Human Resource Planning,

Job Analysis & Design

Unit 2
 Human Resource Planning
The process of deciding what positions the firm will have
to fill, and how to fill them.
The basic purpose of having a human resource plan is to
have an accurate estimate of the number of employees
required, with matching skill requirements to meet
organizational objectives.
 Objectives of Human Resource
Planning
i. Forecast personnel requirements: HR planning is
essential to determine the future manpower needs in an
organisation.
ii. Cope with changes: HR planning is required to cope with
changes in market conditions, technology, products and
government regulations in an effective way.
iii. Use existing manpower productively :By keeping an
inventory of existing personnel in an enterprise by skill,
level, training, educational qualifications, work experience,
it will be possible to utilize the existing resources more
usefully in relation to the job requirements.
iv. Promote employees in a systematic manner: HR
planning provides useful information on the basis of which
management decides on the promotion of eligible
personnel in the organisation.
 Importance of Human Resource
Planning
• Organizations use HRP to meet future challenges, cut
costs, and achieve greater effectiveness.

• Create a talent pool

• Prepare people for future
• Expand or contract
• Cope with organizational changes
• Cut costs
• Help succession planning
 The Process Of HRP

The HRP is a four step process:

Demand forecasting,
Supply forecasting,
Estimating manpower gaps
Formulating HR plans.
 Demand Forecasting

- Demographics, growth plan, turnover history.

- Short-term ( daily , weekly, seasonal )
- Long-term ( industry publications, economic forecasts)
- Forecast revenues
- Projected turnover, decisions to upgrade, productivity
changes, financial resources ,etc.
 Forecasting Tools

Forecasting Tools

Scatter
Trend analysis Ratio analysis
plotting

Trend analysis -
-Study of a firms past employment needs over a period of years to
predict future needs.
- can provide an initial estimate of future staffing needs, but
employment levels rarely depend just on the passage of time. Other
factors (like changes in sales volume and productivity) also affect
staffing needs.
Ratio analysis
-A forecasting technique for determining future staff needs by using
ratios between sales volume and no. of employees needed.
-provides forecasts based on the historical ratio between (1) some
causal factor (like sales volume) and (2) the number of employees
required (such as number of salespeople).

A scatter plot
-A graphical method used to help identify the relationship between
two variables.
- shows graphically how two variables—such as sales and your firm’s
staffing levels—are related. If they are, and then if you can forecast
the business activity (like sales), you should also be able to estimate
your personnel needs.
FIGURE 5–3 Determining the Relationship Between
Hospital Size and Number of Nurses

Hospital Size Number of

(Number Registered
of Beds) Nurses

200 240

300 260

400 470

500 500

600 620

700 660

800 820

900 860

Note: After fitting the line,

you can project how many
employees are needed,
given your projected
volume.

Copyright © 2011 Pearson Education 5–11

 Drawbacks to Traditional Forecasting
Techniques
• They focus on projections and historical relationships.
• They do not consider the impact of strategic initiatives on
future staffing levels.
• They support compensation plans that reward managers
for managing ever-larger staffs.
• They “bake in” the idea that staff increases are inevitable.
• They validate and institutionalize present planning
processes and the usual ways of doing things.
 II. Preparing Manpower Inventory
(Supply Forecasting)
• The basic purpose of preparing manpower inventory is to
find out the size and quality of personnel available within
the organisation to man various positions.
• Every organisation will have two major sources of
supply of manpower: internal and external.
Forecasting the Supply of Inside
Candidates

Qualification
Inventories

Manual systems and Computerized skills

replacement charts inventories

5–14
• Qualifications (or skills) inventories:
• Manual or computerized records listing employees education,
career and development interests, languages, special skills, and
so on, to be used in selecting inside candidates for promotion.

• Manual systems and replacement charts:

• Company records showing present performance and
promotability of inside candidates for the most important
positions.
• - education, company-sponsored courses taken, career and
development interest, languages, desired assignments,
skills,etc.
Management Replacement Chart Showing Development Needs of Potential
Future Divisional Vice Presidents
• Position replacement card:
• A card prepared for each position in a company to show
possible replacement candidates and their qualifications.

