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PRAISE FOR ARMSTRONG’S HANDBOOK
OF HUMAN RESOURCE MANAGEMENT
PRACTICE

Armstrong and Taylor’s text provides comprehensive and user-friendly

coverage of key concepts and models of HRM, HRM processes and
applications together with related delivery strategies. This edition
extends and updates earlier versions, and is testimony to its enduring
relevance and appeal.
John Simmons, Lecturer, University of Liverpool Management School
(about a previous edition)

There is a reason why Michael Armstrong’s HR books represent a gold

standard: they are both thorough and academically rigorous but
benefit from real-world experience and an informed perspective on
practice.
Robert Jeffrey, Editor-in-Chief, People Management (about a previous
edition)

Armstrong’s authoritative handbook continues to be a paragon of HR

texts. The new edition of this indubitably vital HR resource for
students, tutors and practitioners alike, follows a tried and trusted,
coherent format.
Lezlee-Jayne Stones, Associate Professor, Academic Lead,
Workforce Planning and Resources, University of Lincoln (about a
previous edition)
This comprehensive book is a major resource and gives the reader
both an in-depth and detailed view of all major assignments that the
HR Manager will encounter in the work setting. It is also a valuable
asset for the student of HR Management.
Thordur S Oskarsson PhD, retired Adjunct Professor, School of
Business, University of Iceland (about a previous edition)

A detailed, yet accessible text suitable for all levels. This latest edition
further establishes its position as the ‘go to’ text for HR students,
academics and practitioners alike. I highly recommend it.
Dr Edward O’Connor, Assistant Professor, Maynooth University,
School of Business (about a previous edition)

Michael Armstrong could well be offering the definitive text in the

field… an excellent book.
The Times Higher Education Supplement (about a previous edition)

Topical, comprehensive, well-informed and student-friendly.

Dr Izabela Robinson, Associate Lecturer, Northampton Business
School (about a previous edition)

The gold standard when it comes to HRM texts.

Connie Nolan, former Senior Lecturer, Canterbury Christ Church
University (about a previous edition)

If any book is a contender for one of the standard references of the HR

profession, this is it… it covers just about everything that might be
considered broadly relevant to practising HR.
Personnel Today (about a previous edition)

Armstrong’s approach to HRM is sufficiently academic but tempered

with good practice and common sense.
Dr Janet Astley, Senior Lecturer, York St John Business School (about
a previous edition)

This book [is] a must-read for everyone who has a strong interest in
the management of human resources.
Niki Kyriakidou, Leeds Business School, on behalf of the International
Journal of Training and Development (about a previous edition)
ALSO AVAILABLE BY MICHAEL
ARMSTRONG

Armstrong on Reinventing Performance Management

Armstrong’s Essential Human Resource Management Practice
Armstrong’s Handbook of Learning and Development
Armstrong’s Handbook of Management and Leadership for HR
Armstrong’s Handbook of Performance Management
Armstrong’s Handbook of Reward Management Practice (with
Duncan Brown)
Armstrong’s Handbook of Strategic Human Resource
Management
Armstrong’s Job Evaluation Handbook
Evidence-Based Reward Management (with Duncan Brown and
Peter Reilly)
How to Be an Even Better Manager
How to Manage People
Human Capital Management (with Angela Baron)
The Reward Management Toolkit (with Ann Cummins)
ARMSTRONG’S HANDBOOK OF
HUMAN RESOURCE
MANAGEMENT PRACTICE
A guide to the theory and practice of
people management

