HRM (Chapter No - 2)
HRM (Chapter No - 2)
HRM (Chapter No - 2)
• 2) Succession planning -- A strategy of workforce planning, HR professionals can use job analysis results to help fill
key roles within their organization, now and in the future.
• 3) Training -- By basing training procedures on the findings of a job analysis, organizations are better equipped to
identify the gaps or distances between the current workforce or a newly-hired workforce and the KSAPCs needed the
first day of the job. HR professionals can consequently create job-specific or group/employee-specific training
procedures.
• 4) Employee development -- Using the results of a job analysis, organizations may identify any gaps on an individual
level and assist employees with their career management.
• 5) Compensation -- With an effective job analysis, organizations can ensure that job titles requiring similar duties and
KSAPCs are being compensated similarly.
• 6) ADA compliance -- Biddle Consulting Group’s patented GOJA job analysis (Guidelines-Oriented Job Analysis)
process asks specific questions that are outlined by the 1990 Americans with Disabilities Act (ADA) to determine
whether or not a duty is considered an essential function. Our GOJA process gathers information to assist the
organization in deciding whether or not each duty is an essential function. If an employee can perform an essential
function with or without reasonable accommodation, the employer must provide such an accommodation (unless it
would incur an undue hardship, ADA, 1990).
• 7) Performance appraisals -- The results of a job analysis can allow an organization to develop an employee according
to the specific needs of their job title. Additionally, organizations may also use the results of a job analysis to groom
employees for promotion by training in areas that will contribute to a future position.
• 8) Clear idea: The individual job holder obtains a clear idea of his main responsibilities. By getting this clear
idea a job holder can fully concentrate on his job. And this concentration of an employee can change the
picture of an organization.
• 9) Job improvement: It provides the individual with a basis for arguing for changes or improvements in his
job (e.g. job redesign). We know that man can do his/her best if he/she likes his job. So, it ultimately brings
better for a company.
• 10) Relevant information: It provides the individual with relevant information in respect of an appraisal he
or she may have.
• 11) Opportunity to participate: It may provide the individual with an opportunity to participate in setting his
own.
• 12) Provides initial Hand Job-Related Information: The work analysis method provides valuable job-related
information that uniquely helps all the managers and all good job analysts the duties and responsibilities of a
particular job, the risks, and hazards concerned in it, skills and talents needed to perform the work and
alternatively connected data.
• 13) Helps in making Right Job-Employee: It is often one of all the principal crucial management activities.
Filling the proper person during the right job vacancy may be a check-off skill, understanding, and
competencies of time unit managers.
• Job Analysis helps them perceive what sort of work is going to be appropriate to deliver a particular job with
success.
• 14) Guides through Performance Analysis and Appraisal Processes: Job Analysis helps managers evaluate
the performance of workers by examining the quality or desired output with delivered or actual production.
• 15) Helps to decide Compensation Package for a particular Job: A real and unbiased method of job analysis
helps managers in determining the acceptable compensation package and advantages and allowances for a
specific job.
• Methods of Job analysis –
• 1. Observation method
• The observation method is when an outside analyst observes an employee and the tasks they perform.
They'll often shadow the employee for several days as they perform their duties, attend meetings and
evaluate their workload to understand the role's essential functions.
• 2. Interview method
• The interview method is when the analyst questions an employee about their role. They hope to learn the
same aspects of the job they might see in the observation method, like what systems they use, what
processes they follow and how they apply their skills to achieve results.
• 3. Questionnaire method
• The questionnaire method is when analysts create a series of questions for employees to answer about their
jobs. They often ask the employee's managers and others on the team about their perceptions of the role to
identify any gaps between expectations.
• 4. Daily method
• The daily method is when an employee creates a record daily of the tasks they perform. This can be over a
set period of time, like a week, where they detail their activities and the length they spend on each.
• 5. Functional job analysis method
• Functional job analysis is a formal method to evaluate a job and capture quantitative results. This means they
might combine several other methods to understand everything about the role itself and the person
performing them.
• 6. Job inventories method
• Job inventories involve a structured checklist that employees can check off to verify that they're completing
certain tasks. This usually comes from a role's job description or management expectation to ensure they're
performing certain duties or using certain tools.