• Computerised skill inventories:

- Are used to track the qualifications of hundreds or thousands of
employees. The system can provide managers with a listing of
candidates with specified qualifications after scanning the database.
- Work experiences codes, product knowledge, the employees level of
familiarity with the employers product lines or services, the persons
industry experience and formal education.
• Markov analysis:
• To forecast availability of internal job candidates.
• Uses historical information from personnel movements of the
internal labour supply to predict what will happen in the
future.
Estimated internal labour supply for
a given firm
 Forecasting Outside Candidate Supply
• Factors In Supply of Outside Candidates
• General economic conditions
• Expected unemployment rate
• Sources of Information – economic and employment
projections from NITI Aayog, RBI, Ministry of labour, GOI
External labour supply:

• External hires need to be contacted when suitable

internal replacements are not available.
• A growing number of firms are now using
computerised human resource information systems to
track the qualifications of hundreds or thousands of
employees.
• HRIS can provide managers with a listing of candidates
with required qualifications after scanning the data
base.
 Manpower Gap Analysis

This is used to reconcile the forecasts of labour demand

and supply. This process identifies potential skill shortages
or surpluses of employees, skills and jobs
Estimating manpower requirements
 Formulating HR Plans

Once supply and demand for labour is known adjustments

can be made formulating requisite HR plans
• i. Recruitment plan: Will indicate the number and type of
people required and when they are needed; special plans
to recruit right people and how they are to be dealt with
via the recruitment programme.

• ii. Redeployment plan: Will indicate the programmes for

transferring or retraining existing employees for new jobs.
• iii. Redundancy plan: Will indicate who is redundant,
when and where; the plans for retraining, where this is
possible; and plans for golden handshake, retrenchment,
lay-off, etc.

• iv. Training plan: Will indicate the number of trainees or

apprentices required and the programme for recruiting or
training them; existing staff requiring training or
retraining; new courses to be developed or changes to be
effected in existing courses.
• v. Productivity plan: Will indicate reasons for employee
productivity or reducing employee costs through work
simplification studies, mechanisation, productivity
bargaining; incentives and profit sharing schemes, job
redesign, etc.
• vi. Retention plan: Will indicate reasons for employee
turnover and show strategies to avoid wastage through
compensation policies; changes in work requirements
and improvement in working conditions.
• vii. Control points: The entire manpower plan be
subjected to close monitoring from time to time. Control
points be set up to find out deficiencies, periodic updating
of manpower inventory, in the light of changing
circumstances, be undertaken to remove deficiencies and
develop future plans.
 Job Analysis

• Job Analysis – is the procedure through which you

determine the duties and skill requirements of a
job and the kind of person who should be hired for
it.
• Job Description- A list of what the job entails
• Job specification – what kind of people to hire for a
job.
 The Basics of Job Analysis
• Work activities
• Human behaviors
• Machines, tools,
equipment, and work aids
• Performance standards
• Job context
• Human requirements
 Uses of Job Analysis Information
• Recruitment and
selection
• Legal compliance
(EEO)
• Performance
appraisal
• Compensation-
Job evaluation
• Training Uses of Job Analysis Information
Conducting a Job Analysis
• There are six steps in conducting a job analysis:
• Step 1: Decide how you’ll use the information.
• Step 2: Review relevant background information such as
organization charts, process charts, and job descriptions.
• Step 3: Select representative positions- sample of 10
• Step 4: Actually analyze the job by collecting data on job
activities, working conditions, and human traits and abilities
needed to perform the job.
• Step 5: Verify the job analysis information with the worker
performing the job and with his or her immediate
supervisor.
• Step 6: Develop a job description and job specification.
 Processes involved in Job Analysis
• Workflow Analysis
 Business Process Reengineering.
• Business process reengineering means redesigning business
processes, usually by combining steps, so that small
multifunction teams, often using information technology, do
the jobs formerly done by a sequence of departments.
• The basic reengineering approach is to:
1. Identify a business process to be redesigned
2. Measure the performance of the existing processes.
3. Identify opportunities to improve these processes.
4. Redesign and implement a new way of doing the work.
5. Assign ownership of sets of formerly separate tasks to an
individual or a team who use new.
computerized systems to support the new arrangement.
• Job Redesign.
-Researches proposed redesigning jobs using methods such as
job enlargement, job rotation, and job enrichment.
• Job enlargement - assigning workers additional same-level
activities.
• Job rotation - systematically moving workers from one job to
another.
• Job enrichment - redesigning jobs in a way that increases
the opportunities for the worker to experience feelings of
responsibility, achievement, growth, and recognition—and
therefore more motivation. It does this by empowering the
 Methods for Collecting Job Analysis
Information
1. Interviews
2. Quantitative
“position analysis”
questionnaire
3. Additional Things to
keep in mind
The Interview