16TH EDITION

MICHAEL ARMSTRONG WITH

STEPHEN TAYLOR
CONTENTS IN BRIEF

List of figures
List of tables
Preface

PART I Fundamentals of human resource management

01 The essence of HRM
02 Human capital management
03 The context of HRM
04 The future of work
05 HRM and organizational performance
06 The ethical dimension of HRM
07 Corporate social responsibility
PART II The strategic approach to HRM
08 Strategic HRM
09 HR strategy
PART III Delivering HR
10 The role of HR
11 The HRM role of line managers
PART IV Human resource management processes
12 Evidence-based HRM
13 HR analytics
14 Digital HRM
15 Knowledge management
16 Competency-based HRM
PART V Organization
17 Organizational behaviour
18 Organization design
19 Work design
20 Job design
21 Organization development
PART VI
Factors affecting the behaviour of people at work
22 Motivation
23 Commitment
24 Employee engagement
PART VII People resourcing
25 Resourcing strategy
26 Workforce planning
27 Recruitment and selection
28 Talent management
PART VIII Employment practices
29 The employee experience
30 Managing employment
31 Managing diversity and inclusion
32 Managing flexibility
33 Managing home and hybrid working
PART IX Learning and development
34 The basis of learning and development
35 Strategic learning and development
36 Organizational learning and the learning
organization
37 Individual learning
38 The process of learning and development
39 The practice of learning and development
40 Leadership and management development
PART X Performance management
41 The basis of performance management
42 Performance management systems
43 Performance leadership
PART XI Reward management
44 The basis of reward management
45 Reward strategy
46 The practice of reward management
47 Managing reward for special groups
48 Reducing the gender pay gap
PART XII Employment relations
49 The basis of employment relations
50 Employment relations strategy
51 The employment relationship
52 The psychological contract
53 The practice of industrial relations
54 Employee voice
55 Employee communications
PART XIII Employee wellbeing
56 Principles and practice of employee wellbeing
57 Health and safety
PART XIV HR practices
58 HR policies
59 HR procedures
60 Dealing with the legal aspects of employment
PART XV International HRM
61 The basis of international HRM
62 The practice of international HRM
63 Managing expatriates
PART XVI
People management skills and competencies
64 Strategic people management skills
65 Business skills
66 Dealing with business issues from an HR
perspective
67 Problem-solving and decision-making skills
68 Analytical and critical skills
69 Research skills
70 Statistical skills
71 Selection interviewing skills
72 Job, role and skills analysis and competency
modelling
73 Learning and development skills
74 Negotiating skills
75 Change management
76 Influencing skills
77 Leadership
78 Handling people problems
79 Handling challenging conversations
80 Managing conflict
81 Political skills
82 Project management
PART XVII Conclusion
83 Trends in HRM
CIPD Profession Map: Cross-references to text
Author index
Subject index
CONTENTS

