Meeting Human Resource Requirements

1. Meeting Human Resource Requirements Unit 2

2. Concept of HRP (Employment Planning) • HRP is the starting point of HRM • Essential part of the acquisition function of HRM • HRP translates the organization's objectives & plans into the number of workers needed to meet the objectives • The purpose of HRP is to access • where the organization is, • where it is going, & • what implications these assessments have on future supplies of & demands for human resources

3. Concept of HRP • It is how organizations assess the future supply of & demand for human resources • The number of HR in demand & supply is derived from environmental & operational analysis • Determines the numbers & types of employees to be recruited or phased out of an organization • Required readjustments as labor market conditions change

4. Definition of HRP • Human resource planning is a process by which • an organization ensures that it has the right number & kinds of people • at the right place at the right time • capable of effectively & efficiently completing those tasks • that will help the organization achieve its overall strategic objectives. Decenzo, Robbins

5. Relationship of HRP to Strategic Planning • Employment planning must be linked to the organization’s overall strategy • HRP must be responsive to the changes both within & outside the organization • To ensure that appropriate personnel are available to meet the requirements set during the strategic planning process, HRM engage in employment planning

6. Dynamic HRP Approach Business Planning Process HRP Process

7. Linking Organizational Strategy to Human Resource Planning

8. Characteristics of HRP • Goal-directed • Future-oriented • Quantitative and qualitative • Systems-oriented (matches demand and supply forecasts to determine future HR shortages or surpluses) • Time horizon (short or long term) • Integral part of corporate planning • Part of acquisition function

9. Importance of HR planning • Link business strategy and company operation • Focuses on achievement of the objectives of the organization • HR plans are linked to overall corporate plans • Facilitates better coordination • To minimize future risks and uncertainties • Forecasts the needs of technical and other manpower for the future • Reduces the chances of high HR costs • Matches demand & supply forecasts to determine future shortages & surpluses of HR

10. Planning the investment in the development and utilization of human resources • Any investment in the HR activities is considered an investment for the future growth and development of the organization • Ensures the organization acquires & retains the quality & quantity of HRs it requires • Existing HRs. are properly placed and deployed to ensure their effective and efficient utilization • Resources can be used efficiently • Is proactive • In attempting to solve any sort of future human resource problems

11. Explicit link between the HRP & other organizational functions • Such as strategic planning, economic and market forecasting etc. • Therefore, it improves the overall planning process • Promotes the awareness that HR activities are equally imp. at every level of the organization • Environmental Adaptation • Assesses current HR competencies through HR Inventory • Assesses job requirements through Job Analysis • Existing HRs can be adapted to changing technological, political, legal, economic social and cultural forces through HR planning • Facilitates change management

12. Acquisition of Human Resource • Determines future HR needs • Facilitates recruitment and selection of employees to fill job vacancies • Facilitates succession planning, career planning and development of employees • Makes outsourcing decisions for HRs • Control of Human Resource • Sets standards for controlling the quantity & quality of employees • Controls the HR costs as well • Improved Labour Relation • Awareness about the importance of HR at all levels of organization • Ensures commitment of all levels of managers to HR goals • Also assists in collective bargaining with labor unions

13. Human Resource Information System (HRIS) • A computerized system that assists in the processing of HRM information • Designed to quickly fulfil the personnel informational needs of the organization with almost no additional expenditure of resources • Database system that keeps important information about employees in a central & accessible location – even information on the global workforce • Its highly technical features permit an organization to track most information about an employee & about jobs & retrieve that information when it is needed • HRIS is useful for storing employment, training & compensation on each employee • Such information can help an organization gain a competitive advantage

14. HRIS contains • Personal Data: Personal Information, Department, Location • Skills Data: Education, training, skills, experience • Position Data: Occupational History, Turnover Rate, Sickness Absenteeism • Compensation Data: Remuneration History, Salary, Bonus, Pay Plans • Job Data: Job description, job specification

15. Use of HRIS in HRP • The key to successful HRP is information • HRIS is an integrated approach of acquiring, storing analyzing & controlling the flow of information throughout an organization • Contains programs for tracking applicants

