Human Resource Management 11th Edition Chapter 4 JOB ANALYSIS, STRATEGIC PLANNING, AND HUMAN RESOURCE PLANNING

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HRM in Action: Social Networking: Getting to Know Each Other
• Web site serves as virtual community, where group of people use Internet to communicate with each other about anything and everything • Because of rapid growth of sites, companies are having to determine if they should permit employees to use public sites at work such as MySpace and Facebook to communicate with coworkers or does company want to control access
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Definitions
• Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization • Job - Consists of group of tasks that must be performed for organization to achieve its goals • Position - Collection of tasks and responsibilities performed by one person; there is a position for every individual in organization

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two senior clerks.) • A work group consisting of a supervisor.Definitions (Cont. Inc. Copyright © 2010 Pearson Education. publishing as Prentice Hall 4-4 . and four word processing operators has 3 jobs and 7 positions.

Inc. publishing as Prentice Hall 4-5 .Questions Job Analysis Should Answer • What physical and mental tasks does worker accomplish? • When is job to be completed? • Where is job to be accomplished? • How does worker do job? • Why is job done? • What qualifications are needed to perform job? Copyright © 2010 Pearson Education.

Inc. publishing as Prentice Hall .Job Analysis: A Basic Human Resource Management Tool Staffing Training and Development Performance Appraisal Tasks Responsibilities Duties Job Descriptions Job Analysis Job Specifications Compensation Safety and Health Employee and Labor Relations Legal Considerations Knowledge Skills Abilities 4-6 Copyright © 2010 Pearson Education.

If specification lists particular knowledge. Inc.Value of job must be known before dollar value can be placed on it Copyright © 2010 Pearson Education.Reasons For Conducting Job Analysis • Staffing . and person filling position does not possess all necessary qualifications. training and/or development is needed • Performance Appraisal .Employees should be evaluated in terms of how well they accomplish duties specified in their job descriptions and any other specific goals that may have been established • Compensation .Haphazard if recruiter does not know qualifications needed for job • Training and Development . or ability. skill. publishing as Prentice Hall 4-7 .

Having done job analysis important for supporting legality of employment practices Copyright © 2010 Pearson Education. Inc.Reasons For Conducting Job Analysis (Cont. publishing as Prentice Hall 4-8 .Leads to more objective human resource decisions • Legal Considerations .) • Safety and Health .Helps identify safety and health considerations • Employee and Labor Relations .

for example). personal responsibility • Worker-oriented activities . such as energy expenditure Copyright © 2010 Pearson Education. activity records (in film form. Inc. publishing as Prentice Hall 4-9 .Summary of Types of Data Collected Through Job Analysis • Work Activities .Work activities and processes. such as physical actions and communicating on job. personal job demands. procedures used.Human behaviors. elemental motions for methods analysis.

and work aids used • Job-related tangibles and intangibles Knowledge dealt with or applied (as in accounting).) • Machines. equipment. publishing as Prentice Hall 4-10 .Error analysis.Summary of Types of Data Collected Through Job Analysis (Cont. tools. work measurements. such as time taken for a task Copyright © 2010 Pearson Education. Inc. materials processed. products made or services performed • Work performance . work standards.

physical working conditions.) • Job context .Work schedule. Inc. education and training required. financial and nonfinancial incentives.Summary of Types of Data Collected Through Job Analysis (Cont. publishing as Prentice Hall 4-11 .Personal attributes such as personality and interests. work experience Copyright © 2010 Pearson Education. organizational and social contexts • Personal requirements for job .

publishing as Prentice Hall 4-12 . Inc.Job Analysis Methods • • • • • Questionnaires Observation Interviews Employee recording Combination of methods Copyright © 2010 Pearson Education.

Questionnaires • • • • Typically quick and economical to use Structured questionnaire to employees Problem: Employees may lack verbal skills Some employees tend to exaggerate significance of their tasks Copyright © 2010 Pearson Education. Inc. publishing as Prentice Hall 4-13 .

publishing as Prentice Hall 4-14 . Inc.Observation • Job analyst watches worker perform job tasks and records observations • Used primarily to gather information on jobs emphasizing manual skills • Used alone is often insufficient • Difficulty: When mental skills are dominant in a job Copyright © 2010 Pearson Education.

Interviews • Interview both employee and supervisor • Interview employee first. Inc. helping him or her describe duties performed • Then. publishing as Prentice Hall 4-15 . analyst normally contacts supervisor for additional information Copyright © 2010 Pearson Education.

Employee Recording • Describe daily work activities in diary or log • Problem: Employees exaggerating job importance • Valuable in understanding highly specialized jobs Copyright © 2010 Pearson Education. publishing as Prentice Hall 4-16 . Inc.

