Managing Human Capital Assignment: London School of Commerce

London School of Commerce
Managing Human Capital

Assignment
Dr Rajendra Kumar
MBA 1 – A
Group
1
MBA 1 GROUP A - Group Assignment 1
Part A – Pay Rate
Table of contents
I – Introduction ............................................................................................... ...................04

Figures 1.1 The Matching model of HRM............................................................... 04
II – Product Market ..................................................................................................05

Figure 2.1 A model of factors influencing pay level ................................................ 06
Case 1 – City Bank ............................................................................................. .......... 06
Case 2 – Blatter defends Ronaldo fee ..................................................................... 07
Case 3 – Nokia ..................................................................................................... 07
III – Labour Market ............................................................................................................08

Figure 3.1 A good pay system fits the organisation and its environment .................... 08
Case 4 – Difference of labour market in different countries ..................................... 09
Case 5 – Legal and Industrial Factors .................................................................... 09
Case 6 – BT .......................................................................................................... 09
IV – Internal Labour Market ..............................................................................................10

Case 7 – The Danish government ................................................................................. 11
V – Collective Bargaining ....................................................................................................11

Case 8 – British Airways ................................................................................................. 12
Case 9 – Capitalism crisis gives the labour movement .................................................. 12
Case 10 – Volkswagen Group ......................................................................................... 13
Case 11 – Transport for London ..................................................................................... 14
VI – Technology ...................................................................................................................14
Case 12 – Tesco ............................................................................................................... 15
Case 13 – Intel ................................................................................................................. 15
Case 14 – When less is more .......................................................................................... 16
Case 15 – Staples Limited .............................................................................................. 16
2
Conclusion .........................................................................................................................17
Reference ...........................................................................................................................19
Bibliography .....................................................................................................................21
Part B - Managing Dismissals Properly
I - Introduction...................................................................................................................24
II – Managing Dismissals .................................................................................................25
Figure 1.1 Three types of downsizing strategies ..............................................................25
III – Warnings ..................................................................................................................25
IV – Termination at will and wrongful discharge ...........................................................26
V – Grounds for Dismissals .............................................................................................26
VI – Avoiding wrongful discharge suits ..........................................................................28
VII – Layoffs, Downsizing and the plant closing Law ...................................................28
VII - Dismissal Cases .......................................................................................................29

Case 1 – Truck Driver ......................................................................................................29
Case 2 – Disable Discrimination .....................................................................................30
Case 3 – Positive Discrimination ....................................................................................30
Case 4 – Race Discrimination .........................................................................................31
Case 5 – Age Discrimination............................................................................................31
Case 6 – Racial Discrimination ......................................................................................31
Case 7 – Nissan ...............................................................................................................32
Case 8 – British Refugee Council ...................................................................................32
Case 9 – Western Bank ...................................................................................................32
Case 10 – A Secretary in Virginia ...................................................................................33
Conclusion ........................................................................................................................33
References ........................................................................................................................34
Bibliography ....................................................................................................................37
3
I – Introduction
Today’s organisations are looking to improve their performance in different areas, which
include high productivity and quality that also comprise the whole labour issues. After all the
economy’s turbulence relating to recession, lot of organisations are trying to reduce costs
looking to minimise the risks to face a bankruptcy. With this entire problem the pay rates
could be one of the issues that Human Resource Department need to deal with, of course,
because they need to revise the full pay list and reduce as much as possible in a way to solve
some problems, but at the same time not reducing productivity and quality of products and
services. The follow model shows The matching model of HRM, with this model it is
possible to see different forces that can affect the HRM within a organisation.
Figures 1.1 The Matching model of HRM
Political
forces
Economic Cultural
forces forces
Mission
and
strategy
Firm
Human
Organisation resource
structure management
Source: Devanna et al. (1984) in Fombrun et al., Strategic Human Resource Management. © 1984 John Wiley
& Sons, Inc. Reproduced with permission of John Wiley & Sons, Inc. Cited by Beardwell, Holden and Claydon
2004, p 19.
4
What can analysed is the fact that many issues can affect the decision in terms of pay rates
and so on, and these issues could come from political issues which can be defined as
governmental functions, or economics forces which can have such impact on this matter,
especially in the recession period. What is happing right now in the economy is a good
example, lot of people are suffering having their huge pay slip going down and also many
people cannot ask for pay rise, because of the economic situation, they prefer to have a
security at work than argue for these kinds of things.
Nevertheless, the main point of this assignment is to discuss about how organisations deal
with pay rates and the methods that they use for. Those forces above show how internal and
external factors are related to the company when talks about RH as strategy. It is a circle that
goes around and has such importance for the company; therefore to have the correct decision
when RH takes place it is crucial. Moreover organisations are using different ways to decide
the pay rate and also many issues can be discussed in terms of contribution for its matter.
Such issues like technology, labour market and internal labour market, product market and
collective bargaining could have an importance when the pay rate is the main scenario. The
following paragraphs will discuss these matters with deeply analysis and real cases will be
cited.
II – Product Market
Competitive pressures, both national and global, are major factors affecting pay levels. An
employer’s ability to pay is constrained by her or his ability to compete, so the nature of the
product market affects external competitiveness and the pay level the organization sets. The
degree of competition among producers and the level of the demand for products are the two
key product market factors. Both affect the ability of the firm to change the prices of its
products and services. If prices cannot be changed without suffering loss of revenues due to
decreased sales, then the ability of the organization to pay higher rates is constrained. The
product market factors set the limits within which the pay level can be established.
5
Organization: Conditions in the labour market and product market set the upper limits within
which the pay level can be established. Within the European Union and in Canada, the floor,
or minimum, is set by minimum-wage legislation. The conditions in both the labour and
product markets offer managers a choice; the pay level can be set within a range of
possibilities. The concept of strategic choice emphasizes the role of managerial choice in
determining the pay level to be established within an organization. Faced with a range of
options, managers might choose to set the pay level relatively high in the range to ‘lead’ the
competition in order to recruit and retain highly qualified people. Further, the organization’s
profit levels can directly affect its pay levels. For instance, executive salaries are tied to their
companies’ profits. This general model of the factors influencing the determination of
external competitiveness and pay level is presented
Figure 2.1 A model of factors influencing pay level
Labour market Product market Organization

Demand Competition Strategy
Supply Product demand profitability
External pay level policy
Source: Human Resource Management Bratton and Gold, 2007, p 388 – figure 10.7
Case 1: City Bank

The 1990’s were a watershed for the UK banking industry, and particularly for City Bank, a
medium-size clearing bank. Following the deregulation of the financial sector in 1986, City
Bank has faced increased competition for other financial institutions such as building
societies, an intense squeeze on profit margins, and the need to make considerable provisions
for bad debts. After all these problems City Bank decided to implement a new technology,
which gave to them high efficiency regarding information and communication, that helped
them to improve their services and create different kinds of product and services (such as
home banking, smart cards and debt cards and so on), consequently the employees were
benefited by their performance according to a product that they were working with.
6
Analysis: The case above shows that the fact of improvement of technology and new
products gives the opportunity to City Bank to increase their sales and also to give a
promotion for their employees according to their performance having the new services to
offer to their customers.
Case 2: Blatter defends Ronaldo fee

