Chapter 2

Human Resource Planning
Chapter 2
Learning Objectives
▪ Human Resource Planning
▪ Human Resource Planning Process
▪ Benefits of Human Resource Planning
▪ Barriers to Human Resource Planning
▪ Job Analysis
▪ Steps in Job Analysis
▪ Purpose and uses of Job Analysis
▪ Job Description
▪ Job Specification
▪ Job Design
▪ Mechanism of Job Design
▪ Job Enrichment Vs. Job Enlargement
▪ HRP
▪ is the process of systematically reviewing HR
requirements to ensure that the required number
of employees with required skills are available
when and where they are needed.
▪ tries to obtain the right people (with right
knowledge, skills and experience), at the right
numbers, in the right jobs, at the right time, and
at the right cost.
▪ According to Armstrong (2006), HRP is concerned with
forecasting the future needs of the organization in
terms of:
▪ skills, expertise and competences,
▪ analyzing the availability and supply of people,
▪ drawing up plans to match supply to demand and
▪ monitoring the implementation of the HR plan
▪ HR Planning includes four factors:
▪ Quantity:
▪ How many employees do we need?
▪ Quality :
▪ Which skills, Knowledge and abilities do we need
▪ Space :
▪ Where do we need the employees?
▪ Time :
▪ When do we need the employees?
▪ How long do we need them?
The Process of HR Planning
Step 1. Assess Organizational Objectives and Strategies
▪ HRP process
▪ begins with considering the existing organizational
objectives and strategies
▪ assessment of existing organizational objectives helps HR
planners deduce the quantity and the kind of employees
required for achieving of these objectives
▪ should be tied to the organization’s strategic goals
Step 2. Forecasting Labor Demand
▪ Determine the Total HR Requirement
▪ HR demand forecasting involves predicting the quantities
and kinds of HRs the organization will require at some
future point in time to achieve its strategic objectives.
▪ HR demand is likely to
▪ increases when the demand for the firm’s product or services
increases but
▪ decrease as labor productivity, and as the demand for firm’s
product or services decreases
▪ Step 2. Forecasting Labor Demand
▪ The organization’s future HR requirement can be forecasted
using a variety of methods.
▪ These methods fall into two categories:
▪ Qualitative and
▪ Quantitative Methods.
▪ a combination of the two methods is advisable to forecast
HR needs of the organization.
▪ A. Qualitative/Judgmental Methods
▪ These forecasting methods involve the use of human judgment,
rather than the manipulation of numbers/data.
▪ rely on experts’ qualitative judgments or subjective estimates of
labor demand.
▪ The major advantage of qualitative techniques is that they are
flexible enough to incorporate whatever factors or conditions the
expert feels should be considered.
▪ Moreover, qualitative techniques are not constrained by
past relationships.
▪ a potential drawback of these methods is that subjective
judgments of experts may be less accurate or lead to
rougher estimates than those obtained through
quantitative methods.
▪ Qualitative methods for forecasting HR needs include:
▪ Delphi Technique
▪ Nominal Group Technique/Group Brainstorming
▪ Managerial Judgment
▪ Benchmarking
▪ B. Quantitative Methods
▪ are based on the assumption that the future is an extrapolation
from the past.
▪ Although used more often, these methods have limitations.
▪ most rely on past data or previous relationships between HR levels and
other variables, such as output or revenues.
▪ are less appropriate for organizations which are operated in dynamic
environment and intense global competition.
▪ Quantitative Methods
▪ Quantitative methods for forecasting HR needs include:
▪ Trend/Time series Analysis
▪ Regression Analysis
▪ Computerized forecast
▪ Step 3. Forecasting Labor Supply
▪ the labor demand forecast projects HR needs of an
organization,
▪ the labor supply forecast projects HR availability.
▪ Labor supply forecasts are typically broken down into two
categories:
▪ Internal Supply and
▪ External Supply
▪ Step 3. Forecasting Labor Supply:
▪ Forecasting Internal Labor Supply
▪ Internal labor supply consists of those individuals and jobholders
currently available within the organization.
▪ Data from HRs /skills inventories are used to make internal labor
supply forecast based on current trends.
▪ These trends include not only the number and kinds of individuals
in each job, but also the flow of employees in, through, and out of
the organization.
▪a) Skills Inventory
▪ is the process of developing a profile of current status
of HRs.
▪ is aids to know the type and the numbers of employers
available within the organization.
▪ HR inventory is some times called HR audit.
▪ a) Skills Inventory
▪ Before deciding how many outside candidates to hire, the current available
HRs should be assessed to find out if they can fill the forecasted openings
in the organization.
