Mullins L.J. Management and organisational behaviour, Seventh edition

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Traditionally, employee relations in Britain has been characterised by the concept of

free collective bargaining between employees and employers. However, in recent years

this philosophy has been underpinned by increasing amounts of employment law.

The

substance of British laws is also increasingly being influenced by the impact of EU legisla-

tion. Until the 1960s the law governing terms and conditions was based almost entirely

on the concept of the contract of employment and attracted little statutory intervention.

However, this area of law has been significantly extended, introducing new statutory

rights for both those in employment and those seeking employment. Employees can

seek redress through a tribunal system, and have rights concerning a range of issues from

relatively minor matters such as time off for public duties, to the more important

employment protection rights such as the right not to be unfairly dismissed.

The main statutory employment rights are now found in two consolidating Acts: the

Employment Rights Act 1996; and the Industrial Tribunals Act 1996 (now called

employment tribunals). Other important legislation includes: Employment Relations

Act 1996; Employment Act 2002; Data Protection Act 1998; Public Disclosure Act 1998;

Human Rights Act 1998; Freedom of Information Act 2000. In addition there is a con-

siderable amount of anti-discrimination legislation affecting employment. The main

acts are: Equal Pay Act 1970 as amended; Sex Discrimination Act 1975 as amended;

Race Relations Acts 1976 and 2000; and Disability Discrimination Act 1995. Age dis-

crimination in employment is also set to be outlawed in 2006.

Important as these acts have been in regulating the employment relationship, two

recent pieces of legislation, the Minimum Wage Act 1998 and Working Time

Regulations, directly affect the central focus of the employment contract. Of particular

significance is the fact that the legislation applies to workers and not just employees,

thus covering those on casual contracts, freelance workers and those employed via

employment agencies.

The introduction of a National Minimum Wage marked a major departure for the

setting of terms and conditions of workers in the UK. In general, prior to its introduc-

tion, pay rates had been set either unilaterally by employers, often on the basis of the

‘market rate’ for the particular occupation, or through the, declining, process of collec-

tive bargaining with recognised trade unions. Under this piece of legislation the United

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Figure 19.7 Effective employment relations: combination of legal and behavioural dimensions

Central focus

of the

employment

contract

Kingdom has, for the first time, statutorily enforceable minimum pay rates for all

workers who are 18 or more years of age. The legislation prescribes two main rates of

hourly pay, one for ‘young workers’ – those between 18 and 21 years of age, and one

for adult workers – those aged 22 and over.

The Working Time Regulations were introduced in order to comply with a

European Union Directive which sought to ensure that workers were given appropriate

rest from work. The details are complex but the principal provisions are:

■ a limit on weekly working time to 48 hours (averaged over a 17-week reference

period);

■ a limit on night workers’ normal working time of eight hours (again averaged over a

17-week period);

■ a minimum daily rest period of 11 hours in addition to a day off each week;

■ a minimum rest break of 20 minutes after six hours’ work;

■ an entitlement to four weeks’ paid annual leave (which can include payment for

bank or public holidays).

These legal provisions, inter alia, set minimum hourly rates of pay, limit weekly maxi-

mum hours of work, and require workers to receive minimum paid holidays. Taken

together, therefore, they have the potential to change the traditional ‘voluntarist’

nature of the employment relationship where employers were free to agree these

important matters either directly with workers or through their workers’ representative

trade union.

The period leading up to the introduction of these two legal measures was charac-

terised by considerable criticism. A number of arguments were put forward suggesting

that they would have a serious impact on jobs and businesses. First, it was argued that

they would lead to increased unemployment as firms sought to absorb the costs of

their introduction by reducing the size of their workforce. Second, that business would

seek to pass on costs by increasing prices, thus causing an increase in the rate of infla-

tion. Third, and more generally, the legislation would make UK companies less

competitive in world markets.

Despite these concerns evidence suggests that the consequences have been limited.

In a study of one low pay sector, the hospitality industry, Adam-Smith et al. suggest that

a number of factors may have lessened the impact of the minimum wage on busi-

nesses. The tightening labour market with the consequential competition amongst

employers for staff has pushed up wage rates and this has had a more significant effect

than minimum wage legislation. They also note that the rates were introduced at a rel-

atively ‘modest’ level and were well publicised in advance of their introduction.

Subsequent increases have been announced with a relatively long lead time. Thus

employers have had time to adjust to the need to increase pay rates.

