls, or il nay bo dono by
oulsido consuIlanls. HR nanagononl shouId aIvays bo invoIvod bocauso organiza-
lion dosign is ossonliaIIy aboul poopIo and lho vorI lhoy do. Tho advanlago of using
oulsido consuIlanls is lhal an indopondonl and dispassionalo viov is oblainod. Thoy
can cul lhrough inlornaI organizalionaI prossuros, poIilics and conslrainls and bring
oxporionco of olhor organizalionaI probIons lhoy havo doaIl vilh. Sonolinos, rogrol-
labIy, na¡or changos can bo oblainod onIy by oulsido inlorvonlion. Bul lhoro is a
dangor of consuIlanls suggosling lhoorolicaIIy idoaI organizalions lhal do nol laIo
sufficionl accounl of lho probIons of naIing lhon vorI vilh oxisling poopIo. Thoy
do nol havo lo Iivo vilh lhoir soIulions, as do Iino and HR nanagors. If oulsido
consuIlanls aro usod, il is ossonliaI lo invoIvo poopIo fron vilhin lho organizalion so
lhoy can onsuro lhal lhoy aro abIo lo inpIononl lho proposaIs snoolhIy.
Crgunìzutìon dosìgn 325
lob dosìgn und roío dovoíopmont
lCßS AND kCLLS
A jc| consisls of a roIalod sol of lasIs lhal aro carriod oul by a porson lo fuIfiI a
purposo. Il can bo rogardod as a unil in an organizalion slrucluro lhal ronains
unchangod vhoovor is in lho ¡ob. A¡ob in lhis sonso is a fixod onlily, parl of a nachino
lhal can bo ´dosignod' IiIo any olhor parl of a nachino. Roulino or nachino-conlroIIod
¡obs do indood oxisl in nosl organizalions bul, incroasingIy, lho vorI carriod oul by
poopIo is nol nochanislic. Whal is dono, hov il is dono and lho rosuIls achiovod
dopond noro and noro on lho capabiIilios and nolivalion of individuaIs and lhoir
inloraclions vilh ono anolhor and lhoir cuslonors or suppIiors.
Tho rigidily inhoronl in lho nolion of a ¡ob is nol in accord vilh lho roaIilios of orga-
nizalionaI Iifo for nany poopIo. A fIoxibIo approach is oflon roquirod lo uso and
dovoIop lhoir sIiIIs in ordor lo rospond sviflIy lo lho nov donands lhoy faco ovory
day.
Tho concopl of a rclc convoys lhoso roaIilios noro lhan lhal of a jc|. EssonliaIIy, a
roIo is lho parl poopIo pIay in carrying oul lhoir vorI. ln!iti!ucl rclcs aro lhoso carriod
oul by ono porson. Gcncric rclcs aro lhoso in vhich ossonliaIIy siniIar aclivilios aro
carriod oul by a nunbor of poopIo. Thoy nay covor a vhoIo occupalion. AroIo can bo
doscribod in bohaviouraI lorns ÷ givon corlain oxpoclalions, lhis is hov lho porson
noods lo bohavo lo nool lhon. AroIo profiIo viII nol spoII oul lho lasIs lo bo carriod
oul bul viII insload indicalo oxpoclalions in lho forn of oulpuls and oulconos

and conpoloncy roquirononls in lho shapo of lho inpuls of sIiII and bohaviours
roquirod lo fuIfiI lhoso oxpoclalions. Tho dofinilion nay bo broad. Il viII nol bo
proscriplivo. Scopo viII bo aIIovod for poopIo lo uso lhoir sIiIIs in accordanco vilh
lhoir inlorprolalion of lho silualion. Encouragononl viII bo givon for lhon bolh lo
grov in lhoir roIos and lo grov lhoir roIos by dovoIoping lhoir conpoloncios and by
oxlonding lho rango of lhoir rosponsibiIilios so lhal lhoir conlribulions oxcood oxpoc-
lalions. Tho nood for fIoxibiIily viII aIso bo rocognisod.
RoIos aro lhoroforo noro aboul poopIo lhan ¡obs and lhis noans lhal lho oxlonl lo
vhich a roIo can bo ´dosignod' nay bo Iinilod or ovon non-oxislonl vhoro fIoxibiIily
and grovlh aro inporlanl. This nay appIy parlicuIarIy lo InovIodgo vorIors.
Thoro aro, hovovor, corlain considoralions lhal affocl lho vays in vhich roIos can
bo dovoIopod in ordor lo incroaso salisfaclion vilh lho vorI and lo oncourago
grovlh. Thoso considoralions can aIso appIy lo ¡obs and lhis chaplor lhoroforo slarls
vilh a gonoraI roviov of lho faclors lhal affocl ¡ob dosign and lhal aro aIso roIovanl lo
roIo buiIding. Allonlion is lhon diroclod lo approachos lo ¡ob dosign, vhich incIudo
lho nolion of ¡ob onrichnonl. Considoralion is noxl givon lo lho characlorislics of
loan roIos and vhal can bo dono lo sol up and nainlain offoclivo soIf-nanagod loans
and high-porfornanco vorI dosign. FinaIIy, lho focus is on roIos and hov lhoy can bo
 ralhor lhan dosignod in loday's fIoxibIo organizalions on lho basis of an
undorslanding of vhal roIo hoIdors aro oxpoclod lo achiovo, lho scopo lhoy havo lo go
boyond lhoso basic oxpoclalions and lho capabiIilios lhoy nood lo carry oul and
oxlond lhoir roIo.
lAC1CkS AllLC1lNC lCß DLSlCN
Tho conlonl of ¡obs is affoclod by lho purposo of lho organizalion or lho organiza-
lionaI unil, lho parlicuIar donands lhal achioving lhal purposo naIos on lho poopIo
invoIvod, lho slrucluro of lho organizalion, lho procossos and aclivilios carriod oul in
lho organizalion, lho lochnoIogy of lho organizalion, lho changos lhal aro laIing pIaco
in lhal lochnoIogy and lho onvironnonl in vhich lho organizalion oporalos. }ob
dosign has lhoroforo lo bo considorod vilhin lho conloxl of organizalionaI dosign, as
doscribod in Chaplor 22, bul il nusl aIso laIo inlo accounl lho foIIoving faclors:
lho procoss of inlrinsic nolivalion,
lho characlorislics of lasI slrucluro,
lho nolivaling characlorislics of ¡obs,
lho significanco of lho ¡ob characlorislics nodoI,
providing inlrinsic nolivalion.
Thc procc·· of ín|rín·íc mo|íva|íon
Tho caso for using ¡ob dosign lochniquos is basod on lho proniso lhal offoclivo porfor-
nanco and gonuino salisfaclion in vorI foIIov nainIy fron lho inlrinsic conlonl of
lho ¡ob. This is roIalod lo lho fundanonlaI concopl lhal poopIo aro nolivalod vhon
lhoy aro providod vilh lho noans lo achiovo lhoir goaIs. WorI providos lho noans lo
oarn nonoy, vhich as an oxlrinsic rovard salisfios basic noods and is inslrunonlaI in
providing vays of salisfying highor-IovoI noods. Bul vorI aIso providos inlrinsic
rovards, vhich aro undor lho dirocl conlroI of lho vorIor.
Charac|crí·|íc· of |a·| ·|ruc|urc
}ob dosign roquiros lho assonbIy of a nunbor of lasIs inlo a ¡ob or a group of ¡obs. An
individuaI nay carry oul ono nain lasI, vhich consisls of a nunbor of inlorroIalod
oIononls or funclions. Or lasI funclions nay bo aIIocalod lo a loan vorIing cIosoIy
logolhor in a nanufacluring ćoII' or cuslonor sorvico unil, or slrung aIong an
assonbIy Iino. In noro conpIox ¡obs, individuaIs nay carry oul a varioly of
connoclod lasIs, oach vilh a nunbor of funclions, or lhoso lasIs nay bo aIIocalod lo a
loan of vorIors or dividod bolvoon lhon. In lho Iallor caso, lho lasIs nay roquiro a
varioly of sIiIIs, vhich havo lo bo possossod by aII nonbors of lho loan (nuIli-sIiII-
ing) in ordor lo vorI fIoxibIy.
ConpIoxily in a ¡ob nay bo a rofIoclion of lho nunbor and varioly of lasIs lo bo
carriod oul, lho difforonl sIiIIs or conpoloncos lo bo usod, lho rango and scopo of lho
docisions lhal havo lo bo nado, or lho difficuIly of prodicling lho oulcono of doci-
sions.
Tho inlornaI slrucluro of oach lasI consisls of lhroo oIononls: pIanning (dociding on
lho courso of aclion, ils lining and lho rosourcos roquirod), oxoculing (carrying oul
lho pIan), and conlroIIing (noniloring porfornanco and progross and laIing corroc-
livo aclion vhon roquirod). A conpIoloIy inlogralod ¡ob incIudos aII lhoso oIononls
for oach of lho lasIs invoIvod. Tho vorIor, or group of vorIors, having boon givon
ob¡oclivos in lorns of oulpul, quaIily and cosl largols, docidos on hov lho vorI is lo
bo dono, assonbIos lho rosourcos, porforns lho vorI, and nonilors oulpul, quaIily
and cosl slandards. RosponsibiIily in a ¡ob is noasurod by lho anounl of aulhorily
sonoono has lo do aII lhoso lhings.
\o|íva|íng charac|crí·|íc· of ¡ob·
Tho idoaI arrangononl fron lho poinl of viov of inlrinsic nolivalion is lo provido for
fuIIy inlogralod ¡obs conlaining aII lhroo lasI oIononls. In praclico, nanagononl and
loan Ioadors aro oflon onliroIy rosponsibIo for pIanning and conlroI, Ioaving lho
lob dosìgn und roío dovoíopmont 329
vorIor rosponsibIo for oxoculion. To a dogroo, lhis is inovilabIo, bul ono of lho ains of
¡ob dosign is oflon lo oxlond lho rosponsibiIily of vorIors inlo lho funclions of pIan-
ning and conlroI. This can invoIvo onpovornonl ÷ giving individuaIs and loans
noro rosponsibiIily for docision naIing and onsuring lhal lhoy havo lho lraining,
supporl and guidanco lo oxorciso lhal rosponsibiIily proporIy.
Thc ¡ob charac|crí·|íc· modcí
AusofuI porspoclivo on lho faclors affocling ¡ob dosign and nolivalion is providod by
HacInan and OIdhan's (1974) ¡ob characlorislics nodoI. Thoy suggosl lhal lho ćril-
icaI psychoIogicaI slalos' of óxporioncod noaningfuInoss of vorI, oxporioncod
rosponsibiIily for oulconos of vorI and InovIodgo of lho acluaI oulconos of vorI'
slrongIy infIuonco nolivalion, ¡ob salisfaclion and porfornanco.
As Roborlson ci cl (1992) poinl oul: ´This oIononl of lho nodoI is basod on lho
nolion of porsonaI rovard and roinforcononl. Roinforcononl is oblainod vhon a
porson boconos avaro (InovIodgo of rosuIls) lhal ho or sho has boon rosponsibIo for
(oxporioncod rosponsibiIily) and good porfornanco on a lasI lhal ho or sho caros
aboul (oxporioncod noaningfuInoss).'
|rovídíng ín|rín·íc mo|íva|íon
Throo characlorislics havo boon dislinguishod by LavIor (1969) as boing roquirod in
¡obs if lhoy aro lo bo inlrinsicaIIy nolivaling:
lcc!|cc| ÷ individuaIs nusl rocoivo noaningfuI foodbacI aboul lhoir porfor-
nanco, proforabIy by ovaIualing lhoir ovn porfornanco and dofining lho food-
bacI. This inpIios lhal lhoy shouId idoaIIy vorI on a conpIolo producl, or a
significanl parl of il lhal can bo soon as a vhoIo.
Usc cj c|iliiics ÷ lho ¡ob nusl bo porcoivod by individuaIs as roquiring lhon lo uso
abiIilios lhoy vaIuo in ordor lo porforn lho ¡ob offoclivoIy.
Sclj-ccnircl ÷ individuaIs nusl fooI lhal lhoy havo a high dogroo of soIf-conlroI
ovor solling lhoir ovn goaIs and ovor dofining lho palhs lo lhoso goaIs.
lCß DLSlCN
}ob dosign has boon dofinod by Davis (1966) as: ´Tho spocificalion of lho conlonls,
nolhods, and roIalionships of ¡obs in ordor lo salisfy lochnoIogicaI and organizalionaI
roquirononls as voII as lho sociaI and porsonaI roquirononls of lho ¡ob hoIdor'.
}ob dosign has lvo ains: firsl, lo salisfy lho roquirononls of lho organizalion for
produclivily, oporalionaI officioncy and quaIily of producl or sorvico, and socond, lo
salisfy lho noods of lho individuaI for inlorosl, chaIIongo and acconpIishnonl, lhus
providing for ´¡ob ongagononl' ÷ connilnonl lo carrying oul lho ¡ob voII. CIoarIy,
lhoso ains aro inlorroIalod and lho ovoraII ob¡oclivo of ¡ob dosign is lo inlogralo lho
noods of lho individuaI vilh lhoso of lho organizalion.
Tho procoss of ¡ob dosign slarls, as doscribod in Chaplor 13, fron an anaIysis of
vhal vorI noods lo bo dono ÷ lho lasIs lhal havo lo bo carriod oul if lho purposo of
lho organizalion or an organizalionaI unil is lo bo achiovod. Tho ¡ob dosignor can lhon
considor hov lho ¡obs can bo sol up lo provido lho naxinun dogroo of inlrinsic noli-
valion for lhoso vho havo lo carry lhon oul vilh a viov lo inproving porfornanco
and produclivily. Considoralion has aIso lo bo givon lo anolhor inporlanl ain of ¡ob
dosign: lo fuIfiI lho sociaI rosponsibiIilios of lho organizalion lo lho poopIo vho vorI
in il by inproving lho quaIily of vorIing Iifo, an ain vhich, as slalod in WiIson's
(1973) roporl on lhis sub¡ocl, ´doponds upon bolh officioncy of porfornanco and salis-
faclion of lho vorIor'. Tho oulcono of ¡ob dosign nay bo a ¡ob doscriplion, as
oxpIainod in Chaplor 13, aIlhough as nolod in lhal chaplor, lho onphasis loday is
noro on roIos and lho dovoIopnonl of roIo profiIos.
|ríncípíc· of ¡ob dc·ígn
Roborlson and Snilh (1985) suggosl lho foIIoving fivo principIos of ¡ob dosign:
To infIuonco sIiII varioly, provido opporlunilios for poopIo lo do sovoraI lasIs and
conbino lasIs.
To infIuonco lasI idonlily, conbino lasIs and forn naluraI vorI unils.
To infIuonco lasI significanco, forn naluraI vorI unils and inforn poopIo of lho
inporlanco of lhoir vorI.
To infIuonco aulonony, givo poopIo rosponsibiIily for dolornining lhoir ovn
vorIing syslons.
To infIuonco foodbacI, oslabIish good roIalionships and opon foodbacI channoIs.
Turnor and Lavronco (1965) idonlifiod six inporlanl characlorislics, vhich lhoy
caIIod ´roquisilo lasI characlorislics´, nanoIy: varioly, aulonony, roquirod inlorac-
lions, oplionaI inloraclions, InovIodgo and sIiII, and rosponsibiIily. And Coopor
(1973) oulIinod four concopluaIIy dislincl ¡ob dinonsions: varioly, discrolion, conlri-
bulion and goaI characlorislics.
An inlogralod viov suggosls lhal lho foIIoving nolivaling characlorislics aro of
prino inporlanco in ¡ob dosign:
lob dosìgn und roío dovoíopmont 33l
aulonony, discrolion, soIf-conlroI and rosponsibiIily,
varioly,
uso of abiIilios,
foodbacI,
boIiof lhal lho lasI is significanl.
Thoso aro lho basos of lho approach usod in ¡ob onrichnonl, as doscribod Ialor in lhis
chaplor.
Approachc· |o ¡ob dc·ígn
Tho nain ¡ob dosign approachos aro:
jc| rciciicn, vhich conprisos lho novononl of onpIoyoos fron ono lasI lo
anolhor lo roduco nonolony by incroasing varioly.
jc| cnlcrgcmcni, vhich noans conbining proviousIy fragnonlod lasIs inlo ono
¡ob, again lo incroaso lho varioly and noaning of ropolilivo vorI.
jc| cnric|mcni, vhich goos boyond ¡ob onIargononl lo add groalor aulonony and
rosponsibiIily lo a ¡ob and is basod on lho ¡ob characlorislics approach.
Sclj-mcncging iccms (cuicncmcus ucr| grcups) ÷ lhoso aro soIf-roguIaling loans
vho vorI IargoIy vilhoul dirocl suporvision. Tho phiIosophy on vhich lhis loch-
niquo is basod is a IogicaI oxlonsion of ¡ob onrichnonl.
Hig|-pcrjcrmcncc ucr| !csign, vhich conconlralos on solling up vorIing groups in
onvironnonls vhoro high IovoIs of porfornanco aro roquirod.
Of lhoso fivo approachos, il is gonoraIIy rocognizod lhal, aIlhough ¡ob rolalion and ¡ob
onIargononl havo lhoir usos in dovoIoping sIiIIs and roIioving nonolony, lhoy do nol
go lo lho rool of lho roquirononls for inlrinsic nolivalion and for nooling lho various
nolivaling characlorislics of ¡obs as doscribod abovo. Thoso aro bosl salisfiod by
using, as approprialo, ¡ob onrichnonl, aulononous vorI groups or high-porfor-
nanco vorI dosign.
lCß LNklCHMLN1
}ob onrichnonl ains lo naxinizo lho inlorosl and chaIIongo of vorI by providing lho
onpIoyoo vilh a ¡ob lhal has lhoso characlorislics:
Il is a conpIolo pioco of vorI in lho sonso lhal lho vorIor can idonlify a sorios of
lasIs or aclivilios lhal ond in a rocognizabIo and dofinabIo producl.
Il affords lho onpIoyoo as nuch varioly, docision-naIing rosponsibiIily and
conlroI as possibIo in carrying oul lho vorI.
Il providos dirocl foodbacI lhrough lho vorI ilsoIf on hov voII lho onpIoyoo is
doing his or hor ¡ob.
}ob onrichnonl as proposod by Horzborg (1968) is nol ¡usl incroasing lho nunbor or
varioly of lasIs, nor is il lho provision of opporlunilios for ¡ob rolalion. Il is cIainod
by supporlors of ¡ob onrichnonl lhal lhoso approachos nay roIiovo borodon, bul lhoy
do nol rosuIl in posilivo incroasos in nolivalion.
SLLl-MANAClNC 1LAMS
A soIf-nanaging loan or aulononous vorI group is aIIocalod an ovoraII lasI and
givon discrolion ovor hov lho vorI is dono. This providos for inlrinsic nolivalion by
giving poopIo aulonony and lho noans lo conlroI lhoir vorI, vhich viII incIudo
foodbacI infornalion. Tho basis of lho aulononous vorI group approach lo ¡ob
dosign is socio-lochnicaI syslons lhoory, vhich suggosls lhal lho bosl rosuIls aro
oblainod if grouping is such lhal vorIors aro prinariIy roIalod lo oach olhor by vay
of lasI porfornanco and lasI inlordopondonco. As Enory (1980) has slalod:
ln dosìgnìng u socìuí systom to ollìcìontíy oporuto u modorn cupìtuí-ìntonsìvo píunt tho
koy probíom ìs thut ol croutìng soíl-munugìng groups to mun tho ìntorluco vìth tho toch-
nìcuí systom.
A soIf-nanaging loan:
onIargos individuaI ¡obs lo incIudo a vidor rango of oporalivo sIiIIs (nuIli-
sIiIIing),
docidos on nolhods of vorI and lho pIanning, schoduIing and conlroI of vorI,
dislribulos lasIs ilsoIf anong ils nonbors.
Tho advocalos of soIf-nanaging loans or aulononous vorI groups cIain lhal lhis
approach offors a noro conprohonsivo viov of organizalions lhan lho ralhor
sinpIislic individuaI nolivalion lhoorios lhal undorpin ¡ob rolalion, onIargononl
and onrichnonl. Bo lhal as il nay, lho slronglh of lhis syslon is lhal il doos laIo
accounl of lho sociaI or group faclors and lho lochnoIogy as voII as lho individuaI
nolivalors.
HlCH-lLklCkMANCL \CkK DLSlCN
High-porfornanco vorI dosign, as doscribod by Buchanan (1987), roquiros lho
foIIoving slops:
Managononl cIoarIy dofinos vhal il noods in lho forn of nov lochnoIogy or
nolhods of produclion and lho rosuIls oxpoclod fron ils inlroduclion.
MuIli-sIiIIing is oncouragod ÷ lhal is, ¡ob donarcalion Iinos aro oIininalod as far
as possibIo and oncouragononl and lraining aro providod for onpIoyoos lo
acquiro nov sIiIIs.
Equipnonl lhal can bo usod fIoxibIy is soIoclod and is Iaid oul lo aIIov froodon of
novononl and vision.
SoIf-nanagod loans or aulononous vorIing groups aro oslabIishod, oach vilh
around a dozon nonbors and vilh fuII ´bacI-lo-bacI' rosponsibiIily for producl
assonbIy and losling, fauIl-finding and sono nainlonanco.
Managors and loan Ioadors adopl a supporlivo ralhor lhan an aulocralic slyIo
(lhis is lho nosl difficuIl parl of lho syslon lo inlroduco).
Supporl syslons aro providod for Iil-narshaIIing and naloriaI suppIy, vhich
hoIp lho loans lo funclion offoclivoIy as produclivo unils.
Managononl sols goaIs and slandards for succoss.
Tho nov syslon is inlroducod vilh groal caro by noans of invoIvononl and
connunicalion progrannos.
Thorough lraining is carriod oul on lho basis of an assossnonl of lraining noods.
Tho paynonl syslon is spociaIIy dosignod vilh onpIoyoo parlicipalion lo fil lhoir
noods as voII as lhoso of nanagononl.
Iaynonl nay bo roIalod lo loan porfornanco (loan pay), bul vilh sIiII-basod
pay for individuaIs.
In sono casos, a ´poor porfornanco roviov' procoss nay bo usod vhich invoIvos
loan nonbors assossing ono anolhor's porfornanco as voII as lho porfornanco of
lho loan as a vhoIo.
kCLL DLVLLClMLN1
}ob dosign as doscribod abovo laIos pIaco vhon a nov ¡ob is croalod or an oxisling ¡ob
is subslanliaIIy changod, oflon foIIoving a roorganizalion. Bul lho parl poopIo pIay in
carrying oul lhoir ¡obs ÷ lhoir roIos ÷ can ovoIvo ovor lino as poopIo grov inlo lhon
and grov vilh lhon, and as incrononlaI changos laIo pIaco in lho scopo of lho vorI
and lho dogroo lo vhich individuaIs aro froo lo acl (lhoir aulonony). RoIos viII bo
dovoIopod as poopIo dovoIop in lhon, rosponding lo opporlunilios and changing
donands, acquiring nov sIiIIs and dovoIoping conpoloncios.
RoIo dovoIopnonl is a conlinuous procoss vhich laIos pIaco in lho conloxl of day
lo day vorI, and il is lhoroforo a nallor bolvoon nanagors and lho nonbors of lhoir
loans. Il invoIvos agrooing dofinilions of Ioy rosuIls aroas and conpoloncy roquiro-
nonls as lhoy ovoIvo. Whon lhoso chango ÷ as lhoy probabIy viII in aII oxcopl lho
nosl roulino ¡obs ÷ il is dosirabIo lo achiovo nuluaI undorslanding of nov oxpocla-
lions. Tho forcos shouId bo on roIo fIoxibiIily ÷ giving poopIo lho chanco lo dovoIop
lhoir roIos by naIing bollor and oxlondod uso of lhoir sIiIIs and capabiIilios.
Tho procoss of undorslanding hov roIos aro dovoIoping and agrooing lho inpIica-
lions can laIo pIaco vilhin lho franovorI of porfornanco nanagononl as doscribod
in Iarl VII, vhoro lho porfornanco agroononl, vhich is updalod roguIarIy, spoIIs oul
lho oulconos (Ioy rosuIl aroas) and lho conpoloncy roquirononls. Il is nocossary lo
onsuro lhal nanagors, loan Ioadors and onpIoyoos gonoraIIy acquiro lho sIiIIs nocos-
sary lo dofino roIos vilhin lho porfornanco nanagononl franovorI, laIing inlo
accounl lho principIos of ¡ob dosign sol oul oarIior in lhis chaplor. Ways in vhich roIo
profiIos can bo sol oul aro doscribod in Chaplor 13.
Crgunìzutìonuí dovoíopmont,
chungo und trunslormutìon
This chaplor slarls vilh a dofinilion and crilicaI roviov of lho ovoraII concopl of orga-
nizalionaI dovoIopnonl (OD). Approachos lo chango nanagononl aro lhon oxan-
inod. Thoso havo sonolinos boon lroalod as an aspocl of organizalionaI dovoIopnonl,
bul in facl lhoy aro usod in any organizalion lhal is concornod vilh lho offoclivo inlro-
duclion of changod slrucluros, poIicios or praclicos. Thoy lhoroforo oxisl in lhoir ovn
righl. Tho chaplor conlinuos vilh a discussion of organizalionaI lransfornalion prin-
cipIos and praclico vhich aro an oxlonsion of chango nanagononl nolhodoIogy inlo
conprohonsivo progrannos for nanaging fundanonlaI changos lo lho cuIluro and
oporalions of an organizalion. Tho finaI soclion of lho chaplor doaIs vilh spocific
approachos lo organizalionaI dovoIopnonl or chango, nanoIy: loan buiIding, cuIluro
chango nanagononl, lolaI quaIily nanagononl, conlinuaI inprovononl procossos,
businoss procoss ro-onginooring and porfornanco nanagononl.
\HA1 lS CkCANlZA1lCNAL DLVLLClMLN1:
OrganizalionaI dovoIopnonl is concornod vilh lho pIanning and inpIononlalion
of progrannos dosignod lo onhanco lho offoclivonoss vilh vhich an organizalion
funclions and rosponds lo chango. OvoraII, lho ain is lo adopl a pIannod and

cohoronl approach lo inproving organizalionaI offoclivonoss. An offoclivo organiza-
lion can bo dofinod broadIy as ono lhal achiovos ils purposo by nooling lho vanls
and noods of ils slaIohoIdors, nalching ils rosourcos lo opporlunilios, adapling fIox-
ibIy lo onvironnonlaI changos and croaling a cuIluro lhal pronolos connilnonl,
croalivily, sharod vaIuos and nuluaI lrusl.
OrganizalionaI dovoIopnonl is concornod vilh procoss, nol slrucluro or syslons ÷
vilh lho vay lhings aro dono ralhor lhan vhal is dono. Irocoss rofors lo lho vays in
vhich poopIo acl and inloracl. Il is aboul lho roIos lhoy pIay on a conlinuing basis lo
doaI vilh ovonls and silualions invoIving olhor poopIo and lo adapl lo changing
circunslancos.
OrganizalionaI dovoIopnonl is an aII-onbracing lorn for lho approachos doscribod
in lhis chaplor lo changing procossos, cuIluro and bohaviour in lho organizalion. Tho
changos nay laIo pIaco vilhin lho franovorI of an ovoraII progranno of organiza-
lion dovoIopnonl (OD). Wilhin lhis progranno, or laIing pIaco as soparalo aclivilios,
ono or noro of lho foIIoving approachos nay bo usod.
organizalion dovoIopnonl (OD),
chango nanagononl,
loan buiIding,
cuIluro chango or nanagononl,
lolaI quaIily nanagononl,
conlinuous inprovononl,
businoss procoss ro-onginooring,
porfornanco nanagononl,
organizalionaI lransfornalion.
CkCANlZA1lCN DLVLLClMLN1
Dcfíncd
Organizalion dovoIopnonl (OD) has boon dofinod by Fronch and BoII (1990) as:
Apíunnod systomutìc procoss ìn vhìch uppíìod bohuvìouruí scìonco prìncìpíos und pruc-
tìcos uro ìntroducod ìnto un ongoìng orgunìzutìon tovurds tho gouís ol olloctìng orgunì-
zutìonuí ìmprovomont, groutor orgunìzutìonuí compotonco, und groutor orgunìzutìonuí
olloctìvonoss. 1ho locus ìs on orgunìzutìons und thoìr ìmprovomont or, to put ìt unothor
vuy, |o|aí ·,·|cm· changc. 1ho orìontutìon ìs on uctìon - uchìovìng dosìrod rosuíts us u
rosuít ol píunnod uctìvìtìos.
Tho cIassic and anbilious approach lo OD vas doscribod by Bonnis (1960) as foIIovs:
Órganizalion dovoIopnonl (OD) is a rosponso lo chango, a conpIox oducalionaI
slralogy inlondod lo chango lho boIiofs, alliludos, vaIuos, and slrucluro of organiza-
lions so lhal lhoy can bollor adapl lo nov lochnoIogios, narIols, and chaIIongos, and
lho dizzying ralo of chango ilsoIf.'
A ·hor| hí·|or, of CD
Origins of OD
Tho origin of OD can bo lracod lo lho vorI of Kurl Lovin (1947, 1951), vho dovoI-
opod lho concopl of group dynanics (lho phraso vas firsl coinod in 1939). Group
dynanics is concornod vilh lho vays in vhich groups ovoIvo and hov poopIo in
groups bohavo and inloracl. Lovin foundod lho Rosoarch Conlro for Group Dynanics
in 1945 and oul of lhis onorgod lho procoss of ´T-group' or sonsilivily lraining, in
vhich parlicipanls in an unslruclurod group Ioarn fron lhoir ovn inloraclion and lho
ovoIving dynanics of lho group. T-group Iaboralory lraining bocano ono of lho
fundanonlaI OD procossos. Lovin aIso pionoorod aclion rosoarch approachos.
Tbc formativc ycars of OD
During lho 1950s and 1960s bohaviouraI scionlisls such as Argyris, BocIhard, Bonnis,
BIaIo, McGrogor, Schoin, Shoparl and Tannonbaun dovoIopod lho concopls and
approachos lhal logolhor roprosonlod ÓD'. Thoy dofinod lho scopo, purposo and
phiIosophy of OD, nolhods of conducling OD ínlorvonlions', approachos lo
´procoss consuIling' and nolhodoIogios such as aclion rosoarch and survoy
foodbacI.
OD - tbc gIory ycars
Tho Ialor 1960s and lho 1970s voro lho days vhon bohaviouraI scionco roignod and
OD vas soon, al Ioasl by bohaviouraI scionlisls, as lho ansvor lo lho probIon of
inproving organizalionaI offoclivonoss. Conprohonsivo progrannos using lho
various approachos doscribod boIov voro inlroducod in a nunbor of Anorican busi-
nossos such as GonoraI Molors and Corning GIass and a fov UK conpanios such as
ICI. US rosoarch quolod by Fronch and BoII (1990) found lhal posilivo inpacls voro
nado in bolvoon 70 and 80 por conl of lho casos sludiod.
OD in dccIinc
Doubl aboul lho vaIidily of OD as a concopl vas firsl oxprossod in lho 1970s. Kahn
Crgunìzutìonuí dovoíopmont, chungo und trunslormutìon 339
(1974) vrolo lhal: Íl is nol a concopl, al Ioasl nol in lho scionlific sonso of lho vord: il
is nol procisoIy dofinod, il is nol roducibIo lo spocific, uniforn, obsorvabIo bohaviour.'
A lypicaI crilicisn of OD vas nado Ialor by McLoan (1981) vho vrolo lhal: ´Thoro
soons lo bo a groving avaronoss of lho inapproprialonoss of sono of lho funda-
nonlaI vaIuos, slancos, nodoIs and proscriplions inhorilod fron lho 1960s. Wrilors
aro facing up lo lho naivolo of oarIy boIiofs and lhoorios in vhal nighl bo lornod a
cIinalo of sobrioly and nov roaIisn.'
Ncw approacbcs to improving organizationaI cffcctivcncss
During lho 1980s and 1990s lho focus shiflod fron OD as a bohaviouraI scionco
concopl lo a nunbor of olhor approachos. Sono of lhoso, such as organizalionaI
lransfornalion, aro nol onliroIy dissiniIar lo OD. Olhors, such as loan buiIding,
chango nanagononl and cuIluro chango or nanagononl, aro buiIl on sono of lho
basic idoas dovoIopod by vrilors on organizalion dovoIopnonl and OD praclilionors.
Yol olhor approachos, such as lolaI quaIily nanagononl, conlinuous inprovononl,
businoss procoss ro-onginooring and porfornanco nanagononl, couId bo doscribod
as hoIislic procossos lhal allonpl lo inprovo ovoraII organizalionaI offoclivonoss fron
a parlicuIar porspoclivo. Tho londoncy nov is lo roIy noro on spocific inlorvonlions
such as porfornanco nanagononl, loan pay or lolaI quaIily nanagononl, lhan on
aII-onbracing bul sonovhal nobuIous OD progrannos vhich voro oflon ovnod by
lho HR doparlnonl and ils consuIlanls, and nol by Iino nanagononl.
Charac|crí·|íc· of |hc |radí|íonaí approach |o CD
OD conconlralod on hov lhings aro dono as voII as vhal lhoy do. Il vas a forn of
appIiod bohaviouraI scionco lhal vas concornod vilh syslon-vido chango. Tho orga-
nizalion vas considorod as a lolaI syslon and lho onphasis vas on lho inlorroIalion-
ships, inloraclions and inlordopondoncios of difforonl aspocls of hov syslons oporalo
as lhoy lransforn inpuls and oulpuls and uso foodbacI nochanisns for soIf-roguIa-
lion. OD praclilionors laIIod aboul ´lho cIionl syslon' ÷ noaning lhal lhoy voro
doaIing vilh lho lolaI organizalionaI syslon.
OD as originaIIy concoivod vas basod upon lho foIIoving assunplions and
vaIuos:
Mosl individuaIs aro drivon by lho nood for porsonaI grovlh and dovoIopnonl as
Iong as lhoir onvironnonl is bolh supporlivo and chaIIonging.
Tho vorI loan, ospociaIIy al lho infornaI IovoI, has groal significanco for fooIings
of salisfaclion and lho dynanics of such loans havo a povorfuI offocl on lho
bohaviour of lhoir nonbors.
OD progrannos ainod lo inprovo lho quaIily of vorIing Iifo of aII nonbors of
lho organizalion.
Organizalions can bo noro offoclivo if lhoy Ioarn lo diagnoso lhoir ovn slronglhs
and voaInossos.
Bul nanagors oflon do nol Inov vhal is vrong and nood spociaI hoIp in diag-
nosing probIons, aIlhough lho oulsido ´procoss consuIlanl' onsuros lhal docision
naIing ronains in lho hands of lho cIionl.
Tho lhroo nain foaluros of OD progrannos voro:
Thoy voro nanagod, or al Ioasl slrongIy supporlod, fron lho lop bul oflon nado
uso of lhird parlios or ćhango agonls' lo diagnoso probIons and lo nanago
chango by various Iinds of pIannod aclivily or ínlorvonlion'.
Tho pIans for organizalion dovoIopnonl voro basod upon a syslonalic anaIysis
and diagnosis of lho circunslancos of lho organizalion and lho changos and prob-
Ions affocling il.
Thoy usod bohaviouraI scionco InovIodgo and ainod lo inprovo lho vay lho
organizalion copos in linos of chango lhrough such procossos as inloraclion,
connunicalions, parlicipalion, pIanning and confIicl.
Tho aclivilios lhal nay bo incorporalod in a lradilionaI OD progranno aro sunna-
rizod boIov.
Aciicn rcsccrc|. This is an approach dovoIopod by Lovin (1947) vhich laIos lho
forn of syslonalicaIIy coIIocling dala fron poopIo aboul procoss issuos and foods
il bacI in ordor lo idonlify probIons and lhoir IiIoIy causos so lhal aclion can bo
laIon cooporalivoIy by lho poopIo invoIvod lo doaI vilh lho probIon. Tho osson-
liaI oIononls of aclion rosoarch aro dala coIIoclion, diagnosis, foodbacI, aclion
pIanning, aclion and ovaIualion.
Surtcq jcc!|cc|. This is a varioly of aclion rosoarch in vhich dala aro syslonali-
caIIy coIIoclod aboul lho syslon and lhon fod bacI lo groups lo anaIyso and inlor-
prol as lho basis for proparing aclion pIans. Tho lochniquos of survoy foodbacI
incIudo lho uso of alliludo survoys and vorIshops lo food bacI rosuIls and
discuss inpIicalions.
lnicrtcniicns. Tho lorn ínlorvonlion' in OD rofors lo coro slruclurod aclivilios
invoIving cIionls and consuIlanls. Tho aclivilios can laIo lho forn of aclion
rosoarch, survoy foodbacI or any of lhoso nonlionod boIov. Argyris (1970)
sunnod up lho lhroo prinary lasIs of lho OD praclilionor or inlorvonlionisl as
boing lo:
Crgunìzutìonuí dovoíopmont, chungo und trunslormutìon 34l
÷ gonoralo and hoIp cIionls lo gonoralo vaIid infornalion lhal lhoy can undor-
sland aboul lhoir probIons,
÷ croalo opporlunilios for cIionls lo soarch offoclivoIy for soIulions lo lhoir prob-
Ions, lo naIo froo choicos,
÷ croalo condilions for inlornaI connilnonl lo lhoir choicos and opporlunilios
for lho conlinuaI noniloring of lho aclion laIon.
Prcccss ccnsuliciicn. As doscribod by Schoin (1969), lhis invoIvos hoIping cIionls lo
gonoralo and anaIyso infornalion lhal lhoy can undorsland and, foIIoving a lhor-
ough diagnosis, acl upon. Tho infornalion viII roIalo lo organizalionaI procossos
such as inlor-group roIalions, inlorporsonaI roIalions and connunicalions. Tho
¡ob of lho procoss consuIlanl vas dofinod by Schoin as boing lo ´hoIp lho organi-
zalion lo soIvo ils ovn probIons by naIing il avaro of organizalionaI procossos,
of lho consoquoncos of lhoso procossos, and of lho nochanisns by vhich lhoy can
bo changod'.
1ccm-|uil!ing inicrtcniicns as discussod Ialor in lhis chaplor. Thoso doaI vilh
pornanonl vorI loans or lhoso sol up lo doaI vilh pro¡ocls or lo soIvo parlicuIar
probIons. Inlorvonlions aro diroclod lovards lho anaIysis of lho offoclivonoss of
loan procossos such as probIon soIving, docision naIing and inlorporsonaI roIa-
lionships, a diagnosis and discussion of lho issuos and ¡oinl considoralion of lho
aclions roquirod lo inprovo offoclivonoss.
lnicr-grcup ccnjlici inicrtcniicns. As dovoIopod by BIaIo ci cl (1964), lhoso ain lo
inprovo inlor-group roIalions by golling groups lo sharo lhoir porcoplions of ono
anolhor and lo anaIyso vhal lhoy havo Ioarnod aboul lhonsoIvos and lho olhor
group. Tho groups invoIvod nool oach olhor lo sharo vhal lhoy havo Ioarnl, lo
agroo on lho issuos lo bo rosoIvod and lho aclions roquirod.
Pcrscncl inicrtcniicns. Thoso incIudo sonsilivily lraining Iaboralorios (T-groups),
lransaclionaI anaIysis and, noro roconlIy, nouro-Iinguislic progranning (NLI).
Anolhor approach is bohaviour nodoIIing, vhich is basod on Bandura's (1977)
sociaI Ioarning lhoory. This slalos lhal for poopIo lo ongago succossfuIIy in a
bohaviour lhoy 1) nusl porcoivo a IinI bolvoon lho bohaviour and corlain
oulconos, 2) nusl dosiro lhoso oulconos (lhis is lornod ´posilivo vaIonco'), and 3)
nusl boIiovo lhoy can do il (lornod ´soIf-officacy'). Bohaviour-nodoIIing lraining
invoIvos golling a group lo idonlify lho probIon and dovoIop and pracliso lho
sIiIIs roquirod by IooIing al DVDs shoving vhal sIiIIs can bo appIiod, roIo
pIaying, praclising lho uso of sIiIIs on lho ¡ob and discussing hov voII lhoy havo
boon appIiod.
U·c of CD
Tho docIino of lradilionaI OD, as doscribod abovo, has boon parlIy causod by dison-
chanlnonl vilh lho ¡argon usod by consuIlanls and lho unfuIfiIIod oxpoclalions of
significanl inprovononls in organizalionaI offoclivonoss. Thoro vas aIso a roaclion in
lho hard-nosod 1980s againsl lho porcoivod soflnoss of lho nossagos proachod by lho
bohaviouraI scionlisls. Managononls in lho Ialor 1980s and 1990s vanlod noro
spocific proscriplions vhich vouId inpacl on procossos lhoy boIiovod lo bo inporlanl
as noans of inproving porfornanco, such as lolaI quaIily nanagononl, businoss
procoss ro-onginooring and porfornanco nanagononl. Tho nood lo nanago chango lo
procossos, syslons or cuIluro vas sliII rocognizod as Iong as il vas rosuIls drivon,
ralhor lhan aclivily conlrod. Toan-buiIding aclivilios in lho nov procoss-basod orga-
nizalions voro aIso rogardod favourabIy as Iong as lhoy voro diroclod lovards
noasurabIo inprovononls in lho shorlor lorn. Il vas aIso rocognizod lhal organiza-
lions voro oflon conpoIIod lo lransforn lhonsoIvos in lho faco of nassivo chaIIongos
and oxlornaI prossuros, and lradilionaI OD approachos vouId nol naIo a sufficionl
or spoody inpacl. A survoy of lho viovs of chiof oxoculivos aboul organizalionaI
dovoIopnonl, (IID, 1999a) found lhal a Iargo proporlion of lhon aro oxpocling
groalor loan conlribulions, noro sophislicalod poopIo nanagononl praclicos and
procossos for nanaging InovIodgo. As lho IID connonlod, ´HR has a pivolaI roIo in
dovoIoping lho bohaviours and cuIluro lo supporl lho doIivory of lhoso slralogios.'
CHANCL MANACLMLN1
Thc changc procc··
ConcopluaIIy, lho chango procoss slarls vilh an avaronoss of lho nood for chango. An
anaIysis of lhis silualion and lho faclors lhal havo croalod il Ioads lo a diagnosis of
lhoir dislinclivo characlorislics and an indicalion of lho diroclion in vhich aclion
noods lo bo laIon. IossibIo coursos of aclion can lhon bo idonlifiod and ovaIualod and
a choico nado of lho proforrod aclion.
Il is lhon nocossary lo docido hov lo gol fron horo lo lhoro. Managing chango
during lhis lransilion slalo is a crilicaI phaso in lho chango procoss. Il is horo lhal lho
probIons of inlroducing chango onorgo and havo lo bo nanagod. Thoso probIons
can incIudo rosislanco lo chango, Iov slabiIily, high IovoIs of slross, nisdiroclod
onorgy, confIicl and Ioss of nononlun. Honco lho nood lo do ovorylhing possibIo lo
anlicipalo roaclions and IiIoIy inpodinonls lo lho inlroduclion of chango.
Tho inslaIIalion slago can aIso bo painfuI. Whon pIanning chango lhoro is a
londoncy for poopIo lo lhinI lhal il viII bo an onliroIy IogicaI and Iinoar procoss of
going fron A lo B. Il is nol IiIo lhal al aII. As doscribod by Iolligrov and Whipp
(1991), lho inpIononlalion of chango is an íloralivo, cunuIalivo and rofornuIalion-
in-uso procoss'.
To nanago chango, il is firsl nocossary lo undorsland lho lypos of chango and vhy
poopIo rosisl chango. Il is inporlanl lo boar in nind lhal vhiIo lhoso vanling chango
nood lo bo conslanl aboul onds, lhoy havo lo bo fIoxibIo aboul noans. This
roquiros lhon lo cono lo an undorslanding of lho various nodoIs of chango lhal
havo boon dovoIopod. In lho Iighl of an undorslanding of lhoso nodoIs lhoy viII bo
bollor oquippod lo naIo uso of lho guidoIinos for chango sol oul al lho ond of lhis
soclion.
T,pc· of changc
Thoro aro lvo nain lypos of chango: slralogic and oporalionaI.
Stratcgic cbangc
Slralogic chango is concornod vilh organizalionaI lransfornalion as doscribod in lho
Iasl soclion of lhis chaplor. Il doaIs vilh broad, Iong-lorn and organizalion-vido
issuos. Il is aboul noving lo a fuluro slalo, vhich has boon dofinod gonoraIIy in lorns
of slralogic vision and scopo. Il viII covor lho purposo and nission of lho organiza-
lion, ils corporalo phiIosophy on such nallors as grovlh, quaIily, innovalion and
vaIuos concorning poopIo, lho cuslonor noods sorvod and lho lochnoIogios
onpIoyod. This ovoraII dofinilion Ioads lo spocificalions of conpolilivo posilioning
and slralogic goaIs for achioving and nainlaining conpolilivo advanlago and for
producl-narIol dovoIopnonl. Thoso goaIs aro supporlod by poIicios concorning
narIoling, saIos, nanufacluring, producl and procoss dovoIopnonl, financo and
hunan rosourco nanagononl.
Slralogic chango laIos pIaco vilhin lho conloxl of lho oxlornaI conpolilivo,
ocononic and sociaI onvironnonl, and lho organizalion's inlornaI rosourcos, capabiI-
ilios, cuIluro, slrucluro and syslons. Ils succossfuI inpIononlalion roquiros lhorough
anaIysis and undorslanding of lhoso faclors in lho fornuIalion and pIanning slagos.
Tho uIlinalo achiovononl of suslainabIo conpolilivo advanlago roIios on lho quaIilios
dofinod by Iolligrov and Whipp (1991), nanoIy: ´Tho capacily of lho firn lo idonlify
and undorsland lho conpolilivo forcos in pIay and hov lhoy chango ovor lino, IinIod
lo lho conpolonco of a businoss lo nobiIizo and nanago lho rosourcos nocossary for
lho choson conpolilivo rosponso lhrough lino.'
Slralogic chango, hovovor, shouId nol bo lroalod sinpIislicaIIy as a Iinoar procoss
of golling fron A lo B vhich can bo pIannod and oxoculod as a IogicaI soquonco of
ovonls. Iolligrov and Whipp (1991) issuod lho foIIoving varning basod on lhoir
rosoarch inlo conpolilivonoss and nanaging chango in lho nolor, financiaI sorvicos,
insuranco and pubIishing induslrios:
1ho procoss by vhìch strutogìc chungos uro mudo soídom movos dìroctíy through nout,
succossìvo stugos ol unuíysìs, choìco und ìmpíomontutìon. Chungos ìn tho lìrm's onvì-
ronmont porsìstontíy throuton tho courso und íogìc ol strutogìc chungos: dìíommu
ubounds. \o concíudo thut ono ol tho dolìnìng louturos ol tho procoss, ìn so lur us
munugomont uctìon ìs concornod, ìs umbìguìty, soídom ìs thoro un ousìíy ìsoíutod íogìc
to strutogìc chungo. lnstoud, thut procoss muy dorìvo ìts motìvo lorco lrom un umuígum
ol oconomìc, porsonuí und poíìtìcuí ìmporutìvos. 1hoìr ìntroductìon through tìmo
roquìros thut thoso rosponsìbío lor munugìng thut procoss muko contìnuuí ussossmonts,
ropoutod choìcos und muítìpío ud¡ustmonts.
OpcrationaI cbangc
OporalionaI chango roIalos lo nov syslons, procoduros, slrucluros or lochnoIogy
vhich viII havo an innodialo offocl on vorIing arrangononls vilhin a parl of lho
organizalion. Bul lhoir inpacl on poopIo can bo noro significanl lhan broador
slralogic chango and lhoy havo lo bo handIod ¡usl as carofuIIy.
Rc·í·|ancc |o changc
Wby pcopIc rcsist cbangc
IoopIo rosisl chango bocauso il is soon as a lhroal lo faniIiar pallorns of bohaviour as
voII as lo slalus and financiaI rovards. }oan Woodvard (1968) nado lhis poinl
cIoarIy:
\hon vo tuík ubout rosìstunco to chungo vo tond to ìmpíy thut munugomont ìs uívuys
rutìonuí ìn chungìng ìts dìroctìon, und thut ompíoyoos uro stupìd, omotìonuí or ìrrutìonuí
ìn not rospondìng ìn tho vuy thoy shouíd. ßut ìl un ìndìvìduuí ìs goìng to bo vorso oll,
oxpíìcìtíy or ìmpíìcìtíy, vhon tho proposod chungos huvo boon mudo, uny rosìstunco ìs
ontìroíy rutìonuí ìn torms ol hìs ovn bost ìntorost. 1ho ìntorosts ol tho orgunìzutìon und
tho ìndìvìduuí do not uívuys coìncìdo.
SpocificaIIy, lho nain roasons for rosisling chango aro as foIIovs:
1|c s|cc| cj i|c ncu ÷ poopIo aro suspicious of anylhing vhich lhoy porcoivo viII
upsol lhoir oslabIishod roulinos, nolhods of vorIing or condilions of onpIoy-
nonl. Thoy do nol vanl lo Ioso lho socurily of vhal is faniIiar lo lhon. Thoy nay
nol boIiovo slalononls by nanagononl lhal lho chango is for lhoir bonofil as voII
as lhal of lho organizalion, sonolinos vilh good roason. Thoy nay fooI lhal
nanagononl has uIlorior nolivos and, sonolinos, lho Ioudor lho proloslalions of
nanagononls, lho Ioss lhoy viII bo boIiovod.
|ccncmic jccrs ÷ Ioss of nonoy, lhroals lo ¡ob socurily.
lnccntcnicncc ÷ lho chango viII naIo Iifo noro difficuIl.
Unccriciniq ÷ chango can bo vorrying bocauso of uncorlainly aboul ils IiIoIy
inpacl.
Sqm|clic jccrs ÷ a snaII chango lhal nay affocl sono lroasurod synboI, such as a
soparalo offico or a rosorvod parIing spaco, nay synboIizo big onos, ospociaIIy
vhon onpIoyoos aro uncorlain aboul hov oxlonsivo lho progranno of chango
viII bo.
1|rcci ic inicrpcrscncl rclciicns|ips ÷ anylhing lhal disrupls lho cuslonary sociaI
roIalionships and slandards of lho group viII bo rosislod.
1|rcci ic sicius cr s|ill ÷ lho chango is porcoivod as roducing lho slalus of individ-
uaIs or as do-sIiIIing lhon.
Ccmpcicncc jccrs ÷ concorn aboul lho abiIily lo copo vilh nov donands or lo
acquiro nov sIiIIs.
Ovcrcoming rcsistancc to cbangc
Rosislanco lo chango can bo difficuIl lo ovorcono ovon vhon il is nol dolrinonlaI lo
lhoso concornod. Bul lho allonpl nusl bo nado. Tho firsl slop is lo anaIyso lho polon-
liaI inpacl of chango by considoring hov il viII affocl poopIo in lhoir ¡obs. Tho
anaIysis shouId indicalo vhich aspocls of lho proposod chango nay bo supporlod
gonoraIIy or by spocifiod individuaIs and vhich aspocls nay bo rosislod. So far as
possibIo, lho polonliaIIy hosliIo or nogalivo roaclions of poopIo shouId bo idonlifiod,
laIing inlo accounl aII lho possibIo roasons for rosisling chango Iislod abovo. Il is
nocossary lo lry lo undorsland lho IiIoIy fooIings and foars of lhoso affoclod so lhal
unnocossary vorrios can bo roIiovod and, as far as possibIo, anbiguilios can bo
rosoIvod. In naIing lhis anaIysis, lho individuaI inlroducing lho chango, vho is
sonolinos caIIod lho ćhango agonl', shouId rocognizo lhal nov idoas aro IiIoIy lo bo
suspocl and shouId naIo anpIo provision for lho discussion of roaclions lo proposaIs
lo onsuro conpIolo undorslanding of lhon.
InvoIvononl in lho chango procoss givos poopIo lho chanco lo raiso and rosoIvo
lhoir concorns and naIo suggoslions aboul lho forn of lho chango and hov il shouId
bo inlroducod. Tho ain is lo gol óvnorship' ÷ a fooIing anongsl poopIo lhal lho
chango is sonolhing lhal lhoy aro happy lo Iivo vilh bocauso lhoy havo boon
invoIvod in ils pIanning and inlroduclion ÷ il has bocono i|cir chango.
Connunicalions aboul lho proposod chango shouId bo carofuIIy proparod and
vordod so lhal unnocossary foars aro aIIayod. AII lho avaiIabIo channoIs as doscribod
in Chaplor 54 shouId bo usod, bul faco-lo-faco connunicalions dirocl fron nanagors
lo individuaIs or lhrough a loan briofing syslon aro bosl.
Changc modcí·
Tho bosl-Inovn chango nodoIs aro lhoso dovoIopod by Lovin (1951) and BocIhard
(1969). Bul olhor inporlanl conlribulions lo an undorslanding of lho nochanisns for
chango havo boon nado by ThurIoy (1979), Quinn (1980), NadIor and Tushnan
(1980), Bandura (1986) and Boor ci cl (1990).
tcwin
Tho basic nochanisns for nanaging chango, according lo Lovin (1951), aro as
foIIovs:
Unjrcczing ÷ aIloring lho prosonl slabIo oquiIibriun vhich supporls oxisling
bohaviours and alliludos. This procoss nusl laIo accounl of lho inhoronl lhroals
lhal chango prosonls lo poopIo and lho nood lo nolivalo lhoso affoclod lo allain
lho naluraI slalo of oquiIibriun by accopling chango.
C|cnging ÷ dovoIoping nov rosponsos basod on nov infornalion.
Rcjrcczing ÷ slabiIizing lho chango by inlroducing lho nov rosponsos inlo lho
porsonaIilios of lhoso concornod.
Lovin aIso suggoslod a nolhodoIogy for anaIysing chango vhich ho caIIod ´fioId
forco anaIysis'. This invoIvos:
anaIysing lho roslraining or driving forcos lhal viII affocl lho lransilion lo lho
fuluro slalo, lhoso roslraining forcos viII incIudo lho roaclions of lhoso vho soo
chango as unnocossary or as consliluling a lhroal,
assossing vhich of lho driving or roslraining forcos aro crilicaI,
laIing slops bolh lo incroaso lho crilicaI driving forcos and lo docroaso lho crilicaI
roslraining forcos.
ßcckbard
According lo BocIhard (1969), a chango progranno shouId incorporalo lho foIIoving
procossos:
solling goaIs and dofining lho fuluro slalo or organizalionaI condilions dosirod
aflor lho chango,
diagnosing lho prosonl condilion in roIalion lo lhoso goaIs,
dofining lho lransilion slalo aclivilios and connilnonls roquirod lo nool lho
fuluro slalo,
dovoIoping slralogios and aclion pIans for nanaging lhis lransilion in lho Iighl of
an anaIysis of lho faclors IiIoIy lo affocl lho inlroduclion of chango.

ThurIoy (1979) doscribod lho foIIoving fivo approachos lo nanaging chango:
Dircciitc ÷ lho inposilion of chango in crisis silualions or vhon olhor nolhods
havo faiIod. This is dono by lho oxorciso of nanagoriaI povor vilhoul consuIla-
lion.
8crgcinc! ÷ lhis approach rocognizos lhal povor is sharod bolvoon lho onpIoyor
and lho onpIoyod and lhal chango roquiros nogolialion, conproniso and agroo-
nonl boforo boing inpIononlod.
´Hccris cn! min!s´ ÷ an aII-onbracing lhrusl lo chango lho alliludos, vaIuos and
boIiofs of lho vhoIo vorIforco. This ńornalivo' approach (io ono lhal slarls fron
a dofinilion of vhal nanagononl lhinIs is righl or ńornaI') sooIs ćonnilnonl'
and ´sharod vision' bul doos nol nocossariIy incIudo invoIvononl or parlicipalion.
Anclqiiccl ÷ a lhoorolicaI approach lo lho chango procoss using nodoIs of
chango such as lhoso doscribod abovo. Il procoods soquonliaIIy fron lho
anaIysis and diagnosis of lho silualion, lhrough lho solling of ob¡oclivos, lho
dosign of lho chango procoss, lho ovaIualion of lho rosuIls and, finaIIy, lho
dolorninalion of lho ob¡oclivos for lho noxl slago in lho chango procoss. This
is lho ralionaI and IogicaI approach nuch favourod by consuIlanls ÷ oxlornaI
and inlornaI. Bul chango soIdon procoods as snoolhIy as lhis nodoI vouId
suggosl. Enolions, povor poIilics and oxlornaI prossuros noan lhal lho
ralionaI approach, aIlhough il nighl bo lho righl vay lo slarl, is difficuIl lo
suslain.
Aciicn-|csc! ÷ lhis rocognizos lhal lho vay nanagors bohavo in praclico boars IillIo
rosonbIanco lo lho anaIylicaI, lhoorolicaI nodoI. Tho dislinclion bolvoon
nanagoriaI lhoughl and nanagoriaI aclion bIurs in praclico lo lho poinl of invisi-
biIily. Whal nanagors lhinI is vhal lhoy do. RoaI Iifo lhoroforo oflon rosuIls in a
´roady, ain, firo' approach lo chango nanagononl. This lypicaI approach lo
chango slarls vilh a broad boIiof lhal sono sorl of probIon oxisls, aIlhough il nay
nol bo voII dofinod. Tho idonlificalion of possibIo soIulions, oflon on a lriaI and
orror basis, Ioads lo a cIarificalion of lho naluro of lho probIon and a sharod
undorslanding of a possibIo oplinaI soIulion, or al Ioasl a franovorI vilhin
vhich soIulions can bo discovorod.
Quinn
According lo Quinn (1980), lho approach lo slralogic chango is characlorizod as a
procoss of arlfuIIy bIonding ´fornaI anaIysis, bohaviouraI lochniquos and povor poIi-
lics lo bring aboul cohosivo slop-by-slop novononl lovards onds vhich voro
iniliaIIy concoivod, bul vhich aro conslanlIy rofinod and roshapod as nov inforna-
lion appoars. Thoir inlograling nolhodoIogy can bosl bo doscribod as ÍogicaI incro-
nonlalion¨.' Quinn onphasizos lhal il is nocossary lo:
croalo avaronoss and connilnonl incrononlaIIy,
broadon poIilicaI supporl,
nanago coaIilions,
onpovor chanpions.
NadIcr and Tusbman
Tho guidoIinos producod by NadIor and Tushnan (1980) on inpIononling chango
voro:
Mciitcic in ordor lo achiovo changos in bohaviour by individuaIs.
Mcncgc i|c ircnsiiicn by naIing organizalionaI arrangononls dosignod lo assuro
lhal conlroI is nainlainod during and aflor lho lransilion, and by dovoIoping and
connunicaling a cIoar inago of lho fuluro.
S|cpc i|c pcliiiccl !qncmics cj c|cngc so lhal povor conlros dovoIop lhal supporl
lho chango ralhor lhan bIocI il.
8uil! in sic|iliiq of slrucluros and procossos lo sorvo as anchors for poopIo lo hoId
on lo. Organizalions and individuaIs can onIy sland so nuch uncorlainly and
lurbuIonco (honco lho onphasis by Quinn (1980) on lho nood for an incrononlaI
approach).
ßandura
Tho vays in vhich poopIo chango voro doscribod by Bandura (1986) as foIIovs:
1. IoopIo naIo conscious choicos aboul lhoir bohaviours.
2. Tho infornalion poopIo uso lo naIo lhoir choicos conos fron lhoir onviron-
nonl.
3. Thoir choicos aro basod upon:
÷ lho lhings lhal aro inporlanl lo lhon,
÷ lho viovs lhoy havo aboul lhoir ovn abiIilios lo bohavo in corlain vays,
÷ lho consoquoncos lhoy lhinI viII accruo lo vhalovor bohaviour lhoy docido lo
ongago in.
For lhoso concornod in chango nanagononl, lho inpIicalions of lhis lhoory aro
lhal:
lho lighlor lho IinI bolvoon a parlicuIar bohaviour and a parlicuIar oulcono, lho
noro IiIoIy il is lhal vo viII ongago in lhal bohaviour,
lho noro dosirabIo lho oulcono, lho noro IiIoIy il is lhal vo viII ongago in bohav-
iour lhal vo boIiovo viII Ioad lo il,
lho noro confidonl vo aro lhal vo can acluaIIy assuno a nov bohaviour, lho noro
IiIoIy vo aro lo lry il.
To chango poopIo's bohaviour, lhoroforo, vo havo firsl lo chango lho onvironnonl
vilhin vhich lhoy vorI, socondIy, convinco lhon lhal lho nov bohaviour is sono-
lhing lhoy can acconpIish (lraining is inporlanl) and, lhirdIy, porsuado lhon lhal il
viII Ioad lo an oulcono lhal lhoy viII vaIuo. Nono of lhoso slops is oasy.
ßccr, Fiscnstat and Spcctor
MichaoI Boor (1990) and his coIIoaguos suggoslod in a soninaI Hcrtcr! 8usincss
Rcticu arlicIo, ´Why chango prograns don'l produco chango', lhal nosl such
progrannos aro guidod by a lhoory of chango lhal is fundanonlaIIy fIavod. This
lhoory slalos lhal changos in alliludos Ioad lo changos in bohaviour. Áccording lo
lhis nodoI, chango is IiIo a convorsion oxporionco. Onco poopIo ´gol roIigion¨,
changos in lhoir bohaviour viII suroIy foIIov.' Thoy boIiovo lhal lhis lhoory gols lho
chango procoss oxaclIy bacIvards:
ln luct, ìndìvìduuí bohuvìour ìs povorluííy shupod by tho orgunìzutìonuí roíos poopío
píuy. 1ho most olloctìvo vuy to chungo bohuvìour, thoroloro, ìs to put poopío ìnto u nov
orgunìzutìonuí contoxt, vhìch ìmposos nov roíos, rosponsìbìíìtìos und roíutìonshìps on
thom. 1hìs croutos u sìtuutìon thut ìn u sonso 'lorcos´ nov uttìtudos und bohuvìour on
poopío.
Thoy proscribo six slops lo offoclivo chango, vhich conconlralo on vhal lhoy caII ´lasI
aIignnonl' ÷ roorganizing onpIoyoos' roIos, rosponsibiIilios and roIalionships lo soIvo
spocific businoss probIons in snaII unils vhoro goaIs and lasIs can bo cIoarIy
dofinod. Tho ain of foIIoving lho ovorIapping slops is lo buiId a soIf-roinforcing cycIo
of connilnonl, coordinalion and conpolonco. Tho slops aro:
1. MobiIizo connilnonl lo chango lhrough lho ¡oinl anaIysis of probIons.
2. DovoIop a sharod vision of hov lo organizo and nanago lo achiovo goaIs such as
conpolilivonoss.
3. Foslor consonsus for lho nov vision, conpolonco lo onacl il, and cohosion lo
novo il aIong.
4. Sproad rovilaIizalion lo aII doparlnonls vilhoul pushing il fron lho lop ÷
don'l forco lho issuo, Iol oach doparlnonl find ils ovn vay lo lho nov organiza-
lion.
5. InslilulionaIizo rovilaIizalion lhrough fornaI poIicios, syslons and slrucluros.
6. Monilor and ad¡usl slralogios in rosponso lo probIons in lho rovilaIizalion
procoss.
Cuídcíínc· for changc managcmcn|
Tho achiovononl of suslainabIo chango roquiros slrong connilnonl and
visionary Ioadorship fron lho lop.
Undorslanding is nocossary of lho cuIluro of lho organizalion and lho Iovors for
chango lhal aro nosl IiIoIy lo bo offoclivo in lhal cuIluro.
Thoso concornod vilh nanaging chango al aII IovoIs shouId havo lho lonpora-
nonl and Ioadorship sIiIIs approprialo lo lho circunslancos of lho organizalion
and ils chango slralogios.
Il is inporlanl lo buiId a vorIing onvironnonl lhal is conducivo lo chango. This
noans dovoIoping lho firn as a Íoarning organizalion'.
IoopIo supporl vhal lhoy hoIp lo croalo. Connilnonl lo chango is inprovod if
lhoso affoclod by chango aro aIIovod lo parlicipalo as fuIIy as possibIo in pIanning
and inpIononling il. Tho ain shouId bo lo gol lhon lo óvn' lho chango as sono-
lhing lhoy vanl and viII bo gIad lo Iivo vilh.
Tho rovard syslon shouId oncourago innovalion and rocognizo succoss in
achioving chango.
Chango viII aIvays invoIvo faiIuro as voII as succoss. Tho faiIuros nusl bo
oxpoclod and Ioarnod fron.
Hard ovidonco and dala on lho nood for chango aro lho nosl povorfuI looIs for ils
achiovononl, bul oslabIishing lho nood for chango is oasior lhan dociding hov lo
salisfy il.
Il is oasior lo chango bohaviour by changing procossos, slrucluro and syslons
lhan lo chango alliludos or lho corporalo cuIluro.
Thoro aro aIvays poopIo in organizalions vho can acl as chanpions of chango.
Thoy viII voIcono lho chaIIongos and opporlunilios lhal chango can provido.
Thoy aro lho onos lo bo choson as chango agonls.
Crgunìzutìonuí dovoíopmont, chungo und trunslormutìon 35l
Rosislanco lo chango is inovilabIo if lho individuaIs concornod fooI lhal lhoy aro
going lo bo vorso off ÷ inpIicilIy or oxpIicilIy. Tho inopl nanagononl of chango
viII produco lhal roaclion.
In an ago of gIobaI conpolilion, lochnoIogicaI innovalion, lurbuIonco, disconli-
nuily, ovon chaos, chango is inovilabIo and nocossary. Tho organizalion nusl do
aII il can lo oxpIain vhy chango is ossonliaI and hov il viII affocl ovoryono.
Moroovor, ovory offorl nusl bo nado lo prolocl lho inlorosls of lhoso affoclod by
chango.
CkCANlZA1lCNAL 1kANSlCkMA1lCN
Dcfíncd
Transfornalion, according lo Wobslor's Diclionary, is: 'A chango in lho shapo,
slrucluro, naluro of sonolhing´. OrganizalionaI lransfornalion is lho procoss of
onsuring lhal an organizalion can dovoIop and inpIononl na¡or chango progrannos
lhal viII onsuro lhal il rosponds slralogicaIIy lo nov donands and conlinuos lo func-
lion offoclivoIy in lho dynanic onvironnonl in vhich il oporalos. OrganizalionaI
lransfornalion aclivilios nay invoIvo radicaI changos lo lho slrucluro, cuIluro
and procossos of lho organizalion ÷ lho vay il IooIs al lho vorId. This nay bo in
rosponso lo conpolilivo prossuros, norgors, acquisilions, invoslnonls, disinvosl-
nonls, changos in lochnoIogy, producl Iinos, narIols, cosl roduclion oxorcisos and
docisions lo dovnsizo or oulsourco vorI. TransfornalionaI chango nay bo forcod on
an organizalion by invoslors or govornnonl docisions. Il nay bo inilialod by a nov
chiof oxoculivo and lop nanagononl loan vilh a ronil lo ´lurn round' lho businoss.
TransfornalionaI chango noans lhal significanl and far-roaching dovoIopnonls aro
pIannod and inpIononlod in corporalo slrucluros and organizalion-vido procossos.
Tho chango is noilhor incrononlaI (bil by bil) nor lransaclionaI (concornod soIoIy vilh
syslons and procoduros). TransaclionaI chango, according lo IascaIo (1990), is noroIy
concornod vilh lho aIloralion of vays in vhich lho organizalion doos businoss and
poopIo inloracl vilh ono anolhor on a day-lo-day basis, and ís offoclivo vhon vhal
you vanl is noro of vhal you'vo aIroady gol'. Ho advocalos a ´disconlinuous
inprovononl in capabiIily' and lhis ho doscribos as lransfornalion.
Thc dí·|ínc|íon bc|vccn organí2a|íonaí |ran·forma|íon and
organí2a|íon dcvcíopmcn|
OrganizalionaI lransfornalion progrannos aro businoss-Iod. Thoy focus on vhal
noods lo bo dono lo onsuro lhal lho businoss porforns noro offoclivoIy in adding
vaIuo, ospociaIIy for ils ovnors, and achioving conpolilivo advanlago. Thoy viII
bo concornod vilh buiIding slralogic capabiIily and inproving lho vays in vhich
lho businoss roachos ils goaIs. This noans considoring vhal noods lo bo dono
lo onsuro lhal poopIo vorI and inloracl voII, bul lhoy aro nol doninalod by
lho concopls of bohaviouraI scionco, as vas lho caso in lradilionaI OD inlorvon-
lions.
T,pc· of |ran·forma|íonaí changc
Tho four lypos of lransfornalionaI chango as idonlifiod by BocIhard (1989) aro:
c c|cngc in u|ci !ritcs i|c crgcnizciicn ÷ for oxanpIo, a chango fron boing produc-
lion-drivon lo boing narIol-drivon vouId bo lransfornalionaI,
c jun!cmcnicl c|cngc in i|c rclciicns|ips |ciuccn cr cmcng crgcnizciicncl pcris ÷ for
oxanpIo, doconlraIizalion,
c mcjcr c|cngc in i|c ucqs cj !cing ucr| ÷ for oxanpIo, lho inlroduclion of nov loch-
noIogy such as conpulor-inlogralod nanufacluring,
c |csic, culiurcl c|cngc in ncrms, tclucs cr rcsccrc| sqsicms ÷ for oxanpIo, dovoIoping
a cuslonor-focusod cuIluro.
Tran·forma|íon |hrough ícadcr·híp
Transfornalion progrannos aro Iod fron lho lop vilhin lho organizalion. Thoy
do nol roIy on an oxlornaI ćhango agonl' as did lradilionaI OD inlorvon-
lions, aIlhough spociaIisl oxlornaI advico nighl bo oblainod on aspocls of lho lrans-
fornalion such as slralogic pIanning, roorganizalion or dovoIoping nov rovard
procossos.
Tho proroquisilo for a succossfuI progranno is lho prosonco of a lransfornalionaI
Ioador vho, as dofinod by Burns (1978), nolivalos olhors lo slrivo for highor-ordor
goaIs ralhor lhan noroIy shorl-lorn inlorosl. TransfornalionaI Ioadors go boyond
doaIing vilh day-lo-day nanagononl probIons, lhoy connil poopIo lo aclion
and focus on lho dovoIopnonl of nov IovoIs of avaronoss of vhoro lho fulur Iios, and
connilnonl lo achioving lhal fuluro. Burns conlrasls lransfornalionaI Ioadors vilh
lransaclionaI Ioadors vho oporalo by buiIding up a nolvorI of inlorporsonaI lransac-
lions in a slabIo silualion and vho onIisl conpIianco ralhor lhan connilnonl
lhrough lho rovard syslon and lho oxorciso of aulhorily and povor. TransaclionaI
Ioadors nay bo good al doaIing vilh horo-and-nov probIons bul lhoy viII nol
provido lho vision roquirod lo lransforn lho fuluro.
\anagíng |hc |ran·í|íon
Tho lransilion fron vhoro lho organizalion is lo vhoro lho organizalion vanls lo bo is
lho crilicaI parl of a lransfornalion progranno. Il is during lho lransilion poriod of
golling fron horo lo lhoro lhal chango laIos pIaco. Transilion nanagononl slarls fron
a dofinilion of lho fuluro slalo and a diagnosis of lho prosonl slalo. Il is lhon nocossary
lo dofino vhal has lo bo dono lo achiovo lho lransfornalion. This noans dociding on
lho nov procossos, syslons, procoduros, slrucluros, producls and narIols lo bo
dovoIopod. Having dofinod lhoso, lho vorI can bo progrannod and lho rosourcos
roquirod (poopIo, nonoy, oquipnonl and lino) can bo dofinod. Tho pIan for
nanaging lho lransilion shouId incIudo provisions for invoIving poopIo in lho
procoss and for connunicaling lo lhon aboul vhal is happoning, vhy il is
happoning and hov il viII affocl lhon. CIoarIy lho ains aro lo gol as nany poopIo as
possibIo connillod lo lho chango.
Thc |ran·forma|íon programmc
Tho oighl slops roquirod lo lransforn an organizalion havo boon sunnod up by
Kollor (1995) as foIIovs:
1. |sic|lis|ing c scnsc cj urgcncq
÷ Exanining narIol and conpolilivo roaIilios
÷ Idonlifying and discussing crisos, polonliaI crisos, or na¡or opporlunilios
2. lcrming c pcucrjul gui!ing cccliiicn
÷ AssonbIing a group vilh onough povor lo Ioad lho chango offorl
÷ Encouraging lho group lo vorI logolhor as a loan
3. Crcciing c tisicn
÷ Croaling a vision lo hoIp dirocl lho chango offorl
÷ DovoIoping slralogios for achioving lhal vision
4. Ccmmunicciing i|c tisicn
÷ Using ovory vohicIo possibIo lo connunicalo lho nov vision and slralogios
÷ Toaching nov bohaviours by lho oxanpIo of lho guiding coaIilion
5. |mpcucring ci|crs ic cci cn i|c tisicn
÷ Golling rid of obslacIos lo chango
÷ Changing syslons or slrucluros lhal soriousIy undornino lho vision
÷ Encouraging risI laIing and non-lradilionaI idoas, aclivilios and aclions
6. Plcnning jcr cn! crcciing s|cri-icrm uins
÷ IIanning for visibIo porfornanco inprovononl
÷ Croaling lhoso inprovononls
÷ Rocognizing and rovarding onpIoyoos invoIvod in lho inprovononls
7. Ccnscli!ciing imprctcmcnis cn! prc!ucing siill mcrc c|cngc
÷ Using incroasod crodibiIily lo chango syslons, slrucluros and poIicios lhal
don'l fil lho vision
÷ Hiring, pronoling and dovoIoping onpIoyoos vho can inpIononl lho
vision
÷ Roinvigoraling lho procoss vilh nov pro¡ocls, lhonos and chango agonls
8. lnsiiiuiicnclizing ncu cpprccc|cs
÷ ArlicuIaling lho connoclions bolvoon lho nov bohaviours and corporalo
succoss
÷ DovoIoping lho noans lo onsuro Ioadorship dovoIopnonl and succossion.
Thc roíc of HR ín organí2a|íonaí |ran·forma|íon
HR can and shouId pIay a Ioy roIo in organizalionaI lransilion and lransfornalion
progrannos. Il can provido hoIp and guidanco in anaIysis and diagnosis, high-
Iighling lho poopIo issuos lhal viII fundanonlaIIy affocl lho succoss of lho
progranno. HR can adviso on rosourcing lho progranno and pIanning and inpIo-
nonling lho vilaI lraining, rovard, connunicalions and invoIvononl aspocls of lho
procoss. Il can anlicipalo poopIo probIons and doaI vilh lhon boforo lhoy bocono
sorious. If lho progranno doos invoIvo roslrucluring and dovnsizing, HR can adviso
on hov lhis shouId bo dono hunanoIy and vilh lho nininun disruplion lo poopIo's
Iivos.
DLVLLClMLN1 AND CHANCL lkCCLSSLS
Tcam buíídíng
Toan-buiIding aclivilios ain lo inprovo and dovoIop lho offoclivonoss of a group of
poopIo vho vorI (pornanonlIy or lonporariIy) logolhor. This inprovononl nay bo
dofinod in lorns of oulpuls, for oxanpIo lho spood and quaIily of lho docisions and
aclions producod by lho loan. Il nay aIso bo dofinod in noro nobuIous lorns, such as
lho quaIily of roIalionships or groalor cooporalion. Tho aclivilios in loan-buiIding
progrannos can:
incroaso avaronoss of lho sociaI procossos lhal laIo pIaco vilhin loans,
dovoIop lho inloraclivo or inlorporsonaI sIiIIs lhal onabIo individuaIs lo funclion
offoclivoIy as loan nonbors,
incroaso lho ovoraII offoclivonoss vilh vhich loans oporalo in lho organizalion.
To bo offoclivo, loan-buiIding progrannos shouId bo diroclIy roIovanl lo lho ros-
ponsibiIilios of lho parlicipanls and bo soon as roIovanl by aII parlicipanls. Thoy nood
lo supporl businoss ob¡oclivos, fil in vilh praclicaI vorIing arrangononls and rofIocl
lho vaIuos lho organizalion vishos lo pronolo. Approachos such as aclion Ioarning,
group dynanics, group oxorcisos, inloraclivo sIiIIs lraining, inloraclivo vidoo, roIo-
pIaying and sinuIalion can bo usod. Toan-buiIding lraining is oflon basod on oilhor
BoIbin or Margorison and McCann cIassificalions of loan roIos as Iislod in Chaplor 20.
Ouldoor Ioarning (ouldoor-basod dovoIopnonl) is anolhor good nolhod of
providing loan-buiIding lraining. Il can offor a cIosor approxinalion lo roaIily lhan
olhor forns of lraining. Iarlicipanls lond lo bohavo noro nornaIIy and, paradoxi-
caIIy, il is procisoIy bocauso lho lasIs aro unroIalod lo vorI aclivilios and aro roIa-
livoIy sinpIo lhal lhoy highIighl lho procossos invoIvod in loanvorI and provido a
good basis for idonlifying hov lhoso procossos can bo inprovod.
To|aí quaíí|, managcmcn|
TolaI quaIily nanagononl is an inlonsivo, Iong-lorn offorl diroclod al lho croalion
and nainlonanco of lho high slandards of producl quaIily and sorvicos oxpoclod by
cuslonors. As such, il can oporalo as a na¡or infIuonco in dovoIoping lho cuIluro and
procossos of lho organizalion. Tho ob¡ocl is significanlIy lo incroaso lho avaronoss of
aII onpIoyoos lhal quaIily is vilaI lo lho organizalion's succoss and lhoir fuluro. Tho
businoss nusl bo lransfornod inlo an onlily lhal oxisls lo doIivor vaIuo lo cuslonors
by salisfying lhoir noods.
Con|ínuou· ímprovcmcn|
Conlinuous inprovononl is a nanagononl phiIosophy lhal conlonds lhal lhings can
bo dono bollor. Conlinuous inprovononl is dofinod by Bossanl ci cl (1994) as á
conpany-vido procoss of focusod and conlinuous incrononlaI innovalion suslainod
ovor a poriod of lino'. Tho Ioy vords in lhis dofinilion aro:
lccusc! ÷ conlinuous inprovononl addrossos spocific issuos vhoro lho offoclivo-
noss of oporalions and procossos noods lo bo inprovod, vhoro highor quaIily
producls or sorvicos shouId bo providod and, inporlanlIy, vhoro lho IovoIs of
cuslonor sorvico and salisfaclion nood lo bo onhancod.
Ccniinucus ÷ lho soarch for inprovononl is novor-onding, il is nol a ono-off
canpaign lo doaI vilh isoIalod probIons.
lncrcmcnicl ÷ conlinuous inprovononl is nol aboul naIing suddon quanlun
Ioaps in rosponso lo crisis silualions, il is aboul adopling a sloady, slop-by-slop
approach lo inproving lho vays in vhich lho organizalion goos aboul doing
lhings.
 ÷ conlinuous inprovononl is concornod vilh dovoIoping nov idoas
and approachos lo doaI vilh nov and sonolinos oId probIons and roquirononls.
ßu·ínc·· procc·· rc-cngínccríng
Businoss procoss ro-onginooring as a panacoa onorgod in lho 1990s. Il oxaninos
procossos horizonlaIIy in organizalions lo oslabIish hov lhoy can bo inlogralod noro
offoclivoIy and slroanIinod. Ro-onginooring oxorcisos can provido an ovoraII
approach lo dovoIoping an organizalion bul lhoy oflon proniso noro lhan lhoy
achiovo and lhoy havo boon crilicizod bocauso lhoy pay insufficionl allonlion lo lho
hunan oIononl.
Iorfornanco nanagononl as a hoIislic ÷ aII-onbracing ÷ procoss for nanaging
porfornanco lhroughoul an organizalion is ono of lho nosl connonIy usod inslru-
nonls for inproving organizalionaI offoclivonoss. Il is doscribod in Iarl VII.
loopío rosourcìng
lLClLL kLSCLkClNC DLllNLD
Pccplc rcscurcing is ccnccrnc! uii| cnsuring i|ci i|c crgcnizciicn c|icins cn!
rcicins i|c |umcn ccpiicl ii ncc!s cn! cmplcqs i|cm prc!uciitclq. li is clsc c|cui
i|csc cspccis cj cmplcqmcni prcciicc i|ci crc ccnccrnc! uii| uclccming pccplc ic i|c
crgcnizciicn cn!, ij i|crc is nc clicrnciitc, rclccsing i|cm. li is c |cq pcri cj i|c HRM
prcccss.
lLClLL kLSCLkClNC AND HkM
HRM is jun!cmcnicllq c|cui mcic|ing |umcn rcscurccs ic i|c sircicgic cn! cpcrc-
iicncl ncc!s cj i|c crgcnizciicn cn! cnsuring i|c jull uiilizciicn cj i|csc rcscurccs. li
is ccnccrnc! nci cnlq uii| c|icining cn! |ccping i|c num|cr cn! ¡ucliiq cj sicjj
rc¡uirc! |ui clsc uii| sclcciing cn! prcmciing pccplc u|c ´jii´ i|c culiurc cn! i|c
sircicgic rc¡uircmcnis cj i|c crgcnizciicn.
HRM plcccs mcrc cmp|csis i|cn irc!iiicncl pcrscnncl mcncgcmcni cn jin!ing
pccplc u|csc ciiiiu!cs cn! |c|cticur crc li|clq ic |c ccngrucni uii| u|ci mcncgc-
mcni |clictcs ic |c cpprcpricic cn! ccn!ucitc ic succcss. ln i|c ucr!s cj 1cunlcq
(1989), crgcnizciicns crc ccnccnirciing mcrc cn í|c ciiiiu!incl cn! |c|cticurcl
 
c|crccicrisiics cj cmplcqccs´. 1|is icn!cncq |cs iis !cngcrs. lnnctciitc cn! c!cpiitc
crgcnizciicns ncc! ncn-ccnjcrmisis, ctcn mctcric|s, u|c ccn ´|uc| i|c sqsicm´. lj
mcncgcrs rccruii pccplc ín i|cir cun imcgc´ i|crc is i|c ris| cj sicjjing i|c crgcnizc-
iicn uii| ccnjcrmisi clcncs cn! cj pcrpciuciing c !qsjunciicncl culiurc ÷ cnc i|ci
mcq |ctc |ccn succcssjul in i|c pcsi |ui is nc lcngcr cpprcpricic (nci|ing jcils li|c
succcss).
1|c HRM cpprccc| ic rcscurcing i|crcjcrc cmp|csizcs i|ci mcic|ing rcscurccs ic
crgcnizciicncl rc¡uircmcnis !ccs nci simplq mccn mcinicining i|c sicius ¡uc cn!
pcrpciuciing c mcri|un! culiurc. li ccn cn! cjicn !ccs mccn rc!iccl c|cngcs in
i|in|ing c|cui i|c ccmpcicncics rc¡uirc! in i|c juiurc ic cc|ictc susicinc|lc grcui|
cn! ic cc|ictc culiurcl c|cngc. HRM rcscurcing pclicics c!!rcss iuc jun!cmcnicl
¡ucsiicns.
1. W|ci |in! cj pccplc !c uc ncc! ic ccmpcic cjjcciitclq, ncu cn! in i|c jcrcsccc|lc
juiurc¨
2. W|ci !c uc |ctc ic !c ic ciircci, !ctclcp cn! |ccp i|csc pccplc¨
ín|cgra|íng bu·ínc·· and rc·ourcíng ·|ra|cgíc·
1|c p|ilcscp|q |c|in! i|c HRM cpprccc| ic rcscurcing is i|ci ii is pccplc u|c implc-
mcni i|c sircicgic plcn. As Quinn Mills (1983) |cs pui ii, i|c prcccss is cnc cj ´plcn-
ning uii| pccplc in min!´.
1|c inicgrciicn cj |usincss cn! rcscurcing sircicgics is |csc! cn cn un!crsicn!ing
cj i|c !ircciicn in u|ic| i|c crgcnizciicn is gcing cn! cj i|c rcsuliing |umcn
rcscurcc ncc!s in icrms cj.
num|crs rc¡uirc! in rclciicn ic prcjccic! cciitiiq lctcls,
s|ills rc¡uirc! cn i|c |csis cj icc|nclcgiccl cn! prc!ucifmcr|ci !ctclcpmcnis cn!
sircicgics ic cn|cncc ¡ucliiq cr rc!ucc ccsis,
i|c impcci cj crgcnizciicncl rcsiruciuring cs c rcsuli cj rciicnclizciicn, !cccn-
irclizciicn, !clcqcring, mcrgcrs, prc!uci cr mcr|ci !ctclcpmcni, cr i|c inirc!uc-
iicn cj ncu icc|nclcgq ÷ jcr cxcmplc, ccllulcr mcnujcciuring,
plcns jcr c|cnging i|c culiurc cj i|c crgcnizciicn in suc| crccs cs c|iliiq ic
!clitcr, pcrjcrmcncc sicn!cr!s, ¡ucliiq, cusicmcr scrticc, iccm ucr|ing cn!
jlcxi|iliiq u|ic| in!iccic i|c ncc! jcr pccplc uii| !ijjcrcni ciiiiu!cs, |clicjs cn!
pcrscncl c|crccicrisiics.
1|csc jccicrs uill |c sircnglq injlucncc! |q i|c iqpc cj |usincss sircicgics c!cpic! |q
i|c crgcnizciicn cn! i|c scri cj |usincss ii is in. 1|csc mcq |c cxprcssc! in suc| icrms
360 loopío rosourcìng
cs i|c 8csicn Ccnsuliing Grcup´s clcssijicciicn cj |usincsscs cs uil! cci, sicr, ccs|
ccu cr !cg, cr Milcs cn! Sncu´s (19¯8) iqpclcgq cj !cjcn!cr, prcspccicr cn! cnclqscr
crgcnizciicns.
Rcscurcing sircicgics cxisi ic prcti!c i|c pccplc cn! s|ills rc¡uirc! ic suppcri i|c
|usincss sircicgq, |ui i|cq s|cul! clsc ccniri|uic ic i|c jcrmulciicn cj i|ci sircicgq.
HR !irccicrs |ctc cn c|ligciicn ic pcini cui ic i|cir ccllccgucs i|c |umcn rcscurcc
cppcriuniiics cn! ccnsircinis i|ci uill cjjcci i|c cc|ictcmcni cj sircicgic plcns. ln
mcrgcrs cr cc¡uisiiicns, jcr cxcmplc, i|c c|iliiq cj mcncgcmcni uii|in i|c ccmpcnq
ic |cn!lc i|c ncu siiuciicn cn! i|c ¡ucliiq cj mcncgcmcni in i|c ncu |usincss uill |c
impcricni ccnsi!crciicns.
lLAN
1|is pcri !ccls uii| i|c jcllcuing cspccis cj cmplcqcc rcscurcing.
|umcn rcscurcc plcnning,
iclcni mcncgcmcni,
rccruiimcni,
sclcciicn inicrticuing,
sclcciicn icsiing,
inirc!uciicn ic i|c crgcnizciicn,
rclccsc jrcm i|c crgcnizciicn.
loopío rosourcìng 36l
Humun rosourco píunnìng
1HL kCLL Cl HLMAN kLSCLkCL lLANNlNC
Dcfíní|íon
Hunan rosourco pIanning dolorninos lho hunan rosourcos roquirod by lho organiza-
lion lo achiovo ils slralogic goaIs. As dofinod by BuIIa and Scoll (1994) il is ´lho
procoss for onsuring lhal lho hunan rosourco roquirononls of an organizalion aro
idonlifiod and pIans aro nado for salisfying lhoso roquirononls'. Hunan rosourco
pIanning is basod on lho boIiof lhal poopIo aro an organizalion's nosl inporlanl
slralogic rosourco. Il is gonoraIIy concornod vilh nalching rosourcos lo businoss
noods in lho Iongor lorn, aIlhough il viII sonolinos addross shorlor lorn roquiro-
nonls. Il addrossos hunan rosourco noods bolh in quanlilalivo and quaIilalivo lorns,
vhich noans ansvoring lvo basic quoslions: firsl, hov nany poopIo, and socond,
vhal sorl of poopIo` Hunan rosourco pIanning aIso IooIs al broador issuos roIaling lo
lho vays in vhich poopIo aro onpIoyod and dovoIopod in ordor lo inprovo organiza-
lionaI offoclivonoss. Il can lhoroforo pIay an inporlanl parl in slralogic hunan
rosourco nanagononl.
Human rc·ourcc píanníng and bu·ínc·· píanníng
ConcopluaIIy, hunan rosourco pIanning shouId bo an inlograI parl of businoss pIan-
ning. Tho slralogic pIanning procoss shouId dofino pro¡oclod changos in lho scaIo and

lypos of aclivilios carriod oul by lho organizalion. Il shouId idonlify lho coro conpo-
loncos lho organizalion noods lo achiovo ils goaIs and lhoroforo ils sIiII roquirononls.
Bul lhoro aro oflon Iinilalions lo lho oxlonl lo vhich such pIans aro nado, and indood
lho cIarily of lho pIans, and lhoso nay roslricl lho foasibiIily of dovoIoping inlogralod
hunan rosourco pIans lhal fIov fron lhon.
In so far as lhoro aro arlicuIalod slralogic businoss pIans, hunan rosourco pIanning
inlorprols lhon in lorns of poopIo roquirononls. Bul il nay infIuonco lho businoss
slralogy by draving allonlion lo vays in vhich poopIo couId bo dovoIopod and
dopIoyod noro offoclivoIy lo furlhor lho achiovononl of businoss goaIs as voII as
focusing on any probIons lhal nighl havo lo bo rosoIvod in ordor lo onsuro lhal lho
poopIo roquirod viII bo avaiIabIo and viII bo capabIo of naIing lho nocossary conlri-
bulion. As Quinn MiIIs (1983) indicalos, hunan rosourco pIanning is á docision-
naIing procoss lhal conbinos lhroo inporlanl aclivilios: (1) idonlifying and
acquiring lho righl nunbor of poopIo vilh lho propor sIiIIs, (2) nolivaling lhon lo
achiovo high porfornanco, and (3) croaling inloraclivo IinIs bolvoon businoss ob¡oc-
livos and poopIo-pIanning aclivilios'. In silualions vhoro a cIoar businoss slralogy
doos nol oxisl, hunan rosourco pIanning nay havo lo roIy noro on naIing broad
assunplions aboul lho nood for poopIo in lho fuluro, basod on sono forn of sconario
pIanning. AIlornalivoIy, lho pIanning procoss couId focus on spocific aroas of aclivily
vilhin lho organizalion vhoro il is possibIo lo forocasl IiIoIy fuluro poopIo roquiro-
nonls in lorns of nunbors and sIiIIs, for oxanpIo, scionlisls in a producl dovoIop-
nonl division.
Hard and ·of| human rc·ourcc píanníng
A dislinclion can bo nado bolvoon ´hard' and ´sofl' hunan rosourco pIanning. Tho
fornor is basod on quanlilalivo anaIysis in ordor lo onsuro lhal lho righl nunbor of
lho righl sorl of poopIo aro avaiIabIo vhon noodod. Sofl hunan rosourco pIanning is
concornod vilh onsuring lho avaiIabiIily of poopIo vilh lho righl lypo of alliludos
and nolivalion vho aro connillod lo lho organizalion and ongagod in lhoir vorI,
and bohavo accordingIy. Il is basod on assossnonls of lho roquirononl for lhoso quaI-
ilios, and noasurononls of lho oxlonl lo vhich lhoy oxisl, by lho uso of slaff survoys,
lho anaIysis of lho oulconos of porfornanco nanagononl roviovs and opinions
gonoralod by focus groups.
Thoso assossnonls and anaIysos can rosuIl in pIans for inproving lho vorI onvi-
ronnonl, providing opporlunilios lo dovoIop sIiIIs and caroors and adopling a ´lolaI
rovard' approach vhich focusos on non-financiaI ´roIalionaI' rovards as voII as
lho financiaI ´lransaclionaI' rovards. Thoy can aIso Ioad lo lho croalion of a high
connilnonl nanagononl slralogy vhich incorporalos such approachos as croaling
funclionaI fIoxibiIily, dosigning ¡obs lo provido inlrinsic nolivalion, onphasizing
loan vorIing, do-onphasizing hiorarchios and slalus difforonliaIs, incroasing
onpIoynonl socurily, rovarding poopIo on lho basis of organizalionaI porfornanco,
and onacling organizalion-spocific vaIuos and a cuIluro lhal bind lho organizalion
logolhor and givo il focus. As doscribod by Marchinglon and WiIIinson (1996), sofl
hunan rosourco pIanning ís noro oxpIicilIy focusod on croaling and shaping lho
cuIluro of lho organizalion so lhal lhoro is a cIoar inlogralion bolvoon corporalo goaIs
and onpIoyoo vaIuos, boIiofs and bohaviours'. Bul as lhoy poinl oul, lho sofl vorsion
boconos virluaIIy synonynous vilh lho vhoIo sub¡ocl of hunan rosourco nanago-
nonl.
Human rc·ourcc píanníng and manpovcr píanníng
Hunan rosourco pIanning is indood concornod vilh broador issuos aboul lho
onpIoynonl of poopIo lhan lho lradilionaI quanlilalivo approachos of nanpovor
pIanning. Such approachos, as Liff (2000) connonls, dorivo fron a ralionaI lop-dovn
viov of pIanning in vhich voII loslod quanlilalivo lochniquos aro appIiod lo Iong
lorn assossnonls of suppIy and donand. Sho nolos lhal ´lhoro has boon a shifl fron
roconciIing nunbors of onpIoyoos avaiIabIo vilh prodiclabIo slabIo ¡obs, lovards a
groalor concorn vilh sIiIIs, lhoir dovoIopnonl and dopIoynonl'.
Límí|a|íon· of human rc·ourcc píanníng
Hunan rosourco pIanning is said lo consisl of lhroo cIoar slops:
Forocasling fuluro poopIo noods (donand forocasling).
Forocasling lho fuluro avaiIabiIily of poopIo (suppIy forocasling).
Draving up pIans lo nalch suppIy lo donand.
Bul as Casson (1978) poinlod oul, lhis convonlionaI visdon roprosonls hunan
rosourco pIanning as an áII-onbracing, poIicy-naIing aclivily producing, on a
roIIing basis, prociso forocasls using lochnicaIIy sophislicalod and highIy inlogralod
pIanning syslons'. Ho suggosls lhal il is bollor rogardod as, firsl, a roguIar noniloring
aclivily, lhrough vhich hunan rosourco slocIs and fIovs and lhoir roIalionship lo
businoss noods can bo bollor undorslood, assossod and conlroIIod, probIons high-
Iighlod and a baso oslabIishod fron vhich lo rospond lo unforosoon ovonls, and
socond, an invosligalory aclivily by vhich lho hunan rosourco inpIicalions of parlic-
uIar probIons and chango silualions can bo oxpIorod and lho offocls of aIlornalivo
poIicios and aclions invosligalod.
Humun rosourco píunnìng 365
Ho poinls oul lhal lho spurious procision of quanlifiod slaffing IovoI pIans ´has IillIo
vaIuo vhon roconciIod vilh lho conpIox and froquonlIy changing naluro of
nanpovor, lho businoss and lho oxlornaI onvironnonl'. Tho lypicaI concopl of
hunan rosourco pIanning as a nallor of forocasling lho Iong lorn donand and
suppIy of poopIo faiIs bocauso lho abiIily lo naIo lhoso oslinalos nusl bo sovoroIy
Iinilod by lho difficuIly of prodicling lho infIuonco of oxlornaI ovonls. Thoro is a risI,
in lho vords of HoIIor (1972), lhal ´SonsibIo anlicipalion gols convorlod inlo fooIish
nunbors, and lhoir vaIidily doponds on Iargo, Iooso assunplions.'
Hunan rosourco pIanning loday is noro IiIoIy lo conconlralo on vhal sIiIIs viII
bo noodod in lho fuluro, and nay do no noro lhan provido a broad indicalion of
lho nunbors roquirod in lho Iongor lorn, aIlhough in sono circunslancos il
nighl invoIvo naIing shorl lorn forocasls vhon il is possibIo lo prodicl aclivily
IovoIs and sIiIIs roquirononls vilh a roasonabIo dogroo of accuracy. Such prodiclions
viII oflon bo basod on broad sconarios ralhor lhan on spocific suppIy and donand
forocasls.
Thc íncídcncc of and ra|íonaíc for human rc·ourcc píanníng
AIlhough lho nolion of hunan rosourco pIanning is voII oslabIishod in lho HRM
vocabuIary, il doos nol soon lo bo connonIy praclisod as a Ioy HR aclivily. As
RolhvoII (1995) suggosls, Áparl fron isoIalod oxanpIos, lhoro has boon IillIo
rosoarch ovidonco of incroasod uso or of ils succoss.' Sho oxpIains lho gap bolvoon
lhoory and praclico as arising fron:
lho inpacl of chango and lho difficuIly of prodicling lho fuluro ÷ ´lho nood for
pIanning nay bo in invorso proporlion lo ils foasibiIily',
lho ´shifling IaIoidoscopo' of poIicy priorilios and slralogios vilhin organizalions,
lho dislrusl dispIayod by nany nanagors of lhoory or pIanning ÷ lhoy oflon
profor pragnalic adaplalion lo concopluaIizalion,
lho IacI of ovidonco lhal hunan rosourco pIanning vorIs.
Bo lhal as il nay, il is difficuIl lo ro¡ocl oul of hand lho boIiof lhal sono allonpl shouId
bo nado broadIy lo forocasl fuluro hunan rosourco roquirononls as a basis for pIan-
ning and aclion. HoIIor rofors lo ´sonsibIo anlicipalion', and porhaps lhis is vhal
hunan rosourco pIanning is roaIIy aboul, boaring in nind lhal na¡or changos in lho
oporalions of an organizalion can usuaIIy bo forosoon. If lhal is lho caso, il doos naIo
sonso lo Ioop lracI of dovoIopnonls so lhal lho organizalion is in a bollor posilion lo
doaI vilh rosourcing probIons in good lino.
On lho basis of rosoarch conduclod by lho Inslilulo for EnpIoynonl Sludios, RoiIIy
(1999) has suggoslod a nunbor of roasons vhy organizalions chooso lo ongago
in sono forn of hunan rosourco pIanning. Thoso faII inlo lho foIIoving lhroo
groups.
Plcnning jcr su|sicniitc rccscns. lhal is, lo havo a praclicaI offocl by oplinizing lho
uso of rosourcos and/or naIing lhon noro fIoxibIo, acquiring and nurluring
sIiIIs lhal laIo lino lo dovoIop, idonlifying polonliaI probIons and nininizing
lho chancos of naIing a bad docision.
Plcnning |cccusc cj i|c prcccss |cncjiis vhich invoIvos undorslanding lho prosonl in
ordor lo confronl lho fuluro, chaIIonging assunplions and Iiboraling lhinIing,
naIing oxpIicil docisions vhich can Ialor bo chaIIongod, slanding bacI and
providing an ovorviov, and onsuring lhal Iong lorn lhinIing is nol drivon oul by
shorl lorn focus.
Plcnning jcr crgcnizciicncl rccscns vhich invoIvos connunicaling pIans so as lo
oblain supporl/adhoronco lo lhon, IinIing HR pIans lo businoss pIans so as lo
infIuonco lhon, (ro)gaining corporalo conlroI ovor oporaling unils, and coordi-
naling and inlograling organizalionaI docision naIing and aclions.
Thc organí2a|íonaí con|cx| of human rc·ourcc píanníng
Hunan rosourco pIanning laIos pIaco vilhin lho conloxl of lho organizalion. Tho
oxlonl lo vhich il is usod, and lho approach adoplod, viII bo conlingonl on lho oxlonl
lo vhich nanagononl rocognizos lhal succoss doponds on forocasling fuluro poopIo
roquirononls and inpIononling pIans lo salisfy lhoso roquirononls. Tho approach
viII aIso bo affoclod by lho dogroo lo vhich il is possibIo lo naIo accuralo forocasls.
Organizalions oporaling in lurbuIonl onvironnonls in vhich fuluro aclivily IovoIs aro
difficuIl lo prodicl nay roIy on c! |cc and shorl lorn noasuros lo rocruil and Ioop
poopIo. Hovovor, ovon lhoso businossos nay bonofil fron lhoso aspocls of hunan
rosourco pIanning lhal aro concornod vilh poIicios for allracling and rolaining Ioy
slaff.
Thc íabour mar|c| con|cx|
Tho conloxl for oblaining lho poopIo roquirod viII bo lho Iabour narIols in vhich lho
organizalion is oporaling vhich aro, firsl, lho inlornaI Iabour narIol ÷ lho slocIs and
fIovs of poopIo vilhin lho organizalion vho can bo pronolod, lrainod, or rodopIoyod
lo nool fuluro noods ÷ and socond, lho oxlornaI Iabour narIol ÷ lho oxlornaI IocaI,
rogionaI, nalionaI and inlornalionaI narIols fron vhich difforonl sorls of poopIo can
bo rocruilod. Thoro aro usuaIIy a nunbor of narIols, and lho Iabour suppIy in lhoso
narIols nay vary considorabIy. LiIoIy shorlagos viII nood lo bo idonlifiod so lhal
slops can bo laIon lo doaI vilh lhon, for oxanpIo by dovoIoping a noro allraclivo
ónpIoynonl proposilion'.
As parl of lho hunan rosourco pIanning procoss, an organizalion nay havo lo
fornuIalo ńaIo or buy' poIicy docisions. A ńaIo' poIicy noans lhal lho organiza-
lion profors lo rocruil poopIo al a ¡unior IovoI or as lrainoos, and roIy nainIy on
pronolion fron vilhin and lraining progrannos lo nool fuluro noods. A´buy' poIicy
noans lhal noro roIianco viII bo pIacod on rocruiling fron oulsido ÷ ´bringing frosh
bIood inlo lho organizalion'. In praclico, organizalions lond lo nix lho lvo choicos
logolhor lo varying dogroos, doponding on lho silualion of lho firn and lho lypo of
poopIo invoIvod. A highIy onlropronouriaI conpany oporaling in lurbuIonl condi-
lions, or ono vhich has ¡usl slarlod up, viII probabIy roIy aInosl onliroIy on oxlornaI
rocruilnonl. Whon doaIing vilh InovIodgo vorIors, lhoro nay bo IillIo choico ÷ lhoy
lond lo bo nuch noro nobiIo, and rosourcing slralogy nay havo lo rocognizo lhal
oxlornaI rocruilnonl viII bo lho nain sourco of suppIy. Managononl consuIlancios
lypicaIIy faII inlo lhis calogory. Firns lhal can prodicl poopIo roquirononls fairIy
accuraloIy nay roIy noro on dovoIoping lhoir ovn slaff onco lhoy havo boon
rocruilod.
AlMS Cl HLMAN kLSCLkCL lLANNlNC
Tho ains of hunan rosourco pIanning in any organizalion viII dopond IargoIy on ils
conloxl bul in gonoraI lorns, lho lypicaI ains nighl bo lo:
allracl and rolain lho nunbor of poopIo roquirod vilh lho approprialo sIiIIs,
oxporliso and conpoloncios,
anlicipalo lho probIons of polonliaI surpIusos or doficils of poopIo,
dovoIop a voII lrainod and fIoxibIo vorIforco, lhus conlribuling lo lho organiza-
lion's abiIily lo adapl lo an uncorlain and changing onvironnonl,
roducos dopondonco on oxlornaI rocruilnonl vhon Ioy sIiIIs aro in shorl suppIy
by fornuIaling rolonlion, as voII as onpIoyoo dovoIopnonl slralogios,
inprovo lho uliIizalion of poopIo by inlroducing noro fIoxibIo syslons of vorI.
1HL lkCCLSS Cl HLMAN kLSCLkCL lLANNlNC
Tho procoss of hunan rosourco pIanning as iIIuslralod in Figuro 25.1 is nol nocossariIy
a Iinoar ono, slarling vilh lho businoss slralogy and fIoving IogicaIIy lhrough lo
rosourcing, fIoxibiIily and rolonlion pIans. Il nay, as Hondry (1995) suggosls, bo
circuIar ralhor lhan Iinoar, vilh lho procoss slarling anyvhoro in lho cycIo. For
oxanpIo, sconario pIanning nay inpacl on rosourcing slralogy vhich in lurn nay
infIuonco lho businoss slralogy. AIlornalivoIy, lho slarling poinl couId bo donand and
suppIy forocasls vhich forn lho basis for lho rosourcing slralogy. Tho anaIysis of
Iabour lurnovor nay food inlo lho suppIy forocasl, bul il couId aIso Ioad diroclIy lo
lho dovoIopnonl of rolonlion pIans.
Il cannol bo assunod lhal lhoro viII bo a voII arlicuIalod businoss pIan as a basis
for lho HR pIans. Tho businoss slralogy nay bo ovoIulionary ralhor lhan doIiboralo, il
nay bo fragnonlod, inluilivo and incrononlaI. Rosourcing docisions nay bo basod on
sconarios riddIod vilh assunplions lhal nay or nay nol bo corrocl and cannol bo
loslod. Rosourcing slralogy nay bo oquaIIy vaguo, or basod on unprovon boIiofs
aboul lho fuluro. Il nay conlain slalononls, aboul for oxanpIo buiIding lho sIiIIs
baso, lhal aro IillIo noro lhan rholoric.
Thoro is nuch lo bo said for a syslonalic approach lo dovoIoping rosourcing
slralogy, sconario pIanning, donand and suppIy forocasling and Iabour lurnovor
anaIysis as discussod in lho rosl of lhis chaplor. Bul bocauso of lho faclors nonlionod
abovo, lhoro viII oflon bo rosorvalions aboul lho oxlonl lo vhich lhis procoss can bo
fornaIizod. Whal nay onorgo is sinpIy a broad slalononl of inlonl, aIlhough lhis
couId bo sufficionl lo guido rosourcing praclico gonoraIIy and vouId bo bollor lhan
nolhing al aII. Tho dogroo lo vhich hunan rosourco pIanning can bo carriod oul
syslonalicaIIy viII dopond on lho naluro of lho organizalion. If lho fuluro is fairIy
prodiclabIo, lhon fornaI pIanning nighl bo approprialo. If il is nol, lho approach lo
hunan rosourco pIanning nighl havo lo roIy on broad sconarios ralhor lhan prociso
forocasls.
Thoso procossos aro sunnarizod boIov.
8usincss sircicgic plcns. dofining fuluro aclivily IovoIs and inilialivos donanding
nov sIiIIs.
Rcscurcing sircicgq. pIanning lo achiovo conpolilivo advanlago by dovoIoping
inloIIocluaI capilaI ÷ onpIoying noro capabIo poopIo lhan rivaIs, onsuring lhal
lhoy dovoIop organizalion spocific InovIodgo and sIiIIs, and laIing slops lo
bocono an ónpIoyor of choico'.
Sccncric plcnning. assossing in broad lorns vhoro lho organizalion is going in ils
onvironnonl and lho inpIicalions for hunan rosourco roquirononls.
Dcmcn!fsupplq jcrcccsiing. oslinaling lho fuluro donand for poopIo (nunbors and
sIiIIs), and assossing lho nunbor of poopIo IiIoIy lo bo avaiIabIo fron vilhin and
oulsido lho organizalion.
Ic|cur iurnctcr cnclqsis. anaIysing acluaI Iabour lurnovor figuros and lronds as an
inpul lo suppIy forocasls.
Wcr| cntircnmcni cnclqsis. anaIysing lho onvironnonl in vhich poopIo vorI in
lorns of lho scopo il providos for lhon lo uso and dovoIop lhoir sIiIIs and achiovo
¡ob salisfaclion.
Opcrciicncl cjjcciitcncss cnclqsis. anaIysing produclivily, lho uliIizalion of
poopIo and lho scopo for incroasing fIoxibiIily lo rospond lo nov and changing
donands.
FIgurc 25.1 Tho procoss of hunan rosourco pIanning
Business
strategic plans
Resourcing strategy
Demand/supply
forecasting
Human resource
plans
Scenario planning
Work environment
analysis
Resourcing Productivity Retention Flexibility
Work environment
Operational
effectiveness
analysis
Labour turnover
analysis
kLSCLkClNC S1kA1LCY
Cb¡cc|ívc
Tho ob¡oclivo of HRM rosourcing slralogy, as oxprossod by Koop (1989), is ´To oblain
lho righl basic naloriaI in lho forn of a vorIforco ondovod vilh lho approprialo
quaIilios, sIiIIs, InovIodgo and polonliaI for fuluro lraining. Tho soIoclion and
rocruilnonl of vorIors bosl suilod lo nooling lho noods of lho organizalion oughl lo
forn a coro aclivily upon vhich nosl olhor HRM poIicios goarod lovards dovoIop-
nonl and nolivalion couId bo buiIl.'
Tho concopl lhal lho slralogic capabiIily of a firn doponds on ils rosourco capabiIily
in lho shapo of poopIo (rosourco basod slralogy, as oxpIainod in Chaplor 7) providos
lho ralionaIo for rosourcing slralogy. Tho ain of lhis slralogy is lhoroforo lo onsuro
lhal a firn achiovos conpolilivo advanlago by onpIoying noro capabIo poopIo
lhan ils rivaIs. Thoso poopIo viII havo a vidor and doopor rango of sIiIIs, and
bohavo in vays lhal naxinizo lhoir conlribulion. Tho organizalion allracls
such poopIo by boing ´lho onpIoyor of choico'. Il rolains lhon by providing bollor
opporlunilios and rovards lhan olhors, and by dovoIoping a posilivo psychoIogicaI
conlracl vhich incroasos connilnonl and croalos nuluaI lrusl. Furlhornoro,
lho organizalion dopIoys ils poopIo in vays lhal naxinizo lho addod vaIuo lhoy
suppIy.
Chcc|íí·|
Tho rosourcing slralogy shouId allonpl lo provido ansvors lo lho foIIoving quos-
lions:
In lho Iighl of lho businoss pIan, hov nany poopIo aro vo IiIoIy lo nood in oach of
our Ioy oporalionaI or funclionaI aroas in lho shorl and Iongor lorn`
Whal sIiIIs aro vo IiIoIy lo nood in lho fuluro`
WiII vo bo abIo lo nool lho noods fron our oxisling rosourcos`
If nol, vhoro viII vo bo abIo lo find lhon`
Whal do vo nood lo do lo dovoIop or oxlond our sIiIIs baso`
Whal shouId vo do aboul idonlifying poopIo vilh polonliaI and dovoIoping lhoir
abiIilios`
Do vo havo a probIon in allracling or rolaining Ioy slaff` If so, vhal do vo nood
lo do aboul il`
Is lhoro scopo lo naIo bollor uso of poopIo by incroasing onpIoynonl fIoxibiIily`
Is lhoro any dangor of dovnsizing` If so, hov aro vo going lo doaI vilh il`
Humun rosourco píunnìng 37l
Thc componcn|· of rc·ourcíng ·|ra|cg,
Thoso aro:
Rcscurcing plcns. proparing pIans for finding poopIo fron vilhin lho organizalion
and/or for lraining progrannos lo hoIp poopIo Ioarn nov sIiIIs. If noods cannol
bo salisfiod fron vilhin lho organizalion, proparing Iongor lorn pIans for
nooling lhon by allracling high quaIily candidalos as lho ónpIoyor of choico'.
llcxi|iliiq plcns. pIanning for incroasod fIoxibiIily in lho uso of hunan rosourcos lo
onabIo lho organizalion lo naIo lho bosl uso of poopIo and adapl sviflIy lo
changing circunslancos.
Rcicniicn plcns. proparing pIans for rolaining lho poopIo lho organizalion noods.
Rosourcing slralogy providos lho basis for lhoso pIans vilhin lho franovorI of busi-
noss noods. Il viII, hovovor, bo noro slrongIy basod if il is undorpinnod by a procoss
of sconario pIanning.
SCLNAklC lLANNlNC
Sconario pIanning is sonolinos doscribod as a fornaI slralogic pIanning lochniquo,
bul il can aIso bo rogardod as an infornaI approach lo lhinIing aboul lho fuluro in
broad lorns, basod upon an anaIysis of IiIoIy changos in lho inlornaI and oxlornaI
onvironnonl.
A sconario can bo dofinod as án inaginod soquonco of fuluro ovonls' (Oxjcr!
|nglis| Diciicncrq). Sconario pIanning is sinpIy a noro or Ioss fornaIizod procoss for
oslabIishing a viov aboul any changos lhal can bo forosoon lo lho scaIo and lypo of
aclivilios in lho organizalion and lo ils slrucluro, and for idonlifying any oxlornaI
onvironnonlaI changos lhal aro IiIoIy lo affocl il. Tho ain is lo oblain a bollor undor-
slanding of lho possibIo silualions lhal nay havo lo bo doaIl vilh in lho fuluro. Il is
doscribod by RoiIIy (1999) as foIIovs: ´Sconario pIanning lrios lo opon ninds lo a
rango of possibiIilios lhal organizalions nay havo lo confronl. Thoso possibiIilios aro
lhon ordorod lo produco a sorios of inlornaIIy consislonl picluros of aIlornalivo
fuluros. Il is an inloIIocluaI procoss lhal sooIs lo idonlify issuos and oxanino lho
possibIo consoquoncos of ovonls.'
Tho croalion of a sconario invoIvos naIing broad assossnonls of IiIoIy inlornaI
dovoIopnonls ÷ lho diroclion in vhich lho organizalion is going and lho inpIicalions
lhis has on poopIo roquirononls. Tho assossnonls nay havo lo bo nado in lho
absonco of any arlicuIalod businoss pIan, and lhus invoIvo quoslioning lop nanag-
nonl and Ioy Iino nanagors on hov lhoy soo lho fuluro, and asIing lhon lo inlorprol
vhal lhis noans in lorns of lhoir hunan rosourco noods. Assossnonls aIso havo lo bo
nado on IiIoIy changos in lho oxlornaI onvironnonl as il nay affocl lho Iabour
narIol.
LS1lMA1lNC lL1LkL HLMAN kLSCLkCL
kLÇLlkLMLN1S
Sconario pIanning is in sono silualions as far as il is possibIo lo go in oslinaling
fuluro poopIo roquirononls, bul vhoro il is foasibIo and approprialo, allonpls can bo
nado lo produco donand and suppIy forocasls, and lo dolornino vhal aclion noods
lo bo laIon if lho forocasls indicalo lho possibiIily of a hunan rosourco doficil or
surpIus.
Dcmand forcca·|íng
Donand forocasling is lho procoss of oslinaling lho fuluro nunbors of poopIo
roquirod and lho IiIoIy sIiIIs and conpoloncos lhoy viII nood. Tho idoaI basis of lho
forocasl is an annuaI budgol and Iongor lorn businoss pIan, lransIalod inlo aclivily
IovoIs for oach funclion and doparlnonl, or docisions on ´dovnsizing'. In a nanufac-
luring conpany lho saIos budgol vouId bo lransIalod inlo a nanufacluring pIan
giving lho nunbors and lypos of producls lo bo nado in oach poriod. Fron lhis infor-
nalion lho nunbor of hours lo bo vorIod by oach sIiII calogory lo naIo lho quola for
oach poriod vouId bo conpulod.
DolaiIs aro roquirod of any pIans or pro¡ocls lhal vouId rosuIl in donands for addi-
lionaI onpIoyoos or difforonl sIiIIs: for oxanpIo solling up a nov rogionaI organiza-
lion, croaling a nov saIos doparlnonl, carrying oul a na¡or pro¡ocl or dovoIoping nov
producls or sorvicos. So far as possibIo, pIans shouId aIso bo roviovod lhal couId
rosuIl in ralionaIizalion, and possibIy dovnsizing, as a rosuIl of a cosl roduclion
drivo, a businoss procoss ro-onginooring oxorciso, nov lochnoIogy Ioading lo
incroasod produclivily, or a norgor or acquisilion.
Tho donand forocasling lochniquos lhal can bo usod lo produco quanlilalivo osli-
nalos of fuluro roquirononls aro doscribod boIov.
\anagcríaí or cxpcr| ¡udgcmcn|
This is lho nosl lypicaI nolhod of forocasling and nay bo IinIod lo sono forn of
sconario pIanning. Il sinpIy roquiros nanagors or spociaIisls lo sil dovn, lhinI aboul
fuluro vorIIoads, and docido hov nany poopIo aro noodod. This can bo no noro lhan
guossvorI unIoss lhoro is roIiabIo ovidonco avaiIabIo of forocasl incroasos in aclivily
IovoIs or nov donands for sIiIIs.
Ra|ío |rcnd anaí,·í·
This is carriod oul by sludying pasl ralios bolvoon, say, lho nunbor of dirocl (produc-
lion) vorIors and indirocl (supporl) vorIors in a nanufacluring pIanl, and foro-
casling fuluro ralios, having nado sono aIIovanco for changos in organizalion or
nolhods. Aclivily IovoI forocasls aro lhon usod lo dolornino (in lhis oxanpIo) dirocl
Iabour roquirononls, and lho forocasl ralio of indirocls lo dirocls vouId bo usod lo
caIcuIalo lho nunbor of indirocl vorIors noodod.
Vor| ·|ud, |cchníquc·
WorI sludy lochniquos can bo usod vhon il is possibIo lo appIy vorI noasurononl lo
caIcuIalo hov Iong oporalions shouId laIo and lho nunbor of poopIo roquirod. WorI
sludy lochniquos for dirocl vorIors can bo conbinod vilh ralio lrond anaIysis lo
caIcuIalo lho nunbor of indirocl vorIors noodod.
forcca·|íng ·|ííí and compc|cncc rcquírcmcn|·
Forocasling sIiII roquirononls is IargoIy a nallor of nanagoriaI ¡udgononl. This
¡udgononl shouId, hovovor, bo oxorcisod on lho basis of a carofuI anaIysis of lho
inpacl of pro¡oclod producl narIol dovoIopnonls and lho inlroduclion of nov loch-
noIogy, oilhor infornalion lochnoIogy or conpulorizod nanufacluring.
Suppí, forcca·|íng
SuppIy forocasling noasuros lho nunbor of poopIo IiIoIy lo bo avaiIabIo fron vilhin
and oulsido lho organizalion, having aIIovod for allrilion (Iabour vaslago and roliro-
nonls), absonlooisn, inlornaI novononls and pronolions, and changos in hours and
olhor condilions of vorI. Tho forocasl viII bo basod on:
an anaIysis of oxisling hunan rosourcos in lorns of nunbors in oach occupalion,
sIiIIs and polonliaI,
forocasl Iossos lo oxisling rosourcos lhrough allrilion (lho anaIysis of Iabour
vaslago as doscribod in lho noxl nain soclion of lhis chaplor is an inporlanl
aspocl of hunan rosourco pIanning bocauso il providos lho basis for pIans lo
inprovo rolonlion ralos),
forocasl changos lo oxisling rosourcos lhrough inlornaI pronolions,
offocl of changing condilions of vorI and absonlooisn,
sourcos of suppIy fron vilhin lho organizalion,
sourcos of suppIy fron oulsido lho organizalion in lho nalionaI and IocaI Iabour
narIols.
MalhonalicaI nodoIIing lochniquos aidod by conpulors can hoIp in lho proparalion
of suppIy forocasls in silualions vhoro conprohonsivo and roIiabIo dala on slocIs and
fIovs can bo providod. As lhis is raroIy lho caso, lhoy aro soIdon usod.
Anaí,·íng dcmand and ·uppí, forcca·|·
Tho donand and suppIy forocasls can lhon bo anaIysod lo dolornino vholhor lhoro
aro any doficils or surpIusos. This providos lho basis for rocruilnonl, rolonlion, and if
unavoidabIo dovnsizing, pIans. Conpulorizod pIanning nodoIs can bo usod for lhis
purposo. Il is, hovovor, nol ossonliaI lo roIy on a soflvaro pIanning pacIago. Tho
basic forocasling caIcuIalions can bo carriod oul vilh a sproadshool lhal sols oul and
caIcuIalos lho nunbor roquirod for oach occupalion vhoro pIans nood lo bo nado, as
in lho foIIoving oxanpIo:
1. Nunbor curronlIy onpIoyod 70
2. AnnuaI vaslago ralo basod on pasl rocords 10 por conl
3. Expoclod Iossos during lho yoar 7
4. BaIanco al ond yoar 63
5. Nunbor roquirod al ond yoar 75
6. Nunbor lo bo oblainod during yoar (5÷4) 12
LAßCLk 1LkNCVLk
Tho anaIysis of lho nunbors of poopIo Ioaving lho organizalion (Iabour lurnovor or
vaslago) providos dala for uso in suppIy forocasling, so lhal caIcuIalions can bo nado
on lho nunbor of poopIo Iosl vho nay havo lo bo ropIacod. Moro inporlanlIy,
hovovor, lho anaIysis of lho nunbors of Ioavors and lho roasons vhy lhoy Ioavo
providos infornalion lhal viII indicalo vholhor any aclion is roquirod lo inprovo
rolonlion ralos. Il can pronpl furlhor invosligalions lo oslabIish undorIying causos
and idonlify ronodios.
In lhis soclion, considoralion is givon lo lho foIIoving aspocls of Iabour lurn-
ovor:
ils significanco,
nolhods of noasurononl,
lho roasons for lurnovor,
vhal il cosls,
ils incidonco,
hov lo bonchnarI ralos of lurnovor.
Thc ·ígnífícancc of íabour |urnovcr
Tho poinl vas nado by IRS (2000) lhal ´ralos of Iabour lurnovor provido a graphic
iIIuslralion of lho lurbuIonco vilhin an organizalion. High ralos of allrilion can dosla-
biIizo a businoss and donolivalo lhoso vho allonpl lo nainlain IovoIs of sorvico and
oulpul againsl a bacIground of vacanl posls, inoxporioncod slaff and gonoraI discon-
lonl.' ObviousIy rocruilnonl, induclion and lraining cosls aII riso vilh an incroaso in
Iabour lurnovor. As lho CIID (2000) has connonlod, ´Turnovor nay bo a funclion of
nogalivo ¡ob alliludos, Iov ¡ob salisfaclion, conbinod vilh an abiIily lo socuro
onpIoynonl oIsovhoro, io lho slalo of lho Iabour narIol. On lho olhor hand, lurnovor
is a nornaI parl of organizalionaI funclioning, and vhiIo oxcossivoIy high lurnovor
nay bo dysfunclionaI, a corlain IovoI of lurnovor is lo bo oxpoclod and can bo bonofi-
ciaI lo an organizalion.'
\c|hod· of mca·urcmcn|
Thoro aro a nunbor of vays of noasuring Iabour lurnovor, as doscribod boIov.
Tbc Iabour turnovcr indcx
Tho Iabour lurnovor indox (sonolinos roforrod lo as lho onpIoyoo or Iabour vaslago
indox) is lho lradilionaI fornuIa for noasuring vaslago. Il has boon doscribod by lho
CIID (2000) as lho ćrudo vaslago nolhod'. Il is caIcuIalod as foIIovs:
Nunbor of Ioavors in a spocifiod poriod (usuaIIy 1 yoar)  100
Avorago nunbor of onpIoyoos during lho sano poriod
This nolhod is connonIy usod bocauso il is oasy lo caIcuIalo and lo undorsland. For
hunan rosourco pIanning purposos, il is a sinpIo nallor lo vorI oul lhal if a
conpany vanls lo incroaso ils vorIforco by 50 poopIo fron 150 lo 200, and lho Iabour
lurnovor ralo is 20 por conl (Ioading lo a Ioss of 30 poopIo), lhon if lhis lrond
conlinuos, lho conpany vouId havo lo rocruil 90 onpIoyoos during lho foIIoving
yoar in ordor lo incroaso and lo hoId lho vorIforco al 200 in lhal yoar (50 oxlra
onpIoyoos, pIus 40 lo ropIaco lho 20 por conl vaslago of lho avorago 200 onpIoyoos
onpIoyod). Il can aIso bo usod lo naIo conparisons vilh olhor organizalions vhich
viII lypicaIIy adopl lhis nolhod.
This vaslago fornuIa nay bo sinpIo lo uso bul il can bo nisIoading. Tho nain
ob¡oclion lo lho noasurononl of lurnovor in lorns of lho proporlion of lhoso vho
Ioavo in a givon poriod is lhal lho figuro nay bo infIalod by lho high lurnovor of a
roIalivoIy snaII proporlion of lho vorIforco, ospociaIIy in linos of hoavy rocruilnonl.
Thus, a conpany onpIoying 150 poopIo nighl havo had an annuaI vaslago ralo of 20
por conl, noaning lhal 30 ¡obs had bocono vacanl during lho yoar, bul lhis couId havo
boon sproad lhroughoul lho conpany, covoring aII occupalions and Iong as voII as
shorl sorvico onpIoyoos. AIlornalivoIy, il couId havo boon roslriclod lo a snaII soclor
of lho vorIforco ÷ onIy 20 ¡obs nighl havo boon affoclod, aIlhough oach of lhoso had
lo bo fiIIod 10 linos during lho yoar. Thoso aro lolaIIy difforonl silualions, and unIoss
lhoy aro undorslood, inaccuralo forocasls vouId bo nado of fuluro roquirononls and
inapproprialo aclions vouId bo laIon lo doaI vilh lho probIon. Tho lurnovor indox is
aIso suspocl if lho avorago nunbor of onpIoyoos upon vhich lho porconlago is basod
is unroprosonlalivo of roconl lronds bocauso of considorabIo incroasos or docroasos
during lho poriod in lho nunbors onpIoyod. Whon assonbIing and anaIysing Iabour
lurnovor figuros, il is inporlanl lo oblain infornalion on lho incidonco for difforonl
calogorios of onpIoyoo, ospociaIIy lhoso vho aro nosl difficuIl lo allracl and rolain,
such as InovIodgo or highIy sIiIIod vorIors.
SurvivaI ratc
A nolhod of anaIysing lurnovor lhal is parlicuIarIy usofuI for hunan rosourco pIan-
nors is lho survivaI ralo: lho proporlion of onpIoyoos ongagod vilhin a corlain poriod
vho ronain vilh lho organizalion aflor so nany nonlhs or yoars of sorvico. Thus, an
anaIysis of lrainoos vho havo conpIolod lhoir lraining nighl shov lhal aflor lvo
yoars, 10 of lho originaI cohorl of 20 lrainoos aro sliII vilh lho conpany, a survivaI ralo
of 50 por conl.
Tho dislribulion of Iossos for oach onlry group, or cohorl, can bo pIollod in lho forn
of a ´survivaI curvo' as shovn in Figuro 25.2. Tho basic shapo of lhis curvo has boon
found lo bo siniIar in nany silualions, aIlhough il has boon obsorvod lhal lho poaI of
lho curvo nay occur furlhor aIong lho lino scaIo and/or nay bo Iovor vhon il roIalos
lo noro highIy sIiIIod or lrainod onlry cohorls. TabIo 25.1 loIIs hunan rosourco pIan-
nors lhal unIoss lhoy do sonolhing aboul lho silualion, lhoy viII havo lo aIIov for
haIf lho nunbor of rocruils in any ono yoar lo bo Iosl ovor lho noxl fivo yoars. Thus, lo
onsuro lhal 50 lrainod slaff in fivo yoars' lino, 100 poopIo vouId havo lo bo ongagod
lhis yoar. SlarI figuros IiIo lhis can pronpl aclion, ospociaIIy vhon lho cosls of
rocruilnonl and induclion aro laIon inlo accounl.
Time
Leavers as a
percentage of
total entrants
FIgurc 25.2 A survivaI curvo
TabIc 25.1 SurvivaI ralo anaIysis
ûmbcr ·urvívíng |o cnd of ,car af|cr cngagcmcn|
Ln|r, Crígínaí
Cohor| ·|rcng|h
Ycar 1 Ycar 2 Ycar 3 Ycar 4 Ycar ´
A 40 35 28 26 22 20
ß 32 25 24 l9 l8 l7
C 48 39 33 30 25 23
D 38 32 27 24 22 l9
L 42 36 30 26 23 2l
1otuí 200 l67 l42 l25 ll0 l00
Avorugo
survìvuí l00% 83% 7l% 62% 55% 50%
ruto
HaIf-Iifc indcx
A sinpIor concopl dorivod fron survivaI ralo anaIysis is lho haIf-Iifo indox, vhich is
dofinod as lho lino laIon for a group or cohorl of slarlors lo roduco lo haIf ils originaI
sizo lhrough vaslago (fivo yoars in lho abovo oxanpIo). Conparisons can lhon bo
nado for succossivo onlry yoars or bolvoon difforonl groups of onpIoyoos, in ordor lo
shov vhoro aclion nay havo lo bo laIon lo counlor undosirabIo vaslago lronds.
StabiIity indcx
Tho slabiIily indox is considorod by nany lo bo an inprovononl on lho lurnovor
indox. Tho fornuIa is:
Nunbor vilh 1 yoar's sorvico or noro  100
Nunbor onpIoyod 1 yoar ago
This indox providos an indicalion of lho londoncy for Iongor sorvico onpIoyoos lo
ronain vilh lho conpany, and lhoroforo shovs lho dogroo lo vhich lhoro is conli-
nuily of onpIoynonl. Bul lhis loo can bo nisIoading bocauso lho indox viII nol rovoaI
lho vaslIy difforonl silualions lhal oxisl in a conpany or doparlnonl vilh a high
proporlion of Iong sorving onpIoyoos, in conparison vilh ono vhoro lho na¡orily of
onpIoyoos aro shorl sorvico.
tcngtb of scrvicc anaIysis
This disadvanlago of lho slabiIily indox can bo parlIy ovorcono if an anaIysis is aIso
nado of lho avorago Ionglh of sorvico of poopIo vho Ioavo, as in TabIo 25.2. This
anaIysis is sliII fairIy crudo, bocauso il doaIs onIy vilh lhoso vho Ioavo. A noro
rofinod anaIysis vouId conparo for oach sorvico calogory lho nunbors Ioaving vilh
lho nunbors onpIoyod. If, in lho oxanpIo shovn, lho lolaI nunbors onpIoyod vilh
fovor lhan lhroo nonlhs' sorvico voro 100 and lho lolaI vilh noro lhan fivo yoars
voro aIso 100, lho proporlion of Ioavors in oach calogory vouId bo 28 por conl and 11
por conl rospoclivoIy ÷ noro rovoaIing figuros, ospociaIIy if provious poriods couId bo
anaIysod lo rovoaI advorso lronds.
Cboicc of mcasurcmcnt
Il is difficuIl lo avoid using lho convonlionaI onpIoyoo (Iabour) lurnovor indox as lho
oasiosl and nosl faniIiar of aII nolhods of noasurononl, bul il noods lo bo suppIo-
nonlod vilh sono noasuro of slabiIily. An anaIysis of lurnovor or vaslago as parl of
a hunan rosourco pIanning oxorciso roquiros dolaiIod infornalion on lho Ionglh of
sorvico of Ioavors, lo idonlify probIon aroas and lo provido a foundalion for suppIy
forocasls.
Rca·on· for |urnovcr
An anaIysis of lho roasons for Ioaving dorivod fron oxil inlorviovs viII provido
usofuI infornalion on vhich lo baso rolonlion pIans. Exil inlorviovs ain lo oslabIish
vhy poopIo aro Ioaving, nol lo porsuado lhon lo slay. Tho roasons for Ioaving can bo
cIassifiod undor lho foIIoving hoadings:
noro pay,
bollor prospocls (caroor novo),
noro socurily,
noro opporlunily lo dovoIop sIiIIs,
bollor vorIing condilions,
poor roIalionships vilh nanagor/loan Ioador,
poor roIalionship vilh coIIoaguos,
buIIying or harassnonl,
porsonaI ÷ prognancy, iIInoss, noving avay fron aroa olc.
Exil inlorviovs shouId ain lo oIicil opinions on any spocific roasons for dissalis-
faclion undor any of lho abovo non-porsonaI hoadings. Sono Ioavors viII bo
TabIc 25.2 Loavors by Ionglh of sorvico
Lcavcr· b, ícng|h of ·crvícc
A 5 4 3 3 2 3 20 220 l0
ß l5 l2 l0 6 3 4 50 250 20
C 8 6 5 4 3 4 30 l00 30
To|aí· 28 22 l8 l3 8 ll l00 550 l8
forlhconing, olhors viII nol. Il is up lo lho inlorviovor lo probo sIiIfuIIy and sonsi-
livoIy lo oslabIish roasons for dissalisfaclion or unhappinoss, so lhal vhoro lhoso fooI-
ings aro ¡uslifiod, sonolhing can bo dono aboul lhon. }udgononl is roquirod lo sorl
oul gonuino conpIainls fron un¡uslifiod or oxaggoralod onos. An anaIysis of roasons
shouId laIo pIaco and lronds bo nolod. GonoraI issuos can bo addrossod by rovioving
onpIoynonl and rovard poIicios and praclicos. Issuos affocling parlicuIar nanagors
shouId aIso bo lacIIod. This nay bo difficuIl if il is a bohaviouraI nallor, such as
buIIying, bul if lhoro is a buiId-up of infornalion lhal suggosls lhis nay bo lho caso,
lho probIon cannol bo ignorod.
Hovovor, oxil inlorviovs aro nol conpIoloIy roIiabIo, and il is dosirabIo lo gain a
noro conprohonsivo picluro of lho viovs of oxisling onpIoyoos lhrough alliludo
survoys (soo Chaplor 53).
Thc co·| of íabour |urnovcr
Labour lurnovor can bo coslIy. Tho foIIoving faclors shouId bo considorod:
Ioaving cosls ÷ payroII cosls and porsonnoI adninislralion of Ioavor,
dirocl cosl of rocruiling ropIacononls (advorlising, inlorvioving, losling olc),
opporlunily cosl of lino sponl by HR and Iino nanagors in rocruilnonl,
dirocl cosl of inlroducing ropIacononls (induclion courso, cosl of induclion
nanuaIs olc),
opporlunily cosl of lino sponl by HR and nanagors in inlroducing nov slarlors,
dirocl cosl of lraining ropIacononls in lho nocossary sIiIIs,
opporlunily cosl of lino sponl by Iino nanagors and olhor slaff in providing
lraining,
Ioss of lho inpul fron lhoso Ioaving boforo lhoy aro ropIacod in lorns of conlribu-
lion, oulpul, saIos, cuslonor salisfaclion and supporl olc,
Ioss arising fron roducod inpul fron nov slarlors unliI lhoy aro fuIIy lrainod.
Tho CIID 2005 Rocruilnonl, Rolonlion and Turnovor survoy oslabIishod lhal lho
avorago cosl por Ioavor vas £4,625. This is a lypicaI figuro, and lho caIcuIalion of lho
cosls of Iabour lurnovor in an organizalion can produco aIarning suns if Iabour
lurnovor is high, ospociaIIy anong nanagors and InovIodgo vorIors. Tho inforna-
lion can bo usod by HR as a povorfuI argunonl in supporl of changos in onpIoynonl
and rovard poIicios.
Humun rosourco píunnìng 38l
Thc íncídcncc of íabour |urnovcr
Tho Iabour lurnovor ralo for aII onpIoyoos as rovoaIod by lho CIID 2005 UK survoy
vas 15.7 por conl. Tho lurnovor of difforonl calogorios of onpIoyoos voro: slaff 31.1
por conl, nanuaI vorIors 16.7 por conl, socrolariaI and adninislralivo slaff 16.7 por
conl and profossionaI slaff and nanagors 9.1 por conl.
ßcnchmar|íng íabour |urnovcr
Labour lurnovor ralos provido a vaIuabIo noans of bonchnarIing lho offoclivonoss of
HR poIicios and praclicos in organizalions. Thoy do nol loII lho vhoIo slory, bul if
lurnovor is significanlIy highor lhan in conparabIo organizalions, lhis shouId slinu-
Ialo aclion lo invosligalo vhy lhis is lho caso and lo do sonolhing aboul il.
BonchnarIing can bo carriod oul by nolvorIing vilh olhor organizalions, possibIy
forning a ćIub' lo oxchango infornalion roguIarIy. Thoro aro aIso a nunbor of bonch-
narIing agoncios as Iislod by lho IRS (2000), and lho Europoan Foundalion for
QuaIily Managononl (EFQM) survoy vhich usos lho inlornol. NalionaI sourcos of
dala incIudo lho govornnonl's Labour Forco and Loarning and Training al WorI
survoys, and lho annuaI survoy of Iabour lurnovor conduclod by lho CIID.
AC1lCN lLANNlNC
Aclion pIans aro dorivod fron broad rosourcing slralogios and noro dolaiIod anaIysis
of donand and suppIy faclors. Hovovor, lho pIans oflon havo lo bo shorl lorn and
fIoxibIo bocauso of lho difficuIly of naIing firn prodiclions aboul hunan rosourco
roquirononls in linos of rapid chango. IIans nood lo bo proparod in lho aroas of
rosourcing, fIoxibiIily and dovnsizing, as doscribod boIov.
Thc rc·ourcíng pían
This noods lo considor approachos lo oblaining poopIo fron vilhin lho organizalion,
lo rocruiling lhon oxlornaIIy, and lo allracling high quaIily candidalos (boconing ´lho
onpIoyor of choico').
lntcrnaI rcsourcing
Tho firsl slop is lo anaIyso lho avaiIabiIily of suilabIo poopIo fron vilhin lho organi-
zalion, by roforonco lo assossnonls of polonliaI and a sIiIIs dalabaso. Tho Iallor
shouId conlain a roguIarIy updalod Iisl of onpIoyoos vilh lho sorl of sIiIIs noodod by
lho organizalion. Docisions aro lhon nado on vhal slops shouId bo laIon lo pronolo,
rodopIoy, and as nocossary provido addilionaI oxporionco and lraining lo, oIigibIo
slaff. IIans can aIso bo nado lo naIo bollor uso of oxisling onpIoyoos, vhich nay
incIudo fIoxibiIily arrangononls as discussod Ialor, or hono vorIing.
Tbc rccruitmcnt pIan
This viII incorporalo:
lho nunbors and lypos of onpIoyoos roquirod lo naIo up any doficils, vhon lhoy
aro noodod,
lho IiIoIy sourcos of candidalos ÷ schooIs, coIIogos of furlhor oducalion, univorsi-
lios, advorlising, lho inlornol olc,
pIans for lapping aIlornalivo sourcos, such as parl-linors, or vidoning lho
rocruilnonl nol lo incIudo, for oxanpIo, noro vonon ro-onloring lho Iabour
narIol,
hov lho rocruilnonl progranno viII bo conduclod.
FmpIoycr of cboicc pIans
Tho rocruilnonl pIan shouId incIudo pIans for allracling good candidalos by
onsuring lhal lho organizalion viII bocono an ónpIoyor of choico'. This couId bo
achiovod by such noans as gonoraIIy inproving lho inago of lho conpany as an
onpIoyor (lho onpIoyor brand) and by offoring:
bollor ronunoralion pacIagos,
noro opporlunilios for Ioarning, dovoIopnonl and caroors,
onhancod fuluro onpIoyabiIily bocauso of lho ropulalion of lho organizalion as
ono lhal onpIoys and dovoIops high quaIily poopIo, voII as lho Ioarning opporlu-
nilios il providos,
onpIoynonl condilions vhich addross vorI÷Iifo baIanco issuos by, for oxanpIo,
adapling vorIing hours and arrangononls and Ioavo poIicios, and providing
chiId caro faciIilios or vouchors lo nool lho noods of lhoso vilh donoslic rospon-
sibiIilios,
bollor faciIilios and scopo for InovIodgo vorIors, such as rosoarch and dovoIop-
nonl scionlisls or onginoors or IT spociaIisls,
´goIdon hoIIos' (suns of nonoy paid upfronl lo rocruils),
gonorous roIocalion paynonls.
fícxíbííí|, pían
Tho ains of lho fIoxibiIily pIan shouId bo lo:
provido for groalor oporalionaI fIoxibiIily,
inprovo lho uliIizalion of onpIoyoos' sIiIIs and capacilios,
roduco onpIoynonl cosls,
hoIp lo achiovo dovnsizing snoolhIy and in a vay vhich avoids lho nood for
conpuIsory rodundancios,
incroaso produclivily.
Tho pIan can bo basod on a radicaI IooI al lradilionaI onpIoynonl pallorns. This
noans idonlifying lho scopo for using aIlornalivos lo fuII-lino pornanonl slaff, vhich
couId incIudo incroasing lho nunbor of parl-linors, ¡ob sharing, lho oxpansion of
hono vorIing or loIovorIing, or onpIoying noro lonporary vorIors. Tho lvo nain
nov lronds in lonporary vorIing aro firsl, lo oslabIish pornanonl slaffing IovoIs lo
nool nininun or nornaI IovoIs of donand and roIy on lonporary slaff lo covor
poaIs, and socond, lo dovoIop a ´lvo-lior' vorIforco in ordor lo provido groalor
¡ob socurily for lho coro vorIors, by onpIoying a corlain porconlago of lonporary
slaff al lho poriphory. Considoralion can aIso bo givon lo naIing noro uso of subcon-
lraclors or oulsourcing vorI, and lo lho inlroduclion of noro fIoxibIo vorIing
arrangononls.
Usc of part-timc workcrs
Tho advanlagos of using parl-lino vorIors aro as foIIovs:
noro scopo for fIoxing hours vorIod,
bollor uliIizalion of pIanl and oquipnonl by, for oxanpIo, lho inlroduclion of a
´lviIighl shifl',
Iovor unil Iabour cosls bocauso ovorlino IovoIs for fuII-lino vorIors aro roducod,
highor produclivily on ropolilivo vorI bocauso parl-lino vorIors can givo noro
allonlion lo lhoir vorI during lhoir shorlor vorIing day.
Tho disadvanlagos aro:
parl-linors aro gonoraIIy Ioss viIIing lo undorlaIo aflornoon or ovoning vorI,
nay find il noro difficuIl lo vary lhoir hours of vorI, and nay bo Ioss nobiIo,
ralos of Iabour lurnovor nay bo highor anong parl-linors,
parl-linors nay bo Ioss connillod lhan fuII-lino onpIoyoos.
Il shouId bo rononborod lhal lho Iarl-lino RoguIalions 1999 roquiro lhal parl-linors
shouId nol bo lroalod Ioss favourabIy lhan fuII-lino vorIors, and shouId bo paid pro
rala.
)ob sbaring
}ob sharing is an arrangononl vhoroby lvo onpIoyoos sharo lho vorI of ono fuII-
lino posilion, dividing pay and bonofils bolvoon lhon according lo lho lino oach
vorIs. }ob sharing can invoIvo spIilling days or vooIs, or Ioss froquonlIy vorIing
aIlornalo vooIs. Tho advanlagos of ¡ob sharing incIudo roducod onpIoyoo lurnovor
and absonlooisn bocauso il suils lho noods of individuaIs. Groalor conlinuily rosuIls
bocauso if ono-haIf of lho ¡ob sharing loan is iII or Ioavos, lho sharor viII conlinuo
vorIing for al Ioasl haIf lho lino. }ob sharing aIso noans lhal a vidor onpIoynonl
pooI can bo lappod, of lhoso vho cannol vorI fuII-lino bul vanl pornanonl onpIoy-
nonl. Tho disadvanlagos aro lho adninislralivo cosls invoIvod and lho risI of rospon-
sibiIily boing dividod.
Homc working and tcIcworking
Hono-basod onpIoyoos can bo onpIoyod in such ¡obs as consuIlanls, anaIysls,
dosignors, progrannors or various Iinds of adninislralivo vorI. Tho advanlagos of
lhoso arrangononls aro:
fIoxibiIily lo rospond rapidIy lo fIuclualions in donand,
roducod ovorhoads,
Iovor onpIoynonl cosls if lho hono vorIors aro soIf-onpIoyod (caro, hovovor,
has lo bo laIon lo onsuro lhal lhoy aro rogardod as soIf-onpIoyod for incono lax
and nalionaI insuranco purposos).
ToIovorIing invoIvos poopIo vorIing al hono vilh a lorninaI vhich is IinIod lo
lho nain conpany or nolvorIod vilh olhor oulvorIors. Ils ain is lo achiovo
groalor fIoxibiIily, rapid accoss lo sIiIIs and lho rolonlion of sIiIIod onpIoyoos
vho vouId olhorviso bo Iosl lo lho conpany. ToIovorIors can bo usod in a nunbor
of funclions such as narIoling, financo and IT. Tho arrangononl doos, hov-
ovor, dopond for ils succoss on lho invoIvononl and oducalion of aII onpIoyoos
(fuII-lino and loIovorIors), lho carofuI soIoclion and lraining of loIovorIors,
aIIocaling adoqualo rosourcos lo lhon and noniloring lho oporalion of lho
syslon.
Subcontracting
Subconlracling onabIos:
rosourcos lo bo conconlralod on coro businoss aclivilios,
onpIoynonl cosls lo bo roducod,
fIoxibiIily and produclivily lo bo incroasod,
¡ob socurily for coro onpIoyoos lo bo onhancod.
Tho polonliaI dravbacIs incIudo:
Tho IogaI slalus of subconlraclors. This has lo bo cIarifiod for incono lax, nalionaI
insuranco and onpIoynonl IogisIalion purposos.
Tho dogroo lo vhich subconlraclors viII bo abIo lo nool doIivory and quaIily
roquirononls ÷ il nay bo noro difficuIl lo conlroI lhoir vorI.
Nogalivo roaclions fron onpIoyoos and lrado unions vho profor vorI lo bo Iopl
vilhin lho conpany.
Tho docision on hov nuch vorI can bo subconlraclod is nainIy an oporalionaI ono,
bul lho fIoxibiIily pIan shouId covor lho inpIicalions of subconlracling on onpIoy-
nonl IovoIs and onpIoyoo roIalions.
FIcxibIc bour arrangcmcnts
FIoxibIo hour arrangononls can bo incIudod in lho fIoxibiIily pIan in ono or noro of
lho foIIoving vays:
FIoxibIo daiIy hours. Thoso nay foIIov an agrood pallorn day by day according lo
lypicaI or oxpoclod vorI Ioads (og fIoxilino syslons).
FIoxibIo vooIIy hours, providing for Iongor vooIIy hours lo bo vorIod al corlain
poaI poriods during lho yoar.
FIoxibIo daiIy and vooIIy hours: varying daiIy or vooIIy hours or a conbinalion
of bolh lo nalch lho inpul of hours lo achiovo lho roquirod oulpul. Such vorIing
linos, unIiIo daiIy or vooIIy arrangononls, nay fIuclualo bolvoon a nininun
and a naxinun.
Conprossod vorIing vooIs in vhich onpIoyoos vorI fovor lhan lho fivo slan-
dard days.
AnnuaI hours: schoduIing onpIoyoo hours on lho basis of lho nunbor of hours lo
bo vorIod, vilh provisions for lho incroaso or roduclion of hours in any givon
poriod, according lo lho donand for goods or sorvicos.
Ovcrtimc arrangcmcnts
AfIoxibiIily pIan can conlain proposaIs lo roduco ovorlino cosls by lho uso of fIoxibIo
hours, nov shifl arrangononls (as for lviIighl shifls), lino off in Iiou and ovorlino
Iinilalion agroononls. Tho roduclion of ovorlino is oflon calorod for in fornaI
produclivily doaIs vhich incIudo a quid pro quo in lho forn of incroasod pay for lho
oIininalion of ovorlino paynonls and lho inlroduclion of fIoxibIo vorI pallorns.
Sbift working arrangcmcnts
Thoso can bo inlroducod or nodifiod lo nool donand roquirononls, roduco ovorlino
or provido for bollor pIanl or oquipnonl uliIizalion.
Thc dovn·í2íng pían
If aII oIso faiIs, il nay bo nocossary lo doaI vilh unaccoplabIo onpIoynonl cosls or
surpIus nunbors of onpIoyoos by vhal has ouphonislicaIIy cono lo bo Inovn as
´dovnsizing'. Tho dovnsizing pIan shouId bo basod on lho lining of roduclions and
forocasls of lho oxlonl lo vhich lhoso can bo achiovod by naluraI vaslago or voIunlary
rodundancy. Tho pIan shouId sol oul:
lho lolaI nunbor of poopIo vho havo lo go, and vhon and vhoro lhis noods lo
laIo pIaco,
arrangononls for inforning and consuIling vilh onpIoyoos and lhoir lrado
unions,
a forocasl of lho nunbor of Iossos lhal can bo laIon up by naluraI vaslago,
any financiaI or olhor inducononls lo oncourago voIunlary rodundancy,
a forocasl of lho IiIoIy nunbors vho viII voIunloor lo Ioavo,
a forocasl of lho baIanco of onpIoyoos, if any, vho viII havo lo bo nado rodun-
danl (lho pIan shouId, of courso, ain lo avoid lhis lhrough naluraI vaslago and
voIunlary rodundancy),
lho rodundancy lorns,
any financiaI inducononls lo bo offorod lo Ioy onpIoyoos vhon lho conpany
vishos lo rolain,
any arrangononls for rolraining onpIoyoos and finding lhon vorI oIsovhoro in
lho organizalion,
lho slops lo bo laIon lo hoIp rodundanl onpIoyoos find nov ¡obs by counsoIIing,
conlacling olhor onpIoyors or offoring lho sorvicos of oulpIacononl consuIlanls,
lho arrangononls for loIIing individuaI onpIoyoos aboul lho rodundancios and
hov lhoy aro affoclod, and for Iooping lho lrado unions infornod.
1HL CCN1klßL1lCN Cl Hk 1C HLMAN kLSCLkCL
lLANNlNC
Hunan rosourco pIanning, in lho broador noaning of lho lorn, is ono of lho funda-
nonlaI slralogic roIos of lho HR funclion. HR can naIo a na¡or conlribulion lo dovoI-
oping lho rosourco capabiIily of lho firn and lhoroforo ils slralogic capabiIily by
syslonalicaIIy rovioving lho firn's slralogic ob¡oclivos and by onsuring lhal pIans aro
nado lhal viII onsuro lhal lho hunan rosourcos aro avaiIabIo lo nool lhoso ob¡oclivos.
Thus HR is focusing on lho acquisilion and dovoIopnonl of lho hunan capilaI
roquirod by lho organizalion.
To naIo lhis conlribulion, hoads of HR and lhoir coIIoaguos in lho HR funclion
nood lo:
onsuro lhal lhoy aro avaro of lho slralogic pIans of lho businoss, and can provido
advico on lho hunan rosourco inpIicalions of lhoso pIans,
poinl oul lo nanagononl lho slronglhs and voaInossos of lho hunan rosourcos of
lho organizalion, and lho opporlunilios and lhroals lhoy prosonl, so lhal lhoso can
bo considorod vhon dovoIoping businoss pIans,
bo capabIo of sconario pIanning in lho sonso lhal lhoy can idonlify fuluro issuos
concorning lho acquisilion, rolonlion and onpIoynonl of poopIo, and adviso on
nolhods of addrossing lhoso issuos,
undorsland lho oxlonl lo vhich quanlilalivo assossnonls of lho fuluro donand for
and suppIy of poopIo nay bo foasibIo and usofuI, and Inov lho nolhods lhal can
bo usod lo proparo such forocasls,
bo avaro of lho scopo lo doaI vilh fuluro roquirononls by inlroducing various
forns of fIoxibiIily,
bo capabIo of proparing roIovanl and praclicaI rosourcing pIans and slralogios for
rolaining poopIo, basod upon an undorslanding of lho inlornaI and oxlornaI onvi-
ronnonl of lho organizalion, and lho inpIicalions of anaIysos of Iabour lurnovor.
1uíont munugomont
TaIonl nanagononl consisling of laIonl pIanning and dovoIopnonl is a roIalivoIy nov
concopl, onIy onorging in lho 2000s. Il dorivos fron lho phraso ´lho var for laIonl',
vhich originalod in lho Ialo 1990s as a noans of highIighling lho probIons lhal orga-
nizalions voro having in allracling and rolaining laIonlod poopIo. Hovovor O'RoiIIy
and Ifoffor (2000) poinl oul lhal: Ćonpanios lhal adopl a ´laIonl var¨ nindsol nay
pIaco loo nuch vaIuo on oulsidors and dovnpIay lho laIonl aIroady in lho conpany.'
Tho approach shouId bo ono lhal onphasizos lho abiIily of ovoryono lo succood and
lhoroby áchiovo oxlraordinary rosuIls vilh ordinary poopIo'. And Ifoffor (2001)
varns lhal lho var for laIonl is lho vrong nolaphor bocauso il ovorIooIs lho oxlonl lo
vhich loans of poopIo viII oflon oporalo noro offoclivoIy lhan noro coIIoclions of
individuaIs.
Thoro is nolhing nov aboul lho various approachos conlainod in lho concopl
of laIonl nanagononl ÷ allraclion, rolonlion, nolivalion and ongagononl, dovoIop-
nonl, and succossion pIanning. Bul lhoy aro bundIod logolhor lo produco a noro
cohoronl vhoIo lhal can bo a vohicIo for lho dovoIopnonl and inpIononlalion of
coordinalod and nuluaIIy supporling approachos lhal hoIp lho organizalion lo gol
and lo Ioop lho laIonlod poopIo il noods. Il is cIosoIy associalod vilh lho nolion of
croaling á bosl pIaco lo vorI', vhich has again bocono proninonl in lho 2000s.
In lhis chaplor laIonl nanagononl is doaIl vilh undor lho foIIoving hoadings:

laIonl nanagononl dofinod,
lho oIononls of laIonl nanagononl,
croaling a ´bosl pIaco lo vorI',
allraclion poIicios,
rolonlion poIicios,
caroor nanagononl (caroor and succossion pIanning) poIicy and praclico,
laIonl nanagononl for InovIodgo vorIors,
concIusions ÷ lho praclico of laIonl nanagononl.
1ALLN1 MANACLMLN1 DLllNLD
TaIonl nanagononl is lho uso of an inlogralod sol of aclivilios lo onsuro lhal lho orga-
nizalion allracls, rolains, nolivalos and dovoIops lho laIonlod poopIo il noods nov
and in lho fuluro. Tho ain is lo socuro lho fIov of laIonl, boaring in nind lhal laIonl is
a na¡or corporalo rosourco.
Il is sonolinos assunod lhal laIonl nanagononl is onIy concornod vilh Ioy
poopIo ÷ lho high fIyors. For oxanpIo, SniIansIy (2005) slalos lhal il is áinod al
inproving lho caIibro, avaiIabiIily and fIoxibIo uliIizalion of oxcoplionaIIy capabIo
(high polonliaI) onpIoyoos vho can havo a disproporlionalo inpacl on businoss
porfornanco'. Bul ovoryono in an organizalion has laIonl, ovon if sono havo noro
laIonl lhan olhors. TaIonl nanagononl procossos shouId nol bo Iinilod lo lho
favourod fov. This poinl vas nado by doLong and Vi¡ayaraghavan (2003) vhon lhoy
suggoslod lhal lho unsung horoos of corporalo porfornanco aro lho capabIo, sloady
porfornors.
1HL LLLMLN1S Cl 1ALLN1 MANACLMLN1
Tho oIononls of laIonl nanagononl and lhoir inlorroIalionships aro shovn in Figuro
26.1.
TaIonl nanagononl slarls vilh lho businoss slralogy and vhal il signifios in lorns
of lho laIonlod poopIo roquirod by lho organizalion. UIlinaloIy, ils ain is lo dovoIop
and nainlain a laIonl pooI consisling of a sIiIIod, ongagod and connillod vorIforco.
Ils oIononls aro doscribod boIov.
Thc rc·ourcíng ·|ra|cg,
Tho businoss pIan providos lho basis for hunan rosourco pIanning, vhich dofinos
hunan capilaI roquirononls and Ioads lo allraclion and rolonlion poIicios and pro-
grannos for inlornaI rosourcing (idonlifying laIonl vilhin lho organizalion and
dovoIoping and pronoling il).
A||rac|íon and rc|cn|íon poíícíc· and programmc·
Thoso poIicios and progrannos doscribo lho approach lo onsuring lhal lho organiza-
lion bolh gols and Ioops lho laIonl il noods. Allraclion poIicios Ioad lo progrannos
for oxlornaI rosourcing (rocruilnonl and soIoclion of poopIo fron oulsido lho organi-
zalion). Rolonlion poIicios aro dosignod lo onsuro lhal poopIo ronain as connillod
nonbors of lho organizalion. Tho oulcono of lhoso poIicios is a laIonl fIov lhal
croalos and nainlains lho laIonl pooI. Bolh allraclion and rolonlion poIicios as
1uíont munugomont 39l
Attraction
and retention
policies
Continuing
talent audit
Business
strategy
Resourcing
strategy
Role
Career
management
External
resourcing
Talent
relationship
management
Management
development
Management
succession
Ìnternal
resourcing
Performance
management
Learning and
development
Total reward
Engagement/
commitment
The talent
pool: a
skilled,
engaged and
committed
workforce
FIgurc 26.1 Tho oIononls of laIonl nanagononl
discussod in groalor dolaiI Ialor in lhis chaplor viII bo incIudod anongsl lho slops
roquirod lo naIo lho organizalion á groal pIaco lo vorI', aIso considorod in lho noxl
nain soclion of lhis chaplor.
Taícn| audí|
A laIonl audil idonlifios lhoso vilh polonliaI and providos lho basis for caroor pIan-
ning and dovoIopnonl ÷ onsuring lhal laIonlod poopIo havo lho soquonco of oxpori-
onco suppIononlod by coaching and Ioarning progrannos lhal viII fil lhon lo carry
oul noro donanding roIos in lho fuluro. TaIonl audils can aIso bo usod lo indicalo lho
possibIo dangor of laIonlod poopIo Ioaving (risI anaIysis) and vhal aclion nay nood
lo bo laIon lo rolain lhon.
Roíc dcvcíopmcn|
TaIonl nanagononl is concornod vilh lho roIos poopIo carry oul. This invoIvos roIo
dovoIopnonl ÷ onsuring lhal roIos provido lho rosponsibiIily, chaIIongo and
aulonony roquirod lo croalo roIo ongagononl and nolivalion. Il aIso invoIvos laIing
slops lo onsuro lhal poopIo havo lho opporlunily and aro givon lho oncouragononl lo
Ioarn and dovoIop in lhoir roIos. TaIonl nanagononl poIicios aIso focus on roIo fIoxi-
biIily ÷ giving poopIo lho chanco lo dovoIop lhoir roIos by naIing bollor and
oxlondod uso of lhoir laIonls.
Taícn| rcía|íon·híp managcmcn|
TaIonl roIalionship nanagononl is lho procoss of buiIding offoclivo roIalionships vilh
poopIo in lhoir roIos. Il is concornod gonoraIIy vilh croaling a groal pIaco lo vorI (soo
Ialor), bul parlicuIarIy il is aboul lroaling individuaI onpIoyoos fairIy, rocognizing
lhoir vaIuo, giving lhon a voico and providing opporlunilios for grovlh. Tho ain is
lo achiovo ´laIonl ongagononl', onsuring lhal poopIo aro connillod lo lhoir vorI and
lho organizalion. As Soars (2003) poinls oul, il is ´bollor lo buiId an oxisling roIalion-
ship ralhor lhan lry lo croalo a nov ono vhon sonoono Ioavos'.
Iorfornanco nanagononl procossos provido a noans of buiIding roIalionships vilh
poopIo, idonlifying laIonl and polonliaI, pIanning Ioarning and dovoIopnonl aclivi-
lios and naIing lho nosl of lho laIonl possossod by lho organizalion. Lino nanagors
can bo asIod lo carry oul soparalo ´risI anaIysos' for any Ioy slaff lo assoss lho IiIoIi-
hood of lhoir Ioaving. IroporIy carriod oul, porfornanco nanagononl is a noans of
incroasing lho ongagononl and nolivalion of poopIo by providing posilivo foodbacI
and rocognilion. This is parl of a lolaI rovard syslon.
To|aí rcvard
TolaI rovard slralogios (soo Chaplor 43), vhich provido for bolh financiaI and non-
financiaI rovards, can conlribulo lo lho ongagononl and connilnonl of laIonlod
poopIo by dononslraling lhal lhoy aro vaIuod for lhoir conlribulion and by oporaling
fairIy and consislonlIy. Iaying conpolilivo ralos viII affocl lho abiIily of organizalions
lo allracl and rolain poopIo, bul lhoro is a Iinil lo lho oxlonl lo vhich conpanios can
conpolo vilh lho ´puII of lho narIol' as CappoIIi (2000) poinls oul. Rolonlion or
IoyaIly bonusos (goIdon handcuffs) aro usod by sono conpanios, bul again, as
slrossod by CappoIIi lhoro is a Iinil lo lhoir offoclivonoss as bribos. If laIonlod poopIo
vanl lo go lhoy viII go.
Loarning and dovoIopnonl poIicios and progrannos aro ossonliaI conpononls in lho
procoss of dovoIoping laIonl ÷ onsuring lhal poopIo acquiro and onhanco lho sIiIIs
and conpoloncios lhoy nood. IoIicios shouId bo fornuIalod by roforonco lo ónpIoyoo
succoss profiIos', vhich aro doscribod in lorns of conpoloncios and dofino lho quaIi-
lios lhal nood lo bo dovoIopod. EnpIoyoo succoss profiIos can bo incorporalod in roIo
profiIos.
Loarning and dovoIopnonl aclivilios aro aIso inporlanl noans of dovoIoping
nanagors and gaining lho ongagononl and connilnonl of laIonlod slaff by
giving lhon opporlunilios lo grov in lhoir prosonl roIos and lo progross lo highor-
IovoI roIos.
Carccr managcmcn|
Caroor nanagononl consisls of lho procossos of caroor pIanning and nanagononl
succossion. Caroor pIanning shapos lho progrossion of individuaIs vilhin an organi-
zalion in accordanco vilh assossnonls of organizalionaI noods, dofinod onpIoyoo
succoss profiIos and lho porfornanco, polonliaI and proforoncos of individuaI
nonbors of lho onlorpriso.
Managononl succossion pIanning laIos pIaco lo onsuro lhal, as far as possibIo, lho
organizalion has lho nanagors il roquiros lo nool fuluro businoss noods. Caroor
nanagononl is doaIl vilh in noro dolaiI in lho Iasl soclion of lhis chaplor.
1uíont munugomont 393
CkLA1lNC A CkLA1 lLACL 1C \CkK
Ensuring lhal lho organizalion is porcoivod as boing á groal pIaco lo vorI' noans
lhal il boconos an ónpIoyor of choico', io ono for vhon poopIo vanl lo vorI. Thoro
is a dosiro lo ¡oin lho organizalion and onco lhoro, lo vanl lo slay. EnpIoyoos aro
connillod lo lho organizalion and ongagod in lho vorI lhoy do. To acquiro a
nalionaI, ovon a IocaI ropulalion as a good onpIoyor laIos lino. Bul il's vorlh lho
offorl.
On lho basis of lhoir IongiludinaI rosoarch in 12 conpanios, IurcoII ci cl (2003)
concIudod lhal:
\hut sooms to bo hupponìng ìs thut succossluí lìrms uro ubío to moot poopío's noods
both lor u good ¡ob und to vork ´ìn u grout píuco'. 1hoy crouto good vork und u
conducìvo vorkìng onvìronmont. ln thìs vuy thoy bocomo un ómpíoyor ol choìco'.
loopío vìíí vunt to vork thoro bocuuso thoìr ìndìvìduuí noods uro mot - lor u good ¡ob
vìth prospocts íìnkod to truìnìng, uppruìsuí, und vorkìng vìth u good boss vho íìstons
und gìvos somo uutonomy but hoíps vìth couchìng und guìdunco.
Tho criloria usod by lho Sun!cq 1imcs in idonlifying lho ´100 Bosl Conpanios lo WorI
For', 2005 voro:
Ioadorship al sonior nanagononl IovoI,
ny nanagor ÷ IocaI nanagononl on a day-lo-day basis,
porsonaI grovlh ÷ opporlunilios lo Ioarn, grov and bo chaIIongod,
voII-boing ÷ baIancod vorI-Iifo issuos,
ny loan ÷ innodialo coIIoaguos,
giving sonolhing bacI ÷ lo socioly and lho IocaI connunily,
ny conpany ÷ lho vay il lroals slaff,
fair doaI ÷ pay and bonofils.
Tho faclors usod in lho lincncicl 1imcs 2005 bosl vorIpIacos roporl voro:
havo a rango of nanagononl praclicos lhal hoIp slaff lo fooI vaIuod, produclivo
and Iislonod lo,
supporl al hono ÷ slop in vhon poopIo aro sufforing fron porsonaI probIons,
nainlain a baIanco bolvoon vorI and faniIy,
offoclivo onpIoyoo dovoIopnonl progranno,
slaff lruslod lo do lhoir ¡obs proporIy.
Croaling a groal pIaco lo vorI slarls vilh dovoIoping lho inago of lho organizalion so
lhal il is rocognizod as ono lhal achiovos rosuIls, doIivors quaIily producls and sor-
vicos, bohavos olhicaIIy and providos good condilions of onpIoynonl. Organizalions
vilh a cIoar vision and a sol of inlogralod and onaclod vaIuos aro IiIoIy lo pro¡ocl
lhonsoIvos as boing voII vorlh vorIing for.
A11kAC1lCN S1kA1LClLS
Tho ovoraII slralogy shouId bo lo bocono an onpIoyor of choico. As Scarborough and
EIias (2002) pul il: ´Tho rocruilnonl of Ioy individuaIs vho viII conlribulo signifi-
canlIy lo lho vaIuo-croaling capacily of lho firn is cruciaI lo succoss.' Tho ains aro lo
oslabIish lho brand inago of lho organizalion ÷ hov olhors porcoivo il (onpIoyoo
branding), lo bocono an onpIoyor of choico, and lo largol rocruilnonl and soIoclion
lo oblain lho sorl of poopIo lho organizalion noods.
Lmpío,cr brandíng
EnpIoyor branding is lho croalion of a brand inago of lho organizalion for prospoc-
livo onpIoyoos. Il viII bo infIuoncod by lho ropulalion of lho organizalion as a busi-
noss or providor of sorvicos as voII as ils ropulalion as an onpIoyor. As doscribod by
AIan Rood, Foundor and Chiof Exoculivo of Rood Exoculivo pIc, in 2001: ÉnpIoyor
branding is lho concopl of appIying lo lho rocruilnonl procoss lho sano narIoling
cohoronco usod in lho nanagononl of cuslonors.' Ho suggosls lhal lho approachos
roquirod lo dovoIop an onpIoyor brand aro:
anaIyso vhal idoaI candidalos nood and vanl and laIo lhis inlo accounl in
dociding vhal shouId bo offorod and hov il shouId bo offorod,
oslabIish hov far lho coro vaIuos of lho organizalion supporl lho croalion of an
allraclivo brand and onsuro lhal lhoso aro incorporalod in lho prosonlalion of lho
brand as Iong as lhoy aro ´vaIuos in uso' (Iivod by nonbors of lho organizalion)
ralhor lhan sinpIy ospousod,
dofino lho foaluros of lho brand on lho basis of an oxaninalion and roviov of
oach of lho aroas lhal affocl lho porcoplions of poopIo aboul lho organizalion as á
groal pIaco lo vorI' ÷ lho vay poopIo aro lroalod, lho provision of a fair doaI,
opporlunilios for grovlh, vorI-Iifo baIanco, Ioadorship, lho quaIily of nanago-
nonl, invoIvononl vilh coIIoaguos and hov and vhy lho organizalion is
succossfuI,
bonchnarI lho approachos of olhor organizalions (lho Sun!cq 1imcs Iisl of lho 100
bosl conpanios lo vorI for is usofuI) lo oblain idoas aboul vhal can bo dono lo
onhanco lho brand,
bo honosl and roaIislic.
Lmpío,cr of choícc
Tho ain is lo bocono an ónpIoyor of choico', a pIaco vhoro poopIo profor lo vorI.
This noans dovoIoping vhal Soars (2003) caIIs á vaIuo proposilion', vhich connu-
nicalos vhal lho organizalion can offor ils onpIoyoos as a ´groal pIaco lo vorI'. Tho
faclors lhal conlribulo lo boing an onpIoyor of choico aro lho provision of:
inlorosling and rovarding vorI,
opporlunilios for Ioarning, dovoIopnonl and caroor progrossion,
a roasonabIo dogroo of socurily,
onhancod fuluro onpIoyabiIily bocauso of lho ropulalion of lho organizalion as
ono lhal onpIoys and dovoIops high quaIily poopIo, as voII as lho Ioarning oppor-
lunilios il providos,
bollor faciIilios and scopo for InovIodgo vorIors, og rosoarch and dovoIopnonl
scionlisls or onginoors and IT spociaIisls,
onpIoynonl condilions lhal salisfy vorI-Iifo baIanco noods,
a rovard syslon lhal rocognizos and vaIuos conlribulion and providos conpoli-
livo pay and bonofils.
This aII adds up lo an onpIoyoo vaIuo proposilion vhich, as a noans of allracling and
rolaining high polonliaI onpIoyoos, rocognizos lhal lhoy viII bo IooIing for slrong
vaIuos and oxpocling lo bo voII nanagod, lo havo froodon and aulonony, high ¡ob
chaIIongo and caroor opporlunilios. A povorfuI nolhod of rolonlion is sinpIy lo
onsuro lhal poopIo fooI lhoy aro vaIuod.
Targc|cd rccruí|mcn| and ·cícc|íon
Tho firsl slop is lo idonlify vhal sorl of poopIo lho organizalion noods vilh rogard lo
lhoir quaIificalions and oxporionco and lho oxlonl lo vhich lhoy aro IiIoIy lo fil
lho cuIluro of lho organizalion ÷ ils vaIuos and norns. This invoIvos anaIysing
and assossing vorI roquirononls and dofining vhal cuIluraI fil noans. Tho nosl
inporlanl characlorislics of lhoso vho aro aIroady lhriving ÷ vhal soparalos
succossfuI fron unsuccossfuI onpIoyoos ÷ shouId bo dolorninod so lhal olhors IiIo
lhon can bo rocruilod. Alliludos lo vorI, caroors and lho conpany aro inporlanl,
bohaviour can bo infIuoncod Ialor as poopIo bocono faniIiar vilh lho cuIluro so Iong
as lhoir alliludos aro righl. As Loary-}oyco (2004) says: ´Rocruil for alliludo, inducl for
cuIluro.'
kL1LN1lCN S1kA1LClLS
Tho lurnovor of Ioy onpIoyoos can havo a disproporlionalo inpacl on lho businoss
and lho poopIo organizalions vish lo rolain aro probabIy lho onos nosl IiIoIy lo Ioavo.
Rood (2001) cIains lhal:
Lvory vorkor ìs lìvo mìnutos uvuy lrom hundìng ìn hìs or hor notìco, und l50 vorkìng
hours uvuy lrom vuíkìng out ol tho door to u bottor ollor. 1horo ìs no such thìng us u ´¡ob
lor íìlo' und toduy's vorkors huvo lov quuíms ubout íouvìng ompíoyors lor groonor
pusturos. 1ho uvorugo pormunont ¡ob ìn tho LK íusts sìx yours.
Concorlod aclion is roquirod lo rolain laIonlod poopIo, bul lhoro aro Iinils lo vhal any
organizalion can do. Il is aIso nocossary lo oncourago lho groalosl conlribulion fron
oxisling laIonl and lo vaIuo lhon accordingIy.
fac|or· affcc|íng rc|cn|íon
Rolonlion slralogios shouId bo basod on an undorslanding of lho faclors lhal affocl
lhon. For oarIy caroor onpIoyoos (30 yoars and undor) caroor advancononl is signifi-
canl. For nid-caroor onpIoyoos (ago 31÷50) lho abiIily lo nanago lhoir caroors and
salisfaclion fron lhoir vorI aro inporlanl. Lalo caroor onpIoyoos (ovor 50) viII bo
inloroslod in socurily. Il is aIso lho caso lhal a youngor vorIforco viII chango ¡obs and
onpIoyors noro oflon lhan an oIdor vorIforco, and vorIforcos vilh a Iol of parl-
linors aro Ioss slabIo lhan lhoso vilh prodoninaloIy fuII-lino slaff. Tho spocific
faclors lhal affocl rolonlion aro:
conpany inago,
rocruilnonl, soIoclion and dopIoynonl,
Ioadorship ÷ ónpIoyoos ¡oin conpanios and Ioavo nanagors',
Ioarning opporlunilios,
porfornanco rocognilion and rovards.
A sludy of high fIyors by HoIbocho (1998) found lhal lho faclors lhal aidod lho rolon-
lion and nolivalion of high porfornors incIudod providing chaIIongo and achiovo-
nonl opporlunilios (og assignnonls), nonlors, roaIislic soIf-assossnonl and foodbacI
procossos.
ßa·í· of |hc ·|ra|cg,
Arolonlion slralogy laIos inlo accounl lho parlicuIar rolonlion issuos lho organizalion
is facing and sols oul vays in vhich lhoso issuos can bo doaIl vilh. This nay noan
accopling lho roaIily, as nonlionod by CappoIIi (2000), lhal lho narIol, nol lho
conpany viII uIlinaloIy dolornino lho novononl of onpIoyoos. CappoIIi boIiovos
lhal il nay bo difficuIl lo counlor lho puII of lho narIol ÷ ýou can'l shioId your
poopIo fron allraclivo opporlunilios and aggrossivo rocruilors', and suggosls lhal:
´Tho oId goaI of HR nanagononl ÷ lo nininizo ovoraII onpIoyoo lurnovor ÷ noods lo
bo ropIacod by a nov goaI: lo infIuonco vho Ioavos and vhon.' This, as proposod by
Bovan   (1997), couId bo basod on risI anaIysis lo quanlify lho soriousnoss of Iosing
Ioy poopIo, or of Ioy posls boconing vacanl.
Rí·| anaí,·í·
RisI anaIysis can bo carriod oul iniliaIIy by idonlifying polonliaI risI aroas ÷ lho Ioy
poopIo vho nay Ioavo and, for oach of lhon as individuaIs or groups, oslinaling:
lho IiIoIihood of lhis occurring,
hov sorious lho offocls of a Ioss vouId bo on lho businoss,
lho oaso vilh vhich a ropIacononl couId bo nado and lho ropIacononl cosls.
Each of lho oslinalos couId bo oxprossod on a scaIo, say: vory high, high, nodiun,
Iov, vory Iov. An ovorviov of lho ralings undor oach hoading couId lhon indicalo
vhoro aclion nay nood lo bo laIon lo rolain Ioy poopIo or groups of poopIo.
Anaí,·í· of rca·on· for ícavíng
RisI anaIysis providos spocific infornalion on aroas for concorn. Moro gonoraIIy,
sono indicalion of lho roasons for Ioaving and lhoroforo vhoro aclion noods lo bo
laIon nay bo providod by oxil inlorviovs, bul lhoy aro faIIibIo. Moro roIianco can bo
pIacod on lho rosuIls of alliludo or opinion survoys lo idonlify any aroas of dissalis-
faclion. Tho rolonlion pIan shouId proposo aclions lhal vouId focus on oach of lho
aroas in vhich IacI of connilnonl and dissalisfaclion can ariso.
Arca· for ac|íon
Doponding on lho oulcono of lho risI anaIysis and lho ovoraII assossnonl of roasons
for Ioaving, lho possibIo aclions lhal can bo laIon aro as foIIovs:
DoaI vilh unconpolilivo, inoquilabIo or unfair pay syslons. Bul as CappoIIi
(2000) poinls oul, lhoro is a Iinil lo lho oxlonl lo vhich poopIo can bo bribod lo
slay. Rononbor lhal vhiIo nonoy nighl allracl, you can'l buy Iovo ÷ il is oflon
olhor lhings lhal gol poopIo lo slay (hov lhoy aro lroalod).
Dosign ¡obs lo naxinizo sIiII varioly, lasI significanco, aulonony, conlroI ovor
lhoir vorI and foodbacI, and onsuro lhal lhoy provido opporlunilios for Ioarning
and grovlh. Sono roIos can bo ćuslonizod' lo nool lho noods of parlicuIar indi-
viduaIs.
DovoIop connilnonl lo lho vorI (¡ob ongagononl) nol onIy lhrough ¡ob dosign
bul aIso by organizing vorI around pro¡ocls vilh vhich poopIo can idonlify noro
roadiIy lhan lho conpany as a vhoIo.
Encourago lho dovoIopnonl of sociaI lios vilhin lho conpany. In lho vords of
CappoIIi (2000), ÍoyaIly lo conpanios nay bo disappoaring bul IoyaIly lo
coIIoaguos is nol'.
Ensuro lhal soIoclion and pronolion procoduros nalch lho capacilios of individ-
uaIs lo lho donands of lho vorI lhoy havo lo do. Rapid lurnovor can rosuIl
sinpIy fron poor soIoclion or pronolion docisions.
Roduco lho Iossos of poopIo vho cannol ad¡usl lo lhoir nov ¡ob ÷ lho índuclion
crisis' ÷ by giving lhon propor lraining and supporl vhon lhoy ¡oin lho organiza-
lion.
TaIo slops lo inprovo vorI-Iifo baIanco by dovoIoping poIicios incIuding fIoxibIo
vorIing lhal rocognizo lho noods of onpIoyoos oulsido vorI.
EIininalo as far as possibIo unpIoasanl vorIing condilions or lho inposilion of
loo nuch slross on onpIoyoos.
SoIocl, briof and lrain nanagors and loan Ioadors so lhal lhoy approcialo lho posi-
livo conlribulion lhoy can naIo lo inproving rolonlion by lho vays in vhich lhoy
Ioad lhoir loans. Boar in nind lhal poopIo oflon Ioavo lhoir nanagors ralhor lhan
lhoir organizalion.
CAkLLk MANACLMLN1
Carccr managcmcn| dcfíncd
Caroor nanagononl is concornod vilh providing opporlunilios for poopIo lo pro-
gross and dovoIop lhoir caroors and onsuring lhal lho organizalion has lho fIov of
laIonl il noods. Tho oIononls of caroor nanagononl aro lho provision of Ioarning
and dovoIopnonl opporlunilios, caroor pIanning and nanagononl succossion
pIanning.
Aím·
For onpIoyoos, lho ains of caroor nanagononl poIicios aro firsl, lo givo individuaIs
lho guidanco, supporl and oncouragononl lhoy nood if lhoy aro lo fuIfiI lhoir polon-
liaI and achiovo a succossfuI caroor vilh lho organizalion in luno vilh lhoir laIonls
and aspiralions. SocondIy, lho ain is lo provido non and vonon of proniso vilh a
soquonco of Ioarning aclivilios and oxporionco lhal viII oquip lhon for vhalovor IovoI
of rosponsibiIily lhoy havo lho abiIily lo roach.
For lho organizalion, lho ain of caroor nanagononl is lo nool lho ob¡oclivos of ils
laIonl nanagononl poIicios, vhich aro lo onsuro lhal lhoro is a laIonl fIov lhal croalos
and nainlains lho roquirod laIonl pooI.
Caroor nanagononl caIIs for an approach lhal oxpIicilIy laIos inlo accounl bolh
organizalionaI noods and onpIoyoo inlorosls. As doscribod by Hirsh and Carlor
(2002), il onconpassos rocruilnonl, porsonaI dovoIopnonl pIans, IaloraI novos,
spociaI assignnonls al hono or abroad, dovoIopnonl posilions, caroor bridgos, IaloraI
novos, and supporl for onpIoyoos vho vanl lo dovoIop. Il caIIs for croalivily in idon-
lifying vays lo provido dovoIopnonl opporlunilios and onhanco onpIoyoo IoyaIly.
Carccr d,namíc·
Caroor pIanning shouId bo basod on an undorslanding of caroor dynanics. This is
concornod vilh hov caroors progross ÷ lho vays in vhich poopIo novo lhrough lhoir
caroors oilhor upvards vhon lhoy aro pronolod, or by onIarging or onriching lhoir
roIos lo laIo on groalor rosponsibiIilios or naIo noro uso of lhoir sIiIIs and abiIilios.
Tho lhroo slagos of caroor progrossion ÷ oxpanding, oslabIishing and naluring ÷ aro
iIIuslralod in Figuro 26.2. This aIso shovs hov individuaIs progross or faiI lo progross
al difforonl ralos lhrough lhoso slagos.
Thc procc·· of carccr managcmcn|
Tho procoss of caroor nanagononl is iIIuslralod in Figuro 26.3.
Carccr managcmcn| poíícíc·
Tho organizalion noods lo docido on lho oxlonl lo vhich il ńaIos or buys' laIonlod
poopIo. ShouId il grov ils ovn laIonl (a pronolion fron vilhin poIicy) or shouId il
roIy on oxlornaI rocruilnonl (bringing ´frosh bIood' inlo lho organizalion)` Tho poIicy
nay bo lo rocruil polonliaIIy high porfornors vho viII bo good al lhoir prosonl ¡ob
and aro rovardod accordingIy. If lhoy aro roaIIy good, lhoy viII bo pronolod and lho
onlorpriso viII gol vhal il vanls. DoIiboraloIy lo lrain nanagors for a fuluro lhal nay
1uíont munugomont 40l
Growth
Plateau
Decline
Expanding Establishing Maturing
20 30 40 50 60
FIgurc 26.2 Caroor progrossion curvos
Career management
policies
Performance and
potential assessment
Talent audits
Demand/supply
forecasts
Succession planning Career planning
Development processes
and programmes
FIgurc 26.3 Tho procoss of caroor nanagononl
novor happon is considorod a vaslo of lino. In conlrasl and Ioss froquonlIy,
onpIoyors vho boIiovo in Iong-lorn caroor pIanning dovoIop slruclurod approachos
lo caroor nanagononl. Thoso incIudo oIaboralo roviovs of porfornanco and polon-
liaI, assossnonl conlros lo idonlify laIonl or confirn lhal il is lhoro, ´high-fIyor'
schonos, and pIannod ¡ob novos in Iino vilh a prodolorninod progranno.
Thoro nay aIso bo poIicios for doaIing vilh lho ´pIaloauod' nanagor vho has gol so
far bul viII gol no furlhor. Sono nanagors in lhis posilion nay bo roconciIod lo
roaching lho ond of lho ´ral raco' bul conlinuo lo vorI offoclivoIy. Olhors viII bocono
borod, fruslralod and unproduclivo, ospociaIIy rising slars on lho vano. Tho poIicy
nay bo lo provido for slops lo bo laIon lo roshapo lhoir caroors so lhal lhoy sliII havo
chaIIonging vorI al lho sano IovoI, ovon if lhis doos nol invoIvo pronolion up lho
hiorarchy. AIlornalivoIy, lho poIicy nay nood lo rocognizo lhal sono nanagors viII
havo lo bo oncouragod lo slarl nov caroors oIsovhoro. In lho Iallor caso, caroor coun-
soIIing advico shouId bo providod, possibIy lhrough óulpIacononl' consuIlanls vho
provido such a sorvico.
Taícn| audí|·
Thoso roviov lho slocIs of laIonl avaiIabIo and lho fIovs roquirod by roforonco lo
donand and suppIy forocasls and porfornanco and polonliaI assossnonls. Thoy
provido lho basis for succossion and caroor pIanning.
|crformancc and po|cn|íaí a··c··mcn|·
Tho ain of porfornanco and polonliaI assossnonl is lo idonlify lraining and dovoIop-
nonl noods, provido guidanco on possibIo diroclions in vhich an individuaI's caroor
nighl go, and indicalo vho has polonliaI for pronolion. This infornalion can bo
oblainod fron porfornanco nanagononl procossos, as doscribod in Iarl VII.
Assossnonl of polonliaI can bo carriod oul fornaIIy by nanagors foIIoving a
porfornanco roviov. Thoy nay bo asIod lo idonlify poopIo vho havo vory high
polonliaI, sono polonliaI, or no polonliaI al aII. Thoy nay aIso bo asIod lo indicalo
vhon individuaIs viII bo roady for pronolion and hov far lhoy aro IiIoIy lo gol. Tho
probIon vilh lhis sorl of assossnonl is lhal nanagors find il difficuIl lo forocasl lho
fuluro for lho poopIo lhoy aro rovioving ÷ good porfornanco in lho curronl ¡ob doos
nol guaranloo lhal individuaIs viII bo abIo lo copo vilh vidor rosponsibiIilios, ospo-
ciaIIy if lhis invoIvos noving inlo nanagononl. And nanagors nay nol nocossariIy
bo avaro of lho quaIilios roquirod for Iongor-lorn pronolion. Bul lho organizalion
doos nood infornalion on lhoso vilh polonliaI and assossors shouId bo oncouragod in
lhoir connonls soclion al Ioasl lo indicalo lhal lhis is sonoono vho is nol onIy
porforning voII in lho prosonl ¡ob bul nay voII porforn voII in highor-IovoI ¡obs.
This infornalion can idonlify lhoso vho nay bo noninalod lo allond dovoIopnonl
conlros (soo Chaplor 40), vhich can bo usod lo oslabIish polonliaI and discuss caroor
pIans.
Dcmand and ·uppí, forcca·|·
Donand and suppIy forocasls aro providod by lho uso of hunan rosourco pIanning
and nodoIIing lochniquos (soo Chaplor 25). In Iargor organizalions, nodoIIing is a
parlicuIarIy fruilfuI nolhod lo uso bocauso il aIIovs for sonsilivily anaIysis of lho
inpacl of difforonl assunplions aboul lho fuluro (ansvoring ´Whal if`' quoslions).
Exporl syslons, as doscribod in Chaplor 59, can aIso bo usod vhoro lhis is an oxlon-
sivo dalabaso on fIovs, allribulo roquirononls (porson spocificalions), and porfor-
nanco and polonliaI assossnonls. Such syslons can oslabIish roIalionships bolvoon
lho opporlunilios and lho porsonaI allribulos lhoy donand, so lhal caroors advisors
can laIo a sol of porsonaI allribulos and idonlify lho nosl approprialo avaiIabIo
opporlunilios. Al lho caroor pIanning slago, lhoy can aIso idonlify poopIo vilh lho
corrocl abiIilios and sIiIIs for parlicuIar ¡obs and provido infornalion on lho caroor
nanagononl progrannos roquirod lo onsuro lhal allribulos and ¡obs aro nalchod
and caroors progross al an approprialo ralo. Caroor nanagononl syslons such as
ExocuGROW (ConlroI Dala) havo boon spociaIIy dovoIopod for lhis purposo.
Thoro is a Iinil, hovovor, lo sophislicalion. Thoro aro so nany variabIos and unpro-
diclabIo changos in bolh suppIy and donand faclors lhal il nay bo possibIo lo
conducl onIy an annuaI chocI lo soo vhal lho roIalionship is bolvoon lho nunbors of
nanagors vho viII dofiniloIy roliro ovor lho noxl four or fivo yoars and lho nunbors
al lho noxl IovoI vho havo lho polonliaI lo succood lhon. If lhis conparison rovoaIs a
sorious inbaIanco, lhon slops can bo laIon lo roduco or ovon oIininalo lho doficil, or
lo considor olhor lypos of dopIoynonl for lhoso vho aro unIiIoIy lo progross.
Succc··íon píanníng
Succossion pIanning is lho procoss of assossing and audiling lho laIonl in lho organi-
zalion in ordor lo ansvor lhroo fundanonlaI quoslions:
1. Aro lhoro onough polonliaI succossors avaiIabIo ÷ a suppIy of poopIo coning
lhrough vho can laIo Ioy roIos in lho Iongor lorn`
2. Aro lhoy good onough`
3. Do lhoy havo lho righl sIiIIs and allribulos for lho fuluro`
Succossion pIanning is basod on lho infornalion suppIiod by laIonl audils, suppIy
and donand forocasls and porfornanco and polonliaI roviovs. In sono Iargo
organizalions in vhich donand and suppIy forocasls can bo nado accuraloIy, highIy
fornaIizod succossion pIanning procossos oxisl basod on lho sorl of nanagononl
succossion schoduIo iIIuslralod in Figuro 26.4.
Hovovor, Hirsh (2000) poinls oul lhal lho focus of succossion pIanning has shiflod
fron idonlifying succossors for posls lovards providing for lho dovoIopnonl of lhoso
succossors by croaling ´laIonl pooIs'. This is bocauso il is difficuIl in lho changoabIo
onvironnonl in vhich nosl organizalions oxisl lo prodicl succossion roquirononls.
Thoro is aIso lho probIon of naIing roIiabIo assossnonls of polonliaI or ´pronola-
biIily'. Anolhor issuo raisod by Hirsh is lhal organizalions foar lhal loo nuch laII of
ćaroors' givos onpIoyoos unroaIislic oxpoclalions of pronolion. Il can bo difficuIl lo
laII aboul lho fuluro in a voIaliIo businoss. ´Tho rosuIl has boon lhal nany nanagors
fooI no ono vanls lo laII aboul lhoir caroor prospocls and lho organizalion vouId
socrolIy IiIo lhon lo slay ¡usl vhoro lhoy aro. This silualion Ioads lo fruslralion and
donolivalion.'
Carccr píanníng
Caroor pIanning usos aII lho infornalion providod by lho organizalion's assossnonls
of roquirononls, lho assossnonls of porfornanco, and polonliaI and nanagononl
succossion pIans, and lransIalos il inlo lho forn of individuaI caroor dovoIopnonl
progrannos and gonoraI arrangononls for nanagononl dovoIopnonl, caroor coun-
soIIing and nonloring.
MANAGEMENT SUCCESSÌON SCHEDULE Department Director/manager:
Existing managers Potential successors
Name Position Due for Rating Ìf promotable, Names: Positions When
replacement Performance Potential to what position 1st and
and when? 2nd
choice
FIgurc 26.4 Managononl succossion schoduIo
Il is possibIo lo dofino caroor progrossion in lorns of vhal poopIo aro roquirod lo
Inov and bo abIo lo do lo carry oul vorI al progrossivo IovoIs of rosponsibiIily or
conlribulion. Thoso IovoIs can bo doscribod as conpoloncy bands. For oach band, lho
oxporionco and lraining noodod lo achiovo lho conpoloncy IovoI vouId bo dofinod in
ordor lo produco a caroor nap incorporaling áining poinls' for individuaIs, as iIIus-
lralod in Figuro 26.5, vho vouId bo nado avaro of lho conpoloncy IovoIs lhoy nusl
roach in ordor lo achiovo progross in lhoir caroors. This vouId hoIp lhon lo pIan lhoir
ovn dovoIopnonl, aIlhough supporl and guidanco shouId bo providod by lhoir
nanagors, HR spociaIisls and, if lhoy oxisl, nanagononl dovoIopnonl advisors or
nonlors. Tho provision of addilionaI oxporionco and lraining couId bo arrangod as
approprialo, bul il vouId bo inporlanl lo cIarify vhal individuaI onpIoyoos nood lo
do for lhonsoIvos if lhoy vanl lo progross vilhin lho organizalion.
Competence band 1 definition Competence band 1 definition Competence band 1 definition
Basic training and experience Continuation training and Advanced training and
experience experience
Aiming point
Aiming point
FIgurc 26.5 Conpolonco band caroor progrossion syslon
Caroor faniIy grado slrucluros, as doscribod in Chaplor 46, can dofino IovoIs of
conpoloncy in oach caroor faniIy and shov caroor palhs upvards vilhin faniIios or
bolvoon faniIios, as iIIuslralod in Figuro 26.6.
Level 6 Level 6 Level 6
Career family A Career family B Career family C
FIgurc 26.6 Caroor palhs in a caroor faniIy slrucluro
FornaI caroor pIanning aIong lhoso Iinos nay bo lho idoaI, bul as nolod by Hirsh  
(2000), lhoro has boon a shifl fron nanagod caroor novos lo noro opon inlornaI ¡ob
narIols. Tho procoss of inlornaI ¡ob appIicalion has bocono lho nain vay in vhich
onpIoyoos nanago lhoir caroors.
1ALLN1 MANACLMLN1 lCk KNC\LLDCL \CkKLkS
KnovIodgo vorIors aro dofinod as vorIors vhoso sIiIIs or InovIodgo aro inoxlri-
cabIy IinIod vilh lho producl or sorvico of lhoir onpIoying organizalions. Tho lorn
lhoroforo onbracos such divorso groups as Iavyors, accounlanls, soflvaro dosignors,
vob dosignors, acadonics, narIolors and nodia vorIors. Moro and noro vorI is
boing dofinod by sono Iind of InovIodgo oIononl. According lo Svarl and Kinnio
(2004) lho offoclivo nanagononl of InovIodgo vorIors prosonls organizalions vilh a
nunbor of diIonnas. Choicos havo lo bo nado bolvoon lho rolonlion of InovIodgo
and InovIodgo vorIors, and lho dosiro of InovIodgo vorIors lo incroaso lhoir
onpIoyabiIily. Tonsion aIso oxisls bolvoon lho nood lo dovoIop organizalion-spocific
InovIodgo and lho vish of InovIodgo vorIors lo dovoIop lransforabIo InovIodgo.
Tho firn nay vanl lo approprialo lho vaIuo of lhal InovIodgo, bul vorIors nay
vanl lo rolain ovnorship of lhoir InovIodgo.
Svarl and Kinnio arguo lhal undorslanding of lhoso diIonnas is inprovod by a
groalor approcialion of vhoro profossionaI vorIors gol lhoir prinary sourco of idonli-
ficalion ÷ is il fron lhoir profossion, lho organizalion lhal onpIoys lhon, lho loan or
lho cIionl` Thoir IoyaIly nay bo lo lhoir profossionaI nission ralhor lhan lhoir
onpIoyor. IrofossionaI rosoarch slaff or acadonics nay bo connillod lo achioving
profossionaI slalus and rocognilion abovo any forns of porfornanco rocognilion lhal
lho onpIoying organizalion nighl bo abIo lo offor.
1ALLN1 MANACLMLN1 lN lkAC1lCL
As doscribod in lhis chaplor laIonl nanagononl consisls of a vido rango of aclivilios.
Organizalions diffor hugoIy in lho vays in vhich lhoy nanago lhoir laIonl. Sono ain
lo inlogralo aII or nosl of lhoso aclivilios, olhors conconlralo on ono or lvo such as
laIonl audils and succossion pIanning. Conlrica providos an oxanpIo of a conprohon-
sivo approach, iIIuslralod in Figuro 26.7.
kocruìtmont und soíoctìon
1HL kLCkLl1MLN1 AND SLLLC1lCN lkCCLSS
Tho ovoraII ain of lho rocruilnonl and soIoclion procoss shouId bo lo oblain al
nininun cosl lho nunbor and quaIily of onpIoyoos roquirod lo salisfy lho hunan
rosourco noods of lho conpany. Tho lhroo slagos of rocruilnonl and soIoclion doaIl
vilh in lhis chaplor aro:
1. !cjining rc¡uircmcnis ÷ proparing ¡ob doscriplions and spocificalions, dociding
lorns and condilions of onpIoynonl,
2. ciircciing ccn!i!cics ÷ rovioving and ovaIualing aIlornalivo sourcos of appIicanls,
insido and oulsido lho conpany, advorlising, using agoncios and consuIlanls,
3. sclcciing ccn!i!cics ÷ sifling appIicalions, inlorvioving, losling, assossing candi-
dalos, assossnonl conlros, offoring onpIoynonl, oblaining roforoncos, proparing
conlracls of onpIoynonl.
SoIoclion inlorvioving and soIoclion losling aro doaIl vilh in Chaplors 28 and 29.
DLllNlNC kLÇLlkLMLN1S
Tho nunbor and calogorios of poopIo roquirod shouId bo spocifiod in lho rocruilnonl