The football supreme dismissed any fears over the Spanish giants' £80million bid for the
Manchester United midfielder, insisting that it proved the game's ever-improving
popularity. The fact is this case is because of the world crisis to pay this amount of
money for a footballer is quite abuse regarding to reduction of cost and so on.
According to Blatter to pay this amount of money for Ronaldo and Kaka it was
completely fine as long they had been paid for the strong product that they represent in
this industry. (Metro, June 2009).
Analysis: Even in the football industry, the main product market, which is the football player,
will be priced as a product, as the case above just showed, because of the brilliant
performance of Cristiano Ronaldo the price of his image and talent was very high.
Case 3 – Nokia
From its 1865 origins in forestry, Nokia grew and spread until, by the early 1990s it had
become a sprawling, loss- making, conglomerate company. Paper products had grown
downstream from the forestry; in the 1960s Nokia had entered rubber and cables; the 1980s
saw electronics. There were costly moves into consumer electronics and computers, most of
which were quickly disposed of. Then, with Jorma Ollila, there came a dramatic
transformation. The loss-making businesses were sold and the businesses refocused on
telecommunications. By 1995, 90 per cent of revenues came from this industry; Nokia’s
mobile equipment, with 20 per cent share, was second in the world to Motorola. By 2002, it
had become number one with 37 per cent market share. Ollila and his team became important
symbols of international success in an economy struggling to catch up with the rest of
Europe. (Naylor, 2004, p 268).
7
Analysis: The above case showed the importance of a product for the organisation and how it
transformed and change the scenario of their situation. All those people involved in this
project and their success made them important for the organisation, therefore their
performance and strategies regarding this matter could determined their salaries, once the
company did not want loose this team.
III – Labour markets
The demand for and supply of labour can control income and pay levels at difference periods.
According to BBC reports in June 2009, UK’s economy recession has been the most rigorous
since 1958 with its economy has shrink by 2.4% first three months of year 2009. Until June
2009, unemployment has risen to 2.4 million people in the UK, has reached the lowest in
previous four decades (BBC News website, June 2009).
Figure 3.1 A good pay system fits the organisation and its environment
Legal
Labour Market
Follow legislation,
Match local or national
including equal pay
rates Structural
Goals and values
Minimise cost;
Fit pay to
respond to change
organisational
structure
Principles of a good pay system:
- Straightforward, efficient administration
Personnel - Easy to understand
Management - Perceived as fair
Policies - Resolves problems
- Contributes to business aims
Technical
People
Ensure adaptation to
Equity between jobs
changes in
of equal worth;
technology
motivation
Trade Unions Competition
Recognise union policies Take into account success
and industry norms of enterprise
Source: Management by John Naylor, 2004, p 470
8
There are number of employers competing skilled labour and there are huge number of labour
struggle for jobs. It is for all time the case that a decent wage will have to be paid when
demand exceeds supply, particularly when a company looks for skilled workers. Some jobs
involve specialized skills or physical insecurities etc. Heterogeneity of jobs and workers
earnings in reality, a single and regular wage will not be in the labour markets. The quality of
the jobs and individuality of the workers manipulate the pay rates. A well thought of
company in the same industry has to take into account its status in the market when consider
the wage pay, in which case if the wage level is lower than other companies in the same
industry, it may affect its public image. A good number workers and employers are aware of
the condition of the market and will be up to date if there is any change. There are quite a lot
of ways to attain information in the market pay rates. It can be taken from local job centres or
agencies job advertising on newspapers and from other industry organizations
Case 4: Difference of labour market in different countries

Portuguese workers work an average of 1980 hours. The German worker is 1648 hours.
Britain and Germany, several European countries, including firing employees normally paid
according to contract termination costs, the United Kingdom at least two years of wages,
while Germany would offer a year wages. (James Kelly 2001)
Analysis: Labour cost differences factors can also result in differences in human resource
management, the case above clearly displays the labour cost in different country are different,
and labour market also affects the labour force changes in corporate.
Case 5: Legal and industrial factors

In Germany, workers are represented by the selected representatives on the supervisory board
of the employer. They also have a vice president at the high management level. By contrast,
in the UK, the rights of the union to be recognized was left to the management’s goodwill
until the early 2000s and even since the early 2000s when the UK minimum wage regulations
were considered, the vote of huge amount of employees is required before the management’s
consent. (Tayeb, 2005)
Analysis: Industrial relations are the relationships which are between the employee, the
employer and the union. It can directly affect International Human Resource Management.
9
Actually, it depends on countries` rules, religions, governments, etc. Therefore there can be
some differences from country to country about these relations.
Case 6: BT
Recently, BT has set the base salary of its executives at rates below the average paid to senior
managers at its competitors. As part of the measures, executive directors will see their base
pay reduced but the performance-related part increased, so their total package will meet the
upper range of salaries paid only if they outperform. BT has also implemented a pay freeze
for its 85,000 UK staff, including senior management, blaming the move on the economic
downturn and the group's need to cut costs. It has invited staff to take long-term holidays on
25 per cent pay, in order to weather the economic downturn. (Financial Times online, 2009)
Analysis: In general, a labour market has a strong power over management freedom on
deciding relative pay rate. However, in the recession period, demand of labour is significant
low; there are not too much job vacancies available from companies. This means that the
labour market in nowadays is in the weak position, therefore, the management in the
companies has a power in deciding the pay rate, such as BT.
IV – Internal Labour market
As above paragraph explained the features in labour market externally, some employers have
developed their own internal labour market rather than relying on external labour resources.
First of all, some employers believe the external recruiting for searching junior staff, where
the company invests less on training costs, bearing in mind that other leading vacancies,
companies may have a preference that current jobholders to compete the external work force.
This is because the existing workers are familiar with the organizational culture and
comfortable with most routine work, etc. Some organizations design the job responsibilities
in different levels so as to provide their employees to get work experience in a junior level to
an upper level, for example, some companies propose different training courses and
incentives at different phase of work.
Furthermore, Beardwell (2001) identified the pay structure is more stiff and not as much of
approachable to the external labour market. Some companies are unwilling to raise the pay
10
rate internally even they are short of skilled workers. This is due to the condition that most
workers are hesitant to change work environment which they may get the same pay if change
to a new job within the same industry, etc. while they know that they will gain from
company’s reward and incentives scheme if by staying longer years.
Case 7 – The Danish government wants to cut taxes and raise spending, despite strains on
public finances
The Danish central bank has warned the government that given the rapid deterioration in the
public finances, it would be imprudent to consider any additional fiscal easing in addition to
that already agreed. Highlighting the country's deteriorating international competitiveness,
the bank also urged reforms aimed at permanently increasing the labour supply. But with
unemployment now rising, far-reaching labour market reforms will remain elusive. Instead,
the government is emphasising tax cuts and increases in public spending to alleviate the
effects of the downturn, with its zeal for large-scale infrastructure investment projects
seemingly unaffected by current fiscal pressures.
Analysis: In this case the internal labour market will be affected by the decision that the
government will make. Therefore, it is not an external issues, but will be a internal decision
in term of decision to increase labour supply and the their interests such as pay rate.
V – Collective bargaining
‘Collective bargaining is a process of negotiation undertaken between employers’ federations

or representatives and trade unionists to agree the terms and conditions under which
employees should work. During the latter part of the nineteenth century , and for most of the
twentieth century, collective bargaining came to be accepted as a legitimate process by which
the terms and conditions of employment were established and to this end has, to differing
degrees, been accepted by the state and employers.’ (Brown, 1993; cited by Beardwell and
Claydon 2007)
In the term of collective bargaining, Brown et al. 2001 states that pay rates are only a part of
the resulting web of rules, which usually also covers issues such as job descriptions, hours of
11
work, and often, explicitly or by implication, working practices, disciplinary standards and
effort levels. ‘In a growing proportion of these company-based arrangements, pay is not
determined through collective bargaining with trade unions but unilaterally by management.
The influence of collective bargaining on pay has diminished considerably.’ (Brown et al.
2001)
After analysis, some factors could be mentioned that management should consider in
deciding relative pay rates are as follows:
• Qualification and education of employees.
• Level of experiences and ability of employees for a particular position.
• Demand and supply of labour market.
• How much could competitors pay to their employees on the similar position.
• Average market pay rate for the similar position.
Case 8: British Airways: BA braces for union showdown

