People Resourcing and Talent Planning

People Resourcing

and talent planning

Stephen pilbeam & Marjorie corbridge

fourth edition HRM in Practice

People Resourcing

and talent planning

Stephen pilbeam & Marjorie corbridge

fourth edition HRM in Practice

This engaging textbook offers a comprehensive examination of people resourcing and talent

planning in organisations, achieving a balance between academic rigour and practitioner relevance.

Thoroughly revised and updated, the fourth edition of People Resourcing and Talent Planning addresses

a broad range of HR issues and covers all the activities that are essential for acquiring, managing and

retaining talent – from HR planning through to release from employment. It describes and analyses

contemporary HR practice and puts it into context, covering the latest developments in people

resourcing and talent planning.

This balanced approach, together with the breadth and versatility of the content, enables the book to

be used effectively for CIPD modules and other upper-level HRM courses.

Substantially revised and updated to reflect the new CIPD HR Profession Map, this fourth edition

integrates contemporary issues in HRM, avoids prescriptive solutions and encourages critical evaluation.

Readable and clear, People Resourcing and Talent Planning uses examples and case studies to examine

how HR theory and concepts apply in practice.

This text meets the knowledge and understanding requirements for the CIPD’s Resourcing and

Talent Management module.

Front cover image: © Getty Images www.pearson-books.com

Stephen Pilbeam is a Principal Lecturer in HRM, and the Course Leader for the Masters in HRM, at the University of

Portsmouth Business School. Stephen is a Chartered Fellow of the CIPD and serves on the CIPD Quality Assurance

Panel. Prior to working at the university Stephen held senior HR positions in the private sector.

Marjorie Corbridge is a Principal Lecturer in HRM at the University of Portsmouth Business School. She is a

Chartered Member of the CIPD and has undertaken many consultancy projects. Prior to working at the university

Marjorie held senior HR positions in the public sector.

www.pearsoned.co.uk/pilbeam

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pilbeam &

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People Resourcing and Talent Planning

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People Resourcing and

Talent Planning

HRM in Practice

FOURTH EDITION

STEPHEN PILBEAM

AND

MARJORIE CORBRIDGE

..

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Pearson Education Limited

Edinburgh Gate

Harlow

Essex CM20 2JE

England

and Associated Companies throughout the world

Visit us on the World Wide Web at:

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First published 1998

Second edition 2002

Third edition 2006

Fourth edition published 2010

© Stephen Pilbeam and Marjorie Corbridge 2010

The rights of Stephen Pilbeam and Marjorie Corbridge to be identified

as authors of this work have been asserted by them in accordance with

the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted in any form or by any means, electronic, mechanical,

photocopying, recording or otherwise, without either the prior written permission of the

publisher or a licence permitting restricted copying in the United Kingdom issued by the

Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.

ISBN 978-0-273-71954-0

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Cataloging-in-Publication Data

A catalog record for this book is available from the Library of Congress

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Typeset in 9.5/12pt Sabon by 35

Printed and bound by Ashford Colour Press Ltd., Gosport

The publisher’s policy is to use paper manufactured from sustainable forests.

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List of Figures and Tables xi

List of Exhibits xiii

Preface to the Fourth Edition xvi

Acknowledgements xx

1 People Resourcing: the changing world of work and contemporary

human resource management 1

2 Human Resources Strategy: perspectives and theories 38

3 Competencies in People Resourcing 61

4 Human Resource Planning, Talent Planning and Worker Flexibility 90

5 HR Information Systems and e-enabled HR 132

6 Recruitment: attracting the right people 154

7 Selection: choosing the right people 185

8 Managing Diversity 226

9 Pay, Reward and Resourcing 253

10 Reward, Financial Benefits and Pensions 292

11 Managing and Appraising Performance 316

12 Human Resource Development 350

13 Managing Health and Safety at Work 387

14 The Strategic Management of Employee Well-being 414

15 Employment Relations in Context 447

16 Employment Relations Processes 473

17 Conflict Resolution: discipline and grievance 499

18 Termination of Employment 526

19 Managing Redundancy 564

Index 589

Brief Contents

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Contents

..