▪ In order to get accurate and current information about existing employees,
qualification inventory should be developed.
▪ Qualification inventory is the systematic record (manual or computerized)
listing employees’ education, career development, interests, languages,
special skills, etc.
▪ It is used in forecasting inside candidates for promotions or transfers.
▪ b) Anticipate Changes in HRs
▪ The data that are recorded through manpower inventory is the
photograph of HR available at a single point in time.
▪ In the long run changes must be anticipated,
▪ turnover
▪ HR Managers should also try to estimate HR changes that are likely
to occur within the planning period—
▪ promotions, transfers, retirements, resignations, detains, deaths, and
dismissal within an organization.
▪ Some of these changes like retirement, promotion and transfer
can easily be estimated with reasonable accuracy.
▪ While other changes, such as deaths, resignations, and
dismissals, are much more difficult to predict.
▪ However, forecasting such changes require analysis of past
trends (historical records) and managerial judgment.
▪ Step 3. Forecasting Labor Supply: Forecasting Internal Labor
Supply
These anticipated changes can be classified as:
▪ Natural Attrition:
▪ People leaving the organization for such reasons as death, disability, illness, retirement, etc.
▪ Voluntary Movement:
▪ When people decide to move out of the organization either because they are dissatisfied with
working conditions, payment scale, relationships, etc. or because they have better
opportunities else where.
▪ Involuntary Movement:
▪ This is the situation where an organization pushes employees to go out, such as dismissal,
layoffs, downsizing etc.
▪ Forecasting External Labor Supply
▪ consists of those individuals in the labor forces who are
potential recruits of the organization (including those
working for another organization)
▪ The skill levels being sought determine the relevant labor
market.
▪ The entire country (or world) may be the relevant labor
market for highly skilled jobs whereas for unskilled jobs,
the relevant labor market is usually the local community.
▪ Step 4. Determine the Net HR Requirement
▪ Gap Analysis
▪ Net HR requirement is determined by comparing the
labor demand forecasts and the internal labor supply
forecasts.
▪ The difference of the total HR needed for an organization
and the total HR available in the organization will result in
the net HR requirement.
𝐍𝐞𝐭 𝐇𝐑 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭 = 𝐇𝐑 𝐝𝐞𝐦𝐚𝐧𝐝 𝐟𝐨𝐫𝐞𝐜𝐚𝐬𝐭 − 𝐢𝐧𝐭𝐞𝐫𝐧𝐚𝐥 𝐇𝐑 𝐬𝐮𝐩𝐩𝐥𝐲 𝐟𝐨𝐫𝐞𝐜𝐚𝐬𝐭
▪ If HR demand is greater than internal HR supply, the net HR
requirement is positive
▪ deficit supply of HR, i.e., additional HR is needed
▪ But when HR demand is less than internal HR supply, the net HR
requirement is negative
▪ surplus supply of HR, i.e., there are excess of HRs in an organization
▪ If HR demand is equal to internal HR supply, the net HR
requirement is zero
▪ in a state of equilibrium
▪ Step 5. Develop Action Plans to Manage the
Outcomes of HRP Process
▪ The result obtained from the above step will initiate
action planning, i.e., developing action plans to fulfill
the needs of HRs in the organization.
▪ Step 5. Develop Action Plans to Manage the Outcomes
of HRP Process
▪ If Net HR Requirement is Positive
▪ HR Deficit Supply
▪ HR department must design and implement techniques to overcome the
shortage of HRs.
▪ Which approach or approaches are appropriate will depend on their
relative costs and how long the labor shortage is expected to last.
of HRP Process
▪ If Net HR Requirement is Positive
▪ Recruitment and Selection
▪ Improve Retention Rates
▪ Training and Development
▪ Overtime
▪ Outsourcing
▪ Step 5. Develop Action Plans to Manage the Outcomes of
HRP Process
number of employees terminated

▪ labour Turnover Rate =
Average number employed
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠

▪ 𝐿𝑎𝑏𝑜𝑢𝑟 𝑅𝑒𝑡𝑒𝑛𝑡𝑖𝑜𝑛 𝑅𝑎𝑡𝑒 =
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑
of HRP Process
▪ b) If Net HR Requirement is Negative
▪ HR Surplus supply
▪ When this happens, the HR department must make decision to reduce the
number or mix of current employees through two possible approaches.
of HRP Process
▪ HR Surplus supply
▪ When this happens, the HR department must make decision to reduce the
number or mix of current employees through two possible approaches.
▪ Approaches resulting in employees leaving organization
▪ Approaches that do not result in leaving organization (all of which may
save jobs)
of HRP Process
▪ i) Approaches resulting in employees leaving organization
▪ Downsizing (outplacement):
▪ is a reduction in the number of employees by an organization (also
known as restructuring and rightsizing).
