Document Sample
					Human Resource Management


         Prof. Rushen Chahal   4-1
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?
                 Prof. Rushen Chahal         4-2
• 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

                     Prof. Rushen Chahal            4-3
         Definitions (Cont.)
• A work group consisting of a supervisor,
  two senior clerks, and four word
  processing operators has 3 jobs and 7

                 Prof. Rushen Chahal         4-4
  Questions Job Analysis Should
• 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
                 Prof. Rushen Chahal      4-5
  Job Analysis: A Basic Human Resource Management Tool

  Tasks     Responsibilities         Duties
                                                Training and
                                                Performance Appraisal
              Descriptions                      Safety and Health
  Job                                           Employee and Labor
Analysis         Job                            Relations
             Specifications                     Legal Considerations

Knowledge       Skills          Abilities

                          Prof. Rushen Chahal                        4-6
         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

                        Prof. Rushen Chahal                4-7
       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

                  Prof. Rushen Chahal        4-8
 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
• 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
                  Prof. Rushen Chahal      4-9
 Summary of Types of Data Collected
    Through Job Analysis (Cont.)

• Machines, tools, equipment, and work aids
• 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
                 Prof. Rushen Chahal     4-10
 Summary of Types of Data Collected
    Through Job Analysis (Cont.)

• Job context - Work schedule; financial and
  nonfinancial incentives; physical working
  conditions; organizational and social
• Personal requirements for job - Personal
  attributes such as personality and
  interests; education and training required;
  work experience

                  Prof. Rushen Chahal      4-11
Job Analysis Methods

              •   Questionnaires
              •   Observation
              •   Interviews
              •   Employee recording
              •   Combination of

      Prof. Rushen Chahal         4-12
•   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

                   Prof. Rushen Chahal     4-13
• 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

                  Prof. Rushen Chahal      4-14
• Interview both employee
  and supervisor
• Interview employee first,
  helping him or her describe
  duties performed
• Then, analyst normally
  contacts supervisor for
  additional information
  Prof. Rushen Chahal      4-15
Employee Recording
      • Describe daily work
        activities in diary or log
      • Problem: Employees
        exaggerating job
      • Valuable in
        understanding highly
        specialized jobs
     Prof. Rushen Chahal         4-16
      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

                 Prof. Rushen Chahal     4-17
    Other Methods Available for
     Conducting Job Analysis
• Department of Labor Job Analysis
• Functional Job Analysis
• Position Analysis Questionnaire
• Management Position Description
• Guidelines-Oriented Job Analysis

                Prof. Rushen Chahal   4-18
 Department of Labor Job Analysis
• Structured job analysis questionnaire that
  uses a checklist approach to identify job
• Focuses on general worker behaviors
  instead of tasks
• Some 194 job descriptors relate to job-
  oriented elements

                  Prof. Rushen Chahal      4-19
      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

                 Prof. Rushen Chahal      4-20
Position Analysis Questionnaire
• Uses a checklist approach to identify job
• Focuses on general worker behaviors
  instead of tasks
• 194 job descriptors relate to job-oriented
• Each job being studied is scored relative
  to the 32 job dimensions
                  Prof. Rushen Chahal          4-21
 Management Position Description
• 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
                 Prof. Rushen Chahal        4-22
 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

                  Prof. Rushen Chahal      4-23
Conducting Job Analysis

             People who participate
             in job analysis should
             include, at a minimum:
           • Employee
           • Employee’s immediate

        Prof. Rushen Chahal      4-24
Job Description

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

   Prof. Rushen Chahal    4-25
    Content of a Job Description
• Job Identification – Job title, department,
  reporting relationship, and job number or
• Job Analysis Date – Aids in identifying job
  changes that would make description
• Job Summary – Concise overview of job
• Duties Performed – Major duties
                  Prof. Rushen Chahal       4-26
    O*NET, the Occupational
      Information Network

• Comprehensive government developed
  database of worker attributes and job
• Primary source of occupational
• Replaces Dictionary of Occupational
  Titles (DOT)
              Prof. Rushen Chahal     4-27
       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
             Prof. Rushen Chahal      4-28
Problems If Job Specifications
        Are Inflated

