JOB ANALYSIS

An Overview:

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Introduction:
A job may be defined as a “collection or aggregation of tasks, duties and responsibilities which
as a whole, are regarded as a regular assignment to individual employees,” and which is
different from other assignments, in other words, when the total work to be done is divided and
grouped into packages, we call it a “job.”

Job analysis is essentially a process of collecting and analysing data relating to a job in an
organization. It refers to a scientific and systematic analysis of a job to obtain all pertinent facts
about the job.

Definitions:
According to DeCenzo and P. Robbins, “A job analysis is a systematic exploration of the
activities within a job. It is a basic technical procedure, one that is used to define the duties,
responsibilities, and accountabilities of a job.”

• Explanation: The procedure for determining the duties and skill requirements of a job
and the kind of person who should be hired for it is known as job analysis. Job analysis
produces information for writing job descriptions (a list of what the job entails) and job
(or “person”) specifications (what kind of people to hire for the job). The procedure for
determining the duties and skill requirements of a job and the kind of person who should
be hired for it.

Importance and Benefits of Job Analysis:

Job analysis is the process of gathering and analysing information about the content and the
human requirements of jobs, as well as, the context in which jobs are performed. This process
is used to determine placement of jobs. It leads to a wealth of information about a specific job.
After the completion of the data-gathering for analysis job competencies are identified and
clearly defined and can be used throughout the talent process stages from recruitment to pre-
hire assessment to employee training. Job analysis is useful for the overall management of all
human resource activities in any organization. The following are some of the benefits of job
analysis:

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• Human Resources Planning – Information from job analysis is necessary for planning
for the quantity and quality of staff required in the future.
• Training and Development – By providing information on what skills and knowledge
are required to perform a job, job analysis enables management to design training and
development programmes to acquire needed skills.
• Recruitment and Selection - Job analysis serves as a basis for recruitment and selection
of employees. It precedes recruitment since it is only after analysing the jobs needed to
be filled that recruitment and selection can follow.
• Placement and Orientation - As job analysis provides information about qualities and
skills needed for a job, it enables management to place employees on jobs best suited
for them.
• Job Evaluation - Provides information from which relative worth of jobs can be
evaluated. Job evaluation in turn helps in designing compensation systems.
• Performance Appraisal – It involves comparing actual performance and the expected
standards. Job analysis helps in formulating standards to be compared with actual
performance.

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 • Health and Safety - Job analysis helps in uncovering and identifying hazardous
conditions and unhealthy environmental factors e.g. heat, noise, dust, fumes etc. This
enables management to take precautionary measures to prevent and/or minimize
industrial accidents.

Job Analysis Process:

(Source: https://brauss.in/hrm-basic-notes.pdf)

1. Determine the Use of the Job Analysis Information: Start by identifying the use to
which the information will be put since this will determine the type of data you collect
and the technique you use to collect them. Some data collection techniques like
interviewing the employee are good for writing job descriptions. Other techniques, like
the position analysis questionnaire we describe later, provide numerical ratings for each
job; these can be used to compare jobs for compensation purposes.
2. Collection of Background Information: An organization needs to review the
background information about the job to know its relative importance in the
organization. While doing so, the job analysis should focus on identifying information
relating to all the important elements of the job. This information can be gathered with
the help of organizational charts, process charts, and job classification. Given below is
an example of a Process Chart for analysing a Job’s Workflow.

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 (Source - Human Resource Management by Gary Dessler)

3. Selection of Jobs for Analysis: To do job analysis is a costly and time-consuming

process. It is hence necessary to select a representative sample of jobs for purposes of
analysis. Priorities of various jobs can also be determined. A job may be selected
because it has undergone undocumented changes in job content. The request for
analysis of a job may originate with the employee, supervisor, or manager.
When the employee requests an analysis, it is usually because new job demands have
not been reflected in changes in wages. Employee’s salaries are, in part, based upon the
nature of the work that they perform. Some organizations establish a time cycle for the
analysis of each job. For example, A job analysis may be required for all jobs every
three years. New jobs must also be subjected to analysis.
4. Collection of Job Analysis Data: Job data on features of the job, requited employee
qualification and requirements, should be collected either from the employees who
perform a job; or from other employees (such as foremen or supervisors) who watch
the workers doing a job and thereby acquire knowledge about it; or from the outside
persons, known as the trade job analysis who are appointed to watch employees
performing a job. The duties of such a trade job analyst are:
• To outline the complete scope of a job and to consider all the physical and
mental activities involved in determining what the worker does.
• Find out why a worker does a job, and for this purpose, he studies why each
task is essential for the overall result

