CHAPTER

2 Human Resource Planning

CHAPTER’S OUTLINE

• Introduction
• Meaning of HRP
• Planning at Different Levels
• Integrated Strategic Planning and HR
• Need for Human Resource Planning
• Objectives of HRP
• Determinants of HRP
• Process of Human Resource Planning
• Strategies for HR Planners
• Benefits of HR Planning
• Limitations of HR Planning
• Guidelines for Making HRP Effective

INTRODUCTION

Human resource planning is the most important managerial function of an organization. It ensures
three main things:
• It ensures adequate supply of human resources.
• It ensures proper quality of human resources.
• It ensures effective utilization of human resources.
 Human Resource Planning 37

(i) Human resource planning must incorporate the human resource needs in the light of
organizational goals.
(ii) Human resource planning must be directed towards clear and well-defined objectives.
(iii) Human resource plan must ensure that it has the right number of people and the right
kind of people at the right time doing work for which they are economically most suitable.
(iv) Human resource planning should take into account the principle of periodical
reconsideration of new developments and extending the plan to cover the changes during
the given long period.
(v) Human resource planning should pave the way for an effective motivational process.
(vi) Adequate flexibility must be maintained in human resource planning to suit the changing
needs of the organization.

HRP or MPP is essentially concerned with the process of estimating and projecting the
supply and demand for different categories of personnel in the organization for the years to
come.

HR PLANNING AT DIFFERENT LEVELS

Human Resource Planning (HRP) may be done at different levels and for different purposes.
National planners may make a HR plan at the national level whereas the strategists at a company
may make a HR plan at the unit level. The HR Planning thus operates at five levels.
1. HRP at National Level: HRP at the national level helps to plan for educational facilities,
health care facilities, agricultural and industrial development and employment plans, etc.
The government of the country plans for human resources at the national level. National
plans for HR forecast the demand and supply of human resources at the national level. It
also plans for occupational distribution, sectoral and regional allocation of human resources.
2. HRP at the Sectoral Level: HRP at the sectoral level helps to plan for a particular sector
like agriculture, industry, etc. It helps the government to allocate its resources to the
various sectors depending upon the priority accorded to the particular sector.
3. HRP at the Industry Level: HRP at the industry level takes into account the output/
operational level of the particular industry when manpower needs are considered.
4. HRP at the Unit Level: HR Planning at the company level is based on the estimation of
human resource needs of the particular company in question. It is based on the business
plan of the company. A manpower plan helps to avoid the sudden disruption of the company’s
production since it indicates shortages of particular types of personnel, if any, in advance,
thus enabling the management to adopt suitable strategies to cope with the situation.
5. HRP at the Departmental Level: HRP at the departmental level looks at the manpower
needs of a particular department in an organization.

INTEGRATED STRATEGIC PLANNING AND HR

HRP like production planning, financial planning and marketing planning needs to be
comprehensive, unified and integrated for the total corporation. HR manager provides inputs
38 Human Resource Management

like key HR areas, HR environmental constraints, HR capabilities and HR capability constraints

to the corporate strategists. Corporate strategists further communicate their needs and constraints
to HR manager. The corporate strategic plan and HR plan, thus incorporates both HR and other
functional plans.
Integrated strategic planning involves four steps.
Figure 2.1 shows these steps.

Step I
Development and knowledge of organization’s overall purpose or mission or goals and
objectives.

Ø
Step II
Providing inputs by HR manager regarding key HR areas, capabilities and constraints
of HR and environment to corporate strategists.

Ø
Step III
The corporate strategists in turn communicate their needs and constraints to the HR manager.

Ø
Step IV
Integration of HR and other functional plans.

Fig. 2.1. Integrated Strategic Planning and HR.

Corporate strategic planning involves four time spans.

(i) Long period (5 or more years): Strategic plans that establish company’s vision, mission
and major long-range objectives. The time span for strategic plans is usually considered
to be five or more years.
(ii) Intermediate period (3 years): Intermediate-range plans cover about a three-year period.
These are more specific plans in support of strategic plan.
(iii) Operation period (1 year): Operating plans cover about one year. Plans are prepared
month-by-month in sufficient detail for profit, human resources, budget and cost control.
(iv) Short period (day-to-day or week-by-week): Activity plans are the day-to-day and week-
by-week plans. These plans may not be documented. Table 2.1. presents the link between
strategic plan and human resource plan.

Hence, the strategic plan vs. HR plan can be at four levels:

(i) Corporate-level plan: Top management formulates corporate-level plan based on corporate
philosophy, policy, vision and mission. The HRM role is to raise the broad and policy
 Human Resource Planning 39

issues relating to human resources. The HR issues are related to employment policy,
HRD policies, remuneration policies, etc. The HR department prepares HR strategies,
objectives and policies consistent with company’s strategy.
(ii) Intermediate-level plan: Large-scale and diversified companies organize Strategic Business
Units (SBUs) for the related activities. SBUs prepare intermediate plans and implement
them. HR managers prepare specific plans for acquiring future managers, key personnel and
total number of employees in support of company requirements over the next three years.
(iii) Operations plan: Operations plans are prepared at the lowest business profit centre level.
These plans are supported by the HR plans relating to recruitment of skilled personnel,
developing compensation structure, designing new jobs, developing, leadership, improving
work life, etc.
(iv) Short-term activities plan: Day-to-day business plans are formulated by the lowest level
strategists. Day-to-day HR plans relating to handling employee benefits, grievances,
disciplinary cases, accident reports, etc. are formulated by the HR managers.