List of figures
List of tables
Preface

PART I Fundamentals of human resource management

01 The essence of HRM
Introduction
The practice of HRM
The HR architecture
The HR system
The philosophy of people management
People practices
References
02 Human capital management
Introduction
Human capital management defined
The concept of human capital
The constituents of human capital
Measuring human capital
Approaches to HRM raised by human capital
theory
HCM and investment decisions
References
03 The context of HRM
Introduction
Environmental factors
The labour market
References
04 The future of work
Introduction
The nature of work
Theories explaining the meaning of work
What is happening to work?
The factors affecting work
What is happening to work now?
What is going to happen to work?
References
05 HRM and organizational performance
Introduction
Measuring organizational performance
The impact of HR
How HRM makes an impact
The development of high-performance
working
High-performance work systems
References
06 The ethical dimension of HRM
Introduction
 The meaning and concerns of ethics
The nature of ethical decisions and
judgements
Fairness
Equity theory
Justice
HRM ethical guidelines
Ethical dilemmas
The ethical role of HR
References
07 Corporate social responsibility
Introduction
Corporate social responsibility defined
Strategic CSR defined
CSR activities
The rationale for CSR
The opposing view
Social responsibility investment criteria
Benefits of CSR
The basis for developing a CSR strategy
The role of HR
References
PART II The strategic approach to HRM
08 Strategic HRM
Introduction
 The nature of strategic human resource
management
The resource-based view of SHRM
Strategic fit
Critical evaluation of the concept of SHRM
References
09 HR strategy
Introduction
The nature of HR strategy
Approaches to HR strategy
Developing HR strategy
Implementing HR strategy
References
PART III Delivering HR
10 The role of HR
Introduction
The HR function
The role of the HR professional
References
11 The HRM role of line managers
Introduction
The people management role of line
managers
How well does devolution to line managers of
HR responsibilities work?
 Factors affecting the quality of the
implementation of HRM by line managers
Dealing with the factors
References
PART IV Human resource management processes
12 Evidence-based HRM
Introduction
Evidence-based HRM defined
Evidence-based management
The approach to evidence-based HRM
References
13 HR analytics
Introduction
HR analytics defined
The purpose of HR analytics
The content of HR analytics
The process of HR analytics
Types of HR analytics
Keeping people informed
References
14 Digital HRM
Introduction
Digital HRM defined
The purpose of digital HRM
The uses of digital HRM
 Digital transformation
Human resource information system (HRIS)
Cloud computing
Artificial intelligence
Managing digital HRM
References
15 Knowledge management
Introduction
Knowledge management defined
The meaning of knowledge
Approaches to knowledge management
Knowledge management issues
Implementing knowledge management
References
16 Competency-based HRM
Introduction
Competency defined
Knowledge, skills and abilities (KSAs)
Competency frameworks
Developing a competency framework
Approaches to using competencies
Applications of competency-based HRM
Keys to success in using competencies
References
PART V Organization
17 Organizational behaviour
Introduction
Organizational behaviour defined
The sources and applications of
organizational behaviour theory
How organizations function
Organizational culture
Organizational climate
Organizational processes
Characteristics of people
Implications for HR specialists
References
18 Organization design
Introduction
Organization design theories
Organization design guidelines
Organizational choice
The approach to organization design
Successful organization design
References
19 Work design
Introduction
Work design – a short history
Work system design
Approaches to work design
The role of HR in work design
 References
20 Job design
Introduction
Job quality
What is a good job?
The practice of job design
Principles of job design
Approaches to job design
Responsibility for job design
Job crafting
References
21 Organization development
Introduction
Organization development defined
The nature of organization development
The story of organization development
Organization development strategy
Organization development programmes
Organizational diagnosis
Conclusions on organization development
References
PART VI
Factors affecting the behaviour of people at work
22 Motivation
Introduction
 The meaning of motivation
Reinforcement theory
Content theory
Process theory
Intrinsic and extrinsic motivation
Motivation and job satisfaction
Motivation and financial incentives
Conclusions on motivation theory
Motivation strategies
References
23 Commitment
Introduction
The meaning of organizational commitment
Mutuality and commitment
Commitment and performance
The mutual gains perspective
Commitment and engagement
Factors affecting commitment
Critical evaluation of the concept of
commitment
Developing a commitment strategy
References
24 Employee engagement
Introduction
The meaning of employee engagement
The theory of engagement
 The components of employee engagement
Drivers of employee engagement
Outcomes of engagement
Engagement strategy
Enhancing job engagement
Enhancing organizational engagement
Burnout
Measuring engagement
Critical evaluation of the concept of employee
engagement
References
PART VII People resourcing
25 Resourcing strategy
Introduction
Strategic resourcing
The nature of resourcing strategies
Reference
26 Workforce planning
Introduction
Workforce planning defined
The link between workforce and
business/corporate planning
Incidence of workforce planning
Workforce planning issues
Systematic workforce planning
Approach to workforce planning
 References