Inc.Combination of Methods • Usually use more than one method • Clerical and administrative jobs: questionnaires supported by interviews and limited observation • Production jobs: interviews supplemented by extensive work observations may provide necessary data Copyright © 2010 Pearson Education. publishing as Prentice Hall 4-17 .

Other Methods Available for Conducting Job Analysis • Department of Labor Job Analysis Schedule • Functional Job Analysis • Position Analysis Questionnaire • Management Position Description Questionnaire • Guidelines-Oriented Job Analysis Copyright © 2010 Pearson Education. publishing as Prentice Hall 4-18 . Inc.

publishing as Prentice Hall 4-19 .Department of Labor Job Analysis Schedule • Structured job analysis questionnaire that uses a checklist approach to identify job elements • Focuses on general worker behaviors instead of tasks • Some 194 job descriptors relate to joboriented elements Copyright © 2010 Pearson Education. Inc.

and the organization • Modification of the job analysis schedule • Assesses specific job outputs and identifies job tasks in terms of task statements Copyright © 2010 Pearson Education.Functional Job Analysis • Concentrates on the interactions among the work. the worker. publishing as Prentice Hall 4-20 . Inc.

publishing as Prentice Hall 4-21 . Inc.Position Analysis Questionnaire • Uses a checklist approach to identify job elements • Focuses on general worker behaviors instead of tasks • 194 job descriptors relate to job-oriented elements • Each job being studied is scored relative to the 32 job dimensions Copyright © 2010 Pearson Education.

Management Position Description Questionnaire • Designed for management positions • Uses checklist to analyze jobs • Has been used to determine training needs of individuals who are slated to move into managerial positions • Has been used to evaluate and set compensation rates for managerial jobs and to assign jobs to job families Copyright © 2010 Pearson Education. publishing as Prentice Hall 4-22 . Inc.

and equipment. and abilities. (2) supervision. tools. (4) duties. Inc.Guidelines-Oriented Job Analysis • Step-by-step procedure for describing the work of a particular job classification • Obtains the following types of information: (1) machines. (5) knowledge. skills. and (7) differentiating requirements Copyright © 2010 Pearson Education. publishing as Prentice Hall 4-23 . (3) contacts. (6) physical and other requirements.

Inc.Conducting Job Analysis People who participate in job analysis should include. publishing as Prentice Hall 4-24 . at a minimum: • Employee • Employee’s immediate supervisor Copyright © 2010 Pearson Education.

and responsibilities of job • Vitally important job descriptions are both relevant and accurate Copyright © 2010 Pearson Education. publishing as Prentice Hall 4-25 . duties. Inc.Job Description • Document that states tasks.

publishing as Prentice Hall 4-26 . and to whom they report • The machines and equipment used on job Copyright © 2010 Pearson Education.Items Frequently Included In a Job Description • • • • • Major duties performed Percentage of time devoted to each duty Performance standards to be achieved Working conditions and possible hazards Number of employees performing the job. Inc.

publishing as Prentice Hall 4-27 .Content of a Job Description • Job Identification . reporting relationship.Major duties Copyright © 2010 Pearson Education.Aids in identifying job changes that would make description obsolete • Job Summary .Concise overview of job • Duties Performed . and job number or code • Job Analysis Date . Inc. department.Job title.

Inc. publishing as Prentice Hall 4-28 . the Occupational Information Network • Comprehensive government-developed database of worker attributes and job characteristics • Primary source of occupational information • Replaces Dictionary of Occupational Titles (DOT) Copyright © 2010 Pearson Education.O*NET.

publishing as Prentice Hall 4-29 . Inc. not ideal qualifications for particular job • Job specifications are often included as major section of job descriptions Copyright © 2010 Pearson Education.Minimum qualifications person should possess to perform particular job • Should reflect minimum.Job Specification • Job Specification .

Problems If Job Specifications Are Inflated • May systematically eliminate minorities or women from consideration • Compensation costs will increase • Job vacancies will be harder to fill Copyright © 2010 Pearson Education. Inc. publishing as Prentice Hall 4-30 .

Copyright © 2010 Pearson Education. publishing as Prentice Hall 4-31 . Inc.Timeliness of Job Analysis Rapid pace of technological change makes need for accurate job analysis even more important now and in the future.

publishing as Prentice Hall 4-32 .” is increasingly becoming THE job description. there are no narrow jobs • Work departments do is often bundled into teams • Last duty shown on proverbial job description. Copyright © 2010 Pearson Education. Inc.Job Analysis for Team Members • With team design. “And any other duty that may be assigned.

Inc.Employees categorized as exempt or nonexempt Copyright © 2010 Pearson Education.Job Analysis and the Law • Equal Pay Act . publishing as Prentice Hall 4-33 .Similar pay must be provided if jobs are not substantially different as shown in job descriptions • Fair Labor Standards Act .