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 • The skill factor which may be needed in the worker to differentiate between
jobs and establish the extent of the difficulty of any job.
5. Processing the Information: Once job analysis information has been collected, the next
step is to place it in a form that will make it useful to those charged with the various
personnel functions. Several issues arise concerning this. First, how much detail is
needed? Second, can the job analysis information be expressed in quantitative terms?
These must be considered properly.
6. Preparing Job Descriptions and Job Classifications: Job information that has been
collected must be processed to prepare the job description form. It is a statement
showing full details of the activities of the job. Separate job description forms may be
used for various activities in the job and maybe compiled later on. The job analysis is
made with the help of these description forms. These forms may be used as references
for the future.
7. Developing Job Specifications: Job specifications are also prepared based on
information collected. It is a statement of minimum acceptable qualities of the person
to be placed on the job. It specifies the standard by which the qualities of the person are
measured. Job analyst prepares such a statement taking into consideration the skills
required in performing the job properly. Such a statement is used in selecting a person
matching the job.

Techniques of Data Collection for Job Analysis:

(Source - Human Resource Management by Pravin Durai)

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Job Description:
The most important product of job analysis is the job description. A job description is a written
statement of what the worker does, how he or she does it, and what the job’s working conditions
are. You use this information to write a job specification; this lists the knowledge:

1. Job Identification (Title) - This section of the job description provides information
about the job title, alternative title (if any), the code number of the job, the department,
division and plant. An appropriate job title easily identifies the nature of the job and its
position in the organization.

2. Job Summary - The job summary should summarize the essence of the job, and include
only its major functions or activities. It describes the contents of the jobs in terms of
activities or tasks performed. The job summary should clarify the nature of the job.
Primary, secondary and other duties to be performed on the job should be indicated
separately.

3. Responsibilities and Duties - There may be a “relationships” statement that shows the
job-holder’s relationships with others inside and outside the organization. For example,
in case of a human resource manager, such a statement might say:

• Reports to: Vice president of employee relations.

• Supervises Human resource clerk, test administrator, labour relations director,

and one secretary.

• Works with: All department managers and executive management.

• Outside the company: Employment agencies, executive recruiting firms, union

representatives, state and federal employment offices, and various vendors.

4. Authority of Incumbent - This is the heart of the job description. It should present a list
of the job’s significant responsibilities and duties. Typical duties for other jobs might
include making accurate postings to accounts payable, maintaining favourable purchase
price variances, and repairing production-line tools and equipment. This section may
also define the jobholder’s authority limits.

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 5. Working Conditions - The working environment in terms of heat, light, noise, dust and
fumes etc, the job hazards and possibility of their occurrence and working conditions
should also be described. It will be helpful in job evaluation.

A detailed example of the job description is given below:

(Source - Human Resource Management by Gary Dessler)

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JOB SPECIFICATION & OTHER JOB-RELATED CONCEPTS

The job specification states the minimum acceptable qualifications that the incumbent must
possess to perform the job successfully. Based on the information acquired through job
analysis, the job specification identifies the knowledge, skills, and abilities needed to do the
job effectively. Individuals possessing the personal characteristics identified in the job
specification should perform the job more effectively than individuals lacking these personal
characteristics. The job specification, therefore, is an important tool in the selection process,
for it keeps the selector’s attention on the list of qualifications necessary for an incumbent to
perform the job and assists in determining whether candidates are qualified.