List of Figures and Tables xi

List of Exhibits xiii

Preface to the Fourth Edition xvi

Acknowledgements xx

1 People Resourcing: the changing world

of work and contemporary human resource

management 1

Introduction 2

A contingent approach 2

A critical perspective and no right HR

answers! 4

Changes in the world of work 5

Human resource management (HRM) 10

The changing role of the HR professional 14

HR strategy and people resourcing – the

fundamentals 22

Adding value through HR practices 23

e-HR, the three-legged model and the

outsourcing of HR activities 24

Case Study: Call centres in the financial

servicessector – just putting you on

hold . . . 26

Brave new world or more of the same? 29

2 Human Resources Strategy: perspectives

and theories 38

Introduction 39

Strategy: misconceptions, concepts and

typologies 39

Strategy, business performance and human

resources management 41

Best-practice models 43

Best-fit models 48

The resource-based model 51

Case Study: Polygon University – the

challenges of developing a human

resources strategy 54

Developing an emergent human resource

strategy 54

3 Competencies in People Resourcing 61

Introduction 62

Definitions and concepts 62

The competency movement 64

Who uses competency frameworks? 68

Why do employers use competency

frameworks? 69

How to construct a competency framework 71

Techniques for constructing competency

frameworks 75

Assessing competencies 76

Using competencies 78

Activity: The competency framework of a

large housing association 84

The pros and cons of competency

management 84

4 Human Resource Planning, Talent

Planning and Worker Flexibility 90

Introduction 91

Human resource planning 91

The process of human resource planning 92

Developments in human resource planning 99

Talent planning and talent management 101

Employee retention 107

Flexibility at work 111

Patterns of work 118

Case Study: Introducing flexible working

at Safelife Insurance Limited 125

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viii CONTENTS

5 HR Information Systems and

e-enabled HR 132

Introduction 133

Information needs 133

HR information and business partnering 135

e-HR and the transformation of HR services 135

Managerial decision-making and the HRIS 138

The benefits of an HRIS 141

Case Study: Young People’s Fashion PLC

and HRIS 145

Security of personal data 147

Data protection – rights, access and security 147

Employee Internet and email policies 151

6 Recruitment: attracting the right people 154

Introduction 155

Contingency in recruitment and selection

methods 155

Recruitment, selection and the systems

approach 156

Recruitment and selection sub-systems 157

Pre-recruitment 159

Recruitment methods – attracting applications 164

Case Study: A-B-Zee: Human resource planning

and recruitment for new superstores 175

Recruitment methods – analysis and trends 178

Responding to enquiries and the

candidate’s view 179

Criminal certificates – Police Act 1997 180

UK immigration system and the UK Border

Agency 181

7 Selection: choosing the right people 185

Introduction 186

Subjectivity, discrimination, professionalism

and ethics 186

Elimination and reduction 187

Validity, reliability and popularity of

selection methods 188

Selection methods 191

Case Study: Recruitment and selection of

graduate trainees 208

Selection trends 210

Successful transition through pre-engagement

and induction 213

The contract of employment and the written

particulars of employment 215

Exit interviews – the initial stage of the

recruitment and selection process? 216

8 Managing Diversity 226

The managing diversity concept 227

UK discrimination and equality legislation 231

Case Study: Review of age discrimination

at Family Fitness 234

The Equality Bill 2009 235

Equal pay 240

Case Study: Equal pay review at Greenacres

College of Further Education 245

Work–life balance 247

9 Pay, Reward and Resourcing 253

Introduction 254

Reward 254

New pay and old pay 254

Pay determination 256

Reward strategy 257

Total reward philosophy 260

Pay strategies 263

Graded pay and job evaluation 264

Market-related pay 269

Performance-related pay 273

Competence-based pay 284

Profit sharing 284

Case Study: Reward systems at City in the

Woods City Council 285

10 Reward, Financial Benefits and Pensions 292

Introduction 293

Employee financial benefits 293

Flexible benefits 295

Pensions 299

Case Study: Pensions change at Goodwins 307

Contemporary trends in reward 310

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CONTENTS ix

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11 Managing and Appraising Performance 316