▪ Organizations downsize their employees in difficult times and rehire
when time get better.
▪ The negative impact of downsizing is that remaining employee trust
will reduce significantly.
▪ b. Layoffs:
▪ A condition where by employees are forced to leave the
organization.
▪ In the case of layoff the worker is no longer employed.
▪ Usually, workers with the least seniority are laid off first.
▪ c. Early Retirement
▪ Situations where by organizations provide a chance to those
employees approaching their retirement periods voluntarily
retire with full benefits of retirement
of HRP Process
▪ ii) Approaches that do not result in leaving organization
▪ Attrition and Hiring Freezes:
▪ When an organization implements a restricted hiring policy, it reduces
the number of HRs by not replacing employees who leave.
▪ In this case, new employees are hired only when the overall
performance of the organization may be affected.
▪ b. Job Sharing
▪ Job sharing is divides a single job between two or more
workers.
▪ It is a proportional reduction of hours of work.
of HRP Process
▪ c. Pay Reduction
▪ organizations apply pay reduction to reduce the number of full-time
workers.
▪ An employee whose pay is reduced usually tends to leave the
organization.
HRP Implementation
▪ converting an HR plan into action
▪ recruitment, selection and placement;
▪ training and development;
▪ retraining and redeployment;
▪ the retention plan; and
▪ the succession plan
HRP Implementation
▪ Retention Plan
▪ Compensation plan
▪ Performance appraisal
▪ Employees leaving in search of green pastures
▪ Employees quitting because of conflict
▪ The induction crisis
▪ Shortages
▪ Unstable recruits
HRP Implementation
▪ Downsizing Plan
▪ downsizing plan shall indicate
▪ Who is to be made redundant and where and when
▪ Plans for re-development or re-training, where this has not been
covered in the re-development plan
▪ Steps to be taken to help redundant employees find new jobs
▪ Policy for declaring redundancies and making redundancy
payments
▪ Programme for consulting with unions or staff associations and
informing those affected
HRP Implementation
▪ Managerial Succession Planning
▪ Analysis of the demand for managers and professionals by company level, function, and
skill
▪ Audit of existing executives and projection of likely future supply nom internal and
external sources
▪ Planning of individual career paths
▪ Career counselling
▪ Accelerated promotions, with development targeted against the future
▪ needs of the business
▪ Performance-related training and development, to prepare individuals for future roles as
well as current responsibilities
▪ Planned strategic recruitment, not only to fill short-term needs but also to provide
people for development to meet future needs
▪ The actual activities by which openings are filled
Purposes of HR Planning
▪ To expand the operation of the organization
▪ To reduce labor cost
▪ To utilize HRs efficiently and effectively
▪ To avoid disruption in operation
▪ For effective employee development program
▪ To maintain good industrial relation
Importance of HRP
▪ Uncertainty Reduction
▪ Objectives achievement
▪ Environmental Adaptation
▪ Effective and Efficient Utilization of HRsr
▪ HR Development
▪ Control
Importance of HRP
▪ Upper management has a better view of the human resources
dimensions of business decisions.
▪ Personnel costs may be less because management can anticipate
imbalances, before they become unmanageable and expensive.
▪ More time is provided to locate source talent.
▪ Better opportunities exist to include women and minority groups in
future growth plans.
▪ Major and successful demands on local labour markets can be made.
Barriers To Human Resource Planning
▪ People question the importance of making HR practices future oriented
▪ HR practitioners are perceived as experts in handling personnel matters, but
are not experts in managing business
▪ HR information often is incompatible with the information used in strategy
formulation
▪ Conflicts may exist between short-term and long-term HR needs.
▪ There is conflict between quantitative and qualitative approaches to HRP.
▪ Non-involvement of operating managers renders HRP ineffective.
▪ HRP is not strictly an HR department function.
▪ Successful planning needs a co-ordinated effort on the part of operating
managers and HR personnel.
Job Analysis
Basic Terminologies In Job Analysis
▪ Micro motion
▪ the simplest unit of work is the micro motion.
▪ A micro motion involves a very elementary
movement, such as reaching, grasping,
positioning, or releasing an object.
▪ Element:
▪ an aggregation of two or more micro motions forms
an element.
▪ An element is a complete entity, such as picking up,
transporting, and positioning an item.
▪ Task
▪ is the smallest unit of job or a specific statement of what a person
does.
▪ A group of work elements makes up a work task.
▪ It is one of the distinct activities that constitute logical and necessary
steps in the performance of work by an employee.