In a similar vein,

Goss and Adam-Smith suggest that the limited impact of the Working Time Regulations

can be attributed to three main factors. First, the provisions on rest and night work are

largely already operated by many businesses. Second, some firms have chosen not to

comply with the requirements, for example, on holiday entitlement. Third, the 48-

hour working week limit can be disregarded if the employer and worker agree in

writing that staff will work longer than this. It appears that many companies have

utilised this ‘opt-out’ to allow long working hours to continue to exist.

Behavioural dimensions

Whilst the observance of legal rules and regulations is clearly a necessary part of effec-

tive employment relations this does not, by itself, make for a harmonious environment

at work. Legal dimensions help to regulate the working relationships of people within

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PART 7 MANAGEMENT OF HUMAN RESOURCES

Impact on

operations and

profitability

the organisation. But rules and regulations do not by themselves ensure that disputes

will be settled amicably. Human behaviour cannot be made to conform to prescribed

rules and regulations just because such rules and regulations exist.

Harmonious employee relations can only be effective if sustained within a generally

good relationship between management and staff, with a willing commitment from both

sides.

Effective managers need to take note of both legal and behavioural perspectives,

and to adopt a balanced view when making decisions that affect the employment rela-

tionship. Notwithstanding any legal obligations, the employer–employee relationship

demands that attention be given to those factors which influence the behaviour of

people at work, the psychological contract and the style of managerial behaviour.

For example, there is a general duty placed on an employer to disclose, on request, to

authorised representatives of independent trade unions information for the purposes

of collective bargaining and which it would be good industrial relations practice to

disclose. However, many organisations now consider the broader behavioural consider-

ations and choose as a matter of policy to report fully, and in non-technical terms,

wider details of their financial results and performance direct to all employees.

Another important example is the issue of discipline at work and in particular the

process relating to termination of employment contracts. Managers need to be fully

aware of the legal dimensions, including the criteria necessary before an employee can

claim that they have been unfairly treated, the claims and procedures, the reasons that

can constitute grounds for unfair dismissal proceedings and the remedies for unfair dis-

missal. But, in addition and equally important, managers also need to be aware of the

possible behavioural consequences, including adverse effects on the motivation and

morale of staff, and their future commitment and level of performance.

A further example of particular aspects of employee relations policy is the attitude

and response of organisations to people with AIDS. There are a number of factors that

make the issue of HIV/AIDS relevant to the operation of organisational processes.

These may be classified briefly under five headings: the epidemic and those affected;

actual and perceived risks of transmission; the workplace as an arena of discrimination

and prejudice; the workplace as an arena for support and assistance; and work as a

means of economic survival.

Another major issue at present is in respect of substance

misuse such as drugs and alcohol.

It is sometimes suggested that in many organisations the responsibility for employ-

ment relations still lies with the line managers who are often sceptical or even hostile

towards personnel ideas and techniques, and who frequently reject the concept of an

employment relations policy because it hampers their work and limits their flexibility.

As with other aspects of the HRM function it is important that line managers are

involved, at least to some extent, with employee relationships. But there must be good

communications and close consultation with the HR department. There must be team-

work and a concerted organisational approach to the management of employment

relations. This is made easier when top management take an active part in fostering

goodwill and co-operation between departments and with official union representa-

tives. Top management should agree clear terms of reference for both the HR manager

and line managers within the framework of sound personnel policies.

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Examples

RESPONSIBILITY FOR EMPLOYMENT RELATIONS

The field of international human resource management comprises two distinct areas:

(i) the management of employees in global businesses operating across national

boundaries and (ii) the comparison of human resource management activities and poli-

cies in different societies. Budhwar identifies four approaches to international staffing

which may help to explain how businesses operating across national borders choose to

co-ordinate their human resource management policies.

1 Ethnocentric approach. Here managerial positions are normally filled by staff from

the ‘parent’ country. It is likely that within this approach the home country’s

approach will be dominant with subsidiaries operating standardised HRM practices.

2 Polycentric approach. Under this heading local managers from the host country

are more usually appointed. The approach may be useful when a global strategy is to

be implemented on a regional basis. It can also be seen when a subsidiary develops

local HRM practices.

3 Geocentric approach. In this approach managers are recruited from within the

company or from outside with no importance attached to their nationality. It could

be argued that such managers may possess greater cultural flexibility.