Introduction 317

Performance management and corporate

strategy 317

The performance management process 319

Case Study: Objective setting and appraisal 324

The balanced scorecard and performance

management 327

Managing underperformance 329

Managing employee absence 331

The management of sick absence 333

Case Study: Managing absence and

attendance: comparative strategies 342

12 Human Resource Development 350

Introduction 351

Human resource development 351

The systematic approach to training and

learning 352

Case Study: LSC Clothing: four stages of

the training cycle 360

Strategic HRD 361

Case Study: SPS Research: HRD strategy of

‘build not buy’ 367

Management development 367

Knowledge management and human capital

management 370

Skills and human capital development:

a national perspective 374

13 Managing Health and Safety at Work 387

Introduction 388

Health and safety at work and the

performance imperative 388

From prescription to responsibility –

statutory regulation to self-regulation 390

Reconciling the tensions 391

Common law duties of care 391

The Health and Safety at Work Act

(HASAWA) 1974 391

A practical guide to the Health and Safety

Regulations 1992 (consolidated in ERA

1996 and Amendment Regulations 1999

and 2003) 396

The Health and Safety (Offences) Act 2008

and the Corporate Manslaughter and

Corporate Homicide Act 2008 404

Protection against dismissal – health and

safety duties and concerns 404

Special groups – young people and pregnant

women 405

The Working Time Directive 1993 405

Case Study: Health and safety in Cobras

department store 406

Creating an active health and safety

culture 407

Health and safety – principle and reality 409

A framework for analysis 409

14 The Strategic Management of

Employee Well-being 414

Introduction 415

A strategy for employee well-being 415

Stress and distress 418

Case Study: Stress management policy

and responsibilities at Goodwins

department stores 426

Case Study: United Biscuits and the stress

management standards 429

Harassment and bullying at work 430

Alcohol and drug misuse 434

Violence at work 438

Case Study: Central Bar: workplace violence 442

15 Employment Relations in Context 447

Introduction 448

Employment relations and people

resourcing 448

The changing nature of employment 449

The role of the state 450

Case Study: Union recognition at Key

Bits Ltd 457

European social policy 461

Management strategies and employment

relations 463

Trade unions 465

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x CONTENTS

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16 Employment Relations Processes 473

Introduction 474

Employment relations policies and people

resourcing 474

Collective bargaining structure 475

Trends in collective bargaining 476

Individual bargaining 482

Conciliation, mediation and arbitration 483

The non-union organisation 485

Employee involvement, commitment and

high performance work 486

The negotiation process 490

Case Study: Preparing for negotiations at

Sell-It-All 494

17 Conflict Resolution: discipline and

grievance 499

Introduction 500

Individual conflict-resolving mechanisms 500

The nature of discipline at work 500

Organisational rules 502

Disciplinary procedures 503

Case Study: Discipline at work – Jobs for

the Toys Limited 516

Grievances – employee concern resolution 517

Mediation as an alternative to tribunal

proceedings 522

18 Termination of Employment 526

Introduction 527

Introduction to dismissal 527

The origins and aims of unfair dismissal

legislation 527

Types of dismissal 528

Dismissal defined 529

Employee qualification for unfair dismissal

protection 530

Inadmissible reasons for dismissal 531

Fair reasons for dismissal 533

Reasonableness 534

Five fair reasons explored 536

Case Study: Christmas spirit and the

amorous kitchen porter 543

Constructive dismissal 551

Case Study: Wacker Payne and the Royal

Naval Reserve training weekend 552

Employment tribunals 554

Case Study: Ellie and the Oasis concert 558

19 Managing Redundancy 564

Introduction 565

Definition of redundancy 565

Causes of redundancy 566

The avoidance of redundancy 567

Redundancy drivers 569

Redundancy and the law 570

Consultation with employees 570

Redundancy payments 572

Selection for redundancy 573

Other statutory rights 577

The effective management of

redundancy 577

Rebalancing the organisation after

redundancy 582

Case Study: Coping with redundancy

(if you stay) 585

Index 589

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FIGURE 1.1 An integrated approach to people resourcing 4

