Job analyses and hr planning

Job Analyses and HR PlanningJob Analyses and HR PlanningCompiled by

Chanakya P. Rijal, PhD in Leadership

Head of Research and Development and Academic Advisor

Nepal College of Management

In Affiliation with

Kathmandu University, School of Management

[Spring: 2015]

March 23, 2015 1Job Analyses & HR Planning

Job Analyses: What it is…Job Analyses: What it is… It is a process by which an organization establishes the

nature of diversity and intensity of various jobs performed.

The main aim of performing job analyses in an organization is to establish the task identity and weightage of various jobs performed and finally leading to determination of various job holding positions with accurate forecasting to HR strength required for the organization.

In fact, it is an HR planning tool. More details will be provided in later section of this

presentation.


HR Planning: What it is…HR Planning: What it is… It is a process by which an organization ensures

that it has the right number and kind of people at the right place and at the right time, capable of effectively and efficiently completing those tasks that help the organization achieve its overall objectives.

Organizations need to do human resource planning so they can meet business objectives and gain a competitive advantage over competitors.


Organizational & HR PlanningOrganizational & HR Planning

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Relationship to Organizational Planning Relationship to Organizational Planning

Derived from long-term operational plans of organization.

Seeks to identify various HR factors critical to success of organization.

Should provide for --– Clear statement of organization’s mission– Commitment of staff members to mission– Explicit statement of assumptions– Plan of action


HRP Link to the Business StrategyHRP Link to the Business Strategy Be familiar with the business strategy. Ensure that all traditional human resource programs are

satisfying the needs of senior and functional management. Identify the human resource implications of the

organization’s business strategy. Identify those human resource issues that may affect

business objectives, and notify the appropriate functional managers.

Convert business objectives into human resource objectives that can provide the foundation for a strategic human resource plan.

Review the strategic-planning process to identify new opportunities to involve human resource personnel.


ImportanceImportance

1. It helps in assessing required personnel need with necessary qualifications, skills, knowledge, experience and aptitude.

2. It also helps in establishing HR replacement plan in time.3. It helps meeting manpower shortages due to labor turnover.4. Helps meeting personnel needs of expansion or downsizing

programs.5. Helps to avoid surplus or deficiency of labor in future.6. It supports to cope with changes in competitive forces,

markets, technology, products and government regulations.7. Supports in complying with labor or employment laws and

regulations.


Organizational Objectives and Policies in HRPOrganizational Objectives and Policies in HRP

Downsizing or Expansion Acquisition , Merger or Sell-out Technology Up-gradation or Automation New Markets and New Products External Vs Internal Hiring Training and Re-training Union Constraints


Characteristics of an effective HR planCharacteristics of an effective HR plan

1. Real-time personnel needs-based projection.

2. Futuristic plan of action.

3. Matching with organization’s future institutional and functional strategies.

4. Balance between time, load of workforce, sources of recruitment and selection and cost of recruitment and selection.

5. Compliance with environmental changes.


Human Resource Planning ProcessExternal EnvironmentInternal Environment

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Strategic Planning

Human Resource Planning

Forecasting HR Requirement

Comparing Requirements and Availability

Forecasting HR Availability

Surplus of Workers

Demand = Supply

No Action Restricted Hiring, Reduced Hours, Early Retirement, Layoff, Downsizing

Shortage of Workers

Recruitment

Selection

March 23, 2015 Job Analyses & HR Planning

Strategic HR Planning ProcessStrategic HR Planning Process

Step I: Strategic analyses

Step II: Job analyses

Step III: Forecasting labor demand and supply

Step IV: Establishing mechanism for HR recruitment and selection

Step V: Establishing mechanism for HR training and development

Step VI: Establishing HR performance management system

Step VII: Establishing HR relationship management system


Human Resource Planning ProcessHuman Resource Planning Process


Factors Affecting the Time Frame of HRPFactors Affecting the Time Frame of HRPForecast Factor

Demand

Supply

Netneeds

Short Range(0-2 Years)

Authorized employment including growth, changes, and turnover

Employee consensus less expected losses plus expected promotions from subordinate groups

Numbers and kinds of employees needed

Intermediate Range(2-5 Years)

Operating needs from budgets and plans

Human resource vacancies expected from individual promotability data derived from development plans

Numbers, kinds, dates and levels of needs

Long Range(Beyond 5 Years)

In some organizations, the same as “intermediate”; in others, an increased awareness of changes in environment and technology— essentially judgmental.