4 Regiocentric approach. Recruitment of managers is undertaken on a regional basis.

This is more likely when subsidiaries operate as part of a regional strategy and HRM

practices are, in turn, formulated regionally.

Increasingly, global corporations are both willing and able to adopt a flexible approach

to staffing. A report in the Daily Telegraph in May 2003 examined the shift of call

centre operations from the UK and USA to new locations, in particular the Indian sub-

continent. Identifying specific examples of this phenomenon, the report notes that:

‘Centres in India handle the process of student loans, queries about utility bills for

Powergen and flight bookings for British Airways. A series of other British companies,

including BT, HSBC, Prudential and Aviva, are shifting their call centres to the world’s

biggest democracy.’

This report goes on to suggest that the transfer of jobs may prove to be a worldwide

trend on a scale greater than previously envisaged, citing the example of Standard

Chartered Bank, which has transferred the back office of its operations in more than 50

countries to consolidate in two large processing centres in Chennai, India and Kuala

Lumpur. In indicating the powerful pressures to reconsider global employment pat-

terns the Daily Telegraph article cites the Chairman of a British bank who summarises

his perspective as follows: ‘We have to relocate these functions to India. Not only are

the running costs a fraction of what they would be here, but also the quality of the

workforce is significantly better. Taking advantage of that is a no-brainer.’

Comparison of HRM in different societies

Human resource management practices, it is suggested, are influenced by the culture of

the society in which they take place, being affected by both specific culturally derived

attitudes and institutional factors.

To take the one example of recruitment and selection, Torrington suggests that ‘the

recruitment process is largely determined by the conventions and legislative require-

ments of the country in which it takes place’.

In examining recruitment and selection

methods in the USA, Francesco and Gold note that ‘when making a hiring decision,

people in an achievement-oriented country consider skills, knowledge and talent’.

This individual orientation will influence the selection methods typically chosen in

such a society. Recruitment and selection in the United States has also been significantly

affected by the relatively extensive laws prohibiting discrimination in employment,

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PART 7 MANAGEMENT OF HUMAN RESOURCES

INTERNATIONAL DIMENSIONS OF HRM

which can, in turn, be seen as an expression of a culture which places particular value

on individual characteristics. It is also possible to view the largely American-derived bat-

tery of psychometric measures within this overall cultural framework.

It may also be that culturally based perceptions take effect in recruitment and selec-

tion in individual cultures. An executive from the Swedish company IKEA, cited in

Schneider and Barsoux, provides one example of a culturally specific preference in this

regard in the following quote. ‘The most important quality for an Ikean is odmjukhet –

a Swedish word that implies humility, modesty and respect for one’s fellow man. It

may be hard to translate, but we know it when we see it.’

Grahl and Teague attempt to explain differences in the area of human resource man-

agement between countries in Europe with reference to a model contrasting

competitive and constructive flexibility along a continuum.

Competitive flexibility as a concept states that national competitiveness may best

be achieved by minimising restrictions on managerial prerogative – that is, implying a

minimal level of legislation and the removal of barriers to workforce flexibility. This

approach may be compared to some of the features of HRM as it evolved in the United

States. In Europe, Grahl and Teague suggest that the UK is the country which is located

furthest at the competitive end of their model.

Constructive flexibility in contrast, while acknowledging the need for greater flexi-

bility in all its dimensions – numerical, temporal and functional – aims to move

towards this desired aim without exacerbating divisions within society. Here work

employees may enjoy extensive legal rights and protection and social costs to employ-

ers may be greater than in countries more closely associated with competitive

flexibility. Constructive flexibility also presumes a social partnership model of co-

operation within the enterprise whereby managers are required to consult with

employee representatives before making decisions or conceivably to act jointly in con-

junction with these representatives. Grahl and Teague find Germany and Sweden to be

the two European countries most closely corresponding to constructive flexibilty.

It is appropriate at this point to examine the concept of statutory industrial democracy

which is prevalent in many European countries. This will be of benefit to organisations

contemplating expansion into the overseas market. It may also be noted that increas-

ingly the European Union is seeking to harmonise employment practices among

member states, and the whole notion of joint decision-making is already established in

the majority of countries in western Europe.

The German system of industrial democracy is the most comprehensive and has

tended to be used by commentators as a model of its kind. The system comprises both

the works council (Betriebsrat), and representation on boards of directors, the super-

visory board (Aufsichtsrat) and the executive board (Vorstand).