▪ It is a coordinated and aggregated sense of work elements used to
produce an output.
▪ A task is performed whenever human effort, physical or mental, is
exerted for a specific purpose.
▪ Example: one task of a receptionist is answering a phone.
▪ Duty
▪ A duty consists of one or more tasks that constitute a significance activity
performed by a jobholder.
▪ Related tasks comprise the duties of a job.
▪ Distinguishing between and duties is not always easy.
▪ It is sometimes helpful to view tasks as subsets of duties.
▪ For example, suppose one duty of a receptionist is to handle all incoming
correspondence.
▪ One task, as part of this duty, would be to respond to all routine inquires.
▪ Responsibility
▪ is one or several duties that identify and describe the
major purpose or reason for the job’s existence.
▪ It is an obligation to perform certain tasks and
assume certain duties.
▪ Position
▪ Duties, when combined with responsibilities (obligation to
be performed), define a position.
▪ Position is the collection of tasks and responsibilities
constituting the total work assignment of a single employee.
▪ There is a position for every person in an organization.
▪ Example: all tasks done by a secretary.
▪ Job
▪ is a group of positions that are identical with respect to their
major or significant tasks and responsibilities,
▪ and all require the same basic knowledge, abilities, and skills.
▪ The difference between a position and a job is that a job may be
held by more than one person, whereas a position cannot.
▪ One or several people may be employed in the same job.
▪ For example, an organization may have two computer
programmers performing the same job; however, they occupy
two separate positions.
▪ Occupation
▪ A group of similar jobs forms an occupation.
▪ Because the job of receptionist requires similar skills,
effort, and responsibility in different organizations,
being receptionist may be viewed as an occupation.
▪ Occupation is a group of jobs with broadly similar
content.
▪ Example: Managerial, technical, crafts etc.
Definition of Job Analysis
▪ Job analysis
▪ is the process of determining and reporting pertinent
information relating to the nature a specific job
▪ It is the determination of the tasks which comprise the job
and of the skills, knowledge, abilities, and responsibilities of
the jobholder for successful job performance.
▪ It is the process of determining the duties and skill
requirements of a job and the kind of person who should be
hired for it.
When job analysis is needed?
▪ It is done,
▪ when the organization is formed.
▪ When new jobs are created in the organization
▪ When jobs are changed (change in nature of
jobs), because of new technologies, working
methods, procedures or systems.
job analysis
▪ Job analysis, involves the formal study of jobs, which provide
answer to question such as:
▪ Which tasks are grouped together and are considered as a job?
▪ What machines and special equipment must be used?
▪ What knowledge, skills, and abilities does the jobholder need to
perform the job?
▪ Under what working conditions the job be performed?
▪ What are the performance expectations for the job?
▪ With whom must the jobholder interact?
job analysis
▪ Job analysis provides the following information about the job
▪ 1. Purpose of the job
▪ why the job exists,
▪ what the jobholder is expected to contribute and what the job seeks to
contribute.
▪ 2. Job content:
▪ tasks and duties.
▪ The nature and scope of the job in terms of the tasks to be performed
and duties to be carried out, i.e., about the process of converting inputs
(knowledge, skill and ability) into outputs (products and services)
job analysis
▪ Job analysis provides the following information about
the job
▪ 3. Job context:
▪ This specifies working conditions i.e. physical working conditions,
healthy and safety consideration, work schedule, information about
incentives and motivations, the number of people interacting and
their interaction.
▪ 4.Organizational factors:
▪ The reporting relationship of a jobholder i.e. to whom he or she
reports.
job analysis
the job
▪ 5. Human or work requirement:
▪ Information regarding human requirements of the job, such as
▪ job-related knowledge or skills (education, training, work experience
etc.) and
▪ required personal attributes(aptitude, physical attitudes,
personality, interests, etc).
job analysis
the job
▪ 6. Performance standard:
▪ It provides information about expected performance levels (in
terms of quantity, quality, or speed for each job duty) by which an
employee will be evaluated.
▪ This information is used to know the degree to which the job is
being performed satisfactorily.
job analysis
▪ Job analysis provides the following information
about the job
▪ 7. Machines, equipment’s, tools and work aids.
▪ Included here would be information regarding products
made, raw materials processed, knowledge dealt with or
applied (such as finance or law), and services rendered
(such as counseling or repairing).
