You are on page 1of 61

Human Resource Management



Part 2 | Recruitment and Placement

Chapter HRP & Job Analysis


The Strategic Management Process

Strategic Management
The process of identifying and executing the organizations mission by matching its capabilities with the demands of its environment.

A chosen course of action.

Strategic Plan
How an organization intends to balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage over the long-term.

Strategic Planning and Implementation Process


Decide what is to be accomplished (purpose) Determine principles that will guide the effort

External Determining external conditions, threats, and opportunities Internal Determining competencies, strengths, and weaknesses within the organization.

Specifying corporate-level objectives that are: Challenging, but attainable Measurable Time-specific Documented (written) Specifying and documenting corporate level strategies and planning




Linking Employers Strategy to Plans


Planning and Forecasting

Employment or Personnel Planning The process of deciding what positions the firm will have to fill, and how to fill them. Succession Planning The process of deciding how to fill the companys most important executive jobs. What to Forecast? Overall personnel needs The supply of inside candidates The supply of outside candidates


What is it?

Human resource planning involves getting the right number of qualified people into the right jobs at the right time. It essentially involves forecasting personnel needs, assessing personnel supply and matching demand-supply factors through personnel-related programmes.

Through HR planning a company learns .. how many employees with what kinds of qualifications at which point of time at which location .... are required to achieve performance objectives.



It delivers a solid basis for decisions regarding Recruiting People development Company development Workforce reduction Company strategy


Factors Affecting HRP

Organisational Growth Cycle and Planning

Type and Strategy of Organisation

Environmental Uncertainties

Time Horizons


Type and Quality of Forecasting Information

Nature of Jobs being Filled


Human Resources Planning

Resources Demand forecasting

Resources Supply forecasting

Human Resource Actions Hiring Training Career Management Productivity program Reduction in workforce


Requirements forecast - Determining number, skill, and location of employees organization will need at future dates in order to meet goals Availability forecast - Determination of whether firm will be able to secure employees with necessary skills, and from what sources

2008 by Prentice Hall


Methods Used for Human Resource Planning

1.Approaches to forecasting:
a. Qualitative: Expert opinions Delphi technique Bottom-up approach b. Quantitative: Regression analysis / Trend analysis Markov analysis



1.Supply Analysis
a. Skills inventories
Card systems Human Resource Information Systems (HRIS)

b. Replacement charts / Succession plans


Forecasting HR Availability

Determining whether firm will be able to secure employees with necessary skills, and from what sources Show whether needed employees may be obtained within company, from outside organization, or from combination of these sources


Use of HR Databases
Many workers needed for future positions may already work for firm Databases include information on all managerial and nonmanagerial employees Companies search databases within company to see if employees with needed qualifications already exist. Growing trend is to automatically notify qualified employees of new positions.

2008 by Prentice Hall


Qualitative Approaches to Demand Forecasting

Management Forecasts
The opinions (judgments) of supervisors, department

managers, experts, or others knowledgeable about the organizations future employment needs.

Delphi Technique
It solicits estimates of personnel needs from a group of

experts, usually managers. The HRP experts act as intermediaries, summarize the various responses and report the findings back to the experts. Summaries and surveys are repeated until the experts opinions begin to agree. Distinguishing feature absence of interaction among experts.

Quantitative Approach for Demand


Trend analysis/ratio-trend analysis

HR need can be estimated by examining past trends. Past rate of change can be projected into future or employment growth can be estimated by its relationship with a particular index. For example 2009-10 : Production of Units = 5000 2009-10 : No. of workers = 100 Ratio : 100/5000 2010-11 : Estimated production = 8000 No. of workers required = 8000 X 100/5000 = 160


Work-load analysis Company tries to calculate the number of persons required for various jobs w.r.t. a planned output after giving weightage to factors such as absenteeism, idle time etc. For example: Planned output for the year = 10000 pieces Standard hours per piece = 3 hours Planned hours required = 30,000 hours Productive hrs per person per year = 1000 hrs (estimated on annual basis) 25 No. of workers required = 30

Forecasting Supply of Employees: Internal Labor Supply

Staffing Tables Markov Analysis Skill Inventories Replacement Charts Succession Planning


Forecasting Internal Labor Supply

Staffing Tables

Graphic representations of all organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements. Markov Analysis A method for tracking the pattern of employee movements through various jobs.