Job Enrichment:
The concept of job enrichment has been derived from Herzberg’s two-factor theory of
motivation in which he has suggested that job content is one of the basic factors of motivation.
If the job is designed in such a manner that it becomes more interesting and challenging to the
job performer and provides him opportunities for achievement, recognition, responsibility,
advancement and growth, the job itself becomes a source of motivation to the individual.

(Source - https://keydifferences.com/difference-between-job-enlargement-and-job-enrichment.html)

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• Techniques of Job Enrichment: To enrich the jobs. The management should adopt the
following measures:

1. Freedom in decisions

2. Assign a natural work unit to an employee.

3. Encouraging participation

4. Allow the employee to set his standards of performance.

5. Minimize the controls to provide freedom to the employees

6. Make an employee directly responsible for his performance.

7. Encourage participation of employees in deciding organizational goals and policies.

8. Expand job vertically

9. Introducing new, difficult and creative tasks to the employees.

10. Sense of achievement.

• Advantages of Job Enrichment:

1. It enriches the role.

2. Job enrichment is the most widely used of job design as it provides meaningful
learning to employees.

3. It makes the work interesting and employees get motivated.

4. It helps in reducing the rate of labour turnover and absenteeism.

5. It increases the skills of the employees.

6. It increases morale and performance.

7. Reduce Boredom and dissatisfaction.

8. Increase in output both qualitative and quantitative.

• Disadvantages of Job Enrichment:

1. Increase cost

2. Need more employee counselling, training, and guidance.

3. Not applicable to all jobs.

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 4. Negative impact on personnel.

5. Imposed on people.

6. Objected by unions

7. Pay dissatisfaction

Job Enlargement:
Another means of increasing employee’s satisfaction with routine jobs is job enlargement or
increasing the number of tasks performed (i.e. increasing the scope of the job). Its basic aim is
to make the job more attractive by increasing the operations performed by a person in the job.
Job enlargement techniques aim at designing jobs in such a way that the interest and needs of
both the management and the employees are fulfilled. Job enlargement offers diverse tasks to
the employees even while ensuring that the enlarged job requires the same level of skills.

(Source - https://keydifferences.com/difference-between-job-enlargement-and-job-enrichment.html)

While deciding about job enlargement, the organization should consider whether it wants to
adopt a horizontal or vertical enlargement.

▪ Horizontal Enlargement - It refers to the degree to which a job contains many tasks. It
involves the enlargement of duties by adding new but similar tasks. It aims at making
the job low in specialization and boredom.

▪ Vertical Enlargement - It is the degree to which the employees decide how the task is
to be done. It enables an employee to participate in the planning, organizing and

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 controlling aspects of a task. It removes some controls but the authority and the
accountability are increased or retained.

Job Rotation:
Another technique designed to enhance employee motivation is job rotation, or periodically
assigning employees to alternating jobs or tasks. For example, an employee may spend two
weeks attaching bumpers to vehicles and the following two weeks making final checks of the
chassis. During the next month, the same employee may be assigned two different jobs.
Therefore, the employee would be rotated among four jobs. The advantage of job rotation is
that employees do not have the same routine job day after day. Job rotation only addresses the
problem of assigning employees to jobs of limited scope; the depth of the job does not change.
Job rotation is often effectively used as a training technique for new, inexperienced employees.
At higher organizational levels, rotation also helps to develop managerial generalists.

• Advantage of Job Rotation Technique

1. The employee experiences a variety of work, workplace and peer groups.

2. Job rotation helps to broaden the knowledge and skills of an employee.

3. The main advantage of job rotation is that it relieves the employee from the
boredom and monotony of doing the same job.

4. With the help of this method, people become more flexible. They are prepared to
assume responsibility, especially in other positions.

5. Job rotation broadens the work experience of employees and turns specialists into
generalists.

6. It is beneficial for the management also as the management gets employees who
can perform a variety of tasks to meet the contingencies.

7. This method improves the self-image and personal worth of the employee.

• Disadvantage of Job Rotation Technique

1. Job rotation also creates disruptions. Members of the workgroup have to adjust to
the new employee.

2. Productivity is reduced by moving a worker into a new position just when his
efficiency at the prior job was creating organizational economies.