Works councils exist in organisations covering all sectors of the economy including

both the private and public sector. Works council representatives are elected by fellow

workers. They do not, however, stand on behalf of trade unions, and in elections stress

their individual qualities and experiences. The works council has three rights:

■ the right of information – the works council has the right to be given information

concerning the performance and future prospects of the organisation;

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INDUSTRIAL DEMOCRACY IN EUROPEAN COUNTRIES

THE GERMAN SYSTEM

The works

council

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PART 7 MANAGEMENT OF HUMAN RESOURCES

■ the right of consultation – owners and managers must consult the works council

over a range of strategic matters including investment, and the acquisition of new

premises and the closure of existing units; and

■ the right of co-determination – the works council has the power to formulate cer-

tain policies jointly with managers.

The third and most extensive power relates essentially to issues concerning the man-

agement of personnel including the working day, holiday arrangements, shift working,

promotion, dismissal, and welfare and social facilities. As an example, the works coun-

cil has the right to participate in the selection of new members of staff and can veto

appointments. This power of veto is constrained, however, since it can only operate in

the light of criteria agreed in advance. Nevertheless, the works council does take an

active part in personnel management in German organisations.

The supervisory board may include employee representatives. In certain industries

such as coal, iron and steel, workers make up 50 per cent of the membership of the

board. In other sectors, one-third membership is common. The supervisory board has

the power to appoint members of the executive board and can veto its decisions.

The composition of the executive board is most interesting in German organisations

since it includes a labour director (Arbeitsdirektor). The labour director can only be

appointed by a two-thirds majority of the worker representatives on the supervisory

board. French shows how this director may be a worker representative, but equally may

be a career personnel manager.

Lawrence suggests that increasingly personnel man-

agers are labour directors and are thus represented on both boards of directors.

It can be seen that in Germany, personnel managers are constrained by law from

acting unilaterally, and are required to work jointly with the workforce representatives.

Lawrence concludes that the personnel function in Germany is marked by a high

degree of both legalism and formalism with laws, documents and written agreements

being more salient than in Britain. The same author gives us a sense of the flavour of

personnel management in that country as follows:

The works council is an important reference point for the German personnel manager and much

of his time is spent in negotiation or discussion with the council.

The ultimate measure of the effectiveness of the HRM function is the contribution it

makes to meeting the objectives of the business and to improved organisational per-

formance. But achievement in the area of HRM is difficult to measure and it is not easy

to establish satisfactory methods of assessment. There is also the more general problem

of assessing managerial work where the end-product results from the efforts of other

people.

Cost is obviously a consideration but should not be viewed in isolation. Not

every activity in the organisation can be identified clearly as making a direct contribu-

tion to profitability. A balance should be maintained between the more easily

identified financial costs of the HRM function and the less readily apparent but very

important long-term benefits which also make a positive contribution to the effective-

ness of the organisation.

For example, Pfeffer points out that a major problem with measurements of HR is that

they often use measures produced by the organisation’s accounting systems and focus

attention on what is most easily measured, for example costs of operating the HRM

function or number of people processed through the recruitment process. However,

such measures do not tell exactly what is being done with the resources or if the money

Representation

on boards of

directors

Negotiation

and discussion

EFFECTIVENESS OF THE HRM FUNCTION

is spent wisely. They measure specific parts of the organisation and the time span of

many of the measures is extremely short term. Pfeffer challenges the idea that HR prac-

tices should be justified against ‘bottom-line’ cost-versus-benefit measures. These tend

to measure too many things to be effective in influencing individual behaviour.

The contributions from an effective HRM function are not always readily apparent

nor are they necessarily easy to identify. Account should be taken of intangible benefits

such as the morale and job satisfaction of staff as well as their attitudes, behaviour and

performance. Over a period of time, however, some quantified measures may serve to

provide management with an indication of effectiveness. Possible examples include

staffing costs, turnover and stability indexes; promotions and staff development; errors

in work; levels of absenteeism and sickness, timekeeping, accidents at work; the

number of discipline or grievance hearings, dismissals, labour disputes, employment

tribunal cases; complaints from suppliers or customers.

Good HR policies and employment relations

According to Slater: ‘Recognition that employees form the lifeblood of a company has

highlighted the strategic role that the human resources department should now play.’

For the first time HR professionals have the opportunity to add value to a business.

There is a shift in emphasis in business and the bottom line is no longer all-important.