Management expectations of changing characteristics of employees and future available human resources.

Management expectations of future conditions affecting immediate decisions.


Common Pitfalls in HRPCommon Pitfalls in HRP

1. Lack of top management support

2. Lack of adequate initial effort

3. Lack of coordination with other management and HR functions

4. Failure to integration with organizational plans

5. Messed up with quantitative and qualitative approaches

6. Noninvolvement of operating managers

7. The techniques trap


JOB ANALYSIS

15March 23, 2015 Job Analyses & HR Planning

Job AnalysisJob Analysis Process of collecting and studying information

relating to the operations and responsibilities of a specific job.

Determination of tasks which comprise the job and of skills, knowledge, abilities and responsibilities required of the worker for a successful performance and which differentiates one job from all others.

Products of Job Analysis are Job Description and Job Specification.


Strategic PlanningStrategic PlanningThe process by which top management determines overall organizational purposes and objectives and how they are to be achieved.

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Human Resource PlanningHuman Resource PlanningThe process of systematically reviewing HR requirements to ensure that the required number of employees, with the required skills, are available when they are needed.Job analyses is the part of HR planning which is part of strategic planning of an organization.

Strategic Planning Significance of Job AnalysesStrategic Planning Significance of Job Analyses


Purpose or Uses of Job AnalysisPurpose or Uses of Job Analysis

• Organization and manpower planning• Recruitment and selection• Job evaluation and wage, salary administration • Job re-engineering• Employee training and managerial development• Performance appraisal• Health and safety


Few DefinitionsFew DefinitionsJob consists of a group of tasks that must be performed for an organization to achieve its goals.

Position refers to the collection of responsibilities and tasks performed by a person holding a designated place in an organization.

Job analysis is a systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization.

Job description is a document providing information regarding tasks, duties, and responsibilities of a position.

Job specification contains the minimum required qualifications to perform a particular job.


Types of Job Analysis InformationTypes of Job Analysis Information

Considerable information is needed, such as:• Worker-oriented activities• Machines, tools, equipment, and work aids used• Job-related tangibles and intangibles• Work performance• Job content• Personal requirements for the job


Summary of Types of Data Collected Through Job AnalysisSummary of Types of Data Collected Through Job Analysis

Work Activities: work activities and processes, activity records (e.g., film form), procedures used, personal responsibility.

Worker-oriented activities: human behavior, 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/applied (e.g. accounting), materials processed, products made, 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, interests, education and training required, work experience.


Job Analysis: A Basic Human Resource Management ToolJob Analysis: A Basic Human Resource Management Tool

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Human Resource Planning

Recruitment Selection Training and

Development Performance

Appraisal Compensation and

Benefits Safety and Health Employee and Labor

Relations Legal Considerations Job Analysis for

Teams

Tasks Responsibilities Duties

Job Analysis

Job Descriptions

Job Specifications

Knowledge Skills Abilities


Steps in Job AnalysisSteps in Job Analysis

Collection of Organisational Structure Information

Selection of Representative Position to be Analysed

Collection of Job Analysis Data

Developing Job Description

Developing Job Specification


Job AnalysisJob AnalysisProcess of Obtaining all Pertinent Job FactsProcess of Obtaining all Pertinent Job Facts

Job DescriptionA proper definition & design

of work. A statement containing:

Job TitleLocationJob SummaryDuties & ResponsibilitiesMaterials, Tools & Equipment usedForms & reports handledSupervision given / receivedWorking conditionsHazards & Safety precautions

Job SpecificationA statement of human

qualifications necessary to do the job containing:

Education & Qualifications Experience & TrainingKnowledge & SkillsCommunication skillsPhysical requirements - Height,

Weight, AgePersonality requirements - Appearance, Judgement,

Initiative, Emotional stability


Human Resource ForecastingHuman Resource Forecasting

• HR Forecasting attempts to determine the supply and demand for various types of human resources, and to predict areas within the organization where there will be labor shortages or surpluses.

There are three major steps to forecasting:

1. Forecasting the demand for labor

2. Determining labor supply

3. Determining labor surpluses and shortages


Sources of Job Analysis InformationSources of Job Analysis Information• Manager• Incumbent• Suppliers• Marketers• Job Analyst• Internet• Collateral Materials• Others


Job Analysis MethodsJob Analysis Methods

• Questionnaires– PAQ

– Functional job analysis

• Observation– Critical incident technique

• Interviews

• Employee recording

• Combination of methods


Timeliness of Job AnalysisTimeliness of Job Analysis

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


Forecasting HR RequirementsForecasting 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.