      • May systematically eliminate
        minorities or women from
      • Compensation costs will
      • Job vacancies will be harder
        to fill
           Prof. Rushen Chahal   4-29
Timeliness of Job Analysis
                        Rapid pace of
                        change makes
                        need for accurate
                        job analysis even
                        more important
                        now and in the

         Prof. Rushen Chahal            4-30
  Job Analysis for Team Members
• With team design, there are no narrow
• Work departments do is often bundled into
• Last duty shown on proverbial job
  description, “And any other duty that may
  be assigned,” is increasingly becoming
  THE job description.
                 Prof. Rushen Chahal     4-31
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
        Prof. Rushen Chahal             4-32
 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
• 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

                   Prof. Rushen Chahal         4-33
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

       Prof. Rushen Chahal        4-34
  Strategic Planning and Implementation Process
                        MISSION DETERMINATION
                   Decide what is to be accomplished (purpose)
                   Determine principles that will guide the effort

External Determining external conditions, threats, and opportunities
Internal Determining competencies, strengths, and weaknesses within the organization.

                        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
                                  Prof. Rushen Chahal                           4-35
Strategy Implementation

       • Leadership
       • Organizational
       • Information and
         Control Systems
       • Technology
       • Human Resources
        Prof. Rushen Chahal   4-36
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
        Prof. Rushen Chahal   4-37
         Human Resource Planning Process
                  External Environment
                  Internal Environment

                   Strategic Planning

               Human Resource Planning

 Forecasting       Comparing              Forecasting
   Human          Requirements              Human
  Resource                                 Resource
Requirements     and Availability         Availability

 Demand =           Surplus of            Shortage of
  Supply             Workers               Workers

 No Action       Restricted Hiring,       Recruitment
               Reduced Hours, Early
               Retirement, Layoffs,        Selection
                    Prof. Rushen Chahal                  4-38
• 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

                 Prof. Rushen Chahal     4-39
Forecasting Human Resource
                    • 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

         Prof. Rushen Chahal                  4-40
   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

                  Prof. Rushen Chahal        4-41
       The Relationship of Sales Volume to
             Number of Employees

Number of






       0    10    20         30       40   50   60
                       Sales (thousands)
                    Prof. Rushen Chahal              4-42
   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

               Prof. Rushen Chahal    4-43
        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.
                 Prof. Rushen Chahal       4-44
Shortage of Workers Forecasted

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

            Prof. Rushen Chahal      4-45
Surplus of Employees

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

      Prof. Rushen Chahal      4-46
• Also known as restructuring and
  rightsizing, is reverse of company growing
  and suggests one-time change in
  organization and number of people
• Retention bonuses are used to entice
  terminated employees to remain for short
  periods of time to ensure continued

                 Prof. Rushen Chahal      4-47
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
           Prof. Rushen Chahal       4-48
       Negative Aspects of
       Downsizing (Cont.)

• Employee loyalty significantly reduced
• Institutional memory lost
• Remaining workers required to do
• When demand for products/services
  returns, firm may realize it has cut too
               Prof. Rushen Chahal           4-49
• 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

     Prof. Rushen Chahal     4-50
          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

                  Prof. Rushen Chahal   4-51
Human Resource Information
     Systems (HRIS)
        Any organized approach
        for obtaining relevant
        and timely information on
        which to base HR

         Prof. Rushen Chahal   4-52
                   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 Programs/E-
T&D                                        learning/Management Succession
Performance Appraisal
Compensation             Information       Compensation Programs
Benefits                   System          Benefit Programs (e.g.,
                                           prescription drug programs)                  Human
                                           Health Programs (e.g., Employee             Resource
Health                                                                                Management
                                           Assistance Programs)
Labor Relations                            Bargaining Strategies                        Plans
Employee Relations                         Employee Services

  *Manager and employee self-service is available.

                                            Prof. Rushen Chahal                                    4-53
  Trends & Innovations: Manager
• 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
                 Prof. Rushen Chahal     4-54
    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

                 Prof. Rushen Chahal      4-55
              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

                 Prof. Rushen Chahal       4-56
         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

                 Prof. Rushen Chahal       4-57
 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
                 Prof. Rushen Chahal      4-58
Prof. Rushen Chahal   4-59