British Airways and its shareholders face a stormy annual meeting next week as the
struggling airline’s battle with its trade unions breaks into the open. Unite, the main BA
union, which represents about 28,000 of BA’s 40,000 employees, intends to picket the
meeting in force. Many of its members are also shareholders, and fears for their livelihoods
and for the future of BA as one of the world’s premier carriers will dominate the agenda.
Willie Walsh, BA’s chief executive, has warned that BA is facing a “fight for survival” in the
face of two years of record losses. He is demanding permanent labour reforms as well as cost
cutting and redundancies. A deadline – imposed by him – of June 30 for reaching agreement
has passed and the two sides are now seeking a way forward with the help of Acas, the
conciliation service. Unite, which represents a large part of BA cabin crew, check-in and
sales staff, baggage loaders and ramp workers, believes Mr Walsh is not interested in simply
cutting costs to come though the current crisis. (Financial Times online, 2009)
Analysis: It is clear that in this case the union is trying to help the BA staff to keep their jobs
and dealing also with many different ways to reduce hours or salary, in order to save some
jobs. Another issue is the fact that they mentioned no pay rise for couple of years, therefore
the union have such influence to help the BA’s staffs regarding their pay rate.
12
Case 9 – Capitalism crisis gives the labour movement a chance to revive and reinvent itself.
On March 10th United Technologies, mangled by the economic crisis, became the latest
American industrial giant to announce massive layoffs, cutting its workforce by 11,600, or
around 5%. Unemployment across the developed world is reaching levels not seen for
decades. Yet even thought periods of high unemployment are miserable for unwanted
workers, it seems they can be good for workers’ rights. The crisis in capitalism has
strengthened the hand of unions, which are now viewed more positively in America than they
have been since Jimmy Carter occupied the White House. The new president is among their
biggest fans (The Economist, March 2009 – p 65).
Analysis: This case shows that the government want to work closely to the unions to
minimise problems and try to find solutions for the present problems. With President Barak
Obama, the unions are having more space to act with the government looking for collectivism
and rights for all employees. Looking at this case, it is possible to understand how unions
have such influence for organisations and for workers. Therefore, they can help workers to
have a decent pay and also show them their rights and obligations. Another issue that can
define pay rates is the labour market. “The simplest view of labour market is that it is an
arena of competition. Workers enter the arena in search of jobs and employers enter it in
search of workers. Competition between employers for workers and between workers for jobs
results in a ‘market wage’ that adjusts to relative changes in labour demand and supply”.
Case 10: Volkswagen Group
The Volkswagen Group with its headquarters in Wolfsburg is one of the world’s leading
automobile manufacturers and the largest carmaker in Europe. The company has a significant
number of employees who are in the IG Metall metalworkers union. Berthold Huber, the
chairman of the powerful IG Metall metalworkers union, his plan is to enable the more than
380,000 employees of the combined VW-Porsche Group to hold shares in Europe's largest
automaker. Huber wants employees to "hold a significant share" of the company. He is
aiming for 10 percent, and he wants to see employees share in the profits of the group's many
brands, from Audi to Skoda. Huber’s proposal aims to secure jobs, more and more companies
are asking their employees to agree to wage cuts. Until now, the companies have promised, in
13
return, more investments or guaranteed jobs. Now IG Metall wants to accept, in selected
cases, capital shares as its price, essentially as a wage of fear. (Business Week, 2009)
Analysis: The aim of trade union is to work together with companies in order to improve the
working environment for the employees, include the pay rate. There is a collective bargaining
agreement in between of trade union and the companies. This means that if one party does
not agree the terms in the contract, then the agreement cannot be signed. Therefore, the
statement of ‘management freedom in deciding relative pay rate is constrained by collective
bargaining’ is not fully accurate. As the case above, alternative way can be found by IG
Metall workers union that is to hold company’s shares in return to agree on wage cut and
secure the jobs.
Case 11: Transport of London
Unions have attended meeting and try to negotiated with Transport of London on improve the
pay rate, however, TFL has rejected says ‘no negotiation’. Union asked for a deal that would
reward staff but management argued that inflation may go up so RPI plus 0.5% will be good
for you. What if the Bank of England is right and inflation goes up to 9 or 10%? Will TfL
honour their commitment? (tssa, 2009)
Analysis: As above mentioned the Union had tried negotiated with London Transport for
London regarding a pay rise. It is clear in this case that the Union has such power to help the
staff and lot of times to conduct them to a strike, in a way to achieve their objectives, but of
course there are others ways of negotiation.
VI – Technology
Technology is a factor to drive people’s income, but it can have advantages and
disadvantages. Today’s technology has such influence in any organisation, once they want to
improve their performance in order to maintain a high level of competition. Consequently, it
can be found high technology and less labour, once they can use it to reduce cost.
Advantages of Technology: Some of the technology are difficult to handle, therefore, just a
few people can be called expert which have good knowledge and experience for the
14
technology. On other hand, the new technology normally bring the better power and
efficiency to the work, and it make managers think it worth to pay more for the expert. The
table below shows the highest pay rate job is information technology and second highest is
soft engineer, both of jobs require high technology.
Figure 4 – Median Salary by job in US
Source: PayScale website, career research center, Median Salary by job, country: United States
Disadvantages of Technology: By the work efficiency improved, the management will think
about cutting the work position, some less skill people will lose job or deduct he wage rate,
for example:
Case 12 – Tesco
Before TESCO bring the self service till to the store, they have to make sure hire enough
cashiers to each till for service customers, but 6 self service tills just need one cashier to
guide customer today.
15
Analysis: Having an increase of self service tills they reduce the number of staff, therefore
this could be good for the organisation, reducing the labour cost, on the other hand, this
creates less jobs in the market.
Case 13: Intel

One of Ireland's largest employers, computer chip maker Intel Corp., announced it plans to
lay off 294 people or 6 percent of its Irish work force in the latest blow to Ireland's
unravelling economy. Intel, which employs nearly 5,000 people chiefly in the west Dublin
commuter town of Leixlip, said it had no choice but to trim its Ireland operations because of
lower-than-expected demand for its new generation of computer microprocessors. It also
cited high labour and utility costs in Ireland as factors. The opposition Labour Party said the
Intel layoffs would cost the government the equivalent of euro10 million over the coming
year in lost income taxes and higher welfare costs. "We simply cannot continue to afford the
loss of jobs at this rate," said Labour lawmaker Emmet Stagg, who represents Leixlip in
parliament. (Business Week, 20069)
Analysis: The above article indicates that a labour market in the west Dublin commuter town
of leixlip is relatively higher than the production demand in the current situation, ie,
recessions. Companies’ management freedom on relative pay rate has been constrained
by the labour market. This has pushed the Intel group to reduce number of employees in
order to cope with current difficulty. Enhance, company may think to leave this market
by shifting its operation to other country, such as Poland.
Case 14 – When less is more
WHY is it so many manufacturers cannot leave well alone? They go to great pains to produce
exquisite pieces of technology. Then too often, instead of merely honing the rough edges
away to perfection, they spoil everything by adding unnecessary bells and whistles and
unwarranted girth. In the pursuit of sales, they seem to feel they must continually add further
features to keep jaded customers coming back for more. It is as if consumers can’t be trusted
to respect the product for what the designers originally intended. (The Economist online,
2009)
16
Analysis: The technology is today’s essential to all business that want to increase their profit
investing in this matter having the objective of improve their performance, consequently their
staff will be affect in a way or another regarding an increase or decrease of their wages.
Case 15 – Staples Limited