The Relationship of Sales Volume to Number of Employees

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Number of Employees

500

400

300

200

100

0 10 20 30 40 50 60Sales (thousands)


HR Forecasting ApproachesHR Forecasting Approaches

1. Zero-based forecasting: Uses current level as starting point for determining future staffing needs.

2. Bottom-up approach: Each level of organization, starting with lowest, forecasts its requirements to provide aggregate of employment needs.

3. Mathematical models: Relationship between sales demand and number of employees needed.

4. Simulations: Experimenting with real-world situations through mathematical modeling.


Techniques of HR ForecastingTechniques of HR Forecasting

1. Managerial Judgment 2. Trend Analysis3. Ratio Analysis4. Scatter Plot5. Computerized Forecast6. Work Study Technique7. Delphi technique8. Regression Analysis9. Econometric Models10. Nominal Group Technique11. HR Budget and Planning Analysis

12. Scenario Forecasting13. Workforce Analysis14. Workload Analysis15. Job Analysis


1. Managerial JudgmentThis techniques is very simple. In this, manager sit together, discuss and arrive at a figure which would be the future demand for labor. The technique may involve a ‘bottom-to-top’ or ‘top-to-bottom’ approach.

2. Trend AnalysisMethod which forecast employments requirements on the basis of some organizational index and is one of the most commonly used approaches for projecting HR demand. 1.Business Factor Annual Volume of Sales. 2.Total Number of Employees.3.Compare the Productivity Ratio.4.Calculate Human Resources demand. 5.Forecasted Human Resource Requirements.


3. Ratio AnalysisAnother approach of making forecasts based on the ratio between --1.Some causal factors (like sales volume) 2.The number of employees required

4. Scatter PlotA graphical method used to help identify the relationship between two variables. A scatter plot is another option. HR planner can use scatter plots to determine whether two factors – measure of business activity and staffing levels are related.


PERSONNEL / YIELD RATIOSPast experience has developed these yield ratios for recruiting a Cost Accountant:

FOR EVERY 12 APPLICATIONS RECEIVED, ONLY 1 LOOKS PROMISING ENOUGH TO INVITE FOR AN INTERVIEW

OF EVERY 5 PERSONS INTERVIEWED, ONLY 1 IS ACTUALLY OFFERED A POSITION IN THE ORGANIZATION

OF EVERY 3 JOB OFFERS MADE, ONLY 2 ACCEPT THE POSITION

OF EVERY 10 NEW WORKERS WHO BEGIN THE TRAINING PROGRAM, ONLY 9 SUCCESSFULLY COMPLETE THE PROGRAM

THUS: 100 APPLICATIONS MUST BE RECEIVED, so that8.33 JOB INTERVIEWS CAN BE HELD, so that1.67 JOB OFFERS CAN BE MADE, and1.11 PEOPLE MUST BE TRAINED, so that we getONE NEW COST ACCOUNTANT!!!


5. Computerized ForecastThe determination of future staff needs by projecting a firm’s sales, volume of production, and personnel required to maintain this required volume of output, using computers and software packages. Employers also used computerized system to personnel requirements .

6. Work Study TechniqueWork study technique is based on the volume operation and work efficiency of personnel. Volume of operation is derived from the organizational plan documents and increase or decrease in operation can be measured.

Planned outputStandard output per hour x standard hours per person


7. Delphi TechniqueThis technique calls for a facilitator to solicit and collate written, expert opinion on labor forecast. After answer are received, a summary of the information is developed and distributed to the expert, who are than requested to submit revised forecast. Expert never meet face-to-face, but rather communicate through the facilitator.

8. Regression AnalysisRegression analysis identifies the movement of two or more inter-related series. It is used to measure the changes in a variable as a result of changes in other variables. Regression analysis determines the relationship between Y variables such as the number of employees and X variables such as service delivery by actually measuring the relationship that existed in the past. Use of the method begins with a series of observation each costing of a value for the Y variable plus a value for each X variable.


9. Econometric ModelsEconometric models for estimation of manpower requirement differ from the statistical methods. Past statistical data are analyzed in the hope that it will prove possible to describe precisely the relationships between a number of variables in mathematical and statistical terms.