16. Role of HRIS in HRP • Human Resource Inventory Role (Includes information about the workers & the skills they currently possess) • Human Resource Forecast Role (Helps in forecasting future HR demand & supply) • Human Resource Development Role (Identifying persons for training, development, promotion etc.) • Job Analysis Role (Systematic investigation of a job’s content)

17. HR Inventory • HR inventory would be derived from forms completed by employees & then checked by supervisors & the personnel department • Includes information about the workers & the skills they currently possess • Such reports would include • a list of names, • education & training, • prior employment, • current position, • performance rating, • salary level, • languages spoken, • capabilities, • specialized skills for every employee in the organization

18. Importance of HRI Report • Valuable in determining what skills are currently available in the organization • Serves as a guide for supporting new organizational pursuits/altering organization’s strategic direction • Crucial information for identifying current or future threats to the organization’s ability to successfully meet its goals • Value in HRM activities such as selecting individuals for training, development, promotion, transfers

19. Succession Planning • In addition to the computerized HRIS system, some organizations also generate a separate management inventory report • Typically called as the Replacement Chart: • Covers individuals in the middle management & top executive positions • In an effort to facilitate succession planning – • ensuring that another individual is ready to move into a position of higher responsibility – • the replacement chart highlights those positions that may become vacant in the near future • due to retirement, promotions, transfers, resignations, or death etc

20. Against this list of positions is placed the individual manager’s skills inventory • to determine if there is sufficient managerial talent to cover potential future vacancies • ‘Readiness chart' gives management an indication of time frames for succession • Helps to spot any skill shortages • Has 3 Steps • Identifying and analyzing key jobs • Creating and assessing candidates • Selecting those who will fill the key positions

21. An Overview of Job Analysis • A systematic process of obtaining information about jobs • Defines the job's duties, responsibilities & accountabilities of a job • Defines the conditions under which a job is performed • Defines knowledge, skills, abilities that individuals need to perform the jobs adequately • Involves the identification & description of what is happening on the job… accurately and precisely

22. Definition of Job Analysis • Job analysis is the procedure for determining the duties & skills requirement of a job and the kind of person who should be hired for it. Dessler • A purposeful, systematic process for collecting information on the important work-related aspects of a job. U.S. Employment Service

23. Nature of Job Analysis • Work activities • Collection of information about the job’s actual work activities • E.g. cleaning, selling, teaching, painting • Includes how, why, when the worker performs each activity • Human behaviours • Collection of information about human behaviours • E.g. sensing, communicating, deciding etc.

24. Machines, tools, equipment & work aids • Information regarding tools used, materials processed, knowledge dealt with • E.g. Finance, law • Information regarding services rendered • E.g. Counselling, repairing • Performance standards • In terms of quality & quantity of jobs • Management use these standards to appraise employees

25. Job context • Information about physical working conditions, work schedule • Social context – interaction • Information regarding incentives • Human requirements • Information regarding job’s human requirement • Job-related knowledge or skills (education, training) • Personal attributes (aptitudes, interests, personality)

26. Steps in Job Analysis • Step I • Decide how you’ll use the information • Some used for selecting employees/some for comparing jobs for compensation purposes • Step II • Review background information • Organization charts (distribution of work) • Process chart (shows the flow of inputs to & outputs from a particular job) • Step III • Select representatives to avoid analysis of similar jobs • Step IV • Actually analyze the job • By collecting data on job activities, working conditions etc. • Step V • Verify the job analysis information with the worker & his/her immediate supervisor • Step VI • Develop a job description (a list of what the job entails) & job specification (what kind of people to hire for the job)

28. Uses of Job Analysis Information • Recruitment and Selection • Information on what job needs • What human characteristics are required to perform the activities • Helps managers to decide what kind of people to recruit & hire • Compensation • For estimating the value of each job & its appropriate compensation • Determine relative worth of each job • Proper compensation demands accurate assessments of what various jobs entail • Performance Appraisal • Compares each employee’s actual performance with his/her performance standards • Determines the job’s specific activities & performance standards • Training & Career Development • Training the job requirements • Discovering Unassigned Duties • Helps reveal unassigned duties • (Equal Employment Opportunity) EEO Compliance • Helps to show that the selection criteria & job performance are actually related • Strategic Planning • Important tool in an organization’s overall strategic planning efforts