Integration of business planning and HRP is shown in Table 2.1 and Figure 2.2.
Table 2.1: Linking Business Planning and HR Planning
Planning Level Business Planning Link Human Resource
and Horizon Process Planning Process
Strategic Corporate philosophy Issues Analysis of issues raised by
planning value system, and analysis external factors
(5 or more years) policies. Employment demand
Goals and objectives. projection
Key success factors. Manpower supply analysis
Product market scope and projection
competitive edge
allocation of resources
Intermediate- Organization evolution. Programming Forecasting total staffing
range planning Programmes required to requirements level.
(3-5 years) implement strategy. Forecasting number of
Deployment of resources. managers and key
Acquisitions, divestments, personnel. Forecasting net
and internal development changes in managers and
of product lines. key personnel year to year.
Planning P/HR support
programmes.
Operational Detailing of programmes Integrated Detailing of P/HR activities
planning to specify actions, control that are incorporated in the
(12 months) responsibilities, cost- requirements one-year business plan
time schedule and
organizational
profitability
Activities Day-to-day and Implementation P/HR day-to-day and week-
planning week-to-week actions to-week assignment in
(daily and plans and work support of the objectives
weekly) schedule and plans of the P/HR
decentralized department.
throughout the
company.
Source: Klatt Murdick and Schuster.
40 Human Resource Management

Figure 2.2 presents strategic plan vis-à-vis human resource plan.

Fig. 2.2. HRP in the Business System.

Source: A. Klatt, Murdick and Schuster.

NEED FOR HUMAN RESOURCE PLANNING

Human resource planning is needed for foreseeing the human resource requirements of an
organization and supply of human resources. Its need can be assessed from the following points:
1. Replacement of Persons: A large number of persons are to be replaced in the organization
because of retirement, old age, death, etc. There will be a need to prepare persons for
taking up new position in such contingencies.
 Human Resource Planning 41

2. Labour Turnover: There is always labour turnover in every organization. The degree of
labour turnover may vary from concern to concern but it cannot be eliminated altogether.
There will be a need to recruit new persons to take up the positions of those who have left the
organization. If the concern is able to forecast turnover rate precisely, then advance efforts are
made to recruit and train persons so that work does not suffer for want of workers.
3. Expansion Plans: Whenever there is a plan to expand or diversify the concern then more
persons will be required to take up new positions. Human resource planning is essential
under these situations.
4. Technological Changes: The business is working under changing technological
environment. There may be a need to give fresh training to personnel. In addition, there
may also be a need to infuse fresh blood into the organization. Human resource planning
will help in meeting the new demands of the organization.
5. Assessing Needs: Human resource planning is also required to determine whether there
is any shortage or surplus of persons in the organization. If there are less persons than
required, it will adversely affect the work. On the other hand, if more persons are employed
than the requirement, then it will increase labour cost, etc. Human resource planning
ensures the employment of proper workforce.

OBJECTIVES OF HUMAN RESOURCE PLANNING

The following are the objectives of human resource planning:

1. Assessing manpower needs for future and making plans for recruitment and selection.
2. Assessing skill requirement in future for the organization.
3. Determining training and the development needs of the organization.
4. Anticipating surplus or shortage of staff and avoiding unnecessary detentions or dismissals.
5. Controlling wage and salary costs.
6. Ensuring optimum use of human resources in the organization.
7. Helping the organization to cope with the technological development and modernization.
8. Ensuring career planning of every employee of the organization and making succession
programmes.
9. Ensuring higher labour productivity.

DETERMINANTS OF HRP

There are several factors that affect HRP. These factors or determinants can be classified into
external factors and internal factors.

External Factors
• Government Policies : Policies of the government like labour policy, industrial relations
policy, policy towards reserving certain jobs for different communities and sons-of-the-
soils, etc. affect the HRP.
• Level of Economic Development : Level of economic development determines the level of
HRD in the country and thereby the supply of human resources in future in the country.
42 Human Resource Management

Fig. 2.3. Determinants of HRP.

• Business Environment : External business environmental factors influences the volume

and mix of production and thereby the future demand for human resources.
• Level of Technology : Level of technology determines the kind of human resources required.
• International Factors : International factors like the demand for the resources and supply
of human resources in various countries.

Internal Factors
• Company Policies and Strategies: Company’s policies and strategies relating to expansion
diversification, alliances, etc. determines the human resource demand in terms of quality
and quantity.
• Human Resource Policies: Human resources policies of the company regarding quality of
human resource, compensation level, quality of worklife, etc. influences human resource plan.
• Job Analysis: Fundamentally, human resource plan is based on job analysis. Job description
and job specification determines the kind of employees required.
• Time Horizons: Companies with stable competitive environment can plan for the long run
whereas the firms with unstable competitive environment can plan for only short-term range.
44 Human Resource Management