10. Nominal Group TechniqueThe nominal group technique is a decision making method for use among groups of many sizes, who want to make their decision quickly, as by a vote, but want everyone’s opinions taken into traditional voting.I.Introduction and ExplanationII.Silent Generation of Ideas III.Sharing IdeasIV.Group DiscussionV.Voting and Ranking


11. HR Budget and Planning AnalysisAmong several other ways to estimate the future demand for human resources, budget and planning analysis is an approach applicable when new ventures complicate employment planning. Planners can use new-venture analysis.12. Scenario ForecastingThis techniques is used to explore the likelihood of possible future developments and changes and to identify the interaction of uncertain future trends and events. Preparation of Background Selection of Critical Indicators Establishing Past Behavior of IndicatorsVerification of Potential Future Events Forecasting the IndicatorsWriting of Scenarios March 23, 2015 39Job Analyses & HR Planning

13. Workforce AnalysisIt means, to determine the rate of influx and out flow of employee. It is through this analysis one can calculate the labor turnover rate, absenteeism rate etc.14. Workload AnalysisIt is a method that uses information about the actual content of work based on a job analysis of the work. Workload analysis involves use of ratios to determine HR requirement. Both the number of employees and the kind of employees required to achieve organizational goals are identified.

15. Job AnalysisIt helps in finding out the abilities or skills required to do the jobs efficiently. A detailed study of jobs is usually made to identify the qualification and experience required for them.


Human Resource Information Systems (HRIS)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.


HR Demand Forecast Process of estimating future quantity and quality of manpower required for an

organization.

� External factors - competition, laws and regulation, economic climate, changes in technology and social factors

� Internal factors - budget constraints, production levels, new products & services, organizational structure & employee separations


HR Supply ForecastHR Supply Forecast

Process of estimating future quantity and quality of manpower available internally & externally to an organization.

Supply Analysis� Existing Human Resources� Internal Sources of Supply� External Sources of Supply


Existing Human ResourcesExisting Human ResourcesCapability / Skills Inventory using HR Information SystemGeneral Information -Name: Present Address: Department:Sex: Designation:DOB: DOJ:Marital Salary: Status: Permanent Address: Grade:

Qualification -Degree/Diploma Institution Class Year of Pass

Experience/Skills -Job Title/ Organisation Brief Skill/Appointment Responsibilities Specialisation

Outstanding Achievement / Additional Information -Awards Performance Disciplinary ActionPromotions Merit Rating AbsenteeismAchievementsCareer Plans:


Skills Inventory Form Used by PPG Industries


Internal Supply Inflows & Outflows - The number of losses & gains of staff

is estimated.

Turnover Rate - refers to rate of employees leaving.= ( No. of separations in a year / Avg no. of employees during the year ) x 100

Absenteeism - unauthorised absence from work.= ( total absentees in a year / Avg no. of

employees x No. of working days) x 100

Productivity Level - = Output / Input. Change in productivity affects no. of persons per unit of output.

Movement among Jobs - internal source of recruitment, selection and placement


Forecasting HR AvailabilityForecasting 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.


External Supply

• External recruitment, selection & placement - Advertisements, Manpower Consultants, Campus Recruitment, Unsolicited Applications, Employee Referrals


Determining Labor SupplyPredicting Worker Flows and Availabilities

Succession or Replacement Charts

Who has been groomed/developed and is ready for promotion, NOW?

Human Resource Information Systems (HRIS)

An employee database that can be searched when vacancies occur.

Transition Matrices (Markov Analysis)

A chart that lists job categories held in one period and shows the proportion of employees in each of the job categories in a future period.

It answers two questions:

1. Where did people in each job category go?

2. Where did people now in each job category come from?

Personnel / Yield Ratios

How much work will it take to recruit one new accountant?March 23, 2015 49Job Analyses & HR Planning

Determining Labor Surplus or ShortageDetermining Labor Surplus or Shortage

• Based on the forecasts for labor demand and supply, the planner can compare the figures to determine whether there will be a shortage or surplus of labor for each job category.

• Determining expected shortages and surpluses allows the organization to plan how to address these challenges.