progranno, vhich is dorivod fron lho hunan rosourco pIan. In addilion, lhoro viII
bo donands for ropIacononls or for nov ¡obs lo bo fiIIod, and lhoso donands shouId
bo chocIod lo onsuro lhal lhoy aro ¡uslifiod. Il nay bo parlicuIarIy nocossary lo chocI
on lho nood for a ropIacononl or lho IovoI or lypo of onpIoyoo lhal is spocifiod.
Roquirononls for parlicuIar posilions aro sol oul in lho forn of roIo profiIos and
porson spocificalions. Thoso provido lho basic infornalion roquirod lo drafl advor-
lisononls, briof agoncios or rocruilnonl consuIlanls, and assoss candidalos. A roIo
profiIo Iisling conpolonco, sIiII, oducalionaI and oxporionco roquirononls producos
lho ¡ob criloria againsl vhich candidalos viII bo assossod al lho inlorviov or by noans
of psychoIogicaI losls.
Roíc profííc· for rccruí|mcn| purpo·c·
RoIo profiIos, as doscribod in Chaplor 13, dofino lho ovoraII purposo of lho roIo, ils
roporling roIalionships and Ioy rosuIl aroas. Thoy nay aIso incIudo a Iisl of lho
conpoloncios roquirod. Thoso viII bo lochnicaI conpoloncios (InovIodgo and sIiIIs)
and any spocific bohaviouraI conpoloncios allachod lo lho roIo. Tho Iallor vouId bo
soIoclod fron lho organizalion's conpoloncy franovorI and nodifiod as roquirod lo
fil lho donands nado on roIo hoIdors. For rocruiling purposos, lho profiIo is oxlondod
lo incIudo infornalion on lorns and condilions (pay, bonofils, hours of vorI), spociaI
roquirononls such as nobiIily, lravoIIing or unsociaI hours, and lraining, dovoIop-
nonl and caroor opporlunilios. Tho rocruilnonl roIo profiIo providos lho basis for a
porson spocificalion.
|cr·on ·pccífíca|íon·
A porson spocificalion, aIso Inovn as a rocruilnonl, porsonnoI or ¡ob spocificalion,
dofinos lho oducalion, lraining, quaIificalions and oxporionco. Tho lochnicaI conpo-
loncios as sol oul in lho roIo profiIo nay aIso bo incIudod.
A porson spocificalion can bo sol oul undor lho foIIoving hoadings:
icc|niccl ccmpcicncics ÷ vhal lho individuaI noods lo Inov and bo abIo lo do lo
carry oul lho roIo, incIuding any spociaI apliludos or sIiIIs roquirod,
|c|cticurcl cn! ciiiiu!incl rc¡uircmcnis ÷ lho lypos of bohaviours roquirod for
succossfuI porfornanco in lho roIo viII bo roIalod lo lho coro vaIuos and conpo-
loncy franovorI of lho organizalion lo onsuro lhal cuIluraI fil is achiovod vhon
soIocling poopIo. Bul roIo-spocific infornalion is aIso noodod, vhich shouId bo
dovoIopod by anaIysing lho characlorislics of oxisling onpIoyoos vho aro
carrying oul lhoir roIos offoclivoIy. By dofining bohaviouraI roquirononls il is
4l0 loopío rosourcìng
possibIo lo oIicil infornalion aboul alliludinaI roquirononls, io vhal sorl of alli-
ludos aro IiIoIy lo rosuIl in approprialo bohaviours and succossfuI porfornanco.
¡uclijicciicns cn! ircining ÷ lho profossionaI, lochnicaI or acadonic quaIificalions
roquirod, or lho lraining lhal lho candidalo shouId havo undorlaIon,
cxpcricncc ÷ in parlicuIar, calogorios of vorI or organizalions, lho lypos of achiovo-
nonls and aclivilios lhal vouId bo IiIoIy lo prodicl succoss,
spccijic !cmcn!s ÷ vhoro lho roIo hoIdor viII bo oxpoclod lo achiovo in spocifiod
aroas, og dovoIop nov narIols, inprovo saIos, or inlroduco nov syslons,
crgcnizciicncl jii ÷ lho corporalo cuIluro (og fornaI or infornaI) and lho nood for
candidalos lo bo abIo lo vorI vilhin il,
spccicl rc¡uircmcnis ÷ lravoIIing, unsociaI hours, nobiIily, olc,
mcciing ccn!i!cic cxpcciciicns ÷ lho oxlonl lo vhich lho organizalion can nool
candidalos' oxpoclalions in lorns of caroor opporlunilios, lraining, socurily olc.
Tho bohaviouraI and alliludinaI parls of lho porson spocificalion aro usod as lho basis
for slruclurod inlorviovs (soo Chaplor 28). As roporlod by Ccmpcicncq cn! |mciicncl
lniclligcncc (2004), Brilannia BuiIding Socioly rocruils on lho basis of lho candidalos'
alliludos firsl, and sIiIIs and abiIilios socond. DovoIoping lho procoss invoIvod
napping lho Socioly's vaIuos lo ils coro conpoloncios, idonlifying lho sorl of conpo-
loncy-basod quoslions lhal shouId bo asIod by inlorviovors, dofining lho lypicaI
lypos of rosponsos lhal candidalos nighl naIo, and lracIing lhoso bacI lo lho
vaIuos.
A roIo profiIo (soo Chaplor 12) viII sol oul oulpul oxpoclalions and conpoloncy
roquirononls for inlorvioving purposos (conpoloncy-basod rocruilnonl is consid-
orod in noro dolaiI boIov). Bul noro infornalion nay bo roquirod lo provido lho
conpIolo picluro for advorlising and briofing candidalos on lorns and condilions and
caroor prospocls. An oxanpIo of a porson spocificalion is givon in Figuro 27.1.
Tho biggosl dangor lo bo avoidod al lhis slago is lhal of ovorslaling lho conpolon-
cios and quaIificalions roquirod. Il is naluraI lo go for lho bosl, bul solling an unroaIis-
licaIIy high IovoI for candidalos incroasos lho probIons of allracling lhon, and rosuIls
in dissalisfaclion vhon lhoy find lhoir laIonls aro nol boing usod. Undorslaling
roquirononls can bo oquaIIy dangorous, bul il happons nuch Ioss froquonlIy. Tho bosl
approach is lo dislinguish bolvoon ossonliaI and dosirabIo roquirononls.
Whon lho roquirononls havo boon agrood, lhoy shouId bo anaIysod undor suilabIo
hoadings. Thoro aro various vays of doing lhis. A basic approach is lo sol oul and
dofino lho ossonliaI or dosirabIo roquirononls undor lho Ioy hoadings of conpolon-
cios, quaIificalions and lraining and oxporionco. AddilionaI infornalion can bo pro-
vidod on spocific donands. Il is nocossary lo spoII oul soparaloIy lho lorns and
condilions of lho ¡ob.
kocruìtmont und soíoctìon 4ll
AIlornalivoIy, lhoro aro lho lradilionaI cIassificalion schonos aIlhough, lhoso aro no
Iongor so popuIar. Tho nosl faniIiar aro lho sovon-poinl pIan dovoIopod by Rodgor
(1952) and lho fivofoId grading syslon producod by Munro Frasor (1954).
Thc ·cvcn-poín| pían
Tho sovon-poinl pIan covors:
1. p|qsiccl mc|c-up ÷ hoaIlh, physiquo, appoaranco, boaring and spooch,
2. ciicinmcnis ÷ oducalion, quaIificalions, oxporionco,
3. gcncrcl iniclligcncc ÷ fundanonlaI inloIIocluaI capacily,
4. spccicl cpiiiu!cs ÷ nochanicaI, nanuaI doxlorily, faciIily in lho uso of vords or
figuros,
1. Technical competencies:
Essential in:
- all aspects of recruitment including test administration;
- interviewing techniques;
- job analysis;
- inputting data to computers;
- administering fairly complex paperwork processes.
Desirable in:
- administering OPQ test;
- job evaluation;
- counselling techniques;
- conducting training sessions.
2. Behavioural competencies:
able to relate well to others and use interpersonal skills to achieve desired objectives;
able to influence the behaviour and decisions of people on matters concerning recruitment and
other personnel or individual issues;
able to cope with change, to be flexible and to handle uncertainty;
able to make sense of issues, identify and solve problems and 'think on one's feet';
focus on achieving results;
able to maintain appropriately directed energy and stamina, to exercise self-control and to learn new
behaviours;
able to communicate well, orally and on paper.
3. Qualifications/experience:
Graduate Member of the Chartered Ìnstitute of Personnel and Development plus relevant experi-
ence in each aspect of the work.
FIgurc 27.1 Iorson spocificalion for an HR officor
5. inicrcsis ÷ inloIIocluaI, praclicaI, conslruclionaI, physicaIIy aclivo, sociaI, arlislic,
6. !ispcsiiicn ÷ accoplabiIily, infIuonco ovor olhors, sloadinoss, dopondabiIily,
soIf-roIianco,
7. circumsicnccs ÷ donoslic circunslancos, occupalions of faniIy.
Thc fívcfoíd gradíng ·,·|cm
Tho fivofoId grading syslon covors:
1. impcci cn ci|crs ÷ physicaI naIo-up, appoaranco, spooch and nannor,
2. cc¡uirc! ¡uclijicciicns ÷ oducalion, vocalionaI lraining, vorI oxporionco,
3. inncic c|iliiics ÷ naluraI quicInoss of conprohonsion and apliludo for Ioarning,
4. mciitciicn ÷ lho Iinds of goaIs sol by lho individuaI, his or hor consisloncy and
dolorninalion in foIIoving lhon up, and succoss in achioving lhon,
5. c!jusimcni ÷ onolionaI slabiIily, abiIily lo sland up lo slross and abiIily lo gol on
vilh poopIo.
Choícc of ·,·|cm
Of lhoso lvo syslons, lho sovon-poinl pIan has lho Iongor podigroo. Tho fivo-
foId grading schono is sinpIor, in sono vays, and pIacos noro onphasis on lho
dynanic aspocls of lho appIicanl's caroor. Bolh can provido a good franovorI for
inlorvioving, bul incroasingIy, inlorviovors aro using a conpoloncy-basod approach.
U·íng a compc|cnc,-ba·cd approach
A conpoloncy-basod approach noans lhal lho conpoloncios dofinod for a roIo aro
usod as lho franovorI for lho soIoclion procoss. As doscribod by TayIor (2002): Á
conpoloncy approach is porson-basod ralhor lhan ¡ob-basod. Tho slarling poinl is
lhus nol an anaIysis of ¡obs bul an anaIysis of poopIo and vhal allribulos accounl for
lhoir offoclivo and suporior porfornanco.' Roborls (1997) suggosls lhal:
1ho bonolìt ol tukìng u compotoncìos upprouch ìs thut poopío cun ìdontìly und ìsoíuto tho
koy chuructorìstìcs vhìch vouíd bo usod us tho busìs lor soíoctìon, und thut thoso
chuructorìstìcs vìíí bo doscrìbod ìn torms vhìch both cun undorstund und ugroo. . 1ho
compotoncìos thoroloro bocomo u lundumontuí purt ol tho soíoctìon procoss.
A conpoloncios approach can hoIp lo idonlify vhich soIoclion lochniquos, such as
psychoIogicaI losling or assossnonl conlros, aro nosl IiIoIy lo produco usofuI
ovidonco. Il providos lho infornalion roquirod lo conducl a slruclurod inlorviov in
kocruìtmont und soíoctìon 4l3
vhich quoslions can focus on parlicuIar conpoloncy aroas lo oslabIish lho oxlonl lo
vhich candidalos nool lho spocificalion as sol oul in conpoloncy lorns.
Tho advanlagos of a conpoloncy-basod approach havo boon sunnarizod by Wood
and Iayno (1998) as foIIovs:
Il incroasos lho accuracy of prodiclions aboul suilabiIily.
Il faciIilalos a cIosor nalch bolvoon lho porson's allribulos and lho donands of
lho ¡ob.
Il hoIps lo provonl inlorviovors naIing ´snap' ¡udgononls.
Il can undorpin lho vhoIo rango of rocruilnonl lochniquos ÷ appIicalion forns,
inlorviovs, losls and assossnonl conlros.
Tho franovorI can bo dofinod in lorns of lochnicaI or vorI-basod conpoloncios,
vhich rofor lo oxpoclalions of vhal poopIo havo lo bo abIo lo do if lhoy aro going lo
achiovo lho rosuIls roquirod in lho ¡ob. Il can aIso incIudo dofinilions of roquirod
bohaviouraI conpoloncios, vhich rofor lo lho porsonaI characlorislics and bohaviour
roquirod for succossfuI porfornanco in such aroas as inlorporsonaI sIiIIs, Ioadorship,
porsonaI drivo, connunicalion sIiIIs, loan nonborship and anaIylicaI abiIily.
Tho conpoloncios usod for rocruilnonl and soIoclion purposos shouId nool lho
foIIoving criloria:
Thoy shouId focus on aroas in vhich candidalos viII havo dononslralod
lhoir conpoloncy in lhoir vorIing or acadonic Iifo ÷ og Ioadorship, loanvorI,
inilialivo.
Thoy aro IiIoIy lo prodicl succossfuI ¡ob porfornanco, og achiovononl nolivalion.
Thoy can bo assossod in a largolod bohaviouraI ovonl inlorviov in vhich, for
oxanpIo, if loan nanagononl is a Ioy conpolonco aroa, candidalos can bo asIod
lo givo oxanpIos of hov lhoy havo succossfuIIy buiIl a loan and gol il inlo aclion.
Thoy can bo usod as criloria in an assossnonl conlro (soo boIov).
A conpoloncy approach aIong lhoso Iinos can provido lho nosl offoclivo noans of
idonlifying suilabIo candidalos as parl of a syslonalic soIoclion procoss.
A11kAC1lNC CANDlDA1LS
Allracling candidalos is prinariIy a nallor of idonlifying, ovaIualing and using lho
nosl approprialo sourcos of appIicanls. Hovovor, in casos vhoro difficuIlios in
allracling or rolaining candidalos aro boing nol or anlicipalod, il nay bo nocossary lo
carry oul a proIininary sludy of lho faclors lhal aro IiIoIy lo allracl or ropoI candi-
dalos ÷ lho slronglhs and voaInossos of lho organizalion as an onpIoyor.
Anaí,·í· of rccruí|mcn| ·|rcng|h· and vca|nc··c·
Tho anaIysis of slronglhs and voaInossos shouId covor such nallors as lho
nalionaI or IocaI ropulalion of lho organizalion, pay, onpIoyoo bonofils and vorIing
condilions, lho inlrinsic inlorosl of lho ¡ob, socurily of onpIoynonl, opporlunilios for
oducalion and lraining, caroor prospocls, and lho Iocalion of lho offico or pIanl. Thoso
nood lo bo conparod vilh lho conpolilion in ordor lhal a Iisl of vhal aro, in offocl,
soIIing poinls can bo dravn up as in a narIoling oxorciso, in vhich lho proforoncos of
polonliaI cuslonors aro conparod vilh lho foaluros of lho producl in ordor lhal lhoso
aspocls lhal aro IiIoIy lo provido lho nosl appoaI lo lho cuslonors can bo onpha-
sizod. Candidalos aro, in a sonso, soIIing lhonsoIvos, bul lhoy aro aIso buying vhal
lho organizalion has lo offor. If, in lho Iallor sonso, lho Iabour narIol is a buyor's
narIol, lhon lho conpany lhal is soIIing ilsoIf lo candidalos nusl sludy lhoir noods in
roIalion lo vhal il can provido.
Tho ain of lho sludy nighl bo lo proparo a bollor inago of lho organizalion (lho
onpIoyor brand) for uso in advorlisononls, brochuros or inlorviovs. Or il nighl havo
lho noro conslruclivo ain of shoving vhoro lho organizalion noods lo inprovo as
an onpIoyor if il is lo allracl noro or bollor candidalos  lo rolain lhoso soIoclod.
Tho sludy couId naIo uso of an alliludo survoy lo oblain lho viovs of oxisling
onpIoyoos. Ono such survoy nounlod by lho vrilor in an onginooring conpany
vishing lo allracl scionco gradualos oslabIishod lhal lho nain concorn of lho gradu-
alos vas lhal lhoy vouId bo abIo lo uso and dovoIop lho InovIodgo lhoy had gainod
al univorsily. As a rosuIl, spociaI brochuros voro vrillon for oach na¡or discipIino
giving lochnicaI caso hislorios of lho sorl of vorI gradualos carriod oul. Thoso
avoidod lho purpIo passagos usod in sono brochuros (vhich lho survoy oslabIishod
voro dislinclIy off-pulling lo nosl sludonls) and provod lo bo a nosl usofuI rocruil-
nonl aid. Slrong noasuros voro aIso laIon lo onsuro lhal rosoarch nanagors nado
propor uso of lho gradualos lhoy rocruilod.
Sourcc· of candída|c·
Firsl considoralion shouId bo givon lo inlornaI candidalos, aIlhough sono organiza-
lions vilh povorfuI oquaI opporlunily poIicios (oflon IocaI aulhorilios) insisl lhal aII
inlornaI candidalos shouId appIy for vacancios on lho sano fooling as oxlornaI candi-
dalos. If lhoro aro no poopIo avaiIabIo vilhin lho organizalion lho nain sourcos of
candidalos, as doscribod boIov, aro advorlising, lho inlornol, and oulsourcing lo
consuIlanls or agoncios.
ADVLk1lSlNC
Advorlising is lho nosl obvious nolhod of allracling candidalos. NovorlhoIoss, lho
firsl quoslion lo asI is vholhor an advorlisononl is roaIIy ¡uslifiod. This noans
IooIing al lho aIlornalivo sourcos nonlionod abovo and confirning, proforabIy on lho
basis of oxporionco, lhal lhoy viII nol do. Considoralion shouId bo givon as lo
vholhor il nighl bo bollor lo uso an agoncy or a soIoclion consuIlanl. Whon naIing
lho choico, rofor lo lho lhroo criloria of cosl, spood and lho IiIoIihood of providing
good candidalos. Tho ob¡oclivos of an advorlisononl shouId bo lo:
ciircci ciicniicn ÷ il nusl conpolo for lho inlorosl of polonliaI candidalos againsl
olhor onpIoyors,
crccic cn! mcinicin inicrcsi ÷ il has lo connunicalo in an allraclivo and inlorosling
vay infornalion aboul lho ¡ob, lho conpany, lho lorns and condilions of onpIoy-
nonl and lho quaIificalions roquirod,
siimulcic cciicn ÷ lho nossago noods lo bo convoyod in a nannor lhal viII nol onIy
focus poopIo's oyos on lho advorlisononl bul aIso oncourago lhon lo road lo lho
ond, as voII as pronpl a sufficionl nunbor of ropIios fron good candidalos.
To achiovo lhoso ains, il is nocossary lo carry oul lho aclions sol oul boIov.
Anaí,·c |hc rcquírcmcn|, íí|cí, ·ourcc· and ¡ob fca|urc·
Firsl il is nocossary lo oslabIish hov nany ¡obs havo lo bo fiIIod and by vhon. Thon
lurn lo lho ¡ob doscriplion and porson spocificalion lo oblain infornalion on rospon-
sibiIilios, quaIificalions and oxporionco roquirod.
Tho noxl slop is lo considor vhoro suilabIo candidalos aro IiIoIy lo cono fron, lho
conpanios, ¡obs or oducalion oslabIishnonls lhoy aro in, and lho parls of lho counlry
vhoro lhoy can bo found.
FinaIIy, dofino lho lorns and condilions of lho ¡ob (pay and bonofils) and lhinI
aboul vhal aboul lho ¡ob or lho organizalion is IiIoIy lo allracl good candidalos so
lhal lho nosl can bo nado of lhoso faclors in lho advorlisononl. Considor aIso vhal
nighl pul lhon off, for oxanpIo lho Iocalion of lho ¡ob, in ordor lhal ob¡oclions can bo
anlicipalod. AnaIyso provious succossos or faiIuros lo oslabIish vhal doos or doos nol
vorI.
Dccídc vho doc· vha|
Whon pIanning a canpaign or rocruiling Ioy poopIo, lhoro is nuch lo bo said for
using an advorlising agoncy. An agoncy can provido oxporliso in producing
oyo-calching hoadIinos and vriling good copy. Il can doviso an allraclivo houso slyIo
and proparo Iayouls lhal naIo lho nosl of lho loxl, lho Iogo and any ´vhilo spaco'
round lho advorlisononl. Moroovor, il can adviso on vays of achioving visuaI inpacl
by lho uso of iIIuslralions and spociaI lypographicaI foaluros. FinaIIy, an agoncy can
adviso on nodia, hoIp in rosponso anaIysis and laIo up lho burdon of pIacing advor-
lisononls.
Tho foIIoving slops shouId bo laIon vhon choosing an advorlising agoncy:
ChocI ils oxporionco in handIing rocruilnonl advorlising.
Soo oxanpIos of ils vorI.
ChocI vilh cIionls on lho IovoI of sorvico providod.
Mool lho slaff vho viII vorI on lho advorlisononls.
ChocI lho foo slrucluro.
Discuss nolhods of vorIing.
Vrí|c |hc cop,
A rocruilnonl advorlisononl shouId slarl vilh a conpoIIing hoadIino and lhon
conlain infornalion on:
lho organizalion,
lho ¡ob,
lho porson roquirod ÷ quaIificalions, oxporionco olc,
lho pay and bonofils offorod,
lho Iocalion,
lho aclion lo bo laIon.
Tho hoadIino is aII-inporlanl. Tho sinpIosl and nosl obvious approach is lo
sol oul lho ¡ob lilIo in boId lypo. To gain allonlion, il is advisabIo lo quolo lho saIary
(if il is vorlh quoling) and lo pul ´pIus car' if a conpany car is providod. SaIarios
and cars aro na¡or allraclions and shouId bo slalod cIoarIy. AppIicanls aro
righlIy suspicious of cIausos such as ´saIary viII bo connonsuralo vilh ago and
oxporionco' or ´saIary nogoliabIo'. This usuaIIy noans oilhor lhal lho saIary is so
Iov lhal lho conpany is afraid lo rovoaI il, or lhal saIary poIicios aro so incohoronl
lhal lho conpany has no idoa vhal lo offor unliI sonoono loIIs lhon vhal ho or sho
vanls.
Tho nano of lho conpany shouId bo givon. Do nol uso box nunbors ÷ if you vanl
lo ronain anonynous, uso a consuIlanl. Add any soIIing poinls, such as grovlh or
divorsificalion, and any olhor aroas of inlorosl lo polonliaI candidalos, such as caroor
prospocls. Tho ossonliaI foaluros of lho ¡ob shouId bo convoyod by giving a briof
doscriplion of vhal lho ¡ob hoIdor viII do and, as far as spaco pornils, lho scopo and
scaIo of aclivilios. Croalo inlorosl in lho ¡ob bul do nol ovorsoII il.
Tho quaIificalions and oxporionco roquirod shouId bo slalod as facluaIIy as
possibIo. Thoro is no poinl in ovorslaling roquirononls and soIdon any poinl in spoc-
ifying oxaclIy hov nuch oxporionco is vanlod. This viII vary fron candidalo lo
candidalo, and lho olhor dolaiIs aboul lho ¡ob and lho ralo of pay shouId provido
lhon vilh onough infornalion aboul lho sorl of oxporionco roquirod. Bo carofuI aboul
incIuding a slring of porsonaI quaIilios such as drivo, dolorninalion and inilialivo.
Thoso havo no roaI noaning lo candidalos. Ihrasos such as ´provon lracI rocord' and
´succossfuI oxporionco' aro oquaIIy noaningIoss. No ono viII adnil lo nol having
oilhor of lhon.
Tho advorlisononl shouId ond vilh infornalion on hov lho candidalo shouId
appIy. ´Briof bul conprohonsivo dolaiIs' is a good phraso. Candidalos can bo asIod lo
vrilo, bul usofuI aIlornalivos aro lo asI lhon lo loIophono or lo cono aIong for an
infornaI chal al a suilabIo vonuo.
Rononbor lhal lho Sox Discrininalion Acl 1975 naIos il unIavfuI lo discrininalo
in an advorlisononl by favouring oilhor sox, lho onIy oxcoplions boing a fov ¡obs lhal
can bo dono onIy by ono sox. Advorlisononls nusl lhoroforo avoid soxisl ¡ob lilIos
such as ´saIosnan' or ´slovardoss'. Thoy nusl rofor lo a noulraI lilIo such as ´saIos
roprosonlalivo', or anpIify lho doscriplion lo covor bolh soxos by slaling ´slovard or
slovardoss'. Il is accoplod, hovovor, lhal corlain ¡ob lilIos aro unisox and lhoroforo
non-discrininalory. Thoso incIudo diroclor, nanagor, oxoculivo and officor. Il is bosl
lo avoid any roforonco lo lho sox of lho candidalo by using noulraI or unisox lilIos and
roforring onIy lo lho ćandidalo' or lho áppIicanl'. Olhorviso you nusl spocify ńan
or vonan' or ´ho or sho'.
Tho Raco RoIalions Acl 1976 has siniIar provisions, naIing unIavfuI an advorliso-
nonl lhal discrininalos againsl any parlicuIar raco. As Iong as raco is novor
nonlionod or ovon inpIiod in an advorlisononl, you shouId havo no probIon in
Iooping vilhin lho Iav.
Choo·c |,pc of advcr|í·cmcn|
Tho nain lypos of advorlisononl aro lho foIIoving:
CIassifiod/run-on, in vhich copy is run on, vilh no vhilo spaco in or around lho
advorlisononl and no paragraph spacing or indonlalion. Thoy aro choap bul suil-
abIo onIy for ¡unior or roulino ¡obs.
CIassifiod/soni-dispIay, in vhich lho hoadings can bo sol in capilaIs, paragraphs
can bo indonlod and vhilo spaco is aIIovod round lho advorlisononl. Thoy aro
fairIy choap, and soni-dispIay can bo nuch noro offoclivo lhan run-on advorliso-
nonls.
FuII dispIay, vhich aro bordorod and in vhich any lypofaco and iIIuslralions can
bo usod. Thoy can bo oxponsivo bul obviousIy naIo lho nosl inpacl for nanago-
riaI, lochnicaI and profossionaI ¡obs.
|ían |hc mcdía
An advorlising agoncy can adviso on lho choico of nodia (pross, radio, loIovision) and
ils cosl. 8riiis| Rcics cn! Dcic (BRAD) can bo consuIlod lo givo lho cosls of advorlising
in parlicuIar nodia.
Tho so-caIIod ´quaIily papors' aro bosl for nanagoriaI, profossionaI and lochnicaI
¡obs. Tho popuIar pross, ospociaIIy ovoning papors, can bo usod lo roach slaff such as
saIos roprosonlalivos and lochnicians. LocaI papors aro obviousIy bosl for rocruiling
offico slaff and nanuaI vorIors. IrofossionaI and lrado ¡ournaIs can roach your audi-
onco diroclIy, bul rosuIls can bo orralic and il nay bo advisabIo lo uso lhon lo suppIo-
nonl a nalionaI canpaign.
Avoid Salurdays and bo caulious aboul ropoaling advorlisononls in lho sano
nodiun. Dininishing rolurns can sol in rapidIy.
Lvaíua|c |hc rc·pon·c
Moasuro rosponso lo provido guidanco on lho roIalivo cosl-offoclivonoss of difforonl
nodia. Cosl por ropIy is lho bosl ralio.
Succc··fuí rccruí|mcn| advcr|í·cmcn|·
To sunnarizo, a panoI of croalivo oxporls (IRS, 2004f) nado lho foIIoving suggoslions
on vhal naIos a rocruilnonl advorlisononl succossfuI:
Do lho groundvorI ÷ considor and anaIyso lho rocruilor's polonliaI audionco and
lho porcoplions of oxisling onpIoyoos.
Iroparo a lhorough briof for lho advorlising agoncy, vhich oxprossos cIoarIy lho
onpIoyor's idoa of vhal lo food inlo lho croalivo procoss ÷ gol lho viovs of lho
onpIoying nanagor on vhal is lho slrong soIIing poinl for lho posl.
Havo á good idoa' bohind lho advorlisononl lhal conlains a proniso of a polon-
liaI bonofil for a ¡obsooIor ÷ lhoro has lo bo a uniquo soIIing proposilion.
Rononbor lhal soIf-soIoclion on lho parl of polonliaI candidalos is an inporlanl
ain lhal can bo achiovod lhrough carofuI prosonlalion of infornalion aboul lho
¡ob and lho succoss criloria.
Ensuro lhal lho coro infornalion aboul lho vacancy is incIudod ÷ a spocificalion of
lho quaIificalions, oxporionco, sIiIIs and allribulos roquirod, vho ¡obsooIors viII
bo vorIing for, vhoro lhoy viII bo vorIing, and hov nuch lhoy viII bo oarning.
Considor providing onough hard dala aboul lho roIo lo allracl inlorosl and lhon
dirocl lhon lo lho corporalo vobsilo vhoro noro infornalion can bo oblainod.
Iro¡ocl a roaIislic picluro of lho ¡ob, olhorviso lho rosuIl nighl bo rolonlion prob-
Ions.
DovoIop and connunicalo an onpIoyor brand lhal convoys a cIoar and posilivo
inago of lho organizalion lo allracl ¡ob sooIors and, incidonlaIIy bul inporlanlIy,
rolain oxisling nonbors of slaff. Do nol roIy on lho slronglh of lho consunor
brand in lho narIol pIaco ÷ il is nocossary lo dovoIop an onpIoyor brand lhal viII
connunicalo lho facl lhal lho organizalion offors a posilivo and rovarding
onpIoynonl oxporionco.
Considor lho onIino approach (¡ob boards, corporalo vobsilos) bul rononbor lhal
lhoro viII bo a Iol of polonliaI candidalos, ospociaIIy oIdor onos, vho nay nol uso
lho vob and can bosl bo allraclod by lradilionaI nodia. A nuIlinodia approach
nay lhoroforo bo nocossary.
Boar in nind lho considorabIo cosls of nodia advorlising (up lo £17,000 for a fairIy
nodosl advorlisononl in 1|c Gucr!icn).
SoIocl an agoncy lhal fils lho organizalion's cuIluro, goaIs and vaIuos.
TaIo caro lo acl in accordanco vilh oquaI opporlunilios and anli-discrininalion
IogisIalion (sox, raco, roIigion, narilaI slalus, disabiIily and ago). Tho EquaI
Opporlunilios Connission (1994) roconnonds lhal: Éach advorlisononl noods
lo bo considorod as a vhoIo in lorns of lho ¡ob advorlisod, lho vords usod in lho
¡ob doscriplion and lho nossago lhal lho advorlisor is allonpling lo porlray
lhrough lho addilion of an iIIuslralion.'
Monilor lho offoclivonoss of advorlisononls lo oslabIish vhich approach pro-
ducod lho bosl rosuIls.
L-kLCkLl1MLN1
E-rocruilnonl or onIino rocruilnonl usos vob-basod looIs such as a firn's pubIic
inlornol silo or ils ovn inlranol lo rocruil slaff. Tho procossos of o-rocruilnonl consisl
of allracling, scrooning and lracIing appIicanls, soIocling, and offoring ¡obs or
ro¡ocling candidalos. Il has boon oslinalod by CappoIIi (2001) lhal il cosls onIy aboul
ono-lvonliolh as nuch lo hiro sonoono onIino, if lhal is lho onIy nolhod usod, as il
doos lo hiro lho sano porson lhrough lradilionaI nolhods.
Advan|agc·
E-rocruilnonl nol onIy savos cosls bul aIso onabIos organizalions lo provido nuch
noro infornalion lo appIicanls, vhich can oasiIy bo updalod. Thoro is noro scopo lo
prosonl lho ónpIoynonl proposilion' in lorns lhal incroaso lho allraclivonoss of lho
conpany as a pIaco in vhich lo vorI.
Tho oplions avaiIabIo for onIino soIoclion incIudo soIf-assossnonls, onIino
scrooning and psychonolric losling onIino. OnIino losls can bo slandardizod and
scorod oasiIy.
U·agc
An IRS (2004a) survoy oslabIishod lhal 84 por conl of onpIoyors nado sono uso of
oIoclronic rocruilnonl. Il vas nolod by IRS lhal lho inlornol is nov a fundanonlaI
parl of lho rocruilnonl procoss. Al lho vory Ioasl, onpIoyors aro uliIizing lho inlornol
and o-naiI syslons lo connunicalo vilh candidalos and supporl lhoir oxisling hiring
praclicos. Many organizalions aIso uso lhoir corporalo vobsilo.
Tho IRS survoy found lhal organizalions havo nado a slralogic docision lo cul lho
cosls of lhoir rocruilnonl procossos and gol bollor vaIuo for nonoy, and havo lurnod
lo lho inlornol lo achiovo lhis. Hovovor, a significanl proporlion of usors sliII on-
counlor probIons vilh lho uso of o-rocruilnonl, gonoraIIy rocoiving loo nany unsuil-
abIo candidalos. Sono organizalions addross lhis lhrough lho uso of soIf-soIoclion
looIs such as a soIf-soIoclion quoslionnairo lo discourago unsuilabIo appIicanls. IRS
connonls lhal lhis approach noans lhal: ´SublIy and sonsilivoIy, organizalions can
Iol candidalos Inov lhal lhis nay nol bo lho roIo for lhon, vhiIo nainlaining lhoir
goodviII and soIf-osloon.'
Sono organizalions uso ´¡ob boards' lo advorliso vacancios (a ¡ob board is an
inlornol silo lhal hosls rocruilnonl advorlisononls fron a rango of onpIoyors), oflon
as a porlaI lo lhoir corporalo vobsilo. Mosl conpanios aro proparod lo connunicalo
vilh candidalos by o-naiI aboul lhoir appIicalions.
Tho IRS survoy oslabIishod lhal aInosl aII privalo soclor firns using o-rocruiling
accoplod CVs. Organizalions in lho pubIic soclor voro noro IiIoIy lo dospalch appIi-
calion forns by o-naiI.
Tho NalionaI OnIino Rocruilnonl Survoy (2003) found lhal lho avorago onIino ¡ob
sooIor is 33 yoars oId vilh noro lhan 11 yoars' vorI oxporionco, ho or sho has boon
vilh lho sano onpIoyor for noro lhan four yoars, and has visilod noro lhan fivo
onIino silos in a quosl for nov onpIoynonl.
kocruìtmont und soíoctìon 42l
An IRS (2004a) survoy of rocruilnonl nolhods for nanagors oslabIishod lhal lho
lop lhroo nolhods of rocruilnonl, basod on lho quaIily of lho appIicalions rocoivod,
voro lho uso of connorciaI onpIoynonl agoncios (32 por conl), advorlising in
spociaIisl ¡ournaIs (23 por conl), and nalionaI novspapor advorlising (22 por conl).
OnIy 3 por conl ralod o-rocruiling as lho bosl nolhod, aIlhough 56 por conl usod il.
Tho favourilo nolhod of rocruilnonl ronains inlorvioving (53 por conl) foIIovod by
assossnonl conlros (23 por conl).
T,pícaí approach
AlypicaI approach is lo advorliso lho vacancy on an onIino rocruilnonl silo. This viII
provido ¡ob dolaiIs and infornalion aboul lho conpany logolhor vilh an onIino appIi-
calion forn. A ¡ob sooIor rolurns lho conpIolod appIicalion oIoclronicaIIy and
conpulor soflvaro roviovs lho appIicalion forns for an iniliaI nalch vilh lho organ-
isalion's roquirononls. For oxanpIo, a ¡ob offor for a businoss dovoIopnonl nanagor
in a conpulor firn nighl spocify lho foIIoving conpoloncios as a basis for nalching
on lho silo againsl a CV, or by lho onpIoyor againsl dolaiIs providod by lho candidalo
for oach of lho conpolonco aroas:
Mininun 10 yoars' businoss and saIos oxporionco in lho conpulor, nolvorIing or
connunicalions induslry.
Good oxposuro lo lho nolvorI consuIling vorId, vilhin UK.
FornaI saIos lraining vory dosirabIo.
SoIf-nolivalod lo succood in posilion.
AbiIily lo Ioad and nanago snaII group of saIos porsonnoI.
Slrong organizalionaI and priorilizalion sIiIIs.
AbiIily lo drivo opporlunilios lo cIosuro.
Sí|c·
Tho nain lypos of onIino rocruilnonl silos aro:
jc| siics ÷ lhoso aro oporalod by spociaIizod firns and can conlain ovor 100,000
vacancios vilh 6 or 7 niIIion ´hils' a nonlh. Conpanios pay lo havo lhoir ¡obs
Iislod on lho silos, vhich aro nol usuaIIy IinIod lo agoncios.
Agcncq siics ÷ aro run by oslabIishod rocruilnonl agoncios. Candidalos rogislor
onIino bul nay bo oxpoclod lo discuss lhoir dolaiIs in porson boforo lhoir dolaiIs
aro forvardod lo a prospoclivo onpIoyor.
Mc!ic siics ÷ vhich nay sinpIy conlain a copy of an advorlisononl appoaring in
lho pross, bul nay incIudo an oxlornaI doscriplion of lho vacancy and lho con-
pany and provido a IinI lo lho conpany's vobsilo.
CL1SCLkClNC kLCkLl1MLN1
Thoro is nuch lo bo said for oulsourcing rocruilnonl ÷ golling agoncios or consuIlanls
lo carry oul al Ioasl lho proIininary vorI of subnilling suilabIo candidalos or
draving up a shorl Iisl. Il cosls nonoy, bul il can savo a Iol of lino and lroubIo.
U·íng agcncíc·
Mosl privalo agoncios doaI vilh socrolariaI and offico slaff. Thoy aro usuaIIy quicI
and offoclivo bul quilo oxponsivo. Agoncios can chargo a foo of 15 por conl or noro of
lho firsl yoar's saIary for finding sonoono. Il can bo choapor lo advorliso, ospociaIIy
vhon lho conpany is in a buyor's narIol. Shop around lo find lho agoncy lhal suils
lho organizalion's noods al a roasonabIo cosl.
Agoncios shouId bo briofod carofuIIy on vhal is vanlod. Thoy produco unsuilabIo
candidalos fron lino lo lino bul lho risI is roducod if lhoy aro cIoar aboul your
roquirononls.
U·íng rccruí|mcn| con·uí|an|·
Rocruilnonl consuIlanls gonoraIIy advorliso, inlorviov and produco a shorl Iisl. Thoy
provido oxporliso and roduco vorIIoad. Tho organizalion can bo anonynous if il
vishos. Mosl rocruilnonl consuIlanls chargo a foo basod on a porconlago of lho basic
saIary for lho ¡ob, usuaIIy ranging fron 15 lo 20 por conl.
Tho foIIoving slops shouId bo laIon vhon choosing a rocruilnonl consuIlanl:
ChocI ropulalion vilh olhor usors.
LooI al lho advorlisononls of lho various firns in ordor lo oblain an idoa of lho
quaIily of a consuIlancy and lho lypo and IovoI of ¡obs vilh vhich il doaIs.
ChocI on spociaI oxporliso ÷ lho Iargo accounlancy firns, for oxanpIo, aro obvi-
ousIy sIiIIod in rocruiling accounlanls.
Mool lho consuIlanl vho viII vorI on lho assignnonl lo assoss his or hor quaIily.
Conparo foos, aIlhough lho difforoncos aro IiIoIy lo bo snaII, and lho olhor
considoralions aro usuaIIy noro inporlanl.
Whon using rocruilnonl consuIlanls il is nocossary lo:
agroo lorns of roforonco,
briof lhon on lho organizalion, vhoro lho ¡ob fils in, vhy lho appoinlnonl is lo bo
nado, lorns and condilions and any spociaI roquirononls,
kocruìtmont und soíoctìon 423
givo lhon ovory assislanco in dofining lho ¡ob and lho porson spocificalion,
incIuding any spociaI donands lhal viII bo nado on lho succossfuI candidalo in
lho shapo of vhal ho or sho viII bo oxpoclod lo achiovo ÷ lhoy viII do nuch bollor
if lhoy havo conprohonsivo InovIodgo of vhal is roquirod and vhal lypo of
porson is nosl IiIoIy lo fil voII inlo lho organizalion,
chocI carofuIIy lho proposod progranno and lho drafl loxl of lho advorlisononl,
cIarify lho arrangononls for inlorvioving and shorl-Iisling,
cIarify lho basis upon vhich foos and oxponsos viII bo chargod,
onsuro lhal arrangononls aro nado lo doaI diroclIy vilh lho consuIlanl vho viII
handIo lho assignnonl.
U·íng cxccu|ívc ·carch con·uí|an|·
Uso an oxoculivo soarch consuIlanl, or ´hoad-hunlor', for sonior ¡obs vhoro lhoro aro
onIy a Iinilod nunbor of suilabIo poopIo and a dirocl Ioad lo lhon is vanlod. Thoy
aro nol choap. Hoad-hunlors chargo a foo of 30 lo 50 por conl or so of lho firsl yoar's
saIary, bul lhoy can bo quilo cosl-offoclivo.
Exoculivo soarch consuIlanls firsl approach lhoir ovn conlacls in lho induslry or
profossion concornod. Tho good onos havo an oxlonsivo rango of conlacls and lhoir
ovn dala banI. Thoy viII aIso havo rosoarchors vho viII idonlify suilabIo poopIo vho
nay fil lho spocificalion or can provido a Ioad lo sonoono oIso vho nay bo suilabIo.
Tho noro nunorous lho conlacls, lho bollor lho oxoculivo soarch consuIlanl.
Whon a nunbor of polonliaIIy suilabIo and inloroslod poopIo havo boon assonbIod,
a fairIy roIaxod and infornaI nooling laIos pIaco and lho consuIlanl forvards a shorl
Iisl vilh fuII roporls on candidalos lo lho cIionl.
Thoro aro sono good and sono nol-so-good oxoculivo soarch consuIlanls. Do nol
uso ono unIoss a roIiabIo roconnondalion is oblainod.
LDLCA1lCNAL AND 1kAlNlNC LS1AßLlSHMLN1S
Many ¡obs can, of courso, bo fiIIod by schooI Ioavors. For sono organizalions lho
na¡or sourco of rocruils for lraining schonos viII bo univorsilios and lraining oslab-
Iishnonls as voII as schooIs. Gradualo rocruilnonl is a na¡or annuaI oxorciso for
sono conpanios, vhich go lo groal offorls lo produco gIossy brochuros, visil can-
pusos on lho ńiII run' and uso oIaboralo sifling and soIoclion procoduros lo vol
candidalos, incIuding ´biodala' and assossnonl conlros, as doscribod Ialor in lhis
chaplor, and lho inlornol.
AllLlCA1lCN lCkMS
AppIicalion forns sol oul lho infornalion on a candidalo in a slandardizod fornal.
Thoy provido a slruclurod basis for draving up shorl Iisls, lho inlorviov ilsoIf and for
lho subsoquonl aclions in offoring an appoinlnonl and in solling up porsonnoI
rocords. An oxanpIo of a forn is givon in Figuro 27.2.
Tho foIIoving suggoslions havo boon nado by Iioro and Baun (2005) on hov lo
uso appIicalion forns noro offoclivoIy:
Docido vhal lho criloria for soIoclion aro and hov lhoso viII bo assossod by uso of
lho appIicalion forn.
Koop quoslions cIoar, roIovanl and non-discrininalory.
AsI for onIy lho baro nininun of porsonaI dolaiIs.
Widon your pooI of appIicanls by offoring difforonl oplions and guidanco for
conpIoling and vioving appIicalion forns.
DovoIop a consislonl and offoclivo sifling procoss.
Uso a loan of siflors fron a rango of bacIgrounds lo roprosonl lho divorsily of
your candidalos.
Roviov hov offoclivo you havo boon al lho ond of lho procoss and onco lho
succossfuI candidalos aro in lhoir roIos.
Sll1lNC AllLlCA1lCNS
Whon lho vacancy or vacancios havo boon advorlisod and a fair nunbor of ropIios
rocoivod, lho lypicaI soquonco of slops roquirod lo procoss and sifl appIicalions is as
foIIovs:
1. Lisl lho appIicalions on a conlroI shool, solling oul nano, dalo lho appIicalion
vas rocoivod and lho aclions laIon (ro¡ocl, hoId, inlorviov, shorl Iisl, offor).
2. Sond a slandard acInovIodgononl Iollor lo oach appIicanl unIoss an inslanl doci-
sion can bo nado lo inlorviov or ro¡ocl.
3. Tho appIicanl nay bo asIod lo conpIolo and rolurn an appIicalion forn lo
suppIononl a Iollor or CV vhich nay bo on papor or in oIoclronic fornal. This
onsuros lhal aII appIicanls aro considorod on lho sano basis ÷ il can bo vory diffi-
cuIl lo pIough lhrough a piIo of Iollors, oflon iII-vrillon and badIy organizod.
Evon CVs nay bo difficuIl lo sifl, aIlhough lhoir quaIily is IiIoIy lo bo highor if
lho appIicanl has boon rocoiving advico fron an óulpIacononl' consuIlanl, io ono
vho spociaIizos in finding poopIo ¡obs. Hovovor, lo savo lino, lroubIo, oxponso
and irrilalion, nany rocruilors profor lo naIo a docision on lho iniliaI Iollor pIus
APPLICATION FORM
Surname: First name:
Address:
Tel: (home) Tel: (work) e-mail (personal)
Position applied for:
Education
Dates Name of Main subjects taken Qualifications
From To
secondary
school, college or
university
Specialized training received
Other qualifications and skills (including languages, keyboard skills, current driving licence etc
Employment history
(give details of all positions held since completing full-time education, start with your present or most recent
position and work back)
Dates Name of Position and Starting Reasons
From To
employer, address summary of main and leaving rate for leaving or
and nature of duties of pay wanting to leave
business including
any service in the
armed forces
FIgurc 27.2 ExanpIo of an appIicalion forn (conprossod)
CV, vhoro il is quilo cIoar lhal an appIicanl nools or doos nol nool lho spocifica-
lion, ralhor lhan asI for a forn. Il is gonoraIIy advisabIo for noro sonior ¡obs lo
asI for a CV.
4. Conparo lho appIicalions vilh lho Ioy criloria in lho ¡ob spocificalion and sorl
lhon iniliaIIy inlo lhroo calogorios: possibIo, narginaI and unsuilabIo.
5. Scrulinizo lho possibIos again lo drav up a shorl Iisl for inlorviov. This
scruliny couId bo carriod oul by lho porsonnoI or onpIoynonl spociaIisl and,
proforabIy, lho nanagor. Tho nunbors on lho shorl Iisl shouId idoaIIy bo bolvoon
four and oighl. Fovor lhan four Ioavos roIalivoIy IillIo choico (aIlhough such a
Iinilalion nay bo forcod on you if an insufficionl nunbor of good appIicalions
havo boon rocoivod). Moro lhan oighl viII noan lhal loo nuch lino is sponl on
inlorvioving and lhoro is a dangor of dininishing rolurns solling in.
6. Drav up an inlorvioving progranno. Tho lino you shouId aIIov for lho inlor-
viov viII vary according lo lho conpIoxily of lho ¡ob. For a fairIy roulino ¡ob, 30
ninulos or so shouId suffico. For a noro sonior ¡ob, 60 ninulos or noro is
roquirod. Il is bosl nol lo schoduIo loo nany inlorviovs in a day ÷ if you lry lo
carry oul noro lhan fivo or six oxacling inlorviovs you viII quicIIy run oul of
sloan and do noilhor lho inlorviovoo nor your conpany any ¡uslico. Il is advis-
abIo lo Ioavo aboul 15 ninulos bolvoon inlorviovs lo vrilo up nolos and proparo
for lho noxl ono.
7. Invilo lho candidalos lo inlorviov, using a slandard Iollor vhoro Iargo nunbors
aro invoIvod. Al lhis slago, candidalos shouId bo asIod lo conpIolo an
Add any comments you wish to make to support your application
I confirm that the information given on this application form is correct
Signature of
applicant ....................................................................................... Date ...............................................
FIgurc 27.2 
appIicalion forn, if lhoy havo nol aIroady dono so. Thoro is nuch lo bo said al
lhis slago for sonding candidalos sono dolaiIs of lho organizalion and lho ¡ob so
lhal you do nol havo lo spond loo nuch lino going lhrough lhis infornalion al
lho inlorviov.
8. Roviov lho ronaining possibIos and narginaIs and docido if any aro lo bo hoId in
rosorvo. Sond rosorvos a slandard ´hoIding' Iollor and sond lho olhors a slandard
ro¡oclion Iollor. Tho Iallor shouId lhanI candidalos for lho inlorosl shovn and
inforn lhon briofIy, bul nol loo brusquoIy, lhal lhoy havo nol boon succossfuI. A
lypicaI ro¡ocl Iollor nighl road as foIIovs:
Sinco vriling lo you on. vo havo givon carofuI considoralion lo your appIicalion for
lho abovo posilion. I rogrol lo inforn you, hovovor, lhal vo havo docidod nol lo asI
you lo allond for an inlorviov. Wo shouId IiIo lo lhanI you for lho inlorosl you havo
shovn.
Tho procoss doscribod abovo shouId bo conlroIIod by an appIicanl lracIing syslon
(ATS) as parl of a conpulorizod rocruilnonl conlroI procoss.

AhighIy slruclurod nolhod of sifling appIicalions is providod by lho uso of biodala.
Thoso aro ilons of biographicaI dala vhich aro crilorion basod (io lhoy roIalo lo oslab-
Iishod criloria in such lorns as quaIificalions and oxporionco vhich indicalo lhal indi-
viduaIs aro IiIoIy lo bo suilabIo). Thoso aro ob¡oclivoIy scorod and, by noasurononls
of pasl achiovononls, prodicl fuluro bohaviour.
Tho ilons of biodala consisl of donographic dolaiIs (sox, ago, faniIy circun-
slancos), oducalion and profossionaI quaIificalions, provious onpIoynonl hislory
and vorI oxporionco, posilions of rosponsibiIily oulsido vorI, Ioisuro inlorosls and
caroor/¡ob nolivalion. Thoso ilons aro voighlod according lo lhoir roIalivo inpor-
lanco as prodiclors, and a rango of scoros is aIIocalod lo oach ono. Tho biodala quos-
lionnairo (ossonliaIIy a dolaiIod appIicalion forn) oblains infornalion on oach ilon,
vhich is lhon scorod.
Biodala aro nosl usofuI vhon a Iargo nunbor of appIicanls aro rocoivod for a
Iinilod nunbor of posls. Cul-off scoros can lhon bo dolorninod, basod on provious
oxporionco. Thoso scoros vouId indicalo vho shouId bo accoplod for lho noxl slago of
lho soIoclion procoss and vho shouId bo ro¡oclod, bul lhoy vouId aIIov for sono
possibIo candidalos lo bo hoId unliI lho finaI cul-off scoro can bo fixod aflor lho firsl
balch of appIicanls havo boon scroonod.
Biodala criloria and prodiclors aro soIoclod by ¡ob and funclionaI anaIysis, vhich
producos a Iisl of conpoloncos. Tho vaIidily of lhoso ilons as prodiclors and lho
voighling lo bo givon lo lhon aro oslabIishod by anaIysing lho biodala of oxisling
onpIoyoos vho aro groupod inlo high or Iov porfornors. Woighls aro aIIocalod lo
ilons according lo lho discrininaling povor of lho rosponso.
Biodala quoslionnairos and scoring Ioys aro usuaIIy dovoIopod for spocific ¡obs in
an organizalion. Thoir vaIidily conparos roasonabIy voII vilh olhor soIoclion inslru-
nonls, bul lhoy nood lo bo dovoIopod and vaIidalod vilh groal caro and lhoy aro onIy
appIicabIo vhon Iargo groups of appIicanls havo lo bo scroonod.
Lícc|roníc CV·
EIoclronic CVs aro associalod vilh inlornol rocruiling. Conpulors can road CVs by
noans of high-grado, high-spood scannors using oplicaI characlor rocognilion (OCR)
soflvaro. CVs aro scannod and convorlod inlo basic loxl fornal. Tho syslon's arlifi-
ciaI inloIIigonco roads lho loxl and oxlracls Ioy dala such as porsonaI dolaiIs, sIiIIs,
oducalionaI quaIificalions, provious onpIoyors and ¡obs, and roIovanl dalos. Soarch
criloria aro croalod Iisling nandalory and proforrod roquirononls such as quaIifica-
lions, conpanios in vhich appIicanls havo vorIod and ¡obs hoId. Tho syslon carrios
oul an anaIysis of lho CVs againsl lhoso criloria, Iisls lho candidalos lhal salisfy aII lho
nandalory roquirononls and ranIs lhon by lho nunbor of lhoso roquirononls oach
ono nools. Tho rocruilor can lhon uso lhis ranIing as a shorl Iisl or can lighlon lho
soarch criloria lo produco a shorlor Iisl. EssonliaIIy, lho conpulor is IooIing for lho
sano Ioy vords as hunan rocruilors, bul il can carry oul lhis lasI noro syslonali-
caIIy and faslor, cross-roforoncing sIiIIs. Any rocruilor Inovs lho probIon of doaIing
vilh a Iargo nunbor of appIicalions and lrying, oflon againsl lho odds, lo oxlracl a
sonsibIo shorl Iisl.
SLLLC1lCN ML1HCDS
Tho nain soIoclion nolhods aro lho inlorviov, assossnonl conlros and losls. Tho
various lypos of inlorviovs and assossnonl conlros aro doscribod in lho noxl
lvo soclions of lhis chaplor. Inlorvioving lochniquos aro doaIl vilh soparaloIy in
Chaplor 28. Tosls aro doscribod in Chaplor 29. Anolhor and nuch noro dubious
nolhod, usod by a fov firns in lho UK and noro oxlonsivoIy in lho rosl of Europo, is
graphoIogy.
1YlLS Cl lN1LkVlL\S
índívíduaí ín|crvícv·
Tho individuaI inlorviov is lho nosl faniIiar nolhod of soIoclion. Il invoIvos
faco-lo-faco discussion and providos lho bosl opporlunily for lho oslabIishnonl of
cIoso conlacl ÷ rapporl ÷ bolvoon lho inlorviovor and lho candidalo. If onIy ono inlor-
viovor is usod, lhoro is noro scopo for a biasod or suporficiaI docision, and lhis is ono
roason for using a socond inlorviovor or an inlorvioving panoI.
ín|crvícvíng pancí·
Tvo or noro poopIo galhorod logolhor lo inlorviov ono candidalo nay bo doscribod
as an inlorvioving panoI. Tho nosl lypicaI silualion is lhal in vhich a porsonnoI
nanagor and Iino nanagors soo lho candidalo al lho sano lino. This has lho advan-
lago of onabIing infornalion lo bo sharod and roducing ovorIaps. Tho inlorviovors
can discuss lhoir ¡oinl inprossions of lho candidalo's bohaviour al lho inlorviov and
nodify or onIargo any suporficiaI ¡udgononls.
Scícc|íon board·
SoIoclion boards aro noro fornaI and, usuaIIy, Iargor inlorvioving panoIs, convonod
by an officiaI body bocauso lhoro aro a nunbor of parlios inloroslod in lho soIoclion
docision. Thoir onIy advanlago is lhal lhoy onabIo a nunbor of difforonl poopIo lo
havo a IooI al lho appIicanls and conparo nolos on lho spol. Tho disadvanlagos aro
lhal lho quoslions lond lo bo unpIannod and doIivorod al randon, lho pro¡udicos of a
doninaling nonbor of lho board can ovorvhoIn lho ¡udgononls of lho olhor
nonbors, and lho candidalos aro unabIo lo do ¡uslico lo lhonsoIvos bocauso lhoy aro
soIdon aIIovod lo oxpand. SoIoclion boards lond lo favour lho confidonl and arlicu-
Ialo candidalo, bul in doing so lhoy nay niss lho undorIying voaInossos of a supor-
ficiaIIy inprossivo individuaI. Thoy can aIso undoroslinalo lho quaIilios of lhoso vho
happon lo bo Ioss offoclivo in fronl of a fornidabIo board, aIlhough lhoy vouId bo
fuIIy conpolonl in lho Ioss fornaI or Ioss arlificiaI silualions lhal vouId faco lhon in
lho ¡ob.
ASSLSSMLN1 CLN1kLS
A noro conprohonsivo approach lo soIoclion is providod by lho uso of assossnonl
conlros. Thoso incorporalo a rango of assossnonl lochniquos and lypicaIIy havo lho
foIIoving foaluros:
Tho focus of lho conlro is on bohaviour.
Exorcisos aro usod lo capluro and sinuIalo lho Ioy dinonsions of lho ¡ob. Thoso
incIudo ono-lo-ono roIo-pIays and group oxorcisos. Il is assunod lhal porfornanco
in lhoso sinuIalions prodicls bohaviour on lho ¡ob.
Inlorviovs and losls viII bo usod in addilion lo group oxorcisos.
Iorfornanco is noasurod in sovoraI dinonsions in lorns of lho conpoloncios
roquirod lo achiovo lho largol IovoI of porfornanco in a parlicuIar ¡ob or al a
parlicuIar IovoI in lho organizalion.
SovoraI candidalos or parlicipanls aro assossod logolhor lo aIIov inloraclion and
lo naIo lho oxporionco noro opon and parlicipalivo.
SovoraI assossors or obsorvors aro usod in ordor lo incroaso lho ob¡oclivily of
assossnonls. InvoIving sonior nanagors is dosirabIo lo onsuro lhal lhoy óvn' lho
procoss. Assossors nusl bo carofuIIy lrainod.
Assossnonl conlros provido good opporlunilios for indicaling lho oxlonl lo vhich
candidalos nalch lho cuIluro of lho organizalion. This viII bo oslabIishod by obsorva-
lion of lhoir bohaviour in difforonl bul lypicaI silualions, and by lho rango of lho losls
and slruclurod inlorviovs lhal aro parl of lho procoodings. Assossnonl conlros aIso
givo candidalos a bollor fooI for lho organizalion and ils vaIuos so lhal lhoy can docido
for lhonsoIvos vholhor or nol lhoy aro IiIoIy lo fil.
A voII-conduclod assossnonl conlro can achiovo a bollor forocasl of fuluro porfor-
nanco and progross lhan ¡udgononls nado by Iino or ovon porsonnoI nanagors in
lho nornaI, unsIiIIod vay.
CkAlHCLCCY
GraphoIogy can bo dofinod as lho sludy of lho sociaI slrucluro of a hunan boing
lhrough his or hor vriling. Ils uso in soIoclion is lo drav concIusions aboul a
candidalo's porsonaIily fron his or hor handvriling as a basis for naIing prodiclions
aboul fuluro porfornanco in a roIo. Tho uso of graphoIogy as a soIoclion aid is
oxlonsivo on lho Conlinonl bul roIalivoIy unconnon in lho UK ÷ FovIor (1991a)
quolos rosoarch findings lhal indicalo lhal onIy bolvoon 0.5 and 1.0 por conl of
onpIoyors uso il in lho UK. This vory snaII proporlion nay bo allribulod lo lho
suspicion lho groal na¡orily of rocruilors havo lhal graphoIogy is in sono vay
spurious and using il as a prodiclor viII bo a vaslo of lino and nonoy. In an oxlonsivo
roviov of lho rosoarch Iiloraluro, FovIor (1991a) oslabIishod lhal sono sludios had
indicalod a prodiclivo vaIidily coofficionl in lho rango of 0.1 lo 0.3, aIlhough zoro
rosuIls havo aIso boon oblainod. Thoso aro Iov figuros, vhich achiovo onIy a poor
IovoI of vaIidily. FovIor's concIusion vas lhal cIuos aboul porsonaIily characlorislics
kocruìtmont und soíoctìon 43l
nay bo doducod by sIiIIod graphoIogisls bul lhal lho uso of graphoIogy as a singIo or
slandard prodiclor cannol bo roconnondod. Ho aIso suspocls lhal, for sono poopIo,
lho roaI allraclion of graphoIogy is lhal il can bo usod vilhoul lho sub¡ocl's InovI-
odgo.
CHClCL Cl SLLLC1lCN ML1HCDS
Thoro is a choico bolvoon lho nain soIoclion nolhods. Whal CooI (1993) rofors lo as
lho cIassic lrio consisls of appIicalion forns, inlorviovs and roforoncos. Thoso can bo
suppIononlod or ropIacod by biodala, assossnonl conlros and, as doscribod in
Chaplor 29, psychoIogicaI losls. Il has boon dononslralod again and again lhal
inlorviovs aro an inofficionl nolhod of prodicling succoss in a ¡ob. Snarl (1983), for
oxanpIo, cIains lhal onIy 94 oul of 1,000 inlorviovoos rospond honoslIy in convon-
lionaI inlorviovs. VaIidily sludios such as lhoso quolod by TayIor (1998), as iIIuslralod
in Figuro 27.3, produco oquaIIy dubious figuros for convonlionaI inlorviovs and indi-
calo lhal assossnonl conlros, psychonolric losls, biodala and slruclurod inlorviovs
aro noro accuralo nolhods of soIoclion. For good and nol so good roasons, organiza-
lions viII rolain inlorviovs as lho nain nolhod of soIoclion vhoro assossnonl conlros
aro inapproprialo. Bul lhoro is a vory povorfuI caso for slrucluring lho inlorviov and
a slrong caso for suppIononling il vilh losls. Tho noro ovidonco lhal can bo producod
lo hoIp in naIing cruciaI soIoclion docisions, lho bollor.
lMlkCVlNC 1HL LllLC1lVLNLSS Cl kLCkLl1MLN1
AND SLLLC1lCN
An HRM approach can bo adoplod lo rocruilnonl, vhich invoIvos laIing nuch noro
caro in nalching poopIo lo lho roquirononls of lho organizalion as a vhoIo as voII as
lo lho parlicuIar noods of lho ¡ob. And lhoso roquirononls viII incIudo connilnonl
and abiIily lo vorI offoclivoIy as a nonbor of a loan.
ExanpIos of lhis approach in }apanoso conpanios in lho UK incIudo lho oslabIish-
nonl of lho Nissan pIanl in Washinglon and Kunalsu in NovcaslIo. As doscribod by
TovnIoy (1989), bolh foIIovod a conscious rocruilnonl poIicy vilh rigorous soIoclion
procoduros. Apliludo losls, porsonaIily quoslionnairos and group oxorcisos voro usod
and lho iniliaI pro-scrooning dovico vas a dolaiIod ´biodala'-lypo quoslionnairo,
vhich onabIod lho quaIificalions and vorI hislory of candidalos lo bo assossod and
ralod syslonalicaIIy. Subsoquonl losling of lhoso vho succossfuIIy conpIolod lho firsl
slago vas dosignod lo assoss individuaI alliludos as voII as apliludo and abiIily. As
1.0 Perfect prediction
0.9
0.8
0.7
Assessment centres (promotion)
0.6
Work sample tests
Ability tests
0.5
Assessment centres (performance)
Personality tests (combination)
0.4
Bio-data
Structured interviews
0.3
0.2
Typical interviews
References
0.1
0
Graphology, astrology, chance prediction
-0.1
FIgurc 27.3 Accuracy of sono nolhods of soIoclion
(Roproducod vilh pornission fron Slophon TayIor (1998) |mplcqcc Rcscurcing, Inslilulo of
IorsonnoI and DovoIopnonl)
WicIons (1987) said of lho slops laIon al Nissan lo achiovo connilnonl and loan
vorIing: Íl is sonolhing vhich dovoIops bocauso nanagononl gonuinoIy boIiovos
in il and acls accordingIy ÷ and rocruils or pronolos poopIo vho havo lho sano
boIiof.'
Tho nood for a noro sophislicalod approach lo rocruilnonl aIong lhoso Iinos is
characlorislic of HRM. Tho firsl roquirononl is lo laIo groal caro in spocifying lho
conpoloncos and bohaviouraI characlorislics roquirod of onpIoyoos. Tho socond is lo
uso a vidor rango of nolhods lo idonlify candidalos vho nalch lho spocificalion. As
nolod oarIior in lhis chaplor, lho prodiclivo quaIily of lho lradilionaI inlorviov is vory
Iinilod. Al lho vory Ioasl, slruclurod inlorvioving lochniquos shouId bo adoplod as
doscribod in Chaplor 28. Whorovor possibIo, psychoIogicaI losls shouId bo usod lo
oxlond lho dala oblainod fron lho inlorviov. WoII-pIannod and adninislorod assoss-
nonl conlros aro lho bosl prodiclors of succoss in a ¡ob, bul lhoy aro onIy praclicaI for
a Iinilod nunbor of noro conpIox or donanding ¡obs or for soIocling gradualos and
onlranls lo lraining progrannos.
kLlLkLNCLS, ÇLALlllCA1lCNS AND CllLkS
Aflor lho inlorvioving and losling procoduro has boon conpIolod, a provisionaI doci-
sion lo naIo an offor by loIophono or in vriling can bo nado. This is nornaIIy
´sub¡ocl lo salisfaclory roforoncos' and lho candidalo shouId, of courso, bo loId lhal
lhoso viII bo laIon up. If lhoro is noro lhan ono oIigibIo candidalo for a ¡ob il nay bo
advisabIo lo hoId ono or lvo poopIo in rosorvo. AppIicanls oflon vilhdrav, ospociaIIy
lhoso vhoso onIy purposo in appIying for lho ¡ob vas lo carry oul a ´losl narIoling'
oporalion, or lo oblain a Iovor vilh vhich lo porsuado lhoir prosonl onpIoyors lo
vaIuo lhon noro highIy.
Rcfcrcncc· - purpo·c and mc|hod
Tho purposo of a roforonco is lo oblain in confidonco facluaI infornalion aboul
a prospoclivo onpIoyoo and opinions aboul his or hor characlor and suilabiIily
for a ¡ob.
Tho facluaI infornalion is slraighlforvard and ossonliaI. Il is sinpIy nocossary lo
confirn lho naluro of lho provious ¡ob, lho poriod of lino in onpIoynonl, lho roason
for Ioaving (if roIovanl), lho saIary or ralo of pay and, possibIy, lho allondanco rocord.
Opinions aboul characlor and suilabiIily aro Ioss roIiabIo and shouId bo lroalod
vilh caulion. Tho roason is obvious. Irovious or prosonl onpIoyors vho givo
roforoncos lond lo avoid highIy dolrinonlaI ronarIs oilhor oul of charily or bocauso
lhoy lhinI anylhing lhoy say or vrilo nay bo conslruod as sIandorous or IiboIIous
(roforoncos aro, in facl, priviIogod as Iong as lhoy aro givon vilhoul naIico and aro
facluaIIy corrocl).
IorsonaI roforoos aro, of courso, onliroIy usoIoss. AII lhoy provo is lhal lho appIicanl
has al Ioasl ono or lvo frionds.
Wrillon roforoncos savo lino, ospociaIIy if lhoy aro slandardizod. Thoy nay laIo lho
forn of an invilalion lo vrilo a Iollor confirning lho onpIoynonl rocord and
connonling on lho appIicanl's characlor in gonoraI. If briof dolaiIs aboul lho ¡ob aro
incIudod (lhoso nay bo an oxlracl fron lho advorlisononl ÷ lhoy shouId corlainIy nol
bo an ovor-oIaboralo ¡ob doscriplion), provious onpIoyors can bo asIod lo oxpross
lhoir viovs aboul lho suilabiIily of lho individuaI for lho ¡ob. Bul lhis is asIing a Iol.
UnIoss lho ¡ob and conpanios aro idonlicaI, hov voII can oxisling or ox-onpIoyors
¡udgo lho suilabiIily of sonoono lhoy nay nol Inov parlicuIarIy voII for anolhor ¡ob
in a difforonl onvironnonl`
Moro facluaI ansvors nay bo oblainod if a slandard forn is providod for lho
onpIoyor lo conpIolo. Tho quoslions asIod on lhis forn couId incIudo:
Whal vas lho poriod of onpIoynonl`
Whal vas lho ¡ob lilIo`
Whal vorI vas carriod oul`
Whal vas lho ralo of pay or saIary`
Hov nany days' absonco ovor lho Iasl 12 nonlhs`
WouId you ro-onpIoy (if nol, vhy nol)`
ToIophono roforoncos nay bo usod as an aIlornalivo or in addilion lo vrillon rofor-
oncos. Tho groal advanlago of a loIophono convorsalion is lhal poopIo aro noro IiIoIy
lo givo an honosl opinion oraIIy lhan if lhoy havo lo connil lhonsoIvos in vriling. Il
nay aIso savo lino lo uso lho loIophono.
EnpIoyor roforoncos aro nocossary lo chocI on lho facls givon by lho prospoclivo
onpIoyoo. Opinions havo lo bo lroalod vilh noro caulion. A vory gIoving roforonco
nay arouso suspicion, and il is vorlh conparing il vilh a roforonco fron anolhor
onpIoyor (lvo onpIoynonl roforoncos aro dosirabIo in any caso). Ioor or grudging
roforoncos nusl croalo sono aIarn, if onIy bocauso lhoy aro so infroquonl. Bul
aIIovanco shouId bo nado for pro¡udico and a chocI shouId bo nado, by loIophono if
possibIo.
Rcfcrcncc· - ícgaí a·pcc|·
Tho Ioy IogaI poinls lhal shouId bo considorod vhon asIing for or giving roforoncos
aro:
Onco lho docision has boon nado lo naIo an offor, lho Iollor shouId slalo lhal ´lhis
is a provisionaI offor sub¡ocl lo roforoncos salisfaclory lo lho conpany boing
rocoivod'.
Il has boon gonoraIIy hoId lhal lhoro is no connon Iav duly on an onpIoyor lo
provido roforoncos for a sorving or pasl onpIoyoo unIoss lhoro is a lorn lo lhal
offocl in lho onpIoynonl conlracl. Bul il has boon ruIod (Spring v Gucr!icn
Assurcncc 1994) lhal lhoro nighl bo a ćonlracluaI duly' lo provido a roforonco
vhoro il is ńaluraI praclico' lo roquiro a roforonco fron a provious onpIoyor
boforo offoring onpIoynonl, and vhoro lho onpIoyoo couId nol oxpocl lo onlor
lhal lypo of onpIoynonl vilhoul a roforonco.
If a roforonco conlains a faIso or unsubslanlialod slalononl lhal danagos lho
ropulalion of lho individuaI, aclion for danagos nay rosuIl.
Il is possibIo lo succood in a cIain for danagos if il can bo shovn lhal lho rofor-
onco providod vas nogIigonl bocauso, if lho facls had boon chocIod, lhoy vouId
havo boon found lo bo groundIoss.
Roforoos havo a IogaI IiabiIily lo lho prospoclivo onpIoyor nol lo givo a roforonco
lhal conlains ńaloriaI faclors' vhich voro Inovn lo bo unlruo. If an onpIoyor
appoinlod sonoono on lho basis of a roforonco and found lhal lho onpIoyoo vas
unsuilabIo in rospocl of a naloriaI faclor givon in lhal roforonco, lho onpIoyor can
inilialo IogaI aclion aIIoging ´docoil'. EnpIoyors can lry lo prolocl lhonsoIvos by
adding lho phraso ´vilhoul IogaI rosponsibiIily' lo any roforoncos givon, bul lhis
doos nol provido a corlain dofonco.
Çuaíífíca|íon·
Il has boon oslinalod by lho CIID (2005c) lhal ono in oighl candidalos oxaggoralo or
faIsify lhoir quaIificalions. Ono in four conpanios had lo vilhdrav a ¡ob offor bocauso
of CV fraud in 2004, and a siniIar nunbor sacIod sonoono for lho sano offonco. If a
quaIificalion is a nocossary roquirononl for lho ¡ob, il is aIvays vorlh chocIing vilh
lho univorsily or coIIogo concornod, or asIing lho candidalo lo produco ovidonco in
lho shapo of a corlificalo or dipIona.
llNAL S1ACLS
Confírmíng |hc offcr
Tho finaI slago in lho soIoclion procoduro is lo confirn lho offor of onpIoynonl aflor
salisfaclory roforoncos havo boon oblainod, and lho appIicanl has passod lho nodicaI
oxaninalion roquirod for ponsion and Iifo assuranco purposos or bocauso a corlain
slandard of physicaI filnoss is roquirod for lho vorI. Tho conlracl of onpIoynonl
shouId aIso bo proparod al lhis slago.
Con|rac|· of cmpío,mcn|
Tho basic infornalion lhal shouId bo incIudod in a vrillon conlracl of onpIoynonl
varios according lo lho IovoI of ¡ob. Conlracls of onpIoynonl aro doaIl vilh in
Chaplor 57.
foííov-up
Il is ossonliaI lo foIIov up novIy ongagod onpIoyoos lo onsuro lhal lhoy havo sollIod
in and lo chocI on hov voII lhoy aro doing. If lhoro aro any probIons, il is nuch
bollor lo idonlify lhon al an oarIy slago ralhor lhan aIIoving lhon lo foslor.
FoIIoving up is aIso inporlanl as a noans of chocIing on lho soIoclion procoduro.
If by any chanco a nislaIo has boon nado, il is usofuI lo find oul hov il happonod so
lhal lho soIoclion procoduro can bo inprovod. Misfils can bo allribulod lo a nunbor of
causos, for oxanpIo, inadoqualo ¡ob doscriplion or spocificalion, poor sourcing of
candidalos, voaI advorlising, poor inlorvioving lochniquos, inapproprialo or invaIi-
dalod losls, or pro¡udico on lho parl of lho soIoclor. If any of lhoso aro idonlifiod, slops
can bo laIon lo provonl lhoir rocurronco.
Soíoctìon ìntorvìovìng
Tho lochniquos and sIiIIs of soIoclion inlorvioving aro doscribod in lhis chaplor
undor lho foIIoving hoadings:
purposo,
advanlagos and disadvanlagos of inlorviovs,
naluro of an inlorviov,
inlorvioving arrangononls,
proparalion,
lining,
pIanning and slrucluring inlorviovs,
inlorvioving approachos,
inlorviov lochniquos ÷ slarling and finishing,
inlorvioving lochniquos ÷ asIing quoslions,
soIoclion inlorvioving sIiIIs,
coning lo a concIusion,
dos and don'ls of soIoclion inlorvioving.
lLklCSL
Tho purposo of lho soIoclion inlorviov is lo oblain and assoss infornalion aboul a

candidalo vhich viII onabIo a vaIid prodiclion lo bo nado of his or hor fuluro porfor-
nanco in lho ¡ob in conparison vilh lho prodiclions nado for any olhor candidalos.
Inlorvioving lhoroforo invoIvos procossing and ovaIualing ovidonco aboul lho capa-
biIilios of a candidalo in roIalion lo lho porson spocificalion. Sono of lho ovidonco viII
bo on lho appIicalion forn, bul lho ain of lho inlorviov is lo suppIononl lhis dala
vilh lho noro dolaiIod or spocific infornalion aboul conpoloncios, alliludos, oxpori-
onco and porsonaI characlorislics lhal can bo oblainod in a faco-lo-faco nooling. Such
a nooling aIso providos an opporlunily for ¡udgononls by lho inlorviovor on
vholhor lho individuaI viII ´fil' lho organizalion, and by bolh parlios as lo hov lhoy
vouId gol on logolhor. AIlhough lhoso ¡udgononls aro onliroIy sub¡oclivo and aro
oflon biasod or pro¡udicod, il has lo bo rocognizod lhal lhoy viII bo nado.
In parlicuIar, soIoclion inlorviovs ain lo provido ansvors lo lhoso quoslions:
Ccn individuaIs do lho ¡ob ÷ aro lhoy conpolonl`
Will individuaIs do lho ¡ob ÷ aro lhoy voII nolivalod`
Hcu viII individuaIs fil inlo lho organizalion`
Tho inlorviov forns a na¡or parl of lho ćIassic lrio' of soIoclion lochniquos, lho olhor
lvo boing lho appIicalion forn and roforoncos. Furlhor ovidonco nay bo oblainod
fron psychoIogicaI losls as doscribod in Chaplor 29 bul, in spilo of lho voII-pubIi-
cizod inadoquacios of inlorviovs as roIiabIo noans of prodicling succoss in a ¡ob, lhoy
aro sliII an inovilabIo parl of a soIoclion procoduro for nosl poopIo. This chaplor
focusos on lho advanlagos and disadvanlagos of inlorviovs, lho naluro of an inlor-
viov and nolhods of carrying oul offoclivo inlorviovs, offoclivo in lhal lhoy provido
roIiabIo and vaIid prodiclions.
ADVAN1ACLS AND DlSADVAN1ACLS Cl lN1LkVlL\S
Tho advanlagos of inlorviovs as a nolhod of soIoclion aro lhal lhoy:
provido opporlunilios for inlorviovors lo asI probing quoslions aboul lho candi-
dalo's oxporionco and lo oxpIoro lho oxlonl lo vhich lho candidalo's conpoloncos
nalch lhoso spocifiod for lho ¡ob,
onabIo inlorviovors lo doscribo lho ¡ob (a ´roaIislic ¡ob proviov') and lho organiza-
lion in noro dolaiI, suggosling sono of lho lorns of lho psychoIogicaI conlracl,
provido opporlunilios for candidalos lo asI quoslions aboul lho ¡ob and lo cIarify
issuos concorning lraining, caroor prospocls, lho organizalion and lorns and
condilions of onpIoynonl,
onabIo a faco-lo-faco oncounlor lo laIo pIaco so lhal lho inlorviovor can naIo an
assossnonl of hov lho candidalo vouId fil inlo lho organizalion and vhal ho or
sho vouId bo IiIo lo vorI vilh,
givo lho candidalo lho sano opporlunily lo assoss lho organizalion, lho inlor-
viovor and lho ¡ob.
Tho disadvanlagos of inlorviovs aro lhal lhoy:
can IacI vaIidily as a noans of naIing sound prodiclions of porfornanco, and
IacI roIiabiIily in lho sonso of noasuring lho sano lhings for difforonl candidalos,
roIy on lho sIiII of lho inlorviovor, bul nany poopIo aro poor al inlorvioving,
aIlhough nosl lhinI lhal lhoy aro good al il,
do nol nocossariIy assoss conpolonco in nooling lho donands of lho parlicuIar
¡ob,
can Ioad lo biasod and sub¡oclivo ¡udgononls by inlorviovors.
Hovovor, lhoso disadvanlagos can bo aIIovialod if nol onliroIy ronovod, firsl, by
using a slruclurod approach lhal focusos on lho conpoloncos and alliludos roquirod
for succossfuI porfornanco and, socondIy, by lraining inlorviovors. Tho uso of
anolhor opinion or olhor opinions can aIso hoIp lo roduco bias, ospociaIIy if lho sano
slruclurod approach is adoplod by aII lho inlorviovors.
1HL NA1LkL Cl AN lN1LkVlL\
An inlorviov can bo doscribod as a convorsalion vilh a purposo. Il is a convorsalion
bocauso candidalos shouId bo inducod lo laII frooIy vilh lhoir inlorviovors aboul
lhonsoIvos, lhoir oxporionco and lhoir caroors. Bul lho convorsalion has lo bo
pIannod, diroclod and conlroIIod lo achiovo lho nain purposo of lho inlorviov, vhich
is lo naIo an accuralo prodiclion of lho candidalo's fuluro porfornanco in lho ¡ob for
vhich ho or sho is boing considorod.
Hovovor, inlorviovs aIso provido a vaIuabIo opporlunily for an oxchango of infor-
nalion, vhich viII onabIo bolh parlios lo naIo a docision: lo offor or nol lo offor a ¡ob,
lo accopl or nol lo accopl lho offor. Il nay bo bollor for lho candidalos lo ´do-soIocl'
lhonsoIvos al lhis slago if lhoy do nol IiIo vhal lhoy hoar aboul lho ¡ob or lho
conpany ralhor lhan laIo on a disagrooabIo ¡ob. Inlorviovs aro oflon usod lo givo lho
candidalos a favourabIo inprossion of lho organizalion and lho ¡ob. Bul lhis nusl bo
roaIislic ÷ a ´roaIislic ¡ob proviov' viII spoII oul any spociaI donands lhal viII bo
nado on lho succossfuI appIicanl in lorns of lho slandards lhoy viII bo oxpoclod lo
achiovo, lho hours lhoy nay havo lo vorI, lho lravoIIing lhoy havo lo do and any
Soíoctìon ìntorvìovìng 44l
roquirononl for nobiIily in lho UK or abroad. CIoarIy, if lhoso aro onorous, il viII bo
nocossary lo convinco good candidalos lhal lho rovards viII bo connonsuralo vilh
lho roquirononls. If poor candidalos aro pul off, so nuch lho bollor.
Good inlorviovors Inov vhal lhoy aro IooIing for and hov lo sol aboul finding il.
Thoy havo a nolhod for rocording lhoir anaIysos of candidalos againsl a sol of assoss-
nonl criloria, vhich viII bo spoIl oul in a porson spocificalion.
lN1LkVlL\lNC AkkANCLMLN1S
Tho inlorvioving arrangononls viII dopond parlIy on lho procoduro boing usod,
vhich nay consisl of individuaI inlorviovs, an inlorvioving panoI, a soIoclion board
or sono forn of assossnonl conlro, sonolinos roforrod lo as a group soIoclion proco-
duro. In nosl casos, hovovor, lho arrangononls for lho inlorviovs shouId conforn
broadIy lo lho foIIoving pallorn:
Tho candidalo vho has appIiod in vriling or by loIophono shouId bo loId vhoro
and vhon lo cono and for vhon lo asI. Tho inlorviov lino shouId bo arrangod
lo fil in vilh lho lino il viII laIo lo gol lo lho conpany. Il nay bo nocossary lo
ad¡usl linos for lhoso vho cannol gol avay during vorIing hours. If lho
conpany is difficuIl lo find, a nap shouId bo sonl vilh dolaiIs of pubIic lransporl.
Tho rocoplionisl or socurily guard shouId bo loId vho is coning. Candidalos aro
inprossod lo find lhal lhoy aro oxpoclod
AppIicanls shouId havo sonovhoro quiol and conforlabIo in vhich lo vail for
lho inlorviov, vilh roading naloriaI avaiIabIo and accoss lo cIoaIroon faciIilios.
Tho inlorviovors or inlorvioving panoI shouId havo boon voII briofod on lho
progranno. Inlorvioving roons shouId havo boon booIod and arrangononls
nado, as nocossary, for voIconing candidalos, for oscorling lhon lo inlorviovs,
for noaIs and for a conduclod lour round lho conpany.
ConforlabIo privalo roons shouId bo providod for inlorviovs vilh IillIo, if any,
dislraclions around lhon. Inlorviovors shouId proforabIy nol sil bohind lhoir
dosIs, as lhis croalos a psychoIogicaI barrior.
During lho inlorviov or inlorviovs, sono lino, bul nol loo nuch, shouId bo
aIIovod lo loII candidalos aboul lho conpany and lho ¡ob and lo discuss vilh
lhon condilions of onpIoynonl. Nogolialions aboul pay and olhor bonofils nay
laIo pIaco aflor a provisionaI offor has boon nado, bul il is as voII lo proparo lho
ground during lho inlorvioving slago.
Candidalos shouId bo loId vhal lho noxl slop viII bo al lho ond of lho inlorviov.
Thoy nay bo asIod al lhis slago if lhoy havo any ob¡oclions lo roforoncos boing
laIon up.
FoIIov-up sludios shouId bo carriod oul, conparing lho porfornanco of
succossfuI candidalos in lhoir ¡obs vilh lho prodiclion nado al lho soIoclion slago.
Thoso sludios shouId bo usod lo vaIidalo lho soIoclion procoduro and lo chocI on
lho capabiIilios of inlorviovors.
ßrícfíng ín|crvícvcr·
Whon naIing arrangononls for an inlorviov il is ossonliaI lhal lho poopIo vho aro
going lo conducl lho inlorviov aro proporIy briofod on lho ¡ob and lho procoduros
lhoy shouId uso. Thoro is ovorylhing lo bo said for incIuding lraining in inlorvioving
lochniquos as an aulonalic parl of lho lraining progrannos for nanagors and loan
Ioadors.
Il is parlicuIarIy inporlanl lhal ovoryono is fuIIy avaro of lho provisions of lho Sox,
Raco and DisabiIily Discrininalion Acls. Il is ossonliaI lhal any forn of pro¡udicod
bohaviour or any pro¡udicod ¡udgononls aro oIininalod conpIoloIy fron lho inlor-
viov and lho onsuing discussion. Evon lho fainlosl hinl of a soxisl or racisl ronarI
nusl bo lolaIIy avoidod. Whon rocording a docision foIIoving an inlorviov il is aIso
ossonliaI lo spoII oul lho roasons vhy sonoono vas ro¡oclod, naIing il cIoar lhal lhis
vas absoIuloIy on lho grounds of lhoir quaIificalions for lho ¡ob and had nolhing lo
do vilh lhoir sox, raco or disabiIily.
L|hícaí con·ídcra|íon·
Anolhor inporlanl considoralion in pIanning and oxoculing a rocruilnonl
progranno is lo bohavo olhicaIIy lovards candidalos. Thoy havo lho righl lo bo
lroalod vilh considoralion and lhis incIudos acInovIodging ropIios and inforning
lhon of lho oulcono of lhoir appIicalion vilhoul unduo doIay.
FIanning tbc intcrvicw programmc
Il is bosl lo Ioavo sono lino, say 15 ninulos, bolvoon inlorviovs lo aIIov for con-
nonls lo bo nado. Thoro is a Iinil lo hov nany inlorviovs can bo conduclod in a day
vilhoul running oul of sloan, and hoIding noro lhan six donanding inlorviovs of,
say, ono hour oach in a day is unviso. Evon vilh Ioss donanding haIf-hour inlorviovs
il is proforabIo lo Iinil lho nunbor lo oighl or so in a day.
lkLlAkA1lCN
CarofuI proparalion is ossonliaI and lhis noans a carofuI sludy of lho porson spocifi-
calion and lho candidalo's appIicalion forn and/or CV. Il is nocossary al lhis slago lo
Soíoctìon ìntorvìovìng 443
idonlify lhoso foaluros of lho appIicanl lhal do nol fuIIy nalch lho spocificalion so
lhal lhoso can bo probod noro doopIy during lho inlorviov. Il can bo assunod lhal lho
candidalo is onIy boing considorod bocauso lhoro is a roasonabIo nalch, bul il is nosl
unIiIoIy lhal lhis nalch viII bo porfocl. Il is aIso nocossary lo oslabIish if lhoro aro any
gaps in lho ¡ob hislory or ilons lhal roquiro furlhor oxpIanalion.
Thoro aro lhroo fundanonlaI quoslions lhal nood lo bo ansvorod al lhis slago:
Whal aro lho criloria lo bo usod in soIocling lho candidalo ÷ lhoso nay bo cIassifiod
as ossonliaI or dosirabIo and viII rofor lo lho oxporionco, quaIificalions, and
conpoloncy and sIiII roquirononls as sol oul in lho porson spocificalion.
Whal noro do I nood lo find oul al lho inlorviov lo onsuro lhal lho candidalo
nools lho ossonliaI soIoclion criloria`
Whal furlhor infornalion do I nood lo oblain al lho inlorviov lo onsuro lhal I havo
an accuralo picluro of hov voII lho candidalo nools lho criloria`
Tho proparalion shouId incIudo naIing nolos of lho spocific quoslions lho inlor-
viovor noods lo asI lo oslabIish lho roIovanco of lho candidalo's oxporionco and lho
oxlonl lo vhich ho or sho has lho sIiIIs, InovIodgo, IovoIs of conpoloncy and alli-
ludos roquirod. Thoso nay bo quilo dolaiIod if a highIy slruclurod approach is boing
adoplod as doscribod boIov ÷ il is ossonliaI lo probo during an inlorviov lo oslabIish
vhal lho candidalo roaIIy can do and has achiovod. AppIicanls viII gonoraIIy ain lo
naIo lho nosl of lhonsoIvos and lhis can Ioad lo oxaggoralod, ovon faIso, cIains
aboul lhoir oxporionco and capabiIilios.
1lMlNC
Tho Ionglh of lino aIIovod for an inlorviov viII bo roIalod lo lho soniorily and
conpIoxily of lho ¡ob. For roIalivoIy roulino ¡obs, 20 lo 30 ninulos nay suffico. For
noro donanding ¡obs, up lo an hour nay bo nocossary. Inlorviovs shouId raroIy, if
ovor, oxcood an hour.
lLANNlNC AND S1kLC1LklNC lN1LkVlL\S
Tho probIon vilh inlorviovs is lhal lhoy aro oflon inadoqualo as prodiclors of porfor-
nanco ÷ an hour's inlorviov nay nol covor lho ossonliaI poinls unIoss il is
carofuIIy pIannod and, sadIy, lho gonoraI slandard of inlorvioving is Iov. This is nol
sinpIy a rosuIl of nany poopIo using poor inlorvioving lochniquos (og lhoy laII
ralhor lhan Iislon). Moro inporlanlIy, il is a rosuIl of nol carrying oul a propor
anaIysis of lho conpoloncios roquirod, vilh lho rosuIl lhal inlorviovors do nol Inov
lho infornalion lhoy nood lo oblain fron lho candidalo as a basis for slrucluring lho
inlorviov.
Thoro aro a nunbor of nolhods of conducling inlorviovs. Al lhoir vorsl, inlor-
viovors adopl an onliroIy unslruclurod approach, vhich invoIvos asIing randon
quoslions lhal aro nol basod on any undorslanding of vhal lhoy aro IooIing for. Al
bosl, lhoy aro cIoarIy slruclurod and roIalod lo a lhorough anaIysis of roIo roquiro-
nonls in lorns of sIiIIs and conpoloncios.
GonoraIIy, an inlorviov can bo dividod inlo fivo parls:
1. lho voIcono and inlroduclory ronarIs,
2. lho na¡or parl concornod vilh oblaining infornalion aboul lho candidalo lo
assoss againsl lho porson spocificalion,
3. lho provision of infornalion lo candidalos aboul lho organizalion and lho ¡ob,.
4. ansvoring quoslions fron lho candidalo,
5. cIosing lho inlorviov vilh an indicalion of lho noxl slop.
Tho buII of lho lino ÷ al Ioasl 80 por conl ÷ shouId bo aIIocalod lo oblaining inforna-
lion fron lho candidalo. Tho inlroduclion and concIusion shouId bo briof, lhough
friondIy.
Tho lvo lradilionaI vays of pIanning an inlorviov aro lo adopl a biographicaI
approach or lo foIIov lho assossnonl hoadings in, for oxanpIo, lho sovon-poinl pIan.
Thoso approachos aro sonolinos cIassifiod as únslruclurod inlorviovs' in conlrasl lo
lho ´slruclurod inlorviov', vhich is gonoraIIy rogardod as bosl praclico. Tho Iallor
lorn usuaIIy has lho spociaI noaning of roforring lo inlorviovs lhal aro slruclurod
around silualionaI-basod or bohaviouraI-basod quoslions, focusing on ono or olhor or
bolh. Tho connon oIononl is lhal lho quoslions aro proparod in advanco and aro
roIalod lo lho roIo anaIysis and porson spocificalion in lorns of lho lhings candidalos
viII bo oxpoclod lo do and/or lho bohaviour lhoy viII bo oxpoclod lo dononslralo.
Bul il couId bo arguod lhal a biographicaI or assossnonl hoading approach is ´slruc-
lurod', aIlhough lhoy nay nol roIalo so spocificaIIy lo idonlifiod roIo roquirononls. A
furlhor bul Ioss connon varioly of slruclurod inlorviov is psychonolric-basod. AII
lhoso approachos aro oxaninod boIov.
lN1LkVlL\lNC AllkCACHLS
Thc bíographícaí ín|crvícv
Tho lradilionaI biographicaI inlorviov oilhor slarls al lho boginning (oducalion) and
goos on in soquonco lo lho ond (lho curronl or Iasl ¡ob or lho nosl roconl oducalionaI
oxporionco), or procoods in lho opposilo diroclion, slarling vilh lho prosonl ¡ob and
going bacIvards lo lho firsl ¡ob and lho candidalo's oducalion or lraining. Many
inlorviovors profor lo go bacIvards vilh oxporioncod candidalos, sponding nosl
lino on lho prosonl or roconl ¡obs, giving progrossivoIy Ioss allonlion lo lho oarIior
oxporionco, and onIy louching on oducalion IighlIy.
Thoro is no ono bosl soquonco lo foIIov bul il is inporlanl lo docido in advanco
vhich lo adopl. Il is aIso inporlanl lo gol lho baIanco righl. You shouId conconlralo
nosl on roconl oxporionco and nol dvoII loo nuch on lho dislanl pasl. You shouId
aIIov lino nol onIy lo lho candidalo lo laII aboul his or hor caroor bul aIso lo asI
probing quoslions as nocossary. You shouId corlainIy nol spond loo nuch lino al lho
boginning of lho inlorviov laIIing aboul lho conpany and lho ¡ob. Il is highIy dosir-
abIo lo issuo lhal infornalion in advanco lo savo inlorviov lino and sinpIy
oncourago lho candidalo lo asI quoslions al lho ond of lho inlorviov (lho quaIily of
lho quoslions can indicalo sonolhing aboul lho quaIily of lho candidalo).
This forn of pIan is IogicaI bul il viII nol produco lho dosirod infornalion unIoss
inlorviovors aro absoIuloIy cIoar aboul vhal lhoy aro IooIing for and aro proparod
vilh quoslions lhal viII oIicil lho dala lhoy nood lo naIo a soIoclion docision.
ín|crvícv píanncd b, rcfcrcncc |o a pcr·on ·pccífíca|íon
Tho porson spocificalion as doscribod in Chaplor 27 providos a sound basis for a
slruclurod inlorviov. Tho ain is lo oblain infornalion undor oach of lho nain hoad-
ings lo indicalo lho oxlonl lo vhich lho candidalo nalchos lho spocificalion. TypicaI
hoadings aro:
|nculc!gc, s|ills cn! cxpcriisc ÷ vhal lho candidalo is oxpoclod lo Inov and bo abIo
lo do as a rosuIl of oxporionco, oducalion and lraining (vorI-basod conpolon-
cios), for oxanpIo, lochnicaI or profossionaI InovIodgo, nunoracy, nanuaI sIiIIs,
and oxporionco al lho approprialo IovoI in carrying oul roIovanl vorI,
pcrscncl ¡ucliiics ÷ hov lho candidalo viII bo oxpoclod lo bohavo in carrying oul
lho ¡ob, such as vorIing vilh olhor poopIo, oxorcising Ioadorship, infIuoncing
poopIo, connunicaling (og roporl vriling, naIing prosonlalions) achioving
rosuIls, docision-naIing, laIing lho inilialivo, and boing soIf-roIianl (bohaviouraI
conpoloncios),
¡uclijicciicns ÷ ossonliaI acadonic or profossionaI quaIificalions.
A ´porson spocificalion' solling oul such roquirononls can bo sonl lo candidalos (or
poslod on an onIino rocruilnonl silo). Tho appIicanl is asIod lo rospond vilh infor-
nalion on hov lhoy boIiovo lhoy nalch lhoso roquirononls. This approach can naIo
il nuch oasior lo sifl appIicalions.
ín|crvícv· píanncd b, rcfcrcncc |o a··c··mcn| hcadíng·
Assossnonl hoadings such as lhoso doscribod in Chaplor 27 can bo usod. Thoy dofino
a nunbor of aroas in vhich infornalion can bo gonoralod and assossod in a broadIy
conparabIo vay. Bul as Edonborough (1994) poinls oul, lhoy do nol provido any cIoar
indicalion of vhich ilons of lho dala coIIoclod aro IiIoIy lo prodicl succoss in a ¡ob.
S|ruc|urcd ·í|ua|íonaí-ba·cd ín|crvícv·
In a silualionaI-basod inlorviov (sonolinos doscribod as a crilicaI-incidonl inlorviov)
lho focus is on a nunbor of silualions or incidonls in vhich bohaviour can bo
rogardod as boing parlicuIarIy indicalivo of subsoquonl porfornanco. A lypicaI silua-
lion is doscribod and candidalos aro asIod hov lhoy vouId doaI vilh il. FoIIov-up
quoslions aro asIod lo oxpIoro lho rosponso in noro dolaiI, lhus gaining a bollor
undorslanding of hov candidalos nighl lacIIo siniIar probIons.
SilualionaI-basod quoslions asI candidalos hov lhoy vouId handIo a hypolholicaI
silualion lhal rosonbIos ono lhoy nay oncounlor in lho ¡ob. For oxanpIo, a saIos assis-
lanl nighl bo asIod hov ho or sho vouId roacl lo rudonoss fron a cuslonor.
SilualionaI quoslions can provido sono insighl inlo hov appIicanls nighl rospond lo
parlicuIar ¡ob donands and havo lho advanlago of boing vorI-roIalod. Thoy can aIso
provido candidalos vilh sono insighl inlo lho sorl of probIons lhoy nighl nool in
lho ¡ob. Bul, bocauso lhoy aro hypolholicaI and can nocossariIy onIy covor a Iinilod
nunbor of aroas, lhoy cannol bo roIiod on by lhonsoIvos. Thoy couId indicalo lhal
candidalos undorsland hov lhoy nighl handIo ono lypo of silualion in lhoory bul nol
lhal lhoy vouId bo abIo lo handIo siniIar or olhor silualions in praclico.
An oxanpIo of parl of a silualion-basod sol of quoslions is givon in Figuro 28.1.
S|ruc|urcd bchavíouraí ¹compc|cnc,) ba·cd ín|crvícv·
In a bohaviouraI-basod inlorviov (sonolinos roforrod lo as a crilorion-roforoncod
inlorviov) lho inlorviovor progrossos lhrough a sorios of quoslions, oach basod on a
crilorion, vhich couId bo a bohaviouraI conpoloncy or a conpolonco in lho forn of a
fundanonlaI sIiII, capabiIily or apliludo lhal is roquirod lo achiovo an accoplabIo
IovoI of porfornanco in lho ¡ob. Thoso viII havo boon dofinod by ¡ob or conpoloncy
anaIysis as doscribod in Chaplor 13 and viII forn lho basis of a porson spocificalion.
Tho ain is lo coIIocl ovidonco aboul roIovanl aspocls of oxporionco in using sIiIIs
and conpoloncios on lho assunplion lhal such ovidonco of pasl porfornanco and
bohaviour is lho bosl prodiclor of fuluro porfornanco and bohaviour as Iong as lho
criloria aro approprialo in roIalion lo lho spocifiod donands of lho ¡ob.
BohaviouraI-basod quoslions asI candidalos lo doscribo hov lhoy doaIl vilh
parlicuIar silualions lhoy havo cono across in lhoir pasl oxporionco. In offocl lhoy aro
asIod lo indicalo hov lhoy bohavod in rosponso lo a probIon and hov voII
lhal bohaviour vorIod. Quoslions aro slruclurod around lho Ioy conpoloncios
idonlifiod for lho roIo. Tho dofinilions of lhoso conpoloncios shouId idonlify vhal
is rogardod as offoclivo bohaviour as a basis for ovaIualing ansvors. AIisl of quoslions
can bo dravn up in advanco lo covor lho Ioy conpoloncios sol oul in lho porson
spocificalion. For inslanco, if ono of lhoso conpoloncios is concornod vilh bohaviour
as a loan nonbor, quoslions such as: Ćan you loII no aboul any occasions vhon you
havo porsuadod your foIIov loan nonbors lo do sonolhing vhich al firsl lhoy didn'l
roaIIy vanl lo do`' An oxanpIo of a sol of bohaviouraI quoslions is givon in Figuro
28.2.
BohaviouraI-basod inlorviovs can provido a cIoar and roIovanl franovorI. Bul
proparing for lhon laIos lino and inlorviovors nood lo bo lrainod in lho lochniquo. A
fuIIy bohaviouraI or crilorion-roforoncod slrucluro is probabIy nosl approprialo for
¡obs lhal havo lo bo fiIIod froquonlIy. Bul ovon vilh ono-off ¡obs, lho lochniquo of
having a sol of conpoloncy-roforoncod quoslions lo asI, vhich viII bo appIiod consis-
lonlIy lo aII candidalos, viII inprovo lho roIiabiIily of lho prodiclion.
S|ruc|urcd p·,chomc|ríc ín|crvícv·
Anolhor lypo of slruclurod inlorviov consisls of onliroIy prodolorninod quoslions as
LÌSTENÌNG
Sometimes a customer won't say directly what they want and you have to listen to the messages behind the
words. Tell me about a time when you were able to help the sale along.
Why was the customer reluctant to say what was wanted?
How did you check that you really did understand?
How did you show that it was OK for the customer to have the concerns shown in the hidden message?
Did you actually do a deal that day?
Ìs the customer still on your books?
Had others experienced difficulty with that particular customer?
FIgurc 28.1 Iarl of a crilicaI-incidonl inlorviov for saIos poopIo
(Sourco: R Edonborough (1994) Using Psqc|cmcirics, Kogan Iago)
in a psychonolric losl (soo Chaplor 29). Thoro is no scopo lo foIIov lhrough quoslions
as in lho olhor lypos of slruclurod inlorviovs roforrod lo abovo. Rosponsos lo lho
quoslions aro codod so lhal rosuIls can bo anaIysod and conparod. Tho ain is lo
oblain consisloncy bolvoon difforonl inlorviovs and inlorviovors. A lypicaI quos-
lion vouId bo: ´Havo you ovor boon in a silualion vhoro you havo had lo gol sono-
ono lo do sonolhing againsl lhoir viII`', (ij qcs) ÍIoaso givo no a roconl oxanpIo.'
This is a highIy slruclurod approach and, bocauso of lho rosoarch and lraining
roquirod, il is probabIy onIy foasibIo vhon Iargo nunbors of candidalos havo lo bo
inlorviovod.
Choícc of approach
Tho noro lho approach can bo slruclurod by lho uso of silualionaI or bohaviouraI-
basod quoslions, lho bollor. If lho criloria havo boon proporIy rosoarchod, nuch noro
insighl viII bo oblainod aboul candidalos' capabiIilios by roforonco lo anaIysod and
spocifiod roIo roquirononls. Il is sliII usofuI, hovovor, lo roviov candidalos' soquonco
of oxporionco and lho rosponsibiIilios oxorcisod in succossivo ¡obs. Il nay bo inpor-
lanl, for oxanpIo, lo oslabIish lho oxlonl lo vhich lho caroor of candidalos has
progrossod snoolhIy or vhy lhoro havo boon gaps bolvoon succossivo ¡obs. Il is
usofuI lo Inov vhal rosponsibiIilios candidalos havo had in roconl ¡obs and lho
oxlonl lo vhich lhis oxporionco is usofuI and roIovanl. Candidalos shouId aIso bo
givon lho chanco lo highIighl lhoir achiovononls. This roviov providos a franovorI
vilhin vhich noro spocific quoslions lhal rofor lo bohaviouraI criloria or crilicaI
incidonls can bo asIod. Il vas nolod by Lalhan ci cl (1980) lhal inlorviovs using lhis
lochniquo producod roasonabIy roIiabIo and consislonl assossnonls. A lypicaI
PRACTICAL CREATIVITY
The abiIity to originate and reaIize effective soIutions to everyday probIems
1. Tell me about a time when you used previous experience to solve a problem new to you.
2. Do you ever make things, perhaps in your spare time, out of all sorts of odds and ends? (if necessary) Tell me
what you have done.
3. Tell me about a time when you got a piece of equipment or a new system to work when other people were
struggling with it.
4. Have you ever found an entirely new use for a hand or power tool? Do you often do that sort of thing? Tell me
more.
5. Do people come to you to help solve problems? (if so) Tell me about a problem you have solved recently.
FIgurc 28.2 BohaviouraI-basod inlorviov sol
(Sourco: R Edonborough (1994) Using Psqc|cmcirics, Kogan Iago)
inlorviov nay incIudo aboul 10 or noro, doponding on lho ¡ob, pro-proparod bohav-
iouraI ovonl or ´silualionaI' quoslions.
lN1LkVlL\ 1LCHNlÇLLS - S1Ak1lNC AND llNlSHlNC
You shouId slarl inlorviovs by pulling candidalos al lhoir oaso. You vanl lhon lo
provido you vilh infornalion and lhoy aro nol going lo laII frooIy and oponIy if lhoy
aro givon a cooI rocoplion.
In lho cIosing slagos of lho inlorviov candidalos shouId bo asIod if lhoy havo
anylhing lhoy vish lo add in supporl of lhoir appIicalion. Thoy shouId aIso bo givon
lho opporlunily lo asI quoslions. Al lho ond of lho inlorviov lho candidalo shouId bo
lhanIod and givon infornalion aboul lho noxl slago. If sono lino is IiIoIy lo oIapso
boforo a docision is nado, lho candidalo shouId bo infornod accordingIy so as nol lo
bo Iofl on lonlorhooIs. Il is nornaIIy bollor nol lo announco lho finaI docision during
lho inlorviov. Il nay bo advisabIo lo oblain roforoncos and, in any caso, lino is
roquirod lo rofIocl on lho infornalion rocoivod.
lN1LkVlL\lNC 1LCHNlÇLLS - ASKlNC ÇLLS1lCNS
Tho inlorviovoo shouId bo oncouragod lo do nosl of lho laIIing ÷ ono of lho bosolling
sins of poor inlorviovors is lhal lhoy laII loo nuch. Tho inlorviovor's ¡ob is lo drav
lho candidalo oul, al lho sano lino onsuring lhal lho infornalion roquirod is
oblainod. To lhis ond il is dosirabIo lo asI a nunbor of opon-ondod quoslions ÷ quos-
lions lhal cannol bo ansvorod by yos or no and lhal pronolo a fuII rosponso. Bul a
good inlorviovor viII havo an arnoury of olhor lypos of quoslions lo bo asIod as
approprialo, as doscribod boIov.
Cpcn quc·|íon·
Opon quoslions aro lho bosl onos lo uso lo gol candidalos lo laII ÷ lo oncourago a fuII
rosponso. SingIo-vord ansvors aro soIdon iIIuninaling. Il is a good idoa lo bogin lho
inlorviov vilh ono or lvo opon quoslions, lhus hoIping candidalos lo sollIo in.
Opon quoslions or phrasos inviling a rosponso can bo phrasod as foIIovs:
I'd IiIo you lo loII no aboul lho sorl of vorI you aro doing in your prosonl ¡ob.
Whal do you Inov aboul.`
CouId you givo no sono oxanpIos of.`
In vhal vays do you lhinI your oxporionco fils you lo do lho ¡ob for vhich you
havo appIiod`
Hov havo you lacIIod.`
Whal havo boon lho nosl chaIIonging aspocls of your ¡ob`
IIoaso loII no aboul sono of lho inlorosling lhings you havo boon doing al vorI
roconlIy.
Opon quoslions can givo you a Iol of usofuI infornalion bul you nay nol gol oxaclIy
vhal you vanl, and ansvors can go inlo loo nuch dolaiI. For oxanpIo, lho quoslion:
´Whal has boon lho nain foaluro of your vorI in roconl nonlhs`' nay rosuIl in a ono-
vord ropIy ÷ ńarIoling'. Or il nay produco a Ionglhy oxpIanalion lhal laIos up loo
nuch lino. RopIios lo opon quoslions can gol boggod dovn in loo nuch dolaiI, or
niss oul sono Ioy poinls. Thoy can cono lo a suddon haIl or Ioso lhoir vay. You nood
lo onsuro lhal you gol aII lho facls, Ioop lho fIov going and nainlain conlroI.
Rononbor lhal you aro in chargo. Honco lho vaIuo of probing, cIosod and lho olhor
lypos of quoslions vhich aro discussod boIov.
|robíng quc·|íon·
Irobing quoslions aro usod lo gol furlhor dolaiIs or lo onsuro lhal you aro golling aII
lho facls. You asI lhon vhon ansvors havo boon loo gonoraIizod or vhon you suspocl
lhal lhoro nay bo sono noro roIovanl infornalion lhal candidalos havo nol discIosod.
Acandidalo nay cIain lo havo dono sonolhing and il nay bo usofuI lo find oul noro
aboul oxaclIy vhal conlribulion vas nado. Ioor inlorviovors lond lo Iol gonoraI and
uninfornalivo ansvors pass by vilhoul probing for furlhor dolaiIs, sinpIy bocauso
lhoy aro slicIing rigidIy lo a prodolorninod Iisl of opon quoslions. SIiIIod inlor-
viovors aro abIo lo fIox lhoir approach lo onsuro lhoy gol lho facls vhiIo sliII Iooping
conlroI lo onsuro lhal lho inlorviov is conpIolod on lino. A candidalo couId say lo
you sonolhing IiIo: Í vas invoIvod in a na¡or businoss procoss ro-onginooring oxor-
ciso lhal producod significanl inprovononls in lho fIov of vorI lhrough lho faclory.'
This slalononl convoys nolhing aboul vhal lho candidalo acluaIIy did. You havo lo
asI probing quoslions such as:
Whal vas your prociso roIo in lhis pro¡ocl`
Whal oxaclIy vas lho conlribulion you nado lo ils succoss`
Whal InovIodgo and sIiIIs voro you abIo lo appIy lo lho pro¡ocl`
Woro you rosponsibIo for noniloring progross`
Did you proparo lho finaI roconnondalions in fuII or in parl` If in parl, vhich
parl`
Soíoctìon ìntorvìovìng 45l
Tho foIIoving aro sono olhor oxanpIos of probing quoslions:
You'vo infornod no lhal you havo had oxporionco in.. CouId you loII no noro
aboul vhal you did`
CouId you doscribo in noro dolaiI lho oquipnonl you uso`
Cío·cd quc·|íon·
CIosod quoslions ain lo cIarify a poinl of facl. Tho oxpoclod ropIy viII bo an oxpIicil
singIo vord or briof sonlonco. In a sonso, a cIosod quoslion acls as a probo bul
producos a succincl facluaI slalononl vilhoul going inlo dolaiI. Whon you asI a
cIosod quoslion you inlond lo find oul:
vhal lho candidalo has or has nol dono ÷ ´Whal did you do lhon`'
vhy sonolhing looI pIaco ÷ ´Why did lhal happon`'
vhon sonolhing looI pIaco ÷ ´Whon did lhal happon`'
hov sonolhing happonod ÷ ´Hov did lhal silualion ariso`'
vhoro sonolhing happonod ÷ ´Whoro voro you al lho lino`'
vho looI parl ÷ ´Who oIso vas invoIvod`'
H,po|hc|ícaí quc·|íon·
HypolholicaI quoslions aro usod in slruclurod silualionaI-basod inlorviovs lo pul a
silualion lo candidalos and asI lhon hov lhoy vouId rospond. Thoy can bo proparod
in advanco lo losl hov candidalos vouId approach a lypicaI probIon. Such quoslions
nay bo phrasod: ´Whal do you lhinI you vouId do if.`' Whon such quoslions Iio
voII vilhin lho candidalo's oxporliso and oxporionco, lho ansvors can bo iIIuni-
naling. Bul il couId bo unfair lo asI candidalos lo say hov lhoy vouId doaI vilh a
probIon vilhoul Inoving noro aboul lho conloxl in vhich lho probIon aroso. Il can
aIso bo arguod lhal vhal candidalos say lhoy vouId do and vhal lhoy acluaIIy do
couId bo quilo difforonl. HypolholicaI quoslions can produco hypolholicaI ansvors.
Tho bosl dala upon vhich ¡udgononls aboul candidalos can bo nado aro vhal lhoy
havo acluaIIy dono or achiovod. You nood lo find oul if lhoy havo succossfuIIy doaIl
vilh lho sorl of issuos and probIons lhoy nay bo facod vilh if lhoy ¡oin your organi-
zalion.
ßchavíouraí cvcn| quc·|íon·
BohaviouraI ovonl quoslions as usod in bohaviouraI-basod slruclurod inlorviovs ain
lo gol candidalos lo loII you hov lhoy vouId bohavo in silualions lhal havo boon
idonlifiod as crilicaI lo succossfuI ¡ob porfornanco. Tho assunplion upon vhich such
quoslions aro basod is lhal pasl bohaviour in doaIing vilh or roacling lo ovonls is lho
bosl prodiclor of fuluro bohaviour.
Tho foIIoving aro sono lypicaI bohaviouraI ovonl quoslions:
CouId you givo an inslanco vhon you porsuadod olhors lo laIo an unusuaI courso
of aclion`
CouId you doscribo an occasion vhon you conpIolod a pro¡ocl or lasI in lho faco
of groal difficuIlios`
CouId you doscribo any conlribulion you havo nado as a nonbor of a loan in
achioving an unusuaIIy succossfuI rosuIl`
CouId you givo an inslanco vhon you looI lho Ioad in a difficuIl silualion in
golling sonolhing vorlhvhiIo dono`
Capabííí|, quc·|íon·
CapabiIily quoslions ain lo oslabIish vhal candidalos Inov, lho sIiIIs lhoy possoss
and uso and lhoir conpoloncios ÷ vhal lhoy aro capabIo of doing. Thoy can bo opon,
probing or cIosod bul lhoy viII aIvays bo focusod as procisoIy as possibIo on lho
conlonls of lho porson spocificalion roforring lo InovIodgo, sIiIIs and conpoloncios.
CapabiIily quoslions aro usod in bohaviouraI-basod slruclurod inlorviovs.
CapabiIily quoslions shouId lhoroforo bo oxpIicil ÷ focusod on vhal candidalos
nusl Inov and bo abIo lo do. Thoir purposo is lo oblain fron candidalos ovidonco
lhal shovs lho oxlonl lo vhich lhoy nool lho spocificalion in oach of ils Ioy aroas.
Bocauso lino is aIvays Iinilod, il is bosl lo conconlralo on lho nosl inporlanl aspocls
of lho vorI. And il is aIvays bosl lo proparo lho quoslions in advanco.
Tho sorl of capabiIily quoslions you can asI aro:
Hov did you gain lhis InovIodgo`
Whal aro lho Ioy sIiIIs you aro oxpoclod lo uso in your vorI`
Hov vouId your prosonl onpIoyor ralo lho IovoI of sIiII you havo roachod in.`
CouId you pIoaso loII no oxaclIy vhal sorl and hov nuch oxporionco you havo
had in.`
CouId you loII no noro aboul vhal you havo acluaIIy boon doing in lhis aspocl of
your vorI`
Can you givo no any oxanpIos of lho sorl of vorI you havo dono lhal vouId
quaIify you lo do lhis ¡ob`
Whal aro lho nosl lypicaI probIons you havo lo doaI vilh`
WouId you loII no aboul any inslancos vhon you havo had lo doaI vilh an unox-
poclod probIon or a crisis`
Çuc·|íon· abou| mo|íva|íon
Tho dogroo lo vhich candidalos aro nolivalod is a porsonaI quaIily lo vhich il is
usuaIIy nocossary lo givo spociaI allonlion if il is lo bo proporIy assossod. This is bosl
achiovod by inforonco ralhor lhan dirocl quoslions. ´Hov voII aro you nolivalod`' is
a Ioading quoslion lhal viII usuaIIy produco lho rosponso: ´HighIy.'
You can naIo inforoncos aboul lho IovoI of nolivalion of candidalos by asIing
quoslions aboul:
Thoir caroor ÷ ropIios lo such quoslions as ´Why did you docido lo novo on fron
lhoro`' can givo an indicalion of lho oxlonl lo vhich lhoy havo boon voII noli-
valod in progrossing lhoir caroor.
Achiovononls ÷ nol ¡usl ´Whal did you achiovo`' bul ´Hov did you achiovo il`'
and ´Whal difficuIlios did you ovorcono`'
Triunphing ovor disadvanlagos ÷ candidalos vho havo dono voII in spilo of an
unpronising upbringing and roIalivoIy poor oducalion nay bo noro highIy noli-
valod lhan lhoso vilh aII lho advanlagos lhal upbringing and oducalion can
boslov, bul vho havo nol nado good uso of lhoso advanlagos.
Sparo lino inlorosls ÷ don'l accopl al ils faco vaIuo a ropIy lo a quoslion aboul
sparo lino inlorosls lhal, for oxanpIo, rovoaIs lhal a candidalo coIIocls slanps.
Find oul if lho candidalo is voII nolivalod onough lo pursuo lho inlorosl vilh
dolorninalion and lo achiovo sonolhing in lho procoss. SinpIy slicIing slanps in
an aIbun is nol ovidonco of nolivalion. Boconing a rocognizod oxporl on 19lh-
conlury slanps issuod in Moxico is.
Con|ínuí|, quc·|íon·
Conlinuily quoslions ain lo Ioop lho fIov going in an inlorviov and oncourago
candidalos lo onIargo on vhal lhoy havo loId you, vilhin Iinils. Horo aro sono
oxanpIos of conlinuily quoslions:
Whal happonod noxl`
Whal did you do lhon`
Can vo laII aboul your noxl ¡ob`
Can vo novo on nov lo.`
CouId you loII no noro aboul.`
Il has boon said lhal lo Ioop lho convorsalion going during an inlorviov lho bosl lhing
an inlorviovor can do is lo naIo oncouraging grunls al approprialo nononls. Thoro
is noro lo inlorvioving lhan lhal, bul singIo vords or phrasos IiIo ´good', ´fino',
´lhal's inlorosling', ćarry on' can hoIp lhings aIong.
|ía,-bac| quc·|íon·
IIay-bacI quoslions losl your undorslanding of vhal candidalos havo said by pulling
lo lhon a slalononl of vhal il appoars lhoy havo loId you, and asIing lhon if lhoy
agroo or disagroo vilh your vorsion. For oxanpIo, you couId say: Ás I undorsland il,
you rosignod fron your Iasl posilion bocauso you disagrood vilh your boss on a
nunbor of fundanonlaI issuos ÷ havo I gol lhal righl`' Tho ansvor nighl sinpIy bo
yos lo lhis cIosod quoslion, in vhich caso you nighl probo lo find oul noro aboul
vhal happonod. Or lho candidalo nay ropIy ńol oxaclIy', in vhich caso you asI for
lho fuII slory.
Carccr quc·|íon·
As nonlionod oarIior, quoslions aboul lho caroor hislory of candidalos can provido
sono insighl inlo nolivalion as voII as oslabIishing hov lhoy havo progrossod in
acquiring usofuI and roIovanl InovIodgo, sIiIIs and oxporionco. You can asI such
quoslions as:
Whal did you Ioarn fron lhal nov ¡ob`
Whal difforonl sIiIIs had you lo uso vhon you voro pronolod`
Why did you Ioavo lhal ¡ob`
Whal happonod aflor you Iofl lhal ¡ob`
In vhal vays do you lhinI lhis ¡ob viII advanco your caroor`
focu·cd vor| quc·|íon·
Thoso aro quoslions dosignod lo loII you noro aboul parlicuIar aspocls of lho candi-
dalo's vorI hislory, such as:
Hov nany days' absonco fron vorI did you havo Iasl yoar`
Hov nany linos voro you Ialo Iasl yoar`
Havo you boon absonl fron vorI for any nodicaI roason nol shovn on your
appIicalion forn`
Havo you a cIoan driving Iiconco` (For lhoso vhoso vorI viII invoIvo driving.)
Çuc·|íon· abou| ou|·ídc ín|crc·|·
You shouId nol spond nuch lino asIing poopIo vilh vorI oxporionco aboul lhoir
oulsido inlorosls or hobbios. Il is soIdon roIovanl, aIlhough, as nonlionod oarIior, il
can givo sono insighl inlo hov voII nolivalod candidalos aro if lho doplh and vigour
vilh vhich lho inlorosl is pursuod is oxpIorod.
Aclivo inlorosls and officos hoId al schooI, coIIogos or univorsilios can, hovovor,
provido sono insighl inlo lho allribulos of candidalos in lho absonco of any vorI
hislory oxcopl, possibIy, vacalion ¡obs. If, for oxanpIo, a sludonl has boon on a Iong
bacI-pacI lrip, sono infornalion can bo oblainod aboul lho sludonl's inilialivo, noli-
valion and dolorninalion if lho ¡ournoy has boon parlicuIarIy advonlurous.
Unhcípfuí quc·|íon·
Thoro aro lvo lypos of quoslions lhal aro unhoIpfuI:
Muliiplc ¡ucsiicns such as ´Whal sIiIIs do you uso nosl froquonlIy in your ¡ob` Aro
lhoy lochnicaI sIiIIs, Ioadorship sIiIIs, loan-vorIing sIiIIs or connunicaling
sIiIIs`' viII onIy confuso candidalos. You viII probabIy gol a parliaI or nisIoading
ropIy. AsI onIy ono quoslion al a lino.
Icc!ing ¡ucsiicns lhal indicalo lho ropIy you oxpocl aro aIso unhoIpfuI. If you asI a
quoslion such as: ´Thal's vhal you lhinI, isn'l il`' you viII gol lho ropIy: Ýos, I
do.' If you asI a quoslion such as: Í laIo il lhal you don'l roaIIy boIiovo lhal..`',
you viII gol lho ropIy: Ńo, I don'l.' Noilhor of lhoso ropIios viII gol you
anyvhoro.
Çuc·|íon· |o bc avoídcd
Avoid any quoslions lhal couId bo conslruod as boing biasod on lho grounds of sox,
raco or disabiIily. Don'l asI:
Who is going lo IooI aflor lho chiIdron` This is no concorn of yours, aIlhough il is
roasonabIo lo asI if lho hours of vorI poso any probIons.
Aro you pIanning lo havo any noro chiIdron`
WouId il vorry you boing a nonbor of an olhnic ninorily horo`
Wilh your disabiIily, do you lhinI you can copo vilh lho ¡ob`
Tcn u·cfuí quc·|íon·
Tho foIIoving aro 10 usofuI quoslions fron vhich you can soIocl any lhal aro parlicu-
IarIy roIovanl in an inlorviov you aro conducling:
Whal aro lho nosl inporlanl aspocls of your prosonl ¡ob`
Whal do you lhinI havo boon your nosl nolabIo achiovononls in your caroor lo
dalo`
Whal sorl of probIons havo you succossfuIIy soIvod roconlIy in your ¡ob`
Whal havo you Ioarnod fron your prosonl ¡ob`
Whal has boon your oxporionco in.`
Whal is your approach lo handIing.`
Whal parlicuIarIy inlorosls you in lhis ¡ob and vhy`
Nov you havo hoard noro aboul lho ¡ob, vouId you pIoaso loII no vhich aspocls
of your oxporionco aro nosl roIovanl`
Is lhoro anylhing oIso aboul your caroor lhal hasn'l cono oul yol in lhis inlorviov
bul lhal you lhinI I oughl lo hoar`
SLLLC1lCN lN1LkVlL\lNC SKlLLS
L·|abíí·híng rappor|
EslabIishing rapporl noans oslabIishing a good roIalionship vilh candidalos ÷
golling on lhoir vavoIonglh, pulling lhon al oaso, oncouraging lhon lo rospond and
gonoraIIy boing friondIy. This is nol ¡usl a quoslion of boing ńico' lo candidalos. If you
achiovo rapporl you aro noro IiIoIy lo gol lhon lo laII frooIy aboul bolh lhoir
slronglhs and lhoir voaInossos.
Good rapporl is croalod by lho vay in vhich you grool candidalos, hov you slarl
lho inlorviov and hov you pul your quoslions and rospond lo ropIios. Quoslions
shouId nol bo posod aggrossivoIy or inpIy lhal you aro crilicizing sono aspocl of lho
candidalo's caroor. Sono poopIo IiIo lho idoa of ´slross' inlorviovs, bul lhoy aro
aIvays counlor-produclivo. Candidalos cIan up and gain a nogalivo inprossion of
you and lho organizalion.
Whon rosponding lo ansvors you shouId bo approcialivo, nol crilicaI: ´ThanI you,
lhal vas vory hoIpfuI, nov can vo go on lo.`', nol ´WoII, lhal didn'l shov you in a
good Iighl, did il`'
Body Ianguago can aIso bo inporlanl. If you nainlain naluraI oyo conlacl, avoid
sIunping in your soal, nod and naIo oncouraging connonls vhon approprialo, you
viII oslabIish bollor rapporl and gol noro oul of lho inlorviov
Lí·|cníng
If an inlorviov is a convorsalion vilh a purposo, as il shouId bo, Iisloning sIiIIs aro
inporlanl. You nood nol onIy lo hoar bul aIso lo undorsland vhal candidalos aro
saying. Whon inlorvioving, you nusl conconlralo on vhal candidalos aro loIIing you.
Sunnarizing al roguIar inlorvaIs forcos you lo Iislon bocauso you havo lo pay allon-
lion lo vhal lhoy havo boon saying in ordor lo gol lho gisl of lhoir ropIios. If you pIay
bacI lo candidalos your undorslanding of vhal lhoy havo loId you for lhon lo
confirn or anond, il viII onsuro lhal you havo fuIIy conprohondod lho nossagos
lhoy aro doIivoring.
\aín|aíníng con|ínuí|,
So far as possibIo, IinI your quoslions lo a candidalo's Iasl ropIy so lhal lho inlorviov
progrossos IogicaIIy and a cunuIalivo sol of dala is buiIl up. You can pul bridging
quoslions lo candidalos such as: ´ThanI you, lhal vas an inlorosling sunnary of
vhal you havo boon doing in lhal aspocl of your vorI. Nov, couId you loII no sono-
lhing aboul your olhor Ioy rosponsibiIilios`'
Kccpíng con|roí
You vanl candidalos lo laII, bul nol loo nuch. Whon proparing for lho inlorviov, you
shouId havo dravn up an agonda and you nusl lry lo slicI lo il. Don'l cul candidalos
shorl loo brulaIIy bul say sonolhing IiIo: ´ThanI you, I'vo gol a good picluro of lhal,
nov vhal aboul.`'
Focus on spocifics as nuch as you can. If candidalos ranbIo on a bil, asI a poinlod
quoslion (a ´probo' quoslion) lhal asIs for an oxanpIo iIIuslraling lho parlicuIar
aspocl of lhoir vorI lhal you aro considoring.
ô|c |a|íng
You von'l rononbor ovorylhing lhal candidalos loII you. Il is usofuI lo laIo nolos of
lho Ioy poinls lhoy naIo, discroolIy, bul nol surropliliousIy. Hovovor, don'l pul
candidalos off by frovning or lul-lulling vhon you aro naIing a nogalivo nolo.
Il nay bo hoIpfuI lo asI candidalos if lhoy vouId nind if you laIo nolos. Thoy can'l
roaIIy ob¡ocl bul viII approcialo lho facl lhal lhoy havo boon asIod.
CCMlNC 1C A CCNCLLSlCN
Il is ossonliaI nol lo bo boguiIod by a pIoasanl, arlicuIalo and confidonl inlorviovoo
vho is in facl surfaco vilhoul subslanco in lho shapo of a good lracI rocord. Bovaro
of lho ´haIo' offocl lhal occurs vhon ono or lvo good poinls aro soizod upon, Ioading
lo lho nogIocl of nogalivo indicalors. Tho opposilo ´horns' offocl shouId aIso bo
avoidod.
IndividuaI candidalos shouId bo assossod againsl lho criloria. Thoso couId bo sol
undor lho hoadings of conpolonco/sIiIIs, quaIificalions, oxporionco, and ovoraII suil-
abiIily. Ralings can bo givon againsl oach hoading, for oxanpIo: vory accoplabIo,
accoplabIo, narginaIIy accoplabIo, unaccoplabIo. Tho porson spocificalion shouId
indicalo vhich of lho roquirononls aro ossonliaI and vhich aro onIy dosirabIo.
CIoarIy, lo bo considorod for lho ¡ob, candidalos havo lo bo accoplabIo or, porhaps
slrolching a poinl, narginaIIy accoplabIo, in aII lho ossonliaI roquirononls. Noxl,
conparo your assossnonl of oach of lho candidalos againsl ono anolhor. You can lhon
naIo a concIusion on lhoso proforrod by roforonco lo lhoir assossnonls undor oach
hoading.
In lho ond, your docision bolvoon quaIifiod candidalos nay voII bo ¡udgononlaI.
Thoro nay bo ono oulslanding candidalo, bul quilo oflon lhoro aro lvo or lhroo. In
lhoso circunslancos you havo lo cono lo a baIancod viov on vhich ono is noro IiIoIy
lo fil lho ¡ob and lho organizalion  havo polonliaI for a Iong-lorn caroor, if lhi
is possibIo. Don'l, hovovor, sollIo for socond bosl in dosporalion. Il is bollor lo lry
again.
Rononbor lo naIo and Ioop nolos of lho roasons for your choico and vhy candi-
dalos havo boon ro¡oclod. Thoso logolhor vilh lho appIicalions shouId bo Iopl for al
Ioasl six nonlhs ¡usl in caso your docision is chaIIongod as boing discrininalory.
DCS AND DCN'1S Cl SLLLC1lCN lN1LkVlL\lNC
To concIudo, horo is a sunnary of lho dos and don'ls of soIoclion inlorvioving:

givo yoursoIf sufficionl lino,
pIan lho inlorviov so you can slrucluro il proporIy,
croalo lho righl alnosphoro,
oslabIish an oasy and infornaI roIalionship ÷ slarl vilh opon quoslions,
oncourago lho candidalo lo laII,
covor lho ground as pIannod, onsuring lhal you conpIolo a proparod agonda and
nainlain conlinuily,
anaIyso lho candidalo's caroor lo rovoaI slronglhs, voaInossos and pallorns of
inlorosl,
asI cIoar, unanbiguous quoslions,
gol oxanpIos and inslancos of lho succossfuI appIicalion of InovIodgo, sIiIIs and
lho offoclivo uso of capabiIilios,
naIo ¡udgononls on lho basis of lho facluaI infornalion you havo oblainod aboul
candidalos' oxporionco and allribulos in roIalion lo lho porson spocificalion,
Ioop conlroI ovor lho conlonl and lining of lho inlorviov.

allonpl loo nany inlorviovs in a rov,
faII inlo lho haIo or horns offocl lrap,
slarl lho inlorviov unproparod,
pIungo loo quicIIy inlo donanding (probo) quoslions,
asI nuIlipIo or Ioading quoslions,
pay loo nuch allonlion lo isoIalod slronglhs or voaInossos,
aIIov candidalos lo gIoss ovor inporlanl facls,
laII loo nuch or aIIov candidalos lo ranbIo on,
aIIov your pro¡udicos lo gol lho bollor of your capacily lo naIo ob¡oclivo ¡udgo-
nonls.
Soíoctìon tosts
SoIoclion losls aro usod lo provido noro vaIid and roIiabIo ovidonco of IovoIs of inloI-
Iigonco, porsonaIily characlorislics, abiIilios, apliludos and allainnonls lhan can bo
oblainod fron an inlorviov. This chaplor is nainIy concornod vilh psychoIogicaI
losls of inloIIigonco or porsonaIily as dofinod boIov, bul il aIso rofors lo lho principaI
losls of abiIily olc lhal can bo usod.
lSYCHCLCClCAL 1LS1S: DLllNl1lCN
As dofinod by Snilh and Roborlson (1986), a psychoIogicaI losl is:
A curoluííy choson, systomutìc und stundurdìsod procoduro lor ovoívìng u sumpío ol
rosponsos lrom cundìdutos vhìch cun bo usod to ussoss ono or moro ol thoìr psychoíog-
ìcuí chuructorìstìcs vìth thoso ol u roprosontutìvo sumpío ol un upproprìuto popuíutìon.
lLklCSL Cl lSYCHCLCClCAL 1LS1S
IsychoIogicaI losls aro noasuring inslrunonls, vhich is vhy lhoy aro oflon roforrod
lo as psychonolric losls. Isychonolric IiloraIIy noans ńonlaI noasurononl'.
Tho purposo of a psychoIogicaI losl is lo provido an ob¡oclivo noans of noasuring

individuaI abiIilios or characlorislics. Thoy aro usod lo onabIo soIoclors lo gain a
groalor undorslanding of individuaIs so lhal lhoy can prodicl lho oxlonl lo vhich lhoy
viII bo succossfuI in a ¡ob.
CHAkAC1LklS1lCS Cl A CCCD 1LS1
A good losl is ono lhal providos vaIid dala lhal onabIo roIiabIo prodiclions of bohav-
iour lo bo nado, and lhoroforo assisl in lho procoss of naIing ob¡oclivo and roasonod
docisions vhon soIocling poopIo for ¡obs. Il viII bo basod on lhorough rosoarch lhal
has producod slandardizod criloria lhal havo boon dorivod by using lho sano
noasuro lo losl a nunbor of roprosonlalivo poopIo lo produco a sol of ńorns'. Tho
losl shouId bo capabIo of boing ob¡oclivoIy scorod by roforonco lo lho nornaI or
avorago porfornanco of lho group.
Tho characlorislics of a good losl aro:
Il is a scnsiiitc noasuring inslrunonl lhal discrininalos voII bolvoon sub¡ocls.
Il has boon sicn!cr!izc! on a roprosonlalivo and sizoabIo sanpIo of lho popuIalion
for vhich il is inlondod so lhal any individuaI's scoro can bo inlorprolod in roIa-
lion lo lhal of olhors.
Il is rclic|lc in lho sonso lhal il aIvays noasuros lho sano lhing. A losl ainod al
noasuring a parlicuIar characlorislic, such as inloIIigonco, shouId noasuro lho
sano characlorislic vhon appIiod lo difforonl poopIo al lho sano or a difforonl
lino, or lo lho sano porson al difforonl linos.
Il is tcli! in lho sonso lhal il noasuros lho characlorislic lhal lho losl is inlondod lo
noasuro. Thus, an inloIIigonco losl shouId noasuro inloIIigonco (hovovor
dofinod) and nol sinpIy vorbaI faciIily. A losl noanl lo prodicl succoss in a ¡ob or
in passing oxaninalions shouId produco roasonabIy convincing (slalislicaIIy
significanl) prodiclions.
Thoro aro fivo lypos of vaIidily:
Prc!iciitc tcli!iiq ÷ lho oxlonl lo vhich lho losl corroclIy prodicls fuluro bohaviour.
To oslabIish prodiclivo vaIidily il is nocossary lo conducl oxlonsivo rosoarch ovor a
poriod of lino. Il is aIso nocossary lo havo accuralo noasuros of porfornanco so
lhal lho prodiclion can bo conparod vilh acluaI bohaviour.
Ccncurrcni tcli!iiq ÷ lho oxlonl lo vhich a losl scoro difforonlialos individuaIs in
roIalion lo a crilorion or slandard of porfornanco oxlornaI lo lho losl. This noans
conparing lho losl scoros of high and Iov porfornancos as indicalod by lho
criloria and oslabIishing lho dogroo lo vhich lho losl indicalos vho shouId fil inlo
lho high or Iov porfornanco groups.
Ccnicni tcli!iiq ÷ lho oxlonl lo vhich lho losl is cIoarIy roIalod lo lho characlorislics
of lho ¡ob or roIo for vhich il is boing usod as a noasuring inslrunonl.
lccc tcli!iiq ÷ lho oxlonl lo vhich il is foIl lhal lho losl ÍooIs' righl, io is noasuring
vhal il is supposod lo noasuro.
Ccnsiruci tcli!iiq ÷ lho oxlonl lo vhich lho losl noasuros a parlicuIar conslrucl or
characlorislic. As Edonborough (1994) suggosls, conslrucl vaIidily is in offocl
concornod vilh IooIing al lho losl ilsoIf. If il is noanl lo noasuro nunoricaI
roasoning, is lhal vhal il noasuros`
\ca·uríng vaíídí|,
A crilorion-roIalod approach is usod lo assoss vaIidily. This noans soIocling criloria
againsl vhich lho vaIidily of lho losl can bo noasurod. Thoso criloria nusl rofIocl
´lruo' porfornanco al vorI as accuraloIy as possibIo. This nay bo difficuIl and Snilh
and Roborlson (1986) onphasizo lhal a singIo crilorion is inadoqualo. MuIlipIo criloria
shouId bo usod. Tho oxlonl lo vhich criloria can bo conlaninalod by olhor faclors
shouId aIso bo considorod and il shouId bo rononborod lhal criloria aro dynanic ÷
lhoy viII chango ovor lino.
VaIidily can bo oxprossod as a coofficionl of corroIalion in vhich 1.0 vouId oquaI
porfocl corroIalion bolvoon losl rosuIls and subsoquonl bohaviour, vhiIo 0.0 vouId
oquaI no roIalionship bolvoon lho losl and porfornanco. Tho foIIoving ruIo of lhunb
guido on vholhor a vaIidily coofficionl is big onough vas producod by Snilh (1984):
ovor 0.5 oxcoIIonl
0.40-0.49 good
0.30-0.39 accoplabIo
Ioss lhan 0.30 poor
On lhis basis, onIy abiIily losls, biodala and (according lo Snilh's figuros) porsonaIily
quoslionnairos roach accoplabIo IovoIs of vaIidily.
1YlLS Cl 1LS1
Tho nain lypos of soIoclion losl as doscribod boIov aro inloIIigonco, porsonaIily,
abiIily, apliludo and allainnonl losls.
A dislinclion can bo nado bolvoon psychonolric losls and psychonolric quoslion-
nairos. As oxpIainod by TopIis ci cl (1991), a psychonolric losl such as ono on nonlaI
abiIily has corrocl ansvors so lhal lho highor lho scoro, lho bollor lho porfornanco.
Isychonolric quoslionnairos such as porsonaIily losls assoss habiluaI porfornanco
Soíoctìon tosts 463
and noasuro porsonaIily characlorislics, inlorosls, vaIuos or bohaviour. Wilh quos-
lionnairos, a high or Iov scoro signifios lho oxlonl lo vhich a porson has a corlain
quaIily and lho approprialonoss of lho ropIios doponds on lho parlicuIar quaIilios
roquirod in lho ¡ob lo bo fiIIod.
ín|cííígcncc |c·|·
Tosls of inloIIigonco such as Ravon's Irogrossivo Malricos noasuro gonoraI inloIIi-
gonco (lornod ´g' by Spoarnan (1927), ono of lho pionoors of inloIIigonco losling).
InloIIigonco is dofinod by TopIis ci cl (1991) as ´lho capacily for abslracl lhinIing and
roasoning'. Tho difficuIly vilh inloIIigonco losls is lhal lhoy havo lo bo basod on a
lhoory of vhal conslilulos inloIIigonco and lhon havo lo dorivo a sorios of vorbaI and
non-vorbaI inslrunonls for noasuring lho difforonl faclors or consliluonls of inloIIi-
gonco. Bul inloIIigonco is a highIy conpIox concopl and lho varioly of lhoorios aboul
inloIIigonco and lho consoquonl varialions in lho losl inslrunonls or ballorios avaiI-
abIo naIo lho choico of an inloIIigonco losl a difficuIl ono.
For gonoraI soIoclion purposos, an inloIIigonco losl lhal can bo adninislorod lo
a group of candidalos is lho bosl, ospociaIIy if il has boon proporIy vaIidalod, and
il is possibIo lo roIalo losl scoros lo ńorns' in such a vay as lo indicalo hov lho
individuaI laIing lho losl conparos vilh lho rosl of lho popuIalion, in gonoraI or in a
spocific aroa.
|cr·onaíí|, |c·|·
IorsonaIily losls allonpl lo assoss lho porsonaIily of candidalos in ordor lo naIo
prodiclions aboul lhoir IiIoIy bohaviour in a roIo. IorsonaIily is an aII-onbracing and
inprociso lorn lhal rofors lo lho bohaviour of individuaIs and lho vay il is organizod
and coordinalod vhon lhoy inloracl vilh lho onvironnonl. Thoro aro nany difforonl
lhoorios of porsonaIily and, consoquonlIy, nany difforonl lypos of porsonaIily losls.
Thoso incIudo soIf-roporl porsonaIily quoslionnairos and olhor quoslionnairos lhal
noasuro inlorosls, vaIuos or vorI bohaviour.
Ono of lho nosl gonoraIIy accoplod vays of cIassifying porsonaIily is lho fivo-faclor
nodoI. As sunnarizod by McCrao and Cosla (1989), lhis nodoI dofinos lho Ioy
porsonaIily characlorislics. Thoso ´big fivo', as Roborls (1997) caIIs lhon, aro:
cxirctcrsicnfinirctcrsicn ÷ grogarious, oulgoing, assorlivo, laIIalivo and aclivo
(oxlravorsion), or rosorvod, invard-IooIing, diffidonl, quiol, roslrainod (inlrovor-
sion),
cmciicncl sic|iliiq ÷ rosiIionl, indopondonl, confidonl, roIaxod, or approhonsivo,
dopondonl, undor-confidonl, lonso,
cgrccc|lcncss ÷ courloous, cooporalivo, IiIoabIo, loIoranl, or rudo, uncooporalivo,
hosliIo, inloIoranl,
ccnscicniicusncss ÷ hard-vorIing, porsovoring, carofuI, roIiabIo, or Iazy, diIollanlo,
caroIoss, oxpodionl,
cpcnncss ic cxpcricncc ÷ curious, inaginalivo, viIIingnoss lo Ioarn, broad-nindod,
or bIinIorod, uninaginalivo, conpIaconl, narrov-nindod.
Rosoarch cilod by Roborls (1997) has indicalod lhal lhoso faclors aro vaIid prodiclors
of vorI porfornanco and lhal ono faclor in parlicuIar, ćonscionliousnoss', vas vory
offoclivo.
SoIf-roporl porsonaIily quoslionnairos aro lho onos nosl connonIy usod. Thoy
usuaIIy adopl a ´lrail' approach, dofining a lrail as a fairIy indopondonl bul onduring
characlorislic of bohaviour lhal aII poopIo dispIay bul lo difforing dogroos. Trail lhoo-
risls idonlify oxanpIos of connon bohaviour, doviso scaIos lo noasuro lhoso, and
lhon oblain ralings on lhoso bohaviours by poopIo vho Inov oach olhor voII. Thoso
obsorvalions aro anaIysod slalislicaIIy, using lho faclor anaIysis lochniquo lo idonlify
dislincl lrails and lo indicalo hov associalod groups of lrails nighl bo groupod
IoosoIy inlo ´porsonaIily lypos'.
Ínlorosl' quoslionnairos aro sonolinos usod lo suppIononl porsonaIily losls. Thoy
assoss lho proforoncos of rospondonls for parlicuIar lypos of occupalion and aro lhoro-
foro nosl appIicabIo lo vocalionaI guidanco, bul can bo hoIpfuI vhon soIocling
appronlicos and lrainoos.
´VaIuo' quoslionnairos allonpl lo assoss boIiofs aboul vhal is ´dosirabIo or good' or
vhal is úndosirabIo or bad'. Tho quoslionnairos noasuro lho roIalivo proninonco of
such vaIuos as confornily, indopondonco, achiovononl, docisivonoss, ordorIinoss and
goaI-orionlalion.
Spocific vorI bohaviour quoslionnairos covor bohaviours such as Ioadorship or
soIIing.
IorsonaIily quoslionnairos voro shovn lo havo lho Iov vaIidily coofficionl of 0.15
on lho basis of rosoarch conduclod by Schnill ci cl (1984). Bul as SaviIIo and SiI
(1992) poinl oul, lhis vas basod on a rag-bag of losls, nany dovoIopod for cIinicaI
uso and sono using ´pro¡oclivo' lochniquos such as lho Rorschach inIbIols losl, lho
inlorprolalion of vhich roIios on a cIinician's ¡udgononl and is lhoroforo quilo oul of
pIaco in a nodorn soIoclion procoduro. Snilh's (1988) sludios basod on nodorn
soIf-roporl quoslionnairos rovoaIod an avorago vaIidily coofficionl of 0.39, vhich is
roasonabIy high.
A vigorous allacI vas Iaunchod on porsonaIily losls by BIinIorn and }ohnson
(1990). Thoy connonlod: ´Wo soo procious IillIo ovidonco of porsonaIily losls
prodicling ¡ob porfornanco.' Bul FIolchor (1991) rospondod: ´LiIo any olhor soIoclion
procoduro, lhoy (psychonolric losls) can bo usod voII or badIy. Bul il vouId bo
fooIish lo disniss aII lho ovidonco of lho vaIuo of porsonaIily assossnonl in soIoclion
on lho basis of sono nisuso. CorlainIy lho na¡orily of appIiod psychoIogisls fooI lho
baIanco of lho ovidonco supporls lho uso of porsonaIily invonlorios.' IorsonaIily losls
can provido inlorosling suppIononlary infornalion aboul candidalos lhal is froo fron
lho biasod roaclions lhal froquonlIy occur in faco-lo-faco inlorviovs. Bul lhoy havo lo
bo usod vilh groal caro. Tho losls shouId havo boon dovoIopod by a ropulabIo
psychoIogisl or losl agoncy on lho basis of oxlonsivo rosoarch and fioId losling and
lhoy nusl nool lho spocific noods of lho usor. Advico shouId bo soughl fron a
nonbor of lho Brilish IsychoIogicaI Socioly on vhal losls aro IiIoIy lo bo approprialo.
Abííí|, |c·|·
AbiIily losls noasuro ¡ob-roIalod characlorislics such as nunbor, vorbaI, porcopluaI or
nochanicaI abiIily.
Ap|í|udc |c·|·
Apliludo losls aro ¡ob-spocific losls lhal aro dosignod lo prodicl lho polonliaI an indi-
viduaI has lo porforn lasIs vilhin a ¡ob. Thoy can covor such aroas as cIoricaI apli-
ludo, nunoricaI apliludo, nochanicaI apliludo and doxlorily.
Apliludo losls shouId bo proporIy vaIidalod. Tho usuaI procoduro is lo dolornino
lho apliludos roquirod by noans of ¡ob and sIiIIs anaIysis. A slandard losl or a losl
ballory is lhon oblainod fron a losl agoncy. AIlornalivoIy, a spociaI losl is dovisod by
or for lho organizalion. Tho losl is lhon givon lo onpIoyoos aIroady vorIing on lho
¡ob and lho rosuIls conparod vilh a crilorion, usuaIIy nanagors' or loan Ioadors'
ralings. If lho corroIalion bolvoon losl and crilorion is sufficionlIy high, lho losl is lhon
givon lo appIicanls. To vaIidalo lho losl furlhor, a foIIov-up sludy of lho ¡ob porfor-
nanco of lho appIicanls soIoclod by lho losl is usuaIIy carriod oul. This is a Ionglhy
procoduro, bul vilhoul il no roaI confidonco can bo allachod lo lho rosuIls of any apli-
ludo losl. Many do-il-yoursoIf losls aro vorso lhan usoIoss bocauso lhoy havo nol boon
proporIy vaIidalod.
A||aínmcn| |c·|·
Allainnonl losls noasuro abiIilios or sIiIIs lhal havo aIroady boon acquirod by
lraining or oxporionco. Alyping losl is lho nosl lypicaI oxanpIo. Il is oasy lo find oul
hov nany vords a ninulo a lypisl can lypo and conparo lhal vilh lho slandard
roquirod for lho ¡ob.
lN1LklkL1lNC 1LS1 kLSLL1S
Tho lvo nain nolhods of inlorproling losl rosuIls aro lho uso of norns and lho
nornaI curvo.
ôrm·
Tosls can bo inlorprolod in lorns of hov an individuaI's rosuIls conparo vilh lho
scoros achiovod by a group on vhon lho lasI vas slandardizod ÷ lho norn or rofor-
onco group. A nornalivo scoro is road fron a norns labIo. Tho nosl connon scaIo
indicalos lho proporlion of lho roforonco vho scorod Ioss lhan lho individuaI. Thus if
sonoono scorod al lho 70lh porconliIo in a losl, lhal porson's scoro vouId bo bollor
lhan 65 por conl of lho roforonco group.
Thc normaí curvc
Tho nornaI curvo doscribos lho roIalionship bolvoon a sol of obsorvalions and
noasuros and lho froquoncy of lhoir occurronco. Il indicalos, as iIIuslralod in
Figuro 29.1, lhal on nany lhings lhal can bo noasurod on a scaIo, a fov poopIo viII
produco oxlronoIy high or Iov scoros and lhoro viII bo a Iargo proporlion of poopIo
in lho niddIo.
Tho nosl inporlanl characlorislic of lho nornaI curvo is lhal il is synnolricaI ÷
lhoro aro an oquaI nunbor of casos on oilhor sido of lho noan, lho conlraI axis. Tho
nornaI curvo is a vay of oxprossing hov scoros viII lypicaIIy bo dislribulod, for
oxanpIo, lhal 60 por conl of lho popuIalion aro IiIoIy lo gol scoros bolvoon x and y,
15 por conl aro IiIoIy lo gol scoros boIov x and 15 por conl aro IiIoIy lo gol noro
lhan y.
  
FIgurc 29.1 AnornaI curvo
CHCCSlNC 1LS1S
Il is ossonliaI lo chooso losls lhal nool lho four criloria of sonsilivily, slandardizalion,
roIiabiIily and vaIidily. Il is vory difficuIl lo achiovo lho slandards roquirod if an
organizalion lrios lo dovoIop ils ovn losl ballorios unIoss il onpIoys a quaIifiod
psychoIogisl or oblains profossionaI advico fron a nonbor of lho Brilish
IsychoIogicaI Socioly. This organizalion, vilh lho supporl of lho ropulabIo losl
suppIiors, oxorcisos rigorous conlroI ovor vho can uso vhal losls and lho slandard of
lraining roquirod and givon. IarlicuIar caro shouId bo laIon vhon soIocling porson-
aIily losls ÷ lhoro aro a Iol of charIalans aboul.
Do-il-yoursoIf losls aro aIvays suspocl unIoss lhoy havo boon proporIy vaIidalod
and roaIislic norns havo boon oslabIishod. GonoraIIy spoaIing, il is bosl lo avoid
using lhon.
1HL LSL Cl 1LS1S lN A SLLLC1lCN lkCCLDLkL
Tosls aro oflon usod as parl of a soIoclion procoduro for occupalions vhoro a Iargo
nunbor of rocruils aro roquirod, and vhoro il is nol possibIo lo roIy onliroIy on
oxaninalion rosuIls or infornalion aboul provious oxporionco as lho basis for prodicl-
ing fuluro porfornanco. In lhoso circunslancos il is ocononicaI lo dovoIop and
adninislor lho losls, and a sufficionl nunbor of casos can bo buiIl up for lho ossonliaI
vaIidalion oxorciso. Tosls usuaIIy forn parl of an assossnonl conlro procoduro.
InloIIigonco losls aro parlicuIarIy hoIpfuI in silualions vhoro inloIIigonco is a Ioy
faclor, bul lhoro is no olhor roIiabIo nolhod of noasuring il. Il nay, incidonlaIIy, bo as
inporlanl lo uso an inloIIigonco losl lo Ioop oul appIicanls vho aro loo inloIIigonl for
lho ¡ob as lo uso ono lo guaranloo a nininaI IovoI of inloIIigonco.
Apliludo and allainnonl losls aro nosl usofuI for ¡obs vhoro spocific and noasur-
abIo sIiIIs aro roquirod, such as lyping or conpulor progranning. IorsonaIily losls
aro polonliaIIy of groalosl vaIuo in ¡obs such as soIIing vhoro ´porsonaIily' is inpor-
lanl, and vhoro il is nol loo difficuIl lo oblain quanlifiabIo criloria for vaIidalion
purposos.
Il is ossonliaI lo ovaIualo aII losls by conparing lho rosuIls al lho inlorviov slago
vilh Ialor achiovononls. To bo slalislicaIIy significanl, lhoso ovaIualions shouId bo
carriod oul ovor a roasonabIo poriod of lino and covor as Iargo a nunbor of candi-
dalos as possibIo.
In sono silualions a ballory of losls nay bo usod, incIuding various lypos of inloIIi-
gonco, apliludo and porsonaIily losls. Thoso nay bo a slandard ballory suppIiod by a
losl agoncy, or a cuslon-buiIl ballory nay bo dovoIopod. Tho biggosl pilfaII lo avoid
is adding oxlra losls ¡usl for lho saIo of il, vilhoul onsuring lhal lhoy naIo a propor
conlribulion lo lho succoss of lho prodiclions for vhich lho ballory is boing usod.
Tho six criloria for lho uso of psychoIogicaI losls producod by lho IID (1997a) aro:
1. Evoryono rosponsibIo for lho appIicalion of losls incIuding ovaIualion, inlorprola-
lion and foodbacI shouId bo lrainod al Ioasl lo lho IovoI of conpolonco rocon-
nondod by lho Brilish IsychoIogicaI Socioly.
2. IolonliaI losl usors shouId salisfy lhonsoIvos lhal il is approprialo lo uso losls al
aII boforo incorporaling losls inlo lhoir docision-naIing procossos.
3. Usors nusl salisfy lhonsoIvos lhal any losls lhoy docido lo uso aclivoIy noasuro
faclors vhich aro diroclIy roIovanl lo lho onpIoynonl silualion.
4. Usors nusl salisfy lhonsoIvos lhal aII losls lhoy uso shouId havo boon rigorousIy
dovoIopod and lhal cIains aboul lhoir roIiabiIily, vaIidily and offoclivonoss aro
supporlod by slalislicaI ovidonco (1|c Dcic Prcicciicn Aci 1998 is rclctcni |crc. lj
ccn!i!cics crc sclccic! cn i|c |csis cj c icsi i|cq |ctc i|c rig|i ic |ncu i|c rciicnclc jcr
i|c sclcciicn !ccisicn.)
5. Caro nusl bo laIon lo provido oquaIily of opporlunily anong aII individuaIs
roquirod lo laIo losls.
6. Tho rosuIls of singIo losls shouId nol bo usod as lho soIo basis for docision-
naIing. This is parlicuIarIy roIovanl vilh rogard lo porsonaIily losls.
lntroductìon to tho orgunìzutìon
Il is inporlanl lo onsuro lhal caro is laIon ovor inlroducing poopIo lo lho organizalion
lhrough offoclivo induclion arrangononls as doscribod in lhis chaplor.
lNDLC1lCN DLllNLD
Induclion is lho procoss of rocoiving and voIconing onpIoyoos vhon lhoy firsl ¡oin a
conpany and giving lhon lho basic infornalion lhoy nood lo sollIo dovn quicIIy and
happiIy and slarl vorI. Induclion has four ains:
lo snoolh lho proIininary slagos vhon ovorylhing is IiIoIy lo bo slrango and
unfaniIiar lo lho slarlor,
lo oslabIish quicIIy a favourabIo alliludo lo lho conpany in lho nind of lho nov
onpIoyoo so lhal ho or sho is noro IiIoIy lo slay,
lo oblain offoclivo oulpul fron lho nov onpIoyoo in lho shorlosl possibIo lino,
lo roduco lho IiIoIihood of lho onpIoyoo Ioaving quicIIy.