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 3. Training costs are increased.

4. The supervisor may also have to spend more time answering questions and
monitoring the work of the recently rotated employee.

5. It can demotivate intelligent and ambitious trainees who seek specific

responsibilities in their chosen speciality.

Example:
PlayNow, a technology start-up, has a two-year job rotation program as part of their finance
department. Through this program, PlayNow rotates financial analysts through a variety of
roles, including on the financial planning and analysis, accounting, treasury and internal audit
teams. It is a voluntary training program designed for new employees with an interest in
learning more about ways they can use their skills as financial analysts.
PlayNow finds that this program not only keeps staff they already have but attracts better
applicants for financial analyst jobs. The employees who take part in the program find they are
better able to find what type of role they want permanently at the company. When the program
ends, PlayNow places employees to the best of their abilities into roles that are a good fit for
each employee.

Flexi Timing:

Flextime or Flexitime is a non-traditional approach to work hour schedule. This allows

employees to select their working hours on their own. There is, however, a particular core
period for which all employees have to be present at work. The rest of the work hours can be
adjusted as per the employee’s convenience.

• Advantages of Flexi Time:

Employers:
1. Employee Retention: Flexible timings result in increased employee satisfaction
thereby lowering turnover.
2. Higher Productivity: Allowing employees to choose their work hours strengthens
commitment towards the organization goal which in turn boosts productivity

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 3. Larger Window of Client Communication: With different team members coming in
at different times it becomes easier to communicate with clients at different time
zones
4. Lesser Work Pressure: Dividing the time according to the employee’s wish keeps
their morale boosted, which helps in dealing with stress
5. Decreasing Presenteeism and Absenteeism
6. Increasing Employee Loyalty

Employees:
1. Time Management: Having a flexible work schedule means a better division of
professional and personal time.
2. Lesser Travel Time: Avoiding peak traffic hours results in saving time and keeps
energy high.

• Disadvantages of Flextime:
Employers:
1. Communication among Team Members: When all members have different timings
it’s tough to fit in meetings that suit all.
2. Unsuitable for All Industries: Flextime is a probable solution for the service
industry, but is not at all feasible for employees of the manufacturing industry. For
example, workers if an assembly line have to be present at the same time as it is a
chained process
3. Employee Specific: Every employee may not look at flex timing as a benefit
provided. Thus, strong supervision is necessary from management to make the
effort successful.

Employees:
1. Lack of team communication: As the whole team spends little time together, team
dynamics are not very strong and may result in a lack of communication

Examples:
1. Let for company X:
The total work hour per week is: 40
Total work hour per day: 8
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 Traditional Timing: 9am-6pm / 8am-5pm; 5days a week
Flextime - Core Hours: 12AM-4PM

2.

(Source - https://www.mbaskool.com/business-concepts/human-resources-hr-terms/15337-
flextime.html)

Telecommuting:
The concept originated in the 1970s when advances in technology made it possible and it has
grown. Telecommuting saves companies money on office space and saves money the employee
spends on travel. It also helps them balance their home lives and work, to increase employee
satisfaction. Some positions are completely remote and only require the employee to have a
computer and phone to complete the necessary tasks outside of the office. Other jobs only
require their employees to travel to the office for meetings or special tasks. More and more
companies are allowing their employees to work remotely to be eco-friendlier and to save
money among many other different reasons. A few examples of popular telecommuting jobs
are Web Developers, Content Writers, Graphic Designers, Accountants, Social Media
Specialists, Account Managers, etc.

(Source- https://globalworkplaceanalytics.com/telecommuting-statistics)

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Ergonomics:
Ergonomics is the science of designing the job and workplace to fit the worker rather than the
other way around. In other words, ergonomics is about eliminating or minimizing physical
stressors and environmental factors that adversely affect worker health and comfort.
Ergonomics refers to the study of how people interact with their working environment and then
adjusting that environment to improve efficiency—all while reducing the chance for injury and
optimizing well-being and productivity. This assessment and adjustment take into account the
individual’s physical characteristics as well as the movements and actions needed to
accomplish the job.