FIGURE 1.2 A continuum of personnel management activity 11

FIGURE 1.3 Three-legged model 25

FIGURE 2.1 Corporate and HR strategy: an illustration of an integrated

approach 56

FIGURE 3.1 Using competencies in HRM 79

FIGURE 4.1 The process of human resource planning 92

FIGURE 4.2 The pros and cons of exclusive and inclusive approaches to

talent management 103

FIGURE 4.3 Linking corporate and talent management strategies 104

FIGURE 4.4 Overlapping forms of flexibility 112

FIGURE 4.5 The flexible firm 115

FIGURE 5.1 Data to information and the decision-making levels 139

FIGURE 6.1 The systems approach to recruitment and selection 157

FIGURE 6.2 Pre-recruitment activity 159

FIGURE 7.1 Validating the selection process and decision 190

FIGURE 8.1 A step-by-step guide to equal pay 246

FIGURE 9.1 Reward strategy – vertically integrated, deterministic and

unitarist 258

FIGURE 9.2 Total reward dimensions 260

FIGURE 9.3 Multiple employer pay objectives lead to the hybridisation of

pay strategies 263

FIGURE 9.4 Graded pay structure 264

FIGURE 9.5 Example of a paired comparison score chart 268

FIGURE 9.6 Factors contributing to the emergence of PRP 278

FIGURE 10.1 Internal and external shapers of reward trends 310

FIGURE 10.2 Towards a more sophisticated and complex reward strategy

integrated horizontally with HR policies and vertically with

corporate strategy 312

FIGURE 11.1 The performance management process 318

FIGURE 11.2 The balanced scorecard: four perspectives 328

FIGURE 11.3 A systematic diagnosis of under-performance 330

FIGURE 11.4 A systems approach to managing sick absence 336

FIGURE 12.1 The systematic training model 352

FIGURE 12.2 Learning strategy decisions 356

FIGURE 12.3 The experiential learning model 357

FIGURE 12.4 From training to strategic HRD: a developmental model 362

FIGURE 12.5 Different approaches to management development 369

FIGURE 12.6 Requirements for successful strategic management development 370

List of Figures

and Tables

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xii LIST OF FIGURES AND TABLES

FIGURE 12.7 The DIKW hierarchy 372

FIGURE 13.1 The 1992 Regulations (consolidated in ERA 1996):

a European standard located in a UK health and safety

philosophy 397

FIGURE 13.2 Health and safety at work: a framework for analysis 410

FIGURE 14.1 A multi-dimensional perspective of employee well-being 417

FIGURE 14.2 A framework for analysing stress at work 420

FIGURE 14.3 Eustress and distress 421

FIGURE 14.4 Diagnosis precedes targeted SMIs 427

FIGURE 15.1 The management style matrix 464

FIGURE 16.1 Negotiating objectives: conditions for a settlement 492

FIGURE 17.1 Mutual adjustment in the contract facilitated by disciplinary

and grievance procedures 501

FIGURE 17.2 Sources of organisational rules 503

FIGURE 17.3 The principal incremental stages of a disciplinary procedure 511

FIGURE 18.1 Reasonableness in the circumstances 534

FIGURE 18.2 Incapability or substandard work: incompetency typology 544

FIGURE 19.1 The redundancy system 578

FIGURE 19.2 Redundancy survival: potential repercussions 583

TABLE 9.1 Believing particular effects of PRP (rounded percentages) 281

TABLE 9.2 Grades, scale points and salaries for City in the Woods City

Council 286

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EXHIBIT 1.1 Changes in the world of work: a summary 10