2. Analyzing Factors for Manpower Requirements on Demand Side

(Demand Forcasting)
The existing job design and analysis may thoroughly be reviewed keeping in view the future
capabilities, knowledge and skills of present employees. The job generally should be designed
and analyzed reflecting the future human resources and based on future organizational plans.
The factors for manpower requirements on demand side can be analyzed by making demand
forecasting.
Demand forecasting is the process of estimating the future requirements of manpower, by
function and by level of skills. It has been observed that demand assessment for operative
personnel is not a problem but projections regarding supervisory and managerial levels is difficult.
Two kinds of forecasting techniques are commonly used to determine the organization’s projected
demand for human resources. These are: (i) Judgemental forecasts, and (ii) Statistical projections.
(i) Judgemental Forecasts: Judgemental forecasts are also known as the conventional method.
The forecasts are based on the judgement of those managers and executives who have
intensive and extensive knowledge of human resource requirement. Judgemental forecasts
could be of two types:
(a) Managerial Estimate : Under this method, the managers or supervisors who are
well-acquainted with the workload, efficiency and ability of employees, think about
their future workload, future capabilities of employees and decide on the number
and type of human resources to be required. An estimate of staffing needs is done by
the lower level managers who make estimates and pass them up for further revision.
(b) Delphi Method : A survey approach can be adopted with the Delphi technique. The
Delphi process requires a large number of experts who take turns to present their
forecast statement and underlying assumptions to the others, who then make revisions
in their forecasts. Face-to-face contact among the experts is avoided.
(ii) Statistical Projection: Some forecasting techniques are based on statistical methods. Some
of them are given below:
(a) Ratio-Trend Analysis : The ratio-trend analysis is carried out by studying the past
ratios and the forecasting ratios for the future. The components of internal
environmental changes are considered while forecasting the future ratios. Activity
level forecasts are used to determine the direct human resource requirements. This
method depends on the availability of past records and the internal environmental
changes likely to occur in future.
(b) Econometric Model : Under the econometric model, the previous data is analyzed
and the relationship between different variables in a mathematical formula is
developed. The different variables affecting the human resource requirements are
identified. The mathematical formula so developed is then applied to the forecasts of
movements in the identified variables to produce human resource requirements.
(c) Work-Study Techniques : Work-study techniques are generally used to study work
measurement. Under the workload analysis, the volume of workload in the coming
years is analyzed. These techniques are more suitable where the volume of work is
easily measurable. If the planners forecast expansion in the operations, additional
operational workers may be required. If the organization decides to reduce its
operations in a particular area, there may be decreased demand for the workers. If
 Human Resource Planning 45

there is likely to be no change, present demand for workers will continue. The work-
study method also takes into account the productivity pattern for the present and
future, internal mobility of the workers like promotion, transfer, external mobility of
the workers like retirement, deaths, voluntary retirements, etc.

3. Analyzing Factors for HR Requirements on Supply Side (Supply

Forecasting)
Supply forecasting is concerned with human resources requirements from within and outside the
organization. The first step of forecasting the future supply of human resource is to obtain the
data and information about the present human resource inventory. The supply forecasting includes
human resource audits; employee wastage; changes due to internal promotions; and changes due
to working conditions.
Some of the steps are discussed below:
(i) Human Resource Audits : These are analysis of each employee’s skills and abilities.
This analysis facilitates the human resource planners with an understanding of the skills
and capabilities available in the organization and helps them identify manpower supply
problems arising in the near future. These inventories should be updated periodically
otherwise it can lead to present employees being ignored for job openings within the
organization.
(ii) Employee Wastage : The second step of supply forecasting is estimation of future losses
of human resources of each department and of the entire organization. This is done to
identify the employees who leave the organization and to forecast future losses likely to
occur due to various reasons. Employees may leave the organization for reasons like
retirements, layoffs, dismissals, disablement, ill health, death, etc. Reasons for high
labour turnover and absenteeism should be analyzed and remedial measures taken.
Management has to calculate the rate of labour turnover, conduct exit interview, etc.
This helps to forecast the rate of potential loss, reasons for loss and helps in reducing
the loss.
(iii) Internal Promotions : Analysis is undertaken regarding the vacancies likely due to
retirements and transfer and the employees of particular groups and categories who are
likely to be promoted. The multiple effect of promotions and transfers on the total number
of moves should be analyzed and taken into consideration in forecasting changes in human
resource supply of various departments. For example, if the personnel officer is promoted
as personnel manager, 2 more employees will also get promotion. The senior clerk in the
personnel department will become personnel officer and the junior clerk will become
senior clerk. Thus, there are 3 moves for one promotion.

4. Estimating the Net HR Requirements

Net human resource requirements in terms of number and components are to be determined in
relation to the overall human resource requirements (demand forecast) for a future date and
supply forecast for that date. The difference between overall human requirements and future
supply of human resource is to be found out.
 Human Resource Planning 47

Fig. 2.4. Human Resource Planning Model.

CONTROL AND REVIEW MECHANISM

Human resource planning requires considerable amount of financial resources besides time and
staff. Small firms may not go for it but large organizations prefer human resource planning as
a means of achieving greater effectiveness and long-term objectives. J.W. Walker is of the
opinion that, “In making a projection of manpower requirements, selecting the predictor — the
business factor to which manpower needs will be related – is the critical first step. Selecting the
right predictor in relation to the business is a difficult process. To be useful, the predictor
should meet two requirements; first, it should be directly related to the essential nature of the
business so that business planning is done in terms of the factor. The second requirement is that
changes in the selected factor be proportional to changes in the manpower required in the
business.” Thus, the human resources structure and system should be controlled and reviewed
with a view to keep them in accordance with the plan.
48 Human Resource Management