Steps In Job Analysis
1. Identify the use to which the information will be put
2. Review relevant background information
3. Select representative positions to be analyzed
4. Collect relevant data and analyze the job by using acceptable
techniques
5. Review the information with the participant
6. Develop a job description and job specification
Uses of Job Analysis Information
▪ Ensure Complete Assignment of Duties:
▪ Human Resource Planning:
▪ Recruitment
▪ Selection
▪ Orientation
▪ Training and Development
▪ Performance Appraisal
▪ Compensation
▪ To comply with legal requirements
▪ Employee Health and Safety
▪ Labor Relation
Products of Job Analysis
Products of Job Analysis
▪ Job Description
▪ What the job entails
▪ Job Specification
▪ What kind of people to hire for the job
Job Description
▪ The following are items frequently included in the 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, tools and equipments used on the job
The Contents of Job Description
▪ Job Identification
▪ Job Summary
▪ Relationships
▪ Duties and Responsibilities
▪ Authority
▪ Standard of Performance
▪ Machines, tools and materials
▪ Working conditions and Physical Environment
Job Specification
▪ Physical characteristics, such as height, weight, sight, physical structure,
Health, etc.
▪ Psychological characteristics, such as decision making ability, analytical
view, mental abilities, etc.
▪ Personal characteristics, such as behavior, enthusiasm, leadership
qualities, etc.
▪ Qualification and experience, such as academic qualification,
experience, training etc
Job Specification
Methods of Collecting Job Analysis Information
▪ Observation
▪ Interview
▪ Questionnaire
▪ Dairy/log
Methods of Collecting Job Analysis Information
▪ Observation
▪ a job analyst watches employees directly on the job
and takes notes to describe the tasks and duties
performed
▪ observable physical activities
▪ Examples of such job include janitors, assembly-line
workers, accounting clerks, etc
Observation
▪ Advantage
▪ It minimizes the likelihood of incumbents biasing the
data.
▪ It provides detail information about time, frequency,
complexity, workflows, production effectiveness, work
conditions, materials and equipment's.
▪ Provides firsthand information.
Observation
▪ Disadvantage
▪ Not all jobs are observable.
▪ Employees' reactivity:
▪ observation may change the natural behavior of workers.
▪ It is not compatible to analyze jobs with short and repetitive
cycles
▪ It is not compatible to analyze jobs having complex mental
activity( e.g. Lawyers, Design Engineers, Lecturers)
Interview
▪ Interview is one of the most widely used method for
determining the duties and responsibilities of a job.
▪ It is gathering information talking with employees that
perform each job.
▪ Individual Interview:
▪ Group Interview Method:
▪ Supervisor Interviews
Interview
▪ Advantage
▪ It is very flexible and can provide depth information.
▪ Interview method allows the worker being interviewed to
report activities and behaviors that might not otherwise be
available from organizational chart.
▪ It provides an opportunity to explain the need for and
functions of the job analysis
▪ It allows interviewee (jobholders/ supervisors) to express
their views and work related issues that may not have been
noticed by management.
Interview
▪ Disadvantage
▪ Employees may tend to exaggerate certain responsibility
with the expectation that information gathered may have an
impact on their pay.
▪ It is time consuming to schedule the interview and to
conduct it.
▪ The results are not easy to analyze.
Questionnaire
▪ It is a written serious of questions.

▪ Questionnaire method allows employees to fill out forms in
which they describe their job-related duties and
responsibilities.
▪ The questionnaires usually contain a combination of closed
and open ended questions.
▪ Questionnaires are usually filled by a jobholder and reviewed
by the immediate supervisor.
Questionnaire
▪ Advantage
▪ It is a quick and efficient way of gathering information from
large number of employees.
▪ It is less costly than interview method.
▪ It is easy to analyze.
Questionnaire
▪ Disadvantage
▪ Developing questionnaires and testing it (make sure that
employees can understand the questions) may be time
consuming.
▪ Respondents may misinterpret the question and provide the
wrong information.
▪ Employees have different perception and literacy level, so
their interpretation and response for the question differs.
Dairy/Logs
▪ This is self-reporting technique that involves current
jobholders recording their activities over a period of
time-for example, every working hour.
▪ Dairy /log
▪ is a daily listings made by workers of every activity in which
they engage along with the time each activity takes
▪ This method can produce a very complete picture of the
job, especially when supplemented with subsequent
interviews with the worker and his/her supervisor.
Dairy/Logs
▪ Advantage
▪ This method can provide a complete picture of the
job especially if it is combined with subsequent
interview with the worker and supervisor.
▪ It provides detailed information about the job.
Dairy/Logs
▪ Disadvantage
▪ Jobholders might exaggerate some aspect of their jobs to
make their task more important than others.
▪ Generally, these methods are by no means mutually
exclusive.
▪ No one method is superior to others.
▪ It is advisable to use a combination of these methods in
order to avoid one sided view.