Staples are one of the largest retailers in the world for stationary and office supplies. One of
the biggest problems they were facing to control pay cost in their delivery centre as Staples
buy out in massive stock so they need to pay whatever warehouse staff market rate was.
Management tried to cut down on labour before in past but were unable to do so. Then they
opted new technology in respect to their trade requirement for delivery centre and were able
to control the labour cost. Technology gave upper hand to management in making pay
decisions both to improve service and in controlling cost.
Analysis: Controlling cost is the biggest aspect for managers and as we have seen in above
case study how technology helps managers in cutting cost in areas where manual labour was
having edge in getting pays.
Conclusion
17
Having all these details about how organisations need to deal when the pay rate is the main
issue, it is possible to understand how many internal and external forces can affect in terms of
the pay rate decision. In many cases in the past employees were able to get pay rise only
because they were working for the same organisation for long time, therefore the pay rate was
decided by hierarchy, nevertheless some organisations still doing this kind of method when
they need to have a decision in conditions of this issue.
Also with the analysis on different kind of issues that can help the organisations to decide
about pay rate, it was found that nowadays there are different ways to analyse the situation
and have a reasonable resolution, especially regarding employee performance, product or
service, unions and so on. All these factors have such influence giving a strict guide to
organisation to go in the correct way when they have to face the decision in this terms, such
as minimum wages and so on. Especially way talks about Unions Trade, they can stop a
whole assembly or whole production, when they need to ‘fight’ for pay rise or any other staff
interest.
To end up, managers need to understand all these factors, and trough this point they can
analyse the situation, because cases are cases and they are different, it is not always that
organisations will look at the product market or labour market, it will depends on which kind
of product or service or especially nowadays the fact of the technology that has advantages
and disadvantages to be discussed to help companies to have the right decision. Unions
always will influence organisations, because they are strong and they can stop thousands of
people when they need it to achieve their objectives in terms of pay rise or other matters.
Therefore it is clear that these factors have such impact in any organisation and in a way to
support both sides ‘the company’ and ‘the employee’ these aspects will be always very
helpful and will give a direction to any manager to understand how they can deal with this
situation and give the right pay to their staff.
References
18
BA Braces for Union Showdown, by Kevin Done – Aerospace Correspondent, July 10 2009
19:38 [last update]. Financial Times [online]. Available:
http://www.ft.com/cms/s/0/207c0920-6d7e-11de-8b19-00144feabdc0.html?nclick_check=1.
30/07/09
BBC News ‘A note of caution’ by Stephanie Flanders, 12:30 PM, Tuesday 30/06/09 [last
update], HP [online] BBC News. Available:
http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/2009/06/a_note_of_caution.html.
29/07/09
Beardwell, I & Holden, L., 2001, ‘Human Resource Management: A Contemporary

Approach’, 3rd edition, published by Prentice Hall, Pearson Education Ltd. Essex.
Beardwell, I., Holden, L. and Claydon, T., 2004, ‘Human Resource Management: A
Contemporary Approach’, 4th edition, published by Pearson Education Limited, Essex, p 19
Bratton, J. and Gold, J., 2007, ‘Human Resource Management’, 4th edition, published by
Palgrave Macmillan, New York, p 388
Business week [online] ‘German Workers Trade Wages for Equity ‘ (citied 14.08.2009)
http://www.businessweek.com/globalbiz/content/aug2009/gb2009084_331824.htm
Dessler, G., 2008, ‘Human Resource Management’, 11th edition, published Prentice Hall.
Economist Intelligence Unit ViewsWire, Exit Strategy, August 17th 2009 [last update]. The
Economist, HP [online], available: http://www.economist.com/agenda/displaystory.cfm?
story_id=14252572. 17/08/09
Economist Tech.view, ‘When less is more, August 14th 2009 [last update]. The Economist,
HP [online], available: http://www.economist.com/sciencetechnology/displaystory.cfm?
story_id=14248430. 15/08/2009
19
Financial times [online], BT cuts executive pay below its rivals By Salamander Davoudi
Published: July 6 2009 03:00 available: http://www.ft.com/cms/s/0/ff109d04-69c3-
11de-bc9f-00144feabdc0.html?nclick_check=1. 10/08/09
James Kelly, Human Resource Strategy 2001 Volume 23 Issue 1.Published by Emerald
Group publishing Limited.
Metro, ‘Blatter defends Ronaldo fee Saturday’ , June 13, 2009
Monir H. Tayeb, 2005, ‘International Human Resource Management: A Multinational

Company Perspective’, 1st edition, published by Oxford University Press, New York.
Naylor, J., 2004, ‘Management’, 2nd edition, published by Pearson Education Limited, Essex,
p 268
SalarySurvey for Industry – Information Technology (IT) Services (United States). HP

[online] PayScale. Available:
http://www.payscale.com/research/US/Industry=Information_Technology_(IT)_Services/Sal
ary. 31/07/09
Transport for London Company news ‘TfL derisory pay offer ‘26 June 2009 [online] (cited
on 16 Aug 2009) Available: http://www.tssa.org.uk/article-153.php3?
id_article=5182>
US chip maker Intel cutting 300 jobs in Ireland (By SHAWN POGATCHNIK) business week
[online] citied 14.08.2009 available from:
http://www.businessweek.com/ap/financialnews/D99IV7F80.htm
Bibliography
20
BA Braces for Union Showdown, by Kevin Done – Aerospace Correspondent, July 10 2009
19:38 [last update]. Financial Times [online]. Available:
http://www.ft.com/cms/s/0/207c0920-6d7e-11de-8b19-00144feabdc0.html?nclick_check=1.
Baron, A. and Armstrong, M., 2005, ‘Managing Performance: Performance Management in

Action’, 1st edition, published by The Chartered Institute of Personnel and Development,
London.
BBC News ‘A note of caution’ by Stephanie Flanders, 12:30 PM, Tuesday 30/06/09 [last
update], HP [online] BBC News. Available:
http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/2009/06/a_note_of_caution.html.
Beardwell, I & Holden, L., 2001, ‘Human Resource Management: A Contemporary