Job Analysis and the Law (Cont. and other areas of HR administration • Occupational Safety and Health Act . Inc. publishing as Prentice Hall 4-34 . promotion.Specify job elements that endanger health or are considered unsatisfactory or distasteful by most people • Americans with Disabilities Act .Make reasonable accommodations for disabled workers Copyright © 2010 Pearson Education.Basis for adequate defenses against unfair discriminations charges in selection.) • Civil Rights Act .

Trends & Innovations: Talent Management • Process of anticipating workforce needs. Inc. attracting highly skilled workers and integrating and developing them to achieve maximum workforce productivity • Basically talent management exists to support company objectives • Companies are going to have to be innovative as they attempt to recruit highly talented individuals Copyright © 2010 Pearson Education. managing current workers. 4-35 publishing as Prentice Hall .

publishing as Prentice Hall 4-36 .Strategic Planning • Strategic Planning .Process by which top management determines overall organizational purposes and objectives and how they are to be achieved • Strategic planning at all levels can be divided into four steps Copyright © 2010 Pearson Education. Inc.

but attainable • Measurable • Time-specific • Documented (written) OBJECTIVE SETTING Specifying and documenting corporate-level strategies and planning STRATEGY SETTING STRATEGY IMPLEMENTATION Copyright © 2010 Pearson Education. threats. publishing as Prentice Hall 4-37 .Strategic Planning and Implementation Process Decide what is to be accomplished (purpose) Determine principles that will guide the effort MISSION DETERMINATION External Determining external conditions. and opportunities Determining Internal competencies. strengths. and weaknesses within the organization ENVIRONMENTAL ASSESSMENT Specifying corporate-level objectives that are: • Challenging. Inc.

publishing as Prentice Hall 4-38 . Inc.Strategy Implementation • Leadership • Organizational Structure • Information and Control Systems • Technology • Human Resources Copyright © 2010 Pearson Education.

publishing as Prentice Hall 4-39 .Human Resource Planning Systematic process of matching internal and external supply of people with job openings anticipated in the organization over a specified period of time Copyright © 2010 Pearson Education. Inc.

Layoffs. Downsizing Forecasting Human Resource Availability Demand = Supply No Action Shortage of Workers Recruitment Selection 4-40 Copyright © 2010 Pearson Education.Human Resource Planning Process External Environment Internal Environment Strategic Planning Human Resource Planning Forecasting Human Resource Requirements Comparing Requirements and Availability Surplus of Workers Restricted Hiring. Reduced Hours. publishing as Prentice Hall . Early Retirement. Inc.

skill.Definitions • Requirements forecast . publishing as Prentice Hall 4-41 .Determination of whether firm will be able to secure employees with necessary skills. Inc. and from what sources Copyright © 2010 Pearson Education. and location of employees organization will need at future dates in order to meet goals • Availability forecast .Determining number.

starting with lowest.Each level of organization. Inc. forecasts its requirements to provide aggregate of employment needs. publishing as Prentice Hall 4-42 . Copyright © 2010 Pearson Education.Forecasting Human Resource Requirements • Zero-based forecasting Uses current level as starting point for determining future staffing needs • Bottom-up approach .

Copyright © 2010 Pearson Education.) • Relationship between Volume of Sales and Number of Workers Required • Simulation Models . publishing as Prentice Hall 4-43 .Forecasting Human Resource Requirements (Cont. A model is abstraction of the real world. Inc.Simulation is a forecasting technique for experimenting with real-world situation through mathematical model representing that situation.

Inc.The Relationship of Sales Volume to Number of Employees Number of Employees 500 400 300 200 100 0 10 20 30 40 Sales (thousands) 50 60 4-44 Copyright © 2010 Pearson Education. publishing as Prentice Hall .

and from what sources • Show whether needed employees may be obtained within company. Inc.Forecasting HR Availability • Determining whether firm will be able to secure employees with necessary skills. or from combination of these sources Copyright © 2010 Pearson Education. publishing as Prentice Hall 4-45 . from outside organization.

publishing as Prentice Hall 4-46 . Growing trend: Automatically notify qualified employees of new positions. • Databases include information on all managerial and nonmanagerial employees.Use of HR Databases • Many workers needed for future positions may already work for firm. Copyright © 2010 Pearson Education. Inc. • Companies search databases within company to see if employees with needed qualifications already exist.

publishing as Prentice Hall 4-47 . Inc.Shortage of Workers Forecasted • Creative recruiting • Compensation incentives – Premium pay is one method • Training programs – Prepare previously unemployable people for positions • Different selection standards Copyright © 2010 Pearson Education.