Hypothetical Markov Analysis for a Retail Company


Internal Supply Forecasting Tools

Skill Inventories Files of personnel education, experience, interests, skills, etc., that allow managers to quickly match job openings with employee backgrounds. Replacement Charts Listings of current jobholders and persons who are potential replacements if an opening occurs. Succession Planning The process of identifying, developing, and tracking key individuals for executive positions.


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* Contribute Toward Achievement of: Employee Tracking Diversity Programs Hiring Decisions Training Programs/EOrganizational learning/Management Succession

Strategic Plans

Human Resource Information System

Compensation Programs Benefit Programs (e.g., prescription drug programs) Health Programs (e.g., Employee Assistance Programs) Bargaining Strategies Employee Services

Human Resource Management Plans

*Manager and employee self-service is available.

Job Design
Process of determining specific tasks to be performed, methods used in performing these tasks, and how job relates to other work in organization Job design is the conscious efforts to organize tasks, duties and responsibilities into one unit of work. It involves identification of individual tasks specification of methods of performing the tasks combination of tasks into specific jobs to be assigned to individuals

2008 by Prentice Hall


Nature of Job Design

Job Enrichment - Basic changes in content and level of responsibility of job, to provide greater challenge to worker. Job Enlargement - Changes in scope of job to provide greater variety to worker and increasing the number of tasks a worker performs. Reengineering - Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service and speed

Human Resource Management




2008 by Prentice Hall


What is a Job?
Job A group of related activities and duties Position The different duties and responsibilities performed by only one employee Job Family A group of individual jobs with similar characteristics





Definitions (Cont.)
A work group consisting of a supervisor, two senior clerks, and four word processing operators has 3 jobs and 7 positions.

2008 by Prentice Hall


Goal: Match Person & Job

Need information about the Person & about the 38 Job

HRP, JD & JA Model

Job Description

HR Planning Job Design Job Analysis

Macro Micro

Job Specification

Other HRM Activities

(Recruitment, Selection, Performance appraisal, Training, Compensation)

Productivity, QWL, Legal Compliance

Job Analysis
Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization

It is the process of collecting & analyzing information about jobs to write: Job Description: a document that identifies the tasks & duties performed by a job Job Specification: a document that identifies the qualifications required by a job


Job Description and Job Specification in Job Analysis

Job Analysis A process of obtaining all pertinent job facts

Job Description A statement containing items such as Job title Location Job summary Duties Machines, tools, and equipment Materials and forms used Supervision given or received Working conditions hazards

Job specification A statement of human qualifications necessary to do the job. Usually contains such items as Education Experience Training Judgement Initiative Physical efforts Physical skills Responsibilities Communication skills Emotional characteristics Unusual sensory demands such as sight, smell, hearing

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?


Job Analysis: A Basic Human Resource Management Tool

Tasks Responsibilities Duties
Staffing Training and Development Performance Appraisal Compensation Safety and Health Employee and Labor Relations Legal Considerations

Job Descriptions Job Analysis Job Specifications




Job Analysis Products

Job description Title, reporting relationships (up, down, sideways, external) job summary, responsibilities, duties, MBO/R: Key Result Areas (KRAs), scope of authority. Position of organisation chart. Career/promotion path. working conditions Competencies specification levels, range of situations, performance indicators, knowledge/wisdom, experience, skills (psycho-motor, technical, analytical, literary, spoken, numeric, social and emotional), personal orientations and motivators. Personnel specification (person profile) characteristics of ideal candidate. Essentials - desirables disqualifiers

Reasons For Conducting Job Analysis

Staffing - Haphazard if recruiter does not know qualifications needed for job Training and Development - If specification lists particular knowledge, skill, or ability, and person filling position does not possess all necessary qualifications, training and/or development is needed Performance Appraisal - Employees should be evaluated in terms of how well they accomplish the duties specified in their job descriptions and any other specific goals that may have been established Compensation Value of job must be known before dollar value can be placed on it

Reasons For Conducting Job Analysis (Cont.)