N.K. Singh in his book “Dimensions of Personnel Management” has identified 9 steps
followed by Indian industries regarding control and review of human resource structure and
system. These are:
1. Considering the decisions regarding additions at the highest level.
2. Sending periodic reports to the top management stating the existing manpower system
and changes therein due to internal and external mobility.
3. Using the personnel budgets as a basis for control as they are formulated on the basis of
manpower plans.
4. Auditing the human resources and studying manpower utilization can be measured by
relating net man-hours actually utilized in work to the standard man-hours planned to be
utilized in work.
5. Measuring the efficiency of labour periodically in the form of labour productivity, employee-
sales ratio, employee-investment ratio, employee-turnover ratio, employee-profit ratio, etc.
and compare them with standards of the organization and actuals of other comparable
organizations.
6. Conducting surveys and research studies with a view to find out the level of job satisfaction,
morale, employee attitudes, interpersonal relations, etc. and review and correct the situation
with the help of the findings of the surveys and studies.
7. Conducting studies with a view to find out the efficiency and validity of recruitment,
selection, training, etc.
8. Sending reports regarding absenteeism, irregularities, overtime, etc. to the management.
9. Conducting exit interviews; spotting out the area responsible, finding out the causes and
correcting the situation.

STRATEGIES FOR HUMAN RESOURCE PLANNERS

The objective of manpower planning is to help the organization to achieve its goal. For this
purpose, the manpower planners have to develop some strategies. Stainer has suggested nine
strategies for the benefit of manpower planners:
1. They should collect, maintain and interpret relevant information regarding human resources.
2. They should periodically report manpower objectives, requirements and existing
employment and allied features of manpower.
3. They should develop procedures and techniques to determine the requirements of different
types of manpower over a period of time from the standpoint of organization’s goals.
4. They should develop measures of manpower utilization as component of forecasts of
manpower requirement along with independent validation.
5. They should employ suitable techniques leading to effective allocation of work with a
view to improving manpower utilization.
6. They should conduct research to determine factors hampering the contribution of individuals
and groups to the organization with a view to modifying or removing these handicaps.
7. They should develop and employ methods of economic assessment of human resources
reflecting its features as income generator and cost and accordingly improving the quality
of decisions affecting the manpower.
50 Human Resource Management

These people are known for job hopping, thereby creating frequent shortages in the
organization. Manpower planning helps prevent such shortages. Furthermore, technology
changes will often upgrade some jobs and degrade others. Indian Telephone Industries
(ITI) had a stronger technology to ·start with, which later developed into crossbar telephone
system. This was later changed to electronic technology. Jobs created and people hired
when old technologies were in use became extinct, obsolete and redundant. ITI being a
public sector undertaking, could not retrench its workers, and were subsequently retrained
and redeployed to supervise the electronic system now in use. Jobs became highly technical
necessitating hiring of engineers who had majored in electronics. So, ITI had no use of
engineers with civil or mechanical engineering as major. Thus, ITI is in a tight spot so far
as shop-floor workers are concerned, whose number is more than the demand for them.
Even with regard to electronics engineers, the company is not in a comfortable position.
With its existing compensation scheme, ITI is not in a position to attract talented people.
This situation could have been avoided if ITI had done HRP.
Another facet of the high-talent personnel is management succession planning. Who
will replace the retiring chief executive? From what pool of people will top executives be
selected and how will these individuals be groomed for their increased responsibilities?
HRP is an answer to these and other related questions.
6. Identification of Gaps in Existing Manpower. Human resource planning identifies gaps
in existing manpower in terms of their quantity and quality with the help of suitable
training and/or any other steps, these gaps can be filled in time. Existing manpower can
also be developed to fill future vacancies.
7. Career Succession Planning. Manpower planning facilitates career succession planning
in the organization. It provides enough lead time for internal succession of employees to
higher position through promotions. Thus, manpower planning contributes to management
succession as well as development.
8. Improvement in Overall Business Planning. Manpower planning is an integral part of
overall business planning. Effective manpower planning will lead to improvement in overall
planning also. No management can be successful in the long run without having the right
type and right number of people doing the right jobs at the right time.
9. Growth of the Organization. Manpower planning facilitates the expansion and diversification
of an organization. In the absence of human resource plans, the required human resources
will not be available to execute expansion and diversification plans at the right time.
10. Creates Awareness in the Organization. Manpower planning leads to a great awareness
about the effectiveness of sound manpower management throughout the organization. It also
helps in judging the effectiveness of human resource policies and programmes of management.
11. Beneficial to the Country. At the national level manpower planning facilitates educational
reforms, geographical mobility of talent and employment generation.

LIMITATIONS OF HR PLANNING

Manpower planning is not always successful, the main problems are described below:
1. Accuracy of Forecasts. Manpower planning involves forecasting the demand and supply
of human resources. Thus, the effectiveness of planning depends upon the accuracy of
52 Human Resource Management

GUIDELINES FOR MAKING HRP EFFECTIVE

Some of the suggestions for making HR planning effective are as given below:
1. Integration with Organizational Plans. Human resource planning must be balanced with
organizational plans. It must be based on the organizational objectives and plans. This
requires development of good communication channels between organization planners
and the human resource planners.
2. Period of HR Planning. Period of the planning should be appropriate to the needs and
circumstances of the enterprise in question. The size and structure of the enterprise as
well as the anticipated changes must be taken into consideration.
3. Proper Organization. To be effective, the planning function should be properly organized.
If possible, within the human resource department. A separate cell or committee should
be constituted to provide adequate focus and to coordinate planning work at various levels.
4. Support of Top Management. To be effective in the long run, manpower planning must
have the full support of the top management. The support from top management is essential
to ensure the necessary resources, cooperation and support for the success of the planning.
5. Involvement of Operating Executives. Human resource planning is not a function of
manpower planners only. To be effective, it requires active participation and coordinated
efforts on the part of operating executives. Such participation will help to improve
understanding of the process and thereby reduce resistance.
6. Efficient and Reliable Information System. To facilitate human resource planning, an
adequate database must be developed for human resources.
7. Balanced Approach. The human resource experts should give equal importance to both
quantitative and qualitative aspects of manpower. Instead of matching existing people
with existing job, stress should be laid on filling future vacancies with right people.
Promotion should also be considered carefully. Career planning and development, skill
levels, morale, etc. should be given due importance by the planners.