Surplus of EmployeesSurplus of Employees• Restricted hiring: employees who leave are not

replaced.• Reduced hours• Early retirement• Layoffs


Shortage of Workers ForecastedShortage 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


SUCCESSION PLANNING

REPLACEMENT CHARTFOR EXECUTIVE POSITIONS

POSITION REPLACEMENT CARDSFOR EACH INDIVIDUAL POSITION

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

POSITION WESTERN DIVISION SALES MANAGER

DANIEL BEALER Western Division Sales Mgr Outstanding Ready Now

PRESENT PROMOTIONPOSSIBLE CANDIDATES CURRENT POSITION PERFORMANCE POTENTIAL

SHARON GREEN Western Oregon Sales Manager OutstandingReady Now

GEORGE WEI N. California Sales Manager OutstandingNeeds Training

HARRY SHOW Idaho/Utah Sales Manager Satisfactory Needs TrainingTRAVIS WOOD Seattle Area Sales Manager Satisfactory Questionable

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)

PERSONAL DATA

Age, Gender, Dependents, Marital status, etc

EDUCATION & SKILLS

Degrees earned, Licenses, Certifications

Languages spoken, Specialty skills

Ability/knowledge to operate specific machines/equipment/software

JOB HISTORY

Job Titles held, Location in Company, Time in each position, etc.

Performance appraisals, Promotions received, Training & Development

MEMBERSHIPS & ACHIEVEMENTS

Professional Associations, Recognition and Notable accomplishments

PREFERENCES & INTERESTS

Career goals, Types of positions sought

Geographic preferences

CAPACITY FOR GROWTH

Potential for advancement, upward mobility and growth in the companyMarch 23, 2015 54Job Analyses & HR Planning

Job Analysis and the LawJob Analysis and the LawFair Labor Standards Act: employees categorized as exempt or nonexempt.Equal Pay Act: similar pay must be provided if jobs are not substantially different as shown in job descriptions.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.Disabilities Act: make reasonable accommodations for disabled workers.Empowerment Act: make accommodations for empowerment provisions made for women, minorities, Dalits, etc.


HUMAN RESOURCE INFORMATION SYSTEMGoal: Integrate Core Processes into Seamless System

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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

*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.


Job DesignJob 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.

Job enrichment: Basic changes in the content and level of responsibility of a job, so as to provide greater challenge to the worker.

Job enlargement: Changes in the scope of a job to provide greater variety to the worker.

Reengineering: 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.


HR Recruitment and Selection ProcessHR Recruitment and Selection Process

Activities, time involvement and cost incurred

have direct correlation with relative

degree of employee

selection effectiveness.

TimeTime58

RejectReject

Preliminary form screening

Preliminary interview screening

Formal application

Written test/s

Interview/s

Reference check/s

On the job testing

Physical examination/s

Employment offer on probation

Job confirmation after probation

Level of expensesLevel of expenses

Level of employee selection effectiveness

Level of employee selection effectiveness


Sources of RecruitmentSources of RecruitmentSources within the companySources within the company

1. Company personnel referral system

2. Company executive referral system

3. Internal transfers

4. Seasonal employees

5. Company managed roster of probable job candidates

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Sources beyond the companySources beyond the company

1.Direct unsolicited applications pool

2.Solicited applications

3.Employment agencies

4.Employees of customer organizations

5.Employees of competitor organizations

6.Referrals from executive club members

7.Educational institutions

8.Older or retired persons

9.Online sources

Sources beyond the companySources beyond the company

1.Direct unsolicited applications pool

2.Solicited applications

3.Employment agencies

4.Employees of customer organizations

5.Employees of competitor organizations

6.Referrals from executive club members

7.Educational institutions

8.Older or retired persons

9.Online sourcesMarch 23, 2015 Job Analyses & HR Planning

Selection ApproachesSelection Approaches1. Resume screening and experience, skill competence and maturity

analyses

2. Ability testing through formal examination systems

3. Subjective and objective observation of job candidates through –a. Group discussion

b. Team work simulation

c. Interview

4. Head-hunting of qualified job candidates from competing organizations

5. Standardized cut-off approaches

6. Multiple hurdle approaches

7. Classical validity and reliability testing

8. BCG modeling approach

9. Decision theory approach

10. Strategic contextualization approach 60March 23, 2015 Job Analyses & HR Planning

Selection PredictorsSelection Predictors HR planning Forecasting of personnel demand and supply Forecasting institutional growth and aligning HR

requirement Performing time series analyses of selection effectiveness

of the past selection criteria in use Organization’s policy on CSR, ethics, inclusion,

empowerment, and diversity management


Selection TechniquesSelection Techniques

Formal vs. informal

Solicited vs. unsolicited

Internal vs. external

Domestic vs. international

Seasonal vs. temporary vs. permanent selection