(Source - https://hrmasia.com/all-about-workplace-ergonomics-2/)

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 HR PLANNING

What is HRP?

In simple words, HRP is a process of striking a balance between human resources required and
acquired in an organisation. In other words, HRP is a process by which an organisation
determines how it should acquire its desired manpower to achieve the organisational goals.
Thus, HRP helps an organisation have the right number and kind of people at the right places
and the right times to successfully achieve its overall objectives.

Definitions:

• According to Terry L. Leap and Michael D. Crino, “HRP includes the estimation of
how many qualified people are necessary to carry out the assigned activities, how many
people will be available and what, if anything, must be done to ensure that personnel
supply equals personnel demand at the appropriate point in the future.”
• In the words of Beach, “Human resource planning is a process of determining and
assuming that the organisation will have an adequate number of qualified persons,
available at the proper times, performing jobs which meet the needs of enterprise and
which provide satisfaction for the individual involved”
• Geisleropines, “HRP is the process- including forecasting, developing and controlling
by which a firm ensures that it has the right number of people and the right kind of
people at the right places, the right time and doing work for which they are
economically most useful.”

There are four key steps to the HRP process. They include analysing present labour supply,
forecasting labour demand, balancing projected labour demand with supply, and supporting
organizational goals. HRP is an important investment for any business as it allows companies
to remain both productive and profitable.

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 1. Forecasting future personnel requirements, either in terms of mathematical
projections, trends in the economy and developments in the industry, or of judgments
and estimates based upon specific plans of the company.
2. Inventorying present manpower resources and analysing the degree to which these
resources are employed optimally.
3. Anticipating Manpower Problems by projecting present resources into the future and
comparing them with the forecast of requirements, to determine their adequacy, both
quantitatively and qualitatively.
4. Planning the necessary programmes of recruitment, selection, training, utilization,
transfer, promotion, motivation and compensation so that future human resource
requirements will be duly met.

Objectives:

(Source - https://commercemates.com/importance-of-human-resource-planning/)

The main objective of having human resource planning is to have an accurate number of
employees required, with matching skill requirements to accomplish organisational goals. In
other words, the objectives of human resource planning are to:

• Ensure adequate supply of manpower as and when required.

• Ensure proper use of existing human resources in the organisation.

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 • Forecast future requirements of human resources with different levels of skills.
• Assess surplus or shortage, if any, of human resources available over a specified period.
• Anticipate the impact of technology on jobs and requirements for human resources.
• Control the human resources already deployed in the organisation.
• Provide adequate lead time to select and train the required additional human resource
over a specified period.

According to Sikula, “the ultimate purpose/objective of human resource planning is to relate

future human resources to future enterprise needs to maximize the future return on investment
in human resources”.

Importance:

(Source - https://commercemates.com/importance-of-human-resource-planning/)

Human resource planning is important to the firm because it benefits the organisation in several
ways such as:

1. Human resource planning helps meet the organisation’s need for the right type of people
in the right numbers at the right times.
2. By maintaining a balance between demand for and supply of human resources, human
resource planning makes optimum use of human resources, on the one hand, and
reduces labour cost substantially, on the other.
3. Careful consideration of likely future events, through human resource planning, might
lead to the discovery of better means for managing human resources. Thus, foreseeable
pitfalls might be avoided.