▪ Trust and confidence is an essential requirement for the
process of job analysis.
Job Design
Job Design
▪ Job
▪ Comprises a set of tasks, elements, and job motions (basic
physical movements)
▪ Job, task, element, motion
▪ Job Designing:
▪ Specifying the tasks that constitute a job for an individual or
a group
▪ Specifying the content and method of job
Job Design
▪ Objective
▪ to develop work assignment that meets the requirements of the organization and
technology
▪ Satisfies individual requirements of the job holders.
▪ Job design helps to determine:
▪ what tasks are done
▪ when and how the tasks are done
▪ how many tasks are done
▪ in what order the tasks are done
▪ factors which affect the work
▪ organization of the content and tasks
Job Design
▪ Task analysis
▪ how tasks fit together to form a job
▪ Worker analysis
▪ determining worker capabilities and responsibilities for a job
▪ Environment analysis
▪ physical characteristics and location of a job
▪ Ergonomics
▪ fitting task to person in a work environment
Job Design
Job Design
▪ Additional Job Design factors include:
▪ Technical feasibility:
▪ the job must be physically and mentally achievable
▪ Economic feasibility:
▪ cost of performing the job is less than the value it adds
▪ Behavioral feasibility:
▪ degree to which the job is intrinsically satisfying to the
employee
Job Design
▪ Major Components of Job Design
▪ Job specialization
▪ Job expansion
▪ Psychological components
▪ Self-directed teams
▪ Motivation and incentive systems
▪ Work methods
▪ Ergonomics
▪ Work environment
Major Components of Job Design
1. Labor or Job Specialization
▪ The division of labor into unique tasks
▪ Involves
▪ Breaking jobs into small component parts
▪ Assigning specialists to do each part
▪ First noted by Adam Smith (1776)
▪ Observed how workers in pin factory divided tasks into smaller components
▪ Found in manufacturing and service industries
▪ Smith suggested that job specialization would assist in reducing labor
costs of multi skilled artisans.
▪ This is accomplished in several ways:
▪ Development of dexterity and faster learning by the employee because of
repetition
▪ Less loss of time because the employee would not be changing jobs or tools
▪ Development of specialized tools and the reduction of investment
▪ because each employee needed a few tools for a particular task
▪ Later Charles Babbage (1832) added another consideration
▪ Wages exactly fit the required skill
▪ Advantages of task specialization
▪ High output, low costs, and minimal training
▪ It reduces cost
▪ Greater dexterity and faster learning
▪ Less lost time changing jobs or tools
▪ Use of more specialized tools
▪ Pay only for needed skills
▪ Disadvantages of task specialization
▪ Boredom,
▪ lack of motivation, and
▪ physical and mental fatigue
▪ 2. Job Expansion
▪ Process of adding more variety to jobs which improves
quality of work-life
▪ Intended to reduce boredom associated with labor
specialization
▪ The approaches are
▪ Job enlargement
▪ Job rotation
▪ Job enrichment
▪ Employee empowerment
▪ Job Enlargement
▪ which occurs when we add tasks requiring similar skill to an existing job
▪ Horizontal expansion of the job through increasing the scope of the work assigned
▪ Job rotation
▪ is a version of job enlargement
▪ occurs when the employee is allowed to move from one specialized job to another.
▪ Variety has been added to the employee's perspective of the job.
▪ Job Enrichment
▪ adds planning and control to the job.
▪ vertical expansion
▪ Employee Empowerment
▪ is the practice of enriching jobs so employees accept responsibility for a variety of decisions normally
associated with staff specialists.
▪ helps them take "ownership" of their jobs so they have a personal interest in improving performance.
Enriched job
Planning
(Participate in a cross-
function quality improvement
team)
Enlarged job
Task #3 Present job Task #2
(Lock printed circuit board (Manually insert and (Adhere labels to printed
into fixture for next solder six resistors) circuit board)
operation)
Control
(Test circuits after assembly)
Job Expansion
▪ Benefits of Expanded Job Designs
▪ Improved quality of work life
▪ Improved job satisfaction
▪ Increased motivation
▪ Allows employees to accept more responsibility
▪ Improved productivity and quality
▪ Reduced turnover and absenteeism
▪ Limitations
▪ Higher capital cost
▪ Individuals may prefer simple jobs
▪ Higher wages rates for greater skills
▪ Smaller labor pool
▪ Higher training costs
▪ 3 Psychological Components of Job Design
▪ Human resource strategy requires consideration of the psychological
components of job design
▪ Individuals have values, attitudes, and emotions that affect job results
▪ Example: Work is a social experience that affects belonging needs
▪ Effective worker behavior comes mostly from within the individual
▪ Scientific management argued for external financial rewards
▪ First examined in ‘Hawthorne studies’
▪ Hawthorne Studies
▪ The Hawthorne studies introduced psychology to the workplace.