• 7. Job performance method
• The job performance method is when an analyst actually performs the role of the employee to understand
more about it. This might mean they answer emails, perform physical tasks and interact with colleagues or
systems to learn what an employee experiences.
• Job Description -
• It is an important document. It is descriptive in nature. It is useful to identify a job for consideration by job analysis. Important questions
to be answered through the job description are:
• What should be done?
• Why it should be done?
• Where it should be done?
• There is no universal format of writing job descriptions. According to Ghorpade, the following information is common in most of the job
descriptions.
• Job title: title of the job and other identifying information such as wages, salaries, other benefits
• Summary: a summary is written in one or two lines that describe what outputs are expected from job incumbents.
• Equipment: a clear statement of tools, equipment, and other information required to perform job effectively.
• Environment: a clear description of the working conditions of the job, the location and other characteristics of work environment such
as hazards, noise, temperature, cleanliness etc.
• Activities: a description about the job duties, responsibilities, and expected behaviour on the job. A description of social interactions
associated with the job such as the size of a workgroup, interpersonal interaction on the job is made.
• Job analyst writes job description in consultations with the workers and supervisors. After writing draft job description, comments and
criticism are invited to improve its content. The final draft is then prepared. Job description is written either by making a personal
observation or using a questionnaire to collect relevant information from supervisors and workers. Job descriptions should be reviewed
from time to time.
• Job Specifications -
• It is also known as man or employee specifications is prepared on the basis of the job specifications. It specifies the qualities required in
a job incumbent for the effective performance of the job.
• Basic contents of a job analysis specification are as follows:
• Personal characteristics such as education, job experience, age, sex, and extra co-curricular activities.
• Physical characteristics such as height, weight, chest, vision, hearing, health, voice poise, and hand and foot coordination, (for specific
positions only).
• Mental characteristics such as general intelligence, memory, judgment, foresight, ability to concentrate, etc.
• Social and psychological characteristics such as emotional ability, flexibility, manners, drive, conversational ability, interpersonal ability,
attitude, values, creativity, etc.
• Various contents of a job analysis specification can be prescribed in three terms:
• essential qualities which a person must possess
• desirable qualities which a person may possess
• contra-indicators which are likely to become a handicap to a successful job
• performance
• Job evaluation
• It is a process of determining the relative worth of a job. It is a process that is helpful even for framing
compensation plans by the personnel manager. Job evaluation as a process is advantageous to a company
in many ways:
• 1. Reduction in inequalities in salary structure – It is found that people and their motivation is dependent
upon how well they are being paid. Therefore the main objective of job evaluation is to have external and
internal consistency in salary structure so that inequalities in salaries are reduced.
• 2. Specialization – Because of the division of labor and thereby specialization, a large number of
enterprises have got a hundred jobs and many employees to perform them. Therefore, an attempt should
be made to define a job and thereby fix salaries for it. This is possible only through job evaluation.
• 3. Helps in the selection of employees – The job evaluation information can be helpful at the time of
selection of candidates. The factors that are determined for job evaluation can be taken into account while
selecting the employees.
• 4. The harmonious relationship between employees and manager – Through job evaluation, harmonious
and congenial relations can be maintained between employees and management so that all kinds of salary
controversies can be minimized.
• 5. Standardization – The process of determining the salary differentials for different jobs become
standardized through job evaluation. This helps in bringing uniformity into the salary structure.
• 6. The relevance of new jobs – Through job evaluation, one can understand the relative value of new jobs
in a concern.
• Advantages of job evalution
1. Progress Tracking -
• Job evaluations are an effective tool to measure employee progress from one review period to another.
Employers can compare scores from past reviews to ensure workers are on an upward trend in their career
development.
•
• 2. Feedback
• Job appraisals provide the chance for managers to give feedback on employee performance. Evaluations
are the most useful when given on a regular basis. Managers must remember to evaluate the employee’s
work over the entire review period and not the recent past
• 3. Motivation
• Job evaluations can be very motivating to employees when they are accurate. Managers should use the
review to praise outstanding performance and to provide constructive pointers in areas that need
improvement. The evaluation should use clear criteria for ratings so workers know what they need to do to
have a better review next time.
• 4. Objectivity
• Job evaluations are not a useful tool if managers do not prepare them objectively. Sometimes, managers'
personal biases sway the evaluation to be more positive or negative than it should be. If employees believe
the boss plays favorites and does not use objective criteria to evaluate employees, morale will suffer.