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 4. Manpower shortfalls and surpluses may be avoided, to a large extent.
5. Human resource planning helps the organisation create and develop training and
succession planning for employees and managers. Thus, it provides enough lead time
for an internal succession of employees to higher positions through promotions.
6. It also provides multiple gains to the employees by way of promotions, increases in
emoluments and other perquisites and fringe benefits.
7. Some of the problems of managing change may be foreseen and their consequences
mitigated. Consultations with affected groups and individuals can take place at an early
stage in the change process. This may avoid resistance to change.
8. Human resource planning compels management to assess critically the strength and
weaknesses of its employees and personnel policies continuously and, in turn, take
corrective measures to improve the situation.
9. Through human resource planning, duplication of efforts and conflict among efforts
can be avoided, on the one hand, and coordination of worker’s efforts can be improved,
on the other.
10. Lastly, with an increase in skill, knowledge, potentialities, productivity and job
satisfaction, the Firm-level to the organisation becomes the main beneficiary. The
organisation is benefitted in terms of increase in prosperity/production, growth,
development, profit and, thus, an edge over its competitors in the market.

Different Stages of HR Planning Process:

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1. Analysing Organizational Objectives: The objective to be achieved in future in various
fields such as production, marketing, finance, expansion and sales gives the idea about
the work to be done in the organization. Hence, it is the first step to the HRP process.
Understanding these objectives better would help in planning the HR Requirements and
Strategies accordingly.
2. Inventory of Present Human Resources: From the updated human resource information
storage system, the current number of employees, their capacity, performance and
potential can be analysed. To fill the various job requirements, the internal sources (i.e.,
employees from within the organization) and external sources (i.e., candidates from
various placement agencies) can be estimated.
3. Forecasting Demand and Supply of Human Resource: The human resources required
at different positions according to their job profile are to be estimated. The available
internal and external sources to fulfil those requirements are also measured. There
should be proper matching of a job description and job specification of one particular
work, and the profile of the person should be suitable for it.
4. Estimating Manpower Gaps: A comparison of human resource demand and human
resource supply will provide with the surplus or deficit of human resources. The deficit
represents the number of people to be employed, whereas the surplus represents
termination. Extensive use of proper training and development programmes can be
done to upgrade the skills of employees.
5. Formulating the Human Resource Action Plan: The human resource plan depends on
whether there is a deficit or surplus in the organization. Accordingly, the plan may be
finalized either for new recruitment, training, interdepartmental transfer in case of
deficit of termination, or voluntary retirement schemes and redeployment in case of
surplus.
6. Monitoring, Control and Feedback: It mainly involves the implementation of the human
resource action plan. Human resources are allocated according to the requirements, and
inventories are updated over a period. The plan is monitored strictly to identify the
deficiencies and remove them. A comparison between the human resource plan and its
actual implementation is done to ensure the appropriate action and the availability of
the required number of employees for various jobs.

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Levels of HRP

• At the National Level. Human resource planning by the Government at the national
level covers population projections, programmes of economic development,
educational and health facilities, occupational distribution and growth, mobility of
personnel across industries and geographical regions.
• At the Sector Level. This would cover manpower requirements of the agricultural
sector, industrial sector and service sector.
• At the Industry Level. This would forecast manpower needs for specific industries, such
as engineering, heavy industries, textile industries, plantation industries, etc.
• At the Level of Industrial Unit (the Firm level). It relates to the manpower needs of a
particular enterprise.

Action Plans in case of Shortage and Surplus of the Workforce:

(Source - https://businesspathsala.com/human-resource-planning/?hcb=1)

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Shortage:

1. Train Existing Employees: In order to make up for a shortage of skilled workers, many
companies have begun offering training to their existing employees, to tailor them to
fill current gaps. This can mean training offered in-house, where a knowledgeable
employee shares with others their valuable expertise. It's a great way for companies
with a few good resources to increase their value without expending too much time and
money. Another option is outside training. Several businesses offer their employees
incentives to return to school to get the education they need. While this option can be
more expensive and time-consuming, it can also pay off in the long run. Not only does
it ensure your employees are trained to industry standard quality, but as an incentive
alone can attract a lot of talented workers to your doorstep.
2. Adaptability - Apply Workforce Skills Differently: Interestingly, there might be a more
direct solution than you think. Many companies have discovered that they already have
the people they need but are merely ineffectively using them. It's important to keep an
open mind when looking at your available skill sets, paying close attention to skills that
could be transferable. Consider employees that might be able to apply their skills
differently – someone with a strong sales background could easily apply their abilities
to marketing content for example. Someone with a strong background in
communications could find an excellent new career in sales, someone with engineering
skills and a background in the automotive industry could easily find themselves in a
comfortable career as a resource manager and so on. The key to solving your skills
shortage might be hiding right under your nose.
3. Re-evaluate your Recruiting Practices: When skills shortages become a serious
concern, it might be time to re-evaluate how you recruit new employees. New staff
members don't have to be perfect from the get-go. Without hurting your company, you
could easily hire applicants with 80 per cent of the right requirements and help them
grow into the role. Or, you could try hiring applicants with all the right skills, but ones
perhaps with less experience than you were initially looking for. If you diversify your
hiring practice and consider transferable skills as mentioned before, you could find
excellent, motivated individuals who could easily help your company reach its goals.
4. Partner with nearby Educational Facilities: Though rarer in recent times, many
organizations would partner with local (or national) educational facilities – this would
mean you would have a fresh supply of skilled potential workers, and the school would

