1. © 2008 by Prentice Hall4-1 Human Resource Management 10 th Edition Chapter 4 JOB ANALYSIS, STRATEGIC PLANNING, AND HUMAN RESOURCE PLANNING

2. © 2008 by Prentice Hall4-2 HRM in Action: Disaster Planning—Up Close and Personal with Hurricane Rita Focus on catastrophes ranging from natural calamities such as hurricanes, earthquakes and floods to man-made crises such as 9/11 Cover day-to-day occurrences such as power failures, server malfunctions, and virus attacks How will company respond?

3. © 2008 by Prentice Hall4-3 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

4. © 2008 by Prentice Hall4-4 Definitions (Cont.) A work group consisting of a supervisor, two senior clerks, and four word processing operators has 3 jobs and 7 positions.

5. © 2008 by Prentice Hall4-5 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?

6. © 2008 by Prentice Hall4-6 Job Analysis: A Basic Human Resource Management Tool TasksResponsibilitiesDuties Job Analysis Job Descriptions Job Specifications KnowledgeSkillsAbilities  Staffing  Training and Development  Performance Appraisal  Compensation  Safety and Health  Employee and Labor Relations  Legal Considerations

7. © 2008 by Prentice Hall4-7 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

8. © 2008 by Prentice Hall4-8 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

9. © 2008 by Prentice Hall4-9 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

10. © 2008 by Prentice Hall4-10 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

11. © 2008 by Prentice Hall4-11 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

12. © 2008 by Prentice Hall4-12 Job Analysis Methods Questionnaires Observation Interviews Employee recording Combination of methods

13. © 2008 by Prentice Hall4-13 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

14. © 2008 by Prentice Hall4-14 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

15. © 2008 by Prentice Hall4-15 Interviews Interview both employee and supervisor Interview employee first, helping him or her describe duties performed Then, analyst normally contacts supervisor for additional information

16. © 2008 by Prentice Hall4-16 Employee Recording Describe daily work activities in diary or log Problem: Employees exaggerating job importance Valuable in understanding highly specialized jobs

17. © 2008 by Prentice Hall4-17 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

18. © 2008 by Prentice Hall4-18 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

19. © 2008 by Prentice Hall4-19 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 job- oriented elements

20. © 2008 by Prentice Hall4-20 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

21. © 2008 by Prentice Hall4-21 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

22. © 2008 by Prentice Hall4-22 Management Position Description Questionnaire Designed for management positions Uses a checklist to analyze jobs Has been used to determine the 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 the jobs to job families

23. © 2008 by Prentice Hall4-23 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

24. © 2008 by Prentice Hall4-24 Conducting Job Analysis People who participate in job analysis should include, at a minimum: Employee Employee’s immediate supervisor

25. © 2008 by Prentice Hall4-25 Job Description Document that states tasks, duties, and responsibilities of job Vitally important job descriptions are both relevant and accurate

26. © 2008 by Prentice Hall4-26 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

27. © 2008 by Prentice Hall4-27 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)

28. © 2008 by Prentice Hall4-28 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

29. © 2008 by Prentice Hall4-29 Problems If Job Specifications Are Inflated May systematically eliminate minorities or women from considerations Compensation costs will increase Job vacancies will be harder to fill

30. © 2008 by Prentice Hall4-30 Timeliness of Job Analysis Rapid pace of technological change makes need for accurate job analysis even more important now and in the future.

31. © 2008 by Prentice Hall4-31 Job Analysis for Team Members With team design, there are no narrow jobs Work departments do is often bundled into teams Last duty shown on proverbial job description, “And any other duty that may be assigned,” is increasingly becoming THE job description.

32. © 2008 by Prentice Hall4-32 Job Analysis and the Law Equal Pay Act - Similar pay must be provided if jobs are not substantially different as shown in job descriptions Fair Labor Standards Act - Employees categorized as exempt or nonexempt

33. © 2008 by Prentice Hall4-33 Job Analysis and the Law (Cont.) Civil Rights Act - Basis for adequate defenses against unfair discriminations charges in selection, promotion, and other areas of HR administration Occupational Safety and Health Act - 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

34. © 2008 by Prentice Hall4-34 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

35. © 2008 by Prentice Hall4-35 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) STRAGEDY SETTING Specifying and documenting corporate level strategies and planning STRAGEDY IMPLEMENTATION

36. © 2008 by Prentice Hall4-36 Strategy Implementation Leadership Organizational Structure Information and Control Systems Technology Human Resources

37. © 2008 by Prentice Hall4-37 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

38. © 2008 by Prentice Hall4-38 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 Surplus of Workers Demand = Supply No Action Shortage of Workers Recruitment Selection Restricted Hiring, Reduced Hours, Early Retirement, Layoffs, Downsizing

39. © 2008 by Prentice Hall4-39 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

40. © 2008 by Prentice Hall4-40 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.

41. © 2008 by Prentice Hall4-41 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.

42. © 2008 by Prentice Hall4-42 The Relationship of Sales Volume to Number of Employees Number of Employees 500 400 300 200 100 0102030405060 Sales (thousands )

43. © 2008 by Prentice Hall4-43 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

44. © 2008 by Prentice Hall4-44 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.

45. © 2008 by Prentice Hall4-45 Shortage of Workers Forecasted Creative recruiting Compensation incentives – Premium pay is one method Training programs – Prepare previously unemployable people for positions Different selection standards

46. © 2008 by Prentice Hall4-46 Surplus of Employees Restricted hiring – Employees who leave are not replaced Reduced hours Early retirement Downsizing - Layoffs

47. © 2008 by Prentice Hall4-47 Downsizing Also known as restructuring and rightsizing, is reverse of company growing and suggests one-time change in organization and number of people employed Retention bonuses are used to entice terminated employees to remain for short periods of time to ensure continued services

48. © 2008 by Prentice Hall4-48 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 lay offs

49. © 2008 by Prentice Hall4-49 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

50. © 2008 by Prentice Hall4-50 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

51. © 2008 by Prentice Hall4-51 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

52. © 2008 by Prentice Hall4-52 Human Resource Information Systems (HRIS) Any organized approach for obtaining relevant and timely information on which to base HR decisions

53. © 2008 by Prentice Hall4-53 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/E- learning/Management Succession Compensation Programs Benefit Programs (e.g., prescription drug programs) Health Programs (e.g., Employee Assistance Programs) Bargaining Strategies Employee Services Organizational Strategic Plans Human Resource Management Plans Contribute Toward Achievement of: Human Resource Information System *Manager and employee self-service is available.

54. © 2008 by Prentice Hall4-54 Trends & Innovations: Manager Self-Service Use of software and corporate network to automate paper-based processes requiring manager’s approval, record- keeping or input, 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

55. © 2008 by Prentice Hall4-55 Employee self-service (ESS) Processes that automate transactions formerly labor-intensive for employees and HR professionals ESS applications can free up valuable HR staff time, reducing administrative time and costs

56. © 2008 by Prentice Hall4-56 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 enrichment - Basic changes in content and level of responsibility of job, to provide greater challenge to worker

57. © 2008 by Prentice Hall4-57 Job Design (Cont.) Job enlargement - Changes in scope of job to provide greater variety to worker 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

58. © 2008 by Prentice Hall4-58 A Global Perspective: A Database of Repatriate Skills Vast majority of U.S. companies have failed to realize importance of creating databases of repatriate skills Colgate-Palmolive’s database is primarily for succession planning. It also contains data on each manager’s experience with or awareness of particular cultures

59. © 2008 by Prentice Hall4-59