Greater attention is placed on issues such as how well a company executes its business

plan, employee morale, corporate culture and organisational structure. Although the

customer is still king, companies realise that it is their employees who deliver the per-

formance of value to the customer.

Nowhere has this change impacted more greatly than in human resources. The need to focus

more on internal ‘customers’ has put pressure on companies to release HR staff from a largely

administrative role to a more strategic one that addresses increased productivity, employee com-

mitment and career advancement. Only by addressing these issues will a company truly be able

to leverage employee power … Freed from many routine tasks, the HR department will be able to

devote more time to adding value to the business.

However the HRM function is organised or evaluated, proper attention to the establish-

ment of good HR policies and employment relations will help to improve the

efficiency of the workforce and standards of service to customers. Full use should be

made of specialist HR staff, the involvement of line managers and modern methods

and processes.

Browning, for example, lists ten ways to make HR effective:

1 Be the catalyst for making things happen.

2Avoid being the corporate soft touch.

3 Understand the whole business.

4 Keep people-management systems simple.

5 Remember line managers manage people, not HR.

6Work with, not above, line managers.

7 Be super-efficient in the transactional stuff.

8 Be leaders in the transformational stuff.

9 Help the business to manage change.

10 Accept that good ‘people ideas’ exist outside HR.

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■ An essential part of the process of management is that proper attention be given to

the efficient use of resources, in particular human resources. In recent years there has

been an increasing tendency to use the term ‘human resource management’ (HRM) to

replace ‘personnel management’. Whatever the choice of terminology, it is people who

are the most important asset of any organisation. Effective HRM and the successful

implementation of personnel activities are essential ingredients of improved organisa-

tion improvement.

■ Success in the field of human relationships stems from good HRM policies and prac-

tices which should be based on underlying philosophies of managerial behaviour and

employee relations. The range and scope of HRM activities are wide, and a shared respon-

sibility among top management, line managers and supervisors, and the HR manager. As

an element function, HRM is part of the generality of management and part of the

responsibility of all managers and supervisors. The personnel function can be seen as

operating at two levels, the organisational level and the departmental or unit level.

■ One major area of HRM work of particular relevance to the effective management

and use of people is training and development. Training is a key element of improved

performance and offers a number of potential benefits for both the individual and the

organisation. Too often, however, training is seen as a low-priority activity. In order to

secure the full benefits of training there must be a planned and systematic approach to

the effective management of training, and a continuous commitment to training stan-

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PART 7 MANAGEMENT OF HUMAN RESOURCES

CRITICAL REFLECTIONS

‘Why is my job as human resource manager not given the full recognition it deserves, and why do

other managers question the contribution of the HR department to the organisation?’

‘Because there is no clearly defined role or focus. You may have changed names from person-

nel but until you can produce hard performance measures for your department, is it any wonder

line managers are sceptical and suspicious of your true value to the organisation?’

What are your own views?

Human resource inputs are obviously key to organisational success, as without people there can

be no organisational activity. Despite hierarchical definitions of roles and responsibilities within

organisations, which differentiate employer and employee, manager and worker, all make funda-

mental contributions to the organisation’s activity through their efforts. These efforts must be as

effective and efficient as possible in order for operational costs to be minimised, while outputs

and profits are maximised.

Capon, C. Understanding Organisational Context: inside and outside organisations, Second edition, Financial Times

Prentice Hall (2004), p. 8.

How would you attempt to secure the optimum contribution and effort from all people

within a hierarchically structured organisation?

‘Having a separate HR department only leads to poor line managers abdicating responsibility for

their people.’

Debate.

SYNOPSIS

dards. Investors in People provides a national framework for training and development

of people to achieve business goals.

■ One way to review the performance and potential of staff is through a formal

appraisal system. An effective performance appraisal system offers a number of poten-

tial benefits to both individuals and the organisation but there are a number of

important questions to be addressed. Consideration must be given to the design and

implementation of the system, establishing the system, methods of appraisals and

potential problem areas. It is particularly important that a formal appraisal system does

not detract from the manager’s responsibility for reviewing performance on a day-to-

day basis.

■ Sound HRM policies help to foster good employment relations. It is necessary to

take account of the institutions and parties involved, and their ideologies and motives.