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 be able to help graduates in job placement. You can also open your company up to
apprenticeships, co-op work placements and internships, which can help cultivate the
next generation of skilled workers. Best of all, you keep a close eye on the future of
your industry.
5. Use Contingent Workers: Naturally, one of the easiest ways to fill a skills shortage is
by hiring contingent workers. With freelancers, consultants, contractors and more, you
can fill massive gaps in your operation quickly and in a cost-effective manner.
Contingent workers are becoming an incredibly popular option for many companies.
Their expertise, availability and flexibility allow them to work within the confines of
any timeframe, budget and project. Unlike a lot of areas of the labour market, the
number of contingent workers is only increasing. The result? There are enough
contingent workers to meet your needs for as long as you need. The path your business
chooses to handle a labour surplus depends on your current financial situation and
corporate goals. If you have succeeded in implementing efficient processes or
production techniques and no longer need all your factory staff, you can shift the
responsibilities of some workers to a similar area to help your company grow vertically
or horizontally. Layoffs are not your only option. However, if you are struggling to
make payroll and there is no sign that business is going to pick up shortly, it is probably
best to let some of your staff go. This way, your workers can collect unemployment
benefits and search for new jobs to further their careers, while you maintain some
profitability for the business.

Surplus:

In any situation involving a labour surplus, don't hire new workers. A hiring freeze is a
necessary step while your company's management team determines the best path forward. In
addition, you should end contracts with outsourced talent and transfer those tasks to internal
labour instead.

1. Job Rotation: Job rotation helps in moving labour internally in the organisation. Job
rotation is a strategy where employees rotate between jobs at the same business.
Employees take on new tasks at a different job for a period of time before rotating back

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 to their original position. With a job rotation system, employees gain experience and
skills by taking on new responsibilities. This will help in using the resources efficiently.
2. Off Job Training: In simple words, off-the-job training consists of a specialised training
site that might be close to the actual workplace where employees must master the skills
and be properly prepared with the equipment and techniques to be utilised in the actual
workplace. This would help in creating values
3. Expand Production: With surplus labour, an organisation can expand production by
putting in resources. This will help in producing more at low prices. Although it may
have a financial burden, organisations can also focus on the diversification of their
products. This may prove to be a good decision in the long term.
4. Reduce Working Time: Reducing work time can help in improving the work-life
balance of their employees. This will help the employees to rejuvenate themselves and
will help the organisation in managing their labours efficiently.
5. Early Retirement: Early retirement is an element that would help an organisation
maintain their workforce balance and the average workforce age which would be
younger. That would help in the channelising old workforce and use the existing extra
workforce which would act as an action plan.
6. Vocational Training: Vocational training would help prepare the workforce for new
jobs which would be beneficial to the organisation. This not only helps in managing a
surplus workforce but will bring a new experience into the firm and will broaden
horizons.
7. Layoff: Layoffs may sound monotonous but are very effective. This is the last option
to be considered in this case if all the above steps are not effective. Layoff strategies
may be determined by seniority status, individual or collective employment contracts
or on a case-by-case basis.

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