Human Resource Management 11th Edition Chapter 4 JOB ANALYSIS, STRATEGIC PLANNING, AND HUMAN RESOURCE PLANNING Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-1 HRM in Action: Social Networking: Getting to Know Each Other • Web site serves as virtual community, where group of people use Internet to communicate with each other about anything and everything • Because of rapid growth of sites, companies are having to determine if they should permit employees to use public sites at work such as MySpace and Facebook to communicate with coworkers or does company want to control access Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-2 Definitions • Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization • Job - Consists of group of tasks that must be performed for organization to achieve its goals • Position - Collection of tasks and responsibilities performed by one person; there is a position for every individual in organization Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-3 Definitions (Cont.) • A work group consisting of a supervisor, two senior clerks, and four word processing operators has 3 jobs and 7 positions. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-4 Questions Job Analysis Should Answer • What physical and mental tasks does worker accomplish? • When is job to be completed? • Where is job to be accomplished? • How does worker do job? • Why is job done? • What qualifications are needed to perform job? Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-5 Job Analysis: A Basic Human Resource Management Tool Staffing Tasks Responsibilities Duties Training and Development Performance Appraisal Compensation Safety and Health Job Descriptions Job Analysis Job Specifications Employee and Labor Relations Legal Considerations Knowledge Skills Abilities 4-6 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Reasons For Conducting Job Analysis • Staffing - Haphazard if recruiter does not know qualifications needed for job • Training and Development - If specification lists particular knowledge, skill, or ability, and person filling position does not possess all necessary qualifications, training and/or development is needed • Performance Appraisal - Employees should be evaluated in terms of how well they accomplish duties specified in their job descriptions and any other specific goals that may have been established • Compensation - Value of job must be known before dollar value can be placed on it Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-7 Reasons For Conducting Job Analysis (Cont.) • Safety and Health - Helps identify safety and health considerations • Employee and Labor Relations - Leads to more objective human resource decisions • Legal Considerations - Having done job analysis important for supporting legality of employment practices Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-8 Summary of Types of Data Collected Through Job Analysis • Work Activities - Work activities and processes; activity records (in film form, for example); procedures used; personal responsibility • Worker-oriented activities - Human behaviors, such as physical actions and communicating on job; elemental motions for methods analysis; personal job demands, such as energy expenditure Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-9 Summary of Types of Data Collected Through Job Analysis (Cont.) • Machines, tools, equipment, and work aids used • Job-related tangibles and intangibles Knowledge dealt with or applied (as in accounting); materials processed; products made or services performed • Work performance - Error analysis; work standards; work measurements, such as time taken for a task Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-10 Summary of Types of Data Collected Through Job Analysis (Cont.) • Job context - Work schedule; financial and nonfinancial incentives; physical working conditions; organizational and social contexts • Personal requirements for job - Personal attributes such as personality and interests; education and training required; work experience Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-11 Job Analysis Methods • • • • • Questionnaires Observation Interviews Employee recording Combination of methods Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-12 Questionnaires • • • • Typically quick and economical to use Structured questionnaire to employees Problem: Employees may lack verbal skills Some employees tend to exaggerate significance of their tasks Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-13 Observation • Job analyst watches worker perform job tasks and records observations • Used primarily to gather information on jobs emphasizing manual skills • Used alone is often insufficient • Difficulty: When mental skills are dominant in a job Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-14 Interviews • Interview both employee and supervisor • Interview employee first, helping him or her describe duties performed • Then, analyst normally contacts supervisor for additional information Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-15 Employee Recording • Describe daily work activities in diary or log • Problem: Employees exaggerating job importance • Valuable in understanding highly specialized jobs Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-16 Combination of Methods • Usually use more than one method • Clerical and administrative jobs: questionnaires supported by interviews and limited observation • Production jobs: interviews supplemented by extensive work observations may provide necessary data Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-17 Other Methods Available for Conducting Job Analysis • Department of Labor Job Analysis Schedule • Functional Job Analysis • Position Analysis Questionnaire • Management Position Description Questionnaire • Guidelines-Oriented Job Analysis Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-18 Department of Labor Job Analysis Schedule • Structured job analysis questionnaire that uses a checklist approach to identify job elements • Focuses on general worker behaviors instead of tasks • Some 194 job descriptors relate to joboriented elements Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-19 Functional Job Analysis • Concentrates on the interactions among the work, the worker, and the organization • Modification of the job analysis schedule • Assesses specific job outputs and identifies job tasks in terms of task statements Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-20 Position Analysis Questionnaire • Uses a checklist approach to identify job elements • Focuses on general worker behaviors instead of tasks • 194 job descriptors relate to job-oriented elements • Each job being studied is scored relative to the 32 job dimensions Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-21 