Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 HUMAN RESOURCE MANAGEMENT STRATEGY AND PRACTICE Copyright 2020 Cengage Learning.
All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 To all HRM students and professionals who dream of making their workplaces attractive, inspiring, productive and future-focused. Alan Nankervis To my work colleagues and students, for your ongoing interest in and commitment to creating good employment relations and workplaces.
Marian Baird To all those who have taken the time to either adopt or read this wonderful edition – thank you for your ongoing interest to learn more about building and improving an HR culture that will build dynamic and positive workplaces of the future. Jane Coffey To Millennials worldwide – the generation of future leaders on whom our hopes for responsible organisational stewardship now so much depend. John Shields Copyright 2020 Cengage Learning. All Rights Reserved.
May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 EVOLUTION OF STRATEGIC HUMAN RESOURCE MANAGEMENT CHAPTER 1 iii HUMAN RESOURCE ALAN NANKERVIS MARIAN BAIRD MANAGEMENT JANE COFFEY JOHN SHIELDS STRATEGY AND PRACTICE 10TH ASIA-PACIFIC EDITION Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
WCN 02-200-202 Human Resource Management: Strategy and Practice © 2020 Cengage Learning Australia Pty Limited 10 Edition Alan Nankervis Copyright Notice Marian Baird This Work is copyright. No part of this Work may be reproduced, stored in a Jane Coffey retrieval system, or transmitted in any form or by any means without prior written John Shields permission of the Publisher. Except as permitted under the Copyright Act 1968, for example any fair dealing for the purposes of private study, research, criticism or review, subject to certain limitations. These limitations include: Restricting the Head of content management: Dorothy Chiu copying to a maximum of one chapter or 10% of this book, whichever is greater; Content manager: Rachael Pictor providing an appropriate notice and warning with the copies of the Work Content developer: James Cole/Laura Di lorio disseminated; taking all reasonable steps to limit access to these copies to people Project editor: Sutha Surenddar authorised to receive these copies; ensuring you hold the appropriate Licences Editor: Anne Mulvaney issued by the Copyright Agency Limited (“CAL”), supply a remuneration notice to Proofreader: Melissa Faulkner CAL and pay any required fees.
For details of CAL licences and remuneration Permissions/Photo researcher: Catherine Kerstjens notices please contact CAL at Level 11, 66 Goulburn Street, Sydney NSW 2000, Cover design: Nikita Bansal Tel: (02) 9394 7600, Fax: (02) 9394 7601 Text designer: Danielle Maccarrone Email: info@copyright.au Project designer: Nikita Bansal Website: www.au Illustrator (cover and internal): Gregory Baldwin Cover: © Gregory Baldwin Illustration 2019 For product information and technology assistance, MPS Limited in Australia call 1300 790 853; in New Zealand call 0800 449 725 Any URLs contained in this publication were checked for currency during the production process. Note, however, that the publisher For permission to use material from this text or product, please email cannot vouch for the ongoing currency of URLs.com National Library of Australia Cataloguing-in-Publication Data Acknowledgements Creator: Nankervis, Alan, author. Authorised adaptation of Managing Human Resources 18th edition by Title: Human Resource Management: Strategy and Practice / Alan Nankervis, Scott A. Morris and George W.
Bohlander, 2019, Marian Baird, Jane Coffey and John Shields (author). Cengage Learning Edition: 10th edition ISBN: 9780170421843 (paperback) Notes: Includes index. Other Creators/Contributors: Baird, Marian (author) Coffey, Jane (author) Shields, John (author) Cengage Learning Australia Level 7, 80 Dorcas Street South Melbourne, Victoria Australia 3205 Cengage Learning New Zealand Unit 4B Rosedale Office Park 331 Rosedale Road, Albany, North Shore 0632, NZ For learning solutions, visit cengage.au Printed in Singapore by 1010 Printing International Limited. 1 2 3 4 5 6 7 23 22 21 20 19 Copyright 2020 Cengage Learning.
All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 v BRIEF CONTENTS PART 1 HRM IN CONTEXT 1 Chapter 1 Evolution of strategic human resource management 2 Chapter 2 The context of strategic human resource management 47 Chapter 3 Industrial relations: frameworks and practice 78 Chapter 4 Human resource planning in a changing environment 121 PART 2 HRM STRATEGIES, SYSTEMS AND PROCESSES 163 Chapter 5 Work design challenges in a global environment 164 Chapter 6 Talent attraction and selection 199 Chapter 7 Talent retention and development 251 Chapter 8 Management of performance 294 Chapter 9 Strategic reward management 352 Chapter 10 Managing work health and safety 438 Chapter 11 Workplace negotiation processes 480 PART 3 THE EFFECTIVENESS OF SHRM: TOWARDS THE FUTURE 509 Chapter 12 Evaluating SHRM: towards the future 510 Copyright 2020 Cengage Learning. All Rights Reserved.