▪ They were conducted in the late 1920s at Western Electric's Hawthorne plant
near Chicago.
▪ These studies were initiated to determine the impact of lighting on
productivity.
▪ Instead, they found the dynamic social system and distinct roles played by
employees to be more important than the intensity of the lighting.
▪ They also found that individual differences may be dominant in
▪ what an employee expects from the job and
▪ what the employee thinks her/his contribution to the job should be.’
▪ Core Job Characteristics
▪ Hackman and Oldham
▪ have incorporated much of that work into five desirable characteristics of job design
▪ They suggest that jobs should include the following characteristics:
▪ Skill variety
▪ requiring the worker to use a variety of skills and talents
▪ Job identity
▪ allowing the worker to perceive the job as a whole & recognize a start and a finish
▪ Job significance
▪ providing a sense that the job has an impact on the organization and society
▪ Autonomy
▪ offering freedom, independence, and pleasure
▪ Feedback
▪ providing clear, timely information about performance
▪ Including these five ingredients in job design is consistent with job
enlargement, job enrichment, and employee empowerment.
▪ 4. Self-Directed Team
▪ Many world-class organizations have adopted teams to
▪ foster mutual trust and commitment, and
▪ provide the core job characteristics.
▪ One team concept of particular note is the self-directed team:
▪ a group of empowered individuals working together to reach a common goal.
▪ These teams may be organized for long- or short-term objectives,
▪ Teams are effective primarily because
▪ they can easily provide employee empowerment,
▪ ensure core job characteristics, and
▪ satisfy many of the psychological needs of individual team members
Job design continuum
Self-directed
teams
Empowerment Increasing
reliance on
Enrichment employee’s
contribution
Enlargement and increasing
Specialization responsibility
accepted by
employee
Job expansion
▪ Factors which determine effective self-directed team
▪ Ensure those who have legitimate contributions are on the team
▪ Provide management support
▪ Ensure the necessary training
▪ Endorse clear objectives and goals
▪ Financial and non-financial rewards
▪ Supervisors must release control
5. Employee Motivation and Incentives
▪ Motivation
▪ willingness to work hard because that effort satisfies an employee need
▪ Improving Motivation
▪ positive reinforcement and feedback
▪ effective organization and discipline
▪ fair treatment of people
▪ satisfaction of employee needs
▪ setting of work-related goals
▪ design of jobs to fit employee
▪ work responsibility
▪ empowerment
▪ restructuring of jobs when necessary
▪ rewards based on company as well as individual performance
▪ achievement of company goals
Abraham Maslow’s Douglas McGregor’s Frederick Herzberg’s
Pyramid of Human Theory X and Theory Y Hygiene/Motivation
Needs Theories
•Theory X Employee •Hygiene Factors
• Dislikes work • Company policies
• Must be coerced • Supervision
• Shirks responsibility • Working conditions
Self- • Little ambition • Interpersonal relations
actualization • Security top motivator • Salary, status, security
•Theory Y Employee •Motivation Factors
Esteem • Work is natural • Achievement
• Self-directed • Recognition
Social • Job interest
• Controlled
• Accepts responsibility • Responsibility
Safety/Security • Growth
• Makes good decisions
Physiological (financial) • Advancement
▪ Types of pay
▪ hourly wage
▪ the longer someone works, the more s/he is paid
▪ individual incentive or piece rate
▪ employees are paid for the number of units they produce during the workday
▪ straight salary
▪ common form of payment for management
▪ commissions
▪ usually applied to sales and salespeople
▪ There are different forms of incentives
▪ Monetary rewards may take the form of
▪ Bonus:
▪ which has cash or stock option designed for management group
▪ Profit sharing……some part of profit to employees
▪ Gain-sharing:
▪ Rewards employees for improvements made in Organization's performance
▪ E.g …Scanlon plan i.e. any reduction in cost is shared b/n management & labor
▪ There are different forms of incentives
▪ Incentive systems based on individual/group productivities
▪ Standard time system/measured day-work:
▪ Standard time per task
▪ based on the amount of standard time accomplished
▪ Piece-rate system:
▪ based on the number of piece made i.e., output
▪ Knowledge based/skill-based pay system:
▪ a portion of employee’s pay depends on demonstrated knowledge or skills
possessed
▪ It has three dimensions:
▪ Horizontal:
▪ refers to the variety of tasks
▪ Vertical Skills:
▪ refers to Planning and Control aspect of the job
▪ Depth of Skills:
▪ imply the productivity and quality (workmanship) of the worker
▪ 6. Method Analysis
▪ A detailed step-by-step analysis of how a given job is performed
▪ It is macro-view of the job
▪ It enable to distinguish between value-added and non-value-added steps
▪ It can revise the procedure to improve productivity such as arrangement of
workplace (layout), movement of workers,
▪ When there is improvement, the Standard Operating Procedure (SOP) need to be
revised
▪ There should be a follow-up to ensure that changes actually improve the
operation
▪ Method Analysis (work methods)
▪ Study methods used in the work included in the job to see how it should be done
▪ Primary tools are a variety of charts that illustrate in different ways how a job or
work process is done
▪ The need for Method Analysis may arise due changes in:
▪ Tools and equipment
▪ Product design
▪ Materials and procedures
▪ Government regulations
▪ Contractual agreement
▪ When there is New Product Development (NPD)
▪ Increase in workplace accident
▪ Quality problem
▪ Focuses on how task is performed
▪ Used to analyze
▪ Movement of individuals or material
▪ Flow diagrams and process charts
▪ Activities of human and machine and crew activity
▪ Activity charts
▪ Body movement
▪ Micro-motion charts
▪ Method Analysis procedure focuses on doing the job right first.