29. Job Analysis Methods 1. Observation Method • Data is gathered by watching employees work 2. Individual Interview Method • Extensive meeting with an employee to determine what his/her job needs 3. Group Interview Method • Meeting with a number of employees to collectively determine what their jobs need 4. Structured Questionnaire Method • A specifically designed questionnaire on which employees rate tasks they perform in their jobs from a long list of possible task items 5. Technical Conference Method • A job analysis technique that involves extensive input from the employee’s supervisor. Specific characteristics ob a job are obtained from the ‘experts’ 6. Diary method/Log • A job analysis method requiring job incumbents to record their daily activities

30. Job-Oriented analysis of tasks necessary to complete the job more concrete e.g. college student attend lectures take notes read text write papers do homework Person-Oriented analysis of the skills and abilities required intelligent self-motivated able to work alone able to integrate diverse information good long-term memory time-management skills Job Analysis Techniques/ToolsJob vs. Person Oriented Analyses

31. I. Job Focused Functional Job Analysis (FJA) ii. Management Position Description Questionnaire II. Person Focused Position Analysis Questionnaire (PAQ) Physical Abilities Analysis (PAA) Job Analysis Techniques/Tools

32. Job Analysis Techniques/ToolsI. Job Focused I. Job Focused i. Functional Job Analysis (FJA) • Developed by the U.S. Department of Labor (DOL) in the late 1940s • Helps find out what is involved in a particular job & elaborates the content of a job • Describes what one does by having someone observe & interview the employee • Categorizes jobs (Coding over 30 thousand jobs) • Information is categorized into 3 general functions that exist in all jobs – data, people & things • E.g. An office receptionist Data People Things Copy the data Speak to people Handle things What data are copied, whom the job-holder speaks, & which things are handled • Identifies performance standards & training requirements

33. FJA: A Real World Example • Work Functions • Data People Things • 0. Synthesizing 0. Mentoring 0. Setting up • 1. Coordinating 1. Negotiating 1. Precision work • 2. Analyzing 2. Instructing 2. Operating • Compiling 3. Supervision 3. Driving • Computing 4. Diverting 4. Manipulating • Copying 5. Persuading 5. Tending (nurturing) • Comparing 6. Speaking 6. Feeding • 7. Serving 7. Handling • 8. Helping *U.S. Department of Labor, Dictionary of Occupational Titles, 4th ed. Revised (Washington, D.C.: Government Printing Office, 1991), p.xix.

34. FJA conti… • Each job is given a code • E.g. A recruiter might be assigned the code 2, 6, 7 if the job entails analyzing data (2), speaking to people (6), and handling different things (7) • See previous table

35. FJA Technique

36. Job Analysis Techniques/ToolsI. Job Focused(conti…) ii. Management Position Description Questionnaire(MPDQ) • Designed to analyze managerial positions • A checklist containing 208 job factors related to responsibilities of managers is used • After collection of information, individual job description & specialization will be prepared • Intended to use across most industrial settings

37. Job Analysis Techniques/ToolsII. People Focused (conti…) i. Position Analysis Questionnaire (PAQ) • Developed at Purdue University • Structured job analysis questionnaire • Involves 194 elements that are grouped within 6 major divisions & 27 sections • Generates job requirement information that is applicable to all types of jobs • Collects quantifiable data concerning the duties & responsibilities of various jobs • Quantitatively compares jobs to one another & assign pay levels for each job • Applicable more to higher-level, professional jobs (required considerable experience) • Too lengthy