27 Recruitment and selection
Introduction
The recruitment and selection process
Defining requirements
Attracting candidates
Sourcing candidates
Screening applications
Selection methods
Selection interviews
Selection testing
Assessment centres
Making the decision
Provisional offers and obtaining references
Offering employment
Following up
Dealing with recruitment problems
References
28 Talent management
Introduction
Talent management defined
Talent management policy
Talent management strategy
The process of talent management
The talent pool
Talent planning
 Resourcing
Identifying talent
Talent development
References
PART VIII Employment practices
29 The employee experience
Introduction
The concept of the employee experience
References
30 Managing employment
Introduction
Introduction to the organization
Managing employee retention
Employee turnover
Redundancy
Fire and rehire
Dismissal
Absence management
Presenteeism
References
31 Managing diversity and inclusion
Introduction
The meaning and significance of managing
diversity and inclusion
 The rationale for managing diversity and
inclusion
How to manage diversity and inclusion
References
32 Managing flexibility
Introduction
Forms of flexibility
Flexible working
Zero-hours contracts
The role of HR
References
33 Managing home and hybrid working
Introduction
Incidence of home and hybrid working
Working from home: general considerations
Employers
Line managers
Individual employees
Managing home and hybrid working
processes
References
PART IX Learning and development
34 The basis of learning and development
Introduction
Learning and development defined
 The basis of learning
The elements of learning and development
Formal and informal learning
Connected learning
The components of learning and development
Relationships between L&D and other people
management activities
The ethical dimension
The state of L&D
References
35 Strategic learning and development
Introduction
Strategic learning and development
Learning and development strategies
Formulating and implementing L&D
strategies
Reference
36 Organizational learning and the learning
organization
Introduction
Organizational learning
The learning organization
Comparison of the organizational learning
and learning organization concepts
References
37 Individual learning
 Introduction
The characteristics of individual learning
How people learn
The 70:20:10 model
Self-directed learning
Learning to learn
Personal development planning
Continuing professional development
References
38 The process of learning and development
Introduction
Identify learning needs
Planning learning and development
Implement
Evaluate learning
References
39 The practice of learning and development
Introduction
Workplace learning
Social learning
Digital learning
Training
Apprenticeships
References
40 Leadership and management development
Introduction
 Leadership and management development
defined
The nature of leadership and management
Leadership development
Management development
Criteria for leadership and management
development
References
PART X Performance management
41 The basis of performance management
Introduction
Performance management defined
The purpose and aims of performance
management
The nature of performance management
The impact of performance management
Performance management – the ethical
dimension
Factors affecting the approach to managing
performance
Choice of approach to managing performance
How managers can manage performance
References
42 Performance management systems
Introduction
 Features of a performance management
system
Performance and development planning
Monitoring
Reviewing
360-degree feedback
The reality of performance management
Performance management issues
References
43 Performance leadership
Introduction
What ‘engaging managers’ do
The concept of performance leadership
Performance leadership skills
Performance conversations
Conclusion
References
PART XI Reward management
44 The basis of reward management
Introduction
Reward management defined
The reward system
Aims of reward management
Reward drivers
Values and beliefs
Reward policy
 Financial rewards
Non-financial rewards
Total reward
References
45 Reward strategy
Introduction
The content of reward strategy
Formulating reward strategy
Critical evaluation of the concept of reward
strategy
References
46 The practice of reward management
Introduction
Market pricing
Job evaluation
Base pay management
Contingent pay
Recognition schemes
Employee benefits
Administering reward management
References
47 Managing reward for special groups
Introduction
Executive remuneration
Reward management for sales and customer
service staff
 Paying manual workers
References
48 Reducing the gender pay gap
Introduction
Reasons for the gender pay gap
Actions to reduce gender pay gaps
Narrowing the gap at organizational level
References
PART XII Employment relations
49 The basis of employment relations
Introduction
The meaning of employment relations
Approaches to employment relations
Management style in employment relations
Employment relations policies
References
50 Employment relations strategy
Introduction
The nature of employment relations strategy
Strategy for creating a constructive and
positive employment relations climate
Strategy for achieving mutual gains
Partnership agreement strategy
Strategy for building trust
Employee voice strategy
 Trade union recognition strategy
References
51 The employment relationship
Introduction
The nature of the employment relationship
The basis of the employment relationship
Labour process theory and the employment
relationship
Employment relationship contracts
Managing the employment relationship
Developing a climate of trust
References
52 The psychological contract
Introduction
The psychological contract defined
The significance of the psychological contract
The psychological contract and the
employment relationship