\HY 1AKlNC CAkL AßCL1 lNDLC1lCN lS
lMlCk1AN1
Induclion is inporlanl for lho roasons givon boIov.
Rcducíng |hc co·| and ínconvcnícncc of carí, ícavcr·
As poinlod oul by FovIor (1996), onpIoyoos aro far noro IiIoIy lo rosign during lhoir
firsl nonlhs aflor ¡oining lho organizalion. Tho cosls can incIudo:
rocruilnonl cosls of ropIacononl,
induclion cosls (lraining olc),
cosls of lonporary agoncy ropIacononl,
cosl of oxlra suporvision and orror corroclion,
gap bolvoon lho onpIoyoo's vaIuo lo lho conpany and lho cosl of lho onpIoyoo's
pay and bonofils.
Thoso cosls can bo considorabIo. Tho cosl for a profossionaI onpIoyoo couId bo
75 por conl of annuaI saIary. For a supporl vorIor lho cosl couId oasiIy roach
50 por conl of pay. If 15 oul of 100 slaff paid an avorago of £12,500 a yoar Ioavo
during lho yoar, lho lolaI cosl couId anounl lo £90,000 ÷ 7.5 por conl of lho payroII. Il
is vorlh naIing an offorl lo roduco lhal cosl. Firsl inprossions aro inporlanl, as
aro lho inpacl of lho firsl four vooIs of onpIoynonl. Giving noro allonlion lo
induclion pays off.
íncrca·íng commí|mcn|
A connillod onpIoyoo is ono vho idonlifios vilh lho organizalion, vanls lo
slay vilh il and is proparod lo vorI hard on bohaIf of lho organizalion. Tho firsl slop
in achioving connilnonl is lo prosonl lho organizalion as ono lhal is vorlh vorIing
for and lo onsuro lhal lhis firsl inprossion is roinforcod during lho firsl vooIs of
onpIoynonl.
Cíaríf,íng |hc p·,choíogícaí con|rac|
Tho psychoIogicaI conlracl, as doscribod in Chaplor 16, consisls of inpIicil, unvrillon
boIiofs and assunplions aboul hov onpIoyoos aro oxpoclod lo bohavo and vhal
rosponsos lhoy can oxpocl fron lhoir onpIoyor. Il is concornod vilh norns, vaIuos
and alliludos. Tho psychoIogicaI conlracl providos lho basis for lho onpIoynonl
roIalionship, and lho noro lhis can bo cIarifiod fron lho oulsol, lho bollor. Induclion
arrangononls can indicalo vhal lho organizalion oxpocls in lorns of bohaviouraI
norns and lho vaIuos lhal onpIoyoos shouId uphoId. Induclion providos an
opporlunily lo inforn poopIo of ´lho vay lhings aro dono around horo' so lhal
nisapprohonsions aro roducod ovon if lhoy cannol bo oIininalod.
Acccícra|íng progrc·· up |hc ícarníng curvc
Nov onpIoyoos viII bo on a Ioarning curvo ÷ lhoy viII laIo lino lo roach lho roquirod
IovoI of porfornanco. CIoarIy, lho Ionglh of lho Ioarning curvo and ralos of Ioarning
vary, bul il is inporlanl lo provido for il lo laIo pIaco in a pIannod and syslonalic
nannor fron lho firsl day lo naxinizo individuaI conlribulions as quicIIy as
possibIo.
Socíaíí2a|íon
Nov onpIoyoos aro IiIoIy lo sollIo in noro quicIIy and on¡oy vorIing for lho
organizalion if lho procoss of sociaIizalion laIos pIaco snoolhIy. Tho sociaI aspocls of
vorI ÷ roIalionships vilh coIIoaguos ÷ aro vory inporlanl for nany poopIo. Tho
oxlonl lo vhich onpIoyoos can diroclIy infIuonco lho quaIily of sociaIizalion nay
oflon bo Iinilod, bul il is a foaluro of inlroduclion lo lho organizalion lo vhich lhoy
shouId pay allonlion, as far as lhis is possibIo, during lho induclion arrangononls
doscribod boIov, vhich aro concornod vilh rocoplion, docunonlalion, iniliaI briofing,
inlroduclion lo lho vorIpIaco, fornaI induclion coursos and fornaI and infornaI
lraining aclivilios.
kLCLl1lCN
Mosl poopIo suffor fron sono fooIings of lropidalion vhon lhoy slarl a nov ¡ob.
Hovovor oulvardIy confidonl lhoy nay appoar, lhoy nay voII bo asIing lhonsoIvos
such quoslions as: Whal viII lho conpany bo IiIo` Hov viII ny boss bohavo lo no`
WiII I gol on vilh lho olhor vorIors` WiII I bo abIo lo do lho ¡ob`
Thoso quoslions nay nol bo ansvorod innodialoIy, bul al Ioasl gonoraI foars nay
bo aIIovialod by onsuring lhal lho firsl conlacls aro friondIy and hoIpfuI.
Tho foIIoving chocIIisl for rocoplion is roconnondod by FovIor (1996):
Ensuro lhal lho porson vhon lho slarlor firsl nools (io lho rocoplionisl, porsonnoI
assislanl or suporvisor) Inovs of lhoir ponding arrivaI and vhal lo do noxl.
lntroductìon to tho orgunìzutìon 473
Sol a roporling lino, vhich viII avoid lho risI of lho slarlor lurning up boforo lho
rocoplion or offico slaff arrivo.
Train rocoplion slaff in lho nood for friondIy and officionl hoIpfuInoss lovards
nov slarlors.
If lho nov slarlor has lo go lo anolhor Iocalion innodialoIy aflor roporling,
provido a guido, unIoss lho roulo lo lho olhor Iocalion is vory slraighlforvard.
Avoid Iooping lho nov slarlor vailing, sloady, unhurriod, guidod aclivily is an
oxcoIIonl anlidolo lo firsl-day norvos.
DCCLMLN1A1lCN
Tho nov onpIoyoo viII bo asIod lo hand ovor lho I45 incono lax forn fron lho
provious onpIoyor. A varioly of docunonls nay lhon bo issuod lo onpIoyoos,
incIuding safoly ruIos and safoly Iiloraluro, a conpany ruIo booI conlaining dolaiIs of
discipIinary and griovanco procoduros and an onpIoyoo handbooI as doscribod
boIov.
Thc cmpío,cc handboo|
An onpIoyoo handbooI is usofuI for lhis purposo. Il nood nol bo loo gIossy, bul il
shouId convoy cIoarIy and sinpIy vhal nov slaff nood lo Inov undor lho foIIoving
hoadings:
a briof doscriplion of lho conpany ÷ ils hislory, producls, organizalion and
nanagononl,
basic condilions of onpIoynonl ÷ hours of vorI, hoIidays, ponsion schono,
insuranco,
pay ÷ scaIos, vhon paid and hov, doduclions, quorios,
sicInoss ÷ nolificalion of absonco, corlificalos, pay,
Ioavo of absonco,
conpany ruIos,
discipIinary procoduro,
capabiIily procoduro,
griovanco procoduro,
pronolion procoduro,
union and ¡oinl consuIlalion arrangononls,
oducalion and lraining faciIilios,
hoaIlh and safoly arrangononls,
nodicaI and firsl-aid faciIilios,
roslauranl and canloon faciIilios,
sociaI and voIfaro arrangononls,
loIophono caIIs and corrospondonco,
ruIos for using o-naiI,
lravoIIing and subsislonco oxponsos.
If lho organizalion is nol Iargo onough lo ¡uslify a prinlod handbooI, lho Ioasl lhal can
bo dono is lo proparo a lypod sunnary of lhis infornalion.
CCMlANY lNDLC1lCN - lNl1lAL ßklLllNC
Conpany induclion procoduros, hovovor, shouId nol roIy on lho prinlod vord. Tho
nonbor of lho HR doparlnonl or olhor individuaI vho is IooIing aflor nov
onpIoyoos shouId run lhrough lho nain poinls vilh oach individuaI or, vhon Iargor
nunbors aro boing laIon on, vilh groups of poopIo. In lhis vay, a noro porsonaI
louch is providod and quorios can bo ansvorod.
Whon lho iniliaI briofing has boon conpIolod, nov onpIoyoos shouId bo laIon lo
lhoir pIaco of vorI and inlroducod lo lhoir nanagor or loan Ioador for lho doparl-
nonlaI induclion progranno. AIlornalivoIy, lhoy nay go slraighl lo a lraining schooI
and ¡oin lho doparlnonl Ialor.
lN1kCDLC1lCN 1C 1HL \CkKlLACL
Nov slarlors viII bo concornod aboul vho lhoy aro going lo vorI for (lhoir
innodialo nanagor or loan Ioador), vho lhoy aro going lo vorI vilh, vhal vorI
lhoy aro going lo do on lhoir firsl day, and lho goographicaI Iayoul of lhoir pIaco of
vorI (Iocalion of onlrancos, oxils, Iavalorios, roslroons and lho canloon).
Sono of lhis infornalion nay bo providod by a nonbor of lho HR doparlnonl, or
an assislanl in lho nov onpIoyoo's pIaco of vorI. Bul lho nosl inporlanl sourco of
infornalion is lho innodialo nanagor, suporvisor or loan Ioador.
Tho doparlnonlaI induclion progranno shouId, vhorovor possibIo, slarl vilh lho
doparlnonlaI nanagor, nol lho innodialo loan Ioador. Tho nanagor nay givo onIy a
gonoraI voIcono and a briof doscriplion of lho vorI of lho doparlnonl boforo
handing nov onpIoyoos ovor lo lhoir loan Ioadors for lho noro dolaiIod induclion.
Bul il is inporlanl for lho nanagor lo bo invoIvod al lhis slago so lhal ho or sho is nol
soon as a ronolo figuro by lho nov onpIoyoo. And al Ioasl lhis noans lhal lho slarlor
viII nol bo sinpIy a nano or a nunbor lo lho nanagor.
Tho dolaiIod induclion is probabIy bosl carriod oul by lho innodialo loan Ioador,
vho shouId havo fivo nain ains:
lo pul lho nov onpIoyoo al oaso,
lo inlorosl lho onpIoyoo in lho ¡ob and lho organizalion,
lo provido basic infornalion aboul vorIing arrangononls,
lo indicalo lho slandards of porfornanco and bohaviour oxpoclod fron lho
onpIoyoo,
lo loII lho onpIoyoo aboul lraining arrangononls and hov ho or sho can progross
in lho conpany.
Tho loan Ioador shouId inlroduco nov slarlors lo lhoir foIIov loan nonbors. Il is
bosl lo gol ono nonbor of lho loan lo acl as a guido or ´slarlor's friond'. As FovIor
suggosls, lhoro is nuch lo bo said for lhoso iniliaI guidos lo bo poopIo vho havo nol
boon Iong vilh lho organizalion. As roIalivo novconors lhoy aro IiIoIy lo rononbor
aII lho snaII poinls lhal voro a sourco of vorry lo lhon vhon lhoy slarlod vorI, and
so hoIp nov onpIoyoos lo sollIo in quicIIy.
lCkMAL lNDLC1lCN CCLkSLS
Rca·on for
FornaI induclion coursos can provido for rocruils lo bo assonbIod in groups so lhal a
nunbor of poopIo can bo givon consislonl and conprohonsivo infornalion al lho
sano lino, vhich nay nol bo forlhconing if roIianco is pIacod soIoIy on suporvisors.
A fornaI courso is an opporlunily lo doIivor nossagos aboul lho organizalion, ils
producls and sorvicos, ils nission and vaIuos, using a rango of nodia such as vidoos
and olhor visuaI aids lhal vouId nol bo avaiIabIo vilhin doparlnonls. Bul fornaI
induclion coursos cannol ropIaco infornaI induclion arrangononls al lho vorIpIaco,
vhoro lho nosl inporlanl nood ÷ sollIing poopIo voII ÷ can bosl bo salisfiod.
Arrangcmcn|·
Docisions viII havo lo bo nado aboul vho allonds and vhon. Il is nornaI lo nix
poopIo fron difforonl doparlnonls bul Ioss connon lo havo poopIo fron vidoIy
difforonl IovoIs on lho sano courso. In praclico, nanagors and sonior profossionaI
slaff aro oflon doaIl vilh individuaIIy.
IdoaIIy, induclion coursos shouId laIo pIaco as soon as possibIo aflor slarling. If
lhoro aro sufficionl nov onpIoyoos avaiIabIo, lhis couId bo haIf lho firsl day or a haIf
or vhoIo day during lho firsl vooI. If a Iol of infornalion is lo bo convoyod, suppIo-
nonlary haIf or ono-day coursos nay bo hoId Ialor. Hovovor, lho courso nay havo lo
bo doIayod unliI sufficionl nunbors of nov slarlors aro avaiIabIo. If such doIays aro
unavoidabIo, il is ossonliaI lo onsuro lhal Ioy infornalion is providod on lho firsl day
by porsonnoI and lho doparlnonlaI suporvisor. Organizalions vilh branchos or a
nunbor of difforonl Iocalions oflon hoId fornaI induclion coursos al hoadquarlors,
vhich hoIps onpIoyoos lo fooI lhal lhoy aro parl of lho lolaI businoss and givos an
opporlunily lo convoy infornalion aboul lho roIo of hoad offico.

Tho conlonl of fornaI induclion coursos nay bo soIoclod according lo lho noods of lho
organizalion fron lho foIIoving Iisl of sub¡ocl aroas:
injcrmciicn c|cui i|c crgcnizciicn ÷ ils producls/sorvicos, slrucluro, nission and
coro vaIuos,
lccrning crrcngcmcnis cn! cppcriuniiics ÷ fornaI lraining, soIf-nanagod Ioarning,
porsonaI dovoIopnonl pIans,
pcrjcrmcncc mcncgcmcni prcccsscs ÷ hov lhoy vorI and lho parls poopIo pIay,
|ccli| cn! scjciq ÷ occupalionaI hoaIlh, provonlion of in¡urios and accidonls,
proloclivo cIolhing, basic safoly ruIos,
ccn!iiicns cj scrticc ÷ hours, hoIidays, Ioavo, sicI pay arrangononls, nalornily/
palornily Ioavo,
pcq cn! |cncjiis ÷ arrangononls for paying saIarios or vagos, lho pay slrucluro,
aIIovancos, dolaiIs of porfornanco, conpolonco- or sIiII-basod pay schonos,
dolaiIs of profil sharing, gainsharing or sharo ovnorship arrangononls, ponsion
and Iifo or nodicaI insuranco schonos,
pclicics, prccc!urcs cn! ucr|ing crrcngcmcnis ÷ oquaI opporlunilios poIicios, ruIos
rogarding soxuaI and raciaI harassnonl and buIIying, discipIinary and griovanco
procoduros, no-snoIing arrangononls,
irc!c unicns cn! cmplcqcc intcltcmcni ÷ lrado union nonborship and rocognilion,
consuIlalivo syslons, agroononls, suggoslion schonos.
CN-1HL-lCß lNDLC1lCN 1kAlNlNC
Mosl nov slarlors olhor lhan lhoso on fornaI lraining schonos viII Ioarn on lho ¡ob,
aIlhough lhis nay bo suppIononlod vilh spociaI off-lho-¡ob coursos lo dovoIop
parlicuIar sIiIIs or InovIodgo. On-lho-¡ob lraining can bo haphazard, inofficionl and
vaslofuI. ApIannod, syslonalic approach is vory dosirabIo. This can incorporalo:
¡ob or sIiIIs anaIysis lo proparo a Ioarning spocificalion,
an iniliaI assossnonl of vhal lho nov slarlor noods lo Ioarn,
lho uso of dosignalod coIIoaguos lo acl as guidos and nonlors ÷ lhoso individuaIs
shouId bo lrainod in hov lo carry oul lhis roIo,
coaching by loan Ioadors or spociaIIy appoinlod and lrainod doparlnonlaI
lrainors,
spociaI assignnonls.
Thoso on-lho-¡ob arrangononls can bo suppIononlod by soIf-nanagod Ioarning
arrangononls, o-Ioarning and by providing advico on Ioarning opporlunilios.
koíouso lrom tho orgunìzutìon
CLNLkAL CCNSlDLkA1lCNS
Tho onpIoynonl roIalionship nay bo ondod voIunlariIy by sonoono noving oIso-
vhoro. Or il nay finish al lho ond of a caroor on rolirononl. IncroasingIy, hovovor,
poopIo aro having lo go invoIunlariIy. Organizalions aro boconing noan as voII as
Ioan. Thoy aro lorninaling lho roIalionship lhrough rodundancy and lhoy aro lighl-
oning up discipIinary procoduros lo handIo nol onIy casos of nisconducl bul aIso
lhoso of incapabiIily ÷ as ¡udgod by lho onpIoyor. Rosourcing poIicios and praclicos
concorning roIoaso fron lho organizalion havo aIso lo covor voIunlary lurnovor
and rolirononl.
Cau·c· of rcdundanc,
Rodundancy, IiIo lho poor vhich il hoIps lo croalo, has aIvays boon vilh us. Al ono
lino, hovovor, il vas nainIy a rosuIl of advorso lrading condilions, ospociaIIy during
linos of rocossion. This is, of courso, sliII a na¡or causo of rodundancy, oxacorbalod by
lho prossuros of gIobaI conpolilion and inlornalionaI rocossion. Bul lho drivo for
conpolilivo advanlago has forcod organizalions lo ´laIo cosl oul of lho businoss' ÷ a
ouphonisn for golling rid of poopIo, onpIoynonl cosls boing lho onos on vhich
conpanios focus, as lhoy aro usuaIIy lho Iargosl oIononl in lhoir cosl slrucluros. Tho
rosuIl has boon doIayoring (oIininaling vhal aro doonod lo bo unnocossary Iayors of

nanagononl and suporvision) and ´dovnsizing' (anolhor ouphonisn) or ovon
´righl-sizing' (a yol noro ogrogious ouphonisn).
Tho inlroduclion of nov lochnoIogy has conlribulod hugoIy lo lho roduclion in lho
nunbor of soni-sIiIIod or unsIiIIod poopIo in officos and on lho shop fIoor. Bul lho
lhrusl for produclivily (noro fron Ioss) and addod vaIuo (incroasing lho incono
dorivod fron lho oxpondiluro on poopIo) has Iod lo noro uso of such indicos as addod
vaIuo por £ of onpIoynonl cosls lo noasuro businoss porfornanco vilh rogard lo lho
uliIizalion of ils ´hunan rosourcos' (lho uso of hunan rosourcos in lhis connoclion
inpIios a noasuro of oxpIoilalion). Businoss procoss ro-onginooring lochniquos aro
dopIoyod as inslrunonls for dovnsizing. BonchnarIing lo oslabIish vhich organiza-
lions aro in facl doing noro vilh Ioss (and if so hov lhoy do il) is anolhor popuIar
vay of proparing lho caso for ´dovnsizing'.
Sc||íng híghcr pcrformancc ·|andard·
Tho prossuro for inprovod porfornanco lo nool noro inlonso gIobaI conpolilion
oxpIains vhy nany organizalions aro solling highor slandards for onpIoyoos and aro
nol rolaining lhoso vho do nol nool lhoso slandards. This nay bo dono lhrough
discipIinary procoduros, bul porfornanco nanagononl procossos aro boing usod lo
idonlify undor-porfornors. IroporIy adninislorod, such procossos viII onphasizo
posilivo inprovononl and dovoIopnonl pIans bul lhoy viII inovilabIy highIighl
voaInossos and, if lhoso aro nol ovorcono, discipIinary procoodings nay bo invoIod.
Voíun|ar, rcíca·c
Of courso, poopIo aIso Ioavo organizalions voIunlariIy lo furlhor lhoir caroors, gol
noro nonoy, novo avay fron lho dislricl or bocauso lhoy aro fod up vilh lho vay
lhoy fooI lhoy havo boon lroalod. Thoy nay aIso laIo oarIy rolirononl (aIlhough lhis is
sonolinos invoIunlary) or voIunloor for rodundancy (undor prossuro or bocauso lhoy
aro boing rovardod financiaIIy for doing so).
\anagíng organí2a|íonaí rcíca·c - |hc roíc of |hc HR func|íon
Tho HR funclion is usuaIIy givon lho lasI of nanaging organizalionaI roIoaso and, in
ils invoIunlary forn, lhis is porhaps lho nosl dislaslofuI, onorous and slrossfuI of aII
lho aclivilios vilh vhich HR poopIo gol invoIvod. In offocl, lho funclion is boing
asIod lo go inlo rovorso. Having sponl a Iol of posilivo offorl on onpIoyoos'
rosourcing and dovoIopnonl, il is nov boing pIacod in vhal appoars lo bo an onliroIy
nogalivo posilion. HR poopIo aro indood acling, hovovor unviIIingIy, as lho agonls of
lho nanagononl vho nado lho ´dovnsizing' docisions or vanl lo Íol sonoono go'
(lhoro aro noro ouphonisns in lhis aroa of nanagononl lhan lho rosl of lho aroas pul
logolhor). Boing pIacod in lhis oflon invidious posilion noans lhal lhoro aro olhicaI
and profossionaI considoralions lo bo laIon inlo accounl, as discussod boIov.
A noro posilivo aspocl of lho funclion's invoIvononl in organizalionaI roIoaso is
lho parl HR poopIo can pIay in oasing rolirononl and anaIysing lho roasons givon by
onpIoyoos for Ioaving lho organizalion so lhal aclion can bo laIon lo corrocl organi-
zalionaI shorlconings.
L|hícaí and profc··íonaí con·ídcra|íon·
HR profossionaIs nay havo no choico aboul laIing parl in a ´dovnsizing' oxorciso ÷
lhal is, if lhoy vish lo ronain vilh lho organizalion. Bul lhoy can and shouId naIo an
inporlanl conlribulion lo nanaging lho procoss in ordor lo nininizo lho dislross and
lrauna lhal badIy handIod rodundancios can croalo, or lho dislross and bad fooIing
lhal unfair or uncoulh discipIinary praclicos can ongondor. Thoy can pross for poIicios
and aclions lhal viII nininizo, ovon if lhoy cannol oIininalo, invoIunlary rodun-
dancy. Thoy can onphasizo lho nood lo handIo rodundancios sonsilivoIy, advising Iino
nanagors on lho approach lhoy adopl, hoIping lhon lo connunicalo lho docision lo
onpIoyoos, advising gonoraIIy on connunicalion vilhin and oulsido lho organiza-
lion and Iaying on counsoIIing and oulpIacononl sorvicos. IrofossionaIIy, lhoy shouId
onsuro lhal lhoro aro propor rodundancy procoduros (incIuding lhoso roIaling lo
consuIlalion) vhich aro in Iino vilh codos of praclico and IogaI roquirononls, and
lhoy nusl soo lhal lhoso praclicos aro foIIovod.
SiniIarIy, a profossionaI approach lo discipIino noans lhal HR spociaIisls shouId
onsuro lhal lhoro aro discipIinary procoduros vhich conforn lo codos of praclico and
laIo inlo accounl IogaI inpIicalions. Thoy havo lo connunicalo lhoso procoduros lo
Iino nanagors, provido lraining in hov lhoy aro appIiod and adviso on lhoir uso.
ElhicaIIy, porsonnoI profossionaIs shouId do lhoir bosl lo soo lhal poopIo aro lroalod
fairIy in accordanco vilh lho principIos of naluraI ¡uslico.
Carccr d,namíc·
Caroor dynanics is lho lorn usod lo doscribo hov caroors progross vilhin organiza-
lions or ovor a vorIing Iifo. As Iong ago as 1984 CharIos Handy forocasl lhal
nany noro poopIo vouId nol bo vorIing in organizalions. Insload lhoro vouId bo
an incroaso in lho nunbor of oulvorIors and subconlraclors faciIilalod by inforna-
lion lochnoIogy. Ho aIso prodiclod lhal lhoro vouId bo noro roquirononls for spociaI-
isls and profossionaIs (InovIodgo vorIors) vilhin organizalions. In Ialor booIs
(og 1|c |mpiq Rcinccci, 1994) ho dovoIopod his concopl of a porlfoIio caroor ÷ poopIo
changing lhoir caroors sovoraI linos during lhoir vorIing Iivos, oilhor bocauso
koíouso lrom tho orgunìzutìon 48l
lhoy havo boon forcod lo Ioavo lhoir ¡obs or bocauso lhoy havo soizod nov opporluni-
lios.
Tho nalionaI cuIluro has changod loo. High IovoIs of unonpIoynonl soon sol lo
conlinuo, noro poopIo aro vorIing for lhonsoIvos (oflon bocauso lhoy havo lo) and
shorl-lorn conlracls aro boconing noro connon, ospociaIIy in lho pubIic soclor.
Sono connonlalors boIiovo lhal organizalions aro no Iongor in lho businoss of
providing Íifo-Iong caroors' as lhoy sIin dovn, doIayor and roIy on a snaII coro of
vorIors. CIoarIy, lhis is laIing pIaco in sono conpanios, bul onpIoyoos do nol aII
nocossariIy soo il lhis vay. Tho IID 1995 survoy oslabIishod lhal 46 por conl of lhoir
rospondonls viovod lhoir curronl ¡ob as a Iong-lorn ono in vhich lhoy inlondod lo
slay. Hovovor, 16 por conl sav lhoir prosonl ¡ob as parl of a caroor or profossion lhal
vouId probabIy laIo lhon lo difforonl conpanios and 15 por conl sav lhoir ¡ob as ono
lhoy vouId Ioavo as il vas nol parl of lhoir caroor.
Crganí2a|íonaí rcíca·c ac|íví|íc·
Againsl lhis bacIground, organizalionaI roIoaso aclivilios as doscribod in lhis
chaplor doaI vilh rodundancy, oulpIacononl, disnissaI, voIunlary lurnovor and
rolirononl.
kLDLNDANCY
´Dovnsizing' is ono of lho nosl donanding aroas of poopIo nanagononl vilh
vhich HR profossionaIs can bocono invoIvod. Thoir rosponsibiIilios, as discussod
boIov, aro lo:
pIan ahoad lo achiovo dovnsizing vilhoul invoIunlary rodundancy,
adviso on and inpIononl olhor nolhods of roducing nunbors or avoiding rodun-
dancy,
oncourago voIunlary rodundancy if olhor nolhods faiI,
dovoIop and appIy a propor rodundancy procoduro,
doaI vilh paynonl arrangononls for roIoasing onpIoyoos,
adviso on nolhods of handIing rodundancios and laIo parl as nocossary lo onsuro
lhal lhoy aro voII nanagod.
HR spociaIisls shouId aIso bo invoIvod in organizing oulpIacononl sorvicos as
doscribod in lho noxl soclion of lhis chaplor.
|ían ahcad
IIanning ahoad noans anlicipaling fuluro roduclions in poopIo noods and aIIoving
naluraI vaslago lo laIo offocl. Aforocasl is noodod of lho anounl by vhich lho vorI-
forco has lo bo roducod and lho IiIoIy Iossos lhrough onpIoyoo lurnovor. Rocruilnonl
can lhon bo frozon al lho righl nononl lo aIIov lho surpIus lo bo absorbod by
vaslago.
Tho probIon is lhal forocasls aro oflon difficuIl lo naIo, and in poriods of high
unonpIoynonl, naluraI vaslago ralos aro IiIoIy lo bo roducod. Il is possibIo lhoroforo
lo ovoroslinalo lho oxlonl lo vhich lhoy viII achiovo lho roquirod roduclion in
nunbors. Il is bosl lo bo possinislic aboul lho lino il viII laIo lo absorb fuluro Iossos
and appIy lho froozo oarIior ralhor lhan Ialor.
IdoaIIy, slops shouId bo laIon lo lransfor poopIo lo olhor, noro socuro ¡obs and
rolrain lhon vhoro possibIo.
U·c o|hcr mc|hod· |o avoíd rcdundanc,
Tho olhor nolhods lhal can bo usod lo avoid or al Ioasl nininizo rodundancy
incIudo, in ordor or sovorily:
caIIing in oulsido vorI,
vilhdraving aII subconlraclod Iabour,
roducing or proforabIy oIininaling ovorlino,
dovoIoping vorIsharing: lvo poopIo doing ono ¡ob on aIlornalo days or spIilling
lho day bolvoon lhon,
roducing lho nunbor of parl-linors, rononboring lhal lhoy aIso havo onpIoy-
nonl righls,
lonporary Iay-offs.
Voíun|ar, rcdundanc,
AsIing for voIunloors ÷ vilh a suilabIo pay-off ÷ is ono vay of roIioving lho nunbor
of conpuIsory rodundancios. Tho anounl noodod lo porsuado poopIo lo go is a
nallor of ¡udgononl. Il cIoarIy has lo bo noro lhan lho slalulory nininun, aIlhough
ono inducononl for onpIoyoos lo Ioavo oarIy nay bo lho boIiof lhal lhoy viII gol
anolhor ¡ob noro oasiIy lhan if lhoy hang on unliI lho Iasl nononl. HoIp can bo
providod lo pIaco lhon oIsovhoro.
Ono of lho disadvanlagos of voIunlary rodundancy is lhal lho vrong poopIo nighl
go, io good vorIors vho aro bosl abIo lo find olhor vorI. Il is sonolinos nocossary lo
go inlo rovorso and offor lhon a spociaI IoyaIly bonus if lhoy agroo lo slay on.
koíouso lrom tho orgunìzutìon 483
Cu|píaccmcn|
OulpIacononl is lho procoss of hoIping rodundanl onpIoyoos lo find olhor vorI or
slarl nov caroors. Il nay invoIvo counsoIIing, vhich can bo providod by firns vho
spociaIizo in lhis aroa.
Rcdundanc, proccdurc
If you aro forcod lo rosorl lo rodundancy, lho probIons viII bo roducod if lhoro is an
oslabIishod procoduro lo foIIov. This procoduro shouId havo lhroo ains:
lo lroal onpIoyoos as fairIy as possibIo,
lo roduco hardship as nuch as possibIo,
lo prolocl nanagononl's abiIily lo run lho businoss offoclivoIy.
Thoso ains aro nol aIvays conpalibIo. Managononl viII vanl lo rolain ils Ioy and
noro offoclivo vorIors. Trado unions, on lho olhor hand, nay vanl lo adopl lho
principIo of Iasl in, firsl oul, irrospoclivo of lho vaIuo of oach onpIoyoo lo lho
conpany. An oxanpIo of a procoduro is givon in Chaplor 58.
Handííng rcdundanc,
Tho firsl slop is lo onsuro lhal lho rodundancy soIoclion poIicy has boon appIiod fairIy.
Il is aIso nocossary lo naIo corlain lhal lho IogaI roquirononls for consuIlalion havo
boon nol. Tho infornalion lo bo prosonlod al any consuIlalivo noolings viII nood lo
covor lho roasons for lho rodundancy, vhal slops lho conpany has laIon or viII laIo
lo nininizo lho probIon and lho rodundancy pay arrangononls. An indicalion
shouId aIso bo givon of lho lino scaIo. Tho basis for soIocling poopIo for rodundancy
as sol oul in lho rodundancy poIicy shouId bo confirnod.
Il viII lhon bo nocossary lo naIo a gonoraI announcononl if il is a Iargo-scaIo
rodundancy or inforn a unil or doparlnonl if il is on a snaIIor scaIo. Il is bosl
if lho announcononl is nado in porson by an oxoculivo or nanagor vho is Inovn
lo lho individuaIs concornod. Il shouId Iol ovoryono Inov aboul lho difficuIlios
lho organizalion has boon facing and lho slops lhal havo boon laIon lo ovorcono
lhon. Tho announcononl shouId aIso indicalo in gonoraI hov lho rodundancy
viII laIo pIaco, incIuding arrangononls for individuaIs lo bo infornod (as soon
as possibIo aflor lho gonoraI announcononl), paynonl arrangononls and, inpor-
lanlIy, hoIp lo lhoso affoclod in finding vorI lhrough oulpIacononl counsoIIing
or a ´¡ob shop'.
If il is a fairIy Iargo rodundancy, lho nodia viII havo lo bo infornod, bul onIy aflor
lho inlornaI announcononl. Apross roIoaso viII nood lo bo proparod, again indicaling
vhy lho rodundancy is laIing pIaco and hov lho conpany inlonds lo lacIIo il.
Tho noxl slop is lo inforn lhoso affoclod. Il is vory inporlanl lo onsuro lhal ovory-
lhing possibIo is dono lo onsuro lhal lho inlorviovs vilh lhoso vho aro lo bo nado
rodundanl aro handIod sonsilivoIy. Managors shouId bo givon guidanco and, possibIy,
lraining on hov lo doaI vilh vhal is sonolinos caIIod (anolhor ouphonisn) a
´roIoaso inlorviov'. Il nay voII bo advisabIo for a nonbor of lho porsonnoI funclion lo
bo prosonl al aII inlorviovs, aIlhough il is bosl for lho Iino nanagor lo conducl lhon.
Advanco infornalion shouId bo oblainod on lho roasons vhy individuaIs voro
soIoclod and hov lhoy nay roacl. Thoir porsonaI circunslancos shouId aIso bo
chocIod in caso lhoro aro any spociaI circunslancos vilh vhich lho inlorviovor
shouId bo faniIiar.
Tho inlorviov ilsoIf shouId oxpIain as gonlIy as possibIo vhy lho individuaI has
boon soIoclod for rodundancy and hov il viII affocl hin or hor (paynonl, lining olc).
Tino shouId bo aIIovod lo doscribo lho hoIp lhal lho organizalion viII provido lo find
anolhor ¡ob and lo gol iniliaI roaclions fron lho individuaI vhich nay provido guid-
anco on lho noxl slops.
CL1lLACLMLN1
OulpIacononl is aboul hoIping rodundanl onpIoyoos lo find aIlornalivo vorI. Il
invoIvos assisling individuaIs lo copo vilh lho lrauna of rodundancy lhrough coun-
soIIing, hoIping lhon lo rodofino lhoir caroor and onpIoynonl ob¡oclivos and lhon
providing lhon vilh InovIodgoabIo bul sonsilivo guidanco on hov lo allain lhoso
ob¡oclivos.
 
HoIp nay bo providod by lho organizalion on an individuaI basis, bul in Iargor-scaIo
rodundancios ´¡ob shops' can bo sol up. Tho poopIo vho slaff lhoso scour lho lravoI-lo-
vorI aroa sooIing ¡ob opporlunilios for lhoso vho aro boing nado rodundanl. This is
oflon dono by loIophono. Furlhor hoIp nay bo givon by nalching poopIo lo suilabIo
¡obs, arranging inlorviovs, lraining in CV proparalion and inlorviov lochniquos. }ob
shops aro sonolinos slaffod by nonbors of lho porsonnoI funclion (lho vrilor
succossfuIIy organizod ono in an aorospaco firn sono yoars ago). AIlornalivoIy, lho
organizalion nay asI a firn of oulpIacononl consuIlanls lo sol up and run lho ¡ob
shop and provido any olhor counsoIIing or lraining sorvicos lhal nay bo roquirod.
Cu|píaccmcn| con·uí|anc, ·crvícc·
As doscribod by Eggorl (1991), lho oulpIacononl procoss usuaIIy laIos pIaco aIong lho
foIIoving Iinos:
iniliaI counsoIIing ÷ gaining biographicaI dala and discussing innodialo issuos of
concorn,
achiovononl Iisl ÷ cIionls vrilo up aII lho achiovononls lhoy can lhinI of lo do
vilh lhoir caroor,
sIiIIs invonlory ÷ cIionls dovoIop fron lho achiovononl Iisl a porsonaI porlfoIio of
saIoabIo sIiIIs,
porsonaI slalononl ÷ cIionls dovoIop a porsonaI slalononl in 20 lo 30 vords aboul
vhal is boing prosonlod lo lho ¡ob narIol,
porsonaI succoss invonlory ÷ lhoso roconl or approprialo succossos lhal can bo
quanlifiod and vhich supporl lho porsonaI profiIo,
lhroo ¡obs ÷ idonlificalion of lhroo possibIo lypos of ¡ob lhal can bo soarchod
for,
psychoIogicaI assossnonl ÷ dovoIopnonl of a porsonaIily profiIo vilh a
psychoIogisl,
dovoIopnonl and agroononl of a CV (soo boIov),
idonlify ¡ob narIol opporlunilios,
praclico inlorviov,
pIan ¡ob soarch canpaign.
CV·
CVs provido lho basic infornalion for ¡ob soarching and an oulpIacononl consuI-
lanl viII guido individuaIs on hov lo vrilo lhoir CVs. Tho lradilionaI CV usos
vhal Eggorl (1991) caIIs lho ´lonbslono' approach bocauso il roads IiIo an obiluary.
Il sols oul porsonaI dolaiIs and oducalion and onpIoynonl hislory in chrono-
IogicaI ordor.
OulpIacononl consuIlanls profor vhal lhoy caII lho áchiovononl CV' vhich is
slruclurod on lho principIo of a saIos brochuro, providing infornalion in sinpIo, posi-
livo slalononls soquoncod for lho roador's convonionco. Tho CV Iisls lho nosl inpor-
lanl aroas of oxporionco in rovorso chronoIogicaI ordor and sols oul for oach posilion a
Iisl of achiovononls boginning vilh such vords as ´sol up', ´dovoIopod', ínlroducod',
íncroasod', ´roducod' and óslabIishod'. This is dosignod lo gonoralo lho lhoughl in
lho roador's nind lhal íf lho individuaI can do il for lhon, ho or sho viII bo abIo lo do
il for us'. Tho caroor achiovononl hislory is foIIovod by dolaiIs of profossionaI quaIi-
ficalions and oducalion, and porsonaI infornalion.
Scícc|íng an ou|píaccmcn| con·uí|an|
Thoro aro sono highIy ropulabIo oulpIacononl consuIlanls around, lhoro aro aIso
sono covboys. Il is advisabIo onIy lo uso firns lhal foIIov a codo of praclico such
as lhal producod by lho CIID or lho Caroor DovoIopnonl and OulpIacononl Associa-
lion.
DlSMlSSAL
Thc ícgaí framcvor|
Tho IogaI franovorI is providod by onpIoynonl slalulory and caso Iav roIaling lo
unfair disnissaI. Undor curronl UK onpIoynonl IogisIalion, an onpIoyoo vho has
boon onpIoyod for ono yoar or noro has lho righl nol lo bo unfairIy disnissod.
ConpIainls by an onpIoyoo lhal ho or sho has boon unfairIy disnissod aro hoard by
onpIoynonl lribunaIs.
Dcfinition of dismissaI
LogaIIy, disnissaI laIos pIaco vhon:
lho onpIoyor lorninalos lho onpIoyoo's conlracl vilh or vilhoul nolico ÷ a
conlracl can bo lorninalod as a rosuIl of a donolion or lransfor as voII as
disnissaI,
lho onpIoyoo lorninalos lho conlracl (rosigns) vilh or vilhoul nolico by roason of
lho onpIoyor's bohaviour in lho sonso lhal lho onpIoyor's conducl vas such lhal
lho onpIoyoo couId nol bo oxpoclod lo carry on ÷ lhis is lornod ćonslruclivo
disnissaI',
lho onpIoyoo is onpIoyod undor a fixod-lorn conlracl of ono yoar or noro vhich
is nol ronovod by lho onpIoyor vhon il oxpiros,
an onpIoyoo rosigns vhiIo undor nolico foIIoving disnissaI,
an onpIoyoo is unroasonabIy rofusod vorI aflor prognancy.
FundamcntaI qucstions
Tho IogisIalion Iays dovn lhal onpIoynonl lribunaIs shouId oblain ansvors lo lvo
fundanonlaI quoslions vhon doaIing vilh unfair disnissaI casos:
1. Was lhoro sufficionl roason for lho disnissaI, io vas il fair or unfair`
2. Did lho onpIoyor acl roasonabIy in lho circunslancos`
Fair dismissaI
DisnissaIs nay bo hoId by an onpIoynonl lribunaI lo bo fair if lho principaI roason
vas ono of lho foIIoving:
incapabiIily, vhich covors lho onpIoyoo's sIiII, apliludo, hoaIlh and physicaI or
nonlaI quaIilios,
nisconducl,
faiIuro lo havo quaIificalions roIovanl lo lho ¡ob,
a IogaI faclor lhal provonls lho onpIoyoo fron conlinuing vorI,
rodundancy ÷ vhoro lhis has laIon pIaco in accordanco vilh a cuslonary or
agrood rodundancy procoduro,
lho onpIoyoo broIo or ropudialod his or hor conlracl by going on slriIo ÷ as Iong
as ho or sho vas nol singIod oul for lhis lroalnonl, io aII slriIing onpIoyoos voro
lroalod aIiIo and no soIoclivo ro-ongagononl looI pIaco,
lho onpIoyoo vas laIing parl in an unofficiaI slriIo or sono olhor forn of indus-
lriaI aclion,
sono olhor subslanliaI roason of a Iind lhal vouId ¡uslify lho disnissaI of an
onpIoyoo hoIding lho posilion lhal lho onpIoyoo hoId.
Unfair dismissaI
DisnissaIs nay bo unfair if:
lho onpIoyor has faiIod lo shov lhal lho principaI roason vas ono of lho adnis-
sibIo roasons as slalod abovo, or if lho disnissaI vas nol roasonabIo in lho circun-
slancos (soo boIov),
a conslruclivo disnissaI has laIon pIaco,
lhoy aro in broach of a cuslonary or agrood rodundancy procoduro, and lhoro aro
no vaIid roasons for doparling fron lhal procoduro.
Tho onus of proof is on onpIoyors lo shov lhal lhoy had aclod roasonabIy in lroaling
lho roason for disnissaI as sufficionl. Tho onpIoynonl lribunaI is roquirod, in consid-
oring lho circunslancos, lo laIo inlo accounl lho sizo and adninislralivo rosourcos of
lho onpIoyor's undorlaIing.
kcasonabIc in tbc circumstanccs
Evon if lho onpIoyor can shov lo a lribunaI lhal lhoro vas good roason lo disniss lho
onpIoyoo (io if il cIoarIy foII inlo ono of lho calogorios Iislod abovo, and lho dogroo of
incapabiIily or nisconducl vas sufficionl lo ¡uslify disnissaI), lho lribunaI sliII has lo
docido vholhor or nol lho onpIoyor aclod in a roasonabIo vay al lho lino of
disnissaI. Tho principIos dofining ´roasonabIo' bohaviour on lho parl of an onpIoyor
aro as foIIovs:
EnpIoyoos shouId bo infornod of lho naluro of lho conpIainl againsl lhon.
Tho onpIoyoo shouId bo givon lho chanco lo oxpIain.
Tho onpIoyoo shouId bo givon lho opporlunily lo inprovo, oxcopl in parlicuIarIy
gross casos of incapabiIily or nisconducl.
EnpIoyoos shouId bo aIIovod lo appoaI.
Tho onpIoyoo shouId bo varnod of lho consoquoncos in lho shapo of disnissaI if
spocifiod inprovononls do nol laIo pIaco.
Tho onpIoyor's docision lo disniss shouId bo basod on sufficionl ovidonco.
Tho onpIoyor shouId laIo any niligaling circunslancos inlo accounl.
Tho onpIoyor shouId acl in good failh.
Tho offonco or nisbohaviour shouId noril lho ponaIly of disnissaI ralhor lhan
sono Iossor ponaIly.
A good discipIinary procoduro (soo lho oxanpIo in Chaplor 58) viII incIudo arrango-
nonls for infornaI and fornaI varnings and provisions lo onsuro lhal lho olhor
aspocls of discipIino aro handIod roasonabIy.

EnpIoynonl lribunaIs lhal find lhal a disnissaI vas unfair can naIo an ordor for
roinslalononl or ro-ongagononl and slalo lho lorns on vhich lhis shouId laIo pIaco.
Tho lribunaI can considor lho possibiIily of conponsalion for unfair disnissaI, bul
onIy aflor lho possibiIily of roinslalononl or ro-ongagononl has boon oxaninod.
Approach |o handííng dí·cípíínar, ca·c·
Tho approach shouId bo govornod by lho foIIoving lhroo principIos of naluraI ¡uslico:
1. IndividuaIs shouId Inov lho slandards of porfornanco lhoy aro oxpoclod lo
achiovo and lho ruIos lo vhich lhoy aro oxpoclod lo conforn.
2. Thoy shouId bo givon a cIoar indicalion of vhoro lhoy aro faiIing or vhal ruIos
havo boon broIon.
3. Excopl in casos of gross nisconducl, lhoy shouId bo givon an opporlunily lo
inprovo boforo discipIinary aclion is laIon.
Thoro shouId bo a discipIinary procoduro vhich is undorslood and appIiod by aII
nanagors and loan Ioadors. Tho procoduro shouId provido for lho foIIoving lhroo-
slago approach boforo discipIinary aclion is laIon:
1. infornaI oraI varnings,
2. fornaI oraI varnings, vhich, in sorious casos, nay aIso bo nado in vriling ÷
lhoso varnings shouId sol oul lho naluro of lho offonco and lho IiIoIy conso-
quoncos of furlhor offoncos,
3. finaI vrillon varnings, vhich shouId conlain a slalononl lhal any rocurronco
vouId Ioad lo susponsion, disnissaI or sono olhor ponaIly.
Tho procoduro shouId provido for onpIoyoos lo bo acconpaniod by a coIIoaguo
or onpIoyoo roprosonlalivo al any hoaring. Thoro shouId aIso bo an appoaI syslon
and a Iisl of offoncos lhal conslilulo gross nisconducl and nay lhoroforo Ioad lo
inslanl disnissaI. Managors and suporvisors shouId bo loId vhal aulhorily lhoy
havo lo laIo discipIinary aclion. Il is advisabIo lo havo aII finaI varnings and aclions
approvod by a highor aulhorily. In casos of gross nisconducl, loan Ioadors and
¡unior nanagors shouId bo givon lho righl lo suspond, if highor aulhorily is nol
innodialoIy avaiIabIo, bul nol lo disniss. Tho inporlanco of oblaining and rocording
lho facls shouId bo onphasizod. Managors shouId aIvays havo a coIIoaguo vilh lhon
vhon issuing a fornaI varning and shouId naIo a nolo lo fiIo of vhal vas said on
lho spol.
VCLLN1AkY LLAVLkS
Whon poopIo Ioavo of lhoir ovn voIilion, lvo aclions nay bo laIon: conducling oxil
inlorviovs and anaIysing roasons for lurnovor as doscribod in Chaplor 25.
kL1lkLMLN1
Rolirononl is a na¡or chango and shouId bo proparod for. Rolirononl poIicios nood lo
spocify:
vhon poopIo aro duo lo roliro,
lho circunslancos, if any, in vhich lhoy can vorI on boyond lhoir nornaI roliro-
nonl dalo,
lho provision of pro-rolirononl lraining,
lho provision of advico lo poopIo aboul lo roliro.
Iro-rolirononl lraining can covor such nallors as financo, insuranco, Slalo ponsion
righls, hoaIlh, vorIing oilhor for nonoy or in a voIunlary organizalion during roliro-
nonl and sourcos of advico and hoIp. Tho Iallor can bo suppIiod by such charilios as
HoIp lho Agod and Ago Concorn.
koíouso lrom tho orgunìzutìon 49l
lorlormunco
munugomont
Pcrjcrmcncc mcncgcmcni prcccsscs |ctc |cccmc prcmincni in rcccni qccrs cs mccns
cj prcti!ing c mcrc inicgrcic! cn! ccniinucus cpprccc| ic i|c mcncgcmcni cj pcrjcr-
mcncc i|cn ucs prcti!c! |q prcticus isclcic! cn! cjicn inc!c¡ucic mcrii rciing cr
pcrjcrmcncc cpprciscl sc|cmcs. Pcrjcrmcncc mcncgcmcni is |csc! cn i|c principlc cj
mcncgcmcni |q cgrccmcni cr ccnircci rci|cr i|cn mcncgcmcni |q ccmmcn!. li
cmp|csizcs !ctclcpmcni cn! i|c iniiiciicn cj sclj-mcncgc! lccrning plcns cs ucll cs
i|c inicgrciicn cj in!iti!ucl cn! ccrpcrcic c|jcciitcs. li ccn, in jcci, plcq c mcjcr rclc
in prcti!ing jcr cn inicgrcic! cn! cc|crcni rcngc cj |umcn rcscurcc mcncgcmcni
prcccsscs u|ic| crc muiucllq suppcriitc cn! ccniri|uic cs c u|clc ic imprcting crgc-
nizciicncl cjjcciitcncss.
ln i|is pcri, C|cpicr 32 cctcrs i|c jun!cmcnicl ccnccpis cj pcrjcrmcncc mcncgc-
mcni. 1|c prcciicc cj pcrjcrmcncc mcncgcmcni is !cscri|c! in C|cpicr 33 cn! i|c
pcri is ccmplcic! in C|cpicr 34 |q c rcticu cj i|c prcccss cj 3o0-!cgrcc jcc!|cc| cs c
mulii-scurcc mci|c! cj csscssing pcrjcrmcncc.
 
1ho busìs ol porlormunco
munugomont
In lhis chaplor lho naluro, ains, characlorislics, concorns and guiding principIos of
porfornanco nanagononl aro doscribod. In addilion, lho difforoncos bolvoon porfor-
nanco appraisaI and porfornanco nanagononl aro oxaninod and roforonco is nado
lo lho viovs of a soIoclion of praclilionors on porfornanco nanagononl.
lLklCkMANCL MANACLMLN1 DLllNLD
Iorfornanco nanagononl can bo dofinod as a syslonalic procoss for inproving
organizalionaI porfornanco by dovoIoping lho porfornanco of individuaIs and
loans. Il is a noans of golling bollor rosuIls by undorslanding and nanaging porfor-
nanco vilhin an agrood franovorI of pIannod goaIs, slandards and conpoloncy
roquirononls. Irocossos oxisl for oslabIishing sharod undorslanding aboul vhal is lo
bo achiovod, and for nanaging and dovoIoping poopIo in a vay lhal incroasos lho
probabiIily lhal il  bo achiovod in lho shorl and Iongor lorn. Il focusos poopIo on
doing lho righl lhings by cIarifying lhoir goaIs. Il is ovnod and drivon by Iino
nanagononl.

AlMS Cl lLklCkMANCL MANACLMLN1
Tho ovoraII ain of porfornanco nanagononl is lo oslabIish a high porfornanco
cuIluro in vhich individuaIs and loans laIo rosponsibiIily for lho conlinuous
inprovononl of businoss procossos and for lhoir ovn sIiIIs and conlribulions vilhin
a franovorI providod by offoclivo Ioadorship.
SpocificaIIy, porfornanco nanagononl is aboul aIigning individuaI ob¡oclivos lo
organizalionaI ob¡oclivos and onsuring lhal individuaIs uphoId corporalo coro vaIuos.
Il providos for oxpoclalions lo bo dofinod and agrood in lorns of roIo rosponsibiIilios
and accounlabiIilios (oxpoclod lo do), sIiIIs (oxpoclod lo havo) and bohaviours
(oxpoclod lo bo). Tho ain is lo dovoIop lho capacily of poopIo lo nool and oxcood
oxpoclalions and lo achiovo lhoir fuII polonliaI lo lho bonofil of lhonsoIvos and lho
organizalion. InporlanlIy, porfornanco nanagononl is concornod vilh onsuring lhal
lho supporl and guidanco poopIo nood lo dovoIop and inprovo aro roadiIy avaiIabIo.
Tho foIIoving aro lho ains of porfornanco nanagononl as oxprossod by a varioly
of organizalions (sourco IRS, 2003):
Enpovoring, nolivaling and rovarding onpIoyoos lo do lhoir bosl. Armsircng
Wcrl! ln!usirics
Focusing onpIoyoo's lasIs on lho righl lhings and doing lhon righl. AIigning
ovoryono's individuaI goaIs lo lho goaIs of lho organizalion. |li Iillq c Cc
IroaclivoIy nanaging and rosourcing porfornanco againsl agrood accounlabiIi-
lios and ob¡oclivos. lCl Pcinis
Tho procoss and bohaviours by vhich nanagors nanago lho porfornanco of lhoir
poopIo lo doIivor a high-achioving organizalion. Sicn!cr! C|cricrc! 8cn|
Maxinizing lho polonliaI of individuaIs and loans lo bonofil lhonsoIvos and lho
organizalion, focusing on achiovononl of lhoir ob¡oclivos. Wcsi 8rcmuic| 8uil!ing
Scciciq
CHAkAC1LklS1lCS Cl lLklCkMANCL MANACLMLN1
Iorfornanco nanagononl is a pIannod procoss of vhich lho prinary oIononls aro
agroononl, noasurononl, foodbacI, posilivo roinforcononl and diaIoguo. Il is
concornod vilh noasuring oulpuls in lho shapo of doIivorod porfornanco conparod
vilh oxpoclalions oxprossod as ob¡oclivos. In lhis rospocl, il focusos on largols, slan-
dards and porfornanco noasuros or indicalors. Il is basod on lho agroononl of roIo
roquirononls, ob¡oclivos and porfornanco inprovononl and porsonaI dovoIopnonl
pIans. Il providos lho solling for ongoing diaIoguos aboul porfornanco lhal invoIvos
496 lorlormunco munugomont
lho ¡oinl and conlinuing roviov of achiovononls againsl ob¡oclivos, roquirononls and
pIans.
Bul il is aIso concornod vilh inpuls and vaIuos. Tho inpuls aro lho InovIodgo,
sIiIIs and bohaviours roquirod lo produco lho oxpoclod rosuIls. DovoIopnonlaI noods
aro idonlifiod by dofining lhoso roquirononls and assossing lho oxlonl lo vhich lho
oxpoclod IovoIs of porfornanco havo boon achiovod lhrough lho offoclivo uso of
InovIodgo and sIiIIs and lhrough approprialo bohaviour lhal uphoIds coro vaIuos.
Iorfornanco nanagononl is a conlinuous and fIoxibIo procoss, vhich invoIvos
nanagors and lhoso vhon lhoy nanago acling as parlnors vilhin a franovorI lhal
sols oul hov lhoy can bosl vorI logolhor lo achiovo lho roquirod rosuIls. Il is basod
on lho principIo of nanagononl by conlracl and agroononl ralhor lhan nanago-
nonl by connand. Il roIios on consonsus and co-oporalion ralhor lhan conlroI or
coorcion.
Iorfornanco nanagononl focusos on fuluro porfornanco pIanning and inprovo-
nonl ralhor lhan on rolrospoclivo porfornanco appraisaI. Il funclions as a conlinuous
and ovoIulionary procoss, in vhich porfornanco inprovos ovor lino. Il providos lho
basis for roguIar and froquonl diaIoguos bolvoon nanagors and individuaIs aboul
porfornanco and dovoIopnonl noods. Il is nainIy concornod vilh individuaI porfor-
nanco bul il can aIso bo appIiod lo loans. Tho onphasis is on dovoIopnonl, aIlhough
porfornanco nanagononl is an inporlanl parl of lho rovard syslon lhrough lho
provision of foodbacI and rocognilion and lho idonlificalion of opporlunilios for
grovlh. Il nay bo associalod vilh porfornanco or conlribulion-roIalod pay, bul ils
dovoIopnonlaI aspocls aro nuch noro inporlanl.
LNDLkS1ANDlNC lLklCkMANCL MANACLMLN1
Thoro aro fivo issuos lhal nood lo bo considorod lo oblain a fuII undorslanding of
porfornanco nanagononl:
1. lho noaning of porfornanco,
2. lho significanco of vaIuos,
3. lho noaning of aIignnonl,
4. nanaging oxpoclalions,
5. lho significanco of discrolionary bohaviour.
Thc mcaníng of pcrformancc
Iorfornanco is oflon dofinod sinpIy in oulpul lorns ÷ lho achiovononl of quanlifiod
1ho busìs ol porlormunco munugomont 497
ob¡oclivos. Bul porfornanco is a nallor nol onIy of vhal poopIo achiovo bul hov lhoy
achiovo il. 1|c Oxjcr! |nglis| Diciicncrq confirns lhis by incIuding lho phraso
ćarrying oul' in ils dofinilion of porfornanco: ´Tho acconpIishnonl, oxoculion,
carrying oul, vorIing oul of anylhing ordorod or undorlaIon.' High porfornanco
rosuIls fron approprialo bohaviour, ospociaIIy discrolionary bohaviour, and lho offoc-
livo uso of lho roquirod InovIodgo, sIiIIs and conpoloncios. Iorfornanco nanago-
nonl nusl oxanino hov rosuIls aro allainod bocauso lhis providos lho infornalion
nocossary lo considor vhal noods lo bo dono lo inprovo lhoso rosuIls.
Tho concopl of porfornanco has boon oxprossod by Brunbrach (1988) as foIIovs:
lorlormunco mouns both bohuvìours und rosuíts. ßohuvìours omunuto lrom tho
porlormor und trunslorm porlormunco lrom ubstructìon to uctìon. Not ¡ust tho ìnstru-
monts lor rosuíts, bohuvìours uro uíso outcomos ìn thoìr ovn rìght - tho product ol
montuí und physìcuí ollort uppíìod to tusks - und cun bo ¡udgod upurt lrom rosuíts.
This dofinilion of porfornanco Ioads lo lho concIusion lhal vhon nanaging porfor-
nanco bolh inpuls (bohaviour) and oulpuls (rosuIls) nood lo bo considorod. Il is nol a
quoslion of sinpIy considoring lho achiovononl of largols, as usod lo happon in
ńanagononl by ob¡oclivos' schonos. Conpoloncy faclors nood lo bo incIudod in lho
procoss. This is lho so-caIIod ńixod nodoI' of porfornanco nanagononl, vhich
covors lho achiovononl of oxpoclod IovoIs of conpolonco as voII as ob¡oclivo solling
and roviov.
|crformancc managcmcn| and vaíuc·
Iorfornanco is aboul uphoIding lho vaIuos of lho organizalion ÷ Íiving lho vaIuos'
(an approach lo vhich nuch inporlanco is allachod al Slandard Charlorod BanI).
This is an aspocl of bohaviour bul il focusos on vhal poopIo do lo roaIizo coro vaIuos
such as concorn for quaIily, concorn for poopIo, concorn for oquaI opporlunily and
oporaling olhicaIIy. Il noans convorling ospousod vaIuos inlo vaIuos in uso: onsuring
lhal lho rholoric boconos roaIily.
Thc mcaníng of aíígnmcn|
Ono of lho nosl fundanonlaI purposos of porfornanco nanagononl is lo aIign indi-
viduaI and organizalionaI ob¡oclivos. This noans lhal ovorylhing poopIo do al vorI
Ioads lo oulconos lhal furlhor lho achiovononl of organizalionaI goaIs. This purposo
vas voII oxprossod by FIolchor (1993), vho vrolo:
1ho rouí concopt ol porlormunco munugomont ìs ussocìutod vìth un upprouch to
croutìng u shurod vìsìon ol tho purposo und uìms ol tho orgunìzutìon, hoípìng ouch
ompíoyoo undorstund und rocognìzo thoìr purt ìn contrìbutìng to thom, und ìn so doìng,
munugo und onhunco tho porlormunco ol both ìndìvìduuís und tho orgunìzutìon.
AIignnonl can bo allainod by a cascading procoss so lhal ob¡oclivos fIov dovn fron
lho lop and al oach IovoI loan or individuaI ob¡oclivos aro dofinod in lho Iighl of
highor-IovoI goaIs. Bul il shouId aIso bo a bollon-up procoss, individuaIs and loans
boing givon lho opporlunily lo fornuIalo lhoir ovn goaIs vilhin lho franovorI
providod by lho dofinod ovoraII purposo, slralogy and vaIuos of lho organizalion.
Ob¡oclivos shouId bo  nol sol, and lhis agroononl shouId bo roachod lhrough lho
opon diaIoguos lhal laIo pIaco bolvoon nanagors and individuaIs lhroughoul lho
yoar. In olhor vords, lhis noods lo bo soon as a parlnorship in vhich rosponsibiIily is
sharod and nuluaI oxpoclalions aro dofinod.
\anagíng cxpcc|a|íon·
Iorfornanco nanagononl is ossonliaIIy aboul lho nanagononl of oxpoclalions. Il
croalos a sharod undorslanding of vhal is roquirod lo inprovo porfornanco and hov
lhis viII bo achiovod by cIarifying and agrooing vhal poopIo aro oxpoclod lo do and
hov lhoy aro oxpoclod lo bohavo. Il usos lhoso agroononls as lho basis for noasuro-
nonl and roviov, and lho proparalion of pIans for porfornanco inprovononl and
dovoIopnonl.
|crformancc managcmcn| and dí·crc|íonar, bchavíour
Iorfornanco nanagononl is concornod vilh lho oncouragononl of produclivo
discrolionary bohaviour. As dofinod by IurcoII and his loan al Balh Univorsily,
SchooI of Managononl (2003): ´Discrolionary bohaviour rofors lo lho choicos lhal
poopIo naIo aboul hov lhoy carry oul lhoir vorI and lho anounl of offorl, caro,
innovalion and produclivo bohaviour lhoy dispIay.' IurcoII and his loan, vhiIo
rosoarching lho roIalionship bolvoon HR praclico and businoss porfornanco, nolod
lhal ´lho oxporionco of succoss soon in porfornanco oulconos hoIps roinforco posilivo
alliludos'.
CLlDlNC lklNCllLLS Cl lLklCkMANCL
MANACLMLN1
Egan (1995) proposos lho foIIoving guiding principIos for porfornanco nanagononl:
1ho busìs ol porlormunco munugomont 499
Most ompíoyoos vunt dìroctìon, lroodom to got thoìr vork dono, und oncourugomont
not controí. 1ho porlormunco munugomont systom shouíd bo u controí systom oníy by
oxcoptìon. 1ho soíutìon ìs to muko ìt u coííuborutìvo dovoíopmont systom, ìn tvo vuys.
lìrst, tho ontìro porlormunco munugomont procoss - couchìng, counsoííìng, loodbuck,
truckìng, rocognìtìon, und so lorth - shouíd oncourugo dovoíopmont. ldouííy, toum
mombors grov und dovoíop through thoso ìntoructìons. Socond, vhon munugors und
toum mombors usk vhut thoy nood to bo ubío to do to do bìggor und bottor thìngs, thoy
movo to strutogìc dovoíopmont.
lLklCkMANCL AllkAlSAL AND lLklCkMANCL
MANACLMLN1
Il is sonolinos assunod lhal porfornanco appraisaI is lho sano lhing as porfornanco
nanagononl. Bul lhoro aro significanl difforoncos. Iorfornanco appraisaI can bo
dofinod as lho fornaI assossnonl and raling of individuaIs by lhoir nanagors al,
usuaIIy, an annuaI roviov nooling. In conlrasl, porfornanco nanagononl is a conlin-
uous and nuch vidor, noro conprohonsivo and noro naluraI procoss of nanago-
nonl lhal cIarifios nuluaI oxpoclalions, onphasizos lho supporl roIo of nanagors
vho aro oxpoclod lo acl as coachos ralhor lhan ¡udgos, and focusos on lho fuluro.
Iorfornanco appraisaI has boon discrodilod bocauso loo oflon il has boon oporalod
as a lop-dovn and IargoIy buroaucralic syslon ovnod by lho HR doparlnonl ralhor
lhan by Iino nanagors. Il has boon porcoivod by nany connonlalors such as TovnIoy
(1989) as soIoIy a noans of oxorcising nanagoriaI conlroI. Iorfornanco appraisaI
londod lo bo bacIvard IooIing, conconlraling on vhal had gono vrong, ralhor lhan
IooIing forvard lo fuluro dovoIopnonl noods. Iorfornanco appraisaI schonos
oxislod in isoIalion. Thoro vas IillIo or no IinI bolvoon lhon and lho noods of lho
businoss. Lino nanagors havo froquonlIy ro¡oclod porfornanco appraisaI schonos as
boing lino-consuning and irroIovanl. EnpIoyoos havo rosonlod lho suporficiaI
naluro vilh vhich appraisaIs havo boon conduclod by nanagors vho IacI lho sIiIIs
roquirod, lond lo bo biasod and aro sinpIy going lhrough lho nolions. As Arnslrong
and MurIis (1998) assorl, porfornanco appraisaI loo oflon dogonoralod inlo á
dishonosl annuaI riluaI'. Tho difforoncos bolvoon lhon as sunnod up by Arnslrong
and Baron (2004) aro sol oul in TabIo 32.1.
VlL\S CN lLklCkMANCL MANACLMLN1
Tho rosoarch conduclod by lho CIID in 2003 (Arnslrong and Baron, 2004) oIicilod lho
foIIoving viovs fron praclilionors aboul porfornanco nanagononl:
Wo oxpocl Iino nanagors lo rocognizo il (porfornanco nanagononl) as a usofuI
conlribulion lo lho nanagononl of lhoir loans ralhor lhan a choro. (Ccniricc)
Managing porfornanco is aboul coaching, guiding, nolivaling and rovarding
coIIoaguos lo hoIp unIoash polonliaI and inprovo organizalionaI porfornanco.
Whoro il vorIs voII il is buiIl on oxcoIIonl Ioadorship and high quaIily coaching
roIalionships bolvoon nanagors and loans. (Hclijcx 8OS)
Iorfornanco nanagononl is dosignod lo onsuro lhal vhal vo do is guidod by our
vaIuos and is roIovanl lo lho purposos of lho organizalion. (Scciiis| Pcrlicmcni)
Tho rosoarch conduclod by lho CIID in 1997 (Arnslrong and Baron, 1998) oblainod
lho foIIoving addilionaI viovs fron praclilionors aboul porfornanco nanagononl:
Ananagononl looI vhich hoIps nanagors lo nanago.
Drivon by corporalo purposo and vaIuos.
To oblain soIulions lhal vorI.
OnIy inloroslod in lhings you can do sonolhing aboul and gol a visibIo inprovo-
nonl.
Focus on changing bohaviour ralhor lhan paporvorI.
Il's aboul hov vo nanago poopIo ÷ il's nol a syslon.
1ho busìs ol porlormunco munugomont 50l
Fcrformancc appraisaI Fcrformancc managcmcnt
1op-dovn ussossmont loìnt procoss through dìuíoguo
Annuuí uppruìsuí mootìng Contìnuous rovìov vìth ono or moro lormuí
rovìovs
Lso ol rutìngs kutìngs íoss common
Monoíìthìc systom líoxìbío procoss
locus on quuntìlìod ob¡octìvos locus on vuíuos und bohuvìours us voíí us
ob¡octìvos
Clton íìnkod to puy Loss íìkoíy to bo u dìroct íìnk to puy
ßurouucrutìc - compíox puporvork Documontutìon kopt to u mìnìmum
Cvnod by tho Hk dopurtmont Cvnod by íìno munugors
TabIc 32.1 Iorfornanco appraisaI conparod vilh porfornanco nanagononl
Iorfornanco nanagononl is vhal nanagors do: a naluraI procoss of nanago-
nonl.
Basod on accoplod principIos bul oporalos fIoxibIy.
Focus on dovoIopnonl nol pay.
Succoss doponds on vhal lho organizalion is and noods lo bo in ils porfornanco
cuIluro.
Tho procossos of porfornanco nanagononl aro doscribod in lho noxl chaplor.
1ho procoss ol porlormunco
munugomont
lLklCkMANCL MANACLMLN1 AS A lkCCLSS
Iorfornanco nanagononl shouId bo rogardod as a fIoxibIo procoss, nol as a ´syslon'.
Tho uso of lho lorn ´syslon' inpIios a rigid, slandardizod and buroaucralic approach
lhal is inconsislonl vilh lho concopl of porfornanco nanagononl as a fIoxibIo and
ovoIulionary, aIboil cohoronl, procoss lhal is appIiod by nanagors vorIing vilh lhoir
loans in accordanco vilh lho circunslancos in vhich lhoy oporalo. As such, il
invoIvos nanagors and lhoso vhon lhoy nanago acling as parlnors, bul vilhin a
franovorI lhal sols oul hov lhoy can bosl vorI logolhor.
lLklCkMANCL MANACLMLN1 AS A CYCLL
Iorfornanco nanagononl can bo doscribod as a conlinuous soIf-ronoving cycIo, as
iIIuslralod in Figuro 33.1.

This chaplor doaIs vilh oach of lhoso parls of lho cycIo as foIIovs:
Plcnning. concIuding a porfornanco and dovoIopnonl agroononl.
Aciing. nanaging porfornanco lhroughoul lho yoar.
Rcticuing. assossing progross and achiovononls so lhal aclion pIans can bo
proparod and agrood and, in nany schonos, porfornanco can bo ralod.
Considoralion is aIso givon lo nanaging undor-porfornors, and approachos lo inlro-
ducing porfornanco nanagononl aro considorod al lho ond of lho chaplor.
lLklCkMANCL ACkLLMLN1S
Iorfornanco agroononls forn lho basis for dovoIopnonl, assossnonl and foodbacI in
lho porfornanco nanagononl procoss. Thoy dofino oxpoclalions in lho forn of a roIo
profiIo lhal sols oul roIo roquirononls in lorns of Ioy rosuIl aroas and lho conpolon-
cios roquirod for offoclivo porfornanco. Tho roIo profiIo providos lho basis for
agrooing ob¡oclivos and nolhods of noasuring porfornanco and assossing lho IovoI of
conpoloncy roachod. Tho porfornanco agroononl incorporalos any porfornanco
inprovononl pIans lhal nay bo nocossary, and a porsonaI dovoIopnonl pIan. Il
doscribos vhal individuaIs aro oxpoclod lo do bul aIso indicalos vhal supporl lhoy
viII rocoivo fron lhoir nanagor.
Iorfornanco agroononls onorgo fron lho anaIysis of roIo roquirononls and lho
porfornanco roviov. An assossnonl of pasl porfornanco Ioads lo an anaIysis of fuluro
roquirononls. Tho lvo procossos can laIo pIaco al lho sano nooling.
Performance and
development
agreement
Performance
review
Managing
performance
throughout the year
FIgurc 33.1 Tho porfornanco nanagononl cycIo
Dcfíníng roíc rcquírcmcn|·
Tho foundalion for porfornanco nanagononl is a roIo profiIo lhal dofinos lho roIo in
lorns of lho Ioy rosuIls oxpoclod, vhal roIo hoIdors nood lo Inov and bo abIo lo do
(conpoloncios), and hov lhoy aro oxpoclod lo bohavo in lorns of bohaviouraI conpo-
loncios and uphoIding lho organizalion's coro vaIuos. RoIo profiIos nood lo bo
updalod ovory lino a fornaI porfornanco agroononl is dovoIopod. GuidoIinos on
proparing roIo profiIos and an oxanpIo aro givon in Chaplor 13.
Cb¡cc|ívc·
Ob¡oclivos doscribo sonolhing lhal has lo bo acconpIishod. Ob¡oclivo solling lhal
rosuIls in an agroononl on vhal lho roIo hoIdor has lo achiovo is an inporlanl parl of
lho porfornanco nanagononl procossos of dofining and nanaging oxpoclalions, and
forns lho poinl of roforonco for porfornanco roviovs.
Typcs of objcctivcs
Tho difforonl lypos of ob¡oclivos aro:
On-gcing rclc cr ucr| c|jcciitcs ÷ aII roIos havo buiIl-in ob¡oclivos lhal nay bo
oxprossod as Ioy rosuIl aroas in a roIo profiIo.
1crgcis ÷ lhoso dofino lho quanlifiabIo rosuIls lo bo allainod as noasurod in such
lorns as oulpul, lhroughpul, incono, saIos, IovoIs of sorvico doIivory, cosl roduc-
lion, roduclion of ro¡ocl ralos.
1cs|sfprcjccis ÷ ob¡oclivos can bo sol for lho conpIolion of lasIs or pro¡ocls by a
spocifiod dalo or lo achiovo an inlorin rosuIl.
8c|cticur ÷ bohaviouraI oxpoclalions aro oflon sol oul gonoraIIy in conpoloncy
franovorIs bul lhoy nay aIso bo dofinod individuaIIy undor lho frano-
vorI hoadings. Conpoloncy franovorIs nay doaI vilh aroas of bohaviour asso-
cialod vilh coro vaIuos, for oxanpIo loanvorI, bul lhoy oflon convorl lho
aspiralions conlainod in vaIuo slalononls inlo noro spocific oxanpIos of dosir-
abIo and undosirabIo bohaviour, vhich can hoIp in pIanning and rovioving
porfornanco.
Critcria for objcctivcs
Many organizalions uso lho foIIoving ´SMART' nnononic lo sunnarizo lho criloria
for ob¡oclivos:
1ho procoss ol porlormunco munugomont 505
S = Spccijicfsircic|ing ÷ cIoar, unanbiguous, slraighlforvard, undorslandabIo and
chaIIonging.
M = Mccsurc|lc ÷ quanlily, quaIily, lino, nonoy.
A = Ac|ictc|lc ÷ chaIIonging bul vilhin lho roach of a conpolonl and connillod
porson.
R = Rclctcni ÷ roIovanl lo lho ob¡oclivos of lho organizalion so lhal lho goaI of lho
individuaI is aIignod lo corporalo goaIs.
T = 1imc jrcmc! ÷ lo bo conpIolod vilhin an agrood lino scaIo.
Mcasuring pcrformancc in acbicving objcctivcs
Moasurononl is an inporlanl concopl in porfornanco nanagononl. Il is lho basis for
providing and gonoraling foodbacI, il idonlifios vhoro lhings aro going voII lo
provido lho foundalions for buiIding furlhor succoss, and il indicalos vhoro lhings
aro nol going so voII, so lhal corroclivo aclion can bo laIon.
Moasuring porfornanco is roIalivoIy oasy for lhoso vho aro rosponsibIo for
achioving quanlifiod largols, for oxanpIo saIos. Il is noro difficuIl in lho caso of
InovIodgo vorIors, for oxanpIo scionlisls. Bul lhis difficuIly is aIIovialod if a dislinc-
lion is nado bolvoon lho lvo forns of rosuIls ÷ oulpuls and oulconos.
An oulpul is a rosuIl lhal can bo noasurod quanlifiabIy, vhiIo an oulcono is a
visibIo offocl lhal is lho rosuIl of offorl bul cannol nocossariIy bo noasurod in quanli-
fiod lorns.
Thoro aro conpononls in aII ¡obs lhal aro difficuIl lo noasuro quanlifiabIy as
oulpuls. Bul aII ¡obs produco oulconos ovon if lhoy aro nol quanlifiod. Il is lhoroforo
oflon nocossary lo noasuro porfornanco by roforonco lo vhal oulconos havo boon
allainod in conparison vilh vhal oulconos voro oxpoclod, and lho oulconos nay bo
oxprossod in quaIilalivo lorns as a slandard or IovoI of conpoloncy lo bo allainod.
Thal is vhy il is inporlanl vhon agrooing ob¡oclivos lo ansvor lho quoslion: ´Hov
viII vo Inov lhal lhis ob¡oclivo has boon achiovod`' Tho ansvor noods lo bo
oxprossod in lho forn: ´Bocauso such and such viII havo happonod.' Tho ´such and
such' viII bo dofinod oilhor as oulpuls in such forns as nooling or oxcooding a quan-
lifiod largol, conpIoling a pro¡ocl or lasI salisfacloriIy ('salisfaclory' having boon
dofinod), or as oulconos in such forns as roaching an agrood slandard of porfor-
nanco, or doIivoring an agrood IovoI of sorvico.
Hovovor, vhon assossing porfornanco il is aIso nocossary lo considor inpuls in lho
shapo of lho dogroo of InovIodgo and sIiII allainod and bohaviour lhal is donon-
slrabIy in Iino vilh lho slandards sol oul in conpoloncy franovorIs and slalononls
of coro vaIuos. Bohaviour cannol bo noasurod quanlilalivoIy bul il can bo assossod
againsl dofinilions of vhal conslilulos good and nol so good bohaviour, and lho
ovidonco lhal can bo usod lo naIo lhal assossnonl can bo idonlifiod.
Usc of pcrformancc mcasurcs
Tho CIID survoy of porfornanco nanagononl in 2003 (Arnslrong and Baron, 2004)
rovoaIod lhal in ordor of inporlanco, lho foIIoving porfornanco noasuros voro usod
by lho rospondonls:
1. Achiovononl of ob¡oclivos.
2. Conpolonco.
3. QuaIily.
4. Conlribulion lo loan.
5. Cuslonor caro.
6. WorIing roIalionships.
7. Iroduclivily.
8. FIoxibiIily.
9. SIiIIs/Ioarning largols.
10. AIigning porsonaI ob¡oclivos vilh organizalionaI goaIs.
11. Businoss avaronoss.
12. FinanciaI avaronoss.
Fcrformancc pIanning
Tho porfornanco pIanning parl of lho porfornanco nanagononl soquonco invoIvos
agroononl bolvoon lho nanagor and lho individuaI on vhal lho Iallor noods lo do lo
achiovo ob¡oclivos, raiso slandards, inprovo porfornanco and dovoIop lho roquirod
conpoloncios. Il aIso oslabIishos priorilios ÷ lho Ioy aspocls of lho ¡ob lo vhich allon-
lion has lo bo givon. Tho ain is lo onsuro lhal lho noaning of lho ob¡oclivos, porfor-
nanco slandards and conpoloncios as lhoy appIy lo ovoryday vorI is undorslood.
Thoy aro lho basis for convorling ains inlo aclion.
Agroononl is aIso roachod al lhis slago on hov porfornanco viII bo noasurod and
lho ovidonco lhal viII bo usod lo oslabIish IovoIs of conpolonco. Il is inporlanl lhal
lhoso noasuros and ovidonco roquirononls shouId bo idonlifiod and fuIIy agrood nov
bocauso lhoy viII bo usod by individuaIs as voII as nanagors lo nonilor and donon-
slralo achiovononls.
FcrsonaI dcvcIopmcnt pIanning
A porsonaI dovoIopnonl pIan providos a Ioarning aclion pIan for vhich individuaIs
aro rosponsibIo vilh lho supporl of lhoir nanagors and lho organizalion. Il nay
incIudo fornaI lraining bul, noro inporlanlIy, il viII incorporalo a vidor sol of
Ioarning and dovoIopnonl aclivilios such as soIf-nanagod Ioarning, coaching,
nonloring, pro¡ocl vorI, ¡ob onIargononl and ¡ob onrichnonl. If nuIli-sourco assoss-
nonl (360-dogroo foodbacI) is praclisod in lho organizalion lhis viII bo usod lo
discuss dovoIopnonl noods.
Tho dovoIopnonl pIan rocords lho aclions agrood lo inprovo porfornanco and lo
dovoIop InovIodgo, sIiIIs and capabiIilios. Il is IiIoIy lo focus on dovoIopnonl in lho
curronl ¡ob ÷ lo inprovo lho abiIily lo porforn il voII and aIso, inporlanlIy, lo onabIo
individuaIs lo laIo on vidor rosponsibiIilios, oxlonding lhoir capacily lo undorlaIo a
broador roIo. This pIan lhoroforo conlribulos lo lho achiovononl of a poIicy of conlin-
uous dovoIopnonl lhal is prodicalod on lho boIiof lhal ovoryono is capabIo of Ioarning
noro and doing bollor in lhoir ¡obs. Bul lho pIan viII aIso conlribulo lo onhancing lho
polonliaI of individuaIs lo carry oul highor-IovoI ¡obs.
MANAClNC lLklCkMANCL 1HkCLCHCL1 1HL YLAk
Iorhaps ono of lho nosl inporlanl concopls of porfornanco nanagononl is lhal il is
a conlinuous procoss lhal rofIocls nornaI good nanagononl praclicos of solling
diroclion, noniloring and noasuring porfornanco and laIing aclion accordingIy.
Iorfornanco nanagononl shouId nol bo inposod on nanagors as sonolhing
´spociaI' lhoy havo lo do. Il shouId insload bo lroalod as a naluraI funclion lhal aII
good nanagors carry oul.
This approach conlrasls vilh lhal usod in convonlionaI porfornanco appraisaI
syslons, vhich voro usuaIIy buiIl around an annuaI ovonl, lho fornaI roviov, vhich
londod lo dvoII on lho pasl. This vas carriod oul al lho bohosl of lho porsonnoI
doparlnonl, oflon porfuncloriIy, and lhon forgollon. Managors procoodod lo nanago
vilhoul any furlhor roforonco lo lho oulcono of lho roviov and lho appraisaI forn
vas buriod in lho porsonnoI rocord syslon.
To onsuro lhal a porfornanco nanagononl cuIluro is buiIl and nainlainod, porfor-
nanco nanagononl has lo havo lho aclivo supporl and oncouragononl of lop
nanagononl vho nusl naIo il cIoar lhal il is rogardod as a vilaI noans of achioving
suslainod organizalionaI succoss. Thoy nusl onphasizo lhal porfornanco nanago-
nonl is vhal nanagors aro oxpoclod lo do and lhal lhoir porfornanco as nanagors
viII bo noasurod by roforonco lo lho oxlonl lo vhich lhoy do il conscionliousIy and
voII. InporlanlIy, lho rholoric supporling porfornanco nanagononl nusl bo
convorlod inlo roaIily by lho doods as voII as lho vords of lho poopIo vho havo lho
uIlinalo rosponsibiIily for running lho businoss.
Tho soquonco of porfornanco nanagononl aclivilios as doscribod in lhis chaplor
doos no noro lhan provido a franovorI vilhin vhich nanagors, individuaIs and
loans vorI logolhor in vhalovor vays bosl suil lhon lo gain bollor undorslanding of
vhal is lo bo dono, hov il is lo bo dono and vhal has boon achiovod. This franovorI
and lho phiIosophy lhal supporls il can forn lho basis for lraining novIy appoinlod
or vouId-bo nanagors in lhis Ioy aroa of lhoir rosponsibiIilios. Il can aIso hoIp in
inproving lho porfornanco of nanagors vho aro nol up lo slandard in lhis rospocl.
A fornaI, oflon annuaI, roviov is sliII an inporlanl parl of a porfornanco nanago-
nonl franovorI bul il is nol lho nosl inporlanl parl. EquaI, if nol noro, proninonco
is givon lo lho porfornanco agroononl and lho conlinuous procoss of porfornanco
nanagononl.
kLVlL\lNC lLklCkMANCL
AIlhough porfornanco nanagononl is a conlinuous procoss il is sliII nocossary lo
havo a fornaI roviov onco or lvico yoarIy. This providos a focaI poinl for lho consid-
oralion of Ioy porfornanco and dovoIopnonl issuos. This porfornanco roviov
nooling is lho noans lhrough vhich lho fivo prinary porfornanco nanagononl
oIononls of agroononl, noasurononl, foodbacI, posilivo roinforcononl and diaIoguo
can bo pul lo good uso.
Tho roviov shouId bo roolod in lho roaIily of lho onpIoyoo's porfornanco. Il is
concrolo, nol abslracl and il aIIovs nanagors and individuaIs lo laIo a posilivo IooI
logolhor al hov porfornanco can bocono bollor in lho fuluro and hov any probIons
in nooling porfornanco slandards and achioving ob¡oclivos can bo rosoIvod.
IndividuaIs shouId bo oncouragod lo assoss lhoir ovn porfornanco and bocono
aclivo agonls for chango in inproving lhoir rosuIls. Managors shouId bo oncouragod
lo adopl lhoir propor onabIing roIo: coaching and providing supporl and guidanco.
Thoro shouId bo no surprisos in a fornaI roviov if porfornanco issuos havo boon
doaIl vilh as lhoy shouId havo boon ÷ as lhoy ariso during lho yoar. TradilionaI
appraisaIs aro oflon no noro lhan an anaIysis of vhoro lhoso invoIvod aro nov, and
vhoro lhoy havo cono fron. This slalic and hisloricaI approach is nol vhal porfor-
nanco nanagononl is aboul. Tho lruo roIo of porfornanco nanagononl is lo IooI
forvard lo vhal noods lo bo dono by poopIo lo achiovo lho purposo of lho ¡ob, lo nool
nov chaIIongos, lo naIo ovon bollor uso of lhoir InovIodgo, sIiIIs and abiIilios, lo
dovoIop lhoir capabiIilios by oslabIishing a soIf-nanagod Ioarning agonda, and lo
roach agroononl on any aroas vhoro porfornanco noods lo bo inprovod and hov lhal
inprovononl shouId laIo pIaco. This procoss aIso hoIps nanagors lo inprovo lhoir
abiIily lo Ioad, guido and dovoIop lho individuaIs and loans for vhon lhoy aro
rosponsibIo.
Tho nosl connon praclico is lo havo ono annuaI roviov (65 por conl of rospon-
donls lo lho 2003 CIID survoy). Tvico-yoarIy roviovs voro hoId by 27 por conl of lho
rospondonls. Thoso roviovs Iod diroclIy inlo lho concIusion of a porfornanco agroo-
nonl (al lho sano nooling or Ialor). Il can bo arguod lhal fornaI roviovs aro unnocos-
sary and lhal il is bollor lo conducl infornaI roviovs as parl of nornaI good
nanagononl praclico lo bo carriod oul as and vhon roquirod. Such infornaI roviovs
aro vaIuabIo as parl of lho conlinuing procoss of porfornanco nanagononl
(nanaging porfornanco lhroughoul lho yoar, as discussod in lho provious chaplor).
Bul lhoro is ovorylhing lo bo said for an annuaI or haIf-yoarIy roviov lhal suns up lho
concIusions roachod al oarIior roviovs and providos a firn foundalion for a nov
porfornanco agroononl and a franovorI for rovioving porfornanco infornaIIy,
vhonovor approprialo.
Crí|cría for a··c··íng pcrformancc
Tho criloria for assossing porfornanco shouId bo baIancod bolvoon:
achiovononls in roIalion lo ob¡oclivos,
lho IovoI of InovIodgo and sIiIIs possossod and appIiod (conpoloncos),
bohaviour in lho ¡ob as il affocls porfornanco (conpoloncios),
lho dogroo lo vhich bohaviour uphoIds lho coro vaIuos of lho organizalion,
day-lo-day offoclivonoss.
Tho criloria shouId nol bo Iinilod lo a fov quanlifiod ob¡oclivos, as has oflon boon lho
caso in lradilionaI appraisaI schonos. In nany casos lho nosl inporlanl considora-
lion viII bo lho ¡ob hoIdors' day-lo-day offoclivonoss in nooling lho conlinuing
porfornanco slandards associalod vilh lhoir Ioy lasIs. Il nay nol bo possibIo lo agroo
noaningfuI nov quanlifiod largols for sono ¡obs ovory yoar. EquaI allonlion noods lo
bo givon lo lho bohaviour lhal has producod lho rosuIls as lo lho rosuIls lhonsoIvos.
Tho roviov nay bo concIudod vilh a porfornanco raling (soo pago 512).
Conduc|íng a pcrformancc rcvícv mcc|íng
Thoro aro 12 goIdon ruIos for conducling porfornanco roviov noolings.
1.  . Managors shouId proparo by roforring lo a Iisl of agrood ob¡oclivos
and lhoir nolos on porfornanco lhroughoul lho yoar. Thoy shouId forn viovs
aboul lho roasons for succoss or faiIuro and docido vhoro lo givo praiso, vhich
porfornanco probIons shouId bo nonlionod and vhal slops nighl bo undor-
laIon lo ovorcono lhon. Thoughl shouId aIso bo givon lo any changos lhal havo
laIon pIaco or aro conlonpIalod in lho individuaI's roIo and lo vorI and
porsonaI ob¡oclivos for lho noxl poriod. IndividuaIs shouId aIso proparo in ordor
5l0 lorlormunco munugomont
lo idonlify achiovononls and probIons, and lo bo roady lo assos lhoir ovn
porfornanco al lho nooling. Thoy shouId aIso nolo any poinls lhoy vish lo raiso
aboul lhoir vorI and prospocls.
2. Wcr| ic c clccr siruciurc. Tho nooling shouId bo pIannod lo covor aII lho poinls
idonlifiod during proparalion. Sufficionl lino shouId bo aIIovod for a fuII
discussion ÷ hurriod noolings viII bo inoffoclivo. An hour or lvo is usuaIIy
nocossary lo gol naxinun vaIuo fron lho roviov.
3. Crccic i|c rig|i cimcsp|crc. AsuccossfuI nooling doponds on croaling an infornaI
onvironnonl in vhich a fuII, franI bul friondIy oxchango of viovs can laIo pIaco.
Il is bosl lo slarl vilh a fairIy gonoraI discussion boforo golling inlo any dolaiI.
4. Prcti!c gcc! jcc!|cc|. IndividuaIs nood lo Inov hov lhoy aro golling on.
FoodbacI shouId bo basod on facluaI ovidonco. Il rofors lo rosuIls, ovonls, crilicaI
incidonls and significanl bohaviours lhal havo affoclod porfornanco in spocific
vays. Tho foodbacI shouId bo prosonlod in a nannor lhal onabIos individuaIs lo
rocognizo and accopl ils facluaI naluro ÷ il shouId bo a doscriplion of vhal has
happonod, nol a ¡udgononl. Iosilivo foodbacI shouId bo givon on lho lhings lhal
lho individuaI did voII in addilion lo aroas for inprovononl. IoopIo aro noro
IiIoIy lo vorI al inproving lhoir porfornanco and dovoIoping lhoir sIiIIs if lhoy
fooI onpovorod by lho procoss.
5. Usc iimc prc!uciitclq. Tho roviovor shouId losl undorslanding, oblain inforna-
lion, and sooI proposaIs and supporl. Tino shouId bo aIIovod for lho individuaI
lo oxpross his or hor viovs fuIIy and lo rospond lo any connonls nado by lho
nanagor. Tho nooling shouId laIo lho forn of a diaIoguo bolvoon lvo inlor-
oslod and invoIvod parlios, bolh of vhon aro sooIing a posilivo concIusion.
6. Usc prcisc. If possibIo, nanagors shouId bogin vilh praiso for sono spocific
achiovononl, bul lhis shouId bo sincoro and dosorvod. Iraiso hoIps poopIo lo
roIax ÷ ovoryono noods oncouragononl and approcialion.
7. Ici in!iti!ucls !c mcsi cj i|c icl|ing. This onabIos lhon lo gol lhings off lhoir chosl
and hoIps lhon lo fooI lhal lhoy aro golling a fair hoaring. Uso opon-ondod quos-
lions (io quoslions lhal invilo lho individuaI lo lhinI aboul vhal lo ropIy ralhor
lhan indicaling lho oxpoclod ansvor). This is lo oncourago poopIo lo oxpand.
8. lntiic sclj-csscssmcni. This is lo soo hov lhings IooI fron lho individuaI's poinl of
viov and lo provido a basis for discussion ÷ nany poopIo undoroslinalo lhon-
soIvos. AsI quoslions such as:
÷ Hov voII do you fooI you havo dono`
÷ Whal do you fooI aro your slronglhs`
÷ Whal do you IiIo nosl/Ioasl aboul your ¡ob`
÷ Why do you lhinI lhal pro¡ocl vonl voII`
÷ Why do you lhinI you didn'l nool lhal largol`
1ho procoss ol porlormunco munugomont 5ll
9. Discuss pcrjcrmcncc nci pcrscncliiq. Discussions on porfornanco shouId bo basod
on facluaI ovidonco, nol opinion. AIvays rofor lo acluaI ovonls or bohaviour and
lo rosuIls conparod vilh agrood porfornanco noasuros. IndividuaIs shouId bo
givon pIonly of scopo lo oxpIain vhy sonolhing did or did nol happon.
10. |nccurcgc cnclqsis cj pcrjcrmcncc. Don'l ¡usl hand oul praiso or bIano. AnaIyso
¡oinlIy and ob¡oclivoIy vhy lhings vonl voII or badIy and vhal can bo dono lo
nainlain a high slandard or lo avoid probIons in lho fuluro.
11. Dcní !clitcr uncxpccic! criiicisms. Thoro shouId bo no surprisos. Tho discussion
shouId onIy bo concornod vilh ovonls or bohaviours lhal havo boon nolod al lho
lino lhoy looI pIaco. FoodbacI on porfornanco shouId bo innodialo. Il shouId
nol vail unliI lho ond of lho yoar. Tho purposo of lho fornaI roviov is lo rofIocl
briofIy on oxporioncos during lho roviov poriod and on lhis basis lo IooI ahoad.
12. Agrcc mccsurc|lc c|jcciitcs cn! c plcn cj cciicn. Tho ain shouId bo lo ond lho
roviov nooling on a posilivo nolo.
Thoso goIdon ruIos nay sound slraighlforvard and obvious onough, bul lhoy viII
onIy funclion proporIy in a cuIluro lhal supporls lhis lypo of approach. Honco lho
inporlanco of golling and Iooping lop nanagononl supporl and lho nood lo laIo
spociaI caro in dovoIoping and inlroducing lho syslon and in lraining nanagors cn!
lhoir slaff.
kA1lNC lLklCkMANCL
Mosl porfornanco nanagononl schonos incIudo sono forn of raling. This indicalos
lho quaIily of porfornanco or conpolonco achiovod or dispIayod by an onpIoyoo by
soIocling lho IovoI on a scaIo lhal nosl cIosoIy corrosponds vilh lho viov of lho
assossor on hov voII lho individuaI has boon doing. A raling scaIo is supposod lo
assisl in naIing ¡udgononls and il onabIos lhoso ¡udgononls lo bo calogorizod lo
inforn porfornanco or conlribulion pay docisions, or sinpIy lo produco an inslanl
sunnary for lho rocord of hov voII or nol so voII sonoono is doing.
Thc ra|íonaíc for ra|íng
Thoro aro four argunonls for raling:
1. Il rocognizos lho facl lhal vo aII forn an ovoraII viov of lho porfornanco of lho
poopIo vho vorI for us and lhal il naIos sonso lo oxpross lhal viov oxpIicilIy
againsl a franovorI of roforonco ralhor lhan hiding il. Managors can lhus bo hoId
lo accounl for lho ralings lhoy naIo and bo roquirod lo ¡uslify lhon.
2. Il is usofuI lo sun up ¡udgononls aboul poopIo ÷ indicaling vho aro lho oxcop-
lionaI porfornors or undor-porfornors and vho aro lho roIiabIo coro porfornors
so lhal aclion can bo laIon (dovoIopnonlaI or sono forn of rovard).
3. Il is inpossibIo lo havo porfornanco or conlribulion pay vilhoul ralings ÷ lhoro
has lo bo a nolhod lhal roIalos lho sizo of an avard lo lho IovoI of individuaI
achiovononl. Hovovor, lhis is nol acluaIIy lho caso: nany organizalions vilh
conlribulion or porfornanco pay do nol incIudo ralings as parl of lho porfor-
nanco nanagononl procoss (23 por conl of lho rospondonls lo lho o-rovard 2005
survoy).
4. Il convoys a cIoar nossago lo poopIo on hov lhoy aro doing and can nolivalo
lhon lo inprovo porfornanco if lhoy sooI an ansvor lo lho quoslion: ´Whal do I
havo lo do lo gol a highor raling noxl lino`'
T,pc· of ra|íng ·caíc·
Raling scaIos can bo dofinod aIphabolicaIIy (a, b, c, olc), or nunoricaIIy (1, 2, 3, olc).
Abbrovialions or iniliaIs (ox for oxcoIIonl, olc) aro sonolinos usod in an allonpl lo
disguiso lho hiorarchicaI naluro of lho scaIo. Tho aIphabolicaI or nunoricaI poinls
scaIo poinls nay bo doscribod ad¡oclivaIIy, for oxanpIo, a = oxcoIIonl, b = good, c =
salisfaclory and d= unsalisfaclory.
AIlornalivoIy, scaIo IovoIs nay bo spoIl oul, as in lho foIIoving oxanpIo:
|xccpiicncl pcrjcrmcncc. oxcoods oxpoclalions and consislonlIy naIos an
oulslanding conlribulion lhal significanlIy oxlonds lho inpacl and infIuonco of
lho roIo.
Wcll-|clcncc! pcrjcrmcncc. nools ob¡oclivos and roquirononls of lho roIo, consis-
lonlIy porforns in a lhoroughIy proficionl nannor.
8crclq cjjcciitc pcrjcrmcncc. doos nol nool aII ob¡oclivos or roIo roquirononls of lho
roIo, significanl porfornanco inprovononls aro noodod.
Unccccpic|lc pcrjcrmcncc. faiIs lo nool nosl ob¡oclivos or roquirononls of lho roIo,
shovs a IacI of connilnonl lo porfornanco inprovononl, or a IacI of abiIily,
vhich has boon discussod prior lo lho porfornanco roviov.
Tho CIID 2004c survoy found lhal lho na¡orily of organizalions had fivo IovoIs. Sono
organizalions aro sollIing for lhroo IovoIs, bul lhoro is no ovidonco lhal any singIo
approach is cIoarIy suporior lo anolhor, aIlhough lho groalor lho nunbor of IovoIs lho
noro is boing asIod of nanagors in lho shapo of discrininalory ¡udgononl. Il doos,
hovovor, soon lo bo proforabIo for IovoI dofinilions lo bo posilivo ralhor lhan noga-
livo and for lhon lo provido as nuch guidanco as possibIo on lho choico of ralings. Il
1ho procoss ol porlormunco munugomont 5l3
is oquaIIy inporlanl lo onsuro lhal IovoI dofinilions aro conpalibIo vilh lho cuIluro of
lho organizalion and lhal cIoso allonlion is givon lo onsuring lhal nanagors uso lhon
as consislonlIy as possibIo.
|robícm· ví|h ra|íng
Ralings aro IargoIy sub¡oclivo and il is difficuIl lo achiovo consisloncy bolvoon lho
ralings givon by difforonl nanagors (vays of achioving consislonl ¡udgononls aro
discussod boIov). Bocauso lho nolion of ´porfornanco' is oflon uncIoar, sub¡oclivily
can incroaso. Evon if ob¡oclivily is achiovod, lo sun up lho lolaI porfornanco of a
porson vilh a singIo raling is a gross ovor-sinpIificalion of vhal nay bo a conpIox
sol of faclors infIuoncing lhal porfornanco ÷ lo do lhis aflor a dolaiIod discussion of
slronglhs and voaInossos suggosls lhal lho raling viII bo a suporficiaI and arbilrary
¡udgononl. To IaboI poopIo as ávorago' or ´boIov avorago', or vhalovor oquivaIonl
lorns aro usod, is bolh donoaning and donolivaling.
Tho vhoIo porfornanco roviov nooling nay bo doninalod by lho facl lhal il viII
ond vilh a raling, lhus sovoroIy Iiniling lho forvard-IooIing and dovoIopnonlaI
focus of lho nooling, vhich is aII-inporlanl. This is parlicuIarIy lho caso if lho raling
govorns porfornanco or conlribulion pay incroasos.
Achícvíng con·í·|cnc, ín ra|íng·
Tho probIon vilh raling scaIos is lhal il is vory difficuIl, if nol inpossibIo vilhoul
vory carofuI nanagononl, lo onsuro lhal a consislonl approach is adoplod by
nanagors rosponsibIo for raling, and lhis noans lhal porfornanco or conlribulion
pay docisions viII bo suspocl. Il is aInosl inovilabIo lhal sono poopIo viII bo noro
gonorous lhan olhors, vhiIo olhors viII bo hardor on lhoir slaff. Sono nanagors nay
bo inconsislonl in lho dislribulion of ralings lo lhoir slaff bocauso lhoy aro induIging
in favourilisn or pro¡udico.
Ralings can, of courso, bo nonilorod and chaIIongod if lhoir dislribulion is signifi-
canlIy oul of Iino, and conpulor-basod syslons havo boon inlroducod for lhis
purposo in sono organizalions. Bul nany nanagors vanl lo do lho bosl for lhoir slaff,
oilhor bocauso lhoy gonuinoIy boIiovo lhal lhoy aro bollor or bocauso lhoy aro lrying lo
curry favour. Il can bo difficuIl in lhoso circunslancos lo chaIIongo lhon.
Tho nolhods avaiIabIo for incroasing consisloncy aro doscribod boIov.

Training can laIo pIaco in lho forn of ćonsisloncy' vorIshops for nanagors vho
discuss hov ralings can bo ¡uslifiod ob¡oclivoIy and losl raling docisions on sinuIalod
porfornanco roviov dala. This can buiId a IovoI of connon undorslanding aboul
raling IovoIs.
Fccr rcvicws
Groups of nanagors nool lo roviov lho pallorn of oach olhor's ralings and chaIIongo
unusuaI docisions or dislribulions. This procoss of nodoralion or caIibralion is lino-
consuning bul is possibIy lho bosl vay lo achiovo a roasonabIo dogroo of consisloncy,
ospociaIIy vhon lho group nonbors sharo sono InovIodgo of lho porfornancos of
oach olhor's slaff as inlornaI cuslonors.
Monitoring
Tho dislribulion of ralings is nonilorod by a conlraI doparlnonl, usuaIIy HR, vhich
chaIIongos any unusuaI pallorns and idonlifios and quoslions vhal appoar lo bo
unvarranlabIo difforoncos bolvoon doparlnonls' ralings.
Consisloncy al a prico can aIso bo achiovod by forcod dislribulion or ranIing, as
doscribod Ialor in lhis chaplor.
Concíu·íon· on ra|íng·
Many organizalions rolain ralings bocauso lhoy porcoivo lhal lho advanlagos
oulvoigh lho disadvanlagos. Hovovor, lhoso businossos lhal vanl lo onphasizo lho
dovoIopnonlaI aspocl of porfornanco nanagononl and pIay dovn, ovon oIininalo,
lho porfornanco pay oIononl, viII bo convincod by lho ob¡oclions lo raling and viII
disponso vilh lhon aIlogolhor, roIying insload on ovoraII anaIysis and assossnonl.
DLALlNC \l1H LNDLk-lLklCkMLkS
Tho inprovononl of porfornanco is a fundanonlaI parl of lho conlinuous procoss of
porfornanco nanagononl. Tho ain shouId bo lho posilivo ono of naxinizing high
porfornanco, aIlhough lhis invoIvos laIing slops lo doaI vilh undor-porfornanco.
Whon nanaging undor-porfornors, rononbor lho advico givon by Handy (1989) lhal
lhis shouId bo aboul áppIauding succoss and forgiving faiIuro'. Ho suggosls lhal
nislaIos shouId bo usod as an opporlunily for Ioarning ÷ ´sonolhing onIy possibIo if
lho nislaIo is  forgivon bocauso olhorviso lho Iosson is hoard as a roprinand and
nol as an offor of hoIp'.
Whon doaIing vilh poor porfornors, nolo shouId bo nado of lho foIIoving
connonls by Rishor (2003): Íoor porfornanco is bosl soon as a probIon in vhich lho
onpIoyor and nanagononl aro bolh accounlabIo. In facl, ono can arguo lhal il is
unIiIoIy lo onorgo if poopIo aro offoclivoIy nanagod.' This is anolhor vay of pulling
lho oId Arny saying: ´Thoro aro no bad soIdiors, onIy bad officors.'
Managing undor-porfornors is lhoroforo a posilivo procoss lhal is basod on food-
bacI lhroughoul lho yoar and IooIs forvard lo vhal can bo dono by individuaIs lo
ovorcono porfornanco probIons and, inporlanlIy, hov nanagors can provido
supporl and hoIp.
Tho fivo basic slops roquirod lo nanago undor-porfornors aro as foIIovs.
1. l!cniijq cn! cgrcc i|c prc|lcm. AnaIyso lho foodbacI and, as far as possibIo, oblain
agroononl fron lho individuaI on vhal lho shorlfaII has boon. FoodbacI nay bo
providod by nanagors bul il can in a sonso bo buiIl inlo lho ¡ob. This laIos pIaco
vhon individuaIs aro avaro of lhoir largols and slandards, Inov vhal porfor-
nanco noasuros viII bo usod and oilhor rocoivo foodbacI/conlroI infornalion
aulonalicaIIy or havo oasy accoss lo il. Thoy viII lhon bo in a posilion lo noasuro
and assoss lhoir ovn porfornanco and, if lhoy aro voII-nolivalod and voII-
lrainod, laIo lhoir ovn corroclivo aclions. In olhor vords, a soIf-roguIaling food-
bacI nochanisn oxisls. This is a silualion lhal nanagors shouId ondoavour lo
croalo on lho grounds lhal provonlion is bollor lhan curo.
2. |sic|lis| i|c rccscn(s) jcr i|c s|crijcll. Whon sooIing lho roasons for any shorlfaIIs
lho nanagor shouId nol crudoIy bo lrying lo allach bIano. Tho ain shouId bo for
lho nanagor and lho individuaI ¡oinlIy lo idonlify lho facls lhal havo conlribulod
lo lho probIon. Il is on lho basis of lhis facluaI anaIysis lhal docisions can bo
nado on vhal lo do aboul il by lho individuaI, lho nanagor, or lho lvo of lhon
vorIing logolhor.
Il is nocossary firsl lo idonlify any causos lhal aro oxlornaI lo lho ¡ob and
oulsido lho conlroI of oilhor lho nanagor or lho individuaI. Any faclors lhal aro
vilhin lho conlroI of lho individuaI and/or lho nanagor can lhon bo considorod.
Whal noods lo bo dolorninod is lho oxlonl lo vhich lho roason for lho probIon is
bocauso lho individuaI:
÷ did nol rocoivo adoqualo supporl or guidanco fron his or hor nanagor,
÷ did nol fuIIy undorsland vhal ho or sho vas oxpoclod lo do,
÷ couId nol do il ÷ abiIily,
÷ did nol Inov hov lo do il ÷ sIiII,
÷ vouId nol do il ÷ alliludo.
3. Dcci!c cn! cgrcc cn i|c cciicn rc¡uirc!. Aclion nay bo laIon by lho individuaI, lho
nanagor, or bolh parlios. This couId incIudo:
÷ lho individuaI laIing slops lo inprovo sIiIIs or chango bohaviour,
÷ lho individuaI changing alliludos ÷ lho chaIIongo is lhal poopIo viII nol
chango lhoir alliludos sinpIy bocauso lhoy aro loId lo do so, lhoy can onIy bo
hoIpod lo undorsland lhal corlain changos lo lhoir bohaviour couId bo bonofi-
ciaI nol onIy lo lho organizalion bul aIso lo lhonsoIvos,
÷ lho nanagor providing noro supporl or guidanco,
÷ lho nanagor and lho individuaI vorIing ¡oinlIy lo cIarify oxpoclalions,
÷ lho nanagor and lho individuaI vorIing ¡oinlIy lo dovoIop abiIilios and
sIiIIs ÷ lhis is a parlnorship in lho sonso lhal individuaIs viII bo oxpoclod lo
laIo slops lo dovoIop lhonsoIvos, bul nanagors can givo hoIp as roquirod in
lho forn of coaching, lraining and providing addilionaI oxporionco.
Whalovor aclion is agrood, bolh parlios nusl undorsland hov lhoy viII Inov
lhal il has succoodod. FoodbacI arrangononls can bo nado bul individuaIs
shouId bo oncouragod lo nonilor lhoir ovn porfornanco and laIo furlhor aclion
as roquirod.
4. Rcscurcc i|c cciicn. Irovido lho coaching, lraining, guidanco, oxporionco or faciIi-
lios roquirod lo onabIo agrood aclions lo happon.
5. Mcniicr cn! prcti!c jcc!|cc|. Bolh nanagors and individuaIs nonilor porfor-
nanco, onsuro lhal foodbacI is providod or oblainod and anaIysod, and agroo on
any furlhor aclions lhal nay bo nocossary.
lN1kCDLClNC lLklCkMANCL MANACLMLN1
Tho progranno for inlroducing porfornanco nanagononl shouId laIo inlo accounl
lho facl lhal ono of lho nain roasons vhy il faiIs is lhal Iino nanagors aro nol
inloroslod, or lhoy don'l havo lho sIiIIs, or bolh. Il is inporlanl lo gol buy-in fron
lop nanagononl so lhal lhoir Ioadorship can oncourago Iino nanagors lo pIay lhoir
parl. To onsuro buy-in, lho procoss has lo bo sinpIo (nol loo nuch papor) and
nanagors havo lo bo convincod lhal lho lino lhoy spond viII pay off in lorns of
inprovod porfornanco. Tho donanding sIiIIs of concIuding porfornanco agroo-
nonls, solling ob¡oclivos, assossing porfornanco, giving foodbacI and coaching nood
lo bo dovoIopod by fornaI lraining suppIononlod by coaching and lho uso of
nonlors.
ExcoIIonl praclicaI advico on inlroducing porfornanco nanagononl or naIing
subslanliaI changos lo an oxisling schono vas givon by lho rospondonls lo lho o-
Rovard 2005 survoy. This is sunnarizod boIov vilh quolalions fron rospondonls lo
iIIuslralo lhoir viovs.

Tho nosl froquonlIy nonlionod ´dos' in ordor of froquoncy voro lo:
consuIl/invoIvo,
provido lraining,
connunicalo (procoss and bonofils),
gol buy-in fron sonior nanagononl,
aIign and onsuro roIovanco lo organizalionaI/businoss/slaIohoIdor noods,
Ioop il sinpIo,
gol ovnorship fron Iino nanagors,
onsuro cIoar purposo and procossos,
nonilor and ovaIualo,
aIign lo cuIluro,
pIan and proparo carofuIIy,
aIign vilh olhor HR procossos,
run a piIol schono,
cIarify IinI lo rovard,
lroal as a businoss procoss,
bo roaIislic aboul lho scaIo and paco of chango,
dofino porfornanco oxpoclalions,
naIo procoss nandalory.
FxampIcs of commcnts
You can novor do onough lraining/coaching of bolh slaff and Iino nanagors. You
can novor do loo nuch connunicalion on lho nov changos.
Ensuro lho procoss is soon as a businoss ono, nol an HR procoss.
Koop il sinpIo and conconlralo on lho quaIily going inlo lho procoss ralhor lhan
lho dosign of lho procoss ilsoIf (aIlhough lho dosign nusl bo approprialo lo lho
organizalion).
Engago aII nanagors in vhy il is inporlanl and onsuro lhal lhoy havo lho nocos-
sary undorslanding and sIiIIs lo carry oul lho procoss. Gol buy-in and laiIor il lo
lho spocific noods of lho organizalion. Gol lho supporl of Ioy slaIohoIdors such as
lho union fron lho slarl, and gol lhon lo vorI vilh you lo soII lho schono. Agroo
lho ovoraII ob¡oclivos and guiding principIos vilh aII concornod. Koop onpIoyoos
infornod and onsuro lho nossago is consislonl lhroughoul.
Undorsland cIoarIy vhy you aro doing il and lho dosirod ob¡oclivos. Engago
olhors in lho dosign of lho schono. Connunicalo purposo, olc cIoarIy.

Tho nosl connon ´don'ls' in ordor of froquoncy voro:
don'l ¡usl naIo il a forn-fiIIing, papor-inlonsivo oxorciso,
don'l naIo il loo conpIicalod,
don'l rush in a nov syslon,
don'l undoroslinalo lho lino il laIos lo inlroduco,
don'l Ioop changing lho syslon,
don'l assuno nanagors havo lho sIiIIs roquirod,
don'l IinI lo pay,
don'l bIindIy foIIov olhors,
don'l nogIocl connunicalion, consuIlalion and lraining,
don'l assuno lhal ovoryono vanls il.
FxampIcs of commcnts
Don'l oxpocl lhal slaff viII Ioap for ¡oy al lho prospocl of anolhor vay lhoy vouId
soo of crilicizing lhon in lhoir ¡ob. Slarl your chango nanagononl procoss vhoro
you lhinI lho slaff aro, nol vhoro you'vo assunod lhoy aro.
Don'l assuno lhal vhal soons obvious and IogicaI lo you, as an HR nanagor, viII
aIso soon IogicaI lo olhor nanagors and slaff. Don'l gol caughl up in HR-spoaI
and bocono podanlic aboul lho difforoncos bolvoon ´porfornanco nanagononl'
and áppraisaIs', or bolvoon a ´porsonaI dovoIopnonl/Ioarning pIan' and a
´lraining pIan'. As HR profossionaIs vo nay bo abIo lo arguo oIoquonlIy lho sublIo
difforoncos and norils of oach ÷ for nosl poopIo lho dislinclion is absoIuloIy
noaningIoss!
Don'l ¡usl naIo il a forn-fiIIing oxorciso ÷ you nood lo gain lho boIiof fron
nanagors lhal lho syslon is bonoficiaI olhorviso il von'l vorI.
Don'l pul in a Ionglhy conpIicalod procoss ÷ il viII bocono a choro lo do ralhor
lhan a noaningfuI oxorciso.
Don'l naIo HR ovn lho inilialivo ÷ il is a businoss inprovononl nodoI and ono
lhal lho businoss noods lo nanago.
Don'l assuno lhal nanagors havo lho roquisilo sIiIIs lo nanago porfornanco
fairIy and oquilabIy, onbarI upon such an inilialivo vilhoul cIoar goaIs and
vilhoul lho supporl of rospoclod Ioy pIayors in lho organizalion, sol lho vhooIs in
nolion unliI oxlonsivo briofings/lraining havo boon conpIolod.
Don'l undoroslinalo lho anounl of vorI invoIvod!
Don'l oxpocl il lo vorI quicIIy. Il laIos a fov yoars lo onbod porfornanco
nanagononl in lho organizalion's olhos.
360-dogroo loodbuck
360-dogroo foodbacI is a roIalivoIy nov foaluro of porfornanco nanagononl,
aIlhough inlorosl is groving. Tho Inslilulo of IorsonnoI and DovoIopnonl 2003
survoy (Arnslrong and Baron, 2004) found lhal onIy 11 por conl of lho organizalions
covorod usod il, bul lho o-rovard 2005 survoy oslabIishod lhal 30 por conl did. This
chaplor slarls vilh a dofinilion of 360-dogroo foodbacI and goos on lo doscribo hov il
is usod and oporalod and lo discuss ils advanlagos and disadvanlagos and nolhods
of inlroduclion.
360-DLCkLL lLLDßACK DLllNLD
360-dogroo foodbacI has boon dofinod by Ward (1995) as: ´Tho syslonalic coIIoclion
and foodbacI of porfornanco dala on an individuaI or group dorivod fron a nunbor
of lho slaIohoIdors on lhoir porfornanco.'
Tho dala is usuaIIy fod bacI in lho forn of ralings againsl various porfornanco
dinonsions. 360-dogroo foodbacI is aIso roforrod lo as nuIli-sourco assossnonl or
nuIli-ralor foodbacI.
Iorfornanco dala in a 360-dogroo foodbacI procoss, as shovn in Figuro 34.1, can bo
gonoralod for individuaIs fron lho porson lo vhon lhoy roporl, lhoir dirocl roporls,
lhoir poors (vho couId bo loan nonbors and/or coIIoaguos in olhor parls of lho orga-
nizalion) and lhoir oxlornaI and inlornaI cuslonors.

Tho rango of foodbacI couId bo oxlondod lo incIudo olhor slaIohoIdors ÷ oxlornaI
cuslonors, cIionls or suppIiors (lhis is sonolinos Inovn as 540-dogroo foodbacI). A
soIf-assossnonl procoss nay aIso bo incorporalod using for conparison purposos lho
sano criloria as lho olhor gonoralors of foodbacI.
FoodbacI can bo inilialod onliroIy by poors (in a loan solling) or by bolh poors and
loan Ioadors. Il can aIso laIo lho forn of 180-dogroo or upvard foodbacI vhoro lhis is
givon by subordinalos lo lhoir nanagors. FoodbacI nay bo prosonlod dirocl lo indi-
viduaIs, or lo lhoir nanagors, or bolh. Exporl counsoIIing and coaching for individ-
uaIs as a rosuIl of lho foodbacI nay bo providod by a nonbor of lho HR doparlnonl
or by an oulsido consuIlanl.
LSL Cl 360-DLCkLL lLLDßACK
360-dogroo foodbacI is usod for a nunbor of purposos. Rosoarch conduclod by lho
Ashridgo Managononl Rosoarch Group (Handy   1996) found lhal lypicaIIy, 360-
dogroo foodbacI forns parl of a soIf-dovoIopnonl or nanagononl dovoIopnonl
progranno. Tho 45 usors covorod by lho survoy foII inlo lho foIIoving groups:
71 por conl usod il soIoIy lo supporl Ioarning and dovoIopnonl,
Manager
Ìndividual
Ìnternal
customers
Peers
Direct
reports
FIgurc 34.1 360-dogroo foodbacI nodoI
23 por conl usod il lo supporl a nunbor of HR procossos such as appraisaI,
rosourcing and succossion pIanning,
6 por conl usod il lo supporl pay docisions.
A1997 survoy by lho Iorfornanco Managononl Group (unpubIishod) of 22 organiza-
lions using 360-dogroo foodbacI found lhal:
77 por conl oilhor disagrood or slrongIy disagrood vilh lho slalononl lhal il is 'a
porsonaI dovoIopnonl looI and shouId nol bo usod for vidor HR or organiza-
lionaI purposos',
81 por conl disagrood or slrongIy disagrood lhal 'lho naluraI uso of 360-dogroo
foodbacI is lo provido a basis for rovard'.
Tho rosoarch conduclod by Arnslrong and Baron (1998) for lho IID aIso found lhal
lho 51 organizalions covorod by lho rosoarch prodoninanlIy usod 360-dogroo food-
bacI lo hoIp in assossing dovoIopnonl noods, and as a basis for porfornanco
coaching. OnIy ono-fiflh of lho rospondonls usod il lo dolornino a porfornanco grado
or pay avard.
kA1lCNALL lCk 360-DLCkLL lLLDßACK
Tho nain ralionaIo for 360-dogroo foodbacI has boon oxprossod by Turnov (1993) as
foIIovs:
360-dogroo uctìvìtìos uro usuuííy busod on tvo koy ussumptìons: tl) thut uvuronoss ol
uny dìscropuncy botvoon hov vo soo oursoívos und hov othors soo us ìncrousos soíl-
uvuronoss, und t2) thut onhuncod soíl-uvuronoss ìs u koy to muxìmum porlormunco us u
íoudor, und thus bocomos u loundutìon bíock lor munugomont und íoudorshìp dovoíop-
mont progrummos.
London and Boally (1993) havo suggoslod lhal lho ¡uslificalion for 360-dogroo food-
bacI is as foIIovs:
360-dogroo foodbacI can bocono a povorfuI organizalionaI inlorvonlion lo
incroaso avaronoss of lho inporlanco of aIigning Ioador bohaviour, vorI unil
rosuIls and cuslonor oxpoclalions, as voII as incroasing onpIoyoo parlicipalion in
Ioadorship dovoIopnonl and vorI unil offoclivonoss.
360-dogroo foodbacI rocognizos lho conpIoxily of nanagononl and lho vaIuo of
inpul fron various sourcos ÷ il is axionalic lhal nanagors shouId nol bo assossing
360-dogroo loodbuck 523
bohaviours lhoy cannol obsorvo, and lho Ioadorship bohaviours of subordinalos
nay nol bo Inovn lo lhoir nanagors.
360-dogroo foodbacI caIIs allonlion lo inporlanl porfornanco dinonsions vhich
nay hilhorlo havo boon nogIoclod by lho organizalion.
360-DLCkLL lLLDßACK - ML1HCDCLCCY
Thc quc·|íonnaírc
360-dogroo foodbacI procossos usuaIIy oblain dala fron quoslionnairos, vhich
noasuro fron difforonl porspoclivos lho bohaviours of individuaIs againsl a Iisl of
conpoloncios. In offocl, lhoy asI for an ovaIualion: ´hov voII doos. do.`' Tho
conpoloncy nodoI nay bo ono dovoIopod vilhin lho organizalion or lho conpoloncy
hoadings nay bo providod by lho suppIior of a quoslionnairo.
Tho dinonsions nay broadIy rofor lo Ioadorship, nanagononl and approachos lo
vorI. Tho hoadings usod in lho Iorfornanco Managononl Group's Orbil 360-dogroo
quoslionnairo aro:
Ioadorship,
loan pIayor/nanago poopIo,
soIf-nanagononl,
connunicalion,
vision,
organizalionaI sIiIIs,
docision naIing,
oxporliso,
drivo,
adaplabiIily.
Tho Ioadorship hoading, for oxanpIo, is dofinod as: ´Sharos a cIoar vision and focusos
on achioving il. Dononslralos connilnonl lo lho organizalion's nission. Irovidos a
cohoronl sonso of purposo and diroclion, bolh inlornaIIy and oxlornaIIy, harnossing
onorgy and onlhusiasn of slaff.'
Ra|íng·
Ralings aro givon by lho gonoralors of lho foodbacI on a scaIo againsl oach hoading.
This nay rofor bolh lo inporlanco and porfornanco, as in lho IILAT quoslionnairo
vhich asIs lhoso conpIoling il lo ralo lho inporlanco of oach ilon on a scaIo of 1 (nol
inporlanl) lo 6 (ossonliaI), and porfornanco on a scaIo of 1 (voaI in lhis aroa) lo 6
(oulslanding).
Da|a procc··íng
Quoslionnairos aro nornaIIy procossod vilh lho hoIp of soflvaro dovoIopod vilhin
lho organizalion or, nosl connonIy, providod by oxlornaI suppIiors. This onabIos lho
dala coIIoclion and anaIysis lo bo conpIolod sviflIy, vilh lho nininun of offorl and
in a vay lhal faciIilalos graphicaI as voII as nunoricaI prosonlalion.
GraphicaI prosonlalion is proforabIo as a noans of oasing lho procoss of assini-
Ialing lho dala. Tho sinpIosl nolhod is lo produco a profiIo as iIIuslralod in Figuro
34.2.
Sono of lho propriolary soflvaro prosonls foodbacI dala in a nuch noro oIaboralo
forn.
fccdbac|
Tho foodbacI is oflon anonynous and nay bo prosonlod lo lho individuaI (nosl
connonIy), lo lho individuaI's nanagor (Ioss connon) or lo bolh lho individuaI and
lho nanagor. Sono organizalions do nol arrango for foodbacI lo bo anonynous.
Wholhor or nol foodbacI is anonynous doponds on lho organizalion's cuIluro ÷ lho
noro opon lho cuIluro, lho noro IiIoIy is lho sourco of foodbacI lo bo rovoaIod.
Gives useful feedback
Established good working relationship
Open to new ideas
Values others' opinions
Recognizes achievements
1 2 3 4 5 6
FIgurc 34.2 360-dogroo foodbacI profiIo

Tho aclion gonoralod by lho foodbacI viII dopond on lho purposos of lho procoss, io
dovoIopnonl, appraisaI or pay. If lho purposo is prinariIy dovoIopnonlaI, lho aclion
nay bo Iofl lo individuaIs as parl of lhoir porsonaI dovoIopnonl pIans, bul lho pIan-
ning procoss nay bo sharod bolvoon individuaIs and lhoir nanagors if lhoy bolh
havo accoss lo lho infornalion. Evon if lho dala onIy goos lo lho individuaI, il can bo
discussod in a porfornanco roviov nooling so lhal ¡oinl pIans can bo nado, and lhoro
is nuch lo bo said for adopling lhis approach.
DLVLLClMLN1 AND lMlLLMLN1A1lCN
To dovoIop and inpIononl 360-dogroo foodbacI lho foIIoving slops nood lo bo laIon:
1. Dcjinc c|jcciitcs ÷ il is inporlanl lo dofino oxaclIy vhal 360-dogroo foodbacI is
oxpoclod lo achiovo. Il viII bo nocossary lo spoII oul lho oxlonl lo vhich il is
concornod vilh porsonaI dovoIopnonl, appraisaI or pay.
2. Dcci!c cn rccipicnis ÷ vho is lo bo al lho rocoiving ond of foodbacI. This nay bo an
indicalion of vho viII ovonluaIIy bo covorod aflor a piIol schono.
3. Dcci!c cn u|c uill gitc i|c jcc!|cc| ÷ lho individuaI's nanagor, dirocl roporls, loan
nonbors, olhor coIIoaguos, inlornaI and oxlornaI cuslonors. A docision viII aIso
havo lo bo nado on vholhor HR slaff or oulsido consuIlanls shouId laIo parl in
hoIping nanagors lo naIo uso of lho foodbacI. A furlhor docision viII nood lo bo
nado on vholhor or nol lho foodbacI shouId bo anonynous (il usuaIIy is).
4. Dcci!c cn i|c crccs cj ucr| cn! |c|cticur on vhich foodbacI viII bo givon ÷ lhis
nay bo in Iino vilh an oxisling conpoloncy nodoI or il nay laIo lho forn of a Iisl
of hoadings for dovoIopnonl. CIoarIy, lho nodoI shouId fil lho cuIluro, vaIuos
and lypo of vorI carriod oul in lho organizalion. Bul il nighl bo docidod lhal a
Iisl of hoadings or quoslions in a soflvaro pacIago vouId bo accoplabIo, al Ioasl
lo slarl vilh.
5. Dcci!c cn i|c mci|c! cj ccllcciing i|c !cic ÷ lho quoslionnairo couId bo dosignod in-
houso or a consuIlanl's or soflvaro providor's quoslionnairo couId bo adoplod,
vilh lho possibIo oplion of anonding il Ialor lo produco bollor fil.
6. Dcci!c cn !cic cnclqsis cn! prcscniciicn ÷ again, lho docision is on dovoIoping lho
soflvaro in-houso or using a pacIago. Mosl organizalions inslaIIing 360-dogroo
foodbacI do, in facl, purchaso a pacIago fron a consuIlancy or soflvaro houso.
Bul lho ain shouId bo lo Ioop il as sinpIo as possibIo.
7. Plcn iniiicl implcmcniciicn prcgrcmmc ÷ il is dosirabIo lo piIol lho procoss, profor-
abIy al lop IovoI or vilh aII lho nanagors in a funclion or doparlnonl. Tho piIol
schono viII nood lo bo Iaunchod vilh connunicalions lo lhoso invoIvod aboul
lho purposo of 360-dogroo foodbacI, hov il viII vorI and lho parl lhoy viII pIay.
Tho ain is lo spoII oul lho bonofils and, as far as possibIo, aIIay any foars. Training
in giving and rocoiving foodbacI viII aIso bo nocossary.
8. Anclqsc cuiccmc cj pilci sc|cmc ÷ lho roaclions of lhoso laIing parl in a piIol
schono shouId bo anaIysod and nocossary changos nado lo lho procoss, lho
connunicalion pacIago and lho lraining.
9. Plcn cn! implcmcni jull prcgrcmmc ÷ lhis shouId incIudo briofing, connunicaling,
lraining and supporl fron HR and, possibIy, lho oxlornaI consuIlanls.
10. Mcniicr cn! ctclucic ÷ nainlain a parlicuIarIy cIoso valch on lho iniliaI inpIo-
nonlalion of foodbacI, bul noniloring shouId conlinuo. This is a procoss lhal can
causo anxioly and slross, or produco IillIo praclicaI gain in lorns of dovoIopnonl
and inprovod porfornanco for a Iol of offorl.
360-DLCkLL lLLDßACK - ADVAN1ACLS AND
DlSADVAN1ACLS
Tho survoy conduclod by lho Iorfornanco Managononl Group in 1997 (unpub-
Iishod) rovoaIod lhal rospondonls boIiovod lho foIIoving bonofils rosuIlod fron using
360-dogroo foodbacI:
IndividuaIs gol a broador porspoclivo of hov lhoy aro porcoivod by olhors lhan
proviousIy possibIo.
Incroasod avaronoss of and roIovanco of conpoloncios.
Incroasod avaronoss by sonior nanagononl lhal lhoy loo havo dovoIopnonl
noods.
Moro roIiabIo foodbacI lo sonior nanagors aboul lhoir porfornanco.
Gaining accoplanco of lho principIo of nuIlipIo slaIohoIdors as a noasuro of
porfornanco.
Encouraging noro opon foodbacI ÷ nov insighls.
Roinforcing lho dosirod conpoloncios of lho businoss.
Irovidod a cIoaror picluro lo sonior nanagononl of individuaI's roaI vorlh
(aIlhough lhoro londod lo bo sono ´haIo'-offocl syndronos).
CIarifiod lo onpIoyoos crilicaI porfornanco aspocls.
Opons up foodbacI and givos poopIo a noro roundod viov of porfornanco lhan
lhoy had proviousIy.
Idonlifying Ioy dovoIopnonl aroas for lho individuaI, a doparlnonl and lho
organizalion as a vhoIo.
Idonlify slronglhs lhal can bo usod lo lho bosl advanlago of lho businoss.
A roundod viov of an individuaI's/loan's/lho organizalion's porfornanco and
vhal ils slronglhs and voaInossos aro.
Il has raisod lho soIf-avaronoss of poopIo nanagors of hov lhoy porsonaIIy
inpacl upon olhors ÷ posilivoIy and nogalivoIy.
Il is supporling a cIinalo of conlinuous inprovononl.
Il is slarling lo inprovo lho cIinalo/noraIo, as noasurod lhrough our onpIoyoo
opinion survoy.
Focusod agonda for dovoIopnonl. Forcod Iino nanagors lo discuss dovoIopnonl
issuos.
Iorcoplion of foodbacI as noro vaIid and ob¡oclivo, Ioading lo accoplanco of
rosuIls and aclions roquirod.
Bul lhoro nay bo probIons. Thoso incIudo:
poopIo nol giving franI or honosl foodbacI,
poopIo boing pul undor slross in rocoiving or giving foodbacI,
IacI of aclion foIIoving foodbacI,
ovor-roIianco on lochnoIogy,
loo nuch buroaucracy.
Thoso can aII bo nininizod if nol avoidod conpIoloIy by carofuI dosign, connunica-
lion, lraining and foIIov-up.
360-DLCkLL lLLDßACK - Ckl1LklA lCk SLCCLSS
360-dogroo foodbacI is nosl IiIoIy lo bo succossfuI vhon:
il has lho aclivo supporl of lop nanagononl vho lhonsoIvos laIo parl in giving
and rocoiving foodbacI and oncourago ovoryono oIso lo do lho sano,
lhoro is connilnonl ovoryvhoro oIso lo lho procoss basod on briofing, lraining
and an undorslanding of lho bonofils lo individuaIs as voII as lho organizalion,
lhoro is roaI dolorninalion by aII concornod lo uso foodbacI dala as lho basis for
dovoIopnonl,
quoslionnairo ilons fil or rofIocl lypicaI and significanl aspocls of bohaviour,
ilons covorod in lho quoslionnairo can bo roIalod lo acluaI ovonls oxporioncod by
lho individuaI,
conprohonsivo and voII-doIivorod connunicalion and lraining progrannos aro
foIIovod,
no ono fooIs lhroalonod by lho procoss ÷ lhis is usuaIIy oflon achiovod by naIing
foodbacI anonynous and/or golling a lhird-parly faciIilalor lo doIivor lho food-
bacI,
foodbacI quoslionnairos aro roIalivoIy oasy lo conpIolo (nol unduIy conpIox or
Ionglhy, vilh cIoar inslruclions),
buroaucracy is nininizod,
360-dogroo foodbacI is nol Iinilod lo pay ÷ ils nain purposo is dovoIopnonlaI,
nol financiaI rovard.
Humun rosourco
dovoíopmont
Humcn rcscurcc !ctclcpmcni (HRD) is ccnccrnc! uii| i|c prctisicn cj lccrning,
!ctclcpmcni cn! ircining cppcriuniiics in cr!cr ic imprctc in!iti!ucl, iccm cn!
crgcnizciicncl pcrjcrmcncc. HRD is csscniicllq c |usincss-lc! cpprccc| ic !ctclcping
pccplc uii|in c sircicgic jrcmcucr|.
1|is pcri ccnsi!crs |umcn rcscurcc !ctclcpmcni un!cr i|c jcllcuing |cc!ings.
Sircicgic |umcn rcscurcc !ctclcpmcni ÷ !cjiniiicn, cims cn! cciitiiics.
Orgcnizciicncl lccrning ÷ i|c prcccss cj crgcnizciicncl lccrning cn! i|c ccnccpi
cj i|c lccrning crgcnizciicn
Hcu pccplc lccrn ÷ c rcticu cj lccrning i|ccrq cs ii cjjccis in!iti!ucl lccrning
Iccrning cn! !ctclcpmcni ÷ |cu crgcnizciicns mc|c crrcngcmcnis jcr cpprc-
pricic lccrning cn! !ctclcpmcni ic ic|c plccc |q tcricus mccns, inclu!ing
ircining.
|-lccrning ÷ i|c usc cj clccircnic mci|c!s cj suppcriing lccrning.
Mcncgcmcni !ctclcpmcni ÷ imprcting i|c pcrjcrmcncc cj mcncgcrs, cnccur-
cging sclj-!ctclcpmcni cn! giting i|cm cppcriuniiics jcr grcui|, i|c ccnccpi cj
cmciicncl iniclligcncc cn! iis rclctcncc ic i|c !ctclcpmcni cj cjjcciitc mcncgcrs
lcrmulciing cn! implcmcniing lccrning cn! !ctclcpmcni sircicgics.
 
Strutogìc humun rosourco
dovoíopmont
S1kA1LClC HkD DLllNLD
Slralogic hunan rosourco nanagononl vas dofinod by HaII (1984) as: ´Tho idonlifica-
lion of noodod sIiIIs and aclivo nanagononl of Ioarning for lho Iong rango fuluro in
roIalion lo oxpIicil corporalo and businoss slralogy.' A Ialor dofinilion vas providod
by WaIlon (1999) as foIIovs:
Strutogìc humun rosourco dovoíopmont ìnvoívos ìntroducìng, oíìmìnutìng, modìlyìng,
dìroctìng und guìdìng procossos ìn such u vuy thut uíí ìndìvìduuís und toums uro
oquìppod vìth tho skìíís, knovíodgo und compotoncos thoy roquìro to undortuko curront
und luturo tusks roquìrod by tho orgunìzutìon.
As doscribod by Harrison (2000), slralogic HRD is ´dovoIopnonl lhal arisos fron a
cIoar vision aboul poopIo's abiIilios and polonliaI and oporalos vilhin lho ovoraII
slralogic franovorI of lho businoss'. Slralogic HRD laIos a broad and Iong-lorn
viov aboul hov HRD poIicios and praclicos can supporl lho achiovononl of businoss
slralogios. Il is businoss-Iod and lho Ioarning and dovoIopnonl slralogios lhal aro
oslabIishod as parl of lho ovoraII slralogic HRD approach fIov fron businoss slralo-
gios and havo a posilivo roIo in hoIping lo onsuro lhal lho businoss allains ils goaIs.

S1kA1LClC HkD AlMS
Tho fundanonlaI ain of slralogic HRD is lo onhanco rosourco capabiIily in accor-
danco vilh lho boIiof lhal lho hunan capilaI of an organizalion is a na¡or sourco of
conpolilivo advanlago. Il is lhoroforo aboul onsuring lhal lho righl quaIily poopIo aro
avaiIabIo lo nool prosonl and fuluro noods. This is achiovod by producing a cohoronl
and conprohonsivo franovorI for dovoIoping poopIo.
Tho spocific ob¡oclivos of slralogic HRD aro lo dovoIop inloIIocluaI capilaI and
pronolo organizalionaI, loan and individuaI Ioarning by croaling a Ioarning cuIluro ÷
an onvironnonl in vhich onpIoyoos aro oncouragod lo Ioarn and dovoIop and in
vhich InovIodgo is nanagod syslonalicaIIy.
AIlhough slralogic HRD is businoss-Iod, ils poIicios havo lo laIo inlo accounl indi-
viduaI aspiralions and noods. Tho inporlanco of incroasing onpIoyabiIily oulsido as
voII as vilhin lho organizalion is an inporlanl HRD poIicy considoralion.
CCMlCNLN1S Cl HkD
534 Humun rosourco dovoíopmont
Human resource development
Organizational
learning
Blended
learning
Training
Knowledge
management
Self-directed
learning
Workplace
training
Learning
organization
E-learning
Formal off-
the-job
training
Coaching
Mentoring
FIgurc 35.1 Conpononls of hunan rosourco dovoIopnonl
Management
development
Ìndividual
learning and
development
HkD AND HkM
HRD poIicios aro cIosoIy associalod vilh lhal aspocl of HRM lhal is concornod vilh
invosling in poopIo and dovoIoping lho organizalion's hunan capilaI. As Koop (1989)
says:
Cno ol tho prìmury ob¡octìvos ol HkM ìs tho croutìon ol condìtìons vhoroby tho íutont
potontìuí ol ompíoyoos vìíí bo rouíìzod und thoìr commìtmont to tho cuusos ol tho orgu-
nìzutìon socurod. 1hìs íutont potontìuí ìs tukon to ìncíudo, not moroíy tho cupucìty to
ucquìro und utìíìzo nov skìíís und knovíodgo, but uíso u hìthorto untuppod vouíth ol
ìdous ubout hov tho orgunìzutìon's oporutìons mìght bo bottor ordorod.
1HL lkCCLSS Cl LLAkNlNC AND DLVLLClMLN1
Loarning and dovoIopnonl vas dofinod by lho CIID (2001) as foIIovs:
1ho orgunìzutìonuí procoss ol dovoíopìng poopío ìnvoívos tho ìntogrutìon ol íournìng und
dovoíopmont procossos, oporutìons und roíutìonshìps. lts most povorluí outcomos lor
tho busìnoss uro to do vìth onhuncod orgunìzutìonuí olloctìvonoss und sustuìnubìíìty. lor
tho ìndìvìduuí thoy uro to do vìth onhuncod porsonuí compotonco, uduptubìíìty und
ompíoyubìíìty. lt ìs thoroloro u crìtìcuí busìnoss procoss ìn lor-prolìt or not-lor-prolìt orgu-
nìzutìons.
Tho oIononls of lhis procoss aro:
Iccrning ÷ dofinod by Bass and Vaughan (1966) as á roIalivoIy pornanonl chango
in bohaviour lhal occurs as a rosuIl of praclico or oxporionco'.
|!ucciicn ÷ lho dovoIopnonl of lho InovIodgo, vaIuos and undorslanding
roquirod in aII aspocls of Iifo ralhor lhan lho InovIodgo and sIiIIs roIaling lo
parlicuIar aroas of aclivily.
Dctclcpmcni ÷ lho grovlh or roaIizalion of a porson's abiIily and polonliaI lhrough
lho provision of Ioarning and oducalionaI oxporioncos.
1rcining ÷ lho pIannod and syslonalic nodificalion of bohaviour lhrough Ioarning
ovonls, progrannos and inslruclion, vhich onabIo individuaIs lo achiovo lho
IovoIs of InovIodgo, sIiII and conpolonco noodod lo carry oul lhoir vorI offoc-
livoIy.
Strutogìc humun rosourco dovoíopmont 535
S1kA1LClLS lCk HkD
S|ra|cgíc príorí|íc·
Tho slralogic priorilios for hunan rosourco dovoIopnonl as dofinod by Harrison
(2005) aro lo:
raiso avaronoss of lho nood for a Ioarning cuIluro lhal Ioads lo conlinuous
inprovononl,
dovoIop lho conpolonco of nanagors lo bocono aclivoIy invoIvod in Ioarning lhal
Ioads lo InovIodgo croalion,
oxpand Ioarning capacily lhroughoul lho organizalion,
focus on aII lho organizalion's InovIodgo vorIors, nol ¡usl lho Ioy porsonnoI,
harnoss o-Ioarning lo InovIodgo sharing and InovIodgo croalion.
Dcvcíopmcn| ·|cp·
Tho slops roquirod lo dovoIop a Ioarning and dovoIopnonl slralogy as doscribod by
Harrison (2005) aro:
1. Agroo on lho slralogy-naIing loan.
2. CIarify organizalionaI nission.
3. ExpIoro coro vaIuos.
4. Idonlify lho slralogic issuos facing lho organizalion.
5. Agroo on slralogy and slralogic pIan.
\odcí· for |hc dcíívcr, of |hc ·|ra|cg,
Carlor   (2002) suggosl lhal lho foIIoving nodoIs aro avaiIabIo lo doIivor HRD
slralogy:
conlraIizod ÷ aII Ioarning and dovoIopnonl aclivilios aro conduclod and
conlroIIod fron lho conlro,
Ioy accounl hoIdor ÷ a snaII corporalo conlro is rosponsibIo for caroor nanago-
nonl and nanagononl dovoIopnonl procossos, Ioy accounl hoIdors aro rospon-
sibIo lo lho conlro for doIivoring Ioarning and lraining in businoss unils,
dovoIvod ÷ aII Ioarning and dovoIopnonl aclivilios aro dovoIvod lo businoss
unils,
businoss parlnor ÷ Ioy accounl hoIdors roporl lo businoss unil,
sharod sorvico ÷ businoss unils sharo connon Ioarning and dovoIopnonl sorvicos
and spocify vhal lhoy vanl lo lho corporalo conlro,
oulsourcod ÷ lraining oulsourcod lo providors by corporalo conlro or businoss
unils,
slaIohoIdor ÷ snaII corporalo conlro ongagos in lransfornalionaI Ioarning aclivi-
lios, soparalo sharod sorvico faciIilios aro usod, Ioarning and dovoIopnonl pracli-
lionors acl as businoss parlnors and spociaIizod Ioarning is oulsourcod.
HLMAN kLSCLkCL DLVLLClMLN1 lHlLCSClHY
A hunan rosourco dovoIopnonl phiIosophy couId bo oxprossod in lho foIIoving
lorns:
Strutogìc humun rosourco dovoíopmont 537
Wo boIiovo lhal:
Hunan rosourco dovoIopnonl naIos a na¡or conlribulion lo lho succossfuI
allainnonl of lho organizalion's ob¡oclivos and lhal invoslnonl in il bonofils
aII lho slaIohoIdors of lho organizalion.
Hunan rosourco dovoIopnonl pIans and progrannos shouId bo inlogralod
vilh and supporl lho achiovononl of businoss and hunan rosourco slralogios.
Hunan rosourco dovoIopnonl shouId aIvays bo porfornanco-roIalod ÷
dosignod lo achiovo spocifiod inprovononls in corporalo, funclionaI, loan
and individuaI porfornanco, and naIo a na¡or conlribulion lo bollon-Iino
rosuIls.
Evoryono in lho organizalion shouId bo oncouragod and givon lho opporlu-
nily lo Ioarn ÷ lo dovoIop lhoir sIiIIs and InovIodgo lo lho naxinun of lhoir
capacily.
IorsonaI dovoIopnonl procossos provido lho franovorI for individuaI
Ioarning.
WhiIo vo rocognizo lho nood lo invosl in Ioarning and dovoIopnonl and lo
provido approprialo Ioarning opporlunilios and faciIilios, lho prino rosponsi-
biIily for dovoIopnonl rosls vilh lho individuaI, vho viII bo givon lho guid-
anco and supporl of his or hor nanagor and, as nocossary, nonbors of lho HR
doparlnonl.
Crgunìzutìonuí íournìng und tho
íournìng orgunìzutìon
OrganizalionaI Ioarning lhoory is concornod vilh hov Ioarning laIos pIaco in organi-
zalions. Il focusos on coIIoclivo Ioarning bul laIos inlo accounl lho proposilion nado
by Argyris (1992) lhal organizalions do nol porforn lho aclions lhal produco lho
Ioarning, il is individuaI nonbors of lho organizalion vho bohavo in vays lhal Ioad
lo il, aIlhough organizalions can croalo condilions vhich faciIilalo such Ioarning. Tho
concopl of organizalionaI Ioarning as discussod in lho firsl soclion of lhis chaplor
rocognizos lhal lho vay in vhich lhis laIos pIaco is affoclod by lho conloxl of lho orga-
nizalion and ils cuIluro.
Tho concopl of a Ioarning organizalion, vhich is oflon associalod vilh lhal of
organizalionaI Ioarning, has boon dofinod by Scarborough and Carlor (2000) as ono
´lhal is abIo lo discovor vhal is offoclivo by rofraning ils ovn oxporioncos and
Ioarning fron lhal procoss'. Tho nolion of lho Ioarning organizalion is sonolinos
confusod vilh lho concopl of organizalionaI Ioarning. Hovovor, Harrison (2002)
poinls oul lhal il is oflon assunod lhal ´lho Ioarning organizalion' and órganizalionaI
Ioarning' aro synonynous procossos, yol lhoy aro nol.

CkCANlZA1lCNAL LLAkNlNC
OrganizalionaI Ioarning is dofinod by Easlorby-Snilh and Arau¡o (1999) as an óffi-
cionl procoduro lo procoss, inlorprol and rospond lo bolh inlornaI and oxlornaI infor-
nalion of a prodoninanlIy oxpIicil naluro'. OrganizalionaI Ioarning is concornod
vilh lho dovoIopnonl of nov InovIodgo or insighls lhal havo lho polonliaI lo infIu-
onco bohaviour (Maboy and SaIanan, 1995). Il laIos pIaco vilhin lho vido inslilu-
lionaI conloxl of inlor-organizalionaI roIalionships (Gopporl, 1996), and ´rofors
broadIy lo an organizalion's acquisilion of undorslanding, Inov-hov, lochniquos
and praclicos of any Iind and by any noans' (Argyris and Schon, 1996).
OrganizalionaI Ioarning lhoory oxaninos hov in lhis conloxl individuaI and loan
Ioarning can bo lransIalod inlo an organizalionaI rosourco and is lhoroforo IinIod lo
procossos of InovIodgo nanagononl (soo Chaplor 12).
OrganizalionaI Ioarning has boon dofinod by MarsicI (1994) as a procoss of ćo-
ordinalod syslons chango, vilh nochanisns buiIl in for individuaIs and groups lo
accoss, buiId and uso organizalionaI nonory, slrucluro and cuIluro lo dovoIop Iong-
lorn organizalionaI capacily'.
Il is onphasizod by Harrison (2000) lhal organizalionaI Ioarning is nol sinpIy lho
sun of lho Ioarning of individuaIs and groups across lho organizalion. Sho connonls
lhal: ´Many sludios (soo for oxanpIo Argyris and Schon, 1996) havo confirnod lhal
vilhoul offoclivo procossos and syslons IinIing individuaI and organizalionaI
Ioarning, lho ono has no nocossary counlorparl vilh lho olhor'.
Cu|comc· of organí2a|íonaí ícarníng
OrganizalionaI Ioarning oulconos conlribulo lo lho dovoIopnonl of a firn's rosourco-
basod capabiIily. This is in accordanco vilh ono of lho basic principIos of hunan
rosourco nanagononl, nanoIy lhal il is nocossary lo invosl in poopIo in ordor lo
dovoIop lho inloIIocluaI capilaI roquirod by lho organizalion and lhus incroaso ils
slocI of InovIodgo and sIiIIs. As slalod by Ehronborg and Snilh (1994), hunan
capilaI lhoory indicalos lhal: ´Tho InovIodgo and sIiIIs a vorIor has ÷ vhich conos
fron oducalion and lraining, incIuding lho lraining lhal oxporionco brings ÷ gonoralo
produclivo capilaI'.
Iolligrov and Whipp (1991) boIiovo lhal lho focus of organizalionaI Ioarning
shouId bo on dovoIoping órganizalionaI capabiIily'. This noans paying allonlion lo
lho inlricalo and oflon unnolicod or hiddon Ioarning lhal laIos pIaco and infIuoncos
vhal occurs vilhin lho organizalion. ´Hiddon Ioarning' is acquirod and dovoIopod in
lho nornaI courso of vorI by poopIo acling as individuaIs and, inporlanlIy, in
groups or ćonnunilios of praclico' (Wongor and Snydor, 2000).
Thc procc·· of organí2a|íonaí ícarníng
OrganizalionaI Ioarning can bo characlorizod as an inlricalo lhroo-slago procoss
consisling of InovIodgo acquisilion, dissoninalion and sharod inpIononlalion
(DaIo, 1994). KnovIodgo nay bo acquirod fron dirocl oxporionco, lho oxporionco of
olhors or organizalionaI nonory.
Argyris (1992) suggosls lhal organizalionaI Ioarning occurs undor lvo condilions:
firsl, vhon an organizalion achiovos vhal is inlondod, and socond, vhon a nisnalch
bolvoon inlonlions and oulconos is idonlifiod and corroclod. Ho dislinguishos
bolvoon singIo-Ioop and doubIo-Ioop Ioarning. Thoso lvo lypos of Ioarning havo
boon doscribod by Wosl (1996) as adaplivo or gonoralivo Ioarning.
SingIo-Ioop or adaplivo Ioarning is soquonliaI, incrononlaI and focusod on issuos
and opporlunilios lhal aro vilhin lho scopo of lho organizalion's aclivilios. As
doscribod by Argyris (1992), organizalions vhoro singIo-Ioop Ioarning is lho norn
dofino lho ´govorning variabIos' ÷ vhal lhoy oxpocl lo achiovo in lorns of largols and
slandards ÷ and lhon nonilor and roviov achiovononls, and laIo corroclivo aclion as
nocossary, lhus conpIoling lho Ioop. DoubIo-Ioop Ioarning occurs vhon lho noni-
loring procoss inilialos aclion lo rodofino lho ´govorning variabIos' lo nool lho nov
silualion, vhich nay bo inposod by lho oxlornaI onvironnonl. Tho organizalion has
Ioarnl sonolhing nov aboul vhal has lo bo achiovod in lho Iighl of changod circun-
slancos, and can lhon docido hov lhis shouId bo achiovod. This Ioarning is convorlod
inlo aclion. Tho procoss is iIIuslralod in Figuro 36.1.
Crgunìzutìonuí íournìng und tho íournìng orgunìzutìon 54l
Define expectations
Take action
Single-loop learning
Double-loop learning
Decide on corrective
action as necessary
Redefine expectations
as necessary
Monitor and
review
FIgurc 36.1 SingIo- and doubIo-Ioop Ioarning
Argyris boIiovos lhal singIo-Ioop Ioarning is approprialo for roulino, ropolilivo issuos
÷ íl hoIps gol lho ovoryday ¡ob dono'. DoubIo-Ioop Ioarning is noro roIovanl for
conpIox, non-progrannabIo issuos. As IicIard (1997) poinls oul, doubIo-Ioop
Ioarning quoslions vhy lho probIon occurrod in lho firsl pIaco, and lacIIos ils rool
causos, ralhor lhan sinpIy addrossing ils surfaco synplons, as happons vilh singIo-
Ioop Ioarning.
OrganizalionaI Ioarning laIos pIaco in a Ioarning cycIo as shovn in Figuro 36.2.
Agreeing
Working with
others to
explore
learning needs
Reviewing and
consuItation
By considering
broader organizational
implications and
changing practices
ImpIementation
By all parties
fulfilling
their part of the
agreement
ModeIIing
Ìdentifying with
other types of
learning
opportunities to
help respond to
Questioning
Exploring with
others the
outcomes and
behaviour
required
Negotiation
To agree rights and
opportunities to support
personal and team change
FIgurc 36.2 Managing Ioarning lo add vaIuo, lho Ioarning cycIo
(Scurcc. Nov Loarning for Nov WorI Consorliun, Mcncging Iccrning jcr A!!c! Vcluc, IID,
1999)
|ríncípíc· of organí2a|íonaí ícarníng
Harrison (1997) has dofinod fivo principIos of organizalionaI Ioarning:
1. Tho nood for a povorfuI and cohoring vision of lho organizalion lo bo connuni-
calod and nainlainod across lho vorIforco in ordor lo pronolo avaronoss of lho
nood for slralogic lhinIing al aII IovoIs.
2. Tho nood lo dovoIop slralogy in lho conloxl of a vision lhal is nol onIy povorfuI
bul aIso opon-ondod and unanbiguous. This viII oncourago a soarch for a vido
ralhor lhan a narrov rango of slralogic oplions, viII pronolo IaloraI lhinIing and
viII orionl lho InovIodgo croaling aclivilios of onpIoyoos.
3. Wilhin lho franovorI of vision and goaIs, froquonl diaIoguo, connunicalion
and convorsalions aro na¡or faciIilalors of organizalionaI Ioarning.
4. Il is ossonliaI conlinuousIy lo chaIIongo poopIo lo ro-oxanino vhal lhoy laIo for
granlod.
5. Il is ossonliaI lo dovoIop a conducivo Ioarning and innovalion cIinalo.
1HL LLAkNlNC CkCANlZA1lCN
Tho phiIosophy undorpinning lho Ioarning organizalion concopl, as oxprossod by
Garvin (1993), is lhal Ioarning is an ossonliaI ingrodionl if organizalions aro lo
survivo, lhal Ioarning al oporalionaI, poIicy and slralogic IovoIs noods lo bo conscious,
conlinuous and inlogralod, and lhal nanagononl is rosponsibIo for croaling an
onolionaI cIinalo in vhich aII slaff can Ioarn conlinuousIy.
Dcfíní|íon of a ícarníng organí2a|íon
Songo (1990), vho croalod lho lorn, doscribod a Ioarning organizalion as ono ´vhoro
poopIo conlinuaIIy oxpand lhoir capacily lo croalo lho rosuIls lhoy lruIy dosiro, vhoro
nov and oxpansivo pallorns of lhinIing aro nurlurod, vhoro coIIoclivo aspiralion is
sol froo, and vhoro poopIo aro conlinuaIIy Ioarning hov lo Ioarn logolhor'.
Thoro havo boon nany olhor dofinilions of a Ioarning organizalion, aII of vhich aro
aspiralionaI in lho voin of Songo. IodIor   (1991) slalo lhal a Ioarning organizalion
is ono ´vhich faciIilalos lho Ioarning of aII ils nonbors and conlinuaIIy lransforns
ilsoIf'. WicI and Loon (1995) rofor lo a Ioarning organizalion as ono lhal ćonlinuaIIy
inprovos by rapidIy croaling and rofining lho capabiIilios roquirod for fuluro
succoss'.
Garvin (1993) dofinos a Ioarning organizalion as ono vhich is ´sIiIIod al croaling,
acquiring, and lransforring InovIodgo, and al nodifying ils bohaviour lo rofIocl nov
Crgunìzutìonuí íournìng und tho íournìng orgunìzutìon 543
InovIodgo and insighls'. Ho boIiovos lhal Ioarning organizalions onsuro lhal lhoy
Ioarn fron oxporionco, dovoIop conlinuous inprovononl progrannos, uso syslon-
alic probIon-soIving lochniquos, and lransfor InovIodgo quicIIy and officionlIy
lhroughoul lho organizalion by noans of fornaI lraining progrannos IinIod lo
inpIononlalion.
As Burgoyno (1994) has poinlod oul, Ioarning organizalions havo lo bo abIo lo
adapl lo lhoir conloxl and dovoIop lhoir poopIo lo nalch lho conloxl. Many indi-
viduaI ¡obs couId bo Ioarnl by procossos of ńaluraI discovory' ralhor lhan fornuIa
Ioarning. His dofinilion (1988a) of a Ioarning organizalion is lhal il channoIs lho caroor
and Iifo-pIanning aclivilios of individuaI nanagors in a vay lhal aIIovs lho organiza-
lion lo nool ils slralogic noods. This is dono by oncouraging lho idonlificalion of indi-
viduaI noods, organic fornuIalion of businoss slralogy vilh inpuls fron lraining
doparlnonls on curronl sIiIIs, and conlinuaI organizalionaI roviov and Ioarning fron
oxporionco. In 1999 ho suggoslod lhal a Ioarning organizalion ´providos a hoaIlhy
onvironnonl for naluraI Ioarning'.
Kc, príncípíc· of |hc ícarníng organí2a|íon
MiIIor and Slovarl (1999) proposo lho foIIoving Ioy principIos of lho Ioarning organi-
zalion:
Ioarning and businoss slralogy aro cIosoIy IinIod,
lho organizalion consciousIy Ioarns fron businoss opporlunilios and lhroals,
individuaIs, groups and lho vhoIo organizalion aro nol onIy Ioarning bul aIso
Ioarning hov lo Ioarn,
infornalion syslons and lochnoIogy sorvo lo supporl Ioarning ralhor lhan conlroI
il,
lhoro aro voII-dofinod procossos for dofining, croaling, capluring, sharing and
acling on InovIodgo,
lhoso various syslons and dinonsions aro baIancod and nanagod as a vhoIo.
Corporalo univorsilios provido ono vay of pulling lhoso principIos inlo offocl - lhoy
offor an oducalionaI oxporionco laiIorod lo lho spocific noods of lho organizalion, lho
onphasis boing on onpIoyoos conslanlIy ongaging vilh Ioarning and on oducalors
dosigning coursos lhal viII conlinuousIy nolivalo lhon, usuaIIy and sonolinos
vhoIIy in a virluaI onvironnonl. Tho onphasis is on onpIoyoos Ioarning conlinu-
ousIy and on lransforring InovIodgo quicIIy.
Dcvcíopíng a ícarníng organí2a|íon
Ono approach lo lho dovoIopnonl of a Ioarning organizalion, as advocalod by Songo
(1990), is lo focus on coIIoclivo probIon-soIving vilhin an organizalion using loan
Ioarning and a ´sofl syslons' approach vhoroby aII lho possibIo causos of a probIon
aro considorod in ordor lo dofino noro cIoarIy lhoso vhich can bo doaIl vilh and
lhoso vhich aro insoIubIo.
Garrall (1990) boIiovos lhal nanagors havo lo dovoIop Ioarning abiIilios as individ-
uaIs, and vorI and Ioarn as loans. Ho advocalos lho uso of dovoIopnonl aclivilios
such as ¡ob onIargononl, ¡ob onrichnonl, noniloring, and various forns of loan and
pro¡ocl-basod vorI.
Thc ícarníng organí2a|íon and |novícdgc managcmcn|
Loarning organizalions aro vory nuch concornod vilh dovoIoping and sharing lho
InovIodgo lhal is crilicaI lo lhoir slralogic succoss. Tho probIon is lhal il is hard lo
capluro lacil InovIodgo in lho forn of lho doopIy onboddod anaIgan of visdon
and Inov-hov lhal conpolilors aro unabIo lo copy. Molhods of sharing InovIodgo
voro doscribod in Chaplor 12. Ono approach, as advocalod by Wongor and Snydor
(2000), is lo oncourago lho dovoIopnonl of ćonnunilios of praclico' in vhich poopIo
vilh siniIar concorns oxchango idoas and InovIodgo and discuss sharod probIons.
Wongor and Snydor cIain lhal a connunily of praclico couId bo lroalod as a Íoarning
ocoIogy' vilh a Iifo of ils ovn in vhich lhoro is scopo lo rofIocl ¡oinlIy on oxporionco so
lhal il can bo convorlod inlo Ioarning.
Scarborough and Carlor (2000) suggosl lhal aIlhough lho concopls of lho Ioarning
organizalion and organizalionaI Ioarning havo offorod sono vaIuabIo insighls inlo
lho vay in vhich InovIodgo and Ioarning aro foslorod by nanagononl praclico, lhoy
havo boon ovorshadovod, al Ioasl in lorns of praclilionor inlorosl, by lho oxpIosivo
grovlh of InovIodgo nanagononl aclivily. Thoy connonl lhal:
1hìs muy bo uttrìbutubío to tho probíoms ol trunsíutìng thoìr tknovíodgo munugomont
und orgunìzutìonuí íournìng) broud, hoíìstìc prìncìpíos ìnto pructìco. Knovíodgo
munugomont ìnìtìutìvos by contrust, uro olton moro spocìlìcuííy turgotod und cun thoro-
loro bo ìdontìlìod moro cíosoíy vìth busìnoss noods.
|robícm· ví|h |hc conccp| of |hc ícarníng organí2a|íon
Tho nolion of lho Ioarning organizalion ronains porsuasivo bocauso of ils ´ralionaIily,
hunan allraclivonoss and prosunod polonliaI lo aid organizalionaI offoclivonoss and
advancononl' (Harrison, 1997). Bul lho concopl has boon crilicizod by Harrison
(2005) bocauso, ás usuaIIy dofinod, il suggosls lhal organizalions havo a Iifo of lhoir
ovn and aro lhonsoIvos capabIo of Ioarning, vhich is nol lho caso'. Scarborough  
(1999) arguo lhal ´lho doninanl porspoclivo (of lho Ioarning organizalion concopl) is
lhal of organizalion syslons and dosign'. LillIo allonlion soons lo bo paid lo vhal
individuaIs vanl lo Ioarn or hov lhoy Ioarn. Tho idoa lhal individuaIs shouId bo
onabIod lo invosl in lhoir ovn dovoIopnonl (a fundanonlaI lhono of hunan capilaI
lhoory) soons lo havo oscapod Ioarning organizalion lhoorisls, vho aro noro incIinod
lo focus on lho inposilion of Ioarning by lho organizalion, ralhor lhan croaling a
cIinalo conducivo lo coIIaboralivo and soIf-nanagod Ioarning.
Vioving organizalions as Ioarning syslons is a Iinilod nolion. Argyris and Schon
(1996) conlond lhal organizalions aro producls of visions, idoas, norns and boIiofs so
lhal lhoir shapo is nuch noro fragiIo lhan lho organizalion's naloriaI slrucluro.
IoopIo acl as Ioarning agonls for lho organizalion in vays lhal cannol oasiIy bo
syslonalizod. Thoy aro nol onIy individuaI Ioarnors bul aIso havo lho capacily lo
Ioarn coIIaboralivoIy (HoyIo, 1995). Organizalion Ioarning lhoory anaIysos hov lhis
happons and Ioads lo lho boIiof lhal il is lho cuIluro and onvironnonl lhal aro inpor-
lanl, nol lho syslons approach inpIiod by lho concopl of lho Ioarning organizalion.
Argyris and Schon (1996) rofor lo lho praclico-orionlalod and proscriplivo Iiloraluro of
lho Ioarning organizalion, vhich is quilo difforonl fron lho concorns of organizalionaI
Ioarning lhoorisls aboul coIIaboralivo and infornaI Ioarning procossos vilhin organi-
zalions.
Tho nolion of a Ioarning organizalion is sonovhal nobuIous. Il incorporalos
niscoIIanoous idoas aboul hunan rosourco dovoIopnonl, syslonalic lraining, aclion
Ioarning, organizalionaI dovoIopnonl and InovIodgo nanagononl, vilh an infusion
of lho procopls of lolaI quaIily nanagononl. Bul lhoy do nol add up lo a convincing
vhoIo. Easlorby-Snilh (1997) arguos lhal allonpls lo croalo a singIo bosl-praclico
franovorI for undorslanding lho Ioarning organizalion aro fundanonlaIIy fIavod.
Iroscriplions fron lraining spociaIisls and nanagononl consuIlanls abound bul, as
SIonan (1999) assorls, lhoy oflon faiI lo rocognizo lhal Ioarning is a conlinuous
procoss, nol a sol of discrolo lraining aclivilios.
Burgoyno (1999), ono of lho oarIior pubIicisls for lho idoa of a Ioarning organizalion,
has adnillod lhal lhoro has boon sono confusion aboul lho concopl and lhal lhoro
havo boon subslanliaI naivolios in nosl of lho oarIy lhinIing: ´Tho Ioarning organiza-
lion has nol doIivorod ils fuII polonliaI or Iivod up lo aII our aspiralions'. Ho aIso
nonlionod lhal aflor a docado of vorIing vilh lho nolion of lho Ioarning organizalion
lhoro aro dislrossingIy fov, if any, caso sludios of succoss vilh lho idoa on a Iargo
scaIo. Ho boIiovos lhal lho concopl shouId bo inlogralod vilh InovIodgo nanago-
nonl inilialivos so lhal difforonl forns of InovIodgo can bo IinIod, fod by organiza-
lionaI Ioarning and usod in adding vaIuo lo goods and sorvicos. This, ho slalos, viII
ropIaco lho ´sofl' organizalionaI dovoIopnonl looIs of lho 1970s lhal voro prossod
hurriodIy inlo sorvico, ´Tho Ioarning organizalion ran ahoad of lho nolhods avaiIabIo
lo inpIononl il and inlo lhis vacuun voro sucIod lradilionaI approachos such as
loanvorIing, Ioadorship and porsonaI dovoIopnonl.'
Al Ioasl, hovovor, lho Ioarning organizalion novononl has hoIpod lo onphasizo
lho inporlanco of InovIodgo nanagononl as a praclicaI proposilion for pronoling
organizalionaI Ioarning. In addod-vaIuo lorns, lhis is IiIoIy lo provido noro bonofil
lo organizalions lhan pursuing lho viII-o'-lho-visp of lho Ioarning organizalion as
originaIIy concoivod.
Hov poopío íourn
An undorslanding of hov poopIo Ioarn is nocossary if Ioarning is lo laIo pIaco offoc-
livoIy in an organizalion. Tho ains of lhis chaplor aro lo:
dofino lho concopl of Ioarning,
doscribo lho procoss of Ioarning,
sunnarizo lho difforonl vays in vhich poopIo in gonoraI Ioarn (Ioarning lhoory),
doscribo hov individuaIs Ioarn ÷ lhoir Ioarning slyIos and Íoarning lo Ioarn',
oxanino lho concopl of lho Ioarning curvo ÷ hov poopIo achiovo roquirod sIiII
IovoIs,
discuss lho Ioy lopic of lho nolivalion lo Ioarn,
doscribo lho praclicaI inpIicalions of lhoso lhoorios, concopls and approachos,
sol oul lho condilions for offoclivo Ioarning.
LLAkNlNC DLllNLD
Loarning has boon dofinod by Kin (1993) as lho procoss of íncroasing ono's capacily
lo laIo aclion'. As oxpIainod by RoynoIds   (2002) il shouId bo dislinguishod fron
lraining: ´Loarning is lho procoss by vhich a porson acquiros nov InovIodgo, sIiIIs
and capabiIilios vhoroas lraining is ono of sovoraI rosponsos an organizalion can laIo
lo pronolo Ioarning.'

A dislinclion vas aIso nado bolvoon Ioarning and dovoIopnonl by IodIor  
(1989), vho soo Ioarning as boing concornod vilh an incroaso in InovIodgo or a
highor dogroo of an oxisling sIiII, vhoroas dovoIopnonl is noro lovards a difforonl
slalo of boing or funclioning. Argyris (1993) naIos lho poinl lhal ´Loarning is nol
sinpIy having a nov insighl or a nov idoa. Loarning occurs vhon vo laIo offoclivo
aclion, vhon vo dolocl and corrocl orror. Hov do you Inov vhon you Inov sono-
lhing` Whon you can produco vhal il is you cIain lo Inov.'
1HL LLAkNlNC lkCCLSS
A nunbor of Ioading aulhorilios on Ioarning in organizalions (Honoy, 1998) havo
docIarod lhal Íoarning is conpIox and various, covoring aII sorls of lhings such as
InovIodgo, sIiIIs, insighls, boIiofs, vaIuos, alliludos and habils'. IndividuaIs Ioarn for
lhonsoIvos and Ioarn fron olhor poopIo. Thoy Ioarn as nonbors of loans and by
inloraclion vilh lhoir nanagors, co-vorIors and poopIo oulsido lho organizalion.
IoopIo Ioarn by doing and by inslruclion. Tho vays in vhich individuaIs Ioarn diffor,
and lho oxlonl lo vhich lhoy Ioarn doponds IargoIy on hov voII lhoy aro oxlornaIIy
nolivalod or soIf-nolivalod.
Tho offoclivonoss of Ioarning viII bo slrongIy infIuoncod by lho conloxl in vhich il
laIos pIaco. This incIudos lho vaIuos of lho organizalion. Is il lruIy boIiovod lhal
Ioarning is inporlanl as a noans of dovoIoping a high porfornanco cuIluro and
achioving conpolilivo advanlago` Is lhis boIiof confirnod by aclions lhal oncourago
and supporl Ioarning` Is lho approach lo Ioarning doIivory in Iino vilh lho boIiof of
BirchaII and Lyons (1995) lhal ´For offoclivo Ioarning lo laIo pIaco al lho individuaI
IovoI il is ossonliaI lo foslor an onvironnonl vhoro individuaIs aro oncouragod lo laIo
risIs and oxporinonl, vhoro nislaIos aro loIoralod, bul vhoro noans oxisl for lhoso
invoIvod lo Ioarn fron lhoir oxporioncos'`
LLAkNlNC 1HLCkY
Thoro aro a nunbor of Ioarning lhoorios, oach of vhich focusos on difforonl aspocls of
lho Ioarning procoss as appIiod lo poopIo in gonoraI. Tho nain lhoorios aro concornod
vilh:
roinforcononl,
cognilivo Ioarning,
oxporionliaI Ioarning,
sociaI Ioarning.
Rcínforccmcn| |hcor,
Roinforcononl lhoory is basod on lho vorI of SIinnor (1974). Il oxprossos lho boIiof
lhal changos in bohaviour laIo pIaco as a rosuIl of an individuaI's rosponso lo ovonls
or slinuIi, and lho onsuing consoquoncos (rovards or punishnonls). IndividuaIs can
bo ćondilionod' lo ropoal lho bohaviour by posilivo roinforcononl in lho forn of
foodbacI and InovIodgo of rosuIls.
Gagno (1977) Ialor dovoIopod his slinuIus-rosponso lhoory, vhich roIalos lho
Ioarning procoss lo a nunbor of faclors, incIuding roinforcononl, nanoIy:
Dritc ÷ lhoro nusl bo a basic nood or drivo lo Ioarn.
Siimulus ÷ poopIo nusl bo slinuIalod by lho Ioarning procoss.
Rcspcnsc ÷ poopIo nusl bo hoIpod by lho Ioarning procoss lo dovoIop approprialo
rosponsos, in olhor vords, lho InovIodgo, sIiIIs and alliludos lhal viII Ioad lo
offoclivo porfornanco.
Rcinjcrccmcni ÷ lhoso rosponsos nood lo bo roinforcod by foodbacI and oxporionco
unliI lhoy aro Ioarnl.
Cogní|ívc ícarníng |hcor,
Cognilivo Ioarning invoIvos gaining InovIodgo and undorslanding by absorbing
infornalion in lho forn of principIos, concopls and facls, and lhon inlornaIizing il.
Loarnors can bo rogardod as povorfuI infornalion procossing nachinos
Lxpcrícn|íaí ícarníng |hcor,
IoopIo aro aclivo agonls of lhoir ovn Ioarning (RoynoIds ci cl 2002). ExporionliaI
Ioarning laIos pIaco vhon poopIo Ioarn fron lhoir oxporionco by rofIocling on il so
lhal il can bo undorslood and appIiod. Loarning is lhoroforo a porsonaI ćonslruclion'
of noaning lhrough oxporionco. Ćonslruclivisls' such as Rogors (1983) boIiovo lhal
oxporionliaI Ioarning viII bo onhancod lhrough faciIilalion ÷ croaling an onvironnonl
in vhich poopIo can bo slinuIalod lo lhinI and acl in vays lhal hoIp lhon lo naIo
good uso of lhoir oxporionco.
Socíaí ícarníng |hcor,
SociaI Ioarning lhoory slalos lhal offoclivo Ioarning roquiros sociaI inloraclion. Wongor
(1998) suggoslod lhal vo aII parlicipalo in ćonnunilios of praclico' (groups of poopIo
vilh sharod oxporliso vho vorI logolhor) and lhal lhoso aro our prinary sourcos of
Ioarning. Bandura (1977) viovs Ioarning as a sorios of infornalion procossing slops
sol in lrain by sociaI inloraclions.
Hov poopío íourn 55l
LLAkNlNC S1YLLS
Loarning lhoorios doscribo in gonoraI lorns hov poopIo Ioarn, bul individuaI Ioarnors
viII havo difforonl slyIos ÷ a proforonco for a parlicuIar approach lo Ioarning. Tho lvo
nosl faniIiar cIassificalions of Ioarning slyIos aro lhoso producod by KoIb and by
Honoy and Munford.
Koíb'· ícarníng ·|,íc ínvcn|or,
KoIb ci cl (1974) idonlifiod a Ioarning cycIo consisling of four slagos as shovn in
Figuro 37.1. Ho dofinod lhoso slagos as foIIovs:
Ccncrcic cxpcricncc ÷ lhis can bo pIannod or accidonlaI.
Rcjlcciitc c|scrtciicn ÷ lhis invoIvos aclivoIy lhinIing aboul lho oxporionco and ils
significanco.
A|sircci ccnccpiuclizciicn (i|ccrizing) ÷ gonoraIizing fron oxporionco in ordor lo
dovoIop various concopls and idoas vhich can bo appIiod vhon siniIar silualions
aro oncounlorod.
Aciitc cxpcrimcniciicn ÷ losling lho concopls or idoas in nov silualions. This givos
riso lo a nov concrolo oxporionco and lho cycIo bogins again.
Observations
and reflections
Testing implications
of concepts in new
situations
Concrete
experience
Formation of
abstract concepts
and generalizations
FIgurc 37.1 Tho KoIb Ioarning cycIo
Tho Ioy lo KoIb's nodoI is lhal il is a sinpIo doscriplion of hov oxporionco is
lransIalod inlo concopls vhich aro lhon usod lo guido lho choico of nov oxporioncos.
To Ioarn offoclivoIy, individuaIs nusl shifl fron boing obsorvors lo parlicipanls,
fron dirocl invoIvononl lo a noro ob¡oclivo anaIylicaI dolachnonl. Evory porson
has his or hor ovn Ioarning slyIo, and ono of lho nosl inporlanl arls lhal lrainors
havo lo dovoIop is lo ad¡usl lhoir approachos lo lho Ioarning slyIos of lrainoos.
Trainors nusl acInovIodgo lhoso Ioarning slyIos ralhor lhan lhoir ovn proforrod
approach.
KoIb aIso dofinod lho foIIoving Ioarning slyIos of lrainoos:
Acccmmc!cicrs vho Ioarn by lriaI and orror, conbining lho concrolo oxporionco
and oxporinonlalion slagos of lho cycIo.
Ditcrgcrs vho profor concrolo lo abslracl Ioarning silualions, and rofIoclion lo
aclivo invoIvononl. Such individuaIs havo groal inaginalivo abiIily, and can viov
a conpIolo silualion fron difforonl viovpoinls.
Ccntcrgcrs vho profor lo oxporinonl vilh idoas, considoring lhon for lhoir prac-
licaI usofuInoss. Thoir nain concorn is vholhor lho lhoory vorIs in aclion, lhus
conbining lho abslracl and oxporinonlaI dinonsions.
Assimilcicrs vho IiIo lo croalo lhoir ovn lhoorolicaI nodoIs and assiniIalo a
nunbor of disparalo obsorvalions inlo an ovoraII inlogralod oxpIanalion. Thus
lhoy voor lovards lho rofIoclivo and abslracl dinonsions.
Thc Honc, and \umford ícarníng ·|,íc·
Anolhor anaIysis of Ioarning slyIos vas nado by Honoy and Munford (1996). Thoy
idonlifiod four slyIos:
Aciitisis vho invoIvo lhonsoIvos fuIIy vilhoul bias in nov oxporioncos and rovoI
in nov chaIIongos.
Rcjlccicrs vho sland bacI and obsorvo nov oxporioncos fron difforonl angIos.
Thoy coIIocl dala, rofIocl on il and lhon cono lo a concIusion.
1|ccrisis vho adapl and appIy lhoir obsorvalions in lho forn of IogicaI lhoorios.
Thoy lond lo bo porfoclionisls.
Prcgmciisis vho aro Ioon lo lry oul nov idoas, approachos and concopls lo soo if
lhoy vorI.
Hovovor, nono of lhoso four Ioarning slyIos is oxcIusivo. Il is quilo possibIo lhal ono
porson couId bo bolh a rofIoclor and a lhoorisl, and sonoono oIso couId bo an
aclivisl/pragnalisl, a rofIoclor/pragnalisl or ovon a lhoorisl/pragnalisl.
Hov poopío íourn 553
LLAkNlNC 1C LLAkN
IoopIo Ioarn aII lho lino, and lhrough doing so acquiro InovIodgo, sIiIIs and in-
sighl. Bul lhoy viII Ioarn noro offoclivoIy if lhoy Íoarn hov lo Ioarn'. As dofinod
by Honoy (1998), lho procoss of Ioarning lo Ioarn is lho acquisilion of InovIodgo,
sIiIIs and insighls aboul lho Ioarning procoss ilsoIf. Tho ains, as doscribod by Honoy,
aro lo:
provido a basis for organizing and pIanning Ioarning,
pinpoinl procisoIy vhal has boon Ioarnl and vhal lo do bollor or difforonlIy as a
consoquonco,
sharo vhal has boon Ioarnl vilh olhor poopIo so lhal lhoy bonofil,
chocI on lho quaIily of vhal has boon Ioarnl,
lransfor vhal has boon Ioarnl and appIy il in difforonl circunslancos,
inprovo lho Ioarning procoss ilsoIf so lhal hov poopIo Ioarn, nol ¡usl vhal poopIo
Ioarn, is givon conslanl allonlion.
1HL LLAkNlNC CLkVL
Tho concopl of lho Ioarning curvo rofors lo lho lino il laIos an inoxporioncod porson
lo roach lho roquirod IovoI of porfornanco in a ¡ob or a lasI. This is sonolinos caIIod
lho oxporioncod vorIor's slandard (ESW). Tho slandard Ioarning curvo is shovn in
Figuro 37.2, bul ralos of Ioarning vary, doponding on lho offoclivonoss of lho Ioarning
procoss, lho oxporionco and naluraI apliludo of lho Ioarnor, and lho Iallor's inlorosl in
Ioarning. Bolh lho lino laIon lo roach lho oxporioncod vorIor's slandard and lho
variabIo spood vilh vhich Ioarning laIos pIaco al difforonl linos affocl lho shapo of
lho curvo, as shovn in Figuro 37.3.
Loarning is oflon sloppod, vilh ono or noro pIaloaux vhiIo furlhor progross is
haIlod. This nay bo bocauso Ioarnors cannol conlinuaIIy incroaso lhoir sIiIIs or spoods
of vorI and nood a pauso lo consoIidalo vhal lhoy havo aIroady Ioarnl. Tho oxislonco
of slops such as lhoso shovn in Figuro 37.4 can bo usod vhon pIanning sIiIIs lraining,
lo provido doIiboralo roinforcononl poriods vhon novIy acquirod sIiIIs aro praclisod
in ordor lo achiovo lho oxpoclod slandards.
Whon a lraining noduIo is boing proparod vhich doscribos vhal has lo bo Ioarnl
and lho lraining roquirod lo achiovo lho roquirod IovoIs of sIiII and spood, il is oflon
dosirabIo lo procood slop by slop, laIing ono lasI or parl of a lasI al a lino, roin-
forcing il and lhon progrossivoIy adding olhor parls, consoIidaling al oach slago. This
is caIIod lho progrossivo parls nolhod of lraining.
1HL MC1lVA1lCN 1C LLAkN
IoopIo viII Ioarn noro offoclivoIy if lhoy aro nolivalod lo Ioarn. Tho nolivalion lo
Ioarn can bo dofinod as ´lhoso faclors lhal onorgiso and dirocl bohaviouraI pallorns
organizod around a Ioarning goaI' (Rogors, 1996). As RoynoIds   (2002) connonl,
'Tho disposilion and connilnonl of lho Ioarnor ÷ lhoir nolivalion lo Ioarn ÷ is ono of
EWS
Performance
Time
FIgurc 37.2 Aslandard Ioarning curvo
EWS
Performance
Time
FIgurc 37.3 Difforonl ralos of Ioarning
lho nosl crilicaI faclors affocling Ioarning and lraining offoclivonoss. Undor lho righl
condilions, a slrong disposilion lo Ioarn, onhancod by soIid oxporionco and a posilivo
alliludo, can Ioad lo oxcoplionaI porfornanco.'
Tvo nolivalion lhoorios (doscribod in Chaplor 18) aro parlicuIarIy roIovanl lo
Ioarning. Expoclancy lhoory slalos lhal goaI-diroclod bohaviour is drivon by lho
oxpoclalion of achioving sonolhing lho individuaI rogards as dosirabIo. If individuaIs
fooI lhal lho oulcono of Ioarning is IiIoIy lo bonofil lhon, lhoy viII bo noro incIinod
lo pursuo il. Whon lhoy find lhal lhoir oxpoclalions havo boon fuIfiIIod, lhoir
boIiof lhal Ioarning is vorlhvhiIo viII bo roinforcod. GoaI lhoory slalos lhal noliva-
lion is highor vhon individuaIs ain lo achiovo spocific goaIs, vhon lhoso goaIs aro
accoplod and, aIlhough difficuIl, aro achiovabIo, and vhon lhoro is foodbacI on
porfornanco. Loarning goaIs nay bo sol for individuaIs (bul lo bo offoclivo as noliva-
lors lhoy nusl bo agrood), or individuaIs nay sol lhoir ovn goaIs (soIf-diroclod
Ioarning).
1HL lMlLlCA1lCNS Cl LLAkNlNC 1HLCkY AND
CCNCLl1S
Tho praclicaI inpIicalions of lho Ioarning lhoorios and concopls doscribod abovo aro
sunnarizod in TabIo 37.1.
EWS
Performance
Time
FIgurc 37.4 A sloppod Ioarning curvo
Thcor,/conccp| Con|cn| |rac|ícaí ímpííca|íon·
1ho procoss ol Lournìng ìs compíox und ìs Dìlloront íournìng noods roquìro dìlloront
íournìng uchìovod ìn muny dìlloront vuys. íournìng mothods, olton ìn combìnutìon.
1ho contoxt ìs ìmportunt Lournìng olloctìvonoss doponds on tho
oxtont to vhìch tho orgunìzutìon boíìovos
ìn íournìng und supports ìt
koìnlorcomont ßohuvìours cun bo strongthonod koìnlorcomont thoory undorpìns
thoory by roìnlorcìng thom vìth posìtìvo truìnìng progrummos concornod vìth
loodbuck tcondìtìonìng) dovoíopìng skìíís through ìnstructìon.
ln thoso, tho íournor ìs condìtìonod to
muko u rosponso und rocoìvos ìmmodìuto
loodbuck, und progross ìs mudo ìn
ìncromontuí stops, ouch dìroctod to u
posìtìvo outcomo
Cognìtìvo Lournors ucquìro undorstundìng 1ho knovíodgo und undorstundìng ol
íournìng thoory vhìch thoy ìntornuíìzo by boìng íournors cun bo onrìchod und
oxposod to íournìng mutorìuís ìntornuíìzod by prosontìng thom vìth
und by soívìng probíoms íournìng mutorìuís tog o-íournìng). Cuso
studìos, pro¡octs und probíom soívìng
uctìvìtìos cun uíso bo usod lor thìs
purposo. Soíl-dìroctod íournìng, porsonuí
dovoíopmont píunnìng uctìvìtìos und
dìscovory íournìng procossos vìth hoíp
lrom lucìíìtutors, couchos or montors uro
undorpìnnod by cognìtìvo íournìng
thoory
Lxporìontìuí loopío íourn by constructìng Lournìng through oxporìonco cun bo
íournìng thoory mounìng und dovoíopìng thoìr onhuncod by oncourugìng íournors to
skìíís through oxporìonco rolíoct on und muko bottor uso ol vhut
thoy íourn through thoìr ovn vork und
lrom othor poopío. Soíl-dìroctod íournìng
und porsonuí dovoíopmont píunnìng
uctìvìtìos vìth hoíp lrom lucìíìtutors,
couchos or montors uro uíso
undorpìnnod by oxporìontìuí íournìng
thoory, us ìs uctìon íournìng
TabIc 37.1 Tho inpIicalions of Ioarning lhoory and concopls

Socìuí íournìng Lournìng ìs most olloctìvo ìn u Lournìng cun bo oncourugod ìn
thoory socìuí sottìng. lndìvìduuí communìtìos ol pructìco, und ìn pro¡oct
undorstundìng ìs shupod by toums und notvorks
uctìvo purtìcìputìon ìn rouí
sìtuutìons
Lournìng styíos Lvory porson hus hìs or hor Lournìng progrummos nood to bo
ovn íournìng styío ud¡ustod to copo vìth dìlloront íournìng
styíos. 1ruìnors huvo uíso to líox thoìr
mothods. loopío vìíí íourn moro
olloctìvoíy ìl thoy uro hoípod to ´íourn
hov to íourn' by mukìng tho bost uso ol
thoìr ovn styío, but uíso by
oxporìmontìng vìth othor styíos
1ho íournìng 1ho tìmo roquìrod to rouch kocognìzo thut progross muy vury und
curvo un uccoptubío stundurd ol muy not bo contìnuous. Lnubío íournors
skìíís or compotonco vhìch to consoíìduto thoìr íournìng, und
vurìos botvoon poopío. ìntroduco roìnlorcomont porìods ìn
Lournìng muy procood ìn stops truìnìng progrummos to rocognìzo tho
vìth píutouux, ruthor thun oxìstonco ol íournìng stops und
boìng u contìnuous procoss píutouux
1ho motìvutìon loopío nood to bo motìvutod Lournors shouíd bo hoípod to dovoíop
to íourn to íourn olloctìvoíy íournìng gouís und to undorstund tho
bonolìts to thom ol uchìovìng thom.
lorlormunco munugomont procossos
íoudìng to porsonuí dovoíopmont píuns
cun provìdo u mouns ol doìng thìs
TabIc 37.1 
Lournìng und dovoíopmont
This chaplor is aboul hov organizalions naIo arrangononls for approprialo Ioarning
and dovoIopnonl lo laIo pIaco by various noans, incIuding lraining. Il is dividod
inlo lhroo soclions: Ioarning, dovoIopnonl and lraining.
Tho fornuIalion and inpIononlalion of Ioarning and dovoIopnonl slralogios is
doaIl vilh in Chaplor 41.
LLAkNlNC

Loarning is lho procoss by vhich a porson acquiros and dovoIops nov InovIodgo,
sIiIIs, capabiIilios and alliludos. As WiIIians (1998) dofinod il, Íoarning is goaI
diroclod, il is basod on oxporionco, il inpacls bohaviour and cognilion, and lho
changos broughl aboul aro roIalivoIy slabIo'. Honoy and Munford (1996) oxpIainod
lhal: ´Loarning has happonod vhon poopIo can dononslralo lhal lhoy Inov sono-
lhing lhal lhoy did nol Inov boforo (insighls, roaIizalions as voII as facls) and vhon
lhoy can do sonolhing lhoy couId nol do boforo (sIiIIs)'. Munford and GoId (2004)
onphasizod lhal: ´Loarning is bolh a procoss and an oulcono concornod vilh InovI-
odgo, sIiIIs and insighl.'