1. Typical Questions
2. Structure Interviews- general purpose of the job;
supervisory responsibilities; job duties; and
education, experience, and skills required. Such
structured lists are not just for interviews. Job
analysts who collect information by personally
observing the work or by using questionnaires
3. Pros and Cons
4. Interviewing Guidelines
Questionnaires
Employees fill out questionnaires to describe their
job duties and responsibilities
Observations
Participant Diary /Logs
Ask workers to keep a diary/log; here for every
activity engaged in, the employee records the
activity (along with the time) in a log.
Quantitative Job Analysis Techniques
1. Position Analysis Questionnaire- Is a questionnaire
used to collect quantifiable data concerning the duties
and responsibilities of various jobs. The position
analysis questionnaire (PAQ) is a very popular
quantitative job analysis tool, consisting of a
questionnaire containing 194 items.
- Decision making/Communication/ Social responsibility
- -performing skilled activities
- -being physically active
- -operating equipment's
- -processing information
Electronic Job Analysis Methods
 Job Description.
• .A job description is a written statement of what the
worker actually does, how he or she does it, and what the
job’s working conditions are. You use this information to
write a job specification; this lists the knowledge,
abilities, and skills required to perform the job
satisfactorily.
 Writing Job Descriptions
• Job identification
• Job summary
• Responsibilities and duties
• Authority of incumbent
• Standards of performance
• Working conditions
• Job specifications
 Job Identification

FIGURE 4-7 Sample Job Description, Pearson Education

Source: Reprinted and electronically reproduced by permission of Pearson Education,
Inc., Upper Saddle River, New Jersey.
 Job Summary
SUMMARY (Write a brief summary of job.)
The person in this position is responsible for selling college
textbooks, software, and multimedia products to
professors, via incoming and outgoing telephone calls, and
to carry out selling strategies to meet sales goals in
assigned territories of smaller colleges and universities. In
addition, the individual in this position will be responsible
for generating a designated amount of editorial leads and
communicating to the publishing groups product feedback
and market trends observed in the assigned territory.
Relationships
Shows the jobholder’s
relationships with others inside
and outside the organization.

Reports to
Supervises
Works with
Outside the company
Responsibilities and Duties (1 of 6)

PRIMARY RESPONSIBILITIES (List in order of importance

and list amount of time spent on task.)
Driving Sales (60%)
•Achieve quantitative sales goal for assigned territory of
smaller colleges and universities.
•Determine sales priorities and strategies for territory and
develop a plan for implementing those strategies.
•Conduct 15–20 professor interviews per day during the
academic sales year that accomplishes those priorities.
Responsibilities and Duties (2 of 6)

• Conduct product presentations (including texts, software,

and Web site); effectively articulate author’s central vision of
key titles; conduct sales interviews using the PSS model;
conduct walk-through of books and technology.
• Employ telephone selling techniques and strategies.
• Sample products to appropriate faculty, making strategic use
of assigned sampling budgets.
• Close class test adoptions for first edition products.
• Negotiate custom publishing and special packaging
agreements within company guidelines.
Responsibilities and Duties (3 of 6)

• Initiate and conduct in-person faculty presentations and

selling trips as appropriate to maximize sales with the
strategic use of travel budget. Also use internal resources to
support the territory sales goals.
• Plan and execute in-territory special selling events and book-
fairs.
• Develop and implement in-territory promotional campaigns
and targeted email campaigns.
Responsibilities and Duties (4 of 6)

Publishing (editorial/marketing) 25%

•Report, track, and sign editorial projects.
•Gather and communicate significant market feedback and
information to publishing groups.
 Responsibilities and Duties (5 of 6)
Territory Management 15%
•Track and report all pending and closed business in assigned
database.
•Maintain records of customer sales interviews and adoption
situations in assigned database.
•Manage operating budget strategically.
•Submit territory itineraries, sales plans, and sales forecasts as
assigned.
•Provide superior customer service and maintain professional
bookstore relations in assigned territory.
Responsibilities and Duties (6 of 6)

Decision-Making Responsibilities for This Position:

Determine the strategic use of assigned sampling budget to
most effectively generate sales revenue to exceed sales goals.
Determine the priority of customer and account contacts to
achieve maximum sales potential.
Determine where in-person presentations and special selling
events would be most effective to generate the most sales.
Standards of Performance and Working
Conditions
For example:
Duty: Accurately Posting Accounts Payable
1. Post all invoices received within the same working
day.
2. Route all invoices to the proper department managers
for approval no later than the day following receipt.
3. Commit an average of no more than three posting
errors per month.