EXHIBIT 1.2 HR behaviours 17

EXHIBIT 1.3 Workforce scorecard metrics for business-focused HR

performance reporting 19

EXHIBIT 1.4 HRM in the twenty-first century? 31

EXHIBIT 2.1 Best practice, best fit and RBV of the firm – a summary 42

EXHIBIT 3.1 Boyatzis’ competency model 66

EXHIBIT 3.2 Individual competencies 72

EXHIBIT 3.3 The competency framework of a large housing association 73

EXHIBIT 3.4 Achievement approach competency by level 75

EXHIBIT 3.5 Senior Civil Service Competency Framework – leadership

for results 77

EXHIBIT 3.6 Employers’ use of competencies 80

EXHIBIT 4.1 Talent management in Cargill 105

EXHIBIT 4.2 Changing patterns of work 118

EXHIBIT 4.3 Fenland District Council: a joined-up approach to flexibility 124

EXHIBIT 5.1 The impact of e-HR 137

EXHIBIT 5.2 Strategic decision-making 139

EXHIBIT 5.3 Functional/tactical decision-making 140

EXHIBIT 5.4 Operational decision-making 140

EXHIBIT 6.1 The recruitment and selection sub-systems 158

EXHIBIT 6.2 Template headings for a job description 160

EXHIBIT 6.3 A six-factor formula for a person specification 161

EXHIBIT 6.4 Recruitment methods 165

EXHIBIT 6.5 Recruitment advertising – professional guidance 166

EXHIBIT 6.6 e-recruitment at Xerox and Nike 169

EXHIBIT 6.7 Percentage of organisations using different recruitment

methods (sample = approx. 750) 179

EXHIBIT 6.8 The recruitment pack 180

EXHIBIT 7.1 Employer ethics in recruitment and selection 187

EXHIBIT 7.2 Shortlisting and the six-factor formula 188

EXHIBIT 7.3 Predictive validity of selection methods: a summary of

correlations 189

EXHIBIT 7.4 Extended application form statements for behavioural

competencies 193

EXHIBIT 7.5 Selection interviewing skills 196

EXHIBIT 7.6 Verbal reasoning – test question examples 199

EXHIBIT 7.7 Examples of personality assessment 203

EXHIBIT 7.8 Ethics and assessment centres 207

List of Exhibits

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xiv LIST OF EXHIBITS

EXHIBIT 7.9 Online testing at Toyota Manufacturing UK 212

EXHIBIT 7.10 Popularity of selection methods (percentage of surveyed

organisations: CIPD, 2009b) 213

EXHIBIT 7.11 The written particulars of employment required by law 216

EXHIBIT 7.12 Example of an exit interview pro-forma 219

EXHIBIT 8.1 Diversity statements 228

EXHIBIT 8.2 Managing diversity in practice 231

EXHIBIT 8.3 Age discrimination is expensive 233

EXHIBIT 8.4 Explanation and examples of indirect discrimination 238

EXHIBIT 8.5 Gender pay gaps, 2008: mean average of hourly pay (ONS) 242

EXHIBIT 8.6 Gross lifetime earnings 242

EXHIBIT 9.1 Total reward and talent management at Yahoo! 262

EXHIBIT 9.2 Job evaluation through the points rating of job factors – an

illustration of a typical public sector approach 270

EXHIBIT 9.3 Market rate survey: organisational job profile (internal) 272

EXHIBIT 9.4 Outline survey form for collecting market rate data (external) 272

EXHIBIT 9.5 Performance descriptions and PRP: an illustration of

performance descriptions used by a blue chip company

in the IT sector for determining PRP 275

EXHIBIT 9.6 Expectancy theory of motivation 276

EXHIBIT 9.7 Conflicts and ambiguities in PRP 281

EXHIBIT 9.8 Illustration of PRP decision-making process in the

professional services sector 283

EXHIBIT 10.1 Illustration of a flexible benefits menu – which would you

choose? 296

EXHIBIT 10.2 Flexible benefits at EON, BAE and Scottish Widows 297

EXHIBIT 10.3 Illustration of a flexible benefits approach 299

EXHIBIT 10.4 The death knell of final salary (defined benefit) pension

schemes? 304

EXHIBIT 10.5 Comparison of final salary and money purchase pension

schemes 305

EXHIBIT 10.6 Emerging and declining reward trends 311

EXHIBIT 11.1 Examples of individual objectives 321

EXHIBIT 11.2 A balanced scorecard used in HR in an NHS Trust 329

EXHIBIT 11.3 Being unwell, on a scale of 10, versus being unfit for work 335

EXHIBIT 11.4 Absence management: costing sick absence 339

EXHIBIT 11.5 Bradford Index 340

EXHIBIT 11.6 The sick absence encounter between manager and employee 344

EXHIBIT 12.1 Key activities in HRD 351

EXHIBIT 12.2 Learning needs analysis: examples of sources of information 353

EXHIBIT 12.3 Roles and responsibilities in learning needs analysis 354

EXHIBIT 12.4 Percentage of survey respondents using different learning

and training methods 356

EXHIBIT 12.5 Different evaluation questions 358

EXHIBIT 12.6 Levels and evaluation 359

EXHIBIT 12.7 Staged approach to HRD strategy formulation 364

EXHIBIT 12.8 Characteristics for HRD strategy evaluation 365

EXHIBIT 12.9 Stakeholders in strategic HRD 366

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