REVIEW QUESTIONS

1. What do you understand by human resource planning? Describe its characteristics.

2. Discuss the objectives of human resource planning. How is the planning carried at various
levels in the organization?
3. Briefly discuss the steps involved in manpower planning in an industry.
4. Define HRP or manpower planning. Review its benefits and limitations. What steps can
be taken by an organization to make manpower planning more effective?
5. What is manpower or HR planning? Why is it necessary? Discuss the various steps involved
in integrated strategic planning and HR.
6. What are the basis of HR planning?
7. Describe the various steps in conducting HRP.
54 Human Resource Management

REFERENCES

1. Anthony, William P. (1993). “Strategic Human Resource Management”, Dryden Press, New York.
2. Armstrong, Michael (1988). “A Handbook of Personnel Management Practice”, Prentice Hall, New Jersey.
3. Beach, Dale S. (1980). “Personnel—The Management of People at Work”, MacMillan, New York.
4. George Bohlander (2002). “Managing Human Resources”, Therson, p. 24.
5. Jaffery, A. Mello (2003). “Strategic Human Resource Management”, Thomson.
6. Rothwell, William J. (1988). “Human Resource Planning and Management”, Prentice Hall, New Jersey.
7. Schuler Randall S. (1981). “Personnel and Human Resource Management”, West Publishing. New York.
8. Werther, William B. and Keith Davis (1993). “Human Resources and Personnel Management”, McGraw-Hill,
New York.
9. Anthony, William P. (1993). “Strategic Human Resource Management”, Dryden Press, p. 179, New York.
Human Resources
UNIT 2 JOB ANALYSIS AND JOB DESIGN
Structure
2.0 Objectives
2.1 Introduction
2.2 Job Analysis
2.2.1 Significance of Job Analysis
2.2.2 Components of Job Analysis
2.3 Methods of Job Analysis
2.4 Job Design
2.5 Methods of Job Design
2.6 Let Us Sum Up
2.7 Key Words
2.8 Answers to Check Your Progress
2.9 Terminal Questions

2.0 OBJECTIVES
After studying this unit, you should be able to:
● explain the meaning and concept of job analysis, job description, job rotation, job
enrichment and job enlargement
● describe the significance and components of job analysis
● discuss the methods of job analysis
● define the term ‘job design’
● discuss the methods of job design

2.1 INTRODUCTION
Human resource management aims at optimum utilization of available human
potential. For this purpose, it is essential to make every one understand their job and
expectations from the job. This enables them to charter their behaviour appropriately.
Job analysis is a process of determining the essential characteristics that are
necessary to perform the job effectively. A good job analysis conveys information to
take a number of important decisions relating to human resources management. Job
design is next to job analysis. Job design involves systematic attempts to organize
tasks, duties and responsibilities into a unit of work to achieve certain objectives. Job
design integrates the work content and qualifications required for each job that meets
the needs of employee and the Organization. Designing a job analysis leads to
preparation of job description and job specification.
Both of them underlie the roles, responsibilities, and qualifications needed in the job.
At the same time, the way jobs are designed has a significant influence on the
employees and Organization. In this unit you will learn the concept, significance and
methods of job analysis. You will further learn and have an insight about job design
16 and it methods.
 Job Analysis and
2.2 JOB ANALYSIS Job Design

Job analysis is a process of determining which characteristics are necessary for

satisfactory job performance and analyzing the environmental conditions in which the
job is performed. It analyzes the work content of job & job content of work. The
process of job analysis leads to development of two documents viz., job description
and job specification.
Job description indicates the tasks and responsibilities, job title, duties, machines, tools
and equipment, working conditions and occupational hazards that form part of the job
whereas job specification comprises of the capabilities required to perform job,
education, experience, training, judgmental skills, communication skills and personal
skills required to perform the job effectively.

2.2.1 Significance of Job Analysis

Job analysis is a vital tool in taking a variety of human resource decisions. It is used
to design and execute a number of human resource management activities and
programs. They are described here:
1. Manpower Planning: job analysis helps in forecasting manpower requirements
based on the knowledge and skills and quality of manpower needed in
organization.
2. Recruitment: A carefully designed job analysis provides information as to what
sources of recruitment are to be used to hire employees. For example, job
analysis in a retail stores about merchandise sorters tells that village level
schools are potential source of recruitment.
3. Selection: Selection of the right candidate to the right job can only be done with
the help of job analysis.
In the case of retail stores, a billing assistant can be selected with the knowledge
of accounting, cash, and computer operations. This is possible with the help of
job analysis.
4. Training and Career Development: Job analysis provides valuable information
to develop training programs. It provides information about what skills are to be
trained. It also provides information about various techniques to be used in
career development of employees.
5. Placement and socialization: After people are selected and trained, they must
be placed in suitable jobs. Job analysis provides information about the suitability
of jobs. A clear job analysis guides the process to socialize the employees to
develop sound relationships with all those persons.
6. Compensation: Job analysis provides information as to how much compensation
and other financial and non-financial benefits to be associated with each job.
7. Employee Safety and Welfare: Job analysis details information on working
conditions. Thus, management tries to provide safety and welfare measures that
are outlined in job analysis.
8. Performance Appraisal: Performance of employees is appraised based on
standard criteria provided in the job analysis.
9. Counselling: A good job analysis provides information to the superiors about the
jobs. They use this information to guide and counsel employees about their
career options, performance, training requirements and skill up-gradation.
17
Human Resources 10. Strategic Planning: Job analysis enables human resource manager to develop a
long-range strategic plan in all concerned areas of human resources.