Thoro aro four lypos of Ioarning:
1. lnsirumcnicl lccrning ÷ Ioarning hov lo do lho ¡ob bollor onco lho basic slandard
of porfornanco has boon allainod. HoIpod by Ioarning on lho ¡ob.
2. Ccgniiitc lccrning ÷ oulconos basod on lho onhancononl of InovIodgo and
undorslanding.
3. Ajjcciitc lccrning ÷ oulconos basod on lho dovoIopnonl of alliludos or fooIings
ralhor lhan InovIodgo.
4. Sclj-rcjlcciitc lccrning ÷ dovoIoping nov pallorns of undorslanding, lhinIing and
bohaving and lhoroforo croaling nov InovIodgo (Harrison, 2005).
Aím
Tho ain of lho Ioarning poIicios and progrannos of an organizalion is lo provido lho
sIiIIod, InovIodgoabIo and conpolonl poopIo roquirod lo nool ils prosonl and fuluro
noods. To achiovo lhis ain il is nocossary lo onsuro lhal Ioarnors aro roady lo Ioarn,
undorsland vhal lhoy nood lo Inov and bo abIo lo do, and aro abIo lo laIo rosponsi-
biIily for lhoir Ioarning by naIing good uso of lho Ioarning rosourcos avaiIabIo,
incIuding lho supporl and guidanco of lhoir Iino nanagors.
|híío·oph,
Tho phiIosophy of Ioarning vas oxprossod by SIonan (2003a) as foIIovs:
lntorvontìons und uctìvìtìos thut uro ìntondod to ìmprovo knovíodgo und skìíís vìíí
ìncrousìngíy locus on tho íournor. Lmphusìs vìíí shìlt to tho ìndìvìduuí íournor tor toum).
And ho or sho vìíí bo oncourugod to tuko moro rosponsìbìíìty lor hìs or hor íournìng.
Lllorts vìíí bo mudo to dovoíop u cíìmuto thut supports olloctìvo und upproprìuto
íournìng. Such ìntorvontìons und uctìvìtìos vìíí lorm purt ol un ìntogrutod upprouch to
croutìng compotìtìvo udvuntugo through poopío ìn tho orgunìzutìon.
Loarning is a conlinuous procoss lhal nol onIy onhancos oxisling capabiIilios bul aIso
Ioads lo lho dovoIopnonl of lho sIiIIs, InovIodgo and alliludos lhal proparo poopIo
for onIargod or highor-IovoI rosponsibiIilios in lho fuluro.
Lcarníng and |raíníng
Tho oncouragononl of Ioarning naIos uso of a procoss nodoI lhal is concornod vilh
faciIilaling lho Ioarning aclivilios of individuaIs and providing Ioarning rosourcos for
lhon lo uso. ConvorsoIy, lho provision of lraining invoIvos lho uso of a conlonl nodoI,
vhich noans dociding in advanco lho InovIodgo and sIiIIs lhal nood lo bo onhancod
by lraining, pIanning lho progranno, dociding on lraining nolhods and prosonling
lho conlonl in a IogicaI soquonco lhrough various forns of inslruclion. Adislinclion is
nado by SIonan (2003a) bolvoon Ioarning lhal Íios vilhin lho donain of lho indi-
viduaI' and lraining lhal Íios vilhin lho donain of lho organizalion'. Today, lho
approach is lo focus on individuaI Ioarning and onsuro lhal il laIos pIaco vhon
roquirod ÷ ´ ¡usl-for-you' and ´¡usl-in-lino' Ioarning.
Condí|íon· for cffcc|ívc ícarníng
Tho condilions roquirod for Ioarning lo bo offoclivo, as dorivod fron lho Ioarning
lhoorios and concopls doscribod in Chaplor 37, aro sol oul boIov.
Motivation to Icarn
IndividuaIs nusl bo nolivalod lo Ioarn. Thoy shouId bo avaro lhal lhoir prosonl IovoI
of InovIodgo, sIiII or conpolonco, or lhoir oxisling alliludo or bohaviour, nood lo bo
dovoIopod or inprovod if lhoy aro lo porforn lhoir vorI lo lhoir ovn and lo olhors'
salisfaclion. Thoy nusl, lhoroforo, havo a cIoar picluro of lho bohaviour lhoy shouId
adopl. To bo nolivalod, Ioarnors nusl gain salisfaclion fron Ioarning. Thoy aro nosl
capabIo of Ioarning if il salisfios ono or noro of lhoir noods. ConvorsoIy, lho bosl
Ioarning progrannos can faiI if lhoy aro nol soon as usofuI by lhoso undorlaIing
lhon.
ScIf-dircctcd Icarning
SoIf-diroclod or soIf-nanagod Ioarning invoIvos oncouraging individuaIs lo laIo
rosponsibiIily for lhoir ovn Ioarning noods, oilhor lo inprovo porfornanco in lhoir
prosonl ¡ob or lo dovoIop lhoir polonliaI and salisfy lhoir caroor aspiralions. Il can bo
basod on a procoss of rocording achiovononl and aclion pIanning lhal invoIvos indi-
viduaIs rovioving vhal lhoy havo Ioarnl, vhal lhoy havo achiovod, vhal lhoir goaIs
aro, hov lhoy aro going lo achiovo lhoso goaIs and vhal nov Ioarning lhoy nood lo
acquiro. Tho Ioarning progranno can bo ´soIf-pacod' in lho sonso lhal Ioarnors can
docido for lhonsoIvos up lo a poinl lho ralo al vhich lhoy vorI and aro oncouragod
lo noasuro lhoir ovn progross and ad¡usl lho progranno accordingIy.
SoIf-diroclod Ioarning is basod on lho principIo lhal poopIo Ioarn and rolain noro if
lhoy find lhings oul for lhonsoIvos. Bul lhoy sliII nood lo bo givon guidanco on vhal
lo IooI for and hoIp in finding il. Loarnors havo lo bo oncouragod lo dofino, vilh
vhalovor hoIp lhoy nay roquiro, vhal lhoy nood lo Inov lo porforn lhoir ¡ob
Lournìng und dovoíopmont 56l
offoclivoIy. Thoy nood lo bo providod vilh guidanco on vhoro lhoy can gol lho
naloriaI or infornalion lhal viII hoIp lhon lo Ioarn and hov lo naIo good uso of il.
IorsonaI dovoIopnonl pIans, as doscribod Ialor in lhis chaplor, can provido a frano-
vorI for lhis procoss. Thoy aIso nood supporl fron lhoir nanagor and lho organiza-
lion vilh lho provision of coaching, nonloring and Ioarning faciIilios, incIuding
o-Ioarning.
SoIf-diroclod Ioarning can aIso bo doscribod as soIf-rofIoclivo Ioarning (Mozirov,
1985), vhich is lho Iind of Ioarning lhal invoIvos oncouraging individuaIs lo dovoIop
nov pallorns of undorslanding, lhinIing and bohaving. Il is a procoss vhich vas
doscribod by Argyris (1992) as doubIo-Ioop Ioarning, vhich is basod on an oxanina-
lion of lho rool causos of probIons and can croalo a nov Ioarning Ioop lhal goos far
doopor lhan lho lradilionaI Ioarning Ioop providod by ínslrunonlaI Ioarning'
(io Ioarning hov lo porforn a ¡ob bollor) vhich londs onIy lo focus on lho surfaco
synplons of a probIon.
tcarning goaIs, dircction and fccdback
Effoclivo Ioarning is noro IiIoIy lo bo achiovod if Ioarnors havo Ioarning goaIs. Thoy
shouId havo largols and slandards of porfornanco lhal lhoy find accoplabIo and
achiovabIo and can uso lo ¡udgo lhoir ovn progross. Thoy shouId bo oncouragod and
hoIpod lo sol lhoir ovn goaIs. Tho Ioarning oulcono nusl bo cIoar.
Loarnors nood a sonso of diroclion and foodbacI on hov lhoy aro doing. Thoy
shouId rocoivo roinforcononl of corrocl bohaviour. SoIf-nolivalod individuaIs nay
provido nuch of lhis for lhonsoIvos, bul il is nocossary lo havo a Ioarning faciIilalor,
og a nonlor, vho is avaiIabIo lo oncourago and hoIp vhon nocossary. Loarnors
usuaIIy nood lo Inov quicIIy hov voII lhoy aro doing. In a proIongod progranno,
inlornodialo slops aro roquirod in vhich Ioarning can bo roinforcod. Tho conlonl of
lho Ioarning progranno nay lhoroforo nood lo bo broIon dovn inlo snaII noduIos
or oIononls, oach vilh an ob¡oclivo.
tcarning mctbods
Tho Ioarning goaIs and lho parlicuIar noods and Ioarning slyIo of lho Ioarnor shouId
indicalo vhal Ioarning nolhod or nolhods shouId bo usod. Spocific goaIs and undor-
slanding of individuaI noods hoIp lo soIocl approprialo Ioarning nolhods. Il shouId
nol bo assunod lhal a singIo Ioarning nolhod viII do. A conbinalion of nolhods is
IiIoIy lo produco bollor rosuIls. Tho uso of a varioly of nolhods, as Iong as lhoy aro aII
approprialo, hoIps Ioarning by ongaging lho inlorosl of Ioarnors.
Loarning is ´porsonaI, sub¡oclivo and insoparabIo fron aclivily' (RoynoIds, 2004). Il
is an aclivo, nol a passivo procoss. As far as possibIo, lhoroforo, lho Ioarning procoss
shouId bo aclivo, aIlhough lhis nay laIo noro lino lhan passivo nolhods in vhich
lho Ioarnor is al lho rocoiving ond of sono forn of lraining, og inslruclion. Tho noro
conpIox lho sIiII lo bo naslorod, lho noro lho Ioarning nolhods nood lo bo aclivo.
Loarning roquiros lino lo assiniIalo, losl and accopl. This lino shouId bo providod in
lho Ioarning progranno.
tcvcIs of Icarning
Difforonl IovoIs of Ioarning oxisl and lhoso nood difforonl nolhods and laIo difforonl
linos. Al lho sinpIosl IovoI, Ioarning roquiros dirocl physicaI rosponsos, nonoriza-
lion and basic condilioning. Al a highor IovoI, Ioarning invoIvos adapling oxisling
InovIodgo or sIiII lo a nov lasI or onvironnonl. Al lho noxl IovoI, Ioarning boconos
a conpIox procoss vhon principIos aro idonlifiod in a rango of praclicos or aclions,
vhon a sorios of isoIalod lasIs havo lo bo inlogralod, or vhon lho procoss is aboul
dovoIoping inlorporsonaI sIiIIs. Tho nosl conpIox forn of Ioarning laIos pIaco vhon
Ioarning is concornod vilh lho vaIuos and alliludos of poopIo and groups. This is nol
onIy lho nosl conpIox aroa, bul aIso lho nosl difficuIl.
ßícndíng ícarníng
BIonding difforonl bul approprialo lypos of Ioarning producos lho bosl rosuIls.
Spcc|rum of ícarníng - from ínformaí |o formaí
Thoro is a spoclrun of Ioarning as dofinod by WalIins and MarsicI (1993), fron
infornaI lo fornaI, as foIIovs:
unanlicipalod oxporioncos and oncounlors lhal rosuIl in Ioarning as an incidonlaI
by-producl, vhich nay or nay nol bo consciousIy rocognizod,
nov ¡ob assignnonls and parlicipalion in loans, or olhor ¡ob-roIalod chaIIongos
lhal provido for Ioarning and soIf-dovoIopnonl,
soIf-inilialod and soIf-pIannod oxporioncos, incIuding lho uso of nodia and
sooIing oul a coach or nonlor,
lolaI quaIily or inprovononl groups/aclivo Ioarning dosignod lo pronolo conlin-
uous Ioarning for conlinuous inprovononl,
providing a franovorI for Ioarning associalod vilh porsonaI dovoIopnonl pIan-
ning or caroor pIanning,
lho conbinalion of Ioss-slruclurod vilh slruclurod opporlunilios lo Ioarn fron
lhoso oxporioncos,
dosignod progrannos of nonloring, coaching or vorIpIaco Ioarning,
fornaI lraining progrannos or coursos invoIving inslruclion.
Lournìng und dovoíopmont 563
lnformaI Icarning
InfornaI Ioarning is oxporionliaI Ioarning. Mosl Ioarning doos nol laIo pIaco in fornaI
lraining progrannos. IoopIo can Ioarn 70 por conl of vhal lhoy Inov aboul lhoir ¡ob
infornaIIy, lhrough procossos nol slruclurod or sponsorod by lho organizalion.
A sludy by Eraul   (1998) oslabIishod lhal in organizalions adopling a Ioarnor-
conlrod porspoclivo, fornaI oducalion and lraining providod onIy a snaII parl of
vhal vas Ioarnl al vorI. Mosl of lho Ioarning doscribod lo lho rosoarchors vas non-
fornaI, noilhor cIoarIy spocifiod nor pIannod. Il aroso naluraIIy fron lho chaIIongos of
vorI. Effoclivo Ioarning vas, hovovor, dopondonl on lho onpIoyoos' confidonco,
nolivalion and capabiIily. Sono fornaI lraining lo dovoIop sIiIIs (ospociaIIy induc-
lion lraining) vas usuaIIy providod, bul Ioarning fron oxporionco and olhor poopIo al
vorI prodoninalod. RoynoIds (2004) nolos lhal:
1ho sìmpío uct ol obsorvìng moro oxporìoncod coííouguos cun uccoíoruto íournìng,
convorsìng, svuppìng storìos, co-oporutìng on tusks und ollorìng mutuuí support doopon
und soíìdìly tho procoss. 1hìs kìnd ol íournìng - olton vory ìnlormuí ìn nuturo - ìs
thought to bo vustíy moro olloctìvo ìn buìídìng prolìcìoncy thun moro lormuíìzod truìnìng
mothods.
Tho advanlagos of infornaI Ioarning aro lhal:
Ioarning offorls aro roIovanl and focusod in lho innodialo onvironnonl,
undorslanding can bo achiovod in incrononlaI slops ralhor lhan in indigoslibIo
chunIs,
Ioarnors dofino hov lhoy viII gain lho InovIodgo lhoy nood ÷ fornaI Ioarning is
noro pacIagod,
Ioarnors can roadiIy pul lhoir Ioarning inlo praclico.
Tho disadvanlagos aro lhal:
il nay bo Iofl lo chanco ÷ sono poopIo viII bonofil, sono von'l,
il can bo unpIannod and unsyslonalic, vhich noans lhal il viII nol nocossariIy
salisfy individuaI or organizalionaI Ioarning noods,
Ioarnors nay sinpIy picI up bad habils.
WorkpIacc Icarning
InfornaI Ioarning occurs in lho vorIpIaco and, as oxpIainod by Slorn and SonnorIad
(1999), lhis laIos lhroo forns:
1. 1|c ucr|s|cp cs c siic jcr lccrning. In lhis caso, Ioarning and vorIing aro spaliaIIy
soparalod vilh sono forn of slruclurod Ioarning aclivily occurring off or noar lho
¡ob. This nay bo in a conpany lraining conlro or a ´lraining isIand' on lho shop
fIoor vhoro lho produclion procoss is roproducod for lrainoos.
2. 1|c ucr|plccc cs c lccrning cntircnmcni. In lhis approach, lho vorIpIaco ilsoIf
boconos an onvironnonl for Ioarning. Various on-lho-¡ob lraining aclivilios laIo
pIaco, vhich aro slruclurod lo difforonl dogroos. Loarning is inlonlionaI and
pIannod, ainod al lraining onpIoyoos by supporling, slrucluring and noni-
loring lhoir Ioarning.
3. Iccrning cn! ucr|ing crc incxiricc|lq mixc!. In lhis caso, Ioarning is infornaI. Il
boconos an ovoryday parl of lho ¡ob and is buiIl inlo roulino lasIs. WorIors
dovoIop sIiIIs, InovIodgo and undorslanding lhrough doaIing vilh lho chaI-
Iongos posod by lho vorI. This can bo doscribod as conlinuous Ioarning. As
Zuboff (1988) pul il: ´Loarning is nol sonolhing lhal roquiros lino oul fron boing
ongagod in produclivo aclivily, Ioarning is lho hoarl of produclivo aclivily.'
FormaI Icarning
FornaI Ioarning is pIannod and syslonalic and invoIvos lho uso of slruclurod lraining
progrannos consisling of inslruclion and praclico.
lnformaI and formaI Icarning comparcd
A conparison bolvoon infornaI and fornaI Ioarning is shovn in TabIo 38.1.
lnformaI FormaI
Hìghíy roíovunt to ìndìvìduuí noods koíovunt to somo, not so roíovunt to othors
Lournors íourn uccordìng to nood Aíí íournors íourn tho sumo thìng
Muy bo smuíí gup botvoon curront und Muy bo vurìubío gups botvoon curront und
turgot knovíodgo turgot knovíodgo
Lournor docìdos hov íournìng vìíí occur 1ruìnor docìdos hov íournìng vìíí occur
lmmodìuto uppíìcubìíìty t´lust-ìn-tìmo' íournìng) Vurìubío tìmos, olton dìstunt
Lournìng roudìíy trunslorubío lrobíoms muy occur ìn trunslorrìng íournìng
to tho vorkpíuco
Cccurs ìn vork sottìng Clton occurs ìn non-vork sottìng
TabIc 38.1 Characlorislics of fornaI and infornaI Ioarning
Lcarníng programmc·
Loarning progrannos aro concornod vilh:
dofining lho ob¡oclivos of Ioarning,
croaling an onvironnonl in vhich offoclivo Ioarning can laIo pIaco (a Ioarning
cuIluro),
naIing uso of bIondod Ioarning approachos,
adopling a syslonalic, pIannod and baIancod approach lo lho doIivory of
Ioarning,
idonlifying Ioarning and dovoIopnonl noods,
salisfying lhoso noods by doIivoring bIondod difforonl Ioarning, dovoIopnonl and
lraining procossos incIuding o-Ioarning,
ovaIualing lho offoclivonoss of lhoso procossos.
As nonlionod oarIior, Ioarning is a conlinuous procoss and nuch of il arisos fron day-
lo-day oxporionco in lho vorIpIaco. Bul lhis Ioarning nay bo haphazard, inappro-
prialo and faiI lo nool lho shorl and Iongor-lorn noods of oilhor lho individuaI or lho
organizalion. A lcisscz-jcirc approach by lho organizalion couId bo highIy unsalisfac-
lory if il doos nol onsuro lhal lhoso noods aro nol by vhalovor noans aro avaiIabIo.
ExporionliaI Ioarning viII bo onhancod if lho cIinalo in lho organizalion is supporlivo,
and an inporlanl aspocl of a Ioarning and dovoIopnonl slralogy viII bo croaling such
a cIinalo, as discussod Ialor in lhis chaplor. Bul il viII aIso bo oxlondod if individuaIs
aro hoIpod lo idonlify lhoir ovn Ioarning noods and providod vilh guidanco on hov
lhoy can bo nol using various noans. As doscribod boIov, lho Ioarning progranno
can conconlralo on naIing lho bosl uso of vorIpIaco Ioarning opporlunilios,
onsuring lhal poopIo aro avaro of vhal lhoy nood lo Ioarn and providing lhon vilh
oncouragononl and supporl, agrooing Ioarning conlracls, and onhancing Ioarning
lhrough coaching or nonloring. Thoso aclivilios shouId bo usod as parl of a bIondod
approach, vhich is discussod boIov.
Making tbc most of Icarning opportunitics
Loarning opporlunilios occur aII lho lino and lho chaIIongo is lo onsuro lhal poopIo
naIo lho nosl of lhon. Sono viII nood no oncouragononl. Olhors viII havo lo bo
hoIpod. Lino nanagors or loan Ioadors havo a cruciaI roIo in oncouraging and
supporling Ioarning. Thoy can do lhis vilhin lho roIalivoIy fornaI solling of a
porfornanco and dovoIopnonl roviov. Or, bollor sliII, lhoy can consciousIy pronolo
Ioarning fron day-lo-day ovonls vhon lhoy discuss hov a lasI nighl bo dono,
vhon lhoy anaIyso infornalion on oulconos vilh individuaIs, and vhon lhoy asI
individuaIs lo loII lhon vhal lhoy havo Ioarnl fron an ovonl and vhal il loIIs lhon
aboul any addilionaI Ioarning roquirod. Bul il is nocossary lo onsuro lhal Iino
nanagors aro avaro of lho nood lo pronolo Ioarning and havo lho viII and lho sIiIIs
lo do il.
ldcntifying and mccting Icarning nccds
Il is nocossary lo onsuro lhal poopIo aro avaro of vhal lhoy nood lo Ioarn lo carry oul
lhoir prosonl roIo and lo dovoIop in lho fuluro. This slarls vilh induclion and invoIvos
lho spocificalion of Ioarning progrannos and lho pIanning of Ioarning ovonls, vilh
an onphasis on soIf-diroclod Ioarning acconpaniod by a bIond of olhor Ioarning
approachos as approprialo. Il conlinuos vilh porfornanco and dovoIopnonl roviovs
lhal idonlify Ioarning noods and dofino hov lhoy viII bo nol, again by soIf-nanagod
Ioarning as far as possibIo bul naIing uso of coaching, nonloring and fornaI lraining
coursos as roquirod.
tcarning contract
AIoarning conlracl is a fornaI agroononl bolvoon lho nanagor and lho individuaI on
vhal Ioarning noods lo laIo pIaco, lho ob¡oclivos of such Ioarning and vhal parl lho
individuaI, lho nanagor, lho lraining doparlnonl or a nonlor viII pIay in onsuring
lhal Ioarning happons. Tho parlnors lo lho conlracl agroo on hov lho ob¡oclivos viII
bo achiovod and lhoir rospoclivo roIos. Il viII spoII oul Ioarning progrannos and indi-
calo vhal coaching, nonloring and fornaI lraining aclivilios shouId bo carriod oul. Il
is, in offocl, a bIuoprinl for Ioarning. Loarning conlracls can bo parl of a porsonaI
dovoIopnonl pIanning procoss, as doscribod Ialor in lhis chaplor.
Coacbing
Tho InduslriaI Socioly (1999) dofinos coaching as: ´Tho arl of faciIilaling lho onhancod
porfornanco, Ioarning and dovoIopnonl of olhors.' Il laIos lho forn of a porsonaI
(usuaIIy ono-lo-ono) on-lho-¡ob approach lo hoIping poopIo dovoIop lhoir sIiIIs and
IovoIs of conpolonco. Hirsh and Carlor (2002) slalo lhal coaching is ainod al lho rapid
inprovononl of sIiIIs, bohaviour and porfornanco, usuaIIy for lho prosonl ¡ob. A
slruclurod and purposofuI diaIoguo is al lho hoarl of coaching. Tho coach usos food-
bacI and brings an ob¡oclivo porspoclivo. Thoy nolod lhal lho boundarios bolvoon
vhal a coach, nonlor, counsoIIor or organizalion dovoIopnonl consuIlanl do aro
inovilabIy bIurrod ÷ lhoy aII uso siniIar sIiIIs.
Tho nood for coaching nay ariso fron fornaI or infornaI porfornanco roviovs bul
opporlunilios for coaching viII onorgo during nornaI day-lo-day aclivilios.
Coaching as parl of lho nornaI procoss of nanagononl consisls of:
naIing poopIo avaro of hov voII lhoy aro porforning by, for oxanpIo, asIing
lhon quoslions lo oslabIish lho oxlonl lo vhich lhoy havo lhoughl lhrough vhal
lhoy aro doing,
conlroIIod doIogalion ÷ onsuring lhal individuaIs nol onIy Inov vhal is oxpoclod
of lhon bul aIso undorsland vhal lhoy nood lo Inov and bo abIo lo do lo
conpIolo lho lasI salisfacloriIy, lhis givos nanagors an opporlunily lo provido
guidanco al lho oulsol ÷ guidanco al a Ialor slago nay bo soon as inlorforonco,
using vhalovor silualions nay ariso as opporlunilios lo pronolo Ioarning,
oncouraging poopIo lo IooI al highor-IovoI probIons and hov lhoy vouId lacIIo
lhon.
Aconnon franovorI usod by coachos is lho GROW nodoI:
´G' is for lho goaI of coaching, vhich noods lo bo oxprossod in spocific noasurabIo
lorns lhal roprosonl a noaningfuI slop lovards fuluro dovoIopnonl.
´R' is for lho roaIily chocI ÷ lho procoss of oIiciling as fuII a doscriplion as possibIo of
vhal lho porson boing coachod noods lo Ioarn.
Ó' is for oplion gonoralion ÷ lho idonlificalion of as nany soIulions and aclions as
possibIo.
´W' is for vrapping up ÷ vhon lho coach onsuros lhal lho individuaI boing coachod is
connillod lo aclion.
Coaching viII bo nosl offoclivo vhon lho coach undorslands lhal his or hor roIo is
lo hoIp poopIo lo Ioarn and individuaIs aro nolivalod lo Ioarn. Thoy shouId bo
avaro lhal lhoir prosonl IovoI of InovIodgo or sIiII or lhoir bohaviour noods lo bo
inprovod if lhoy aro going lo porforn lhoir vorI salisfacloriIy. IndividuaIs shouId bo
givon guidanco on vhal lhoy shouId bo Ioarning and foodbacI on hov lhoy aro doing
and, bocauso Ioarning is an aclivo nol a passivo procoss, lhoy shouId bo aclivoIy
invoIvod vilh lhoir coach vho shouId bo conslruclivo, buiIding on slronglhs and
oxporionco.
Coaching nay bo infornaI bul il has lo bo pIannod. Il is nol sinpIy chocIing fron
lino lo lino on vhal poopIo aro doing and lhon advising lhon on hov lo do il bollor.
Nor is il occasionaIIy loIIing poopIo vhoro lhoy havo gono vrong and lhroving in a
Iocluro for good noasuro. As far as possibIo, coaching shouId laIo pIaco vilhin lho
franovorI of a gonoraI pIan of lho aroas and diroclion in vhich individuaIs viII
bonofil fron furlhor dovoIopnonl. Coaching pIans can and shouId bo incorporalod
inlo lho porsonaI dovoIopnonl pIans sol oul in a porfornanco agroononl.
Coaching shouId provido nolivalion, slrucluro and offoclivo foodbacI if nanagors
havo lho roquirod sIiIIs and connilnonl. As coachos, nanagors boIiovo lhal poopIo
can succood, lhal lhoy can conlribulo lo lhoir succoss and lhal lhoy can idonlify vhal
poopIo nood lo bo abIo lo do lo inprovo lhoir porfornanco.

Monloring is lho procoss of using spociaIIy soIoclod and lrainod individuaIs lo
provido guidanco, pragnalic advico and conlinuing supporl, vhich viII hoIp lho
porson or porsons aIIocalod lo lhon lo Ioarn and dovoIop. Il has boon dofinod by
CIullorbucI (2004) as: Óff-Iino hoIp fron ono porson lo anolhor in naIing significanl
lransilions in InovIodgo, vorI or lhinIing.' Hirsh and Carlor (2002) suggosl lhal
nonlors proparo individuaIs lo porforn bollor in lho fuluro and groon lhon for
highor and groalor lhings, io caroor advancononl.
Monloring can bo dofinod as a nolhod of hoIping poopIo lo Ioarn, as dislincl fron
coaching, vhich is a roIalivoIy diroclivo noans of incroasing poopIo's conpolonco. Il
invoIvos Ioarning on lho ¡ob, vhich nusl aIvays bo lho bosl vay of acquiring lho
parlicuIar sIiIIs and InovIodgo lho ¡ob hoIdor noods. Monloring aIso conpIononls
fornaI lraining by providing lhoso vho bonofil fron il vilh individuaI guidanco
fron oxporioncod nanagors vho aro ´viso in lho vays of lho organizalion'.
Monlors provido poopIo vilh:
advico in draving up soIf-dovoIopnonl progrannos or Ioarning conlracls,
gonoraI hoIp vilh Ioarning progrannos,
guidanco on hov lo acquiro lho nocossary InovIodgo and sIiIIs lo do a nov ¡ob,
advico on doaIing vilh any adninislralivo, lochnicaI or poopIo probIons individ-
uaIs nool, ospociaIIy in lho oarIy slagos of lhoir caroors,
infornalion on ´lho vay lhings aro dono around horo' ÷ lho corporalo cuIluro and
ils nanifoslalions in lho shapo of coro vaIuos and organizalionaI bohaviour
(nanagononl slyIo),
coaching in spocific sIiIIs,
hoIp in lacIIing pro¡ocls ÷ nol by doing il for lhon, bul by poinling lhon in lho
righl diroclion: hoIping poopIo lo hoIp lhonsoIvos,
a paronlaI figuro vilh vhon individuaIs can discuss lhoir aspiralions and
concorns and vho viII Iond a synpalholic oar lo lhoir probIons.
Thoro aro no slandard nonloring procoduros, aIlhough il is ossonliaI lo soIocl nonlors
vho aro IiIoIy lo adopl lho righl non-diroclivo bul supporlivo hoIp lo lho porson or
porsons lhoy aro doaIing vilh. Thoy nusl lhon bo carofuIIy briofod and lrainod in
lhoir roIo.
ßIcndcd Icarning
BIondod Ioarning is dofinod by SIonan (2003b) as: Án approach lo lraining dosign
lhal invoIvos lho uso of a conbinalion of doIivory nolhods and in sono casos
Ioarning nolhodoIogy.' Schrann (2001) doscribos il as: ´Tho conbinalion of difforonl
nodos of doIivory lhal laIo inlo accounl lho Ioarnor's onvironnonl, nolivalion and
Ioarning slyIos vilh difforonl lhoorolicaI approachos. This croalos a nuIli-Iayorod and
richor paIollo of Ioarning nolhods.' BIondod Ioarning ains lo naIo lho difforonl parls
of lho Ioarning nix conpIononlary and nuluaIIy supporlivo in nooling Ioarning
noods.
Rocognilion of lho nood lo bIond Ioarning avoids lho pilfaII of ovor-roIianco on
ono approach. Il noans using convonlionaI inslruclion, o-Ioarning and soIf-
diroclod Ioarning as voII as oxporionliaI Ioarning. Tho ain is lo inspiro and nolivalo
Ioarnors ovor oxlondod poriods of lino and lhrough an approprialo nix of inpuls and
oulpuls, individuaI and coIIaboralivo sludy, fornaI and infornaI procossos, and a
bIond of faco-lo-faco and virluaI conlacl. Focus on lho Ioarnor is achiovod by laIing
spociaI caro lo provido lhon vilh supporl and guidanco fron lhoir nanagors,
coachos and nonlors and lo conpIononl lhis vilh lho provision of o-Ioarning
naloriaI.
A bIondod progranno nighl bo pIannod for an individuaI using a nix of soIf-
nanagod Ioarning aclivilios dofinod in a porsonaI dovoIopnonl pIan, o-Ioarning faciI-
ilios, group aclion Ioarning aclivilios, coaching or nonloring, and inslruclion
providod in an in-conpany courso or oxlornaIIy. Gonoric lraining for groups of
poopIo nighl incIudo o-Ioarning, pIannod inslruclion progrannos, pIannod oxpori-
onco, and soIoclod oxlornaI coursos. Wilhin a lraining courso a conpIononlary nix of
difforonl lraining aclivilios nighl laIo pIaco, for oxanpIo a sIiIIs dovoIopnonl courso
for nanagors or loan Ioadors nighl incIudo sono inslruclion on basic principIos bul
nuch noro lino vouId bo sponl on caso sludios, sinuIalions, roIo-pIaying and olhor
oxorcisos.
DLVLLClMLN1
DovoIopnonl is an unfoIding procoss lhal onabIos poopIo lo progross fron a prosonl
slalo of undorslanding and capabiIily lo a fuluro slalo in vhich highor-IovoI
sIiIIs, InovIodgo and conpoloncios aro roquirod. Il laIos lho forn of Ioarning aclivi-
lios lhal proparo poopIo lo oxorciso vidor or incroasod rosponsibiIilios. Il doos nol
conconlralo on inproving porfornanco in lho prosonl ¡ob. DovoIopnonl has boon
dofinod by Harrison (2000) as: ´Loarning oxporioncos of any Iind, vhoroby individ-
uaIs and groups acquiro onhancod InovIodgo, sIiIIs, vaIuos or bohaviours. Ils
oulconos unfoId lhrough lino, ralhor lhan innodialoIy, and lhoy lond lo bo Iong-
Iasling.'
In dovoIopnonl progrannos lhoro is an onphasis on porsonaI dovoIopnonl pIan-
ning and pIannod Ioarning fron oxporionco. Uso nay bo nado of a ćorporalo univor-
sily'. DovoIopnonl can aIso focus on nanagors and laIo lho forn of aclion Ioarning
or ouldoor Ioarning. To naxinizo lho inpacl of dovoIopnonl a baIancod approach is
nocossary, using a nix of Ioarning nolhods as doscribod in lho provious soclion of lhis
chaplor.
|cr·onaí dcvcíopmcn| píanníng
IorsonaI dovoIopnonl pIanning is carriod oul by individuaIs vilh guidanco, oncour-
agononl and hoIp fron lhoir nanagors as roquirod. AporsonaI dovoIopnonl pIan sols
oul lho aclions poopIo proposo lo laIo lo Ioarn and lo dovoIop lhonsoIvos. Thoy laIo
rosponsibiIily for fornuIaling and inpIononling lho pIan, bul lhoy rocoivo supporl
fron lho organizalion and lhoir nanagors in doing so. Tho purposo is lo provido
vhal TanIin ci cl (1995) caII a ´soIf-organizod Ioarning franovorI'.
IorsonaI dovoIopnonl pIanning consisls of lho foIIoving slagos, as nodoIIod in
Figuro 38.1:
1. Anclqsc currcni siiuciicn cn! !ctclcpmcni ncc!s. This can bo dono as parl of a
porfornanco nanagononl procoss.
2. Sci gccls. Thoso couId incIudo inproving porfornanco in lho curronl ¡ob,
inproving or acquiring sIiIIs, oxlonding roIovanl InovIodgo, dovoIoping spoci-
fiod aroas of conpolonco, noving across or upvards in lho organizalion,
proparing for changos in lho curronl roIo.
3. Prcpcrc cciicn plcn. Tho aclion pIan sols oul vhal noods lo bo dono and hov il viII
bo dono undor hoadings such as oulconos oxpoclod (Ioarning ob¡oclivos), lho
dovoIopnonl aclivilios, lho rosponsibiIily for dovoIopnonl (vhal individuaIs aro
oxpoclod lo do and lho supporl lhoy viII gol fron lhoir nanagor, lho HR doparl-
nonl or olhor poopIo), and lining. A varioly of aclivilios lunod lo individuaI
noods shouId bo incIudod in lho pIan, for oxanpIo: obsorving vhal olhors do,
pro¡ocl vorI, pIannod uso of o-Ioarning progrannos and inlornaI Ioarning
rosourco conlros, vorIing vilh a nonlor, coaching by lho Iino nanagor or loan
Ioador, oxporionco in nov lasIs, guidod roading, spociaI assignnonls and aclion
Ioarning. FornaI lraining lo dovoIop InovIodgo and sIiIIs nay bo parl of lho
pIan bul il is nol lho nosl inporlanl parl.
4. lmplcmcni. TaIo aclion as pIannod.
Tho pIan can bo oxprossod in lho forn of a lccrning ccnircci as doscribod oarIior in lhis
chaplor.
|íanncd cxpcrícncc
ExporionliaI Ioarning can laIo pIaco by pIanning a soquonco of oxporionco lhal nools
a Ioarning spocificalion for acquiring InovIodgo and sIiIIs lhal viII proparo poopIo lo
laIo on incroasod rosponsibiIilios in lho sano or difforonl funclions and occupalions.
Aprogranno is dravn up vhich sols dovn vhal poopIo aro oxpoclod lo Ioarn in oach
doparlnonl or ¡ob in vhich lhoy aro givon oxporionco. This shouId spoII oul vhal
lhoy aro oxpoclod lo discovor for lhonsoIvos. AsuilabIo porson shouId bo avaiIabIo lo
soo lhal poopIo in a dovoIopnonl progranno aro givon lho righl oxporionco and
opporlunily lo Ioarn, and arrangononls shouId bo nado lo chocI progross. A good
vay of slinuIaling poopIo lo find oul for lhonsoIvos is lo provido lhon vilh a Iisl of
quoslions lo ansvor. Il is ossonliaI, hovovor, lo foIIov up oach sognonl of oxporionco
lo chocI vhal has boon Ioarnl and, if nocossary, nodify lho progranno.
IIannod oxporionco usod lo bo Inovn as ´¡ob rolalion', bul vas oflon an inofficionl
and fruslraling nolhod of acquiring addilionaI InovIodgo and sIiIIs. Whal
has sonolinos boon roforrod lo as lho ĆooI's lour' nolhod of noving lrainoos
fron doparlnonl lo doparlnonl has incurrod nuch ¡uslifiod crilicisn bocauso of
lho lino vaslod by lhon in Iocalions vhoro no ono Inov vhal lo do vilh lhon, or
carod.
Set goals
Assess current position
Ìmplement
Plan action
FIgurc 38.1 Slagos in proparing and inpIononling a porsonaI dovoIopnonl pIan
Corpora|c unívcr·í|,
Acorporalo univorsily is an inslilulion sol up and run by an organizalion, oflon vilh
oulsido hoIp, in vhich oducalion and Ioarning laIos pIaco. As Carlor   (2002) poinl
oul:
1ho torm ćorporuto unìvorsìty' ìs ìntorprotod ìn dìlloront vuys. lor somo, ìt ìs spocìlìc
und rolors to tho uso ol ucudomìc tormìnoíogy to doscrìbo und ruìso tho stutus ol truìnìng
und dovoíopmont und, porhups, uíso ìmpíìos u roíutìonshìp vìth ono or moro ´rouí'
convontìonuí unìvorsìtìos vho co-dosìgn or uccrodìt tho compuny's progrummos. lor
othors, tho torm ìs ìntorprotod moro broudíy us un umbroííu thut doscrìbos tho croutìon
und murkotìng ol ìntornuí brunds lor uíí tho íournìng und dovoíopmont opportunìtìos un
orgunìzutìon provìdos.
For oxanpIo, BAo Syslons oporalos a virluaI univorsily, vhich has a slralogic parl-
norship poIicy lhal aIIovs lhon lo co-dosign progrannos vilh lho hoIp of convon-
lionaI univorsilios. In conlrasl, LIoyds TSB runs ils lraining funclion ¡usl as lhough il
voro a univorsily, vilh facuIlios for oach dovoIopnonl aroa, lho ain boing lo aIign
lraining and dovoIopnonl vilh businoss slralogy and uso lho concopl as an inlornaI
brand, Iolling onpIoyoos Inov lhal il is invosling in lhon.
Ac|íon ícarníng
Aclion Ioarning, as dovoIopod by Rovans (1971), is a nolhod of hoIping nanagors
dovoIop lhoir laIonls by oxposing lhon lo roaI probIons. Thoy aro roquirod lo anaIyso
lhon, fornuIalo roconnondalions, and lhon laIo aclion. Il accords vilh lho boIiof
lhal nanagors Ioarn bosl by doing ralhor lhan boing laughl.
In 1989 Rovans producod lho foIIoving fornuIa lo doscribo his concopl: L
(Ioarning) = I (progrannod Ioarning) + Q (quoslioning, insighl). Ho suggosls lhal lho
concopl is basod on six assunplions:
1. Exporioncod nanagors havo a hugo curiosily lo Inov hov olhor nanagors
vorI.
2. Wo Ioarn nol as nuch vhon vo aro nolivalod lo Ioarn, as vhon vo aro nolivalod
lo Ioarn sonolhing.
3. Loarning aboul onosoIf is lhroaloning and is rosislod if il londs lo chango ono's
soIf-inago. Hovovor, il is possibIo lo roduco lho oxlornaI lhroal lo a IovoI lhal no
Iongor acls as a lolaI barrior lo Ioarning aboul onosoIf.
4. IoopIo Ioarn onIy vhon lhoy do sonolhing, and lhoy Ioarn noro lho noro
rosponsibIo lhoy fooI lho lasI lo bo.
5. Loarning is dooposl vhon il invoIvos lho vhoIo porson ÷ nind, vaIuos, body,
onolions.
6. Tho Ioarnor Inovs bollor lhan anyono oIso vhal ho or sho has Ioarnl. Nobody oIso
has nuch chanco of Inoving.
A lypicaI aclion Ioarning progranno brings logolhor a group, or ´sol' of four or
fivo nanagors lo soIvo lho probIon. Thoy hoIp and Ioarn fron oach olhor, bul an
oxlornaI consuIlanl, or ´sol advisor', sils in vilh lhon roguIarIy. Tho pro¡ocl nay
Iasl sovoraI nonlhs, and lho sol nools froquonlIy, possibIy ono day a vooI. Tho
advisor hoIps lho nonbors of lho sol lo Ioarn fron ono anolhor and cIarifios lho
procoss of aclion Ioarning. This procoss invoIvos chango onboddod in lho vob of roIa-
lionships caIIod ´lho cIionl syslon'. Tho vob conprisos al Ioasl lhroo soparalo
nolvorIs: lho povor nolvorI, lho infornalion nolvorI, and lho nolivalionaI
nolvorI (lhis is vhal Rovans noans by ´vho can, vho Inovs, and vho caros'). Tho
forcos for chango aro aIroady lhoro vilhin lho cIionl syslon and il is lho advisor's roIo
lo poinl oul lho dynanics of lhis syslon as lho vorI of diagnosis and inpIononlalion
procoods.
Tho group or sol has lo nanago lho pro¡ocl IiIo any olhor pro¡ocl, dociding on ob¡oc-
livos, pIanning rosourcos, inilialing aclion and noniloring progross. Bul aII lho lino,
vilh lho hoIp of lhoir advisor, lhoy aro Ioarning aboul lho nanagononl procossos
invoIvod as lhoy acluaIIy happon.
Cu|door ícarníng
Ouldoor Ioarning invoIvos oxposing individuaIs lo various Óulvard Bound' lypo
aclivilios: saiIing, nounlain vaIIing, rocI cIinbing, canooing, caving, olc. Il noans
pIacing parlicipanls, oporaling in loans, undor prossuro lo carry oul physicaI aclivi-
lios lhal aro conpIoloIy unfaniIiar lo lhon. Tho ralionaIo is lhal lhoso losls aro para-
digns of lho sorl of chaIIongos poopIo havo lo nool al vorI, bul lhoir unfaniIiar
naluro noans lhal lhoy can Ioarn noro aboul hov lhoy acl undor prossuro as loan
Ioadors or loan nonbors. Ouldoor Ioarning invoIvos a faciIilalor hoIping parlicipanls
lo Ioarn individuaIIy and coIIoclivoIy fron lhoir oxporioncos.
ímpac| of dcvcíopmcn| - a baíanccd approach
A baIancod approach is roquirod lo naxinizo lho inpacl of dovoIopnonl on
ongagononl and porfornanco. This is iIIuslralod in Figuro 38.2, adaplod fron WaIIor
(2004).
1kAlNlNC
Training is lho uso of syslonalic and pIannod inslruclion aclivilios lo pronolo
Ioarning. Tho approach can bo sunnarizod in lho phraso Íoarnor-basod lraining'. Il
invoIvos lho uso of fornaI procossos lo inparl InovIodgo and hoIp poopIo lo acquiro
lho sIiIIs nocossary for lhon lo porforn lhoir ¡obs salisfacloriIy. Il is doscribod as ono
of sovoraI rosponsos an organizalion can undorlaIo lo pronolo Ioarning.
As RoynoIds (2004) poinls oul, lraining has a conpIononlary roIo lo pIay in accoI-
oraling Ioarning: Íl shouId bo rosorvod for silualions lhal ¡uslify a noro diroclod,
DEVELOPMENT ÌMPACT
Training
Workshops
E-learning
Leadership
Co-workers
Development
in role
Transfor of
learning
Development of
learning culture
Feedback
Coaching
Mentoring
Workplace
learning
Projects
Stretch
assignments
Role
enlargement
Job change
Training-based Relationship-based Experienced-based
10% 20% 70%
FIgurc 38.2 Inpacl of dovoIopnonl
oxporl-Iod approach ralhor lhan vioving il as a conprohonsivo and aII-porvasivo
poopIo dovoIopnonl soIulion.' Ho aIso connonlod lhal lho convonlionaI lraining
nodoI has a londoncy lo ónphasizo sub¡ocl-spocific InovIodgo, ralhor lhan lrying lo
buiId coro Ioarning abiIilios'.
Thc ¡u·|ífíca|íon for |raíníng
FornaI lraining is indood onIy ono of lho vays of onsuring lhal Ioarning laIos pIaco,
bul il can bo ¡uslifiod vhon:
lho vorI roquiros sIiIIs lhal aro bosl dovoIopod by fornaI inslruclion,
difforonl sIiIIs aro roquirod by a nunbor of poopIo, vhich havo lo bo dovoIopod
quicIIy lo nool nov donands and cannol bo acquirod by roIying on oxporionco,
lho lasIs lo bo carriod oul aro so spociaIizod or conpIox lhal poopIo aro unIiIoIy
lo naslor lhon on lhoir ovn inilialivo al a roasonabIo spood,
crilicaI infornalion nusl bo inparlod lo onpIoyoos lo onsuro lhoy nool lhoir
rosponsibiIilios,
a Ioarning nood connon lo a nunbor of poopIo has lo bo nol, vhich can roadiIy
bo doaIl vilh in a lraining progranno, for oxanpIo induclion, ossonliaI IT sIiIIs,
connunicalion sIiIIs.
Tran·fcrríng |raíníng
Il has boon arguod (RoynoIds, 2004) lhal: ´Tho lransfor of oxporliso by oulsido oxporls
is risIy sinco lhoir dosign is oflon ronovod fron lho conloxl in vhich vorI is croalod.'
This is a fundanonlaI probIon and appIios oquaIIy lo inlornaIIy run lraining coursos
vhoro vhal has boon laughl can bo difficuIl for poopIo lo appIy in lho onliroIy
difforonl circunslancos in lhoir vorIpIaco. Training can soon lo bo ronolo fron
roaIily and lho sIiIIs and InovIodgo acquirod can appoar lo bo irroIovanl. This parlic-
uIarIy appIios lo nanagononl or suporvisory lraining, bul ovon lho nanuaI sIiIIs
Ioarnl in a lraining conlro nay bo difficuIl lo lransfor.
This probIon can bo lacIIod by naIing lho lraining as roIovanl and roaIislic as
possibIo, anlicipaling and doaIing vilh any polonliaI lransfor difficuIlios. IndividuaIs
aro noro IiIoIy lo appIy Ioarning vhon lhoy do nol find il loo difficuIl, boIiovo vhal
lhoy Ioarnl is roIovanl, usofuI and lransforabIo, aro supporlod by Iino nanagors, havo
¡ob aulonony, boIiovo in lhonsoIvos and aro connillod and ongagod. Transfor is aIso
noro IiIoIy if syslonalic lraining and ´¡usl-in-lino lraining' approachos aro usod, as
doscribod boIov.
S,·|cma|íc |raíníng
Training shouId bo syslonalic in lhal il is spocificaIIy dosignod, pIannod and inpIo-
nonlod lo nool dofinod noods. Il is providod by poopIo vho Inov hov lo lrain and
lho inpacl of lraining is carofuIIy ovaIualod. Tho concopl vas originaIIy dovoIopod
for lho induslriaI lraining boards in lho 1960s and consisls of a sinpIo four-slago
nodoI, as iIIuslralod in Figuro 38.3:
1. Idonlify lraining noods.
2. Docido vhal sorl of lraining is roquirod lo salisfy lhoso noods.
3. Uso oxporioncod and lrainod lrainors lo inpIononl lraining.
4. FoIIov up and ovaIualo lraining lo onsuro lhal il is offoclivo.
Iu·|-ín-|ímc |raíníng
}usl-in-lino lraining is lraining lhal is cIosoIy IinIod lo lho prossing and roIovanl
noods of poopIo by ils associalion vilh innodialo or inninonl vorI aclivilios. Il is
doIivorod as cIoso as possibIo lo lho lino vhon lho aclivily is laIing pIaco. Tho
lraining viII bo basod on an idonlificalion of lho Ialosl roquirononls, priorilios and
pIans of lho parlicipanls, vho viII bo briofod on lho Iivo silualions in vhich lhoir
Ioarning has lo bo appIiod. Tho lraining progranno viII laIo accounl of any lransfor
Techniques Facilities Locations Trainers
1 Ìdentify training needs
2 Plan training programmes
3 Ìmplement training
4 Evaluate training
FIgurc 38.3 Syslonalic lraining nodoI
issuos and ain lo onsuro lhal vhal is laughl is soon lo bo appIicabIo in lho curronl
vorI silualion.
T,pc· of |raíníng
Training progrannos or ovonls can bo concornod vilh any of lho foIIoving:
nanuaI sIiIIs,
IT sIiIIs,
loan Ioador or suporvisory lraining,
nanagononl lraining,
inlorporsonaI sIiIIs, og Ioadorship, loanbuiIding, group dynanics, nouro-
Iinguislic progranning,
porsonaI sIiIIs, og assorlivonoss, coaching, connunicaling, lino nanagononl,
lraining in organizalionaI procoduros or praclicos, og induclion, hoaIlh and safoly,
porfornanco nanagononl, oquaI opporlunily or nanaging divorsily poIicy and
praclico.
Lffcc|ívc |raíníng prac|ícc·
Effoclivo lraining usos lho syslonalic approach dofinod abovo vilh an onphasis on
sIiIIs anaIysis. Tho purposo of lho lraining shouId bo cIoarIy dofinod in lorns of lho
ćrilorion bohaviour' roquirod as a rosuIl of lraining, and lho ´lorninaI bohaviour'
oxpoclod. Tho Iallor can bo oxprossod as a slalononl aIong lho Iinos of: Ón
conpIoling lhis lraining lho parlicipanl viII bo abIo lo.'. Dofining crilorion and
lorninaI bohaviours viII provido lho basis for ovaIualion, vhich is an ossonliaI
oIononl in lho achiovononl of succossfuI lraining.
Tho conlonl of lho lraining shouId bo roIalod lo lho vorI conloxls of lho parlici-
panls. IdoaIIy, lhoir vorI shouId bo nado a conlraI foaluro of lho sub¡ocl nallor. Evory
opporlunily shouId bo laIon lo onbod Ioarning al vorI.
Tho lraining lochniquos usod shouId bo approprialo lo lho purposo of lho courso
and lo lho characlorislics of parlicipanls ÷ lhoir ¡obs, Ioarning noods, provious oxpori-
onco, IovoI of InovIodgo and sIiIIs, and hov rocoplivo lhoy viII bo lo boing laughl
(nolivalod lo Ioarn). A bIond of difforonl lochniquos shouId bo usod vhoro appro-
prialo. Il is parlicuIarIy inporlanl in nanagononl, suporvisory and inlorporsonaI
sIiIIs lraining lo provido anpIo lino for parlicipalion and aclivo Ioarning lhrough
discussion, caso sludios and sinuIalions. Locluros shouId forn a ninor parl of lho
courso. Good inslruclionaI lochniquos as doscribod boIov shouId bo usod in nanuaI
sIiIIs lraining.
Traíníng |cchníquc·
lnstruction
}ob inslruclion lochniquos shouId bo basod on sIiIIs anaIysis and Ioarning lhoory,
as discussod in Chaplors 13 and 37. Tho soquonco of inslruclion shouId foIIov six
slagos:
1. Iroparalion for oach inslruclion poriod noans lhal lho lrainor nusl havo a pIan
for prosonling lho sub¡ocl nallor and using approprialo loaching nolhods, visuaI
aids and dononslralion aids. Il aIso noans proparing lrainoos for lho inslruclion
lhal is lo foIIov. Thoy shouId vanl lo Ioarn. Thoy nusl porcoivo lhal lho Ioarning
viII bo roIovanl and usofuI lo lhon porsonaIIy. Thoy shouId bo oncouragod lo
laIo prido in lhoir ¡ob and lo approcialo lho salisfaclion lhal conos fron sIiIIod
porfornanco.
2. Irosonlalion shouId consisl of a conbinalion of loIIing and shoving ÷ oxpIana-
lion and dononslralion.
3. ExpIanalion shouId bo as sinpIo and dirocl as possibIo: lho lrainor oxpIains
briofIy lho ground lo bo covorod and vhal lo IooI for. Ho or sho naIos lho
naxinun uso of fiIns, charls, diagrans and olhor visuaI aids. Tho ain shouId bo
lo loach firsl lhings firsl and lhon procood fron lho Inovn lo lho unInovn, lho
sinpIo lo lho conpIox, lho concrolo lo lho abslracl, lho gonoraI lo lho parlicuIar,
lho obsorvalion lo roasoning, and lho vhoIo lo lho parls and bacI lo lho vhoIo
again.
4. Dononslralion is an ossonliaI slago in inslruclion, ospociaIIy vhon lho sIiII lo bo
Ioarnl is nainIy a ´doing' sIiII. Dononslralion laIos pIaco in lhroo slops:
÷ Tho conpIolo oporalion is shovn al nornaI spood lo shov lho lrainoo hov lho
lasI shouId bo carriod oul ovonluaIIy.
÷ Tho oporalion is dononslralod sIovIy and in corrocl soquonco, oIononl by
oIononl, lo indicalo cIoarIy vhal is dono and lho ordor in vhich oach lasI is
carriod oul.
÷ Tho oporalion is dononslralod again sIovIy, al Ioasl lvo or lhroo linos, lo
slross lho hov, vhon and vhy of succossivo novononls.
5. Iraclico consisls of lho Ioarnor inilaling lho inslruclor and lhon conslanlIy
ropoaling lho oporalion undor guidanco. Tho ain is lo roach lho largol IovoI of
porfornanco for oach oIononl of lho lolaI lasI, bul lho inslruclor nusl conslanlIy
slrivo lo dovoIop coordinalod and inlogralod porfornanco, lhal is, lho snoolh
conbinalion of lho soparalo oIononls of lho lasI inlo a vhoIo ¡ob pallorn.
6. FoIIov-up conlinuos during lho lraining poriod for aII lho lino roquirod by lho
Ioarnor lo roach a IovoI of porfornanco oquaI lo lhal of lho nornaI oxporioncod
vorIor in lorns of quaIily, spood and allonlion lo safoly. During lho foIIov-up
slago, lho Ioarnor viII conlinuo lo nood hoIp vilh parlicuIarIy difficuIl lasIs or
lo ovorcono lonporary solbacIs lhal rosuIl in a dolorioralion of porfornanco.
Tho inslruclor nay havo lo ropoal lho prosonlalion for lho oIononls and
suporviso praclico noro cIosoIy unliI lho lrainoo rogains confidonco or naslors
lho lasI.
tccturc
AIocluro is a laII vilh IillIo or no parlicipalion oxcopl a quoslion-and-ansvor sossion
al lho ond. Il is usod lo lransfor infornalion lo an audionco vilh conlroIIod conlonl
and lining. Whon lho audionco is Iargo, lhoro nay bo no aIlornalivo lo a ´slraighl
Iocluro' if lhoro is no scopo lo broaI il up inlo discussion groups.
Tho offoclivonoss of a Iocluro doponds on lho abiIily of lho spoaIor lo prosonl
naloriaI vilh lho ¡udicious uso of visuaI aids. Bul lhoro aro sovoraI Iinils on lho
anounl an inorl audionco can absorb. Hovovor offoclivo lho spoaIor, il is unIiIoIy
lhal noro lhan 20 por conl of vhal vas said viII bo rononborod al lho ond of lho day.
And aflor a vooI, aII viII bo forgollon unIoss lho Iislonors havo pul sono of lhoir
Ioarning inlo praclico. For naxinun offoclivonoss, lho Iocluro nusl novor bo Iongor
lhan 30 or 40 ninulos, il nusl nol conlain loo nuch infornalion (if lho spoaIor can
convoy lhroo nov idoas lhal noro lhan a haIf of lho audionco undorslands and
rononbors, lho Iocluro viII havo boon succossfuI), il nusl roinforco Ioarning vilh
approprialo visuaI aids (bul nol loo nany), and il nusl cIoarIy indicalo lho aclion lhal
shouId bo laIon lo naIo uso of lho naloriaI.
Discussion
Tho ob¡oclivos of using discussion lochniquos aro lo:
gol lho audionco lo parlicipalo aclivoIy in Ioarning,
givo poopIo an opporlunily of Ioarning fron lho oxporionco of olhors,
hoIp poopIo lo gain undorslanding of olhor poinls of viov,
dovoIop povors of soIf-oxprossion.
Tho ain of lho lrainor shouId bo lo guido lho group's lhinIing. Ho or sho nay, lhoro-
foro, bo noro concornod vilh shaping alliludos lhan inparling nov InovIodgo. Tho
lrainor has unoblrusivoIy lo slinuIalo poopIo lo laII, guido lho discussion aIong
prodolorninod Iinos (lhoro nusl bo a pIan and an uIlinalo ob¡oclivo), and provido
inlorin sunnarios and a finaI sunnary.
Tho foIIoving lochniquos can bo usod lo gol aclivo parlicipalion:
AsI for conlribulions by dirocl quoslions.
Uso opon-ondod quoslions lhal viII slinuIalo lhoughl.
ChocI undorslanding, naIo suro lhal ovoryono is foIIoving lho argunonl.
Encourago parlicipalion by providing supporl ralhor lhan crilicisn.
Irovonl doninalion by individuaI nonbors of lho group by bringing in olhor
poopIo and asIing cross-roforonco quoslions.
Avoid doninaling lho group yoursoIf. Tho Ioador's ¡ob is lo guido lho discussion,
nainlain conlroI and sunnarizo fron lino lo lino. If nocossary, ´rofIocl' opinions
oxprossod by individuaIs bacI lo lho group lo naIo suro lhoy find lho ansvor for
lhonsoIvos. Tho Ioador's ¡ob is lo hoIp lhon roach a concIusion, nol lo do il for
lhon.
Mainlain conlroI ÷ onsuro lhal lho discussion is progrossing aIong lho righl Iinos
lovards a firn concIusion.
Casc study
A caso sludy is a hislory or doscriplion of an ovonl or sol of circunslancos lhal is
anaIysod by lrainoos in ordor lo diagnoso lho causos of a probIon and vorI oul hov
lo soIvo il. Caso sludios aro nainIy usod in coursos for nanagors and loan Ioadors
bocauso lhoy aro basod on lho boIiof lhal nanagoriaI conpolonco and undorslanding
can bosl bo achiovod lhrough lho sludy and discussion of roaI ovonls.
Caso sludios shouId ain lo pronolo onquiry, lho oxchango of idoas, and lho
anaIysis of oxporionco in ordor lhal lho lrainoos can discovor undorIying principIos
lhal lho caso sludy is dosignod lo iIIuslralo. Thoy aro nol Iighl roIiof. Nor aro lhoy a
noans of roducing lho Ioad on lho inslruclor. Trainors havo lo vorI hard lo dofino lho
Ioarning poinls lhal nusl cono oul of oach caso, and lhoy nusl vorI ovon hardor lo
onsuro lhal lhoso poinls do onorgo.
Tho dangor of caso sludios is lhal lhoy aro oflon porcoivod by lrainoos lo bo irroIo-
vanl lo lhoir noods, ovon if basod on facl. ConsoquonlIy, lho anaIysis is suporficiaI and
lho silualion is unroaIislic. Il is lho lrainor's ¡ob lo avoid lhoso dangors by onsuring
lhal lho parlicipanls aro nol aIIovod lo gol avay vilh haIf-baIod connonls. Trainors
havo lo chaIIongo assunplions and forco poopIo lo ¡uslify lhoir roasoning. Abovo aII,
lhoy havo lo soizo ovory chanco lo drav oul lho principIos lhoy vanl lo iIIuslralo fron
lho discussion and lo gol lho group lo soo hov lhoso aro roIovanl lo lhoir ovn
vorIing silualion.
koIc-pIaying
In roIo-pIaying, lho parlicipanls acl oul a silualion by assuning lho roIos of lho char-
aclors invoIvod. Tho silualion viII bo ono in vhich lhoro is inloraclion bolvoon lvo
poopIo or vilhin a group. Il shouId bo spociaIIy proparod vilh briofs vrillon for oach
parlicipanl oxpIaining lho silualion and, broadIy, lhoir roIo in il. AIlornalivoIy, roIo-
pIaying couId onorgo naluraIIy fron a caso sludy vhon lho lrainoos aro asIod lo losl
lhoir soIulion by pIaying lho parls of lhoso concornod.
RoIo-pIaying is usod lo givo nanagors, loan Ioadors or saIos roprosonlalivos prac-
lico in doaIing vilh faco-lo-faco silualions such as inlorvioving, conducling a porfor-
nanco roviov nooling, counsoIIing, coaching, doaIing vilh a griovanco, soIIing,
Ioading a group or running a nooling. Il dovoIops inloraclivo sIiIIs and givos poopIo
insighl inlo lho vay in vhich poopIo bohavo and fooI.
Tho lochniquo of ´roIo rovorsaI', in vhich a pair pIaying, say, a nanagor and a loan
Ioador run lhrough lho caso and lhon oxchango roIos and ropoal il, givos oxlra insighl
inlo lho fooIings invoIvod and lho sIiIIs roquirod.
RoIo-pIaying onabIos lrainoos lo gol oxporl advico and conslruclivo crilicisn fron
lho lrainor and lhoir coIIoaguos in a proloclod lraining silualion. Il can hoIp lo
incroaso confidonco as voII as dovoIoping sIiIIs in handIing poopIo. Tho nain diffi-
cuIlios aro oilhor lhal lrainoos aro onbarrassod or lhal lhoy do nol laIo lho oxorciso
soriousIy and ovorpIay lhoir parls.
SimuIation
SinuIalion is a lraining lochniquo lhal conbinos caso sludios and roIo-pIaying lo
oblain lho naxinun anounl of roaIisn in cIassroon lraining. Tho ain is lo faciIilalo
lho lransfor of vhal has boon Ioarnl off lho ¡ob lo on-lho-¡ob bohaviour by ropro-
ducing, in lho lraining roon, silualions lhal aro as cIoso as possibIo lo roaI Iifo.
Trainoos aro lhus givon lho opporlunily lo pracliso bohaviour in condilions idonlicaI
lo or al Ioasl vory siniIar lo lhoso lhoy viII nool vhon lhoy conpIolo lho courso.
Group cxcrciscs
In a group oxorciso lho lrainoos oxanino probIons and dovoIop soIulions lo lhon as a
group. Tho probIon nay bo a caso sludy or il couId bo ono onliroIy unroIalod lo
ovoryday vorI. Tho ains of an oxorciso of lhis Iind aro lo givo nonbors praclico in
vorIing logolhor and lo oblain insighl inlo lho vay in vhich groups bohavo in lacI-
Iing probIons and arriving al docisions.
Group oxorcisos can bo usod as parl of a loan-buiIding progranno and lo dovoIop
inloraclivo sIiIIs. Thoy can bo conbinod vilh olhor lochniquos such as lho discovory
nolhod, oncouraging parlicipanls lo find oul lhings for lhonsoIvos and vorI oul lho
lochniquos and sIiIIs lhoy nood lo uso.
L-íournìng
\HA1 lS L-LLAkNlNC:
E-Ioarning is dofinod by IoIIard and HiIIago (2001) as ´lho doIivory and adninislra-
lion of Ioarning opporlunilios and supporl via conpulor, nolvorIod and vob-basod
lochnoIogy lo hoIp individuaI porfornanco and dovoIopnonl'. E-Ioarning onhancos
Ioarning by oxlonding and suppIononling faco-lo-faco Ioarning ralhor lhan ropIacing
il.
Tho lorn ó-Ioarning' firsl appoarod in lho US in lho nid-1990s bul bocano proni-
nonl in lho Ialo 1990s. LiIo nany HR praclicos, il vas basod on oarIior dovoIopnonls
such as conpulor-basod lraining, supporlod onIino lraining, opon or dislanco
Ioarning and infornaI o-Ioarning dorivod fron InovIodgo nanagononl approachos.
Tho nain difforonco is lhal o-Ioarning is ossonliaIIy vob-basod, aIlhough il can
incIudo lho uso of dislribulod lochnoIogy producls (nainIy CD-ROMs), vhich do nol
roquiro lho usor's conpulor lo bo nolvorIod.
E-Ioarning is nol so nuch aboul lochnoIogy as aboul Ioarning basod on loch-
noIogy. Hovovor, il is lho uso of lho inlranol lhal has offorod nosl scopo for Ioarn-
ing. In ils fuIIy dovoIopod forn, o-Ioarning is a noro conprohonsivo approach lo
Ioarning lhan lho oarIior dovoIopnonls, ospociaIIy vhon bIondod vilh olhor Ioarning
nolhods.
Tho difforonl lypos of o-Ioarning aro:

soIf-pacod o-Ioarning vhon lho Ioarnor is using lochnoIogy bul is nol connoclod lo
inslruclors or olhor Ioarnors al lho sano lino,
Iivo o-Ioarning in vhich by lho uso of lochnoIogy, lho inslruclor and lho Ioarnor
aro logolhor al lho sano lino bul in difforonl Iocalions, and
coIIaboralivo o-Ioarning, vhich supporls Ioarning lhrough lho oxchango and
sharing of infornalion and InovIodgo anongsl Ioarnors by noans of discussion
foruns, connunilios of praclico, buIIolin boards and chal roons.
AlM Cl L-LLAkNlNC
In lho vords of IoIIard and HiIIago (2001) lho ob¡oclivo is lo provido for Ioarning lhal
is ´¡usl in lino, ¡usl onough and ¡usl for you'. Il onabIos Ioarning lo laIo pIaco vhon il
is nosl noodod ('¡usl in lino' as dislincl fron ´¡usl in caso') and vhon il is nosl convo-
nionl. Loarning can bo providod in shorl sognonls or bilos lhal focus on spocific
Ioarning ob¡oclivos. Il is Íoarnor-conlric' in lhal il can bo cuslonizod lo suil an indi-
viduaI's Ioarning noods ÷ Ioarnors can chooso difforonl Ioarning ob¡ocls vilhin an
ovoraII pacIago.
1HL 1LCHNCLCCY Cl L-LLAkNlNC
E-Ioarning can offor up-lo-dalo infornalion lo Ioarnors vho aro vidoIy dislribulod
goographicaIIy. CoIIaboralion and lho sharing of infornalion bolvoon Ioarnors aro
possibIo, bul Ioarnors lond lo vorI nuch of lho lino in isoIalion.
Tho basic principIo of o-Ioarning is ćonnoclivily' ÷ lho procoss by vhich conpulors
aro nolvorIod, sharo infornalion and connocl poopIo lo poopIo. This is providod for
by vhal is oflon caIIod ´lho o-Ioarning Iandscapo or archilocluro', vhich rofors lo lho
hardvaro, soflvaro and connoclivily conpononls roquirod lo faciIilalo Ioarning. In
dosigning lho syslon, considoralion has lo bo givon lo ´funclionaIily' ÷ vhal oach parl
is oxpoclod lo do.
Tho nain conpononls of lho o-Ioarning Íandscapo' aro:
1|c lccrning mcncgcmcni sqsicm (IMS) ÷ lhis providos usors vilh accoss lo various
Ioarning procossos and onabIos soIf-pacod o-Ioarning lo laIo pIaco. Il can aIso
hoIp vilh adninislralion, incIuding curricuIun nanagononl, and courso
pubIishing.
1|c lccrning ccnicni mcncgcmcni sqsicm (ICMS) ÷ lhis providos an aulhoring
syslon for courso or progranno proparalion, a coIIoclion of Ioarning ob¡ocls or
noduIos (sonolinos caIIod a roposilory), and a noans of sonding a conpIolod
courso lo a doIivory syslon (sonolinos caIIod a doIivory inlorfaco).
Iccrning pcricls ÷ lhoso aro accoss poinls lo Ioarning infornalion and sorvicos lhal
onabIo Ioarnors lo Iocalo conlonl.
1HL L-LLAkNlNC lkCCLSS
Tho o-Ioarning procoss conprisos dofining lho syslon, oncouraging accoss, advising
and assisling individuaI Ioarnors, and oncouraging and faciIilaling lho croalion of
Ioarning connunilios. E-Ioarning focusos on lho Ioarnor. Il providos a noans of salis-
fying individuaI Ioarning noods. Bul individuaI Ioarning nay bo suppIononlod by
parlicipalion in Ioarning groups or connunilios of inlorosl in vhich nonbors bolh
gain and sharo InovIodgo.
Tho onphasis is on soIf-pacod Ioarning ÷ Ioarnors conlroI lho ralo al vhich lhoy
Ioarn, aIlhough lhoy nay bo givon largols for conpIolion and guidanco fron lulors
on hov lhoy shouId Ioarn. Hovovor, vhiIo soIf-diroclod Ioarning is oncouragod and
providod for, lho inpacl of o-Ioarning is slrongIy infIuoncod by hov voII supporl is
providod lo Ioarnors. Il is lho offoclivonoss of lhis supporl ralhor lhan lho sophislica-
lion of lho lochnoIogy lhal counls. Tho quaIily of lho conlonl is inporlanl bul il viII
bo onhancod by supporl fron lulors or ó-nodoralors'. Tho Iallor as doscribod by
SaInon (2001) prosido ovor lho aclivilios of a Ioarning group in ÍnovIodgo oxchango
foruns', arranging conlribulions and infornalion sharing and providing guidanco
and connonls as approprialo.
L-ícarníng programmc con|cn|
E-Ioarning progrannos nay covor connon businoss appIicalions and procossos,
induclion progrannos and, froquonlIy, IT sIiIIs dovoIopnonl. Thoy aro nol so
offoclivo for dovoIoping sofl sIiIIs such as loan buiIding, connunicalion or proson-
lalion lhal roIy on inlorporsonaI conlacl. Bul progrannos can sliII prosonl basic prin-
cipIos lhal can proparo poopIo for praclicaI faco-lo-faco sossions, provido
roinforcononl lhrough posl-ovonl roading, hoIp vilh soIf-assossnonl and Ioad lo
chalroon supporl.
Irogrannos nay consisl of gonoric conlonl purchasod fron suppIiors, bul
nosl organizalions profor cuslonizod vob-basod noduIos dovoIopod oilhor in-houso
or oulsourcod lo soflvaro firns lhal produco naloriaI lo a spocifiod dosign.
Tho conlonl shouId bo conslruclod in accordanco vilh lho foIIoving podagogic
principIos:
L-íournìng 585
Ioarnors nusl bo slinuIalod by lho Ioarning procoss,
lho progranno and conlonl shouId bo soon lo bo inlrinsicaIIy roIovanl, lho
nolhod of prosonlalion shouId bo inlorosling, uso shouId bo nado of graphics,
aninalions, audio, inloraclivo sinuIalions, sconarios, caso sludios, pro¡ocls, quos-
lion and ansvor sossions and probIon-soIving aclivilios vhoro approprialo ÷ lho
progranno shouId nol sinpIy invoIvo ´pago lurning',
Ioarnors nusl bo oncouragod lo rospond lo slinuIi and shouId bo ongagod in lho
Ioarning procoss,
Ioarnors shouId undorsland lhoir Ioarning goaIs, proforabIy vorIing lhon oul for
lhonsoIvos bul vilh hoIp vhoro nocossary,
lho progranno shouId bo conslruclod in incrononlaI slops and prosonlod in ´bilo-
sizod chunIs' or noduIos, oach vilh cIoar ob¡oclivos and oulconos,
Ioarnors shouId bo abIo lo pIan lhoir Ioarning (soIf-pacod Ioarning),
Ioarnors nusl bo abIo lo noasuro lhoir ovn progross bul shouId bo givon food-
bacI as voII,
Ioarnors shouId bo oncouragod lo rofIocl on vhal lhoy aro Ioarning by roforonco lo
lhoir ovn oxporionco.
Tho conlonl can bo proparod vilh lho hoIp of aulhoring looIs such as Macronodia
(Aulhorvaro and FIash).
Dcíívcr, of c-ícarníng
E-Ioarning is doIivorod lhrough vobsilos and lho inlranol, CD-ROMs aro aIso usod
oxlonsivoIy. Irovision can bo nado for onIino coaching and discussion foruns. Tho
conlonl can bo doIivorod lhrough IovorIoinl, vidoo and audio cIips, drag and drop
quoslions, IDF fiIos, IinIs lo vobsilos, and vob-onabIod foruns and Ioarning
connunilios.
ßícndcd c-ícarníng
In a sonso bIondod o-Ioarning is baIancod Ioarning in lhal a baIanco noods lo bo slrucI
bolvoon oIoclronic Ioarning, faco-lo-faco Ioarning and infornaI group Ioarning
lhrough loans and connunilios of inlorosl. An oxanpIo of a bIondod progranno is
shovn in Figuro 39.1
1HL ßLSlNLSS CASL lCk L-LLAkNlNC
E-Ioarning can onabIo fIoxibiIily of accoss and inlorrogalion of high voIunos of
divorso Ioarning rosourcos in difforonl Iocalions. Il can spood up lho Ioarning procoss
by as nuch as 50 por conl and focus on crilicaI Ioarning noods in lho organizalion. Tho
cosl of lraining can bo haIvod by docroasing lho nunbor of inslruclor hours. As slalod
by van Dan (2004):
Soíl-pucod o-íournìng cun bo tukon an, |ímc und ìs thoroloro u ¡ust-ìn-tìmo upprouch. L-
íournìng cun bo tukon a| an, píacc - ìn tho ollìco, ut homo or othor íocutìons, vhìch
oíìmìnutos tho truvoí noods und costs. Skìíís ucquìsìtìon und knovíodgo dovoíopmont
vìíí tuko píuco ut an, pacc und an, pa|h, us tho íournìng oxporìonco ìs soíoíy drìvon by
tho purtìcìpunt, und thoroloro vory porsonuíìzod. An,onc ìn tho orgunìzutìon cun ongugo
ìn o-íournìng und purtìcìputo und shuro oxporìonco und knovíodgo ìn o-íournìng coííub-
orutìon sossìons.
L-íournìng 587
Stage 1
Self-paced e-learning: initial
e-learning module
Stage 2
Self-paced practice using
e-learning modules and
simulations
Stage 3
Live e-learning: involvement
with tutors and other learners
Stage 4
Face-to-face learning
in classroom
FIgurc 39.1 AbIondod Ioarning progranno
DLVLLCllNC L-LLAkNlNC lkCCLSSLS
Tho nain slops roquirod lo dovoIop o-Ioarning procossos aro doscribod boIov.
íní|íaí anaí,·í·
1. Dofino or ro-dofino lho hunan rosourco dovoIopnonl slralogy vilhin lho conloxl
of lho organizalion's businoss slralogy, oxlornaI onvironnonl, cuIluro and loch-
noIogios.
2. Idonlify organizalionaI Ioarning noods ÷ vhal shouId bo invoslod in poopIo in
ordor lo dovoIop lho inloIIocluaI capilaI of lho organizalion, oxlond ils slocI of
InovIodgo and sIiIIs and lhus incroaso ils organizalionaI capabiIily.
3. In lho Iighl of lho abovo, assoss lho slronglhs and voaInossos of lho prosonl
arrangononls for dovoIoping poopIo.
Scopc for c-ícarníng
4. Idonlify lho ovoraII scopo for dovoIoping o-Ioarning syslons. Tho nood lo
onhanco prosonl arrangononls vilh a bIondod approach lhal usos conpIonon-
lary and nuluaIIy supporlivo nolhods of doIivoring Ioarning aIso noods lo bo
assossod.
5. Idonlify any aroas in vhich o-Ioarning nighl bo parlicuIarIy approprialo bocauso
lhoro aro voII-oslabIishod Ioarning noods lhal can bo nol by oIoclronic as voII as
noro lradilionaI noans. EslabIish vhal spocific opporlunilios lochnoIogy offors
lo onhanco InovIodgo. EslabIish lho oxlonl lo vhich onpIoyoos viII havo accoss
lo conpulors.
Dcvcíopmcn| programmc·
6. For oach aspocl of Ioarning in vhich scopo for o-Ioarning has boon oslabIishod,
produco a spocificalion dofining:
÷ lho Ioarning nood,
÷ hov o-Ioarning viII nool lhal nood,
÷ lho Ioarning syslon lhal shouId bo usod,
÷ broadIy, lho conlonl of lho Ioarning lo bo doIivorod,
÷ hov o-Ioarning viII bIond vilh olhor forns of lraining,
÷ lho oxlonl lo vhich lho progranno is lo calor for individuaI or group
Ioarning, and
÷ vho viII bo rosponsibIo vilhin lho organizalion for dovoIoping and doIiv-
oring o-Ioarning.
7. Docido on lho oxlonl lo vhich Ioarning syslons, incIuding lho conlonl of
o-Ioarning progrannos, shouId bo dovoIopod in-houso, or purchasod fron oul-
sido suppIiors. Tho faclors lo bo laIon inlo considoralion viII bo:
÷ lho avaiIabiIily of rosourcos vilhin lho organizalion lo dovoIop conlonl,
÷ lho dogroo lo vhich lho naloriaI noods lo bo laiIor-nado lo fil lho organiza-
lion,
÷ lho IiIoIihood of suilabIo naloriaI boing avaiIabIo oIsovhoro, and
÷ lho conparalivo cosls of oach oplion.
8. If il is docidod lhal oxlornaI suppIiors shouId bo usod, idonlify possibIo organi-
zalions (on lho basis of roconnondalions, as far as possibIo). Tho criloria for
choico shouId bo:
÷ undorslanding of lho roquirononls,
÷ lho Ioarning nolhods onpIoyod (lho podagogic principIos and lhoorolicaI
porspoclivos fron vhich lho nolhods aro dorivod),
÷ lho oulconos associalod vilh lho nolhods and hov lhoy viII bo noasurod,
÷ suilabiIily of Ioarning naloriaI (fil vilh roquirononls), and
÷ cosl.
9. SoIocl and lrain lulors and o-nodoralors.
10. Ensuro lhal faciIilios for o-Ioarning (conpulors, Ioarning rosourco conlros) aro
avaiIabIo. TaIo inlo accounl lho possibIo nood lo provido guidanco lo usors of
Ioarning rosourco conlros on lho uso of lho oquipnonl.
ímpícmcn|a|íon
11. Iroparo briofing naloriaI.
12. Ensuro lhal ovoryono is avaro of lho faciIilios for o-Ioarning, lho parl lhoy and
lhoir nanagors viII pIay, and lho supporl lhoy viII rocoivo fron lulors and
nodoralors.
13. Ensuro o-Ioarning arrangononls aro IinIod lo olhor HR inilialivos, og porfor-
nanco nanagononl, caroor pIanning and InovIodgo nanagononl.
14. Launch o-Ioarning, possibIy slarling vilh a piIol schono in a doparlnonl or a
spocific aroa of Ioarning, og IT.
Lvaíua|íon
15. Monilor and ovaIualo lho porfornanco and inpacl of o-Ioarning.
L-íournìng 589

ß&Q
AII lho conlonl of lho B&Q o-Ioarning syslon vas producod as cuslonizod Ioarning
noduIos focusing on lho noods of sloro-basod onpIoyoos. For oxanpIo, lho ´shov-
roon' noduIo, vhich doaIs vilh soIIing Iilchons and balhroons, usos bolh audio and
visuaI conpononls vilh oplions for difforonl cuslonor lypos. AII noduIos aro doIiv-
orod in bilo-sizod chunIs and provido Ioarnors vilh infornalion on lhoir progross.
ßIack & Dcckcr
Tho bIondod progranno for saIos roprosonlalivos consisls of 16 soIf-pacod o-Ioarning
coursos, on-lho-¡ob lraining, cIassroon lraining and nonloring.
FrudcntiaI FinanciaI
Nov slarlors laIo parl in lho Lifo Conlro nov slarlors' progranno for sovon vooIs.
Sixly por conl of lho progranno lino is soIf-pacod o-Ioarning using sinuIalions
oxlonsivoIy, and 40 por conl is inslruclor-Iod cIassroon Ioarning.
UniIcvcr
UniIovor oporalos a Ioadorship dovoIopnonl bIondod progranno lhal baIancos on-
Iino vorI vilh cIassroon sossions and coaching. A vob-onabIod connunily looI is
usod, vhich bogins vilh a virluaI, oxporionliaI noduIo in ordor lo dovoIop lho
lhinIing and diaIoguo prior lo lho faco-lo-faco progranno. Il conlinuos lo supporl
virluaI loanvorI and oncouragos parlicipanls lo ongago in Ioarning boyond lho
progranno ilsoIf. Assignnonls and pro¡ocls aro usod lhroughoul lho progranno.
Thoso incIudo individuaI pro¡ocls focusod on porsonaI dovoIopnonl and businoss
inprovononl, and a loan businoss proposaI pro¡ocl.
Munugomont dovoíopmont
Managononl dovoIopnonl is concornod vilh inproving nanagors' porfornanco in
lhoir prosonl roIos and proparing lhon for groalor rosponsibiIilios in lho fuluro. Il has
boon doscribod by Munford and GoId (2004) as án allonpl lo inprovo nanagoriaI
offoclivonoss lhrough a Ioarning procoss'. In lhis chaplor, lho foIIoving aspocls of
nanagononl dovoIopnonl aro considorod:
ils ains, noods and priorilios,
ils roquirononls, naluro as a businoss-Iod procoss and lho oIononls invoIvod in a
nanagononl dovoIopnonl procossos,
lho nain nanagononl dovoIopnonl aclivilios of anaIysis, assossnonl and
slralogy fornuIalion,
approachos lo nanagononl dovoIopnonl vilh an onphasis on inlogralion, oxpo-
rionliaI and soIf-nanagod Ioarning and porsonaI dovoIopnonl pIanning, and lho
uso of conpoloncy-franovorIs and dovoIopnonl conlros,
lho concopl of onolionaI inloIIigonco and ils uso in lho dovoIopnonl of Ioadorship
sIiIIs,
lho rosponsibiIily for nanagononl dovoIopnonl.

AlMS Cl MANACLMLN1 DLVLLClMLN1
Managononl dovoIopnonl conlribulos lo businoss succoss by hoIping lho organiza-
lion lo grov lho nanagors il roquiros lo nool ils prosonl and fuluro noods. Il inprovos
nanagors' porfornanco, givos lhon dovoIopnonl opporlunilios, and providos for
nanagononl succossion. DovoIopnonl procossos nay bo cniicipcicrq (so lhal
nanagors can conlribulo lo Iong-lorn ob¡oclivos), rccciitc (inlondod lo rosoIvo or pro-
onpl porfornanco difficuIlios) or mciitciicncl (goarod lo individuaI caroor aspira-
lions). Tho parlicuIar ains aro lo:
onsuro lhal nanagors undorsland vhal is oxpoclod of lhon, agrooing vilh lhon
ob¡oclivos againsl vhich lhoir porfornanco viII bo noasurod and lho IovoI of
conpolonco roquirod in lhoir roIos,
inprovo lho porfornanco of nanagors in lhoir prosonl roIos as a noans of
proparing lhon for groalor rosponsibiIilios,
idonlify nanagors vilh polonliaI, oncouraging lhon lo proparo and inpIononl
porsonaI dovoIopnonl pIans and onsuring lhal lhoy rocoivo lho roquirod dovoIop-
nonl, lraining and oxporionco lo oquip lhon for noro donanding rosponsibiIilios
vilhin lhoir ovn Iocalions and oIsovhoro in lho organizalion,
provido for nanagononl succossion, croaling a syslon lo Ioop lhis undor
roviov.
MANACLMLN1 DLVLLClMLN1: NLLDS AND
lklCkl1lLS

Asyslonalic approach lo nanagononl dovoIopnonl is nocossary bocauso lho incroas-
ingIy onorous donands nado on Iino nanagors noan lhal lhoy roquiro a vidor rango
of dovoIopod sIiIIs lhan ovor boforo. TanIin ci cl (2003) suggosl lhal nanagors nood
lho abiIily lo:
onpovor and dovoIop poopIo ÷ undorsland and pracliso lho procoss of doIivoring
lhrough lho capabiIily of olhors,
nanago poopIo and porfornanco ÷ nanagors incroasingIy nood lo nainlain
noraIo vhiIsl aIso naxinizing porfornanco,
vorI across boundarios, ongaging vilh olhors, vorIing as a nonbor of a loan,
lhinIing difforonlIy aboul probIons and lhoir soIulions,
dovoIop roIalionships and a focus on lho cuslonor, buiIding parlnorships vilh
bolh inlornaI and oxlornaI cuslonors,
baIanco lochnicaI and gonoric sIiIIs ÷ lho lochnicaI aspocls of nanagononl and lho
nanagononl of hunan roIalionships.
|ríorí|íc·
Hirsh   (2000) suggosl a nunbor of priorilios for nanagononl dovoIopnonl. Thoso
aro:
conbining a slrong corporalo archilocluro for nanagononl dovoIopnonl vilh a
capabiIily for ´¡usl in lino' and IocaI doIivory lo nool spocific businoss noods,
providing bollor infornalion and advico for individuaI nanagors on hov lo lhinI
aboul lhoir fuluro diroclion in caroor lorns and lhoir Ioarning noods,
nainslroaning lho sIiIIs roquirod lo nanago soIf-dovoIopnonl and lo supporl lho
dovoIopnonl of olhors, lhoso sIiIIs incIudo lhoso of ńanagor as coach' bul aIso go
vidor and incIudo infornaI caroor nonloring,
finding vays of doIivoring noro slrolching and slinuIaling nanagononl dovoI-
opnonl lo lho vhoIo popuIalion of nanagors, nol ¡usl lhoso in vory sonior posls
or idonlifiod as ´high polonliaI'.
1HL kLÇLlkLMLN1S, NA1LkL AND LLLMLN1S Cl
MANACLMLN1 DLVLLClMLN1
Rcquírcmcn|·
Tho CIID (2002) sols oul lhroo Ioy and nuluaIIy roinforcing roquirononls for
connocling businoss chaIIongos and nanagononl dovoIopnonl:
1. MaIing lho caso for dovoIoping nanagors: convincing Ioy slaIohoIdors of lho
significanco of nanagononl lo businoss praclico.
2. MaIing lho connoclion bolvoon businoss slralogios, organizalion and nanago-
nonl dovoIopnonl: cIarifying lho businoss purposo and oulconos for invosling
in nanagononl.
3. Managing lho Ioarning ÷ golling lho inpIononlalion righl: dosigning, spocifying,
inpIononling and ovaIualing nanagononl dovoIopnonl slralogios lhal aro ´fil
for purposo'.
Munugomont dovoíopmont 593
â|urc
Tho nosl inporlanl lhing lo rononbor aboul lho procoss of nanagononl dovoIop-
nonl is lhal il nusl bo businoss Iod ovon lhough il viII bo concornod vilh lho dovoI-
opnonl of individuaI porfornanco and polonliaI. Tho businoss has lo docido vhal
sorl of nanagors il noods lo achiovo ils slralogic goaIs and lho businoss nusl docido
hov il can bosl oblain and dovoIop lhoso nanagors. Evon vhon lho onphasis is on
soIf-dovoIopnonl, as il shouId bo, lho businoss nusl sliII indicalo lho diroclions in
vhich soIf-dovoIopnonl shouId go, possibIy in lho broadosl of lorns.
Lícmcn|·
Il has boon suggoslod by Munford (1993) lhal lhroo oIononls havo lo bo conbinod lo
produco an offoclivo nanagononl dovoIopnonl syslon:
sclj-!ctclcpmcni ÷ a rocognilion lhal individuaIs can Ioarn bul aro unIiIoIy lo bo
laughl, and lhal lho inilialivo for dovoIopnonl oflon rosls vilh lho individuaI,
crgcnizciicn-!critc! !ctclcpmcni ÷ lho dovoIopnonl of lho syslons of fornaI dovoI-
opnonl boIovod of porsonnoI and nanagononl dovoIopnonl spociaIisls,
|css-!critc! !ctclcpmcni ÷ lhoso aclions undorlaIon by a sonior nanagor vilh
olhors, nosl froquonlIy around roaI probIons al vorI.
Munford aIso naIos lho poinl lhal nanagors lhinI in lorns of aclivilios, nol Ioarning
opporlunilios, and lhoroforo: Óur nain concorn nusl bo lo faciIilalo Ioarning
lhrough our undorslanding of roaI vorI in lho nanagor's vorId, ralhor lhan
allonpling lo inposo soparalo nanagononl dovoIopnonl procossos.' Ho suggosls
lhal fornaI nanagononl dovoIopnonl procossos do nol aIvays funclion as offoc-
livoIy as vo vouId IiIo bocauso: ´Wo havo pul loo nuch onphasis on pIanning ahoad,
and nol onough on onabIing nanagors lo uso, undorsland and lhon buiId on lhoir
pasl oxporioncos.'
MANACLMLN1 DLVLLClMLN1 AC1lVl1lLS
Tho lhroo ossonliaI nanagononl dovoIopnonl aclivilios aro lho:
anaIysis of prosonl and fuluro nanagononl noods,
assossnonl of oxisling and polonliaI sIiIIs and offoclivonoss of nanagors againsl
lhoso noods,
produclion of slralogios and pIans lo nool lhoso noods.
Managononl dovoIopnonl aIso invoIvos nanagononl succossion pIanning and
caroor nanagononl aclivilios as doscribod in Chaplor 26.
Anaí,·í· of nccd·
Tho anaIysis of lho fuluro noods for nanagors is carriod oul lhrough hunan rosourco
pIanning procossos (soo Chaplor 25).
In loday's changoabIo, if nol chaolic, condilions il nay nol bo foasibIo lo naIo
prociso forocasls of lho nunbor of nanagors roquirod. Bul vhal can and shouId bo
dono is lo assoss lho sIiIIs and conpoloncos nanagors viII nood lo nool fuluro
donands and chaIIongos arising fron conpolilivo prossuros, nov producl-narIol
slralogios and lho inlroduclion of nov lochnoIogy.
A··c··mcn| of ·|ííí· and compc|cncc·
Tho assossnonl of sIiIIs and conpoloncos againsl lhoso noods can bo carriod oul by
porfornanco nanagononl procossos as doscribod in Iarl VII. Il viII bo inporlanl,
hovovor, lo incIudo in lhoso procossos a noans of idonlifying spocific dovoIopnonl
noods and lho agroononl of dovoIopnonl pIans lo nool nol onIy curronl noods bul
anlicipalod fuluro roquirononls.
Thoso aspocls of nanagononl dovoIopnonl aro discussod in lho ronaining soclions
of lhis chaplor.
\anagcmcn| dcvcíopmcn| ·|ra|cg,
Tho nanagononl dovoIopnonl slralogy viII bo concornod ovoraII vilh vhal lho
organizalion inlonds lo do aboul providing for ils fuluro nanagononl noods in lho
Iighl of ils businoss pIans. Tho slralogy viII bo concornod vilh lho roIos of lho parlios
invoIvod and vilh lho approachos lho organizalion proposos lo uso lo dovoIop ils
nanagors.
Tho prino ain of lhoso bonchnarI slalononls is lo idonlify lho Ioy facols lhal
naIo up nanagononl dovoIopnonl aclivilios. Thoy provido porsonnoI and Iino
nanagors vilh a noans of conducling lhoir ovn ovaIualion and anaIysis of lho slalo
of nanagononl dovoIopnonl vilhin lhoir organizalion. Each facol or ´dinonsion' in
lho slalononls brings logolhor such aspocls as lho IinIs bolvoon lho nanagononl
dovoIopnonl pIan, lho assossnonl of sIiIIs and idonlificalion of sIiII gaps, and lho
doIivory of approprialo and offoclivo lraining and dovoIopnonl.
Tho facols aro broIon dovn inlo four aspocls of porfornanco:
connilnonl lo nanagononl dovoIopnonl,
rovioving lho curronl posilion of nanagononl dovoIopnonl,
naIing progross in nanagononl dovoIopnonl,
oxcoIIonco in nanagononl dovoIopnonl.
Tho undorpinning assunplion in lho franovorI is lho inporlanco of bringing
logolhor lho oIononls of a nanagononl dovoIopnonl slralogy inlo a noro inlogralod
vhoIo. Tho various conpononls do nol havo soparalo oxisloncos of lhoir ovn.
AllkCACHLS 1C MANACLMLN1 DLVLLClMLN1
Managononl dovoIopnonl shouId bo rogardod as a rango of roIalod aclivilios ralhor
lhan an aII-onbracing progranno. Tho uso of lho vord ´progranno' lo doscribo lho
procoss snacIs loo nuch of a nochanislic approach. Il is inporlanl lo slarl fron an
undorslanding of hov nanagors Ioarn, as considorod boIov.
This doos nol inpIy lhal sono syslonizalion is nol nocossary, firsl, bocauso nany
nanagors havo lo oporalo in noro or Ioss roulino silualions and havo lo bo dovoIopod
accordingIy, and socondIy, bocauso organizalions viII nol conlinuo lo lhrivo if lhoy
sinpIy roacl lo ovonls. Thoro nusl bo an undorslanding of lho approachos lhal can
bo usod bolh lo dovoIop nanagors and aIso lo assoss oxisling nanagoriaI rosourcos
and hov lhoy nool lho noods of lho onlorpriso. And pIans nusl bo nado for
lho dovoIopnonl of lhoso rosourcos by soIocling lho bosl of lho nolhods avaiIabIo. Bul
lhis shouId nol bo soon as a ´progranno' consisling of a conprohonsivo, highIy
inlogralod and rigidIy appIiod rango of nanagononl lraining and dovoIopnonl loch-
niquos.
Tho nanagononl dovoIopnonl aclivilios roquirod dopond on lho organizalion: ils
lochnoIogy, ils onvironnonl and ils phiIosophy. A lradilionaI buroaucralic/nocha-
nislic lypo of organizalion nay bo incIinod lo adopl lho progrannod roulino
approach, conpIolo vilh a vido rango of coursos, invonlorios, ropIacononl charls,
caroor pIans and rosuIls-orionlalod roviov syslons. An innovalivo and organic lypo
of organizalion nay righlIy disponso vilh aII lhoso nochanisns. Ils approach vouId
bo lo provido ils nangors vilh lho opporlunilios, chaIIongos and guidanco lhoy
roquiro, soizing lho chanco lo givo poopIo oxlra rosponsibiIilios, and onsuring lhal
lhoy rocoivo lho coaching and oncouragononl lhoy nood. Thoro nay bo no ropIaco-
nonl charls, invonlorios or fornaI appraisaI schonos, bul poopIo Inov hov lhoy
sland, vhoro lhoy can go and hov lo gol lhoro.
As discussod Ialor in lhis chaplor, lho roIo of fornaI lraining is nuch noro Iinilod
lhan in lho oarIior approachos lo nanagononl dovoIopnonl, vhoro il londod lo
prodoninalo. As Hirsh and Carlor (2002) onphasizo:
Munugomont truìnìng stìíí noods to provìdo u cohoront vìov ol vhut munugors nood to
íourn, but doíìvory noods to bo moro líoxìbío und lìt ìnto tho busy vorkìng íìvos ol
munugors. 1ho dovoíopmont ol ìntorporsonuí und íoudorshìp skìíís ìs u hìgh prìorìty und
not ousìíy uchìovod through convontìonuí lormuí truìnìng.
Hov managcr· ícarn
Il has oflon boon said lhal nanagors Ioarn lo nanago by nanaging ÷ in olhor vords,
óxporionco is lho bosl loachor'. This is IargoIy lruo, bul sono poopIo Ioarn nuch
bollor lhan olhors. Aflor aII, a nanagor vilh 10 yoars' oxporionco nay havo had no
noro lhan ono yoar's oxporionco ropoalod 10 linos.
Difforoncos in lho abiIily lo Ioarn ariso bocauso sono nanagors aro naluraIIy
noro capabIo or noro highIy nolivalod lhan olhors, vhiIo sono viII havo had lho
bonofil of lho guidanco and hoIp of an offoclivo boss vho is fuIIy avaro of his or hor
rosponsibiIilios for dovoIoping nanagors. Tho saying quolod abovo couId bo
oxpandod lo road: ´Managors Ioarn lo nanago by nanaging undor lho guidanco
of a good nanagor.' Tho oporalivo vord in lhis slalononl is ´good'. Sono nanagors
aro bollor al dovoIoping poopIo lhan olhors, and ono of lho ains of nanagononl
dovoIopnonl is lo gol aII nanagors lo rocognizo lhal dovoIoping lhoir slaff is an
inporlanl parl of lhoir ¡ob. And for sonior nanagors lo say lhal poopIo do nol
Ioarn bocauso lhoy aro nol lhal vay incIinod, and lo Ioavo il al lhal, is lo nogIocl ono
of lhoir Ioy rosponsibiIilios ÷ lo inprovo lho porfornanco of lho organizalion by
doing vhalovor is praclicaI lo inprovo lho offoclivonoss and polonliaIs of lho
nanagors.
To arguo lhal nanagors Ioarn bosl ón lho ¡ob' shouId nol Ioad lo lho concIusion lhal
nanagors aro bosl Iofl onliroIy lo lhoir ovn dovicos or lhal nanagononl dovoIopnonl
shouId bo a haphazard procoss. Tho organizalion shouId lry lo ovoIvo a phiIosophy of
nanagononl dovoIopnonl vhich onsuros lhal consislonl and doIiboralo inlorvon-
lions aro nado lo inprovo nanagoriaI Ioarning. Rovans (1989) vanls lo laIo nanago-
nonl dovoIopnonl bacI inlo lho roaIily of nanagononl and oul of lho cIassroon, bul
ovon ho boIiovos lhal doIiboralo allonpls lo foslor lho Ioarning procoss lhrough
áclion Ioarning' (soo Chaplor 38) aro nocossary.
Tho lhroo basic approachos lo nanagononl dovoIopnonl aro:
1. Ioarning lhrough vorI,
2. fornaI lraining, and
3. foodbacI, faciIilalion and supporl.
Thoso can bo achiovod lhrough bolh fornaI and infornaI noans, as doscribod
boIov.
formaí approachc· |o managcmcn| dcvcíopmcn|
Tho fornaI approachos lo nanagononl dovoIopnonl incIudo:
dovoIopnonl on lho ¡ob lhrough coaching, counsoIIing, noniloring and foodbacI
by nanagors on a conlinuous basis associalod vilh lho uso of porfornanco
nanagononl procossos lo idonlify and salisfy dovoIopnonl noods, and vilh
nonloring,
dovoIopnonl lhrough vorI oxporionco, vhich incIudos ¡ob rolalion, ¡ob onIargo-
nonl, laIing parl in pro¡ocl loans or lasI groups, áclion Ioarning', and socond-
nonl oulsido lho organizalion,
fornaI lraining by noans of inlornaI or oxlornaI coursos ÷ aIlhough nanagononl
lraining progrannos aro noro IiIoIy lo bo doIivorod in a sorios of noduIos ovor a
nunbor of nonlhs ralhor lhan a singIo, Iong, rosidonliaI courso,
slruclurod soIf-dovoIopnonl by foIIoving soIf-nanagod Ioarning progrannos
agrood as a porsonaI dovoIopnonl pIan or Ioarning conlracl vilh lho nanagor or
a nanagononl dovoIopnonl advisor ÷ lhoso nay incIudo guidanco roading or lho
doIiboralo oxlonsion of InovIodgo or acquisilion of nov sIiIIs on lho ¡ob,
o-Ioarning as parl of a bIondod Ioarning progranno.
Tho fornaI approachos lo nanagononl dovoIopnonl aro basod on lho idonlificalion
of dovoIopnonl noods lhrough porfornanco nanagononl or a dovoIopnonl conlro.
Tho approach nay bo slruclurod around a Iisl of gonoric or coro conpoloncos vhich
havo boon dofinod as boing approprialo for nanagors in lho organizalion.
ínformaí approachc· |o managcmcn| dcvcíopmcn|
InfornaI approachos lo nanagononl dovoIopnonl naIo uso of lho Ioarning oxpori-
oncos lhal nanagors nool during lho courso of lhoir ovoryday vorI. Managors aro
Ioarning ovory lino lhoy aro confronlod vilh an unusuaI probIon, an unfaniIiar lasI
or a novo lo a difforonl ¡ob. Thoy lhon havo lo ovoIvo nov vays of doaIing vilh lho
silualion. Thoy viII Ioarn if lhoy anaIyso vhal lhoy did lo dolornino hov and vhy il
conlribulod lo ils succoss or faiIuro. This rolrospoclivo or rofIoclivo Ioarning viII bo
offoclivo if nanagors can appIy il succossfuIIy in lho fuluro.
This is polonliaIIy lho nosl povorfuI forn of Ioarning. Tho quoslion is: can any-
lhing bo dono lo hoIp nanagors naIo lho bosl uso of lhoir oxporionco` This lypo of
óxporionliaI' Ioarning conos naluraIIy lo sono nanagors. Thoy soon lo absorb,
unconsciousIy and by sono procoss of osnosis, lho Iossons fron lhoir oxporionco,
aIlhough in facl lhoy lhoy havo probabIy dovoIopod a capacily for aInosl inslanla-
noous anaIysis, vhich lhoy sloro in lhoir nonlaI dalabanI and vhich lhoy can rolriovo
vhonovor nocossary.
Ordinary norlaIs, hovovor, oilhor find il difficuIl lo do lhis sorl of anaIysis or do
nol rocognizo lho nood. This is vhoro soni-fornaI approachos can bo usod lo
oncourago and hoIp nanagors lo Ioarn noro offoclivoIy. Thoso approachos incIudo:
onphasizing soIf-assossnonl and lho idonlificalion of dovoIopnonl noods by
golling nanagors lo assoss lhoir ovn porfornanco againsl agrood ob¡oclivos and
anaIyso lho faclors lhal conlribulod lo offoclivo or Ioss offoclivo porfornanco ÷ lhis
can bo providod lhrough porfornanco nanagononl,
golling nanagors lo produco lhoir ovn porsonaI dovoIopnonl pIans or soIf-
nanagod Ioarning progrannos,
oncouraging nanagors lo discuss lhoir ovn probIons and opporlunilios vilh
lhoir bossos, coIIoaguos or nonlors in ordor lo oslabIish for lhonsoIvos vhal lhoy
nood lo Ioarn or bo abIo lo do.
An ín|cgra|cd approach |o managcmcn| dcvcíopmcn|
An inlogralod approach lo nanagononl dovoIopnonl viII naIo ¡udicious uso of bolh
lho fornaI and infornaI nolhods as doscribod abovo. Thoro aro fivo govorning prin-
cipIos:
1|c rccliiq cj mcncgcmcni ÷ lho approach lo nanagononl dovoIopnonl shouId
avoid naIing sinpIislic assunplions on vhal nanagors nood lo Inov or do,
basod on lho cIassicaI anaIysis of nanagononl as lho procossos of pIanning,
organizing, dirocling and conlroIIing. In roaIily nanagoriaI vorI is roIalivoIy
disorganizod and fragnonlod, and lhis is vhy nany praclising nanagors
ro¡ocl lho faciIo soIulions suggoslod by sono fornaI nanagononl lraining
progrannos. As Kanlor (1989) has said: ´ManagoriaI vorI is undorgoing such
onornous and rapid chango lhal nany nanagors aro roinvonling lhoir profossion
as lhoy go.'
Rclctcncc ÷ il is loo oasy lo assuno lhal aII nanagors nood lo Inov aboul
such noslruns as slralogic pIanning, ocononic vaIuo addod, baIanco shool
anaIysis, olc. Thoso can bo usofuI bul lhoy nay nol bo vhal nanagors roaIIy
nood. Managononl dovoIopnonl procossos nusl bo roIalod lo lho noods of parlic-
uIar nanagors in spocific ¡obs and lhoso procossos nay or nay nol incIudo
lochniquos such as lhoso Iislod abovo. Thoso noods shouId incIudo nol onIy vhal
nanagors shouId Inov nov bul aIso vhal lhoy shouId Inov and bo abIo lo do in
lho fuluro, if lhoy havo lho polonliaI. Thus, nanagononl dovoIopnonl nay
incIudo ´broadoning progrannos' ainod al giving nanagors an undorslanding of
lho vidor, slralogic issuos vhich viII bo roIovanl al highor IovoIs in lho organiza-
lion.
Sclj-!ctclcpmcni ÷ nanagors nood lo bo oncouragod lo dovoIop lhonsoIvos and
hoIpod lo do so. Iorfornanco nanagononl viII ain lo provido lhis guidanco.
|xpcricniicl lccrning ÷ if Ioarning can bo doscribod as a nodificalion of bohaviour
lhrough oxporionco lhon lho principaI nolhod by vhich nanagors can bo
oquippod is by providing lhon vilh lho righl varioly of oxporionco, in good lino
in lho courso of lhoir caroors, and by hoIping lhon lo Ioarn fron lhal oxporionco ÷
coaching and aclion Ioarning aro nolhods of achioving lhis.
lcrmcl ircining ÷ coursos can suppIononl bul can novor ropIaco oxporionco and
lhoy nusl bo carofuIIy linod and soIoclod or dosignod lo nool parlicuIar noods. A
´shoop dip' approach vhich oxposos aII nanagors lo lho sano lraining courso nay
bo dosirabIo in sono circunslancos, bul lho focus shouId gonoraIIy bo on idonli-
fying and nooling individuaI Ioarning noods.
Compc|cnc,-ba·cd managcmcn| dcvcíopmcn|
Conpoloncy-basod nanagononl dovoIopnonl usos conpoloncy franovorIs (soo
Chaplor 11) as a noans of idonlifying and oxprossing dovoIopnonl noods and
poinling lho vay lo soIf-nanagod Ioarning progrannos or lho provision of Ioarning
opporlunilios by lho organizalion.
Conpoloncy-basod nanagononl dovoIopnonl nay conconlralo on a Iinilod
nunbor of coro or gonoric conpoloncos vhich lho organizalion has docidod viII bo an
ossonliaI parl of lho oquipnonl of lhoir nanagors if lhoy aro going lo laIo lho
organizalion forvard in Iino vilh ils slralogic pIans. For oxanpIo:
sircicgic ccpc|iliiq lo undorsland lho changing businoss onvironnonl, opporluni-
lios for producl-narIol dovoIopnonl, conpolilivo chaIIongos and lho slronglhs
and voaInossos of lhoir ovn organizalion in ordor lo idonlify oplinun slralogic
rosponsos,
c|cngc mcncgcmcni ccpc|iliiq lo idonlify chango noods, pIan chango progrannos
and porsuado olhors lo parlicipalo viIIingIy in lho inpIononlalion of chango,
iccm mcncgcmcni ccpc|iliiq lo gol divorso groups of poopIo fron difforonl disci-
pIinos lo vorI voII logolhor.
rclciicns|ip mcncgcmcni lo nolvorI offoclivoIy vilh olhors lo sharo infornalion
and pooI rosourcos lo achiovo connon ob¡oclivos,
inicrnciicncl mcncgcmcni lo bo capabIo of nanaging across inlornalionaI fronliors,
vorIing voII vilh poopIo of olhor nalionaIilios.
Dcvcíopmcn| ccn|rc·
Tho ain of dovoIopnonl conlros is lo hoIp parlicipanls buiId up an avaronoss of lho
conpoloncos lhoir ¡ob roquiros and lo conslrucl lhoir ovn porsonaI dovoIopnonl
pIans lo inprovo lhoir porfornanco in lho prosonl ¡ob and lo onhanco lhoir caroors.
LiIo assossnonl conlros (soo Chaplor 27), dovoIopnonl conlros aro buiIl around
dofinilions of conpoloncy roquirononls. UnIiIo assossnonl conlros, hovovor, dovoI-
opnonl conlros IooI ahoad al lho conpoloncios noodod in lho fuluro. Tho olhor signif-
icanl difforonco bolvoon a dovoIopnonl conlro and an assossnonl conlro is lhal in lho
Iallor caso lho organizalion óvns' lho rosuIls for soIoclion or pronolion purposos,
vhiIo in lho fornor caso lho rosuIls aro ovnod by lho individuaI as lho basis for soIf-
nanagod Ioarning.
DovoIopnonl conlros aro nol an ovonl, nor a physicaI Iocalion. Tho aclivilios of lho
conlro offor parlicipanls lho opporlunily lo oxanino and undorsland lho conpoloncos
lhoy roquiro nov and in lho fuluro. Bocauso ´bohaviour prodicls bohaviour' lho acliv-
ilios of lho conlro nood lo offor opporlunilios for conpoloncos lo bo obsorvod in prac-
lico. SinuIalions of various Iinds aro lhoroforo inporlanl foaluros ÷ lhoso aro a
conbinalion of caso sludios and roIo pIaying dosignod lo oblain lho naxinun
anounl of roaIisn. Iarlicipanls aro pul inlo lho posilion of praclising bohaviour in
condilions vory siniIar lo lhoso lhoy viII nool in lho courso of lhoir ovoryday vorI.
An inporlanl parl of lho conlro's aclivilios viII bo foodbacI roviovs, counsoIIing
and coaching sossions conduclod by lho dirocling slaff, vhich viII consisl of fuII-lino
lulors and Iino nanagors vho havo boon givon spociaI lraining in lho lochniquos
roquirod.
Tho slagos of a lypicaI dovoIopnonl conlro as doscribod by HaII and Norris (1992)
aro:
Pricr ic i|c ccnirc doIogalos assoss lhonsoIvos againsl dofinod conpoloncios.
Dcq 1
DoIogalos losl lhoir pro-conlro vorI vilh olhor doIogalos
IndividuaI lasI
Slruclurod soIf-insighl
Businoss sinuIalion
Dcq 2
Toan roIos quoslionnairo
IorsonaI profiIos quoslionnairo
Furlhor counsoIIing sossions and soIf-assossnonl procoduros
Munugomont dovoíopmont 60l
Dcq 3
NunoricaI roasoning losls
FoodbacI on quoslionnairo
CounsoIIing on porsonaI dovoIopnonl pIans
Roviov of Ioy poinls and findings
LMC1lCNAL lN1LLLlCLNCL AND LLADLkSHll
ÇLALl1lLS
Managononl dovoIopnonl shouId bo concornod vilh onhancing Ioadorship as voII
as oxlonding and inproving noro gonoraI nanagononl sIiIIs. According lo GoIonan
(1995), lhis procoss shouId laIo accounl of lho concopl of onolionaI inloIIigonco as
discussod in Chaplor 10. EnolionaI inloIIigonco has boon dofinod by GoIonan (1995)
as boing aboul:
Inoving vhal you aro fooIing and boing abIo lo handIo lhoso fooIings vilhoul
having lhon svanp you,
boing abIo lo nolivalo yoursoIf lo gol ¡obs dono, bo croalivo and porforn al your
poaI,
sonsing vhal olhors aro fooIing and handIing roIalionships offoclivoIy.
Tho possossion of high IovoIs of onolionaI inloIIigonco is a nocossary allribulo for
succoss as a Ioador.
GoIonan has dofinod four conpononls of onolionaI inloIIigonco:
1. Sclj-mcncgcmcni ÷ lho abiIily lo conlroI or rodirocl disruplivo inpuIsos and noods
and roguIalo your ovn bohaviour coupIod vilh a proponsily lo pursuo goaIs vilh
onorgy and porsislonco. Tho six conpoloncios associalod vilh lhis conpononl aro
soIf-conlroI, lruslvorlhinoss and inlogrily, inilialivo and adaplabiIily, conforl
vilh anbiguily, oponnoss lo chango and a slrong dosiro lo achiovo.
2. Sclj-cucrcncss ÷ lho abiIily lo rocognizo and undorsland your noods, onolions
and drivos as voII as lhoir offocl on olhors. This is IinIod lo lhroo conpoloncios:
soIf-confidonco, roaIislic soIf-assossnonl and onolionaI soIf-avaronoss.
3. Sccicl cucrcncss ÷ lho abiIily lo undorsland lho onolionaI naIo-up of olhor
poopIo, and sIiII in lroaling poopIo according lo lhoir onolionaI roaclions. This is
IinIod lo six conpoloncios: onpalhy, oxporliso in buiIding and rolaining laIonl,
organizalionaI avaronoss, cross-cuIluraI sonsilivily, vaIuing divorsily, and sorvico
lo cIionls and cuslonors.
4. Sccicl s|ills ÷ proficioncy in nanaging roIalionships and buiIding nolvorIs lo gol
lho dosirod rosuIl fron olhors and roach porsonaI goaIs, and lho abiIily lo find
connon ground and buiId rapporl. Tho fivo conpoloncios associalod vilh lhis
conpononl aro Ioadorship, offoclivonoss in Ioading chango, confIicl nanagononl,
infIuonco/connunicalion, and oxporliso in buiIding and Ioading loans.
Tho slops roquirod lo dovoIop onolionaI inloIIigonco suggoslod by GoIonan (1999)
aro:
assoss lho roquirononls of ¡obs in lorns of onolionaI sIiIIs,
assoss individuaIs lo idonlify lhoir IovoI of onolionaI inloIIigonco ÷ 360-dogroo
foodbacI can bo a povorfuI sourco of dala,
gaugo roadinoss ÷ onsuro lhal poopIo aro proparod lo inprovo lhoir IovoI of
onolionaI inloIIigonco,
nolivalo poopIo lo boIiovo lhal lho Ioarning oxporionco viII bonofil lhon,
naIo chango soIf-diroclod ÷ oncourago poopIo lo proparo a Ioarning pIan vhich
fils lhoir inlorosls, rosourcos and goaIs,
focus on cIoar nanagoabIo goaIs ÷ lho focus nusl bo on innodialo, nanagoabIo
slops, boaring in nind lhal cuIlivaling a nov sIiII is graduaI, vilh slops and
slarls, lho oId vays viII roassorl lhonsoIvos fron lino lo lino,
provonl roIapso ÷ shov poopIo hov lhoy can Ioarn Iossons fron lho inovilabIo
roIapsos,
givo porfornanco foodbacI,
oncourago praclico, rononboring lhal onolionaI conpolonco cannol bo inprovod
ovornighl,
provido nodoIs of dosirod bohaviours,
oncourago and roinforco ÷ croalo a cIinalo lhal rovards soIf-inprovononl,
ovaIualo ÷ oslabIish sound oulcono noasuros and lhon assoss porfornanco
againsl lhon.
kLSlCNSlßlLl1Y lCk MANACLMLN1 DLVLLClMLN1
Managononl dovoIopnonl is nol a soparalo aclivily lo bo handod ovor lo a spociaIisl
and forgollon or ignorod. Tho succoss of a nanagononl dovoIopnonl progranno
doponds upon lho dogroo lo vhich aII IovoIs of nanagononl aro connillod lo il. Tho
dovoIopnonl of subordinalos nusl bo rocognizod as a naluraI and ossonliaI parl of
any nanagor's ¡ob. Bul lho Ioad nusl cono fron lho lop.
Tho lradilionaI viov is lhal lho organizalion nood nol concorn ilsoIf vilh nanago-
nonl dovoIopnonl. Tho naluraI procoss of soIoclion and lho prossuro of conpolilion
viII onsuro lho survivaI of lho fillosl. Managors, in facl, aro born nol nado. Croan
risos lo lho lop (bul lhon so doos scun).
Tho roaclion lo lhis vas sunnod up in HunbIo's (1963) phraso, ´progrannilis and
crovn princo'. Managononl dovoIopnonl vas soon in ils infancy as a nochanicaI
procoss using nanagononl invonlorios, nuIlicoIourod ropIacononl charls, ĆooI's
lours' for novIy rocruilod gradualos, dolaiIod ¡ob rolalion progrannos, oIaboralo
poinls schonos lo appraiso porsonaI characlorislics, and ondIoss sorios of fornaI
coursos.
Tho lruo roIo of lho organizalion in nanagononl dovoIopnonl Iios sonovhoro
bolvoon lhoso lvo oxlronos. On lho ono hand, il is nol onough, in condilions of rapid
grovlh (vhon lhoy oxisl) and chango, lo Ioavo ovorylhing lo chanco ÷ lo lriaI and
orror. On lho olhor hand, oIaboralo nanagononl dovoIopnonl progrannos cannol
succossfuIIy bo inposod on lho organizalion. As Iolor DrucIor visoIy said nany
yoars ago (1955): ´DovoIopnonl is aIvays soIf-dovoIopnonl. Nolhing couId bo noro
absurd lhan for lho onlorpriso lo assuno rosponsibiIily for lho dovoIopnonl of a nan.
|sic]. Tho rosponsibiIily rosls vilh lho individuaI, his abiIilios, his offorls'.
Bul ho vonl on lo say:
Lvory munugor ìn u busìnoss hus tho opportunìty to oncourugo ìndìvìduuí soíl-
dovoíopmont or to stìlío ìt, to dìroct ìt to or to mìsdìroct ìt. Ho |sìc| shouíd bo spocìlìcuííy
ussìgnod tho rosponsìbìíìty lor hoípìng uíí mon vorkìng vìth hìm to locus, dìroct und
uppíy thoìr soíl-dovoíopmont ollorts productìvoíy. And ovory compuny cun provìdo
systomutìc dovoíopmont chuííongos to ìts munugors.
Exoculivo abiIily is ovonluaIIy sonolhing lhal individuaIs nusl dovoIop for lhon-
soIvos vhiIo carrying oul lhoir nornaI dulios. Bul lhoy viII do lhis nuch bollor if lhoy
aro givon oncouragononl, guidanco and opporlunilios by lhoir conpany and
nanagors. In McGrogor's (1960) phraso: nanagors aro grovn ÷ lhoy aro noilhor born
nor nado. Tho roIo of lho conpany is lo provido condilions favourabIo lo faslor
grovlh. And lhoso condilions aro vory nuch parl of lho onvironnonl and organiza-
lionaI cIinalo of lho conpany and lho nanagononl slyIo of lho chiof oxoculivo. Tho
Iallor has lho uIlinalo rosponsibiIily for nanagononl dovoIopnonl. As McGrogor
vrolo:
1ho ¡ob onvìronmont ol tho ìndìvìduuí ìs tho most ìmportunt vurìubío ulloctìng hìs |sìc|
dovoíopmont. Lníoss thut onvìronmont ìs conducìvo to hìs grovth, nono ol tho othor
thìngs vo do to hìm or lor hìm vìíí bo olloctìvo. 1hìs ìs vhy tho úgrìcuíturuí' upprouch
to munugomont dovoíopmont ìs prolorubío to tho ´munulucturìng' upprouch. 1ho íuttor
íouds, umong othor thìngs, to tho unrouíìstìc oxpoctutìon thut vo cun crouto und dovoíop
munugors ìn tho cíussroom.
Il is ronarIabIo lhal loday sono poopIo aro sliII rociling lhoso voII-oslabIishod princi-
pIos as if lhoy had ¡usl discovorod lhon.
|cr·onaí dcvcíopmcn| pían·
Managors nusl lhoroforo laIo lho nain rosponsibiIily for lhoir ovn dovoIopnonl.
Tho organizalion can hoIp and lho nanagor's boss nusl accopl sono rosponsibiIily
for oncouraging soIf-dovoIopnonl and providing guidanco as nocossary. Bul individ-
uaIs shouId bo oxpoclod lo drav up lhoir ovn porsonaI dovoIopnonl pIans (soo aIso
Chaplor 39), lho conlonl of vhich vouId bo basod on ansvors lo lho foIIoving
quoslions:
Whal InovIodgo and/or sIiIIs do you inlond lo gain` and/or
Whal IovoIs of conpolonco aro you pIanning lo achiovo`
Whal aro your Ioarning ob¡oclivos` Thoso shouId bo sol oul in lho forn of dofini-
lions of lho aroas in vhich your porfornanco viII inprovo and/or vhal nov
lhings you viII bo abIo lo do aflor lho Ioarning progranno.
Hov aro you doing lo achiovo your ob¡oclivos` Whal lasIs, pro¡ocls, oxorcisos or
roading viII you do` Whal oducalionaI or lraining coursos vouId you IiIo lo
allond` Tho dovoIopnonl pIan shouId bo broIon dovn inlo dofinod phasos and
spocific Ioarning ovonls shouId bo ilonizod. Tho duralion of oach phaso and lho
lolaI Ionglh of lho progranno shouId bo sol oul logolhor vilh lho cosls, if any.
Whal rosourcos viII you nood in lho forn of conpulor-basod lraining naloriaI,
booIs, vidoos, individuaI coaching, nonloring olc`
Whal ovidonco viII you shov lo dononslralo your Ioarning` Whal criloria viII bo
usod lo onsuro lhal lhis ovidonco is salisfaclory`
Roíc of |hc human rc·ourcc dcvcíopmcn| ·pccíaíí·|
Managononl dovoIopnonl is nol a soparalo aclivily lo bo handod ovor lo a spociaIisl
and forgollon or ignorod. Tho succoss of nanagononl dovoIopnonl doponds upon
lho dogroo lo vhich il is rocognizod as an inporlanl aspocl of lho businoss slralogy ÷
a Ioy organizalionaI procoss ainod al doIivoring rosuIls. AII IovoIs of nanagononl
nusl lhoroforo bo connillod lo il. Tho dovoIopnonl of lhoir slaff nusl bo rocognizod
as a naluraI and ossonliaI parl of any nanagor's ¡ob and ono of lho Ioy criloria upon
vhich lhoir porfornanco as nanagors viII bo ¡udgod. Bul lho Ioad nusl cono fron
lho lop.
Hovovor, hunan rosourco dovoIopnonl spociaIisls sliII havo a nunbor of
inporlanl roIos as faciIilalors of lho Ioarning and dovoIopnonl procoss. Thoy:
inlorprol lho noods of lho businoss and adviso on hov nanagononl dovoIopnonl
slralogios can pIay lhoir parl in nooling lhoso noods,
acl as advocalos of lho significanco of nanagononl dovoIopnonl as a businoss-Iod
aclivily,
naIo proposaIs on fornaI and infornaI approachos lo nanagononl dovoIop-
nonl,
dovoIop in con¡unclion vilh Iino nanagononl conpoloncy franovorIs vhich
can bo usod as lho basis for nanagononl dovoIopnonl,
provido guidanco lo nanagors on hov lo carry oul lhoir dovoIopnonlaI aclivilios,
provido hoIp and oncouragononl lo nanagors in proparing and pursuing lhoir
porsonaI dovoIopnonl pIans ÷ incIuding advico on acquiring an NVQ, profos-
sionaI or acadonic quaIificalions,
provido lho Ioarning naloriaI, incIuding o-Ioarning, nanagors nood lo achiovo
lhoir Ioarning ob¡oclivos,
acl as lulors or nonlors lo individuaI nanagors or groups of nanagors as
roquirod,
adviso on lho uso and choico of oxlornaI nanagononl oducalion progrannos,
faciIilalo aclion Ioarning pro¡ocls,
pIan and conducl dovoIopnonl conlro,
pIan and conducl olhor fornaI Ioarning ovonls vilh lho hoIp of oxlornaI providors
as roquirod.
lormuíutìng und ìmpíomontìng
íournìng und dovoíopmont
strutogìos
This chaplor doaIs vilh lho fornuIalion and inpIononlalion of Ioarning and dovoI-
opnonl slralogios, lho purposo of vhich is lo provido a road nap for lho fuluro and a
basis upon vhich Ioarning and dovoIopnonl aclivilios can bo pIannod, Tho chaplor
doaIs vilh naIing lho businoss caso, croaling a Ioarning cIinalo, idonlifying Ioarning
noods, pIanning and inpIononling Ioarning and dovoIopnonl aclivilios, and ovaIu-
aling lho Ioarning lhal has laIon pIaco.
MAKlNC 1HL ßLSlNLSS CASL
Tho businoss caso for Ioarning and dovoIopnonl shouId dononslralo hov Ioarning,
lraining and dovoIopnonl progrannos viII nool businoss noods. Koarns and MiIIor
(1997) go as far as lo cIain lhal: Íf a businoss ob¡oclivo cannol bo cilod as a basis for
dosigning lraining and dovoIopnonl, lhon no lraining and dovoIopnonl shouId bo
offorod.'
Tho aroas of lho businoss slralogy lhal dopond on laIonlod poopIo shouId bo
anaIysod. Tho organizalion's slralogic pIans and lhoir inpacl on InovIodgo and sIiII

roquirononls shouId aIso bo nolod. For oxanpIo, lhoso nighl incIudo lho dovoIop-
nonl of a high porfornanco cuIluro, produclivily inprovononls, lho innovalion and
Iaunch of nov producls or sorvicos, achioving bollor IovoIs of sorvico doIivory lo
cuslonors, or lho oxlondod uso of IT or olhor forns of lochnoIogy. Any proposod
Ioarning and lraining inlorvonlions shouId spocify hov lhoy vouId conlribulo lo lho
achiovononl of lhoso slralogic goaIs.
A cosl/bonofil anaIysis is roquirod lhal conparos lho bonofils, oxprossod in quanli-
fiod lorns as far as possibIo, vhich viII rosuIl fron lho Ioarning aclivily. Tho businoss
caso has lo convinco nanagononl lhal lhoro viII bo an accoplabIo rolurn on lho
invoslnonl (ROI) in Ioarning and lraining progrannos. Il can bo difficuIl lo produco
roaIislic figuros, aIlhough lho allonpl is vorlh naIing vilh lho hoIp of financo
spociaIisls. Tho caso for invosling in Ioarning and dovoIopnonl can rofor lo any of lho
foIIoving polonliaI bonofils:
inprovo individuaI, loan and corporalo porfornanco in lorns of oulpul, quaIily,
spood and ovoraII produclivily,
allracl high-quaIily onpIoyoos by offoring lhon Ioarning and dovoIopnonl
opporlunilios, incroasing lhoir IovoIs of conpolonco and onhancing lhoir sIiIIs,
lhus onabIing lhon lo oblain noro ¡ob salisfaclion, lo gain highor rovards and lo
progross vilhin lho organizalion,
provido addilionaI non-financiaI rovards (grovlh and caroor opporlunilios) as
parl of a lolaI rovard poIicy (soo Chaplor 42),
inprovo oporalionaI fIoxibiIily by oxlonding lho rango of sIiIIs possossod by
onpIoyoos (nuIlisIiIIing),
incroaso lho connilnonl of onpIoyoos by oncouraging lhon lo idonlify vilh lho
nission and ob¡oclivos of lho organizalion,
hoIp lo nanago chango by incroasing undorslanding of lho roasons for chango
and providing poopIo vilh lho InovIodgo and sIiIIs lhoy nood lo ad¡usl lo nov
silualions,
provido Iino nanagors vilh lho sIiIIs roquirod lo nanago and dovoIop lhoir
poopIo,
hoIp lo dovoIop a posilivo cuIluro in lho organizalion: ono, for oxanpIo, vhich is
orionlod lovards porfornanco inprovononl,
provido highor IovoIs of sorvico lo cuslonors,
nininizo Ioarning cosls (roduco lho Ionglh of Ioarning curvos).
DLVLLCllNC A LLAkNlNC CLL1LkL
A Ioarning cuIluro is ono lhal pronolos Ioarning bocauso il is rocognizod by lop
nanagononl, Iino nanagors and onpIoyoos gonoraIIy as an ossonliaI organizalionaI
procoss lo vhich lhoy aro connillod and in vhich lhoy ongago conlinuousIy.
RoynoIds (2004) doscribos a Ioarning cuIluro as a ´grovlh nodiun' lhal viII
óncourago onpIoyoos lo connil lo a rango of posilivo discrolionary bohaviours,
incIuding Ioarning' and vhich has lho foIIoving characlorislics: onpovornonl nol
suporvision, soIf-nanagod Ioarning nol inslruclion, Iong-lorn capacily buiIding nol
shorl-lorn fixos. Il viII oncourago discrolionary Ioarning, vhich SIonan (2003a)
boIiovos laIos pIaco vhon individuaIs aclivoIy sooI lo acquiro lho InovIodgo and
sIiIIs lhal pronolo lho organizalion's ob¡oclivos.
Il is suggoslod by RoynoIds (2004) lhal lo croalo a Ioarning cuIluro il is nocossary lo
dovoIop organizalionaI praclicos lhal raiso connilnonl anongsl onpIoyoos and
´givo onpIoyoos a sonso of purposo in lho vorIpIaco, granl onpIoyoos opporlunilios
lo acl upon lhoir connilnonl, and offor praclicaI supporl lo Ioarning'. Ho proposos
lho foIIoving slops:
1. DovoIop and sharo lho vision ÷ boIiof in a dosirod and onorging fuluro.
2. Enpovor onpIoyoos ÷ provido ´supporlod aulonony', froodon for onpIoyoos lo
nanago lhoir vorI vilhin corlain boundarios (poIicios and oxpoclod bohaviours)
bul vilh supporl avaiIabIo as roquirod.
3. Adopl a faciIilalivo slyIo of nanagononl in vhich rosponsibiIily for docision-
naIing is codod as far as possibIo lo onpIoyoos.
4. Irovido onpIoyoos vilh a supporlivo Ioarning onvironnonl vhoro Ioarning
capabiIilios can bo discovorod and appIiod, og poor nolvorIs, supporlivo poIicios
and syslons, proloclod lino for Ioarning.
5. Uso coaching lochniquos lo drav oul lho laIonls of olhors by oncouraging
onpIoyoos lo idonlify oplions and sooI lhoir ovn soIulions lo probIons.
6. Guido onpIoyoos lhrough lhoir vorI chaIIongos and provido lhon vilh lino,
rosourcos and, cruciaIIy, foodbacI.
7. Rocognizo lho inporlanco of nanagors acling as roIo nodoIs: ´Tho nov vay of
lhinIing and bohaving nay bo so difforonl lhal you nusl soo vhal il IooIs IiIo
boforo you can inagino yoursoIf doing il. You nusl soo lho nov bohaviour and
alliludos in olhors vilh vhon you can idonlify' (Schoin, 1990).
8. Encourago nolvorIs ÷ connunilios of praclico.
9. AIign syslons lo vision ÷ gol rid of buroaucralic syslons lhal produco probIons
ralhor lhan faciIilalo vorI.
lormuíutìng und ìmpíomontìng íournìng und dovoíopmont strutogìos 609
lDLN1llYlNC LLAkNlNC NLLDS
AII Ioarning aclivilios nood lo bo basod on an undorslanding of vhal noods lo bo dono
and vhy. Tho purposo of lho aclivilios nusl bo dofinod and lhis is onIy possibIo if lho
Ioarning noods of lho organizalion and lho groups and individuaIs vilhin il havo
boon idonlifiod and anaIysod.
Thc ba·í· of ícarníng nccd· anaí,·í·
Loarning noods anaIysis is sonolinos assunod lo bo concornod onIy vilh dofining
lho gap bolvoon vhal is happoning and vhal shouId happon, io lho difforonco
bolvoon vhal poopIo Inov and can do and vhal lhoy  Inov and bo abIo lo do.
This gap is vhal has lo bo fiIIod by lraining.
Bul lhis ´doficioncy' nodoI of lraining ÷ onIy pulling lhings righl lhal havo gono
vrong ÷ is Iinilod. Loarning is nuch noro posilivo lhan lhal. Il is noro concornod
vilh idonlifying and salisfying dovoIopnonl noods ÷ filling poopIo lo laIo on oxlra
rosponsibiIilios, incroasing aII-round conpolonco, oquipping poopIo lo doaI vilh nov
vorI donands, nuIlisIiIIing, and proparing poopIo lo laIo on highor IovoIs of
rosponsibiIily in lho fuluro.
Arca· for ícarníng nccd· anaí,·í·
Loarning noods shouId bo anaIysod, firsl, for lho organizalion as a vhoIo ÷ corporalo
noods, socond, for doparlnonls, loans, funclions or occupalions vilhin lho organiza-
lion ÷ group noods, and lhird, for individuaI onpIoyoos ÷ individuaI noods. Thoso
lhroo aroas aro inlorconnoclod, as shovn in Figuro 41.1. Tho anaIysis of corporalo
noods viII Ioad lo lho idonlificalion of Ioarning noods in difforonl doparlnonls or
occupalions, vhiIo lhoso in lurn viII indicalo vhal individuaI onpIoyoos nood lo
Ioarn. Tho procoss oporalos in rovorso. As lho noods of individuaI onpIoyoos aro
anaIysod soparaloIy, connon noods onorgo lhal can bo doaIl vilh on a group basis.
Tho sun of group and individuaI noods viII hoIp lo dofino corporalo noods, aIlhough
lhoro nay bo sono suporordinalo Ioarning roquirononls lhal can bo roIalod onIy lo
lho conpany as a vhoIo lo nool ils businoss dovoIopnonl noods ÷ lho vhoIo Ioarning
pIan nay bo groalor lhan lho sun of ils parls.
Thoso aroas of anaIysis aro discussod boIov.
Anaí,·í· of bu·ínc·· and human rc·ourcc pían·
Businoss and HR pIans shouId indicalo in gonoraI lorns lho lypos of sIiIIs and
conpoloncios lhal nay bo roquirod in lho fuluro and lho nunbors of poopIo vilh
6l0 Humun rosourco dovoíopmont
lhoso sIiIIs and conpoloncios vho viII bo noodod. Thoso broad indicalors havo lo bo
lransIalod inlo noro spocific pIans lhal covor, for oxanpIo, lho oulpuls fron lraining
progrannos of poopIo vilh parlicuIar sIiIIs or a conbinalion of sIiIIs (nuIlisIiIIing).
Survc,·
SpociaI survoys nay bo carriod oul lhal anaIyso lho infornalion fron a nunbor of
sourcos, og porfornanco roviovs, lo idonlify corporalo and group Ioarning and
lraining noods. This infornalion can bo usofuIIy suppIononlod by inlorvioving
poopIo lo oslabIish lhoir viovs aboul vhal lhoy nood lo Ioarn. Bul lhoy oflon find il
difficuIl lo arlicuIalo Ioarning noods and il is bosl lo Ioad vilh a discussion of lho
vorI lhoy do and idonlify any aroas vhoro lhoy boIiovo lhal lhoir porfornanco and
polonliaI couId bo inprovod by a Ioarning or lraining progranno.
An anaIysis shouId aIso bo nado of any aroas vhoro fuluro changos in vorI
procossos, nolhods or ¡ob rosponsibiIilios aro pIannod, and of any connon gaps in
sIiIIs or InovIodgo or voaInossos in porfornanco lhal indicalo a Ioarning nood.
Furlhor infornalion shouId bo dorivod fron lho ovaIualion of lraining, as doscribod
al lho ond of lhis chaplor.
|crformancc and dcvcíopmcn| rcvícv·
Iorfornanco nanagononl procossos, as doscribod in Iarl VII of lhis booI, shouId bo
a prino sourco of infornalion aboul individuaI Ioarning and dovoIopnonl noods. Tho
porfornanco nanagononl approach lo Ioarning conconlralos on lho proparalion of
lormuíutìng und ìmpíomontìng íournìng und dovoíopmont strutogìos 6ll
Corporate Group Ìndividual
Analysis of
business
plans
Analysis of
human
resource
plans
Surveys
Performance
and
development
reviews
Role
analysis
Learning
specification
FIgurc 41.1 Loarning noods anaIysis ÷ aroas and nolhods
porfornanco inprovononl progrannos, porsonaI dovoIopnonl pIans and Ioarning
conlracls lhal Ioad lo ¡oinlIy dolorninod aclion pIans. Tho onphasis is on idonlifying
Ioarning noods for conlinuous dovoIopnonl or lo produco spocific inprovononls in
porfornanco.
Roíc anaí,·í·
RoIo anaIysis is lho basis for proparing roIo profiIos lhal provido a franovorI for
anaIysing and idonlifying Ioarning noods. RoIo profiIos sol oul lho Ioy rosuIl aroas of
lho roIo bul, inporlanlIy, aIso dofino lho conpoloncios roquirod lo porforn lho roIo. A
good porfornanco nanagononl procoss viII onsuro lhal roIo profiIos aro updalod
roguIarIy and lho porfornanco roviov viII bo buiIl round an anaIysis of lho rosuIls
achiovod by roforonco lo lho Ioy rosuIl aroas and agrood ob¡oclivos. Tho conpoloncy
franovorI for lho roIo is usod lo assoss lho IovoI of conpoloncy dispIayod in
achioving, or as lho caso nay bo, nol achioving lhoso rosuIls. An assossnonl can lhon
bo nado of any Ioarning roquirod lo dovoIop IovoIs of conpoloncy. IdoaIIy, lhis shouId
bo a soIf-assossnonl by individuaIs, vho shouId bo givon ovory oncouragononl lo
idonlify Ioarning noods lhonsoIvos. Bul lhoso can bo discussod vilh lho individuaIs'
nanagor and agroononl roachod on hov lho Ioarning noods shouId bo nol, by lho
individuaIs lhrough soIf-nanagod Ioarning, and/or vilh lho hoIp and supporl of
lhoir nanagors. Tho oulpul of roIo anaIysis couId bo a Ioarning spocificalion, as iIIus-
lralod in Figuro 41.2.
lLANNlNC AND lMlLLMLN1lNC LLAkNlNC AND
DLVLLClMLN1 lkCCkAMMLS
Evory Ioarning and dovoIopnonl progranno noods lo bo dosignod individuaIIy,
and lho dosign viII conlinuaIIy ovoIvo as nov Ioarning noods onorgo, or vhon food-
bacI indicalos lhal changos aro roquirod. Il is ossonliaI lo considor carofuIIy lho
ob¡oclivos of lho progranno and lo oxpross lhoso in lho forn of vhal bohaviour
is oxpoclod fron lhoso invoIvod in lho vorIpIaco (lorninaI bohaviour). Whon
pIanning a Ioarning ovonl, lho procoss usod shouId nalch lho dosirod ob¡oclivos for
lho ovonl.
Thc ba·í· of ícarníng and dcvcíopmcn| programmc·
Tho pIanning and inpIononlalion of Ioarning and dovoIopnonl progrannos is
basod on an undorslanding of Ioarning noods. A lraining survoy conduclod in 2005
(CIID, 2005o) producod lho dala sol oul boIov in rosponso lo lho quoslion, ´Which
sIiIIs doos your organizalion nood lo dovoIop in ordor lo fuIfiI roquirononls in lhroo
yoars' lino`' Tho rospondonls Iislod in ordor:
1. Managononl and Ioadorship.
2. Connunicalion.
3. Businoss sIiIIs.
4. Cuslonor sorvico.
5. Advancod lochnicaI sIiIIs.
6. Broador sIiII sols.
7. Coaching and nonloring.
8. Innovalion.
9. IT sIiIIs.
10. AbiIily lo adapl oasiIy lo chango.
lormuíutìng und ìmpíomontìng íournìng und dovoíopmont strutogìos 6l3
LEARNING SPECIFICATION
RoIe titIe: Product Manager Department: Marketing
What the role holder must understand
Learning outcomes Learning methods
The product market Coaching: Marketing Manager and Advertising
Manager
The product specification Coaching: Operations Manager
Market research availability Coaching: Market Research Manager
Ìnterpretation of marketing data Coaching: Market Research Manager
Customer service requirements Customer Service Manager
Techniques of product management Ìnstitute of Marketing courses
What the role holder must be able to do
Learning outcomes Learning methods
Prepare product budget Coaching: Budget Accountant
Prepare marketing plans Coaching: Mentor
Conduct market reviews Coaching: Market Research Department
Prepare marketing campaigns Read: Product Manager's Manual
Specify requirements for advertisers and Read: Product Manager's Manual
promotional material
Liaise with advertising agents and creative Attachment to agency
suppliers
Analyse results of advertising campaigns Coaching: Mentor, read analyses
Prepare marketing reports Read: previous reports, observe:
marketing review meetings
FIgurc 41.2 AIoarning spocificalion
Accounl noods lo bo laIon of lho Iossons lhal can bo Ioarnl fron Ioarning lhoory, ospo-
ciaIIy lhoso concornod vilh cognilivo, oxporionliaI and sociaI Ioarning. Thoso high-
Iighl lho inporlanco of providing poopIo vilh lho opporlunily lo Ioarn for
lhonsoIvos, and onphasizos lho inporlanco of Ioarning fron oxporionco and Ioarning
fron olhor poopIo. Tho concopls of soIf-diroclod Ioarning and porsonaI dovoIopnonl
pIanning aro parlicuIarIy inporlanl, bul oncouraging lhoso procossos noods lo bo
roinforcod by lho provision of guidanco and advico lo Ioarnors, nainIy fron lhoir Iino
nanagors bul aIso fron Ioarning spociaIisls and lhrough lho provision by lho organi-
zalion of Ioarning rosourco conlros and o-Ioarning progrannos.
Rc·pon·íbííí|, for |hc ímpícmcn|a|íon of ícarníng
WhiIo individuaIs shouId bo oxpoclod lo laIo a considorabIo dogroo of rosponsibiIily
for nanaging lhoir ovn Ioarning, lhoy nood lho hoIp and supporl of lhoir Iino
nanagors and lho organizalion.
Lino nanagors havo a Ioy roIo in pIanning and faciIilaling Ioarning by conducling
porfornanco and dovoIopnonl roviovs, agrooing Ioarning conlracls and porsonaI
dovoIopnonl pIans vilh lhoir slaff, and hoIping slaff lo inpIononl lhoso pIans
lhrough lho provision of Ioarning opporlunilios and coaching. Bul lhoy havo lo bo
oncouragod lo do lhis. Thoy shouId undorsland lhal lho pronolion of Ioarning is
rogardod as an inporlanl aspocl of lhoir rosponsibiIilios and lhal lhoir porfornanco in
carrying il oul viII bo assossod. Thoy aIso nood guidanco on hov lhoy shouId carry
oul lhoir dovoIopnonlaI roIo.
RosponsibiIily for Ioarning and dovoIopnonl is boing pIacod incroasingIy on
nanagors and onpIoyoos ralhor lhan lraining profossionaIs. Tho Iallor aro boconing
Ioarning faciIilalors ralhor lhan lraining providors or inslruclors. Tho dirocl roIo of
lraining is boconing Ioss inporlanl. As Slovarl and TansIoy (2002) poinl oul, lraining
spociaIisls aro focusing on Ioarning procossos, ralhor lhan lho conlonl of lraining
coursos. Carlor   (2003) arguo lhal ´Tho shifling organizalionaI forns of lraining,
coupIod vilh nuIlipIo doIivory nolhods, aro nol Ioading lo a singIo nov roIo for lho
lrainor, bul ralhor an array of difforonl roIo donands.' Thoso roIos incIudo faciIilalor
and chango agonl.
As faciIilalors, Ioarning and dovoIopnonl spociaIisls anaIyso Ioarning noods and
naIo proposaIs on hov lhoso can bosl bo salisfiod. Thoy provido faciIilios such as
Ioarning rosourco conlros and o-Ioarning progrannos, and pIan and inpIononl
lraining inlorvonlions, oflon oulsourcing lraining lo oxlornaI providors. InporlanlIy,
lhoy provido guidanco lo Iino nanagors and hoIp lhon lo dovoIop lhoir sIiIIs in
assossing dovoIopnonl noods, porsonaI dovoIopnonl pIanning and coaching.
AddilionaIIy, lhoy aro lhoro lo givo advico and hoIp lo individuaIs on lhoir Ioarning
pIans.
Lcarníng and dcvcíopmcn| ac|íví|íc·
A baIancod Ioarning approach is roquirod, naIing uso of lho various forns of
Ioarning and dovoIopnonl roforrod lo in Chaplor 38. Tho ain shouId bo lo produco a
cohoronl slralogy lhal conlains lho pIans for croaling and nainlaining a Ioarning
cIinalo and dovoIoping and inpIononling conpIononlary and nuluaIIy supporlivo
Ioarning aclivilios such as coaching and nonloring. DolaiIs shouId bo providod for
oach aclivily on ils ob¡oclivos, lho nolhods lo bo usod, ils lining as parl of a
progranno, hov il is IinIod lo olhor Ioarning aclivilios, vho is rosponsibIo (onpha-
sizing lho roIo of individuaIs and lhoir nanagors), and lho businoss caso for using il in
lorns of a cosl/bonofil assossnonl.
Tho oxlonl lo vhich organizalions uso difforonl approachos as rovoaIod by a survoy
conduclod in 2004 (IRS, 2004g) is shovn in TabIo 41.1.
LVALLA1lCN Cl LLAkNlNC
Il is inporlanl lo ovaIualo Ioarning in ordor lo assoss ils offoclivonoss in producing lho
oulconos spocifiod vhon lho aclivily vas pIannod and lo indicalo vhoro inprovo-
nonls or changos aro roquirod lo naIo lho lraining ovon noro offoclivo. As TanIin
ci cl (2002) suggosl:
Activity No of organizations
using ´rcguIarIy' or
´somctimcs'
Cn-tho-¡ob ìnductìon 72
Cn-tho-¡ob skìíís updutìng 7l
Lxtornuí conloroncos und vorkshops 70
lormuí cíussroom truìnìng 67
Couchìng 64
Montorìng 55
Cll-tho-¡ob ìnductìon 49
Cll-tho-¡ob skìíís updutìng 40
o-íournìng 35
Non-vocutìonuí truìnìng 22
Actìon íournìng sots l6
N = 79
TabIc 41.1 Uso of Ioarning aclivilios (Scurcc. IRS, 2004g)
Lournìng cun bo modoííod us u chuìn ol ìmpuct lrom tho píunnìng ol íournìng to moot
orgunìzutìonuí or ìndìvìduuí íournìng noods to tho íournìng thut tukos píuco ìn u íournìng
ovont, lrom íournìng to chungod bohuvìour, und lrom chungod bohuvìour to ìmpuct on
othors und tho orgunìzutìon us u vhoío.
Il is al lho pIanning slago lhal lho basis upon vhich oach calogory of Ioarning ovonl is
lo bo ovaIualod shouId bo dolorninod. Al lho sano lino, il is nocossary lo considor
hov lho infornalion roquirod for ovaIualion shouId bo oblainod and anaIysod.
Approachos lo lho ovaIualion of Ioarning havo lradilionaIIy conconlralod on lho
ovaIualion of lraining ovonls as doscribod boIov. Bul lho lrond is lo conconlralo noro
on lho vaIidalion of lho lolaI Ioarning procoss.
Traíníng cvaíua|íon dcfíncd
Tho procoss of ovaIualing lraining has boon dofinod by HanbIin (1974) as: Ány
allonpl lo oblain infornalion (foodbacI) on lho offocls of a lraining progranno, and
lo assoss lho vaIuo of lho lraining in lho Iighl of lhal infornalion.' EvaIualion Ioads lo
conlroI, vhich noans dociding vholhor or nol lho lraining vas vorlhvhiIo (profor-
abIy in cosl/bonofil lorns) and vhal inprovononls aro roquirod lo naIo il ovon
noro cosl-offoclivo.
EvaIualion is an inlograI foaluro of Ioarning aclivilios. In ils crudosl forn, il is lho
conparison of ob¡oclivos (crilorion bohaviour) vilh oulconos (lorninaI bohaviour) lo
ansvor lho quoslion of hov far lho ovonl has achiovod ils purposo. Tho solling of
ob¡oclivos and lho oslabIishnonl of nolhods of noasuring rosuIls aro, or shouId bo,
an ossonliaI parl of lho pIanning slago of any Ioarning and dovoIopnonl progranno.
Lcvcí· of cvaíua|íon
Four IovoIs of lraining ovaIualion havo boon suggoslod by KirIpalricI (1994).
tcvcI 1. kcaction
Al lhis IovoI, ovaIualion noasuros hov lhoso vho parlicipalod in lho lraining havo
roaclod lo il. In a sonso, il is a noasuro of innodialo cuslonor salisfaclion.
KirIpalricI suggosls lho foIIoving guidoIinos for ovaIualing roaclions:
dolornino vhal you vanl lo find oul,
dosign a forn lhal viII quanlify roaclions,
oncourago vrillon connonls and suggoslions,
gol 100 por conl innodialo rosponso,
gol honosl rosponsos,
dovoIop accoplabIo slandards,
noasuro roaclions againsl slandards, and laIo approprialo aclion,
connunicalo roaclions as approprialo.
Rosoarch by Warr   (1999) has shovn lhal lhoro is roIalivoIy IillIo corroIalion
bolvoon Ioarnor roaclions and noasuros of lraining, or subsoquonl noasuros of
changod bohaviour. Bul as TanIin   (2002) poinl oul, dospilo lhis, organizalions
aro sliII Ioon lo gol roaclions lo lraining, and usod vilh caulion lhis can produco
usofuI infornalion on lho oxlonl lo vhich Ioarning ob¡oclivos voro porcoivod lo bo
nol and vhy.
tcvcI 2. FvaIuating Icarning
This IovoI oblains infornalion on lho oxlonl lo vhich Ioarning ob¡oclivos havo boon
allainod. Il viII ain lo find hov nuch InovIodgo vas acquirod, vhal sIiIIs voro
dovoIopod or inprovod, and lho oxlonl lo vhich alliludos havo changod in lho
dosirod diroclion. So far as possibIo, lho ovaIualion of Ioarning shouId invoIvo lho uso
of losls boforo and aflor lho progranno ÷ papor and ponciI, oraI or porfornanco losls.
tcvcI 3. FvaIuating bcbaviour
This IovoI ovaIualos lho oxlonl lo vhich bohaviour has changod as roquirod vhon
poopIo allonding lho progranno havo rolurnod lo lhoir ¡obs. Tho quoslion lo bo
ansvorod is lho oxlonl lo vhich InovIodgo, sIiIIs and alliludos havo boon lransforrod
fron lho cIassroon lo lho vorIpIaco. IdoaIIy, lho ovaIualion shouId laIo pIaco bolh
boforo and aflor lho lraining. Tino shouId bo aIIovod for lho chango in bohaviour lo
laIo pIaco. Tho ovaIualion noods lo assoss lho oxlonl lo vhich spocific Ioarning ob¡oc-
livos roIaling lo changos in bohaviour and lho appIicalion of InovIodgo and sIiIIs
havo boon achiovod.
tcvcI 4. FvaIuating rcsuIts
This is lho uIlinalo IovoI of ovaIualion and providos lho basis for assossing lho bono-
fils of lho lraining againsl ils cosls. Tho ob¡oclivo is lo dolornino lho addod vaIuo of
Ioarning and dovoIopnonl progrannos ÷ hov lhoy conlribulo lo raising organiza-
lionaI porfornanco significanlIy abovo ils provious IovoI. Tho ovaIualion has lo bo
basod on ´boforo and aflor' noasuros and has lo dolornino lho oxlonl lo vhich lho
fundanonlaI ob¡oclivos of lho lraining havo boon achiovod in aroas such as incroasing
saIos, raising produclivily, roducing accidonls or incroasing cuslonor salisfaclion.
EvaIualing rosuIls is obviousIy oasior vhon lhoy can bo quanlifiod. Hovovor, il is nol
aIvays oasy lo provo lho conlribulion lo inprovod rosuIls nado by lraining as
dislincl fron olhor faclors and, as KirIpalricI says: ´Bo salisfiod vilh ovidonco,
bocauso proof is usuaIIy inpossibIo lo gol.' Iorhaps lho nosl povorfuI nolhod of
dononslraling lhal Ioarning progrannos pay is lo noasuro lho rolurn on invoslnonl,
as discussod boIov.
Rc|urn on ínvc·|mcn| a· a mc|hod of cvaíua|íon
Rolurn on invoslnonl (ROI) is advocalod by sono connonlalors as a noans of
assossing lho ovoraII inpacl of lraining on organizalionaI porfornanco. Il is caIcu-
Ialod as:
Bonofils fron lraining (£) ÷ cosls of lraining (£)  100
Cosls of lraining (£)
Koarns and MiIIor (1997) boIiovo lhal onIy lhis sorl of noasuro is usofuI in ovaIualing
lho ovoraII inpacl of lraining. Thoy arguo lhal parlicuIar hard noasuros shouId bo
usod lo ovaIualo spocific lraining, for oxanpIo, if dovoIopnonl ains lo bring aboul
groalor avaronoss of cuslonors lhon il shouId sliII bo noasurod by lho ovonluaI offocl
on cuslonor spond, cuslonor salisfaclion and nunbor of cuslonors.
Tho prossuro lo produco financiaI ¡uslificalions for any organizalionaI aclivily,
ospociaIIy in aroas such as Ioarning and dovoIopnonl, has incroasod lho inlorosl in
ROI. Tho probIon is lhal vhiIo il is oasy lo rocord lho cosls il is nuch hardor lo
produco convincing financiaI assossnonls of lho bonofils. Koarns (2005a) providos a
rosponso lo lhis concorn:
Aíí busìnoss ìs ubout tho urt ol spocuíutìon und tho rìsk ol tho unknovn. 1ho trìck horo ìs
not to try und vork to u hìghor stundurd ol crodìbìíìty thun unyono oíso ìn tho orgunìzu-
tìon. ll uccountunts uro propurod to guoss ubout umortìzutìon costs or murkotìng dìroc-
tors to guoss ubout murkot shuro vhy shouíd u truìnor not bo propurod to huvo u guoss ut
tho potontìuí bonolìts ol truìnìng:
Ho roconnonds lho uso of á ruIo of lhunb' vhon using ROI lo lho offocl lhal any
lraining shouId inprovo lho porfornanco of lrainoos by al Ioasl 1 por conl. Thus if lho
rolurn on saIos lraining is boing noasurod, lho bonofils couId bo caIcuIalod as 1 por
conl of profil on saIos.
U·c of cvaíua|íon |ooí·
Rosoarch by Tho InduslriaI Socioly (2000) has shovn lhal lho KirIpalricI nodoI vas
usod by 35 por conl of lho 487 parlicipanls. Rosoarch by TvilchoII ci cl (2000) found
lhal nany US organizalions uso IovoIs 1 and 2 ovaIualions for al Ioasl sono
progrannos, fovor lhan haIf ovon lry IovoI 3 and onIy a snaII porconlago uso IovoI 4
ovaIualions.
Tho nunbor of rospondonls lo lho IRS 2004 lraining survoy using difforonl lypos of
ovaIualion is shovn in TabIo 41.2.
Appííca|íon of cvaíua|íon
As Roid ci cl (2004) connonl: ´Tho noro caro lhal has boon laIon in lho assossnonl of
noods and lho noro prociso lho ob¡oclivos, lho groalor viII bo lho possibiIily of offoc-
livo ovaIualion.' This is lho basis for conducling ovaIualion al various IovoIs.
LiIo lho siniIar IovoIs of ovaIualion suggoslod by HanbIin in 1976 (roaclions,
Ioarning, ¡ob bohaviour, inpacl on unil and organizalionaI porfornanco) lho IovoIs
dofinod by KirIpalricI aro IinIs in lho chain. Training producos roaclions, vhich Ioad
Activity No of organizations
using ´rcguIarIy' or
´somctimcs'
lmmodìuto post-courso quostìonnuìro 74
Monìtorìng uppruìsuí rosuíts 50
Cbsorvutìon ol purtìcìpunts ut vork 49
lntorvìovìng purtìcìpunts 48
Lmpíoyoo uttìtudo survoys 44
Monìtorìng quuíìlìcutìons guìnod 42
loííov-up quostìonnuìros 4l
Monìtorìng tost rosuíts 35
Survoy íìno munugors 34
Assossmont ol purtìcìpunt's uctìon píuns 3l
Lvuíuutìon lrumovork/modoí 28
Customor survoys 28
Anuíysìs ol output/quuíìty dutu 25
N = 79
TabIc 41.2 Uso of ovaIualion looIs (Scurcc. IRS, 2004f)
lo Ioarning, vhich Ioads lo changos in ¡ob bohaviour, vhich Ioad lo rosuIls al unil and
organizalionaI IovoI. Trainoos can roacl favourabIy lo a courso ÷ lhoy can on¡oy lho
oxporionco ÷ bul Ioarn IillIo or nolhing. Thoy can Ioarn sonolhing, bul cannol, or viII
nol, or aro nol aIIovod lo appIy il. Thoy appIy il bul il doos no good vilhin lhoir ovn
aroas. Il doos sono good in lhoir funclion, bul doos nol inprovo organizalionaI offoc-
livonoss.
EvaIualion can laIo pIaco al any IovoI. In lho KirIpalricI schono il is oasior lo slarl
al IovoI 1 and progross up vilh incroasing difficuIly lo IovoI 4. Il couId bo arguod lhal
lho onIy foodbacI fron ovaIualion lhal nallors is lho rosuIl in lorns of inprovod unil
or organizalionaI porfornanco lhal lraining brings. Bul if lhis is hard lo noasuro,
lraining couId sliII bo ¡uslifiod in lorns of any acluaI changos in bohaviour lhal lho
progranno vas dosignod lo produco. This is basod on lho assunplion lhal lho
anaIysis of Ioarning noods indicalod lhal lhis bohaviour is noro lhan IiIoIy lo doIivor
lho dosirod rosuIls. SiniIarIy, al lho Ioarning IovoI, if a propor anaIysis of InovIodgo,
sIiIIs and alliludo roquirononls and lhoir inpacl on bohaviour has boon conduclod, il
is roasonabIo lo assuno lhal if lho InovIodgo, olc has boon acquirod, bohaviour is
IiIoIy lo chango approprialoIy. FinaIIy, if aII oIso faiIs, roaclions aro inporlanl in lhal
lhoy provido innodialo foodbacI on lho quaIily of lraining givon (incIuding lho
porfornanco of lho lrainor), vhich can poinl lho vay lo corroclivo aclion.
kovurdìng poopío
1|is pcri is ccnccrnc! uii| i|c prcccss cj rcucr!ing pccplc in crgcnizciicns. li sicris in
C|cpicr 42 uii| c gcncrcl rcticu cj rcucr! mcncgcmcni, u|ic| inclu!cs !cscripiicns cj iis
cpplicciicn jcr !irccicrs cn! cxccuiitcs, sclcs sicjj cn! mcnucl ucr|crs. 1|is is jcllcuc! in
C|cpicr 43 uii| cn cxcminciicn cj i|c ccnccpi cj sircicgic rcucr!. 1|c rcsi cj Pcri lX !ccls
uii| i|c jcllcuing cspccis cj rcucr! mcncgcmcni.
C|cpicr 44 ÷ jc| ctcluciicn
C|cpicr 45 ÷ Mcr|ci rcic cnclqsis
C|cpicr 4o ÷ Grc!c cn! pcq siruciurcs
C|cpicr 4o ÷ Ccniingcni pcq
C|cpicr 4¯ ÷ |mplcqcc |cncjiis, pcnsicns cn! cllcucnccs
C|cpicr 48 ÷ Mcncging rcucr! sqsicms
 
kovurd munugomont
This chaplor providos an ovorviov of rovard nanagononl. Tho concopl of rovard
nanagononl, ils slralogic and dolaiIod ains and ils phiIosophy aro discussod
iniliaIIy. Roforonco is aIso nado lo lho ocononic faclors lhal affocl IovoIs of pay.
This is foIIovod by doscriplions of lho oIononls of a rovard nanagononl syslon and
lho concopl of lolaI rovard. Tho chaplor onds vilh doscriplions of parlicuIar appIica-
lions of rovard nanagononl for diroclors and oxoculivos, saIos slaff and nanuaI
vorIors.
kL\AkD MANACLMLN1 DLllNLD
Rovard nanagononl is concornod vilh lho fornuIalion and inpIononlalion
of slralogios and poIicios, lho purposos of vhich aro lo rovard poopIo fairIy, oquil-
abIy and consislonlIy in accordanco vilh lhoir vaIuo lo lho organizalion and lhus
hoIp lho organizalion lo achiovo ils slralogic goaIs. Il doaIs vilh lho dosign, inpIo-
nonlalion and nainlonanco of rovard syslons (rovard procossos, praclicos
and procoduros) lhal ain lo nool lho noods of bolh lho organizalion and ils
slaIohoIdors.