The job description may also list the job’s working

conditions, such as noise level, hazardous conditions, or
heat.
Steps in using O*NET to write job
descriptions
Step 1. Review Your Plan
Step 2. Develop an Organization Chart
Step 3. Use a Job Analysis Questionnaire
Step 4. Obtain Job Duties from O*NET
Step 5. List the Job’s Human Requirements from
O*NET
Step 6. Finalize the Job Description.
 Writing Job Specifications

• “What human traits and experience are required to do this

job effectively?” It shows what kind of person to recruit and
what qualities you should test that person for.
 Writing Job Specifications (2 of 2)
• Trained vs. untrained
• Judgment
• Statistical analysis
• Job Requirement Matrix
 Job evaluation
Job evaluation
• A systematic comparison done in order to determine
the worth of one job relative to another.
•Compensable factor
• A fundamental, compensable element of a job, such as
skills, effort, responsibility, and working conditions.

56
  
Job evaluation Procedure
a. Gaining acceptance
b. Creating job evaluation committee
c. Find the jobs to be evaluated
d. Analyze and prepare job description.
e. Select the method of evaluation
f. Classify the jobs
g. Installing the programme
h. Review periodically
 Preparing for the Job Evaluation

• Identifying the need for the job evaluation

• Getting the cooperation of employees
• Choosing an evaluation committee.
• Performing the actual evaluation.

11–58
 Job Evaluation Methods
• Market-Base :
• Many firms, particularly smaller ones, simply use a market-based
approach. Doing so involves conducting formal or informal salary
surveys to determine what others in the relevant labor markets are
paying for particular jobs. They then use these figures to price their
own jobs.

• Job Evaluation method

Job Evaluation Methods:
1.Ranking:
• Ranking each job relative to all other jobs, usually based on some
overall factor like ‘job difficulty’.
⮚Jobs are arranged from highest to lowest , in the order of their
value to the organisation.
⮚Jobs can be arranged in the order of difficulty in performing
them.
⮚Jobs are examined as a whole rather than on the basis of
important factors.
⮚Job at the top of the list has highest value & the one at the
bottom of the list will have lowest value.

11–60
Job Evaluation Methods: Ranking

Table 11-2 Job Ranking at Jackson Hospital

Ranking Order Our Current Annual What Others Pay: Our Final
Pay Scale Salary Survey Pay Assigned Pay
1. Office manager $43,000 $45,000 $44,000
2. Chief nurse 42,500 43,000 ​ 42,750
3. Bookkeeper 34,000 36,000 35,000
4. Nurse 32,500 33,000 32,750
5. Cook 31,000 32,000 31,500
6. Nurse’s aide 28,500 30,500 29,500
7. Orderly 25,500 27,000 27,000

Note: After ranking, it becomes possible to slot additional jobs (based on overall job difficulty, for
instance) between those already ranked and to assign each an appropriate wage rate.
2.Job Classification (job grading)
•Raters categorize jobs into groups or classes of jobs that
are of roughly the same value for pay purposes.
• Classes contain similar jobs.
• Grades are jobs that are similar in difficulty but
otherwise different.
• Jobs are classed by the amount or level of
compensable factors they contain.

11–62
3.Point Method
• A quantitative technique that involves:
• Identifying the degree to which each key factor/
compensable factors are present in the job.
• Awarding points for each factor after prioritizing each
factor in order of importance .
• Calculating a total point value for the job by adding up
the corresponding points for each factor.

63
Degree and Grading
⮚Taking factor as Education or Trade knowledge
• 1st degree (able to read and write , add and subtract).
• 2nd degree (able to use arithmetic operations , drawings , can
read Vernier caliper , scale etc.)
• 3rd degree(a graduate in science etc. , work exp. ,advanced
mathematics, complex drawings)
• Similarly 4th and 5th degree.

⮚GRADING
• Grading is done by adding the points of all the factors.
 Example of Point Method to hourly paid manual staff
Factors 1st 2nd 3rd 4th 5th
Degree Degree Degree Degree Degree
SKILL
• Education 15 30 45 60 75
• Experience 20 40 60 80 100
• Initiative and Ingenuity 15 30 45 60 75
EFFORT
• Physical demand 10 20 30 40 50
• Mental or visual demand 5 10 15 20 25
RESPONSIBILITY
• Equipment or process 5 10 15 20 25
• Material or product 5 10 15 20 25
• Safety of others 5 10 15 20 25
• Work of other job 5 10 15 20 25
conditions
JOB CONDITIONS
• Working conditions 10 20 30 40 50
• Unavoidable hazards 5 10 15 20 25
4.Factor Comparison Method
• Each job is ranked several times—once for each of several
compensable factors.
• Factors include mental effort, physical effort, skill needed,
responsibility, supervisory responsibility, working conditions.
• For eg : Know-how, problem solving abilities, accountability
• The rankings for each job are combined into an overall numerical
rating for the job.