2.2.2 Components of Job Analysis

1. Job Description: It is an important document. It is descriptive in nature. It is
useful to identify a job for consideration by job analyst. Important questions to be
answered through job description are:
What should be done? - Why it should be done? -Where it should be done?
There is no universal format of writing job description. According to Ghorpade the
following information is common in most of the job descriptions.
● Job title: title of the job and other identifying information such as wages,
salaries, other benefits
● Summary: summary is written in one or two lines that describes what outputs
are expected from job incumbents.
● Equipment: a clear statement of tools, equipment and other information
required to perform job effectively.
● Environment: a clear description of the working conditions of the job, the
location and other characteristics of work environment such as hazards, noise,
temperature, cleanliness etc.
● Activities: a description about the job duties, responsibilities, and expected
behaviour on the job. A description of social interactions associated with the job
such as the size of work group, interpersonal interaction on the job is made.
Job analyst writes job description in consultations with the workers and supervisors.
After writing draft job description, comments and criticism are invited to improve its
content. Final draft is then prepared. Job description is written either by making
personal observation or using questionnaire to collect relevant information from
supervisors and workers. Job description should be reviewed from time to time.
2. Job Specifications: It also known as man or employee specifications is prepared
on the basis of job specification. It specifies the qualities required in a job incumbent
for the effective performance of the job.
Basic contents of a job specification are as follows:
1. Personal characteristics such as education, job experience, age, sex, and extra
co-curricular activities.
2. Physical characteristics such as height, weight, chest, vision, hearing, health,
voice poise, and hand and foot coordination, (for specific positions only).
3. Mental characteristics such as general intelligence, memory, judgment, foresight,
ability to concentrate, etc.
4. Social and psychological characteristics such as emotional ability, flexibility,
manners, drive, conversational ability, interpersonal ability, attitude, values,
creativity etc.
Various contents of a job specification can be prescribed in three terms:
1. essential qualities which a person must possess;
2. desirable qualities which a person may possess; and
3. contra-indicators which are likely to become a handicap to successful job
performance
18
3. Job evaluation: It is a process of determining the relative worth of a job. It is a Job Analysis and
Job Design
process which is helpful even for framing compensation plans by the personnel
manager. Job evaluation as a process is advantageous to a company in many ways:
1. Reduction in inequalities in salary structure - It is found that people and
their motivation is dependent upon how well they are being paid. Therefore the
main objective of job evaluation is to have external and internal consistency in
salary structure so that inequalities in salaries are reduced.
2. Specialization - Because of division of labour and thereby specialization, a large
number of enterprises have got hundred jobs and many employees to perform
them. Therefore, an attempt should be made to define a job and thereby fix
salaries for it. This is possible only through job evaluation.
3. Helps in selection of employees - The job evaluation information can be
helpful at the time of selection of candidates. The factors that are determined
for job evaluation can be taken into account while selecting the employees.
4. Harmonious relationship between employees and manager - Through job
evaluation, harmonious and congenial relations can be maintained between
employees and management, so that all kinds of salaries controversies can be
minimized.
5. Standardization - The process of determining the salary differentials for
different jobs become standardized through job evaluation. This helps in bringing
uniformity into salary structure.
6. Relevance of new jobs - Through job evaluation, one can understand the
relative value of new jobs in a concern.
According to Kimball and Kimball, “Job evaluation represents an effort to determine
the relative value of every job in a plant and to determine what the fair basic wage
for such a job should be.” Thus, job evaluation is different from performance
appraisal. In job evaluation, worth of a job is calculated while in performance
appraisal, the worth of employee is rated.

2.3 METHODS OF JOB ANALYSIS

Job analysis methods can be categorized into three basic types: (1) Observation
Methods; (2) Interview; and (3) Questionnaire
1. Observation Method: Observation of work activities and worker behaviors is
a method of job analysis which can be used independently or in
combination with other methods of job analysis. Three methods of job
analysis based on observation are: (i) Direct Observation; (ii) Work
Methods Analysis; and (iii) Critical Incidents Technique.
(i) Direct Observation: Using direct observation, a person conducting the
analysis simply observes employees in the performance of their duties.
The observer either takes general notes or works from a form which has
structured categories for comment. Everything is observed: what the
worker accomplishes, what equipment is used etc. The limitation of this
method is that it cannot capture the mental aspects of jobs, such as
decision making or planning, since mental processes are not observable.
(ii) Work Methods Analysis: This method is used to describe manual and
repetitive production jobs, such as factory or assembly-line jobs. This
method is used by industrial engineers to determine standard rates of
production. 19
Human Resources (iii) Critical Incidents Technique: It involves observation and recording of
examples of particularly effective or ineffective behaviors. Behaviours are
judged to be “effective” or “ineffective” in terms of results produced by
the behavior. In this method a person using the critical incidents must
describe behaviour in retrospect, or after the fact, rather than as the
activity unfolds. Accurate recording of past observations is more difficult
than recording the behaviours as they occur.
2. Interview: In this method, the Analyst interviews the employee, his supervisor
and other concerned persons and record answers to relevant questions. The
interviewer asks job related questions and a standard format is used to record
the data. The limitation of this method is that it does not provide accurate
information because the employee may not provide accurate information to
protect his own interest. Success of this method depends upon the rapport
between the analyst and the employee.
3. Questionnaire: In this method properly drafted questionnaires are sent to
jobholders. Structured questionnaires on different aspects of a job are
developed. Each task is described in terms of characteristics such as frequency,
significance, difficulty and relationship to overall performance. The jobholders
give their rating of these dimensions. The ratings obtained are analyzed and a
profile of actual job is developed. This method provides comprehensive
information about a job. The limitation of this method is that it is time consuming
and costly.