Approach’, 3rd edition, published by Prentice Hall, Pearson Education Ltd. Essex.
Beardwell, I., Holden, L. and Claydon, T., 2004, ‘Human Resource Management: A
Contemporary Approach’, 4th edition, published by Pearson Education Limited, Essex,
Bratton, J., 2007, ‘Work and Organizational Behaviour’, 1st edition, published by Palgrave
Macmillan, New York
Bratton, J. and Gold, J., 2007, ‘Human Resource Management’, 4th edition, published by
Palgrave Macmillan, New York
Business week [online] ‘German Workers Trade Wages for Equity’ citied 14.08.2009
http://www.businessweek.com/globalbiz/content/aug2009/gb2009084_331824.htm
Dessler, G., 2008, ‘Human Resource Management’, 11th edition, published Prentice Hall.
Doole, I. and Lowe, R., 2004, ‘International Marketing Strategy’, 4th edition, published by
Thomson Learning, London,
21
Economist Intelligence Unit ViewsWire, Exit Strategy, August 17th 2009 [last update]. The
Economist, HP [online], available: http://www.economist.com/agenda/displaystory.cfm?
story_id=14252572.
Economist Tech.view, ‘When less is more, August 14th 2009 [last update]. The Economist,
HP [online], available: http://www.economist.com/sciencetechnology/displaystory.cfm?
story_id=14248430.
Financial times [online], BT cuts executive pay below its rivals By Salamander Davoudi
Published: July 6 2009 03:00 available: http://www.ft.com/cms/s/0/ff109d04-69c3-
11de-bc9f-00144feabdc0.html?nclick_check=1.
Griffin, R. and Pustay, M., 2007, ‘International Business’, 5th edition, published by Pearson
Education, Inc., New Jersey,
Harzing, A. and Ruysseveldt, J., 2004, ‘International Human Resource Management’, 2nd
edition, published by Sage Publications Ltd, London
James Kelly, Human Resource Strategy 2001 Volume 23 Issue 1.Published by Emerald
Group publishing Limited.
Metro, ‘Blatter defends Ronaldo fee Saturday’ , June 13, 2009
Monir H. Tayeb, 2005, ‘International Human Resource Management: A Multinational

Company Perspective’, 1st edition, published by Oxford University Press, New York.
Naylor, J., 2004, ‘Management’, 2nd edition, published by Pearson Education Limited, Essex,
Redman, T., 2006, ‘Contemporary Human Resource Management, 2nd edition, published by
Pearson Education Limited, Essex
SalarySurvey for Industry – Information Technology (IT) Services (United States). HP

[online] PayScale. Available:
22
http://www.payscale.com/research/US/Industry=Information_Technology_(IT)_Services/Sal
ary.
Transport for London Company news ‘TfL derisory pay offer ‘26 June 2009 [online] (cited
on 16 Aug 2009) Available: http://www.tssa.org.uk/article-153.php3?
id_article=5182>
US chip maker Intel cutting 300 jobs in Ireland (By SHAWN POGATCHNIK) business week
[online] citied 14.08.2009 available from:
http://www.businessweek.com/ap/financialnews/D99IV7F80.htm
Part B
23
Managing Dismissals Properly
I – Introduction
It is clear that human resource management is activities undertaken to attract, develop, and
maintain an effective workforce within an organization, (Richard L. Daft, 2003), it is includes
human resource planning job analysis, managing pay, recruitment and selection, etc. HRM is
important for the corporation’s success; it continues to be one of the most important factors
contributing to the employee’s decision and motivations in the company are part of the
direction that the corporation should take. Also, the HRM issues also face the international
human resource management. Some of the employee may failure to adapt to their new job
suggests that they may not have been a suitable candidate in the first place. This is something
that could have been identified through a more rigorous recruitment and selection process.
The selection process in any organization should be able to identify unsuitable candidates for
a position - selection basically involves detecting the undesirable -or less desirable-candidates
for a position and removing them from further consideration. (Megginson L, 1972)
The follow paragraphs will be discussed the different ways that managers need to look at
when they need to deal with these matters. There are many things that they need to analyse
before to take any decision, first because whole organisation can be affected in terms of
image and also cost, in some cases when they dismiss someone unfairly, as results they can
sue the company for the consequences that they faced. On the other hand, the company have
the rights to dismiss any employee, once they are under the law and the reason for this is
acceptable according to the contract and so on.
II – Managing dismissals
Dismissal is the most drastic disciplinary step the employer can take. Because of this, there
should be a sufficient cause for dismissal, and dismissal should preferably occur only after all
reasonable steps to rehabilitate or salvage the employee failed. However, there will be
undoubtedly times when dismissal is required, perhaps at once. The best way to “handle” a
24
dismissal is to avoid it in the first place. Many dismissals start with bad hiring decisions.
Using effective selection practices including assessment tests, reference and background
checks, drug testing, and clearly defined job descriptions can reduce the need for many
dismissals.
Figure 1.1 Three types of downsizing strategies
Workforce reduction Work redesign Systemic
Focus Headcount Jobs, levels, units Culture
Eliminate People Work Status quo
Implementation Quick Moderate Extended

time
Payoff target Short-term payoff Moderate-term Long-term payoff
payoff
Inhibits Long-term adaptability Quick payback Short-term cost
savings
Examples Attrition Combine functions Involve everyone
Layoffs Merge units Simplify everything
Early retirement Redesign jobs Bottom-up change
Buy-out packages Eliminate layers Target hidden costs
Source: Human Resource Management (1994), Volume 33, No2, Cameron
III – Warnings
The employer can decide to give the employee a warning. The following are examples of
warnings can be used by any organizations or employees:
• Verbal/ oral first written warning/improvement notice

• Final written warning.
Organizations and Employers should set up specific disciplinary warnings. Typical

timescales suggested in the Acas non statutory guidance for the types of warning are:
25
• First written warning – 6 months
• Final written warning – 1 year.
Normally a dismissal have to be fair provided the employer has to have a good reason for the
dismissal and has acted reasonably in carrying it out. When an employee is dismissed, and
then they often say they will claim it is an unfair or wrongful dismissal. However, sometimes
some dismissals cannot be right. As everyone make mistake, sometimes originations or
employees make mistakes.
IV – Termination at Will and Wrongful Discharge
Termination at will means that without a contact, either the employer or the employee could
terminate at will the employment relationship. The employee can resign for any reason, at
will, and the employer can dismiss an employee for any reason, at will. Today, however,
dismissed employees are increasingly taking their cases to court, and many employers are
discovering they no longer have a blanket right to fire. Instead, EEO and other laws and court
rulings increasingly limit management’s right to dismiss employees. For example, firing a
whistleblower might trigger “public policy” exceptions to firing at will. Or, a statement in an
employee handbook may imply a contractual agreement to keep an employee on. Wrongful
Discharge-Wrongly Discharge refers to a dismissal that violates the law or that fails to
comply with contractual arrangements stated or implied by the employer, for instance in
application forms or employee manuals.
V – Grounds for Dismissal
There are four bases for dismissal: unsatisfactory performance, misconduct, lack of
qualifications for the job, and changed requirements of (or elimination of) the job:
• Unsatisfactory performance means persistent failure to perform assigned duties or to

meet prescribed job standards. Specific grounds include excessive absenteeism,
26
tardiness a persistent failure to meet normal job requirements, or an adverse attitude
toward the company, supervisor, or fellow employees.
• Misconduct is deliberate and wilful violation of the employer’s rules and may include
stealing, rowdy behaviour, and insubordination. The “Know Your employment law”
feature discusses an extreme example, gross misconduct.
• Lack of qualifications for the job is an employee’s inability to do the assigned work
although he or she is diligent. Because the employee may be trying to do the job, it is
reasonable for the employer to do what’s possible to salvage him or her- perhaps by
assigning the person to another job, or retraining the person.
• Changed requirements of the job refer to an employee’s inability to do the job after
the employer changed the nature of the job. Again the employee may be industrious,
so it is reasonable to retrain or transfer this person, if possible.
VI – Avoiding Wrongful Discharge Suits
Avoiding wrongful discharge suits requires a two-pronged approach. First, create