Reviews are also less effective when managers do not use clear, quantitative metrics to determine
appraisal scores.
• 5. Evaluation Stress
• Many employees dread the evaluation process because it causes them stress and worry. Managers can
alleviate anxiety by letting workers know throughout the review period how they are doing. Managers
should keep the review process relaxed and they should facilitate a two-way dialogue.
• 6. Inconsistency
• When the scoring on job evaluations is inconsistent, employees may feel that management is not treating
them fairly. Evaluations should be set up so all managers and workers know the expectations and scoring
criteria for all work categories.
• Disadvantages of job analysis –
• 1. Lack of Complete Accuracy
• The accuracy claimed by it is not in fact accurate. The system considers the key factors independent of others which
is not so in reality. Consequently, the weights assigned to the factors are also less accurate. This is particularly so if
the factors are of highly technical in nature.
• 2. Unrealistic Assumptions
• Job evaluation is based on the assumption that wage rates can be related to the work of a given job. It completely
ignores the fact that conditions in the labour market exercise greater influence in the determination of wage rates.
• 3. Formation of the Committee
• The formation of the job evaluation committee itself creates a serious problem. Only persons who are capable of
evaluating the jobs should be appointed as committee members. Besides, there is also difference of opinion
regarding the number of members. Authorities suggest 5 to 20 members. All these factors make the installation of a
job evaluation programme more costly.
• 4. Selection of a Suitable Method
• The selection of a suitable method also posses a serious problem to the management. There are four methods and
each method has its own merits and demerits.
• 5. Number of Factors
• There is no clear-cut opinion amongst the scholars as to how many factors should be used and what weightage
should be assigned to each factor. In many cases, 100 factors are used. This multiplicity of factors creates confusion
and so precise results cannot be obtained.
• 6. Equal Pay for Equal Job
• This system presumes that job of equal content will be equally attractive to the employees. But this presumption is
unreal. For instance, a job offers little or no prospects for a rise or promotion; while another job rated similar to it,
has better prospects for the workers; the latter will attract more than the former. Under such circumstances, the
business firm has to pay more wages for the former job so as to make it more attractive.
• 7. Unsuitable for Small Concerns
• Installing and operating a job evaluation programme requires much time and money. Hence, it is very difficult to
introduce it in smaller concerns.
• Human Resource Planning -
• Human Resource Planning is a process of forecasting and strategizing to meet the organization’s demand
and supply of manpower needs in the present and future. It is a process to ensure that you have the right
people with the right skillset in your team thereby building a strong workforce capability in your
organization.
• No business strategy can succeed without an abled workforce that innovates and competes to grow your
organization. Human resource Planning helps to take care of any critical shortages in manpower hence
mitigating business risks.
• 1. Building Resilience To The Dynamic Economic Environment
• Our world is going through metamorphic changes in technology. Globalization and cultural shifts are a
reality. Consequently, product shelf life is shortening and the skill gaps are rising high. Not just the physical
or financial capital, human capital needs to adapt to this new reality.
• 2. Improving Operations In Your Human Resource Planning Process
• Workforce analysis and human resource planning process helps to streamline various business functions as
you can plan the right deployment of the workforce according to need. You know well in advance potential
shortages in any discipline of business and are prepared to take care of it.
• 3. Adapt To Technology Changes
• Millennial is a huge 50 percent of the workforce distribution and the future belongs to a technologically
advanced human resource team that can learn and adapts to meet the expectations of these millennials.
Data-driven analysis has become imperative for future-ready businesses.
• 4. Enable Growth Phase For Small And Mid-Size Businesses
• Small businesses’ growth is often sudden and dynamic. They get impacted by the external environment
the most.HR planning for small businesses is not just an additional adjustment but an integral part of the
overall growth strategy. Often small businesses need to plan when to outsource, how many people to
recruit, what are the compensation benefits on offer etc.
• 5. Anticipating Changes In the Labour Market
• As per Deloitte’s 2017 report on Global Human capital trends , the digital age is changing the skill
requirements constantly. Acquiring the right talent has become quite a challenge and pose a growth risk for
many companies.