66
Steps Involved

• Select key jobs – around 10-15

• Find the factors in terms of which the jobs are evaluated
• Rank the selected jobs under each factor
• Assign money value to each factor and determine the wage rates for
each key job
• The wage rage is apportioned along the identified factors
• All other jobs are compared with the list of key jobs & wage rates
 Sample Definitions of Factors Typically Used in the
Factor Comparison Method
1. Mental Requirements
Either the possession of and/or the active application of the following:
A. (inherent) Mental traits, such as intelligence, memory, reasoning, facility in verbal expression,
ability to get along with people, and imagination.
B. (acquired) General education, such as grammar and arithmetic; or general information as to
sports, world events, etc.
C. (acquired) Specialized knowledge such as chemistry, engineering, accounting, advertising, etc.

2. Skill
A. (acquired) Facility in muscular coordination, as in operating machines, repetitive movements, careful
coordinations, dexterity, assembling, sorting, etc.
B. (acquired) Specific job knowledge necessary to the muscular coordination only; acquired by
performance of the work and not to be confused with general education or specialized knowledge.
It is very largely training in the interpretation of sensory impressions.
Examples
1. In operating an adding machine, the knowledge of which key to depress for a subtotal would be skill.
2. In automobile repair, the ability to determine the significance of a knock in the motor would be skill.
3. In hand-firing a boiler, the ability to determine from the appearance of the firebed how coal should be
shoveled over the surface would be skill.

3. Physical Requirements
A. Physical effort, such as sitting, standing, walking, climbing, pulling, lifting, etc.; both the amount
exercised and the degree of the continuity should be taken into account.
B. Physical status, such as age, height, weight, sex, strength, and eyesight.

Source: Jay L. Otis and Richard H. Leukart, Job Evaluation: A Basis for Sound Wage Administration, p. 181.© 1954, revised 1983. Reprinted by
permission of Prentice Hall, Upper Saddle River, NJ.
 Sample Definitions of Five Factors Typically Used in
the Factor Comparison Method
4. Responsibilities
A. For raw materials, processed materials, tools, equipment, and property.
B. For money or negotiable securities.
C. For profits or loss, savings or methods’ improvement.
D. For public contact.
E. For records.
F. For supervision.
1. Primarily the complexity of supervision given to subordinates; the number of subordinates is a
secondary feature. Planning, direction, coordination, instruction, control, and approval
characterize this kind of supervision.
2. Also, the degree of supervision received. If Jobs A and B gave no supervision to subordinates,
but A received much closer immediate supervision than B, then B would be entitled to a higher
rating than A in the supervision factor.
To summarize the four degrees of supervision:
Highest degree—gives much—gets little
High degree—gives much—gets much
Low degree—gives none—gets little
Lowest degree—gives none—gets much

5. Working Conditions
A. Environmental influences such as atmosphere, ventilation, illumination, noise, congestion,
fellow workers, etc.
B. Hazards—from the work or its surroundings.
C. Hours.
Source: Jay L. Otis and Richard H. Leukart, Job Evaluation: A Basis for Sound Wage Administration, p. 181.© 1954, revised 1983. Reprinted by
permission of Prentice Hall, Upper Saddle River, NJ.
70
 Ranking Key Jobs by Factors1

Table 11–A1
© 2005 Prentice Hall Inc. All
11–71
rights reserved.
 Ranking Key Jobs by Wage Rates1

Figure 11–A2
© 2005 Prentice Hall Inc. All
11–72
rights reserved.
Job (Factor)-Comparison Scale

73
Comparison of Factor and Wage Rankings

74
 Example of One Factor (Complexity/Problem Solving) in a
Point Factor System

Source: Richard W. Beatty and James R. Beatty,“Job Evaluation,” in Ronald A. Berk (ed.), Performance Assessment: Methods and Applications
(Baltimore, MD: Johns Hopkins University Press, 1986), p. 322.
75
 Computerized Job Evaluations
• A computerized system that uses a structured
questionnaire and statistical models to streamline the job
evaluation process.
• Advantages of computer-aided job evaluation (CAJE)
• Simplify job analysis
• Help keep job descriptions up to date
• Increase evaluation objectivity
• Reduce the time spent in committee meetings
• Ease the burden of system maintenance

77