Check Your Progress A

1. What is job analysis?
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2. Write three significance of job analysis.
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3. What do you mean by job description?
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4. What is meant by job specification?
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5. What is job evaluation?
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 Job Analysis and
2.4 JOB DESIGN Job Design

Job design is next to job analysis. Job design involves systematic attempts to organize
tasks, duties and responsibilities into a unit of work to achieve certain objectives. Job
design integrates the work content and qualifications required for each job that meets
the needs of employee and the organization. Job design makes the job highly
specialized and well designed jobs are important in attracting and retaining a
motivated work force.
According to Michael Armstrong, “Job Design is the process of deciding on the
contents of a job in terms of its duties and responsibilities, on the methods to be used
in carrying out the job, in terms of techniques, systems and procedures, and on the
relationships that should exist between the job holder and his superior subordinates
and colleagues.” Job Design is affected by three categories of factors:
Organizational Factors: The organizational factors that affect job design are
characteristics of task, work flow, ergonomics and work practices.
● Characteristic of task: Each task consists of 3 elements, namely, planning,
executing and controlling. Job design involves the assembly of a number of tasks
into a job or a group of jobs. A job may require an employee to perform a variety
of connected task. All these characteristics of jobs are taken into consideration
for job design.
● Workflow: The flow of work in an organization is strongly influenced by the
nature of the product. This product usually suggests the sequence and balance
between jobs if the work is to be completed efficiently.
● Ergonomics: Ergonomics is concerned with the designing and shaping of jobs
as per the physical abilities and characteristics of individuals so that they can
perform their jobs effectively.
● Work Practices: Work practices are the set methods of performing work. This
can affect the job design as there is little flexibility in designing the job especially
if the work practices are approved by employee unions.
Environmental Factors: Environmental factors affect job design. Environmental
factors include employee abilities & availability and Social & Cultural expectations.
● Employee Abilities & Availability: Abilities and availability of people plays an
important role while designing jobs. Due attention needs to be given to the
employee who will actually perform the job.
● Social And Cultural Expectations: Jobs should be designed keeping the
employees in mind. Due to increase in literacy rate and knowledge, employees
are now more aware and only perform jobs that are to their liking and match
their profile.
● Behavioral Factors: Behavioral factors are related to human needs and they
need to be satisfied properly. Behavioral elements include the following:
● Feedback: Employee should be given proper feedback about his job
performance. This will enable the employee to improve his performance and
complete the job in a proper manner.
● Autonomy: Employee should be given proper autonomy required to perform the
work. The absence of autonomy may lead to poor performance on the part of
employees.
● Use of Abilities: The job should be designed in such a manner that an
employee will be able to use his abilities fully and perform the job effectively. 21
Human Resources ● Variety: Absence of variety in the job assigned may lead to boredom. Adequate
scope to variety factor should be given while designing a job.