employment policies and, specifically, grievance/dispute resolution procedures that make
employees feel they are treated fairly. People who are fired and who walk away feeling
embarrassed or treated unfairly are more likely to seek retribution in court. In that regard,
employers can use severance pay to blunt a dismissal’s sting. There is no way to make
termination pleasant, but the first line of defence is to handle it with fairness and justice.
Second, review and refine all employment related policies, procedures, and documents Pay
particular attention to the employee handbook. This makes clear that the material in the
material in the handbook does not constitute a contract.
VII – Layoffs, Downsizing, and the Plant Closing Law
27
No disciplinary separations are a fact of corporate life. For the employer, reduced sales or
profits may require layoffs or downsizing. Layoff generally refers to having selected
employees take time off, with the expectation that they will come back to work. Downsizing
refers to permanently dismissing a relatively large proportion of employees in an attempt to
improve productivity and competitiveness. Similarly, employees may resign to retire or to
look for better jobs.
Bumping/Layoff procedures- As noted above, layoff generally refers to having selected

employees take time off, with the expectation that they will come back to work. With layoffs,
three conditions are usually present: (1) there is no work available for these employees, (2)
management expects the no-work situation to be temporary and probably short term, and (3)
management intends to recall the employees when work is again available. A layoff is
therefore not a termination, which is a permanent severing of the employment relationship.
Layoff and Downsizing Alternatives- layoffs and (especially) downsizing are usually painful
for all involved, and have the added disadvantage of stripping the company of well-trained
personnel. Employers therefore often try to find alternatives to wholesale dismissals, where
possible. Suggestions include findings volunteers who are interested in reducing hours or
part-time work; using attrition; and networking with local employers concerning temporary
or permanent redeployment.
Merger Guidelines- In terms of dismissal, mergers and acquisitions are usually one-sided.
One company essentially acquires the other, and it is often the employees of the later who
find themselves looking for new jobs, in such situations the acquired firm’s colleagues.
Seeing your former colleagues fired is bad enough for morale. Seeing them fired under
conditions that smack of unfairness poisons the relationship. It thus behoves the manager to
treat those whom you let go fairly. As a rule, therefore:
• Avoid the appearance of power and domination.
• Avoid win-lose behaviour.
• Remain businesslike and professional in all dealings.
• Maintain as positive a feeling about the acquired company as possible.
28
• Remember that the degree to which your organization treats the acquired group with
care and dignity will affect the confidence, productivity, and commitment of those
who remain.
For example, Jack Brown, chairman of Slater brothers, knew it was crucial to maintain good
relations with the employees of the 33 Albertson’s and 10 Lucky Stores his company
acquired. Slater first created a transition team headed by a top executive. Among other things,
they offered jobs to all employees of the 43 stores. He and his firm also devoted a great deal
of time and effort to communicating with the new employees.
Dismissal Cases
Case 1 – Truck driver Ron Ellis wins £28,000 after being sacked for opposing working
excessive hours
A truck driver has been awarded more than £28,000 after he was sacked for opposing a call to
work excessive hours and risk prosecution. Ron Ellis had been employed by Birmingham-
based Blackwell Logistics, which has since gone into liquidation. He had been seeking
compensation for unfair dismissal. Ellis alleged that Blackwell management was attempting
to reopen the firm under a new name, a move he and eight other sacked truck drivers
opposed. (Personneltoday.com, 2009)
Analysis: In many organisations this situation is common and employee has the right to say
no for certain delegations made by their managers, once they can prove that order was against
to their procedures. Of course, some cases the employee is wrong and the fact to not have the
right attitude could end in dismissal, once they sign a contract to that specific job they have
the obligation to do what the organisation ask for.
Case 2 – Disable Discrimination

“A mother yesterday took a giant step towards winning new rights for millions of working
parents and carers of the disabled. Sharon Coleman had taken a case of discrimination to the
European Court of Justice and judges yesterday backed her case.
29
The opinion delivered by the EU's Luxembourg-based court promises to launch a revolution
in British equality law by establishing a new category of people who suffer "discrimination
by association"”. (London Evening Stadard, 2009)
Analysis: The above situation clearly reflexes how organisations are discriminating in
making dismissals. One of the factors which are framed for dismissing was disability which
is part of discrimination in all job sectors that cannot be used.
Case 3 – Positive discrimination

“The Equality Minister defended plans to encourage firms to discriminate in favour of female
and ethnic minority’s job candidates.
Responding to criticism that the plans could discriminate against white men, Ms Harman said
"you don't get progress if there isn't a bit of a push forward". (The Independent online, 2008)
Analysis: Basically it depends how one understand the fact, in the above case study the
positive discrimination was highlighted but it completely lies on how it will favour the
original cause. If one side reflects positive discrimination then definitely it will work as
implementing factor other side.
Case 4: Race discrimination

“Britain's most senior Asian police officer has settled a claim for race discrimination with
Scotland Yard but has had to tone down his criticism of the force, it was claimed yesterday.
Asst Comm Tarique Ghaffur will receive a £300,000 payout and his full pension - far less
than the £1million he was originally claiming. The deal, which includes a gagging order, is
expected to be confirmed publicly soon. A source at the National Black Police Association
said it is believed another condition of the deal is Mr Ghaffur, 53, severs links with the
organization”.(Metro online, 2008)
Analysis: Discriminating on the basis of race is another issue which is quite noticeable in
many organizations but it should be practice as it can cause firms heavy payouts and criticism
as shown above.
30
Case 5: Age discrimination
“A 67-year-old health worker sacked the day before new age discrimination regulations
came into force has won her job back in a "landmark" victory, it was revealed today. Ann
Southcott was dismissed from her job as a clerical worker in Treliske Hospital, Truro,
Cornwall, on September 30, the day before the Employment Equality (Age) Regulations were
introduced. She was told she would receive 11 weeks' pay rather than the 11 months' pay she
would have been entitled to if she had been dismissed a day later.” (London Evening, 2007)
Analysis: Organisations are discriminating against the aged colleagues as shown in the case
above. But now there is a law which protect such discrimination and helps various people
who do not get fair treatment.
Case 6: Racial Discrimination

“Hidden identity: Qamar Malik changed his name to Rhyddir Aled Lloyd-Hilbert
A Pakistani-born engineer claimed yesterday that his job application was rejected by a
construction firm because of his foreign-sounding name. Qamar Malik, who moved to south
Wales with his family more than 30 years ago, said that when he later submitted an
application to the same company using a fictitious Welsh-sounding name he was granted an
interview.” (London Evening, 2007).
Analysis: No organisation should practise racial discrimination as it is not a healthy flow.