Surplus of Employees
• Restricted hiring – Employees who leave are not replaced • Reduced hours • Early retirement • Downsizing - Layoffs
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Downsizing
• Also known as restructuring and rightsizing • Reverse of company growing and suggests one-time change in organization and number of people employed • Typically, both organizational structure and number of people in the organization shrink for purpose of improving organizational performance
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System Used In the Event of Downsizing
• Unionized - Seniority usually is the basis • Union-free - Productivity and needs of the organization • Retention bonuses are used to entice terminated employees to remain for short periods of time to ensure continued services
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publishing as Prentice Hall 4-51 . fearing they may be in line for layoffs Copyright © 2010 Pearson Education. making advancement in organization more difficult • Workers may seek better opportunities.Negative Aspects of Downsizing • Cost associated with low morale of those remaining • Layers removed. Inc.

) • • • • Employee loyalty significantly reduced Institutional memory lost Remaining workers required to do more When demand for products/services returns.Negative Aspects of Downsizing (Cont. firm may realize it has cut too deep • May be an increase in number of discrimination lawsuits Copyright © 2010 Pearson Education. Inc. publishing as Prentice Hall 4-52 .

publishing as Prentice Hall 4-53 .Outplacement • Laid-off employees given assistance in finding employment elsewhere • Companies use outplacement to take care of employees by moving them successfully out of company rather than having to do it on their own Copyright © 2010 Pearson Education. Inc.

Succession Planning • Process of ensuring that qualified persons are available to assume key managerial positions once the positions are vacant • Goal is to help ensure a smooth transition and operational efficiency Copyright © 2010 Pearson Education. publishing as Prentice Hall 4-54 . Inc.

Inc. and Ike Copyright © 2010 Pearson Education.Disaster Planning • Should focus on catastrophes that range from natural calamities such as hurricanes. and floods to man-made crises such as 9/11 • Always significant human resource issues to address • Hurricanes Katrina. publishing as Prentice Hall 4-55 . earthquakes. Rita. Gustav.

publishing as Prentice Hall 4-56 .Human Resource Information Systems (HRIS) Any organized approach for obtaining relevant and timely information on which to base HR decisions Copyright © 2010 Pearson Education. Inc.

. publishing as Prentice Hall 4-57 .. prescription drug programs) Health Programs (e. Copyright © 2010 Pearson Education.HUMAN RESOURCE INFORMATION SYSTEM Goal: Integrate Core Processes into Seamless System Input Data Types Job Analysis Recruitment Selection/Job Posting/ Employee Referral T&D Performance Appraisal Compensation Benefits Safety Health Labor Relations Employee Relations Output Data Uses* Employee Tracking Diversity Programs Hiring Decisions Training Programs/Elearning/Management Succession Contribute Toward Achievement of: Organizational Strategic Plans Human Resource Information System Compensation Programs Benefit Programs (e. Inc.g. Employee Assistance Programs) Bargaining Strategies Employee Services Human Resource Management Plans *Manager and employee self-service is available.g.

and processes that support manager’s job • MSS can help managers develop and grow staff and assist employees in determining their career paths and developing required competencies Copyright © 2010 Pearson Education.Manager Self-Service • Use of software and corporate network to automate paper-based processes requiring manager’s approval. publishing as Prentice Hall 4-58 . Inc. recordkeeping or input.

publishing as Prentice Hall 4-59 . Inc.Employee Self-Service (ESS) • Processes that automate transactions formerly laborintensive for employees and HR professionals • ESS applications can free up valuable HR staff time. reducing administrative time and costs Copyright © 2010 Pearson Education.

methods used in performing these tasks. and how job relates to other work in organization • Job enrichment . Inc. publishing as Prentice Hall 4-60 . to provide greater challenge to worker Copyright © 2010 Pearson Education.Job Design • Process of determining specific tasks to be performed.Basic changes in content and level of responsibility of job.

Job Design (Cont.) • Job enlargement . such as cost.Changes in scope of job to provide greater variety to worker • Reengineering . service and speed Copyright © 2010 Pearson Education. publishing as Prentice Hall 4-61 .Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance. Inc. quality.

.S. publishing as Prentice Hall 4-62 . but Differently • Indian companies invested $6 billion in U. Inc. which created jobs for Americans • Most Indian companies going global have adopted strategy of ‘not rocking the boat’ at their newly acquired foreign operations • Gaining an appreciation of local laws and customs is important • Language and food choices often present challenges Copyright © 2010 Pearson Education.A Global Perspective: India Getting the Job Done.

Printed in the United States of America. recording. publishing as Prentice Hall .All rights reserved. Inc. Copyright © 2010 Pearson Education. No part of this publication may be reproduced. photocopying. or otherwise. or transmitted. stored in a retrieval system. without the prior written permission of the publisher. mechanical. electronic. in any form or by any means.

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