38. PAQ Technique

39. PAQ Example of “Sources of Job Information” Rate the extent to which each is used by the worker as a source of information in performing the job: Extent of Use: N - Does not apply 1 - Very infrequent 2- Occasional 3 - Moderate 4 - Considerable 5 - Very substantial 1.___ Written materials (books, reports, articles). 2.___ Quantitative materials (graphs, tables of numbers) 3.___ Measuring devices (calipers, tire pressure gauges, thermometers) 4.___ Features of nature (landscapes, geological samples, cloud formations)

40. Job Analysis Techniques/ToolsII. People Focused (conti…) ii. Physical Abilities Analysis (PAA) • Analyses physical abilities required by job-holders to perform the jobs • E.g. strength to lift

41. Purpose of Job Analysis • Job Descriptions (next topic) • Job Specifications (next topic) • Job Evaluations • Provides valuable information for making job comparisons • Contributes by specifying the relative value of each job in the organization • Relies on data generated from job analysis

42. Outcomes of Job Analysis2. Job Specification • Evolves from job description • Answers the question, “What human traits & experiences are required to do this job well?” • States the minimum acceptable qualifications that the employee must possess to perform the job successfully • A list of a job’s “human requirements” i.e. the requisite education, skills, personality etc. • For trained person is relatively straightforward; e.g. previous service, experience, training etc. • For untrained person is complex; e.g. physical trait, interest, motor skills etc.

43. Importance of Job Specification • An important tool in the selection process • Shows what kind of person to recruit & for what qualities that person should be tested

44. An Example of Job Specification Nepal Futuristic Bank Position: Training Officer Level: 7 Service: Administration Location: Central Office, Human Resource Department Responsible to: Director, Human Resource Department Responsible for: Training Personnel Assigned Job Specification • Education: MBA with specialization in Human Resource Management • Training: Short-term training in training methodologies, training of trainers • Experience: 3 years • Physical Health: Emotional stability, good health • Skills: Excellent oral & written communication skills; computer literate; getting along with people • Abilities: Traveling in various parts of the country

45. An Example of Job Specification Job Title: Office Clerk Qualifications: Intermediate/12 class, experience in office systems & procedures Personal: Speed & efficiency in handling volume of details Ability to instruct others in clerical jobs Ability to supervise work of others Duties Handle mail & dictate correspondence Check mail & file important records & correspondence Summarize & tabulate cost information & records Receive, take care of & account for petty cash & office funds Supervise work of general clerks in routine jobs Promotional opportunities:Advancement to accounting clerk after 2 years Salary range: Rs. 7000 – 9500 a month Source: Dev Raj Adhikari

46. Outcomes of Job Analysis1. Job Description • Written statement of what the job holder does, how it is done, why it is done • A list of a job’s duties, responsibilities, reporting relationships, working conditions, supervisory responsibilities • No standard format but includes: • Job title (title of the job, wage, benefits) • Summary (brief statement describing the purpose of the job & outputs expected) • Equipment (tools, equipment, information required) • Environment (working conditions, location) • Activities (job duties, responsibilities, social interactions)

47. Importance of Job Description • Describes the job to the potential candidates • Guides newly hired employees in what they are specifically expected to do • Provide a point of comparison in the actual activities & the stated duties of the employee

48. E.g. Format of a Job Description (contents) 1. Job identification • (Several types of information like title, date, etc.) 2. Job summary • (General nature of the job) 3. Responsibilities and duties • (List of the job’s major responsibilities & duties) 4. Authority of incumbent 5. Standards of performance • (Standards of performance; lists standards the employee is expected to achieve under each job description’s main duties) 6. Working conditions 7. Job specifications

49. An example of Job Description Job Title: Computer Operator Date: July 1, 2000 Office: Lazimpat, Kathmandu Written by: M. K. Pokhrel Department: MIS Approved by: R. S. Shrestha Grade/Level: 7 Name of Immediate Supervisor: D. B. Rana Summary • Operates digital computer & peripheral equipment under general supervision. Performs other assignments as required: • Follows specific technical & scheduling directives • Operates digital computer & associated peripheral equipment • Reviews & analyses data inputs • Maintains logs & records Source: Dev Raj Adhikari

50. An Example of Job Description