Jobs should be offered on right skill set not on the basis of race, name etc. as it was happened
in the mentioned case.
Case 7 – Nissan
Nissan sacked one of their employees for setting up business during his sick leave. On the
grounds of unfair dismissal the employee won the compensation for £65000. According to
the verdict Nissan rules do not specify that a person cannot do business and they have to issue
corrective measure warnings before sacking. (Personneltoday.com, 2006)
Analysis: Companies have to be very precautious before taking such decision and they
should always refer to rules otherwise any unfair dismissal may result in heavy compensation
as seen above.
31
Case 8 – British Refugee Council
British Refugee Council, redundant black people just leaving all white in the team and
arousing an issue of racial discrimination. In return they have to compensate £ 65000 to the
person redundant on the basis of color. (Mail online, 2009)
Analysis: According to the fair policy for dismissal every organization are in legal bindings
not to discriminate against any individual by color, race, sex etc. As seen above how
companies have to compensate if their decision is racial.
Case 9 – Western Bank

When the two organisations merged a lot of functions were actually duplicated, the Western
Bank (Australia) merged with the larger financial institution in 1996. What they decided was
to look the situation in term of staff having the same functions and find out those areas they
need more people, but unfortunately they end up reducing they HR people that they really not
required to go forward to their objectives. (Redman and Wilkinson, 2006)
Analysis: Some cases for instance when merging happens in organisations it is behavioural
change to redundant staff as few departments are entirely unique in respect to their
functionality so to retain both departments is impossible.
Case 10 – A Secretary in a Virginia

A Secretary in a Virginia doctors’ office missed a number of days from work due to the death
of a grandparent and the illness of a parent. Her employer told her that it did not like her
missing days and would be looking for a replacement. The secretary then turned in a
resignation, but agreed to stay on until a replacement was found. When a replacement was
hired, the secretary applied for unemployment insurance. The secretary was denied benefits
on the basis that her resignation was merely in anticipation of fired, not in lieu of being fired.
(Fleischer, 2005)
Analysis: This case clearly focus on how voluntary dismissal can become part of dismissal
procedure in which other circumstances can be vital in making relevant decision.
32
Conclusion
After all analysis on the managing dismissals it was important to know and understand how
organisations need to deal with this fragile issue. First of all both sides need to understand the
situation, therefore, any organisation must have a contract with employee, and the employee
need to know their rights and obligation before to start work, this is just for start because
many things can change within in an organisation, and in this case they can revise the
contract and so on.
Another important thing was to see the different ways that organisations can dismiss the
employee properly, with letters, warnings and so on. Also if a merger occurs the organisation
may need to reduce the number of their staff regarding the increase of employee in the same
sector. It is understandable that in many cases the organisation have rights to firing someone
as sometimes the employee have the right to sue the company for recompense , once they can
prove that they were fired unjustly.
To conclude, any manager or any person that is responsible for hiring and firing, need to
know the law of employee and the culture of the organisation very well, as if any problem
occurs they can start look at solutions before any decision. There are many ways that
managers can deal with this situation; the only thing is they need to be very carefully because
their decisions can affect whole organisation and also the work place, which means whole
work environment,
33
References
ACAS April 2009 Code of Practice, available: http://www.acas.org.uk/CHttpHandler.ashx?

id=1047. 04/08/09 18.00
Advisory Handbook – Employing people: a handbook for small firms, ACAS [HP online],
available: http://www.acas.org.uk/index.aspx?articleid=924. 04/08/09 17.00
Beardwell J.and Claydon T., 2007, ‘Human Resource Management’, 5th edition, published by
Pearson Education Limited
Cameron, K., 1994, ‘Human Resource Management’, Volume 33, No 2, published by John
Wiley & Sons, Inc, cited by Redman, T., 2006, ‘Contemporary Human Resource
Management, 2nd edition, published by Pearson Education Limited, Essex, p 366
Dessler, G., 2008, ‘Human Resource Management, 11th edition, published by Pearson
Education International, Essex, 573 – 578
‘Dismissal’, revised April 2009 [last update], CIDP [HP online], available:
http://www.cipd.co.uk/subjects/emplaw/dismissal/dismissal.htm. 03/08/09 19.30
Human Resources News, ‘Truck driver Ron Ellis wins £28,000 after being sacked for
opposing working excessive hours’, by Gareth Vorster, 23 July 2007 17:25 [last update],
personneltoday [HP online], available:
http://www.personneltoday.com/articles/2007/07/23/41659/truck+driver+ron+ellis+
wins+28000+after+being+sacked+for+opposing+working+excessive+hours.html.
30/07/09
London Evening Standard, Tuesday 18/08/09 [last update], [HP online], available:
http://www.thisislondon.co.uk/news/article-23435189-
details/Woman+with+disabled+son+wins+landmark+discrimination+battle+that+could+give
+new+rights+to+millions+of+carers/article.do. 01/08/09
34
London Evening Standard, 12/04/07 [last update], ‘Victoy for ‘age discrimination’ worker in
landmark case, [HP online], available: http://www.thisislondon.co.uk/news/article-23392390-
details/Victory+for+%27age+discrimination%27+worker+in+landmark+case/article.do.
02/08/09
London Evening Standard, 05/11/09 [last update], [HP online], available:

http://www.thisislondon.co.uk/news/article23419680details/Firm+
%27wanted+a+Welshman+but+not+a+Pakistani%27+-
+Engineer+claims+racial+discrimination/article.do. 02/08/09
Mail Online, ‘Black immigration worker who suffered racial discrimination at refugee charity
wins £65,000’, 02/06/09 [last update], [HP online], available:
http://www.dailymail.co.uk/news/article-1190321/Man-sacked-black-wins-65-000-refugee-
charity.html
Megginson, L., 1972, ‘Personnel and Human Resources Administration: A Behavioural

Approach to Administration, Richard d Irwin
Metro, Friday November 14 2008, ‘Race-claim officer wins £300,00 but is gagged, available:
http://www.metro.co.uk/news/article.html?Race-claim_officer_wins_
%A3300,000_but_is_gagged&in_article_id=401709&in_page_id=34&in_a_source=.
01/08/09
Nissan losses unfair dismissal case, 03/03/2006 [last update], Personneltoday [HP online],
available: http://www.personneltoday.com/articles/2006/03/03/34222/nissan-loses-unfair-
dismissal-case.html. 02/08/09
Pearson Education Limited, Essex, p 375
Richard L. Daft (2003) Management 6th Edition pp406
35
Summary of the Law on Unfair Dismissal and Redundancy, Thompsons [HP online],
available: http://www.thompsons.law.co.uk/ltext/l1020001.htm. 04/08/09 14.30
Business Link, Practical advice for business, ‘Dismissal’, [HP online], available:
http://www.businesslink.gov.uk/bdotg/action/detail?
r.l1=1073858787&r.l3=1074200615&r.lc=en&r.t=RESOURCES&type=RESOURCES&item
Id=1073793716&r.i=1073793715&r.l2=1073876974&r.s=m. 30/07/09
36
Bibliography
ACAS April 2009 Code of Practice, available: http://www.acas.org.uk/CHttpHandler.ashx?

id=1047. 04/08/09 18.00
Advisory Handbook – Employing people: a handbook for small firms, ACAS [HP online],
available: http://www.acas.org.uk/index.aspx?articleid=924.
Beardwell J.and Claydon T., 2007, ‘Human Resource Management’, 5th edition, published by
Pearson Education Limited
Bratton, J., 2007, ‘Work and Organizational Behaviour’, 1st edition, published by Palgrave
Macmillan, New York
Cameron, K., 1994, ‘Human Resource Management’, Volume 33, No 2, published by John
Wiley & Sons, Inc, cited by Redman, T., 2006, ‘Contemporary Human Resource
Management, 2nd edition, published by Pearson Education Limited, Essex,
Chris Hendry 1995, “Human Resource Management: a strategic approach to employment

