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

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

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 Staffing Training and Development Performance Appraisal Compensation Safety and Health Employee and Labor Relations Legal Considerations Tasks Responsibilities Duties Job Descriptions Job Analysis Job Specifications Knowledge Skills Abilities

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 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 - Leads 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

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

Job Analysis Methods Questionnaires Observation Interviews Employee recording Combination of methods

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

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

Interviews Interview both employee and supervisor Interview employee first, helping him or her describe duties performed Then, analyst normally contacts supervisor for additional information

Employee Recording Describe daily work activities in diary or log Problem: Employees exaggerating job importance Valuable in understanding highly specialized jobs

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

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

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 job-oriented elements

Functional Job Analysis Concentrates on the interactions among the work, the worker, and the organization Modification of the job analysis schedule Assesses specific job outputs and identifies job tasks in terms of task statements

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

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

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, tools, and equipment; (2) supervision; (3) contacts; (4) duties; (5) knowledge, skills, and abilities; (6) physical and other requirements; and (7) differentiating requirements

Conducting Job Analysis People who participate in job analysis should include, at a minimum: Employee Employee’s immediate supervisor

Job Description Document that states tasks, duties, and responsibilities of job Vitally important job descriptions are both relevant and accurate

Content of a Job Description Job Identification - Job title, department, reporting relationship, and job number or code Job Analysis Date - Aids in identifying job changes that would make description obsolete Job Summary - Concise overview of job Duties Performed - Major duties

O*NET, 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)

Job Specification Job Specification - Minimum qualifications person should possess to perform particular job Should reflect minimum, not ideal qualifications for particular job Job specifications are often included as major section of job descriptions

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

Timeliness of Job Analysis Rapid pace of technological change makes need for accurate job analysis even more important now and in the future.

Trends & Innovations: Talent Management Process of anticipating workforce needs, managing current workers, 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

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

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

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

Human Resource Planning Process External Environment Internal Environment Strategic Planning Human Resource Planning Forecasting Human Resource Requirements Comparing Requirements and Availability Forecasting Human Resource Availability Demand = Supply Surplus of Workers Shortage of Workers Restricted Hiring, Reduced Hours, Early Retirement, Layoffs, Downsizing Recruitment No Action Selection

Definitions 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

Forecasting Human Resource Requirements Zero-based forecasting - Uses current level as starting point for determining future staffing needs Bottom-up approach - Each level of organization, starting with lowest, forecasts its requirements to provide aggregate of employment needs.

Forecasting Human Resource Requirements (Cont.) Relationship between Volume of Sales and Number of Workers Required Simulation Models - Simulation is a forecasting technique for experimenting with real-world situation through mathematical model representing that situation. A model is abstraction of the real world.

The Relationship of Sales Volume to Number of Employees 500 400 300 200 100 10 20 30 40 50 60 Sales (thousands)

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

Shortage of Workers Forecasted Creative recruiting Compensation incentives – Premium pay is one method Training programs – Prepare previously unemployable people for positions Different selection standards

Surplus of Employees Restricted hiring – Employees who leave are not replaced Reduced hours Early retirement Downsizing - Layoffs

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

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

Negative Aspects of Downsizing Cost associated with low morale of those remaining Layers removed, making advancement in organization more difficult Workers may seek better opportunities, fearing they may be in line for layoffs

Negative Aspects of Downsizing (Cont.) Employee loyalty significantly reduced Institutional memory lost Remaining workers required to do more When demand for products/services returns, firm may realize it has cut too deep May be an increase in number of discrimination lawsuits

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

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