• Human resources works with the management across functions to understand their needs. It’s a critical role for the smooth
functioning of all departments. Here are some internal factors affecting human resource planning:
• 1. Recruitment Needs
• The Key Internal Factors Affecting Human Resource Planning Are The Recruitment Needs Of Various Departments. One Of The
Factors Affecting HRP Is The Need To Fill Vacant Positions. Recruitment Is A Process That Identifies And Invites Applicants To Apply
For Vacant Positions.
• 2. Budget
• Effective HRP Requires Resources, Money And Time And Many Other Resources For Functioning. Besides This, All Pay Packages For
Hires Must Also Fit Into The Available Resources. Increments Are Also Affected By Budgetary Constraints.
• 3. Training Needs
• HR’s Role Doesn’t End With Recruitment. One Of The Significant Internal Factors Affecting Human Resource Planning Is Whether The
Staff Needs Upskilling Or Reskilling.
• It’s not enough to hire someone who has adequate skills to do their job well. Managers also ensure employees receive adequate on-
the-job training.
• 4. Work Environment
• A Pleasant Work Environment Is Another Factor For HR Managers To Consider. Employees Want To Be Part Of A Team That’s
Committed To A Common Goal And Where They Enjoy The Respect Of Co-Workers And Management. If An Employee Isn’t Happy,
They May Leave To Work Elsewhere.
• 5. Retrenchment
• From Time To Time, Organizations Will Need To Let People Go. These May Be Underperformers, Or
Perhaps They’re Employees Who’d Been Hired For A Specific Project Or Location That’s Shutting Down. It
Falls To HR To See Them Through This Difficult Time.
• These are the main internal factors affecting human resource planning. But the job of an HR manager
doesn’t end there. Let’s consider the other factors at play.
• External Factors Affecting HRP -
• Aside from the intra-organizational needs, there are external factors affecting human resource planning.
Here are a few to consider:
• 1. Competitive Conditions
• HR Managers Seek To Maintain Low Costs, One Of The Most Common Factors Affecting Human Resource
Planning. When There Are Many Recruiters Vying For The Same Talent, It Can Drive Up Costs.
• 2. Regulatory Shifts
• Whether It’s Ensuring Safety Or Labor Laws, Regulatory Shifts Impact HR Practice. Organizations Have To
Provide Safe Working Conditions And Appropriate Training For Their Employees, Minimizing The Risk Of
Accidents. These Factors Affecting Human Resource Planning Can Improve Working Conditions.
• 3. Advancing Technology
• The HR Manager Must Know Recent Developments In Technology And Trends Which Impact The Planning
Process. In Many Organizations, New Information Technologies Are Being Introduced That Have A
Significant Impact On Functioning. The HR Department Needs To Be Two Steps Ahead. Working With The
Relevant Departments To Recruit Talent To Grow With The Organization And Offer Skills That’ll Be In
Demand For Future Projects Is Critical.
Limitations / Barriers of HRP –
•
Limitations of Human Resource Planning -
1 . The future is uncertain. There are several external factors viz. Technological, political, cultural, etc. that
affects the employment opportunities. Therefore, the management can consider the human resource
planning as a guiding factor and can not rely completely on it.
• 2. With the surplus manpower, the companies try to remove this imbalance using termination, layoff,
removal of the existing employees. This could create a sense of insecurity among them, and that would
result in the loss of their faith in the company.
• 3. The human resource planning is time-consuming since it collects the complete information regarding
the personnel requirements of each department and then finds the suitable sources to satisfy the needs.
• 4. The human resource planning is an expensive process. All the activities carried out from the time the
manpower need arises till the final placement of employees, consumes lot of time and is very expensive
• 5. Expense. It costs money to train and invest in your staff. Whether you're paying for dedicated training or
diverting employee hours from tasks that are more likely to directly increase your incoming revenue,
human resource planning may likely decrease your bottom line in the short term before it increases your
profits in the long term.
• 6. Unpredictability. Although human resource planning has the potential to give your business a greater
degree of stability by building the skills of your workforce, there is no guarantee that the workers you train
will stay with your company long enough for you to reap the benefits of your investment.
• 7. Illusion of certainty. While human resource planning can make your workforce better able to do their
jobs, you may be training personnel to perform functions that become obsolete as your company and your
industry evolve. This can give you a false sense of security and may prevent you from reacting quickly
enough to developments.