2.5 METHODS OF JOB DESIGN

Job Simplification: In the job simplification technique, the job is simplified or
specialized. A given job is divided into small sub-parts and each part is assigned to one
individual employee. Job simplification is introduced when job designers feel that the
jobs are not specialized enough.
Job Rotation: Job rotation implies systematic movement of employees from one job
to the other. Job remains unchanged but employees performing them shift from one
job to the other. With job rotation, an employee is given an opportunity to perform
different jobs, which enriches his skills, experience and ability to perform different
jobs. It is the process of preparing employees at a lower level to replace someone at
the next higher level. It is generally done for the designations that are crucial for the
effective and efficient functioning of the organization. By this to some extent
boredom is reduced. However for this people interest is primary importance. By this
they can also learn new things, new techniques, and new ways of doing better work.
It may also happen that over a period of time they will be finding a job for which they
are better suitable. They can also contribute in a better way to achieve the goals of
the organization.
This aspect of job rotation can be seen widely applied in Retail scenario, where end
user or consumer is in direct presence all through. This has for large extent reduced
boredom, reduced irregularities due to familiarity, acquired new skills & assuming
new & varied responsibilities. In other words it will lead to better job satisfaction,
which is the ultimate goal for better contribution.
Job Enlargement: Job enlargement means expanding the scope of the job. Many
tasks and duties are aggregated and assigned to a single job. It is opposite to job
simplification. Job enlargement is an extension of Job rotation, exposing the people to
several jobs without changing the job duties to be performed. He is taken off the
boring job for a while & is allowed to take up a related task & so on. Monotony is
relieved temporarily. Critics are of the opinion that this approach involves nothing
more than having to perform several boring jobs rather than one. Job enlargement is
to expand in several tasks than just to do one single task. It is also the horizontal
expansion of a job. It involves the addition of tasks at the same level of skill and
responsibility. It is done to keep workers from getting bored. This would also be
considered multi tasking by which one person would do several persons jobs, saving
the company money and man hours that normally would be paid to additional
workers. Small companies may not have as many opportunities for promotions, so
they try to motivate employees through job enlargement. For example when I worked
at a restaurant. I would bus the tables, wash the dishes, and run food upstairs. If they
had just one person doing each job on the same night, it would cost the management
three times the money. This adds more functions; increases variety of tasks & this is
short lived. It cannot enrich the human content of job. The ultimate answer is Job
Enrichment.
Job Enrichment: Job enrichment means making the job rich in its contents so that
an employee will get more satisfaction while performing that job. It upgrades the
responsibility, scope and challenge. A vast majority of the jobs are repetitive &
monotonous in nature. This results in reducing the motivational content& human
element of the job with repercussions on performance. The central focus of job
22
enrichment is giving people more control over their work (lack of control is a key Job Analysis and
Job Design
cause of stress, and therefore of unhappiness.) Where possible, allow them to take on
tasks that are typically done by supervisors. This means that they have more
influence over planning, executing, and evaluating the jobs they do. In enriched jobs,
people complete activities with increased freedom, independence, and responsibility.
They also receive plenty of feedback, so that they can assess and correct their own
performance.
Job Enrichment tries to embellish the job with factors of motivation: Achievement –
Recognition – Increased Responsibilities – Self Involvement – Opportunities for
Growth – Advancement – Increased Competence. Job Enrichment is concerned with
redesigning the job to include a variety of work content; that gives the person more
autonomy & responsibility for planning, directing & controlling his own performance
& provide opportunity for personal growth & meaningful work experience. Job
Enrichment also for decentralization of decision making rights to individual over areas
that directly affect his task functions.
The emphasis is on the result of efforts rather than the procedure to carry out the
work, thus making the job result oriented. This also results in motivation, satisfaction
in believing oneself to be personally accountable for results & being able to know
how satisfactory ones efforts are. By Job Enrichment, condition or state of human
capabilities which were not fully utilized & creation of frustration among the individual
is removed to the extent possible.

Check Your Progress B

1. What is Job Design?
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2. What is job rotation?
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3. What is meant by job enrichment?
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4. What do you mean by job enlargement?
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23
Human Resources
5. Which of the following statements are True or False?
i) Job Analysis analyzes the work content of job and job content of work.
ii) Job Description does not provide a clear picture about the duties and /
responsibilities of a job.
iii) Job specification is a written statement of necessary qualifications of job
incumbent.
iv) Job Rotation implies the shifting of an employee from one job to another
without any change in the Jobs.
v) Job Enlargement is the process of increasing the scope of a job by adding
more tasks to it.

2.6 LET US SUM UP

Job analysis is a systematic investigation of tasks, duties and responsibilities of a job.
Job analysis starts with collection of relevant information and ends with development
of job description and job specification.. The specific uses of job analysis are:
Manpower planning, Recruitment and selection, training and placement, compensation
and employee welfare, counseling and performance appraisal. Job description is a
written document consists of job title, summary, equipment, environment and
activities. Components of job analysis includes, job description, job specification and
job evaluation. Job analysis methods can be categorized into three basic types: (i)
Observation Methods: Under this method a person conducting the analysis simply
observes employees in the performance of their duties. (ii) Interview: In this method,
the Analyst interviews the employee, his supervisor and other concerned persons and
record answers to relevant question, and (iii) Questionnaire: In this method structured
questionnaires on different aspects of a job are developed and sent to jobholders. Job
design is the process of deciding on the contents of a job in terms of its duties and
responsibilities. The main objective of job design is to integrate the needs of the
individual and the requirements of the organization. Methods of job design include: (i)
Job simplification is used to make the job simplified or specialized. A given job is
divided into small sub-parts and each part is assigned to one individual employee. (ii)
Job rotation is a first step towards removing boredom of doing the same work or job
again & again. (iii) Job enlargement is an extension of job rotation, exposing the
people to several jobs without changing the job duties to be performed. (iv) Job
enrichment means making the job rich in its contents so that an employee will get
more satisfaction while performing that job. It upgrades the responsibility, scope and
challenge.

2.7 KEY WORDS

Job Rotation: It implies the shifting of an employee from one job to another without
any change in the Jobs.
Job Analysis: It is the process of determining the essential characteristics that are
necessary to perform job effectively.
Job Specification: It is the document showing personality traits, qualities, skills,
knowledge and other attributes required in the employee.
Job Enlargement: It is the process of increasing the scope of a job by adding more
24 tasks to it.
Job Enrichment: It involves designing a job in such a way that it provides the Job Analysis and
Job Design
worker greater autonomy for planning and controlling his own performance.
Job Description: A written statement of summary of tasks, duties and
responsibilities of a job.

2.8 ANSWERS TO CHECK YOUR PROGRESS

(B) 5) i) True ii) False iii) True iv) True v) True

2.9 TERMINAL QUESTIONS

1. What is job analysis? Describe the significance of job analysis.
2. Explain in detail the components of job analysis with reference to Retail Store.
3. What is meant by job analysis? Discuss it methods.
4. What is job design? Discuss the factors affecting it.
5. Writ a note on the following:
i) Job rotation
ii) Job enlargement
iii) Job enrichment

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