May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 vi CONTENTS Guide to the text________________________________________________xii Guide to the online resources_____________________________________ xvii Preface and AHRI endorsement____________________________________ xix About the authors, contributors and acknowledgements________________ xxii PART 1 HRM IN CONTEXT 1 Chapter 1 Evolution of strategic human resource management_____________ 2 Introduction________________________________________________________________ 3 Development and concepts of SHRM____________________________________________ 6 SHRM, business strategies, perspectives and models_____________________________ 13 Strategic international human resource management_____________________________ 21 Critics of SHRM____________________________________________________________ 24 SHRM: Roles, functions and ethical principles___________________________________ 27 SHRM – our model and this text_______________________________________________ 38 Summary_________________________________________________________ 41 Key terms_________________________________________________________ 41 Emerging issues____________________________________________________ 41 Ethical challenge: Coffee or tea? Nature and nurture: the birth of Maya Australia_______________________________________________ 42 Case study 1.1: Readify: developing graduate work-readiness skills__________ 44 Chapter 2 The context of strategic human resource management_________ 47 Introduction_______________________________________________________________ 48 The global economic context__________________________________________________ 49 The Australian economy_____________________________________________________ 53 Summary_________________________________________________________ 73 Key terms_________________________________________________________ 73 Emerging issues____________________________________________________ 73 Ethical challenge: Work hours and pay rates_____________________________ 74 Case study 2.1: HR director’s challenge: advancing women to leadership positions_______________________________________________ 74 Chapter 3 Industrial relations: frameworks and practice__________________ 78 Introduction_______________________________________________________________ 79 Industrial relations and SHRM________________________________________________ 81 Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
WCN 02-200-202 CONTENTS vii The industrial relations framework in Australia__________________________________ 82 The state industrial relations systems_________________________________________ 103 Associated legislation______________________________________________________ 104 The Fair Work Act 2009: implications__________________________________________ 106 Summary________________________________________________________ 115 Key terms________________________________________________________ 115 Emerging issues___________________________________________________ 115 Ethical challenge: Business needs vs compliance: Woolworths’ cleaning contractors____________________________________ 116 Case study 3.1: Working holiday woes__________________________________ 116 Chapter 4 Human resource planning in a changing environment__________ 121 Introduction______________________________________________________________ 122 Human resource planning___________________________________________________ 123 The process of human resource planning______________________________________ 130 Human resource information management systems_____________________________ 144 Formulating human resource plans___________________________________________ 155 Effective human resource planning___________________________________________ 156 Summary________________________________________________________ 157 Key terms________________________________________________________ 157 Emerging issues___________________________________________________ 157 Ethical challenge: Deliveroo wins right not to give riders minimum wage or holiday pay________________________________________________ 158 Case study 4.1: New Zealand customs service: workforce strategy__________ 159 PART 2 HRM STRATEGIES, SYSTEMS AND PROCESSES 163 Chapter 5 Work design challenges in a global environment_______________ 164 Introduction______________________________________________________________ 165 Job analysis______________________________________________________________ 166 Job design strategies_______________________________________________________ 183 Creativity and innovation____________________________________________________ 190 Diversity management______________________________________________________ 192 Summary________________________________________________________ 193 Key terms________________________________________________________ 194 Emerging issues___________________________________________________ 194 Ethical challenge: Humanising technology or digitising humanity?__________ 195 Case study 5.1: The ties are off_______________________________________ 196 Case study 5.2: TK Ceramics: an Indonesian opportunity__________________ 196 Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 viii CONTENTS Chapter 6 Talent attraction and selection_______________________________ 199 Introduction______________________________________________________________ 200 The strategic perspective___________________________________________________ 201 Attracting talent from within_________________________________________________ 208 Attracting talent from outside the organisation__________________________________ 211 The selection process______________________________________________________ 220 Sources of information about job candidates____________________________________ 223 The employment interview__________________________________________________ 229 Employment tests_________________________________________________________ 240 Reaching a selection decision________________________________________________ 243 Summary________________________________________________________ 246 Key terms________________________________________________________ 246 Emerging issues___________________________________________________ 247 Ethical challenge: The Facebook dilemma______________________________ 248 Case study 6.1: Coal India’s recruitment binge___________________________ 249 Case study 6.2: The creative spark____________________________________ 249 Chapter 7 Talent retention and development____________________________ 251 Introduction______________________________________________________________ 252 The challenges of supply and demand_________________________________________ 254 Talent retention___________________________________________________________ 255 Induction and orientation____________________________________________________ 257 Learning and development programs_________________________________________ 262 Developing employees______________________________________________________ 268 Developing leaders________________________________________________________ 272 Career management_______________________________________________________ 279 A strategic perspective to career development__________________________________ 280 Ethics and HRD____________________________________________________________ 286 Summary________________________________________________________ 288 Key terms________________________________________________________ 289 Emerging issues___________________________________________________ 289 Ethical challenge: Is the concept of ‘best fit’ in employee selection discriminatory?___________________________________________________ 290 Case study 7.1: The emerging talent crisis in India and China_______________ 291 Case study 7.2: Singapore’s got talent_________________________________ 292 Copyright 2020 Cengage Learning.