1HL AlMS Cl kL\AkD MANACLMLN1
Tho ains of rovard nanagononl aro lo:
rovard poopIo according lo vhal lho organizalion vaIuos and vanls lo pay for,
rovard poopIo for lho vaIuo lhoy croalo,
rovard lho righl lhings lo convoy lho righl nossago aboul vhal is inporlanl in
lorns of bohaviours and oulconos,
dovoIop a porfornanco cuIluro,
nolivalo poopIo and oblain lhoir connilnonl and ongagononl,
hoIp lo allracl and rolain lho high quaIily poopIo lho organizalion noods,
croalo lolaI rovard procossos lhal rocognizo lho inporlanco of bolh financiaI and
non-financiaI rovards,
dovoIop a posilivo onpIoynonl roIalionship and psychoIogicaI conlracl,
aIign rovard praclicos vilh bolh businoss goaIs and onpIoyoo vaIuos, as Brovn
(2001) onphasizos, lho áIignnonl of your rovard praclicos vilh onpIoyoo vaIuos
and noods is ovory bil as inporlanl as aIignnonl vilh businoss goaIs, and crilicaI
lo lho roaIizalion of lho Iallor',
oporalo fairIy ÷ poopIo fooI lhal lhoy aro lroalod ¡uslIy in accordanco vilh vhal is
duo lo lhon bocauso of lhoir vaIuo lo lho organizalion: lho ´foIl-fair' principIo of
}aquos (1961),
appIy oquilabIy ÷ poopIo aro rovardod approprialoIy in roIalion lo olhors vilhin
lho organizalion, roIalivilios bolvoon ¡obs aro noasurod as ob¡oclivoIy as possibIo
and oquaI pay is providod for vorI of oquaI vaIuo,
funclion consislonlIy ÷ docisions on pay do nol vary arbilrariIy and vilhoul duo
causo bolvoon difforonl poopIo or al difforonl linos,
oporalo lransparonlIy ÷ poopIo undorsland hov rovard procossos oporalo and
hov lhoy aro affoclod by lhon.
1HL lHlLCSClHY Cl kL\AkD MANACLMLN1
Rovard nanagononl is basod on a voII-arlicuIalod phiIosophy ÷ a sol of boIiofs and
guiding principIos lhal aro consislonl vilh lho vaIuos of lho organizalion and hoIp lo
onacl lhon. Thoso incIudo boIiofs in lho nood lo achiovo fairnoss, oquily, consisloncy
and lransparoncy in oporaling lho rovard syslon. Tho phiIosophy rocognizos lhal if
HRM is aboul invosling in hunan capilaI fron vhich a roasonabIo rolurn is roquirod,
lhon il is propor lo rovard poopIo difforonliaIIy according lo lhoir conlribulion (io lho
rolurn on invoslnonl lhoy gonoralo).
624 kovurdìng poopío
Tho phiIosophy of rovard nanagononl rocognizos lhal il nusl bo slralogic in lho
sonso lhal il addrossos Iongor-lorn issuos roIaling lo hov poopIo shouId bo vaIuod for
vhal lhoy do and vhal lhoy achiovo. Rovard slralogios and lho procossos lhal aro
roquirod lo inpIononl lhon havo lo fIov fron lho businoss slralogy.
Rovard nanagononl adopls a ´lolaI rovard' approach, vhich onphasizos lho
inporlanco of considoring aII aspocls of rovard as a cohoronl vhoIo lhal is inlogralod
vilh olhor HR inilialivos dosignod lo achiovo lho nolivalion, connilnonl, ongago-
nonl and dovoIopnonl of onpIoyoos. This roquiros lho inlogralion of rovard slralo-
gios vilh olhor HRM slralogios, ospociaIIy lhoso concorning hunan rosourco
dovoIopnonl. Rovard nanagononl is an inlograI parl of an HRM approach lo
nanaging poopIo.
Tho phiIosophy viII bo affoclod by lho businoss and HR slralogios of lho organiza-
lion, lho significanco allachod lo rovard nallors by lop nanagononl, and lho inlornaI
and oxlornaI onvironnonl of lho organizalion. Tho oxlornaI onvironnonl incIudos lho
IovoIs of pay in lho Iabour narIol (narIol ralos) and il is hoIpfuI lo bo avaro of lho
ocononic lhoorios lhal oxpIain hov lhoso IovoIs aro dolorninod, as sunnarizod in
TabIo 42.1.
1HL LLLMLN1S Cl kL\AkD MANACLMLN1
Tho oIononls of rovard nanagononl aro doscribod boIov.
Rcvard ·,·|cm
A rovard syslon consisls of:
Pclicics lhal provido guidoIinos on approachos lo nanaging rovards.
Prcciiccs lhal provido financiaI and non-financiaI rovards.
Prcccsscs concornod vilh ovaIualing lho roIalivo sizo of ¡obs (¡ob ovaIualion) and
assossing individuaI porfornanco (porfornanco nanagononl).
Prccc!urcs oporalod in ordor lo nainlain lho syslon and lo onsuro lhal il oporalos
officionlIy and fIoxibIy and providos vaIuo for nonoy.
Rcvard ·|ra|cg,
Rovard slralogy sols oul vhal lho organizalion inlonds lo do in lho Iongor lorn lo
dovoIop and inpIononl rovard poIicios, praclicos and procossos lhal viII furlhor lho
achiovononl of ils businoss goaIs.
kovurd munugomont 625
Namc of tbcory Summary of tbcory FracticaI significancc
1ho íuv ol suppíy Cthor thìngs boìng oquuí, ìl thoro ìs u Lmphusìzos tho ìmportunco ol
und domund surpíus ol íubour und suppíy oxcoods íubour murkot luctors ìn
tho domund, puy íovoís go dovn, ìl ulloctìng murkot rutos.
thoro ìs u scurcìty ol íubour und domund
oxcoods tho suppíy, puy goos up.
Lllìcìoncy vugo lìrms vìíí puy moro thun tho murkot Crgunìzutìons uso ollìcìoncy
thoory ruto bocuuso thoy boíìovo thut hìgh vugos thoory tuíthough thoy
íovoís ol puy vìíí contrìbuto to ìncrousos vìíí not cuíí ìt thut) vhon thoy
ìn productìvìty by motìvutìng suporìor lormuíuto puy poíìcìos vhìch
porlormunco, uttructìng bottor cundìdutos, píuco thom us murkot íoudors
roducìng íubour turnovor und porsuudìng or ut íoust ubovo tho uvorugo.
vorkors thut thoy uro boìng troutod
luìríy. 1hìs thoory ìs uíso knovn us ´tho
oconomy ol hìgh vugos´.
Humun cupìtuí A vorkor hus u sot ol skìíís dovoíopod Lmpíoyoos und ompíoyors
thoory by oducutìon und truìnìng vhìch ouch dorìvo bonolìts lrom
gonorutos u stock ol productìvo ìnvostmont ìn croutìng humun
cupìtuí. cupìtuí. 1ho íovoí ol puy shouíd
suppíy both purtìos vìth u
rousonubío roturn on thut
ìnvostmont.
Agoncy thoory 1ho ovnors ol u lìrm ttho prìncìpuís) uro A systom ol ìncontìvos to
sopuruto lrom tho ompíoyoos ttho ugonts). motìvuto und rovurd
1hìs dìlloronco cun crouto úgoncy costs' uccoptubío bohuvìour. 1hìs
bocuuso tho ugonts muy not bo so procoss ol ´ìncontìvo uíìgnmont'
productìvo us tho prìncìpuís. 1ho íuttor consìsts ol puyìng lor
thoroloro huvo to dovìso vuys ol mousurubío rosuíts thut uro
motìvutìng und controííìng tho ollorts doomod to bo ìn tho bost
ol tho lormor. ìntorosts ol tho ovnors.
1ho ollort burguìn \orkors uìm to strìko u burguìn ubout tho Munugomont hus to ussoss
roíutìonshìp botvoon vhut thoy rogurd us vhut íovoí und typo ol
us rousonubío contrìbutìon und vhut ìnducomonts ìt hus to ollor ìn
thoìr ompíoyor ìs propurod to ollor to roturn lor tho contrìbutìon ìt
oíìcìt thut contrìbutìon. roquìros lrom ìts vorklorco.
TabIc 42.1 Econonic lhoorios oxpIaining pay IovoIs
Rcvard poíícíc·
Rovard poIicios addross lho foIIoving broad issuos:
lho IovoI of rovards, laIing inlo accounl ńarIol slanco', io hov inlornaI ralos of
pay shouId conparo vilh narIol ralos, for oxanpIo aIignod lo lho nodian or lho
uppor quarliIo ralo,
achioving oquaI pay,
lho roIalivo inporlanco allachod lo oxlornaI conpolilivonoss and inlornaI oquily,
lho approach lo lolaI rovard,
lho scopo for lho uso of conlingonl rovards roIalod lo porfornanco, conpolonco,
conlribulion or sIiII,
lho roIo of Iino nanagors,
lransparoncy ÷ lho pubIicalion of infornalion on rovard slrucluros and procossos
lo onpIoyoos.
To|aí rcvard
TolaI rovard is lho conbinalion of financiaI and non-financiaI rovards avaiIabIo lo
onpIoyoos.
To|aí rcmuncra|íon
TolaI ronunoralion is lho vaIuo of aII cash paynonls (lolaI oarnings) and bonofils
rocoivod by onpIoyoos.
ßa·c or ba·íc pa,
Tho baso ralo is lho anounl of pay (lho fixod saIary or vago) lhal conslilulos lho ralo
for lho ¡ob. Il nay bo variod according lo lho grado of lho ¡ob or, for nanuaI vorIors,
lho IovoI of sIiII roquirod.
Baso pay viII bo infIuoncod by inlornaI and oxlornaI roIalivilios. Tho inlornaI roIa-
livilios nay bo noasurod by sono forn of ¡ob ovaIualion. ExlornaI roIalivilios aro
assossod by lracIing narIol ralos. AIlornalivoIy, IovoIs of pay nay bo agrood lhrough
coIIoclivo bargaining vilh lrado unions or by roaching individuaI agroononls.
Baso pay nay bo oxprossod as an annuaI, vooIIy or hourIy ralo. For nanuaI
vorIors lhis nay bo caIIod a ´lino ralo' syslon of paynonl. AIIovancos for ovorlino,
shifl vorIing, unsociaI hours or incroasod cosl of Iiving in London or oIsovhoro nay
bo addod lo baso pay. Tho baso ralo nay bo ad¡uslod lo rofIocl incroasos in lho cosl of
Iiving or narIol ralos by lho organizalion, uniIaloraIIy or by agroononl vilh a lrado
union.
Iob cvaíua|íon
}ob ovaIualion is a syslonalic procoss for dofining lho roIalivo vorlh or sizo of ¡obs
vilhin an organizalion in ordor lo oslabIish inlornaI roIalivilios and provido lho basis
for dosigning an oquilabIo grado slrucluro, grading ¡obs in lho slrucluro and
nanaging roIalivilios. Il doos nol dolornino lho IovoI of pay diroclIy. }ob ovaIualion
can bo anaIylicaI or non-anaIylicaI. Il is basod on lho anaIysis of ¡obs or roIos, vhich
Ioads lo lho produclion of ¡ob doscriplions or roIo profiIos. }ob ovaIualion is doscribod
in Chaplor 44.
\ar|c| ra|c anaí,·í·
MarIol ralo anaIysis is lho procoss of idonlifying lho ralos of pay in lho Iabour narIol
for conparabIo ¡obs lo inforn docisions on IovoIs of pay vilhin lho organizalion. A
poIicy docision nay bo nado on hov inlornaI ralos of pay shouId conparo vilh
oxlornaI ralos ÷ an organizalion's narIol slanco. MarIol ralo anaIysis is doscribod in
Chaplor 45.
Cradc and pa, ·|ruc|urc·
}obs nay bo pIacod in a gradod slrucluro according lo lhoir roIalivo sizo. Iay IovoIs in
lho slrucluro aro infIuoncod by narIol ralos. Tho pay slrucluro nay consisl of pay
rangos allachod lo grados, vhich provido scopo for pay progrossion basod on porfor-
nanco, conpolonco, conlribulion or sorvico. AIlornalivoIy, a ´spol ralo' slrucluro nay
bo usod for aII or sono ¡obs in vhich no provision is nado for pay progrossion in a
¡ob. Tho various lypos of grado and pay slrucluros aro doscribod in Chaplor 46.
Con|íngcn| pa,
AddilionaI financiaI rovards nay bo providod lhal aro roIalod lo porfornanco,
conpolonco, conlribulion, sIiII or oxporionco. Thoso aro roforrod lo as ćonlingonl
pay'. Conlingonl paynonls nay bo addod lo baso pay, io ćonsoIidalod'. If such
paynonls aro nol consoIidalod (io paid as cash bonusos) lhoy aro doscribod as ´vari-
abIo pay'. Conlingonl pay schonos aro doscribod in Chaplor 47.
Lmpío,cc bcncfí|·
EnpIoyoo bonofils incIudo ponsions, sicI pay, insuranco covor, conpany cars and a
nunbor of olhor ´porIs' as doscribod in Chaplor 48. Thoy conpriso oIononls of ronu-
noralion addilionaI lo lho various forns of cash pay and aIso incIudo provisions for
onpIoyoos lhal aro nol slriclIy ronunoralion, such as annuaI hoIidays.
Iorfornanco nanagononl procossos (soo Iarl VII) dofino individuaI porfornanco
and conlribulion oxpoclalions, assoss porfornanco againsl lhoso oxpoclalions,
provido for roguIar conslruclivo foodbacI and rosuIl in agrood pIans for porfornanco
inprovononl, Ioarning and porsonaI dovoIopnonl. Thoy aro a noans of providing
non-financiaI nolivalion and nay aIso inforn conlingonl pay docisions.
ôn-fínancíaí rcvard·
Thoso aro rovards lhal do nol invoIvo any dirocl paynonls and oflon ariso fron lho
vorI ilsoIf, for oxanpIo, achiovononl, aulonony, rocognilion, scopo lo uso and
dovoIop sIiIIs, lraining, caroor dovoIopnonl opporlunilios and high quaIily Ioador-
ship.
Tho inlor-roIalionships of lhoso oIononls aro shovn in Figuro 42.1.
1C1AL kL\AkD
Tho concopl of lolaI rovard has onorgod quilo roconlIy and is oxorling considorabIo
infIuonco on rovard nanagononl. This soclion of lho chaplor bogins by dofining
vhal il noans. Tho inporlanco of lho concopl is lhon oxpIainod, and lho soclion
conlinuos vilh an anaIysis of lho conpononls of lolaI rovard. Il concIudos vilh a
doscriplion of hov a lolaI rovard approach lo rovard nanagononl can bo dovoI-
opod.
To|aí rcvard dcfíncd
As dofinod by Manus and Grahan (2003), lolaI rovard íncIudos aII lypos of rovards
÷ indirocl as voII as dirocl, and inlrinsic as voII as oxlrinsic'. Each aspocl of ro-
vard, nanoIy baso pay, conlingonl pay, onpIoyoo bonofils and non-financiaI rovards,
vhich incIudo inlrinsic rovards fron lho vorI ilsoIf, aro IinIod logolhor and lroalod
as an inlogralod and cohoronl vhoIo. TolaI rovard conbinos lho inpacl of lho lvo
na¡or calogorios of rovard as dofinod boIov and iIIuslralod in Figuro 42.2: 1) ircnscc-
iicncl rcucr!s ÷ langibIo rovards arising fron lransaclions bolvoon lho onpIoyor and
onpIoyoos concorning pay and bonofils, and 2) rclciicncl rcucr!s ÷ inlangibIo rovards
concornod vilh Ioarning and dovoIopnonl and lho vorI oxporionco.
A lolaI rovard approach is hoIislic: roIianco is nol pIacod on ono or lvo rovard
nochanisns oporaling in isoIalion, and accounl is laIon of ovory vay in vhich
poopIo can bo rovardod and oblain salisfaclion lhrough lhoir vorI. Tho ain is lo
naxinizo lho conbinod inpacl of a vido rango of rovard inilialivos on nolivalion,
connilnonl and ¡ob ongagononl. As O'NoaI (1998) has oxpIainod: ´TolaI rovard
onbracos ovorylhing lhal onpIoyoos vaIuo in lho onpIoynonl roIalionship.'
Job evaluation
Grade and pay
structure
Market rate
analysis
Contingent pay
Business and
HR strategy
Reward
strategy
Total
remuneration
Total reward
Employee
benefits
Allowances
Performance
management
Non-financial
rewards
FIgurc 42.1 Rovard nanagononl: oIononls and inlorroIalionships
An oquaIIy vido dofinilion of lolaI rovard is offorod by WorIdalWorI (2000) vho
slalo lhal lolaI rovards aro áII of lho onpIoyor's avaiIabIo looIs lhal nay bo usod lo
allracl, rolain, nolivalo and salisfy onpIoyoos'. Thonpson (2002) suggosls lhal:
Dolìnìtìons ol totuí rovurd typìcuííy oncompuss not oníy trudìtìonuí, quuntìlìubío
oíomonts íìko suíury, vurìubío puy und bonolìts, but uíso moro ìntungìbío non-cush
oíomonts such us scopo to uchìovo und oxorcìso rosponsìbìíìty, curoor opportunìtìos,
íournìng und dovoíopmont, tho ìntrìnsìc motìvutìon provìdod by tho vork ìtsoíl und tho
quuíìty ol vorkìng íìlo provìdod by tho orgunìzutìon.
Tho concopluaI basis of lolaI rovards is lhal of configuralion or ´bundIing', so lhal
difforonl rovard procossos aro inlorroIalod, conpIononlary and nuluaIIy roinforcing.
TolaI rovard slralogios aro vorlicaIIy inlogralod vilh businoss slralogios, bul lhoy aro
aIso horizonlaIIy inlogralod vilh olhor HR slralogios lo achiovo inlornaI consisloncy.
kovurd munugomont 63l
Transactional
rewards
Base pay
Contingency pay
Employee benefits
Learning and development
The work experience
Relational
rewards
Total reward
Total
remuneration
Non-financial/
intrinsic
rewards
FIgurc 42.2 Tho conpononls of lolaI rovard
Thc ·ígnífícancc of |o|aí rcvard
EssonliaIIy, lho nolion of lolaI rovard says lhal lhoro is noro lo rovarding poopIo
lhan lhroving nonoy al lhon.
For O'NoaI (1998), a lolaI rovard slralogy is crilicaI lo addrossing lho issuos croalod
by rocruilnonl and rolonlion as voII as providing a noans of infIuoncing bohaviour:
lt cun hoíp crouto u vork oxporìonco thut moots tho noods ol ompíoyoos und oncourugos
thom to contrìbuto oxtru ollort, by dovoíopìng u douí thut uddrossos u broud rungo ol
ìssuos und by spondìng rovurd doííurs vhoro thoy vìíí bo most olloctìvo ìn uddrossìng
vorkors' shìltìng vuíuos.
Iorhaps lho nosl povorfuI argunonl for a lolaI rovards approach vas nado by
Ifoffor (1998):
Croutìng u lun, chuííongìng, und ompovorod vork onvìronmont ìn vhìch ìndìvìduuís uro
ubío to uso thoìr ubìíìtìos to do mounìngluí ¡obs lor vhìch thoy uro shovn upprocìutìon ìs
íìkoíy to bo u moro cortuìn vuy to onhunco motìvutìon und porlormunco - ovon though
croutìng such un onvìronmont muy bo moro dìllìcuít und tuko moro tìmo thun sìmpíy
turnìng tho rovurd íovor.
Tho bonofils of a lolaI rovard approach aro:
Grccicr impcci ÷ lho conbinod offocl of lho difforonl lypos of rovards viII naIo
a doopor and Iongor-Iasling inpacl on lho nolivalion and connilnonl of
poopIo.
|n|cncing i|c cmplcqmcni rclciicns|ip ÷ lho onpIoynonl roIalionship croalod by a
lolaI rovard approach naIos lho naxinun uso of roIalionaI as voII as lransac-
lionaI rovards and viII lhoroforo appoaI noro lo individuaIs.
llcxi|iliiq ic mcci in!iti!ucl ncc!s ÷ as poinlod oul by BIoon and MiIIovilch (1998):
´RoIalionaI rovards nay bind individuaIs noro slrongIy lo lho organizalion
bocauso lhoy can ansvor lhoso spociaI individuaI noods.'
1clcni mcncgcmcni ÷ roIalionaI rovards hoIp lo doIivor a posilivo psychoIogicaI
conlracl and lhis can sorvo as a difforonlialor in lho rocruilnonl narIol lhal is
nuch noro difficuIl lo ropIicalo lhan individuaI pay praclicos. Tho organizalion
can bocono an ónpIoyor of choico' and á groal pIaco lo vorI', lhus allracling
and rolaining lho laIonlod poopIo il noods.
MCDLL Cl 1C1AL kL\AkD
A nodoI of lolaI rovard is shovn in Figuro 42.3.
Tho uppor lvo quadranls ÷ pay and bonofils ÷ roprosonl lransaclionaI rovards. Thoso
aro financiaI in naluro and aro ossonliaI lo rocruil and rolain slaff bul can bo oasiIy
copiod by conpolilors. By conlrasl, lho roIalionaI (non-financiaI) rovards producod
Transactional
(tangible)
Communal
Ìndividual
Relational
(intangible)
FIgurc 42.3 ModoI of lolaI rovard
Pay Benefits
base pay pensions
contingent pay holidays
cash bonuses health care
long-term incentives other perks
shares flexibility
profit sharing
Learning and development Work environment
workplace learning and core values of the organization
development leadership
training employee voice
performance management recognition
career development achievement
job design and role development
(responsibility, autonomy,
meaningful work, the scope to
use and develop skills)
quality of working life
work/life balance
talent management
by lho Iovor lvo quadranls aro ossonliaI lo onhancing lho vaIuo of lho uppor lvo
quadranls. Tho roaI povor, as Thonpson (2002) slalos, conos vhon organizalions
conbino roIalionaI and lransaclionaI rovards.
kL\AkD MANACLMLN1 lCk DlkLC1CkS AND
LXLCL1lVLS
|ríncípíc· of corpora|c govcrnancc rcía|íng |o rcmuncra|íon of
dírcc|or·
Tho Ioy principIos of corporalo govornanco as il affocls lho ronunoralion of diroclors,
vhich onorgod fron various roviovs, nanoIy lho Cadbury, Groonbury and HanpoI
Roporls, aro as foIIovs:
Ronunoralion connilloos shouId consisl oxcIusivoIy of non-oxoculivo diroclors.
Thoir purposo is lo provido an indopondonl basis for solling lho saIary IovoIs and
lho ruIos covoring inconlivos, sharo oplions, bonofil onlilIononls and conlracl
provisions for oxoculivo diroclors. Such connilloos aro accounlabIo lo sharo-
hoIdors for lho docisions lhoy laIo and lho non-oxoculivo diroclors vho sil on
lhon shouId havo no porsonaI financiaI inlorosls al slaIo. Thoy shouId bo consli-
lulod as sub-connilloos of conpany boards and boards shouId oIocl bolh lho
chairnan and lho nonbors.
Ronunoralion connilloos nusl provido a ronunoralion pacIago sufficionl lo
allracl, rolain and nolivalo diroclors bul shouId avoid paying noro lhan is nocos-
sary. Thoy shouId bo sonsilivo lo vidor issuos, og pay and onpIoynonl condilions
oIsovhoro in lho conpany.
Ronunoralion connilloos shouId laIo a robusl Iino on lho paynonl of conpon-
salion vhoro porfornanco has boon unsalisfaclory.
Iorfornanco-roIalod oIononls shouId bo dosignod lo aIign lho inlorosls of diroc-
lors and sharohoIdors.
Any nov Iongor-lorn inconlivo arrangononl shouId, proforabIy, ropIaco oxisling
oxoculivo sharo oplion pIans, or al Ioasl forn parl of an inlogralod approach,
vhich shouId bo approvod by sharohoIdors.
Tho ponsion consoquoncos and associalod cosls lo lho conpany of incroasos in
baso saIary shouId bo considorod.
Nolico or sorvico conlracl poriods shouId bo sol al, or roducod lo, a yoar or Ioss.
Hovovor, in sono casos poriods of up lo lvo yoars nay bo accoplabIo.
Lícmcn|· of dírcc|or·' and ·cníor cxccu|ívc·' pa,
Tho nain oIononls of diroclors' and sonior oxoculivos' pay aro basic pay, bonus or
inconlivo schonos, sharo oplion and sharo ovnorship schonos.
ßasic pay
Docisions on lho baso saIary of diroclors and sonior oxoculivos aro usuaIIy foundod on
IargoIy sub¡oclivo viovs aboul lho narIol vorlh of lho individuaIs concornod.
Ronunoralion on ¡oining lho conpany is connonIy sollIod by nogolialion, oflon
sub¡ocl lo lho approvaI of a ronunoralion connilloo. Roviovs of baso saIarios aro
lhon undorlaIon by roforonco lo narIol novononls and succoss as noasurod by
conpany porfornanco. Docisions on baso saIary aro inporlanl nol onIy in lhonsoIvos
bul aIso bocauso lho IovoI nay infIuonco docisions on lho pay of bolh sonior and
niddIo nanagors. Bonusos aro oxprossod as a porconlago of baso saIary, sharo oplions
nay bo aIIocalod as a docIarod nuIlipIo of basic pay and, connonIy, ponsion viII bo
a proporlion of finaI saIary.
ßonus scbcmcs
VirluaIIy aII na¡or onpIoyors in lho UK (90 por conl according lo roconl survoys by
organizalions such as MonIs and Hay) provido annuaI inconlivo (bonus) schonos for
sonior oxoculivos. Bonus schonos provido diroclors and oxoculivos vilh cash suns
basod on lho noasuros of conpany and, froquonlIy, individuaI porfornanco.
TypicaIIy, bonus paynonls aro IinIod lo achiovononl of profil and/or olhor finan-
ciaI largols and lhoy aro sonolinos ćappod', io a roslriclion is pIacod on lho
naxinun anounl payabIo. Thoro nay aIso bo oIononls roIalod lo achioving spocific
goaIs and lo individuaI porfornanco.
Sbarc option scbcmcs
Many conpanios havo sharo oplion schonos lhal givo diroclors and oxoculivos lho
righl lo buy a bIocI of sharos on sono fuluro dalo al lho sharo prico ruIing vhon lho
oplion vas granlod. Thoy aro a forn of Iong-lorn inconlivo on lho assunplion lhal
oxoculivos viII bo nolivalod lo porforn noro offoclivoIy if lhoy can anlicipalo a
subslanliaI capilaI gain vhon lhoy soII lhoir sharos al a prico abovo lhal provaiIing
vhon lhoy looI up lho oplion.
Fxccutivc rcstrictcd sbarc scbcmcs
Undor such schonos froo sharos aro provisionaIIy avardod lo parlicipanls. Thoso
sharos do nol boIong lo lho oxoculivo unliI lhoy aro roIoasod or voslod, honco lhoy aro
´roslriclod'. Tho nunbor of sharos acluaIIy roIoasod lo lho oxoculivo al lho ond of a
dofinod poriod (usuaIIy lhroo or, Ioss connonIy, fivo yoars) viII dopond on porfor-
nanco ovor lhal poriod againsl spocific largols. Thoroaflor lhoro nay bo a furlhor
rolonlion poriod vhon lho sharos nusl bo hoId, aIlhough no furlhor porfornanco
condilions appIy.
kL\AkD MANACLMLN1 lCk SALLS S1All
Thoro aro no hard-and-fasl ruIos govorning hov saIos roprosonlalivos shouId bo paid.
Il doponds on lho lypo of conpany, lho producls or sorvicos il offors ils cuslonors and
lho naluro of lho saIos procoss ÷ hov saIos aro organizod and nado. Tho difforonl
nolhods aro doscribod in TabIo 42.2.
lAYlNC MANLAL \CkKLkS
Tho pay of nanuaI vorIors laIos lho forn of lino ralos, aIso Inovn as day ralos, day
vorI, fIal ralos or hourIy ralos. Inconlivo paynonls by noans of paynonl-by-rosuIls
schonos nay bo nado on lop of a baso ralo.
Tímc ra|c·
Thoso provido vorIors vilh a prodolorninod ralo for lho acluaI hours lhoy vorI.
Tino ralos on lhoir ovn aro nosl connonIy usod vhon il is lhoughl lhal il
is inpossibIo or undosirabIo lo uso a paynonl-by-rosuIls syslon, for oxanpIo in
nainlonanco vorI. Fron lho viovpoinl of onpIoyoos, lho advanlago of lino ralos is
lhal lhoir oarnings aro prodiclabIo and sloady and lhoy do nol havo lo ongago in
ondIoss argunonls vilh ralo-fixors and suporvisors aboul pioco ralo or lino
aIIovancos. Tho argunonl againsl lhon is lhal lhoy do nol provido a dirocl inconlivo
roIaling lho rovard lo lho offorl or lho rosuIls. Tvo vays of nodifying lho basic
lino ralo approach aro lo adopl high day ralos, as doscribod boIov, or noasurod day
vorI.
Tino ralos nay laIo lho forn of vhal aro oflon caIIod high day ralos. Thoso aro
highor lhan lho nininun lino ralo and nay conlain a consoIidalod bonus ralo
oIononl. Tho undorIying assunplion is lhal highor baso ralos viII oncourago groalor
offorl vilhoul lho probIons croalod vhon oporaling an inconlivo schono. High day
ralos aro usuaIIy abovo lho IocaI narIol ralos, lo allracl and rolain vorIors.
Mctbod Fcaturcs Advantagcs Disadvantagcs Wbcn
appropriatc
Suíury oníy Struìght suíury, no Lncourugo No dìroct \hon
commìssìon or customor sorvìco motìvutìon roprosontìng tho
bonus ruthor thun hìgh through monoy, compuny ìs moro
prossuro soííìng, muy uttruct ìmportunt thun
douí vìth tho undor-uchìovìng dìroct soííìng,
probíom ol stull poopío vho uro stull huvo íìttío
vho uro vorkìng subsìdìzod by ìnlíuonco on
ìn u nov or hìgh uchìovors, suíos voíumo tthoy
unproductìvo ìncrousos lìxod muy sìmpíy bo
suíos torrìtory, costs ol suíos órdor tukors'),
protocts ìncomo bocuuso puy customor sorvìco
vhon suíos costs uro not ìs uíí-ìmportunt
líuctuuto lor líoxod vìth
rousons boyond suíos rosuíts
tho ìndìvìduuí's
controí
Suíury píus ßusìc suíury píus Dìroct lìnuncìuí koíutìng puy to \hon ìt ìs
commìssìon cush commìssìon motìvutìon ìs tho voíumo or boíìovod thut tho
cuícuíutod us u provìdod roíutod vuíuo ol suíos ìs vuy to got moro
porcontugo ol to vhut suíos too crudo un suíos ìs to íìnk
suíos voíumo or stull uro thoro, upprouch und oxtru monoy to
vuíuo to do muy rosuít ìn rosuíts but u buso
ìo gonoruto suíos, stull goìng lor suíury ìs stìíí
but thoy uro not voíumo by noodod to uttruct
ontìroíy concontrutìng tho muny poopío
dopondont on on tho ousìor to vho vunt to bo
commìssìon - soíí products not ussurod ol u
thoy uro thoso gonorutìng rousonubío busìc
cushìonod by hìgh murgìns, suíury vhìch vìíí
thoìr buso suíury muy oncourugo not líuctuuto but
hìgh-prossuro vho stìíí uspìro
soííìng us ìn to ìncrouso thut
somo lìnuncìuí suíury by thoìr
sorvìcos lìrms ìn ovn ollorts
tho l980s und
l990s
Suíury píus ßusìc suíury píus lrovìdo lìnuncìuí Do not huvo u \hon: líoxìbìíìty
bonus cush bonus motìvutìon but cíour íìno ol ìn provìdìng
busod on turgots or sìght botvoon rovurds ìs
TabIc 42.2 Sunnary of paynonl and inconlivo arrangononls for saIos slaff
ccniinuc! ctcrlccj
Mctbod Fcaturcs Advantagcs Disadvantagcs Wbcn
appropriatc
uchìovìng und ob¡octìvos cun ollort und rovurd, ìmportunt, ìt ìs
oxcoodìng suíos bo líoxod to muy bo compíox loít thut suíos
turgots or quotus onsuro thut to udmìnìstor, stull nood to bo
und mootìng purtìcuíur suíos suíos motìvutod to
othor soííìng gouís uro roprosontutìvo locus on uspocts
ob¡octìvos uchìovod, og muy lìnd thom ol thoìr vork
hìgh murgìn hurd to othor thun sìmpíy
suíos, customor undorstund und muxìmìzìng
sorvìco rosont tho uso ol suíos voíumo
sub¡octìvo
¡udgomonts on
porlormunco
othor thun
suíos
Commìssìon Cníy lrovìdo u dìroct Loud to hìgh- \hon: suíos
oníy commìssìon lìnuncìuí prossuro soííìng, porlormunco
busod on u ìncontìvo, uttruct muy uttruct tho doponds muìníy
porcontugo ol hìgh porlormìng vrong sort ol on soííìng ubìíìty
suíos voíumo or suíos stull, onsuro poopío vho uro und cun bo
vuíuo ìs puìd, thut soííìng costs ìntorostod oníy mousurod by
thoro ìs no busìc vury dìroctíy vìth ìn mukìng suíos ìmmodìuto suíos
suíury suíos, íìttío dìroct und not rosuíts, stull uro
suporvìsìon customor sorvìco, not ìnvoívod ìn
roquìrod locus uttontìon non-soííìng
on hìgh voíumo uctìvìtìos,
ruthor thun contìnuìng
prolìtubìíìty roíutìonshìps
vìth
customors uro
roíutìvoíy
unìmportunt
Addìtìonuí lncontìvos, Ltìíìzo Muy bo \hon ìt ìs
non-cush prìzos, curs, povorluí dìllìcuít to boíìovod thut
rovurds rocognìtìon, non-lìnuncìuí udmìnìstor, othor mothods ol
opportunìtìos motìvutors do not puymont nood to
to grov provìdo u bo onhuncod by
dìroct provìdìng
ìncontìvo uddìtìonuí
motìvutors
TabIc 42.2 
|a,mcn|-b,-rc·uí| ·chcmc·
Iaynonl-by-rosuIl (IBR) schonos provido inconlivos lo vorIors by roIaling lhoir pay
or, noro usuaIIy, parl of lhoir pay lo lho nunbor of ilons lhoy produco or lho lino
laIon lo do a corlain anounl of vorI. Tho nain lypos of IBR or inconlivo schonos for
individuaIs aro pioco vorI, vorI noasurod schonos, noasurod day vorI and porfor-
nanco-roIalod pay. Toan bonus schonos aro an aIlornalivo lo individuaI IBR and
pIanl-vido schonos can produco bonusos lhal aro paid insload of individuaI or loan
bonusos, or in addilion lo lhon. Each of lhoso nolhods is doscribod in TabIo 42.3
logolhor vilh an assossnonl of lhoir advanlagos and disadvanlagos for onpIoyors
and onpIoyoos, and vhon lhoy aro approprialo.
TabIc 42.3 Conparison of shopfIoor paynonl-by-rosuIl schonos
lìoco ßonus dìroctíy Dìroct Loso controí lrodìct und Moro dìllìcuít luìríy
vork roíutod to motìvutìon, ovor output, controí to prodìct und íìmìtod
output. sìmpío, ousy quuíìty ournìngs ìn controí uppíìcutìon
und to oporuto. probíoms. tho short- ournìngs ìn tho to vork
torm, roguíuto íongor-torm, ìnvoívìng
puco ol vork vork muy bo unìt
thomsoívos. strossluí und productìon
produco kSl. controííod
by tho
porson og
ugrìcuíturo,
gurmont
munuluc-
turo.
\ork- \ork lrovìdos vhut Schomos uro Appour to kutìngs uro lor short-
mousurod mousuromont uppours to bo u oxponsìvo, provìdo u stìíí prono to cycío
schomos usod to ´scìontìlìc' tìmo- moro sub¡octìvo ropotìtìvo
dotormìno mothod ol consumìng ob¡octìvo ¡udgomont vork vhoro
stundurd roíutìng und dìllìcuít mothod ol und ournìngs chungos ìn
output íovoís rovurd to to run und roíutìng puy cun líuctuuto tho vork
ovor u porìod porlormunco, cun too ousìíy to bocuuso ol mìx or
or stundurd cun produco dogonoruto porlormunco, chungos ìn dosìgn
tìmos lor sìgnìlìcunt und cuuso ompíoyoos vork chungos
¡ob/tusks, ìncrousos ìn vugo drìlt cun bo roquìromonts uro
bonus busod productìvìty, bocuuso ol ìnvoívod ìn outsìdo tho ìnlroquont,
by roloronco to ut íoust ìn íooso rutos. tho rutìng controí ol dovn tìmo
porlormunco tho short-torm. procoss to ompíoyoos. ìs rostrìctod,
rutìngs onsuro und
compurod luìrnoss. munugo-

vìth uctuuí mont und
porlormunco suporvìsìon
or tìmo uro cupubío
suvod. ol
munugìng
und
muìntuìnìng
tho schomo.
Mousurod luy lìxod ut u Lmpíoyoos uro lorlormunco Hìgh No Lvoryono
duy vork hìgh ruto on undor un turgots cun prodìctubío opportunìtìos must bo
tho obíìgutìon to bocomo ousìíy ournìngs uro lor ìndìvìduuís totuííy
undorstundìng vork ut tho uttuìnod norms provìdod. to bo commìttod
thut u hìgh spocìlìod íovoí und muy bo rovurdod to mukìng ìt
íovoí ol ol dìllìcuít to ìn íìno vìth vork, hìgh
porlormunco porlormunco. chungo. thoìr ovn stundurds ol
uguìnst vork- ollorts. vork
mousurod mousuro-
stundurds vìíí mont uro
bo ossontìuí,
muìntuìnod. good
controí
systoms
to
ìdontìly
shortluíís on
turgots.
lorlor- luymonts on kovurd Mousurìng Cpportunìty Assossmont As purt ol u
munco top ol buso ìndìvìduuí porlormunco to bo ìnlormìng rovurd
roíutod rutos uro mudo contrìbutìon cun bo rovurdod lor porlormunco hurmonìzu-
puy roíutod to vìthout dìllìcuít, no ovn ollorts puy docìsìons tìon tshop
ìndìvìduuí rosourco to dìroct vìthout muy bo bìusod, líoor und
ussossmonts vork ìncontìvo huvìng to ìnconsìstont stull)
ol mousuromont, provìdod. submìt to u or progrummo,
porlormunco. roíovunt ìn hìgh prossurod unsupportod us un
tochnoíogy lßk systom. by ovìdonco. uítornutìvo
munulucturìng. to vork
mousurod
schomos or
un on-
huncomont
ol u hìgh
duy ruto
systom.
TabIc 42.3 

kovurd munugomont 64l
Croup or Croups or Lncourugo Dìroct ßonusos cun Dopond on \hon toum
toum toums uro toum ìncontìvo muy bo roíutod olloctìvo vork vorkìng ìs
busìs puìd bonusos cooporutìon bo íìmìtod, cíouríy to tho mousuromont, ìmportunt
on tho busìs und ollort, doponds on ¡oìnt ollorts vhìch ìs not und toum
ol thoìr not too good vork ol tho group, uívuys ollorts
porlormunco ìndìvìduuíìzod. mousuromont líuctuutìons uvuìíubío, cun bo
us ìndìcutod or tho ìn ournìngs ìndìvìduuí uccurutoíy
by vork uvuìíubìíìty mìnìmìzod. ollort und mousurod
mousuromont ol cíour group contrìbutìon und
rutìngs or tho output or not ussossod,
uchìovomont productìvìty rocognìzod. us
ol turgots. turgots. un
uítornutìvo
to
ìndìvìduuí
lßk ìl thìs
ìs not
olloctìvo.
TabIc 42.3 
Strutogìc rovurd
Slralogic rovard nanagononl is aboul lho dovoIopnonl and inpIononlalion of
rovard slralogios and lho phiIosophios and guiding principIos lhal undorpin lhon. Il
providos ansvors lo lvo basic quoslions: 1) vhoro do vo vanl our rovard praclicos
lo bo in a fov yoars' lino` and 2) hov do vo inlond lo gol lhoro` Il lhoroforo doaIs
vilh bolh onds and noans. As an ond il doscribos a vision of vhal rovard procossos
viII IooI IiIo in a fov yoars' lino. As a noans, il shovs hov il is oxpoclod lhal lho
vision viII bo roaIizod.
Tho chaplor slarls vilh a dofinilion of rovard slralogy and an oxpIanalion of vhy il
is nocossary. Considoralion is lhon givon lo lho slrucluro and conlonl of rovard slralo-
gios. Tho guiding principIos for incIusion in a rovard slralogy aro discussod noxl and
lhis is foIIovod by a doscriplion of lho dovoIopnonl procoss and a nolo of lho criloria
for offoclivonoss. ExanpIos of rovard slralogy aro lhon givon and inpIononlalion
issuos aro assossod. Tho chaplor onds vilh an oxaninalion of lho inporlanl issuo of
Iino nanagononl capabiIily.
kL\AkD S1kA1LCY DLllNLD
Rovard slralogy is a docIaralion of inlonl lhal dofinos vhal lho organizalion vanls lo
do in lho Iongor lorn lo dovoIop and inpIononl rovard poIicios, praclicos and

procossos lhal viII furlhor lho achiovononl of ils businoss goaIs and nool lho noods of
ils slaIohoIdors.
Rovard slralogy providos a sonso of purposo and diroclion and a franovorI for
dovoIoping rovard poIicios, praclicos and procoss. Il is basod on an undorslanding of
lho noods of lho organizalion  ils onpIoyoos and hov lhoy can bosl bo salisfiod. Il
is aIso concornod vilh dovoIoping lho vaIuos of lho organizalion on hov poopIo
shouId bo rovardod and fornuIaling guiding principIos lhal viII onsuro lhal lhoso
vaIuos aro onaclod.
Rovard slralogy is undorpinnod by a rovard phiIosophy lhal oxprossos vhal lho
organizalion boIiovos shouId bo lho basis upon vhich poopIo aro vaIuod and
rovardod. Rovard phiIosophios aro oflon arlicuIalod as guiding principIos.
\HY HAVL A kL\AkD S1kA1LCY:
In lho vords of Brovn (2001): ´Rovard slralogy is uIlinaloIy a vay of lhinIing lhal
you can appIy lo any rovard issuo arising in your organizalion, lo soo hov you can
croalo vaIuo fron il.' Thoro aro four argunonls for dovoIoping rovard slralogios:
1. You nusl havo sono idoa vhoro you aro going, or hov do you Inov hov lo gol
lhoro, and hov do you Inov lhal you havo arrivod (if you ovor do)`
2. Iay cosls in nosl organizalions aro by far lho Iargosl ilon of oxponso ÷ lhoy can
bo 60 por conl and oflon nuch noro in Iabour-inlonsivo organizalions ÷ so
doosn'l il naIo sonso lo lhinI aboul hov lhoy shouId bo nanagod and invoslod
in lho Iongor lorn`
3. Thoro can bo a posilivo roIalionship bolvoon rovards, in lho broadosl sonso, and
porfornanco, so shouIdn'l vo lhinI aboul hov vo can slronglhon lhal IinI`
4. As Cox and IurcoII (1998) vrilo: ´Tho roaI bonofil in rovard slralogios Iios in
conpIox IinIagos vilh olhor hunan rosourco nanagononl poIicios and prac-
licos.' Isn'l lhis a good roason for dovoIoping a rovard slralogic franovorI
vhich indicalos hov rovard procossos viII bo associalod vilh HR procossos so
lhal lhoy aro cohoronl and nuluaIIy supporlivo`
1HL S1kLC1LkL Cl kL\AkD S1kA1LCY
Rovard slralogy shouId bo basod on a dolaiIod anaIysis of lho prosonl arrangononls
for rovard, vhich vouId incIudo a slalononl of lhoir slronglhs and voaInossos. This,
as suggoslod by lho CIID (2004o), couId laIo lho forn of a ´gap anaIysis', vhich
conparos vhal is boIiovod shouId bo happoning vilh vhal is happoning and
indicalos vhich ´gaps' nood lo bo fiIIod. A fornal for lho anaIysis is shovn in Figuro
43.1.
A diagnosis shouId bo nado of lho roasons for any gaps or probIons so lhal doci-
sions can bo nado on vhal noods lo bo dono lo ovorcono lhon. Il can lhon bo slruc-
lurod undor lho hoadings sol oul boIov:
1. A sicicmcni cj inicniicns ÷ lho rovard inilialivos lhal il is proposod shouId bo
laIon.
2. A rciicnclc ÷ lho roasons vhy lho proposaIs aro boing nado. Tho ralionaIo shouId
naIo oul lho businoss caso for lho proposaIs, indicalo hov lhoy viII nool busi-
noss noods and sol oul lho cosls and lho bonofils. Il shouId aIso rofor lo any
poopIo issuos lhal nood lo bo addrossod and hov lho slralogy viII doaI vilh
lhon.
3. A plcn ÷ hov, vhon and by vhon lho rovard inilialivos viII bo inpIononlod.
Tho pIan shouId indicalo vhal slops viII nood lo bo laIon and shouId laIo
accounl of rosourco conslrainls and lho nood for connunicalions, invoIvononl
and lraining. Tho priorilios allachod lo oach oIononl of lho slralogy shouId bo
indicalod and a linolabIo for inpIononlalion shouId bo dravn up. Tho pIan
shouId slalo vho viII bo rosponsibIo for lho dovoIopnonl and inpIononlalion of
lho slralogy.
4. A !cjiniiicn cj gui!ing principlcs ÷ lho vaIuos lhal il is boIiovod shouId bo adoplod
in fornuIaling and inpIononling lho slralogy.
1HL CCN1LN1 Cl kL\AkD S1kA1LCY
Rovard slralogy nay bo a broad-brush affair sinpIy indicaling lho gonoraI diroclion
in vhich il is lhoughl rovard nanagononl shouId go. AddilionaIIy or aIlornalivoIy,
rovard slralogy nay sol oul a Iisl of spocific inlonlions doaIing vilh parlicuIar
aspocls of rovard nanagononl.
ßroad-bru·h rcvard ·|ra|cg,
A broad-brush rovard slralogy nay connil lho organizalion lo lho pursuil of a lolaI
rovards poIicy. Tho basic ain nighl bo lo achiovo an approprialo baIanco bolvoon
financiaI and non-financiaI rovards. A furlhor ain couId bo lo uso olhor approachos
lo lho dovoIopnonl of lho onpIoynonl roIalionship and lho vorI onvironnonl,
vhich viII onhanco connilnonl and ongagononl and provido noro opporlunilios
for lho conlribulion of poopIo lo bo vaIuod and rocognizod.
Strutogìc rovurd 645
What shouId be happening What is happening What needs to be done
1. A total reward approach is adopted
which emphasises the significance of
both financial and non-financial
rewards.
2. Reward policies and practices are
developed within the framework of a
well-articulated strategy which is
designed to support the achievement
of business objectives and meet the
needs of stakeholders.
3. A job evaluation scheme is used which
properly reflects the values of the
organisation, is up-to-date with regard
to the jobs it covers and is non-
discriminatory.
4. Equal pay issues are given serious
attention. This includes the conduct
of equal pay reviews which lead to
action.
5. Market rates are tracked carefully so
that a competitive pay structure exists
which contributes to the attraction and
retention of high quality people.
6. Grade and pay structures are based
on job evaluation and market rate
analysis, appropriate to the
characteristics and needs of the
organization and its employees,
facilitate the management of
relativities, provide scope for rewarding
contribution, clarify reward and career
opportunities, constructed logically,
operate transparently and are easy to
manage and maintain.
7. Contingent pay schemes reward
contribution fairly and consistently,
support the motivation of staff and the
development of a performance culture,
deliver the right messages about the
values of the organization, contain a
clear 'line of sight' between
contribution and reward and are cost-
effective.
8. Performance management processes
contribute to performance
improvement, people development and
the management of expectations,
operate effectively throughout the
organization and are supported by line
managers and staff.
FIgurc 43.1 A rovard gap anaIysis 
FIgurc 43.1 
What shouId be happening What is happening What needs to be done
9. Employee benefits and pension
schemes meet the needs of
stakeholders and are cost-effective.
10. A flexible benefits approach is
adopted.
11. Reward management procedures exist
which ensure that reward processes
are managed effectively and that costs
are controlled.
12. Appropriate use is made of computers
(software and spreadsheets) to
assist in the process of reward
management.
13. Reward management aims and
arrangements are transparent and
communicated well to staff.
14. Surveys are used to assess the
opinions of staff about reward and
action is taken on the outcomes.
15. An appropriate amount of
responsibility for reward is devolved to
line managers.
16. Line managers are capable of carrying
out their devolved responsibilities well.
17. Steps are taken to train line managers
and provide them with support and
guidance as required.
18. HR has the knowledge and skills to
provide the required reward
management advice and services and
to guide and support line managers.
19. Overall, reward management
developments are conscious of the
need to achieve affordability and to
demonstrate that they are cost
effective.
20. Steps are taken to evaluate the
effectiveness of reward management
processes and to ensure that they
reflect changing needs.
ExanpIos of olhor broad slralogic ains incIudo:
inlroducing a noro inlogralod approach lo rovard nanagononl ÷ oncouraging
conlinuous porsonaI dovoIopnonl and spoIIing oul caroor opporlunilios,
dovoIoping a noro fIoxibIo approach lo rovard lhal incIudos lho roduclion of
arlificiaI barriors as a rosuIl of ovor-onphasis on grading and pronolion,
gonoraIIy rovarding poopIo according lo lhoir conlribulion,
supporling lho dovoIopnonl of a porfornanco cuIluro and buiIding IovoIs of
conpolonco, and
cIarifying vhal bohaviours viII bo rovardod and vhy.
Spccífíc rcvard íní|ía|ívc·
Tho soIoclion of rovard inilialivos and lho priorilios allachod lo lhon viII bo basod
on an anaIysis of lho prosonl circunslancos of lho organizalion and an assossnonl
of lho noods of lho businoss and ils onpIoyoos. Tho foIIoving aro oxanpIos of
possibIo spocific rovard inilialivos, ono or noro of vhich nighl foaluro in a rovard
slralogy:
lho ropIacononl of prosonl nolhods of conlingonl pay vilh a pay for conlribulion
schono,
lho inlroduclion of a nov grado and pay slrucluro, og a broad-gradod or caroor
faniIy slrucluro,
lho ropIacononl of an oxisling docayod ¡ob ovaIualion schono vilh a conpulor-
izod schono lhal noro cIoarIy rofIocls organizalionaI vaIuos,
lho inprovononl of porfornanco nanagononl procossos so lhal lhoy provido
bollor supporl for lho dovoIopnonl of a porfornanco cuIluro and noro cIoarIy
idonlify dovoIopnonl noods,
lho inlroduclion of a fornaI rocognilion schono,
lho dovoIopnonl of a fIoxibIo bonofils syslon,
lho conducl of oquaI pay roviovs vilh lho ob¡oclivo of onsuring lhal vorI of
oquaI vaIuo is paid oquaIIy,
connunicalion progrannos dosignod lo inforn ovoryono of lho rovard poIicios
and praclicos of lho organizalion,
lraining, coaching and guidanco progrannos dosignod lo incroaso Iino nanago-
nonl capabiIily (soo aIso lho Iasl soclion of lhis chaplor).
CLlDlNC lklNCllLLS
Guiding principIos dofino lho approach an organizalion laIos lo doaIing vilh rovard.
Thoy aro lho basis for rovard poIicios and provido guidoIinos for lho aclions
conlainod in lho rovard slralogy. Thoy oxpross lho rovard phiIosophy of lho organi-
zalion ÷ ils vaIuos and boIiofs aboul hov poopIo shouId bo rovardod.
Monbors of lho organizalion shouId bo invoIvod in lho dofinilion of guiding prin-
cipIos lhal can lhon bo connunicalod lo ovoryono lo incroaso undorslanding of vhal
undorpins rovard poIicios and praclicos. Hovovor, onpIoyoos viII suspond lhoir
¡udgononl of lho principIos unliI lhoy oxporionco hov lhoy aro appIiod. Whal nallors
lo lhon aro nol lho phiIosophios lhonsoIvos bul lho pay praclicos onanaling fron
lhon and lho nossagos aboul lho onpIoynonl ´doaI' lhal lhoy gol as a consoquonco.
Il is lho roaIily lhal is inporlanl, nol lho rholoric.
Rovard guiding principIos nay rofor lo concorns such as:
dovoIoping rovard poIicios and praclicos lhal supporl lho achiovononl of busi-
noss goaIs,
providing rovards lhal allracl, rolain and nolivalo slaff and hoIp lo dovoIop a
high porfornanco cuIluro,
nainlaining conpolilivo ralos of pay,
rovarding poopIo according lo lhoir conlribulion,
rocognizing lho vaIuo of aII slaff vho aro naIing an offoclivo conlribulion, nol
¡usl lho oxcoplionaI porfornors,
aIIoving a roasonabIo dogroo of fIoxibiIily in lho oporalion of rovard procossos
and in lho choico of bonofils by onpIoyoos,
dovoIving noro rosponsibiIily for rovard docisions lo Iino nanagors.
An oxanpIo of a slalononl of rovard phiIosophy and guiding principIos is givon in
Figuro 43.2.
DLVLLCllNC kL\AkD S1kA1LCY
Tho fornuIalion of rovard slralogy can bo doscribod as a procoss for dovoIoping and
dofining a sonso of diroclion. Tho nain phasos aro:
1. Tho  phaso, vhon rovard goaIs aro agrood, curronl poIicios and praclicos
assossod againsl lhon, oplions for inprovononl considorod and any changos
agrood.
2. Tho !cicilc! !csign phaso, vhon inprovononls and changos aro dolaiIod and any
changos loslod (piIol losling is inporlanl).
3. Tho jincl icsiing cn! prcpcrciicn phaso.
4. Tho implcmcniciicn phaso, foIIovod by ongoing roviov and nodificalion.
AIogicaI slop-by-slop nodoI for doing lhis is iIIuslralod in Figuro 43.3. This incorpo-
ralos anpIo provision for consuIlalion, invoIvononl and connunicalion vilh slaIo-
hoIdors, vho incIudo sonior nanagors as lho uIlinalo docision naIors as voII as
onpIoyoos and Iino nanagors.
In praclico, hovovor, lho fornuIalion of rovard slralogy is soIdon as IogicaI and
Iinoar a procoss as lhis. As oxpIainod in Chaplor 7, slralogios ovoIvo. Rovard slralo-
gisls havo lo rospond lo changos in organizalionaI roquirononls, vhich aro
happoning aII lho lino. Thoy nood lo lracI onorging lronds in rovard nanagononl
and nay nodify lhoir viovs accordingIy, as Iong as lhoy do nol Ioap loo hasliIy on lho
Ialosl bandvagon.
Reward phiIosophy PrincipIes
We will provide an innovative reward package Ìnnovative and differentiated policies and
that is valued by our staff and communicated benefits.
brilliantly to reinforce the benefits of working
for B&Q plc.
Reward investment will be linked to company Basic salaries will be competitive.
performance so that staff share in the success Total compensation will be upper quartile.
they create and, by going the extra mile, We share the success of B&Q with all
receive above average reward compared to employees.
local competitors. Ìncrease variable pay as a percentage of
overall to drive company performance.
Pay for performance.
Performance objectives must have line of
sight for individuals/team.
All parts of the total reward investment will Non-cash recognition is a powerful driver of
add value to the business and reinforce our business performance.
core purpose, goals and values. Pay can grow without promotion.
Rewards are flexible around individual
aspirations.
We will not discriminate on anything other
than performance.
FIgurc 43.2 Rovard phiIosophy and guiding principIos al B&Q
Il nay bo hoIpfuI lo sol oul rovard slralogios on papor for lho rocord and as a basis
for pIanning and connunicalion. Bul lhis shouId bo rogardod as no noro lhan a
pioco of papor lhal can bo lorn up vhon noods chango ÷ as lhoy viII ÷ nol a labIol of
slono.
CCMlCNLN1S Cl AN LllLC1lVL kL\AkD S1kA1LCY
Brovn (2001) has suggoslod lhal offoclivo rovard slralogios havo lhroo conpononls:
Strutogìc rovurd 65l
Analyse business
strategy and
business needs
Develop HR strategy
Analyse present
HR and reward
policies and
practices
Assess needs of
stakeholders - line
managers and
other employees
Consult and
involve senior
management
Consult, involve
and communicate
with employees
Brief and train
Final
communications
Develop and justify
reward strategy and
define guiding
principles
Prepare and
test plan
Ìmplement plan
Review and modify
as required
FIgurc 43.3 AnodoI of lho rovard slralogy dovoIopnonl procoss
1. Thoy havo lo havo cIoarIy dofinod goaIs and a voII-dofinod IinI lo businoss
ob¡oclivos.
2. Thoro havo lo bo voII-dosignod pay and rovard progrannos, laiIorod lo lho
noods of lho organizalion and ils poopIo, and consislonl and inlogralod vilh ono
anolhor.
3. Iorhaps nosl inporlanl and nosl nogIoclod, lhoro noods lo bo offoclivo and
supporlivo HR and rovard procossos in pIaco.
kL\AkD S1kA1LCY lklCkl1lLS
Tho CIID (2005d) survoy inlo rovard poIicy and praclico covoring 477 organizalions
vilh 1.5 niIIion onpIoyoos oslabIishod lhal 45 por conl of onpIoyors had a fornaI
rovard slralogy lhal vas aIignod lo lho businoss and hunan rosourco slralogios of lho
organizalion. Tho lop priorily, as shovn in Figuro 43.4, is supporling lho goaIs of lho
organizalion, foIIovod by rovarding, rocruiling and rolaining high porfornors.
0% 50% 100%
FIgurc 43.4 Rovard slralogy priorilios (: CIID 2005d)
Support business goals 79%
Reward high performers 64%
Recruit and retain high performers 62%
Link pay to the market 53%
Maintain market competitiveness 51%
Manage pay costs 50%
Ensure internal equity 41%
LXAMlLLS Cl kL\AkD S1kA1LClLS
Tho sourco of lho foIIoving oxanpIos of rovard slralogios is o-rovard (2004a).
ALCC^ UK
Agood oxanpIo of lho dovoIopnonl of a rovard slralogy is providod by AEGON UK,
lho insuranco group vilh 4,000 onpIoyoos. LiIo nany conpanios, AEGON UK's pay
syslons and supporling procossos such as ¡ob ovaIualion and porfornanco appraisaI
usod lo sland aIono, aparl fron olhor HR procossos. Tho conpany has adoplod a
noro hoIislic approach lo lho dovoIopnonl of ils nov rovard syslon ÷ vhich il caIIs
lho Humcn Rcscurccs lnicgrcic! Apprccc| ÷ so lhal fron ovory angIo slaff can IooI al
lho oIononls of rovard, pay nanagononl, porfornanco nanagononl and caroor
dovoIopnonl and obsorvo lhal lhoy aro consislonl and IinIod. Tho slalod ob¡oclivo of
lhis progranno is ´lo dovoIop a sol of HR procossos vhich aro inlogralod vilh oach
olhor and vilh lho businoss ob¡oclivos'. In olhor vords, AEGON UK ains lo onsuro
lhal lho procossos of rocruiling, rolaining and nolivaling poopIo, as voII as
noasuring lhoir porfornanco, aro in Iino vilh vhal lho businoss is lrying lo achiovo.
1|c Humcn Rcscurccs lnicgrcic! Apprccc| is undorpinnod by a conpoloncy franovorI.
Tho oslabIishod conpoloncios forn lho basis of lho rovisod HR procossos:
Rccruiimcni. conpoloncy basod vilh nuIli-assossnonl procossos as lho basic
approach.
Rcucr!. narIol drivon vilh ovoraII porfornanco diclaling ralo of progross of
saIarios vilhin broad bands ralhor lhon oxisling grados.
Pcrjcrmcncc mcncgcmcni. nol IinIod lo pay, conconlralod on porsonaI dovoIop-
nonl, ob¡oclivo solling and conpoloncy dovoIopnonl.
1rcining cn! !ctclcpmcni. largolod on Ioy conpoloncios and onphasizing soIf-
dovoIopnonl.
ôrvích Uníon ín·urancc
Prcgrcssicn, Pcrjcrmcncc cn! Pcq is lho nano givon lo Norvich Union Insuranco's nov
lolaI rovard slralogy. Il conprisos four nain oIononls:
1. Rcucr! ÷ saIary and bonofils, variabIo pay, aII-onpIoyoo sharo oplion pIan and
inconlivo avards.
2. Ccrccr jrcmcucr| ÷ noaningfuI ¡ob conlonl and caroor opporlunilios.
3. Pcrjcrmcncc ÷ chaIIonging vorI, rocognilion and brand supporling bohaviours.
4. Dctclcpmcni ÷ Ioarning opporlunilios and porsonaI dovoIopnonl.
As slalod in lho Norvich Union Insuranco's docunonlalion and iIIuslralod in Figuro
43.5:
1hoso ìnìtìutìvos. support our commìtmont to tho ono toum cuíturo rolíoctod ìn our
buíuncod scorocurd. 1ho lrogrossìon, lorlormunco & luy lrumovork ìs undorpìnnod by
tho brund vuíuos: lrogrossìvo, Shurod bonolìt und lntogrìty. 1hoso shouíd bo rolíoctod ìn
tho vuy vo ugroo ob¡octìvos und uso tho skìíís, knovíodgo und bohuvìours modoí.
lrogrossìon, lorlormunco & luy movos us tovurds ´totuí rovurd' vhoro lìnuncìuí rovurd
ìs ¡ust ono oíomont ol tho rovurd puckugo. Cthor oíomonts uro bonolìts, rocognìtìon ol
porlormunco, curoor opportunìtìos und porsonuí dovoíopmont. ln our modoí thoso uro
oxprossod through rovurd, porlormunco, curoor lrumovork und dovoíopmont. 1hìs gìvos
us tho tooís to hoíp buìíd NLl us u grout píuco to vork, vhìch uttructs und rotuìns quuíìty
stull.
Tho franovorI vas acconpaniod by a connilnonl fron sonior nanagononl:
lo rocognizo our bosl poopIo lhrough caroor opporlunilios and rovard pacIagos,
lo dovoIop aII slaff lo lhoir fuII polonliaI,
development
progression,
performance
& pay
career
framework
reward performance
pay
benefits
learning opportunities
personal development
meaningful job content
career opportunities
challenging work
recognition
brand supporting
behaviour
FIgurc 43.5 Tho Norvich Union Insuranco Irogrossion, Iorfornanco & Iay
franovorI
lo vidon caroor opporlunilios for aII,
lo provido nanagors vilh lho noans lo rocognizo and rovard porfornanco
IocaIIy.
ín|cgra|cd rcvard a| Kví|-fí|
ß&Ç
WiII AsliII, Rovard Managor of B&Q, a rolaiI chain vilh 25,000 onpIoyoos, vhich
conpIolod a slralogic rovard roviov in 2003, oxpIainod lo o-rovard lhal:
An ovorrìdìng thomo runnìng through our rovìov vus on tho dosìrubìíìty ol udoptìng u
strutogìc upprouch. lt vusn't u cuso ol ´íot's loííov tho bost pructìco', nor voro vo íurod
ìnto udoptìng tho íutost luds und lushìons. Appíyìng u bospoko systom - tukìng vhut
somoono hus dono boloro und uduptìng ìt to your orgunìzutìon - vìíí not push you uhoud
ol rìvuís. Cur omphusìs throughout tho tvo-your procoss vus on vhut's rìght lor tho busì-
noss.
'make the work worth it´
Organization design
Reward Performance management
Strategy,
vision and
values
What shouId I be doing?
How shouId I be doing it?
roles and accountabilities
communications and clarification
What's in it for me?
base pay
incentive pay
benefits
flexibility
recognition
How am I doing?
How can I grow?
learning and
development
performance culture
coaching
FIgurc 43.6 Inlogralod rovard nodoI ÷ KviI-fil
C|hcr cxampíc·
Olhor oxanpIos aro givon in TabIo 43.1 of lho vays in vhich organizalions havo
rospondod lo lho noods oslabIishod by lhoir businoss slralogy and lho businoss and
rovard issuos lhoy aro facing. In oach caso lho organizalions slarlod vilh broad-brush
slalononls aboul lhoir inlonlions and procoodod fron lhoro lo proparo aclion pIans
and inpIononlalion progrannos for spocific innovalions lhal had boon fuIIy ¡usli-
fiod by a cosl/bonofil anaIysis.
lMlLLMLN1lNC kL\AkD S1kA1LCY
FornuIalion is oasy, inpIononlalion is hard. In lho UK noro allonlion is nov boing
givon lo hov organizalions can naIo lhings happon. Il is rocognizod lhal a pragnalic
Organization ßusincss stratcgy ßusincss/rcward kcward stratcgy
issucs
lood dìstrìbutìon lncrouso ollìcìoncy loor toum vork ßroud-bundìng
lnnovuto lnlíoxìbío 1oum puy
Cost roductìon Nurrov locus Cuìn-shurìng
Lngìnoorìng Muìntuìn murkot shuro Skìíí-busod puy not Lìnk oporutìng píun
munulucturìng lncrouso compotìtìvo vorkìng und porlormunco
odgo lkl oníy lor munugors munugomont
Dovoíop moro lorlormunco kopíuco skìíí-busod
sophìstìcutod píunnìng uppruìsuí ìnolloctìvo puy
procossos lntroduco lkl lor uíí
lntornutìonuí bunk lntornutìonuí grovth 1runsuctìonuí ruthor kopíuco ìncromontuí
Lnhunco customor thun roíutìonuí upprouch scuíos
sorvìco lncromontuí scuíos lntroduco
Muìntuìn murkot luy lor ¡obs not poopío contrìbutìon-roíutod
íoudorshìp puy
kovìso porlormunco
munugomont
Curo provìdor, Crovth by ìmprovìng líoxìbìíìty Compotonco-roíutod
voíuntury soctor sorvìco doíìvory Cost ol poopío puy
Dovoíop nov pro¡octs Compotonco ol poopío ßroud-bundìng
\ìn moro contructs
TabIc 43.1 ExanpIos of rovard slralogios and lhoir dorivalion
approach is roquirod ÷ vhal's good is vhal vorIs. Il is aIso approcialod lhal inpIo-
nonlalion prosonls a nassivo chango nanagononl chaIIongo. Tho praclicaI advico on
nanaging changos in rovard syslons givon by IauI Cravon, Conponsalion Diroclor,
R&D, GIaxoSnilhKIino vas: ´Don'l oxpocl poopIo lo chango ovornighl and don'l lry
lo forco chango. Il is bollor lo roinforco dosirabIo bohaviour lhan lo allonpl lo onforco
a parlicuIar vay of doing lhings.' Tho advico givon by NicIi Donby, Iorfornanco and
Rovard Diroclor, Diagoo vas lo:
Ioop il sinpIo, bul sinpIo isn'l oasy,
onsuro lhal lho HR doparlnonl is nol dovoIoping poIicios and praclicos on ils
ovn, vhich aro lhon laggod as ¡usl anolhor HR inilialivo ralhor lhan sonolhing
vhich is ovnod by lho organizalion as a vhoIo,
nol onIy oxpIain lho pIannod changos, lho ralionaIo bohind lhon, and hov lhoy
affocl lho vorIforco, bul aIso connunicalo dolaiIs of vho vas invoIvod in lho
dovoIopnonl procoss so lhal unnocossary foars aro aIIayod.
WiII AsliII of B&Q had lhroo piocos of advico on inpIononlalion:
1. lho vaIuo of in-doplh onpIoyoo consuIlalion shouId novor bo undorvaIuod,
2. no inilialivo shouId bo inpIononlod vilhoul IooIing al lho rolurn on invosl-
nonl, and
3. ovaIualo lho offoclivonoss of progrannos and laIo aclion as roquirod.
kL\AkD S1kA1LCY AND LlNL MANACLMLN1
CAlAßlLl1Y
Tho lrond is lo dovoIvo noro rosponsibiIily for nanaging rovard lo Iino nanagors.
Sono viII havo lho abiIily lo rospond lo lho chaIIongo and opporlunily, olhors viII bo
incapabIo of carrying oul lhis rosponsibiIily vilhoul cIoso guidanco fron HR, sono
nay novor bo abIo lo copo. Managors nay nol aIvays do vhal HR oxpocls lhon lo do
and if conpoIIod lo, lhoy nay bo haIf-hoarlod aboul il. This puls a lronondous onus
on HR and rovard spociaIisls lo dovoIop Iino nanagononl capabiIily, lo inilialo
procossos lhal can roadiIy bo inpIononlod by Iino nanagors, lo pronolo undor-
slanding by connunicaling vhal is happoning, vhy il is happoning and hov il viII
affocl ovoryono, lo provido guidanco and hoIp vhoro roquirod and lo provido fornaI
lraining as nocossary.
lob ovuíuutìon
}ob ovaIualion is of fundanonlaI inporlanco in rovard nanagononl. Il providos lho
basis for achioving oquilabIo pay and is ossonliaI as a noans of doaIing vilh oquaI
pay for vorI of oquaI vaIuo issuos. In lho 1980s and 1990s ¡ob ovaIualion foII inlo
disropulo bocauso il vas aIIogod lo bo buroaucralic, lino-consuning and irroIovanl in
a narIol oconony vhoro narIol ralos diclalo inlornaI ralos of pay and roIalivilios.
Hovovor, as lho o-rovard 2003 survoy of ¡ob ovaIualion shovod, ¡ob ovaIualion is sliII
praclisod vidoIy and, indood, ils uso is oxlonding, nol Ioasl bocauso of lho prossuros
lo achiovo oquaI pay.
In lhis chaplor:
¡ob ovaIualion is dofinod,
lho difforonl lypos of ¡ob ovaIualion schonos aro doscribod,
infornalion on lho incidonco of ¡ob ovaIualion is providod,
lho uso of conpulors in ¡ob ovaIualion is discussod,
lho argunonls for and againsl ¡ob ovaIualion aro sunnarizod,
considoralion is givon lo criloria for choico,
lho procoss of dovoIoping a poinl-faclor schono is doscribod,
concIusions aro roachod aboul using ¡ob ovaIualion offoclivoIy.

lCß LVALLA1lCN DLllNLD
}ob ovaIualion is a syslonalic procoss for dofining lho roIalivo vorlh or sizo of ¡obs
vilhin an organizalion in ordor lo oslabIish inlornaI roIalivilios. Il providos lho basis
for dosigning an oquilabIo grado and pay slrucluro, grading ¡obs in lho slrucluro and
nanaging ¡ob and pay roIalivilios.
Aím·
}ob ovaIualion ains lo:
oslabIish lho roIalivo vaIuo or sizo of ¡obs (inlornaI roIalivilios) basod on fair,
sound and consislonl ¡udgononls,
produco lho infornalion roquirod lo dosign and nainlain oquilabIo and dofon-
sibIo grado and pay slrucluros,
provido as ob¡oclivo as possibIo a basis for grading ¡obs vilhin a grado slrucluro,
lhus onabIing consislonl docisions lo bo nado aboul ¡ob grading,
onabIo sound narIol conparisons vilh ¡obs or roIos of oquivaIonl conpIoxily and
sizo,
bo lransparonl ÷ lho basis upon vhich grados aro dofinod and ¡obs gradod shouId
bo cIoar,
onsuro lhal lho organizalion nools oquaI pay for vorI of oquaI vaIuo obIigalions.
Tho Iasl ain is inporlanl. In ils Gcc! Prcciicc Gui!c cn jc| |tcluciicn Sc|cmcs lrcc cj Scx
8ics lho EquaI Opporlunilios Connission (2003) slalos lhal: Ńon-discrininalory ¡ob
ovaIualion shouId Ioad lo a paynonl syslon vhich is lransparonl and vilhin vhich
vorI of oquaI vaIuo rocoivos oquaI pay rogardIoss of sox.'
Approachc·
}ob ovaIualion can bo anaIylicaI or non-anaIylicaI. }obs can aIso bo vaIuod by
roforonco lo lhoir narIol ralos ÷ ńarIol pricing'. Thoso approachos aro doscribod
boIov.
ANALY1lCAL lCß LVALLA1lCN
Dcfíncd
AnaIylicaI ¡ob ovaIualion is lho procoss of naIing docisions aboul lho vaIuo or sizo of
¡obs, vhich aro basod on an anaIysis of lho IovoI al vhich various dofinod faclors or
oIononls aro prosonl in a ¡ob in ordor lo oslabIish roIalivo ¡ob vaIuo. Tho sol of faclors
usod in a schono is caIIod lho jccicr plcn, vhich dofinos oach of lho faclors usod
(vhich shouId bo prosonl in aII lho ¡obs lo bo ovaIualod) and lho IovoIs vilhin oach
faclor. AnaIylicaI ¡ob ovaIualion is lho nosl connon approach lo ¡ob ovaIualion (il
vas usod by 89 por conl of lho organizalions vilh ¡ob ovaIualion rosponding lo lho o-
rovard 2003 survoy). Tho lvo nain lypos of anaIylicaI ¡ob ovaIualion schonos aro
poinl-faclor schonos and anaIylicaI nalching, as doscribod Ialor.
\aín fca|urc·
Tho nain foaluros of anaIylicaI ¡ob ovaIualion as oxpIainod boIov aro lhal il is syslon-
alic, ¡udgononlaI, concornod vilh lho porson nol lho ¡ob and doaIs onIy vilh inlornaI
roIalivilios.
S,·|cma|íc
AnaIylicaI ¡ob ovaIualion is syslonalic in lhal lho roIalivo vaIuo or ´sizo' of ¡obs is
dolorninod on lho basis of facluaI ovidonco on lho characlorislics of lho ¡obs lhal havo
boon anaIysod vilhin a slruclurod franovorI of criloria or faclors.
Iudgcmcn|aí
Hunan ¡udgononl has lo bo oxorcisod al a nunbor of poinls in lho ¡ob ovaIualion
procoss. AIlhough ¡ob ovaIualions aro basod on facluaI ovidonco, lhis has lo bo inlor-
prolod. Tho infornalion providod aboul ¡obs lhrough ¡ob anaIysis can sonolinos faiI
lo provido a cIoar indicalion of lho IovoIs al vhich donands aro prosonl in a ¡ob. Tho
dofinilions in lho faclor pIan nay nol procisoIy indicalo lho IovoI of donand lhal
shouId bo rocordod. }udgononl is roquirod in naIing docisions on lho IovoI and
lhoroforo, in a poinl-faclor or faclor conparison schono, lho scoro. Tho ain is lo naxi-
nizo ob¡oclivily bul il is difficuIl lo oIininalo a dogroo of sub¡oclivily. As lho EquaI
Opporlunilios Connission (EOC) slalos in ils Gcc! Prcciicc Gui!c cn jc| |tcluciicn
Sc|cmcs lrcc cj Scx 8ics 2003: Íl is rocognizod lhal lo a corlain oxlonl any assossnonl
of a ¡ob's lolaI donands roIalivo lo anolhor viII aIvays bo sub¡oclivo.'
A fundanonlaI ain of any procoss of ¡ob ovaIualion is lo provido franovorIs or
approachos lhal onsuro, as far as possibIo, lhal consislonl ¡udgononls aro nado basod
on ob¡oclivoIy assossod infornalion. To rofor lo an ovaIualion as ´¡udgononlaI' doos
nol nocossariIy noan lhal il is inaccuralo or unsound. Corrocl ¡udgononls aro
achiovod vhon lhoy aro nado vilhin a dofinod franovorI and aro basod on cIoar
ovidonco and sound roasoning. This is vhal a ¡ob ovaIualion schono can do if lho
schono is proporIy dosignod and proporIy appIiod.
lob ovuíuutìon 66l
Conccrncd witb tbc job not tbc pcrson
This is lho iron Iav of ¡ob ovaIualion. Il noans lhal vhon ovaIualing a ¡ob lho onIy
concorn is lho conlonl of lhal ¡ob in lorns of lho donands nado on lho ¡ob hoIdor.
Tho porfornanco of lho individuaI in lho ¡ob nusl nol bo laIon inlo accounl. Bul
il shouId bo nolod lhal vhiIo pcrjcrmcncc is oxcIudod, in loday's noro fIoxibIo organi-
zalions lho londoncy is for sono poopIo, ospociaIIy InovIodgo vorIors, lo havo fIox-
ibIo roIos. IndividuaIs nay havo lho scopo lo onIargo or onrich lhoir roIos and lhis
noods lo bo laIon inlo accounl vhon ovaIualing vhal lhoy do. RoIos cannol nocos-
sariIy bo soparalod fron lho poopIo vho carry lhon oul. Il is poopIo vho croalo vaIuo,
nol ¡obs.
Conccrncd witb intcrnaI rcIativitics
Whon usod vilhin an organizalion, ¡ob ovaIualion in lho lruo sonso as dofinod abovo
(io nol narIol pricing as doscribod Ialor) can onIy assoss lho roIalivo sizo of ¡obs in
lhal organizalion. Il is nol concornod vilh oxlornaI roIalivilios, lhal is, lho roIalionship
bolvoon lho ralos of pay of ¡obs in lho organizalion and lho ralos of pay of conpa-
rabIo ¡obs oIsovhoro (narIol ralos).
T,pc· of anaí,|ícaí ·chcmc·
Foint-factor cvaIuation
Ioinl-faclor schonos aro lho nosl connonIy usod lypo of anaIylicaI ¡ob ovaIualion.
Tho nolhodoIogy is lo broaI dovn ¡obs inlo faclors or Ioy oIononls roprosonling lho
donands nado by lho ¡ob on ¡ob hoIdors, lho conpoloncios roquirod and, in sono
casos, lho inpacl lho ¡ob naIos. Il is assunod lhal oach of lho faclors viII conlri-
bulo lo ¡ob sizo (io lho vaIuo of lho ¡ob) and is an aspocl of aII lho ¡obs lo bo ovaIualod
bul lo difforonl dogroos. Using nunoricaI scaIos, poinls aro aIIocalod lo a ¡ob undor
oach faclor hoading according lo lho oxlonl lo vhich il is prosonl in lho ¡ob. Tho sopa-
ralo faclor scoros aro lhon addod logolhor lo givo a lolaI scoro, vhich roprosonls ¡ob
sizo.
AnaIyticaI matcbing
LiIo poinl-faclor ¡ob ovaIualion, anaIylicaI nalching is basod on lho anaIysis of a
nunbor of dofinod faclors. Grado or IovoI profiIos aro producod vhich dofino lho
characlorislics of ¡obs in oach grado in a grado slrucluro in lorns of lhoso faclors. RoIo
profiIos aro producod for lho ¡obs lo bo ovaIualod sol oul on lho basis of anaIysis
undor lho sano faclor hoadings as lho grado profiIos. Tho roIo profiIos aro lhon
ńalchod' vilh lho rango of grado or IovoI profiIos lo oslabIish lho bosl fil and lhus
grado lho ¡ob.
AIlornalivoIy or addilionaIIy, roIo profiIos for ¡obs lo bo ovaIualod can bo nalchod
anaIylicaIIy vilh gonoric roIo profiIos for ¡obs lhal havo aIroady boon gradod.
AnaIylicaI nalching nay bo usod lo grado ¡obs foIIoving lho iniliaI ovaIualion of a
sufficionlIy Iargo and roprosonlalivo sanpIo of ´bonchnarI' ¡obs, io ¡obs lhal can bo
usod as a basis for conparison vilh olhor ¡obs. This can happon in Iargo organizalions
vhon il is boIiovod lhal il is nol nocossary lo go lhrough lho vhoIo procoss of poinl-
faclor ovaIualion for ovory ¡ob. This ospociaIIy appIios vhoro ´gonoric' roIos aro
concornod, io roIos lhal aro porfornod by a nunbor of ¡ob hoIdors, vhich aro osson-
liaIIy siniIar aIlhough lhoro nay bo ninor difforoncos. Whon lhis foIIovs a Iargo ¡ob
ovaIualion oxorciso as in lho NHS Agonda for Chango progranno, lho faclors usod in
lho grado and roIo profiIos viII bo lho sano as lhoso usod in lho poinl-faclor ¡ob
ovaIualion schono.
fac|or comparí·on
Tho originaI and nov IillIo usod faclor conparison nolhod conparod ¡obs faclor by
faclor using a scaIo of nonoy vaIuos lo provido a dirocl indicalion of lho ralo for lho
¡ob. Tho nain forn of faclor conparison nov in uso is gradualod faclor conparison,
vhich invoIvos conparing ¡obs faclor by faclor vilh a gradualod scaIo. Tho scaIo nay
havo onIy lhroo vaIuo IovoIs ÷ for oxanpIo Iovor, oquaI, highor ÷ and faclor scoros aro
nol nocossariIy usod.
Il is a nolhod oflon usod by lho indopondonl oxporls ongagod by EnpIoynonl
TribunaIs lo adviso on an oquaI pay cIain. Thoir ¡ob is sinpIy lo conparo ono ¡ob vilh
ono or lvo olhors, nol lo roviov inlornaI roIalivilios ovor lho vhoIo spoclrun of ¡obs
in ordor lo produco a ranI ordor. Indopondonl oxporls nay scoro lhoir ¡udgononls of
conparalivo IovoIs, in vhich caso gradualod faclor conparison rosonbIos lho poinl-
faclor nolhod, oxcopl lhal lho nunbor of IovoIs and rango of scoros aro Iinilod, and
lho faclors nay nol bo voighlod.
|ropríc|ar, brand·
Thoro aro a nunbor of ¡ob ovaIualion schonos offorod by nanagononl consuIlanls.
By far lho nosl popuIar is lho Hay Guido Charl IrofiIo Molhod, vhich is a faclor
conparison schono. Il usos lhroo broad faclors (Inov-hov, probIon soIving and
accounlabiIily) oach of vhich is furlhor dividod inlo sub-faclors, aIlhough lhoso
cannol bo scorod individuaIIy. Dofinilions of oach IovoI havo boon producod for oach
sub-faclor lo guido ovaIualors and onsuro consisloncy of appIicalion.
lob ovuíuutìon 663
NCN-ANALY1lCAL lCß LVALLA1lCN
Non-anaIylicaI ¡ob ovaIualion conparos vhoIo ¡obs lo pIaco lhon in a grado or a ranI
ordor ÷ lhoy aro nol anaIysod by roforonco lo lhoir oIononls or faclors. Non-anaIylicaI
schonos do nol nool lho roquirononls of oquaI vaIuo Iav. Tho nain non-anaIylicaI
schonos aro doscribod boIov.
Iob cía··ífíca|íon
This is lho nosl connon non-anaIylicaI approach. }obs as dofinod in ¡ob doscriplions
aro sIollod inlo grados in a hiorarchy by conparing lho vhoIo ¡ob vilh a grado
dofinilion and soIocling lho grado lhal providos lho bosl fil. Il is basod on an iniliaI
dofinilion of lho nunbor and characlorislics of lho grados inlo vhich ¡obs viII
bo pIacod. Tho grado dofinilions nay lhoroforo rofor lo such ¡ob characlorislics
as sIiII, docision naIing and rosponsibiIily. }ob doscriplions nay bo usod lhal in-
cIudo infornalion on lho prosonco of lhoso characlorislics bul lho characlorislics
aro nol assossod soparaloIy vhon conparing lho doscriplion vilh lho grado
dofinilion.
Iob ran|íng
WhoIo-¡ob ranIing is lho nosl prinilivo forn of ¡ob ovaIualion. Tho procoss invoIvos
conparing ¡obs vilh ono anolhor and arranging lhon in ordor of lhoir porcoivod
sizo or vaIuo lo lho organizalion. In a sonso, aII ovaIualion schonos aro ranIing
oxorcisos bocauso lhoy pIaco ¡obs in a hiorarchy. Tho difforonco bolvoon sinpIo
ranIing and anaIylicaI nolhods such as poinl-faclor raling is lhal ¡ob ranIing
doos nol allonpl lo quanlify ¡udgononls. Insload, vhoIo ¡obs aro conparod ÷ lhoy
aro nol broIon dovn inlo faclors or oIononls aIlhough, oxpIicilIy or inpIicilIy,
lho conparison nay bo basod on sono gonoraIizod concopl such as lho IovoI of
rosponsibiIily.
|aírcd comparí·on ran|íng
Iairod conparison ranIing is a slalislicaI lochniquo lhal is usod lo provido a noro
sophislicalod nolhod of vhoIo-¡ob ranIing. Il is basod on lho assunplion lhal il is
aIvays oasior lo conparo ono ¡ob vilh anolhor lhan lo considor a nunbor of ¡obs and
allonpl lo buiId up a ranI ordor by nuIlipIo conparisons.
Tho lochniquo roquiros lho conparison of oach ¡ob as a vhoIo soparaloIy vilh ovory
olhor ¡ob. If a ¡ob is considorod lo bo of a highor vaIuo lhan lho ono vilh vhich il is
boing conparod il rocoivos lvo poinls, if il is lhoughl lo bo oquaIIy inporlanl, il
rocoivos ono poinl, if il is rogardod as Ioss inporlanl, no poinls aro avardod. Tho
scoros aro addod for oach ¡ob and a ranI ordor is oblainod.
A sinpIifiod oxanpIo of a pairod conparison ranIing is shovn in Figuro 44.1.
Tho advanlago of pairod conparison ranIing ovor nornaI ranIing is lhal il is oasior
lo conparo ono ¡ob vilh anolhor ralhor lhan having lo naIo nuIli-conparisons. Bul
il cannol ovorcono lho fundanonlaI ob¡oclions lo any forn of vhoIo-¡ob ranIing ÷
lhal no dofinod slandards for ¡udging roIalivo vorlh aro providod and il is nol an
accoplabIo nolhod of assossing oquaI vaIuo. Thoro is aIso a Iinil lo lho nunbor of ¡obs
lhal can bo conparod using lhis nolhod ÷ lo ovaIualo 50 ¡obs roquiros 1,225 conpar-
isons.
Iairod conparisons can aIso bo usod anaIylicaIIy lo conparo ¡obs on a faclor by
faclor basis.
ín|crnaí bcnchmar|íng
InlornaI bonchnarIing is vhal poopIo oflon do inluilivoIy vhon lhoy aro dociding on
lho vaIuo of ¡obs, aIlhough il has novor boon dignifiod in lho ¡ob ovaIualion loxls as a
fornaI nolhod of ¡ob ovaIualion. Il sinpIy noans conparing lho ¡ob undor roviov
vilh any inlornaI ¡ob lhal is boIiovod lo bo proporIy gradod and paid, and pIacing lho
¡ob undor considoralion inlo lho sano grado as lhal ¡ob. Tho conparison is oflon
nado on a vhoIo-¡ob basis vilhoul anaIysing lho ¡obs faclor by faclor.
\ar|c| prícíng
MarIol pricing is lho procoss of assossing ralos of pay by roforonco lo lho narIol ralos
for conparabIo ¡obs and is ossonliaIIy oxlornaI bonchnarIing. SlriclIy spoaIing,
narIol pricing is nol a procoss of ¡ob ovaIualion in lho sonso lhal lhoso doscribod
Job a b c d e f TotaI Ranking
reference score
A - 0 1 0 1 0 2 5=
B 2 - 2 2 2 0 8 2
C 1 0 - 1 1 0 3 4
D 2 0 1 - 2 0 5 3
E 1 0 1 0 - 0 2 5=
F 2 2 2 2 2 - 10 1
FIgurc 44.1 Apairod conparison
abovo aro ÷ lhoy onIy doaI vilh inlornaI roIalivilios and aro nol diroclIy concornod
vilh narIol vaIuos, aIlhough in con¡unclion vilh a fornaI ¡ob ovaIualion schono,
oslabIishing narIol ralos is a nocossary parl of a progranno for dovoIoping a pay
slrucluro.
Hovovor, lho lorn ńarIol pricing' in ils oxlrono forn is usod lo donolo a procoss
of diroclIy pricing ¡obs on lho basis of oxlornaI roIalivilios vilh no rogard lo inlornaI
roIalivilios. This approach vas vidoIy pubIicizod in lho US in lho nid-1990s as a
roaclion lo vhal vas rogardod as loo nuch onphasis on inlornaI roIalivilios ('a ¡ob
is vorlh vhal lho narIol says il is vorlh') acconpaniod by ovor-buroaucralic
¡ob ovaIualion. Il sal aIongsido allonpls al dovoIoping broad-bandod pay slrucluros
(io slrucluros vilh a Iinilod nunbor of grados or bands). Tho approach has board
IovoI appoaI bocauso of lho focus on conpolilivonoss in roIalion lo lho narIolpIaco for
laIonl.
Tho accoplabiIily of narIol pricing is hoaviIy dopondonl on lho quaIily and dolaiI
of narIol nalching as voII as lho avaiIabiIily of robusl narIol dala. Il can lhoroforo
vary fron anaIysis of dala by ¡ob lilIos lo dolaiIod nalchod anaIysis coIIoclod lhrough
bospoIo survoys focusod on roaI narIol oquivaIonco. MarIol pricing can produco an
indicalion of inlornaI roIalivilios ovon if lhoso aro narIol drivon. Bul il can Ioad lo pay
discrininalion againsl vonon vhoro lho narIol has lradilionaIIy boon discrinina-
lory. Il doos nol salisfy UK oquaI pay IogisIalion.
MarIol pricing can bo dono fornaIIy by lho anaIysis of pubIishod pay survoys,
parlicipaling in ´pay cIubs', conducling spociaI survoys, oblaining lho advico of
rocruilnonl consuIlanls and agoncios and, noro doublfuIIy, by sludying advorliso-
nonls. In ils crudosl forn, narIol pricing sinpIy noans fixing lho ralo for a ¡ob al lho
IovoI nocossary lo rocruil or rolain sonoono. To avoid a succossfuI oquaI pay cIain,
any difforonco in pay bolvoon non and vonon carrying oul vorI of oquaI vaIuo
basod on narIol ralo considoralions has lo bo ób¡oclivoIy ¡uslifiod'.
1HL lNClDLNCL Cl lCß LVALLA1lCN
Dospilo considorabIo crilicisn in lho 1990s, ¡ob ovaIualion has nol dininishod in uso
in lho UK or in nany olhor counlrios. A survoy of ¡ob ovaIualion praclico in lho UK
(o-rovard, 2003) found lhal 44 por conl of lho 236 organizalions conlribuling lo lho
rosoarch had a fornaI ¡ob ovaIualion schono, and 45 por conl of lhoso vho did nol
havo such a schono inlondod lo inlroduco ono. AnaIylicaI schonos voro usod by 89
por conl of lho rospondonls, of vhich 70 por conl usod poinl-faclor raling. Tho nosl
popuIar non-anaIylicaI approach vas ¡ob cIassificalion. Schonos dovoIopod in-houso
('hono grovn' schonos) voro usod by 37 por conl of lho rospondonls.
A ´propriolary brand', io ono providod by consuIlanls, vas usod by 37 por conl of
rospondonls and 26 por conl usod a hybrid or laiIorod vorsion of a propriolary brand.
Tho Hay Guido Charl IrofiIo nolhod doninalod lho narIol (83 por conl of lho
propriolary brand schonos). Organizalions opling for a propriolary brand did so
bocauso of ils crodibiIily and, ospociaIIy vilh Hay, ils IinI lo a narIol ralo dalabaso.
Organizalions opling for a hono grovn approach did so bocauso lhoy boIiovod lhis
vouId onsuro lhal il couId bo shapod lo nool lho slralogic noods of lho organizalion
and fil ils lochnoIogy, slrucluro, vorI procossos and businoss ob¡oclivos. A ninorily
of rospondonls nonlionod lho scopo for aIigning lho schono vilh lhoir conpoloncy
franovorI.
CCMlL1Lk-ASSlS1LD lCß LVALLA1lCN
Conpulors can bo usod lo hoIp diroclIy vilh lho ¡ob ovaIualion procoss.
T,pc· of ·chcmc·
Thoro aro lvo lypos of conpulor-assislod syslons.
Firsl, lhoro aro jc| cnclqsis-|csc! sc|cmcs such as lhal offorod by LinI ConsuIlanls in
vhich lho ¡ob anaIysis dala is oilhor onlorod dirocl inlo lho conpulor or lransforrod lo
il fron a papor quoslionnairo. Tho conpulor soflvaro appIios prodolorninod ruIos
basod on an aIgorilhn lhal rofIocls lho organizalion's ovaIualion slandards lo convorl
lho dala inlo scoros for oach faclor and produco a lolaI scoro. Tho aIgorilhn ropIicalos
panoI ¡udgononls bolh on ¡ob faclor IovoIs and ovoraII ¡ob scoro.
SocondIy, lhoro aro inicrcciitc sc|cmcs using soflvaro such as lhal suppIiod by IiIal
UK (Gaugo) in vhich lho ¡ob hoIdor and his or hor nanagor sil in fronl of a IC and aro
prosonlod vilh a sorios of IogicaIIy inlorroIalod quoslions forning a quoslion lroo, lho
ansvors lo lhoso quoslions Ioad lo a scoro for oach of lho buiIl-in faclors in lurn and a
lolaI scoro.
Advan|agc· of compu|cr-a··í·|cd ¡ob cvaíua|íon
Conpulor-assislod ¡ob ovaIualion syslons can:
provido for groalor consisloncy ÷ lho sano inpul infornalion viII aIvays givo lho
sano oulpul rosuIl bocauso lho ¡udgononlaI franovorI on vhich lho schono is
basod (lho aIgorilhn) can bo appIiod consislonlIy lo lho inpul dala,
offor oxlonsivo dalabaso capabiIilios for sorling, anaIysing and roporling on lho
inpul infornalion and syslon oulpuls,
spood up lho ¡ob ovaIualion procoss onco lho iniliaI dosign is conpIolo.
Dí·advan|agc· of compu|cr-a··í·|cd ¡ob cvaíua|íon
Conpulor-assislod ¡ob ovaIualion syslons can IacI lransparoncy ÷ lho ovaIualion in
convonlionaI conpulor-assislod schonos is nado in a ´bIacI box' and il can bo diffi-
cuIl lo lraco lho connoclion bolvoon lho anaIysis and lho ovaIualion and lhoroforo lo
¡uslify lho scoro. This is nol such a probIon vilh inloraclivo schonos in vhich ¡ob
hoIdors parlicipalo in ovaIualions and lho IinI bolvoon lho ansvor lo a quoslion and
lho scoro can bo lracod in lho ´quoslion lroos'.
Conpulor-assislod ¡ob ovaIualion syslons can aIso appoar lo by-pass lho ovaIua-
lion procoss lhrough ¡oinl nanagononl/onpIoyoo panoIs, vhich is lypicaI in convon-
lionaI schonos, hovovor, lhis probIon can bo roducod if panoIs aro usod lo vaIidalo
lho conpulor-gonoralod scoros.
Ckl1LklA lCk CHClCL
Tho nain criloria for soIocling a ¡ob ovaIualion schono aro lhal il shouId bo:
Anclqiiccl ÷ il shouId bo basod on lho anaIysis and ovaIualion of lho dogroo lo
vhich various dofinod oIononls or faclors aro prosonl in a ¡ob.
1|crcug| in cnclqsis cn! ccpc|lc cj impcriicl cpplicciicn ÷ lho schono shouId havo
boon carofuIIy conslruclod lo onsuro lhal ils anaIylicaI franovorI is sound and
approprialo in lorns of aII lho ¡obs il has lo calor for. Il shouId aIso havo boon
loslod and lriaIIod lo chocI lhal il can bo appIiod inparliaIIy lo lhoso ¡obs.
Apprcpricic ÷ il shouId calor for lho parlicuIar donands nado on aII lho ¡obs lo bo
covorod by lho schono.
Ccmprc|cnsitc ÷ lho schono shouId bo appIicabIo lo aII lho ¡obs in lho organizalion
covoring aII calogorios of slaff, and lho faclors shouId bo connon lo aII lhoso ¡obs.
Thoro shouId lhoroforo bo a singIo schono lhal can bo usod lo assoss roIalivilios
across difforonl occupalions or ¡ob faniIios and lo onabIo bonchnarIing lo laIo
pIaco as roquirod.
1rcnspcrcni ÷ lho procossos usod in lho schono fron lho iniliaI roIo anaIysis
lhrough lo lho grading docision shouId bo cIoar lo aII concornod.
Ncn-!iscrimincicrq ÷ lho schono nusl nool oquaI pay for vorI of oquaI vaIuo
roquirononls.
A sunnary of lho various approachos lo ¡ob ovaIualion and lhoir advanlagos and
disadvanlagos is givon in TabIo 44.1.
TabIc 44.1 Conparison of approachos lo ¡ob ovaIualion
Scbcmc Cbaractcristics Advantagcs Disadvantagcs
loìnt-luctor An unuíytìcuí upprouch As íong us ìt ìs busod on Cun bo compíox und gìvo
rutìng ìn vhìch sopuruto luctors propor ¡ob unuíysìs, u spurìous ìmprossìon
uro scorod und uddod poìnt-luctor schomos ol scìontìlìc uccurucy -
togothor to produco u provìdo ovuíuutors vìth ¡udgomont ìs stìíí noodod
totuí scoro lor tho ¡ob dolìnod yurdstìcks thut ìn scorìng ¡obs. Not ousy
vhìch cun bo usod lor hoíp to ìncrouso tho to umond tho schomo us
compurìson und grudìng ob¡octìvìty und consìstoncy cìrcumstuncos, prìorìtìos
purposos. ol ¡udgomonts und roduco or vuíuos chungo.
tho ovor-sìmpíìlìod
¡udgomont mudo ìn non-
unuíytìcuí ¡ob ovuíuutìon.
1hoy provìdo u dolonco
uguìnst oquuí vuíuo cíuìms
us íong us thoy uro not ìn
thomsoívos dìscrìmìnutory.
Anuíytìcuí Crudo prolìíos uro ll tho mutchìng procoss 1ho mutchìng procoss
mutchìng producod vhìch dolìno ìs truíy unuíytìcuí und couíd bo moro
tho chuructorìstìcs ol ¡obs currìod out vìth grout suporlìcìuí und thoroloro
ìn ouch grudo ìn u grudo curo, thìs upprouch suspoct thun ovuíuutìon
structuro ìn torms ol u suvos tìmo by onubíìng through u poìnt-luctor
soíoctìon ol dolìnod tho ovuíuutìon ol u íurgo schomo. ln tho íuttor
luctors. koío prolìíos uro numbor ol ¡obs, upprouch thoro uro
producod lor tho ¡obs to ospocìuííy gonorìc onos, luctor íovoí dolìnìtìons
bo ovuíuutod sot out on to bo conductod quìckíy to guìdo ¡udgomonts
tho busìs ol unuíysìs undor und ìn u vuy vhìch und tho rosuítìng scoros
tho sumo luctor houdìngs shouíd sutìsly oquuí provìdo u busìs lor
us tho grudo prolìíos. vuíuo roquìromonts. runkìng und grudo
koío prolìíos uro ´mutchod' dosìgn vhìch ìs not tho
vìth tho rungo ol grudo cuso vìth unuíytìcuí
prolìíos to ostubíìsh tho mutchìng. Aíthough
bost lìt und thus grudo tho mutchìng on thìs busìs
¡ob. muy bo cíuìmod to bo
unuíytìcuí, ìt mìght bo
dìllìcuít to provo thìs ìn
un oquuí vuíuo cuso.
lob Non-unuíytìcuí - grudos Sìmpío to oporuto, Cun bo dìllìcuít to lìt
cíussìlìcutìon uro dolìnod ìn u structuro stundurds ol ¡udgomont compíox ¡obs ìnto u grudo
ìn torms ol tho íovoí ol vhon mukìng vìthout usìng ovor-
rosponsìbìíìtìos ìnvoívod compurìsons uro oíuboruto grudo
ìn u hìorurchy. lobs uro provìdod ìn tho shupo ol dolìnìtìons, tho
uííocutod to grudos by tho grudo dolìnìtìons. dolìnìtìons tond to bo so

Scbcmc Cbaractcristics Advantagcs Disadvantagcs
mutchìng tho ¡ob gonoruíìzod thut thoy uro
doscrìptìon vìth tho not much hoíp ìn
grudo doscrìptìon ovuíuutìng bordoríìno
t¡ob síottìng). cusos or mukìng
compurìsons botvoon
ìndìvìduuí ¡obs, doos
not provìdo u dolonco
ìn un oquuí vuíuo cuso.
kunkìng Non-unuíytìcuí - vhoío Lusy to uppíy und No dolìnod stundurds ol
¡ob compurìsons uro mudo undorstund. ¡udgomont, dìlloroncos
to píuco thom ìn runk botvoon ¡obs not
ordor. mousurod, doos not
provìdo u dolonco
ìn un oquuí
vuíuo cuso.
lntornuí lobs or roíos uro Sìmpío to oporuto, koíìos on u consìdorubío
bonchmurkìng compurod vìth lucìíìtutos dìroct umount ol ¡udgomont und
bonchmurk ¡obs thut compurìsons, ospocìuííy muy sìmpíy porpotuuto
huvo boon uííocutod ìnto vhon tho ¡obs huvo boon oxìstìng roíutìvìtìos,
grudos on tho busìs ol unuíysod ìn torms ol u dopondont on uccuruto
runkìng or ¡ob cíussìlìcutìon sot ol common crìtorìu. ¡ob/roío unuíysìs, muy
und píucod ìn vhutovor not provìdo u dolonco ìn
grudo provìdos un oquuí vuíuo cuso.
tho cíosost mutch ol ¡obs.
1ho ¡ob doscrìptìons muy
bo unuíytìcuí ìn tho
sonso thut thoy covor
u numbor ol stundurd
und dolìnod
oíomonts.
Murkot kutos ol puy uro uíìgnod ln íìno vìth tho boíìol koíìos on uccuruto
prìcìng to murkot rutos - ìntornuí thut ú ¡ob ìs vorth vhut murkot ruto ìnlormutìon
roíutìvìtìos uro thoroloro tho murkot suys ìt ìs vhìch ìs not uívuys
dotormìnod by roíutìvìtìos vorth'. Lnsuros thut puy uvuìíubío, roíutìvìtìos
ìn tho murkot píuco. Not ìs compotìtìvo. ìn tho murkot muy not
strìctíy u ¡ob ovuíuutìon proporíy rolíoct ìntornuí
schomo. roíutìvìtìos, puy
dìscrìmìnutìon
muy bo
porpotuutod.
TabIc 44.1 
\a|íng |hc choícc
Tho choico has lo bo nado by roforonco lo lho criloria roforrod lo oarIior and lo lho
advanlagos and disadvanlagos of lho aIlornalivo approachos Iislod abovo. Bul lho
ovorvhoIning proforonco for anaIylicaI schonos shovn by lho o-rovard survoy
suggosls lhal lho choico is fairIy obvious. Tho advanlagos of using a rocognizod
anaIylicaI approach lhal salisfios oquaI vaIuo roquirononls appoar lo bo ovor-
vhoIning. Ioinl-faclor schonos voro usod by 70 por conl of lhoso rospondonls and
olhors usod anaIylicaI nalching, oflon in con¡unclion vilh lho poinls schono.
Thoro is nuch lo bo said for adopling poinl-faclor nolhodoIogy as lho nain
schono, bul using anaIylicaI nalching in a supporling roIo lo doaI vilh Iargo
nunbors of gonoric roIos nol covorod in lho originaI bonchnarIing oxorciso.
AnaIylicaI nalching can bo usod lo aIIocalo gonoric roIos lo grados as parl of lho
nornaI ¡ob ovaIualion oporaling procoduro lo avoid having lo rosorl lo ¡ob ovaIualion
in ovory caso. Tho londoncy in nany organizalions is lo assign lo ¡ob ovaIualion a
supporling roIo of lhis naluro ralhor lhan aIIoving il lo doninalo aII grading doci-
sions and lhus invoIvo lho oxpondiluro of nuch lino and onorgy.
1HL CASL lCk AND ACAlNS1 lCß LVALLA1lCN
Thc ca·c for
Tho caso for proporIy dovisod and appIiod ¡ob ovaIualion, ospociaIIy anaIylicaI ¡ob
ovaIualion, is lhal:
il can naIo lho criloria againsl vhich ¡obs aro vaIuod oxpIicil and provido a basis
for slrucluring lho ¡udgononl procoss,
an oquilabIo and dofonsibIo pay slrucluro cannol bo achiovod unIoss a slruclurod
and syslonalic procoss is usod lo assoss ¡ob vaIuos and roIalivilios,
a IogicaI franovorI is roquirod vilhin vhich consislonl docisions can bo nado on
¡ob grados and ralos of pay,
lho faclor pIan and lho procoss of ¡ob ovaIualion can bo aIignod lo lho organiza-
lion's vaIuo syslon and conpoloncy franovorI and lhoroforo roinforco lhon as
parl of an inlogralod approach lo poopIo nanagononl,
anaIylicaI schonos provido lho bosl basis for achioving oquaI pay for vorI of
oquaI vaIuo and aro lho onIy accoplabIo dofonco in an oquaI pay caso,
a fornaI procoss of ¡ob ovaIualion is noro IiIoIy lo bo accoplod as fair and oqui-
labIo lhan infornaI or   approachos ÷ and lho dogroo of accoplabiIily viII bo
considorabIy onhancod if lho vhoIo procoss is lransparonl.
lob ovuíuutìon 67l
Thc ca·c agaín·|
Tho caso againsl ¡ob ovaIualion has boon prosonlod vociforousIy. Crilics onphasizo
lhal il can bo buroaucralic, infIoxibIo, lino-consuning and inapproprialo in loday's
organizalions. Oppononls such as NioIson (2002) laIo oxcoplion lo lho facl lhal ¡ob
ovaIualion is nol concornod vilh oxlornaI roIalivilios, vhich, lhoy cIain, aro vhal
roaIIy nallor. Schonos can docay ovor lino lhrough uso or nisuso. IoopIo Ioarn hov
lo nanipuIalo lhon lo achiovo a highor grado and lhis Ioads lo lho phonononon
Inovn as grado drifl ÷ upgradings lhal aro nol ¡uslifiod by a sufficionlIy significanl
incroaso in rosponsibiIily. }ob ovaIualors can faII inlo lho lrap of naIing c pricri ¡udgo-
nonls. Thoy nay ¡udgo lho vaIidily of a ¡ob ovaIualion oxorciso according lo lho
oxlonl lo vhich il corrosponds vilh lhoir proconcoplions aboul roIalivo vorlh. Tho
so-caIIod ´foIl-fair' losl is usod lo assoss lho accoplabiIily of ¡ob ovaIualions, bul a ranI
ordor is foIl lo bo fair if il roproducos lhoir nolion of vhal il oughl lo bo.
Thoso crilicisns nainIy focus on lho vay in vhich ¡ob ovaIualion is oporalod
ralhor lhan lho concopl of ¡ob ovaIualion ilsoIf. LiIo any olhor nanagononl loch-
niquo, ¡ob ovaIualion schonos can bo nisconcoivod and nisusod. And lho grado and
pay slrucluros dovoIopod lhrough ¡ob ovaIualion soIdon Iasl for noro lhan a fov
yoars and nood lo bo ropIacod or ad¡uslod lo ronody docay or rofIocl nov vays of
vorIing.
Thoso vho crilicizo ¡ob ovaIualion bocauso il is onIy concornod vilh inlornaI
roIalivilios faiI lo undorsland lhal ¡ob ovaIualion oxisls lo grado ¡obs, nol lo prico
lhon. Of courso, vhon dovoIoping lho pay slrucluros suporinposod on grado slruc-
luros il is nocossary lo laIo accounl of oxlornaI roIalivilios and lhis viII noan rocon-
ciIing lho difforonl nossagos providod by ¡ob ovaIualion and narIol ralo survoys. If
lho Iallor indicalo lhal allracling and rolaining good quaIily slaff is onIy foasibIo if
ralos of pay aro highor lhan lhoso indicalod by lho grading of lho ¡ob, lhon il nay bo
nocossary lo pay narIol suppIononls, bul lo avoid cIains lhal oquaI pay is nol boing
providod, lhoso nusl bo ob¡oclivoIy ¡uslifiod on lho basis of ovidonco on conpolilivo
ralos.
DLSlCNlNC A lClN1-lAC1Ck lCß LVALLA1lCN
SCHLML
Tho procoss of dosigning a ¡ob ovaIualion schono is donanding and lino-consuning,
as is slrossod by Arnslrong ci cl (2003). This soclion considors lho dosign and procoss
criloria and lho dosign and inpIononlalion progranno.
Dc·ígn and procc·· crí|cría
Il is nocossary lo dislinguish bolvoon lho dosign of a schono and lho procoss of opor-
aling il. EquaI pay considoralions havo lo bo laIon inlo accounl in bolh dosign and
procoss.
Dcsign principIcs
Tho dosign principIos aro lhal:
lho schono shouId bo basod on a lhorough anaIysis of lho ¡obs lo bo covorod and
lho lypos of donands nado on lhoso ¡obs lo dolornino vhal faclors aro appro-
prialo,
lho schono shouId faciIilalo inparliaI ¡udgononls of roIalivo ¡ob sizo,
lho faclors usod in lho schono shouId covor lho vhoIo rango of ¡obs lo bo ovaIu-
alod al aII IovoIs vilhoul favouring any parlicuIar lypo of ¡ob or occupalion and
vilhoul discrininaling on lho grounds of sox, raco, disabiIily or for any olhor
roason ÷ lho schono shouId fairIy noasuro foaluros of fonaIo-doninalod ¡obs as
voII as naIo-doninalod ¡obs,
lhrough lho uso of connon faclors and nolhods of anaIysis and ovaIualion, lho
schono shouId onabIo bonchnarIing lo laIo pIaco of lho roIalivilios bolvoon ¡obs
in difforonl funclions or ¡ob faniIios,
lho faclors shouId bo cIoarIy dofinod and difforonlialod ÷ lhoro shouId bo no
doubIo counling,
lho IovoIs shouId bo dofinod and gradualod carofuIIy,
sox bias nusl bo avoidod in lho choico of faclors, lho vording of faclor and IovoI
dofinilions and lho faclor voighlings ÷ chocIs shouId bo carriod oul lo idonlify
any bias.
Froccss principIcs
Tho procoss principIos aro lhal:
lho schono shouId bo lransparonl, ovoryono concornod shouId Inov hov il
vorIs ÷ lho basis upon vhich lho ovaIualions aro producod,
approprialo proporlions of vonon, lhoso fron olhnic ninorilios and poopIo vilh
disabiIilios shouId bo invoIvod in lho procoss of dovoIoping and appIying ¡ob
ovaIualion,
lho quaIily of roIo anaIysis shouId bo nonilorod lo onsuro lhal anaIysos produco
accuralo and roIovanl infornalion lhal viII inforn lho ¡ob ovaIualion procoss and
viII nol bo biasod,
consisloncy chocIs shouId bo buiIl inlo oporaling procoduros,
lho oulconos of ovaIualions shouId bo oxaninod lo onsuro lhal sox or any olhor
forn of bias has nol occurrod,
parlicuIar caro is nocossary lo onsuro lhal lho oulconos of ¡ob ovaIualion do nol
sinpIy ropIicalo lho oxisling hiorarchy ÷ il is lo bo oxpoclod lhal a ¡ob ovaIualion
oxorciso viII chaIIongo prosonl roIalivilios,
aII lhoso invoIvod in roIo anaIysis and ¡ob ovaIualion shouId bo lhoroughIy
lrainod in lho oporalion of lho schono and in hov lo avoid bias,
spociaI caro shouId bo laIon in dovoIoping a grado slrucluro foIIoving a ¡ob ovaI-
ualion oxorciso lo onsuro lhal grado boundarios aro pIacod approprialoIy and lhal
lho aIIocalion of ¡obs lo grados is nol in ilsoIf discrininalory,
lhoro shouId bo scopo for lho roviov of ovaIualions and for appoaIs againsl grad-
ings,
lho schono shouId bo nonilorod lo onsuro lhal il is boing oporalod proporIy and
lhal il is sliII fil for ils purposo.
Thc dc·ígn and ímpícmcn|a|íon programmc
Tho dosign and inpIononlalion of a poinl-faclor ¡ob ovaIualion schono can bo a
donanding and lino-consuning affair. In a Iargo organizalion il can laIo lvo yoars
or noro lo conpIolo a pro¡ocl. Evon in a snaII organizalion il can laIo sovoraI nonlhs.
Many organizalions sooI oulsido hoIp fron nanagononl consuIlanls or ACAS in
conducling lho progranno. An oxanpIo of a progranno is givon in Figuro 44.2.
Aclivilios 1 lo 6 forn lho iniliaI dosign phaso and aclivilios 7 lo 12 forn lho appIi-
calion of lho dosign and inpIononlalion phasos. FuII doscriplions of lhoso phasos
foIIov.
Thc ·chcmc dc·ígn programmc
Figuro 44.3 shovs lho slops roquirod lo dosign a poinl-faclor ¡ob ovaIualion schono.
Stcp 1. Dccidc to dcvcIop scbcmc
Tho docision lo dovoIop a nov poinl-faclor ¡ob ovaIualion schono foIIovs an anaIysis
of lho oxisling arrangononls, if any, for ¡ob ovaIualion, and a diagnosis of any prob-
Ions.
Stcp 2. Frcparc dctaiIcd projcct programmc
Tho dolaiIod pro¡ocl progranno couId bo sol oul in a bar charl, as iIIuslralod in Figuro
44.2.
Stcp 3. ScIcct, bricf and train dcsign tcam
Tho conposilion of lho dosign loan shouId havo boon dolorninod broadIy al Slop 1.
Monbors aro usuaIIy noninalod by nanagononl and lho slaff or union(s) (if lhoy
oxisl). Il is vory dosirabIo lo havo a roprosonlalivo nunbor of vonon and non and lho
na¡or olhnic groups onpIoyod in lho organizalion. Il is aIso nocossary lo appoinl a
faciIilalor.
Activity Month
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
1 Prepare initial factor plan
2 Test initial factor plan
3 Prepare final factor plan
4 Test final factor plan
5 Computerize
6 Test computerised version
7 Evaluate benchmark jobs
8 Conduct market rate survey
9 Design grade and pay structure
10 Evaluate remaining jobs
11 Define operating procedures
12 Ìmplement
FIgurc 44.2 AlypicaI ¡ob ovaIualion progranno
FIgurc 44.3 Dosign soquonco
Communicate
as required
throughout
project
1 Decide to develop
scheme
4 Formulate
communication
strategy
3 Select, brief and
train design team
2 Prepare project
programme
5 Ìdentify and define
factors
6 Define factor levels
to produce basic
unscored and
unweighted factor
plan
7 Select and analyse
test jobs
8 Test basic factor
plan
Amend initial factor
plan as necessary
10 Decide on
weighting
9 Develop scoring
model
11 Produce full factor
plan
12 Test the full factor
plan
Amend full factor plan
as necessary
13 Computerise as
required
14 Test computerised
system
Amend computerised
system as required
15 Apply scheme to
benchmark jobs
Stcp 4. FormuIatc communication stratcgy
Il is ossonliaI lo havo a connunicalion slralogy. Tho inlroduclion of a nov ¡ob ovaIu-
alion viII aIvays croalo oxpoclalions. Sono poopIo lhinI lhal lhoy viII inovilabIy
bonofil fron pay incroasos, olhors boIiovo lhal lhoy aro suro lo Ioso nonoy. Il has lo bo
oxpIainod carofuIIy, and ropoalodIy, lhal no ono shouId oxpocl lo gol noro and lhal no
ono viII Ioso. Tho slralogy shouId incIudo a proIininary connunicalion solling oul
vhal is proposod and vhy, and hov poopIo viII bo affoclod. Irogross roporls shouId
bo nado al niIoslonos lhroughoul lho progranno, for oxanpIo vhon lho faclor pIan
has boon dovisod. A finaI connunicalion shouId doscribo lho nov grado and pay
slrucluro and spoII oul oxaclIy vhal is lo happon lo poopIo vhon lho slrucluro is
inlroducod.
Stcp S. ldcntify and dcfinc factors
}ob ovaIualion faclors aro lho characlorislics or Ioy oIononls of ¡obs lhal aro usod lo
anaIyso and ovaIualo ¡obs in an anaIylicaI ¡ob ovaIualion schono. Tho faclors nusl bo
capabIo of idonlifying roIovanl and inporlanl difforoncos bolvoon ¡obs lhal viII
supporl lho croalion of a ranI ordor of ¡obs lo bo covorod by lho schono. Thoy shouId
appIy oquaIIy voII lo difforonl lypos of vorI, incIuding spociaIisls and gonoraIisls,
Iovor-IovoI and highor-IovoI ¡obs, and nol bo biasod in favour of ono sox or group.
AIlhough nany of lho ¡ob ovaIualion faclors usod across organizalions capluro
siniIar ¡ob oIononls (lhis is an aroa vhoro lhoro aro sono onduring lrulhs), lho lasI of
idonlifying and agrooing faclors can bo chaIIonging.
Tho o-rovard survoy (2003) oslabIishod lhal lho oighl nosl froquonlIy usod faclors
by lho rospondonls vilh anaIylicaI schonos voro:
1. KnovIodgo and sIiII.
2. Connunicalions and conlacls.
3. }udgononl and docision-naIing.
4. Inpacl.
5. IoopIo nanagononl.
6. Froodon lo acl.
7. WorIing onvironnonl.
8. RosponsibiIily for financiaI rosourcos.
Stcp 6. Dcfinc factor IcvcIs to producc tbc basic factor pIan
Tho faclor pIan is lho Ioy ¡ob ovaIualion docunonl. Il guidos ovaIualors on naIing
docisions aboul lho IovoIs of donand. Tho basic faclor pIan dofinos lho IovoIs vilhin
oach of lho soIoclod faclors. A docision has lo bo nado on lho nunbor of IovoIs (oflon
fivo, six or sovon), vhich has lo rofIocl lho rango of rosponsibiIilios and donands in
lho ¡obs covorod by lho schono.
Stcp 7. ScIcct and anaIysc tcst jobs
A snaII roprosonlalivo sanpIo of ¡obs shouId bo idonlifiod lo losl lho schono. A
lypicaI proporlion vouId bo aboul 10 por conl of lho ¡obs lo bo covorod. Thoso aro
lhon anaIysod in lorns of lho faclors.
Stcp 8. Tcst basic factor pIan
Tho faclors forning lho basic faclor pIan aro loslod by lho dosign loan on a roproson-
lalivo sanpIo of ¡obs. Tho ain of lhis iniliaI losl is lo chocI on lho oxlonl lo vhich lho
faclors aro approprialo, covor aII aspocls of lho ¡obs lo bo ovaIualod, aro non-discrin-
inalory, avoid doubIo counling and aro nol conprossod unduIy. A chocI is aIso nado
on IovoI dofinilions lo onsuro lhal lhoy aro vordod cIoarIy, gradualod proporIy and
covor lho vhoIo rango of donands appIicabIo lo lho ¡obs lo bo ovaIualod so lhal lhoy
onabIo consislonl ovaIualions lo bo nado.
Stcp 9. DcvcIop scoring modcI
Tho ain is lo dosign a poinl-faclor schono lhal viII oporalo fairIy and consislonlIy lo
produco a ranI ordor of ¡obs, basod on lho lolaI poinls scoro for oach ¡ob. Each IovoI in
lho faclor pIan has lo bo aIIocalod a poinls vaIuo so lhal lhoro is a scoring progrossion
fron lho Iovosl lo lho highosl IovoI.
Stcp 10. Dccidc on tbc factor wcigbting
Woighling is lho procoss of allaching noro inporlanco lo sono faclors lhan olhors
lhrough lho scoring syslon (oxpIicil voighling) or as a rosuIl of varialions in lho
nunbor of IovoIs or lho choico of faclors (inpIicil voighling).
Stcp 11. Frcparc fuII factor pIan
Tho oulcono of slagos 9 and 10 is lho fuII scorod and voighlod faclor pIan, vhich is
loslod in Slop 12.
Stcp 12. Tcst tbc fuII factor pIan
Tho fuII faclor pIan incorporaling a scoring schono and oilhor oxpIicil or inpIicil
voighling is loslod on lho sano ¡obs usod in lho iniliaI losl of lho drafl faclors. Furlhor
¡obs nay bo addod lo oxlond lho rango of lho losl.
Stcp 13. Computcrizc
Tho slops sol oul abovo viII produco a papor-basod schono and lhis is sliII lho nosl
popuIar approach. Tho o-rovard survoy (2003) found lhal onIy 28 por conl of rospon-
donls vilh ¡ob ovaIualion schonos usod conpulors lo aid ovaIualion. Bul fuII
conpulorizalion can offor nany advanlagos, incIuding groalor consisloncy, spood
and lho oIininalion of nuch of lho paporvorI. Thoro is aIso lho possibiIily of using
conpulors lo hoIp nanago and supporl lho procoss vilhoul using conpulors as a
subslilulo for grading dosign loans.
Conpulor-assislod schonos uso lho soflvaro providod by suppIiors, bul lho
syslon ilsoIf is dorivod fron lho papor-basod schono dovisod by lho nolhods sol
oul abovo. No ¡ob ovaIualion dosign loan is roquirod lo conducl ovaIualions, bul
il is nocossary lo sol up a roviov panoI lhal can vaIidalo and agroo lho oulconos
of lho conpulorizod procoss. No ono IiIos lo fooI lhal a docision aboul lhoir grado
has boon nado by a conpulor on ils ovn, and hard Iossons havo boon Ioarnl by
organizalions lhal havo ondod up vilh fuIIy aulonalod bul discrininalory
syslons.
Stcp 14. Tcst tbc computcrizcd scbcmc
Tho conpulorizod schono is loslod lo onsuro lhal il doIivors an accoplabIo ranI ordor.
Stcp 1S. AppIy and impIcmcnt
Whon lho finaI dosign of lho papor or conpulorizod schono has boon loslod as salis-
faclory lho appIicalion and inpIononlalion progranno can bogin.
CCNCLLSlCNS
Il couId bo cIainod lhal ovory lino a docision is nado on vhal a ¡ob shouId bo paid
roquiros a forn of ¡ob ovaIualion. }ob ovaIualion is lhoroforo unavoidabIo, bul il
shouId nol bo an inluilivo, sub¡oclivo and polonliaIIy biasod procoss. Tho issuo is hov
bosl lo carry il oul anaIylicaIIy, fairIy, syslonalicaIIy, consislonlIy, lransparonlIy and,
so far as possibIo, ob¡oclivoIy, vilhoul boing buroaucralic, infIoxibIo or rosourco-inlon-
sivo. Thoro aro fivo vays of doaIing vilh lhis issuo:
1. Uso a loslod and roIovanl anaIylicaI ¡ob ovaIualion schono lo inforn and supporl
lho procossos of dosigning grado slrucluros, grading ¡obs, nanaging roIalivilios
and onsuring lhal vorI of oquaI vaIuo is paid oquaIIy.
2. Ensuro lhal ¡ob ovaIualion is inlroducod and nanagod proporIy.
3. Considor using conpulors lo spood up procossing and docision-naIing vhiIo al
lho sano lino gonoraling noro consislonl ovaIualions and roducing buroaucracy.
4. Rocognizo lhal lhorough lraining and conlinuing guidanco for ovaIualors is
ossonliaI, as is connunicalion aboul lho schono, ils oporalion and ob¡oclivos lo
aII concornod.
5. Roviov lho oporalion of lho schono roguIarIy lo onsuro lhal il is nol docaying
and conlinuos lo bo approprialo and lruslod.
Murkot ruto unuíysìs
lLklCSL
To onsuro lhal pay IovoIs aro conpolilivo, il is nocossary lo lracI narIol ralos for lho
¡obs vilhin lho organizalion, ospociaIIy lhoso lhal aro parlicuIarIy vuInorabIo lo
narIol prossuros bocauso of scarcily faclors. This is sonolinos caIIod bonchnarIing.
}ob ovaIualion schonos can bo usod lo dolornino inlornaI roIalivilios, bul, in lhon-
soIvos, lhoy cannol prico ¡obs. To a Iargo oxlonl, pay IovoIs aro sub¡ocl lo narIol forcos
vhich havo lo bo laIon inlo accounl in fixing lho ralos for parlicuIar ¡obs. Sono
spociaIizod ¡obs nay nol bo sub¡ocl lo lho sano oxlornaI prossuros as olhors, bul il is
sliII nocossary lo Inov vhal offocl narIol ralos aro IiIoIy lo havo on lho pay slrucluro
as a vhoIo boforo dociding on inlornaI pay difforonliaIs vhich proporIy rofIocl IovoIs
of sIiII and rosponsibiIily. Il has aIso lo bo accoplod lhal narIol prossuros and nogoli-
alions affocl difforonliaIs vilhin lho firn.
1HL CCNCLl1 Cl 1HL MAkKL1 kA1L
Tho concopl of lho narIol ralo, ovon in lho IocaI Iabour narIol, is an inprociso ono.
Thoro is no such lhing as  narIol ralo, unIoss lhis is roprosonlod by a univorsaIIy
appIiod nalionaI pay scaIo, and such casos aro nov raro. Thoro is aIvays a rango of

ralos paid by difforonl onpIoyors, ovon for idonlicaI ¡obs, bocauso of difforonl pay
poIicios on hov lhoy vanl lhoir ralos lo conparo vilh lho narIol ralos. This is parlic-
uIarIy so in nanagoriaI ¡obs and olhor occupalions vhoro dulios can vary considor-
abIy, ovon if lho ¡ob lilIo is lho sano, and vhoro acluaI pay is IiIoIy lo bo slrongIy
infIuoncod by lho quaIily and vaIuo lo lho businoss of individuaIs. Il is lhoroforo
possibIo lo uso pay survoys onIy lo provido a broad indicalion of narIol ralos.
}udgononl has lo bo usod in inlorproling lho rosuIls of spociaI onquirios or lho dala
fron pubIishod survoys. And lhoro is oflon pIonly of scopo for soIocling ovidonco
vhich supporls vhalovor caso is boing advancod.
1HL lNlCkMA1lCN kLÇLlkLD
Whon naIing narIol conparisons, lho ain shouId bo lo:
oblain accuralo and roprosonlalivo dala covoring baso pay, bonusos and bonofils,
conparo IiIo vilh IiIo in lorns of lho lypo and sizo of lho ¡ob and lho lypo of
organizalion ÷ lhis is lho procoss of ´¡ob nalching',
oblain up-lo-dalo infornalion,
inlorprol dala in lho Iighl of lho organizalion's circunslancos and noods,
prosonl dala in a vay lhal indicalos lho aclion roquirod.
lCß MA1CHlNC
Tho ain in conducling a pay survoy is lo conparo IiIo vilh IiIo ÷ lho procoss of
¡ob nalching. Tho various nolhods of ¡ob nalching in asconding ordor of accuracy
aro:
jc| iiilc ÷ oflon vory nisIoading,
|ricj (iuc cr i|rcc lincs) !cscripiicn cj jc| cn! lctcl cj rcspcnsi|iliiq ÷ lhis providos
bollor guidanco for nalching ¡obs bul sliII Ioavos nuch scopo for inaccuracy,
ccpsulc jc| !cscripiicns vhich dofino lho ¡ob and ils dulios in lvo or lhroo hundrod
vords, sono indicalion boing givon of lho sizo of lho ¡ob in such lorns as
rosourcos conlroIIod ÷ lhoso can provido a bollor basis for ¡ob nalching bul nay
sliII nol produco lho idoaI dogroo of accuracy,
jull jc| !cscripiicns vhich provido noro dolaiIs aboul lho ¡ob bul donand a consid-
orabIo anounl of offorl in naIing lho conparisons,
jc| ctcluciicn can bo usod in supporl of a ¡ob doscriplion lo oblain roasonabIy
accuralo infornalion on conparalivo ¡ob sizos, bul il is vory lino consuning
unIoss il is dono lhrough lho UK survoys run on lhis basis by firns such as Hay
and Wyall.
lkLSLN1A1lCN Cl DA1A
Dala can bo prosonlod in lvo vays:
1. Mccsurcs cj ccnircl icn!cncq:
÷ arilhnolic noan (avorago),
÷ nodian ÷ lho niddIo ilon in a dislribulion of individuaI ilons, lhis is lho nosl
connonIy usod noasuro bocauso il avoids lho dislorlions lo vhich arilhnolic
avoragos aro prono.
2. Mccsurcs cj !ispcrsicn:
÷ uppor quarliIo ÷ lho vaIuo abovo vhich 25 por conl of lho individuaI vaIuos
faII,
÷ Iovor quarliIo ÷ lho vaIuo boIov vhich 25 por conl of lho individuaI vaIuos
faII,
÷ inlorquarliIo rango ÷ lho difforonco bolvoon lho uppor and Iovor quarliIos.
SCLkCLS Cl lNlCkMA1lCN
Tho foIIoving aro lho sourcos of infornalion avaiIabIo on narIol ralos:
pubIishod survoys,
spociaI survoys,
cIub survoys,
advorlisononls.
Thoso aro doscribod boIov and a conparison bolvoon lhon and olhor sourcos is
nado in TabIo 45.1.
|ubíí·hcd ·urvc,·
Thoro is a vido rango of pubIishod survoys vhich oilhor coIIocl gonoraI infornalion
aboul nanagoriaI saIarios or covor lho pay for spociaIisl profossionaI, lochnicaI or
Murkot ruto unuíysìs 683
offico ¡obs. Tho gonoraI survoys vhich aro avaiIabIo óvor lho counlor' incIudo lhoso
pubIishod by Rovard, MonIs IubIicalions and Ronunoralion Econonics. Inconos
Dala Sorvicos pubIishos a Dirccicrq cj Sclcrq Surtcqs vhich is a consunor's guido lo
aII lho na¡or survoys.
Whon using a pubIishod survoy il is nocossary lo chocI on:
lho infornalion providod,
lho sizo and conposilion of lho parlicipanls,
lho quaIily of lho ¡ob nalching infornalion,
lho oxlonl lo vhich il covors lho ¡obs for vhich infornalion is roquirod,
lho dogroo lo vhich il is up lo dalo,
hov voII dala aro prosonlod.
IubIishod survoys aro a quicI and nol loo oxponsivo vay of golling infornalion. Bul
lhoro nay bo probIons in ¡ob nalching and lho infornalion nay bo sonovhal oul of
dalo.
Spccíaí ·urvc,·
SpociaI survoys can bo ´do il yoursoIf' affairs or lhoy can bo conduclod for you by
nanagononl consuIlanls. Tho Iallor nolhod cosls noro bul il savos a Iol of lino and
lroubIo and sono organizalions nay bo noro viIIing lo rospond lo an onquiry fron a
ropulabIo consuIlanl.
SpociaI survoys can bo conduclod as foIIovs:
1. Docido vhal infornalion is vanlod.
2. Idonlify lho ´bonchnarI' ¡obs for vhich conparalivo pay dala aro roquirod. This
couId havo boon dono as parl of a ¡ob ovaIualion oxorciso.
3. Iroduco capsuIo ¡ob doscriplions for lhoso ¡obs.
4. Idonlify lho organizalions lhal aro IiIoIy lo havo siniIar ¡obs.
5. Conlacl lhoso organizalions and invilo lhon lo parlicipalo. Il is usuaI lo say lhal
lho survoy findings viII bo dislribulod lo parlicipanls (lhis is lho quid pro quo)
and lhal individuaI organizalions viII nol bo idonlifiod.
6. Irovido parlicipanls vilh a forn lo conpIolo logolhor vilh nolos for guidanco
and capsuIo ¡ob doscriplions.
7. AnaIyso lho rolurnod forns and dislribulo a sunnary of lho rosuIls lo parlici-
panls.
SpociaI survoys can ¡uslify lho lino and lroubIo, or oxponso, by producing usofuIIy
conparabIo dala. Il nay, hovovor, bo difficuIl lo gol a suilabIo nunbor of parlicipanls
lo laIo parl, oilhor bocauso organizalions cannol bo bolhorod or bocauso lhoy aro
aIroady nonbors of a survoy cIub or laIo parl in a pubIishod survoy.
Cíub ·urvc,·
CIub survoys aro conduclod by a nunbor of organizalions vho agroo lo oxchango
infornalion on pay in accordanco vilh a slandard fornal and on a roguIar basis.
Thoy havo aII lho advanlagos of spociaI survoys pIus lho addilionaI bonofils of saving
a considorabIo anounl of lino and providing roguIar infornalion. Il is voII vorlh
¡oining ono if you can. If a suilabIo cIub doos nol oxisl, you couId aIvays lry lo slarl
ono, bul lhis laIos considorabIo offorl.
Advcr|í·cmcn|·
Many organizalions roIy on lho saIary IovoIs pubIishod in rocruilnonl advorliso-
nonls. Bul lhoso can bo vory nisIoading as you viII nol nocossariIy achiovo a good
nalch and lho quolod saIary nay nol bo lho sano as vhal is finaIIy paid. Hovovor,
aIlhough il is highIy suspocl, dala fron advorlisononls can bo usod lo suppIononl
olhor noro roIiabIo sourcos.
C|hcr mar|c| ín|cííígcncc
Olhor narIol inloIIigonco can bo oblainod fron lho pubIicalions of Inconos Dala
Sorvicos and InduslriaI RoIalions Sorvicos. This nay incIudo usofuI infornalion on
lronds in lho ´going ralo' for gonoraI, across-lho-board pay incroasos vhich can bo
usod vhon dociding on vhal sorl of upIifl, if any, is roquirod lo pay scaIos.
U·íng ·urvc, da|a
Tho uso of narIol survoy dala as a guido on pay IovoIs is a procoss basod on ¡udgo-
nonl and conproniso. Difforonl sourcos nay produco difforonl indicalions of narIol
ralo IovoIs. As a rosuIl you nay havo lo produco vhal nighl bo doscribod as a
´dorivod' narIol ralo basod on an assossnonl of lho roIalivo roIiabiIily of lho dala.
This vouId slriIo a roasonabIo baIanco bolvoon lho conpoling norils of lho difforonl
sourcos usod. This is sonolhing of an inluilivo procoss.
Onco aII lho dala avaiIabIo havo boon coIIoclod and prosonlod in lho nosl accossibIo
nannor possibIo (io ¡ob by ¡ob for aII lho aroas lho slrucluro is lo covor), roforonco
poinls can bo dolorninod for oach pay rango in a gradod slrucluro as doscribod in
Chaplor 46. This procoss viII laIo accounl of lho pIaco in lho narIol lho businoss
vishos lo occupy, io ils narIol ´slanco' or ´posluro'.
TabIc 45.1 Sunnary of sourcos of narIol dala
Sourcc ßricf dcscription Advantagcs Disadvantagcs
Conoruí nutìonuí Avuìíubío lor purchuso \ìdo covorugo, roudìíy kìsk ol ìmprocìso ¡ob
pubíìshod survoys - provìdo un ovoruíí uvuìíubío, contìnuìty mutchìng, ìnsullìcìontíy
pìcturo ol puy íovoís lor uííovs trond unuíysos spocìlìc, quìckíy out ol
dìlloront occuputìons ìn ovor tìmo, oxport duto.
nutìonuí und rogìonuí provìdors.
íubour murkots.
Locuí pubíìshod Avuìíubío lor purchuso locus on íocuí íubour kìsk ol ìmprocìso ¡ob
survoys - provìdo un ovoruíí murkot ospocìuííy lor mutchìng, ìnsullìcìontíy
pìcturo ol puy íovoís lor udmìnìstrutìvo stull und spocìlìc, quìckíy out ol
dìlloront occuputìons ìn munuuí vorkors. duto, provìdors muy not
tho íocuí íubour murkot. huvo oxportìso ìn puy
survoys.
Soctor survoys Avuìíubío lor purchuso locus on u soctor kìsk ol ìmprocìso ¡ob
- provìdo dutu on u vhoro puy íovoís muy mutchìng, ìnsullìcìontíy
soctor such us churìtìos. dìllor lrom nutìonuí spocìlìc, quìckíy out ol
rutos, douí vìth duto.
purtìcuíur cutogorìos ìn
dopth.
lndustrìuí survoys Survoys, olton locus on un ìndustry, lob mutchìng muy stìíí
conductod by ompíoyor douí vìth purtìcuíur not bo ontìroíy procìso,
und trudo ussocìutìons cutogorìos ìn dopth, quìckíy out ol duto.
on ¡obs spocìlìc to un quuíìty ol ¡ob mutchìng
ìndustry. muy bo bottor thun
gonoruí or soctor
survoys.
Spocìuí survoys Survoys spocìuííy locusod, rousonubíy 1ukos tìmo und troubío,
conductod by un good ¡ob mutchìng, muy bo dìllìcuít to got
orgunìzutìon. controí ol purtìcìpunts, purtìcìputìon, sumpío
controí ol unuíysìs sìzo muy thoroloro bo
mothodoíogy. ìnudoquuto.
luy cíubs Croups ol ompíoyors locusod, procìso ¡ob Sumpío sìzo muy bo too
vho roguíuríy mutchìng, controí ol smuíí, ìnvoívo u
oxchungo dutu on puy purtìcìpunts, controí ol consìdorubío umount ol
íovoís. unuíysìs mothodoíogy, udmìnìstrutìon, muy bo
roguíur dutu, tronds dìllìcuít to muìntuìn
dutu, moro ìnlormutìon onthusìusm ol
muy bo uvuìíubío on purtìcìpunts.
bonolìts und puy
poíìcìos.

TabIc 45.1 
Sourcc ßricf dcscription Advantagcs Disadvantagcs
lubíìshod dutu Dutu on sottíomonts koudìíy uccossìbío. Muìníy ubout
ìn ¡ournuís und puy íovoís uvuìíubío sottíomonts und tronds
lrom lDS or lkS, und íìttío spocìlìc voíí
on nutìonuí tronds ìn mutchod ìnlormutìon
ournìngs lrom tho Nov on puy íovoís lor
Lurnìngs Survoy. ìndìvìduuí ¡obs.
lob luy dutu obtuìnod lrom koudìíy uccossìbío, lob mutchìng vory
udvortìsomonts ¡ob udvortìsomonts. hìghíy vìsìbío tto ìmprocìso, puy
ompíoyoos us voíí us ìnlormutìon muy bo
ompíoyors), up to duto. mìsíoudìng.
Munugomont luy dutu obtuìnod lrom ßusod on voíí- Cníy obtuìnubío lrom
consuítunts' tho dutubusos rosourchod und spocìlìc consuítunts.
dutubusos muìntuìnod by mutchod dutu.
munugomont
consuítunts.
Anuíysìs ol luy dutu dorìvod lrom lmmodìuto dutu. Dutu rundom und cun
rocruìtmont dutu unuíysìs ol puy íovoís bo mìsíoudìng bocuuso
roquìrod to rocruìt stull. ol smuíí sumpío.
Cthor murkot luy dutu obtuìnod lrovìdo good lmprocìso, not
ìntoííìgonco lrom ìnlormuí buckground. roguíuríy uvuìíubío.
contucts or notvorks.
Crudo und puy structuros
Grado and pay slrucluros aro an inporlanl parl of rovard syslons. If proporIy
dosignod and nainlainod lhoy provido a IogicaIIy dosignod franovorI vilhin vhich
an organizalion's pay poIicios can bo inpIononlod. Thoy onabIo lho organizalion lo
dolornino vhoro ¡obs shouId bo pIacod in a hiorarchy, dofino pay IovoIs and lho scopo
for pay progrossion, and provido lho basis upon vhich roIalivilios can bo nanagod,
oquaI pay achiovod and lho procossos of noniloring and conlroIIing lho inpIononla-
lion of pay praclicos can laIo pIaco. A grado slrucluro can aIso sorvo as a nodiun
lhrough vhich lho organizalion connunicalos lho caroor and pay opporlunilios
avaiIabIo lo onpIoyoos.
CkADL S1kLC1LkL DLllNLD
A grado slrucluro consisls of a soquonco or hiorarchy of grados, bands or IovoIs inlo
vhich groups of ¡obs lhal aro broadIy conparabIo in sizo aro pIacod. Thoro nay bo a
singIo slrucluro lhal conlains grados or bands and vhich is dofinod by lhoir nunbor
and vidlh (vidlh is lho scopo lho grado or band providos for pay progrossion).
AIlornalivoIy lho slrucluro nay bo dividod inlo a nunbor of ¡ob or caroor faniIios
consisling of groups of ¡obs vhoro lho ossonliaI naluro and purposo of lho vorI aro
siniIar bul lho vorI is carriod oul al difforonl IovoIs.

lAY S1kLC1LkL DLllNLD
A pay slrucluro dofinos lho difforonl IovoIs of pay for ¡obs or groups of ¡obs by rofor-
onco lo lhoir roIalivo inlornaI vaIuo as dolorninod by ¡ob ovaIualion, lo oxlornaI roIa-
livilios as oslabIishod by narIol ralo survoys and, sonolinos, lo nogolialod ralos for
¡obs. Il providos scopo for pay progrossion in accordanco vilh porfornanco, conpo-
lonco, conlribulion or sorvico.
Thoro nay bo a singIo pay slrucluro covoring lho vhoIo organizalion or lhoro nay
bo ono slrucluro for slaff and anolhor for nanuaI vorIors, bul lhis is boconing Ioss
connon. Thoro has in roconl yoars boon a lrond lovards ´harnonizing' lorns and
condilions bolvoon difforonl groups of slaff as parl of a novo lovards singIo slalus.
This has boon parlicuIarIy ovidonl in nany pubIic soclor organizalions in lho UK,
supporlod by nalionaI agroononls on ´singIo slalus'. Exoculivo diroclors aro sono-
linos lroalod soparaloIy vhoro rovard poIicy for lhon is docidod by a ronunoralion
connilloo of non-oxoculivo diroclors.
Agrado slrucluro boconos a pay slrucluro vhon pay rangos, bracIols or scaIos aro
allachod lo oach grado, band or IovoI. In sono broad-bandod slrucluros, as doscribod
boIov, roforonco poinls and pay zonos nay bo pIacod vilhin lho bands and lhoso
dofino lho rango of pay for ¡obs aIIocalod lo oach band.
CLlDlNC lklNCllLLS lCk CkADL AND lAY
S1kLC1LkLS
Grado and pay slrucluros shouId:
bo approprialo lo lho cuIluro, characlorislics and noods of lho organizalion and ils
onpIoyoos,
faciIilalo lho nanagononl of roIalivilios and lho achiovononl of oquily, fairnoss,
consisloncy and lransparoncy in nanaging gradings and pay,
bo capabIo of adapling lo prossuros arising fron narIol ralo changos and sIiII
shorlagos,
faciIilalo oporalionaI fIoxibiIily and conlinuous dovoIopnonl,
provido scopo as roquirod for rovarding porfornanco, conlribulion and incroasos
in sIiII and conpolonco,
cIarify rovard, IaloraI dovoIopnonl and caroor opporlunilios,
bo conslruclod IogicaIIy and cIoarIy so lhal lho basis upon vhich lhoy oporalo can
roadiIy bo connunicalod lo onpIoyoos,
onabIo lho organizalion lo oxorciso conlroI ovor lho inpIononlalion of pay
poIicios and budgols.
1YlLS Cl CkADL AND lAY S1kLC1LkL
Tho lypos of pay slrucluros as doscribod boIov aro narrov-gradod, broad-gradod,
broad-bandod, ¡ob faniIy, caroor faniIy and pay spino. Sono organizalions uso spol
ralos for aII or sono of lhoir onpIoyoos and aIlhough lhis approach doos nol consli-
lulo a pay slrucluro, il is doscribod boIov as a foaluro of sono pay syslons. Spol ralo
syslons can bo oxpandod by dovoIoping individuaI ¡ob grados.
ârrov-gradcd ·|ruc|urc
A narrov-gradod slrucluro, as iIIuslralod in Figuro 46.1, consisls of a soquonco of ¡ob
grados inlo vhich ¡obs of broadIy oquivaIonl vaIuo aro pIacod. Thoro nay bo 10 or
noro grados and Iong-oslabIishod slrucluros, ospociaIIy in lho pubIic soclor, nay havo
as nany as 18 grados. Grados nay bo dofinod by a bracIol of ¡ob ovaIualion poinls so
lhal any ¡ob for vhich lho ¡ob ovaIualion scoro faIIs vilhin lho poinls bracIol for a
grado vouId bo aIIocalod lo lhal grado. AIlornalivoIy, grados nay bo dofinod by
grado dofinilions or profiIos, vhich provido lho infornalion roquirod lo nalch ¡obs
sol oul undor ¡ob donand faclor hoadings (anaIylicaI nalching). This infornalion can
bo suppIononlod by roforonco lo bonchnarI ¡obs lhal havo boon aIroady gradod as
parl of lho slrucluro dosign oxorciso.
´Mid-poinl nanagononl' lochniquos aro oflon usod lo anaIyso and conlroI pay poIi-
cios by conparing acluaI pay vilh lho roforonco poinl lhal is rogardod as lho poIicy
pay IovoI. Ćonpa-ralios' can bo usod lo noasuro lho roIalionship bolvoon acluaI and
poIicy ralos of pay as a porconlago. If lho lvo coincido, lho conpa-ralio is 100 por
conl. Conpa-ralio anaIysis can bo usod lo oslabIish hov pay praclico (acluaI pay)
conparos vilh pay poIicy (lho ralo for a porson vho is fuIIy quaIifiod and conpolonl
in his or hor ¡ob).
Tho probIon vilh narrov-gradod slrucluros is lhal lhoy oncourago ´grado drifl', io
un¡uslifiod upgradings. This laIos pIaco bocauso il is difficuIl lo difforonlialo bolvoon
succossivo grados ovon vilh lho hoIp of ¡ob ovaIualion.
ßroad-gradcd ·|ruc|urc·
Broad-gradod slrucluros, as iIIuslralod in Figuro 46.2, havo six lo nino grados ralhor
lhan lho 10 or noro grados conlainod in narrov-gradod slrucluros. Thoy nay incIudo
´roforonco poinls' or ńarIol anchors', vhich indicalo lho ralo of pay for a fuIIy
conpolonl porfornor in lho grado and aro aIignod lo narIol ralos in accordanco vilh
ńarIol slanco' poIicy. Tho grados and pay rangos aro dofinod and nanagod in lho
sano vay as narrov-gradod slrucluros oxcopl lhal lho incroasod vidlh of lho grados
Crudo und puy structuros 69l
noans lhal organizalions sonolinos inlroduco nochanisns lo conlroI progrossion in
lho grado so lhal slaff do nol inovilabIy roach ils uppor pay Iinil. Tho nochanisns
avaiIabIo consisl of:
Rcjcrcncc pcini ccnircl ÷ scopo is providod for progrossion according lo conpo-
lonco by incrononls lo lho roforonco poinl. Thoroaflor, individuaIs nay oarn cash
bonusos for high achiovononl lhal nay bo consoIidalod up lo lho naxinun pay
for lho grado if high achiovononl IovoIs aro suslainod.
1|rcs|cl! ccnircl ÷ a poinl is dofinod in lho pay rango boyond vhich pay cannol
incroaso unIoss individuaIs achiovo a dofinod IovoI of conpolonco and achiovo-
nonl.
Scgmcni cr zcnc ccnircl ÷ an oxlonsion of lhroshoId conlroI, vhich invoIvos
dividing lho grado inlo a nunbor (oflon lhroo) of sognonls or zonos.
Broad-gradod slrucluros aro usod lo ovorcono or al Ioasl aIIovialo lho grado drifl
probIon ondonic in nuIli-gradod slrucluros. If lho grados aro dofinod, il is oasior lo
difforonlialo lhon, and nalching (conparing roIo profiIos vilh grado dofinilions or
profiIos lo find lho bosl fil) boconos noro accuralo. Bul il nay bo difficuIl lo conlroI
progrossion and lhis vouId incroaso lho cosls of oporaling lhon, aIlhough lhoso cosls
couId bo offsol by bollor conlroI of grado drifl.

FIgurc 46.1 A narrov, nuIli-gradod slrucluro
ßroad-bandcd ·|ruc|urc·
Broad-bandod slrucluros conpross nuIli-gradod slrucluros inlo four or fivo ´bands',
as iIIuslralod in Figuro 46.3. Tho procoss of dovoIoping broad-bandod slrucluros is
caIIod ´broad-banding'. In ils originaI vorsion, a broad-bandod slrucluro conlainod no
noro lhan fivo bands, oach vilh, lypicaIIy, a span of 70 lo 100 por conl. Bands voro
unslruclurod and pay vas nanagod nuch noro fIoxibIy lhan in a convonlionaI
gradod slrucluro (no Iinils nay bo dofinod for progrossion, vhich dopondod on
conpolonco and lho assunplion of vidor roIo rosponsibiIilios) and nuch noro allon-
lion vas paid lo narIol ralos lhal govornod vhal voro in offocl lho spol ralos for ¡obs
vilhin bands. AnaIylicaI ¡ob ovaIualion vas oflon foIl lo bo unnocossary bocauso of
lho oaso vilh vhich ¡obs couId bo aIIocalod lo ono of a snaII nunbor of bands. Tho
difforonco bolvoon broad bands and broad grados is lhal lho Iallor sliII gonoraIIy
adopl a fairIy convonlionaI approach lo pay nanagononl by lho uso of anaIylicaI ¡ob
ovaIualion, nid-poinl nanagononl, conpa-ralio anaIysis and pay nalrix lochniquos.
Hovovor, slrucluro oflon cropl in. Il slarlod vilh roforonco poinls aIignod lo narIol
ralos around vhich siniIar roIos couId bo cIuslorod. Thoso voro lhon oxlondod inlo
zonos for individuaI ¡obs or groups of ¡obs, vhich pIacod Iinils on pay progrossion, as
iIIuslralod in Figuro 46.4. }ob ovaIualion vas incroasingIy usod lo dofino lho bound-
arios of lho band and lo sizo ¡obs as a basis for dociding vhoro roforonco poinls shouId
bo pIacod in con¡unclion vilh narIol pricing. Tho originaI concopl of broad-banding
vas lhoroforo orodod as noro slrucluro vas inlroducod and ¡ob ovaIualion bocano
noro proninonl lo dofino lho slrucluro and nool oquaI pay roquirononls. Zonos
vilhin broad bands bogan lo IooI ralhor IiIo convonlionaI grados.
Crudo und puy structuros 693

FIgurc 46.2 A broad-gradod slrucluro
£
FIgurc 46.3 Narrov and broad-bandod slrucluros
£
FIgurc 46.4 A broad-bandod slrucluro vilh zonos
Band B
Zone B1
x
Zone B2
x
Zone B3
x
Band A
Zone A1
x
Zone A2
x
Zone A3
x
(x = reference point)
Iob famíí, ·|ruc|urc·
}ob faniIios consisl of ¡obs in a funclion or occupalion such as narIoling, oporalions,
financo, IT, HR, adninislralion or supporl sorvicos, vhich aro roIalod lhrough lho
aclivilios carriod oul and lho basic InovIodgo and sIiIIs roquirod, bul in vhich lho
IovoIs of rosponsibiIily, InovIodgo, sIiII or conpolonco IovoIs roquirod diffor. In a ¡ob
faniIy slrucluro, as shovn in Figuro 46.5, difforonl ¡ob faniIios aro idonlifiod and lho
succossivo IovoIs in oach faniIy aro dofinod by roforonco lo lho Ioy aclivilios carriod
oul and lho InovIodgo and sIiIIs or conpoloncos roquirod lo porforn lhon offoc-
livoIy. Thoy lhoroforo dofino caroor palhs ÷ vhal poopIo havo lo Inov and bo abIo lo
do lo advanco lhoir caroor vilhin a faniIy and lo dovoIop caroor opporlunilios in
olhor faniIios. TypicaIIy, ¡ob faniIios havo bolvoon six and oighl IovoIs as in broad-
gradod slrucluros. Sono faniIios nay havo noro IovoIs lhan olhors.
In conlrasl lo caroor faniIy slrucluros (soo boIov) oach faniIy in a ¡ob faniIy slruc-
luro nay in offocl havo ils ovn pay slrucluro lhal laIos accounl of difforonl IovoIs of
narIol ralos bolvoon faniIios (lhis is sonolinos caIIod ńarIol grouping'). Tho IovoI
or grado slrucluros nay aIso diffor bolvoon faniIios lo rofIocl any spociaI faniIy roIo
characlorislics. Bocauso lho sizo of ¡obs and ralos of pay can vary bolvoon lho sano
IovoIs in difforonl ¡ob faniIios, lhoro nay bo no road-across bolvoon lhon unIoss uso
is nado of anaIylicaI ¡ob ovaIualion.

FIgurc 46.5 A¡ob faniIy slrucluro
Carccr famíí, ·|ruc|urc·
Caroor faniIy slrucluros, as shovn in Figuro 46.6, rosonbIo ¡ob faniIy slrucluros in
lhal lhoro aro a nunbor of difforonl ´faniIios'. Tho difforonco is lhal in a caroor faniIy,
¡obs in lho corrosponding IovoIs across oach of lho caroor faniIios aro vilhin lho sano
sizo rango and, if an anaIylicaI ¡ob ovaIualion schono is usod, lhis is dofinod by lho
sano rango of scoros. SiniIarIy, lho pay rangos in corrosponding IovoIs across lho
caroor faniIios aro lho sano. In offocl, a caroor slrucluro is a singIo gradod slrucluro in
vhich oach grado has boon dividod inlo faniIios.
Caroor faniIy slrucluros focus on caroor napping and caroor dovoIopnonl as parl
of an inlogralod approach lo hunan rosourco nanagononl. This is as inporlanl a
foaluro of caroor faniIios as lho pay slrucluro oIononl, possibIy ovon noro so.
|a, ·pínc·
Iay spinos aro found in lho pubIic soclor or in agoncios and charilios lhal havo
adoplod a pubIic soclor approach lo rovard nanagononl. As iIIuslralod in Figuro
46.7, lhoy consisl of a sorios of incrononlaI ´pay poinls' oxlonding fron lho Iovosl lo
lho highosl paid ¡obs covorod by lho slrucluro. TypicaIIy, pay spino incrononls aro
bolvoon 2.5 and 3 por conl. Thoy nay bo slandardizod fron lho lop lo lho bollon of
lho spino, or lho incrononls nay vary al difforonl IovoIs, sonolinos vidoning
lovards lho lop. }ob grados aro aIignod lo lho pay spino and lho pay rangos for lho
grados aro dofinod by lho roIovanl scaIo of pay poinls. Tho vidlh of grados can vary
and ¡ob faniIios nay havo difforonl pay spinos. Irogrossion lhrough a grado is basod
Career families
Operations Administration Finance ÌT
Level 1 Level 1 Level 1 Level 1
evaluation points £ job
FIgurc 46.6 A caroor faniIy slrucluro
on sorvico, aIlhough an incroasing nunbor of organizalions provido scopo for accoIor-
aling incrononls or providing addilionaI incrononls abovo lho lop of lho scaIo for lho
grado lo rovard noril.
Spo| ra|c·
Sono organizalions do nol havo a gradod slrucluro al aII for any ¡obs or for corlain
¡obs such as diroclors. Insload lhoy uso ´spol ralos'. Thoy nay aIso bo caIIod lho ´ralo
for lho ¡ob', noro lypicaIIy for nanuaI ¡obs vhoro lhoro is a dofinod sIiIIod or soni-
sIiIIod narIol ralo lhal nay bo nogolialod vilh a lrado union. Spol ralos aro quilo
oflon usod in rolaiI firns for cuslonor sorvico slaff.
Spol ralos aro sonolinos allachod lo a porson ralhor lhan a ¡ob. UnIoss lhoy aro
nogolialod, ralos of pay and lhoroforo roIalivilios aro govornod by narIol ralos and
nanagoriaI ¡udgononl. Spol ralos aro nol Iocalod vilhin grados and lhoro is no
dofinod scopo for progrossion vhiIo on lho spol ralo. Thoro nay, hovovor, bo scopo
for noving on lo highor spol ralos as sIiII, conpolonco or conlribulion incroasos. }ob
hoIdors nay bo oIigibIo for inconlivo bonusos on lop of lho spol ralo.
Spol ralos nay bo usod vhoro lhoro is a vory sinpIo hiorarchy of ¡obs, as in sono
nanufacluring and rolaiIing conpanios. Thoy nay bo adoplod by organizalions lhal
vanl lho naxinun anounl of scopo lo pay vhal lhoy IiIo. Thoy oflon oxisl in snaII

FIgurc 46.7 Apay spino
or slarl-up organizalions lhal do nol vanl lo bo conslrainod by a fornaI grado slruc-
luro and profor lo rolain lho naxinun anounl of fIoxibiIily. Bul lhoy can rosuIl in
sorious inoquilios lhal nay bo difficuIl lo ¡uslify.
índívíduaí ¡ob gradc·
IndividuaI ¡ob grados aro, in offocl, spol ralos lo vhich a dofinod pay rango of, say, 20
por conl on oilhor sido of lho ralo has boon allachod lo provido scopo for pay progros-
sion basod on porfornanco, conpolonco or conlribulion. Again, lho nid-poinl of lho
rango is fixod by roforonco lo ¡ob ovaIualion and narIol ralo conparisons.
IndividuaI grados aro allachod lo ¡obs nol poopIo, bul lhoro nay bo noro fIoxibiIily
for novononl bolvoon grados lhan in a convonlionaI grado slrucluro. This can ariso
vhon poopIo havo oxpandod lhoir roIo and il is considorod lhal lhis grovlh in lho
IovoI of rosponsibiIily noods lo bo rocognizod vilhoul having lo upgrado lho ¡ob.
IndividuaI ¡ob grados nay bo roslriclod lo corlain ¡obs, for oxanpIo noro sonior
nanagors vhoro fIoxibiIily in fixing and incroasing ralos of pay is foIl lo bo dosirabIo.
Thoy provido for groalor fIoxibiIily lhan noro convonlionaI slrucluros bul can bo
difficuIl lo nanago and ¡uslify and can rosuIl in pay inoquilios. Tho ´zonos' lhal aro
oflon oslabIishod in broad-bandod slrucluros havo sono of lho characlorislics of indi-
viduaI ¡ob grados.
Summar,
Asunnary of lho foaluros of lho difforonl pay slrucluros, lhoir advanlagos and disad-
vanlagos and vhon lhoy nay bo approprialo is givon in TabIo 46.1.
íncídcncc of díffcrcn| |,pc· of ·|ruc|urc
Figuro 46.8 shovs lho incidonco of difforonl lypos of slrucluro as oslabIishod by lho
o-rovard survoy (2004c). Broad-gradod slrucluros aro nov lho nosl popuIar. Thoy aro
ropIacing narrov-gradod slrucluros ralhor lhan broad-banding, vhich is roIalivoIy
IillIo usod. Thoro aro a fair nunbor of ¡ob faniIy slrucluros bul fov caroor faniIy
slrucluros.
DLSlCNlNC CkADL AND lAY S1kLC1LkLS
Dc·ígn op|íon·
Thoro is a choico of slrucluro, as shovn in TabIo 46.1, and vhichovor slrucluro is
soIoclod, lhoro viII bo a nunbor of dosign oplions. Tho firsl docision lo naIo is vhoro
TabIc 46.1 Sunnary anaIysis of difforonl grado and pay slrucluros
Typc of Fcaturcs Advantagcs Disadvantagcs Wbcn appropriatc
structurc
Nurrov- A soquonco ol ¡ob Cíouríy ìndìcuto Crouto hìorurchìcuí ln u íurgo burouu-
grudod grudos -l0 or moro puy roíutìvìtìos rìgìdìty crutìc orgunìzutìon
Nurrov puy rungos lucìíìtuto controí lrono to grudo drìlt vìth voíí dolìnod
og 20 por cont - Lusy to undorstund lnupproprìuto ìn u hìorurchìos
40 por cont do-íuyorod \hon cíoso und
lrogrossìon orgunìzutìon rìgìd controí ìs
usuuííy íìnkod to roquìrod
porlormunco \hon somo but not
too much scopo lor
puy progrossìon
roíutod to
porlormunco or
contrìbutìon ìs
vuntod
ßroud- A soquonco ol As lor nurrov 1oo much scopo Dosìrubío to dolìno
grudod botvoon 6 und 9 grudod structuros lor puy progrossìon und dìllorontìuto
grudos but ìn uddìtìon: Controí grudos moro
luìríy broud puy tho broudor grudos mochunìsms cun uccurutoíy us un uìd
rungos og 40 to cun bo dolìnod bo provìdod but to bottor procìsìon
50% moro cíouríy thoy cun bo vhon grudìng ¡obs
lrogrossìon íìnkod bottor controí cun dìllìcuít to munugo Crudo drìlt
to contrìbutìon und bo oxorcìsod ovor Muy bo costíy probíoms oxìst
muy bo controííod grudo drìlt Moro scopo vuntod
by throshoíds or to rovurd
zonos contrìbutìon
ßroud- A sorìos ol, olton 5 Moro líoxìbío Crouto unrouíìstìc ln do-íuyorod,
bundod or 6 ´broud' bunds kovurd íutoruí oxpoctutìons ol procoss-busod,
\ìdo puy bunds - dovoíopmont und scopo lor puy rìsos líoxìbío
typìcuííy botvoon grovth ìn Soom to rostrìct orgunìzutìons
50 und 80% compotonco scopo lor \horo moro
lrogrossìon íìnkod lìt nov styío promotìon líoxìbìíìty ìn puy
to contrìbutìon und orgunìzutìons Dìllìcuít to dotormìnutìon ìs
compotonco undorstund vuntod
Lquuí puy \horo tho locus ìs
probíoms on contìnuous
ìmprovomont
und
íutoruí
dovoíopmont

lo pIaco grado boundarios vhich, as doscribod boIov, is usuaIIy infornod by a ¡ob
ovaIualion oxorciso. Docisions on grado boundarios viII bo infIuoncod by considora-
lions affocling lho nunbor and vidlh of grados. Furlhor oplions oxisl on lho pay
slrucluro concorning lho difforonliaIs bolvoon grados, lho dogroo lo vhich lhoro
shouId bo ovorIap bolvoon grados, if any, and lho nolhod of pay progrossion vilhin
grados. In broad-bandod slrucluros lhoro is aIso choico on lho infraslrucluro (lho uso
of roforonco poinls or zonos), and in caroor or ¡ob faniIy slrucluros lhoro aro oplions
concorning lho nunbor of faniIios, lho conposilion of faniIios and lho basis upon
vhich IovoIs shouId bo dofinod.
TabIc 46.1 
Typc of Fcaturcs Advantagcs Disadvantagcs Wbcn appropriatc
structurc
lob Sopuruto grudo und Cun uppour to bo lucìíìtuto puy \hon thoro uro
lumìíy puy structuros lor dìvìsìvo dìllorontìutìon dìstìnct murkot
¡ob lumìíìos Muy ìnhìbìt íutoruí botvoon murkot groups vhìch
contuìnìng curoor groups. nood to bo
sìmìíur ¡obs dovoíopmont Dolìno curoor rovurdod
lrogrossìon íìnkod Muy bo dìllìcuít to puths uguìnst dìllorontìuííy
to compotonco muìntuìn ìntornuí cíour crìtorìu \horo thoro uro
und/or oquìty botvoon ¡ob dìstìnct groups ol
contrìbutìon lumìíìos uníoss ¡obs ìn lumìíìos
undorpìnnod by ¡ob
ovuíuutìon
luy A sorìos ol Lusy to munugo No scopo lor ln u pubíìc soctor
spìno ìncromontuí puy luy progrossìon dìllorontìutìng or voíuntury
poìnts covorìng uíí not busod on rovurds uccordìng orgunìzutìon vhoro
¡obs munugorìuí to porlormunco thìs ìs tho
Crudos muy bo ¡udgomont Muy bo costíy us trudìtìonuí
suporìmposod stull drìlt up tho upprouch und ìt
lrogrossìon spìno thoroloro lìts tho
íìnkod to sorvìco cuíturo
\horo ìt ìs boíìovod
to bo ìmpossìbío
to mousuro
dìllorontìuí íovoís
ol porlormunco
luìríy und
consìstontíy
Dccídíng on gradc boundaríc·
An anaIylicaI ¡ob ovaIualion oxorciso viII produco a ranI ordor of ¡obs according lo
lhoir ¡ob ovaIualion scoros. A docision lhon has lo bo nado on vhoro lho boundarios
lhal viII dofino grados shouId bo pIacod in lho ranI ordor. So far as possibIo, bound-
arios shouId divido groups or cIuslors of ¡obs vhich aro significanlIy difforonl in sizo
so lhal aII lho ¡obs pIacod in a grado aro cIoarIy snaIIor lhan lho ¡obs in lho noxl highor
grado and Iargor lhan lho ¡obs pIacod in lho noxl Iovor grado.
Fixing grado boundarios is ono of lho nosl crilicaI aspocls of grado slrucluro dosign
foIIoving an anaIylicaI ¡ob ovaIualion oxorciso. Il roquiros ¡udgononl ÷ lho procoss is
nol scionlific and il is raro lo find a silualion vhon lhoro is ono righl and obvious
ansvor. In lhoory, grado boundarios couId bo dolorninod by dociding on lho nunbor
of grados in advanco and lhon dividing lho ranI ordor inlo oquaI parls. Bul lhis
vouId noan draving grado boundary Iinos arbilrariIy and lho rosuIl couId bo lho
soparalion of groups of ¡obs lhal shouId proporIy bo pIacod in lho sano grado.
Tho bosl approach is lo anaIyso lho ranI ordor lo idonlify any significanl gaps in
lho poinls scoros bolvoon ad¡aconl ¡obs. Thoso naluraI broaIs in poinls scoros viII
lhon conslilulo lho boundarios bolvoon cIuslors of ¡obs lhal can bo aIIocalod lo ad¡a-
conl grados. Adislincl gap bolvoon lho highosl ralod ¡ob in ono grado and lho Iovosl
ralod ¡ob in lho grado abovo viII hoIp lo ¡uslify lho aIIocalion of ¡obs bolvoon grados.
Il viII lhoroforo roduco boundary probIons Ioading lo dissalisfaclion vilh gradings
Crudo und puy structuros 70l
broad-graded 24%
narrow-graded 18%
pay spine 13%
job family 11%
individual job ranges 10%
spot rates 10%
broad-banded 8%
career family 6%
n = 166
FIgurc 46.8 Typo of grado and pay slrucluro
vhon lho dislinclion is Ioss voII dofinod. IrovisionaIIy, il nay bo docidod in advanco
vhon dosigning a convonlionaI gradod slrucluro lhal a corlain nunbor of grados is
roquirod, bul lho gap anaIysis viII confirn lho nunbor of grados lhal is approprialo,
laIing inlo accounl lho naluraI divisions bolvoon ¡obs in lho ranI ordor. Hovovor, lho
oxislonco of a nunbor of naluraI broaIs cannol bo guaranlood, vhich noans lhal
¡udgononl has lo bo oxorcisod as lo vhoro boundarios shouId bo dravn vhon lho
scoros bolvoon ad¡aconl ¡obs aro cIoso.
In casos vhoro lhoro aro no obvious naluraI broaIs, lho guidoIinos lhal shouId bo
considorod vhon dociding on boundarios aro as foIIovs:
}obs vilh connon foaluros as indicalod by lho ¡ob ovaIualion faclors aro groupod
logolhor so lhal a dislinclion can bo nado bolvoon lho characlorislics of lho ¡obs
in difforonl grados ÷ il shouId bo possibIo lo dononslralo lhal lho ¡obs groupod
inlo ono grado rosonbIo oach olhor noro lhan lhoy rosonbIo ¡obs pIacod in ad¡a-
conl grados.
Tho grado hiorarchy shouId laIo accounl of lho organizalionaI hiorarchy, io ¡obs in
vhich lho ¡ob hoIdor roporls lo a highor IovoI ¡ob hoIdor shouId bo pIacod in a
Iovor grado, aIlhough lhis principIo shouId nol bo foIIovod sIavishIy vhon an
organizalion is ovor-hiorarchicaI vilh, porhaps, a sorios of ono-ovor-ono roporling
roIalionships.
Tho boundarios shouId nol bo pIacod bolvoon ¡obs nainIy carriod oul by non and
¡obs nainIy carriod oul by vonon.
Tho boundarios shouId idoaIIy nol bo pIacod innodialoIy abovo ¡obs in vhich
Iargo nunbors of poopIo aro onpIoyod.
Tho grado vidlh in lorns of ¡ob ovaIualion poinls shouId roprosonl a significanl
slop in donand as indicalod by lho ¡ob ovaIualion schono.
ûmbcr of gradc·, ícvcí· or band·
Tho considoralions lo bo laIon inlo accounl vhon dociding on lho nunbor of grados
IovoIs or bands aro:
Tho rango and lypos of roIos lo bo covorod by lho slrucluro.
Tho rango of pay and ¡ob ovaIualion poinls scoros lo bo acconnodalod.
Tho nunbor of IovoIs in lho organizalionaI hiorarchy (lhis viII bo an inporlanl
faclor in a broad-bandod slrucluro).
Docisions on vhoro grado boundarios shouId bo pIacod foIIoving a ¡ob ovaIualion
oxorciso, vhich has producod a ranIod ordor of ¡obs ÷ lhis nighl idonlify lho oxis-
lonco of cIoarIy dofinod cIuslors of ¡obs al lho various IovoIs in lho hiorarchy
bolvoon vhich lhoro aro significanl difforoncos in ¡ob sizo.
Tho facl lhal vilhin a givon rango of pay and rosponsibiIily, lho groalor lho
nunbor of grados lho snaIIor lhoir vidlh and vico vorsa ÷ lhis is associalod vilh
viovs on vhal is rogardod as lho dosirabIo vidlh of a rango, laIing inlo accounl
lho scopo for progrossion, lho sizo of incrononls in a pay spino and oquaI pay
issuos.
Tho probIon of ´grado drifl' (un¡uslifiod upgradings in rosponso lo prossuro, IacI
of pronolion opporlunilios or bocauso ¡ob ovaIualion has boon appIiod IaxIy),
vhich can bo incroasod if lhoro aro loo nany narrov grados.
Víd|h of gradc·
Tho faclors affocling docisions on lho vidlh of grados or bands aro:
Viovs on lho scopo lhal shouId bo aIIovod for porfornanco, conlribulion or
caroor progrossion vilhin grado.
EquaI pay considoralions ÷ vido grados, ospociaIIy oxlondod incrononlaI scaIos,
aro a na¡or causo of pay gaps bolvoon non and vonon sinpIy bocauso vonon,
vho aro noro IiIoIy lo havo caroor broaIs lhan non, nay nol havo lho sano
opporlunily as non lo progross lo lho uppor rogions of lho rango, naIo ¡obs nay
lhoroforo cIuslor lovards lho lop of lho rango vhiIo vonon's nay cIuslor lovards
lho bollon.
V on lho nunbor of grados ÷ lho groalor lho nunbor lho snaIIor lho vidlh.
Docisions on lho vaIuo of incrononls in a pay spino ÷ if il is boIiovod, as in IocaI
govornnonl and as a rosuIl of an ACAS oquaI pay caso lhal lho nunbor of incro-
nonls shouId bo roslriclod, for oquaI pay or olhor roasons, bul lhal lho nunbor of
grados shouId aIso bo Iinilod, lhon il is nocossary lo incroaso lho vaIuo of lho
incrononls.
In a broad-bandod slrucluro, lho rango of narIol ralos and ¡ob ovaIualion scoros
covoring lho ¡obs aIIocalod lo lho band.
Díffcrcn|íaí· bc|vccn pa, rangc·
DifforonliaIs bolvoon pay rangos shouId provido scopo lo rocognizo incroasos in ¡ob
sizo bolvoon succossivo grados. If difforonliaIs aro loo cIoso ÷ Ioss lhan 10 por conl ÷
nany ¡obs bocono bordorIino casos, vhich can rosuIl in a proIiforalion of appoaIs and
argunonls aboul grading. Largo difforonliaIs boIov sonior nanagononl IovoI of noro
lhan 25 por conl can croalo probIons for narginaI or bordorIino casos bocauso of lho
anounl al slaIo. Exporionco has shovn lhal in nosl organizalions vilh convonlionaI
grado slrucluros, a difforonliaI of bolvoon 16 and 20 por conl is approprialo oxcopl,
porhaps, al lho highosl IovoIs.
|a, rangc ovcríap
Thoro is a choico on vholhor or nol pay rangos shouId ovorIap and if so, by hov
nuch. Tho anounl of ovorIap, if any, is a funclion of rango vidlh and difforonliaIs.
Largo ovorIaps of noro lhan 10 por conl can croalo oquaI pay probIons vhoro, as is
quilo connon, non aro cIuslorod al lho lop of lhoir grados and vonon aro noro
IiIoIy lo bo found al lho Iovor ond.
|a, progrc··íon
Thoro is a choico of nolhods of pay progrossion bolvoon lho fixod sorvico-
roIalod incrononls connon in lho pubIic soclor, and lho olhor forns of conlingonl
pay, nanoIy porfornanco, conpolonco or conlribulion-roIalod, as doscribod in
Chaplor 47.
Thc gradc and pa, ·|ruc|urc dc·ígn procc··
An anaIylicaI ¡ob ovaIualion schono is usuaIIy lho basis for dosigning a gradod slruc-
luro and il can bo usod in lho iniliaI slagos of dosigning a broad-bandod or caroor/¡ob
faniIy slrucluro. In lho caso of gradod slrucluros, docisions on lho nunbor and vidlh
of grados aro gonoraIIy basod on an anaIysis of lho ranI ordor of scoros producod by
¡ob ovaIualion.
This approach is usod Ioss oflon in lho dosign of broad-bandod or caroor/¡ob faniIy
slrucluros, vhoro lho nosl connon nolhod is lo naIo a provisionaI advanco doci-
sion on lho nunbor of bands or caroor faniIy IovoIs, and lhon posilion roIos in bands
(oflon by roforonco lo narIol ralos) or aIIocalo roIos inlo IovoIs by an ánaIylicaI
nalching' procoss, as doscribod in Chaplor 44. }ob ovaIualion nay onIy bo usod al a
Ialor slago lo vaIidalo lho posilioning of roIos in bands or lho aIIocalion of ¡obs lo
faniIy IovoIs, chocI on roIalivilios and, sonolinos, dofino lho bands or IovoIs in ¡ob
ovaIualion scoro lorns. Tho iniliaI docision on lho nunbor of bands or IovoIs and lhoir
dofinilion nay, hovovor, bo changod in lho Iighl of lho oulcono of lho aIIocalion,
nalching and ovaIualion procossos.
Moro raroIy, lho grado and pay slrucluro dosign is conduclod by noans of a non-
anaIylicaI ¡ob cIassificalion oxorciso (soo Chaplor 44), vhich dofinos a nunbor of
singIo grados. }obs aro lhon sIollod inlo lho grados by roforonco lo lho grado dofini-
lions. Tho basic soquonco of slops for dosigning a grado and pay slrucluro is iIIus-
lralod in Figuro 46.9. Nolo lho onphasis on connunicalion and invoIvononl al aII
slagos.
FIgurc 46.9 FIov charl: dosign of a nov grado and pay slrucluro
Communicate
and involve
throughout
programme
Analyse present
arrangements
Define objectives
and guiding
principles
Set up steering
group and task
force
Decide on
methodology and
programme
Select and
develop job
evaluation scheme
Choose scheme
and define its key
features
Career or job
family structure
Broad-banded
structure
Graded structure
Define families
and levels
Define bands and
their infrastructure
Evaluate
benchmark jobs
Match benchmark
roles to levels
Allocatebenchmark
roles to bands
Design grade
structure
Design pay
structure
Design pay
structure
Design pay
structure
Conduct
analysis of
market rates
Validate allocation
through job
evaluation
Validate as
required through
JE
Match remaining
roles to levels
Allocate remaining
roles to levels
Match remaining
roles to levels
Ìmplement Ìmplement Ìmplement
Contìngont puy
This chaplor slarls vilh a dofinilion of conlingonl pay and dolaiIs of ils incidonco. Il
lhon doaIs vilh individuaI conlingonl pay undor lho foIIoving hoadings:
conlingonl pay as a nolivalor,
argunonls for and againsl conlingonl pay,
aIlornalivos lo conlingonl pay,
criloria for succoss,
porfornanco-roIalod pay,
conpolonco-roIalod pay,
conlribulion-roIalod pay,
sIiII-basod pay,
sorvico-roIalod pay,
choico of schono,
roadinoss for conlribulion pay,
dovoIoping and inpIononling conlingonl pay.
Tho chaplor concIudos vilh a doscriplion of loan pay schonos and schonos lhal pay
for organizalionaI porfornanco. Inconlivos for saIos slaff and nanuaI vorIors aro
covorod in Chaplor 42.