Safety and Health Helps identify safety and health considerations Employee and Labor Relations Lead to more objective human resource decisions Legal Considerations Having done job analysis important for supporting legality of employment practices


Summary of Types of Data Collected Through Job Analysis

Work Activities - Work activities and processes; activity records (in film form, for example); procedures used; personal responsibility Worker-oriented activities - Human behaviors, such as physical actions and communicating on job; elemental motions for methods analysis; personal job demands, such as energy expenditure


Summary of Types of Data Collected Through Job Analysis (Cont.)

Machines, tools, equipment, and work aids used
Job-related tangibles and intangibles - Knowledge dealt with or applied (as in accounting); materials processed; products made or services performed Work performance - Error analysis; work standards; work measurements, such as time taken for a task

2008 by Prentice Hall


Summary of Types of Data Collected Through Job Analysis (Cont.)

Job context - Work schedule; financial and nonfinancial incentives; physical working conditions; organizational and social contexts
Personal requirements for job - Personal attributes such as personality and interests; education and training required; work experience


Methods of Collecting Job Analysis Information: The Interview

Information Sources
Individual employees Groups of employees Supervisors with knowledge of the job

Interview Formats
Structured (Checklist) Unstructured

Quick, direct way to find overlooked information

Distorted information

FIGURE 43 Job Analysis Questionnaire for Developing Job Descriptions

Note: Use a questionnaire like this to interview job incumbents, or have them fill it out.

Source: Reprinted with permission of the publisher, Business and Legal Reports, Inc., Old Saybrook, CT 2004.


FIGURE 43 Job Analysis Questionnaire for Developing Job Descriptions (contd)

Note: Use a questionnaire like this to interview job incumbents, or have them fill it out.

Source: Reprinted with permission of the publisher, Business and Legal Reports, Inc., Old Saybrook, CT 2004.

2009 Dorling Kindersley (I) Pvt. Ltd.


Methods of Collecting Job Analysis Information: Questionnaires

Information Source
Have employees fill out questionnaires to describe their job-related duties and responsibilities

Quick and efficient way to gather information from large numbers of employees

Expense and time consumed in preparing and testing the questionnaire

Questionnaire Formats
Structured checklists Open-ended questions

2009 Dorling Kindersley (I) Pvt. Ltd.


Methods of Collecting Job Analysis Information: Observation

Information Source
Observing and noting the physical activities of employees as they go about their jobs

Provides first-hand information Reduces distortion of information

Time consuming Difficulty in capturing entire job cycle Of little use if job involves a high level of mental activity

2009 Dorling Kindersley (I) Pvt. Ltd.


Methods of Collecting Job Analysis Information: Participant Diary/Logs

Information Source
Workers keep a chronological diary/ log of what they do and the time spent on each activity

Produces a more complete picture of the job Employee participation

Distortion of information Depends upon employees to accurately recall their activities

2009 Dorling Kindersley (I) Pvt. Ltd.


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


Writing Job Descriptions

Job Identification

Job Specifications

Job Summary

Working Conditions

Sections of a Typical Job Description

Responsibilities and Duties

Standards of Performance

Authority of the Incumbent

2009 Dorling Kindersley (I) Pvt. Ltd.


FIGURE 48 Sample Job Description, Pearson Education

2009 Dorling Kindersley (I) Pvt. Ltd.


FIGURE 48 Sample Job Description, Pearson Education (contd)

Source: Courtesy of Dorling Kindersley, India.

2009 Dorling Kindersley (I) Pvt. Ltd.


The Job Description

Job Identification
Job title Preparation date Preparer

Responsibilities and Duties

Major responsibilities and duties (essential functions) Decision-making authority Direct supervision Budgetary limitations

Job Summary
General nature of the job Major functions/activities

Reports to: Supervises: Works with: Outside the company:

Standards of Performance and Working Conditions

What it takes to do the job successfully