MGT 543

Human Resource Management

Ajaya Mishra
Session 2

HR Planning, Job Analysis

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 Changing Roles of HR Management

Note: Example percentages are based on various surveys.

Operational to Strategic Transformation of HR
Possible HR Areas for Core Competencies

5
 Strategic Planning

The process by which top management

determines overall organizational purposes
and objectives and how they are to be
achieved.

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 Linkage of Organizational and HR Strategies

© 2002 Southwestern College Publishing. All rights

reserved.
 Organizational Life-Cycle Stages and HR
Activities
LIFE- TRAINING LABOR /
CYCLE STAFFING COMPENSATION AND EMPLOYEE
STAGE DEVELOPMENT RELATIONS
Introduction Attract best Meet or exceed Define future Set basic
technical and labor market rates skill employee-
professional to attract needed requirements relations
talent. talent. and begin philosophy of
establishing organization.
career ladders.
Growth Recruit adequate Meet external Mold effective Maintain labor
numbers and mix market but consider management peace,
of qualifies internal equity team through employee
workers. Plan effects. Establish management motivation,
management formal development and morale.
succession. Mange compensation and
rapid internal structures. organizational
labor market development.
movements
 Organizational Life-Cycle Stages and
HR Activities (cont’d)
LIFE-CYCLE TRAINING AND LABOR /
STAGE STAFFING COMPENSATION DEVELOPMENT EMPLOYEE
RELATIONS

Maturity Encourage sufficient Control Maintain flexibility Control labor costs

turnover to compensation and skills of an and maintain labor
minimize layoffs and costs. aging workforce. peace. Improve
provide new productivity.
openings.
Encourage mobility
as reorganizations
shift jobs around.
Decline Plan and implement Implement tighter Implement Improve
workforce cost control. retraining and productivity and
reductions and career consulting achieve flexibility
reallocations, services. in work rules.
downsizing and Negotiate job
outplacement may security and
occur during this employment-
stage. adjustment
policies
 Human Resource Planning
The process of systematically reviewing
HR requirements to ensure that the
required number of employees, with the
required skills, are available when they
are needed.

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 Importance of HRP
• Future personnel needs
• Extent of surplus labor
• Part of strategic planning
• Creating highly talented personnel
• Foundation for personnel functions
• Increasing investment in human resources

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 Factors Affecting HRP
Organizational Environmental
Organization
Strategy Uncertainties
al Growth
Cycle

Time
Horizons HRP Outsourcing

Type and Nature

Quality of of Job
Information
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Factors That Determine HR Plans

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 Strategic Choices in HRP

Internal Growth Growth through

merger & acquisition

Narrow Broad

Informal Formal

Reactive Proactive

Inflexible Flexible
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 Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning

Human Resource Planning

Forecasting Comparing Forecasting

Human Requirements Human Resource
Resource Availability
Requirements and Availability

Demand = Surplus of Shortage of

Supply Workers Workers

No Action Restricted Hiring, Recruitment

Reduced Hours,
Early Retirement, Selection
Layoff, Downsizing
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HR Planning Process

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 HR Planning Process
• HR Strategies
– The means used to anticipate and manage the
supply of and demand for human resources.
• Provide overall direction for the way in which HR
activities will be developed and managed.
Overall
Strategic Plan

Human Resources
Strategic Plan

HR Activities
 Benefits of HR Planning
• Better view of the HR dimensions of business decisions
• Lower HR costs through better HR management.
• More timely recruitment for anticipate HR needs
• More inclusion of protected groups through planned
increases in workforce diversity.
• Better development of managerial talent

© 2002 Southwestern
College Publishing. All rights 2–18
reserved.
 Human Resource Forecasting
• HR Forecasting There are three
attempts to major steps to
determine the supply forecasting:
and demand for
various types of 1.Forecasting the
human resources, and demand for labor
to predict areas 2.Determining labor
within the supply
organization where 3.Determining labor
there will be labor surpluses and
shortages or shortages 19
 Forecasting HR Requirements
• Estimate of numbers and kinds of employees
the organization will need at future dates
• Demand for firm’s goods or services must be
forecast
• Forecast is then converted into people
requirements

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 Forecasting HR Availability
• Determining whether the firm will be able to
secure employees with the necessary skills,
and from what sources these individuals may
be obtained
• Show whether the needed employees may be
obtained from within the company, from
outside the organization, or from a
combination of the two sources

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 Surplus of Employees

• Restricted hiring – employees who leave are

not replaced
• Reduced hours
• Early retirement
• Layoffs

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 Shortage of Workers Forecasted

• Creative recruiting
• Compensation incentives – premium pay is
one method
• Training programs – prepare previously
unemployable people for positions
• Different selection standards – alter current
criteria

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 Forecasting HR Supply and
Demand
• Forecasting
– The use of information from the past and present
to identify expected future conditions.
Forecasting
Methods

2–25
 The Nominal Group Technique
A small group of 4-5 people gathers around a table. Leader
identifies judgment issue and gives participants procedural
instructions.

Participants write down all ideas that occur to them, keeping

their lists private at this point. Creativity is encouraged during
this phase.

Leader asks each participant to present ideas and writes them

on a blackboard or flipchart, continuing until all ideas have been
recorded.

Participants discuss each other’s ideas, clarifying, expanding,

and evaluating them as a group.

Participants rank ideas privately in their own personal order and

preference.