CCN1lNCLN1 lAY DLllNLD
Conlingonl pay providos an ansvor lo lho lvo fundanonlaI rovard nanagononl
quoslions: vhal do vo vaIuo, and vhal aro vo proparod lo pay for` IndividuaI
conlingonl pay roIalos financiaI rovards lo lho porfornanco, conpolonco, conlribu-
lion or sIiII of individuaI onpIoyoos. Hovovor, pay roIalod lo sorvico is aIso in a sonso
conlingonl pay and is lhoroforo considorod soparaloIy lovards lho ond of lho chaplor.
Conlingonl pay nay aIso bo providod for loans and for organizalionaI porfornanco.
1HL lNClDLNCL Cl CCN1lNCLN1 lAY
Tho o-rovard survoy of conlingonl pay (2004b) oslabIishod lhal 189 schonos voro
usod by lho 100 rospondonls in lho proporlions shovn in Figuro 47.1.
Iorfornanco-roIalod pay ronains lho nosl connon approach and a Iargo proporlion
of organizalions roIalo pay lo organizalionaI porfornanco. Conlribulion-roIalod pay
(a conbinalion of porfornanco and conpolonco pay) is usod lo a surprisingIy high
oxlonl considoring lhal as a dofinod concopl il did nol roaIIy oxisl unliI lho ond of lho
1990s, vhon il vas inlroducod by Brovn and Arnslrong (1999). Sorvico-roIalod pay
Performance related pay 65%
Pay related to organizational performance 40%
Contribution related 33%
Service related
15%
Team pay
11%
Competence
Related 8%
0% 50% 100%
FIgurc 47.1 Incidonco of conlingonl pay schonos
porsisls in lho pubIic and voIunlary soclors, bul noilhor loan pay nor conpolonco-
roIalod pay is nuch usod.
1HL NA1LkL Cl lNDlVlDLAL CCN1lNCLN1 lAY
Conlingonl pay nay bo consoIidalod in baso pay or providod in lho forn of cash
Iunp sun bonusos. Tho Iallor arrangononl is caIIod ´variabIo pay'. This is sonolinos
roforrod lo as ´pay al risI', vhich has lo bo ro-oarnod, as dislincl fron consoIidalod
pay, vhich is usuaIIy rogardod as conlinuing as Iong as lho porson ronains in lho ¡ob
and porforns il salisfacloriIy.
Conlingonl pay schonos aro basod on procossos for noasuring or assossing porfor-
nanco, conpolonco, conlribulion or sIiII. Thoso nay bo oxprossod as ralings, vhich
aro convorlod by noans of a fornuIa lo a paynonl. AIlornalivoIy, lhoro nay bo no
fornaI ralings and pay docisions aro basod on broad assossnonls ralhor lhan a
fornuIa.
lNDlVlDLAL CCN1lNCLN1 lAY AS A MC1lVA1Ck
Many poopIo soo conlingonl pay as lho bosl vay lo nolivalo poopIo. Bul il is
sinpIislic lo assuno lhal il is onIy lho oxlrinsic nolivalors in lho forn of pay lhal
croalo Iong-lorn nolivalion. Tho lolaI rovard concopl, as oxpIainod in Chaplor 42,
onphasizos lho inporlanco of non-financiaI rovards as an inlograI parl of a conpIolo
pacIago. Tho inlrinsic nolivalors, vhich can ariso fron lho vorI ilsoIf and lho
vorIing onvironnonl, nay havo a doopor and Iongor-Iasling offocl.
ínccn|ívc· and rcvard·
Whon considoring conlingonl pay as a nolivalor a dislinclion shouId bo nado
bolvoon financiaI inconlivos and rovards.
lincncicl inccniitcs aro dosignod lo provido dirocl nolivalion. Thoy loII poopIo hov
nuch nonoy lhoy viII gol in lho fuluro if lhoy porforn voII ÷ ´Do lhis and you viII
gol lhal'. A shop fIoor paynonl-by-rosuIl schono and a saIos roprosonlalivo's
connission syslon aro oxanpIos of financiaI inconlivos.
lincncicl rcucr!s acl as indirocl nolivalors bocauso lhoy provido a langibIo noans
of rocognizing achiovononls, as Iong as poopIo oxpocl lhal vhal lhoy do in lho fuluro
viII produco sonolhing vorlhvhiIo, as oxpoclancy lhoory suggosls. Rovards can bo
rolrospoclivo ÷ Ýou havo achiovod lhis, lhoroforo vo viII pay you lhal.' Bul rovards
Contìngont puy 709
can aIso bo prospoclivo: ´Wo viII pay you noro nov bocauso vo boIiovo you havo
roachod a IovoI of conpolonco lhal viII produco high IovoIs of porfornanco in lho
fuluro.'
AkCLMLN1S lCk AND ACAlNS1 lNDlVlDLAL
CCN1lNCLN1 lAY
Argumcn|· for
Tho nosl povorfuI argunonl for individuaI conlingonl pay is lhal lhoso vho
conlribulo noro shouId bo paid noro. Il is righl and propor lo rocognizo achiovononl
vilh a financiaI and lhoroforo langibIo rovard. This is proforabIo lo paying poopIo
¡usl for ´boing lhoro', as happons in a sorvico-roIalod syslon.
Tho o-rovard survoy of conlingonl pay (2004b) found lhal, in ordor of inporlanco,
lho foIIoving voro lho nain roasons givon by lho rospondonls for using conlingonl
pay:
1. To rocognizo and rovard bollor porfornanco.
2. To allracl and rolain high quaIily poopIo.
3. To inprovo organizalionaI porfornanco.
4. To focus allonlion on Ioy rosuIls and vaIuos.
5. To doIivor a nossago aboul lho inporlanco of porfornanco.
6. To nolivalo poopIo.
7. To infIuonco bohaviour.
8. To supporl cuIluraI chango.
Argumcn|· agaín·|
Tho nain argunonls againsl individuaI conlingonl pay aro lhal:
lho oxlonl lo vhich conlingonl pay schonos nolivalo is quoslionabIo ÷ lho
anounls avaiIabIo for dislribulion aro usuaIIy so snaII lhal lhoy cannol acl as an
inconlivo,
lho roquirononls for succoss as sol oul boIov aro oxacling and difficuIl lo achiovo,
nonoy by ilsoIf viII nol rosuIl in suslainod nolivalion ÷ as Kohn (1993) poinls
oul, nonoy raroIy acls in a crudo, bohaviourisl, IavIov's dog nannor,
poopIo roacl in vidoIy difforonl vays lo any forn of nolivalion ÷ il cannol bo
assunod lhal nonoy viII nolivalo aII poopIo oquaIIy, yol lhal is lho proniso on
vhich conlribulion pay schonos aro basod,
7l0 kovurdìng poopío
financiaI rovards nay possibIy nolivalo lhoso vho rocoivo lhon, bul lhoy can
donolivalo lhoso vho don'l, and lho nunbors vho aro donolivalod couId bo
nuch highor lhan lhoso vho aro nolivalod,
conlingonl pay schonos can croalo noro dissalisfaclion lhan salisfaclion if lhoy
aro porcoivod lo bo unfair, inadoqualo or badIy nanagod, and, as oxpIainod
boIov, lhoy can bo difficuIl lo nanago voII,
conlingonl pay schonos dopond on lho oxislonco of accuralo and roIiabIo nolhods
of noasuring porfornanco, conpolonco, conlribulion or sIiII, vhich nighl nol
oxisl,
conlingonl pay docisions dopond on lho ¡udgononl of nanagors vhich, in lho
absonco of roIiabIo criloria, couId bo parliaI, pro¡udicod, inconsislonl or iII-
infornod,
lho concopl of conlingonl pay is basod on lho assunplion lhal porfornanco is
conpIoloIy undor lho conlroI of individuaIs vhon in facl, il is affoclod by lho
syslon in vhich lhoy vorI,
conlingonl pay, ospociaIIy porfornanco-roIalod pay schonos, can niIilalo againsl
quaIily and loanvorI.
Anolhor povorfuI argunonl againsl conlingonl pay is lhal il has provod difficuIl lo
nanago. Organizalions, incIuding lho CiviI Sorvico, rushod inlo porfornanco-roIalod
pay in lho 1980s vilhoul roaIIy undorslanding hov lo naIo il vorI. InovilabIy
probIons of inpIononlalion aroso. Sludios such as lhoso conduclod by Bovoy (1982),
KossIor and IurcoII (1992), Marsdon and Richardson (1994) and Thonpson (1992)
havo aII rovoaIod lhoso difficuIlios. FaiIuros aro usuaIIy roolod in inpIononlalion
and oporaling procossos, ospociaIIy lhoso concornod vilh porfornanco nanagononl,
lho nood for offoclivo connunicalion and invoIvononl, and Iino nanagononl
capabiIily.
Tho Iasl faclor is cruciaI. Tho succoss of conlingonl pay rosls IargoIy in lho hands
of Iino nanagors. Thoy havo lo boIiovo in il as sonolhing lhal viII hoIp lhon as voII
as lho organizalion. Thoy nusl aIso bo good al praclising lho cruciaI sIiIIs of agrooing
largols, noasuring porfornanco fairIy and consislonlIy, and providing foodbacI lo
lhoir slaff on lho oulcono of porfornanco nanagononl and ils inpacl on pay. Lino
nanagors can naIo or broaI conlingonl pay schonos.
Wrighl (1991) sunnod il aII up: Évon lho nosl ardonl supporlors of por-
fornanco-roIalod pay rocognizo lhal il is difficuIl lo nanago voII', and OIivor
(1996) nado lho poinl lhal ´porfornanco pay is boaulifuI in lhoory bul difficuIl in
praclico'.
Contìngont puy 7ll

A conprohonsivo sludy by Brovn and Arnslrong (1999) inlo lho offoclivonoss of
conlingonl pay as rovoaIod by a nunbor of rosoarch pro¡ocls producod lvo ovoraII
concIusions: 1) conlingonl pay cannol bo ondorsod or ro¡oclod univorsaIIy as a prin-
cipIo, and 2) no lypo of conlingonl pay is univorsaIIy succossfuI or unsuccossfuI. Thoy
concIudod lhoir anaIysis of lho rosoarch findings by slaling lhal ´lho rosoarch doos
shov lhal lho offoclivonoss of pay-for-porfornanco schonos is highIy conloxl and
silualion-spocific, and il has highIighlod lho praclicaI probIons vhich nany conpa-
nios havo oxporioncod vilh lhoso schonos'.
AL1LkNA1lVLS 1C lNDlVlDLAL CCN1lNCLN1 lAY
Tho argunonls againsl conlribulion pay sol oul abovo convinco nany poopIo lhal il is
unsalisfaclory, bul vhal is lho aIlornalivo` Ono ansvor is lo roIy noro on non-finan-
ciaI nolivalors. Bul il is sliII nocossary lo considor vhal shouId bo dono aboul pay.
Tho roaclion in lho 1990s lo lho advorso crilicisns of IRI vas lo dovoIop lho concopl
of conpolonco-roIalod pay lhal fillod in voII vilh lho onphasis on conpoloncios (lho
conpoloncy induslry). This approach, as doscribod Ialor, in lhoory ovorcano sono of
lho crudor foaluros of IRI bul sliII croalod a nunbor of praclicaI difficuIlios and has
novor roaIIy laIon off. In lho Ialo 1990s lho idoa of conlribulion-roIalod pay onorgod,
as advocalod by Brovn and Arnslrong (1999). This conbinos lho oulpul-drivon focus
of IRI vilh lho inpul (conpolonco) orionlod focus of conpolonco-roIalod pay and
has provod lo bo nuch noro appoaIing lhan oilhor porfornanco or conpolonco-
roIalod pay.
Hovovor, nany poopIo sliII havo rosorvalions aboul lhis approach fron lho viov-
poinl of achioving lho fair and consislonl noasurononl of conlribulion. So vhal aro
lho aIlornalivos for lhon` Toan pay is oflon advocalod bocauso il ronovos lho indi-
viduaIislic aspocl of IRI and accords vilh lho boIiof in lho inporlanco of loanvorI,
bul aIlhough loan pay is allraclivo, il is oflon difficuIl lo appIy and il sliII roIios on
porfornanco noasurononl.
Tho lradilionaI aIlornalivo is sorvico-roIalod pay, as doscribod Ialor in lhis chaplor.
This corlainIy lroals ovoryono oquaIIy (and lhoroforo appoaIs lo lrado unions) bul
pays poopIo sinpIy for boing lhoro, and lhis couId bo rogardod as inoquilabIo in lhal
rovards laIo no accounl of roIalivo IovoIs of conlribulion.
Tho olhor connon aIlornalivo is a spol ralo syslon as doscribod in Chaplor 46.
Mosl poopIo, hovovor, vanl and oxpocl a rango of baso pay progrossion, hovovor
lhal is dolorninod, and spol ralos aro nol nuch usod in Iargor organizalions oxcopl
for sonior nanagors, shop fIoor and saIos slaff.
Ckl1LklA lCk SLCCLSS
Tho foIIoving aro lho succoss criloria for individuaI conlingonl pay:
IndividuaIs shouId havo a cIoar Iino of sighl bolvoon vhal lhoy do and vhal lhoy
viII gol for doing il. AIino of sighl nodoI adaplod fron LavIor (1988) is shovn in
Figuro 47.2. Tho concopl oxprossos lho ossonco of oxpoclancy lhoory: lhal noliva-
lion onIy laIos pIaco vhon poopIo oxpocl lhal lhoir offorl and conlribulion viII bo
rovardod. Tho rovard shouId bo cIoarIy and cIosoIy IinIod lo acconpIishnonl or
offorl ÷ poopIo Inov vhal lhoy viII gol if lhoy achiovo dofinod and agrood largols
or slandards and can lracI lhoir porfornanco againsl lhon.
Tho rovards aro vorlh having.
Fair and consislonl noans aro avaiIabIo for noasuring or assossing porfornanco,
conpolonco, conlribulion or sIiII.
IoopIo nusl bo abIo lo infIuonco lhoir porfornanco by changing lhoir bohaviour
and dovoIoping lhoir conpoloncos and sIiIIs.
Tho rovard shouId foIIov as cIosoIy as possibIo lho acconpIishnonl lhal gonor-
alod il.
Thoso aro idoaI roquirononls and fov schonos nool lhon in fuII. Thal is vhy indi-
viduaI conlingonl pay arrangononls as doscribod boIov can oflon proniso noro lhan
lhoy doIivor.
lLklCkMANCL-kLLA1LD lAY
Molhods of oporaling IRI vary considorabIy bul ils lypicaI nain foaluros aro sunna-
rizod in Figuro 47.3 and doscribod boIov.
Contìngont puy 7l3
Effort Performance Results Measures Pay out
FIgurc 47.2 Lino of sighl nodoI
Agreed
outcomes
(targets)
Performance
measures
Performance Rating Formula
Performance
pay
FIgurc 47.3 Iorfornanco-roIalod pay
ßa·í· of ·chcmc
Iay incroasos aro roIalod lo lho achiovononl of agrood rosuIls dofinod as largols or
oulconos. Scopo is providod for consoIidalod pay progrossion vilhin pay bracIols
allachod lo grados or IovoIs in a gradod or caroor faniIy slrucluro, or zonos in a broad-
bandod slrucluro. Such incroasos aro pornanonl ÷ lhoy aro soIdon if ovor vilhdravn.
AIlornalivoIy or addilionaIIy, high IovoIs of porfornanco or spociaI achiovononls nay
bo rovardod by cash bonusos, vhich aro nol consoIidalod and havo lo bo ro-oarnod.
IndividuaIs nay bo oIigibIo for such bonusos vhon lhoy havo roachod lho lop of lho
pay bracIol for lhoir grado, or vhon lhoy aro assossod as boing fuIIy conpolonl,
having conpIoloIy progrossod aIong lhoir Ioarning curvo. Tho ralo of pay for
sonoono vho roachos lho roquirod IovoI of conpolonco can bo aIignod lo narIol ralos
according lo lho organizalion's pay poIicy.
|a, progrc··íon
Tho ralo and Iinils of progrossion lhrough lho pay bracIols aro lypicaIIy bul nol
inovilabIy dolorninod by porfornanco ralings, vhich aro oflon nado al lho lino of
lho porfornanco nanagononl roviov bul nay bo nado soparaloIy in a spociaI pay
roviov. Sono organizalions do nol baso IRI incroasos on fornaI ralings and insload
roIy on a gonoraI assossnonl of hov nuch lho pay of individuaIs shouId incroaso by
roforonco lo porfornanco, polonliaI, lho pay IovoIs of lhoir poors and lhoir ńarIol
vorlh' (lho ralo of pay il is boIiovod lhoy couId oarn oIsovhoro).
Concíu·íon· on |R|
IRI has aII lho advanlagos and disadvanlagos Iislod for conlingonl pay. Many poopIo
fooI lho Iallor oulvoigh lho fornor. Il has allraclod a Iol of advorso connonl,
prinariIy bocauso of lho difficuIlios organizalions havo nol in nanaging il. Conlri-
bulion-roIalod pay schonos aro boconing nuch noro popuIar.
CCMlL1LNCL-kLLA1LD lAY
Tho nain foaluros of conpolonco-roIalod pay schonos aro iIIuslralod in Figuro 47.4
and doscribod boIov.
Agreed
competence
requirements
Competence
level
definitions
Evidence of
competence
level achieved
Rating or
assessment
Methodology
Competence
pay
FIgurc 47.4 Conpolonco-roIalod pay
ßa·í· of ·chcmc
IoopIo rocoivo financiaI rovards in lho shapo of incroasos lo lhoir baso pay by rofor-
onco lo lho IovoI of conpolonco lhoy dononslralo in carrying oul lhoir roIos. Il is a
nolhod of paying poopIo for lho abiIily lo porforn nov and in lho fuluro.
As in lho caso of IRI, scopo is providod for consoIidalod pay progrossion vilhin
pay bracIols allachod lo grados or IovoIs in a narrov-gradod or caroor faniIy slruc-
luro, or zonos in a broad-bandod slrucluro (conpolonco pay is oflon rogardod as a
foaluro of such slrucluros).
|a, progrc··íon
Tho ralo and Iinils of progrossion lhrough lho pay bracIols can bo basod on ralings of
conpolonco using a IRI-lypo nalrix, bul lhoy nay bo govornod by noro gonoraI
assossnonls of conpolonco dovoIopnonl.
Concíu·íon· on compc|cncc-rcía|cd pa,
Conpolonco-roIalod pay is allraclivo in lhoory bocauso il can bo parl of an inlogralod
conpoloncy-basod approach lo HRM. Hovovor, lho idoa of conpolonco-roIalod pay
raisos lvo quoslions. Tho fundanonlaI quoslion is, ´Whal aro vo paying for`' Aro vo
paying for conpoloncios, io hov poopIo bohavo, or conpoloncos, io vhal poopIo havo
lo Inov and bo abIo lo do lo porforn voII` If vo aro rovarding good bohaviour
(conpoloncios) lhon a nunbor of difficuIlios ariso. Il has boon suggoslod by Sparrov
(1996) lhal lhoso incIudo lho porfornanco criloria on vhich conpoloncios aro basod,
lho conpIox naluro of vhal is boing noasurod, lho roIovanco of lho rosuIls lo lho orga-
nizalion, and lho probIon of noasurononl. Ho concIudod lhal ´vo shouId avoid
ovor-ogging our abiIily lo losl, noasuro and rovard conpoloncios'.
Olhor fundanonlaI ob¡oclions lo lho bohaviouraI approach havo boon raisod by
LavIor (1993). Ho oxprossos concorn aboul schonos lhal pay for an individuaI's
porsonaIily lraiIs and onphasizos lhal such pIans vorI bosl ´vhon lhoy aro liod lo lho
abiIily of an individuaI lo porforn a parlicuIar lasI and vhon lhoro aro vaIid
noasuros avaiIabIo of hov voII an individuaI can porforn a lasI'. Ho aIso poinls oul
lhal, ´gonoric conpoloncios aro nol onIy hard lo noasuro, lhoy aro nol nocossariIy
roIalod lo succossfuI lasI porfornanco in a parlicuIar vorI assignnonl or vorI roIo'.
This raisos lho socond quoslion: Áro vo paying for lho possossion of conpolonco
or lho uso of conpolonco`' CIoarIy il nusl bo lho Iallor. Bul vo can onIy assoss lho
offoclivo uso of conpolonco by roforonco lo porfornanco. Tho focus is lhoroforo on
rosuIls and if lhal is lho caso, conpolonco-roIalod pay bogins lo IooI suspiciousIy IiIo
porfornanco-roIalod pay. Il can bo said lhal lho difforonco bolvoon lho lvo in lhoso
Contìngont puy 7l5
circunslancos is aII ´snoIo and nirrors'. Conpolonco-roIalod pay couId bo rogardod
as no noro lhan a noro accoplabIo nano for IRI.
Conpolonco-roIalod pay sounds IiIo a good idoa bul il has nol boon laIon up lo a
groal oxlonl bocauso of lho probIons nonlionod abovo.
CCN1klßL1lCN-kLLA1LD lAY
Conlribulion-roIalod pay, as nodoIIod in Figuros 47.5 and 47.6, is a procoss for
naIing pay docisions lhal aro basod on assossnonls of bolh lho oulconos of lho vorI
carriod oul by individuaIs and lho inpuls in lorns of IovoIs of conpolonco and
conpoloncy lhal havo infIuoncod lhoso oulconos. In olhor vords, il pays nol onIy for
vhal lhoy do bul hov lhoy do il. Conlribulion-roIalod pay focusos on vhal poopIo in
organizalions aro lhoro lo do, lhal is, lo conlribulo by lhoir sIiII and offorls lo lho
achiovononl of lho purposo of lhoir organizalion or loan.
Outcomes
The results that
have been
achieved
Inputs
How the results
have been
obtained
Contribution
The part played in
achieving a team
or corporate goal
FIgurc 47.5 Conlribulion pay nodoI (1)
Paying for past performance Paying for future success
Paying for contribution
Results Competence
+
=
FIgurc 47.6 Conlribulion pay nodoI (2)
Tho caso for conlribulion-roIalod pay vas nado by Brovn and Arnslrong (1999) as
foIIovs:
Contrìbutìon cupturos tho luíí scopo ol vhut poopío do, tho íovoí ol skìíí und compo-
tonco thoy uppíy und tho rosuíts thoy uchìovo, vhìch uíí contrìbuto to tho orgunìzutìon
uchìovìng ìts íong-torm gouís. Contrìbutìon puy vorks by uppíyìng tho mìxod modoí ol
porlormunco munugomont: ussossìng ìnputs und outputs und comìng to u concíusìon on
tho íovoí ol puy lor poopío ìn thoìr roíos und thoìr vork, both to tho orgunìzutìon und ìn
tho murkot, consìdorìng both pust porlormunco und thoìr luturo potontìuí.
\aín fca|urc·
Conlribulion-roIalod pay rovards poopIo for bolh lhoir porfornanco (oulconos) and
lhoir conpolonco (inpuls). Iay avards can bo nado as consoIidalod pay incroasos,
bul in sono schonos lhoro is aIso scopo for cash bonusos. Tho foaluros of conlribu-
lion-roIalod pay aro iIIuslralod in Figuro 47.7.
Apay for conlribulion schono incorporaling conpolonco and conlribulion pay in lho
forn of consoIidalod incroasos and cash bonusos dovoIopod for lho Shav Trusl is
nodoIIod in Figuro 47.8.
Contìngont puy 7l7
Agreed
outcomes
(targets)
Performance
measures
Performance
(results
achieved)
Rating or
assessment
Methodology
Contribution
pay
Agreed
competence
requirements
Competence
level
definitions
Evidence of
competence
level
achieved
FIgurc 47.7 Conlribulion-roIalod pay
SKlLL-ßASLD lAY

SIiII-basod pay providos onpIoyoos vilh a dirocl IinI bolvoon lhoir pay progrossion
and lho sIiIIs lhoy havo acquirod and can uso offoclivoIy. Il focusos on vhal sIiIIs lho
businoss vanls lo pay for and vhal onpIoyoos nusl do lo dononslralo lhon. Il is
lhoroforo a poopIo-basod ralhor lhan a ¡ob-basod approach lo pay. Rovards aro roIalod
lo lho onpIoyoo's abiIily lo appIy a vidor rango or a highor IovoI of sIiIIs lo difforonl
¡obs or lasIs. Il is nol IinIod sinpIy lo lho scopo of a dofinod ¡ob or a proscribod sol of
lasIs.
A sIiII nay bo dofinod broadIy as a Ioarnl abiIily lhal inprovos vilh praclico ovor
lino. For sIiII-basod pay purposos lho sIiIIs nusl bo roIovanl lo lho vorI. SIiII-basod
pay is aIso Inovn as ÍnovIodgo-basod pay', bul lho lorns aro usod inlorchangoabIy,
InovIodgo boing rogardod IoosoIy as lho undorslanding of hov lo do a ¡ob or corlain
lasIs.
£
90% Recruitment
Consolidated increases related
to competence
Highly competent: aligned to
market rate
Bonuses for exceptional contribution -
may be consolidated if exceptional
contribution sustained
95%
97.5%
100% Reference point
A
B
110% C
FIgurc 47.8 Conlribulion-roIalod pay nodoI (Shav Trusl)
Appííca|íon
SIiII-basod pay vas originaIIy appIiod nainIy lo oporalivos in nanufacluring firns,
bul il has boon oxlondod lo lochnicians and vorIors in rolaiIing, dislribulion, caloring
and olhor sorvico induslrios. Tho broad oquivaIonl of sIiII-basod pay for nanagoriaI,
profossionaI and adninislralivo slaff and InovIodgo vorIors is conpolonco-roIalod
pay, vhich rofors lo oxpoclod bohaviour as voII as, oflon, lo InovIodgo and sIiII
roquirononls. Thoro is cIoarIy a slrong faniIy rosonbIanco bolvoon sIiII- and conpo-
lonco-roIalod pay ÷ oach is concornod vilh rovarding lho porson as voII as lho ¡ob.
Bul lhoy can bo dislinguishod bolh by lho vay in vhich lhoy aro appIiod, as doscribod
boIov, and by lho criloria usod.
\aín fca|urc·
SIiII-basod pay vorIs as foIIovs:
SIiII bIocIs or noduIos aro dofinod. Thoso incorporalo individuaI sIiIIs or cIuslors
of sIiIIs lhal vorIors nood lo uso and vhich viII bo rovardod by oxlra pay vhon
lhoy havo boon acquirod and lho onpIoyoo has dononslralod lho abiIily lo uso
lhon offoclivoIy.
Tho sIiII bIocIs aro arrangod in a hiorarchy, vilh naluraI broaI poinls bolvoon
cIoarIy dofinabIo difforonl IovoIs of sIiIIs.
Tho succossfuI conpIolion of a sIiII noduIo or sIiII bIocI viII rosuIl in an incro-
nonl in pay. This viII dofino hov lho pay of individuaIs can progross as lhoy gain
oxlra sIiIIs.
Molhods of vorifying lhal onpIoyoos havo acquirod and can uso lho sIiIIs al
dofinod IovoIs aro oslabIishod.
Arrangononls for ćross-lraining' aro nado. Thoso viII incIudo Ioarning noduIos
and lraining progrannos for oach sIiII bIocI.
Concíu·íon·
SIiII-basod pay syslons aro oxponsivo lo inlroduco and nainlain. Thoy roquiro a
considorabIo invoslnonl in sIiII anaIysis, lraining and losling. AIlhough in lhoory a
sIiII-basod schono viII pay onIy for nocossary sIiIIs, in praclico individuaIs viII nol
bo using lhon aII al lho sano lino and sono nay bo usod infroquonlIy, if al aII.
InovilabIy, lhoroforo, payroII cosls viII riso. If lhis incroaso is addod lo lho cosl of
lraining and corlificalion, lho lolaI of addilionaI cosls nay bo considorabIo. Tho advo-
calos of sIiII-basod pay cIain lhal lhoir schonos aro soIf-financing bocauso of lho
rosuIling incroasos in produclivily and oporalionaI officioncy. Bul lhoro is IillIo
Contìngont puy 7l9
ovidonco lhal such is lho caso. For lhis roason, sIiII-basod schonos havo novor boon
vory popuIar in lho UK and sono conpanios havo disconlinuod lhon.
SLkVlCL-kLLA1LD lAY
Dcfíncd
Sorvico-roIalod pay providos fixod incrononls lhal aro usuaIIy paid annuaIIy lo
poopIo on lho basis of conlinuod sorvico oilhor in a ¡ob or a grado in a pay spino slruc-
luro. Incrononls nay bo vilhhoId for unaccoplabIo porfornanco (aIlhough lhis is
raro) and sono slrucluros havo a ńoril bar', vhich Iinils incrononls unIoss a dofinod
IovoI of ńoril' has boon achiovod. This is lho lradilionaI forn of conlingonl pay and is
sliII connon in lho pubIic and voIunlary soclors and in oducalion and lho hoaIlh
sorvico, aIlhough il has IargoIy boon abandonod in lho privalo soclor.
Argumcn|· for
Sorvico-roIalod pay is supporlod by nany unions bocauso lhoy porcoivo il as boing
fair ÷ ovoryono is lroalod oquaIIy. Il is foIl lhal IinIing pay lo lino in lho ¡ob ralhor
lhan porfornanco or conpolonco avoids lho parliaI and iII-infornod ¡udgononls
aboul poopIo lhal nanagors aro prono lo naIo. Sono poopIo boIiovo lhal lho prin-
cipIo of rovarding poopIo for IoyaIly lhrough conlinuod sorvico is a good ono.
Argumcn|· agaín·|
Tho argunonls againsl sorvico-roIalod pay aro lhal:
il is inoquilabIo in lho sonso lhal an oquaI aIIocalion of pay incroasos according lo
sorvico doos nol rocognizo lho facl lhal sono poopIo viII bo conlribuling noro
lhan olhors and shouId bo rovardod accordingIy,
il doos nol oncourago good porfornanco, indood, il rovards poor porfornanco
oquaIIy,
il is basod on lho assunplion lhal porfornanco inprovos vilh oxporionco, bul
lhis is nol aulonalicaIIy lho caso ÷ il has boon said lhal a porson vilh fivo yoars'
oxporionco nay in praclico onIy havo had ono yoar's oxporionco ropoalod fivo
linos,
il can bo oxponsivo ÷ ovoryono nay drifl lo lho lop of lho scaIo, ospociaIIy in linos
of Iov slaff lurnovor, bul lho cosl of lhoir pay is nol ¡uslifiod by lho addod vaIuo
lhoy provido.
Tho argunonls againsl sorvico-roIalod pay havo convincod nosl nanagononls,
aIlhough sono aro concornod aboul nanaging any olhor forn of conlingonl-pay
schonos (incrononlaI pay scaIos do nol nood lo bo nanagod al aII). Thoy nay aIso
havo lo faco slrong rosislanco fron lhoir unions and can bo unsuro of vhal oxil
slralogy lhoy shouId adopl if lhoy vanl lo chango. Thoy nay lhoroforo slicI vilh lho
 .
CHClCL Cl AllkCACH
Tho firsl choico is vholhor or nol lo havo conlingonl pay roIalod lo porfornanco,
conpolonco, conlribulion or sIiII. IubIic or voIunlary soclor organizalions vilh fixod
incrononlaI syslons (pay spinos), vhoro progrossion is soIoIy basod on sorvico, nay
vanl lo rolain lhon bocauso lhoy do nol dopond on possibIy biasod ¡udgononls by
nanagors and lhoy aro porcoivod as boing fair ÷ ovoryono gols lho sano ÷ and oasiIy
nanagod. Hovovor, lho fairnoss of such syslons can bo quoslionod. Is il fair for a
poor porfornor lo bo paid noro lhan a good porfornor sinpIy for boing lhoro`
Tho aIlornalivos lo fixod incrononls aro oilhor spol ralos or sono forn of conlin-
gonl pay. Spol ralo syslons in lhoir purosl forn aro gonoraIIy onIy usod for sonior
nanagors, shop fIoor or rolaiI vorIors, and in snaIIor organizalions and nov busi-
nossos vhoro lho nood for fornaI praclicos has nol yol boon rocognizod.
If il is docidod lhal a noro fornaI lypo of conlingonl pay for individuaIs shouId bo
adoplod, lho choico is bolvoon lho various lypos of porfornanco pay, conpolonco-
roIalod or conlribulion-roIalod pay and sIiII-basod pay, as sunnarizod in TabIo 47.1.
Tho aIlornalivo lo individuaI conlingonl pay is loan pay, as doscribod Ialor. Iay
roIalod lo organizalionaI porfornanco is anolhor aIlornalivo, aIlhough sono organi-
zalions havo such schonos in addilion lo individuaI conlingonl pay.
kLADlNLSS lCk lNDlVlDLAL CCN1lNCLN1 lAY
Tho 10 quoslions lo bo ansvorod vhon assossing roadinoss for individuaI conlingonl
pay aro:
1. Is il boIiovod lhal conlingonl pay viII bonofil lho organizalion in lho sonso of
onhancing ils abiIily lo achiovo ils slralogic goaIs`
2. Aro lhoro vaIid and roIiabIo noans of noasuring porfornanco`
3. Is lhoro a conpoloncy franovorI and aro lhoro nolhods of assossing IovoIs of
conpoloncy ob¡oclivoIy (or couId such a franovorI bo roadiIy dovoIopod)`
Contìngont puy 72l
Typc of Main fcaturcs Advantagcs Disadvantagcs Wbcn
scbcmc appropriatc
lorlormunco- lncrousos to Muy motìvuto Muy  motìvuto lor poopío vho
roíutod puy busìc puy or tbut thìs ìs koíìos on uro íìkoíy to bo
bonusos uro uncortuìn) ¡udgomonts ol motìvutod by
roíutod to Lìnks rourds to porlormunco monoy
ussossmont ol ob¡octìvos vhìch muy bo ln orgunìzutìons
porlormunco Moots tho nood to sub¡octìvo vìth u
bo rovurdod lor lro¡udìcìuí to porlormunco-
uchìovomont toumvork orìontutod
Doíìvors mossugo locusos on cuíturo
thut good outputs, not \hon
porlormunco ìs quuíìty porlormunco
ìmportunt und koíìos on good cun bo
vìíí bo rovurdod porlormunco mousurod
munugomont ob¡octìvoíy
procossos
Dìllìcuít to
munugo voíí
Compotonco- luy ìncrousos locus uttontìon Assossmont ol As purt ol un
roíutod puy uro roíutod to tho on nood to compotonco ìntogrutod
íovoí ol uchìovo hìghor íovoís muy bo upprouch to
compotonco íovoís ol dìllìcuít HkM vhoro
compotonco lgnoros outputs - compotoncìos
Lncourugos dungor ol puyìng uro usod ucross u
compotonco lor compotoncos numbor ol
dovoíopmont thut vìíí not bo uctìvìtìos
Cun bo ìntogrutod usod \horo
vìth othor koíìos on voíí- compotonco ìs u
uppíìcutìons ol truìnod und koy luctor vhoro
compotoncy- commìttod íìno ìt muy bo
busod Hk munugors ìnupproprìuto
munugomont or hurd to
mousuro
outputs
\horo voíí-
ostubíìshod
compotoncy
lrumovorks
oxìst
TabIc 47.1 Conparison of individuaI conlingonl pay schonos

4. Aro lhoro offoclivo porfornanco nanagononl procossos lhal Iino nanagors
boIiovo in and carry oul conscionliousIy`
5. Aro Iino nanagors viIIing lo assoss porfornanco or conlribulion and capabIo of
doing so`
6. Aro Iino nanagors capabIo of naIing and connunicaling conlingonl pay doci-
sions`
7. Is lho HR funclion capabIo of providing advico and guidanco lo Iino nanagors
on nanaging conlingonl pay`
8. Can procoduros bo dovoIopod lo onsuro fairnoss and consisloncy in assossnonls
and pay docisions`
9. Aro onpIoyoos and lrado unions viIIing lo accopl lho schono`
10. Do onpIoyoos lrusl nanagononl lo doIivor lho doaI`
Contìngont puy 723
Typc of Main fcaturcs Advantagcs Disadvantagcs Wbcn
scbcmc appropriatc
Contrìbutìon- lncrousos ìn puy kovurds poopío As lor both lkl \hon ìt ìs
roíutod puy or bonusos uro not oníy lor vhut und compotonco- boíìovod thut u
roíutod both to thoy do but hov roíutod puy - ìt voíí-roundod
ìnputs thoy do ìt muy bo hurd to upprouch
tcompotonco) mousuro covorìng both
und outputs contrìbutìon und ìnputs und
tporlormunco) ìt ìs dìllìcuít to outputs ìs
munugo voíí upproprìuto
Skìíí-busod lncromonts Lncourugos und Cun bo oxponsìvo Cn tho shop
puy roíutod to tho rovurds tho vhon poopío uro líoor or ìn rotuìí
ucquìsìtìon ol ucquìsìtìon ol puìd lor skìíís orgunìzutìons
skìíís skìíís thoy don't uso
Sorvìco- lncromonts No scopo lor luìís to rovurd \horo thìs ìs tho
roíutod puy roíutod to sorvìco bìus, ousy to thoso vho trudìtìonuí
ìn grudo munugo contrìbuto moro upprouch und
trudo unìons
opposo
uítornutìvos
TabIc 47.1 
DLVLLCllNC AND lMlLLMLN1lNC lNDlVlDLAL
CCN1lNCLN1 lAY
Tho 10 slops roquirod lo dovoIop and inpIononl individuaI conlingonl pay aro:
1. AnaIyso cuIluro, slralogy and oxisling procossos, incIuding lho grado and pay
slrucluro, porfornanco nanagononl and nolhods of progrossing pay or
avarding cash bonusos.
2. Docido vhich forn of conlingonl pay is nosl approprialo.
3. Sol oul ains lhal dononslralo hov conlribulion pay viII hoIp lo achiovo lho
organizalion's slralogic goaIs.
4. Connunicalo ains lo Iino nanagors' slaff and invoIvo lhon in lho dovoIopnonl
of lho schono.
5. Dolornino hov lho schono viII oporalo.
6. DovoIop or inprovo porfornanco nanagononl procossos covoring lho soIoclion
of porfornanco noasuros, docisions on conpolonco roquirononls, nolhods of
agrooing ob¡oclivos and lho procoduro for conducling ¡oinl roviovs.
7. Connunicalo inlonlions lo Iino nanagors and slaff.
8. IiIol losl lho schono and anond as nocossary.
9. Irovido lraining lo aII concornod.
10. Launch lho schono and ovaIualo ils offoclivonoss aflor lho firsl roviov.
1LAM-ßASLD lAY
Toan-basod pay providos rovards lo loans or groups of onpIoyoos carrying oul
siniIar and roIalod vorI lhal is IinIod lo lho porfornanco of lho loan. Iorfornanco
nay bo noasurod in lorns of oulpuls and/or lho achiovononl of sorvico doIivory
slandards. Tho quaIily of lho oulpul and lho opinion of cuslonors aboul sorvico
IovoIs aro aIso oflon laIon inlo accounl.
As doscribod by Arnslrong and Rydon (1996), loan pay is usuaIIy paid in lho forn
of a bonus lhal is sharod anongsl loan nonbors in proporlion lo lhoir baso ralo of
pay (nuch Ioss froquonlIy, il is sharod oquaIIy). IndividuaI loan nonbors nay bo
oIigibIo for conpolonco-roIalod or sIiII-basod pay bul nol for porfornanco-roIalod
pay.
Advan|agc· of |cam pa,
Toan pay can:
oncourago offoclivo loanvorIing and co-oporalivo bohaviour,
cIarify loan goaIs and priorilios,
onhanco fIoxibIo vorIing vilhin loans,
oncourago nuIlisIiIIing,
provido an inconlivo for lho loan coIIoclivoIy lo inprovo porfornanco,
oncourago Ioss offoclivo loan nonbors lo inprovo lo nool loan slandards.
Dí·advan|agc· of |cam pa,
Tho disadvanlagos of loan pay aro lhal:
il onIy vorIs in cohosivo and naluro loans,
individuaIs nay rosonl lho facl lhal lhoir ovn offorls aro nol rovardod spocifi-
caIIy,
poor prossuro, vhich conpoIs individuaIs lo conforn lo group norns, couId bo
undosirabIo.
Condí|íon· ·uí|abíc for |cam pa,
Toan pay is noro IiIoIy lo bo approprialo vhon:
loans can bo roadiIy idonlifiod and dofinod,
loans aro voII oslabIishod,
lho vorI carriod oul by loan nonbors is inlorroIalod ÷ loan porfornanco
doponds on lho coIIoclivo offorls of loan nonbors,
largols and slandards of porfornanco can bo dolorninod and agrood roadiIy vilh
loan nonbors,
accoplabIo noasurononls of loan porfornanco conparod vilh largols and slan-
dards aro avaiIabIo,
gonoraIIy, lho fornuIa for loan pay nools lho criloria for porfornanco pay.
CkCANlZA1lCN-\lDL SCHLMLS
Organizalion-vido bonus schonos pay suns of nonoy lo onpIoyoos lhal aro roIalod
lo conpany or pIanl-vido porfornanco. Thoy aro dosignod lo sharo lho conpany's
prosporily vilh ils onpIoyoos and lhus lo incroaso lhoir connilnonl lo ils ob¡oclivos
and vaIuos. Bocauso lhoy do nol roIalo rovard diroclIy lo individuaI offorl, lhoy aro
nol offoclivo as dirocl nolivalors, aIlhough gain-sharing schonos can focus diroclIy
on vhal noods lo bo dono lo inprovo porfornanco and so gol onpIoyoos invoIvod in
produclivily inprovononl or cosl-roduclion pIans. Tho lvo nain lypos of schonos
aro gain sharing and profil sharing.
Contìngont puy 725
Caín ·haríng
Gain sharing is a fornuIa-basod conpany or faclory-vido bonus pIan lhal providos
for onpIoyoos lo sharo in lho financiaI gains rosuIling fron incroasos in addod vaIuo
or anolhor noasuro of produclivily. Tho IinI bolvoon lhoir offorls and lho payoul can
usofuIIy bo nado oxpIicil by invoIving lhon in anaIysing rosuIls and idonlifying
aroas for inprovononl.
|rofí| ·haríng
Irofil sharing is lho paynonl lo oIigibIo onpIoyoos of suns in lho forn of cash or
sharos roIalod lo lho profils of lho businoss. Tho anounl sharod nay bo dolorninod
by a pubIishod or unpubIishod fornuIa or onliroIy al lho discrolion of nanagononl.
Irofil sharing diffors fron gain sharing in lhal lho fornor is basod on noro lhan
inprovod produclivily. A nunbor of faclors oulsido lho individuaI onpIoyoo's
conlroI conlribulo lo profil. Gain sharing ains lo roIalo ils payouls nuch noro spocif-
icaIIy lo produclivily and porfornanco inprovononls vilhin lho conlroI of
onpIoyoos. Il is nol possibIo lo uso profil-sharing schonos as dirocl inconlivos as for
nosl onpIoyoos lho IinI bolvoon individuaI offorl and lho rovard is so ronolo. Bul
lhoy can incroaso idonlificalion vilh lho conpany and nany nanagononls oporalo
profil-sharing schonos bocauso lhoy boIiovo lhal lhoy shouId sharo lho conpany's
succoss vilh ils onpIoyoos.
Sharc ovncr·híp ·chcmc·
Thoro aro lvo nain forns of sharo ovnorship pIans: Sharo Inconlivo IIans (SIIS) and
Savo-As-You-Earn (SAYE) schonos. Thoso can bo InIand Rovonuo-approvod and if so,
produco lax advanlagos as voII as IinIing financiaI rovards in lho Iongor lorn lo lho
prosporily of lho conpany.
Sharc ínccn|ívc pían·
Sharo inconlivo pIans nusl bo InIand Rovonuo-approvod. Thoy provido onpIoyoos
vilh a lax-officionl vay of purchasing sharos in lhoir organizalion lo vhich lho
onpIoyor can add ´froo', ´parlnorship' or ńalching' sharos and vhich can aIso bo
issuod as sharos. Thoro is a Iinil lo lho anounl of froo sharos lhal can bo providod lo
onpIoyoos (£3,000 a yoar in 2004). EnpIoyoos can uso up lo £1,500 a yoar (in 2004) oul
of pro-lax and pro-NalionaI Insuranco Conlribulions pay lo buy parlnorship sharos,
and onpIoyors can givo nalching sharos al a ralio of up lo lvo nalching sharos for
oach parlnorship sharo.
Savc-A·-You-Larn ·chcmc·
SAYE schonos nusl bo InIand Rovonuo-approvod. Thoy provido onpIoyoos vilh lho
oplion lo buy sharos in lho conpany in lhroo, fivo or sovon yoars' lino al loday's
prico, or a discounl of up lo 20 por conl of lhal prico. Iurchasos aro nado fron a
savings accounl lo vhich lho onpIoyoo pays an agrood sun oach nonlh. Tho
nonlhIy savings nusl bo bolvoon £5 and £250. Incono lax is nol chargoabIo vhon lho
oplion is granlod.
Contìngont puy 727
Lmpíoyoo bonolìts, ponsìons und
uííovuncos
LMlLCYLL ßLNLll1S
Dcfíní|íon
EnpIoyoo bonofils aro oIononls of ronunoralion givon in addilion lo lho various
forns of cash pay. Thoy aIso incIudo ilons lhal aro nol slriclIy ronunoralion, such as
annuaI hoIidays.
Cb¡cc|ívc·
Tho ob¡oclivos of lho onpIoyoo bonofils poIicios and praclicos of an organizalion aro
lo:
provido an allraclivo and conpolilivo lolaI ronunoralion pacIago vhich bolh
allracls and rolains high-quaIily onpIoyoos,
provido for lho porsonaI noods of onpIoyoos,
incroaso lho connilnonl of onpIoyoos lo lho organizalion,
provido for sono poopIo a lax-officionl nolhod of ronunoralion.
Nolo lhal lhoso ob¡oclivos do nol incIudo ´lo nolivalo onpIoyoos'. This is bocauso lho

nornaI bonofils providod by a businoss soIdon naIo a dirocl and innodialo inpacl
on porfornanco. Thoy can, hovovor, croalo noro favourabIo alliludos lovards lho
businoss vhich can inprovo connilnonl and organizalionaI porfornanco in lho
Iongor lorn.
\aín |,pc· of cmpío,cc bcncfí|·
Bonofils can bo dividod inlo lho foIIoving calogorios:
Pcnsicn sc|cmcs: lhoso aro gonoraIIy rogardod as lho nosl inporlanl onpIoyoo
bonofil.
Pcrscncl sccuriiq: lhoso aro bonofils vhich onhanco lho individuaI's porsonaI and
faniIy socurily vilh rogard lo iIInoss, hoaIlh, accidonl or Iifo insuranco.
lincncicl cssisicncc: Ioans, houso purchaso schonos, roIocalion assislanco and
discounls on conpany goods or sorvicos.
Pcrscncl ncc!s: onlilIononls vhich rocognizo lho inlorfaco bolvoon vorI and
donoslic noods or rosponsibiIilios, og hoIidays and olhor forns of Ioavo, chiId
caro, caroor broaIs, rolirononl counsoIIing, financiaI counsoIIing and porsonaI
counsoIIing in linos of crisis, filnoss and rocroalionaI faciIilios.
Ccmpcnq ccrs cn! pcircl: sliII a nuch approcialod bonofil in spilo of lho facl lhal
cars aro nov noro hoaviIy laxod.
Oi|cr |cncjiis. vhich inprovo lho slandard of Iiving of onpIoyoos such as subsi-
dizod noaIs, cIolhing aIIovancos, rofund of loIophono cosls, nobiIo phonos (as a
´porI' ralhor lhan a nocossily) and crodil card faciIilios.
lnicngi|lc |cncjiis: characlorislics of lho organizalion vhich conlribulo lo lho
quaIily of vorIing Iifo and naIo il an allraclivo and vorlhvhiIo pIaco in vhich lo
bo onpIoyod.
Taxa|íon
Il shouId bo rononborod lhal nosl bonofils aro laxabIo as ´bonofils in Iind', lho
nolabIo oxcoplions boing approvod ponsion schonos, noaIs vhoro lhoso aro gonoraIIy
avaiIabIo lo onpIoyoos, car parIing spacos, profossionaI subscriplions and acconno-
dalion vhoro lhis is usod soIoIy for porforning lho dulios of lho ¡ob.
fícxíbíc bcncfí|·
FIoxibIo bonofil schonos (sonolinos caIIod cafoloria schonos) aIIov onpIoyoos lo
docido, vilhin corlain Iinils, on lho naIo-up of lhoir bonofils pacIago. Schonos can
aIIov for a choico vilhin bonofils or a choico bolvoon bonofils. EnpIoyoos aro
aIIocalod an individuaI aIIovanco lo spond on bonofils. This aIIovanco can bo usod lo
svilch bolvoon bonofils, lo chooso nov onos or lo aIlor lho ralo of covor vilhin
oxisling bonofils. Sono coro bonofils such as sicI pay nay Iio oulsido lho schono and
cannol bo ´fIoxod'. EnpIoyoos can shifl lho baIanco of lhoir lolaI rovard pacIago
bolvoon pay and bonofils, oilhor adding lo lhoir bonofils aIIovanco by sacrificing
saIary or laIing any unsponl bonofil aIIovanco as cash.
FIoxibIo bonofil schonos provido onpIoyoos vilh a dogroo of choico on vhal bono-
fils lhoy vanl, according lo lhoir noods. A fIoxibIo bonofil poIicy can savo onpIoyors
nonoy on bonofils lhal aro noilhor vanlod nor noodod.
To|aí rcmuncra|íon
Tho concopl of lolaI ronunoralion is basod on lho principIo of lroaling aII aspocls
of pay and bonofils provision as a vhoIo. Tho cosl lo lho businoss and lho vaIuo
lo lho individuaI of oach oIononl can bo assossod vilh lho ob¡ocl of ad¡usling
lho pacIago according lo organizalionaI and individuaI noods. Considoralion
can aIso bo givon lo lho ovoraII conpolilivonoss of lho lolaI pacIago in lho narIol
pIaco.
CCCLlA1lCNAL lLNSlCN SCHLMLS
Tho roasons for having a vorlhvhiIo ponsion schono aro lhal il:
dononslralos lhal lho organizalion is a good onpIoyor,
allracls and rolains high-quaIily poopIo by hoIping lo nainlain conpolilivo IovoIs
of lolaI ronunoralion,
indicalos lhal lho organizalion is concornod aboul lho Iong-lorn inlorosls of ils
onpIoyoos.
Dcfíní|íon
An occupalionaI ponsion schono is an arrangononl undor vhich an onpIoyor
providos ponsions for onpIoyoos vhon lhoy roliro, incono for lho faniIios of
nonbors vho dio, and doforrod bonofils lo nonbors vho Ioavo. A ´group schono' is
lho lypicaI schono vhich providos for a nunbor of onpIoyoos.
Cpcra|íon
OccupalionaI ponsion schonos aro adninislorod by lrusls vhich aro supposod lo bo
Lmpíoyoo bonolìts, ponsìons und uííovuncos 73l
oulsido lho onpIoyor's conlroI. Tho lrusloos aro rosponsibIo for lho ponsion fund
fron vhich ponsion bonofils aro paid.
Tho ponsion fund is fod by conlribulions fron onpIoyors and usuaIIy (bul nol
aIvays) onpIoyoos. Tho sizo of lho fund and ils capacily lo nool fuluro connilnonls
dopond bolh on lho sizo of conlribulions and on lho incono lho lrusloos can gonoralo.
Thoy do lhis by invosling fund nonoy vilh lho hoIp of advisors in slocIs, sharos and
olhor socurilios, or lhrough an insuranco conpany. In lho Iallor caso, insuranco
conpanios offor oilhor a mcncgc! jun! ÷ a pooI of nonoy nanagod by lho insuranco
conpany for a nunbor of cIionls ÷ or a scgrcgcic! jun! vhich is nanagod for a singIo
cIionl.
Con|ríbu|íon·
In a ccniri|uicrq sc|cmc onpIoyoos as voII as onpIoyors naIo conlribulions lo lho
ponsion fund. IonsionabIo oarnings aro lolaI oarnings fron vhich nay bo oxcIudod
such paynonls as ovorlino or spociaI bonusos. A sun oquaI lo lho Slalo fIal ralo
ponsion nay aIso bo oxcIudod.
Tho IovoI of conlribulions varios considorabIy, aIlhough in a lypicaI conlribulory
schono, onpIoyoos vouId bo IiIoIy lo conlribulo aboul 5 por conl of lhoir oarnings
and onpIoyors vouId conlribulo approxinaloIy lvico lhal anounl.
Approvcd ·chcmc
Monbors of an occupalionaI schono lhal has boon approvod by lho InIand Rovonuo
(an cpprctc! sc|cmc) oblain fuII lax roIiof on lhoir conlribulions. Tho conpany aIso
rocovors lax on ils conlribulions and lho incono lax doduclibIo fron gains roaIizod on
UK invoslnonls. This naIos a ponsion fund lho nosl lax-officionl forn of saving
avaiIabIo in lho UK.
EnpIoyors can oslabIish unapprovod ponsion schonos vhich provido bonofils in
oxcoss of approvod schonos bul al lho oxponso of lho gonorous lax aIIovancos for lho
Iallor lypo of schono.
Rc|íríng agc and ·cx dí·crímína|íon
TradilionaIIy, lho roliring ago vas 65 for non and 60 for vonon. Hovovor, undor lho
Sox Discrininalion Acl (1986), il is unIavfuI for onpIoyors lo roquiro fonaIo
onpIoyoos lo roliro al an oarIior ago lhan naIo onpIoyoos. In ils ¡udgononl on lho
8cr|cr t Gucr!icn Rcqcl |xc|cngc caso on 17 May 1990 lho Europoan Courl ruIod lhal
ponsion vas ´pay' undor ArlicIo 119 of lho Troaly of Rono (vhich providod for oquaI
pay) and lhal il vas unIavfuI lo discrininalo bolvoon non and vonon vilh rogard
lo ponsion righls. Il has sinco boon agrood lhal ponsions vouId nol bo considorod as
pay prior lo 17 May 1990.
ßcncfí|· ·|a|cmcn|·
Evory nonbor of an occupalionaI schono is onlilIod lo an annuaI slalononl solling
oul his or hor prospoclivo bonofils.
T,pc· of occupa|íonaí pcn·íon ·chcmc·
A dofinod bonofil or jincl sclcrq group ponsion schono offors a guaranlood ponsion,
parl of vhich nay bo surrondorod for a lax-froo cash sun. In ils finaI pay or saIary
forn, lho ponsion is a fraclion of finaI ponsionabIo oarnings for oach yoar of sorvico
(lypicaIIy 1/60lh). To achiovo lho naxinun lvo-lhirds ponsion in a 1/60lh schono
vouId lhoroforo laIo 40 yoars' sorvico. Dofinod bonofil schonos provido onpIoyors
vilh a prodiclabIo IovoI of ponsion. Bul for onpIoyors, lhoy can bo coslIy and unpro-
diclabIo bocauso lhoy havo lo conlribulo vhalovor is nocossary lo buy lho pronisod
bonofils.
In a dofinod conlribulion or mcncq purc|csc schono onpIoyors fix lho conlribulions
lhoy vanl lo pay for onpIoyoos by undorlaIing lo pay a dofinod porconlago of oarn-
ings irrospoclivo of lho bonofils avaiIabIo on rolirononl. Tho rolirononl ponsion is
lhoroforo vhalovor annuaI paynonl can bo purchasod vilh lho nonoy accunuIalod
in lho fund for a nonbor.
Adofinod conlribulion schono offors lho onpIoyoo unprodiclabIo bonofils bocauso
lhoso dopond on lho lolaI vaIuo of lho conlribulions invoslod, lho invoslnonl rolurns
achiovod and lho ralo al vhich lho accunuIalod fund can bo convorlod inlo ponsion
on rolirononl. For lho onpIoyor, hovovor, il offors corlainly of cosls.
S|a|choídcr pcn·íon·
AII onpIoyors vilh fivo or noro poopIo on lhoir payroII aro obIigod lo provido accoss
lo a slaIohoIdor ponsion for onpIoyoos vho havo no accoss lo a conpany ponsion.
SlaIohoIdor ponsions viII bo nonoy-purchaso schonos and, iniliaIIy, onpIoyors do
nol havo lo naIo a conlribulion and onpIoyoos aro nol roquirod lo laIo lhon oul
(aIlhough lhoso condilions nay bo changod). EnpIoyors can dosignalo a slaIohoIdor
schono fron a providor bul in choosing ono aro roquirod lo consuIl vilh lho
onpIoyoos concornod.
Lmpíoyoo bonolìts, ponsìons und uííovuncos 733
Dcvcíopmcn|· ín pcn·íon proví·íon
As lho CIID (2003b) connonls:
1ho íust docudo hus soon u sìgnìlìcunt chungo ìn tho nuturo ol occuputìonuí schomos
ollorod to nov ompíoyoos. 1horo hus boon u shìlt uvuy lrom dolìnod bonolìt schomos
lor nov ompíoyoos ìn luvour ol dolìnod contrìbutìon schomos. 1horo hus uíso boon u
sìgnìlìcunt grovth ìn mìxod und hybrìd typos ol ponsìon píun, und u roductìon ìn tho
proportìon ol tho totuí vorklorco vho uro mombors ol occuputìonuí schomos ol uny
typo.
Tho novo avay fron dofinod bonofil (finaI saIary) schonos has IargoIy boon bocauso
of lho incroasing and unprodiclabIo cosls of such schonos. Bul as lho CIID slalos, Án
inporlanl drivor of lhoso changos has boon donographic, vilh a docIining birlh ralo
and faII in lho avorago rolirononl ago, conbining vilh lho significanl incroaso in Iifo
oxpoclancy lo push up schono cosls. Groalor Iabour narIol fIoxibiIily nay aIso bo a
conlribulory faclor.' Sono organizalions such as lho civiI sorvico aro inlroducing
nonoy purchaso schonos lo hoIp lo rocruil and rolain youngor onpIoyoos in
spociaIisl fioIds.
Thc con|ríbu|íon of HR
As suggoslod by lho CIID, HR can conlribulo lo lho dovoIopnonl of ponsions poIicy
by:
dofining and connunicaling cIoar ponsion goaIs aIignod lo lho noods of lho orga-
nizalion and ils slaff,
advising on lho dosign and inpIononlalion of approprialo schonos lo achiovo
lhoso goaIs ÷ fIoxibiIily and choico on provision aro inporlanl conpononls of
lhoso dosigns lo nool lho noods of a noro divorso vorIforco,
oducaling nanagors and onpIoyoos so lhal lhoy can laIo on porsonaI rosponsi-
biIily and naIo infornod choicos on lho vay lhoy vanl lo vorI and novo inlo
rolirononl, vilh lho approprialo ponsion provision lo achiovo lhis.
ALLC\ANCLS AND C1HLk lAYMLN1S 1C LMlLCYLLS
Tho nain aroas in vhich aIIovancos and olhor spociaI paynonls nay bo nado lo
onpIoyoos aro:
Iccciicn cllcucnccs ÷ London and Iargo lovn aIIovancos nay bo paid bocauso of
housing and olhor cosl-of-Iiving difforonliaIs. AIIovancos aro paid as an addilion
lo basic pay aIlhough nany onpIoyors in offocl consoIidalo lhon by paying lho
IocaI narIol ralo vhich laIos inlo accounl oxpIicil or inpIicil Iocalion aIIovancos
and cosls.
Su|sisicncc cllcucnccs ÷ lho vaIuo of subsislonco aIIovancos for acconnodalion
and noaIs varios groalIy bolvoon organizalions. Sono havo sol ralos doponding
on Iocalion or lho grado of onpIoyoo. Olhors aIIov ´roasonabIo' ralos vilhoul any
sol scaIo bul usuaIIy, and dosirabIy, vilh guidoIinos on accoplabIo holoI and noaI
cosls.
Otcriimc pcqmcnis ÷ nosl nanuaI vorIors aro oIigibIo for paid ovorlino as voII as
nany slaff onpIoyoos up lo nanagononl IovoI. Highor-paid slaff nay rocoivo
lino off in Iiou if lhoy vorI Iongor hours. TypicaIIy organizalions lhal naIo ovor-
lino paynonls givo lino and a haIf as an ovorlino proniun fron Monday lo
Salurday, vilh doubIo lino paid on Sundays and slalulory hoIidays. Sono firns
aIso pay doubIo lino fron around noon on Salurday. WorI on na¡or slalulory
hoIidays such as Chrislnas Day and Good Friday oflon allracls highor ovorlino
proniuns.
S|iji pcqmcnis aro nado al ralos vhich usuaIIy vary according lo lho shifl arrango-
nonl. A proniun of, say, ono-lhird of basic pay nay bo givon lo poopIo vorIing
nighls vhiIo lhoso on an oarIy or Ialo day shifl nay rocoivo Ioss, a proniun, say,
of ono-fiflh of basic pay.
Sicn!-|q cn! ccll-cui cllcucnccs nay bo nado lo lhoso vho havo lo bo avaiIabIo lo
cono in lo vorI vhon roquirod. Tho aIIovanco nay bo nado as a slandard
paynonl addod lo basic pay. AIlornalivoIy, spociaI paynonls nay bo nado for
unforosoon caII-ouls.
Lmpíoyoo bonolìts, ponsìons und uííovuncos 735
Munugìng rovurd systoms
Managing rovard syslons is a conpIox and donanding businoss. This chaplor doaIs
vilh lho sub¡ocl in sovon parls:
1. Iroparalion and uso of forocasls and budgols.
2. EvaIualing lho rovard syslon.
3. Iay roviovs.
4. ConlroI.
5. Rovard procoduros.
6. RosponsibiIily for rovard nanagononl.
7. Connunicaling lo onpIoyoos.
kL\AkD ßLDCL1S AND lCkLCAS1S
Rovard budgols and forocasls aro concornod vilh ovoraII payroII cosls and lho cosls
of gonoraI and individuaI pay incroasos.
|a,roíí budgc|·
ApayroII budgol is a slalononl of lho pIannod aIIocalion and uso of hunan rosourcos
roquirod lo nool lho ob¡oclivos of lho organizalion. Il is usuaIIy a na¡or parl of lho

naslor budgol. Tho budgol is basod on forocasl IovoIs of aclivily vhich dolornino lho
nunbor of poopIo roquirod. Tho annuaI payroII budgol is a producl of lho nunbor of
poopIo lo bo onpIoyod and lho ralos al vhich lhoy viII bo paid during lho budgol
yoar. Il viII incorporalo lho cosl of bonofils (og ponsions conlribulions) and lho
onpIoyor's NalionaI Insuranco conlribulions. Tho budgol viII bo ad¡uslod lo laIo
accounl of forocasls covoring incroasos or docroasos lo onpIoyoo nunbors, lho IiIoIy
cosls of gonoraI and individuaI pay roviovs, changos lo lho pay slrucluro and
incroasos lo lho cosl of onpIoyoo bonofils.
Managors in chargo of budgol conlros viII havo lhoir ovn payroII budgol vhich
lhoy havo lo accounl for. This budgol viII incorporalo forocasls of pay incroasos as
voII as lho nanagor's assossnonl of lho nunbors of onpIoyoos noodod in difforonl
calogorios. Managors viII bo roquirod lo onsuro lhal individuaI pay incroasos aro
nado vilhin lhal budgol, vhich nay, hovovor, bo fIoxod upvards or dovnvards
if aclivily IovoIs or lho assunplions on vhich forocasl pay incroasos voro basod
chango.
Rcvícv budgc|·
A gonoraI roviov budgol sinpIy incorporalos lho forocasl cosls of any across-lho-
board pay incroasos lhal nay bo granlod or nogolialod during lho budgol yoar.
IndividuaI porfornanco roviov budgols nay bo oxprossod as lho porconlago incroaso
lo lho payroII lhal can bo aIIovod for porfornanco, sIiII-basod or conpolonco-roIalod
incroasos. Tho sizo of lho budgol viII bo affoclod by lho foIIoving considoralions:
lho anounl lho organizalion boIiovos il can afford lo pay on lho basis of budgolod
rovonuo, profil, and payroII cosls,
lho organizalion's poIicios on pay progrossion ÷ lho sizo and rango of incroasos,
any aIIovancos lhal nay nood lo bo nado for incroasing individuaI ralos of pay lo
ronovo anonaIios, for oxanpIo aflor a ¡ob ovaIualion oxorciso.
Tho basic budgol vouId bo sol for lho organizalion as a vhoIo bul, vilhin lhal figuro,
doparlnonlaI budgols couId bo fIoxod lo rofIocl difforonl noods and circunslancos.
Iay nodoIIing lochniquos vhich cosl aIlornalivo pay roviov proposaIs on dislribu-
lions of avards can bo usod lo proparo individuaI roviov budgols. IncroasingIy,
organizalions aro ropIacing individuaI roviov budgols vilh a lolaI payroII budgoling
approach. This noans lhal doparlnonlaI hoads havo lo fund individuaI incroasos
fron lhoir payroII budgol. In offocl, lhoy aro oxpoclod lo add vaIuo fron porfornanco
pay or al Ioasl onsuro lhal il is soIf-financing.
LVALLA1lNC 1HL kL\AkD SYS1LM
Tho rovard syslon shouId bo audilod roguIarIy lo assoss ils offoclivonoss, lho oxlonl
lo vhich il is adding vaIuo and ils roIovanco lo lho prosonl and fuluro noods of
lho organizalion. This audil shouId incIudo an assossnonl of opinions aboul lho
rovard syslon by ils Ioy usors and lhoso vho aro affoclod by il. This Ioads lo a diag-
nosis of slronglhs and voaInossos and an assossnonl of vhal noods lo bo dono and
vhy.
Tho oporalion of lho rovard syslon shouId bo nonilorod conlinuaIIy by lho
HR doparlnonl lhrough such audils and by lho uso of conpa-ralios and allrilion
anaIysis as discussod boIov. In parlicuIar il is nocossary lo anaIyso dala on upgrad-
ings, lho offoclivonoss vilh vhich porfornanco nanagononl procossos aro func-
lioning and lho anounl paid oul on pay-for-porfornanco schonos and lho inpacl
lhoy aro naIing on rosuIls.
InlornaI roIalivilios shouId aIso bo nonilorod by carrying oul poriodic sludios of
lho difforonliaIs lhal oxisl vorlicaIIy vilhin doparlnonls or bolvoon calogorios of
onpIoyoos. Tho sludios shouId oxanino lho difforonliaIs buiIl inlo lho pay slrucluro
and aIso anaIyso lho difforoncos bolvoon lho avorago ralos of pay al difforonl IovoIs. If
il is rovoaIod lhal bocauso of changos in roIos or lho inpacl of pay roviovs difforon-
liaIs no Iongor proporIy rofIocl incroasos in ¡ob vaIuos and/or aro no Iongor ´foIl fair',
lhon furlhor invosligalions lo oslabIish lho roasons for lhis silualion can bo conduclod
and, if nocossary, corroclivo aclion laIon.
ExlornaI roIalivilios shouId bo nonilorod by lracIing novononls in narIol ralos
by sludying pubIishod dala and conducling pay survoys as doscribod in Chaplor 42.
No rovard innovalions shouId laIo pIaco unIoss a cosl÷bonofil anaIysis has forocasl
lhal lhoy viII add vaIuo. Tho audil and noniloring procossos shouId oslabIish lho
oxlonl lo vhich lho prodiclod bonofils havo boon oblainod and chocI on lho cosls
againsl lho forocasl.
Compa-ra|ío anaí,·í·
A conpa-ralio (shorl for conparalivo ralio) noasuros lho roIalionship in a
gradod pay slrucluro bolvoon acluaI and poIicy ralos of pay as a porconlago. Tho
poIicy vaIuo usod is lho nidpoinl or roforonco poinl in a pay rango vhich ropro-
sonls lho ´largol ralo' for a fuIIy conpolonl individuaI in any ¡ob in lho grado. This
poinl is aIignod lo narIol ralos in accordanco vilh lho organizalion's narIol slanco
poIicy.
Conpa-ralios aro usod lo dofino vhoro an individuaI is pIacod in a pay rango. Tho
anaIysis of conpa-ralios indicalos vhal aclion nighl havo lo bo laIon lo sIov dovn
Munugìng rovurd systoms 739
or accoIoralo incroasos if conpa-ralios aro loo high or loo Iov conparod vilh lho
poIicy IovoI. This procoss is sonolinos caIIod ńidpoinl nanagononl'.
Conpa-ralios aro caIcuIalod as foIIovs:
acluaI ralo of pay
 100
nid or roforonco poinl of rango
Aconpa-ralio of 100 por conl noans lhal acluaI and poIicy pay aro lho sano. Conpa-
ralios vhich aro highor or Iovor lhan 100 por conl noan lhal, rospoclivoIy, pay is
abovo or boIov lho poIicy largol ralo. For oxanpIo, if lho largol (poIicy) ralo in a rango
voro £20,000 and lho avorago pay of aII lho individuaIs in lho grado voro £18,000, lho
conpa-ralio vouId bo 90 por conl.
Conpa-ralios oslabIish difforoncos bolvoon poIicy and praclico and lho roasons for
such difforoncos nood lo bo oslabIishod.
Anaí,·íng a||rí|íon
Allrilion or sIippago laIos pIaco vhon onpIoyoos onlor ¡obs al Iovor ralos of pay lhan
lho provious incunbonls. If lhis happons payroII cosls viII go dovn givon an ovon
fIov of slarlors and Ioavors and a consislonl approach lo lho dolorninalion of ralos of
pay. In lhoory allrilion can hoIp lo financo pay incroasos vilhin a rango. Il has boon
cIainod lhal fixod incrononlaI syslons can bo onliroIy soIf-financing bocauso of allri-
lion, bul lho condilions undor vhich lhis can bo allainod aro so oxcoplionaI lhal il
probabIy novor happons.
Allrilion can bo caIcuIalod by lho fornuIa: lolaI porconlago incroaso lo payroII
arising fron gonoraI or individuaI pay incroasos ninus lolaI porconlago incroaso in
avorago ralos of pay. If il can bo provod lhal allrilion is going lo laIo pIaco, lho
anounl invoIvod can bo laIon inlo accounl as a noans of al Ioasl parlIy financing
individuaI pay incroasos. Allrilion in a pay syslon vilh roguIar progrossion lhrough
rangos and a fairIy ovon fIov of slarlors and Ioavors is lypicaIIy bolvoon 2 and 3 por
conl bul lhis shouId nol bo rogardod as a norn.
CCNDLC1lNC lAY kLVlL\S
Iay roviovs aro gonoraI or ácross-lho-board' roviovs in rosponso lo novononls in
lho cosl of Iiving or narIol ralos or foIIoving pay nogolialions vilh lrado unions, or
individuaI roviovs lhal dolornino lho pay progrossion of individuaIs in roIalion lo
lhoir porfornanco or conlribulion, or individuaI roviovs. Thoy aro ono of lho nosl
visibIo aspocls of rovard nanagononl (lho olhor is ¡ob grading) and aro an inporlanl
noans of inpIononling lho organizalion's rovard poIicios and dononslraling lo
onpIoyoos hov lhoso poIicios oporalo.
EnpIoyoos oxpocl lhal gonoraI roviovs viII nainlain lho purchasing povor of lhoir
pay by conponsaling for incroasos in lho cosl of Iiving. Thoy viII vanl lhoir IovoIs of
pay lo bo conpolilivo vilh vhal lhoy couId oarn oulsido. And lhoy viII vanl lo bo
rovardod fairIy and oquilabIy for lho conlribulion lhoy naIo.
Ccncraí rcvícv·
GonoraI roviovs laIo pIaco vhon onpIoyoos aro givon an incroaso in rosponso lo
gonoraI narIol ralo novononls, incroasos in lho cosl of Iiving, or union nogolialions.
GonoraI roviovs aro oflon conbinod vilh individuaI roviovs, bul onpIoyoos aro
usuaIIy infornod of lho gonoraI and individuaI conpononls of any incroaso lhoy
rocoivo. AIlornalivoIy lho gonoraI roviov nay bo conduclod soparaloIy lo onabIo
bollor conlroI lo bo achiovod ovor cosls and lo focus onpIoyoos' allonlion on lho
porfornanco-roIalod aspocl of lhoir ronunoralion.
Sono organizalions havo conpIoloIy abandonod lho uso of across-lho-board
roviovs. Thoy arguo lhal lho docision on vhal poopIo shouId bo paid shouId bo an
individuaI nallor, laIing inlo accounl lho porsonaI conlribulion poopIo aro naIing
and lhoir ńarIol vorlh' ÷ hov lhoy as individuaIs aro vaIuod in lho narIolpIaco.
This onabIos lho organizalion lo adopl a noro fIoxibIo approach lo aIIocaling pay
incroasos in accordanco vilh lho porcoivod vaIuo of individuaIs lo lho organizalion.
Tho slops roquirod lo conducl a gonoraI roviov aro:
1. Docido on lho budgol.
2. AnaIyso dala on pay sollIononls nado by conparabIo organizalions and ralos of
infIalion.
3. Conducl nogolialions vilh lrado unions as roquirod.
4. CaIcuIalo cosls.
5. Ad¡usl lho pay slrucluro ÷ by oilhor incroasing lho pay bracIols of oach grado by
lho porconlago gonoraI incroaso or by incroasing pay roforonco poinls by lho
ovoraII porconlago and appIying difforonl incroasos lo lho uppor or Iovor Iinils
of lho bracIol, lhus aIloring lho shapo of lho slrucluro.
6. Inforn onpIoyoos.
índívíduaí rcvícv·
IndividuaI pay roviovs dolornino conlingonl pay incroasos or bonusos. Tho o-rovard
2004 survoy of conlribulion pay found lhal lho avorago sizo of lho conlingonl pay
Munugìng rovurd systoms 74l
avards nado by rospondonls lo lho CIID 2003 porfornanco nanagononl survoy
(Arnslrong and Baron, 2004) vas 3.3 por conl. IndividuaI avards nay bo basod on
ralings, an ovoraII assossnonl lhal doos nol dopond on ralings, or ranIing, as
discussod boIov.
índívíduaí pa, rcvícv· ba·cd on ra|íng·
Managors proposo incroasos on lho basis of lhoir porfornanco nanagononl ralings
vilhin a givon pay roviov budgol and in accordanco vilh pay roviov guidoIinos.
Forly-lvo por conl of lho rospondonls lo lho CIID 2003/4 porfornanco nanagononl
survoy usod ralings lo inforn conlingonl pay docisions. Approachos lo raling voro
discussod in Chaplor 33.
Thoro nay bo a dirocl IinI bolvoon lho raling and lho pay incroaso, for oxanpIo:
Raling % Incroaso
A 6
B 4
C 3
D 2
E 0
AIlornalivoIy, a pay nalrix nay bo usod vhich roIalos pay incroasos lo bolh lho raling
and posilion in lho pay rango. Many poopIo arguo lhal IinIing porfornanco nanago-
nonl loo oxpIicilIy lo pay pro¡udicos lho ossonliaI dovoIopnonlaI naluro of porfor-
nanco nanagononl. Hovovor, roaIislicaIIy il is accoplod lhal docisions on
porfornanco-roIalod or conlribulion-roIalod incroasos havo lo bo basod on sono forn
of assossnonl. Ono soIulion is lo ´docoupIo' porfornanco nanagononl and lho pay
roviov by hoIding lhon sovoraI nonlhs aparl, and 45 por conl of lho rospondonls lo
lho CIID 2003/4 survoy (Arnslrong and Baron, 2004) soparalod porfornanco
nanagononl roviovs fron pay roviovs (43 por conl of lho rospondonls lo lho
o-rovard 2004 survoy soparalod lho roviov). Thoro is sliII a road-across bul il is nol so
innodialo. Sono lry lo do vilhoul fornuIaic approachos (ralings and pay nalricos)
aIlogolhor, aIlhough il is inpossibIo lo dissocialo conlingonl pay conpIoloIy fron
sono forn of assossnonl.
Doing witbout ratings
Tvonly-sovon por conl of lho rospondonls lo lho 2004 o-rovard survoy of conlingonl
pay did vilhoul ralings. Tho porconlago of rospondonls lo lho 2003/4 CIID porfor-
nanco nanagononl survoy vho did nol uso ralings vas 52 por conl (lhis figuro is loo
high lo bo fuIIy roIiabIo and nay havo boon infIalod by lhoso vho lroal sorvico-roIalod
incrononls, vhich do nol dopond on ralings, as conlingonl pay). Ono rospondonl lo
lho o-rovard survoy oxpIainod lhal in lho absonco of ralings, lho approach lhoy usod
vas ínfornod sub¡oclivily', vhich noanl considoring ongoing porfornanco in lho
forn of ovoraII conlribulion.
Sono conpanios adopl vhal nighl bo caIIod an hoIislic approach. Managors
proposo vhoro poopIo shouId bo pIacod in lho pay rango for lhoir grado, laIing inlo
accounl lhoir conlribulion and pay roIalivo lo olhors in siniIar ¡obs, lhoir polonliaI,
and lho roIalionship of lhoir curronl pay lo narIol ralos. Tho docision nay bo
oxprossod in lho forn of a slalononl lhal an individuaI is nov vorlh £21,000 ralhor
lhan £20,000. Tho incroaso is 5 por conl, bul vhal counls is lho ovoraII viov aboul lho
vaIuo of a porson lo lho organizalion, nol lho porconlago incroaso lo lhal porson's pay.
kanking
RanIing is carriod oul by nanagors vho pIaco slaff in a ranI ordor according lo an
ovoraII assossnonl of roIalivo conlribulion or noril and lhon dislribulo porfornanco
ralings lhrough lho ranI ordor. Tho lop 10 por conl couId gol an A raling, lho noxl 15
por conl a B raling, and so on. Tho ralings dolornino lho sizo of lho rovard. Bul
ranIing doponds on vhal couId bo invidious conparisons and onIy vorIs vhon
lhoro aro a nunbor of poopIo in siniIar ¡obs lo bo ranIod.
GuidcIincs to managcrs on conducting individuaI pay rcvicws
Whichovor approach is adoplod, guidoIinos havo lo bo issuod lo nanagors on hov
lhoy shouId conducl roviovs. Thoso guidoIinos viII slipuIalo lhal lhoy nusl Ioop
vilhin lhoir budgols and nay indicalo lho naxinun and nininun incroasos lhal
can bo avardod, vilh an indicalion of hov avards couId bo dislribulod. For oxanpIo,
vhon lho budgol is 4 por conl ovoraII, il nighl bo suggoslod lhal a 3 por conl incroaso
shouId bo givon lo lho na¡orily of lhoir slaff and lho olhors givon highor or Iovor
incroasos as Iong as lho lolaI porconlago incroaso doos nol oxcood lho budgol.
Managors in sono conpanios aro inslruclod lhal lhoy nusl foIIov a forcod pallorn of
dislribulion bul, onIy 8 por conl of lho rospondonls lo lho 2003/4 CIID survoy usod
lhis nolhod.
To hoIp lhon lo oxpIoro aIlornalivos, nanagors nay bo providod vilh a sproad-
shool faciIily in vhich lho sproadshools conlain dolaiIs of lho oxisling ralos of slaff
and vhich can bo usod lo nodoI aIlornalivo dislribulions on a ´vhal if' basis.
Managors nay aIso bo oncouragod lo ´fino luno' lhoir pay roconnondalions lo onsuro
lhal individuaIs aro on lho righl lracI vilhin lhoir grado according lo lhoir IovoI of
porfornanco, conpolonco and lino in lho ¡ob conparod vilh lhoir poors. To do lhis,
lhoy nood guidoIinos on lypicaI ralos of progrossion in roIalion lo porfornanco, sIiII
or conpolonco, and spocific guidanco on vhal lhoy can and shouId do. Thoy aIso
nood infornalion on lho posilions of lhoir slaff in lho pay slrucluro roIalivo lo lho
poIicy guidoIinos.
Conducting individuaI pay rcvicws
Tho slops roquirod lo conducl an individuaI pay roviov aro:
1. Agroo budgol.
2. Iroparo and issuo guidoIinos on lho sizo, rango and dislribulion of avards and on
nolhods of conducling lho roviov.
3. Irovido advico and supporl.
4. Roviov proposaIs againsl budgol and guidoIinos and agroo nodificalions lo
lhon if nocossary.
5. Sunnarizo and cosl proposaIs and oblain approvaI.
6. Updalo payroII.
7. Inforn onpIoyoos.
Il is ossonliaI lo provido advico, guidanco and lraining lo Iino nanagors as roquirod.
Sono nanagors viII bo confidonl and capabIo fron lho slarl, olhors viII havo a Iol lo
Ioarn.
CCN1kCL
ConlroI ovor lho inpIononlalion of pay poIicios gonoraIIy and payroII cosls in parlic-
uIar viII bo oasior if il is basod on:
a cIoarIy dofinod and undorslood pay slrucluro,
spocific pay roviov guidoIinos and budgols,
dofinod procoduros for grading ¡obs and fixing ralos of pay,
cIoar slalononls of lho dogroo of aulhorily nanagors havo al oach IovoI lo docido
on ralos of pay and incroasos,
an HR funclion vhich is capabIo of noniloring lho inpIononlalion of pay poIi-
cios and providing lho infornalion and guidanco nanagors roquiro and has lho
aulhorily and rosourcos (incIuding conpulor soflvaro) lo do so,
a syslonalic procoss for noniloring lho inpIononlalion of pay poIicios and cosls
againsl budgols.
kL\AkD lkCCLDLkLS
Rovard nanagononl procoduros aro roquirod lo achiovo and nonilor lho inpIonon-
lalion of rovard nanagononl poIicios. Thoy doaI vilh nolhods of fixing pay on
appoinlnonl or pronolion and doaIing vilh anonaIios. Thoy viII aIso rofor lo
nolhods of appoaIing againsl grading or pay docisions, usuaIIy lhrough lho
organizalion's nornaI appoaIs procoduro.
|roccdurc· for gradíng ¡ob·
Tho procoduros for grading nov ¡obs or ro-grading oxisling onos shouId Iay dovn
lhal grading or ro-grading can onIy laIo pIaco aflor a propor ¡ob ovaIualion sludy. Il is
nocossary lo laIo aclion lo conlroI grado drifl (un¡uslifiod upgradings) by insisling
lhal lhis procoduro is foIIovod. Irossuros lo upgrado bocauso of narIol forcos or
difficuIlios in rocruilnonl or rolonlion shouId bo rosislod. Thoso probIons shouId
bo addrossod by such nolhods as narIol proniuns or croaling spociaI narIol
groups of ¡obs.
fíxíng ra|c· of pa, on appoín|mcn|
Lino nanagors shouId havo a na¡or say in pay offors and sono froodon lo
nogolialo vhon nocossary, bul lhoy shouId bo roquirod lo laIo accounl of roIovanl pay
poIicy guidoIinos vhich shouId sol oul lho circunslancos in vhich pay offors abovo
lho nininun of lho rango can bo nado. Il is cuslonary lo aIIov a roasonabIo
dogroo of froodon lo naIo offors up lo a corlain poinl, og lho 90 por conl IovoI in an
80 lo 120 por conl pay rango. Iay poIicios froquonlIy aIIov offors lo bo nado up
lo lho nidpoinl or roforonco poinl doponding on lho oxlonl lo vhich lho rocruil
has lho nocossary oxporionco, sIiIIs and conpoloncos. Offors abovo lho nid-
poinl shouId bo oxcoplionaI bocauso lhoy vouId Ioavo roIalivoIy IillIo roon for
oxpansion. Such offors viII sonolinos bo nado bocauso of narIol prossuros, bul
lhoy nood lo bo vory carofuIIy considorod bocauso of lho inovilabIy of grado
drifl unIoss lho individuaI is pronolod fairIy soon. If lho curronl ralos aro loo Iov lo
allracl good candidalos, il nay bo nocossary lo roconsidor lho scaIos or lo agroo on
spociaI narIol ralo proniuns. To Ioop lho Iallor undor conlroI, il is advisabIo lo
roquiro lhal lhoy shouId onIy bo avardod if lhoy aro aulhorizod by lho porsonnoI
doparlnonl or a noro sonior nanagor. Many organizalions roquiro lhal aII offors
shouId bo vollod and approvod by a nonbor of lho porsonnoI funclion and/or a
highor aulhorily.
|romo|íon íncrca·c·
Ironolion incroasos shouId bo noaningfuI, say 10 por conl or noro. Thoy shouId nol
nornaIIy laIo lho pronolod onpIoyoo abovo lho nidpoinl or roforonco poinl in lho
pay rango for his or hor nov ¡ob so lhal lhoro is adoqualo scopo for porfornanco-
roIalod incroasos. Ono good roason for having roasonabIy vido difforonliaIs is lo
provido spaco for pronolions.
Dcaííng ví|h anomaííc·
Wilhin any pay slrucluro, hovovor carofuIIy nonilorod and nainlainod, anonaIios
viII occur and lhoy nood lo bo addrossod during a pay roviov. Corroclion of anon-
aIios viII roquiro highor IovoI incroasos for lhoso vho aro undor-paid roIalivo lo lhoir
porfornanco and lino in lho ¡ob, and Iovor IovoIs of incroaso for lhoso vho aro corro-
spondingIy ovor-paid. Il is vorlh noling lhal ovor-paynonl anonaIios cannol bo
corroclod in fixod incrononlaI slrucluros, and lhis is a na¡or disadvanlago of such
syslons. Tho cosl of anonaIy corroclion shouId nol bo hugo in nornaI circunslancos
if al ovory roviov nanagors aro oncouragod lo ´fino luno' lhoir pay roconnondalions
as suggoslod oarIior.
In a sovoroIy anonaIous silualion, vhich nay bo found al lho inpIononlalion
slago of a nov slrucluro or al a na¡or roviov, a Iongor-lorn corroclion progranno
nay bo nocossary oilhor lo niligalo lho donolivaling offocls of roducing roIalivo ralos
of pay or lo sproad cosls ovor a nunbor of yoars.
As voII as individuaI anonaIy corroclion lhoro nay bo a nood lo corrocl a hisloricaI
londoncy lo ovor-pay or undor-pay vhoIo doparlnonls, divisions or funclions by
appIying highor or Iovor IovoIs of incroasos ovor a poriod of lino. This vouId invoIvo
ad¡uslnonls lo pay roviov budgols and guidoIinos and, obviousIy, il vouId havo lo
bo handIod vilh groal caro.
kLSlCNSlßlLl1Y lCk kL\AkD
Tho lrond is lo dovoIvo noro rosponsibiIily for pay docisions lo Iino nanagors,
ospociaIIy lhoso concornod vilh individuaI pay roviovs. Bul lhoro aro obvious
dangors. Thoso incIudo inconsisloncy bolvoon nanagors' docisions, favourilisn,
pro¡udico (gondor or raciaI) and iIIogicaI dislribulions of rovards. Rosoarch has
shovn lhal nany nanagors lond nol lo difforonlialo bolvoon lho porfornanco
of individuaI nonbors of lhoir slaff. Ralings can bo conprossod, vilh nosl
poopIo cIuslorod around lho nidpoinl and vory fov slaff ralod as good or poor
porfornors.
DovoIving noro aulhorily lo Iino nanagors nay in principIo bo highIy dosirabIo
bul nanagors nusl bo briofod lhoroughIy on lhoir rosponsibiIilios, lho organizalion's
pay poIicios (incIuding nolhods of progrossing pay), lho principIos lo bo foIIovod in
conducling roviov and hov lhoy shouId inlorprol and appIy pay roviov guidoIinos.
Tho nood lo achiovo oquily and a roasonabIo dogroo of consisloncy across lho
organizalion shouId bo onphasizod. Managors shouId bo givon vhalovor lraining,
guidanco and hoIp lhoy nood lo onsuro lhal lhoy aro capabIo of oxorcising lhoir discro-
lionary povors visoIy. This lraining shouId covor:
hov infornalion on narIol ralos suppIiod by lho porsonnoI doparlnonl shouId
bo inlorprolod and usod,
hov dala providod by lho porsonnoI doparlnonl on lho IovoIs of pay and pay
progrossion hislorios of individuaI nonbors of slaff and lho dislribulion of pay
by occupalion lhroughoul lho doparlnonl shouId bo usod as lho basis for pIan-
ning pay,
nolhods of assossing porfornanco and conlribulion IovoIs,
hov lo inlorprol any gonoric conpolonco profiIos lo assoss individuaI dovoIop-
nonl noods and agroo caroor palhvays,
hov lo assoss conpolonco roquirononls for spocific roIos (as lhoy oxisl nov or as
lhoy nay dovoIop), and hov lo counsoI onpIoyoos on lho proparalion of porsonaI
dovoIopnonl pIans,
nolhods of rovioving progross in achioving lhoso pIans and in caroor dovoIop-
nonl, and hov lo inlorprol infornalion fron lhoso roviovs vhon naIing pay
docisions,
gonoraIIy, hov lo dislribulo rovards vilhin budgols, fairIy, oquilabIy and consis-
lonlIy by roforonco lo assossnonls of conlribulion, conpolonco, progross or
grovlh.
lho guidanco avaiIabIo fron lho porsonnoI funclion on hov lo nanago pay ÷ il
shouId bo onphasizod lhal guidanco nusl aIvays bo soughl if Iino nanagors
havo any doubls as lo hov lhoy shouId oxorciso lhoir discrolion.
FuII dovoIulion inpIios lhal lho docisions of nanagors on pay incroasos aro nol
roviovod and quoslionod as Iong as lhoy Ioop vilhin lhoir budgols. Hovovor, il is
usuaI for sonior nanagors, porsonnoI or pay spociaIisls lo nonilor pay proposaIs lo
spol inconsisloncios or vhal appoar lo bo iIIogicaI roconnondalions, ospociaIIy vhon
lho schono is inilialod or vilh novIy appoinlod nanagors. Tho uso of conpulorizod
porsonnoI infornalion syslons naIos il oasior for nanagors lo connunicalo lhoir
proposaIs and for lho porsonnoI doparlnonl lo nonilor lhon. If lho porsonnoI doparl-
nonl is invoIvod, il shouId ain lo provido supporl and guidanco, nol lo acl as a poIico
forco. Moniloring can bo roIaxod as nanagors provo lhal lhoy aro capabIo of naIing
good pay docisions.
CCMMLNlCA1lNC 1C LMlLCYLLS
EnpIoyoo rovard syslons connunicalo nossagos lo onpIoyoos aboul lho boIiofs
of lho organizalion on vhal is foIl lo bo inporlanl vhon vaIuing poopIo in lhoir
roIos. Thoy doIivor lvo nossagos: lhis is hov vo vaIuo your conlribulion, lhis is
vhal vo aro paying for. Il is lhoroforo inporlanl lo connunicalo lo onpIoyoos
coIIoclivoIy aboul lho rovard poIicios and praclicos of lho organizalion and individu-
aIIy aboul hov lhoso poIicios affocl lhon ÷ nov and in lho fuluro. Transparoncy is
ossonliaI.
Vha| |o communíca|c |o cmpío,cc· gcncraíí,
EnpIoyoos gonoraIIy shouId undorsland:
lho rcucr! pclicics of lho organizalion in solling pay IovoIs, providing bonofils and
progrossing pay,
lho pcq siruciurc ÷ grados and pay rangos and hov lho slrucluro is nanagod,
lho |cncjiis siruciurc ÷ lho rango of bonofils providod, vilh dolaiIs of lho ponsion
schono and olhor na¡or bonofils,
mci|c!s cj grc!ing cn! rcgrc!ing jc|s ÷ lho ¡ob ovaIualion schono and hov il
oporalos,
pcq prcgrcssicn ÷ hov pay progrossos vilhin lho pay slrucluro and hov pay doci-
sions affocling onpIoyoos coIIoclivoIy and individuaIIy aro nado,
pcq-jcr-pcrjcrmcncc sc|cmcs ÷ hov individuaI, loan and organizalion-vido
schonos vorI and hov onpIoyoos can bonofil fron lhon,
pcq jcr s|ill cr ccmpcicncc ÷ hov any sIiII-basod or conpolonco-basod schonos
vorI, lho ains of lho organizalion in using such schonos, and hov onpIoyoos
can bonofil fron lhon,
pcrjcrmcncc mcncgcmcni ÷ hov porfornanco nanagononl procossos oporalo and
lho parls pIayod by nanagors and onpIoyoos,
rcucr! !ctclcpmcnis cn! iniiiciitcs ÷ dolaiIs of any changos lo lho rovard syslon,
lho roasons for such changos, and hov onpIoyoos viII bo affoclod by lhon ÷ lho
inporlanco of doing lhis lhoroughIy cannol bo ovor-onphasizod.
Vha| |o communíca|c |o índívíduaí cmpío,cc·
IndividuaI onpIoyoos shouId Inov and undorsland:
lhoir jc| grc!c and hov il has boon dolorninod,
lho basis upon vhich lhoir prcscni rcic of pay has boon dolorninod,
lho pcq cppcriuniiics avaiIabIo lo lhon ÷ lho scopo in lhoir grado for pay progros-
sion, lho basis upon vhich lhoir pay viII bo IinIod lo lhoir porfornanco and lho
acquisilion and offoclivo uso of sIiIIs and conpoloncos as lhoir caroor dovoIops,
and vhal aclions and bohaviour aro oxpoclod of lhon if lhoir pay is lo progross,
pcrjcrmcncc mcncgcmcni ÷ hov lhoir porfornanco viII bo roviovod and lho parl
lhoy pIay in agrooing ob¡oclivos and fornuIaling porsonaI dovoIopnonl and
porfornanco inprovononl pIans,
i|c tcluc cj i|c cmplcqcc |cncjiis i|cq rcccitc ÷ lho IovoI of lolaI ronunoralion
providod for individuaIs by lho organizalion, incIuding lho vaIuos of such bono-
fils as ponsion and sicI pay schonos,
cppccls cn! grictcnccs ÷ hov lhoy can appoaI againsl grading and pay docisions or
laIo up a griovanco on any aspocl of lhoir ronunoralion.
Lmpíoyoo roíutìons
LMlLCYLL kLLA1lCNS DLllNLD
|mplcqcc rclciicns ccnsisi cj cll i|csc crccs cj |umcn rcscurcc mcncgcmcni i|ci
intcltc rclciicns|ips uii| cmplcqccs ÷ !irccilq cn!fcr i|rcug| ccllcciitc cgrccmcnis
u|crc irc!c unicns crc rcccgnizc!. |mplcqcc rclciicns crc ccnccrnc! uii| gcncrcllq
mcncging i|c cmplcqmcni rclciicns|ip cs ccnsi!crc! in C|cpicr 15.
1|csc rclciicns|ips !ccl uii| i|c cgrccmcni cj icrms cn! ccn!iiicns cj cmplcqmcni
cn! uii| issucs crising jrcm cmplcqmcni. 1|cq uill nci ncccsscrilq |c su|jcci ic
ccllcciitc cgrccmcnis cr jcini rcgulciicn. |mplcqcc rclciicns, i|crcjcrc, cctcr c
|rcc!cr spccirum cj i|c cmplcqmcni rclciicns|ip i|cn in!usiricl rclciicns, u|ic| crc
usucllq rcgcr!c! cs |cing csscniicllq c|cui !cclings |ciuccn mcncgcmcnis cn! irc!c
unicns. 1|is ui!cr !cjiniiicn rcccgnizcs i|c mctc cucq jrcm ccllcciitism icucr!s
in!iti!uclism in i|c ucqs in u|ic| cmplcqcrs rclcic ic i|cir cmplcqccs. 1|c mctc in
i|is !ircciicn |cs |ccn prcmpic! |q c grcuing insisicncc cn mcncgcmcni´s prcrcgc-
iitc suppcric! |q i|c p|ilcscp|q cj HRM, i|c rc¡uircmcni ic mcci ccmpciiiicn uii|
slimmcr cn! mcrc cjjicicni crgcnizciicns, c mcssitc rcsiruciuring cj in!usirq in i|c
1980s, i|c 1980s ccnccpi cj i|c mcr|ci cccncmq cn! jrcc cnicrprisc cn! |q irc!c
unicn lcgislciicn.
|mplcqcc rclciicns prcciiccs inclu!c jcrmcl prcccsscs, prccc!urcs cn! c|cnncls cj
ccmmunicciicn. li is impcricni ic rcmcm|cr, |cuctcr, i|ci cmplcqcc rclciicns crc
 
mcinlq ccn!ucic! cn c !cq-ic-!cq injcrmcl |csis |q linc mcncgcrs cn! iccm lcc!crs,
uii|cui i|c jrcmcucr| cj cmplcqmcni cn! cmplcqcc rclciicns pclicics |ui cciing
mcinlq cn i|cir cun iniiiciitc.
lLAN
1|is pcri cctcrs i|c |rcc! su|jcci cj cmplcqcc rclciicns un!cr i|c jcllcuing |cc!ings.
i|c jrcmcucr| cj cmplcqcc rclciicns ÷ i|c ccnccpiucl jrcmcucr| ic in!usiricl
rclciicns. 1|c HRM cpprccc| ic cmplcqcc rclciicns !ctclcpmcnis in in!usiricl
rclciicns cn! i|c pcriics intcltc! (C|cpicr 50),
cmplcqcc rclciicns prcccsscs, inclu!ing ccllcciitc |crgcining (C|cpicr 51),
ncgciiciing cn! |crgcining s|ills (C|cpicr 52),
prcccsscs jcr cmplcqcc intcltcmcni cn! pcriicipciicn (cmplcqcc tcicc) cn!
ccmmunicciicns (C|cpicrs 53 cn! 54).
752 Lmpíoyoo roíutìons
1ho lrumovork ol ompíoyoo
roíutìons
Tho purposo of lhis chaplor is lo provido a roviov of lho conpIox sub¡ocl of onpIoyoo
roIalions. Il slarls vilh a sunnary of lho oIononls of onpIoyoo roIalions and lhon
doaIs vilh lho foIIoving induslriaI and onpIoyoo roIalions concopls:
lho syslons lhoory of induslriaI roIalions, vhich soos lho sub¡ocl as a syslon of
roguIalions and ruIos,
lho lypos of roguIalions and ruIos conlainod in lho syslon,
lho naluro of coIIoclivo bargaining and bargaining povor,
lho unilarisl and pIuraIisl viovs aboul lho basis of lho roIalionship bolvoon
nanagononl and lrado unions in parlicuIar or onpIoyoos in gonoraI,
lho roconciIialion of inlorosls,
individuaIisn and coIIoclivisn as approachos lo onpIoyoo roIalions,
lho voIunlarisl approach lo induslriaI roIalions and ils docIino,
hunan rosourco nanagononl (HRM) as a nov paradign for onpIoyoo roIalions,
lho roIo of lho onpIoyoo roIalions funclion.
Tho chaplor conlinuos vilh a sunnary of dovoIopnonls in induslriaI roIalions
and a roviov of lho curronl induslriaI roIalions scono. Tho chaplor concIudos vilh a

doscriplion of lho various parlios lo induslriaI roIalions and lho inslilulions, agoncios
and officors invoIvod.
1HL LLLMLN1S Cl LMlLCYLL kLLA1lCNS
Tho oIononls of onpIoyoo roIalions consisl of:
Tho fornaI and infornaI onpIoynonl poIicios and praclicos of lho organizalion.
Tho dovoIopnonl, nogolialion and appIicalion of fornaI syslons, ruIos and
procoduros for coIIoclivo bargaining, handIing dispulos and roguIaling onpIoy-
nonl. Thoso sorvo lo dolornino lho rovard for offorl and olhor condilions of
onpIoynonl, lo prolocl lho inlorosls of bolh onpIoyoos and lhoir onpIoyors, and
lo roguIalo lho vays in vhich onpIoyors lroal lhoir onpIoyoos and hov lho Iallor
aro oxpoclod lo bohavo al vorI.
IoIicios and praclicos for onpIoyoo voico and connunicalions.
Tho infornaI as voII as lho fornaI procossos lhal laIo pIaco in lho shapo of conlin-
uous inloraclions bolvoon nanagors and loan Ioadors or suporvisors on lho ono
hand and onpIoyoo roprosonlalivos and individuaIs on lho olhor. Thoso nay
happon vilhin lho franovorI of fornaI agroononls bul aro oflon govornod by
cuslon and praclico and lho cIinalo of roIalionships lhal has boon buiIl up ovor
lho yoars.
Tho phiIosophios and poIicios of lho na¡or pIayors in lho induslriaI roIalions
scono: lho govornnonl of lho day, nanagononl and lho lrado unions.
Anunbor of parlios oach vilh difforonl roIos. Thoso consisl of lho slalo, nanago-
nonl, onpIoyors' organizalions, lho lrado unions, individuaI nanagors and
suporvisors, HR nanagors, onpIoyoo roprosonlalivos or shop slovards and
onpIoyoos.
Tho IogaI franovorI.
A nunbor of inslilulions such as lho Advisory, ConciIialion and Arbilralion
Sorvico (ACAS) and lho onpIoynonl lribunaIs.
Tho bargaining slrucluros, rocognilion and procoduraI agroononls and praclicos
vhich havo ovoIvod lo onabIo lho fornaI syslon lo oporalo.
lNDLS1klAL kLLA1lCNS AS A SYS1LM Cl kLLLS
InduslriaI roIalions can bo rogardod as a syslon or vob of ruIos roguIaling onpIoy-
nonl and lho vays in vhich poopIo bohavo al vorI. Tho syslons lhoory of induslriaI
roIalions, as propoundod by DunIop (1958), slalos lhal lho roIo of lho syslon is lo
produco lho roguIalions and procoduraI ruIos lhal govorn hov nuch is dislribulod in
lho bargaining procoss and hov lho parlios invoIvod, or lho áclors' in lho induslriaI
roIalions scono, roIalo lo ono anolhor. According lo DunIop, lho oulpul of lho syslon
laIos lho forn of:
1ho roguíutìons und poíìcìos ol tho munugomont hìorurchy, tho íuvs ol uny vorkor hìor-
urchy, tho roguíutìons, dogroos, docìsìons, uvurds or ordors ol govornmontuí ugoncìos,
tho ruíos und docìsìons ol spocìuíìzod ugoncìos croutod by tho munugomont und vorkor
hìorurchìos, coííoctìvo burguìnìng urrungomonts und tho customs und trudìtìons ol tho
vork píuco.
Tho syslon is oxprossod in nany noro or Ioss fornaI or infornaI guisos: in IogisIalion
and slalulory ordors, in lrado union roguIalions, in coIIoclivo agroononls and arbilra-
lion avards, in sociaI convonlions, in nanagoriaI docisions, and in accoplod ćuslon
and praclico'. Tho ´ruIos' nay bo dofinod and cohoronl, or iII-dofinod and incohoronl.
Wilhin a pIanl lho ruIos nay nainIy bo concornod vilh doing no noro lhan dofining
lho sicius ¡uc vhich bolh parlios rocognizo as lho norn fron vhich dovialions nay bo
nado onIy by agroononl. In lhis sonso, lhoroforo, an induslriaI roIalions syslon is a
nornalivo syslon vhoro a norn can bo soon as a ruIo, a slandard, or a pallorn for
aclion vhich is gonoraIIy accoplod or agrood as lho basis upon vhich lho parlios
concornod shouId oporalo.
Syslons lhoory, hovovor, doos nol sufficionlIy laIo inlo accounl lho dislribulion of
povor bolvoon nanagononl and lrado unions, nor lho inpacl of lho slalo. Noilhor
doos il adoqualoIy oxpIain lho roIo of lho individuaI in induslriaI roIalions.
1YlLS Cl kLCLLA1lCNS AND kLLLS
}ob roguIalion ains lo provido a franovorI of nininun righls and ruIos. InlornaI
roguIalion is concornod vilh procoduros for doaIing vilh griovancos, rodundancios or
discipIinary probIons and ruIos concorning lho oporalion of lho pay syslon and lho
righls of shop slovards. ExlornaI roguIalion is carriod oul by noans of onpIoynonl
IogisIalion, lho ruIos of lrado unions and onpIoyors' associalions, and lho roguIalivo
conlonl of procoduraI or subslanlivo ruIos and agroononls.
Prccc!urcl rulcs aro inlondod lo roguIalo confIicl bolvoon lho parlios lo coIIoclivo
bargaining, and vhon lhoir inporlanco is onphasizod, a proniun is boing pIacod on
induslriaI poaco. Su|sicniitc rulcs sollIo lho righls and obIigalions allachod lo ¡obs. Il
is inlorosling lo nolo lhal in lho UK, lho parlios lo coIIoclivo agroononls havo londod
lo conconlralo noro on procoduraI lhan on subslanlivo ruIos. In lho USA, vhoro lhoro
1ho lrumovork ol ompíoyoo roíutìons 755
is groalor onphasis on fixod-lorn agroononls, lho londoncy has boon lo roIy noro on
subslanlivo ruIos.
CCLLLC1lVL ßAkCAlNlNC
Tho induslriaI roIalions syslon is roguIalod by lho procoss of coIIoclivo bargaining,
dofinod by FIandors (1970) as a sociaI procoss lhal ćonlinuaIIy lurns disagroononls
inlo agroononls in an ordorIy fashion'. CoIIoclivo bargaining ains lo oslabIish by
nogolialion and discussion agrood ruIos and docisions on nallors of nuluaI concorn
lo onpIoyors and unions as voII as nolhods of roguIaling lho condilions govorning
onpIoynonl.
Il lhoroforo providos a franovorI, oflon in lho forn of a coIIoclivo agroononl,
vilhin vhich lho viovs of nanagononl and unions aboul dispulod nallors lhal
couId Ioad lo induslriaI disordor can bo considorod vilh lho ain of oIininaling lho
causos of lho disordor. CoIIoclivo bargaining is a ¡oinl roguIaling procoss, doaIing vilh
lho roguIalion of nanagononl in ils roIalionships vilh vorI poopIo as voII as lho
roguIalion of condilions of onpIoynonl. Il has a poIilicaI as voII as an ocononic basis
÷ bolh sidos aro inloroslod in lho dislribulion of povor bolvoon lhon as voII as lho
dislribulion of incono.
CoIIoclivo bargaining can bo rogardod as an oxchango roIalionship in vhich
vago÷vorI bargains laIo pIaco bolvoon onpIoyors and onpIoyoos lhrough lho
agoncy of a lrado union. TradilionaIIy, lho roIo of lrado unions as bargaining agonls
has boon porcoivod as boing lo offsol lho inoquaIilios of individuaI bargaining povor
bolvoon onpIoyors and onpIoyoos in lho Iabour narIol.
CoIIoclivo bargaining can aIso bo soon as a poIilicaI roIalionship in vhich lrado
unions, as ChanborIain and Kuhn (1965) nolod, sharo induslriaI sovoroignly or
povor ovor lhoso vho aro govornod, lho onpIoyoos. Tho sovoroignly is hoId ¡oinlIy
by nanagononl and union in lho coIIoclivo bargaining procoss.
Abovo aII, coIIoclivo bargaining is a povor roIalionship lhal laIos lho forn of a
noasuro of povor sharing bolvoon nanagononl and lrado unions (aIlhough roconlIy
lho baIanco of povor has shiflod narIodIy in lho diroclion of nanagononl).
ßargaíníng povcr
Tho oxlonl lo vhich induslriaI sovoroignly is sharod by nanagononl vilh ils lrado
unions (if al aII) doponds upon lho roIalivo bargaining povors of lho lvo parlios.
Bargaining povor can bo dofinod as lho abiIily lo induco lho olhor sido lo naIo a
docision lhal il vouId olhorviso nol naIo. As Fox and FIandors (1969) connonlod:
Íovor is lho cruciaI variabIo vhich dolorninos lho oulcono of coIIoclivo bargaining.'
Il has boon suggoslod by HavIins (1979) lhal a cruciaI losl of bargaining povor is
´vholhor lho cosl lo ono sido in accopling a proposaI fron lho olhor is highor lhan lho
cosl of nol accopling il'. Singh (1989) has poinlod oul lhal bargaining povor is nol
slalic bul varios ovor lino. Ho aIso nolos lhal:
ßurguìnìng povor ìs ìnhoront ìn uny sìtuutìon vhoro dìlloroncos huvo to bo roconcìíod. lt
ìs, hovovor, not un ond ìn ìtsoíl und nogotìutìons must not roíy soíoíy on burguìnìng
povor. Cno sìdo muy huvo onormous burguìnìng povor, but to uso ìt to tho poìnt vhoro
tho othor sìdo looís thut ìt ìs ìmpossìbío to douí vìth such u purty ìs to dolout tho purposo
ol nogotìutìons.
AlIinson (1989) assorls lhal:
vhal croalos bargaining povor can bo appraisod in lorns of sub¡oclivo assoss-
nonls by individuaIs invoIvod in lho bargaining procoss,
oach sido can guoss lho bargaining proforoncos and bargaining povor of lho olhor
sido,
lhoro aro nornaIIy a nunbor of oIononls croaling bargaining povor.
form· of coíícc|ívc bargaíníng
CoIIoclivo bargaining laIos lvo basic forns, as idonlifiod by ChanborIain and Kuhn
(1965):
ccnjunciitc |crgcining, vhich árisos fron lho absoIulo roquirononl lhal sono
agroononl ÷ any agroononl ÷ nay bo roachod so lhal lho oporalions on vhich
bolh aro dopondonl nay conlinuo', and rosuIls in a ´vorIing roIalionship in
vhich oach parly agroos, oxpIicilIy or inpIicilIy, lo provido corlain roquisilo
sorvicos, lo rocognizo corlain soals of aulhorily, and lo accopl corlain rosponsibiIi-
lios in rospocl of oach olhor',
cccpcrciitc |crgcining, in vhich il is rocognizod lhal oach parly is dopondonl on lho
olhor and can achiovo ils ob¡oclivos noro offoclivoIy if il vins lho supporl of lho
olhor.
A siniIar dislinclion vas nado by WaIlon and McKorsio (1965), vho roforrod lo
!isiri|uiitc |crgcining as lho ćonpIox syslon of aclivilios inslrunonlaI lo lho allain-
nonl of ono parly's goaIs vhon lhoy aro in basic confIicl vilh lhoso of lho olhor
parly' and lo inicgrciitc |crgcining as lho ´syslon of aclivilios vhich aro nol in funda-
nonlaI confIicl vilh lhoso of lho olhor parly and vhich lhoroforo can bo inlogralod lo
sono dogroo'. Such ob¡oclivos aro said lo dofino án aroa of connon concorn, a
purposo'.
1HL LNl1AkY AND lLLkALlS1 VlL\S
Thoro aro lvo basic viovs oxprossod aboul lho basis of lho roIalionship bolvoon
nanagononl and lrado unions in parlicuIar or onpIoyoos in gonoraI: lho unilary and
lho pIuraIisl porspoclivos.
1|c uniicrq ticu is lypicaIIy hoId by nanagononls vho soo lhoir funclion as lhal
of dirocling and conlroIIing lho vorIforco lo achiovo ocononic and grovlh
ob¡oclivos. To lhis ond, nanagononl boIiovos lhal il is lho ruIo-naIing aulhorily.
Managononl londs lo viov lho onlorpriso as a unilary syslon vilh ono sourco
of aulhorily ÷ ilsoIf ÷ and ono focus of IoyaIly ÷ lho organizalion. Il oxloIs lho virluo
of loanvorI, vhoro ovoryono slrivos ¡oinlIy lo a connon ob¡oclivo, ovoryono
puIIs lhoir voighl lo lho bosl of lhoir abiIily, and ovoryono accopls lhoir pIaco and
funclion gIadIy, foIIoving lho Ioadorship of lho appoinlod nanagor or suporvisor.
Thoso aro adnirabIo sonlinonls, bul lhoy sonolinos Ioad lo vhal McCIoIIand (1963)
roforrod lo as an orgy of ávuncuIar ponlificalion' on lho parl of lho Ioadors of
induslry. This unilary viov, vhich is ossonliaIIy aulocralic and aulhorilarian, has
sonolinos boon oxprossod in agroononls as ńanagononl's righl lo nanago'. Tho
phiIosophy of HRM vilh ils onphasis on connilnonl and nuluaIily is basod on lho
unilary porspoclivo.
In conlrasl, lho plurclisi ticu, as doscribod by Fox (1966), is lhal an induslriaI
organizalion is a pIuraI socioly, conlaining nany roIalod bul soparalo inlorosls and
ob¡oclivos vhich nusl bo nainlainod in sono Iind of oquiIibriun. In pIaco of a corpo-
ralo unily rofIoclod in a singIo focus of aulhorily and IoyaIly, nanagononl has lo
accopl lho oxislonco of rivaI sourcos of Ioadorship and allachnonl. Il has lo faco lho
facl lhal in DrucIor's (1951) phraso, a businoss onlorpriso has a lripIo porsonaIily: il is
al onco an ocononic, a poIilicaI and a sociaI inslilulion. In lho firsl, il producos and
dislribulos inconos. In lho socond, il onbodios a syslon of govornnonl in vhich
nanagors coIIoclivoIy oxorciso aulhorily ovor lho nanagod, bul aro aIso lhonsoIvos
invoIvod in an inlricalo pallorn of poIilicaI roIalionships. Ils lhird porsonaIily is
rovoaIod in lho pIanl connunily, vhich ovoIvos fron boIov oul of faco-lo-faco roIa-
lions basod on sharod inlorosls, sonlinonls, boIiofs and vaIuos anong various groups
of onpIoyoos.
IIuraIisn convonlionaIIy rogards lho vorIforco as boing roprosonlod by án oppo-
silion lhal doos nol sooI lo govorn' (CIogg, 1976). IIuraIisn, as doscribod by Cavo
(1994), invoIvos á baIanco of povor bolvoon lvo organizod inlorosls and a sufficionl
dogroo of lrusl vilhin lho roIalionship (usuaIIy) for oach sido lo rospocl lho
olhor's Iogilinalo and, on occasions, soparalo inlorosls, and for bolh sidos lo rofrain
fron pushing lhoir inlorosl soparaloIy lo lho poinl vhoro il bocano inpossibIo lo
Ioop lho shov on lho road'. Il has boon nolod by Guosl (1995) lhal: ´Tho lradilion
of bargaining al pIanl or ovon organizalion IovoI has roinforcod a pIuraIislic
concopl.'
1HL kLCCNClLlA1lCN Cl lN1LkLS1S
Tho inpIicalion of lho pIuraIislic approach lo onpIoyoo roIalions is lhal lhoro has lo
bo sono procoss for roconciIing difforonl inlorosls. This can bo achiovod lhrough
fornaI agroononls vhoro lhoro aro rocognizod lrado unions or slaff associalions. Tho
absonco of lhoso nay indicalo lhal nanagononl adopls a unilarisl phiIosophy. Bul il
is lo bo hopod lhal in lhoso circunslancos nanagononl's offorls lo incroaso nuluaIily
and gain connilnonl adopl a slaIohoIdor or parlnorship approach vhich al Ioasl
invoIvos consuIlalion vilh onpIoyoos on hov lho ¡oinl inlorosls of lho organizalion
and ils nonbors can bosl bo salisfiod.
Tho procoss of roconciIing inlorosls has boon nodoIIod by Gonnard and }udgo
(1997), as shovn in Figuro 50.1.
lNDlVlDLALlSM AND CCLLLC1lVlSM
IurcoII (1987) arguos lhal lho dislinclion bolvoon pIuraIisl and unilary franos of
nanagononl has ´providod a povorfuI inpolus lo lho dobalo aboul nanagononl
slyIo, bul lho nuluaIIy oxcIusivo naluro of lhoso calogorios has Iinilod furlhor dovoI-
opnonl'. Moroovor, vido varialions can bo found vilhin bolh lho unilary and lho
pIuraIisl approach. Ho lhoroforo suggosls an aIlornalivo dislinclion bolvoon índivid-
uaIisn' ÷ poIicios focusing on individuaI onpIoyoos ÷ and ćoIIoclivisn' ÷ lho oxlonl
lo vhich groups of vorIors havo an indopondonl voico and parlicipalo in docision
naIing vilh nanagors. Ho boIiovos lhal conpanios can and do oporalo on bolh lhoso
dinonsions of nanagononl slyIo.
VCLLN1AklSM AND l1S DLCLlNL
Tho ossonco of lho syslons lhoory of induslriaI roIalions is lhal lho ruIos aro ¡oinlIy
agrood by lho roprosonlalivos of lho parlios lo onpIoynonl roIalions, an arrangononl
vhich, il is boIiovod, naIos for roadior accoplanco lhan if lhoy voro inposod by a
lhird parly such as lho Slalo. This concopl of voIunlarisn vas dofinod by Kahn-
Fround (1972) as ´lho poIicy of lho Iav lo aIIov lho lvo sidos by agroononl and prac-
lico lo dovoIop lhoir ovn norns and lhoir ovn sanclions and lo abslain fron IogaI
conpuIsion in lhoir coIIoclivo roIalionship'. Il vas, in ossonco, voIunlarisn lhal cano
undor allacI by govornnonl IogisIalion fron 1974 onvards, incIuding lho principIo
of ínnunilios' for induslriaI aclion and lho cIosod shop.
FIgurc 50.1 EnpIoyoo roIalions: roconciIialion of inlorosls
Employees
'highest wages
and conditions'
survival of the
enterprise
Employers
profit/surplus
high quality service
survival of the
enterprise
reflect relative bargaining powers
reconciliation of
different interests
processes
agreements
different
interests
common
interest
1HL HkM AllkCACH 1C LMlLCYLL kLLA1lCNS
Thc HR\ modcí
Tho phiIosophy of HRM has boon lransIalod inlo lho foIIoving proscriplions, vhich
conslilulo lho HRM nodoI for onpIoyoo roIalions:
a drivo for connilnonl ÷ vinning lho ´hoarls and ninds' of onpIoyoos lo gol
lhon lo idonlify vilh lho organizalion, lo oxorl lhonsoIvos noro on ils bohaIf and
lo ronain in il, lhus onsuring a rolurn on lhoir lraining and dovoIopnonl,
an onphasis on nuluaIily ÷ golling lho nossago across lhal ´vo aro aII in lhis
logolhor' and lhal lho inlorosls of nanagononl and onpIoyoos coincido,
lho organizalion of conpIononlary forns of connunicalion, such as loan
briofing, aIongsido lradilionaI coIIoclivo bargaining ÷ io approaching onpIoyoos
diroclIy as individuaIs or in groups ralhor lhan lhrough lhoir roprosonlalivos,
a shifl fron coIIoclivo bargaining lo individuaI conlracls,
lho uso of onpIoyoo invoIvononl lochniquos such as quaIily circIos or inprovo-
nonl groups,
conlinuous prossuro on quaIily ÷ lolaI quaIily nanagononl,
incroasod fIoxibiIily in vorIing arrangononls, incIuding nuIli-sIiIIing, lo
provido for lho noro offoclivo uso of hunan rosourcos, sonolinos acconpaniod
by an agroononl lo provido socuro onpIoynonl for lho ćoro' vorIors,
onphasis on loanvorI,
harnonizalion of lorns and condilions for aII onpIoyoos.
Tho Ioy conlrasling dinonsions of lradilionaI induslriaI roIalions and HRM havo
boon prosonlod by Guosl (1995) as foIIovs:
1ho lrumovork ol ompíoyoo roíutìons 76l
Dímcn·íon índu·|ríaí Rcía|íon· HR\
lsychoíogìcuí contruct Compíìunco Commìtmont
ßohuvìour roloroncos Norms, custom und Vuíuos/mìssìon
pructìco
koíutìonshìps Lov trust, píuruíìst, Hìgh trust, unìturìst,
coííoctìvo ìndìvìduuí
Crgunìzutìon dosìgn lormuí roíos, líoxìbío roíos,
hìorurchy, líut structuro,
dìvìsìon ol íubour, toumvork/uutonomy,
munugorìuí controí soíl controí
TabIc 50.1 Conlrasling dinonsions of induslriaI roIalions and HRM
Guosl nolos lhal lhis nodoI ains lo supporl lho achiovononl of lho lhroo nain
sourcos of conpolilivo advanlago idonlifiod by Iorlor (1980), nanoIy, innovalion,
quaIily and cosl Ioadorship. Innovalion and quaIily slralogios roquiro onpIoyoo
connilnonl vhiIo cosl Ioadorship slralogios aro boIiovod by nany nanagononls lo
bo achiovabIo onIy vilhoul a union. ´Tho Iogic of a narIol-drivon HRM slralogy is
lhal vhoro high organisalionaI connilnonl is soughl, unions aro irroIovanl. Whoro
cosl advanlago is lho goaI, unions and induslriaI roIalions syslons appoar lo carry
highor cosls.'
An HRM approach is sliII possibIo if lrado unions aro rocognizod by lho organiza-
lion. In lhis caso, lho slralogy nighl bo lo narginaIizo or al Ioasl sido-slop lhon by
doaIing dirocl vilh onpIoyoos lhrough invoIvononl and connunicalions procossos.
1HL CCN1LX1 Cl lNDLS1klAL kLLA1lCNS
InduslriaI roIalions aro conduclod vilhin lho oxlornaI conloxl of lho nalionaI poIilicaI
onvironnonl, lho inlornalionaI conloxl and lho inlornaI conloxl of lho organizalion.
Thc poíí|ícaí con|cx|
Tho poIilicaI conloxl is fornod by lho govornnonl of lho day. Consorvalivo adninis-
lralions fron 1979 lo 1997 sol oul lo curb lho povor of lho lrado unions
lhrough IogisIalion and succoodod lo a dogroo. Labour adninislralions havo nol
nado any na¡or changos lo oxisling IogisIalion oxcopl in lho aroa of lrado union
rocognilion.
Thc Luropcan con|cx|
EnpIoyoo roIalions in lho UK aro affoclod by Europoan Union roguIalions and inilia-
livos. Anunbor of ArlicIos in lho originaI lroaly of Rono roforrod lo lho pronolion of
inprovononls in vorIing condilions and lho nood lo dovoIop diaIoguo bolvoon lho
lvo sidos of induslry. Il soons IiIoIy lhal lho conducl of onpIoyoo roIalions in Brilain
viII bo incroasingIy affoclod by EU diroclivos, such as lhoso concorning vorIs coun-
ciIs and vorIing hours.
Thc organí2a|íonaí con|cx|
Tho nood lo ´laIo cosl oul of lho businoss' has noanl lhal onpIoyors havo focusod on
lho cosl of Iabour ÷ usuaIIy lho highosl and nosl oasiIy roducod cosl. Honco ´lho Ioan
organizalion' novononl and Iargo-scaIo rodundancios, ospociaIIy in nanufacluring.
Thoro has boon prossuro for groalor fIoxibiIily and incroasod nanagononl conlroI of
oporalions, vhich has had a dirocl inpacl on onpIoyoo roIalions poIicios and union
agroononls.
Tho vidosproad inlroduclion of nov lochnoIogy and infornalion lochnoIogy has
ainod lo incroaso produclivily by achioving highor IovoIs of officioncy and roducing
Iabour cosls. Organizalions aro roIying noro on a coro of Ioy fuII-lino onpIoyoos,
Ioaving lho poriphoraI vorI lo bo undorlaIon by subconlraclors and lho incroasing
nunbors of parl-linors ÷ vonon  non. This has roducod lho nunbor of
onpIoyoos vho vish lo ¡oin unions or ronain lrado union nonbors.
DLVLLClMLN1S lN lNDLS1klAL kLLA1lCNS
DovoIopnonls in lho praclico of induslriaI roIalions sinco lho 1950s can bo dividod
inlo lho foIIoving phasos:
1. Tho lradilionaI syslon oxisling prior lo lho 1970s.
2. Tho Donovan anaIysis of 1968.
3. Tho inlorvonlionisl and onpIoynonl proloclion noasuros of lho 1970s.
4. Tho 1980s progranno for curbing vhal voro porcoivod by lho Consorvalivo
Govornnonl lo bo lho oxcossos of ranpanl lrado unionisn.
Thc |radí|íonaí ·,·|cm - |o 1971
RoIalions prior lo 1971 and indood for nosl of lho 1970s couId bo doscribod as a
syslon of coIIoclivo roprosonlalion dosignod lo conlain confIicl. VoIunlary coIIoclivo
bargaining bolvoon onpIoyoos and onpIoyors' associalions vas lho conlraI foaluro of
lho syslon, and lhis procoss of ¡oinl roguIalion vas IargoIy concornod vilh pay and
basic condilions of onpIoynonl, ospociaIIy hours of vorI in induslry, and IogaI
abslonlion on lho parl of lho slalo and lho ¡udiciary. During lhis poriod and, in facl,
for nosl of lho lvonliolh conlury, lho Brilish syslon of induslriaI roIalions vas char-
aclorizod by a lradilion of voIunlarisn.
Thc Donovan anaí,·í·
Tho high incidonco of dispulos and slriIos, lho porcoivod povor of lho lrado unions
and sono voII-pubIicizod oxanpIos of shop slovard niIilancy (aIlhough lho na¡orily
voro quilo anonabIo) conlribulod lo lho prossuro for lho roforn of induslriaI roIalions
vhich Iod lo lho solling up of lho Donovan Connission. This concIudod in 1968 lhal
lho fornaI syslon of induslry-vido bargaining vas broaIing dovn. Ils Ioy findings
voro lhal al pIanl IovoI, bargaining vas highIy fragnonlod and iII-organizod, basod
on infornaIily and cuslon and praclico. Tho Connission's proscriplion vas for a
conlinualion of voIunlarisn, roinforcod by organizod coIIoclivo bargaining arrango-
nonls IocaIIy, lhus roIioving lrado unions and onpIoyors' associalions of lho ´poIicing
roIo', vhich lhoy so oflon faiIod lo carry oul. This soIulion invoIvod lho croalion of
nov, ordorIy and syslonalic franovorIs for coIIoclivo bargaining al pIanl IovoI by
noans of fornaI nogolialion and procoduraI agroononls.
Sinco Donovan, conprohonsivo poIicios, slrucluros and procoduros lo doaI vilh
pay and condilions, shop slovard faciIilios, discipIino, hoaIlh and safoly, olc havo
boon dovoIopod al pIanl IovoI lo a subslanliaI oxlonl. Tho supporl providod by
Donovan lo lho voIunlary syslon of induslriaI roIalions vas, hovovor, undorpinnod
by a povorfuI ninorily nolo of rosorvalion ponnod by Androv ShonfioId in lho 1968
roporl of lho RoyaI Connission. Ho advocalod a noro inlorvonlionisl approach,
vhich bogan lo foaluro in govornnonl poIicios in lho 1970s.
ín|crvcn|íoní·m ín |hc 1970·
Tho rocoivod visdon in lho 1960s, as rofIoclod in lho na¡orily Donovan roporl, vas
lhal induslriaI roIalions couId nol bo conlroIIod by IogisIalion. Bul lho InduslriaI
RoIalions Acl inlroducod by lho Consorvalivo Govornnonl in 1971 ignorod lhis boIiof
and drov hoaviIy on ShonfioId's ninorily roporl. Il inlroducod a slrongIy inlorvon-
lionisl IogaI franovorI lo ropIaco lho voIunlary roguIalion of induslriaI roIalions
syslons. Trado unions Iosl lhoir gonoraI innunily fron IogaI aclion and had lo
rogislor undor lho Acl if lhoy vanlod any righls al aII. CoIIoclivo agroononls voro lo
bocono IogaIIy binding conlracls and a nunbor of únfair induslriaI praclicos' voro
proscribod. IndividuaI vorIors voro givon lho righl lo boIong or nol boIong lo a lrado
union bul no allonpl vas nado lo oulIav lho cIosod shop. Bul lho Acl faiIod lo naIo
any inpacl, boing ignorod or sido-sloppod by bolh lrado unions and onpIoyors,
aIlhough il did inlroduco lho inporlanl gonoraI righl of onpIoyoos ńol lo bo unfairIy
disnissod'.
Tho Labour Govornnonl of 1974 pronplIy ropoaIod lho 1971 InduslriaI RoIalions
Acl and onlorod inlo a ´sociaI conlracl' vilh lho lrado unions vhich incorporalod an
agroononl lhal lho Trados Union Congross (TUC) vouId supporl lho inlroduclion of
a nunbor of posilivo union righls. Thoso incIudod a slalulory rocognilion procoduro
and in offocl noanl lhal lho unions oxprossod lhoir connilnonl lo IogaI onforcononl
as a noans of roslricling nanagononl's prorogalivos.
Slalulory righls voro aIso providod for nininun nolico poriods, slalononls of
lorns and condilions, rodundancy paynonls and unfair disnissaI.
Thc 1980· - curbíng |hc |radc uníon·
Tho slriIo-riddon ´vinlor of disconlonl' in 1978 and lho rolurn of a Consorvalivo
Govornnonl in 1979 pavod lho vay for lho onsuing slop-by-slop IogisIalion vhich
conlinuod lhroughoul lho 1980s and inlo lho oarIy 1990s.
Tho olhos of lho Consorvalivo Govornnonls in lho 1980s vas sunnod up by
IhoIps Brovn (1990) as foIIovs:
loopío uro no íongor soon us dopondont on socìoty und bound by rocìprocuí roíutìonshìp
to ìt, ìndood tho vory notìon ol socìoty ìs ro¡octod. lndìvìduuís uro oxpoctod to shìlt lor
thomsoívos und thoso vho got ìnto dìllìcuítìos uro thought to huvo oníy thomsoívos to
bíumo. Soíl-roíìunco, ucquìsìtìvo ìndìvìduuíìsm, tho curtuìímont ol pubíìc oxpondìturo,
tho píuy ol murkot lorcos ìnstoud ol tho rostruìnts und dìroctìvos ol pubíìc poíìcy, tho
prorogutìvos ol munugomont ìnstoud ol tho povor ol tho unìons, contruíìsutìon ol povor
ìnstoud ol píuruíìsm.
Tho IogisIalion on lrado unions foIIovod lhis olhos and vas guidod by an idoo-
IogicaI anaIysis oxprossod in lho 1981 Groon Iapor on 1rc!c Unicn lmmuniiics
as foIIovs: ÍnduslriaI roIalions cannol oporalo fairIy and officionlIy or lo lho bonofil
of lho nalion as a vhoIo if oilhor onpIoyors or onpIoyoos coIIoclivoIy aro givon
prodoninanl povor ÷ lhal is, lho capacily offoclivoIy lo diclalo lho bohaviour of
olhors.'
Tho govornnonl doscribod induslriaI roIalions as ´lho fundanonlaI causo of voaI-
noss in lho Brilish oconony', vilh slriIos and roslriclivo praclicos inhibiling lho
counlry's abiIily lo conpolo in inlornalionaI narIols. Tho baIanco of bargaining
povor vas porcoivod lo havo novod docisivoIy in favour of lrado unions vhich voro
doscribod as írrosponsibIo, undonocralic and inlinidalory', vhiIo lho cIosod shop
vas doscribod as boing doslruclivo of lho righls of lho individuaI vorIor.
Dcvcíopmcn|· ·íncc 1990
KossIor and BayIiss (1992) connonlod lhal ´lho noods of onpIoyors havo incroasingIy
boon lovards onlorpriso orionlalod ralhor lhan occupalionaIIy orionlalod lrado
unions'. Thoy aIso nolod lhal: Íl is cIoar lhal lho significanco of induslriaI roIalions in
nany firns has dininishod. Il is parl of a nanagononl conlroIIod oporalion ÷ a
branch of hunan rosourco nanagononl. Il is no Iongor a high profiIo probIon-riddon
parl of porsonnoI nanagononl as il so oflon vas in lho 1970s.'
Guosl (1995) nolod lhal lho induslriaI roIalions syslon nay conlinuo as a IargoIy
synboIic ónply shoII', insufficionlIy inporlanl for nanagononl lo confronl and
oIininalo, bul rolaining lho oulvard appoaranco of hoaIlh lo lho casuaI obsorvor:
´Managononl sols lho agonda, vhich is narIol-drivon, vhiIo induslriaI roIalions
issuos aro roIalivoIy Iov on lho Iisl of concorns.'
Concíu·íon· of |hc Vor|píacc Lmpío,cc Rcía|íon· Survc, ¹VLRS)
2004
Tho rosuIls shovod sono significanl changos (fron lho 1988 survoy). Mosl slriIing of
aII, porhaps, vas lho conlinuing docIino of coIIoclivo Iabour organizalion. EnpIoyoos
voro Ioss IiIoIy lo bo union nonbors lhan lhoy voro in 1998, vorIpIacos voro Ioss
IiIoIy lo rocognizo unions for bargaining ovor pay and condilions, coIIoclivo
bargaining vas Ioss provaIonl. Evon so, lho ralo of docIino soonod lo havo sIovod
dovn fron lhal soon in oarIior poriods and lho ¡oinl roguIalion of lorns and condi-
lions ronains a roaIily for nany onpIoyoos in Brilain: ono-haIf of onpIoyoos voro
onpIoyod in vorIpIacos vilh a rocognizod lrado union, ono-lhird voro union
nonbors, and 40 por conl had lhoir pay sol lhrough coIIoclivo bargaining.
1HL lAk1lLS 1C lNDLS1klAL kLLA1lCNS
Tho parlios lo induslriaI roIalions aro:
lho lrado unions,
shop slovards or onpIoyoo roprosonlalivos,
lho Trados Union Congross (lho TUC),
nanagononl,
onpIoyor's organizalions,
lho Confodoralion of Brilish Induslry,
various inslilulions, agoncios and officors.
Tho roIo of oach of lhoso parlios is sunnarizod boIov
Thc |radc uníon·
TradilionaIIy lho fundanonlaI purposo of lrado unions is lo pronolo and prolocl lho
inlorosls of lhoir nonbors. Thoy aro lhoro lo rodross lho baIanco of povor bolvoon
onpIoyors and onpIoyoos. Tho basis of lho onpIoynonl roIalionship is lho conlracl
of onpIoynonl. Bul lhis is nol a conlracl bolvoon oquaIs. EnpIoyors aro aInosl
aIvays in a slrongor posilion lo diclalo lho lorns of lho conlracl lhan individuaI
onpIoyoos. Trado unions, as indicalod by Froonan and Modoff (1984), provido
vorIors vilh a ćoIIoclivo voico' lo naIo lhoir vishos Inovn lo nanagononl and
lhus bring acluaI and dosirod condilions cIosor logolhor. This appIios nol onIy lo
lorns of onpIoynonl such as pay, vorIing hours and hoIidays, bul aIso lo lho vay
in vhich individuaIs aro lroalod in such aspocls of onpIoynonl as lho rodross of
griovancos, discipIino and rodundancy. Trado unions aIso oxisl lo Iol nanago-
nonl Inov lhal lhoro viII bo, fron lino lo lino, an aIlornalivo viov on Ioy issuos
affocling onpIoyoos. Moro broadIy, unions nay soo lhoir roIo as lhal of parlicipal-
ing vilh nanagononl on docision naIing on nallors affocling lhoir nonbors'
inlorosls.
Wilhin lhis ovoraII roIo, lrado unions havo had lvo spocific roIos, nanoIy lo socuro,
lhrough coIIoclivo bargaining, inprovod lorns and condilions for lhoir nonbors,
and lo provido proloclion, supporl and advico lo lhoir nonbors as individuaI
onpIoyoos.
An addilionaI roIo, lhal of providing IogaI, financiaI and olhor sorvicos lo lhoir
nonbors, has cono inlo proninonco noro roconlIy.
Tradc union structurc
Trado unions aro run by fuII-lino conlraI and, usuaIIy, dislricl officiaIs. Thoro nay
bo IocaI connilloos of nonbors. NalionaI officiaIs nay conducl induslry-vido
or na¡or onpIoyor pay nogolialions vhiIo IocaI officiaIs nay nol bo invoIvod in
pIanl nogolialions unIoss lhoro is a ´faiIuro lo agroo' and lho socond slago of a nogoli-
aling procoduro is invoIod. Ma¡or onpIoyors vho vanl lo inlroduco significanl
changos in agroononls or vorIing arrangononls nay doaI dirocl vilh nalionaI
officiaIs.
Tho lrado union novononl is nov doninalod by lho Iargo gonoraI unions and lho
norgod crafl and pubIic sorvico unions.
Shop ·|cvard·
Shop slovards or onpIoyoo roprosonlalivos nay iniliaIIy bo rosponsibIo for pIanl
nogolialions, probabIy vilh lho advico of fuII-lino officiaIs. Thoy viII corlainIy bo
invoIvod in sollIing dispulos and rosoIving coIIoclivo griovancos and in roprosonling
individuaI onpIoyoos vilh griovancos or ovor discipIinary nallors. Thoy nay bo
nonbors of ¡oinl consuIlalivo connilloos, vhich couId bo vhoIIy or parlIy con-
posod of lrado union roprosonlalivos.
Al ono lino, shop slovards voro lho ogros of lho induslriaI roIalions scono.
UndoublodIy lhoro voro casos of niIilanl shop slovards, bul vhoro lhoro aro
rocognizod lrado unions, nanagononls havo gonoraIIy rocognizod lho vaIuo of shop
slovards as poinls of conlacl and channoIs of connunicalion.
Thc Tradc· Uníon Congrc·· ¹TUC)
Tho TUC acls as lho coIIoclivo voico of lho unions. Ils roIos aro lo:
roprosonl lho Brilish lrado union novononl in lho UK and inlornalionaIIy,
conducl rosoarch and dovoIop poIicios on lrado union, induslriaI, ocononic and
sociaI nallors and lo canpaign aclivoIy for lhon,
roguIalo roIalionships bolvoon unions,
hoIp unions in dispulo,
provido various sorvicos (og rosoarch) lo affiIialod unions.
Bul lho TUC has offoclivoIy boon narginaIizod by succossivo Consorvalivo govorn-
nonls and is bul a shadov of ils fornor soIf, ospociaIIy sinco ils inlorvonlionary roIo
concorning union dispulos ovor nonborship (lho BridIinglon ruIos) has nov offoc-
livoIy boon aboIishod by IogisIalion.
ín|crna|íonaí uníon organí2a|íon·
Tho lvo nain inlornalionaI union organizalions aro lho Europoan Trado Union
Confodoralion and lho InlornalionaI Trado Union Confodoralion. Al prosonl noilhor
of lhoso naIos nuch inpacl on lho UK, bul lhis couId chango.
S|aff a··ocía|íon·
Slaff associalions nay sonolinos havo nogolialing and/or roprosonlalionaI righls
bul lhoy soIdon havo anylhing IiIo lho roaI povor possossod by a voII-organizod and
supporlod lrado union. Thoy aro oflon suspoclod by onpIoyoos as boing no noro lhan
nanagononl's poodIo. Managononls havo sonolinos oncouragod lho dovoIopnonl
of slaff associalions as an aIlornalivo lo lrado unions bul lhis slralogy has nol aIvays
vorIod. In facl, in sono organizalions lho oxislonco of an unsalisfaclory slaff associa-
lion has providod an opporlunily for a lrado union lo gain nonborship and rocogni-
lion. Slaff associalions havo lhoir usos as channoIs of connunicalion, and
roprosonlalivos can pIay a roIo in consuIlalivo procossos and in roprosonling
coIIoaguos vho vanl lo laIo up griovancos or vho aro boing sub¡oclod lo discipIinary
procoodings.
Thc roíc of managcmcn|
Tho baIanco of povor has undoublodIy shiflod lo nanagononls vho nov havo noro
choico ovor hov lhoy conducl roIalionships vilh lhoir onpIoyoos. Bul lho ovidonco is
lhal lhoro has boon no concorlod drivo by nanagononls lo do-rocognizo unions. As
KossIor and BayIiss (1992) poinl oul: Íf nanagors in Iargo oslabIishnonls and conpa-
nios vanlod lo naIo changos lhoy IooIod al vays of doing so vilhin lho oxisling
arrangononls and if lhoy couId produco lho goods lhoy usod lhon. Bocauso
nanagors found lhal lho unions did nol sland in lhoir vay lhoy sav no roason for
golling rid of lhon.' Thoy arguod lhal nanagononl's induslriaI roIalions ob¡oclivos
aro nov gonoraIIy lo:
conlroI lho vorI procoss,
socuro cosl-offoclivonoss,
roassorl nanagoriaI aulhorily,
novo lovards a noro unilary and individuaIislic approach.
As Sloroy (1992a) found in nosl of lho casos ho sludiod, lhoro vas a londoncy for
nanagononls lo adopl HRM approachos lo onpIoyoo roIalions vhiIo sliII cooxisling
vilh lho unions. Bul lhoy gavo incroasing voighl lo syslons of onpIoyoo invoIvo-
nonl, in parlicuIar connunicalion, vhich bypass lrado unions.
Lmpío,cr·' organí2a|íon·
TradilionaIIy, onpIoyors' organizalions havo bargainod coIIoclivoIy for lhoir non-
bors vilh lrado unions and havo in gonoraI ainod lo prolocl lho inlorosls of lhoso
nonbors in lhoir doaIings vilh unions. MuIli-onpIoyors or induslry-vido bargain-
ing, il vas boIiovod, aIIovod conpanios lo conpolo in producl narIols vilhoul
undorculling lhoir conpolilors' onpIoynonl cosls and provonlod lho lrado unions
´picIing off' individuaI onpIoyors in a dispulo.
Tho lrond lovards doconlraIizing bargaining lo pIanl IovoI has roducod lho oxlonl
lo vhich onpIoyors' organizalions fuIfiI lhis lradilionaI roIo, aIlhough sono indus-
lrios such as buiIding and oIoclricaI conlracling vilh Iargo nunbors of snaII conpa-
nios in conpolilivo narIols havo rolainod lhoir conlraI bargaining funclion, solling a
fIoor of lorns and condilions for lho induslry.
Thc Confcdcra|íon of ßrí|í·h índu·|r, ¹Cßí)
Tho CBI is a nanagononl organizalion vhich is onIy indiroclIy concornod vilh
induslriaI roIalions. Il providos a noans for ils nonbors lo infIuonco ocononic poIicy
and il providos advico and sorvicos lo lhon, supporlod by rosoarch.
ín·|í|u|íon·, agcncíc· and offíccr·
Thoro aro a nunbor of bodios and poopIo vilh a roIo in onpIoyoo roIalions, as
doscribod boIov.
Tbc Advisory ConciIiation and Arbitration Scrvicc (ACAS)
ACAS vas croalod by lho govornnonl bul funclions indopondonlIy. Il has lhroo nain
slalulory dulios:
lo rosoIvo dispulos,
lo provido conciIialory sorvicos for individuaIs in, for oxanpIo, unfair disnissaI
casos,
lo givo advico, hoIp and infornalion on induslriaI roIalions and onpIoynonl
issuos.
ACAS hoIps lo rosoIvo dispulos in lhroo vays: coIIoclivo conciIialion, arbilralion and
nodialion.
During lho 1980s and oarIy 1990s lho uso of ACAS's coIIoclivo conciIialion and
arbilralion sorvicos docIinod considorabIy. Bul lho individuaI conciIialion caso Ioad
has boon vory hoavy and lho ACAS advisory vorI has fIourishod. Thoso aro ainod
al oncouraging non-advorsariaI approachos lo provonling and rosoIving probIons al
vorI by faciIilaling ¡oinl vorIing groups of onpIoyors, onpIoyoos and lhoir
roprosonlalivos.
Tbc CcntraI Arbitration Committcc (CAC)
Tho CAC is an indopondonl arbilralion body lhal doaIs vilh dispulos. Il arbilralos al
lho roquosl of ono parly bul vilh lho agroononl of lho olhor. Il doos nol handIo nany
arbilralions bul il doaIs noro froquonlIy vilh cIains by lrado unions for discIosuro of
infornalion for coIIoclivo bargaining purposos.
FmpIoymcnt tribunaIs
EnpIoynonl lribunaIs aro indopondonl ¡udiciaI bodios lhal doaI vilh dispulos on
onpIoynonl nallors such as unfair disnissaI, oquaI pay, sox and raco discrininalion
and onpIoynonl proloclion provisions. Thoy havo a IogaIIy quaIifiod chair and lvo
olhor nonbors, ono an onpIoyor, lho olhor a lrado unionisl.
Tbc FmpIoymcnt AppcaI TribunaI (FAT)
Tho EAT hoars appoaIs fron lho docisions of induslriaI lribunaIs on quoslions of Iav
onIy.
kCLL Cl 1HL Hk lLNC1lCN lN
LMlLCYLL kLLA1lCNS
Tho HR funclion providos guidanco and lraining and viII dovoIop and hoIp lo inlro-
duco and nainlain fornaI procossos, bul il doos nol do Iino nanagors' ¡obs for lhon.
Hovovor, in lhoir roIo as induslriaI roIalions spociaIisls, HR praclilionors nay doaI
diroclIy vilh lrado unions and lhoir roprosonlalivos. Thoy aro aIso IiIoIy lo havo a
noasuro of rosponsibiIily for nainlaining parlicipalion and invoIvononl procossos
and for nanaging onpIoyoo connunicalions. Thoy can and shouId pIay a na¡or parl
in dovoIoping onpIoyoo roIalions slralogios and poIicios lhal ain lo:
achiovo salisfaclory onpIoynonl roIalionships, laIing parlicuIar accounl of lho
inporlanco of psychoIogicaI conlracls,
buiId slabIo and cooporalivo roIalionships vilh onpIoyoos vhich rocognizo lhal
lhoy aro slaIohoIdors in lho organizalion and nininizo confIicl,
achiovo connilnonl lhrough onpIoyoo invoIvononl and connunicalions
procossos,
dovoIop nuluaIily ÷ a connon inlorosl in achioving lho organizalion's goaIs
lhrough lho dovoIopnonl of organizalionaI cuIluros basod on sharod vaIuos
bolvoon nanagononl and onpIoyoos,
cIarify induslriaI roIalions procossos vilh lrado unions and buiId harnonious
roIalionships vilh lhon on a parlnorship basis.
In lhoso capacilios HR praclilionors can naIo a na¡or conlribulion lo lho croalion and
nainlonanco of a good onpIoyoo roIalions cIinalo.
1ho lrumovork ol ompíoyoo roíutìons 77l
Lmpíoyoo roíutìons procossos
EnpIoyoo roIalions procossos consisl of lho approachos and nolhods adoplod by
onpIoyors lo doaI vilh onpIoyoos oilhor coIIoclivoIy lhrough lhoir lrado unions or
individuaIIy. Thoy viII bo basod on lho organizalion's arlicuIalod or inpIiod
onpIoyoo roIalions poIicios and slralogios as oxaninod in lho firsl lvo soclions of lhis
chaplor. Tho vay in vhich lhoy aro dovoIopod and hov lhoy funclion viII bo infIu-
oncod by, and viII infIuonco, lho onpIoyoo roIalions cIinalo, lho concopl of vhich is
oxaninod in lho lhird soclion of lho chaplor.
InduslriaI roIalions procossos, io lhoso aspocls of onpIoyoo roIalions lhal aro
concornod vilh lho doaIings bolvoon onpIoyors and lrado unions, consisl of:
approachos lo rocognizing or do-rocognizing lrado unions,
fornaI nolhods of coIIoclivo bargaining,
parlnorship as an approach lo onpIoyoo roIalions,
lho infornaI day-lo-day conlacls on onpIoynonl issuos lhal laIo pIaco in lho
vorIpIaco bolvoon nanagononl and lrado union roprosonlalivos or officiaIs,
foaluros of lho induslriaI roIalions scono such as union nonborship in lho vorI-
pIaco, lho chocI-off and slriIos.
Thoso procossos aro considorod Ialor in lhis chaplor. Nogolialing lochniquos and sIiIIs
as an aspocl of coIIoclivo bargaining aro doaIl vilh soparaloIy in lho noxl chaplor. In

addilion lhoro aro lho onpIoyoo roIalions procossos of invoIvononl, parlicipalion and
connunicalion vhich aro discussod in Chaplor 53.
Tho oulconos of lhoso procossos aro various forns of procoduraI and subslanlivo
agroononls and onpIoynonl procoduros, incIuding harnonizalion of lorns and
condilions, and lho approachos usod by organizalions lo nanago vilh and vilhoul
lrado unions. Thoso aro doscribod in lho Iasl lhroo soclions of lhis chaplor.
LMlLCYLL kLLA1lCNS lCLlClLS
Approachc· |o cmpío,cc rcía|íon·
Four approachos lo onpIoyoo roIalions poIicios havo boon idonlifiod by InduslriaI
RoIalions Sorvicos (1994):
A!tcrscricl. lho organizalion docidos vhal il vanls lo do, and onpIoyoos aro
oxpoclod lo fil in. EnpIoyoos onIy oxorciso povor by rofusing lo cooporalo.
1rc!iiicncl. a good day-lo-day vorIing roIalionship bul nanagononl proposos
and lho vorIforco roacls lhrough ils oIoclod roprosonlalivos.
Pcrincrs|ip. lho organizalion invoIvos onpIoyoos in lho draving up and oxoculion
of organizalion poIicios, bul rolains lho righl lo nanago.
Pcucr s|cring. onpIoyoos aro invoIvod in bolh day-lo-day and slralogic docision
naIing.
AdvorsariaI approachos aro nuch Ioss connon lhan in lho 1960s and 1970s. Tho
lradilionaI approach is sliII lho nosl lypicaI bul noro inlorosl is boing oxprossod in
parlnorship, as discussod Ialor in lhis chaplor. Iovor sharing is raro.
Naturc and purposc of cmpIoycc rcIations poIicics
Againsl lho bacIground of a proforonco for ono of lho four approachos Iislod abovo,
onpIoyoo roIalions poIicios oxpross lho phiIosophy of lho organizalion on vhal sorl
of roIalionships bolvoon nanagononl and onpIoyoos and lhoir unions aro vanlod,
and hov lhoy shouId bo handIod. Aparlnorship poIicy viII ain lo dovoIop and nain-
lain a posilivo, produclivo, cooporalivo and lrusling cIinalo of onpIoyoo roIalions.
Whon lhoy aro arlicuIalod, poIicios provido guidoIinos for aclion on onpIoyoo
roIalions issuos and can hoIp lo onsuro lhal lhoso issuos aro doaIl vilh consislonlIy.
Thoy provido lho basis for dofining nanagononl's inlonlions (ils onpIoyoo roIalions
slralogy) on Ioy nallors such as union rocognilion and coIIoclivo bargaining.
|oííc, arca·
Tho aroas covorod by onpIoyoo roIalions poIicios aro:
irc!c unicn rcccgniiicn ÷ vholhor lrado unions shouId bo rocognizod or do-
rocognizod, vhich union or unions lho organizalion vouId profor lo doaI vilh,
and vholhor or nol il is dosirabIo lo rocognizo onIy ono union for coIIoclivo
bargaining and/or onpIoyoo roprosonlalionaI purposos,
ccllcciitc |crgcining ÷ lho oxlonl lo vhich il shouId bo conlraIizod or doconlraIizod
and lho scopo of aroas lo bo covorod by coIIoclivo bargaining,
cmplcqcc rclciicns prccc!urcs ÷ lho naluro and scopo of procoduros for rodundancy,
griovanco handIing and discipIino,
pcriicipciicn cn! intcltcmcni ÷ lho oxlonl lo vhich lho organizalion is proparod lo
givo onpIoyoos a voico on nallors lhal concorn lhon,
pcrincrs|ip ÷ lho oxlonl lo vhich a parlnorship approach is lhoughl lo bo
dosirabIo,
i|c cmplcqmcni rclciicns|ip ÷ lho oxlonl lo vhich lorns and condilions of onpIoy-
nonl shouId bo govornod by coIIoclivo agroononls or basod on individuaI
conlracls of onpIoynonl (io coIIoclivisn vorsus individuaIisn),
|crmcnizciicn of lorns and condilions of onpIoynonl for slaff and nanuaI
vorIors,
ucr|ing crrcngcmcnis ÷ lho dogroo lo vhich nanagononl has lho prorogalivo lo
dolornino vorIing arrangononls vilhoul roforonco lo lrado unions or onpIoyoos
(lhis incIudos ¡ob-basod or funclionaI fIoxibiIily).
Whon fornuIaling poIicios in lhoso aroas, organizalions nay bo consciousIy or
unconsciousIy dociding on lho oxlonl lo vhich lhoy vanl lo adopl lho HRM approach
lo onpIoyoo roIalions. This onphasizos connilnonl, nuluaIily and forns of
invoIvononl and parlicipalion lhal noan lhal nanagononl approachos and connu-
nicalos vilh onpIoyoos diroclIy ralhor lhan lhrough lhoir roprosonlalivos.
|oííc, choícc·
Thoro is, of courso, no such lhing as a nodoI onpIoyoo roIalions poIicy. Evory
organizalion dovoIops ils ovn poIicios. In a naluro businoss lhoso viII bo in accor-
danco vilh oslabIishod cuslon and praclico, ils coro vaIuos and nanagononl slyIo
and lho acluaI or porcoivod baIanco of povor bolvoon nanagononl and unions. In
youngor organizalions, or lhoso boing oslabIishod on a groon fioId silo, lho poIicios
viII dopond on lho assunplions and boIiofs of nanagononl and, vhoro roIovanl, lho
oxisling phiIosophy and poIicios of lho paronl organizalion. In bolh lhoso casos
Lmpíoyoo roíutìons procossos 775
poIicios viII bo affoclod by lho lypo of poopIo onpIoyod by lho organizalion, ils busi-
noss slralogios, lochnoIogy, lho induslry or soclor in vhich il oporalos, and ils slruc-
luro (for oxanpIo, lho oxlonl lo vhich il is conlraIizod or doconlraIizod).
Tho foIIoving four poIicy oplions for organizalions on induslriaI roIalions and
HRM havo boon doscribod by Guosl (1995):
1|c ncu rcclism ÷ c |ig| cmp|csis cn HRM cn! in!usiricl rclciicns. Tho ain is lo inlo-
gralo HRM and induslriaI roIalions. This is lho poIicy of such organizalions as
Rovor, Nissan and Toshiba. A roviov of nov coIIaboralivo arrangononls in lho
shapo of singIo-labIo bargaining (IRS, 1993) found lhal lhoy voro aInosl aIvays
lho rosuIl of onpIoyor inilialivos, bul lhal bolh onpIoyors and unions soon salis-
fiod vilh lhon. Thoy havo faciIilalod groalor fIoxibiIily, noro nuIli-sIiIIing, lho
ronovaI of donarcalions and inprovononls in quaIily. Thoy can aIso oxlond
consuIlalion procossos and accoIoralo novos lovards singIo slalus.
1rc!iiicncl ccllcciitism ÷ pricriiq ic in!usiricl rclciicns uii|cui HRM. This invoIvos
rolaining lho lradilionaI pIuraIisl induslriaI roIalions arrangononls vilhin an
ovonluaIIy unchangod induslriaI roIalions syslon. Managononl nay laIo lho
viov in lhoso circunslancos lhal il is oasior lo conlinuo lo oporalo vilh a union,
sinco il providos a usofuI, voII-oslabIishod channoI for connunicalion and for lho
handIing of griovanco, discipIino and safoly issuos.
ln!iti!uclizc! HRM ÷ |ig| pricriiq ic HRM uii| nc in!usiricl rclciicns. According lo
Guosl, lhis approach is nol vory connon, oxcopling Norlh Anorican-ovnod
firns. Il is, ho boIiovos, óssonliaIIy pioconoaI and opporlunislic'.
1|c |lcc| |clc ÷ nc in!usiricl rclciicns. This oplion is boconing noro provaIonl in
organizalions in vhich HRM is nol a poIicy priorily for nanagononls bul vhoro
lhoy do nol soo lhal lhoro is a conpoIIing roason lo oporalo vilhin a lradilionaI
induslriaI roIalions syslon. Whon such organizalions aro facing a docision on
vholhor or nol lo rocognizo a union, lhoy aro incroasingIy dociding nol lo do so.
And, as shovn by MiIIvard (1994), non-union firns aro nol ropIacing lho unions
vilh an HRM slralogy. Marginson ci cl (1993) siniIarIy found no supporl for a
non-union HRM slralogy.
|oííc, formuía|íon
EnpIoyoo roIalions poIicios usuaIIy ovoIvo in lho Iighl of lho circunslancos of lho
firn, lradilionaI praclicos, nanagononl's vaIuos and slyIo and lho povor of lrado
unions lo oxorl infIuonco. Thoy viII chango as nov silualions onorgo and lhoso
nay incIudo conpolilivo prossuro, nov nanagononl, a laIoovor, difforonl viovs
anongsl onpIoyoos aboul lho vaIuo of lrado unions, or nov lrado union poIicios.
Sonolinos lhoso changos viII bo doIiboralo. Managononl nay docido lhal il no
Iongor has any uso for lrado unions and viII lhoroforo do-rocognizo lhon. On olhor
occasions lho changos viII sinpIy onorgo fron lho silualion in vhich nanagononl
finds ilsoIf.
Tho ovoIulionary and onorgonl naluro of onpIoyoo roIalions poIicios is lho nosl
lypicaI caso. Bul lhoro is nuch lo bo said for nanagononls occasionaIIy lo sil bacI
and lhinI lhrough lhoir poIicios in ordor lo oslabIish lho oxlonl lo vhich lhoy aro sliII
approprialo. This roviov shouId bo basod on an anaIysis of curronl poIicios and lhoir
roIovanco lo lho changing onvironnonl of lho organizalion. Tho anaIysis couId bo
oxlondod lo discussions vilh union roprosonlalivos vilhin lho firn and IocaI or ovon
nalionaI officiaIs lo oblain lhoir viovs. EnpIoyoos couId aIso bo consuIlod so lhal
lhoir viovs couId bo oblainod and aclod upon, lhus naIing il noro IiIoIy lhal lhoy
viII accopl and bo connillod lo poIicy changos. If lhoro is a slaff associalion, ils roIo
as a roprosonlalivo body shouId bo roconsidorod. AIlornalivoIy, lho caso for solling up
a slaff associalion shouId bo roviovod. Tho oulcono of alliludo survoys dosignod lo
oIicil lho opinions of onpIoyoos on nallors of gonoraI concorn lo lhon can provido
addilionaI infornalion on vhich lo baso poIicy docisions.
Tho rosuIl of such a roviov nighl, for oxanpIo, bo a docision nol lo naIo a fronlaI
assauIl on lho union, bul sinpIy lo dininish ils povor by roslricling lho scopo of
coIIoclivo bargaining and bypassing il and ils shop slovards lhrough noro dirocl
approachos lo individuaI onpIoyoos. As roconl survoys havo shovn, lhis, ralhor lhan
oulrighl do-rocognilion, has boon lho lypicaI poIicy of unionizod firns. And il is prob-
abIo in nosl of lhoso casos lhal lho poIicy ovoIvod ovor lino, ralhor lhan boing fornu-
Ialod aflor a syslonalic roviov.
AIlornalivoIy, procossos of consuIlalion vilh lrado unions and onpIoyoos nay Ioad
lo lho dovoIopnonl of a noro posilivo poIicy of parlnorship vilh lho lrado union
vhich rocognizos lho nuluaI advanlagos of vorIing logolhor.
Lxprc··íng poííc,
Mosl organizalions soon roIuclanl lo connil lhoir onpIoyoo roIalions poIicios lo
vriling. And lhis is undorslandabIo in lho Iighl of lhoir fIuid naluro and, in sono
casos, lho roIuclanco of nanagononls lo adnil pubIicIy lhal lhoy aro anli-union.
IoIicios lhal aro doopIy onboddod as parl of lho nanagoriaI phiIosophy and vaIuos
of lho organizalion do nol nood lo bo fornaIizod. Thoy viII bo fuIIy undorslood by
nanagononl and viII lhoroforo bo aclod upon consislonlIy, ospociaIIy vhon lhoy aro
in offocl broad oxprossions of lho viovs of nanagononl ralhor lhan spocific aclion
guidoIinos.
Tho argunonl for having vrillon poIicios is lhal ovoryono ÷ Iino nanagors, loan
Ioadors and onpIoyoos gonoraIIy ÷ viII bo cIoar aboul vhoro lhoy sland and hov lhoy
aro oxpoclod lo acl. Firns nay aIso vanl lo pubIish lhoir onpIoyoo roIalions poIicios
lo supporl a ńuluaI connilnonl' slralogy. Bul lhis prosupposos lho invoIvononl of
onpIoyoos in fornuIaling lho poIicios.
LMlLCYLL kLLA1lCNS S1kA1LClLS
â|urc and purpo·c
EnpIoyoo roIalions slralogios sol oul hov ob¡oclivos such as lhoso nonlionod abovo
aro lo bo achiovod. Thoy dofino lho inlonlions of lho organizalion aboul vhal noods lo
bo dono and vhal noods lo bo changod in lho vays in vhich lho organizalion
nanagos ils roIalionships vilh onpIoyoos and lhoir lrado unions. LiIo aII olhor
aspocls of porsonnoI or HR slralogy, onpIoyoo roIalions slralogios viII fIov fron lho
businoss slralogy bul viII aIso ain lo supporl il. For oxanpIo, if lho businoss slralogy
is lo conconlralo on achioving conpolilivo odgo lhrough innovalion and lho doIivory
of quaIily lo ils cuslonors, lho onpIoyoo roIalions slralogy nay onphasizo procossos
of invoIvononl and parlicipalion, incIuding lho inpIononlalion of progrannos for
conlinuous inprovononl and lolaI quaIily nanagononl. If, hovovor, lho slralogy for
conpolilivo advanlago, or ovon survivaI, is cosl roduclion, lho onpIoyoo roIalions
slralogy nay conconlralo on hov lhis can bo achiovod by naxinizing cooporalion
vilh lho unions and onpIoyoos and by nininizing dolrinonlaI offocls on lhoso
onpIoyoos and disruplion lo lho organizalion.
EnpIoyoo roIalions slralogios shouId bo dislinguishod fron onpIoyoo roIalions
poIicios. Slralogios aro dynanic. Thoy provido a sonso of diroclion, and givo an
ansvor lo lho quoslion ´hov aro vo going lo gol fron horo lo lhoro`' EnpIoyoo roIa-
lions poIicios aro noro aboul lho horo and nov. Thoy oxpross ´lho vay lhings aro dono
around horo' as far as doaIing vilh unions and onpIoyoos is concornod. Of courso
lhoy viII ovoIvo bul lhis nay nol bo a rosuIl of a slralogic choico. Il is vhon a doIib-
oralo docision is nado lo chango poIicios lhal a slralogy for achioving lhis chango has
lo bo fornuIalod. Thus if lho poIicy is lo incroaso connilnonl, lho slralogy couId
considor hov lhis nighl bo achiovod by invoIvononl and parlicipalion procossos.
S|ra|cgíc dírcc|íon·
Tho inlonlions oxprossod by onpIoyoo roIalions slralogios nay dirocl lho organiza-
lion lovards any of lho foIIoving:
changing forns of rocognilion, incIuding singIo union rocognilion, or do-
rocognilion,
changos in lho forn and conlonl of procoduraI agroononls,
nov bargaining slrucluros, incIuding doconlraIizalion or singIo-labIo bargaining,
lho achiovononl of incroasod IovoIs of connilnonl lhrough invoIvononl or
parlicipalion,
doIiboraloIy bypassing lrado union roprosonlalivos lo connunicalo diroclIy vilh
onpIoyoos,
incroasing lho oxlonl lo vhich nanagononl conlroIs oporalions in such aroas as
fIoxibiIily,
gonoraIIy inproving lho onpIoyoo roIalions cIinalo in ordor lo produco noro
harnonious and cooporalivo roIalionships,
dovoIoping a ´parlnorship' vilh lrado unions, rocognizing lhal onpIoyoos aro
slaIohoIdors and lhal il is lo lho advanlago of bolh parlios lo vorI logolhor (lhis
couId bo doscribod as a unilarisl slralogy aining al incroasing nuluaI connil-
nonl).
formuía|íng ·|ra|cgíc·
LiIo olhor businoss and HR slralogios, lhoso concornod vilh onpIoyoo roIalions can,
in Minlzborg's (1987) vords, ónorgo in rosponso lo an ovoIving silualion'. Bul il is
sliII usofuI lo spond lino doIiboraloIy fornuIaling slralogios and lho ain shouId bo lo
croalo a sharod agonda vhich viII connunicalo a connon porspoclivo on vhal
noods lo bo dono. This can bo oxprossod in vriling bul il can aIso bo cIarifiod lhrough
invoIvononl and connunicalion procossos.
LMlLCYLL kLLA1lCNS CLlMA1L
Tho onpIoyoo roIalions cIinalo of an organizalion roprosonls lho porcoplions of
nanagononl, onpIoyoos and lhoir roprosonlalivos aboul lho vays in vhich
onpIoyoo roIalions aro conduclod and hov lho various parlios (nanagors, onpIoyoos
and lrado unions) bohavo vhon doaIing vilh ono anolhor. An onpIoyoo roIalions
cIinalo can bo good, bad or indifforonl according lo porcoplions aboul lho oxlonl lo
vhich:
nanagononl and onpIoyoos lrusl ono anolhor,
nanagononl lroals onpIoyoos fairIy and vilh considoralion,
nanagononl is opon aboul ils aclions and inlonlions ÷ onpIoyoo roIalions poIi-
cios and procoduros aro lransparonl,
harnonious roIalionships aro gonoraIIy nainlainod on a day-lo-day basis, vhich
rosuIls in viIIing cooporalion ralhor lhan grudging subnission,
confIicl, vhon il doos ariso, is rosoIvod vilhoul rosorl lo induslriaI aclion and
rosoIulion is achiovod by inlogralivo procossos vhich rosuIl in a ´vin÷vin' soIu-
lion,
onpIoyoos aro gonoraIIy connillod lo lho inlorosls of lho organizalion and,
oquaIIy, nanagononl lroals lhon as slaIohoIdors vhoso inlorosls shouId bo
proloclod as far as possibIo.
ímprovíng |hc cííma|c
Inprovononls lo lho cIinalo can bo allainod by dovoIoping fair onpIoyoo roIalions
poIicios and procoduros and inpIononling lhon consislonlIy. Lino nanagors and
loan Ioadors vho aro IargoIy rosponsibIo for lho day-lo-day conducl of onpIoyoo
roIalions nood lo bo oducalod and lrainod on lho approachos lhoy shouId adopl.
Transparoncy shouId bo achiovod by connunicaling poIicios lo onpIoyoos, and
connilnonl incroasod by invoIvononl and parlicipalion procossos. IrobIons lhal
nood lo bo rosoIvod can bo idonlifiod by sinpIy laIIing lo onpIoyoos, lhoir roproson-
lalivos and lhoir lrado union officiaIs. InporlanlIy, as discussod boIov, lho organiza-
lion can addross ils obIigalions lo lho onpIoyoos as slaIohoIdors and laIo slops lo
buiId lrusl.
An c|hícaí approach
Businossos ain lo achiovo prosporily, grovlh and survivaI. IdoaIIy, succoss shouId
bonofil aII lho slaIohoIdors in lho organizalion ÷ ovnors, nanagononl, onpIoyoos,
cuslonors and suppIiors. Bul lho singIo-nindod pursuil of businoss ob¡oclivos can acl
lo lho dolrinonl of onpIoyoos' voII-boing and socurily. Thoro nay bo a lonsion
bolvoon acconpIishing businoss purposos and lho sociaI and olhicaI obIigalions of an
organizalion lo ils onpIoyoos. Bul lho chancos of allaining a good cIinalo of
onpIoyoo roIalions aro sIighl if no allonpl is nado lo rocognizo and acl on an organi-
zalion's dulios lo ils nonbors.
An olhicaI approach viII bo basod on high-connilnonl and high-invoIvononl
poIicios. Tho connilnonl viII bo nuluaI and lho arrangononls for invoIvononl viII
bo gonuino, io nanagononl viII bo proparod nol onIy lo Iislon bul lo acl on lho viovs
oxprossod by onpIoyoos or al Ioasl, if il cannol laIo aclion, lho roasons vhy viII bo
oxpIainod. Il viII aIso bo lransparonl and, aIlhough lho concopl of a ´¡ob for Iifo' nay
no Iongor bo vaIid in nany organizalions, al Ioasl an allonpl viII bo nado lo
nainlain ´fuII onpIoynonl' poIicios.
ßuíídíng |ru·|
Tho Inslilulo of IorsonnoI and DovoIopnonl's (IID) slalononl Pccplc Mc|c i|c
Dijjcrcncc (1994) naIos lho poinl lhal nuch has boon dono in roconl yoars lo inlroduco
a sonso of roaIily inlo onpIoyoo roIalions. Bul, according lo lho IID, ´Managors
shouId nol Iid lhonsoIvos lhal acquiosconco is lho sano lhing as onlhusiaslic
invoIvononl. Tho paco of Iifo and changing vorI pallorns in lho fuluro viII pul a
slrain on lho bosl of roIalionships bolvoon onpIoyoos and nanagors.'
Tho IID suggosls lhal onpIoyoo roIalions poIicios ainod al buiIding lrusl shouId
bo basod on lho principIos lhal onpIoyoos cannol ¡usl bo lroalod as a faclor of produc-
lion and lhal organizalions nusl lransIalo lhoir vaIuos concorning onpIoyoo roIalions
inlo spocific and praclicaI aclion. In loo nany organizalions, inconsisloncy bolvoon
vhal is said and vhal is dono undorninos lrusl, gonoralos onpIoyoo cynicisn and
providos ovidonco of conlradiclions in nanagononl lhinIing.
LNlCN kLCCCNl1lCN AND DL-kLCCCNl1lCN
Rccogní|íon
An onpIoyor fuIIy rocognizos a union for lho purposos of coIIoclivo bargaining vhon
pay and condilions of onpIoynonl aro ¡oinlIy agrood bolvoon nanagononl and
lrado unions. IarliaI rocognilion laIos pIaco vhon onpIoyors roslricl lrado unions lo
roprosonling lhoir nonbors on issuos arising fron onpIoynonl. An indopondonl
lrado union can appIy lo lho CAC for rocognilion, vhich viII agroo vhoro oilhor a
na¡orily of lho vorIors aIroady boIong lo lho union, or vhon lho union vins na¡orily
supporl for rocognilion by al Ioasl 40 por conl of lhoso onlilIod lo volo in a socrol
baIIol.
Síngíc uníon rccogní|íon
Tho oxislonco of a nunbor of unions vilhin ono organizalion vas froquonlIy crili-
cizod in lho 1980s bocauso of lho supposod incroaso in lho conpIoxily of bargaining
arrangononls and lho dangor of inlor-union donarcalion dispulos (vho doos vhal).
Tho ansvor lo lhis probIon vas lhoughl lo bo singIo union roprosonlalion lhrough
singIo union doaIs. Thoso had a nunbor of characlorislics lhal voro considorod lo bo
advanlagoous lo nanagononl.
SingIo-union doaIs havo lho foIIoving lypicaI foaluros:
a singIo union roprosonling aII onpIoyoos, vilh conslrainls pul on lho roIo of
union fuII-lino officiaIs,
Lmpíoyoo roíutìons procossos 78l
fIoxibIo vorIing praclicos ÷ agroononl lo lho fIoxibIo uso of Iabour across lradi-
lionaI donarcalion Iinos,
singIo slalus for aII onpIoyoos ÷ lho harnonizalion of lorns and condilions
bolvoon nanuaI and non-nanuaI onpIoyoos,
an oxprossod connilnonl by lho organizalion lo invoIvononl and lho discIosuro
of infornalion in lho forn of an opon connunicalions syslon and, oflon, a vorIs
counciI,
lho rosoIulion of dispulos by noans of dovicos such as ponduIun arbilralion, a
connilnonl lo conlinuily of produclion and a ńo-slriIo' provision.
SingIo-union doaIs havo gonoraIIy boon concIudod on groon fioId silos, oflon by
}apanoso firns such as Nissan, Sanyo, Malshushsila and Toyola. A ´boauly conlosl'
nay bo hoId by lho onpIoyor lo soIocl a union fron a nunbor of conlondors. Thus,
lho inilialivo is laIon by lho onpIoyor, vho can Iay dovn radicaI lorns for lho
agroononl.
fac|or· ínfíucncíng rccogní|íon or dc-rccogní|íon
EnpIoyors aro in a slrong posilion nov lo chooso vholhor lhoy rocognizo a union or
nol, vhich union lhoy vanl lo rocognizo and lho lorns on vhich lhoy vouId granl
rocognilion, for oxanpIo a singIo union and a no-slriIo agroononl.
Whon solling up on groon fioId silos onpIoyors nay rofuso lo rocognizo unions.
AIlornalivoIy lhoy hoId ´boauly conlosls', as nonlionod abovo, lo soIocl lho union
lhoy profor lo vorI vilh, vhich viII bo proparod lo roach an agroononl in Iino vilh
vhal nanagononl vanls.
An organizalion dociding vholhor or nol lo rocognizo a union viII laIo sono or aII
of lho foIIoving faclors inlo accounl:
lho porcoivod vaIuo or IacI of vaIuo of having a procoss for roguIaling coIIoclivo
bargaining,
if lhoro is an oxisling union, lho oxlonl lo vhich nanagononl has froodon lo
nanago, for oxanpIo, lo chango vorIing arrangononls and inlroduco fIoxibIo
vorIing or nuIli-sIiIIing,
lho hislory of roIalionships vilh lho union,
lho proporlion of onpIoyoos vho aro union nonbors and lho dogroo lo vhich
lhoy boIiovo lhoy nood lho proloclion lhoir union providos, a docision on do-
rocognilion has lo voigh lho oxlonl lo vhich ils porcoivod advanlagos oulvoigh
lho disadvanlagos of upsolling lho  ,
any proforoncos as lo a parlicuIar union, bocauso of ils ropulalion or lho oxlonl lo
vhich il is boIiovod a salisfaclory roIalionship can bo nainlainod.
In considoring rocognilion arrangononls onpIoyors nay aIso considor onloring inlo a
´singIo union doaI' as doscribod abovo.
CCLLLC1lVL ßAkCAlNlNC AkkANCLMLN1S
CoIIoclivo bargaining arrangononls aro lhoso sol up by agroononls bolvoon nanago-
nonls, onpIoyors' associalions, or ¡oinl onpIoyor nogolialing bodios and lrado
unions lo dolornino spocifiod lorns and condilions of onpIoynonl for groups of
onpIoyoos. CoIIoclivo bargaining procossos aro usuaIIy govornod by procoduraI
agroononls and rosuIl in subslanlivo agroononls and agrood onpIoyoo roIalions
procoduros.
Tho considoralions lo bo laIon inlo accounl in dovoIoping and nanaging coIIoclivo
bargaining arrangononls aro:
coIIoclivo agroononls,
lho IovoI al vhich bargaining shouId laIo pIaco,
singIo-labIo bargaining vhoro a nunbor of unions aro rocognizod in ono vorI-
pIaco,
dispulo rosoIulion.
Coíícc|ívc agrccmcn|·
CoIIoclivo agroononls can bo cIassifiod as procoduraI agroononls or subslanlivo
agroononls. Tho fornor provido lho franovorI for coIIoclivo bargaining, and lho
Iallor aro lho oulcono of coIIoclivo bargaining. Tvo forns of coIIoclivo procoduraI
agroononls havo bocono proninonl: parlnorship agroononls and nov-slyIo agroo-
nonls.
|roccduraí agrccmcn|·
IrocoduraI agroononls sol oul lho rospoclivo rosponsibiIilios and dulios of nanagors
and unions, lho slops lhrough vhich lho parlios naIo ¡oinl docisions, and lho proco-
duro lo bo foIIovod if lho parlios faiI lo agroo. Thoir purposo is lo roguIalo lho bohav-
iour of lho parlios lo lho agroononl, bul lhoy aro nol IogaIIy onforcoabIo, and lho
dogroo lo vhich lhoy aro foIIovod doponds on lho goodviII of bolh parlios or lho
baIanco of povor bolvoon lhon. IrocoduraI agroononls aro soIdon broIon and, if so,
novor IighlIy. Tho basic prosunplion of coIIoclivo bargaining is lhal bolh parlios viII
honour agroononls lhal havo boon nado frooIy bolvoon lhon. An allonpl lo naIo
coIIoclivo agroononls IogaIIy onforcoabIo in lho 1971 InduslriaI RoIalions Acl faiIod
bocauso onpIoyors gonoraIIy did nol sooI lo onforco ils provisions.
A lypicaI procoduraI or procoduro agroononl conlains lho foIIoving soclions:
a proanbIo dofining lho ob¡oclivos of lho agroononl,
a slalononl lhal lho union is rocognizod as a roprosonlalivo body vilh nogolialing
righls,
a slalononl of gonoraI principIos, vhich nay incIudo a connilnonl lo uso lho
procoduro (a no-slriIo cIauso) and/or a slalus quo cIauso vhich roslricls lho
abiIily of nanagononl lo inlroduco changos oulsido nogolialod or cuslonary
praclico,
a slalononl of lho faciIilios granlod lo unions, incIuding lho righls of shop slov-
ards and lho righl lo hoId noolings,
provision for ¡oinl nogolialing connilloos (in sono agroononls),
lho nogolialing or dispulos procoduro,
provision for lorninaling lho agroononl.
Tho scopo and conlonl of such agroononls can, hovovor, vary vidoIy. Sono organi-
zalions havo Iinilod rocognilion lo lho provision of roprosonlalionaI righls onIy,
olhors havo laIon an onliroIy difforonl Iino in concIuding singIo-union doaIs vhich,
vhon lhoy firsl onorgod in lho 1980s, voro sonolinos dubbod ńov slyIo agroo-
nonls', or roforrod lo as lho ńov roaIisn'.
An agroononl nay incorporalo or havo allachod lo il onpIoyoo roIalions proco-
duros such as lhoso concornod vilh griovancos, discipIino and rodundancy. In addi-
lion, agroononls aro sonolinos roachod on hoaIlh and safoly procoduros.
Sub·|an|ívc agrccmcn|·
Subslanlivo agroononls sol oul agrood lorns and condilions of onpIoynonl,
covoring pay and vorIing hours and olhor aspocls such as hoIidays, ovorlino
roguIalions, fIoxibiIily arrangononls and aIIovancos. Again, lhoy aro nol IogaIIy
onforcoabIo. A subslanlivo agroononl nay dolaiI lho oporalionaI ruIos for a
paynonl-by-rosuIls schono vhich couId incIudo arrangononls for lining or ro-
lining and for paynonls during vailing lino or on nov, unlinod, vorI.
|ar|ncr·híp agrccmcn|·
A parlnorship agroononl is ono in vhich bolh parlios (nanagononl and lho lrado
union) agroo lo vorI logolhor lo lhoir nuluaI advanlago and lo achiovo a cIinalo of
noro cooporalivo and lhoroforo Ioss advorsariaI induslriaI roIalions.
Tho ralionaIo for parlnorship is lhal il is a vay of golling avay fron confronla-
lionaI induslriaI roIalions lo lho nuluaI bonofil of bolh nanagononl and onpIoyoos.
Iarlnorship doaIs can al Ioasl allonpl lo baIanco lho noods of onpIoyoos for ¡ob socu-
rily vilh lho ains of nanagononl lo naxinizo fIoxibiIily.
Common fcaturcs
Tho connon foaluros of parlnorship as dofinod by RoiIIy (2001) aro:
Muiucliiq ÷ bolh sidos rocognizo lhal lhoro aro aroas of connonaIily, of sharod
inlorosl.
Plurcliiq ÷ il is rocognizod lhal lhoro aro aroas of difforonco as voII as aroas of
connon inlorosl.
1rusi cn! rcspcci ÷ for lho inlonlions of lho olhor sido and for Iogilinalo difforoncos
in inlorosls.
Agrccmcni uii|cui cccrcicn ÷ lhoro is an inlonlion lo soIvo probIons lhrough
consonsus, rocognizing businoss and onpIoyoo noods.
lntcltcmcni cn! tcicc ÷ opporlunilios aro providod for onpIoyoos lo shapo lhoir
vorI onvironnonl and havo lhoir opinions hoard.
ln!iti!uclisi cn! ccllcciitisi !imcnsicn ÷ lhis is achiovod lhrough dirocl and indirocl
(io roprosonlalivo) forns of onpIoyoo invoIvononl.
FrobIcms
Tho concopl of parlnorship caplurod allonlion vhon il firsl onorgod, bul il has nol
bocono a na¡or foaluro of lho induslriaI roIalions scono. Tho TUC oslinalos lhal lhoro
aro onIy aboul 60 gonuino parlnorship doaIs in oxislonco. RoiIIy (2001) nolos lhal lho
concopl can cono undor prossuro for a nunbor of roasons. Throo of lho Ioy faclors
aro:
1. nisundorslanding of vhal parlnorship is aII aboul,
2. IacI of lrusl, IacI of supporl and incroasod ovocalion ovor lho bonofils of parl-
norship, and
3. disagroononls lhal aro nol rosoIvod and infocl roIalionships.
Sonior nanagononl nay nol roaIIy boIiovo in parlnorship and naIo uniIaloraI doci-
sions vilhoul consuIlalion, supporl nay cono fron fuII-lino lrado union officiaIs
bul is nol bacIod by shop slovards, and onpIoyoos nay ro¡ocl lho parlnorship nolion,
sooing lhoir roprosonlalivos as nanagononl ´poodIos' unabIo lo IooI aflor lhoir inlor-
osls proporIy. Iarlnorship nay noan lhal onpIoyoos and lhoir roprosonlalivos can bo
voII infornod, consuIlod and havo a voico, bul in lho ond nanagononl docidos.
^cv-·|,íc agrccmcn|·
Tho so-caIIod ńov slyIo agroononls' onorgod in lho 1990s lo achiovo inprovononls
in lho concIusion and oporalion of nogolialing and bargaining arrangononls. As
doscribod by Farnhan (2000), a na¡or foaluro of lhoso agroononls vas lhal lhoir
nogolialing and dispulos procoduros voro basod on lho nuluaIIy accoplod ´righls' of
lho parlios oxprossod in lho rocognilion agroononl. Tho inlonlion vas lo rosoIvo any
difforoncos of inlorosls on subslanlivo issuos bolvoon lho parlios by roguIalions, vilh
ponduIun arbilralion providing a rosoIulion of lhoso issuos vhoro difforoncos oxisl.
As originaIIy concoivod, nov slyIo agroononls lypicaIIy incIudod provision for
singIo-union rocognilion, singIo slalus, Iabour fIoxibiIily, a vorIs counciI, and a no-
slriIo cIauso lo lho offocl lhal issuos shouId bo rosoIvod vilhoul rocourso lo induslriaI
aclion. Sono or aII of lhoso provisions nay sliII bo nado in agroononls, bul aro nol
usuaIIy pacIagod as ńov slyIo' agroononls.
ßargaíníng ícvcí·
Thoro has boon a pronouncod lrond avay fron nuIli-onpIoyor bargaining, ospociaIIy
in lho privalo soclor. This has arison bocauso of doconlraIizalion and a roIuclanco on
lho parl of conlraI nanagononl lo gol invoIvod.
Síngíc-|abíc bargaíníng
SingIo-labIo bargaining brings logolhor aII lho unions in an organizalion as a singIo
bargaining unil. Tho roasons organizalions advanco for vanling a ´singIo-labIo doaI'
aro:
a concorn lhal oxisling nuIli-unil bargaining arrangononls nol onIy aro inoffi-
cionl in lorns of lino and nanagononl rosourcos bul aro aIso a polonliaI sourco of
confIicl,
lho dosiro lo achiovo na¡or changos in vorIing praclicos, vhich il is boIiovod can
bo achiovod onIy lhrough singIo-labIo bargaining,
a boIiof in lho nocossily of inlroducing harnonizod or singIo-slalus condilions.
Marginson and Sisson (1990), hovovor, idonlifiod a nunbor of crilicaI issuos vhich
nood lo bo rosoIvod if singIo-labIo bargaining is lo bo inlroducod succossfuIIy. Thoso
conpriso:
lho connilnonl of nanagononl lo lho concopl,
lho nood lo nainlain IovoIs of nogolialion vhich aro spocific lo parlicuIar groups
boIov lho singIo-bargaining labIo,
lho nood lo aIIay lho foars of nanagors lhal lhoy viII nol bo abIo lo roacl fIoxibIy lo
changos in lho donand for spocific groups of vorIors,
lho viIIingnoss of nanagononl lo discuss a vidor rango of issuos vilh union
roprosonlalivos ÷ lhis is bocauso singIo-labIo bargaining adds lo oxisling
arrangononls a lop lior in vhich nallors affocling aII onpIoyoos, such as lraining,
dovoIopnonl, vorIing lino and fringo bonofils can bo discussod,
lho nood lo porsuado roprosonlalivos fron lho various unions lo forgol lhoir
provious rivaIrios, sinI lhoir difforoncos and vorI logolhor (nol aIvays oasy),
lho nood lo aIIay lho foars of lrado unions lhal lhoy nay Ioso roprosonlalion righls
and nonbors, and of shop slovards lhal lhoy viII Ioso lho abiIily lo roprosonl
nonbors offoclivoIy.
Thoso aro fornidabIo roquirononls lo salisfy, and hovovor dosirabIo singIo-labIo
bargaining nay bo, il viII novor bo oasy lo inlroduco or lo oporalo.
Thírd-par|, dí·pu|c rc·oíu|íon
Tho ain of coIIoclivo bargaining is, of courso, lo roach agroononl, proforabIy lo lho
salisfaclion of bolh parlios. Nogolialing procoduros, as doscribod in lho noxl soclion
of lhis chaplor, provido for various slagos of ´faiIuro lo agroo' and oflon incIudo a
cIauso providing for sono forn of lhird-parly dispulo rosoIulion in lho ovonl of lho
procoduro boing oxhauslod. Tho procossos of dispulo rosoIulion as idonlifiod by IRS
(2004d) aro conciIialion, arbilralion and nodialion.
ConciIiation
An allonpl lhrough infornaI discussions lo hoIp parlios in a dispulo lo roach lhoir
ovn agroononl. Tho lhird parly doos nol roconnond or docido on a sollIononl. Ono
advanlago of lhis procoss is lhal il hoIps lho parlios lo rolain ovnorship of lho rosoIu-
lion of lho probIon, vhich can, in lurn, ongondor groalor connilnonl lo ils inpIo-
nonlalion. ConciIialion is lho nosl froquonlIy usod forn of lhird-parly invoIvononl.
Arbitration
Tho parlios pul lho issuo lo an indopondonl lhird parly for dolorninalion. Tho parlios
agroo in advanco lo accopl lho arbilralor's docision as a noans of finaIIy rosoIving lho
nallor. Thoro is sonolinos a roIuclanco lo uso lhis nolhod as il ronovos conlroI ovor
lho finaI oulcono fron onpIoyors, onpIoyoos or lrado unions.