▪ It consists of:
▪ Identify the operation/Job to be analyzed based on:
▪ Jobs that are prone to human error
▪ High labor content
▪ Done frequently
▪ Unsafe or tiring
▪ Gather all relevant information
▪ Talk with employees who perform the job
▪ Chart the operation i.e., process chart
▪ Evaluate each step
▪ Revise the existing or new operation
▪ Put the revised or new operation into effect
▪ Follow up on the changes
Process Flowchart Symbols
Operation:
An activity directly contributing to product or service
Transportation:
Moving the product or service from one location to another
Inspection:
Examining the product or service for completeness,
irregularities, or quality
Delay:
Process having to wait
Storage:
Store of the product or service
▪ 7. Ergonomics
▪ The operations manager is interested in building a good
interface between humans, the environment, and machines.
▪ Studies of this interface are known as ergonomics.
▪ Ergonomics means "the study of work.“
▪ Also Known as human engineering or human factor
engineering
▪ The main concern:
▪ Design machines, products and systems to maximize the safety,
comfort, and efficiency of employees at workplace
▪ 7. Ergonomics
▪ Goals of Ergonomics
▪ Prevent and reduce workplace illness and accidents
▪ Example:
▪ Repetitive Stress Injuries (RSI):
▪ Bending, reaching, movement, motion
▪ Carpal Tunnel Syndrome-swelling of wrist
▪ Design safe workplace environment
▪ Temperature, humidity, noise, lighting, ventilation, vibration
▪ Design workplace for improved efficiency and productivity
▪ Design products safe and easier to use by consumers
▪ 7. Ergonomics
▪ Major ergonomic and work environment issues
▪ Operator Input to Machines
▪ Feedback to Operators
▪ The Work Environment
▪ 7. Ergonomics
▪ Operator Input to Machines
▪ Operator response to machines, be they hand tools,
pedals, level's, or buttons, needs to be evaluated.
▪ Operations managers need to be sure that operators have
the strength, reflexes, perception, and mental capacity to
provide necessary control.
▪ 7. Ergonomics
▪ Feedback to Operators
▪ is provided by sight, sound, and feel;
▪ it should not be left to chance.
▪ Nonfunctional groups of large, unclear instruments and
inaccessible controls, combined with hundreds of confusing
warning lights, contributed to that failure.
▪ Such relatively simple issues make a difference in operator
response and, therefore, performance.
▪ 7. Ergonomics
▪ Work Environment
▪ Working conditions can effect
▪ worker productivity,
▪ product quality and
▪ worker safety
▪ It includes:
▪ Temperature
▪ Ventilation i.e., quality of air
▪ Noise
▪ Lighting
▪ Paint of the wall
▪ Occupational Safety and Health rule passed in order to maintain specific safety
conditions that must be met by employer organizations
Attributes of Good Job Design
▪ An appropriate degree of repetitiveness
▪ An appropriate degree of attention and mental absorption
▪ Some employee responsibility for decisions and discretion
▪ Employee control over their own job
▪ Goals and achievement feedback
▪ A perceived contribution to a useful product or service
▪ Opportunities for personal relationships and friendships
▪ Some influence over the way work is carried out in groups
▪ Use of skills
Thank You!

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Human Resource Planning

number of employees terminated

𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠

▪ It is a written serious of questions.

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