The idea that ranks highest among the participants is adopted

as the group’s judgment.
 The Delphi Technique
Leader identifies judgment issues and develops questionnaire.

Prospective participants are identified and asked to cooperate.

Leaders send questionnaire to willing participants, who record

their judgments and recommendations and return the
questionnaire.

Leaders compiles summaries and reproduces participants’

responses.

Leader sends the compiled list of judgment to all participants.

Participants comment on each other’s ideas and propose a final

judgment.

Leader looks
for consensus

Leader accepts consensus judgment as group’s choice.

 Statistical Techniques Used to Project
Staffing Demand Needs
Name Description
Regression analysis Past levels of various work load indicators, such as sales,
production levels, and value added, are examined for
statistical relationships with staffing levels. Where
sufficiently strong relationships are found, a regression (or
multiple regression) model is derived. Forecasted levels of
the retained indicator(s) are entered into the resulting
model and used to calculate the associated level of
human resource requirements.

Historical data are used to examine past levels of a

Productivity ratios
productivity index (P):

P = Work load / Number of People

Where constant, or systematic, relationships are found,

human resource requirements can be computed by diving
predicted work loads by P.
 Statistical Techniques Used to Project
Staffing Demand Needs (cont’d)
Name Description
Personnel ratios Past personnel data are examined to determine historical
relationships among the employees in various jobs or job
categories. Regression analysis or productivity ratios are
then used to project either total or key-group human
resource requirements, and personnel ratios are used to
allocated total requirements to various job categories or to
estimate for non-key groups.

Time series analysis Past staffing levels (instead of work load indicators) are
used to project future human resource requirements. Past
staffing levels are examined to isolate and cyclical
variation, long-tem terms, and random movement. Long-
term trends are then extrapolated or projected using a
moving average, exponential smoothing, or regression
technique.
 Human Resource Information
Systems (HRIS)

Virtually all HR management functions

can be enhanced through the use of an
HRIS – any organized approach for
obtaining relevant and time information
on which to base HR decisions

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 HUMAN RESOURCE INFORMATION SYSTEM
Goal: Integrate Core Processes into Seamless System
Input Data Types Output Data Uses* Contribute Toward Achievement of:
Job Analysis Employee Tracking
Recruitment Diversity Programs
Selection/Job Posting/ Hiring Decisions Organizational
Employee Referral Strategic Plans
Training
T&D Programs/E-learning/Managemen
Human t Succession
Performance Appraisal Resource
Compensation Information
Benefits
System Compensation Programs
Benefit Programs (e.g., Human
Safety Resource
prescription drug programs)
Health
Health Programs (e.g., Employee
Management
Labor Relations Assistance Programs) Plans
Bargaining Strategies
Employee Relations
Employee Services

*Certain data are available to employees at work or at home. Examples: supervisors might access just-
in-time training for conducting performance appraisal reviews. Operative employees might enter time
and labor data. All employees may be able to review 401(k) balances, transfer funds, make benefit
elections, set annual performance goals, update personnel data.
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JOB ANALYSIS

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 Job Analysis: A Basic Human Resource Management Tool

Human Resource
Tasks Responsibilities Duties Planning
Recruitment
Selection

Job Training and

Development
Descriptions
Job Performance Appraisal
Analysis Job Compensation and
Specifications Benefits
Safety and Health
Employee and Labor
Relations
Knowledge Skills Abilities
Legal Considerations
Job Analysis for Teams
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 Definitions
• Job - Consists of a group of tasks that
must be performed for an organization to
achieve its goals
• Position - Collection of tasks and
responsibilities performed by one person;
there is a position for every individual in
an organization

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 Definitions (Continued)
• Job analysis - Systematic process of
determining the skills, duties, and knowledge
required for performing jobs in an
organization
• Job description – document providing
information regarding tasks, duties, and
responsibilities of job
• Job specification – minimum qualifications to
perform a particular job
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 Types Of Job Analysis Information
• Worker-oriented activities
• Machines, tools, equipment, and work
aids used
• Job-related tangibles and intangibles
• Work performance
• Job content
• Personal requirements for the job

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 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 the job; elemental motions for methods analysis;
personal job demands, such as energy expenditure
• 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
• Job context – work schedule; financial and nonfinancial incentives;
physical working conditions; organizational and social contexts
• Personal requirements for the job – personal attributes such as
personality and interests; education and training required; work
experience
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 Sources of job analysis informaiton
• Manager

• Incumbent

• Job analyst

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 Job Analysis Methods

• Observation
– Critical incident technique
• Interviews
• Employee recording
• Combination of methods
• Questionnaires
– Functional job analysis

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

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 Job Design

• Process of determining the specific tasks to

be performed, the methods used in
performing these tasks, and how the job
relates to other work in the organization

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• Job enlargement - Changes in the scope of a job to
provide greater variety to the worker

• Job engineering – Fundamental rethinking and

radical redesign of business processes to achieve
dramatic improvements in critical, contemporary
measures of performance, such as cost, quality,
service and speed

• Job enrichment - Basic changes in the content and

level of responsibility of a job, so as to provide
greater challenge to the worker

• Job Rotation - Moving employees from job to job

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 Factors affecting Job Design
• Organizational Factors
• Job Characteristics
• Work Flow
• Work Practice
• Environmental Factors
• Employee availability and abilities
• Social and Cultural Expectations
• Behavior Elements

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Any Q ???

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