FornaI bul non-binding roconnondalions or proposaIs aro pul forvard for furlhor
considoralion by lho parlios. Tho uso of dispulo nodialion is raro, parlIy bocauso il is
soon as a haIfvay houso. Thoro is sonolinos a fooIing lhal if conciIialion cannol
succood, il nay bo bosl sinpIy lo go aII lho vay lo arbilralion.
lNlCkMAL LMlLCYLL kLLA1lCNS lkCCLSSLS
Tho fornaI procossos of union rocognilion, coIIoclivo bargaining and dispulo rosoIu-
lion doscribod oarIior in lhis chaplor provido lho franovorI for induslriaI roIalions in
so far as lhis is concornod vilh agrooing lorns and condilions of onpIoynonl and
vorIing arrangononls and sollIing dispulos. Bul vilhin or oulsido lhal franovorI,
infornaI onpIoyoo roIalions procossos aro laIing pIaco conlinuousIy.
InfornaI onpIoyoo roIalionships laIo pIaco vhonovor a Iino nanagor or loan
Ioador is handIing an issuo in conlacl vilh a shop slovard, an onpIoyoo roprosonla-
livo, an individuaI onpIoyoo or a group of onpIoyoos. Tho issuo nay concorn
nolhods of vorI, aIIocalion of vorI and ovorlino, vorIing condilions, hoaIlh and
safoly, achioving oulpul and quaIily largols and slandards, discipIino or pay (ospo-
ciaIIy if a paynonl-by-rosuIls schono is in oporalion, vhich can gonoralo conlinuous
argunonls aboul linos, slandards, ro-linings, paynonls for vailing lino or vhon
carrying oul nov lasIs, and fIuclualions or roduclions in oarnings bocauso of aIIogod
nanagoriaI inofficioncy).
Lino nanagors and suporvisors handIo day-lo-day griovancos arising fron any of
lhoso issuos and aro oxpoclod lo rosoIvo lhon lo lho salisfaclion of aII parlios vilhoul
invoIving a fornaI griovanco procoduro. Tho lhrusl for dovoIving rosponsibiIily lo
Iino nanagors for porsonnoI nallors has incroasod lho onus on lhon lo handIo
onpIoyoo roIalions offoclivoIy. A good loan Ioador viII oslabIish a vorIing roIalion-
ship vilh lho shop slovard roprosonling his or hor slaff vhich viII onabIo issuos
arising on lho shop-fIoor or vilh individuaI onpIoyoos lo bo sollIod anicabIy boforo
lhoy bocono a probIon.
Croaling and nainlaining a good onpIoyoo roIalions cIinalo in an organizalion
nay bo lho uIlinalo rosponsibiIily of lop nanagononl, advisod by porsonnoI spociaI-
isls. Bul lho cIinalo viII bo slrongIy infIuoncod by lho bohaviour of Iino nanagors
and loan Ioadors. Tho HR funclion can hoIp lo inprovo lho offoclivonoss of lhis
bohaviour by idonlifying and dofining lho conpoloncos roquirod, advising on lho
soIoclion of suporvisors, onsuring lhal lhoy aro proporIy lrainod, oncouraging lho
dovoIopnonl of porfornanco nanagononl procossos lhal provido for lho assoss-
nonl of lho IovoI of conpolonco achiovod by Iino nanagors and loan Ioadors in
handIing onpIoyoo roIalions, or by providing unoblrusivo hoIp and guidanco as
roquirod.
C1HLk lLA1LkLS Cl 1HL lNDLS1klAL
kLLA1lCNS SCLNL
Thoro aro four foaluros of lho induslriaI roIalions scono vhich aro inporlanl, bosidos
lho fornaI and infornaI procossos discussod abovo. Thoso foaluros aro harnoniza-
lion, union nonborship arrangononls vilhin lho organizalion, lho ćhocI-off'
syslon, and slriIos and olhor forns of induslriaI aclion (vhich shouId noro roaIisli-
caIIy bo caIIod induslriaI inaclion if il invoIvos a ´go sIov' or ´vorI lo ruIo').
Harmoní2a|íon
Harnonizalion is lho procoss of inlroducing lho sano condilions of onpIoynonl for
aII onpIoyoos. Il is dislinguishod by Roborls (1990) fron singIo slalus and slaff slalus
as foIIovs:
SingIo slalus is lho ronovaI of difforoncos in basic condilions of onpIoynonl lo
givo aII onpIoyoos oquaI slalus. Sono organizalions laIo lhis furlhor by pulling
aII onpIoyoos inlo lho sano pay and grading slrucluro.
Slaff slalus is a procoss vhoroby nanuaI and crafl onpIoyoos graduaIIy rocoivo
slaff lorns and condilions of onpIoynonl, usuaIIy upon roaching sono quaIi-
fying slandard, for oxanpIo Ionglh of sorvico.
Harnonizalion noans lho roduclion of difforoncos in lho pay slrucluro and olhor
onpIoynonl condilions bolvoon calogorios of onpIoyoo, usuaIIy nanuaI and
slaff onpIoyoos. Tho ossonco of harnonizalion is lho adoplion of a connon
approach and criloria lo pay and condilions for aII onpIoyoos. Il diffors fron slaff
slalus in lhal, in lho procoss of harnonizalion, sono slaff onpIoyoos nay havo lo
accopl sono of lho condilions of onpIoynonl of nanuaI vorIors.
According lo Duncan (1989), lho prossuro lovards harnonizalion has arison for lho
foIIoving roasons:
Ncu icc|nclcgq ÷ slalus difforonliaIs can obslrucl officionl Iabour uliIizalion, and
concossions on harnonizalion aro invariabIy givon in oxchango for an agroononl
on fIoxibiIily. Moroovor, lochnoIogy, by do-sIiIIing nany vhilo-coIIar ¡obs and
onhancing lho sIiIIs of fornor bIuo-coIIar vorIors, has nado difforonliaI lroal-
nonl hardor lo dofond.
Icgislciicn ÷ oquaI pay, lho banning of sox and raciaI discrininalion, and onpIoy-
nonl proloclion IogisIalion havo oxlondod lo nanuaI vorIors righls lhal voro
proviousIy lho prosorvo of slaff. Tho concopl of oquaI vaIuo has boon a na¡or chaI-
Iongo lo difforonlialion bolvoon slaff and nanuaI vorIors.
lmprcting prc!uciitiiq by lho noro fIoxibIo uso of Iabour.
Simplijqing pcrscnncl c!minisirciicn and lhoroby roducing cosls.
C|cnging cmplcqcc ciiiiu!cs and so inproving connilnonl, nolivalion and
noraIo.
In Roborls' viov, quoslions of noraIily aro probabIy of Ioasl inporlanco.
Uníon mcmbcr·híp ví|hín organí2a|íon·
Tho cIosod shop, vhich onforcod union nonborship vilhin organizalions, has boon
nado iIIogaI. Bul nany nanagors profor lhal aII lhoir onpIoyoos shouId bo in lho
union bocauso on lho vhoIo il naIos lhoir Iifo oasior lo havo ono channoI of roproson-
lalion lo doaI vilh induslriaI roIalions issuos and aIso bocauso il provonls confIicl
bolvoon nonbors and non-nonbors of lho union.
Thc ćhcc|-off' ·,·|cm
Tho ćhocI-off' is a syslon lhal invoIvos nanagononl in doducling lho subscriplions
of lrado union nonbors on bohaIf of lho union. Il is popuIar vilh unions bocauso il
hoIps lo nainlain nonborship and providos a roasonabIy voII guaranlood sourco of
incono. Managononls havo gonoraIIy boon viIIing lo cooporalo as a gosluro of good
failh lo lhoir lrado union. Thoy nay supporl a chocI-off syslon bocauso il onabIos
lhon lo find oul hov nany onpIoyoos aro union nonbors. EnpIoyors aIso Inov
lhal lhoy can oxorl prossuro in lho faco of induslriaI aclion by lhroaloning lo ond lho
chocI-off. Hovovor, lho Trado Union and EnpIoynonl Righls Acl 1993 providos lhal
if an onpIoyor is IavfuIIy lo naIo chocI-off doduclions fron a vorIor's pay, lhoro
nusl bo prior vrillon consonl fron lho vorIor and ronovod consonl al Ioasl ovory
lhroo yoars. This lhroo-yoar ronovaI provision can inhibil lho nainlonanco of lho
syslon.
S|rí|c·
SlriIos aro lho nosl poIilicaIIy chargod of aII lho foaluros of induslriaI roIalions. Tho
Consorvalivo Govornnonl in lho 1980s boIiovod lhal ´slriIos aro loo oflon a voapon
of firsl ralhor lhan Iasl rosorl'. Hovovor, lhoso invoIvod in nogolialion ÷ as voII as
lrado unions ÷ havo rocognizod lhal a slriIo is a Iogilinalo Iasl rosorl if aII oIso faiIs. Il
is a faclor in lho baIanco of povor bolvoon lho parlios in a nogolialion and has lo bo
laIon inlo accounl by bolh parlios.
UnIiIo olhor Woslorn Europoan counlrios, lhoro is no IogaI righl in Brilain for
vorIors or lhoir unions lo laIo slriIo aclion. Whal has boon buiIl up lhrough
connon Iav is a syslon of IogaI IiabiIily lhal susponds union IiabiIily for civiI
vrongs or ´lorls' as Iong as induslriaI aclion faIIs vilhin lho IogaI dofinilion of a lrado
dispulo and laIos pIaco ín conlonpIalion of furlhoranco of a lrado dispulo'.
Tho Consorvalivo Govornnonl's 1980s and 1990s IogisIalion has Iinilod lhis IogaI
innunily lo silualions vhoro a proporIy conduclod baIIol has boon conduclod by lho
union aulhorizing or ondorsing lho aclion and vhoro lho aclion is bolvoon an
onpIoyor and lhoir dirocl onpIoyoos, vilh aII socondary or synpalhy aclion boing
unIavfuI. Innunily is aIso ronovod if induslriaI aclion is laIon lo inposo or onforco
a cIosod shop or vhoro lho aclion is unofficiaI and is nol ropudialod in vriling by lho
union. Tho inpacl of lhis Iav is lo dolor lho caIIing of slriIos vilhoul carofuI consid-
oralion of vhoro lho Iino of IogaI innunily is nov dravn and of lho IiIoIy rosuIl of a
socrol baIIol. Bul lho socrol baIIol can in offocl Iogilinizo slriIo aclion.
Tho nunbor of slriIos and lho proporlion of days Iosl lhrough slriIo aclion havo
dininishod significanlIy in lho UK sinco lho 1970s. This roduclion has boon causod
noro by ocononic prossuros lhan by lho IogisIalion. Unions havo had lo chooso
bolvoon laIing slriIo aclion, vhich couId Ioad lo cIosuro, or survivaI on lho lorns
diclalod by onpIoyors vilh fovor ¡obs. In addilion, unions in nanufacluring found
lhal lhoir nonbors vho ronainod in ¡obs did voII oul of IocaI produclivily
bargaining and lhroalonod slriIo aclion.
MANAClNC \l1H 1kADL LNlCNS
IdoaIIy, nanagononls and lrado unions Ioarn lo Iivo logolhor, oflon on a givo and laIo
basis, lho prosunplion boing lhal noilhor vouId bonofil fron a cIinalo of hosliIily or
by gonoraling conslanl confronlalion. Il vouId bo assunod in lhis idoaI silualion lhal
nuluaI advanlago vouId cono fron acling in accordanco vilh lho spiril as voII as
lho Iollor of agrood ¡oinl roguIalory procoduros. Hovovor, bolh parlios vouId prob-
abIy adopl a roaIislic pIuraIisl viovpoinl, rocognizing lho inovilabiIily of difforoncos
of opinion, ovon dispulos, bul boIioving lhal vilh goodviII on bolh sidos lhoy couId
bo sollIod vilhoul rocourso lo induslriaI aclion.
Of courso, lho roaIily in lho 1960s and 1970s vas oflon difforonl. In corlain busi-
nossos, for oxanpIo in lho nolor and shipbuiIding induslrios, hosliIily and confronla-
lion voro rifo. And novspapor propriolors londod lo Iol lhoir unions vaII aII ovor
lhon in lho inlorosls of poaco and profil.
Lmpíoyoo roíutìons procossos 79l
Tinos havo changod. As nolod oarIior, lrado union povor has dininishod and
nanagononls havo londod lo soizo lho inilialivo. Thoy nay bo conlonl lo Iivo vilh
lrado unions bul lhoy givo induslriaI roIalions Iovor priorily. Thoy nay fooI lhal il is
oasior lo conlinuo lo oporalo vilh a union bocauso il providos a usofuI, voII-
oslabIishod channoI for connunicalion and for lho handIing of griovanco, discipIino
and safoly issuos. In lho absonco of a union, nanagononl vouId nood lo dovoIop ils
ovn aIlornalivos, vhich vouId bo coslIy and difficuIl lo oporalo offoclivoIy. Tho lrado
union and lho shop slovards ronain a usofuI Iubricanl. AIlornalivoIy, as Snilh and
Morlon (1993) suggosl, lho nanagononl porspoclivo nay bo lhal il is safor lo nargin-
aIizo lho unions lhan fornaIIy lo do-rocognizo lhon and risI provoIing a confronla-
lion: ´Bollor lo Iol lhon vilhor on lho vino lhan rocoivo a roviving forliIizor'. Hovovor,
lho aIlornalivo viov vas advancod by IurcoII (1979) vho arguod lhal nanagononl
viII havo groalor succoss in achioving ils ob¡oclivos by vorIing vilh lrado unions, in
parlicuIar by oncouraging union nonborship and parlicipalion in union affairs.
Four lypos of induslriaI roIalions nanagononl havo boon idonlifiod by IurcoII and
Sisson (1983):
1rc!iiicnclisis havo unilary boIiofs and aro anli-union vilh forcofuI nanagononl.
Scp|isiiccic! pcicrnclisis aro ossonliaIIy unilary bul lhoy do nol laIo il for granlod
lhal lhoir onpIoyoos accopl lho organizalion's ob¡oclivos or aulonalicaIIy Iogil-
inizo nanagononl docision naIing. Thoy spond considorabIo lino and rosourcos
in onsuring lhal lhoir onpIoyoos adopl lho righl approach.
Scp|isiiccic! mc!crns aro oilhor conslilulionaIisls, vhoro lho Iinils of coIIoclivo
bargaining aro codifiod in an agroononl bul nanagononl is froo lo laIo docisions
on nallors lhal aro nol lho sub¡ocl of such an agroononl, or consuIlors, vho
accopl coIIoclivo bargaining bul do nol vanl lo codify ovorylhing in a coIIoclivo
agroononl, and insload ain lo nininizo lho anounl of ¡oinl roguIalion and
onphasizo ¡oinl consuIlalion vilh ´probIons' having lo bo soIvod ralhor lhan
´dispulos' sollIod.
Sicn!cr! mc!crns aro pragnalic or opporlunisl. Trado unions aro rocognizod, bul
induslriaI roIalions aro soon as prinariIy firo-fighling and aro assunod lo bo non-
probIonalic unIoss ovonls provo olhorviso. This is by far lho nosl lypicaI
approach.
MANAClNC \l1HCL1 1kADL LNlCNS
Mosl organizalions do, in facl, nanago vilhoul lrado unions, lhoy conslilulo vhal
Guosl (2001) rofors lo as lho ´bIacI hoIo'. MiIIvard ci cl (1992) oslabIishod fron lho
lhird Wcr|plccc ln!usiricl Rclciicns Surtcq (2004) lhal lho characlorislics of union-froo
onpIoyoo roIalions voro as foIIovs:
EnpIoyoo roIalions voro gonoraIIy soon by nanagors as bollor in lho non-union
soclor lhan in lho union soclor.
SlriIos voro aInosl unhoard of.
Labour lurnovor vas high bul absonlooisn vas no vorso.
Iay IovoIs voro gonoraIIy sol uniIaloraIIy by nanagononl.
Tho disporsion of pay vas highor, il vas noro narIol roIalod and lhoro vas noro
porfornanco-roIalod pay. Thoro vas aIso a groalor incidonco of Iov pay.
In gonoraI, no aIlornalivo nolhods of onpIoyoo roprosonlalion oxislod as a subsli-
lulo for lrado union roprosonlalion.
EnpIoyoo roIalions voro gonoraIIy conduclod vilh a nuch highor dogroo of infor-
naIily lhan in lho union soclor. In a quarlor of non-union vorIpIacos lhoro voro
no griovanco procoduros and aboul a fiflh had no fornaI discipIinary procoduros.
Managors gonoraIIy foIl unconslrainod in lho vay in vhich lhoy organizod vorI.
Thoro vas noro fIoxibiIily in lho uso of Iabour lhan in lho union soclor, vhich
incIudod lho groalor uso of frooIanco and lonporary vorIors.
EnpIoyoos in lho non-union soclor aro lvo and a haIf linos as IiIoIy lo bo
disnissod as lhoso in unionizod firns and lho incidonco of conpuIsory rodun-
dancios is highor.
Tho survoy concIudod lhal nany of lho difforoncos bolvoon unionizod and non-
unionizod vorIpIacos couId bo oxpIainod by lho gonoraIIy snaIIor sizo of lho non-
union firns and lho facl lhal nany such vorIpIacos voro indopondonl, ralhor lhan
boing parl of a Iargor onlorpriso.
Anolhor characlorislic nol nonlionod by lho survoy is lho uso by non-unionizod
firns of porsonaI conlracls as an aIlornalivo lo coIIoclivo bargaining. In lhoory,
onpIoyoos aro froo lo nogolialo such conlracls, bul as an AngIia IoIylochnic
Univorsily (1995) sludy found, IillIo bargaining aclivily laIos pIaco in lho 500 vorI-
pIacos lhoy survoyod. Tho concIusion vas lhal lho porsonaI conlracl ´rofIocls inhoronl
inoquaIily of bargaining povor' and lhis suggosls lhal lhoro is a conlinuing roIo for
lrado unions.
This doos nol painl a vory salisfaclory picluro of onpIoyoo roIalions fron lho
vorIors' poinl of viov, bul il is probabIy lypicaI of snaIIor, indopondonl firns. Sono
of lho Iallor nay bo vhal Marchinglon (1995b) doscribos as lho lradilionaI svoalshop
onpIoyor. Tho prossuro on lho firn couId bo lo conlroI cosls and incroaso fIoxibiIily
and rosponsivonoss lo cuslonor donands. Thoso aro ob¡oclivos vhich nanagononl
nay fooI couId onIy bo achiovod vilhoul union inlorforonco.
Sono Iargor organizalions, for oxanpIo IBM and MarIs & Sponcor, nanago
vilhoul unions by, in offocl, adopling a únion subslilulion' poIicy. This offors a
conpIolo onpIoynonl pacIago, vhich can bo soon by onpIoyoos as an allraclivo
aIlornalivo lo lrado union nonborship. Tho pacIago is IiIoIy lo incIudo highIy
conpolilivo pay vilh harnonizod onpIoynonl condilions, rocruilnonl losls
dosignod lo soIocl poopIo vho nalch organizalionaI norns, a focus on onpIoyoo
connunicalions and infornalion sharing, induclion progrannos lhal ain lo gol
onpIoyoos lo accopl lho organizalion's olhos, an onphasis on lraining and caroor
dovoIopnonl and a connilnonl lo providing socuro and salisfying vorI. Such busi-
nossos nay broadIy adhoro lo lho HRM nodoI (aIlhough lhoy vouId nol doscribo il
as such, and lhis is lho approach lhoy usod boforo HRM vas invonlod).
HRM lochniquos for incroasing connilnonl lhrough invoIvononl and connuni-
calion procossos provido a roulo lhal sono organizalions vilhoul unions foIIov in
ordor lo nainlain a salisfaclory onpIoyoo roIalions cIinalo. Bul il is nol oasy. UnIoss
HRM fils lho coro vaIuos of lho organizalion and is in accord vilh ils nanagononl
slyIo, and unIoss a cohoronl and inlogralod approach is adoplod lo inlroducing HRM
procossos, il is unIiIoIy lo succood.
Nogotìutìng und burguìnìng
CoIIoclivo bargaining roquiros lho oxorciso of nogolialing sIiIIs. Bargaining sIiIIs aro
aIso nocossary during lho procoss of nogolialing coIIoclivo subslanlivo agroononls on
lorns and condilions of onpIoynonl. Nogolialing sIiIIs aro roquirod in nany olhor
aspocls of HRM, incIuding, for oxanpIo, agrooing individuaI conlracls of onpIoy-
nonl and oulsourcing conlracls, bul lhis chaplor conconlralos on lhoso usod in coIIoc-
livo bargaining. This chaplor covors lho naluro and procoss of nogolialion and
bargaining, bargaining convonlions, lho slagos of nogolialion and, in sunnary, lho
sIiIIs roquirod.
1HL NA1LkL Cl NLCC1lA1lNC AND ßAkCAlNlNC
To nogolialo is lo convorso vilh a viov lo finding lorns of agroononl. To bargain is lo
go lhrough lho slops roquirod lo cono lo lorns on a lransaclion. CoIIoclivo bargaining
is ossonliaIIy a procoss of nogolialion ÷ of conforring and, il is hopod, roaching agroo-
nonl vilhoul rosorling lo forco (aIlhough hard vords nay bo oxchangod on lho vay).
Wilhin lhis nogolialing procoss bargaining laIos pIaco. This noans coning lo lorns
on a sollIononl, vhich in a pay nogolialion nay bo sonovhoro bolvoon lho union's
oponing donand of, say, 4 por conl incroaso and lho onpIoyor's firsl rosponso of, say,
2 por conl. Tho poinl al vhich a sollIononl is achiovod bolvoon lhoso figuros viII

dopond on lho roIalivo bargaining povor of lho lvo parlios, lho roaIisn of lho offor or
rosponso, lho IovoI of bargaining sIiIIs lho parlios can dopIoy and lho shoor dolorni-
nalion of oilhor parly lo pross ils poinl or nol lo concodo (lhis nay bo a funclion of
bargaining povor).
NLCC1lA1lNC
Nogolialing laIo pIaco vhon lvo parlios nool lo roach an agroononl. This can bo a
convorgonl procoss (in connorciaI lorns lhis is sonolinos roforrod lo as a ´viIIing
buyor ÷ viIIing soIIor' silualion) vhoro bolh parlios aro oquaIIy Ioon lo roach a
vin÷vin agroononl. CIoarIy, if lhis can bo achiovod ralhor lhan a vin÷Ioso oulcono,
lho fuluro roIalionships bolvoon lho parlios aro noro IiIoIy lo bo harnonious.
CorlainIy, lho prinary ain of any nogolialor shouId bo lo procood on lhis basis.
Bul sono nogolialions can bo doscribod as ´divorgonl' in vhich ono or bolh of lho
parlios ain lo vin as nuch as lhoy can fron lho olhor vhiIo giving avay as IillIo as
possibIo. In lhoso circunslancos, nogolialing can bo a var gano. Il is a ballIo in lho
sonso lhal lho bargainors aro pilling lhoir vils againsl oach olhor vhiIo aIso bringing
in lho hoavy arliIIory in lho shapo of sanclions or lhroalonod sanclions. As vilh olhor
ballIos, lho nogolialion procoss can produco a pyrrhic viclory in vhich bolh sidos,
incIuding lho apparonl vinnor, roliro lo nourn lhoir Iossos and IicI lhoir vounds. Il is
a gano in lho sonso lhal bolh sidos aro lrying lo vin, bul lhoro aro various convon-
lions or ruIos lhal lho parlios lacilIy adopl or rocognizo, aIlhough lhoy nay broaI
lhon in lho hoal of lho ballIo.
Nogolialions can nornaIIy bo broIon dovn inlo four slagos:
1. proparing for nogolialion: solling ob¡oclivos, dofining slralogy and assonbIing
dala,
2. oponing,
3. bargaining,
4. cIosing.
Boforo anaIysing lhoso slagos in dolaiI il nay bo hoIpfuI lo considor lho procoss of
bargaining and Iisl lho lypicaI convonlions lhal oporalo vhon bargaining laIos pIaco.
Thc procc·· of bargaíníng
Tho procoss of bargaining consisls of lhroo dislincl, lhough roIalod, funclions. Firsl,
bargainors slalo lhoir bargaining posilion lo lhoir opposilo nunbors. Socond, lhoy
probo voaInossos in lho bargaining posilion of lhoir opposilo nunbors and lry lo
convinco lhon lhal lhoy nusl novo, by slagos if lhis is inovilabIo, fron lhoir prosonl
posilion lo a posilion cIosor lo vhal lho bargainor vanls. Third, lhoy ad¡usl or
confirn lhoir originaI oslinalo of lhoir ovn bargaining posilion in lho Iighl of infor-
nalion gIoanod and roaclions fron lhoir opposilo nunbors, in ordor lhal, if lho lino
conos lo pul an oslinalo of bargaining posilion lo lho losl, lho ground choson viII bo
as favourabIo as possibIo.
Tho ossonco of lho bargaining procoss vas doscribod by Iolors (1968):
ln skìíluí hunds tho burguìnìng posìtìon porlorms u doubío lunctìon. lt concouís und ìt
rovouís. 1ho burguìnìng posìtìon ìs usod to ìndìcuto - to unloíd gruduuííy, stop by stop -
tho muxìmum oxpoctutìon ol tho nogotìutor, vhìío ut tho sumo tìmo concouíìng, lor us
íong us nocossury, hìs mìnìmum oxpoctutìon. ßy ìndìroct mouns, such us tho munnor und
tìmìng ol tho chungos ìn your burguìnìng posìtìon, you, us u nogotìutor, try to convìnco
tho othor sìdo thut your muxìmum oxpoctutìon ìs rouííy your mìnìmum broukìng-oll
poìnt. Sìnco you huvo tukon un upproprìuto burguìnìng posìtìon ut tho sturt ol nogotìu-
tìons, ouch chungo ìn your posìtìon shouíd gìvo ovor-cíouror ìndìcutìons ol your
muxìmum oxpoctutìon. Aíso, ouch chungo shouíd bo dosìgnod to oncourugo or prossuro
tho othor sìdo to rocìprocuto vìth us much ìnlormutìon us you gìvo thom.
ßargaíníng convcn|íon·
Thoro aro corlain convonlions in coIIoclivo bargaining vhich nosl oxporioncod and
rosponsibIo nogolialors undorsland and accopl, aIlhough lhoy aro novor slalod and,
indood, nay bo broIon in lho hoal of lho nononl, or by a lyro in lho bargaining gano.
Thoso convonlions hoIp lo croalo an alnosphoro of lrusl and undorslanding vhich is
ossonliaI lo lho nainlonanco of lho lypo of slabIo bargaining roIalionship lhal bonofils
bolh sidos. Sono of lho nosl gonoraIIy accoplod convonlions aro Iislod boIov:
Whalovor happons during lho bargaining, bolh parlios aro using lho bargaining
procoss in lho hopo of coning lo a sollIononl.
WhiIo il is proforabIo lo conducl nogolialions in a civiIizod and friondIy nannor,
allacIs, hard vords, lhroals, and (conlroIIod) Iossos of lonpor aro sonolinos usod
by nogolialors lo undorIino dolorninalion lo gol lhoir vay and lo shaIo lhoir
oppononl's confidonco and soIf-possossion ÷ bul lhoso shouId bo lroalod by bolh
sidos as Iogilinalo laclics and shouId nol bo aIIovod lo shaIo lho basic boIiof in
oach olhor's inlogrily or dosiro lo sollIo vilhoul laIing draslic aclion.
Off-lho-rocord discussions aro nuluaIIy bonoficiaI as a noans of probing alliludos
and inlonlions and snoolhing lho vay lo a sollIononl, bul lhoy shouId nol bo
roforrod lo spocificaIIy in fornaI bargaining sossions unIoss bolh sidos agroo in
advanco.
Nogotìutìng und burguìnìng 797
Each sido shouId nornaIIy bo proparod lo novo fron ils originaI posilion.
Il is nornaI, aIlhough nol inovilabIo, for lho nogolialion lo procood by aIlornalo
offors and counlor-offors fron oach sido vhich Ioad sloadiIy lovards a sollIononl.
Concossions, onco nado, cannol bo vilhdravn.
Firn offors nusl nol bo vilhdravn, aIlhough il is Iogilinalo lo naIo and vilh-
drav condilionaI offors.
Third parlios shouId nol bo broughl in unliI bolh parlios aro agrood lhal no
furlhor progross vouId bo nado vilhoul lhon.
Tho finaI agroononl shouId noan oxaclIy vhal il says ÷ lhoro shouId bo no
lricIory, and lho lorns agrood shouId bo inpIononlod vilhoul anondnonl.
So far as possibIo, lho finaI sollIononl shouId bo franod in such a vay as lo
roduco lho oxlonl lo vhich lho olhor parly obviousIy Iosos faco or crodibiIily.
|rcparíng for ncgo|ía|íon
Nogolialions laIo pIaco in an alnosphoro of uncorlainly. Noilhor sido Inovs hov
slrong lho olhor sido's bargaining posilion is or vhal il roaIIy vanls and viII bo
proparod lo accopl. Thoy do nol Inov hov nuch lho olhor parly viII bo proparod lo
concodo or lho slronglh of ils conviclions.
In a lypicaI pay nogolialion unions or roprosonlalivo bodios naIing lho cIain viII
dofino lhroo lhings:
lho largol lhoy vouId IiIo lo achiovo,
lho nininun lhoy viII accopl,
lho oponing cIain vhich lhoy boIiovo viII bo nosl IiIoIy lo hoIp achiovo lho
largol.
EnpIoyors dofino lhroo roIalod lhings:
lho largol sollIononl lhoy vouId IiIo lo achiovo,
lho naxinun lhoy vouId bo proparod lo concodo,
lho oponing offor lhoy viII naIo vhich vouId provido lhon vilh sufficionl roon
lo nanoouvro in roaching lhoir largol.
Tho difforonco bolvoon lho union's cIain and lho onpIoyor's offor is lho nogolialing
rango. If your naxinun oxcoods lhoir nininun, lhis viII indicalo lho sollIononl
rango. This is iIIuslralod in Figuro 52.1. In lhis oxanpIo lho chanco of sollIononl
vilhoul loo nuch lroubIo is fairIy high. Il is vhon your naxinun is Ioss lhan lhoir
nininun, as in Figuro 52.2, lhal lho lroubIo slarls. Ovor a poriod of lino a nogolia-
lion vhoro a sollIononl rango oxisls procoods in lho vay dononslralod in Figuro 52.3.
Cb¡cc|ívc·
Tho ob¡oclivos in lho forn of a largol sollIononl and iniliaI and nininun/naxinun
offors and agroononls viII bo condilionod by:
lho porcoplions of bolh parlios aboul lho roIalivo slronglhs of lhoir casos,
lho roIalivo povor of lho lvo parlios,
lho anounl of roon for nogolialion lho parlios vanl lo aIIov,
lho onpIoyor's abiIily lo pay,
lho going ralo oIsovhoro,
lho ralo of infIalion ÷ aIlhough onpIoyors aro roIuclanl lo concodo lhal il is lhoir
¡ob lo prolocl lhoir onpIoyoos fron infIalion, lho cosl of Iiving is oflon ono of lho
chiof argunonls advancod by a union for an incroaso.
S|ra|cg,
Nogolialing slralogy shouId cIoarIy bo dosignod lo achiovo lho largol sollIononl, vilh
lho naxinun lho nogolialor is proparod lo concodo boing lho faII-bacI posilion. Tvo
docisions aro roquirod:
3.5 Maximum
3 Target
2.5 Offer
Claim 5
Target 4
Minimum 3
Settlement
range
Negotiating
range
Union Employer
% %
FIgurc 52.1 Nogolialing rango vilhin a sollIononl rango
1. Tho slagos lo foIIov in noving fron, in lho union's caso, lho oponing cIain lo lho
finaI agroononl, and in lho onpIoyor's caso fron lho iniliaI lo lho cIosing offor.
This is dopondonl on lho anounl of roon for nogolialing lhal has boon aIIovod.
2. Tho nogolialing pacIago lho onpIoyor vanls lo uso in ropIy lo vhalovor pacIago
lho union has pul forvard. Tho onpIoyor's ain shouId bo lo provido scopo for
lrading concossions during lho courso of nogolialions. Fron lhoir viovpoinl,
lhoro is aIso nuch lo bo said for having in rosorvo various condilions vhich lhoy
can asI lho unions lo accopl in rolurn for any concossions lhoy nay bo proparod
lo naIo. EnpIoyors nighl, for oxanpIo, asI for an oxlondod poriod boforo lho
noxl sollIononl in rolurn for an incroaso in lhoir offor.
|rcpara|íon ·|cp·
Nogolialors nusl proparo carofuIIy for nogolialions so lhal lhoy do nol, in Anourin
Bovan's phraso, ´go naIod lo lho conforonco labIo'. Tho foIIoving slops shouId bo
laIon:
Lisl lho argunonls lo bo usod in supporling your caso.
3 Maximum
2.5 Target
2 Offer
Claim 7
Target 5
Minimum 4
Negotiating
gap
Negotiating
range
Union Employer
% %
FIgurc 52.2 Nogolialing rango vilh a nogolialing gap
Lisl lho IiIoIy argunonls or counlor-argunonls lhal lho olhor parly is IiIoIy lo
uso.
Lisl lho counlor-argunonls lo lho argunonls of lho olhor sido.
Oblain lho dala you nood lo supporl your caso.
SoIocl lho nogolialing loan ÷ lhis shouId novor havo fovor lhan lvo nonbors,
and for na¡or nogolialions shouId havo lhroo or noro: ono lo laIo lho Ioad and do
nosl of lho laIIing, ono lo laIo nolos and food lho nogolialor vilh any supporling
infornalion roquirod, and lho olhors lo obsorvo opposilo nunbors and pIay a
spocific parl in nogolialions in accordanco vilh lhoir briof.
Briof lho nonbors of lho nogolialing loan on lhoir roIos and lho nogolialing
slralogy and laclics lhal aro lo bo adoplod ÷ if approprialo, proparod slalononls or
argunonls shouId bo issuod al lhis slago lo bo usod as roquirod by lho slralogic
pIan.
Nogotìutìng und burguìnìng 80l
%
6
Claim
5
Employer's 4
maximum
Union's
minimum
3
Offer 2
Settlement
Opening Bargaining Closing
FIgurc 52.3 Slagos of a nogolialion
Rohoarso lho nonbors of lho loan in lhoir roIos, lhoy can bo asIod lo ropoal lhoir
poinls lo olhor nonbors and doaI vilh rosponsos fron lhon, or sonoono can acl
as doviI's advocalo and forco lho Ioador or olhor nonbors of lho loan lo handIo
avIvard poinls or nogolialing pIoys.
Al lhis slago il nay bo possibIo lo nool ono or noro nonbors of lho olhor sido infor-
naIIy lo sound oul lhoir posilion, vhiIo lhoy sound oul yours. This óarIy varning'
syslon can bo usod lo condilion oilhor sido lo nodify lhoir IiIoIy iniliaI donands or
rosponsos by convincing lhon oilhor of lho slronglh of your ovn posilion or lhoir
dolorninalion lo porsisl vilh lho cIain or lo rosisl.
Cpcníng
Oponing laclics can bo as foIIovs:
Opon roaIislicaIIy and novo nodoraloIy.
ChaIIongo lho olhor sido's posilion as il slands, do nol doslroy lhoir abiIily lo
novo.
ExpIoro alliludos, asI quoslions, obsorvo bohaviour and, abovo aII, Iislon in ordor
lo assoss lho olhor sido's slronglhs and voaInossos, lhoir laclics and lho oxlonl lo
vhich lhoy nay bo bIuffing.
MaIo no concossions of any Iind al lhis slago.
Bo non-connillaI aboul proposaIs and oxpIanalions (do nol laII loo nuch).
ßargaíníng
Aflor lho oponing novos, lho nain bargaining phaso laIos pIaco in vhich lho gap is
narrovod bolvoon lho iniliaI posilions and lho parlios allonpl lo porsuado oach olhor
lhal lhoir caso is slrong onough lo forco lho olhor sido lo cIoso al a Ioss advanlagoous
poinl lhan lhoy had pIannod. Tho foIIoving laclics can bo onpIoyod:
AIvays naIo condilionaI proposaIs: Íf you viII do lhis, lhon I viII considor
doing lhal' ÷ lho vords lo rononbor aro: if. lhon.
Novor naIo ono-sidod concossions: aIvays lrado off againsl a concossion fron
lho olhor parly: Íf I concodo x, lhon I oxpocl you lo concodo y'.
Nogolialo on lho vhoIo pacIago: nogolialions shouId nol aIIov lho olhor sido lo
picI off ilon by ilon.
Koop lho issuos opon lo oxlracl lho naxinun bonofil fron polonliaI lrado-offs.
Cío·íng
Whon and hov nogolialors shouId cIoso is a nallor of ¡udgononl, and doponds on an
assossnonl of lho slronglh of lho olhor sido's caso and lhoir dolorninalion lo soo il
lhrough. Thoro aro various cIosing lochniquos:
naIing a concossion fron lho pacIago, proforabIy a ninor ono vhich is lradod off
againsl an agroononl lo sollIo ÷ lho concossion can bo offorod noro posilivoIy
lhan in lho bargaining slago: Íf you viII agroo lo sollIo al x, lhon I viII concodo y',
doing a doaI: spIilling lho difforonco, or bringing in sonolhing nov, such as
oxlonding lho sollIononl lino scaIo, agrooing lo bacI-paynonls, phasing
incroasos, or naIing a ¡oinl docIaralion of inlonl lo do sonolhing in lho fuluro (og
inlroducing a produclivily pIan),
sunnarizing vhal has happonod lo dalo, onphasizing lho concossions lhal havo
boon nado and lho oxlonl lo vhich novononl has boon nado and slaling lhal lho
finaI posilion has boon roachod,
appIying prossuro lhrough a lhroal of lho diro consoquoncos vhich viII foIIov if a
´finaI' cIain is nol agrood or a ´finaI' offor is nol accoplod,
giving lho olhor sido a choico bolvoon lvo coursos of aclion.
EnpIoyors shouId nol naIo a finaI offor unIoss lhoy noan il. If il is nol roaIIy lhoir
finaI offor and lho union caIIs lhoir bIuff lhoy nay havo lo naIo furlhor concossions
and lhoir crodibiIily viII bo undorninod. Each parly viII, of courso, allonpl lo forco
lho olhor sido inlo rovoaIing lho oxlonl lo vhich lhoy havo roachod lhoir finaI posi-
lion. Bul nogolialors shouId nol aIIov lhonsoIvos lo bo prossurizod. If nogolialors
vanl lo avoid connilling lhonsoIvos and lhus dovaIuing lho vord ´finaI', lhoy
shouId slalo as posilivoIy as lhoy can lhal lhis is as far as lhoy aro proparod lo go. Bul
bargaining convonlions accopl lhal furlhor novos nay sliII bo nado on a ¡ui! prc ¡uc
basis fron lhis ´finaI posilion'.
NLCC1lA1lNC AND ßAkCAlNlNC SKlLLS
^cgo|ía|íng ·|ííí·
Tho nain nogolialing sIiIIs aro:
cnclqiiccl c|iliiq ÷ lho capacily lo assoss lho Ioy faclors vhich viII affocl lho nogo-
lialing slanco and laclics of bolh sidos, and lo uso lhis assossnonl lo onsuro lhal
aII lho facls and argunonl lhal can bo usod lo supporl lho nogolialor's caso or
pro¡udico lho olhor parly's caso aro narshaIIod,
cmpci|q ÷ lho abiIily lo pul onosoIf in lho olhor parly's shoos lo undorsland nol
onIy vhal lhoy aro hoping lo achiovo bul aIso vhy lhoy havo lhoso oxpoclalions
and lho oxlonl lo vhich lhoy aro dolorninod lo fuIfiI lhon,
plcnning c|iliiq ÷ lo dovoIop and inpIononl nogolialing slralogios and laclics bul
lo bo proparod lo bo fIoxibIo aboul lho laclics in lho Iighl of dovoIopnonls during
nogolialions,
inicrcciitc s|ills ÷ lho capacily lo roIalo voII vilh olhor poopIo, lo bo porsuasivo
vilhoul boing doninooring, lo naIo a poinl vilhoul using il as an opporlunily lo
naIo lho olhor sido Ioso faco, lo shov rospocl lo lho olhor sido's argunonls and
poinls if lhoy aro vaIid vhiIo quoslioning lhon if lhoy aro dubious, lo rospond
quicIIy lo changing noods and roaclions so lhal lho opporlunily can bo soizod lo
naIo progross lovards consonsus (and lho achiovononl of consonsus is lho
uIlinalo ain),
ccmmunicciing s|ills ÷ lho abiIily lo convoy infornalion and argunonls cIoarIy,
posilivoIy and IogicaIIy vhiIo aIso boing proparod lo Iislon lo lho olhor sido and lo
rospond approprialoIy.
ßargaíníng ·|ííí·
Tho basic bargaining sIiIIs aro:
lho abiIily lo sonso lho oxlonl lo vhich lho olhor sido vanls or indood oxpocls lo
achiovo ils cIains or suslain ils offor,
lho rociprocaI abiIily nol lo givo roaI vanls avay (bargaining, as vas nonlionod
oarIior, is aboul concoaIing as voII as rovoaIing) ÷ in lho narIol pIaco il is aIvays
oasior for soIIors lo drivo a hard bargain vilh buyors vho havo rovoaIod sonohov
lhal lhoy covol lho arlicIo,
fIoxibIo roaIisn ÷ lho capacily lo naIo roaIislic novos during lho bargaining
procoss lo roduco lho cIain or incroaso lho offor vhich viII dononslralo lhal lho
bargainor is sooIing a roasonabIo sollIononl and is proparod lo rospond appropri-
aloIy lo novononls nado by lho olhor sido,
rospocl ÷ lho abiIily lo dononslralo lo lho olhor parly lhal lho nogolialor rospocls
lhoir viovs and laIos lhon soriousIy ovon if ho or sho disagroos vilh lhon,
sonsilivily ÷ lho abiIily lo sonso changos in noods and diroclions or voaInossos in
argunonls and rospond quicIIy lo pross hono a poinl.
Acquíríng |hc ·|ííí·
Nogolialing and bargaining sIiIIs aro dovoIopod lhrough oxporionco. To a corlain
oxlonl lhoy can bo laughl in lho cIassroon lhrough roIo pIays and sinuIalions bul
lhoso can novor ropIaco lho roaIily of silling dovn vilh lho olhor sido and discussing
cIains and counlor-offors, naIing poinls, handIing confronlalion and vorIing oul
and appIying lho laclics roquirod lo roach a salisfaclory sollIononl. Il is usofuI lo bo
avaro of lho nood lo appIy lho sIiIIs Iislod abovo bul lhoy onIy bocono noaningfuI
during acluaI nogolialion.
Tho bosl vay lo Ioarn is by boing a subsidiary nonbor of a loan vilh lho scopo lo
obsorvo and connonl on lho laclics, approachos and sIiIIs usod by bolh sidos and,
incroasingIy, lo naIo pIannod conlribulions. A good loan Ioador viII nurso lho lyro
nogolialor and viII roviov lho naluro of oach nogolialing sossion lo assoss vhal vonl
righl or vrong, and vhy. This is hov lho vrilor Ioarnl his nogolialing sIiIIs and il
sorvod hin in good sload vhon facod vilh lho lasI of Ioading nogolialing loans al
pIanl, IocaI and nalionaI IovoI in lho slinuIaling, oxciling bul sonolinos fruslraling
procoss of nogolialion.
Lmpíoyoo voìco
Tho phraso ónpIoyoo voico' rofors lo lho say onpIoyoos havo in nallors of concorn
lo lhon in lhoir organizalion. EnpIoyoo voico procossos ansvor lho quoslion posod
by BoardvoII (1998): ´Whal is lho nosl inporlanl oxprossion of onpIoyoo pors-
poclivos vilhin any organizalion`' In lhis chaplor lho nolion of onpIoyoo voico is
firsl dofinod, and roforonco is nado lo lho noro lradilionaI bul cIosoIy associalod
concopls of parlicipalion and invoIvononl. Tho rosl of lho chaplor is dovolod lo
doscribing lho various onpIoyoo voico procossos lhal can bo dovoIopod in organiza-
lions.
1HL CCNCLl1 Cl LMlLCYLL VClCL
As dofinod by BoxaII and IurcoII (2003), ÉnpIoyoo voico is lho lorn incroasingIy
usod lo covor a vhoIo varioly of procossos and slrucluros vhich onabIo, and sono-
linos onpovor onpIoyoos, diroclIy and indiroclIy, lo conlribulo lo docision-naIing
in lho firn.' EnpIoyoo voico can bo soon as ´lho abiIily of onpIoyoos lo infIuonco
lho aclions of lho onpIoyor' (MiIIvard   2000). Tho concopl covors lho provision of
opporlunilios for onpIoyoos lo rogislor disconlonl and nodify lho povor of nanago-
nonl. Il onbracos invoIvononl, and noro significanlIy, parlicipalion.

lNVCLVLMLN1 AND lAk1lCllA1lCN
InvoIvononl noans lhal nanagononl aIIovs onpIoyoos lo discuss vilh il issuos lhal
affocl lhon bul lhal nanagononl rolains lho righl lo nanago. Il is prinariIy a
nanagononl-drivon concopl. Iarlicipalion is aboul onpIoyoos pIaying a groalor parl
in lho docision naIing procoss. Il is lhoroforo nuch cIosor lo lho concopl of onpIoyoo
voico syslons, lhal is, arrangononls for onsuring lhal onpIoyoos aro givon lho oppor-
lunily lo infIuonco nanagononl docisions and lo conlribulo lo lho inprovononl of
organizalionaI porfornanco.
lLklCSLS Cl LMlLCYLL VClCL
Tho purposos of onpIoyoo voico havo boon dofinod by Marchinglon ci cl (2001) as
foIIovs:
Ariiculciicn cj in!iti!ucl !issciisjcciicn ÷ lo roclify a probIon vilh nanagononl or
provonl dolorioralion of roIalions.
|xprcssicn cj ccllcciitc crgcnizciicn ÷ lo provido a counlorvaiIing sourco of povor lo
nanagononl.
Ccniri|uiicn ic mcncgcmcni !ccisicn mc|ing ÷ lo sooI inprovononls in vorI orga-
nizalion, quaIily and produclivily.
Dcmcnsirciicn cj muiucliiq cn! cccpcrciitc rclciicns ÷ lo achiovo Iong lorn viabiIily
for lho organizalion and ils onpIoyoos.
1HL lkAML\CkK lCk LMlLCYLL VClCL
Tho franovorI for onpIoyoo voico has boon nodoIIod by Marchinglon ci cl (2001) as
shovn in Figuro 53.1. This franovorI idonlifios lvo dinonsions of voico: firsl, indi-
viduaI onpIoyoos, and socond, coIIoclivo, lhal is, union and olhor roprosonlalion. Tho
sharod agonda of invoIvononl and parlnorship is a forn of upvard probIon soIving.
This is on lho sano axis as lho conloslod agonda of griovancos and coIIoclivo
bargaining. Thoso aro nol absoIulos. Organizalions viII havo londoncios lovard
sharod or conloslod agondas, ¡usl as lhoro viII bo varying dogroos of dirocl and indi-
rocl invoIvononl, aIlhough lhoy aro unIiIoIy lo havo parlnorship and lradilionaI
coIIoclivo bargaining al lho sano lino. As Kochan ci cl (1986) poinl oul, ono of lho
slrongosl faclors affocling lho choico of approach lo onpIoyoo voico is lho alliludo of
nanagononl lovards unions.
LXlkLSSlCN Cl LMlLCYLL VClCL
Tho dogroo lo vhich onpIoyoos havo a voico viII vary considorabIy. Al ono ond of lho
scaIo lhoro is uniIaloraI nanagononl, vhoro onpIoyoos havo no voico al aII. Al lho
olhor ond, onpIoyoos nighl havo conpIolo soIf-nanagononl and conlroI as in a
cooporalivo, aIlhough lhis is raro. In bolvoon, lho slops in lho dogroo lo vhich
onpIoyoos havo voico, as dofinod by BoxaII and IurcoII (2003), aro:
IillIo voico ÷ infornalion providod,
dovnvard ÷ righl lo bo loId,
sono ÷ opporlunily lo naIo suggoslions,
lvo vay ÷ consuIlod during docision naIing,
lvo vay pIus ÷ consuIlod al aII slagos of docision naIing and inpIononlalion,
a Iol ÷ lho righl lo doIay a docision,
povor lo affocl oulcono ÷ lho righl lo volo a docision,
subslanliaI ÷ oquaIily or co-dolorninalion in docision naIing.
Lmpíoyoo voìco 809
Employee Partnership
involvement agreements
Grievance Traditional
procedures collective
bargaining
Direct
involvement
Shared agenda
Contested agenda
Indirect
involvement
FIgurc 53.1 AfranovorI for onpIoyoo voico
(Sourco: M. Marchinglon, A. WiIIinson, I AcIors and A. Dandon, Mcncgcmcni C|cicc cn!
|mplcqcc Vcicc, CIID, 2001)
lAC1CkS AllLC1lNC CHClCL
Rosoarch carriod oul by Marchinglon ci cl (1992) idonlifiod a nunbor of faclors lhal
infIuoncod onpIoyors lo inpIononl onpIoyoo invoIvononl or voico inilialivos:
injcrmciicn cn! c!ucciicn ÷ a dosiro lo óducalo' onpIoyoos noro fuIIy aboul
aspocls of lho businoss and lo convinco lhon of lho Íogic' of nanagononl's
aclions,
sccurc cn|cncc! cmplcqcc ccniri|uiicns ÷ sooIing onpIoyoo idoas and using lhon lo
inprovo porfornanco,
|cn!ling ccnjlici ci ucr| cn! prcmciing sic|iliiq ÷ providing a safoly vaIvo for lho
oxprossion of onpIoyoos' viovs,
c mcc|cnism jcr c|cnnclling cmplcqcc cnxiciics cn! misgitings vilhoul lhoir rosorling
lo lho dispulos procoduro and induslriaI aclion.
lCkMS Cl LMlLCYLL VClCL
As dofinod by Marchinglon ci cl (2001), lho nain nolhods of onpIoyoo voico faII inlo
lvo calogorios: roprosonlalivo parlicipalion and upvard probIon soIving.
Rcprc·cn|a|ívc par|ícípa|íon
jcini ccnsuliciicn ÷ a fornaI nochanisn vhich providos lho noans for nanago-
nonl lo consuIl onpIoyoo roprosonlalivos on nallors of nuluaI inlorosl
(discussod in noro dolaiI boIov).
Pcrincrs|ip sc|cmcs ÷ lhoso onphasizo nuluaI gains and lacIIing issuos in a spiril
of cooporalion ralhor lhan lhrough lradilionaI advorsariaI roIalionships.
|urcpccn Wcr|s Ccuncils ÷ lhoso nay bo sol up across Europoan silos as roquirod
by EU IogisIalion.
Ccllcciitc rcprcscniciicn ÷ lho roIo of lrado unions or olhor forns of slaff associalion
in coIIoclivo bargaining and roprosonling lho inlorosls of individuaI onpIoyoos
and groups of onpIoyoos. This incIudos lho oporalion of griovanco procoduros.
Upvard probícm ·oívíng
|lccircnic mc!ic ÷ lho inlranol.
1uc ucq ccmmunicciicn ÷ noolings bolvoon nanagors and lhoir slaff, or briofing
groups.
8l0 Lmpíoyoo roíutìons
Aiiiiu!c surtcqs ÷ sooIing lho opinions of slaff lhrough quoslionnairos (discussod
in noro dolaiI boIov).
Suggcsiicn sc|cmcs ÷ lho oncouragononl of onpIoyoos lo naIo suggoslions, oflon
acconpaniod by rovards for accoplod idoas (discussod in noro dolaiI boIov).
Prcjcci iccms ÷ golling groups of onpIoyoos logolhor vilh Iino nanagors lo
dovoIop nov idoas, procossos, sorvicos or producls or lo soIvo probIons (quaIily
circIos and inprovononl groups cono inlo lhis calogory, aIlhough lho fornor
havo gonoraIIy faiIod lo survivo as a spocific nolhod of invoIvononl).
lClN1 CCNSLL1A1lCN
}oinl consuIlalion onabIos nanagors and onpIoyoo roprosonlalivos lo nool on a
roguIar basis in ordor lo oxchango viovs, lo naIo good uso of nonbors' InovIodgo
and oxporliso, and lo doaI vilh nallors of connon inlorosl lhal aro nol lho sub¡ocl of
coIIoclivo bargaining.
For ¡oinl consuIlalion lo vorI voII il is firsl nocossary lo dofino, discuss and agroo
ils ob¡oclivos. Thoso shouId bo roIalod lo langibIo and significanl aspocls of lho ¡ob,
lho procoss of nanagononl, or lho fornuIalion of poIicios lhal affocl lho inlorosls of
onpIoyoos. Thoy shouId nol doaI onIy vilh poriphoraI nallors such as voIfaro,
sociaI anonilios or lho quaIily of lho sausagos in lho slaff roslauranl. ConsuIlalion
shouId laIo pIaco boforo docisions aro nado. Managononl nusl boIiovo in and nusl
bo soon lo boIiovo in invoIving onpIoyoos. Aclions spoaI bollor lhan vords, and
nanagononl shouId dononslralo lhal il viII pul inlo offocl lho ¡oinl docisions
nado during discussions. Tho unions nusl aIso boIiovo in parlicipalion as a
gonuino noans of giving lhon voico and advancing lho inlorosls of lhoir nonbors,
and nol sinpIy as a vay of golling noro povor. Thoy shouId shov by lhoir aclions
lhal lhoy aro proparod lo supporl unpopuIar docisions lo vhich lhoy havo boon a
parly.
}oinl consuIlalion nachinory shouId bo in Iino vilh any oxisling syslons of nogoli-
alion and roprosonlalion. Il shouId nol bo supporlod by nanagononl as a possibIo
vay of roducing lho povors of lho union. If lhis naivo approach is laIon, il viII faiI ÷
il aIvays doos. }oinl consuIlalion shouId bo rogardod as a procoss of inlogralivo
bargaining conpIononlary lo lho dislribulivo bargaining lhal laIos pIaco in ¡oinl
nogolialing connilloos.
ConsuIlalivo connilloos shouId aIvays roIalo lo a dofinod vorIing unil, shouId
novor nool unIoss lhoro is sonolhing spocific lo discuss, and shouId aIvays concIudo
lhoir noolings vilh agrood poinls vhich aro inpIononlod quicIIy.
EnpIoyoo and nanagononl roprosonlalivos shouId bo proporIy briofod and
Lmpíoyoo voìco 8ll
lrainod, and havo aII lho infornalion lhoy roquiro. Managors and loan Ioadors shouId
bo Iopl in lho picluro, and as approprialo, invoIvod in lho consuIlalion procoss. Il is
cIoarIy highIy undosirabIo for lhon lo fooI lhal lhoy havo boon Iofl oul.
A11l1LDL SLkVLYS
Alliludo survoys aro a vaIuabIo vay of invoIving onpIoyoos by sooIing lhoir viovs
on nallors lhal concorn lhon. Alliludo survoys can provido infornalion on lho prof-
oroncos of onpIoyoos, givo varning on polonliaI probIon aroas, diagnoso lho causo of
parlicuIar probIons, and conparo IovoIs of ¡ob salisfaclion, connilnonl and noraIo
in difforonl parls of lho organizalion.
\c|hod· of conduc|íng a||í|udc ·urvc,·
Thoro aro lhroo nolhods of conducling alliludo survoys:
8q i|c usc cj siruciurc! ¡ucsiicnncircs. Thoso can bo issuod lo aII or a sanpIo of
onpIoyoos. Tho quoslionnairos nay bo slandardizod onos, such as lho BrayfioId
and Rolho Indox of }ob Salisfaclion, or lhoy nay bo dovoIopod spociaIIy for lho
organizalion. Tho advanlago of using slandardizod quoslionnairos is lhal lhoy
havo boon lhoroughIy loslod, and in nany casos norns aro avaiIabIo againsl
vhich rosuIls can bo conparod. AddilionaI quoslions spociaIIy roIovanl lo lho
conpany can bo addod lo lho slandard Iisl. A laiIor-nado quoslionnairo can bo
usod lo highIighl parlicuIar issuos, bul il nay bo advisabIo lo oblain profossionaI
hoIp fron an oxporioncod psychoIogisl, vho can carry oul lho sIiIIod vorI of
drafling and piIol losling lho quoslionnairo and inlorproling lho rosuIls.
Quoslionnairos havo lho advanlago of boing roIalivoIy choap lo adninislor and
anaIyso, ospociaIIy vhon lhoro aro Iargo nunbors invoIvod. Many organizalions
uso oIoclronic noans (lho inlranol) lo sooI lho viovs of onpIoyoos gonoraIIy or on
parlicuIar issuos. An oxanpIo of an alliludo survoy doaIing vilh viovs on pay is
givon in lho Appondix.
8q i|c usc cj inicrticus. Thoso nay bo ópon ondod' or doplh inlorviovs in vhich
lho discussion is aIIovod lo rango quilo frooIy. AIlornalivoIy lhoy nay bo soni-
slruclurod in lhal lhoro is a chocIIisl of poinls lo bo covorod, aIlhough lho ain of
lho inlorviovor shouId bo lo aIIov discussion lo fIov around lho poinls so lhal
lho franI and opon viovs of lho individuaI aro oblainod. AIlornalivoIy, and noro
raroIy, inlorviovs can bo highIy slruclurod so lhal lhoy bocono no noro lhan lho
spoIon appIicalion of a quoslionnairo. IndividuaI inlorviovs aro lo bo proforrod
bocauso lhoy aro noro IiIoIy lo bo rovoaIing, bul lhoy aro oxponsivo and lino-
consuning and nol so oasy lo anaIyso. Discussions lhrough ´focus groups'
(groups of onpIoyoos convonod lo focus lhoir allonlion on parlicuIar issuos) aro a
quicIor vay of roaching a Iargo nunbor of poopIo, bul lho rosuIls aro nol so oasy
lo quanlify, and sono poopIo nay havo difficuIly in oxprossing lhoir viovs in
pubIic.
8q c ccm|inciicn cj ¡ucsiicnncirc cn! inicrticu. This is lho idoaI approach bocauso il
conbinos lho quanlilalivo dala fron lho quoslionnairo vilh lho quaIilalivo dala
fron lho inlorviovs. Il is aIvays advisabIo lo acconpany quoslionnairos vilh
sono doplh inlorviovs, ovon if lino pornils onIy a Iinilod sanpIo. An aIlornalivo
approach is lo adninislor lho quoslionnairo lo a group of poopIo and lhon discuss
lho roaclions lo oach quoslion vilh lho group. This onsuros lhal a quanlifiod
anaIysis is possibIo bul onabIos lho group, or al Ioasl sono nonbors of il, lo
oxpross lhoir fooIings noro fuIIy.
8q i|c usc cj jccus grcups. A focus group is a roprosonlalivo sanpIo of onpIoyoos
vhoso alliludos and opinions aro soughl on issuos concorning lho organizalion
and lhoir vorI. Tho ossonliaI foaluros of a focus group aro lhal il is slruclurod,
infornod, conslruclivo and confidonliaI.
A··c··íng rc·uí|·
Il is an inlorosling facl lhal vhon poopIo aro asIod diroclIy if lhoy aro salisfiod vilh
lhoir ¡ob, nosl of lhon (70 lo 90 por conl) viII say lhoy aro. This is rogardIoss of lho
vorI boing dono, and oflon in spilo of slrongIy hoId griovancos. Tho probabIo roason
for lhis phonononon is lhal vhiIo nosl poopIo aro viIIing lo adnil lo having griov-
ancos ÷ in facl, if invilod lo conpIain, lhoy viII conpIain ÷ lhoy nay bo roIuclanl lo
adnil, ovon lo lhonsoIvos, lo boing dissalisfiod vilh a ¡ob lhal lhoy havo no inno-
dialo inlonlion of Ioaving. Many onpIoyoos havo bocono roconciIod lo lhoir vorI,
ovon if lhoy do nol IiIo sono aspocls of il, and havo no roaI dosiro lo do anylhing oIso.
So lhoy aro, in a sonso, salisfiod onough lo conlinuo, ovon if lhoy havo conpIainls.
FinaIIy, nany poopIo aro salisfiod vilh lhoir ¡ob ovoraII, aIlhough lhoy grunbIod
aboul nany aspocls of il.
OvoraII noasuros of salisfaclion do nol, lhoroforo, aIvays rovoaI anylhing inlor-
osling. Il is noro inporlanl lo IooI al parlicuIar aspocls of salisfaclion or dissalisfac-
lion, lo docido vholhor or nol anylhing noods lo bo dono. In lhoso circunslancos, lho
quoslionnairo viII indicalo onIy a Iino lo bo foIIovod up. Il viII nol provido lho
ansvors. Honco lho advanlago of individuaI noolings or focus group discussions lo
oxpIoro in doplh any issuo raisod.
Lmpíoyoo voìco 8l3
SLCCLS1lCN SCHLMLS
Suggoslion schonos can provido a vaIuabIo noans for onpIoyoos lo parlicipalo in
inproving lho officioncy of lho conpany. IroporIy organizod, lhoy can hoIp lo roduco
lho fooIings of fruslralion ondonic in aII concorns vhoro poopIo lhinI lhoy havo good
idoas bul cannol gol lhon considorod bocauso lhoro aro no rocognizod channoIs of
connunicalion. NornaIIy onIy lhoso idoas oulsido lho usuaI scopo of onpIoyoos'
dulios aro considorod, and lhis shouId bo nado cIoar, as voII as lho calogorios of lhoso
oIigibIo for lho schono ÷ sonior nanagors aro oflon oxcIudod.
Tho basis of a succossfuI suggoslion schono shouId bo an oslabIishod procoduro for
subnilling and ovaIualing idoas, vilh langibIo rocognilion for lhoso lhal havo noril,
and an offoclivo syslon for oxpIaining lo onpIoyoos vilhoul discouraging lhon lhal
lhoir idoas cannol bo accoplod.
Tho nosl connon arrangononl is lo uso suggoslion boxos, vilh possibIy a
spociaI forn for onloring a suggoslion. AIlornalivoIy, or addilionaIIy, onpIoyoos
can bo givon lho nano of an individuaI or a connilloo lo vhon suggoslions
shouId bo subnillod. Managors and loan Ioadors nusl bo slinuIalod lo oncourago
lhoir slaff lo subnil suggoslions, and pubIicily in lho shapo of poslors, IoafIols and
arlicIos in lho conpany nagazino shouId bo usod lo pronolo lho schono. Tho
pubIicily shouId givo proninonco lo lho succossfuI suggoslions and hov lhoy aro
boing inpIononlod.
Ono porson shouId bo nado rosponsibIo for adninisloring lho schono. Ho or sho
shouId havo lho aulhorily lo ro¡ocl facolious suggoslions, bul shouId bo givon cIoar
guidanco on lho rouling of suggoslions by sub¡ocl nallor lo doparlnonls or individ-
uaIs for lhoir connonls. Tho adninislralor doaIs vilh aII connunicalions, and if
nocossary nay go bacI lo lho individuaI vho subnillod lho suggoslion lo gol noro
dolaiIs of, for oxanpIo, lho savings in cosl or inprovononls in oulpul lhal shouId
rosuIl fron lho idoa.
Il is dosirabIo lo havo a suggoslion connilloo consisling of nanagononl and
onpIoyoo roprosonlalivos, lo roviov suggoslions in lho Iighl of lho connonls of any
spociaIisl funclions or oxoculivos vho havo ovaIualod lhon. This connilloo shouId
bo givon lho finaI povor lo accopl or ro¡ocl suggoslions, and bo abIo if nocossary lo caII
for addilionaI infornalion or opinion boforo naIing ils docision. Tho connilloo
couId aIso docido on lho sizo of any avard vilhin oslabIishod guidoIinos, such as a
proporlion of savings during lho firsl yoar. Thoro shouId bo a slandard procoduro for
rocording lho docisions of lho connilloo and inforning lhoso vho nado suggoslions
of lho oulcono ÷ vilh roasons for ro¡oclion if approprialo.
lLANNlNC lCk VClCL
Tho forns of voico approprialo for an organizalion dopond upon lho vaIuos and alli-
ludos of nanagononl, and if lhoy oxisl lrado unions, and lho curronl cIinalo of
onpIoyoo roIalions. IIanning shouId bo basod on a roviov of lho oxisling forns of
voico, vhich incIudos discussions vilh slaIohoIdors (Iino nanagors, onpIoyoos and
lrado union roprosonlalivos) on lho offoclivonoss of oxisling arrangononls and any
inprovononls roquirod. In lho Iighl of lhoso discussions, nov or rovisod approachos
can bo dovoIopod, bul il is nocossary lo briof and lrain lhoso invoIvod in lho parl lhoy
shouId pIay.
Lmpíoyoo voìco 8l5
Communìcutìons
Organizalions funclion by noans of lho coIIoclivo aclion of poopIo, yol oach indi-
viduaI is capabIo of laIing indopondonl aclion vhich nay nol bo in Iino vilh poIicy
or inslruclions, or nay nol bo roporlod proporIy lo olhor poopIo vho oughl lo Inov
aboul il. Good connunicalions aro roquirod lo achiovo coordinalod rosuIls.
Organizalions aro sub¡ocl lo lho infIuonco of conlinuous chango vhich affocls lho
vorI onpIoyoos do, lhoir voII-boing and lhoir socurily. Chango can bo nanagod onIy
by onsuring lhal lho roasons for and lho inpIicalions of chango aro connunicalod lo
lhoso affoclod in lorns vhich lhoy can undorsland and accopl.
IndividuaIs aro nolivalod by lho oxlrinsic rovard syslon and lho inlrinsic rovards
coning fron lho vorI ilsoIf. Bul lho dogroo lo vhich lhoy aro nolivalod doponds
upon lho anounl of rosponsibiIily and scopo for achiovononl providod by lhoir ¡ob,
and upon lhoir oxpoclalions lhal lho rovards lhoy viII gol viII bo lho onos lhoy vanl,
and viII foIIov fron lho offorls lhoy naIo. FooIings aboul vorI and lho associalod
rovards dopond vory nuch on lho offoclivonoss of connunicalions fron lhoir
nanagors or loan Ioadors and vilhin lho conpany.
Abovo aII, good lvo-vay connunicalions aro roquirod so lhal nanagononl can
Ioop onpIoyoos infornod of lho poIicios and pIans affocling lhon, and onpIoyoos
can roacl pronplIy vilh lhoir viovs aboul nanagononl's proposaIs and aclions.
Chango cannol bo nanagod proporIy vilhoul an undorslanding of lho fooIings of
lhoso affoclod by il, and an officionl syslon of connunicalions is noodod lo undor-
sland and infIuonco lhoso fooIings.

Bul lho oxlonl lo vhich good connunicalions croalo salisfaclory roIalionships
ralhor lhan sinpIy roducing unsalisfaclory onos, can bo oxaggoralod. A foaluro of
nanagononl praclicos is lho vay in vhich difforonl nanagononl lhoorios bocono
fashionabIo or infIuonliaI for a vhiIo and lhon docIino in favour. Anong lhoso has
boon lho ´good connunicalions' lhoory of nanagononl. This approach lo doaIing
vilh nanagononl probIons is basod upon lho foIIoving assunplions:
Tho noods and ains of bolh onpIoyoos and nanagononl aro, in lho Iong run, lho
sano in any organizalion. Managors' and onpIoyoos' idoas and ob¡oclivos can aII
bo fillod logolhor lo forn a singIo concopluaI franovorI.
Any difforoncos in opinion bolvoon nanagononl and onpIoyoos aro duo lo
nisundorslandings vhich havo arison bocauso connunicalions aro nol good
onough.
Tho soIulion lo induslriaI slrifo is lo inprovo connunicalions.
This lhoory is allraclivo and has sono vaIidily. Ils voaInoss is lhal lho assunplions
aro loo svooping, parlicuIarIy lho boIiof lhal lho uIlinalo ob¡oclivos of nanagononl
and vorIors aro nocossariIy idonlicaI. Tho good connunicalions lhoory, IiIo palor-
naIisn, soons lo inpIy lhal a conpany can dovoIop IoyaIly by Iooping poopIo
infornod and lroaling lhon voII. Bul poopIo vorIing in organizalions havo olhor
and, lo lhon, noro inporlanl IoyaIlios oIsovhoro ÷ and vhy nol`
Tho oxislonco of difforonl IoyaIlios and poinls of viov in an organizalion doos nol
noan lhal connunicalion is uninporlanl. If anylhing lho nood for a good connuni-
calions syslon boconos ovon groalor vhon difforoncos and confIicl oxisl. Bul il can
onIy aIIovialo lhoso difforoncos and pavo lho vay lo bollor cooporalion. Il cannol
soIvo lhon.
Il is lhoroforo nocossary lo boar in nind lhal lho group vilh vhich vo idonlify ÷ lho
roforonco group ÷ infIuoncos our alliludos and fooIings. ´Managononl' and lho ´lho
union' as voII as our faniIy, our olhnic bacIground, our poIilicaI parly and our roIi-
gious boIiofs (if any) conslilulo a roforonco group and coIour our roaclions lo inforna-
lion. Whal oach group ´hoars' doponds on ils ovn inlorosls. Sharod oxporioncos and
connon franos of roforonco havo nuch noro infIuonco lhan oxhorlalions fron
nanagononl. EnpIoyoos nay fooI lhoy havo nolhing lo do vilh lhon bocauso il
confIicls vilh vhal lhoy aIroady boIiovo.
Hovovor, aIlhough lhoro nay bo Iinilalions on lho oxlonl lo vhich connunicalion
slralogios can onhanco nuluaIily and connilnonl, lhoro is no doubl lhal il is osson-
liaI for nanagononls lo Ioop poopIo infornod on nallors lhal affocl lhon and lo
provido channoIs for lhon lo oxpross lhoir viovs. This is parlicuIarIy nocossary vhon
nov onpIoynonl inilialivos aro laIing pIaco and offoclivo chango nanagononl is
vory nuch aboul connunicaling nanagononl's inlonlions lo poopIo and naIing
suro lhal lhoy undorsland hov lhoy viII bo affoclod.
CCMMLNlCA1lCN AkLAS AND CßlLC1lVLS
Tho nain connunicalion aroas and lhoir associalod ob¡oclivos aro sol oul in TabIo
54.1.
EnpIoyoo roIalions aro nainIy affoclod by nanagoriaI and inlornaI connunica-
lions, aIlhough oxlornaI connunicalions aro an addilionaI channoI of infornalion.
Tho slralogy for nanagoriaI connunicalions is concornod vilh pIanning and conlroI
procoduros, nanagononl infornalion syslons and lochniquos of doIogaling and
giving inslruclions. Thoso nallors aro oulsido lho scopo of lhis booI, oxcopl in so far
as lho procoduros and sIiIIs can bo dovoIopod by lraining progrannos.
CCMMLNlCA1lCNS S1kA1LCY
Tho slralogy for inlornaI connunicalions shouId bo basod on anaIysos of:
vhal nanagononl vanls lo say,
vhal onpIoyoos vanl lo hoar,
lho probIons boing nol in convoying or rocoiving infornalion.
Thoso anaIysos can bo usod lo indicalo lho syslons of connunicalion lhal nood lo bo
dovoIopod and lho oducalion and lraining progrannos roquirod lo naIo lhon vorI.
Thoy shouId aIso provido guidanco on hov connunicalions shouId bo nanagod and
linod. Bad nanagononl and poor lining aro froquonlIy lho fundanonlaI causos of
inoffoclivo connunicalion.
Vha| managcmcn| van|· |o ·a,
Whal nanagononl vanls lo say doponds upon an assossnonl of vhal onpIoyoos
nood lo Inov, vhich, in lurn, is affoclod by vhal lhoy vanl lo hoar.
Managononl usuaIIy ains lo achiovo lhroo lhings: firsl, lo gol onpIoyoos lo undor-
sland and accopl vhal nanagononl proposos lo do in aroas lhal affocl lhon, socond,
lo oblain lho connilnonl of onpIoyoos lo lho ob¡oclivos, pIans and vaIuos of lho
organizalion, and, lhird, lo hoIp onpIoyoos lo approcialo noro cIoarIy lho conlribu-
lion lhoy can naIo lo organizalionaI succoss and hov il viII bonofil lhon.
Communìcutìons 8l9
Communíca|íon Arca Cb¡cc|ívc·
l. tho communìcutìon dovnvurds to onsuro thut munugors und
und sìdovuys ol corporuto or suporvìsors rocoìvo cíour, uccuruto
lunctìonuí ob¡octìvos, poíìcìos und prompt ìnlormutìon on vhut
píuns und budgots to thoso vho thoy uro oxpoctod to uchìovo to
huvo to ìmpíomont thom lurthor tho compuny's ob¡octìvos
2. tho communìcutìon dovnvurds to onsuro thut tho ìnstructìons uro
ol dìroct ìnstructìons lrom u cíour und procìso und provìdo tho
munugor to u subordìnuto on nocossury motìvutìon to got poopío
vhut tho íuttor hus to do ìnto uctìon
3. tho communìcutìon upvurds und to onsuro thut munugors und
sìdovuys ol proposuís, suporvìsors huvo udoquuto scopo to
suggostìons und commonts on ìnlíuonco corporuto und lunctìonuí
corporuto or lunctìonuí ob¡octìvos, docìsìons on muttors ubout vhìch
poíìcìos und budgots lrom thoso thoy huvo spocìlìc oxportìso und
vho huvo to ìmpíomont thom knovíodgo
4. tho communìcutìon upvurds und to onubío munugomont to monìtor und
sìdovuys ol munugomont controí porlormunco ìn ordor thut, us
ìnlormutìon on porlormunco und nocossury, opportunìtìos cun bo oxpíoìtod
rosuíts or svìlt corroctìvo uctìon tukon
5. tho communìcutìon dovnvurds to onsuro thut tì) ompíoyoos uro kopt
ol ìnlormutìon on compuny píuns, ìnlormod ol muttors thut ulloct thom,
poíìcìos or porlormunco ospocìuííy chungos to vorkìng condìtìons,
und luctors ìnlíuoncìng thoìr prosporìty
und socurìty, tìì) ompíoyoos uro oncourugod
to ìdontìly thomsoívos moro compíotoíy
vìth tho compuny
6. tho communìcutìon upvurds ol to onsuro thut ompíoyoos uro gìvon
tho commonts und rouctìons ol un opportunìty to voìco thoìr suggostìons
ompíoyoos to vhut ìs proposod vìíí und lours und thut tho compuny ìs ìn u
huppon or vhut ìs uctuuííy hupponìng posìtìon to umond ìts píuns ìn tho íìght
ìn muttors thut ulloct thom ol thoso commonts
7. tho rocoìpt und unuíysìs ol to onsuro thut tho compuny ìs luííy
ìnlormutìon lrom outsìdo vhìch uvuro ol uíí tho ìnlormutìon on
ullocts tho compuny's ìntorosts íogìsíutìon und on murkotìng,
commorcìuí, lìnuncìuí und tochnoíogìcuí
muttors thut ulloct ìts ìntorosts
8. tho prosontutìon ol ìnlormutìon to oxort ìnlíuonco ìn tho ìntorosts ol
ubout tho compuny und ìts tho compuny, to prosont u good
products to tho govornmont, ìmugo ol tho compuny, und to
customors und tho pubíìc ut íurgo porsuudo customors to buy ìts
products or sorvìcos
TabIc 54.1 Connunicalion aroas and ob¡oclivos
Connunicalions fron nanagononl shouId bo aboul vaIuos, pIans, inlonlions and
proposaIs (vilh lho opporlunily for discussion vilh and foodbacI fron onpIoyoos)
as voII as aboul achiovononls and rosuIls. Exhorlalions shouId nol bo usod: no ono
Iislons lo lhon. Il is bollor lo conconlralo on spocific roquirononls ralhor lhan
rosorling lo gonoraI appoaIs for abslracl lhings such as inprovod quaIily or produc-
livily. Tho roquirononls shouId bo phrasod in a vay vhich onphasizos hov aII
concornod viII acluaIIy vorI logolhor and lho nuluaI bonofils lhal shouId rosuIl.
Vha| cmpío,cc· van| |o hcar
CIoarIy, onpIoyoos vanl lo hoar aboul and lo connonl upon lho nallors lhal affocl
lhoir inlorosls. Thoso viII incIudo changos in vorIing nolhods and condilions,
changos in lho arrangononls for ovorlino and shifl vorIing, conpany pIans vhich
nay affocl pay or socurily, and changos in lorns and condilions of onpIoynonl. Il is
nanagononl's ¡ob lo undorsland vhal onpIoyoos vanl lo hoar and pIan ils
connunicalions slralogy accordingIy. Undorslanding can bo oblainod by conducling
´focus groups' discussions vhich bring logolhor groups of onpIoyoos lo focus on
parlicuIar issuos lhal concorn lhon, by noans of alliludo survoys, by asIing
onpIoyoo roprosonlalivos, by infornaIIy Iisloning lo vhal onpIoyoos say, and by
anaIysing griovancos lo soo if inprovod connunicalions couId nodify lhon.
Anaí,·íng communíca|íon probícm·
Spocific oxanpIos of onpIoyoo roIalions probIons vhoro connunicalion faiIuros
havo boon lho causo or a conlribulory faclor shouId bo anaIysod lo dolornino oxaclIy
vhal vonl vrong and vhal noods lo bo dono lo pul il righl. Tho probIons nay bo any
of lhoso Iislod oarIior in lhis chaplor, incIuding IacI of approprialo channoIs of
connunicalion, IacI of approcialion of lho nood lo connunicalo, and IacI of sIiII in
ovorconing lho nany fornidabIo barriors lo connunicalion. IrobIons vilh chan-
noIs of connunicalion can bo doaIl vilh by inlroducing nov or inprovod connuni-
calions syslons. LacI of sIiII is a nallor for oducalion and lraining.
CCMMLNlCA1lCN SYS1LMS
Connunicalion syslons can bo dividod inlo lhoso using an inlranol, lhoso using lho
vrillon vord such as nagazinos, novsIollors, buIIolins and nolico-boards, and lhoso
using oraI nolhods such as noolings, briofing groups and pubIic addross syslons.
Tho ain shouId bo lo naIo ¡udicious uso of a nunbor of channoIs lo naIo suro lhal
lho nossago gols across.
Communìcutìons 82l
Communíca|íon· |hrough an ín|ranc| ·,·|cm
Organizalions aro incroasingIy roIying on an inlornaI o-naiI syslon (lho inlranol) lo
connunicalo infornalion, ospociaIIy in vorIpIacos vhoro aII or nosl of lho
onpIoyoos havo dirocl or indirocl accoss lo a conpulor. Tho advanlago of inlranol
connunicalions is lhal lhoy can bo lransnillod sviflIy lo a vido audionco. Thoy can
aIso bo usod for lvo-vay connunicalions ÷ onpIoyoos can bo invilod lo rospond lo
quoslions or survoys.
\aga2ínc·
GIossy nagazinos or houso ¡ournaIs aro an obvious vay lo Ioop onpIoyoos infornod
aboul lho conpany and aro oflon usod for pubIic roIalions purposos as voII. Thoy can
oxloI and oxpIain lho achiovononls of lho conpany and nay lhus hoIp lo incroaso
idonlificalion and ovon IoyaIly. If onpIoyoos aro oncouragod lo conlribulo (aIlhough
lhis is difficuIl), lho nagazino can bocono noro hunan. Tho biggosl dangor of lhis
sorl of nagazino is lhal il boconos a pubIic roIalions oxorciso vhich is soon by
onpIoyoos as having IillIo roIovanco lo lhoir ovoryday affairs.
^cv·íc||cr·
NovsIollors ain lo appoar noro froquonlIy and lo angIo lhoir conlonls noro lo lho
innodialo concorns of onpIoyoos lhan lho gIossior forn of houso nagazino. To bo
offoclivo, lhoy shouId incIudo arlicIos spocificaIIy ainod al oxpIaining vhal nanago-
nonl is pIanning lo do and hov lhis affocls ovoryono. Thoy can aIso incIudo noro
chally ´hunan inlorosl' naloriaI aboul lho doings of onpIoyoos lo capluro lho
allonlion of roadors. Corrospondonco coIunns can provido an avonuo for lho
oxprossion of onpIoyoos' viovs and ropIios fron nanagononl, bul no allonpl
shouId bo nado lo consor Iollors (oxcopl lhoso lhal aro puroIy abusivo) or lo puII
punchos in ropIy. Anonynous Iollors shouId bo pubIishod if lho vrilor givos his nano
lo lho odilor.
Tho Ioy faclor in lho succoss of a novsIollor or any forn of houso nagazino is lho
odilor, vho shouId bo sonoono vho Inovs lho conpany and ils onpIoyoos and can
bo lruslod by ovoryono lo bo franI and fair. IrofossionaI oxporliso is obviousIy dosir-
abIo bul il is nol lho firsl considoralion, as Iong as lho odilor can vrilo roasonabIy voII
and has accoss lo oxporl hoIp in pulling lho papor logolhor. Il is oflon a good idoa lo
havo an odiloriaI board consisling of nanagononl and onpIoyoo roprosonlalivos lo
adviso and assisl lho odilor.
Organizalions oflon pubIish a novsIollor in addilion lo a houso nagazino, lroaling
lho Iallor nainIy as a pubIic roIalions oxorciso and roIying on lho novsIollor as lho
prino noans of connunicaling vilh onpIoyoos.
ßuííc|ín·
BuIIolins can bo usod lo givo innodialo infornalion lo onpIoyoos vhich cannol vail
for lho noxl issuo of a novsIollor, or lhoy can bo a subslilulo for a fornaI pubIicalion
if lho conpany doos nol fooI lhal lho oxponso is ¡uslifiod. BuIIolins aro usofuI onIy if
lhoy aro dislribulod quicIIy and aro soon by aII inloroslod onpIoyoos. Thoy can
sinpIy bo poslod on nolico-boards or, noro offoclivoIy, givon lo individuaI onpIoyoos
and usod as a slarling poinl for a briofing sossion if lhoy conlain infornalion of suffi-
cionl inlorosl lo noril a faco-lo-faco discussion.
ô|ícc-board·
Nolico-boards aro an obvious bul froquonlIy nisusod nodiun for connunicalions.
Tho biggosl dangor is aIIoving boards lo bo cIullorod up vilh uninlorosling or oul-of-
dalo naloriaI. Il is ossonliaI lo conlroI vhal goos on lo lho boards and lo appoinl
rosponsibIo poopIo lo sorvico lhon by ronoving oul-of-dalo or unaulhorizod nolicos.
A noro inprossivo shov can bo nado of nolicos and olhor naloriaI if an inforna-
lion conlro is sol up in lho roslauranl or sono olhor suilabIo pIaco vhoro lho inforna-
lion can bo dispIayod in a noro allraclivo and conpoIIing nannor lhan on a lypicaI
nolico-board.
Lmpío,cc ínvoívcmcn|
EnpIoyoo invoIvononl lhrough such noans as consuIlalivo connilloos providos a
channoI for lvo-vay connunicalion. Sonolinos, hovovor, lhoy aro nol parlicuIarIy
offoclivo, oilhor bocauso lhoir lhundor has boon sloIon by union nogolialion connil-
loos, or bocauso lhoir procoodings aro ovor-fornaIizod and roslriclod and faiI lo
addross lho roaI issuos. Il is ossonliaI lo dissoninalo lho infornalion rovoaIod al
connilloos around lho officos and vorIs, bul il is inpossibIo lo roIy on connilloo
nonbors lo do lhis. Minulos can bo poslod on nolico-boards, bul lhoy aro soIdon
road, usuaIIy bocauso lhoy conlain loo nuch rodundanl naloriaI.
DVD·
SpociaIIy nado DVDs can bo a cosl-offoclivo nolhod of golling across porsonaI
nossagos (og fron lho chiof oxoculivo) or infornalion aboul hov lho conpany is
doing. Thoy can, hovovor, bo rogardod by onpIoyoos as loo inporsonaI and/or loo
sIicI lo havo any roaI noaning.
Communìcutìons 823
Tcam brícfíng
Tho concopl of loan briofing (proviousIy caIIod briofing groups), as originaIIy dovoI-
opod by lho InduslriaI Socioly, is a dovico lo ovorcono lho roslriclod naluro of ¡oinl
consuIlalivo connilloos by invoIving ovoryono in an organizalion, IovoI by IovoI, in
faco-lo-faco noolings lo prosonl, rocoivo and discuss infornalion. Toan briofing ains
lo ovorcono lho gaps and inadoquacios of casuaI briofings by in¡ocling sono ordor
inlo lho syslon.
Toan briofing shouId oporalo as foIIovs:
1. Orgcnizciicn
÷ covor aII IovoIs in an organizalion,
÷ fovosl possibIo slops bolvoon lho lop and bollon,
÷ bolvoon 4 and 18 in oach group,
÷ run by lho innodialo Ioador of oach group al oach IovoI (vho nusl bo
proporIy lrainod and briofod).
2. Su|jccis
÷ poIicios ÷ oxpIanalions of nov or changod poIicios,
÷ pIans ÷ as lhoy affocl lho organizalion as a vhoIo and lho innodialo group,
÷ progross ÷ hov lho organizalion and lho group aro golling on,
÷ poopIo ÷ nov appoinlnonls, poinls aboul porsonnoI nallors (pay, socurily,
procoduros).
3. Sc¡ucncc ÷ lho briofing groups shouId vorI lo a briof proparod by lho board on
Ioy issuos. This briofing is vrillon up and cascadod dovn lho organizalion. Tho
briofing group noolings shouId, hovovor, aIIov for discussion of lho briof, and
lho syslon shouId calor for any roaclions or connonls lo bo fod bacI lo lho lop.
This providos for lvo-vay connunicalion.
4. 1iming cn! !urciicn.
÷ a nininun of onco a nonlh for lhoso in chargo of olhors and onco ovory lvo
nonlhs for ovory individuaI in lho organizalion ÷ bul nool onIy if lhoro is
sonolhing lo say,
÷ duralion nol Iongor lhan 20÷30 ninulos.
Tho noril of loan briofing is lhal il onabIos faco-lo-faco connunicalions lo bo
pIannod and, lo a roasonabIo dogroo, fornaIizod. Il is oasy, hovovor, for il lo slarl on
a vavo of onlhusiasn and lhon lo vilhor avay bocauso of IacI of sufficionl drivo and
onlhusiasn fron lho lop dovnvard, inadoqualoIy lrainod and nolivalod nanagors
and loan Ioadors, roIuclanco of nanagononl lo aIIov sub¡ocls of roaI inporlanco lo
bo discussod lhroughoul lho syslon, and insufficionl foodbacI upvards lhrough oach
IovoI.
A loan briofing syslon nusl bo Iod and conlroIIod offoclivoIy fron lho lop, bul il
doos roquiro a sonior nanagor vilh spocific rosponsibiIily lo adviso on lho sub¡ocl
nallor and lho proparalion of briofs (il is inporlanl lo havo voII-proparod naloriaI lo
onsuro lhal briofing is carriod oul consislonlIy and lhoroughIy al oach IovoI), lo lrain
nanagors and loan Ioadors, and lo nonilor lho syslon by chocIing on lho offoclivo-
noss and froquoncy of noolings.
Communìcutìons 825
Houíth, suloty und
voíluro
1|is pcri !ccls uii| i|c scrticcs prcti!c! |q i|c HR !cpcrimcni in cr!cr ic |clp i|c
crgcnizciicn mcci iis lcgcl cn! sccicl rcspcnsi|iliiics ic cnsurc c |ccli|q cn! scjc
plccc cj ucr|, ic |clp cmplcqccs ccpc uii| i|cir pcrscncl prc|lcms, ic |clp cl!crlq cn!
rciirc! cmplcqccs cn!, in scmc ccscs, ic mc|c rccrcciicncl jcciliiics ctcilc|lc.
 
Houíth und suloty
HoaIlh and safoly poIicios and progrannos aro concornod vilh prolocling onpIoyoos
÷ and olhor poopIo affoclod by vhal lho conpany producos and doos ÷ againsl lho
hazards arising fron lhoir onpIoynonl or lhoir IinIs vilh lho conpany.
OccupalionaI hoaIlh progrannos doaI vilh lho provonlion of iII-hoaIlh arising
fron vorIing condilions. Thoy consisl of lvo oIononls:
cccupciicncl mc!icinc, vhich is a spociaIizod branch of provonlivo nodicino
concornod vilh lho diagnosis and provonlion of hoaIlh hazards al vorI and
doaIing vilh any iII-hoaIlh or slross lhal has occurrod in spilo of provonlivo
aclions,
cccupciicncl |qgicnc, vhich is lho provinco of lho chonisl and lho onginoor or
orgononisl ongagod in lho noasurononl and conlroI of onvironnonlaI hazards.
Safoly progrannos doaI vilh lho provonlion of accidonls and vilh nininizing lho
rosuIling Ioss and danago lo porsons and proporly. Thoy roIalo noro lo syslons of
vorI lhan lho vorIing onvironnonl, bul bolh hoaIlh and safoly progrannos aro
concornod vilh proloclion againsl hazards, and lhoir ains and nolhods aro cIoarIy
inlor-IinIod.
Tho RoyaI Socioly for lho Irovonlion of Accidonls (Bibbings, 2003) has nado lho
foIIoving obsorvalion on accidonl provonlion:

\o luìí to provont uccìdonts not ¡ust bocuuso ol ìncompíoto controí ol tho cìrcumstuncos
vhìch gìvo rìso to thom, but bocuuso ol our purtìuí knovíodgo ol hov thìngs rouííy uro
und, ol courso, our ìnovìtubíy ìncompíoto knovíodgo ol vhut vìíí huppon ìn tho luturo.
Humun boìngs ìn thìs sonso luìí to brìng ordor to un ossontìuííy chuotìc und dungorous
voríd - not ¡ust bocuuso ìt dolìos thoìr ollorts to controí ìt but bocuuso thoy do not luííy
undorstund ìts compíoxìty und rundomnoss. 1ho rosuít ìs u potontìuííy dungorous
tondoncy to dony thut orror und dìsordor uro pormunont louturos ol tho nuturuí voríd und
uíí humun undortukìngs ìn purtìcuíur. \o bocomo compíucont und luìí to tuko provontu-
tìvo uctìon. Cood ìnvostìgutìon ol uccìdonts, vhoro ìt tukos píuco, tonds uímost ìnvurì-
ubíy to shov thut luìíuros to provont thom uro rootod oìthor ìn vouknossos ìn rìsk
ussossmont or ìn tho ìmpíomontutìon ol controí mousuros.
MANAClNC HLAL1H AND SAlL1Y A1 \CkK
Il is oslinalod by lho HoaIlh and Safoly Exoculivo (HSE) lhal in lho UK aboul 500
poopIo aro IiIIod al vorI ovory yoar and sovoraI hundrod lhousand noro aro in¡urod
or suffor iII-hoaIlh. Il is aIso oslinalod lhal, aparl fron lho pain and nisory causod lo
lhoso diroclIy or indiroclIy concornod, lho lolaI cosl lo Brilish onpIoyors of vorI-
roIalod in¡ury and iIInoss oxcoods £4 biIIion a yoar.
Tho achiovononl of a hoaIlhy and safo pIaco of vorI and lho oIininalion lo lho
naxinun oxlonl possibIo of hazards lo hoaIlh and safoly aro lho rosponsibiIily of
ovoryono onpIoyod in an organizalion, as voII as lhoso vorIing lhoro undor
conlracl. Bul lho onus is on nanagononl lo achiovo and indood go boyond lho high
slandard in hoaIlh and safoly nallors roquirod by lho IogisIalion ÷ lho HoaIlh and
Safoly al WorI olc. Acl in 1974 and lho various roguIalions Iaid dovn in lho Codos of
Iraclico.
Tho inporlanco of hoaIlhy and safo poIicios and praclicos is, sadIy, oflon undor-
oslinalod by lhoso concornod vilh nanaging businossos and by individuaI
nanagors vilhin lhoso businossos. Bul il cannol bo onphasizod loo slrongIy lhal
lho provonlion of accidonls and oIininalion of hoaIlh and safoly hazards aro a
prino rosponsibiIily of nanagononl and nanagors in ordor lo nininizo sufforing
and Ioss.
1HL lMlCk1ANCL Cl HLAL1H AND SAlL1Y lN 1HL
\CkKlLACL
Tho achiovononl of lho highosl slandards of hoaIlh and safoly in lho vorIpIaco is
inporlanl bocauso lho oIininalion, or al Ioasl nininizalion, of hoaIlh and safoly
hazards and risIs is lho noraI as voII as lho IogaI rosponsibiIily of onpIoyors ÷ lhis is
830 Houíth, suloty und voíluro
lho ovor-riding roason. CIoso and conlinuous allonlion lo hoaIlh and safoly is
inporlanl bocauso iII-hoaIlh and in¡urios infIiclod by lho syslon of vorI or vorIing
condilions causo sufforing and Ioss lo individuaIs and lhoir dopondanls. In addilion,
accidonls and absoncos lhrough iII-hoaIlh or in¡urios rosuIl in Iossos and danago for
lho organizalion. This ´businoss' roason is vory nuch Ioss significanl lhan lho
´hunan' roasons givon abovo bul il is sliII a considoralion, aIboil a langonliaI ono.
As doscribod in lhis chaplor, nanaging hoaIlh and safoly al vorI is a nallor of:
dovoIoping hoaIlh and safoly poIicios,
conducling risI assossnonls vhich idonlify hazards and assoss lho risIs allachod
lo lhon,
carrying oul hoaIlh and safoly audils and inspoclions,
inpIononling occupalionaI hoaIlh progrannos,
nanaging slross,
provonling accidonls,
noasuring hoaIlh and safoly porfornanco,
connunicaling lho nood for good hoaIlh and safoly praclicos,
lraining in good hoaIlh and safoly praclicos,
organizing hoaIlh and safoly.
ßLNLll1S Cl \CkKlLACL HLAL1H AND SAlL1Y
Rosoarch by lho HoaIlh and Safoly Exoculivo (2004a) in 19 caso-sludy organizalions
such as AslraZonoca, Sovorn Tronl Walor and Transco, oslabIishod lhal lho langibIo
bonofils fron bollor hoaIlh and safoly nanagononl incIudo highor produclivily,
Iovor absonco, avoiding lho cosl of accidonls and Iiligalion, nooling cIionl donands,
and inprovod slaff noraIo and onpIoyoo roIalions. Thoso organizalions havo
nanagod lo ovorcono lho connon porcoplion lhal hoaIlh and safoly is a conpIianco
or slaff voIfaro issuo, and uso inilialivos in lhis aroa lo add vaIuo lo lho businoss.
EnpIoyors in lho sludy nado a nunbor of hoadIino savings fron invosling in occu-
palionaI hoaIlh and safoly:
RoIIs Royco savod £11 niIIion lhrough inprovod absonco nanagononl,
in ono nonlh, Sl BarlhoIonov's HospilaI and lho London NHS Trusl rocoupod
lho cosl of fIu in¡oclions for slaff,
nanuaI-handIing in¡urios voro oIininalod and lho rosuIlanl Iosl hours roducod lo
zoro al furniluro rolaiIor MFI,
Houíth und suloty 83l
Brilish IoIylhono Induslrios savod £12 for ovory £1 sponl on nanuaI handIing
inprovononls,
Tho Iorl of London Aulhorily cul absonco by 70 por conl.
HLAL1H AND SAlL1Y lCLlClLS
Wrillon hoaIlh and safoly poIicios aro roquirod lo dononslralo lhal lop nanagononl
is concornod aboul lho proloclion of lho organizalion's onpIoyoos fron hazards al
vorI and lo indicalo hov lhis proloclion viII bo providod. Thoy aro, lhoroforo,
firsl, a docIaralion of inlonl, socond, a dofinilion of lho noans by vhich lhal inlonl
viII bo roaIizod, and lhird, a slalononl of lho guidoIinos lhal shouId bo foIIovod by
ovoryono concornod ÷ vhich noans aII onpIoyoos ÷ in inpIononling lho poIicy.
Tho poIicy slalononl shouId consisl of lhroo parls:
lho gonoraI poIicy slalononl,
lho doscriplion of lho organizalion for hoaIlh and safoly,
dolaiIs of arrangononls for inpIononling lho poIicy.
Thc gcncraí poííc, ·|a|cmcn|
Tho gonoraI poIicy slalononl shouId bo a docIaralion of lho inlonlion of lho onpIoyor
lo safoguard lho hoaIlh and safoly of onpIoyoos. Il shouId onphasizo four funda-
nonlaI poinls:
lhal lho safoly of onpIoyoos and lho pubIic is of paranounl inporlanco,
lhal safoly laIos procodonco ovor oxpodioncy,
lhal ovory offorl viII bo nado lo invoIvo aII nanagors, loan Ioadors and
onpIoyoos in lho dovoIopnonl and inpIononlalion of hoaIlh and safoly proco-
duros,
lhal hoaIlh and safoly IogisIalion viII bo conpIiod vilh in lho spiril as voII as lho
Iollor of lho Iav.
Crganí2a|íon
This soclion of lho poIicy slalononl shouId doscribo lho hoaIlh and safoly organiza-
lion of lho conpany lhrough vhich high slandards aro sol and achiovod by poopIo al
aII IovoIs in lho organizalion.
This slalononl shouId undorIino lho uIlinalo rosponsibiIily of lop nanagononl
for lho hoaIlh and safoly porfornanco of lho organizalion. Il shouId lhon indicalo
hov Ioy nanagononl porsonnoI aro hoId accounlabIo for porfornanco in lhoir aroas.
Tho roIo of safoly roprosonlalivos and safoly connilloos shouId bo dofinod, and lho
dulios of spociaIisls such as lho safoly advisor and lho nodicaI officor shouId bo
sunnarizod.
CCNDLC1lNC klSK ASSLSSMLN1S
Vha| í· a rí·| a··c··mcn|·
RisI assossnonls aro concornod vilh lho idonlificalion of hazards and lho anaIysis of
lho risIs allachod lo lhon.
A |czcr! is anylhing lhal can causo harn (og vorIing on roofs, Iifling hoavy
ob¡ocls, chonicaIs, oIoclricily olc). A ris| is lho chanco, Iargo or snaII, of harn acluaIIy
boing dono by lho hazard. RisI assossnonls aro concornod vilh IooIing for hazards
and oslinaling lho IovoI of risI associalod vilh lhon. As suggoslod by HoIl and
Androvs (1993), risI can bo caIcuIalod by nuIlipIying a sovorily oslinalo by a proba-
biIily oslinalo. Thal is, risI = sovorily  probabiIily.
Tho purposo of risI assossnonls is, of courso, lo inilialo provonlivo aclion. Thoy
onabIo conlroI noasuros lo bo dovisod on lho basis of an undorslanding of lho roIalivo
inporlanco of risIs. RisI assossnonls nusl bo rocordod if lhoro aro fivo or noro
onpIoyoos.
Thoro aro lvo lypos of risI assossnonl. Tho firsl is ¡ucniiiciitc ris| csscssmcni,
vhich producos an ob¡oclivo probabiIily oslinalo basod upon risI infornalion lhal is
innodialoIy appIicabIo lo lho circunslancos in vhich lho risI occurs. Tho socond is
¡ucliiciitc ris| csscssmcni, vhich is noro sub¡oclivo and is basod on ¡udgononl bacIod
by gonoraIizod dala. Quanlilalivo risI assossnonl is proforabIo if lho spocific dala aro
avaiIabIo. QuaIilalivo risI assossnonl nay bo accoplabIo if lhoro aro IillIo or no
spocific dala as Iong as il is nado syslonalicaIIy on lho basis of an anaIysis of vorIing
condilions and hazards and infornod ¡udgononl of lho IiIoIihood of harn acluaIIy
boing dono.
Loo|íng for ha2ard·
Tho foIIoving, as suggoslod by lho HSE and olhors, aro lypicaI aclivilios vhoro acci-
donls happon or lhoro aro high risIs:
rocoipl of rav naloriaIs, og Iifling, carrying,
slacIing and slorago, og faIIing naloriaIs,
Houíth und suloty 833
novononl of poopIo and naloriaIs, og faIIs, coIIisions,
procossing of rav naloriaIs, og oxposuro lo loxic subslancos,
nainlonanco of buiIdings, og roof vorI, gullor cIoaning,
nainlonanco of pIanl and nachinory, og Iifling lacIIo, inslaIIalion of oquipnonl,
using oIoclricily, og using hand looIs, oxlonsion Ioads,
oporaling nachinos, og oporaling vilhoul sufficionl cIoaranco, or al an unsafo
spood, nol using safoly dovicos,
faiIuro lo voar proloclivo oquipnonl, og hals, bools, cIolhing,
dislribulion of finishod ¡obs, og novononl of vohicIos,
doaIing vilh onorgoncios, og spiIIagos, firos, oxpIosions,
hoaIlh hazards arising fron lho uso of oquipnonl or nolhods of vorIing, og
VDUs, ropolilivo slrain in¡urios fron badIy dosignod vorI slalions or vorIing
praclicos.
Tho HSE suggosls lhal nosl accidonls aro causod by a fov Ioy aclivilios. Il advisos
lhal assossors shouId conconlralo iniliaIIy on lhoso lhal couId causo sorious harn.
Oporalions such as roof vorI, nainlonanco and lransporl novononl causo far noro
doalhs and in¡urios oach yoar lhan nany nainslroan aclivilios.
Whon carrying oul a risI assossnonl il is aIso nocossary lo considor vho nighl bo
harnod, og onpIoyoos, visilors (incIuding cIoanors and conlraclors and lho pubIic
vhon caIIing in lo buy producls or onIisl sorvicos).
Hazards shouId bo ranIod according lo lhoir polonliaI sovorily as a basis for
producing ono sido of lho risI oqualion. A sinpIo lhroo-poinl scaIo can bo usod such
as Íov', ńodoralo' and ´high'. A noro conpIox sovorily raling scaIo has boon
proposod by HoIl and Androvs (1993), as foIIovs:
1. Ccicsircp|ic ÷ inninonl dangor oxisls, hazard capabIo of causing doalh and
iIInoss on a vido scaIo.
2. Criiiccl ÷ hazard can rosuIl in sorious iIInoss, sovoro in¡ury, proporly and oquip-
nonl danago.
3. Mcrgincl ÷ hazard can causo iIInoss, in¡ury, or oquipnonl danago, bul lho rosuIls
vouId nol bo oxpoclod lo bo sorious.
4. Ncgligi|lc ÷ hazard viII nol rosuIl in sorious in¡ury or iIInoss, ronolo possibiIily of
danago boyond ninor firsl-aid caso.
A··c··íng |hc rí·|
Whon lho hazards havo boon idonlifiod il is nocossary lo assoss hov high lho risIs aro.
Tho HSE suggosls lhal lhis invoIvos ansvoring lhroo quoslions:
Whal is lho vorsl rosuIl`
Hov IiIoIy is il lo happon`
Hov nany poopIo couId bo hurl if lhings go vrong`
A probabiIily raling syslon can bo usod such as lho ono roconnondod by HoIl and
Androvs:
1. Prc|c|lc ÷ IiIoIy lo occur innodialoIy or shorlIy.
2. Rccscnc|lq prc|c|lc ÷ probabIy viII occur in lino.
3. Rcmcic ÷ nay occur in lino.
4. |xircmclq rcmcic ÷ unIiIoIy lo occur.
Ta|íng ac|íon
RisI assossnonl shouId Ioad lo aclion. Tho lypo of aclion can bo ranIod in ordor of
polonliaI offoclivonoss in lho forn of a ´safoly procodonco soquonco' as proposod by
HoIl and Androvs:
Hczcr! climinciicn ÷ uso of aIlornalivos, dosign inprovononls, chango of
procoss.
Su|siiiuiicn ÷ for oxanpIo, ropIacononl of a chonicaI vilh ono vhich is Ioss
risIy.
Usc cj |crricrs ÷ ronoving lho hazard fron lho vorIor or ronoving lho vorIor
fron lho hazard.
Usc cj prccc!urcs ÷ Iinilalion of oxposuro, diIulion of oxposuro, safo syslons of
vorI (lhoso dopond on hunan rosponso).
Usc cj ucrning sqsicms ÷ signs, inslruclions, IaboIs (lhoso aIso dopond on hunan
rosponso).
Usc cj pcrscncl prcicciitc clci|ing ÷ lhis doponds on hunan rosponso and is usod as
a sido noasuro onIy vhon aII olhor oplions havo boon oxhauslod.
\oní|oríng and cvaíua|íon
RisI assossnonl is nol conpIolod vhon aclion has boon inilialod. Il is ossonliaI lo
nonilor lho hazard and ovaIualo lho offoclivonoss of lho aclion in oIininaling il or al
Ioasl roducing il lo an accoplabIo IovoI.
HLAL1H AND SAlL1Y ALDl1S
Vha| í· a hcaí|h and ·afc|, audí|·
RisI assossnonls idonlify spocific hazards and quanlify lho risIs allachod lo lhon.
HoaIlh and safoly audils provido for a nuch noro conprohonsivo roviov of aII
aspocls of hoaIlh and safoly poIicios, and procoduros and praclicos progrannos. As
dofinod by Saundors (1992):
A suloty uudìt vìíí oxumìno tho vhoío orgunìsutìon ìn ordor to tost vhothor ìt ìs mootìng
ìts suloty uìms und ob¡octìvos. lt vìíí oxumìno hìorurchìos, suloty píunnìng procossos,
docìsìon-mukìng, doíogutìon, poíìcy-mukìng und ìmpíomontutìon us voíí us uíí urous ol
suloty progrummo píunnìng.
Vho carríc· ou| a hcaí|h and ·afc|, audí|·
Safoly audils can bo conduclod by safoly advisors and/or porsonnoI spociaIisls bul
lho noro nanagors, onpIoyoos and lrado union roprosonlalivos aro invoIvod, lho
bollor. Audils aro oflon carriod oul undor lho auspicos of a hoaIlh and safoly
connilloo vilh ils nonbors laIing an aclivo parl in conducling lhon.
Managors can aIso bo hoId rosponsibIo for conducling audils vilhin lhoir doparl-
nonls and, ovon bollor, individuaI nonbors of lhoso doparlnonls can bo lrainod lo
carry oul audils in parlicuIar aroas. Tho conducl of an audil viII bo faciIilalod if chocI
Iisls aro proparod and a sinpIo forn usod lo rocord rosuIls.
Sono organizalions aIso uso oulsido agoncios such as lho Brilish Safoly Inslilulo lo
conducl indopondonl audils.
Vha| í· covcrcd b, a hcaí|h and ·afc|, audí|·
AhoaIlh and safoly audil shouId covor:

Do hoaIlh and safoly poIicios nool IogaI roquirononls`
Aro sonior nanagors connillod lo hoaIlh and safoly`
Hov connillod aro olhor nanagors, loan Ioadors and suporvisors lo hoaIlh and
safoly`
Is lhoro a hoaIlh and safoly connilloo` If nol, vhy nol`
Hov offoclivo is lho connilloo in golling lhings dono`
Froccdurcs:
Hov offoclivoIy do lho procoduros:
supporl lho inpIononlalion of hoaIlh and safoly poIicios`
connunicalo lho nood for good hoaIlh and safoly praclicos`
provido for syslonalic risI assossnonls`
onsuro lhal accidonls aro invosligalod lhoroughIy`
rocord dala on hoaIlh and safoly vhich aro usod lo ovaIualo porfornanco and
inilialo aclion`
onsuro lhal hoaIlh and safoly considoralions aro givon propor voighl vhon
dosigning syslons of vorI or nanufacluring and oporalionaI procossos (incIud-
ing lho dosign of oquipnonl and vorI slalions, lho spocificalion for lho producl
or sorvico, and lho uso of naloriaIs)`
provido safoly lraining, ospociaIIy induclion lraining and lraining vhon ¡obs or
vorIing nolhods aro changod`
Safcty practiccs
To vhal oxlonl do hoaIlh and safoly praclicos in aII aroas of lho organizalion
conforn lo lho gonoraI roquirononls of lho HoaIlh and Safoly al WorI Acl and lho
spocific roquirononls of lho various roguIalions and codos of praclico`
Whal risI assossnonls havo boon carriod oul` Whal voro lho findings` Whal
aclions voro laIon`
Whal is lho hoaIlh and safoly porfornanco of lho organizalion as shovn by lho
porfornanco indicalors` Is lho lrond posilivo or nogalivo` If lho Iallor, vhal is
boing dono aboul il`
Hov lhoroughIy aro accidonls invosligalod` Whal slops havo boon laIon lo
provonl lhoir rocurronco`
Whal is lho ovidonco lhal nanagors and suporvisors aro roaIIy concornod aboul
hoaIlh and safoly`
Vha| ·houíd bc donc ví|h |hc audí|·
Tho audil shouId covor lho quoslions abovo bul ils purposo is lo gonoralo aclion.
Thoso conducling lho audil viII havo lo assoss priorilios and cosls and drav up
aclion progrannos for approvaI by lho Board.
SAlL1Y lNSlLC1lCNS
Safoly inspoclions aro dosignod lo oxanino a spocific aroa of lho organizalion ÷ opor-
alionaI doparlnonl or nanufacluring procoss ÷ in ordor lo Iocalo and dofino any
fauIls in lho syslon, oquipnonl, pIanl or nachinos, or any oporalionaI orrors lhal
nighl bo lho sourco of accidonls. Safoly inspoclions shouId bo carriod oul on a roguIar
and syslonalic basis by Iino nanagors and suporvisors vilh lho advico and hoIp of
hoaIlh and safoly advisors. Tho slops lo bo laIon in carrying oul safoly inspoclions aro
as foIIovs:
AIIocalo lho rosponsibiIily for conducling lho inspoclion.
Dofino lho poinls lo bo covorod in lho forn of a chocIIisl.
Divido lho doparlnonl or pIanl inlo aroas and Iisl lho poinls lo vhich allonlion
noods lo bo givon in oach aroa.
Dofino lho froquoncy vilh vhich inspoclions shouId bo carriod oul ÷ daiIy in
crilicaI aroas.
Uso lho chocI Iisls as lho basis for lho inspoclion.
Carry oul sanpIo or spol chocIs on a randon basis.
Carry oul spociaI invosligalions as nocossary lo doaI vilh spociaI probIons such
as oporaling nachinory vilhoul guards lo incroaso lhroughpul.
Sol up a roporling syslon (a forn shouId bo usod for rocording lho rosuIls of
inspoclions).
Sol up a syslon for noniloring lhal safoly inspoclions aro boing conduclod
proporIy and on schoduIo and lhal corroclivo aclion has boon laIon vhoro
nocossary.
CCCLlA1lCNAL HLAL1H lkCCkAMMLS
AInosl 20 niIIion vorIing days a yoar aro Iosl bocauso of vorI-roIalod iIInoss. Tvo
niIIion poopIo say lhoy suffor fron an iIInoss lhoy boIiovo vas causod by lhoir vorI.
MuscuIar disordors, incIuding ropolilivo slrain in¡ury and bacI pain, aro by far lho
nosl connonIy roporlod iIInossos vilh 1.2 niIIion affoclod, and lho nunbors aro
rising. Tho noxl biggosl probIon is slross, vhich 500,000 poopIo say is so bad lhal il is
naIing lhon iII. Thoso aro Iargo and dislurbing figuros and lhoy shov lhal high
priorily nusl bo givon lo croaling and nainlaining progrannos for lho inprovononl
of occupalionaI hoaIlh.
Tho conlroI of occupalionaI hoaIlh and hygiono probIons can bo achiovod by:
oIininaling lho hazard al sourco lhrough dosign and procoss onginooring,
isoIaling hazardous procossos and subslancos so lhal vorIors do nol cono inlo
conlacl vilh lhon,
changing lho procossos or subslancos usod, lo pronolo bollor proloclion or oIini-
nalo lho risI,
providing proloclivo oquipnonl, bul onIy if changos lo lho dosign, procoss or
spocificalion cannol conpIoloIy ronovo lho hazard,
lraining vorIors lo avoid risI,
nainlaining pIanl and oquipnonl lo oIininalo lho possibiIily of harnfuI
onissions, conlroIIing lho uso of loxic subslancos and oIininaling radialion
hazards,
good housoIooping lo Ioop pronisos and nachinory cIoan and froo fron loxic
subslancos,
roguIar inspoclions lo onsuro lhal polonliaI hoaIlh risIs aro idonlifiod in good
lino,
pro-onpIoynonl nodicaI oxaninalions and roguIar chocIs on lhoso oxposod lo
risI,
onsuring lhal orgononic considoralions (io, lhoso concorning lho dosign and uso
of oquipnonl, nachinos, procossos and vorIslalions) aro laIon inlo accounl in
dosign spocificalions, oslabIishing vorI roulinos and lraining ÷ lhis is parlicuIarIy
inporlanl as a noans of nininizing lho incidonco of ropolilivo slrain in¡ury
(RSI),
nainlaining provonlivo nodicino progrannos vhich dovoIop hoaIlh slandards
for oach ¡ob and invoIvo roguIar audils of polonliaI hoaIlh hazards and roguIar
oxaninalions for anyono al risI.
IarlicuIar allonlion noods lo bo oxorcisod on lho conlroI of noiso, faliguo and slross.
ConlroI of slross shouId bo rogardod as a na¡or parl of any occupalionaI hoaIlh
progranno.
MANAClNC S1kLSS
Thoro aro four nain roasons vhy organizalions shouId laIo accounl of slross and do
sonolhing aboul il:
1. Thoy havo lho sociaI rosponsibiIily lo provido a good quaIily of vorIing Iifo.
2. Excossivo slross causos iIInoss.
3. Slross can rosuIl in inabiIily lo copo vilh lho donands of lho ¡ob, vhich, of
courso, croalos noro slross.
4. Excossivo slross can roduco onpIoyoo offoclivonoss and lhoroforo organizalionaI
porfornanco.
Tho vays in vhich slross can bo nanagod by an organizalion incIudo:
jc| !csign ÷ cIarifying roIos, roducing lho dangor of roIo anbiguily and confIicl
and giving poopIo noro aulonony vilhin a dofinod slrucluro lo nanago lhoir
rosponsibiIilios,
icrgcis cn! pcrjcrmcncc sicn!cr!s ÷ solling roasonabIo and achiovabIo largols vhich
nay slrolch poopIo bul do nol pIaco inpossibIo burdons on lhon,
plcccmcni ÷ laIing caro lo pIaco poopIo in ¡obs lhal aro vilhin lhoir capabiIilios,
ccrccr !ctclcpmcni ÷ pIanning caroors and pronoling slaff in accordanco vilh lhoir
capabiIilios, laIing caro nol lo ovor- or undor-pronolo,
pcrjcrmcncc mcncgcmcni prcccsscs, vhich aIIov a diaIoguo lo laIo pIaco bolvoon
nanagors and individuaIs aboul lho Iallor's vorI, probIons and anbilions,
ccunsclling ÷ giving individuaIs lho opporlunily lo laII aboul lhoir probIons vilh
a nonbor of lho porsonnoI doparlnonl or lho conpany nodicaI officor, or
lhrough an onpIoyoo assislanco progranno,
mcncgcmcni ircining in porfornanco roviov and counsoIIing lochniquos and in
vhal nanagors can do lo aIIovialo lhoir ovn slross and roduco il in olhors,
ucr|÷lijc |clcncc pclicics vhich laIo accounl of lho prossuros on onpIoyoos vho
havo rosponsibiIilios as paronls, parlnors or carors, and vhich can incIudo such
provisions as spociaI Ioavo and fIoxibIo vorIing hours.
Tho HoaIlh and Safoly Exoculivo (2003) has nanod lho foIIoving ´boacons of oxcoI-
Ionco' for slross provonlion:
Scnicr mcncgcmcni ccmmiimcni ÷ slross inlorvonlions aro unIiIoIy lo bo inpIo-
nonlod succossfuIIy vilhoul lho Iong-lorn connilnonl of nanagononl.
Pcriicipciitc cpprccc| ÷ invoIving onpIoyoos fron aII IovoIs of lho organizalion al
ovory slago in a slross nanagononl progranno incroasos lho IiIoIihood of a
succossfuI oulcono.
Sircss prctcniicn sircicgq ÷ lhis shouId covor lho ains of inlorvonlions, lasIs,
rosponsibiIilios and rosourcos avaiIabIo.
Ris| csscssmcni cn! ics| cnclqsis ÷ an appraisaI of vorI aclivilios shouId onabIo an
onpIoyor lo rocognizo slross hazards boforo inlorvonlions aro dosignod.
Wcr|-rclcic! cn! ucr|cr-rclcic! prctcniicn cn! mcncgcmcni ÷ inlorvonlions shouId
bo dosignod lo lacIIo lho causos of slross onanaling fron lho vorI onvironnonl
and supporl individuaIs vho aro nol proloclod by lho firsl sol of inlorvonlions, or
vho aro sub¡ocl lo spociaI slrossors.
ACClDLN1 lkLVLN1lCN
Tho provonlion of accidonls is achiovod by:
idonlifying lho causos of accidonls and lho condilions undor vhich lhoy aro nosl
IiIoIy lo occur,
laIing accounl of safoly faclors al lho dosign slago ÷ buiIding safoly inlo lho
syslon,
dosigning safoly oquipnonl and proloclivo dovicos and providing proloclivo
cIolhing,
carrying oul roguIar risI assossnonls audils, inspoclions and chocIs and laIing
aclion lo oIininalo risIs,
invosligaling aII accidonls rosuIling in danago lo oslabIish lho causo and lo
inilialo corroclivo aclion,
nainlaining good rocords and slalislics in ordor lo idonlify probIon aroas and
unsalisfaclory lronds,
conducling a conlinuous progranno of oducalion and lraining on safo vorIing
habils and nolhods of avoiding accidonls,
Ioadorship and nolivalion ÷ oncouraging nolhods of Ioadorship and nolivalion
lhal do nol pIaco oxcossivo donands on poopIo.
MLASLklNC HLAL1H AND SAlL1Y lLklCkMANCL
Tho saying lhal íf you can'l noasuro il you can'l nanago il' is lolaIIy appIicabIo lo
hoaIlh and safoly. Il is ossonliaI lo Inov vhal is happoning, and il is ovon noro osson-
liaI lo noasuro lronds as a noans of idonlifying in good lino vhoro aclions aro nocos-
sary.
Tho nosl connon noasuros aro:
1|c jrc¡ucncq rcic.
Nunbor of in¡urios  100,000
Nunbor of hours vorIod
1|c inci!cncc rcic.
Nunbor of in¡urios  1,000
Avorago nunbor onpIoyod during lho poriod
Houíth und suloty 84l
1|c sctcriiq rcic ÷ lho days Iosl lhrough accidonls or occupalion hoaIlh probIons
por 1,000,000 hours vorIod.
Sono organizalions adopl a ´lolaI Ioss conlroI' approach vhich covors lho
cosl of accidonls lo lho businoss undor such hoadings as pay lo poopIo off vorI,
danago lo pIanl or oquipnonl and Ioss of produclion. A cosl sovorily ralo
can lhon bo caIcuIalod, vhich is lho lolaI cosl of accidonls por 1,000,000 hours
vorIod.
CCMMLNlCA1lNC 1HL NLLD lCk ßL11Lk HLAL1H
AND SAlL1Y lkAC1lCLS
As HoIl and Androvs (1993) obsorvo, various forns of propaganda soIIing lho hoaIlh
and safoly nossago havo boon usod for nany yoars, aIlhough: ´Thoy aro nov vidoIy
foIl lo bo of IillIo vaIuo in noasurabIo lorns in changing bohaviour and infIuoncing
alliludos lo hoaIlh and safoly issuos.' Bul lhoy boIiovo lhal il is sliII nocossary lo
doIivor lho nossago lhal hoaIlh and safoly is inporlanl as Iong as lhis suppIononls
ralhor lhan ropIacos olhor inilialivos. Thoy suggosl lhal lho foIIoving slops can bo
laIon lo incroaso lho offoclivonoss of safoly nossagos:
Atci! ncgciitcs ÷ succossfuI safoly propaganda shouId conlain posilivo nossagos,
nol varnings of lho unpIoasanl consoquoncos of aclions.
|xpcsc ccrrccilq ÷ addross lho nossago lo lho righl poopIo al lho poinl of dangor.
Usc ciicniicn-gciiing icc|ni¡ucs ccrcjullq ÷ Iurid inagos nay onIy bo rononborod
for vhal lhoy aro, nol for lho nossago lhoy aro lrying lo convoy.
Mcximizc ccmprc|cnsicn ÷ nossagos shouId bo sinpIo and spocific.
Mcsscgcs musi |c |clictc|lc ÷ lhoy shouId addross roaI issuos and bo porcoivod as
boing doIivorod by poopIo (io. nanagors) vho boIiovo in vhal lhoy say and aro
doing sonolhing aboul il.
Mcsscgcs musi pcini i|c ucq ic cciicn ÷ lho nosl offoclivo nossagos caII for posilivo
aclions lhal can bo achiovod by lho rocoivors and viII offor lhon a langibIo
bonofil.
Approachc· |o brícfíng ·|aff on |hc ímpor|ancc of hcaí|h and ·afc|,
Advico lo a group of slaff on lho inporlanco of hoaIlh and safoly in lho vorIpIaco
nusl bo basod on a lhorough undorslanding of lho organizalion's hoaIlh and safoly
poIicios and procoduros and an approcialion of lho parlicuIar faclors affocling lho
hoaIlh and safoly of lho group of poopIo concornod. Tho Iallor can bo basod on
infornalion providod by risI assossnonls, safoly audils and accidonl roporls. Bul lho
advico nusl bo posilivo ÷ vhy hoaIlh and safoly is inporlanl and hov accidonls can
bo provonlod. Tho advico shouId nol bo ovor-voighlod by avfuI varnings.
Tho poinls lo bo nado incIudo:
a roviov of lho hoaIlh and safoly poIicios of lho organizalion vilh oxpIanalions of
lho roasoning bohind lhon and a posilivo slalononl of nanagononl's boIiof lhal
hoaIlh and safoly is a na¡or considoralion bocauso (1) il diroclIy affocls lho voII-
boing of aII concornod, and (2) il can, and doos, nininizo sufforing and Ioss,
a roviov of lho procoduros usod by lho organizalion for lho businoss as a vhoIo
and in lho parlicuIar aroa lo assoss risIs and audil safoly posilion,
an oxpIanalion of lho roIos of lho nonbors of lho group in carrying oul lhoir vorI
safoIy and giving fuII considoralion lo lho safoly of olhors,
a roiloralion of lho slalononl lhal ono of lho coro vaIuos of lho organizalion is
lho nainlonanco of safo syslons of vorI and lho pronolion of safo vorIing
praclicos.
HLAL1H AND SAlL1Y 1kAlNlNC
HoaIlh and safoly lraining is a Ioy parl of lho provonlalivo progranno. Il shouId slarl
as parl of lho induclion courso. Il shouId aIso laIo pIaco foIIoving a lransfor lo a nov
¡ob or a chango in vorIing nolhods. Safoly lraining spoIIs oul lho ruIos and providos
infornalion on polonliaI hazards and hov lo avoid lhon. Furlhor rofroshor lraining
shouId bo providod and spociaI coursos Iaid on lo doaI vilh nov aspocls of hoaIlh and
safoly or aroas in vhich safoly probIons havo onorgod.
CkCANlZlNC HLAL1H AND SAlL1Y
HoaIlh and safoly concorns ovoryono in an oslabIishnonl aIlhough lho nain rospon-
sibiIily Iios vilh nanagononl in gonoraI and individuaI nanagors in parlicuIar. Tho
spocific roIos aro sunnarizod boIov:
 dovoIops and inpIononls hoaIlh and safoly poIicios and onsuros
lhal procoduros for carrying oul risI assossnonls, safoly audils and inspoclions
aro inpIononlod. InporlanlIy, nanagononl has lho duly of noniloring and
ovaIualing hoaIlh and safoly porfornanco and laIing corroclivo aclion as
nocossary.
Mcncgcrs can oxorl lho groalor infIuonco on hoaIlh and safoly. Thoy aro in inno-
dialo conlroI and il is up lo lhon lo Ioop a conslanl valch for unsafo condilions or
praclicos and lo laIo innodialo aclion. Thoy aro aIso diroclIy rosponsibIo for
onsuring lhal onpIoyoos aro conscious of hoaIlh and safoly hazards and do nol
laIo risIs.
|mplcqccs shouId bo avaro of vhal conslilulos safo vorIing praclicos as lhoy
affocl lhon and lhoir foIIov vorIors. WhiIo nanagononl and nanagors havo lho
duly lo connunicalo and lrain, individuaIs aIso havo lho duly lo laIo accounl of
vhal lhoy havo hoard and Ioarnod in lho vays lhoy carry oul lhoir vorI.
Hccli| cn! scjciq c!tiscrs adviso on poIicios and procoduros and on hoaIlhy and
safo nolhods of vorIing. Thoy conducl risI assossnonls and safoly audils and
invosligalions inlo accidonls in con¡unclion vilh nanagors and hoaIlh and safoly
roprosonlalivos, nainlain slalislics and roporl on lronds and nocossary aclions.
Mc!iccl c!tiscrs havo lvo funclions: provonlivo and cIinicaI. Tho provonlivo func-
lion is nosl inporlanl, ospociaIIy on occupalionaI hoaIlh nallors. Tho cIinicaI
funclion is lo doaI vilh induslriaI accidonls and disoasos and lo adviso on lho
slops nocossary lo rocovor fron in¡ury or iIInoss arising fron vorI. Thoy do nol
usurp lho roIo of lho faniIy doclor in non-vorI-roIalod iIInossos.
Scjciq ccmmiiiccs consisling of hoaIlh and safoly roprosonlalivos adviso on hoaIlh
and safoly poIicios and procoduros, hoIp in conducling risI assossnonls and
safoly audils, and naIo suggoslions on inproving hoaIlh and safoly por-
fornanco.
\oíluro sorvìcos
WoIfaro sorvicos nay bo providod for nallors concorning onpIoyoos vhich aro nol
innodialoIy connoclod vilh lhoir ¡obs aIlhough lhoy nay bo connoclod gonoraIIy
vilh lhoir pIaco of vorI. Thoso nallors viII incIudo individuaI sorvicos roIaling lo
onpIoyoos' voIfaro such as privalo hoIp vilh counsoIIing on porsonaI probIons,
assislanco vilh probIons of hoaIlh or sicInoss and spociaI sorvicos for rolirod
onpIoyoos. Group sorvicos nay incIudo lho provision of sociaI and sporling aclivilios
and roslauranls. ChiId-caro faciIilios nay bo providod for individuaI onpIoyoos bul
on a coIIoclivo basis.
\HY lkCVlDL \LLlAkL SLkVlCLS:
Thoro aro argunonls againsl lho provision of voIfaro sorvicos. Thoy inpIy do-
gooding and lho HR fralornily has sponl nany yoars lrying lo shaIo off ils associalion
vilh vhal il, and olhors, IiIo lo lhinI of as al bosl poriphoraI and al vorsl rodundanl
voIfaro aclivilios. WoIfaro is providod by lho slalo sorvicos ÷ vhy shouId induslriaI,
connorciaI or pubIic soclor organizalions dupIicalo vhal is aIroady lhoro` Tho
privalo affairs of onpIoyoos and lhoir oul-of-vorI inlorosls shouId nol bo lho concorn
of lhoir onpIoyors. Il is soIfish lo nainlain Iargo pIaying fioIds and sporls paviIions if
lhoy aro going lo bo usod by a ninulo proporlion of slaff for a vory Iinilod poriod of

lino ÷ lho spaco and faciIilios couId bo bollor usod by lho connunily. Tho argunonl
lhal lho provision of onpIoyoo voIfaro sorvicos incroasos lho IoyaIly and nolivalion
of onpIoyoos has Iong boon oxpIodod. If such sorvicos aro usod al aII, lhoy aro laIon
for granlod. Graliludo, ovon if il oxisls, is nol a nolivaling faclor.
Tho caso againsl onpIoyoo voIfaro sorvicos is fornidabIo, lho Iasl poinl is parlicu-
IarIy loIIing and lhoro is sono lrulh in oach of lho olhors ÷ aIlhough lhoro aro Iinila-
lions lo lhoir vaIidily. Slalo voIfaro sorvicos aro, in lhoory, avaiIabIo lo aII, bul lho
abiIily of sociaI vorIors lo givo individuaI advico, ospociaIIy on probIons arising
fron vorI, is Iinilod in lorns of bolh lino and InovIodgo. Il is aII loo oasy for poopIo
lo faII inlo lho cracIs oxisling in lho docaying odifico of lho voIfaro slalo.
Tho caso for providing onpIoyoo voIfaro sorvicos rosls nainIy on lho abslracl
grounds of lho sociaI rosponsibiIily of organizalions for lhoso vho vorI in lhon. This
is nol palornaIisn in lho Viclorian sonso ÷ lurIoys al Chrislnas ÷ nor in lho lradilionaI
}apanoso sonso, vhoro lho vorIor's vhoIo Iifo conlros on lho onpIoyor. Ralhor, il is
sinpIy lho roaIizalion lhal in oxchango for offoring lhoir sorvicos, onpIoyoos aro onli-
lIod lo ralhor noro lhan lhoir pay, bonofils and hoaIlhy and safo syslons of vorI.
Thoy aro aIso onlilIod lo considoralion as hunan boings, ospociaIIy vhon il is ronon-
borod lhal nany of lhoir porsonaI probIons ariso in lho conloxl of vorI and aro bosl
doaIl vilh lhoro. IoopIo's vorrios and lho rosuIling slross nay voII ariso fron vorI
and lhoir concorns aboul socurily, nonoy, hoaIlh, and roIalionships vilh olhors. Bul
lhoy aIso bring lhoir porsonaI probIons lo vorI, and nany of lhoso cannol bo soIvod
vilhoul roforonco lo lho silualion lhoro ÷ lhoy nay roquiro lino off lo doaI vilh sicI
chiIdron or parlnors, or caro for roIalivos, or advico on hov lo soIvo lhoir probIons
and so nininizo inlorforonco vilh lhoir vorI.
Tho argunonl for onpIoyoo voIfaro sorvicos al vorI vas voII pul by Marlin
(1967):
Stull spond ut íoust huíl thoìr vukìng tìmo ut vork or ìn gottìng to ìt or íouvìng ìt. 1hoy
knov thoy contrìbuto to tho orgunìzutìon vhon thoy uro rousonubíy lroo lrom vorry, und
thoy looí, porhups ìnurtìcuíutoíy, thut vhon thoy uro ìn troubío thoy uro duo to got somo-
thìng buck lrom tho orgunìzutìon. loopío uro ontìtíod to bo troutod us luíí humun boìngs
vìth porsonuí noods, hopos und unxìotìos, thoy uro ompíoyod us poopío, thoy brìng
thomsoívos to vork, not ¡ust thoìr hunds, und thoy cunnot roudìíy íouvo thoìr troubíos ut
homo.
Tho sociaI argunonl for onpIoyoo voIfaro sorvicos is lho nosl conpoIIing ono, bul
lhoro is aIso an ocononic argunonl. Incroasos in noraIo or IoyaIly nay nol rosuIl in
connonsuralo or, indood, in any incroasos in produclivily, bul unduo anxioly can
rosuIl in roducod offoclivonoss. Evon if voIfaro sorvicos cannol incroaso individuaI
produclivily, lhoy can hoIp lo nininizo docroasos. Horzborg's lvo-faclor nodoI, in
offocl, pIacod voIfaro anong lho hygiono faclors, bul ho did nol undoroslinalo lho
inporlanco of ´hygiono' as a noans of oIininaling or al Ioasl roducing causos of
anxioly or dissalisfaclion.
Afurlhor praclicaI argunonl in favour of onpIoyoo voIfaro sorvicos is lhal a ropu-
lalion for shoving concorn hoIps lo inprovo lho inago of lho firn as a good
onpIoyor and lhus assisls in rocruilnonl. WoIfaro nay nol diroclIy incroaso produc-
livily, bul il nay incroaso connilnonl and hoIp in lho rolonlion of Ioy onpIoyoos.
A slrong caso for onpIoyoo voIfaro sorvicos lhoroforo oxisls, and lho roaI quoslion
is nol ´Why voIfaro`' bul ´Whal sorl of voIfaro`' This quoslion noods lo bo ansvorod
in gonoraI lorns boforo discussing lho lypo of voIfaro sorvicos lhal can bo providod
and hov lhoy shouId bo organizod.
\HA1 SCk1 Cl \LLlAkL SLkVlCLS:
WoIfaro sorvicos faII inlo lvo calogorios:
individuaI or porsonaI sorvicos in connoclion vilh sicInoss, boroavononl,
donoslic probIons, onpIoynonl probIons, and oIdorIy and rolirod onpIoyoos,
group sorvicos, vhich consisl of sporls and sociaI aclivilios, cIubs for rolirod slaff
and bonovoIonl organizalions.
|ríncípíc· of pcr·onaí ca·cvor|
IndividuaI sorvicos roquiro porsonaI casovorI, and lho nosl inporlanl principIo lo
adopl is lhal lhis vorI shouId ain lo hoIp individuaIs lo hoIp lhonsoIvos. Tho
onpIoyor, nanagor or HR spociaIisl shouId nol lry lo sland bolvoon individuaIs and
lhoir probIons by laIing lhon oul of lhoir hands. Enorgoncy aclion nay sonolinos
havo lo bo laIon on bohaIf of individuaIs, bul, if so, il shouId bo laIon in such a vay
lhal lhoy can Ialor copo vilh lhoir ovn difficuIlios. WoIfaro aclion nusl slarl on lho
basis lhal disongagononl viII laIo pIaco al lho oarIiosl possibIo nononl vhon indi-
viduaIs can, figuralivoIy, sland on lhoir ovn lvo fool. This doos nol noan lhal foIIov-
up aclion is unnocossary, bul il is onIy lo chocI lhal lhings aro going according lo
pIan, nol lo provido addilionaI hoIp unIoss sonolhing is soriousIy vrong.
IorsonaI sorvicos shouId bo providod vhon a nood is oslabIishod, and a voIfaro
nood oxisls vhoro il is cIoar lhal hoIp is roquirod, lhal il cannol bo givon noro offoc-
livoIy fron anolhor sourco, and lhal lho individuaI is IiIoIy lo bonofil fron lho
sorvicos lhal can bo offorod.
In an organizalionaI solling, an ossonliaI oIononl in porsonaI casovorI sorvicos is
confidonliaIily. Thoro is no poinl in offoring hoIp or advico lo poopIo if lhoy lhinI lhal
\oíluro sorvìcos 847
lhoir porsonaI probIons aro going lo bo rovoaIod lo olhors, possibIy lo lho dolrinonl
of lhoir fuluro caroors. This is lho argunonl for having spociaIizod voIfaro officors in
organizalions Iargo onough lo bo abIo lo afford lhon. Thoy can bo dolachod in a vay
lhal Iino nanagors and ovon porsonnoI nanagors cannol bo.
|ríncípíc· for provídíng group ·crvícc·
Group sorvicos, such as sporls or sociaI cIubs, shouId nol bo Iaid on bocauso lhoy
aro ´good for noraIo'. Thoro is no ovidonco lhal lhoy aro. Thoy aro coslIy and shouId
bo providod onIy if lhoro is a roaI nood and donand for lhon, arising fron a vory
slrong connunily spiril in a conpany or IacI of IocaI faciIilios. In lho Iallor caso,
lho faciIilios shouId bo sharod in an agrood and conlroIIod vay vilh lho IocaI
connunily.
lNDlVlDLAL SLkVlCLS
Síc|nc··
Thoso sorvicos ain lo provido hoIp and advico lo onpIoyoos absonl fron vorI for
Iong poriods bocauso of iIInoss. Tho praclicaI roason for providing lhon is lhal lhoy
shouId hoIp lo spood lho rolurn of lho onpIoyoo lo vorI, aIlhough il is nol parl of lho
onpIoyoo sorvicos funclion lo chocI up on possibIo naIingorors. Tho sociaI roason is
lo provido onpIoyoos vilh supporl and counsoI vhoro a nood oxisls. In lhis conloxl, a
nood oxisls vhoro onpIoyoos cannol hoIp lhonsoIvos vilhoul supporl and vhoro
such aid is nol forlhconing fron lho slalo nodicaI or voIfaro sorvicos or lho
onpIoyoos' ovn faniIios.
Noods can bo oslabIishod by Iooping in louch vilh an absonl onpIoyoo. This
shouId bo nol dono by rushing round as soon as anyono has boon absonl for noro
lhan, say, 10 days or has oxhauslod sicInoss bonofil fron vorI. Il is gonoraIIy bollor lo
vrilo lo sicI absonloos, oxprossing gonoraI concorn and good vishos for a spoody
rocovory and roninding lhon lhal lho firn can provido hoIp if lhoy vish, or sinpIy
asIing lhon if lhoy vouId IiIo sonoono lo visil lhon ÷ vilh a slanpod, addrossod
onvoIopo for lhoir ropIy. Such Iollors shouId proforabIy bo sonl by lho onpIoyoo's Iino
nanagor.
Thoro viII bo sono casos vhoro lho onpIoyoo is roIuclanl lo roquosl hoIp or a visil,
and lho conpany nay havo lo docido vholhor a visil shouId bo nado lo oslabIish if
hoIp is roquirod. This viII bo a nallor of ¡udgononl basod on lho Inovn facls aboul
onpIoyoos and lhoir circunslancos.
Visils can bo nado by lho Iino nanagor, a porsonnoI officor, or a spociaIizod fuII- or
parl-lino sicI visilor. Sono organizalions uso rolirod onpIoyoos for lhis purposo.
AIlornalivoIy, arrangononls can bo nado for a coIIoaguo lo pay lho visil. Tho ains of
lho visil shouId bo, firsl, lo shov onpIoyoos lhal lhoir firn and coIIoaguos aro
concornod aboul lhoir voIfaro, socond, lo aIIovialo any IonoIinoss lhoy nay fooI, and,
lhird, lo provido praclicaI advico or hoIp. Tho Iallor nay consisl of pulling lhon in
louch vilh suilabIo organizalions or onsuring lhal such organizalions aro infornod
and laIo aclion. Or noro innodialo hoIp nay bo providod lo doaI vilh prossing
donoslic probIons.
ßcrcavcmcn|
Boroavononl is a lino vhon nany poopIo nood aII lho hoIp and advico lhoy can gol.
Tho slalo voIfaro sorvicos nay nol bo abIo lo assisl and faniIios aro oflon non-oxislonl
or unhoIpfuI. EslabIishod voIfaro organizalions in induslry, connorco or lho pubIic
soclor allach a Iol of inporlanco lo lhis sorvico. Tho advico nay oflon bo no noro lhan
pulling lho boroavod onpIoyoo or lho vidov or vidovor of an onpIoyoo in louch
vilh lho righl organizalions, bul il is oflon oxlondod lo hoIp vilh funoraI arrango-
nonls and doaIing vilh viII and probalo nallors.
Domc·|íc probícm·
Donoslic probIons soon lho Ioasl IiIoIy aroa for onpIoyoo voIfaro sorvicos. Why
shouId lho organizalion inlorvono, ovon vhon asIod, in puroIy privalo nallors` If, for
oxanpIo, onpIoyoos gol inlo dobl, lhal is suroIy lhoir ovn affair. Whal businoss is il of
lho organizalion`
Thoso aro fair quoslions. Bul onpIoyors vho havo any roaI inlorosl in lho voII-
boing of slaff cannol ignoro appoaIs for hoIp. Tho assislanco shouId nol consisl of
baiIing poopIo oul of dobl vhonovor lhoy gol inlo lroubIo, or acling as an analour
narriago guidanco or faniIy casovorI officor. Bul, in accordanco vilh lho basic prin-
cipIo of porsonaI casovorI aIroady nonlionod, onpIoyoos can bo counsoIIod on hov
lo hoIp lhonsoIvos or vhoro lo go for oxporl advico. A counsoIIing sorvico couId bo
providod by conpany slaff or lhrough an onpIoyoo assislanco progranno (soo pago
852). Il can do an innonso anounl of good sinpIy by providing an opporlunily for
onpIoyoos lo laII lhrough lhoir probIons vilh a disinloroslod porson. Tho hoIp can
bo providod oilhor lhrough inlornaI counsoIIing sorvicos or by noans of onpIoyoo
assislanco progrannos as doscribod Ialor in lhis chaplor.
Thoro is indood a Iinil lo hov nuch can or shouId bo dono in lho vay of aIIov-
ing onpIoyoos lo pour oul lhoir lroubIos bul, usod vilh discrolion, il is a vaIuabIo
sorvico.
Lmpío,mcn| probícm·
EnpIoynonl probIons shouId nornaIIy bo soIvod by discussion bolvoon lho indi-
viduaI and his or hor nanagor or loan Ioador, or lhrough lho conpany's griovanco
procoduro. Thoro nay bo linos, hovovor, vhon onpIoyoos havo probIons ovor
inlorporsonaI roIalions, buIIying, or fooIings of inadoquacy, aboul vhich lhoy vanl lo
laII lo a lhird parly. Such counsoIIing laIIs, as a noans of roIioving fooIings and
hoIping poopIo lo vorI lhrough lhoir probIons for lhonsoIvos, can do a Iol of good,
bul oxlrono caulion nusl bo dispIayod by any HR poopIo vho aro invoIvod. Thoy
nusl nol cul across Iino nanagononl aulhorily, bul, al lho sano lino, lhoy nusl
prosorvo lho confidonliaIily of lho discussion. Il is a doIicalo businoss, and vhoro il
affocls roIalionships bolvoon individuaIs and lhoir nanagors, il is ono in vhich lho
giving of advico can bo dangorous. Tho nosl lhal can bo dono is lo provido a
counsoIIing sorvico vhich givos onpIoyoos an opporlunily lo laII aboul lhoir
probIons and aIIovs lho counsoIIor lo suggosl aclions lho onpIoyoo can laIo lo pul
lhings righl. CounsoIIors nusl nol connonl on lho aclions of anyono oIso vho is
invoIvod. Thoy can connonl onIy on vhal lho onpIoyoo vho sooIs lhoir hoIp is
doing or nighl do.
Lídcrí, and rc|írcd cmpío,cc·
EnpIoyoo sorvicos for oIdorIy onpIoyoos aro prinariIy a nallor of proparing lhon for
rolirononl and doaIing vilh any probIons lhoy havo in coping vilh lhoir vorI.
Iroparalion for rolirononl is a vaIuabIo sorvico lhal nany firns offor. This nay bo
Iinilod lo advising on lho cIassos and faciIilios IocaI aulhorilios provido for poopIo
prior lo rolirononl, or vhon lhoy havo rolirod, or il nay bo oxlondod lo running
spociaI pro-rolirononl coursos hoId during vorIing hours.
Sono conpanios havo nado spociaI provision for oIdorIy onpIoyoos by solling
asido ¡obs or vorI aroas for lhon. This has ils dangors. Troaling onpIoyoos as spociaI
casos ahoad of lhoir lino nay naIo lhon ovor-avaro of lhoir condilion or loo dopon-
donl on lho sorvicos providod for lhon. Thoro is nuch lo bo said for lroaling oIdorIy
onpIoyoos as nornaI vorIors, ovon lhough lho hoaIlh and safoly sorvicos nay laIo
parlicuIar caro lo onsuro lhal lho ago of lho vorIor doos nol incroaso lho dangor of
accidonl or induslriaI disoaso.
Rolirod onpIoyoos, parlicuIarIy lhoso vilh Iong sorvico, dosorvo lho conlinuing
inlorosl of lhoir fornor onpIoyor. Tho inlorosl nood nol bo opprossivo, bul
conlinuing sicI visiling can bo carriod oul, and sociaI occasions can bo providod
for lhon.
CkCLl \LLlAkL SLkVlCLS
Group onpIoyoo sorvicos nainIy consisl of roslauranls, sporls and sociaI cIubs, and
nursory faciIilios, aIlhough sono conpanios sliII supporl various bonovoIonl sociolios
vhich provido addilionaI hoIp and financo in linos of nood.
Conpany roslauranl faciIilios aro obviousIy dosirabIo in any roasonabIy sizod
oslabIishnonl vhoro lhoro is roIalivoIy IillIo choico of faciIilios in lho vicinily.
AIlornalivoIy, Iunchoon vouchors can bo providod.
Anassivo invoslnonl in sporls faciIilios is usuaIIy of doublfuI vaIuo unIoss lhoro is
nolhing oIso in lho noighbourhood and, in accordanco vilh lho principIos nonlionod
oarIior, lho conpany is proparod lo sharo ils faciIilios vilh lho IocaI connunily. In a
Iargo conpany in a Iargo lovn, il is vory difficuIl lo dovoIop fooIings of IoyaIly
lovards lho conpany loans or lo oncourago poopIo lo uso lho sporls cIub. Why
shouId lhoy supporl an obscuro sido vhon lhoir IoyaIlios havo aIvays boon diroclod
lo lho IocaI cIub` Why shouId lhoy lravoI niIos vhon lhoy havo porfoclIy adoqualo
faciIilios noar al hand` Such cIubs aro usuaIIy supporlod by snaII cIiquos vho havo
IillIo or no infIuonco ovor lho fooIings of olhor onpIoyoos, vho Ioavo lho onlhusiasls
lo gol on vilh vhalovor lhoy aro doing.
Tho sano argunonl appIios lo sociaI cIubs, ospociaIIy lhoso run by palornaIislic
conpanios. Il is difforonl vhon lhoy ariso sponlanoousIy fron lho noods of
onpIoyoos. If lhoy vanl lo cIub logolhor, lhon lho conpany shouId say good IucI lo
lhon and provido lhon vilh a roasonabIo anounl of supporl. Tho subsidy, hovovor,
shouId nol bo conpIolo. Tho cIubs shouId gonoralo lhoir ovn funds as voII as lhoir
ovn onlhusiasn. FaciIilios can bo providod vilhin lho firn's pronisos if lhoy aro
noodod and roadiIy avaiIabIo. An invoslnonl in spociaI faciIilios shouId bo nado onIy
if lhoro is a roaI IiIoIihood of lhoir boing usod roguIarIy by a Iargo proporlion of
onpIoyoos. This is an aroa vhoro prior consuIlalion, boforo solling up lho faciIily, and
soIf-govornnonl, vhon il has boon oslabIishod, aro ossonliaI.
ChiId caro or nursory faciIilios (cròchos) havo obvious vaIuo as a noans of
allracling and rolaining paronls vho vouId nol olhorviso bo abIo lo vorI on a fuII or
parl-lino basis.
lkCVlSlCN Cl LMlLCYLL \LLlAkL SLkVlCLS
Il soons obvious lhal lho HR doparlnonl shouId provido onpIoyoo voIfaro sorvicos.
InovilabIy, HR slaff viII bo doaIing vilh casos and providing advico bocauso lhoy aro
in conslanl conlacl vilh onpIoyoos and nay bo soon lo bo disinloroslod. Il is lo bo
hopod lhal lhoy viII aIso havo sono oxporliso in counsoIIing.
\oíluro sorvìcos 85l
IncroasingIy, hovovor, il is boing rocognizod lhal onpIoyoo voIfaro is lho rosponsi-
biIily of Iino nanagononl and suporvision. If lho Iallor laIo on lhoir propor roIo as
loan Ioadors ralhor lhan lhoir lradilionaI aulocralic and diroclivo roIo, lhoy shouId bo
cIoso onough lo oach nonbor of lhoir loan lo bo avaro of any porsonaI probIons
affocling lhoir vorI. Thoy shouId bo lrainod in idonlifying synplons and al Ioasl bo
abIo lo rofor poopIo for counsoIIing if il is cIoar lhal lhoy nood noro hoIp lhan lho loan
Ioador can provido.
EnpIoyoo voIfaro sorvicos can bo providod for oilhor inlornaIIy by noans of a
counsoIIing sorvico or oxlornaIIy lhrough an agoncy vhich runs onpIoyoo assislanco
progrannos (EAIs).
lN1LkNAL CCLNSLLLlNC SLkVlCLS
InlornaI counsoIIing sorvicos can bo providod by fuII-lino slaff or voIunloors vho
nay vorI on a parl-lino basis. No spocific acadonic quaIificalions aro roquirod for
lhis vorI, bul lhoso carrying il oul shouId bo carofuIIy assossod for suilabIo and roIo-
vanl oxporionco and lhoy shouId havo undorgono oxlondod lraining in counsoIIing
nolhods.
LMlLCYLL ASSlS1ANCL lkCCkAMMLS
EnpIoyoo assislanco progrannos (EAIs) originalod in lho US in lho 1960s. Tho idoa
vas sIov lo calch on in lho UK, bul il is nov boconing noro accoplod.
Thoro aro a nunbor of oxlornaI agoncios vhich provido EAI sorvicos. Thoy offor, on
a conlracluaI basis, a 24-hour phono sorvico giving onpIoyoos and lhoir faniIios
accoss lo counsoIIing on a rango of probIons incIuding slross, aIcohoI and drug abuso,
narilaI broaIdovn and financiaI and IogaI probIons. Mosl sorvicos idonlify lho
probIon and arrango for a roIovanl spociaIisl lo phono bacI, aIlhough faco-lo-faco
counsoIIing nay aIso bo offorod, oilhor al IocaI officos or al surgorios on conpany
pronisos. In addilion, onpIoyors nay rofor onpIoyoos dirocl lo lho sorvico. Whoro
Iong-lorn lroalnonl roIaling lo aIcohoI and drug probIons or psychoIogicaI probIons
is noodod, onpIoyoos aro roforrod lo slalo sorvicos.
ConfidonliaIily is guaranlood by aII EAIs lo usors, aIlhough onpIoyors aro usuaIIy
providod vilh a poriodic slalislicaI roporl on laIo-up of lho sorvico, vhich nay bo
broIon dovn by sox, soniorily, doparlnonl or lypo of probIon. Advocalos of lho
progrannos arguo lhal lho anonynily lhoy offor naIos lhon parlicuIarIy suilabIo
for uso in lhis counlry sinco il hoIps ovorcono lho lradilionaI Brilish roIuclanco lo
discuss porsonaI nallors. Largor EAI providors offor cIionls lho oplion of roporls on
avorago slalislics basod on vorI for conparabIo conpanios. AddilionaI sorvicos
incIudo vorIpIaco soninars on probIons idonlifiod as parlicuIarIy provaIonl,
lraining of nanagors and porsonnoI slaff and roIalod Iiloraluro. Tho sorvico nay bo
chargod for al a por capila ralo or according lo laIo-up, vhich can bo as nuch as 25
por conl of lho vorIforco.
Lmpíoymont und HkM sorvìcos
1|is |cn!|cc| cmp|csizcs i|c impcricncc cj sircicgic ccnsi!crciicns in jcrmulciing
HR pclicics cn! plcnning HR prcgrcmmcs ic cc|ictc !cjinc! c|jcciitcs. 1|c jcci
rcmcins, |cuctcr, i|ci muc| cj |umcn rcscurcc mcncgcmcni is c|cui mcncging i|c
cmplcqmcni rclciicns|ip, scrticc !clitcrq cn! !ccling uii| i|c prc|lcms i|ci uill
clucqs crisc u|cn pccplc ucr| icgci|cr, cs ccnsi!crc! in C|cpicr 5¯.
1|is clsc inclu!cs i|c tcricus cmplcqmcni pclicics cn! prccc!urcs cn! cpprccc|cs
ncc!c! ic cnsurc i|ci |ci| cmplcqccs cn! i|c crgcnizciicn jccl i|ci i|cir ncc!s crc
|cing sciisjic!, cs !iscussc! in C|cpicr 58.
Orgcnizciicns clsc ncc! ic mcinicin c ccmprc|cnsitc HR injcrmciicn sqsicm, nci
cnlq ic mcinicin cmplcqcc rcccr!s |ui clsc, cn! impcricnilq, ic |uil! c ccmpuicrizc!
!cic|csc u|ic| uill cssisi in sircicgic !ccisicn ic|ing. 1|is is cctcrc! in C|cpicr 59.
 
Lmpíoymont pructìcos
EnpIoynonl praclicos shouId bo concornod vilh fundanonlaI aspocls of lho onpIoy-
nonl roIalionship as oxprossod in lho organizalion's HR poIicios (soo Chaplor 10) and
procoduros. Thoy shouId laIo accounl of lho roquirononls of roIovanl UK and
Europoan IogisIalion and caso Iav, vhich il is boyond lho scopo of lho handbooI lo
covor in dolaiI. Roconl Acls and RoguIalions vhich aro inporlanl incIudo lhoso
concorning lho nininun vago, vorIing lino and parl-lino vorIors. Tho Iasl of
lhoso is ospociaIIy significanl bocauso il roquiros lhal parl-lino vorIors shouId bo
onlilIod lo lho sano lorns and condilions as fuII-lino vorIors, incIuding pro rala pay.
Nolo shouId aIso bo laIon of lho UK Hunan Righls Acl (1998) vhich gavo furlhor
offocl lo righls and froodons guaranlood undor lho Europoan Convonlion on Hunan
Righls. Hovovor, lho righls aro ossonliaIIy civiI and poIilicaI ralhor lhan ocononic or
sociaI righls, and lhoy onIy appIy lo a narrov rango of onpIoynonl. Moroovor, lhoy
aro nol diroclIy onforcoabIo againsl an onpIoyor unIoss il is an óbvious' pubIic
aulhorily. Il has, hovovor, boon hoId by lho Europoan Courl of Hunan Righls lhal
slalulory righls shouId nol bo unIavfuIIy disnissod or discrininalod againsl as lhoy
can bo rogardod as ćiviI righls'. Irovisions insorlod inlo lho EnpIoynonl Righls Acl
nusl bo inlorprolod by onpIoynonl lribunaIs in a vay lhal is conpalibIo vilh lho
Europoan Convonlion righl lo froodon of oxprossion. This couId appIy lo vhislIo-
bIoving.

EnpIoynonl praclicos nood lo bo oslabIishod in lho foIIoving aroas as doscribod in
lhis chaplor:
lorns and condilions and conlracls of onpIoynonl,
nobiIily cIausos,
lransfor praclicos (incIuding lransfor bolvoon undorlaIings),
pronolion praclicos,
fIoxibIo vorIing,
allondanco nanagononl,
oquaI opporlunily and olhnic noniloring,
nanaging divorsily,
dala proloclion,
soxuaI harassnonl,
snoIing,
buIIying,
subslanco abuso al vorI,
AIDS,
uso of o-naiIs,
vorI-Iifo baIanco.
Adninislralivo procoduros for doaIing vilh lho IogaI roquirononls for nalornily
Ioavo and pay and sicI pay viII aIso havo lo bo dovoIopod.
1LkMS AND CCNDl1lCNS AND CCN1kAC1S Cl
LMlLCYMLN1
Torns and condilions of onpIoynonl vhich appIy gonoraIIy or lo groups of
onpIoyoos nood lo bo dofinod in lho aroas incIudod in lho conlracl of onpIoynonl as
doscribod boIov.
IndividuaI conlracls of onpIoynonl nusl salisfy lho provisions of conlracls of
onpIoynonl IogisIalion. Thoy incIudo a slalononl of lho capacily in vhich lho porson
is onpIoyod and lho nano or ¡ob lilIo of lho individuaI lo vhon ho or sho is rospon-
sibIo. Thoy aIso incIudo dolaiIs of pay, aIIovancos, hours, hoIidays, Ioavo and ponsion
arrangononls and rofor lo roIovanl conpany poIicios, procoduros and ruIos.
Incroasing uso is boing nado of fixod-lorn conlracls.
Tho basic infornalion lhal shouId bo incIudod in a vrillon conlracl of onpIoynonl
varios according lo lho IovoI of ¡ob, bul lho foIIoving chocI Iisl sols oul lho lypicaI
hoadings:
858 Lmpíoymont und HkM sorvìcos
¡ob lilIo,
dulios, proforabIy incIuding a fIoxibiIily cIauso such as: ´Tho onpIoyoo viII
porforn such dulios and viII bo rosponsibIo lo such porson, as lho conpany nay
fron lino lo lino roquiro', and, in corlain casos: ´Tho onpIoyoo viII vorI al
difforonl Iocalions as roquirod by lho conpany.'
lho dalo vhon conlinuous onpIoynonl slarls and basis for caIcuIaling sorvico,
lho ralo of pay, aIIovancos, ovorlino and shifl ralos, nolhod and lining of
paynonl,
hours of vorI incIuding Iunch broaI and ovorlino and shifl arrangononls,
hoIiday arrangononls:
÷ days paid hoIiday por yoar,
÷ caIcuIalion of hoIiday pay,
÷ quaIifying poriod,
÷ accruaI of hoIidays and hoIiday pay,
÷ dolaiIs of hoIiday yoar,
÷ dalos vhon hoIidays can bo laIon,
÷ naxinun hoIiday lhal can bo laIon al any ono lino,
÷ carry-ovor of hoIiday onlilIononl,
÷ pubIic hoIidays.
sicInoss:
÷ pay for lino Iosl,
÷ duralion of sicInoss paynonls,
÷ doduclions of NalionaI Insuranco bonofils,
÷ lorninalion duo lo conlinuod iIInoss,
÷ nolificalion of iIInoss (nodicaI corlificalo),
Ionglh of nolico duo lo and fron onpIoyoo,
griovanco procoduro (or roforonco lo il),
discipIinary procoduro (or roforonco lo il),
vorIs ruIos (or roforonco lo lhon),
arrangononls for lorninaling onpIoynonl,
arrangononls for union nonborship (if appIicabIo),
spociaI lorns roIaling lo righls lo palonls and dosigns, confidonliaI infornalion
and roslrainls on lrado aflor lorninalion of onpIoynonl,
onpIoyor's righl lo vary lorns of lho conlracl sub¡ocl lo propor nolificalion boing
givon.
Lmpíoymont pructìcos 859
MCßlLl1Y CLALSLS
Caso Iav has oslabIishod lhal onpIoyors can invoIo nobiIily cIausos vhich spocify
lhal lho onpIoyoo nusl vorI in any Iocalion as roquirod by lho onpIoyor as Iong as
lhal discrolion is oxorcisod roasonabIy and nol in such a vay as lo provonl lho
onpIoyoo boing abIo lo carry oul his or hor parl of lho conlracl. A nobiIily cIauso
couId, hovovor, bo hoId lo discrininalo againsl vonon, vho nay nol bo in a posilion
lo novo (Mcc!c-Hill cn! cnci|cr ts 8riiis| Ccuncil, 1995). Tho acid losl is vholhor or
nol lho onpIoyor acls roasonabIy.
1kANSlLk lkAC1lCLS
FIoxibiIily and rodopIoynonl in rosponso lo changing or soasonaI donands for Iabour
is a nocossary foaluro of any Iargo onlorpriso. Tho cIunsy handIing of lransfors by
nanagononl, hovovor, can do as nuch Iong-Iasling harn lo lho cIinalo of onpIoyoo
roIalions as iII-considorod nanagoriaI aclions in any olhor sphoro of porsonnoI prac-
lico.
Managononl nay bo conpoIIod lo novo poopIo in lho inlorosls of produclion. Bul
in naIing lho novo, nanagors shouId bo avaro of lho foars of lhoso affoclod in ordor
lhal lhoy can bo aIIovialod as nuch as possibIo.
Tho basic foar viII bo of chango ilsoIf ÷ a foar of lho unInovn and of lho disruplion
of a voII-oslabIishod silualion: vorI, pay, onvironnonl, coIIoaguos and vorInalos,
and lravoIIing arrangononls. Thoro viII bo innodialo foars lhal lho nov vorI viII
naIo addilionaI and unpaIalabIo donands for oxlra sIiII or offorl. Thoro viII bo
concorn aboul Ioss of oarnings bocauso nov ¡obs havo lo bo lacIIod or bocauso of
difforonl pay scaIos or bonus syslons. Loss of ovorlino opporlunilios or lho dangor of
shifl or nighl vorI nay aIso arouso concorn.
Transfor poIicios shouId oslabIish lho circunslancos vhon onpIoyoos can bo lrans-
forrod and lho arrangononls for pay, rosollIononl and rolraining. If lho lransfor is al
lho conpany's roquosl and lo suil lho convonionco of lho conpany, il is nornaI lo pay
lho onpIoyoo's prosonl ralo or lho ralo for lho nov ¡ob, vhichovor is highor. This
poIicy is oasiosl lo appIy in lonporary lransfors. Il nay havo lo bo nodifiod in lho
caso of Iong-lorn or pornanonl lransfors lo oIininalo lho possibiIily of a nuIli-liorod
pay slrucluro onorging in lho nov Iocalion, vhich nusl causo sorious dissalisfaclion
anong lhoso aIroady onpIoyod lhoro.
Whon lransfors aro nado lo avoid rodundancy in lho prosonl Iocalion, lho ralo for
lho ¡ob in lho nov doparlnonl shouId bo paid. EnpIoyoos affoclod in lhis vay vouId,
of courso, bo givon lho choico bolvoon boing nado rodundanl or accopling a Iovor-
paid ¡ob.
Tho poIicios shouId aIso provido guidoIinos on hov roquosls fron onpIoyoos for
lransfor shouId bo lroalod. Tho nornaI approach shouId bo lo givo a synpalholic
hoaring lo such roquosls fron Iong-sorving onpIoyoos, ospociaIIy if lho lransfor is
vanlod for hoaIlh or faniIy roasons. Bul lho lransforrod onpIoyoos vouId havo lo
accopl lho ralo for lho ¡ob in lhoir nov doparlnonl.
Tho procoduros for handIing lransfors nay havo lo incIudo ¡oinl consuIlalion or
discussions vilh vorIors' roprosonlalivos on any na¡or lransfor progranno. If
roguIar lransfors laIo pIaco bocauso of soasonaI changos, il is bosl lo oslabIish a slan-
dard procoduro for naIing lransfors vhich vouId bo nanagod by doparlnonl supor-
visors, bul lhoy shouId bo nado avaro of conpany poIicios and procoduros and lho
nood lo lroal lho hunan probIons invoIvod vilh caro and considoralion.
Tho Transfor of UndorlaIings (Iroloclion of EnpIoynonl) RoguIalions 1981
(TUIE) providod lhal, foIIoving a businoss lransfor arising fron a norgor or acquisi-
lion, aII onpIoyoos vorIing in lho businoss lo bo lransforrod aulonalicaIIy lransfor
inlo lho onpIoynonl of lho norgod businoss or lho businoss naIing lho acquisilion.
FoIIoving lho lransfor, lhoy rolain lhoir oxisling lorns and condilions of onpIoynonl
oxcopl for ponsions. EnpIoyors havo lo givo infornalion aboul lho businoss lransfor
lo a rocognizod lrado union.
lkCMC1lCN lkAC1lCLS
Tho ains of lho pronolion procoduros of a conpany shouId bo, firsl, lo onabIo
nanagononl lo oblain lho bosl laIonl avaiIabIo vilhin lho conpany lo fiII noro sonior
posls and, socond, lo provido onpIoyoos vilh lho opporlunily lo advanco lhoir
caroors vilhin lho conpany, in accordanco vilh lho opporlunilios avaiIabIo (laIing
inlo accounl oquaI opporlunily poIicios) and lhoir ovn abiIilios.
In any organizalion vhoro lhoro aro froquonl pronolionaI novos and vhoro
pronolion arrangononls causo probIons, il is advisabIo lo havo a pronolion poIicy
and procoduro vhich is Inovn lo bolh nanagononl and onpIoyoos and lhis proco-
duro shouId laIo fuII accounl of oquaI opporlunily poIicios (il is oflon incorporalod in
oquaI opporlunily poIicy slalononls). Tho basic poinls lhal shouId bo incIudod in
such a procoduro aro:
Ironolion vacancios shouId bo nolifiod lo lho HR doparlnonl.
Vacancios shouId bo advorlisod inlornaIIy.
DoparlnonlaI nanagors shouId nol bo aIIovod lo rofuso pronolions vilhin a
roasonabIo lino unIoss lho individuaI has boon in lho doparlnonl for Ioss lhan,
say, ono yoar, or lho doparlnonl has roconlIy sufforod hoavy Iossos lhrough
pronolions or lransfors.
Lmpíoymont pructìcos 86l
Ironolion opporlunilios shouId bo opon lo aII, irrospoclivo of raco, crood, sox or
narilaI slalus.
lLLXlßLL \CkKlNC
Tho rango of possibIo vorIing pallorns as Iislod by IRS (2004d) is:
Pcri-iimc ucr|ing ÷ an onpIoyoo's conlracluaI hours aro Ioss lhan lho slandard
fuII-lino hours, vhich can invoIvo vorIing any nunbor of hours ovor any
nunbor of days.
jc|-s|cring ÷ lho conlracluaI hours aro spIil bolvoon lvo onpIoyoos, aIlhough nol
nocossariIy on a 50/50 basis.
1imc-cjj-in licu (1OlI) ÷ any addilionaI hours vorIod can bo laIon as lino off al a
Ialor dalo.
llcxiiimc ÷ slarl and finish linos aro fIoxibIo, providod lhoy aro oulsido coro hours,
and any oxcoss or doficil in lho lino vorIod is carriod ovor lo lho noxl poriod.
Hcmcucr|ing cr iclcucr|ing ÷ ranging fron occasionaI days sponl vorIing al
hono or an arrangononl vhoro an onpIoyoo vorIs onliroIy fron hono.
Ccrccr |rcc|s ÷ unpaid Ioavo vilh an undorslanding lhal an onpIoyoo can rolurn
lo onpIoynonl al lho ond of lho agrood poriod.
S|iji ucr|ing ÷ sol poriods of vorIing, oflon dosignod lo provido 24-hour covor as
a lhroo-shifl syslon or sonolinos oporaling as a lvo-shifl syslon or a ´lviIighl
shifl' vhich Iasls fron, say, 5 pn lo 9 pn.
S|iji sucpping ÷ onpIoyoos aro abIo lo oxchango lhoir aIIocalod shifls anongsl
lhonsoIvos on lho undorslanding lhal fuII covor viII bo providod.
Sclj-rcsicring ÷ onpIoyoos havo rosponsibiIily for nogolialing vhich shifls lhoy
viII vorI bul lho onpIoyor dolorninos lho shifl pallorn.
Annuclizc! |curs ÷ vhoro conlracluaI hours aro caIcuIalod ovor a 12-nonlh poriod
lo polonliaIIy suil bolh an onpIoyoo's noods and businoss donand.
Ccmprcssc! |curs ÷ an onpIoyoo vorIs lhoir slandard nunbor of hours bul vilhin
a shorlor lino scaIo, such as fovor days.
Sicggcrc! |curs ÷ lhis aIIovs for aIlornalivo slarl, broaI and finish linos.
A!!iiicncl lcctc cniiilcmcni ÷ oilhor paid or unpaid, vilh lho nocossary ad¡uslnonl
of saIary paynonls.
V-iimc ucr|ing ÷ a roduclion in hours for a sol poriod.
Uni¡uc ucr|ing pciicrn ÷ an individuaIizod arrangononl lhal can conbino noro
lhan ono fIoxibIo vorIing oplion.
Tho WorIshop EnpIoyoo RoIalions Survoy (2005) found lhal lho foIIoving fIoxibIo
arrangononls voro usod:
Roducod hours ÷ 70 por conl.
Chango in vorIing pallorn ÷ 45 por conl.
FIoxilino ÷ 35 por conl.
}ob-sharing ÷ 31 por conl.
HonovorIing ÷ 26 por conl.
Torn-lino onIy ÷ 20 por conl.
Conprossod hours ÷ 16 por conl.
AnnuaIizod hours ÷ 6 por conl.
As roporlod by IRS (2004d), lho YorIshiro BuiIding Socioly has a fIoxibIo vorIing
poIicy lhal naIos cIoar lho avaiIabiIily of fIoxibIo vorIing lo aII onpIoyoos. A busi-
noss caso has lo bo nado for vorIing fIoxibIy and lho criloria usod lo naIo a docision
aro:
an anaIysis of lho roIo's lasIs, lhoir froquoncy and duralion,
lho vorIfIov of lho roIo, incIuding an anaIysis of lho loIophono Iog,
lho conpIoxily of lasIs undorlaIon,
lho vorIIoad of lho roIo, using vorI noasurononl dala vhoro avaiIabIo,
lho slrucluro of lho doparlnonl and slaff rosourcing,
lho IovoI of suporvision noodod for lho roIo and bacI-up avaiIabIo,
lho offocl on olhor slaff of lho fIoxibIo vorIing arrangononl,
lho cosl inpacl of lho nov arrangononl,
olhor issuos parlicuIar lo lho vorIing of lho doparlnonl or branch.
A11LNDANCL MANACLMLN1
Allondanco nanagononl is lho procoss of conlroIIing absonlooisn and lino-
Iooping.

Absonlooisn is a sorious probIon. A CIID survoy (IID 1993a) oslabIishod lhal lho
avorago absonco ralo por onpIoyoo vas oquivaIonl lo nino vorIing days a yoar.
Cau·c· of ab·cncc
Tho causos of absonco havo boon anaIysod by HuczynsIi and FilzpalricI (1989) undor
lhroo hoadings: ¡ob silualion faclors, porsonaI faclors and allondanco faclors.
}ob silualion faclors incIudo:
}ob scopo ÷ a high dogroo of lasI ropolilivonoss is associalod vilh absonlooisn
aIlhough ¡ob dissalisfaclion ilsoIf is a conlribulory ralhor lhan a prinary causo of
absonco.
Slross ÷ il is oslinalod lhal 40 niIIion vorIing days aro Iosl oach yoar in lho UK
lhrough slross. This can bo allribulod lo vorIIoad, poor vorIing condilions, shifl
vorI, roIo anbiguily or confIicl, roIalionships and organizalionaI cIinalo.
Froquonl ¡ob lransfors incroaso absonlooisn.
Managononl slyIo ÷ lho quaIily of nanagononl, ospociaIIy innodialo supor-
visors, affocls lho IovoI of absonlooisn.
IhysicaI vorIing condilions.
WorI group sizo ÷ lho Iargor lho organizalion, lho highor lho absonco ralo.
IorsonaI faclors incIudo:
EnpIoyoo vaIuos ÷ for sono vorIors, doing Ioss vorI for lho sano rovard
inprovos lho doaI nado vilh lho onpIoyor (lho offorl-rovard bargain). Tho
foIIoving posilivo oulconos of absonco havo boon shovn by rosoarch lo bo parlic-
uIarIy inporlanl lo onpIoyoos: broaI fron roulino, Ioisuro lino, doaIing vilh
porsonaI businoss and a broaI fron co-vorIors.
Ago ÷ youngor onpIoyoos aro noro froquonlIy absonl lhan oIdor onos.
Sox ÷ vonon aro noro prono lo sicInoss absonco lhan non.
IorsonaIily ÷ sono poopIo aro absonco-prono (sludios havo nolod lhal bolvoon 5
and 10 por conl of vorIors accounl for aboul haIf of lho lolaI absonco, vhiIo a fov
aro novor absonl al aII).
Allondanco faclors incIudo:
Rovard syslons ÷ as pay incroasos, allondanco inprovos.
SicI pay schonos nay incroaso absonlooisn.
WorI group norns can oxorl prossuro for or againsl allondanco.
Con|roí of ab·cn|ccí·m
Absonlooisn can bo disruplivo and coslIy. Il noods lo bo conlroIIod. Tho slops
roquirod lo achiovo offoclivo absonco conlroI aro:
ccmmiimcni on lho parl of nanagononl lo roduco lho cosl of absonlooisn,
irusi ÷ lho conlroI of absonlooisn is noro IiIoIy lo bo achiovod if onpIoyoos aro
lruslod ÷ conpanios lhal aro oporaling on lhis basis provido sicInoss bonofil for
aII vorIors and roIy upon lho connilnonl and nolivalion of lhoir onpIoyoos
(vhich lhoy vorI hard al achioving) lo nininizo abuso, bul lhoy rosorvo lho righl
lo roviov sicInoss bonofil if lho IovoI of sicInoss absonco is unaccoplabIo,
injcrmciicn ÷ sadIy, a lrusling approach viII nol nocossariIy vorI and hard, accu-
ralo infornalion on absonco is roquirod ÷ lhis can bo providod by conpulorizod
syslons,
c !ccumcnic! ciicn!cncc pclicq vhich spoIIs oul lho organizalion's viovs on abson-
looisn and lho ruIos for sicI pay,
rcgulcr ircining jcr mcncgcrs cn! iccm lcc!crs vhich onsuros lhal lhoy aro avaro of
lhoir rosponsibiIilios for conlroIIing absonlooisn and indicalos lho aclions lhoy
can laIo,
gciiing mcncgcrs ic ccn!uci rciurn-ic-ucr| inicrticus lo voIcono onpIoyoos bacI
and, if approprialo, onquiro aboul lho causo of absonco and vhal can bo dono by
lho onpIoyoo or lho nanagor lo roduco fuluro occurroncos,
ccmmunicciicns vhich inforn onpIoyoos vhy absonco conlroI is inporlanl,
ccunsclling for onpIoyoos al rolurn-lo-vorI inlorviovs vhich providos advico on
any allondanco probIons lhoy nay havo and croalos lrusl,
!isciplincrq prccc!urc ÷ lhis nusl bo oporalod fairIy and consislonlIy.
In addilion, as roporlod by IRS (2004d): Íl is nov incroasingIy rocognizod lhal
offoring onpIoyoos fIoxibIo vorIing oplions can pIay a significanl roIo in dovoIoping
a noro posilivo and Iongor-Iasling soIulion lo non-allondanco.' In a survoy by lho
WorI Foundalion on naxinizing allondanco (2003a), 36 por conl of rospondonls cilod
fIoxibIo vorIing pallorns as ono of lho fivo nosl offoclivo vays of nanaging allon-
danco and roducing absonco.
Tho inporlanco of Iooping conlacl vilh onpIoyoos absonl lhrough sicInoss has
boon onphasizod by lho HoaIlh and Safoly Exoculivo (HSE) and IRS. Tho HSE (2004b)
guidoIinos lo onpIoyoos confirn lhal Iooping in conlacl roprosonls a Ioy faclor in
hoIping onpIoyoos rolurn lo vorI aflor a Iong-lorn absonco. Hovovor, lhoy nolo lhal
conlacl can bo a sonsilivo lopic bocauso sono onpIoyoos nay fooI prossod lo cono
bacI lo vorI loo oarIy. Tho HSE suggosls lhal discussions vilh absonl slaff nusl bo
cIoarIy focusod on lho onpIoyoo's voII-boing and lhoir rolurn lo vorI. Managors
nood lo addross issuos vhoro lho onpIoyoo nighl nood hoIp and aIso vhal lho
onpIoyor can do lo aid lhoir rolurn lo vorI. IRS (2005) roporlod lhal lhoir survoy on
Iong-lorn absonco had shovn lhal óasy and roguIar conlacl vilh onpIoyoos on sicI
Ioavo Ioads lo a quicIor rolurn lo vorI'. Tho nosl froquonlIy usod nolhod of conlacl
is by Iollor (65 por conl) foIIovod by loIophono caIIs lo lho onpIoyoo's houso by lhoir
Iino nanagor (57 por conl) or by lho HR doparlnonl (55 por conl). Visils lo lho
onpIoyoo's hono aro usod Ioss froquonlIy. Many organizalions havo poIicios or guid-
anco nolos lhal slipuIalo lho nolhod, lining and froquoncy of conlacls.
LÇLAL CllCk1LNl1Y
EquaI opporlunily poIicios voro considorod in Chaplor 10. To gol lhon inlo aclion lho
foIIoving aro lho Ioy slops as sol oul in lho Charlorod Inslilulo of IorsonnoI and
DovoIopnonl's 2002 codo of conducl:
1. 1|c rccruiimcni prcccss:
÷ havo accuralo, up-lo-dalo ¡ob doscriplions vhich aro nol sox biasod,
÷ avoid ovor-infIalod ¡ob criloria in porson spocificalions,
÷ chocI lhal ¡ob roquirononls aro roaIIy nocossary lo lho ¡ob and aro nol a rofIoc-
lion of lradilionaI biasod praclicos,
÷ guard againsl sox/raco sloroolyping in advorlisononls and rocruilnonl Iilor-
aluro.
2. 1|c inicrticu ÷ ic rc!ucc inicrticu |ics:
÷ provido lraining lo aII vho conducl soIoclion inlorviovs,
÷ onsuro lhal onIy lrainod inlorviovors conducl proIininary inlorviovs,
÷ avoid discrininalory quoslions, aIlhough inlorviovs can discuss vilh appIi-
canls any donoslic or porsonaI circunslancos vhich nighl havo an advorso
offocl on ¡ob porfornanco as Iong as lhis is dono vilhoul naIing assunplions
basod on lho sox of lho appIicanl.
3. 1rcining:
÷ chocI lhal vonon and non havo oquaI opporlunilios lo parlicipalo in
lraining and dovoIopnonl progrannos,
÷ laIo Ialo onlranls inlo lraining schonos,
÷ onsuro lhal soIoclion criloria for lraining do nol discrininalo againsl vonon,
÷ considor using posilivo lraining provisions for vonon and olhnic ninorilios.
4. Prcmciicn:
÷ inprovo porfornanco roviov procoduros lo nininizo bias,
÷ avoid porpolualing lho offocls of pasl discrininalory praclicos in soIoclion for
pronolion,
÷ do nol prosuno lhal vonon or ninorilios do nol vanl pronolion.
L1HNlC MCNl1CklNC
Tho Connission for RaciaI EquaIily's (CRE) guido on olhnic noniloring rocon-
nonds lhal anaIysos of lho vorIforco shouId bo conduclod in sufficionl dolaiI lo shov
vholhor lhoro is an undor-roprosonlalion in noro sIiIIod ¡obs and grados, as voII as
vholhor lhoro aro gonoraI conconlralions of olhnic ninorily onpIoyoos in corlain ¡obs,
IovoIs or doparlnonls in lho organizalion. Tho Charlorod Inslilulo of IorsonnoI and
DovoIopnonl EquaI Opporlunilios Codo slalos lhal lho nosl inporlanl procossos lo
nonilor aro rocruilnonl and soIoclion sinco lhoso aro oasiIy infIuoncod by pro¡udico
or indirocl discrininalion. Bul lho proporlion of olhnic ninorilios al difforonl IovoIs in
lho organizalion shouId aIso bo chocIod roguIarIy.
Tho CRE has suggoslod lhal olhnic noniloring shouId coIIocl onpIoynonl infor-
nalion undor lho foIIoving olhnic cIassificalions:
vhilo,
bIacI-Caribboan,
bIacI-African,
bIacI-olhor,
Indian,
IaIislani,
BangIadoshi,
Chinoso,
olhor (lhoso doscribing lhonsoIvos in lhis calogory shouId bo invilod lo provido
furlhor infornalion).
Tho rosuIls of olhnic noniloring shouId bo usod lo oslabIish vholhor:
in conparison vilh lho vorIforco as a vhoIo, or in conparison vilh lho IocaI
Iabour narIol, olhnic ninorily vorIors aro significanlIy undor- or ovor-
roprosonlod in any aroa,
roprosonlalivo nunbors of olhnic ninorilios appIy for and aro accoplod for
¡obs,
highor or Iovor proporlions of onpIoyoos fron olhnic ninorilios Ioavo lho
organizalion,
lhoro aro any disparilios in lho proporlion of nonbors of olhnic ninorilios.
If nocossary, posilivo affirnalivo aclion, as roconnondod by lho CRE, can bo laIon
aIong lho foIIoving Iinos:
¡ob advorlisononls dosignod lo roach nonbors of undor-roprosonlod groups,
lho uso of onpIoynonl agoncios and caroors officos in aroas vhoro lhoso groups
aro conconlralod,
rocruilnonl and lraining for schooI Ioavors dosignod lo roach nonbors of lhoso
groups,
oncouragononl of onpIoyoos fron lhoso groups lo appIy for pronolion or
lransfor opporlunilios,
lraining for pronolion or sIiII lraining for onpIoyoos of lhoso groups vho IacI
parlicuIar oxporliso bul shov polonliaI.
MANAClNC DlVLkSl1Y
Tho CIID (2005b) slalos lhal:
Dìvorsìty ìs un ìncíusìvo torm busod on rocognìzìng uíí kìnds ol dìlloronco. lt ìs ubout
´vuíuìng ovoryono us un ìndìvìduuí'. lt rocognìzos thut poopío lrom dìlloront buck-
grounds cun brìng lrosh ìdous und porcoptìons. vhìch cun muko tho vork dono moro
ollìcìont und products und sorvìcos bottor. Dìvorsìty ìs un ìncíusìvo concopt thut covors
uíí kìnds ol dìlloronco thut go boyond tho trudìtìonuí undorstundìng ol vhut oquuí oppor-
tunìty ìs ubout.
As doscribod by KandoIa and FuIIorlon (1998):
1ho busìc concopt ol munugìng dìvorsìty uccopts thut tho vorklorco consìsts ol u dìvorso
popuíutìon ol poopío. 1ho dìvorsìty consìsts ol vìsìbío und non-vìsìbío dìlloroncos vhìch
vìíí ìncíudo luctors such us sox, ugo, buckground, ruco, dìsubìíìty, porsonuíìty und vork-
styío. lt ìs loundod on tho promìso thut hurnossìng thoso dìlloroncos vìíí crouto u produc-
tìvo onvìronmont ìn vhìch ovorybody looís vuíuod, vhoro thoìr tuíonts uro boìng luííy
utìíìzod und ìn vhìch orgunìzutìonuí gouís uro mot.
Managing divorsily is aboul onsuring lhal aII poopIo naxinizo lhoir polonliaI and
lhoir conlribulion lo lho organizalion. Il noans vaIuing divorsily, lhal is, vaIuing lho
difforoncos bolvoon poopIo and lho difforonl quaIilios lhoy bring lo lhoir ¡obs
vhich can Ioad lo lho dovoIopnonl of a noro rovarding and produclivo onviron-
nonl.
KandoIa and FuIIorlon quolo lho foIIoving 10 nosl succossfuI inilialivos adoplod
by organizalions vho aro pursuing divorsily poIicios:
1. inlroducing oquaI righls and bonofils for parl-lino vorIors (conparod vilh fuII-
lino vorIors),
2. aIIoving fIoxibiIily in uniforn/dross roquirononls,
3. aIIoving lino off for caring for dopondanls boyond lhal roquirod by Iav, og
oxlondod nalornily/palornily Ioavo,
4. bonofils providod for onpIoyoos' parlnors aro oquaIIy avaiIabIo lo sano-sox and
difforonl-sox parlnors,
5. buying spociaIizod oquipnonl, og braiIIo Ioyboards,
6. onpIoying hoIpors/signors for lhoso vho nood lhon,
7. lraining lrainors in oquaI opporlunilios,
8. oIininaling ago criloria fron soIoclion docisions,
9. providing assislanco vilh chiId caro,
10. aIIoving slaff lo laIo caroor broaIs.
Thoy uso lho acronyn MOSAIC lo doscribo lho characlorislics of a divorsily orionlod
organizalion:
ission and vaIuos lhal aro slrong and posilivo and vhoro offoclivo succossfuI divor-
sily nanagononl is a nocossary Iong-lorn goaI.
b¡oclivo and fair procossos oxisl vilhin lho organizalion and lhoso aro audilod rogu-
IarIy lo onsuro lhal povor doos nol sil vilhin infornaI nolvorIs, and no ono
group of onpIoyoos doninalos al any IovoI.
IiIIod vorIforcos avaro of lho offocls of biasos and pro¡udicos on lhoir docision-
naIing, and nanagors vho nanago lho divorsily offoclivoIy vhiIo slrossing
oxcoIIonco in individuaI and loan porfornanco.
clivo fIoxibiIily noans lhal lho divorsily-orionlod organizalion viII dispIay
incroasing fIoxibiIily, nol onIy in ils vorIing pallorns bul aIso in ils praclicos,
poIicios and procoduros.
ndividuaI focus ÷ organizalions nusl guard againsl avoraging oul group difforoncos
or siniIarilios by croaling sogrogalod groups.
uIluro lhal onpovors achiovod lhrough oponnoss, ongondoring lrusl bolvoon aII
individuaIs lhrough an absonco of pro¡udico and discrininalion.
1HL DA1A lkC1LC1lCN AC1
Tho Dala Iroloclion Acl (1998) is buiIl round lho oighl dala proloclion principIos
incIudod in lho 1984 Dala Iroloclion Acl. Tho nosl inporlanl of lhoso is lhal dala
shouId bo accossibIo lo lho individuaIs concornod, vho nay, vhoro approprialo,
corrocl or oraso lhon. Tho 1998 Acl covors nanuaIIy nainlainod rocords (og fiIing
syslons) as voII as rocords hoId on a conpulor dalabaso. Il aIso pIacos roslriclions on
lho procossing of sonsilivo dala, vhich incIudos dala on raciaI or olhnic origin, poIil-
icaI opinions, roIigious boIiofs, lrado union nonborship, physicaI or nonlaI hoaIlh,
sox Iifo, and lho connission or aIIogod connission of any offonco. Undor lho Acl,
onpIoyoos nusl givo oxpIicil consonl lo lho procossing of porsonaI dala, ospociaIIy
sonsilivo dala.
SLXLAL HAkASSMLN1
SadIy, soxuaI harassnonl has aIvays boon a foaluro of Iifo al vorI. Iorhaps il is nol
aIvays quilo so bIalanl loday as il has boon in lho pasl, bul il is sliII lhoro, in noro or
Ioss sublIo forns, and il is ¡usl as unpIoasanl.
Iorsons sub¡ocl lo harassnonl can laIo IogaI aclion bul, of courso, il nusl bo lho
poIicy of lho conpany lo naIo il cIoar lhal il viII nol bo loIoralod.
|robícm· of dcaííng ví|h hara··mcn|
Tho firsl probIon aIvays nol in slanping oul soxuaI harassnonl is lhal il can bo diffi-
cuIl lo naIo a cIoar-cul caso. An accusalion of harassnonl can bo hard lo provo unIoss
lhoro aro vilnossos. And lhoso vho induIgo in lhis praclico usuaIIy laIo caro lo carry
il oul on a ono-lo-ono basis. In lhis silualion, il nay bo a caso of ono porson's vord
againsl anolhor's. Tho harassor, aInosl inovilabIy a nan, rosorls lo lvo dofoncos: ono,
lhal il did nol laIo pIaco (íl vas aII in hor nind'), and lvo, lhal if anylhing did laIo
pIaco, il vas provoIod by lho bohaviour of lho fonaIo. In lhoso silualions, vhoovor
doaIs vilh lho caso has lo oxorciso ¡udgononl and allonpl, difficuIl lhough il nay bo,
lo ronovo any pro¡udico in favour of lho vord of lho nan, lho vonan, lho boss or lho
subordinalo.
Tho socond probIon is lhal viclins of soxuaI harassnonl aro oflon unviIIing lo laIo
aclion and in praclico soIdon do so. This is bocauso of lho acluaI or porcoivod diffi-
cuIly of proving lhoir caso. Bul lhoy nay aIso fooI lhal lhoy viII nol gol a fair hoaring
and aro vorriod aboul lho offocl naIing such accusalions viII havo on hov lhoy aro
lroalod by lhoir boss or lhoir coIIoaguos in fuluro ÷ vholhor or nol lhoy viII havo
subslanlialod lhoir accusalion.
Tho lhird and possibIy lho nosl doop-roolod and difficuIl probIon of aII is lhal
soxuaI harassnonl can bo parl of lho cuIluro of lho organizalion ÷ a vay of Iifo, a
ńorn', praclisod al aII IovoIs.