All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 CONTENTS ix Chapter 8 Management of performance________________________________ 294 Introduction______________________________________________________________ 295 Debates and trends in the management of employee performance__________________ 296 Performance management as a continuous cycle________________________________ 300 Performance measurement methods_________________________________________ 304 Why performance management systems often fail_______________________________ 311 The end of PMS – or a new beginning?_________________________________________ 316 Requirements for system effectiveness________________________________________ 320 Performance feedback and feedforward_______________________________________ 326 Processes and practices for improving underperformance________________________ 330 Disciplinary action_________________________________________________________ 337 Summary________________________________________________________ 343 Key terms________________________________________________________ 343 Emerging issues___________________________________________________ 344 Ethical challenge: Losing our way: how the cult of the KPI has damaged our moral compass________________________________________ 345 Case study 8.1: Google’s ‘OKR’ system_________________________________ 347 Case study 8.2: Performance management resister gets job back__________ 347 Chapter 9 Strategic reward management______________________________ 352 Introduction______________________________________________________________ 353 Total reward management__________________________________________________ 354 Managing base pay_________________________________________________________ 367 Employee benefit plans_____________________________________________________ 382 Performance-based rewards________________________________________________ 390 Rewarding executives______________________________________________________ 410 Managing expatriate pay____________________________________________________ 417 Summary________________________________________________________ 424 Key terms________________________________________________________ 425 Emerging issues___________________________________________________ 425 Ethical challenge: Putting the brakes on bosses’ bonus blow-outs__________ 427 Case study 9.1: Childcare equal pay claim rejected_______________________ 429 Case study 9.2: Bankwest Heroes’: an enterprise-wide recognition program for a post-GFC world_______________________________________ 431 Copyright 2020 Cengage Learning. All Rights Reserved.
May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 x CONTENTS Chapter 10 Managing work health and safety___________________________ 438 Introduction______________________________________________________________ 439 The extent of the problem___________________________________________________ 440 Perspectives of WHS in Australia_____________________________________________ 442 The harmonisation of WHS law in Australia_____________________________________ 450 Creating a safe, healthy and ethical work environment____________________________ 458 Managing WHS programs___________________________________________________ 471 Summary________________________________________________________ 475 Key terms________________________________________________________ 475 Emerging issues___________________________________________________ 475 Ethical challenge: Foreseeable risks ignored before mine fire_____________ 476 Case study 10.1: Drug and alcohol testing must be reasonable_____________ 477 Chapter 11 Workplace negotiation processes____________________________ 480 Introduction______________________________________________________________ 481 The nature of conflict_______________________________________________________ 482 Positive and negative aspects of workplace conflict______________________________ 483 Common alternative dispute resolution processes_______________________________ 486 Conflict management styles_________________________________________________ 496 Cross-cultural awareness in conflict management______________________________ 499 Summary________________________________________________________ 503 Key terms________________________________________________________ 503 Emerging issues___________________________________________________ 504 Ethical challenge: Ethical dilemmas in the Sarawak oil and gas industry___________________________________________________ 505 Case study 11.1: Generation Me: implications for workplace conflict management_______________________________________________ 506 Case study 11.2: New online tool makes it easier for small businesses to find dispute resolution services_____________________ 507 PART 3 THE EFFECTIVENESS OF SHRM: TOWARDS THE FUTURE 509 Chapter 12 Evaluating SHRM: towards the future_________________________ 510 Introduction______________________________________________________________ 511 SHRM evaluation: theory and practice_________________________________________ 514 HRM accounting___________________________________________________________ 517 Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
WCN 02-200-202 CONTENTS xi Indicators of HRM performance______________________________________________ 518 HR program evaluation_____________________________________________________ 529 Corporate governance and corporate social responsibility________________________ 531 The future of work_________________________________________________________ 533 The future of SHRM________________________________________________________ 538 Summary________________________________________________________ 544 Key terms________________________________________________________ 544 Emerging issues___________________________________________________ 544 Ethical challenge: How chatbots could replace your HR department_________ 545 Case study 12.1: The carers__________________________________________ 546 Glossary_____________________________________________________ 549 Index_______________________________________________________ 560 Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 xii Guide to the text As you read this text you will find a number of features in every chapter to enhance your study of Human Resource Management (HRM) and help you understand how the theory is applied in the real world.
CHAPTER OPENING FEATURES 2 1 CHAPTER Evolution of strategic human Gain an insight into HRM with resource management industry quotes at the beginning of There is a global shift towards non-standard, flexible employment models, including agency work (which) is set to become a permanent feature of the modern workplace.