How psychological contracts develop
The problem with psychological contracts
Developing and maintaining a positive
psychological contract
References
53 The practice of industrial relations
Introduction
Trade union membership
 Union recognition
Collective bargaining
Collective agreements
Dispute resolution
Informal employee relations processes
References
54 Employee voice
Introduction
The need for employee voice
Degrees of employee voice
Direct voice
Indirect voice
Employees’ experience of voice
References
55 Employee communications
Introduction
The importance of communications
What should be communicated
Approach to communications
Communication channels
Employee communication strategy
References
PART XIII Employee wellbeing
56 Principles and practice of employee wellbeing
Introduction
 The basis of wellbeing
The case for caring about wellbeing
Factors affecting wellbeing
Employee wellbeing strategy
References
57 Health and safety
Introduction
Managing health and safety at work
Health and safety policies
Conducting risk assessments
Health and safety audits
Health and safety inspections
Accident prevention
Occupational health programmes
Managing stress
Measuring health and safety performance
Communicating the need for better health
and safety practices
Health and safety training
Organizing health and safety
References
PART XIV HR practices
58 HR policies
Introduction
Why have HR policies?
Overall HR policy
 Specific HR policies
Developing HR policies
Implementing HR policies
59 HR procedures
Introduction
Capability procedure
Disciplinary procedure
Grievance procedure
Redundancy procedure
60 Dealing with the legal aspects of employment
Introduction
Employment law provisions
How is employment law enforced?
HRM and employment law
Dealing with Employment Tribunal claims
and cases
References
PART XV International HRM
61 The basis of international HRM
Introduction
The international scene
International HRM strategies
Contextual factors
Convergence and divergence
References
62 The practice of international HRM
Introduction
HR in international subsidiaries
Differences between international and
domestic HRM
Workforce planning
Resourcing
International talent management
International performance management
International reward management
Multicultural working
Role of the international HR function
References
63 Managing expatriates
Introduction
Why use expatriates?
The process of managing expatriates
Resourcing policies
Recruitment and selection policies
Preparation policy
Assimilation and support
Career management
Performance management
Re-entry policies
Pay and allowances policies
References
PART XVI
People management skills and competencies
64 Strategic people management skills
Introduction
The strategic role of the HR professional
The strategic business partner model
The strategic skills required
Reference
65 Business skills
Introduction
Business skills
Financial skills
Business models
Business model innovation
References
66 Dealing with business issues from an HR
perspective
Introduction
Identify business issues
Establish people factors
Critically analyse relevant HR policy and
practice
Conduct or participate in research
Analyse quantitative and qualitative
information
Draw conclusions
 Prepare and make the business case
Reference
67 Problem-solving and decision-making skills
Introduction
Problem solving
Decision making
References
68 Analytical and critical skills
Introduction
Analytical skills
Diagnostic skills
Logical reasoning
Critical thinking
Critical evaluation
Developing and justifying arguments
A final word
References
69 Research skills
Introduction
The nature of research
Planning and conducting research
programmes
Research methodology
Methods of collecting data
Processes involved in research
References
70 Statistical skills
Introduction
Frequency
Measures of central tendency
Measures of dispersion
Correlation
Regression
Causality
Tests of significance
Testing hypotheses
References
71 Selection interviewing skills
Introduction
Preparing for the interview
Conducting a selection interview
Types of interviews
Selection interview questions
Common interviewing mistakes
Coming to a conclusion
References
72 Job, role and skills analysis and competency
modelling
Introduction
Definitions
Job analysis
Job descriptions
 Role analysis and role profiles
Skills analysis
Competency modelling
References
73 Learning and development skills
Introduction
Coaching
Mentoring
Facilitating
Job instruction
References
74 Negotiating skills
Introduction
The process of negotiation
Stages of negotiation
Negotiating and bargaining skills
Reference
75 Change management
Introduction
Change
The process of change management
The responsibility for change
Guidelines for change management
References
76 Influencing skills
 Introduction
Persuading people
Case presentation
Making a business case
Facilitating
Coordinating discussions
77 Leadership
Introduction
The meaning of leadership
Leadership theories
What leaders do
Leadership styles
Types of leaders
The qualities of a good leader
Effective leadership
References
78 Handling people problems
Introduction
Approach
Disciplinary issues
Absenteeism
Handling poor timekeeping
Handling negative behaviour
Dealing with under-performance
79 Handling challenging conversations
80 Managing conflict
Introduction
Handling inter-group conflict
Handling interpersonal conflict
Resolving conflict between team members
Reference
81 Political skills
Introduction
Typical political approaches
Using political means to get things done
Political sensitivity
Dangers of politics
Dealing with organizational politics
Reference
82 Project management
Introduction
Project planning
Setting up the project
Controlling the project
PART XVII Conclusion
83 Trends in HRM
Introduction
Overall trends
Specific trends
References
CIPD profession map: Cross-references to text
Author index
Subject index
LIST OF FIGURES