Management Position Description Questionnaire • Designed for management positions • Uses checklist to analyze jobs • Has been used to determine training needs of individuals who are slated to move into managerial positions • Has been used to evaluate and set compensation rates for managerial jobs and to assign jobs to job families Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-22 Guidelines-Oriented Job Analysis • Step-by-step procedure for describing the work of a particular job classification • Obtains the following types of information: (1) machines, tools, and equipment; (2) supervision; (3) contacts; (4) duties; (5) knowledge, skills, and abilities; (6) physical and other requirements; and (7) differentiating requirements Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-23 Conducting Job Analysis People who participate in job analysis should include, at a minimum: • Employee • Employee‟s immediate supervisor Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-24 Job Description • Document that states tasks, duties, and responsibilities of job • Vitally important job descriptions are both relevant and accurate Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-25 Items Frequently Included In a Job Description • • • • • Major duties performed Percentage of time devoted to each duty Performance standards to be achieved Working conditions and possible hazards Number of employees performing the job, and to whom they report • The machines and equipment used on job Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-26 Content of a Job Description • Job Identification - Job title, department, reporting relationship, and job number or code • Job Analysis Date - Aids in identifying job changes that would make description obsolete • Job Summary - Concise overview of job • Duties Performed - Major duties Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-27 O*NET, the Occupational Information Network • Comprehensive government-developed database of worker attributes and job characteristics • Primary source of occupational information • Replaces Dictionary of Occupational Titles (DOT) Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-28 Job Specification • Job Specification - Minimum qualifications person should possess to perform particular job • Should reflect minimum, not ideal qualifications for particular job • Job specifications are often included as major section of job descriptions Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-29 Problems If Job Specifications Are Inflated • May systematically eliminate minorities or women from consideration • Compensation costs will increase • Job vacancies will be harder to fill Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-30 Timeliness of Job Analysis Rapid pace of technological change makes need for accurate job analysis even more important now and in the future. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-31 Job Analysis for Team Members • With team design, there are no narrow jobs • Work departments do is often bundled into teams • Last duty shown on proverbial job description, “And any other duty that may be assigned,” is increasingly becoming THE job description. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-32 Job Analysis and the Law • Equal Pay Act - Similar pay must be provided if jobs are not substantially different as shown in job descriptions • Fair Labor Standards Act - Employees categorized as exempt or nonexempt Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-33 Job Analysis and the Law (Cont.) • Civil Rights Act - Basis for adequate defenses against unfair discriminations charges in selection, promotion, and other areas of HR administration • Occupational Safety and Health Act - Specify job elements that endanger health or are considered unsatisfactory or distasteful by most people • Americans with Disabilities Act - Make reasonable accommodations for disabled workers Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-34 Trends & Innovations: Talent Management • Process of anticipating workforce needs, managing current workers, attracting highly skilled workers and integrating and developing them to achieve maximum workforce productivity • Basically talent management exists to support company objectives • Companies are going to have to be innovative as they attempt to recruit highly talented individuals Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-35 Strategic Planning • Strategic Planning - Process by which top management determines overall organizational purposes and objectives and how they are to be achieved • Strategic planning at all levels can be divided into four steps Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-36 Strategic Planning and Implementation Process Decide what is to be accomplished (purpose) Determine principles that will guide the effort MISSION DETERMINATION External Determining external conditions, threats, and opportunities Internal Determining competencies, strengths, and weaknesses within the organization ENVIRONMENTAL ASSESSMENT Specifying corporate-level objectives that are: • Challenging, but attainable • Measurable • Time-specific • Documented (written) OBJECTIVE SETTING STRATEGY SETTING Specifying and documenting corporate-level strategies and planning STRATEGY IMPLEMENTATION Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-37 Strategy Implementation • Leadership • Organizational Structure • Information and Control Systems • Technology • Human Resources Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-38 Human Resource Planning Systematic process of matching internal and external supply of people with job openings anticipated in the organization over a specified period of time Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-39 Human Resource Planning Process External Environment Internal Environment Strategic Planning Human Resource Planning Forecasting Human Resource Requirements Comparing Requirements and Availability Surplus of Workers Forecasting Human Resource Availability Demand = Supply Shortage of Workers No Action Restricted Hiring, Reduced Hours, Early Retirement, Layoffs, Downsizing Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Recruitment Selection 4-40 Definitions • Requirements forecast - Determining number, skill, and location of employees organization will need at future dates in order to meet goals • Availability forecast - Determination of whether firm will be able to secure employees with necessary skills, and from what sources Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-41 Forecasting Human Resource Requirements • Zero-based forecasting Uses current level as starting point for determining future staffing needs • Bottom-up approach - Each level of organization, starting with lowest, forecasts its requirements to provide aggregate of employment needs. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-42 Forecasting Human Resource Requirements (Cont.) • Relationship between Volume of Sales and Number of Workers Required • Simulation Models - Simulation is a forecasting technique for experimenting with real-world situation through mathematical model representing that situation. A model is abstraction of the real world. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-43 The Relationship of Sales Volume to Number of Employees Number of Employees 500 400 300 200 100 0 10 20 30 40 Sales (thousands) 50 60 4-44 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Forecasting HR Availability • Determining whether firm will be able to secure employees with necessary skills, and from what sources • Show whether needed employees may be obtained within company, from outside organization, or from combination of these sources Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-45 Use of HR Databases • Many workers needed for future positions may already work for firm. • Databases include information on all managerial and nonmanagerial employees. • Companies search databases within company to see if employees with needed qualifications already exist. Growing trend: Automatically notify qualified employees of new positions. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-46 Shortage of Workers Forecasted • Creative recruiting • Compensation incentives – Premium pay is one method • Training programs – Prepare previously unemployable people for positions • Different selection standards Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-47 Surplus of Employees • Restricted hiring – Employees who leave are not replaced • Reduced hours • Early retirement • Downsizing - Layoffs Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-48 Downsizing • Also known as restructuring and rightsizing • Reverse of company growing and suggests one-time change in organization and number of people employed • Typically, both organizational structure and number of people in the organization shrink for purpose of improving organizational performance Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-49 System Used In the Event of Downsizing • Unionized - Seniority usually is the basis • Union-free - Productivity and needs of the organization • Retention bonuses are used to entice terminated employees to remain for short periods of time to ensure continued services Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-50 Negative Aspects of Downsizing • Cost associated with low morale of those remaining • Layers removed, making advancement in organization more difficult • Workers may seek better opportunities, fearing they may be in line for layoffs Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-51 Negative Aspects of Downsizing (Cont.) • • • • Employee loyalty significantly reduced Institutional memory lost Remaining workers required to do more When demand for products/services returns, firm may realize it has cut too deep • May be an increase in number of discrimination lawsuits Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-52 Outplacement • Laid-off employees given assistance in finding employment elsewhere • Companies use outplacement to take care of employees by moving them successfully out of company rather than having to do it on their own Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-53 Succession Planning • Process of ensuring that qualified persons are available to assume key managerial positions once the positions are vacant • Goal is to help ensure a smooth transition and operational efficiency Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-54 Disaster Planning • Should focus on catastrophes that range from natural calamities such as hurricanes, earthquakes, and floods to man-made crises such as 9/11 • Always significant human resource issues to address • Hurricanes Katrina, Rita, Gustav, and Ike Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-55 Human Resource Information Systems (HRIS) Any organized approach for obtaining relevant and timely information on which to base HR decisions Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-56 HUMAN RESOURCE INFORMATION SYSTEM Goal: Integrate Core Processes into Seamless System Input Data Types Job Analysis Recruitment Selection/Job Posting/ Employee Referral T&D Performance Appraisal Compensation Output Data Uses* Employee Tracking Diversity Programs Hiring Decisions Training Programs/Elearning/Management Succession Contribute Toward Achievement of: Organizational Strategic Plans Benefits Safety Health Labor Relations Employee Relations Human Resource Information System Compensation Programs Benefit Programs (e.g., prescription drug programs) Health Programs (e.g., Employee Assistance Programs) Bargaining Strategies Employee Services Human Resource Management Plans *Manager and employee self-service is available. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-57 Manager Self-Service • Use of software and corporate network to automate paper-based processes requiring manager‟s approval, recordkeeping or input, and processes that support manager‟s job • MSS can help managers develop and grow staff and assist employees in determining their career paths and developing required competencies Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-58 Employee Self-Service (ESS) • Processes that automate transactions formerly laborintensive for employees and HR professionals • ESS applications can free up valuable HR staff time, reducing administrative time and costs Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-59 Job Design • Process of determining specific tasks to be performed, methods used in performing these tasks, and how job relates to other work in organization • Job enrichment - Basic changes in content and level of responsibility of job, to provide greater challenge to worker Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-60 Job Design (Cont.) • Job enlargement - Changes in scope of job to provide greater variety to worker • Reengineering - Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service and speed Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-61 A Global Perspective: India Getting the Job Done, but Differently • Indian companies invested $6 billion in U.S., which created jobs for Americans • Most Indian companies going global have adopted strategy of „not rocking the boat‟ at their newly acquired foreign operations • Gaining an appreciation of local laws and customs is important • Language and food choices often present challenges Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-62 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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