(Contemporary Business), published by Butterworth-Heinemann,
David Evans 2001, “Supervisory Management” published by Thomson Learning; 5th Edition,
Dessler, G., 2008, ‘Human Resource Management, 11th edition, published by Pearson
Education International, Essex
‘Dismissal’, revised April 2009 [last update], CIDP [HP online], available:
http://www.cipd.co.uk/subjects/emplaw/dismissal/dismissal.htm.
37
Human Resources News, ‘Truck driver Ron Ellis wins £28,000 after being sacked for
opposing working excessive hours’, by Gareth Vorster, 23 July 2007 17:25 [last update],
personneltoday [HP online], available:
http://www.personneltoday.com/articles/2007/07/23/41659/truck+driver+ron+ellis+wins+280
00+after+being+sacked+for+opposing+working+excessive+hours.html.
London Evening Standard, Tuesday 18/08/09 [last update], [HP online], available:
http://www.thisislondon.co.uk/news/article-23435189-
details/Woman+with+disabled+son+wins+landmark+discrimination+battle+that+could+give
+new+rights+to+millions+of+carers/article.do.
London Evening Standard, 12/04/07 [last update], ‘Victoy for ‘age discrimination’ worker in
landmark case, [HP online], available: http://www.thisislondon.co.uk/news/article-23392390-
details/Victory+for+%27age+discrimination%27+worker+in+landmark+case/article.do.
London Evening Standard, 05/11/09 [last update], [HP online], available:

http://www.thisislondon.co.uk/news/article23419680details/Firm+
%27wanted+a+Welshman+but+not+a+Pakistani%27+-
+Engineer+claims+racial+discrimination/article.do.
Michael Armstrong, 2003, ‘A Handbook of Human Resource Management Practice’, 9th

edition, Published by Kogan Page
Mail Online, ‘Black immigration worker who suffered racial discrimination at refugee charity
wins £65,000’, 02/06/09 [last update], [HP online], available:
http://www.dailymail.co.uk/news/article-1190321/Man-sacked-black-wins-65-000-refugee-
charity.html
Megginson, L., 1972, ‘Personnel and Human Resources Administration: A Behavioural

Approach to Administration, Richard d Irwin
Metro, Friday November 14 2008, ‘Race-claim officer wins £300,00 but is gagged, available:
http://www.metro.co.uk/news/article.html?Race-claim_officer_wins_
%A3300,000_but_is_gagged&in_article_id=401709&in_page_id=34&in_a_source=.
38
Nissan losses unfair dismissal case, 03/03/2006 [last update], Personneltoday [HP online],
available: http://www.personneltoday.com/articles/2006/03/03/34222/nissan-loses-unfair-
dismissal-case.html.
Pearson Education Limited, Essex,
Richard L. Daft (2003) Management 6th Edition pp406
Summary of the Law on Unfair Dismissal and Redundancy, Thompsons [HP online],
available: http://www.thompsons.law.co.uk/ltext/l1020001.htm. 04/08/09 14.30
Business Link, Practical advice for business, ‘Dismissal’, [HP online], available:
http://www.businesslink.gov.uk/bdotg/action/detail?
r.l1=1073858787&r.l3=1074200615&r.lc=en&r.t=RESOURCES&type=RESOURCES&item
Id=1073793716&r.i=1073793715&r.l2=1073876974&r.s=m. 30/07/09
The Journal Online © 2009, available at: http://www.journalonline.co.uk/ (accessed on: 04

Aug. 2009)
The Lawyer Group © 2009, a division of Centaur Media plc, “The Lawyer”, available at:
http://www.thelawyer.com/ (Accessed on 04 Aug. 2009)
Employment Law Journal, © 2009 available at: http://www.legalease.co.uk/index.php?
page=shop.product_details&flypage=shop.flypage&product_id=25&category_id=21&manuf
acturer_id=0&option=com_virtuemart&Itemid=1&vmcchk=1 (Accessed on 04 Aug. 2009)
Unfair Dismissal, Desktop Lawyer [HP online], available:

http://www.desktoplawyer.co.uk/dt/browse/law/index.cfm?
fuseaction=ViewContent&sid=75950&aid=34866 accessed 04/08/09 15.00
39

Managing Human Capital Assignment: London School of Commerce

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Managing Human Capital Assignment: London School of Commerce

Transféré par

Droits d'auteur :

Formats disponibles

London School of Commerce

Managing Human Capital

I – Introduction ............................................................................................... ...................04

II – Product Market ..................................................................................................05

III – Labour Market ............................................................................................................08

IV – Internal Labour Market ..............................................................................................10

V – Collective Bargaining ....................................................................................................11

Part B - Managing Dismissals Properly

VII - Dismissal Cases .......................................................................................................29

Figures 1.1 The Matching model of HRM

Figure 2.1 A model of factors influencing pay level

Labour market Product market Organization

External pay level policy

Case 1: City Bank

Case 2: Blatter defends Ronaldo fee

III – Labour markets

Source: Management by John Naylor, 2004, p 470

Case 4: Difference of labour market in different countries

Case 5: Legal and industrial factors

IV – Internal Labour market

‘Collective bargaining is a process of negotiation undertaken between employers’ federations

Case 8: British Airways: BA braces for union showdown

Case 10: Volkswagen Group

Case 11: Transport of London

Figure 4 – Median Salary by job in US

Case 13: Intel

Case 14 – When less is more

Case 15 – Staples Limited

Beardwell, I & Holden, L., 2001, ‘Human Resource Management: A Contemporary

Metro, ‘Blatter defends Ronaldo fee Saturday’ , June 13, 2009

Monir H. Tayeb, 2005, ‘International Human Resource Management: A Multinational

SalarySurvey for Industry – Information Technology (IT) Services (United States). HP

Baron, A. and Armstrong, M., 2005, ‘Managing Performance: Performance Management in

Beardwell, I & Holden, L., 2001, ‘Human Resource Management: A Contemporary

Metro, ‘Blatter defends Ronaldo fee Saturday’ , June 13, 2009

Monir H. Tayeb, 2005, ‘International Human Resource Management: A Multinational

SalarySurvey for Industry – Information Technology (IT) Services (United States). HP

Figure 1.1 Three types of downsizing strategies

Workforce reduction Work redesign Systemic

Focus Headcount Jobs, levels, units Culture

Eliminate People Work Status quo

Implementation Quick Moderate Extended

Source: Human Resource Management (1994), Volume 33, No2, Cameron

• Verbal/ oral first written warning/improvement notice

Organizations and Employers should set up specific disciplinary warnings. Typical

IV – Termination at Will and Wrongful Discharge

V – Grounds for Dismissal

• Unsatisfactory performance means persistent failure to perform assigned duties or to

VI – Avoiding Wrongful Discharge Suits

Avoiding wrongful discharge suits requires a two-pronged approach. First, create

VII – Layoffs, Downsizing, and the Plant Closing Law

Bumping/Layoff procedures- As noted above, layoff generally refers to having selected

Case 2 – Disable Discrimination

Case 3 – Positive discrimination

Case 4: Race discrimination

Case 6: Racial Discrimination

Analysis: No organisation should practise racial discrimination as it is not a healthy flow.

Case 9 – Western Bank

Case 10 – A Secretary in a Virginia

ACAS April 2009 Code of Practice, available: http://www.acas.org.uk/CHttpHandler.ashx?

London Evening Standard, 05/11/09 [last update], [HP online], available:

Megginson, L., 1972, ‘Personnel and Human Resources Administration: A Behavioural

Richard L. Daft (2003) Management 6th Edition pp406