FIGURE 0.1 Handbook route map

FIGURE 1.1 An HR system
FIGURE 2.1 Human capital evaluation – Civil Aviation Authority
FIGURE 5.1 The black box phenomenon
FIGURE 5.2 Impact of HRM on organizational performance
FIGURE 5.3 The AMO model as a framework for performance-
enhancing HRM practices
FIGURE 9.1 The different strategy domains
FIGURE 9.2 The Five Strategic Pillars at MHCLG
FIGURE 9.3 HR effectiveness checklist
FIGURE 9.4 Stakeholder analysis matrix
FIGURE 9.5 The Selfridge stakeholder value model
FIGURE 12.1 Interrelationships between the components of
evidence-based management
FIGURE 17.1 Sources and applications of organization
behaviour theory
FIGURE 20.1 Model of job quality
FIGURE 22.1 The process of motivation according to content
theory
FIGURE 22.2 Motivation model (Porter and Lawler)
FIGURE 24.1 IES model of employee engagement
FIGURE 24.2 How reward policies influence performance
through engagement
FIGURE 26.1 Workforce planning flow chart
FIGURE 27.1 Example of a person specification
FIGURE 27.2 Example of an application form
FIGURE 27.3 Use of different types of selection methods
FIGURE 27.4 A normal curve
FIGURE 28.1 The process of talent management
FIGURE 28.2 A nine-point performance/potential assessment
grid
FIGURE 28.3 The CEMEX model of talent management
FIGURE 30.1 A survival curve
FIGURE 33.1 Guidelines for managing home and hybrid workers
FIGURE 34.1 Formal and informal learning
FIGURE 34.2 The components of learning and development
FIGURE 36.1 Single- and double-loop learning
FIGURE 37.1 The Kolb learning cycle
FIGURE 38.1 Learning needs analysis – areas and methods
FIGURE 38.2 The learning gap
FIGURE 38.3 A learning specification
FIGURE 39.1 Systematic training model
FIGURE 41.1 Lloyds Banking Group: Definition of the purpose of
the performance management system
FIGURE 42.1 The performance management cycle
FIGURE 42.2 Model of the performance management system in
Astra-Zeneca
FIGURE 42.3 Model of the performance management system in
Halifax Bank
FIGURE 42.4 Model of the performance management system in
Pfizer Inc
FIGURE 42.5 Performance management form (part 1)
FIGURE 42.6 Performance management form (part 2)
FIGURE 43.1 Example of competency profile for a performance
leader with positive and negative indicators
FIGURE 43.2 Features of effective performance and
development conversations
FIGURE 44.1 The reward system
FIGURE 44.2 Reward drivers
FIGURE 44.3 Total reward model
FIGURE 45.1 A model of the reward strategy development
process
FIGURE 46.1 Typical grade and pay structures
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