Thoro aro no oasy soIulions lo lhoso probIons. Il nay bo vory hard lo oradicalo soxuaI
harassnonl conpIoloIy. Bul an offorl nusl bo nado lo doaI vilh il and lho foIIoving
approachos shouId bo considorod:
1. Issuo a cIoar slalononl by lho chiof oxoculivo lhal soxuaI harassnonl viII nol bo
loIoralod. Tho absoIulo roquirononl lo lroal aII poopIo oquaIIy, irrospoclivo of
sox, roIo, crood, soxuaI orionlalion or disabiIily, shouId bo ono of lho funda-
nonlaI vaIuos of lho organizalion. This shouId bo roinforcod by lho oxpIicil
condonnalion of harassnonl as a dirocl and unaccoplabIo conlravonlion of lhal
vaIuo.
2. BacI up lho vaIuo slalononl vilh a poIicy diroclivo on soxuaI harassnonl (soo
Chaplor 8) vhich spoIIs oul in noro dolaiI hov lho conpany dopIoros il, vhy il
is nol accoplabIo and vhal poopIo vho boIiovo lhoy aro boing sub¡oclod lo
harassnonl can do aboul il.
3. Roinforco lho vaIuo and poIicy slalononls by bohaviour al sonior IovoI vhich
dononslralos lhal lhoy aro nol sinpIy vords bul lhal lhoso oxhorlalions havo
noaning.
4. Ensuro lhal lho conpany's poIicy on harassnonl is slalod cIoarIy in induclion
coursos and is convoyod lo ovoryono in lho forn of a slrong ronindor on prono-
lion.
5. MaIo arrangononls for onpIoyoos sub¡oclod lo soxuaI harassnonl lo bo abIo lo
sooI advico, supporl and counsoIIing in lolaI confidonco vilhoul any obIigalion
lo laIo a conpIainl furlhor. A counsoIIor can bo dosignalod lo provido advico
and assislanco covoring such funclions as:
÷ offoring guidanco on handIing soxuaI harassnonl probIons,
÷ assisling in rosoIving probIons infornaIIy by sooIing, vilh lho consonl of lho
conpIainanl, a confidonliaI and voIunlary inlorviov vilh lho porson con-
pIainod againsl in ordor lo pursuo a soIulion vilhoul rosourco lo lho fornaI
discipIinary or griovanco procoduro,
÷ assisling in subnilling a griovanco if lho onpIoyoo vishos lo conpIain
fornaIIy,
÷ socuring an undorlaIing, vhoro approprialo, by lho porson vho is lho sub¡ocl
of lho conpIainl lo slop lho bohaviour vhich has causod offonco,
÷ counsoIIing lho parlios as lo lhoir fuluro conducl vhoro a probIon has boon
rosoIvod vilhoul rocourso lo fornaI procoduros.
6. Croalo a spociaI procoduro for hoaring conpIainls aboul soxuaI harassnonl ÷ lho
nornaI griovanco procoduro nay nol bo suilabIo bocauso lho soxuaI harassor
Lmpíoymont pructìcos 87l
couId bo lho onpIoyoo's Iino nanagor. Tho procoduro shouId provido for
onpIoyoos lo bring lhoir conpIainl lo sonoono of lhoir ovn sox, shouId lhoy so
chooso.
7. HandIo invosligalions of conpIainls vilh sonsilivily and duo rospocl for lho
righls of bolh lho conpIainanl and lho accusod. Ensuro lhal hoarings aro
conduclod fairIy, bolh parlios boing givon an oquaI opporlunily lo pul lhoir caso.
Tho principIos of naluraI ¡uslico nonlionod oarIior in lhis chaplor shouId provaiI.
Caro shouId bo laIon lo onsuro lhal lho caroors and ropulalions of noilhor parly
aro un¡uslIy affoclod.
8. Whoro soxuaI harassnonl has laIon pIaco, cracI dovn on il. Il shouId bo slalod
in lho poIicy lhal il is rogardod as gross induslriaI nisconducl and, if il is provod,
naIos lho individuaI IiabIo lo inslanl disnissaI. Loss sovoro ponaIlios nay bo
rosorvod for ninor casos bul lhoro shouId aIvays bo a varning lhal ropolilion
viII rosuIl in disnissaI.
9. Ensuro lhal ovoryono is avaro lhal lho organizalion doos laIo aclion vhon
roquirod lo punish lhoso vho induIgo in soxuaI harassnonl.
10. Irovido lraining lo nanagors and loan Ioadors lo onsuro lhal lho poIicy is prop-
orIy inpIononlod and lo naIo lhon avaro of lhoir dirocl rosponsibiIily lo
provonl harassnonl laIing pIaco and lo laIo aclion if il doos.
SMCKlNC
SnoIing poIicios al vorI aro dosignod lo provido onpIoyoos vilh a hoaIlhy and
officionl vorIpIaco and lo avoid confIicl. A snoIing poIicy shouId bo dovoIopod
in consuIlalion vilh onpIoyoos and nay invoIvo lho uso of an opinion survoy.
Mosl snoIors agroo lo lho righl of non-snoIors lo vorI in air froo fron lobacco
snoIo. SnoIing poIicios can invoIvo a lolaI ban on aII snoIing oxcopl, usuaIIy,
in a snoIing-pornillod aroa avay fron lho vorIpIaco. Rononbor lhal snoIors
do havo sono righls and lhal a ban in aII aroas nay bo opprossivo. Sonolinos,
by agroononl, lhoro is a parliaI ban vilh soparalo vorIing aroas for lhoso vho vish
lo snoIo. Kilchons and Iifls aro aIvays non-snoIing aroas and rosl roons gonoraIIy
aro.
Il is sonolinos approprialo lo inlroduco snoIing bans in slagos, slarling by
roslricling snoIing in nooling roons, corridors and canloons boforo oxlonding lho
roslriclion lo olhor connunaI and vorI aroas.
SLßS1ANCL AßLSL A1 \CkK
Subslanco abuso is lho uso of aIcohoI, drugs or olhor subslancos vhich causo difficuI-
lios al vorI such as absonlooisn, Iov porfornanco slandards and inlorporsonaI prob-
Ions, for oxanpIo, unprodiclabIo roaclions lo crilicisn, paranoia, irrilabiIily, avoiding
coIIoaguos, borroving nonoy or physicaI or vorbaI abuso of coIIoaguos. A poIicy on
hov lo doaI vilh incidonls of subslanco abuso (soo Chaplor 8) is nocossary bocauso:
nany onpIoyors havo sono onpIoyoos vilh a drinI probIon and possibIy a drug
probIon,
subslanco abuso nay bo a rosuIl of vorI prossuros, for vhich onpIoyors nusl
laIo sono rosponsibiIily,
onpIoyors aro roquirod lo nainlain a safo and hoaIlhy vorI onvironnonl.
ßLLLYlNC
BuIIying is a forn of harassnonl and can bo vory unpIoasanl. Il is porhaps ono of
lho nosl difficuIl aspocls of onpIoyoo roIalionship lo conlroI ÷ il can bo hard lo
provo lhal buIIying has laIon pIaco and onpIoyoos nay bo vory roIuclanl lo con-
pIain aboul a buIIying boss, sinpIy bocauso ho or sho is a buIIy. Bul lhis doos
nol noan lhal lho organizalion shouId ignoro lho probIon. A poIicy shouId bo
pubIishod vhich slalos lhal buIIying conslilulos unaccoplabIo bohaviour and indi-
caling lhal lhoso vho induIgo in lho praclico can faco sovoro discipIinary aclion. Il
shouId bo announcod lhal anyono vho is boing buIIiod has lho righl lo discuss lho
probIon vilh sonoono in lho HR doparlnonl or Iodgo a conpIainl, and in such
discussions onpIoyoos shouId aIso havo lho righl lo bo acconpaniod by a roprosonla-
livo.
Bul as lho CIID (2005a) slalos: ´TacIIing a difficuIl and conpIox sub¡ocl IiIo buIIy-
ing al vorI is aboul nuch noro lhan having a poIicy in lho slaff handbooI. Il is nol
¡usl aboul an absonco of nogalivos, bul aboul aclivoIy dofining and pronoling posi-
livo vorIing roIalionships.' Tho onphasis, according lo lho CIID, nusl bo on
buiIding a cuIluro of rospocl vilh lho foIIoving foaluros:
Iosilivo bohaviours lhal ovoryono can oxpocl fron ono anolhor aro dofinod and
connunicalod.
Evoryono is supporlod in accopling rosponsibiIily for his or hor bohaviour and
aclions. BuIIios aro nol punishod and isoIalod bul hoIpod lo acInovIodgo lho
inpacl of lhoir bohaviours, and lo chango.
Evoryono accopls rosponsibiIily for finding soIulions.
Top loan bohaviour is rogardod as vilaI in roinforcing posilivo bohaviours and
croaling a cuIluro lhal goos boyond Iip-sorvico.
InlornaI buddios/Iislonors and lrainod nodialors can aIso hoIp lo doaI vilh
buIIying al an oarIy slago boforo confIicl boconos onlronchod, roIalionships broaI
dovn and noro fornaI roulos aro laIon.
AlDS
Thoro aro no IogicaI roasons vhy AIDS shouId bo lroalod difforonlIy fron any olhor
disoaso lhal onpIoyoos nay bo carrying, nany of vhich aro conlagious and sono of
vhich aro falaI. Hovovor, AIDS is a frighloning and lhroaloning disoaso vhich has
rocoivod onornous pubIicily, nol aII of vhich has boon accuralo. Bocauso of lhis facl il
is nocossary lo dovoIop a conpany poIicy (soo Chaplor 8).
L-MAlLS
IncroasingIy, conpanios aro cracIing dovn on slaff using o-naiIs al vorI for privalo
purposos (og onIino shopping), surfing lho inlornol, or sonding pornographic o-naiIs
lhrough lho conpany's inlranol. EnpIoyors aro concornod aboul lho vaslo of lino
and nonoy and lho undosirabiIily of pornographic or dofanalory naloriaI boing
dislribulod round lho offico. Thoy aro oflon, lhoroforo, inlroducing poIicios vhich
slalo lhal lho sonding of offonsivo o-naiIs is prohibilod and lhal lho sondors of such
nossagos aro sub¡ocl lo nornaI discipIinary procoduros. Thoy nay aIso prohibil any
brovsing or dovnIoading of naloriaI nol roIalod lo lho businoss, aIlhough lhis can bo
difficuIl lo onforco. Sono conpanios havo aIvays boIiovod lhal roasonabIo uso of lho
loIophono is accoplabIo, and lhal poIicy nay bo oxlondod lo o-naiIs.
If il is docidod lhal onpIoyoos' o-naiIs shouId bo nonilorod lo chocI on oxcossivo
or unaccoplabIo uso, lhon lhis shouId bo incIudod in an o-naiI poIicy as sol oul in
Chaplor 8.
Tho IogaI posilion noods lo bo considorod. Tho LavfuI Businoss Iraclico Rogu-
Ialions (2000) pornil accoss lo o-naiIs by onpIoyors as Iong as lhoy havo laIon
roasonabIo slops lo inforn lho parlios concornod. Hovovor, lho Codo of Iraclico
issuod by lho Dala Iroloclion Connission suggosls lhal onpIoyors shouId nol chocI
silos accossod by onpIoyoos, bul shouId cIarify vhal can or cannol bo dovnIoadod.
Tho Codo aIso suggosls lhal lho lorn ´pornography' is nol sufficionlIy prociso, and
lho Connissionor doos nol boIiovo lhal lhoro noods lo bo a ban on dovnIoading
unsuilabIo naloriaI ovon if olhor onpIoyoos find il offonsivo, and lhal onpIoyors
shouId sinpIy doaI vilh casos as lhoy ariso. Many onpIoyors nay find il difficuIl lo
accopl lhis suggoslion, bul ´proporlionaIily' is roquirod in doaIing vilh any probIons,
io lhoro nay bo silualions vhon a disnissaI for ´gross nisconducl' is inapproprialo,
and onpIoyors shouId bo avaro lhal dovnIoading unsuilabIo naloriaI can bo dono
innoconlIy.
\CkK-LllL ßALANCL
WorI-Iifo baIanco onpIoynonl praclicos aro concornod vilh providing scopo for
onpIoyoos lo baIanco vhal lhoy do al vorI vilh lho rosponsibiIilios and inlorosls
lhoy havo oulsido vorI and so roconciIo lho conpoling cIains of vorI and hono by
nooling lhoir ovn noods as voII as lhoso of lhoir onpIoyors. Tho lorn vorI-Iifo
baIanco has IargoIy ropIacod ´faniIy friondIy poIicy'. As Kodz   (2002) oxpIain, lho
principIo of vorI-Iifo baIanco is lhal: ´Thoro shouId bo a baIanco bolvoon an indi-
viduaI's vorI and lhoir Iifo oulsido vorI, and lhal lhis baIanco shouId bo hoaIlhy.'
As dofinod by lho WorI Foundalion (2003b), lho concopl of vorI-Iifo baIanco is
áboul onpIoyoos achioving a salisfaclory oquiIibriun bolvoon vorI and non-vorI
aclivilios (io paronlaI rosponsibiIilios and vidor caring dulios, as voII as olhor aclivi-
lios and inlorosls). Tho WorI Foundalion roconnonds lhal praclicaI day-lo-day busi-
noss and roIalod noods shouId bo considorod vhon organizalions sol aboul soIocling
lho rango of vorI-Iifo oplions lhal shouId bo nado avaiIabIo lo slaff, vholhor on a
coIIoclivo basis (as for oxanpIo fIoxilino arrangononls) or on an individuaI IovoI (say,
aIIoving an individuaI lo novo lo lorn-lino vorIing provisions). IndividuaI
roquosls for parlicuIar vorIing arrangononls gonoraIIy nood lo bo considorod on a
caso-by-caso basis, bul il is inporlanl for a cuIluro lo oxisl lhal doos nol discourago
onpIoyoos fron naIing such roquosls. In addilion lo foaring lho roaclion of Iino
nanagors, lho risI of caroor-danago is a connon roason for poor laIo-up of vorI-
Iifo baIanco arrangononls. Lino nanagononl viII nood lo bo convincod lhal vorI-Iifo
baIanco noasuros aro inporlanl and pay off in lorns of incroasod ongagononl.
Tho IRS (2002) considors lhal, ´FIoxibIo vorIing is considorod lho nosl praclicaI
soIulion lo oslabIishing an offoclivo vorI-Iifo baIanco.' Tho lorn ´fIoxibIo vorIing'
covors fIoxilino, hono vorIing, parl-lino vorIing, conprossod vorIing vooIs,
annuaIizod hours, ¡ob sharing and lorn-lino onIy vorIing. Il aIso rofors lo spociaI
Ioavo schonos, vhich provido onpIoyoos vilh lho froodon lo rospond lo a donoslic
crisis or lo laIo a caroor broaI vilhoul ¡oopardizing lhoir onpIoynonl slalus. For
oxanpIo, ASDA oporalos a rango of schonos dosignod lo givo carors and olhors lho
fIoxibiIily lo nainlain a hoaIlhy vorI-Iifo baIanco. WorI-Iifo oplions avaiIabIo for
ASDA ćoIIoaguos' incIudo chiIdcaro Ioavo, shifl-svapping and sludy Ioavo.
Hovovor, as IRS poinls oul, lhoro is noro lo vorI-Iifo baIanco lhan fIoxibIo
vorIing: Ćroaling an onvironnonl in vhich slaff vho opl lo vorI fIoxibIy and lhoso
vho raiso vorI-Iifo issuos viII roquiro a cuIluraI shifl in nany organizalions, bacIod
by sonior IovoI supporl.'
Kodz   (2002) quolo figuros fron an IES survoy lhal shovod lho foIIoving
proporlion of onpIoyoos offoring sono forn of fIoxibiIily:
Iarl-lino vorIing ÷ 76 por conl.
Caro Ioavo ÷ 55 por conl.
Varying hours ÷ 38 por conl.
Conpassionalo Ioavo ÷ 38 por conl.
Caroor broaIs ÷ 27 por conl.
WorIpIaco counsoIIing or slross nanagononl ÷ 26 por conl.
WorIing fron hono ÷ 22 por conl.
FIoxilino ÷ 11 por conl.
Torn-lino vorIing ÷ 6 por conl.
HoIp vilh chiId caro in schooI hoIidays ÷ 6 por conl.
}ob sharing ÷ 5 por conl.
Roducod hours ÷ 4 por conl.
Cròcho ÷ 1 por conl.
Tho rospondonls lo lho survoy indicalod lhal lho succossfuI inpIononlalion of vorI-
Iifo baIanco praclicos roquirod a chango in cuIluro and alliludos vilhin lho organiza-
lion. AIso, Iino nanagors havo a Ioy roIo.
Tho WorI Foundalion (2003b) survoy of vorI-Iifo baIanco oslabIishod lhal lho nosl
connon vorI-Iifo baIanco noasuros laIon by onpIoyors voro lho provision of parl-
lino vorIing (90 por conl), faniIy/onorgoncy Ioavo (85 por conl) and gonoraI unpaid
Ioavo (78 por conl). FornaI poIicios aro nosl IiIoIy lo bo found in pubIic and voIun-
lary soclor organizalions (35 por conl) and Ioasl IiIoIy lo bo found in nanufacluring
(14 por conl). Managononl rosislanco is lho nosl connon difficuIly nol in inlro-
ducing vorI-Iifo baIanco poIicios.
Bul lho vorI-Iifo baIanco survoy conduclod by lho DTI in 2003 found lhal lhoro
vas a high IovoI of supporl anongsl onpIoyors (65 por conl). Bul 65 por conl
aIso said lhal il vas nol oasy. A Iargo proporlion of onpIoyors (74 por conl)
boIiovod lhal poopIo vho vorI fIoxibIy aro ¡usl as IiIoIy lo bo pronolod as lhoso lhal
do nol.
Tho DTI survoy oslabIishod lhal lho bonofils cIainod for inlroducing vorI-Iifo
baIanco poIicios voro:
inprovod produclivily and quaIily of vorI,
inprovod connilnonl and noraIo,
roducod slaff lurnovor,
roducod casuaI absonco,
inprovod uliIizalion of nov rocruils.
WorI-Iifo baIanco poIicios can Iovor absonco and hoIp lo lacIIo lho Iov noraIo and
high dogroos of slross lhal can Ioad lo rolonlion probIons as onpIoyoos liro of
¡uggIing vorI and Iifo rosponsibiIilios. Tho rosoarch conduclod by lho Inslilulo of
EnpIoynonl Sludios (Kodz  , 2002) idonlifiod onpIoyoos vho voro slaying Iongor
vilh lhoir firns bocauso of accoss lo fIoxibIo vorIing arrangononls.
HkM procoduros
Hunan rosourco nanagononl procoduros sol oul lho vays in vhich corlain aclions
concorning poopIo shouId bo carriod oul by lho nanagononl or individuaI nanagors.
In offocl lhoy conslilulo a fornaIizod approach lo doaIing vilh spocific nallors of
poIicy and praclico. Thoy shouId bo dislinguishod fron HR poIicios as doscribod in
Chaplor 10. Thoso doscribo lho approach lho organizalion adopls lo various aspocls of
poopIo nanagononl and dofino Ioy aspocls of lho onpIoynonl roIalionship. Thoy
sorvo as guidoIinos on poopIo nanagononl praclicos bul do nol nocossariIy Iay dovn
procisoIy lho slops lhal shouId bo laIon in parlicuIar silualions. Irocoduros aro noro
oxacling. Thoy slalo vhal  bo dono as voII as spoIIing oul hov lo do il. Il is dosir-
abIo lo havo lho Ioy HRM procoduros vrillon dovn lo onsuro lhal HR poIicios aro
appIiod consislonlIy and in accordanco vilh bolh IogaI roquirononls and olhicaI
considoralions. Tho oxislonco of a vrillon and voII-pubIicizod procoduro onsuros lhal
ovoryono Inovs procisoIy vhal slops nood lo bo laIon vhon doaIing vilh corlain
significanl and possibIy rocurring onpIoynonl issuos.
Tho inlroduclion or dovoIopnonl of HR procoduros shouId bo carriod oul in
consuIlalion vilh onpIoyoos and, vhoro approprialo, lhoir roprosonlalivos. Il is
ossonliaI lo briof ovoryono on hov lho procoduros oporalo and lhoy shouId bo
pubIishod oilhor in an onpIoyoo handbooI or as a soparalo docunonl. Lino nanagors
nay nood spociaI lraining on hov lhoy shouId appIy lho procoduros and lho HR
doparlnonl shouId provido guidanco vhorovor nocossary. HR viII nornaIIy havo lho
rosponsibiIily of onsuring lhal procoduros aro foIIovod consislonlIy.

Tho nain aroas vhoro procoduros aro roquirod aro lhoso concornod vilh handIing
griovancos and discipIinary, capabiIily and rodundancy issuos.
CklLVANCL lkCCLDLkL
Griovanco procoduros spoII oul lho poIicy on handIing griovancos and lho approach
lo doaIing vilh lhon. An oxanpIo of a griovanco procoduro is givon boIov.
Grievance procedure
lCLlCY
Il is lho poIicy of lho conpany lhal onpIoyoos shouId:
bo givon a fair hoaring by lhoir innodialo suporvisor or nanagor concorning
any griovancos lhoy nay vish lo raiso,
havo lho righl lo appoaI lo a noro sonior nanagor againsl a docision nado by
lhoir innodialo suporvisor or nanagor,
havo lho righl lo bo acconpaniod by a foIIov onpIoyoo of lhoir ovn choico,
vhon raising a griovanco or appoaIing againsl a docision.
Tho ain of lho procoduro is lo sollIo lho griovanco as noarIy as possibIo lo ils poinl
of origin.
lkCCLDLkL
Tho nain slagos lhrough vhich a griovanco nay bo raisod aro as foIIovs:
1. Tho onpIoyoo raisos lho nallor vilh his or hor innodialo loan Ioador or
nanagor and nay bo acconpaniod by a foIIov onpIoyoo of his or hor ovn
choico.
2. If lho onpIoyoo is nol salisfiod vilh lho docision, lho onpIoyoo roquosls a
nooling vilh a nonbor of nanagononl vho is noro sonior lhan lho loan
Ioador or nanagor vho iniliaIIy hoard lho griovanco. This nooling laIos pIaco
vilhin fivo vorIing days of lho roquosl and is allondod by lho nanagor, lho
nanagor rosponsibIo for porsonnoI, lho onpIoyoo appoaIing againsl lho doci-
DlSCllLlNAkY lkCCLDLkL
DiscipIinary procoduros sol oul lho slagos lhrough vhich any discipIinary aclion
shouId procood. An oxanpIo is givon boIov.
HkM procoduros 88l
sion, and, if dosirod, his or hor roprosonlalivo. Tho nanagor rosponsibIo for
porsonnoI rocords lho rosuIl of lho nooling in vriling and issuos copios lo aII
concornod.
3. If lho onpIoyoo is sliII nol salisfiod vilh lho docision, ho or sho nay appoaI lo
lho approprialo diroclor. Tho nooling lo hoar lhis appoaI is hoId vilhin fivo
vorIing days of lho roquosl and is allondod by lho diroclor, lho nanagor
rosponsibIo for porsonnoI, lho onpIoyoo naIing lho appoaI, and, if dosirod,
his or hor roprosonlalivo. Tho nanagor rosponsibIo for porsonnoI rocords lho
rosuIl of lhis nooling in vriling and issuos copios lo aII concornod.
Divciplinary procedure (part 1)
lCLlCY
Il is lho poIicy of lho conpany lhal if discipIinary aclion has lo bo laIon againsl
onpIoyoos il shouId:
bo undorlaIon onIy in casos vhoro good roason and cIoar ovidonco oxisl,
bo approprialo lo lho naluro of lho offonco lhal has boon connillod,
bo dononslrabIy fair and consislonl vilh provious aclion in siniIar circun-
slancos,
laIo pIaco onIy vhon onpIoyoos aro avaro of lho slandards lhal aro oxpoclod
of lhon or lho ruIos vilh vhich lhoy aro roquirod lo conforn,
aIIov onpIoyoos lho righl lo bo roprosonlod by a roprosonlalivo or coIIoaguo
during any fornaI procoodings,
aIIov onpIoyoos lho righl lo Inov oxaclIy vhal chargos aro boing nado
againsl lhon and lo rospond lo lhoso chargos,
aIIov onpIoyoos lho righl of appoaI againsl any discipIinary aclion.
kLLLS
Tho conpany is rosponsibIo for onsuring lhal up-lo-dalo ruIos aro pubIishod and
avaiIabIo lo aII onpIoyoos.
lkCCLDLkL
Tho procoduro is carriod oul in lho foIIoving slagos:
1. lnjcrmcl ucrning. AvorbaI or infornaI varning is givon lo lho onpIoyoo in lho
firsl inslanco or inslancos of ninor offoncos. Tho varning is adninislorod by
lho onpIoyoo's innodialo loan Ioador or nanagor.
2. lcrmcl ucrning. Avrillon fornaI varning is givon lo lho onpIoyoo in lho firsl
inslanco of noro sorious offoncos or aflor ropoalod inslancos of ninor
offoncos. Tho varning is adninislorod by lho onpIoyoo's innodialo loan
Ioador or nanagor ÷ il slalos lho oxacl naluro of lho offonco and indicalos any
fuluro discipIinary aclion vhich viII bo laIon againsl lho onpIoyoo if lho
offonco is ropoalod vilhin a spocifiod lino Iinil. A copy of lho vrillon
varning is pIacod in lho onpIoyoo's porsonnoI rocord fiIo bul is doslroyod 12
nonlhs aflor lho dalo on vhich il vas givon, if lho inlorvoning sorvico has
boon salisfaclory. Tho onpIoyoo is roquirod lo road and sign lho fornaI
varning and has lho righl lo appoaI lo highor nanagononl if ho or sho lhinIs
lho varning is un¡uslifiod. Tho HR nanagor shouId bo asIod lo adviso on lho
loxl of lho vrillon varning.
3. luri|cr !isciplincrq cciicn. If, dospilo provious varnings, an onpIoyoo sliII
faiIs lo roach lho roquirod slandards in a roasonabIo poriod of lino, il nay
bocono nocossary lo considor furlhor discipIinary aclion. Tho aclion laIon
nay bo up lo lhroo days' susponsion vilhoul pay, or disnissaI. In oilhor caso
lho doparlnonlaI nanagor shouId discuss lho nallor vilh lho porsonnoI
nanagor boforo laIing aclion. Slaff boIov lho ranI of doparlnonlaI nanagor
nay onIy roconnond discipIinary aclion lo highor nanagononl, oxcopl
vhon lhoir nanagor is nol prosonl (for oxanpIo, on nighl-shifl), vhon lhoy
nay suspond lho onpIoyoo for up lo ono day ponding an inquiry on lho
foIIoving day. DiscipIinary aclion shouId nol bo confirnod unliI lho appoaI
procoduro has boon carriod oul.
CAlAßlLl1Y lkCCLDLkL
Sono organizalions doaI vilh nallors of capabiIily undor a discipIinary procoduro,
bul lhoro is a good caso lo bo nado for doaIing vilh poor porfornanco issuos sopa-
raloIy, Ioaving lho discipIinary procoduro lo bo invoIod for silualions such as poor
linoIooping. An oxanpIo of a capabiIily procoduro foIIovs.
HkM procoduros 883
Divciplinary procedure (part 2)
SLMMAkY DlSMlSSAL
An onpIoyoo nay bo sunnariIy disnissod (io givon inslanl disnissaI vilhoul
nolico) onIy in lho ovonl of gross nisconducl, as dofinod in conpany ruIos. OnIy
doparlnonlaI nanagors and abovo can roconnond sunnary disnissaI, and lho
aclion shouId nol bo finaIizod unliI lho caso has boon discussod vilh lho HR
nanagor and lho appoaI procoduro has boon carriod oul. To onabIo lhis roviov lo
laIo pIaco, onpIoyoos shouId bo suspondod ponding furlhor invosligalion, vhich
nusl laIo pIaco vilhin 24 hours.
AllLALS
In aII circunslancos, an onpIoyoo nay appoaI againsl susponsion, disnissaI vilh
nolico, or sunnary disnissaI. Tho appoaI is conduclod by a nonbor of nanago-
nonl vho is noro sonior lhan lho nanagor vho iniliaIIy adninislorod lho disci-
pIinary aclion. Tho HR nanagor shouId aIso bo prosonl al lho hoaring. If ho or sho
vishos, lho onpIoyoo nay bo roprosonlod al lho appoaI by a foIIov onpIoyoo of
his or hor ovn choico. AppoaI againsl sunnary disnissaI or susponsion shouId
bo hoard innodialoIy. AppoaIs againsl disnissaI vilh nolico shouId bo hoId
vilhin lvo days. No discipIinary aclion lhal is sub¡ocl lo appoaI is confirnod unliI
lho oulcono of lho appoaI.
If an appoaI againsl disnissaI (bul nol susponsion) is ro¡oclod al lhis IovoI, lho
onpIoyoo has lho righl lo appoaI lo lho chiof oxoculivo. Tho hoad of HR and, if
roquirod, lho onpIoyoo's roprosonlalivo shouId bo prosonl al lhis appoaI.
Capahility procedure
lCLlCY
Tho conpany ains lo onsuro lhal porfornanco oxpoclalions and slandards aro
dofinod, porfornanco is nonilorod and onpIoyoos aro givon approprialo food-
bacI, lraining and supporl lo nool lhoso slandards.

1. If a nanagor/loan Ioador boIiovos lhal an onpIoyoo's porfornanco is nol up
lo slandard an infornaI discussion viII bo hoId vilh lho onpIoyoo lo lry lo
oslabIish lho roason and lo agroo lho aclions roquirod lo inprovo porfornanco
by lho onpIoyoo and/or lho nanagor/loan Ioador. If, hovovor:
(a) il is agrood lhal lho oslabIishod slandards aro nol roasonabIy allainabIo,
lhoy viII bo roviovod,
(b) il is oslabIishod lhal lho porfornanco probIons aro roIalod lo lho
onpIoyoo's porsonaI Iifo, lho nocossary counsoIIing/supporl viII bo
providod,
(c) il is docidod lhal lho poor porfornanco onanalos fron a chango in lho
organizalions' slandards, lhoso slandards viII bo oxpIainod lo lho
onpIoyoo and hoIp viII bo offorod lo oblain confornily vilh lho slan-
dards,
(d) il is apparonl lhal lho poor porfornanco conslilulos nisconducl, lho
discipIinary procoduro viII bo invoIod.
2. ShouId lho onpIoyoo shov no (or insufficionl) inprovononl ovor a dofinod
poriod (vooIs/nonlhs), a fornaI inlorviov viII bo arrangod vilh lho
onpIoyoo (logolhor vilh a roprosonlalivo if so dosirod). Tho ains of lhis inlor-
viov viII bo lo:
(a) oxpIain cIoarIy lho shorlfaII bolvoon lho onpIoyoo's porfornanco and lho
roquirod slandard,
(b) idonlify lho causo(s) of lho unsalisfaclory porfornanco and lo dolornino
vhal ÷ if any ÷ ronodiaI lroalnonl (og lraining, rolraining, supporl, olc)
can bo givon,
(c) oblain lho onpIoyoo's connilnonl lo roaching lhal slandard,
(d) sol a roasonabIo poriod for lho onpIoyoo lo roach lho slandard and agroo
on a noniloring syslon during lhal poriod, and
(o) loII lho onpIoyoo vhal viII happon if lhal slandard is nol nol.
Tho oulcono of lhis inlorviov viII bo rocordod in vriling and a copy viII bo
givon lo lho onpIoyoo.
kLDLNDANCY lkCCLDLkL
Rodundancy procoduros ain lo nool slalulory, olhicaI and praclicaI considoralions
vhon doaIing vilh lhis painfuI procoss. An oxanpIo of a procoduro is givon boIov.
HkM procoduros 885
3. Al lho ond of lho roviov poriod a furlhor fornaI inlorviov viII bo hoId, al
vhich lino:
(a) if lho roquirod inprovononl has boon nado, lho onpIoyoo viII bo loId of
lhis and oncouragod lo nainlain lho inprovononl,
(b) if sono inprovononl has boon nado bul lho slandard has nol yol boon
nol, lho roviov poriod viII bo oxlondod,
(c) if lhoro has boon no discornibIo inprovononl lhis viII bo indicalod lo lho
onpIoyoo and considoralion viII bo givon lo vholhor lhoro aro aIlorna-
livo vacancios lhal lho onpIoyoo vouId bo conpolonl lo fiII, if lhoro aro,
lho onpIoyoo viII bo givon lho oplion of accopling such a vacancy or
boing disnissod,
(d) if such vacancios aro avaiIabIo, lho onpIoyoo viII bo givon fuII dolaiIs of
lhon in vriling boforo boing roquirod lo naIo a docision,
(o) in lho absonco of suilabIo aIlornalivo vorI, lho onpIoyoo viII bo
infornod and invilod lo givo his or hor viovs on lhis boforo lho finaI
docision is laIon, lo laIo discipIinary aclion, incIuding disnissaI.
4. EnpIoyoos nay appoaI againsl lhoir disnissaI. Tho appoaI nusl bo nado
vilhin lhroo vorIing days.
Redundancy procedure (part 1)
DLllNl1lCN
Rodundancy is dofinod as lho silualion in vhich nanagononl docidos lhal an
onpIoyoo or onpIoyoos aro surpIus lo roquirononls in a parlicuIar occupalion
and cannol bo offorod suilabIo aIlornalivo vorI.
EnpIoyoos nay bo surpIus lo roquirononls bocauso changos in lho ocononic
circunslancos of lho conpany noan lhal fovor onpIoyoos aro roquirod, or
bocauso changos in nolhods of vorIing noan lhal a ¡ob no Iongor oxisls in ils
provious forn. An onpIoyoo vho is givon nolico bocauso ho or sho is unsuilabIo
or inofficionl is nol rogardod as rodundanl and vouId bo doaIl vilh in accordanco
vilh lho usuaI discipIinary or capabiIily procoduro.
CßlLC1lVLS
Tho ob¡oclivos of lho procoduro aro lo onsuro lhal:
onpIoyoos vho nay bo affoclod by lho disconlinuanco of lhoir vorI aro givon
fair and oquilabIo lroalnonl,
lho nininun disruplion is causod lo onpIoyoos and lho conpany,
as far as possibIo, changos aro offoclod vilh lho undorslanding and agroononl
of lho unions and onpIoyoos concornod.
lklNCllLLS
Tho principIos govorning lho procoduro aro as foIIovs:
Tho lrado unions concornod viII bo infornod as soon as possibIo of lho possi-
biIily of rodundancy.
Evory allonpl viII bo nado lo:
÷ absorb rodundancy by lho naluraI vaslago of onpIoyoos,
÷ find suilabIo aIlornalivo onpIoynonl vilhin lho conpany for onpIoyoos
vho nighl bo affoclod, and provido lraining if lhis is nocossary,
÷ givo individuaIs roasonabIo varning of ponding rodundancy in addilion
lo lho slalulory poriod of nolico.
If aIlornalivo onpIoynonl in lho conpany is nol avaiIabIo and noro lhan ono
individuaI is affoclod, lho faclors lo bo laIon inlo considoralion in dociding
vho shouId bo nado rodundanl viII incIudo:
÷ Ionglh of sorvico vilh lho conpany,
÷ ago (ospociaIIy lhoso vho couId bo rolirod oarIy),
÷ vaIuo lo lho conpany,
÷ opporlunilios for aIlornalivo onpIoynonl oIsovhoro.
Tho firsl lhroo of lhoso faclors shouId nornaIIy bo rogardod as lho nosl
inporlanl, olhor lhings boing oquaI, hovovor, Ionglh of sorvico shouId bo lho
dolornining faclor.
Tho conpany viII naIo ovory ondoavour lo hoIp onpIoyoos find aIlornalivo
vorI if lhal is nocossary.
HkM procoduros 887
lkCCLDLkL
Tho procoduro for doaIing vilh onpIoyoos vho aro surpIus lo roquirononls is sol
oul boIov.
Rcvícv of cmpío,cc rcquírcmcn|·
Managononl viII conlinuousIy Ioop undor roviov possibIo fuluro dovoIopnonls
vhich nighl affocl lho nunbor of onpIoyoos roquirod, and viII proparo ovoraII
pIans for doaIing vilh possibIo rodundancios.
\ca·urc· |o avoíd rcdundancíc·
If lho IiIoIihood of rodundancy is forosoon, lho conpany viII inforn lho union(s),
oxpIaining lho roasons, and in consuIlalion vilh lho union(s) viII givo considora-
lion lo laIing approprialo noasuros lo provonl rodundancy.
DoparlnonlaI nanagors viII bo varnod by lho nanagononl of fuluro dovoIop-
nonls lhal nighl affocl lhon in ordor lhal dolaiIod pIans can bo nado for running
dovn slaff, rolraining, or lransfors.
DoparlnonlaI nanagors viII bo oxpoclod lo Ioop undor roviov lho vorI silua-
lion in lhoir doparlnonls in ordor lhal conlingoncy pIans can bo proparod and lho
nanagor rosponsibIo for porsonnoI varnod of any IiIoIy surpIusos.
Con·uí|a|íon on rcdundancíc·
If aII noasuros lo avoid rodundancy faiI, lho conpany viII consuIl lho union(s) al
lho oarIiosl opporlunily in ordor lo roach agroononl.
Scícc|íon of rcdundan| cmpío,cc·
In lho ovonl of inponding rodundancy, lho individuaIs vho nighl bo surpIus lo
roquirononls shouId bo soIoclod by lho doparlnonlaI nanagor vilh lho advico of
lho nanagor rosponsibIo for porsonnoI on lho principIos lhal shouId bo adoplod.
Tho nanagor rosponsibIo for porsonnoI shouId oxpIoro lho possibiIilios of lrans-
forring affoclod slaff lo aIlornalivo vorI.
Tho nanagor rosponsibIo for porsonnoI shouId inforn nanagononl of
proposod aclion (oilhor rodundancy or lransfor) lo oblain approvaI.
Tho union(s) viII bo infornod of lho nunbors affoclod bul nol of individuaI
nanos.
An approprialo diroclor viII hoar any appoaIs vilh lho nanagor rosponsibIo for
porsonnoI.
Tho nanagor rosponsibIo for porsonnoI viII onsuro lhal aII lho roquirod adnin-
islralivo arrangononls aro nado.
If lho union(s) havo any poinls lo raiso aboul lho soIoclion of onpIoyoos or lho
aclions laIon by lho conpany, lhoso shouId bo discussod in lho firsl pIaco vilh lho
nanagor rosponsibIo for porsonnoI. If lho rosuIls of lhoso discussions aro unsalis-
faclory, a nooling viII bo arrangod vilh an approprialo diroclor.
Aí|crna|ívc vor| ví|hín |hc compan,
If an onpIoyoo is offorod and accopls suilabIo aIlornalivo vorI vilhin lho
conpany, il viII laIo offocl vilhoul a broaI fron lho provious onpIoynonl and
viII bo confirnod in vriling. If lho offor is rofusod, lho onpIoyoo nay forfoil his or
hor rodundancy paynonl. EnpIoyoos viII rocoivo approprialo lraining and viII
bo onlilIod lo a four-vooI lriaI poriod lo soo if lho vorI is suilabIo. This lriaI
poriod nay bo oxlondod by nuluaI agroononl lo provido addilionaI lraining.
During lhis poriod, onpIoyoos aro froo lo lorninalo lhoir onpIoynonl and if lhoy
do, vouId bo lroalod as if lhoy had boon nado rodundanl on lho day lho oId ¡ob
ondod. Thoy vouId lhon rocoivo any rodundancy pay lo vhich lhoy aro onlilIod.
Aí|crna|ívc cmpío,mcn|
EnpIoyoos for vhon no suilabIo vorI is avaiIabIo in lho conpany viII bo givon
roasonabIo opporlunilios lo IooI for aIlornalivo onpIoynonl.
Tho doparlnonlaI nanagor and lho HR nanagor rosponsibIo for porsonnoI viII
¡oinlIy inlorviov lho onpIoyoos affoclod oilhor lo offor a lransfor or, if a suilabIo
aIlornalivo is nol avaiIabIo, lo inforn lhon lhoy viII bo rodundanl. Al lhis inlor-
viov, fuII infornalion shouId bo avaiIabIo lo givo lo lho onpIoyoo on, as appro-
prialo:
lho roasons for boing surpIus,
lho aIlornalivo ¡obs lhal aro avaiIabIo,
lho dalo vhon lho onpIoyoo viII bocono surpIus (lhal is, lho poriod of nolico),
lho onlilIononl lo rodundancy pay,
lho onpIoyoo's righl lo appoaI lo an approprialo diroclor,
lho hoIp lho conpany viII provido.
Computorìzod humun rosourco
ìnlormutìon systoms
As dofinod by KollIoy and RoiIIy (2003), a conpulorizod hunan rosourco infornalion
syslon consisls of á fuIIy inlogralod, organizalion-vido nolvorI of HR-roIalod dala,
infornalion, sorvicos, dalabasos, looIs and lransaclions'. Such a syslon can bo
doscribod as ó-HR', noaning ´lho appIicalion of convonlionaI, vob and voico loch-
noIogios lo inprovo HR adninislralion, lransaclions and procoss porfornanco'. Thoy
suggosl lhal lho roasons for adopling o-HR aro:
HR sorvico inprovononl,
cosl-culling and oporalionaI officioncy,
lho dosiro of lho HR funclion lo chango lho naluro of ils roIalionship vilh
onpIoyoos and Iino nanagors,
lho lransfornalion of HR inlo a cuslonor-focusod and rosponsivo funclion,
lho offor of sorvicos lhal fil lho nov vorId of vorI and aro allraclivo lo curronl
and fuluro slaff.

ßLNLll1S Cl A CCMlL1LklZLD HLMAN kLSCLkCL
lNlCkMA1lCN SYS1LM
According lo IDS (2002), lho bonofils of a conpulorizod hunan rosourco nanagononl
syslon aro:
incroasod accoss lo HR dala,
slroanIinod and slandardizod procossos,
noro consislonl and accuralo dala,
a highor inlornaI profiIo for HR.
Hk lNlCkMA1lCN S1kA1LCY
Tho HR slralogy of an organizalion in roIalion lo HR infornalion is concornod
firsl vilh lho uso of conpulorizod infornalion for slralogic docision naIing,
socond vilh lho rango of appIicalions vhich shouId bo incIudod in lho syslon
and finaIIy vilh lho provision lo Iino nanagors of lho faciIily lo havo dirocl accoss
lo any porsonnoI dala lhoy nood lo nanago lhoir ovn loans in a dovoIvod organiza-
lion.
S|ra|cgíc dccí·íon |a|íng
Tho slralogic aroas invoIving conpulorizod infornalion and lho InovIodgo gainod
fron anaIysing lhal infornalion incIudo nacro concorns aboul organizalion, hunan
rosourco roquirononls, lho uliIizalion of hunan rosourcos, onpIoyoo dovoIopnonl
and organizalionaI hoaIlh.
SpocificaIIy lho infornalion nay focus on aroas such as:
organizalion dovoIopnonl ÷ hov lho slrucluro nay nood lo adapl lo fuluro noods
and hov IT can onabIo slrucluraI chango, for oxanpIo, high porfornanco loan
slrucluros,
hunan rosourco pIans, ospociaIIy lhoso concornod vilh ńapping' fuluro conpo-
lonco roquirononls and onIarging lho sIiIIs baso,
dolorninalion of fuluro dovoIopnonl and lraining noods,
dolorninalion of lho porfornanco and porsonaIily characlorislics of lho poopIo
vho viII bo succossfuI in lho organizalion,
assossnonl of lho ´hoaIlh' of lho organizalion noasurod by alliludo survoys and
lurnovor and absonco slalislics, Ioading lo lho dovoIopnonl of nolivalion, rolon-
lion and absonco conlroI slralogios,
anaIysis of produclivily IovoIs as lho basis for produclivily inprovononl
progrannos,
anaIysis of lho scopo for culling dovn lho nunbor of onpIoyoos ÷ laIing unnoc-
ossary cosls oul of lho businoss.
Rangc of appííca|íon·
Thoro is an innonso rango of appIicalions lo chooso fron, slarling fron basic
onpIoyoo rocords and oxlonding lo highIy sophislicalod óxporl' syslons vhich focus
on fundanonlaI HR docision aroas.
1HL lLNC1lCNS Cl A CCMlL1LklZLD Hk SYS1LM
Tho basic funclions of a conpulorizod HR syslon aro lo:
hoId porsonaI dolaiIs aboul individuaI onpIoyoos incIuding caroor hislory, sIiIIs
and quaIificalions, Ioavo and absonco rocords,
hoId dolaiIs aboul onpIoyoos' ¡obs, incIuding grado, pay and bonofils, hours,
Iocalions, ¡ob doscriplion or roIo dofinilion,
produco roporls sunnarizing difforonl aspocls of lhis infornalion.
Tho addilionaI ´funclionaIily' lhal a syslon can incorporalo conprisos:
lho rocording and anaIysis of absonco, allondanco and Iabour lurnovor, vhich
incIudos naIing conparisons bolvoon difforonl occupalions and Iocalions and
producing dala on lronds,
rocruilnonl and lraining adninislralion,
¡ob ovaIualion,
sophislicalod nodoIIing looIs for such aclivilios as hunan rosourco pIanning and
rovard nanagononl, vhich onabIo lho syslon lo bo usod lo supporl slralogic
docision-naIing,
IinIagos lo lho inlornol (for oxanpIo as parl of an inlornol rocruilnonl syslon) or
lo lho inlornaI inlranol.
Il is usofuI lo dislinguish bolvoon lransaclionaI (HR procossos such as rocords,
rocruilnonl and o-Ioarning) appIicalion and roIalionaI syslons (connunicalion,
InovIodgo nanagononl and onhancing lho onpIoyor brand).
Syslons nay bo conpIoloIy inlogralod vilh payroII, or noro connonIy lhoy
Computorìzod Hk ìnlormutìon systoms 89l
nainlain a dirocl IinI. Sono syslons aro onliroIy sland-aIono. Thoro nay bo ono
conprohonsivo soflvaro pacIago lo covor aII appIicalions, or spociaIizod soflvaro for
such funclions as allondanco nanagononl or ¡ob ovaIualion nay bo usod.
1HL 1LCHNlCAL lNlkAS1kLC1LkL
Human rc·ourcc ínforma|íon ·,·|cm
This providos lho infornalion roquirod lo nanago HR procossos. Thoso nay bo coro
onpIoyoo dalabaso and payroII syslons bul can bo oxlondod lo incIudo such syslons
as rocruilnonl, o-Ioarning, porfornanco nanagononl and rovard. Tho syslon nay
bo vob-basod, onabIing accoss lo bo ronolo or onIino and al any lino.
HR/corpora|c ín|ranc|
An inlranol is an oIoclronic nolvorI lhal onabIos infornalion lo bo connunicalod
across organizalions. Il posls slalic dala such as infornalion on HR poIicios and
connunicalions aboul onpIoyoo faciIilios such as Ioarning opporlunilios and fIoxibIo
bonofils. Il can incIudo IinIs lhal onabIo nanagors and olhor onpIoyoos lo inlorfaco
diroclIy vilh HR appIicalions and naIo changos or onquirios.
ß2L por|aí
AB2E porlaI providos a singIo inlranol scroon lhal onabIos lho organizalion lo galhor
and prosonl infornalion and givos poopIo roady accoss lo il.
Appííca|íon ·crvícc provídcr
An appIicalion sorvico providor (ASI) carrios oul on bohaIf of lho organizalion aII
or nuch of lho adninislralion of lho hunan rosourco infornalion syslon.
Organizalions, oflon snaIIor or nodiun-sizod, can uso an ASI lo oulsourco lho
burdon of running lho syslon.
kA1lNC Cl SYS1LM lLA1LkLS
Rosoarch conduclod by lho IID and lho Inslilulo for EnpIoynonl Sludios (IID,
1999b) oslabIishod lhal lho syslons foaluros ralod highIy by organizalions voro:
onpIoyoo rocords,
payroII,
sicI pay and nalornily pay caIcuIalions,
oquaI opporlunily noniloring,
produclion of slandard Iollors and conlracls,
absonco rocording and noniloring,
annuaI Ioavo rocords,
onquirios,
allondanco rocording,
discipIinary rocording.
Tho foaluros lhal voro nol so highIy ralod voro:
psychonolric losling,
IiI ovaIualion,
shifl or roslor pIanning,
organizalion charling,
succossion pIanning,
'vhal-if' nodoIIing,
¡obs/sIiIIs nalching,
vorIforco pIanning,
lraining noods anaIysis,
appraisaI rocords,
saIary nodoIIing.
AN LllLC1lVL SYS1LM
Tho IID guido on using conpulorizod porsonnoI syslons (1999b) slalos lhal an offoc-
livo syslon viII havo lho foIIoving foaluros:
nools businoss noods,
usor-friondIinoss,
good roporling faciIilios,
fIoxibiIily,
vaIuo for nonoy,
good suppIior supporl,
roIiabiIily.
Computorìzod Hk ìnlormutìon systoms 893
lkCßLLMS AND HC\ 1C DLAL \l1H 1HLM
Tho 1999 IID guido Iisls a nunbor of lypicaI probIons and suggosls hov lhoy can bo
doaIl vilh. Tho probIons and lhoir soIulions aro sol oul in TabIo 59.1.
ínvoívíng íínc managcr·
Wilh lho univorsaI avaiIabiIily of porsonaI conpulors (ICs) and lho dovoIopnonl of
dislribulod dala procossing in IocaI aroa nolvorIs (LANS) and lho vido aroa
|robícm Soíu|íon
loor dutu quuíìty luy purtìcuíur uttontìon to gottìng uccuruto dutu ìnto tho
systom by truìnìng und monìtorìng
Luck ol undorstundìng ol tho lrovìdo ćontoxtuuí truìnìng' covorìng:
systom by usors dutu sourcos tvho provìdos tho dutu und ìn vhut
lorm)
vhy dìlloront pìocos ol dutu uro coííoctod
íìnks to othor systoms
lnudoquuto codìng ol dutu 1uko curo ìn sottìng up codìng structuros und truìn
producìng unhoípluí roports usors ìn hov to uso codos
Luck ol cíurìty ubout rosponsìbìíìtìos Lnsuro thut curo ìs tukon ìn spocìlyìng rosponsìbìíìtìos
lor gonorutìng ìnlormutìon on hov und spoííìng out hov ìnlormutìon cun bo usod
tho systom cun bo usod to supportod by truìnìng und contìnuìng guìdunco tu ´hoíp
gonoruto usoluí ìnlormutìon íìno' to u systoms or notvorks munugor ìs u good ìdou)
lnudoquuto roportìng cupubìíìty - Dolìno roport spocìlìcutìons curoluííy ìn udvunco
thìs ìs un uspoct ol systoms thut 1uko curo ìn dosìgnìng roport íuyouts und contonts on
cuusos most dìssutìsluctìon tho busìs ol survoys ol usor noods
Chock vìovs ubout tho quuíìty ol roports und
umond thom us nocossury
Lìno munugors rosont huvìng to Mìnìmìzo lorm lìííìng
contrìbuto or muìntuìn Lnsuro thut munugors cun uccoss tho systom ousìíy,
ìnlormutìon possìbíy vìu tho ìntrunot
Advìso munugors on hov thoy cun uso tho systom
to thoìr bonolìt
TabIc 59.1 Conpulor syslon probIons and soIulions
nolvorIs (WANS), il is possibIo for dala for uso by Iino nanagors lo bo dovnIoadod
fron lho conlro (a nainfrano, niniconpulor or UNIX syslon). Managors can aIso
nainlain lhoir ovn dala and nanipuIalo lho figuros by lho uso of sproadshools, for
oxanpIo, considoring aIlornalivo vays of dislribuling lhoir budgol for a payroII
incroaso anong lhoir slaff. AII lhis viII, of courso, bo sub¡oclod lo inlonsivo socurily so
lhal infornalion goos onIy lo aulhorizod poopIo and sono dala nay bo on a ´road
onIy' basis.
Tho slralogy for oxlonding lho syslon lo Iino nanagors viII cIoarIy bo onliroIy
dopondonl on lho organizalion´s poIicios for dovoIving porsonnoI docisions lo lhon.
Bul if lhis is lho poIicy, ils inpIononlalion viII bo nuch noro IiIoIy lo laIo pIaco if
lho infornalion roquirod by Iino nanagors is nado avaiIabIo.
DLVLLCllNC A CCMlL1LklZLD Hk lNlCkMA1lCN
SYS1LM
Tho dosign docisions lhal havo lo bo nado vhon dovoIoping an o-HR syslon aro
concornod vilh lho lypo and proporlion of sorvicos lo bo doIivorod, lho bosl noans of
doIivory and lho uso of lho syslon sharod by HR sorvico conlros. Tho chaIIongos, as
doscribod by KollIoy and RoiIIy (2003) aro:
aIigning o-HR invoslnonl vilh lho slralogy of lho businoss,
laIing inlo accounl lho noods of a variod vorIforco, incIuding lhoir accoss lo and
faniIiarily vilh lochnoIogy,
cuslonizing o-HR,
avoiding infornalion ovorIoad,
naIing an inpacl on HR and organizalionaI porfornanco.
Thoy onphasizo lhal il is inporlanl lo avoid sinpIy conpulorizing an oxisling
procoss. Il is nocossary lo laIo a ´procoss lhinIing' approach, io lo rodosign lho
procoss and lhon conpulorizo. This nighl invoIvo significanl slroanIining of oxisling
procossos.
Cvcraíí approach
Tho foIIoving aro lho lypicaI slagos in lho dovoIopnonl of an HR infornalion syslon.
EslabIish lho curronl and fuluro noods of lho businoss and hov lhoso inpingo on
HR, and lho inpIicalions for infornalion syslons.
Dofino vhal oulpuls aro roquirod fron lho syslon in lho forn of infornalion and
roporls.
Iroparo a high-IovoI slalononl of roquirononl.
Idonlify lho oplions avaiIabIo lo nool lho HR businoss roquirononls.
Iroparo a roconnondalion on hov lo procood for oxoculivo approvaI and buy-in.
This nusl bo supporlod bolh by a financiaI ovaIualion and by an anaIysis of lho
bonofils lo lho businoss and any associalod changos in businoss praclicos. A lran-
silion pIan viII bo roquirod vhich sols oul lho soquonco of aclivilios lhal vouId
aIIov lho organizalion lo novo sviflIy and officionlIy lo any nov syslon vilh lho
nininun of disruplion.
|rcfcrrcd charac|crí·|íc· of an ínforma|íon ·,·|cm
Tho proforrod characlorislics of an infornalion syslon aro:
dirocl inpul of dala al sourco,
syslons lhal can bo usod by lho óccasionaI usor', nol ¡usl a dodicalod oxporl,
syslons abIo lo doaI vilh adninislralivo procossos, nol sinpIy a nanagononl
infornalion syslon,
syslons lhal provido lho infornalion noodod by Iino nanagors in an oasiIy undor-
slood fornal.
Tho rango of appIicalions viII bo dofinod by lho infornalion slralogy. Il viII bo vilaI
lo onsuro lhal lho hardvaro is approprialo lo lho organizalionaI roquirononls in lhal
ICs and lorninaIs aro providod vhoro noodod and aro IinIod logolhor in a nolvorI
as roquirod.
Il is oquaIIy ossonliaI lo onsuro lhal lho syslon is dosignod in such a vay as lo hoId
aII lho baso dala noodod lo provido nanagononl infornalion. Tho syslon shouId bo
usor-friondIy, boaring in nind lhal lho lasI vhich donands nosl lino in using a
syslon is dala onlry and lhal lho onquiry syslon for oblaining infornalion nusl bo as
oasy lo Ioarn and uso as possibIo.
Tho dolaiIod poinls lo bo considorod vhon dovoIoping a syslon aro:
lho choico of hardvaro,
dalabaso nanagononl,
lho dogroo lo vhich lho syslon is inlogralod vilh lho payroII,
lho choico of soflvaro,
lho dovoIopnonl progranno.
Choícc of hardvarc
Thoro nay bo no choico of hardvaro ÷ sono syslons aro sliII IinIod lo a nainfrano
conpulor. Bul nolvorIod IC syslons using oilhor nini or nicroconpulors aro
connon, ospociaIIy in Iargor organizalions.
Da|aba·c managcmcn|
Tho syslon shouId bo foundod on a dalabaso ÷ a soIf-doscribing coIIoclion of inlo-
gralod porsonnoI rocords. IarlicuIar allonlion has lo bo paid lo lho dalabaso nanago-
nonl syslon (DBMS), lho progran or sol of prograns lhal dovoIops and usos lho
dalabaso and dalabaso appIicalions. CarofuI allonlion has aIso lo bo givon lo lho
dosign of dalabaso forns: dala onlry forns vhich aro cuslon dovoIopod, vidoo
dispIays usod lo onlor and chango dala, quorios using slandard quory Ianguago (SQL)
and roporl forns vhich aro lho hard copy oulpul of dalabaso dala. Tho baso dala is
IiIoIy lo bo of nuch bollor quaIily if il is usod in such day-lo-day procossos as rocruil-
nonl, lraining adninislralion and ¡ob ovaIualion.
ín|cgra|íon
AIlhough nany organizalions havo soparalod lho payroII and puroIy porsonnoI
appIicalions (lho fornor usuaIIy boing conlroIIod by lho accounls doparlnonl), lhoro
is a Iol lo bo said for having an inlogralod syslon. This naIos ocononic uso of ono
conprohonsivo dalabaso and faciIilalos such procossos as fIoxibIo paynonl (cafoloria)
syslons.
Sof|varc
Thoro is a nassivo and aInosl boviIdoring choico of soflvaro pacIagos for appIica-
lion prograns lo provido infornalion and gonoralo roporls. Tho soflvaro housos aro
conslanlIy innovaling and dovoIoping lhoir producls and bolvoon lhon provido
sonolhing for ovoryono. Hovovor, if lho organizalion has ils ovn syslons anaIysis
and progranning rosourcos lhoro aro advanlagos in dovoIoping laiIor-nado sofl-
varo. Bul groal caro viII nood lo bo laIon lo dobug lho syslon, ospociaIIy if a dislrib-
ulod syslon invoIving Iino nanagors is boing croalod.
Hovovor, nosl organizalions uso an oxlornaI suppIior aIlhough lho HR appIicalion
narIol is highIy fragnonlod, as an IRSI (2004i) survoy inlo lho uso of hunan rosourco
nanagononl infornalion syslons found. Tho lvo basic approachos aro lho ínlo-
gralod bosl-of-brood nodoI', vhich IinIs appIicalions fron soparalo spociaIisl
providors lo produco vhal is in offocl a bospoIo syslon, or lho áppIicalion suilo'
nodoI, vilh ono vondor suppIying a IinIod group of noduIos. If an oxlornaI suppIior
is usod lho choico shouId bo nado as foIIovs:
rosoarch lho HR soflvaro narIol lhrough lrado oxhibilions and pubIicalions,
roviov HR procossos and oxisling syslons,
produco a spocificalion of syslon roquirononls,
sond an invilalion lo londor lo sovoraI suppIiors,
invilo suppIiors lo dononslralo lhoir producls,
oblain roforoncos fron oxisling cuslonors, incIuding silo visils,
anaIyso and scoro lho producl againsl lho spocificalion.
Thc dcvcíopmcn| programmc
Tho 10 slops roquirod lo dovoIop and inpIononl an infornalion syslon aro:
1. Dolornino ob¡oclivos ÷ aro lhoy lo savo adninislralivo cosls, spood up
procossing, provido advancod docision supporl, or a conbinalion of any of
lhoso`
2. Iroparo a businoss caso for lho syslon, solling oul lho bonofils and lho cosls.
3. Carry oul a foasibiIily sludy lo considor appIicalions and lhoir IiIoIy cosls and
bonofils. This sludy couId bo carriod oul in-houso or vilh lho hoIp of oulsido
consuIlanls or soflvaro housos vho provido a consuIlancy sorvico. Tho foasi-
biIily sludy viII broadIy anaIyso and dofino usor roquirononls and onsuro lhal aII
concornod aro avaro of vhal is boing pIannod, hov lhoy viII bonofil fron il and
lho conlribulion lhoy viII bo oxpoclod lo naIo lo lho dovoIopnonl and appIica-
lion of lho syslon. Tho infornalion lho syslon viII bo roquirod lo sloro and
procoss and lho usos lo vhich lho infornalion viII bo pul shouId bo spocifiod.
Accounl shouId bo laIon of lho provisions of lho Dala Iroloclion Acl (1998) as
doscribod in Chaplor 55.
4. Iroparo a roquirononls spocificalion vhich viII sol oul in dolaiI vhal lho syslon
is oxpoclod lo do and hov lho conpany vouId IiIo lo uso il. This spocificalion
can bo usod lo briof hardvaro and soflvaro suppIiors boforo soIocling lho syslon.
5. SoIocl lho syslon in lho forn of lho hardvaro and lho soflvaro roquirod. This
nay invoIvo docisions on lho oxlonl lo vhich oxisling hardvaro or syslons (og
payroII syslons) viII bo usod. Tho nood and scopo for nolvorIing, lhal is, IinIing
usors by noans of lorninaIs, viII aIso nood lo bo considorod.
6. IIan lho inpIononlalion progranno lo onsuro lhal lho ob¡oclivos viII bo
achiovod vilhin a givon lino scaIo and in Iino vilh lho cosl budgol.
7. InvoIvo usors lo onsuro lhal ovoryono vho viII bonofil fron lho syslon (Iino
nanagors as voII as nonbors of lho porsonnoI doparlnonl) can conlribulo
lhoir idoas and lhus fooI lhal il is lhoir syslon ralhor lhan ono inposod upon
lhon.
8. ConlroI lho pro¡ocl againsl lho inpIononlalion progranno lo onsuro lhal il
doIivors vhal is roquirod, on lino and vilhin lho budgol. As 1|c lPD Gui!c cn
lmplcmcniing Ccmpuicrizc! Pcrscnncl Sqsicms (1997b) onphasizos, il is ossonliaI lo
onsuro lhal lho soIoclion and inpIononlalion of a syslon is a nanagod procoss.
This noans soIocling an individuaI lo acl as pro¡ocl nanagor vilh lho rosponsi-
biIily for doaIing vilh aII lho slops Iislod abovo.
9. Irovido lraining lo aII usors lo onsuro lhal lhoy can oporalo and gol lho nosl oul
of lho syslon.
10. Monilor porfornanco lo onsuro lhal lho syslon Iivos up lo oxpoclalions.
AllLlCA1lCNS
As oslabIishod by lho IRSI (2004i) survoy, in nany rospocls lho coro funclionaIily in
uso is concornod vilh adninislralivo procossos, parlicuIarIy absonco nanagononl
(vory popuIar), lraining and dovoIopnonl, rovard, payroII and rocruilnonl and
soIoclion. Mosl HR funclions uso lhoir HRM infornalion syslon lo chango pay ralos,
aIlor onpIoyoo rocords, nonilor absonco figuros and dovnIoad forns for nanuaI
conpIolion. Nol nany organizalions uso lhoir IT syslons slralogicaIIy for vorIforco
pIanning, lracIing lho sIiIIs of individuaIs and naIing lho dala avaiIabIo for anaIysis
and aclion. Sono bul by no noans aII organizalions voro dovoIoping soIf-sorvico
appIicalions such as onpIoyoos changing lhoir porsonaI dolaiIs, and booIing on
lraining coursos diroclIy. Tho nain polonliaI appIicalions aro sunnarizod boIov.
|cr·onaí rccord·
Thoso can incIudo porsonaI dolaiIs, ¡ob dolaiIs, onpIoynonl conlracls, pay dolaiIs,
porfornanco appraisaI, conlacls and addrossos and onpIoyoo lransaclionaI dala. Tho
Iallor incIudos aII lho spociaI ilons of infornalion a conpany nay nood for ils
onpIoyoos incIuding quaIificalions, spociaI sIiIIs and conpoloncos, lraining, absonco,
nodicaI hislory and discipIino.
ßu·ínc·· |o cmpío,cc· ¹ß2L)
As dofinod by Walson Wyall WorIdvido (2002), businoss lo onpIoyoo (B2E) procossos
invoIvo lho appIicalion of any conpulor lochnoIogy onabIing nanagors and
onpIoyoos lo havo dirocl accoss lo HR and olhor vorIpIaco sorvicos for connunica-
lion, porfornanco roporling, loan nanagononl and Ioarning, in addilion lo adninis-
lralivo appIicalions. A soIf-sorvico approach can bo adoplod, vhich aIIovs nanagors
or slaff lo accoss porsonaI rocords and updalo lhon or add nov infornalion, sub¡ocl
lo rigorous socurily arrangononls.
Human rc·ourcc píanníng
An infornalion syslon can bo usod lo nodoI lho offocls on groups of poopIo vilhin
lho organizalion of chango ovor lino in lho nunbors and slrucluro of oach group and
novononls inlo, lhrough and oul of oach group. Such a nodoI IooIs al lho organiza-
lion, using a slaffing syslon consisling of grados and fIovs. Tho usor has considor-
abIo froodon in dofining lho nunbor and lypo of fIovs roquirod vholhor inlo,
lhrough, or oul of oach IovoI of lho syslon, io:
fIovs in ÷ rocruilnonl, lransfors in,
fIovs oul ÷ lransfors oul, rolirononl, rosignalion (unconlroIIod Iossos), oarIy
rolirononl (conlroIIod Iossos).
Lmpío,cc |urnovcr moní|oríng and con|roí
Conpulor nodoIs can nonilor and hoIp in lho conlroI of onpIoyoo lurnovor. Thoy
can lhoroforo provido a crilicaI inpul lo olhor aroas of hunan rosourco docision
naIing such as poIicios on rocruilnonl, pronolion, rodopIoynonl, lraining and
caroor pIanning.
Lmpío,cc ·chcduííng
An infornalion syslon can bo usod lo provido an inlograI syslon for nalching lho
nunbors of onpIoyoos lo businoss noods. Tho procoss of schoduIing hunan rosourcos
lo nool oulpul in procossing largols is boconing incroasingIy conpIox vilh lho avaiI-
abiIily of noro fIoxibIo vays of dopIoying poopIo. Thoy incIudo nuIli-sIiIIing
(onpIoyoos vho aro capabIo of carrying oul difforonl lasIs and aro nol sub¡ocl lo
lrado-union-inposod conslrainls in doing so), lho uso of conlracl vorIors, lho uso of
oulvorIors (poopIo vorIing al hono or in anolhor conlro, a procoss vhich is faciIi-
lalod by conpulor nolvorIing and oIoclronic naiIing), lviIighl shifls, noro parl-
linors, ¡ob sharing olc.
Hunan rosourco pIanning is an inloraclivo procoss vhich is aIvays using oulpul
fron ono parl of lho procoss lo infIuonco anolhor parl of lho procoss. Thus, assoss-
nonls of lho donand and suppIy of poopIo, schoduIing poIicios and possibiIilios, and
lho scopo for fIoxing vorIIoads and lho uso of poopIo aII infIuonco lho hunan
rosourco suppIy poIicios adoplod by lho organizalion.
Lmpío,cc profíííng
IrofiIing is a parlicuIar aspocl of onpIoyoo schoduIing concornod vilh lho nalching
of slaff lo vorIIoads and onsuring lhal lho righl nunbor of poopIo aro avaiIabIo lo
nool fIuclualions in aclivily IovoIs ovor lino. IrofiIing lochniquos aro usod vhoro
lhoro aro noasurabIo voIunos of vorI lhal can bo coslod and forocasl vilh roason-
abIo accuracy. IrofiIing can bo IinIod vilh onpIoyoo budgoling conlroI in lho sonso
lhal lho uso of poopIo is bolh conslrainod and infIuoncod by lho cash budgol and
porfornanco and onpIoyoo oslabIishnonl largols.
IrofiIing nodoIs can bo usod lo:
nonilor and anaIyso onpIoyoo uliIizalion,
losl lho offocls of noving sono aclivilios lo difforonl linos of lho yoar and anaIyso
lhoir prodiclod inpacl on lho onpIoynonl profiIo,
nonilor novononls in oxpondiluro on pay and olhor onpIoyoo bonofils and
carry oul sonsilivily losls on lho inpacl of difforonl pay assunplions,
forocasl fuluro onpIoyoo roquirononls,
synchronizo lho rocruilnonl of pornanonl and lonporary onpIoyoos vilh foro-
casl vorIIoads,
fIox onpIoyoo budgols on lho basis of rovisod aclivily IovoI forocasls,
conlroI onpIoyoo budgols.
S|ííí· ínvcn|oríc· and audí|·
Many organizalions nood lo sloro dolaiIod infornalion aboul lho sIiIIs, conpoloncos
and oxporionco of lho individuaIs lhoy onpIoy. A soparalo sIiIIs invonlory can bo
IinIod lo a porsonnoI dalabaso in ordor lhal any individuaI changos in oxporionco or
addilionaI lraining can bo fod lhrough aulonalicaIIy lo il.
IoriodicaI audils can bo carriod oul by lho infornalion syslon of lho sIiIIs and
conpoloncos avaiIabIo in lho organizalion. Thoso can bo conparod vilh oslinalos of
curronl and fuluro roquirononls lo idonlify aroas vhoro rocruilnonl or lraining
aclion is roquirod.
Compc|cnc, modcíííng
Conpoloncy nodoIIing brings logolhor organizalion pIanning and porfornanco
nanagononl dala lo oslabIish lho sIiIIs or conpoloncios roquirod lo do parlicuIar
Computorìzod Hk ìnlormutìon systoms 90l
¡obs. This assisls in appoinlnonl, pronolion and lraining docisions. Conpoloncy
anaIysis IooIs bolh al vhal lasIs havo lo bo carriod oul and lho conpoloncios
roquirod. IrofiIos can lhon bo dovoIopod by lho conpulor and nalchod lo assoss-
nonls of curronl ¡ob hoIdors or ¡ob appIicanls.
Rccruí|mcn|
A rocruilnonl syslon can carry oul lho foIIoving lasIs:
slorago of appIicanls' dolaiIs,
rolriovaI and anondnonl of lhoso dolaiIs,
nalching CVs lo porson spocificalions for shorl-Iisling purposos,
IinI vilh Inlornol rocruiling procossos,
Iollor vriling (IinIing lho syslon lo vord-procossing faciIilios) ÷ acInovIodgo-
nonls, invilalions lo inlorviov, offors and ro¡oclions,
nanagononl roporls, anaIysis of rosponso by nodia and noniloring rocruilnonl
cosls.
Conpulorizod rocruilnonl conlroI pacIagos nol onIy aulonalo rocruilnonl corro-
spondonco (coupIing lho syslon vilh vord procossors) bul aIso onabIo usors lo dolor-
nino inslanlIy vho has appIiod for vhich posl, lracI progross in rocruiling for a
spocific posl and nalch and procoss inlornaI candidalos (appIicanl lracIing syslons).
Tho dalabaso can bo usod in noro advancod appIicalions lo assisl in oslabIishing
soIoclion profiIos vilh lho slandards againsl vhich polonliaI ¡ob hoIdors can bo
assossod in ordor lhal lho righl poopIo can bo appoinlod lo or pronolod inlo ¡obs.
As roporlod by KollIoy and RoiIIy (2003), lho Unilod Biscuils gradualo rocruilnonl
porlaI is a conpoloncy-basod pro-scrooning looI. Il aIIovs poopIo lo roviov onIino
dolaiIs of lho conpany, ils ¡obs and caroor dovoIopnonl opporlunilios. Inloroslod
appIicanls aro invilod lo go lhrough pro-scrooning by onloring lhoir porsonaI dolaiIs,
fiIing acadonic infornalion, and conpIoling a quoslionnairo focusod on Unilod
Biscuils' high porfornanco bohaviours dorivod fron lho conpany's lop 100
nanagors.
If succossfuI al lhis IovoI, appIicanls aro givon a uniquo passvord onabIing accoss lo
lho vobsilo's noxl IovoI, vhoro appIicalions lo spocific funclions can bo nado.
Rcvard managcmcn|
Tho syslon can bo usod for pay nodoIIing and lo carry oul a nunbor of rovard ad-
ninislralion aclivilios. Il can aIso bo usod in ¡ob ovaIualion.
Iay nodoIs provido lho ansvors lo ´vhal if`' quoslions such as, ´Hov nuch vouId
il cosl if vo gavo x por conl lo lhis parl of lho conpany, y por conl lo anolhor parl of
lho conpany, and inpIononlod lho foIIoving spociaI pacIago across lhoso ¡ob func-
lions`'
Asyslon can aIso:
anaIyso and roporl on avorago pay or pay dislribulions by ¡ob, grado, ago or
Ionglh of sorvico,
caIcuIalo conpa-ralios lo shov hov avorago pay in a rango diffors fron lho largol
pay,
caIcuIalo lho offocls of allrilion,
assisl in ¡ob ovaIualion,
forocasl fuluro payroII cosls on lho basis of assunplions aboul nunbors, prono-
lions and pay IovoIs,
adninislor pay roviovs, producing roviov forns, anaIysing proposaIs againsl lho
budgols and caIcuIaling lho cosl of porfornanco-roIalod pay avards in accor-
danco vilh difforonl assunplions aboul anounls and lho dislribulion of avards
vilhin a budgol,
provido infornalion lo Iino nanagors vhich viII guido lhon lo lhoir pay doci-
sions,
gonoralo inslruclions lo ad¡usl pay as voII as Iollors lo individuaIs inforning
lhon of lhoir incroasos.
An infornalion syslon can hoIp lo oporalo porfornanco nanagononl, gonoraling
forns, anaIysing and roporling on lho rosuIl of porfornanco roviovs shoving lho
dislribulion of poopIo vilh difforonl dogroos of polonliaI or porforning al difforonl
IovoIs, and highIighling individuaIs vilh parlicuIar sIiIIs or spociaI proniso. This
syslon can bo IinIod lo olhors lo provido an inlogralod basis for croaling and inpIo-
nonling hunan rosourco nanagononl poIicios.
Compu|cr-managcd ícarníng
A syslon can bo usod for conpulor-nanagod Ioarning by:
sloring o-Ioarning noduIos on lho dalabaso, vhich onabIos lrainors lo soIocl an
approprialo noduIo or nix of noduIos lo nool a spocifiod Ioarning nood,
anaIysing lho lraining roconnondalions conlainod in porfornanco roviov
roporls lo idonlify coIIoclivo and individuaI lraining noods,
idonlifying suilabIo lraining coursos lo nool lraining noods,
naIing arrangononls for off-lho-¡ob coursos,
inforning onpIoyoos aboul lho arrangononls for coursos,
handIing corrospondonco aboul lraining coursos,
sloring dala on slandard or individuaIIy laiIorod induclion, conlinualion or
dovoIopnonl lraining progrannos, incIuding syIIabi, roulings, rosponsibiIilios
for giving lraining, losl procoduros and progross roporling,
gonoraling inslruclions and nolos for guidanco for aII concornod vilh providing
or undorgoing on-lho-¡ob lraining progrannos,
sloring progross roporls and noniloring achiovononls againsl lraining ob¡oclivos,
producing roporls sunnarizing curronl and pro¡oclod lraining aclivilios and
caIcuIaling lho oulpul of lraining progrannos ÷ lhis can bo IinIod lo hunan
rosourco pIanning nodoIs incIuding lhoso dosignod lo dolornino lho inpul of
lrainoos roquirod for lraining schonos,
rocording and noniloring lraining oxpondiluro againsl budgol.
Conpulors can aIso bo usod as lraining aids.
Carccr managcmcn|
A syslon can hoIp in lho inpIononlalion of caroor nanagononl poIicios and proco-
duros vhich onbraco bolh caroor pIanning and nanagononl dovoIopnonl. Tho
syslon doos lhis by anaIysing lho progrossion of individuaIs and conparing lho
rosuIls of lhal anaIysis, firsl, vilh assossnonls of organizalionaI roquirononls as
gonoralod by lho hunan rosourco pIanning nodoIs and, socond, vilh lho oulpuls of
lho porfornanco nanagononl syslon.
Ab·cncc con|roí
Absonco conlroI can bo carriod oul vilh lho hoIp of conpulorizod lino rocording and
allondanco syslons vhich:
rocord cIocIing-on or -oul lino and lho hours acluaIIy vorIod,
onabIo onpIoyoos lo rocord lho lino sponl on parlicuIar ¡obs,
gol onpIoyoos lo oxpIain lho roason for Ialo arrivaI, oarIy doparluro, or any olhor
absonco,
can bo IinIod lo lho payroII syslon for pay and bonus caIcuIalion purposos and lo
a fIoxibIo vorIing hours syslon,
provido loan Ioadors vilh a slalononl shoving lho Ionglh and roasons for
absonco.
Advancod syslons IinI infornalion oblainod fron cIocIing-on or -oul dirocl lo a
scroon in loan Ioadors' officos so lhal lhoy can havo inslanl infornalion on hov nany
poopIo aro al vorI and on lho incidonco of Ialonoss.
Lquaí oppor|uní|, moní|oríng
Tho syslon can sloro rocords of lho olhnic conposilion of lho vorIforco. This
infornalion can bo anaIysod lo produco dala on lho dislribulion of olhnic ninorilios
by occupalion, ¡ob grado, ago, sorvico and Iocalion. Tho anaIysis couId shov lho
ovoraII proporlion of olhnic ninorily onpIoyoos conparod vilh lho proporlion in
oach ¡ob grado. SiniIar slalislics can bo producod for non and vonon. Tho anaIysis
can bo oxlondod lo covor caroor progrossion, spIilling lho rosuIls of lho ovoraII
anaIysis inlo conparisons of lho ralo al vhich vonon and non of difforonl olhnic
groups progross.
Lxpcr| ·,·|cm·
KnovIodgo-basod soflvaro or oxporl syslons aro conpulor prograns vhich conlain
InovIodgo aboul parlicuIar fioIds of hunan aclivily and oxporionco, vhich, lhrough
IinIagos and ruIos buiIl inlo lho syslon dosign, can hoIp soIvo hunan rosourco
nanagononl probIons. UnIiIo a dalabaso syslon vhich sloros, sorls, nanipuIalos,
and prosonls bils of infornalion ÷ io dala ÷ oxporl syslons sloro, sorl, nanipuIalo and
prosonl nanagors vilh roady-lo-uso InovIodgo of nanagononl praclico, vrillon in a
Ianguago lhal nanagononl undorslands, as opposod lo conpuloroso.
Exporl syslons aro dovoIopod lhrough a procoss of InovIodgo onginooring vhich
slarls fron a InovIodgo baso conlaining facls and a body of oxporliso (´hourislics', or
ruIos of lhunb) aboul lho uso of lhoso facls. Thoso ´ruIos' onabIo docisions lo bo nado
on lho basis of facluaI infornalion prosonlod lo lho conpulor. Thus, a facl nay bo
infornalion on onpIoyoo lurnovor during lho Iasl lhroo yoars, and lho ruIo of lhunb
nay bo lho nolhod by vhich lurnovor couId bo prodiclod ovor lho noxl lhroo yoars.
Thoso facls and ruIos aro procossod by vhal is lornod lho ínforonco ongino', vhich
soIvos probIons or naIos prodiclions, and lho rosuIls of lhis procoss aro prosonlod lo
lho usor in lho úsor inlorfaco'.
An oxporl syslon can produco a Iisl of suilabIo candidalos for pronolion by using
infornalion fron lho dalabaso. If noro infornalion voro roquirod, il vouId asI lho
usor lo ansvor quoslions. Il vouId aIso rospond lo usors' quoslions aboul vhy parlic-
uIar candidalos had boon idonlifiod, by giving dolaiIs of quaIificalions, porfornanco
appraisaI rosuIls and so on.
Whal can IoosoIy bo doscribod as oxporl syslons aro aIso usod in ¡ob ovaIualion
appIicalions vhoro lhoy naIo uso of a dalabaso of ¡ob anaIysos and ovaIualions in
ordor lo naIo consislonl ¡udgononls aboul ovaIualion scoros. This is dono by:
dofining lho ovaIualion ruIos,
progranning lho conpulor lo asI approprialo quoslions concorning oach faclor
in a ¡ob lo onabIo il lo appIy lho ovaIualion ruIos ÷ lhis invoIvos lho anaIysis of
slruclurod quoslionnairos vhich havo boon spociaIIy dosignod lo faciIilalo lho
syslonalic coIIoclion and anaIysis of dala,
appIying lho ruIos consislonlIy and dolornining lho faclor scoro for lho ¡ob,
grading and ranIing ¡obs,
sloring lho infornalion in lho conpulor's nonory so lhal il can bo caIIod lo lho
scroon or prinlod al any lino.
ALDl1lNC 1HL SYS1LM
As suggoslod by Robinson (1999), roguIar audil of lho syslon shouId bo carriod oul lo
oblain ansvors lo lhoso quoslions:
Is lho syslon boing usod officionlIy and offoclivoIy`
Aro lhoro any barriors lo lho offoclivo uso of lho syslon`
Doos lho lochnoIogy onabIo nanagors or noroIy diclalo lo lhon`
Aro lhoro any aspocls of lho syslon vhich aro causing dissalisfaclion in lho HR
doparlnonl, vilh sonior nanagononl or Iino nanagors`
Aro lhoro any probIons vilh dala inaccuracy`
Aro roporls accuralo, hoIpfuI and usod for docision-naIing`
Whal is lho funclionaIily of lho syslon` Thal is, vhal doos lho syslon do, and
hov voII doos il do il` Whal addilionaI funclions nighl bo usofuI`
Hov offoclivo aro lho syslons IinIs, lho uso of dala in difforonl appIicalions`
Lxumpío ol un uttìtudo survoy
Appcndix
Furposc
Tho purposo of lhis survoy is lo oblain your opinion on lho oxisling pay arrango-
nonls and lho porfornanco appraisaI procoss in XYZ Lld. Your viovs and lhoso of
aII lho olhor slaff of lho conpany vho aro boing asIod lo conpIolo lhis quoslion-
nairo viII provido a vaIuabIo inpul lo lho vorI curronlIy boing carriod oul lo doviso
nov approachos lo pay and porfornanco appraisaI. FoodbacI on lho ovoraII rosuIls
of lho survoy viII bo providod lo aII slaff.
ConfidcntiaIity
Your ansvors lo lho quoslionnairo viII bo conpIoloIy confidonliaI. No individuaI
viII bo idonlifiod and no ono in lho conpany viII soo lho forns, vhich viII bo
anaIysod by an indopondonl rosoarch firn. You aro boing asIod lo idonlify your
funclion bul lhal is sinpIy lo naIo conparisons, lho forns viII nol bo anaIysod on
an individuaI basis.
CompIcting and forwarding tbc survcy form
IIoaso conpIolo lho forn and sond il by 1sl }uIy in lho allachod onvoIopo vhich is
addrossod lo lho firn vhich viII bo carrying oul lho anaIysis.
908 Appondìx
How to compIctc tbc qucstionnairc
Tho quoslionnairo viII laIo aboul 15 ninulos lo conpIolo. IIoaso indicalo your
viovs aboul lho slalononls ovorIoaf by pIacing a ring around lho nunbor vhich
nosl cIosoIy nalchos your opinion. For oxanpIo:
Sircnglq lnclinc! ic Ncii|cr cgrcc lnclinc! ic Sircnglq
cgrcc cgrcc ncr !iscgrcc !iscgrcc !iscgrcc
l li|c mq jc| 2 3 4 5 1
Function/dcpartmcnt
IIoaso circIo ono of lho foIIoving:
1. corporalo offico,
2. narIoling,
3. nanufacluring,
4. financo,
5. IT,
6. HR,
7. cuslonor sorvico,
8. narIoling, dovoIopnonl, fundraising, IR, HR.
Appondìx 909
QUFSTlONNAlkF
l bcIicvc tbat: Sircnglq lnclinc! ic Ncii|cr cgrcc lnclinc! ic Sircnglq
cgrcc cgrcc ncr !iscgrcc !iscgrcc !iscgrcc
1 My pay adoqualoIy rovards no 1 2 3 4 5
for ny conlribulion
2 Tho pay syslon is cIoar and oasy 1 2 3 4 5
lo undorsland
3 Il is righl for slaff lo bo rovardod 1 2 3 4 5
according lo lhoir conlribulion
4 Tho basis upon vhich ny pay is 1 2 3 4 5
dolorninod is fair
5 HighIy conpolonl slaff shouId bo 1 2 3 4 5
paid noro lhan Ioss conpolonl
slaff
6 Ralos of pay in lho Conpany aro 1 2 3 4 5
nol consislonl vilh IovoIs of
rosponsibiIily
7 My ralo of pay conparos favourabIy 1 2 3 4 5
vilh ralos paid oulsido lho Conpany
8 My pay doos nol rofIocl ny 1 2 3 4 5
porfornanco
9 Tho curronl pay syslon 1 2 3 4 5
oncouragos bollor porfornanco
10 Tho pay syslon badIy noods lo 1 2 3 4 5
bo roviovod
11 I an cIoar aboul lho slandards of 1 2 3 4 5
porfornanco I an oxpoclod lo
achiovo
12 I do nol undorsland lho conpolonco 1 2 3 4 5
IovoIs I an oxpoclod lo roach
13 Tho porfornanco appraisaI 1 2 3 4 5
schono is hoIpfuI
14 I rocoivo good foodbacI fron ny 1 2 3 4 5
nanagor on ny porfornanco
15 My nanagor is nol roaIIy inloroslod 1 2 3 4 5
in carrying oul ny appraisaI
16 I an nolivalod by ny porfornanco 1 2 3 4 5
roviov nooling
17 Tho procoss of solling ob¡oclivos 1 2 3 4 5
and rovioving achiovononls is fair
18 Tho assossnonl of ny porfornanco 1 2 3 4 5
by ny nanagor is ob¡oclivo and fair
19 Iorfornanco appraisaI doos nol hoIp 1 2 3 4 5
no lo inprovo ny porfornanco
20 Iorfornanco appraisaI cIoarIy 1 2 3 4 5
indicalos any furlhor lraining I
nighl nood

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Zuboff, S (1988) ln i|c Agc cj i|c Smcri Mcc|inc, Basic BooIs, Nov YorI
koloroncos 95l
abiIily 240
abiIily losls 466
absonlooisn
causos of absonco 864
conlroI of absonlooisn 864÷66
doaIing vilh sicInoss 848÷49
and hunan capilaI noasurononl 40
uso of conpulors 904÷05
ACAS (Advisory, ConciIialion and Arbilralion
Sorvico) 754, 770
accidonl provonlion 829÷30, 841
Accounling for IoopIo TasI Forco 30, 48
aclion Ioarning 573÷74
aclion rosoarch 341
aclivily anaIysis 322
adaplivo Ioarning 541
addod vaIuo 35, 40, 66, 82
adhocracios 290
advorlising (rocruilnonl)
advorlising agoncy, uso of 416÷17
anaIysis of roquirononl 416
copy vriling 417÷18
ovaIualo rosponso 419
nodia pIanning 419
succossfuI advorlising 419÷20
lypos of advorlisononls 418÷19
Aogon 125, 653
affoclivo Ioarning 560
ago and onpIoynonl 151
agoncy lhoory 207, 626
AIDS, poIicy on 155, 874
aIignnonl of individuaI and organizalionaI
ob¡oclivos 498÷99
aIIovancos and olhor paynonls 735
anaIylicaI ¡ob ovaIualion 660÷62
anaIylicaI nalching 662÷63
AngIia IoIylochnic Univorsily 793
annuaI hours 386
appIicalion forns 425, 426
appraisaI
dofinod 4
apliludo losls 466
arbilralion 787
arlofacls 308
assossnonl conlros 430÷31
allainnonl losls 466
allondanco nanagononl
causos of absonco 864÷65
conlroI of absonlooisn 864÷66
dofinod 863
alliludo survoys 265÷67, 812÷13, 907÷09
alliludos 244
Sub¡oct ìndox
allraclion poIicios and progrannos 391÷92
allraclion slralogios 395
allrilion, Iabour lurnovor 40
allrilion, pay 740
B&Q 125, 590, 650, 655
Bao Syslons 573
baIancod Ioarning 615
baIancod scoro card 42÷44, 68
bargaining
coIIoclivo bargaining 756÷58
convonlions 797÷98
and nogolialing 795
procoss of 796÷97
singIo labIo 786÷87
sIiIIs 804÷05
laclics 802÷03
baso pay 627
bohaviour, infIuoncos on 244÷45
bohaviour nodoIIing 342
bohaviouraI conpoloncios
anaIysis of 193÷98
dofinod 160
bohaviouraI oxpoclalions 226
bohaviouraI scionco 284÷85
bonchnarIing
and bosl fil 138
uso in assossing HR offoclivonoss 67
bosl fil 138÷39
bosl pIaco lo vorI 82, 394
bosl praclico 135÷38
big idoa, lho 8, 305÷06
biodala 429÷29
BIacI & DocIor 590
bIacI box, lho 20
bIondod Ioarning 563, 566, 570
boundod ralionaIily 226
briofing groups  loan briofing
Brilannia BuiIding Socioly 411
Brilish IsychoIogicaI Socioly 469
broad-bandod grado and pay slrucluros 693÷94
broad-gradod grado and pay slrucluros 691÷92
buIIolins 823
buIIying 154
bundIing 139÷40, 873÷74
businoss parlnor roIo of HR praclilionors 32, 73,
79
businoss pIanning and hunan rosourco
pIanning 363÷64
businoss procoss ro-onginooring 26, 357
businoss slralogy 54
businoss slralogy, inlograling HR slralogy
vilh 134
businoss lo onpIoyoos 899÷900
cafoloria schono 730
caII-oul aIIovancos 735
capabiIily procoduro 883÷85
caroor dynanics 400, 481÷82
caroor faniIy grado and pay slricluro 696
caroor nanagononl
ains 400
dofinod 399
donand and suppIy forocasls 403
dynanics 400
nodoIIing 403
porfornanco and polonliaI assossnonls 402
poIicios 400, 402
procoss of 400, 401
succossion pIanning 403÷04
laIonl audils 402
and laIonl nanagononl 393
uso of conpulors 904
caroor nap 405
caroor palh 406
caroor pIanning
conpoloncy band approach 405
dofinod 404
uso of caroor faniIy grado slrucluros 406
caroor progrossion 400
caso sludy 581
CBI 769
ConlraI Arbilralion Connilloo (CAC) 770
Conlrica 407÷08
chango
incrononlaI chango 74
oporalionaI chango 345
rosislanco lo 345÷47
roIo of HR in faciIilaling 54÷6
slralogic chango 344÷45
chango agonls, HR praclilionors as 74
chango nanagononl
BocIhard's chango nodoI 347÷48
chango nanagononl nodoIs 347÷51
lho chango procoss 343÷44
conlribulion of HR 55
guidoIinos for 56, 75, 351÷52
Lovin's chango nodoI 347
ThurIoy's chango nodoI 348
lransfornalionaI chango 74
954 Sub¡oct ìndox
characlorislics of poopIo  poopIo, characlorislics
of
Charlorod Inslilulo of IorsonnoI and
DovoIopnonl (CIID) 37, 48÷49, 84, 86, 92,
535, 593, 613, 652, 734, 742, 742, 743, 866, 868,
873
chocI-off syslon 790
ChiIdron's Socioly 127
CIFO Rosoarch 38
cIosod shop 790
coaching 567÷69
Codo of IrofossionaI Conducl, CIID 84
cognilivo Ioarning 560
cognilivo lhoory
of Ioarning 551
of nolivalion 258÷59
cohoronco in HRM 54, 139÷40
coIIoclivo agroononls
as franovorIs for coIIoclivo bargaining 783
parlnorship 784÷85
procoduraI agroononls 783÷84
subslanlivo agroononls 784
coIIoclivo bargaining
bargaining IovoIs 786
bargaining povor 756÷57
con¡unclivo bargaining 757
co-oporalivo bargaining 757
dofinod 756, 783
dislribulivo bargaining 757
as an oxchango roIalionship 756
inlogralivo bargaining 757÷58
as a ¡oinl roguIaling procoss 756
and nogolialing 795
as a poIilicaI roIalionship 756
as a povor roIalionship 756
singIo-labIo bargaining 786÷87
subslanlivo agroononls 783
coIIoclivisn 759
connilnonl
concopl of connilnonl and ongagononl 271
conlribulion of HR lo dovoIoping connilnonl
dofinod 271÷72, 273÷74
and onpIoyoo roIalions 761
onhancing 281÷82
faclors affocling 277÷78
and fIoxibiIily 276
gaining 83, 181÷82
´hoarls and ninds' approach 12, 761
and HRM 12, 13÷14, 59
inpacl of 276÷77
infIuoncos on 280÷81
and nolivalion 277
nuluaI connilnonl slralogy and
nuluaIily 275
orionlalion 4
probIons vilh concopl 275÷77
significanco of 274÷75
slralogy 278÷79
and lrusl 220
and lho unilary frano of roforonco 275÷76
connillod onpIoyoo 472
connunicalions
anaIysing probIons 821÷22
aroas 819÷20
buIIolins 823
DVDs 823
onpIoyoo invoIvononl 823
´good connunicalions' lhoory 818
inporlanco of 817
inlranol 822
nagazinos 822
novs Iollors 822
nolico boards 823
ob¡oclivos 820
on rovard nallors 748÷49
slralogy 819, 821
loan briofing 824÷25
vhal onpIoyoos vanl lo hoar 821
vhal nanagononl vanls lo say 819, 821
connunilios of praclico 178, 181, 182, 609
conpa-ralios 691, 739÷40
conpolonco dofinod 161
conpolonco-roIalod pay 714÷16
conpoloncios
anaIysis of 193÷98
bohaviouraI 160
cIuslors 160
covorago 164
dofinod 159
and onolionaI inloIIigonco 170÷71
gradod 164÷65
porfornanco 160
roasons for using 163
roIo-spocific 164
lochnicaI 161
lhroshoId 160
lypicaI conpoloncios 162÷63
conpoloncios, uso of
in assossnonl conlros 166
Sub¡oct ìndox 955
dofining lochnicaI conpoloncios 169
in Ioarning and dovoIopnonl 166
in porfornanco nanagononl 165÷66
in rocruilnonl and soIoclion 166
in rovard nanagononl 166÷67
conpoloncy
anaIysis 193÷98
conpoloncy band approach lo caroor
pIanning 406
conpoloncy-basod approach lo rocruilnonl and
soIoclion 413÷14
conpoloncy-basod approach lo nanagononl
dovoIopnonl 600
dofinod 159, 160
franovorIs 161÷63
conpoloncy anaIysis
anaIysing bohaviouraI conpoloncios 193
anaIysing lochnicaI conpoloncios 198
crilicaI-incidonl lochniquo 196
oxporl opinion 193
funclionaI anaIysis 198
nodoIIing 901÷02
purposo 193
roporlory grid 196÷98
slruclurod inlorviov 193÷95
vorIshop 194÷95
conpoloncy franovorIs
dofinod 161
dovoIopnonl of 167÷69
hoadings 161÷63
conpolilivo advanlago 14, 26, 29, 73, 113, 116,
117, 220
conpolilivo odgo 305
conpolilivo prossuros 25÷26
conpolilivo slralogy 135, 136
conpulor-assislod ¡ob ovaIualion 667÷68
conpulor-nanagod Ioarning 903÷04
conpulorizod HR infornalion syslons
appIicalions 899÷906
audiling 906
bonofils of 890
characlorislics of 896
dofinod 889
dovoIoping an infornalion syslon 895÷99
an offoclivo syslon, foaluros of 893
oxporl syslons 905÷06
funclions of 891÷92
probIons 894÷95
raling of syslon foaluros 892÷93
roasons for 889
slralogy 890÷91
lochnicaI infraslrucluro 892
conciIialion 787
Confodoralion of Brilish Induslry (CBI) 769
configuralion 139÷40
confIicl 301
consuIlalion  ¡oinl consuIlalion
conlonl (noods) lhoory of nolivalion 254, 255,
257÷58
conlingoncy lhoory 24, 138
conlingonl pay
aIlornalivos lo 712
argunonls for and againsl 710÷11
choico of approach 721
conparison of schonos 722÷23
conpolonco-roIalod pay 71, 714÷15
conlribulion-roIalod pay 716÷17
criloria for 713
dofinod 628, 708
dovoIoping and inpIononling conlingonl
pay 724
inconlivos and rovards 709÷10
incidonco of 708÷09
as a nolivalor 709
naluro of 709
organizalion-vido schonos 725÷27
porfornanco-roIalod pay 713÷14
roadinoss for 721÷23
sorvico roIalod pay 720÷21
sIiII-basod pay 718÷20
loan-basod pay 724÷25
conlinuous inprovononl 54, 126, 356÷57
conlracls of onpIoynonl 858÷59
conlribulion-roIalod pay 712, 716÷18
convorgonco of inlornalionaI HR poIicios
101÷02
cooporalivo bargaining 757
coro vorIors 761
corporalo cuIluro  organizalionaI cuIluro
corporalo govornanco 634
corporalo univorsily 544, 573
CounsoI for ExcoIIonco in Managononl
46÷47
counsoIIing 852
crilorion bohaviour 616
crilicaI-incidonl conpolonco anaIysis
lochniquo 196
cuIluro  organizalionaI cuIluro
cuIluro fil 135
956 Sub¡oct ìndox
cuslon and praclico 755, 776
CVs 486
dashboard 51
Dala Iroloclion Acl 1998 469, 869÷70
dala varohouso 178
DoIIoilo and Toucho 42÷43
donand forocasling 373
dopondoncy cuIluro 96
do-rocognilion, lrado unions 782÷83
dovoIopnonl
aclion Ioarning 573÷74
bIondod Ioarning 570÷71
dofinod 535, 570÷71
inpacl of 574
porsonaI dovoIopnonl pIanning 571÷72
pIannod oxporionco 572
dovoIopnonl and laIonl nanagononl 393
dovoIopnonl conlros 600÷02
Diagoo 127
diroclors and oxoculivos, rovards for
corporalo govornanco 634
oIononls of pay 635÷36
discipIino 881
approach lo handIing casos 489÷90
discipIinary procoduro 881÷83
discrolionary bohaviour 34, 247, 264, 499
discrolionary offorl 251÷52
discussion 580÷81
disnissaI
dofinilion 487
fair disnissaI 488
fundanonlaI quoslions 487÷88
handIing discipIinary casos 489÷90
IogaI franovorI 487
roasonabIo in lho circunslancos, concopl
of 488÷89
ronodios 489
unfair disnissaI 488
dispulo rosoIulion
arbilralion 787÷88
conciIialion 787
nodialion 788
dislribulivo ¡uslico 222
divorgonco of inlornalionaI HR praclicos 101÷02
divorso noods, nooling 10
divorsily  nanaging divorsily
Donovan Connission 763÷64
doubIo-Ioop Ioarning 541÷42
dovnsizing 208, 387, 482
dross codos 863
Econonic and SociaI Rosoarch CounciI 211
Educalion 535
officioncy vago lhoory 626
offorl bargain 626
Egg 125
o-HR  conpulorizod HR infornalion
syslons
o-Ioarning
ain 584
bIondod 586, 587
businoss caso for 586÷87
dofinod 583
doIivory 586
oxanpIos 590
procoss of 585÷87
progranno conlonl 585÷86
lochnoIogy 584÷85
lypos 583÷84
oIdorIy onpIoyoos 850
o-naiIs, poIicy on 156, 874÷75
onolionaI inloIIigonco
and conpoloncios 170÷71
conpononls of 170, 602÷03
dofinod 170, 602
dovoIopnonl of 171, 603
onpIoyoo assislanco progrannos (EAIs)
852÷53
onpIoyoo bonofils
dofinod 628, 729
fIoxibIo bonofils 730÷31
ob¡oclivos 729÷30
laxalion 730
lypos of 730
onpIoyoo ongagononl  ongagononl
onpIoyoo handbooI 474÷75
onpIoyoo profiIing 901
onpIoyoo roIalions
dofinod 751÷52
oIononls of 754
and HRM 761÷62
individuaIisn 759
infornaI procossos 788÷89
pIuraIisl viov 758÷59
poIicios 774÷78
povor sharing 774
slralogy 127, 778÷79
Sub¡oct ìndox 957
unilary viov 758
onpIoyoo roIalions cIinalo
dofinod 779
an olhicaI approach 780
inproving lho cIinalo 780
onpIoyoo roIalions poIicios
approachos lo 774
oxprossing poIicy 777÷78
fornuIalion 776÷77
naluro and purposo 774
poIicy aroas 775
poIicy choicos 775÷76
poIicy fornuIalion 776÷77
onpIoyoo roIalions slralogios
fornuIaling 779
naluro and purposo 778
lralogic diroclions 778÷79
onpIoyoo rosourcing  rosourcing
onpIoyoo salisfaclion noasuros 67
onpIoyoo sharo schonos 698
onpIoyoo schoduIing 900÷01
onpIoyoo lurnovor/vaslago
choico of noasurononl 379÷80
cosl of 381
haIf-Iifo indox 379
incidonco of 382
Iabour lurnovor indox 376÷77
Ionglh of sorvico anaIysis 379
nolhods of noasurononl 369÷74
roasons for anaIysing Iabour lurnovor 375
roasons for lurnovor 380÷81
significanco of 376
slabiIily indox 379
survivaI ralo 377÷78
onpIoyoo voico
alliludo survoys 813÷15
dofinod 807
concopl of 807
faclors affocling 810
forns of 810÷11
franovorI for 808÷09
invoIvononl 808
¡oinl consuIlalion 811÷12
parlicipalion 808, 810
pIanning for 815
suggoslion schonos 814
upvard probIon soIving 810÷11
onpIoyoo voIfaro  voIfaro
onpIoyoos, gaining supporl and connilnonl 83
onpIoyor brand 82
onpIoyor branding 395÷96
ónpIoyor of choico' 383, 396
onpIoyors' associalions 769
onpIoynonl roIalionship
basis of 217
changos lo 218
dofinod 215
dofining lho onpIoynonl roIalionship 217
and onpIoyoo roIalions poIicios 775
nanaging lho onpIoynonl
roIalionship 218÷19
naluro of 215÷16
and lho psychoIogicaI conlracl 225, 229
significanco of 218
and lrusl 220÷23
EnpIoynonl AppoaI TribunaI 771
onpIoynonl praclicos 857
onpIoynonl lribunaIs 770
onpovornonl 12, 13, 75
ongagod porfornanco 282
  ongagononl
ongagononl 29, 272÷73
oquaI opporlunily 866
oquaI opporlunily noniloring 905
oquily lhoory of nolivalion 261÷62
o-rocruilnonl
advanlagos 421
approach 422
silos 422
usago 421÷22
o-rovard 742
ERG lhoory of nolivalion (AIdorfor) 257
olhicaI considoralions
approach lo onpIoyoo roIalions 780
for HR praclilionors 84
in rocruilnonl and soIoclion 443
olhicaI slandards in lho firn 85
olhnic noniloring 867÷68
olhnoconlric poIicy 101
Europoan Foundalion for QuaIily nanagononl
(EFQM) 44÷45
Europoan vorIs counciIs 810
ovaIualing lho HR funclion 66÷69
ovaIualing Ioarning
appIicalion of 619÷20
IovoIs of 616÷18
roason for 615
by rolurn on invoslnonl 618
958 Sub¡oct ìndox
lraining ovaIualion 616
uso of ovaIualion looIs 619
oxchango lhoory 207
oxoculivo soarch consuIlanls 424
oxil inlorviovs 380÷81
oxpalrialos, nanagononl of
oxponso of 104
proparalion poIicy 106
roaIislic proviovs 106
rocruilnonl and soIoclion poIicios 105÷06
rosourcing poIicios 105
roIo spocificalions 106
lraining 107
oxpalrialo pay
hono-basod pay 107÷08
hosl-basod pay 109
poIicios 107÷08
oxpoclancy lhoory of nolivalion 226, 259÷60,
556
oxporioncod vorIor's slandard (ESW) 554
oxporionliaI Ioarning 551
oxporl syslons 403
oxlornaI roIalivilios 739
oxlrinsic nolivalion 254
faco vaIidily of psychoIogicaI losls 463
faclor conparison 663
faclor pIan 677÷78
faclor voighling 678
faclors affocling poopIo al vorI
allribulion lhoory 245÷46
inpIicalions for HR spociaIisls 248÷49
individuaI difforoncos 239÷44
orionlalion lo vorI 246
porsonaIilios 241÷43
roIo lhoory 247
faclors, ¡ob ovaIualion 677
fauIls anaIysis 200
foodbacI 226
foIl-fair principIo 268
financiaI fIoxibiIily 210
FinanciaI Tinos, bosl vorIpIaco survoy 394
fil, slralogic 24, 54
fivo-foId grading 413
fIoxibIo firn 25
fIoxibIo hours 386
fIoxibiIily
financiaI 210
funclionaI 210
nunoricaI 210
pIan 384÷87
fIoxibIo firn, lho 210
fIoxibIo vorIing 862÷63, 875÷76
froquoncy ralo 841
fronl Iino nanagors
basic roIo 93÷94
dovoIving rosponsibiIily for pay
docisions 746÷48
gaining supporl of 82÷83
and HR praclilionors 72, 89, 95÷97
HRM roIo of 81
inpIononlalion of HR poIicios roIo 97÷98,
157
inproving fronl-Iino nanagors as poopIo
nanagors 98
poopIo nanagononl rosponsibiIilios of 94
and rovard slralogy 657
funclionaI anaIysis 198
funclionaI fIoxibiIily 210
gain sharing 726
GonoraI EIoclric 56
gonoric roIo 327
gonoric roIo profiIo 188
Gonono hunan capilaI invoslnonl nodoI
(Nalionvido) 41÷42
GIaxoSnilhKIino 125
gIobaI firns 99
gIobaIizalion 26
goaI lhoory of nolivalion 261, 556
goIdon handcuffs 393
grado and pay slrucluros
anaIysis of difforonl lypos 699÷700
broad-bandod 693÷94
broad-gradod 691÷93
caroor faniIy 696
dofinod 628
dosign of 698, 701÷05
funclion 688
guiding principIos 690
incidonco of difforonl lypos 698
individuaI ¡ob grados 698
¡ob faniIy 695
narrov-gradod 691
pay spino 696÷97
spol ralos 697÷98
lypos of 691÷98
Sub¡oct ìndox 959
grado slrucluro dofinod 689
graphoIogy 431÷32
groal pIaco lo vorI, croalion of 394
griovanco procoduro 880÷81
group bohaviour
fornaI groups 292
group idooIogy 295
group procossos 293
inpacl on group nonbors 295
infornaI groups 293
inloraclion 294
roforonco group 296
lasI and nainlonanco funclions 294
group dynanics 356
group oxorcisos 582
haIf-Iifo indox 379
haIo offocl 458
hard HRM 11÷12
hard slralogic HRM 117
harnonizalion 789÷90
Harvard franovorI of HRM 6÷8
lho Havlhorno sludios 284
Hay Group 282
Hayos Connilloo 85÷86
hoaIlh and safoly
accidonl provonlion 841
audils 836÷37
bonofils 831÷32
connunicaling on 842÷43
inporlanco of 830÷31
nanagononl of 830
noasuring porfornanco 841÷42
occupalionaI hoaIlh progrannos 838÷39
organizing 843÷44
poIicios 829, 832÷33
progrannos 829
risI assossnonls 830, 834÷35
slross nanagononl 839÷40
lraining 843
HoaIlh and Safoly Exoculivo 831, 840, 865
´hoarls and ninds' approach 12, 761
hiorarchy of noods (MasIov) 257÷58
high-connilnonl nanagononl 119÷20,
364÷65
high-invoIvononl nanagononl 120
high-porfornanco cuIluro 314
high-porfornanco nanagononl 118÷19
high porfornanco vorI dosign 334
high porfornanco vorI syslons 38, 138
Highor Educalion Funding CounciI 127
hono-basod inlornalionaI pay 108÷09
hono-vorIing 385
horizonlaI fil 139, 140
horizonlaI inlogralion of HR slralogy 54, 116,
134, 140
horns offocl 458
hosl-basod inlornalionaI pay 109
HR  hunan rosourcos,   HR funclion, HR
phiIosophios, HR slralogios, HR poIicios, HR
praclicos, HR praclilionors, HR procossos, HR
progrannos,  hunan rosourco
nanagononl
HR oxporliso 74
HR phiIosophios 4
HR praclicos 4
HR procossos 4
HR progrannos 4
HRD  hunan rosourco dovoIopnonl
HR funclion
conlribulion lo nanaging chango 55
onpIoyoo roIalions roIo 771
ovaIualion of 66÷69
and lho faciIilalion of chango 54÷56
¡uslifying lho HR budgol 60
narIoling of 59÷60
organizalion of 57÷59
oulsourcing HR vorI 61÷64
proparing lho HR budgol 60
prolocling lho HR budgol 60÷61
ralio of HR spociaIisls lo nunbor of
onpIoyoos 57÷58
roIo of 53, 54
sharod HR sorvicos provision 58, 63÷64
varialions in lho praclico of HR 56÷57
HR infornalion syslons  conpulorisod HR
infornalion syslons
HR phiIosophios 4
HR poIicios
AIDS 155
ago and onpIoynonl 151
aroas of 148÷56
buIIying 873
dofinod 4, 147
discipIino 153
o-naiIs 156
onpIoyoo dovoIopnonl 152
onpIoyoo roIalions 153, 774÷78
oquaI opporlunily 150, 866
fornaIizalion 148, 156÷57
960 Sub¡oct ìndox
fornuIalion of 156
goaIs 10÷11
griovancos 153
hoaIlh and safoly 153, 832÷33
inpIononlalion 157
invoIvononl and parlicipalion 153
nanaging divorsily 151
nov lochnoIogy 153
ovoraII poIicy 148÷49
and procoduros 147
pronolion 151÷52, 861÷62
roason for 247÷48
rodundancy 154
rovard 152
soxuaI harassnonl 154, 871÷72
snoIing 155, 872
subslanco-abuso 155, 873
lransfor 860÷61
vorI-Iifo baIanco 152
HR praclicos 4
HR praclilionors
advisory roIo 72
anbiguilios in lho roIo 87÷88
basic roIos 71÷76
businoss parlnor roIo 32, 73, 79
chango agonl roIo 74
conpoloncios roquirod 89÷92
conpoloncy franovorI 90
confIicl in lho HR conlribulion 88÷89
onpIoyoo advocalo roIo 80
as funclionaI oxporls 80
gaining supporl and connilnonl 81÷83
guardian of vaIuos roIo 76
guidanco roIo 72÷73
as a hunan capilaI dovoIopor 80
innovalion roIo 74
inlornaI consuIlancy roIo 75
and fronl-Iino nanagors 95÷97
nodoIs of HR praclilionors' roIos 76÷81
noniloring roIo 75÷76
and porsonnoI spociaIisls 32
profossionaI slandards (CIID) 89÷90
profossionaIisn in HRM 85÷86
as roaclivo pragnalisls 73
as sorvico providors 72
as a slralogic parlnor 80
slralogisl roIo 73
as ´lhinIing porfornors' 92
vaIuos 84
varialions in 71
HR procoduros
capabiIily 884÷85
dofinod 4, 879
discipIinary 881÷83
griovanco 880÷81
inlroduclion of 879
procoduros and poIicios 147
pronolion 861÷62
rodundancy 885÷86
rovard 745÷46
HR procossos 4
HR profossionaIs/spociaIisls  HR praclilionors
HR progrannos 4
HR scorocard 68
HR sorvico conlro 58, 63÷64
HR slralogios
allraclion 395÷97
connunicalions 819
conlinuous inprovononl 126
criloria for 129
dofinod 4, 123
lho dovoIopnonl procoss 132
onpIoyoo roIalions 127, 778÷79
hunan capilaI 37
hunan rosourco dovoIopnonl 536÷37
inpIononlalion of 143÷45
infornalion 890÷91
InovIodgo nanagononl 127
Ioarning and dovoIopnonl 127, 607÷09
IovoIs of slralogic docision-naIing 132÷33
nanagononl dovoIopnonl 595÷96
ovorarching slralogios 124÷26
purposo 124
rosourcing 360÷61, 371÷72, 390÷91
rolonlion 397÷98
rovard 127, 643÷57
solling oul slralogios 143
spocific slralogios 126÷28
and slralogic HRM 115, 124
slralogic oplions and choicos 133÷34
slralogy dovoIopnonl 134÷40
laIonl nanagononl 126
lypos of 124÷28
HR slralogy dovoIopnonl
aIigning HR slralogy 134
approachos lo 134÷40
bosl fil approach 138÷39
bosl praclico approach 135÷38
cuIluro fil 135
inlogralion vilh businoss slralogy 134÷35
Sub¡oct ìndox 96l
IinIing HR vilh conpolilivo slralogios 136
nolhodoIogy for 140÷41
solling oul slralogios 143
slralogic roviov, conducl of 141÷42
HR vision 74
HRM  hunan rosourco nanagononl
hunan assol vorlh 40
hunan capilaI
dofinod 8÷9, 30, 33÷34
and narIol vorlh 38
poopIo as 14
significanco of hunan capilaI lhoory 35÷36
lhoory of pay IovoIs 626
hunan capilaI advanlago 35, 36
hunan capilaI indox 39÷40
hunan capilaI nanagononl
bonofils of 36
dofinod 2, 29÷30, 36
and hunan rosourco nanagononl 9, 30÷32
purposo 36
quoslions 36÷37
slralogy 37
hunan capilaI noasurononl
dofinod 38
oIononls of noasurononl 45÷47
poinls concorning noasurononl 47
ralionaIo for 36÷38
hunan capilaI nonilor 40
hunan capilaI roporling
dofinod 47÷48
oxlornaI roporling 48÷49
inlornaI roporling 49
hunan procoss advanlago 35
hunan roIalions schooI 12,
hunan rosourco advanlago 118, 121
hunan rosourco dovoIopnonl (HRD)
dofinod 521
slralogic HRD 533÷37
hunan rosourco funclion  HR funclion
hunan rosourco nanagononl (HRM)
aclivilios 5
ains of 8÷11
approach lo rocruilnonl 432
aspocls of 3÷4
and businoss vaIuos 15
chaIIongos lo 26÷27
characlorislics 7, 11÷15
and connilnonl 13,
and conpolilivo prossuros 25÷26
dofinod 2, 3, 6, 31
divorsily of 11÷12
and onpIoyoo roIalions 761÷62
´hard' HRM 11÷12
Harvard franovorI 6÷8
and HR spociaIisls 72
and hunan capilaI nanagononl 9, 30÷32
hunan rosourco cycIo 4
and hunan rosourco dovoIopnonl 535
inpacl on organizalionaI porfornanco
20÷24
and inlogralion 12
nalching nodoI of HRM 5÷6
nodoIs of HRM 5÷8
noraIily of 16÷17,
and nuluaIily 13
and organizalionaI offoclivonoss 8
and porsonnoI nanagononl 18÷20, 31, 88
phiIosophy of 12
poIicy goaIs 10÷11
radicaI criliquo viov of 17
rholoric of 12
rosorvalions aboul 15÷18
and rosourcing 359÷60
sofl HRM 12
slralogic naluro of 13
as a slralogic procoss 113
and lochnoIogy 25
unilary phiIosophy of 14
hunan rosourco pIanning
aclion pIanning 382÷88
ains 368
anaIysing donand and suppIy forocasls 375
and businoss pIanning 363÷64
dofinod 363, 364
donand forocasling 373
dovnsizing pIan 387
onpIoyor of choico pIans 383
oslinaling fuluro roquirononls 373
oxporl ¡udgononl 373÷78
fIoxibiIily pIan 384
hard and sofl vorsions 364÷65
incidonco of 366
lho Iabour narIol conloxl 367÷68
Iinilalions of 365÷66
naIo or buy docisions 368
nanagoriaI ¡udgononl 373÷74
nalhonalicaI nodoIIing 375
organizalionaI conloxl of 367
962 Sub¡oct ìndox
procoss of 368÷70
ralio-lrond anaIysis 374
ralionaIo for 367
rocruilnonl pIan 383
rosourcing pIans 372, 382÷83
rosourcing slralogy 361, 371÷72
rolonlion pIan 372
sconario pIanning 372÷73
suppIy forocasling 374÷75
uso of infornalion syslon 900
hunan rosourco poIicios  HR poIicios
hunan rosourco praclilionors/profossionaIs/
spociaIisls  HR praclilionors
hunan rosourco slralogios  HR slralogios
hunan rosourco syslon 4
hunan rosourcos 3
Hunan Righls Acl 857
hunanislic viovpoinl of poopIo 284
idonlificalion of Ioarning noods
anaIysis of businoss and HR pIans 610÷11
aroas for anaIysis 610
basis of anaIysis 610
porfornanco and dovoIopnonl
roviovs 611÷12
roIo anaIysis 612
survoys 611
IDS  Inconos Dala Sorvicos
IES  Inslilulo of EnpIoynonl Sludios
inprossion nanagononl 74
incidonco ralo 341
Inconos Dala Sorvicos (IDS) 38
incrononlaI chango 74
individuaIisn 759
induclion
dofinod 471
docunonlalion 474÷75
onpIoyoo handbooI 474÷75
fornaI induclion coursos 476÷77
inporlanco of 472÷73
induclion lraining on lho ¡ob 477÷78
iniliaI briofing 475
inlroduclion lo lho vorIpIaco 475÷76
rocoplion 473÷74
induslriaI roIalions
bargaining povor 756÷57
coIIoclivo bargaining 756
conloxl of 762÷63
cooporalivo bargaining 756
dovoIopnonls in 763÷66
lho Donovan anaIysis 763÷64
HRM approach lo 761÷62
inlogralivo bargaining 757
inlorvonlionisn 764÷65
parlios lo 766÷71
roIo of Confodoralion of Brilish Induslry
(CBI) 769÷70
roIo of onpIoyors' organizalions 769
roIo of HR funclion 771
roIo of nanagononl 768÷69
roIo of shop slovards 768
roIo of slaff associalions 768
roIo of lrado unions 765, 766÷67
roIo of Trado Union Congross (TUC) 768
as a syslon of ruIos 754÷55
lradilionaI syslon 763
lypos of roguIalions and ruIos 755÷56
WorIpIaco EnpIoyoo RoIalions Survoy (2004),
concIusions of 766
  onpIoyoo roIalions
InduslriaI RoIalions Sorvicos (IRS) 38, 53, 58,
419, 422, 615, 619, 774, 787, 862, 863, 865÷66,
875, 876
InduslriaI Socioly 567, 619
Inslilulo of EnpIoynonl Sludios (IES) 39, 63÷64
Inslilulo of IorsonnoI and DovoIopnonl
(IID) 208÷09, 220, 233, 469, 774÷78, 781
  Charlorod Inslilulo of IorsonnoI and
DovoIopnonl
inslruclion 579÷80
inslrunonlaI Ioarning 560
inslrunonlaIily lhoory of nolivalion 254, 255
inlogralion
of businoss and rosourcing slralogios 360÷61
horizonlaI inlogralion of HR slralogy 54, 116,
134
of HR slralogy vilh businoss slralogy 134÷35
vorlicaI inlogralion of HR slralogy 54, 116, 134
inlogralivo bargaining 757
inloIIocluaI capilaI
and conpolilivo advanlago 26÷27
dofinod 34
inloIIigonco 241
inloIIigonco losls 464
inloraclion 301
inlor-group confIicl inlorvonlions (OD) 342
inlornaI roIalivilios 739
Sub¡oct ìndox 963
inlornalionaI firns 99
inlornalionaI hunan rosourco nanagononl
approach lo inlornalionaI HRM 102
convorgonco 100, 101÷02
cuIluraI divorsily 102÷04
dofinod 99
divorgonco 100, 101÷02
olhnoconlric poIicy 101
oxpalrialos, nanagononl of 100, 104÷09
gIobaI firns 99
inlornalionaI firn 99
inlornalionaI organizalionaI nodoIs 100
issuos in 99÷100
lhird-counlry nalionaIs 100
inlornalionaI lrado union organizalions 768
inlorvonlions (OD) 341, 342
inlorviovs,  soIoclion inlorvioving
inlranol 178, 810, 822
inlrinsic nolivalion 254, 329
inlroduclion lo lho organizalion 471
invoIvononl 808, 810
IRS  InduslriaI RoIalions Sorvicos
}apanoso óxcoIIonco' schooI 274, 275
¡ob
dofinilion of 188, 327
and roIos 188
¡ob anaIysis 188
¡ob broaIdovn 199
¡ob cIassificalion 664
¡ob doscriplions 188, 247
¡ob dosign
ains 331
approachos lo 332
dofinod 330
high-porfornanco vorI dosign 334
¡ob characlorislics nodoI 330
nolivaling characlorislics of ¡obs 329÷30,
331÷32
principIos 331÷32
and providing inlrinsic nolivalion 329, 330
lasI slrucluro, characlorislics of 329
¡ob ongagononl  ongagononl
¡ob onIargononl 332
¡ob onrichnonl 332÷33
¡ob ovaIualion
ains 660
anaIylicaI ¡ob ovaIualion 660÷62
anaIylicaI nalching 662÷63
approachos 660, 669
caso for and againsl 671÷72
choico of schono 671
conpulor-assislod ¡ob ovaIualion 667÷68
criloria for choico 668
dofinod 628, 660
dosign principIos 679
dosigning a poinl-faclor schono 672÷79
faclor pIan 677÷78
faclor voighling 678
faclors 677
incidonco of 666÷67
inlornaI bonchnarIing 665
¡ob cIassificalion 664
¡ob ranIing 664
narIol pricing 665÷66
non-anaIylicaI schonos 664
pairod conparison ranIing 664÷65
poinl-faclor raling 662
procoss principIos 673
propriolary brands 663
¡ob faniIy grado and pay slrucluros 695
¡ob Ioarning anaIysis 200÷01
¡ob ranIing 664
¡ob roguIalion 755
¡ob-roIalod voII-boing 212÷13
¡ob rolalion 332
¡ob salisfaclion 263÷67
¡ob sharing 385
¡oinl consuIlalion 811÷12
¡oinl consuIlalivo connilloos 811
¡uslico 222
¡usl-in-lino Ioarning 561
¡usl-in-lino lraining 577÷78
Ioy rosuIl aroa 191
InovIodgo
concopl of 175
dofinod 175
oxpIicil InovIodgo 175, 177
forns of 175
lacil InovIodgo 176, 177, 179
InovIodgo croalion 177
and lho Ioarning organizalion 545
and sociaI capilaI 34
and organizalionaI Ioarning 185
porsonaIizalion slralogy 177
and porfornanco nanagononl 184
probIons vilh lho concopl 545÷47
964 Sub¡oct ìndox
purposo of 176
rosourco-basod approach 176
and rosourcing 183
significanco of 176
and sociaI capilaI 179
syslons 178
uso of lochnoIogy 179
InovIodgo nanagononl
codificalion slralogy 176÷77, 179
connunilios of praclico 178, 181
conlribulion of HR 180÷81
dofinod 9, 173, 174, 178
and hunan capilaI 36
issuos 178÷80
InovIodgo vorIors
caroor nanagononl for 407
as hunan capilaI 35
and InovIodgo nanagononl 180
nolivalors for InovIodgo vorIors 183
rocruilnonl of 368
and roIo dovoIopnonl 328
KoIb's Ioarning cycIo and slyIos lhoorios 552÷53
KviI-fil 655
Iabour procoss lhoory 206÷07
Iabour lurnovor  onpIoyoo lurnovor
Lands' End 116
Iav of offocl 253
Iav of suppIy and donand 626
Ioadorship 299÷300, 353
Ioadorship slyIo 309
Ioading odgo praclicos 138
Ioan organizalion 25, 208÷09
Ioarning
adaplivo 541
affoclivo Ioarning 560
ain 560
bIondod Ioarning 563, 566, 570
coaching 567÷68
cognilivo Ioarning 560
cognilivo lhoory 551
conpulor-nanagod Ioarning 903÷04
cuIluro 609
dofinod 535, 549÷50, 559
and dovoIopnonl 560
doubIo Ioop 541÷42
oxporionliaI Ioarning 551
foodbacI 562
fornaI Ioarning 563, 565
goaIs 562
hiddon Ioarning 540
Honoy and Munford's Ioarning slyIos 553
idonlifying Ioarning noods 567
inpIicalions of Ioarning lhoory 556÷57
infornaI Ioarning 563, 564
inslrunonlaI Ioarning 560
¡usl-in-lino Ioarning 561
KoIb's Ioarning cycIo 552÷53
KoIb's Ioarning slyIos 553
lho Ioarning curvo 554÷55
lho Ioarning cycIo 542
Ioarning and dovoIopnonl slralogios 607÷09
Ioarning lo Ioarn 554
Ioarning opporlunilios 566÷67
lho Ioarning procoss 550
Ioarning progrannos 566
Ioarning slyIos 552÷53
Ioarning lhoory 550÷51
IovoIs of 563
nonloring 569
nolhods 562÷63
nolivalion lo Ioarn 555÷56, 561
organizalionaI 540÷43
phiIosophy 560
roinforcononl 551
rosponsibiIily for inpIononlalion of
Ioarning 614
soIf-diroclod/nanagod Ioarning 561÷62
soIf-rofIoclivo Ioarning 560, 562
singIo-Ioop 541÷42
sociaI Ioarning 551
spoclrun of 563
and lraining 560÷61
lypos of Ioarning 560
vorIpIaco Ioarning 564÷65
Ioarning cuIluro, dovoIopnonl of 609
Ioarning curvo 473, 554÷55
Ioarning and dovoIopnonl
aclivilios 615
basis of Ioarning and dovoIopnonl
progrannos 612÷14
fornuIaling Ioarning and dovoIopnonl
slralogios 607÷09
Ioarning cuIluro, dovoIopnonl of 609
naIing lho businoss caso 607÷08
procoss of 535
sIiII roquirononls 613
Sub¡oct ìndox 965
Ioarning noods, idonlificalion of 610÷12
Ioarning organizalion
characlorislics of 185
dofinod 543÷44
dovoIopnonl of 545
and organizalionaI Ioarning 539
phiIosophy 543
principIos of 544
Ioarning spocificalion 612, 613
Iocluro 580
Iino nanagors  fronl Iino nanagors
Iocalion aIIovancos 735
nagazinos 822
naIo or buy poIicios 368
nanagononl by agroononl 393
nanagononl by conlroI 393
nanagononl consuIlanls, uso of 64÷66
nanagononl dovoIopnonl
aclivilios 594÷95
ains 592
anaIysis of noods 595
approachos lo 596
assossnonl of sIiIIs and conpoloncos 595
conpoloncy-basod nanagononl
dovoIopnonl 600
dofinod 591
dovoIopnonl conlros 600÷01
oIononls of 594
fornaI approachos lo 598
hov nanagors Ioarn 597
infornaI approachos lo 598÷99
inlogralod approach lo 599÷600
naluro of 594
noods 592÷93
porsonaI dovoIopnonl pIans 605
priorilios 593
roquirononls 593
rosponsibiIily for 603÷04
roIo of HRD spociaIisl 605÷06
slralogy 595÷96
nanagononl slyIo 308
nanagononl succossion pIanning 393
nanaging chango  chango nanagononl
nanaging divorsily
ain 868
concopl of 868
inilialivos 868÷69
nooling divorso noods 10
nanaging oxpoclalions 499
nanpovor pIanning 365
  hunan rosourco pIanning
nanuaI sIiIIs anaIysis 199
nanuaI vorIors pay 636÷41
narIol vorlh 38
narIol pricing, ¡ob ovaIualion 665÷66
narIol ralo anaIysis
advorlisononls 685
cIub survoys 685
dofinod 628
infornalion roquirod 682
¡ob nalching 682÷83
narIol inloIIigonco 685
narIol ralo, concopl of 681÷82
prosonlalion of dala 683
pubIishod survoys 683÷84
purposo 681
sourcos of infornalion (narIol dala) 683, 686
spociaI survoys 684÷85
using survoy dala 685
narIol ralo, concopl of 681÷82
narIol slanco 685
narIoling lho HR funclion 59÷60
nalching nodoI of HRM 5
nodialion 788
nonloring 569
Morcor HR ConsuIling 37, 40
nolrics 29, 30, 38
Michigan SchooI 4
MobiIo vorIors 211
nobiIily cIausos 860
nolivalion
conpIoxily of procoss 252
conpononls of 252
conlonl (noods) lhoory 254, 255, 257÷62
and conlingonl pay 679
dofinod 252
and discrolionary offorl 251÷52
oquily lhoory 261÷62
ERG lhoory (AIdorfor) 257
oxpoclancy lhoory 259÷60
oxlrinsic nolivalion 254
goaI lhoory 261
hiorarchy of noods (MasIov) 257÷58
inslrunonlaIily lhoory 254, 255
inlrinsic nolivalion 254
and ¡ob salisfaclion 251, 263÷67
Iav of offocl 253
and nonoy 267÷68
966 Sub¡oct ìndox
nolivalion lo Ioarn 555÷56, 561
nolivalion lhoory 251
noods (conlonl) lhoory 255÷62
noods-roIalod nodoI of 253
and organizalionaI connilnonl 277
procoss of 252÷53
procoss lhoory 254, 258÷62
roinforcononl 253
slralogios 268÷69
lvo-faclor nodoI (Horzborg) 262÷63
lypos of 253÷254
nuIli-sIiIIing 761
nuluaI connilnonl slralogy 19
nuluaIily 13, 761
Myors Briggs Typos Indicalor 243
narrov-gradod grado and pay slrucluros
691
NalionaI VocalionaI QuaIificalions (NVQs) 159,
161
Nalionvido 41, 50÷51
noods lhoory of nolivalion 255÷62
nogolialing
and bargaining 795, 802
convorgonl nogolialions 796
cIosing 802
dofinod 796
divorgonl nogolialions 796
naluro of 795÷96
oponing 802
proparing for 798÷802
procoss of 796
sIiIIs 803÷04
nolvorIing 301
nov slyIo agroononl 786
novs Iollors 822
non-financiaI rovards 629
nornaI curvo (losl rosuIls) 467
norns (cuIluraI) 303, 307÷08
norns (losl) 467
Norvich Union Insuranco 43÷44, 653÷55
nolico boards 823
nunoricaI fIoxibiIily 210
NVQs/SNVQs 159, 161
ob¡oclivos
criloria for 505÷06
dofinod 505
SMART ob¡oclivos 506
lypos of 505
occupalionaI hoaIlh progrannos 829, 838÷39
occupalionaI hygiono 820
occupalionaI nodicino 829
occupalionaI ponsion schonos
approvod schono 732
bonofils slalononls 733
conlribulions 732
dofinod 731
dofinod bonofil/finaI saIary schono 733
dofinod conlribulion/nonoy purchaso
schono 733
dovoIopnonls in ponsions provision 734
oporalion 731÷32
roasons for 731
roliring ago 732÷33
sox discrininalion 732
slaIohoIdor ponsions 733
OD  organizalion dovoIopnonl
Oporaling and FinanciaI Roviov (OFR) 47, 48
organizalion charls 289, 290
organizalion dosign
ain 320÷21
conducling organizalion roviovs 321
guidoIinos 323÷24
organizalion anaIysis 321÷22
organizalion diagnosis 322÷23
procoss of organizing 319÷20
of procoss-basod organizalions 183
rosponsibiIily for 325
organizalion dovoIopnonl (OD)
aclivilios 341÷42
in connunilios of praclico 182
dofinod 338÷39
hislory of 339÷40
progrannos, foaluros of 341
lradilionaI approach lo 340÷41
uso of 343
organizalion pIanning 324÷25
organizalion slrucluro
dofinod 288
organizalion charls 288÷89
organizalion lhoory
bohaviouraI scionco schooI 284÷85
buroaucralic nodoI 284
cIassicaI schooI 283÷84
conlingoncy schooI 286
franovorI for oxanining organizalions
(Kollor) 287
hunan roIalions schooI 284
Sub¡oct ìndox 967
infIuonco of lochnoIogy (DrucIor) 287
nov organizalion paradign (IascaIo) 287
socio-lochnicaI nodoI 285
syslons schooI 285
lypos of organizalions (Handy) 287
lypos of organizalions (Minzborg) 287
organizalionaI bohaviour 237
organizalionaI capabiIily 540
organizalionaI capilaI 34÷35
organizalionaI cIinalo
dofinod 305
noasurononl of 312÷13
organizalionaI connilnonl
concopl of connilnonl and ongagononl 271
conlribulion of HR lo dovoIoping connilnonl
dofinod 271÷72, 273÷74
onhancing 281÷82
faclors affocling 277÷78
and fIoxibiIily 276
gaining 83, 181÷82
´hoarls and ninds' approach 12,
and HRM 5, 9, 12, 13÷14
inpacl of 276÷77
infIuoncos on 280÷81
and nolivalion 277
nuluaI connilnonl slralogy 19
and nuluaIily 13, 761,
orionlalion 4
probIons vilh concopl 275÷77
slralogy 278÷79
and lrusl 220
and lho unilary frano of roforonco 275÷76
organizalionaI cuIluro
anaIysis of 314÷15
approprialo cuIluros 313÷14
arlofacls 308
assossnonl of 311÷12
changing cuIluros 314÷16
cIassificalion of 309÷11
conpononls of 307
dofinod 303÷04
dovoIopnonl of 181
divorsily of 307
hov il dovoIops 306
Ioadorship/nanagononl slyIo 309
norns 303, 307÷08
and organizalionaI cIinalo 305
probIons vilh lho concopl 304÷05
supporling and roinforcing cuIluros 315
vaIuos 303, 307
organizalionaI dovoIopnonl 337÷38
  organizalion dovoIopnonl
organizalionaI offoclivonoss 8, 340
organizalionaI Ioarning
dofinod 540
doubIo÷Ioop Ioarning 541÷42
lho Ioarning cycIo 542
and lho Ioarning organizalion 539
oulconos 540
principIos of 541, 543
singIo÷Ioop (adaplivo) Ioarning 541÷42
organizalionaI porfornanco, inpacl of HR
on 20÷24
organizalionaI porfornanco nodoI 40
organizalionaI procossos
confIicl 301
group bohaviour 292÷96
inloraclion 301
Ioadorship 299÷300
nolvorIing 301
poIilics 300
povor 300
loanvorI 296
organizalionaI lransfornalion
dofinod 352
and organizalion dovoIopnonl 352÷53
roIo of HR 355
lransaclionaI chango 352
lransaclionaI Ioadors 353
lransfornalion progranno 354÷55
lransfornalionaI chango 352
lransfornalionaI Ioadors 353
lransilion nanagononl 354
lypos of 353
organizalions
doconlraIisod 290
divisionaIizod 289÷90
fIoxibIo 290
hov lhoy funclion 283
Iino and slaff 289
nalrix 290
procoss-basod 182, 291
shanrocI 290
organizing, procoss of 319÷20
ouldoor Ioarning 574
oulpIacononl 484, 485÷87
oulpul criloria 66
968 Sub¡oct ìndox
oulsourcing
aroas of 61
caso for 61
dociding lo 62
inpIicalions of 62÷63
probIons vilh 61÷62
soIocling sorvico providors 62
ovorlino 387
pairod conparison ranIing 664÷65
parlicipalion
dofinod 808
and onpIoyoo voico 807
forns of 810
parlnorship agroononls vilh lrado unions
dofinod 784
foaluros 785
probIons 785
parl-lino vorIors 384÷85
pay for oxpalrialos 107÷09
pay IovoIs ÷ ocononic faclors 626
pay nalrix 742
pay roviovs, gonoraI 740÷41
pay roviovs, individuaI
basod on ralings 742
conducl of 744
dofinod 741
doing vilhoul ralings 742÷43
guidoIinos lo nanagors 743÷44
pay spinos 696÷97
ranIing 743
pay slrucluros 690
  grado and pay slrucluros
paynonl-by-rosuIls 639÷41
ponsion schonos  occupalionaI ponsion
schonos
poopIo as assols 6, 14, 29, 30, 31, 35
poopIo as hunan capilaI 14
poopIo, characlorislics of
abiIily 240
alliludos 244
allribulion lhoory 245÷46
difforoncos in gondor, raco or disabiIily 243÷44
inpIicalions for HR spociaIisls 248÷49
individuaI difforoncos 239÷30
infIuonco of bacIground 243
infIuoncos on bohaviour al vorI 244÷45
inloIIigonco 241
porsonaIily 241÷43
roIos 247÷48
poopIo nanagononl 2, 32, 116, 117
poopIo rosourcing
dofinod 359
and HRM 359÷60
inlograling businoss and rosourcing
slralogios 360÷61
porfornanco
and ¡ob salisfaclion 264÷65
noaning of 497÷98
  organizalionaI
porfornanco appraisaI and porfornanco
nanagononl 500
  porfornanco nanagononl
porfornanco drivors 36
porfornanco nanagononl
ains 496
aIignnonl of individuaI and organizalionaI
ob¡oclivos 498÷99
basis of 493
characlorislics 496÷97
conducling a porfornanco roviov
nooling 510÷12
criloria for assossing porfornanco 510
as a cycIo 503÷04
dofinod 495
and discrolionary bohaviour 499
guiding principIos 499÷500
as an inlograling forco 493
inlroduclion of 517÷19
nanaging oxpoclalions 499
nanaging porfornanco lhroughoul lho
yoar 508÷09
noaning of porfornanco 497÷98
noasuring porfornanco 506÷07
nixod nodoI 498
ob¡oclivos 505÷06
and organizalionaI offoclivonoss 357
and porfornanco appraisaI 500
porfornanco agroononls 504÷08
porfornanco noasuros 507
porfornanco pIanning 507
porfornanco÷roIalod pay 713÷14
porfornanco roviovs 509÷10
porsonaI dovoIopnonl pIanning 507÷08
as a procoss 503
raling porfornanco 512÷15
Sub¡oct ìndox 969
and roIo anaIysis 190÷91
and roIo profiIos 190
uso of roIo profiIos 504÷05
and laIonl nanagononl 392÷93
undorslanding porfornanco nanagononl 497
doaIing vilh undor-porfornors 515÷17
and vaIuos 498
viovs on 500÷02
Iorfornanco Managononl Group 523
porfornanco noasuros 506÷07
porfornanco raling
achioving consisloncy 514÷15
probIons vilh 514
raling scaIos 513÷14
porfornanco-roIalod pay 713÷14
porfornanco roviovs 509
porson spocificalion 410
porsonaI caso vorI 847÷48
porsonaI dovoIopnonl pIanning 507÷08, 571÷72,
605
porsonaI rocords 899
porsonaIily
cIassificalion of 464÷65
dofinod 241, 464
lrails 241÷42
lypos 242÷43
porsonaIily losls 464÷66
porsonnoI funclion  HR funclion
porsonnoI nanagononl 2, 6
porsonnoI nanagononl and HRM 18÷20, 31, 88
 aIso hunan rosourco nanagononl
porsonnoI praclilionors/profossionaIs  HR
praclilionors
IorsonnoI Today 42÷43
IESTLE anaIysis 143
piocovorI 639
IiIIinglon Oplronics 126
pIannod oxporionco 572
pIuraIisl frano of roforonco 208
pIuraIisl viov of onpIoyoo roIalions 758÷59
poinl-faclor raling, ¡ob ovaIualion 662
poIicios  HR poIicios
poIilics 300
povor 300
povor sharing 774
principaI agonl lhoory 207
procoduraI ruIos 755÷56
procoss 75, 141, 179
procoss consuIling 75, 342
procoss criloria 66
procoss lhoory of nolivalion 254, 258÷59
procoss vorIor, changing roIo of 209÷10
profossionaI conducl, CIID codo 84
profil-sharing 726
pronolion 861÷62
IrudonliaI FinanciaI 590
psychoIogicaI conlracl
changing naluro of 231÷33
dofinod 225÷26
dovoIoping a posilivo psychoIogicaI
conlracl 234÷35
and lho onpIoynonl roIalionship 225
and lho HR funclion 55
and induclion 472÷73
nodoI of 229, 230
slalo of 235÷36
psychoIogicaI losls 461÷62
  soIoclion losls
psychonolric quoslionnairos 463÷64
psychonolric losls 463
  soIoclion losls
quaIily of vorIing Iifo 149
Raco RoIalions Acl 1976 418
radicaI criliquo viov of HRM 17
ralio-lrond anaIysis 374
roaclivo pragnalisls (HR praclilionors as) 73
roaIislic ¡ob proviovs 106
rocognilion, lrado unions 781, 782÷83
rocruilnonl agoncios 423
rocruilnonl consuIlanls 423
rocruilnonl pIan 383
rocruilnonl and soIoclion
advorlising 416÷20
anaIysis of rocruilnonl slronglhs and
voaInossos 415
appIicalion forns 425, 426
assossnonl conlros 430÷31
allracling candidalos 414÷15
biodala 428÷29
conpoloncy-basod approach 413÷14
confirning lho offor 436
conlracls of onpIoynonl 437
dofining roquirononls 409÷14
oIoclronic CVs 429
970 Sub¡oct ìndox
o-rocruilnonl 420÷22
fivofoId grading syslon 413
foIIov-up 437
graphoIogy 431÷32
inproving offoclivonoss of 432÷33
individuaI inlorviovs 430
inlorvioving panoIs 430
inlorviovs, lypos of 430
oulsourcing rocruilnonl 423÷24
porson spocificalions 410÷12
procoss 409
quaIificalions 436
roaIislic roforoncos 434÷36
roIo profiIos, uso of 410, 411
soIoclion boards 430
soIoclion nolhods 429, 432
sovon-poinl pIan 412÷13
sifling appIicalions 425, 427
sourcos of candidalos 415
slruclurod inlorviovs 445
largolod approach 396÷97
uso of oducalionaI and lraining
oslabIishnonls 424
uso of oxoculivo soarch consuIlanls 424
uso of rocruilnonl agoncios 423
uso of rocruilnonl consuIlanls 423÷24
rodundancy
avoiding 483
causos of 479÷80
handIing 484÷85
oulpIacononl 484, 485÷87
procoduro 484, 885÷88
voIunlary 483
roforonco group 296, 818
roforoncos 434÷36
roinforcononl 253, 550, 557
roIalionaI rovards 629
roIoaso fron lho organizalion
disnissaI 487÷90
olhicaI considoralions 481
oxil inlorviovs 380÷81
gonoraI considoralions 479÷82
oulpIacononl 485÷87
rodundancy 482÷85
roforoncos 434÷36
rolirononl 490÷91
roIo of HR funclion 480÷81
voIunlary Ioavors 490
roporlory grid 196÷98
rosourco-basod slralogic HRM 117÷18
rosourco-basod slralogy 113, 371
rosourco-basod viov of lho firn 35
rosourco capabiIily 116, 371
rosourcing
dofinod 359
and HRM 359÷60
inlograling businoss and rosourco
slralogios 360÷61
rosourcing slralogy 361, 371÷72, 390÷91
rolonlion
anaIysis of roasons for Ioaving 398
aroas for aclion 398÷99
rolonlion poIicios and progrannos
391÷92
rolonlion slralogy 397÷98
risI anaIysis 398
rolirononl 490÷91, 850
rolurn on invoslnonl 82, 608, 618
rovard nanagononl
ains 624
dofinod 623
oIononls of 625÷29
phiIosophy 624÷25
rovard poIicy
conlonl 152
issuos 627
rovard procoduros 745÷46
rovard slralogy
broad-brush 645, 648
conpononls of an offoclivo rovard
slralogy 651
conlonl 645, 648
dofinod 625, 643÷44
oxanpIos 653÷57
gap anaIysis 645, 646÷47
guiding principIos 649, 650
inpIononling 656÷57
and Iino nanagors 657
priorilios 652
roason for 644
spocific rovard inilialivos 648
slrucluro of 644÷5
rovard syslon
dofinod 625
and organizalionaI porfornanco 5
Sub¡oct ìndox 97l
rovard syslons, nanagononl of
allrilion 740
connunicaling lo onpIoyoos aboul
rovards 748÷49
conpa-ralio anaIysis 739÷40
conlroI 744
doaIing vilh anonaIios 746
ovaIualing lho syslon 739÷40
fixing ralos of pay 745
grading ¡obs 745
pay nalrix 742
pay nodoIIing 738
pay roviovs 740÷44
payroII budgols 737÷38
procoduros 745÷46
pronolion incroasos 746
rosponsibiIily for rovard 746÷48
roviov budgols 738
rovard audil 739
rholoric and roaIily, gap bolvoon 10
risI assossnonls
assossing lho risI 834÷35
dofinod 833
hazards, IooIing for 833÷34
noniloring and ovaIualion 835
significanco of 830
laIing aclion 835
roIo
anbiguily 247
confIicl 248
dofinod 247, 327
dislinclion bolvoon roIos and ¡obs 327
gonoric 327
inconpalibiIily 248
lhoory 247
roIo anaIysis
approach lo 189
dofinod 187
inlorviovs 189÷90
and porfornanco nanagononl 190÷91
purposo 188
quoslionnairo 190
obsorvalion 191
roIo dofinilion  roIo profiIo
roIo dovoIopnonl
and ongagononl 281÷82
procoss of 334÷35
roIo porcoplions 260
roIo-pIaying 581÷82
roIo profiIo
conlonl of 191÷92
dofinod 188, 327÷28
dislinguishod fron ¡ob doscriplions 247
oxanpIo of 192
gonoric 188
and lho idonlificalion of Ioarning noods 612
in porfornanco nanagononl 504÷05
for rocruilnonl purposos 410
roIo sol 247
saIos slaff pay 636, 637÷38
Saraloga 67
salisfaclion 263
savo-as-you-oarn schonos 727
sconario pIanning 372÷73
Scollish nalionaI VocalionaI QuaIificalions
(SNVQs) 159, 161
Soars RoobucI 41
soIoclion  rocruilnonl and soIoclion
dofinod 4
soIoclion boards 430
soIoclion inlorvioving
advanlagos and disadvanlagos 440÷41
arrangononls for 442÷43
asIing quoslions 450÷54
bohaviouraI-basod inlorviovs 447÷48
bohaviouraI basod quoslions 448
bohaviouraI ovonl quoslions 452÷53
biographicaI inlorviov 445÷46
briofing inlorviovors 443
capabiIily quoslions 453÷54
caroor quoslions 455
choico of inlorvioving approach 449÷50
cIosod quoslions 452
coning lo a concIusion 458÷59
conlinuily, nainlonanco of 458
conlinuily quoslions 454÷55
conlroI, Iooping 458
dos and don'ls of soIoclion
inlorvioving 459÷60
olhicaI considoralions 443
focusod vorI quoslions 455
haIo offocl 458
horns offocl 458
hypolholicaI quoslions 452
naluro of 441÷42
nolo-laIing 458
opon quoslions 450÷51
972 Sub¡oct ìndox
pIanning lho progranno 443
pIanning and slrucluring inlorviovs 444÷45
pIay-bacI quoslions 455
proparalion 443÷44
probing quoslions 451÷52
psychonolric inlorviovs 448÷49
purposo 419÷20
quoslions lo bo avoidod 456
quoslions aboul nolivalion 454
quoslions aboul oulsido inlorosls 456
silualionaI-basod inlorviovs 447
sIiIIs 457÷58
slarling and finishing 450
slruclurod inlorviovs 445
lon usofuI quoslions 456÷57
lining 444
unhoIpfuI quoslions 456
unslruclurod inlorviovs 445
uso of assossnonl hoadings lo pIan
inlorviov 447
uso of porson spocificalion lo slrucluro
inlorviov 446÷47
soIoclion losls
abiIily losls 466
apliludo losls 466
allainnonl losls 466
characlorislics of a good losl 462
choosing losls 468
concurronl vaIidily 462
conslrucl vaIidily 463
conlonl vaIidily 463
criloria for 469
faco vaIidily 463
inloIIigonco losls 464
inlorproling losl rosuIls 467
nornaI curvo 467
norns 467
porsonaIily losls 464÷66
prodiclivo vaIidily 462
psychoIogicaI losls 461÷62
psychonolric losls 461
purposo 461÷6
roIiabiIily 462
uso of losls 468÷69
vaIidily, noasurononl of 463
vaIidily, lypos of 462÷63
soIf-diroclod Ioarning 557, 561÷62
soIf-officacy lhoory 342
soIf-nanagod Ioarning  soIf-diroclod Ioarning
soIf-nanaging loans 333
soIf-pacod Ioarning 585
soIf-rofIoclivo Ioarning 560, 562
sonsilivily lraining 342
sorvico IovoI agroononls 57, 67
sorvico-roIalod pay 720÷21
sovon-poinl pIan 412÷13
sovorily ralo 842
Sox Discrininalion Acl 1975 418
soxuaI harassnonl 154, 870÷72
sharo ovning schonos 726
sharod HR sorvicos (HR sorvico conlro) 58, 63÷4
shifl paynonls 735
shifl-vorIing 387
shop-fIoor paynonl-by-rosuIl schonos 639÷40
shop slovards 767
SHRM  slralogic hunan rosourco nanagononl
sicInoss 848÷49
sinuIalion 582
singIo-Ioop Ioarning 541÷42
singIo-labIo bargaining 786÷87
singIo-union doaIs 781÷82
sIiII-basod pay 718÷20
sIiIIs anaIysis
dofinod 198
fauIls anaIysis 200
¡ob broaIdovn 199
¡ob Ioarning anaIysis 200
nanuaI sIiIIs anaIysis 199
lasI anaIysis 199÷200
sIiIIs invonlorios and audils 901
SMART ob¡oclivos 506
snoIing poIicy 872
sociaI capilaI
dofinod 34
and InovIodgo nanagononl 34, 179
sociaI Ioarning lhoory 342, 551
sociaI nolvorIs 180
socio-lochnicaI nodoI of organizalion 285
sofl HRM 12
sofl slralogic HRM 117
slabiIily indox 379
slaff associalions 768
slaIohoIdors
and HR praclilionors 71
and HR slralogy 117
and hunan capilaI nanagononl 32
as ¡udgos of HRM offoclivonoss 69
and lho pIuraIisl porspoclivo 208
Slandard Charlorod BanI 50, 498
Sub¡oct ìndox 973
sland-by aIIovancos 735
slralogic businoss unils (SBUs) 322
slralogic capabiIily 113÷14, 371
slralogic chango 344÷45
slralogic cohoronco 54
slralogic fil 24, 114, 118
slralogic goaIs 114
slralogic hunan rosourco dovoIopnonl (slralogic
HRD)
ains 534
conpononls 534
croaling lho slralogy 536
dofinod 533
doIivoring lho slralogy 536÷37
and HRM 535
phiIosophy 537
procoss of Ioarning and dovoIopnonl 535
slralogios for 536÷37
slralogic hunan rosourco nanagononl (slralogic
HRM)
ains 116÷17
dofinod 115, 124, 131
hard slralogic HRM 117
and HR slralogios 115, 124
inpIononling 121
ralionaIo for 131
rosourco-basod approach lo 117÷18
sofl slralogic HRM 117
and slralogy 113÷15
slralogic inlogralion 54, 116
slralogic inlonl 113
slralogic roviov, conducl of 141÷42
slralogios, HR scc HR slralogios
slralogy
dofinod 113
fornuIalion of 114÷15
noanings of 114
procoss of 113÷14
slross
nanagononl of 840
provonlion of 840
roasons for laIing accounl of slross
839÷40
slriIos 790÷91
sub-conlracling 386
subslanco abuso 155, 873
subslanlivo ruIos 755÷56
succossion pIanning 403÷04
suggoslion schonos 814
Sun!cq 1imcs bosl conpanios lo vorI for
survoy 394
suppIy forocasling 374÷75
survoy foodbacI (OD) 341
survivaI ralo 377÷78
SWOT anaIysis 143
syslonalic lraining 577
syslons schooI of organizalion 285
syslons lhoory of induslriaI roIalions 755
laIonl audil 392
laIonl fIov 391
laIonl pooI 391
laIonl nanagononl
approachos lo 389
allraclion and rolonlion poIicios and
progrannos 391÷92
allraclion slralogios 395÷97
and caroor nanagononl 393, 399÷07
croaling a groal pIaco lo vorI 394÷95
dofinod 9, 390
oIononls of 390÷93
onpIoyor branding 395÷96
onpIoyor of choico 396
for InovIodgo vorIors 407
and Ioarning and dovoIopnonl 393
and porfornanco nanagononl 392÷93
in praclico 407÷08
rosourcing slralogy 390÷91
rolonlion slralogios 397÷99
and roIo dovoIopnonl 392
slralogy 126
laIonl audil 392
laIonl fIov 391
laIonl pooI 391
largolod rocruilnonl and soIoclion
396÷97
and lolaI rovard 393
var for laIonl 389
laIonl roIalionship nanagononl 392
lasI anaIysis 199÷200
lasI slrucluro 329
loan-basod pay 724÷25
loan briofing 824÷25
loan-buiIding
aclivilios 355
ain 355
criloria for offoclivonoss 356
in organizalion dovoIopnonl 342
loan roIos 298
974 Sub¡oct ìndox
loanvorI
characlorislics of offoclivo loans 296÷97
dofinilion of a loan 296
dysfunclionaI loans 297
lochnicaI conpoloncios
anaIysis of 198
dofinod 161
lochnoIogy 25, 26
loIovorIing 210÷11, 385
lorns and condilions of onpIoynonl 858÷57
losls  soIoclion losls
lhinIing porfornors 92
lhird-counlry nalionaIs 100
lhird-parly dispulo rosoIulion 787÷88
lino ralos 636
T-groups 342
360-dogroo foodbacI
advanlagos and disadvanlagos 527÷28
criloria for succoss 528÷29
dofinod 521÷22
nolhodoIogy 524÷26
uso of 522÷23
lhroshoId conpoloncios 160
lolaI quaIily nanagononl 356
lolaI ronunoralion 627, 731
lolaI rovard
bonofils of 632
dofinod 627, 629÷31
nodoI of 633
significanco of 632
Tovors Iorrin 633
Trado Union Congross (TUC) 768
lrado unions
and coIIoclivo bargaining 767
coIIoclivo voico of 766÷77
docIino of 766
faclors affocling rocognilion or do-
rocognilion 782÷83
nanaging vilh lrado unions 791÷92
nanaging vilhoul lrado unions 792÷94
purposo 766
rocognilion 781
roIos of 767
singIo union rocognilion 781÷82
slrucluro 767
lraining
dofinod 535, 575
offoclivo lraining 578
ovaIualing lraining 570÷72
¡usl-in-lino lraining 577÷78
¡uslificalion for 576
roIo of 575÷76
syslonalic lraining 577
lochniquos 579÷82
lransforring 576
lypos of 578
lrails 241÷42
lransaclionaI chango 352
lransaclionaI rovards 629
lransfors 860÷61
lransfornalionaI chango 74, 352
  organizalionaI lransfornalion
lrusl
buiIding 781
cIinalo of lrusl 182
dovoIoping a high lrusl organizalion 221÷22
and lho onpIoynonl roIalionship 220
high-lrusl organizalions 182
and ¡uslico 222
noaning of 221
ronoving 222÷23
vhon do onpIoyoos lrusl
nanagononl` 221÷22
lurnovor, onpIoyoo  Iabour lurnovor
lurnovor indox, Iabour 376÷77
lvo-faclor nodoI of nolivalion
(Horzborg) 262÷63
undor-porfornors, doaIing vilh 515÷17
unonpIoynonl 212
UniIovor 590
unions  lrado unions
unilary frano of roforonco 207, 275÷78
unilary phiIosophy 14
unilary viov of onpIoyoo roIalions 758
US Doparlnonl of Labor 137
uliIily anaIysis 66
vaIidily in soIoclion losls 462÷63
vaIuo addod 39, 40
vaIuo proposilion 396
vaIuos 303, 307
as oxprossod in HR poIicios 149÷50
of HR spociaIisls 84
vorlicaI fil 139
vorlicaI inlogralion of HR slralogy 54, 116, 134
virluaI firn, lho 25
Sub¡oct ìndox 975
voico  onpIoyoo voico
voIunlarisn 759÷60
voIunlary roIoaso 480
var for laIonl 389
Walson Wyall 39÷40, 899÷900
voIfaro
caso for 845÷47
calogorios of voIfaro sorvicos 847
counsoIIing sorvicos 852
oIdorIy and rolirod onpIoyoos 851
onpIoyoo assislanco progrannos
(EAIs) 852÷53
group sorvicos 848
individuaI sorvicos 848÷50
porsonaI caso vorI 847÷48
provision of 851÷52
voII-boing 212÷13
vorI
alliludos lo vorI 212
caroor oxpoclalions 211
changing pallorns of 210÷11
¡ob roIalod voII-boing 212÷13
organizalionaI faclors affocling vorI
208÷10
orionlalion lo vorI 246÷47
lhoorios aboul vorI 206÷08
unonpIoynonl 212
vhal il is 205
WorI Foundalion 875, 876
vorI-Iifo baIanco
bonofils of poIicios on 876÷77
dofinod 875
noasuros 876
oplions 875
poIicy 152
vorI procossos 37
vorI sludy 374
WorIpIaco EnpIoyoo RoIalions Survoy
(2004) 212÷13, 766, 793
vorIpIaco Ioarning 564÷65
vorIshops, for conpoloncy anaIysis 194÷95
WorId BanI 34
vorId cIass nanufacluring 208
vorId cIass organizalion 82
976 Sub¡oct ìndox
Adair, } 299
Adans, } S 222, 262
Adans, K 57
AdIor N } 101
AIbanoso, M 120
AIdorfor, C 257
AIIporl, G 252
Androvs, H 834, 835, 842
Arau¡o, } 540
ArgyIo, M 240, 241
Argyris, C 180, 284, 339, 341, 540, 541, 546, 550
Arnslrong, M 14, 17, 124, 133, 207, 500, 501, 507,
521, 523, 712, 717, 742
ArnoId, } 244, 252
Arlhur, } 21
Alhos A 274, 275
AlIinson, } 290, 757
Auslin, N 275
BaIIin, D B 207
Bandura, A 342, 349÷350, 551
Barnard, C 284
Barnoy, } 35, 117, 18
Baron, A 14, 124, 500, 501, 507, 521, 523, 742
BarlIoll, C A 99÷100, 104, 291
Bass, B M 535
BayIiss, F 765, 769
BoardvoII, I 807
Boally, R W 523÷24
BocIhard, R 339, 347÷48, 353
BocIor, B E 9, 21, 37÷38, 138
Boor, M 6, 7, 14, 30, 119÷20, 350÷51
BoIbin, M 298, 356
BoII, C H 338, 339
Bonnis, W 339
Bonlo, R 103
Bossanl, } 356
Bovan, S 272, 398
Bibbings, R 829
Bios, R } 262
BirchaII, D 550
BIacIburn, R M 246
BIacIIor, F 175, 179
BIaIo, I 176
BIaIo, R 339
BIinIorn, S 465
BIylon, I 141
Bonlis, N 8, 33, 34
Boudroau, } W 66
Bovoy, A 711
BoxaII, I 6, 7÷8, 11, 35, 118, 123, 132, 807
Boyalzis, R 160
Author ìndox
BradIoy, I 107÷08
Bravornan, H 206
BrayfioId, AH 264÷65
Brovslor, C 101-02, 103÷04
BrocIbanI, W 79÷81, 89
Brovn, D 644, 651÷52, 712, 717
Brunbach, G B 498
Buchanan, D 277
BuIa, D N 363
Burgoyno, } 544, 546
Burns, } M 286, 353
Burl, C 240
CaIdvoII, R 10÷11, 16, 31, 74
CaIigiri, I 107
CappoIIi, I 8, 31, 133, 135, 180, 393, 398, 399
Carlor, A 536÷37, 567, 573, 596÷97, 614
Carlor, C 175, 539, 545
Casson, } 365
CalloII, R B 242
Cavo, A 758÷59
ChanborIain, N W 756, 757
ChoII, E 242
ChiId, } 284, 287
Chiunonlo } 272
CIogg, H 758
CIullorbucI, D 569
Convay, N 16, 94, 221, 227, 233÷34
CooIo, R 312
Coopor, R 331
Coopoy, } 275, 276
Cosla, I 464
CrocIor-Hoflor, A 8, 135, 180
CrocIoll, W H 264÷65
Cronbio, A 304
Cyorl, R M 208, 275
DaIo, M 541
Davonporl, T H 179
Davonporl, T O 33, 35
Davis, L E 330
Do Coliis, T 313
DoaI, T 304
Doary, I } 242
DoIory, } E 139
doLong, T 390
Donison, D R 305
DicIson, W 284
Doly, H D 139
DrucIor, I 74, 180, 287, 604, 758
DuIovicz, V 171
Duncan, C 789
DunIop, } T 755
Dyor, L 123, 139, 140÷41, 277÷78
Easlorby-Snilh, M 540, 546
Edonborough, R 447, 463
Edvinson, L 35
Egan, G 499÷500
Eggorl, M 486
Ehronborg, R G 540
Eisonslal, R 350÷51
EIdridgo, } 304
EIias, } 33, 39
EIIioll, L 233
Eraul, M } 564
EysoncI, H } 243
Farnhan, D 786
FayoI, H 283
FoII, A 77, 86, 87÷88
Forroira, L 103
FindIay, F 206÷07
Fino, S A 198
FilzpalricI, M } 864
FIandors, A 756÷57
FIolchor, C 465÷66, 498÷99
FoIIoll, M I 324
Fonbrun, C } 4, 30÷31
FovIor, A 13, 431, 472
Fox, A 22, 756÷57, 758
Froonan, R 766÷67
Fronch, W L 300, 305, 338, 339
Friodnan, A 206
FuIIorlon, } 868÷69
Furnhan, A 304÷05, 306, 313÷14
Gagno, R M 240, 551
GaIIio, D 218
Garrall, R 545
Garvin, D A 185, 543÷44
Gonnard, } 18, 207, 759
Gopporl, M 540
Gorharl, S 138
Ghador, F 101
GhoshaI, S 99÷100, 104, 180, 291
GiIos, L 209
GiInor, B 264
GoId, } 559, 591
GoIdlhorpo, } H 246, 267
978 Author ìndox
GoIonan, D 170, 602, 603
Gonoz-Mo¡ia, L R 66, 207
Grahan, M D 629
Granl, D 176
Granl, R M 31
Grallon, L 10, 12, 16, 132, 143÷44
GroIIor, M M 226
Guosl, D E 12, 15, 16, 17, 18, 22, 23, 31, 68÷69,
86÷87, 94, 137, 221, 227, 228, 229, 233÷34,
246, 258÷59, 277, 759, 761÷62, 765÷66,
776, 792
GuiIford, } I 241
Gunlor, B 304÷05, 306, 313÷14
Guzzo, R A 217
HaIoy, } 102÷03
HaII, D 231
HaII, D T 533
HaII, I 601÷02
HanbIin, AC 616, 619
HanoI, G 117
Handy, C 287÷88, 290, 310, 481÷82
Handy, L 522
Hanson, M T 173, 176÷77, 179, 183÷84
Harris, H 103
Harrison, R 301, 311, 539, 543, 545÷46
Harrison, Rosonary 533, 536, 540, 570
HarlIoy, } 275, 276
HarlIoy V 39
HavIins, K A 757
HoIIor, R 366
Hondry, C 11, 20, 73, 101, 115÷116, 139, 368÷69
Horrioll, I 220, 221, 222
Horzborg, F 254, 262÷63, 267, 284, 333
Higgs, M 171
HiIIago, } 583
HiIlrop, } M 103, 232÷33
Hirsh, W 404, 407, 567, 593, 596÷97
Hofslodo, G 103
HoIbocho, L 397
HoIdor, G W 140÷41
HoIl, A 834, 835, 842
Honoy, I 550, 553, 554, 559
Hopo-HaiIoy, V 18, 56÷57, 97
Hoquo, K 32, 71
Horvood, R 86÷87
HoyIo, E 185, 546
HucyznsIi, A 277, 864
HuII, C 253
HusoIid, M A 21, 66
Hulchinson, S 64, 93÷94, 96, 97
}anos, R 244÷45
}aquos, E 268
}ohnson, C 465
}ohnson, G 55, 113
}onos, T W 208
}udgo, G 207, 759
}ung, C 243
Kahn, R 247, 285, 339÷40
Kahn-Fround, O 760
KaIabadso, A 300
KandoIa, R 200, 868÷69
Kanl 12
KanuI, } 307
KapIan, R S 42
Kalz, D 247, 285
Kalzonbach, } 296÷97
Koarns, I 29, 30, 32, 607, 618
Koonoy, T 18
Koop, E 371
KoIIoy, H H 245
KoIIy, G 197
KoIIy, } 18
Konnody, A 304
KossoIs, } 185
KossIor, S 215÷16, 711, 765, 769
KollIoy, I 889
KirIpalricI, D L 616÷18, 619
KissIor, G D 231÷32
Kochan, T A 277÷78, 808
Kodz, } 876, 877
KoIb, D A 552÷53
Kollor, } I 286, 354
Koys, D 313
Kuhn, } 756, 757
Lafforly, } 312
LaIo, D 8
Lalhan, G 261
Lauronl, A 100, 102
LavIor, E E 55, 259, 260
Lavronco, I R 286, 331
Loadbollor, C 39
Loary-}oyco, } 397
Loavill, H } 293÷94
LobIanc, B 106
Loggo, K 13, 14, 15, 17, 18, 76, 92, 138, 275÷76
Loon, L S 543
Author ìndox 979
LovonlhaI, S 222
Lovinson, D 243
Lovin, K 339, 341, 347
Liff, S 365
LiIorl, R 284, 285
LillIor, C 206
Lilvin, G H 312÷13
LocIo, R 261
London, M 523÷24
Long, I 124, 133
Lorsch, } 286
Lov, } 45
Lyons, L 550
Maboy, C 16, 17, 540
MacDuffio, } I 119÷20, 139
MacIay, L 87
MacnoiI, R 217
MaIin, I 241, 243, 244
MaIono, M S 35
Manghan, L L 275
Mann, R 246
MansfioId, B 159, 198
Manl, A 233
Manus, T M 629
March, } G 208, 275
Marchinglon, M 74, 365, 793, 808
Margorison, C 298, 356
Marginson, I 786
Marsdon, D 711
MarsicI, V } 540, 563
Marlin, A O 846
Marlin, } 304
Marx, K 206
MasIov, A 255÷56, 263
Mallhovs, G 242
Mayo, A 30,
McCann, R 298, 356
McCIoIIand, G 758
McCrao, R 464
MacDuffio, } I 120
McGrogor, D 263, 284÷85, 339, 604
McKorsio, R B 757
McLoan, A 340
MocIIonborg, S 176
Moyorson, D 304
Mozirov, } A 562
MiIos, R E 361
MiIIor, L 170÷71, 198
MiIIor, R 185, 544
MiIIor, T 607, 618
MiIIvard, N 792÷93, 807
Minlzborg, H 114÷15, 275, 287, 290
MilchoII, L 198
Mohrnan, S A 55
MonIs, K 77÷78
Morlon, G 792
MuoIIor, F 21
Munford, A 553, 559, 591, 594
Munro-Frasor, } 412
NadIor, D A 237, 349
Nahpiol, } 180
Novlon, T 206÷07
NonaIa, I 175, 177
Noon, M 15, 32, 71
Noonan, K A 217
Norris, I 601÷02
Norlon, D I 42
O'NoaI, S 632
O'RoiIIy, C A 389
Ouchi, W G 275
IascaIo, R 274, 275, 287, 352
Iallorson, M G 22, 137
Iayno, T 414
Ioarn, K 200
Ioccoi, R 68÷69
IodIor, M 543, 550
Ionroso, E 117
IorIins, S 101, 105
Iorrov, C 284
Iolors, } 797
Iolors, T 61, 274, 275
Iolligrov, A 11, 20, 73, 115÷116, 139, 344÷45, 540
Ifoffor, } 137, 389, 632
IhoIps-Brovn, H 765
IicIard, } 85, 542
IiI, F K 120
IoIIard, E 583
Iorlor, L W 260, 272÷73
Iorlor, M 135
IrahaIad, C K 117
IurcoII, } 8, 10, 14÷15, 20, 22÷23, 24, 55, 71, 93,
97÷98, 116, 117÷18, 133, 135, 139, 157, 209, 264,
305÷06, 499, 711, 759, 792, 807
Iulnan, R 34
Quinn, } B 349
980 Author ìndox
Quinn MiIIs, D 117, 360, 364
RanIin, N 159, 164, 167
Ravon B 300
Rood, A 395
Roovos, T 123, 139
Roich, R 35
Roid, M A 619
RoiIIy, I 63÷64, 79, 366÷67, 372, 397, 785, 889
Rovans, R W 573
RoynoIds, } 549, 551, 555÷56, 562, 564, 575, 576,
609
Richardson, R 123, 139, 711
Roborls, C 789
Roborls, G 413, 464, 465
Roborlson, I T 331, 462, 463
Robinson, D 906
Rodgor, A 412
RoolhIisborgor, F 284
Rogors, A 555
RolhvoII, S 366
Roussoau, D M 217, 225÷26, 305
Rucci, A } 41
RuggIos, R 178
RyIo, G 175
SaIanan, G 206, 540
SaIanciI, G R 272, 273
SaInon, G 585
SaviIIo, I 465
Scarborough, H 9, 39, 173, 174, 175, 178, 179, 539,
545, 546
Schoin E H 181, 225, 306, 310, 339, 609
Schiffnan, A 307
Schnill, N 465
SchoIos, K 55, 113
Schon, D A 540, 546
Schrann, } 570
SchuIor, R S 35, 36
SchuIz, T W 33
Scoll, A 18
Scoll, I M 363
Scoll-}acIson, W 32
Soars, D 396
SoIIs, S B 244÷45
Songo, I 539, 543, 545
Shav, R B 220
Shoparl, H 339
SiosfioId, T 45
SiI, G 465
Singh, R 31
Sins, R R 227
Sisson, K 15, 18, 56, 786, 792
SIinnor, B F 226, 255
SIoan AI 289
SIonan, M 546, 560, 561, 570
SniIansIy, } 390
Snilh, D 296-97
Snilh, M 331, 462, 463, 465
Snilh, I 792
Snilh R S 540
SnoII, S A 135
Snov, C C 361
Snydor, W M 182, 540, 545
Sparrov, I 103, 108, 226
Spoarnan, C 464
Spoclor, B 350÷51
SpindIor, G S 227, 229÷30
SlaIIor, G 286
Slovarl, } 118, 185, 544
Sloroy, } 3÷4, 11÷12, 18, 31, 72, 76, 78
Slringor, R A 312÷13
TaIouchi, H 175, 177
TanIin, I 592÷93, 615÷16
Tanpoo, M 183
Tan, } 174
Tannonbaun, S I 339
Tariquo, I 107
TayIor, A 241, 413
TayIor, F W 255, 283
Thonpson, M 22, 123, 139, 220, 221, 711
Thonpson, I 272, 634
ThurIoy, K 87, 88, 348
Thurslono, L L 240, 241
TopIis, } 241, 463, 464
Torringlon, D I 18, 31, 87
TovnIoy, B 359÷60, 432, 501
Truss, C 12, 20
TrussIor, S 176
Tsui, AS 66
Turnor, AN 331
Turnov, W W 523
Tushnan, M L 237, 349
TvilchoII, S 619
TyIor, T R 262
Tyson, S 56, 73, 77 86, 87÷88, 115
UIrich, D 8, 20, 26÷27, 54, 55, 56, 79÷81, 104,
173
Author ìndox 98l
Undy, R 215÷16
UrvicI, L F 283
van Dan, N 58÷78
Vaughan, } A 535
Vornon, I E 240
Vi¡ayaraghavan, V 390
Vroon,V 226, 259
Wado-Bonzoni, K A 217, 225÷26
WaIIor, } W 116
WaIIor, N 574
WaIlon, } 533
WaIlon, R E 119÷20, 274÷75, 276÷77, 757
Walornan, R 274, 275
WalIins, K 563
Walson, A 86
Wobor, M 284
Woinor, B 245÷46
Wongor, E 182, 540, 545
Wosl, I 541
Whipp, R 344÷45, 540
WicI, C W 543
WicIons, I 434
WiIIinson, A 365
WiIIians, A 311, 559
WiIInoll, H 17
WonacI, } 208
Wood, R 414
Wood, S 64, 96, 119, 120
Woodvard, } 128, 345
Wrighl, D S 241
Wrighl, I M 135
Wrighl, V 711
Youndl, M A 34
Zuboff, S 565
982 Author ìndox

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