Good managerial strategies are important for effective employment relations which are

founded on a combination of legal and behavioural dimensions. There are two major

and contrasting perspectives of work organisations, and the explanation and outcomes

of conflict – the unitary and the pluralistic perspectives. These contrasting views influ-

ence the nature of employee relationships and the management of human resources.

■ It is important that line managers are involved, at least to some extent, with the

responsibility for employee relations. Proper attention to the HRM function and

employee relations will help the development of good human relations at work. HRM

practices are influenced by the culture of the society in which they take place.

Increasingly the European Union is seeking to harmonise employment practices

among member states. The ultimate measure of effectiveness of the HRM function is

the contribution to improved organisational performance.

CHAPTER 19 HUMAN RESOURCE MANAGEMENT

783

MANAGEMENT IN ACTION 19.1

The Investors in People Standard

Investors in People is the national Standard which sets a level

of good practice for training and development of people to

achieve business goals. The Standard was developed during

1990 by the National Training Task Force in partnership with

leading national business, personnel, professional and

employee organisations such as the Confederation of British

Industry (CBI), Trades Union Congress (TUC) and the Institute

of Personnel and Development (IPD). The work was sup-

ported by the Employment Department. The experiences of

the UK's most successful organisations, large and small, rep-

resenting all sectors of the UK economy, were very positive

and the Standard received the full endorsement of the wide

range of interested parties.

The Standard provides a national framework for improving

business performance and competitiveness, through a

planned approach to setting and communicating business

objectives and developing people to meet these objectives.

The result is that what people can do and are motivated to do

matches what the organisation needs them to do. The

process is cyclical and should engender the culture of contin-

uous improvement.

The Investors in People Standard is based on four key

principles:

■ Commitment

Commitment to invest in people to achieve business

goals.

■ Planning

Planning how skills, individuals and teams are to be devel-

oped to achieve these goals.

■ Action

Taking action to develop and use necessary skills in a

well-defined and continuing programme directly tied to

business objectives.

■ Evaluating

Evaluating outcomes of training and development for indi-

viduals’ progress towards goals, the value achieved and

future needs.

These four key principles are a cyclical process and are broken

down into 12 indicators, against which organisations wishing to

be recognised as an ‘Investor in People’ will be assessed.



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PART 7 MANAGEMENT OF HUMAN RESOURCES

ACHIEVING THE STANDARD

Being recognised as an ‘Investor in People’ involves a

number of steps:

■ Understanding the Standard and its strategic implications

for your organisation.

■ Undertaking a review against the Standard to identify any

gaps in current practice.

■ Making the commitment to meet the Standard and com-

municating that commitment to all members of staff.

■ Planning and taking action, to bring about change.

■ Bringing together the evidence for assessment against the

Standard.

■ Achievement or recognition as an Investor in People.

Management in Action 19.1 continued

Principles Indicators Evidence

Commitment 1 The organisation is committed Top management can describe strategies that they have

An Investor in People to supporting the development put in place to support the development of people in

is fully committed to of its people. order to improve the organisation’s performance.

developing its people Managers can describe specific actions that they

in order to achieve its have taken and are currently taking to support the

aims and objectives. development of people.

People can confirm that the specific strategies and

actions described by top management and managers

take place.

People believe the organisation is genuinely committed

to supporting their development.

2 People are encouraged to People can give examples of how they have been

improve their own and other encouraged to improve their own performance.

people’s performance. People can give examples of how they have been

encouraged to improve other people’s performance.

3 People believe their People can describe how their contribution to the

contribution to the organisation organisation is recognised.

is recognised. People believe that their contribution to the organisation

is recognised.

People receive appropriate and constructive feedback

on a timely and regular basis.

4 The organisation is committed Top management can describe strategies that they

to ensuring equality of have put in place to ensure equality of opportunity in the

opportunity in the development development of people.

of its people. Managers can describe specific actions that they have

taken and are currently taking to ensure equality of

opportunity in the development of people.

People confirm that the specific strategies and actions

described by top management and managers take place

and recognise the needs of different groups.

People believe the organisation is genuinely committed

to ensuring equality of opportunity in the development of

people.

Planning 5 The organisation has a plan The organisation has a plan with clear aims and objectives.

An Investor in People is with clear aims and objectives People can consistently explain the aims and objectives

clear about its aims and which are understood by of the organisation at a level appropriate to their role.

its objectives and what everyone. Representative groups are consulted about the

its people need to do organisation’s aims and objectives.

to achieve them.

The Investors in People Standard