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CHAPTER 4

JOB ANALYSIS, STRATEGIC PLANNING, AND HUMAN RESOURCE PLANNING

CHAPTER DESCRIPTION

This chapter begins by describing strategic talent management systems. Next, the reason why job
analysis is a basic human resource management tool is shown and the reasons for conducting job
analysis are explained. Then, the types of job analysis information required are reviewed and job
analysis methods are discussed. Conducting job analysis is then presented, and the components
of a job description are explained. O*NET as the Occupational Information Network, Standard
Occupational Classification (SOC), and job sculpting are then explained. The timeliness of job
analysis, job analysis for team members, and the way job analysis helps to satisfy various legal
requirements are then discussed. Next, the need for the human resource manager to be a strategic
partner is described. Then, the strategic planning process and the human resource planning
process are explained. Next, forecasting of human resource requirements and availability is
shown followed by how HR databases can assist matching internal employees to positions. Then,
actions that can be taken, should either a shortage or a surplus of workers exist, are presented
including a discussion of alternatives to layoffs. Succession planning and disaster planning are
then described. Sections devoted to manager and employee self-service and some job design
concepts are then described. The chapter concludes with a global perspective entitled Global
Job Rotation as a Unique Fast Track Benefit.

KEY TERMS

Talent management: strategic endeavor to optimize the use of human capital, which enables an
organization to drive short- and long-term results by building culture, engagement, capability,
and capacity through integrated talent acquisition, development, and deployment processes that
are aligned to business goals.
Job analysis: Systematic process of determining the skills, duties, and knowledge required for
performing specific jobs in an organization.
Job: Group of tasks that must be performed if an organization is to achieve its goals.
Position: Collection of tasks and responsibilities performed by one person.
Job description: Document that provides information regarding the essential tasks, duties, and
responsibilities of a job.
Job specification: Document that outlines the minimum acceptable qualifications a person
should possess to perform a particular job.
Strategic planning: Process by which top management determines overall organizational
purposes and objectives and how they are to be achieved.
Mission: Units continuing purpose, or reason for being.
Human resource planning: Systematic process of matching the internal and external supply of
people with job openings anticipated in the organization over a specified period of time.
Requirements forecast: Determining the number, skill, and location of employees the
organization will need at future dates in order to meet its goals.
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Availability forecast: Determination of whether the firm will be able to secure employees with
the necessary skills, and from what sources.
Zero-base forecasting: Forecasting method that uses the organizations current level of
employment as the starting point for determining future staffing needs.
Bottom-up forecast: Forecasting method in which each successive level in the organization,
starting with the lowest, forecasts its requirements, ultimately providing an aggregate forecast of
employees needed.
Simulation: Forecasting technique for experimenting with a real-world situation through a
mathematical model.
Succession planning: Process of ensuring that qualified persons are available to assume key
managerial positions once the positions are vacant.
Manager self-service (MSS): Use of software and the corporate network to automate paper-
based human resource processes that require a managers approval, record-keeping or input, and
processes that support the managers job.
Employee self-service (ESS): Processes that automate transactions that previously were labor-
intensive for both employees and HR professionals.
Job design: Process of determining the specific tasks to be performed, the methods used in
performing these tasks, and how the job relates to other work in an organization.
Job enrichment: Changes in the content and level of responsibility of a job so as to provide
greater challenges to the worker.
Job enlargement: Increasing the number of tasks a worker performs, with all of the tasks at the
same level of responsibility.
Reengineering: Fundamental rethinking and radical redesign of business processes to achieve
dramatic improvements in critical, contemporary measures of performance such as cost, quality,
service, and speed.

LECTURE OUTLINE

STRATEGIC TALENT MANAGEMENT SYSTEMS
Talent management is a strategic endeavor to optimize the use of human capital, which enables
an organization to drive short- and long-term results by building culture, engagement, capability,
and capacity through integrated talent acquisition, development, and deployment processes that
are aligned to business goals. It integrates compensation, recruiting, performance management,
learning management, career development, and succession planning.

JOB ANALYSIS: A BASIC HUMAN RESOURCE TOOL

JOBGroup of tasks that must be performed for an organization to achieve its goals.

POSITIONCollection of tasks and responsibilities performed by one person.

JOB ANALYSISSystematic process of determining the skills, duties, and knowledge
required for performing specific jobs in an organization..


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JOB DESCRIPTIONDocument that provides information regarding the essential
tasks, duties, and responsibilities of a job.

JOB SPECIFICATIONDocument that outlines the minimum acceptable
qualifications a person should possess to perform a particular job.

REASONS FOR CONDUCTING JOB ANALYSIS
A sound job analysis system is extremely critical and is needed for numerous reasons.

STAFFINGAll areas of staffing would be haphazard if the recruiter did not know the
qualifications needed to perform the job.

TRAINING AND DEVELOPMENTIf the specification suggests that the job requires
a particular knowledge, skill, or ability, and the person filling the position does not
possess all the qualifications required, training and/or development is probably in order.

PERFORMANCE APPRAISALMost workers want to know precisely what they are
supposed to accomplish and good job descriptions provide them that tool. Then,
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

COMPENSATIONRelative value of a particular job to the company must be known
before a dollar value can be placed on it. From an internal perspective the more
significant its duties and responsibilities, the more the job is worth.

SAFETY AND HEALTHInformation derived from job analysis is also valuable in
identifying safety and health considerations.

EMPLOYEE AND LABOR RELATIONSRegardless of whether the firm is
unionized, information obtained through job analysis can often lead to more objective
human resource decisions.

LEGAL CONSIDERATIONSHaving properly accomplished a job analysis is
particularly important for supporting the legality of employment practices.

TYPES OF JOB ANALYSIS INFORMATION
Considerable information is needed if job analysis is to be accomplished successfully. The job
analyst identifies the jobs actual duties and responsibilities and gathers the other types of data
such as work activities, worker-oriented activities, machines, tools equipment, and work aids
used, and personal requirements. Essential functions of the job are determined in this process.

JOB ANALYSIS METHODS
Job analysis traditionally has been conducted in a number of different ways.

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QUESTIONNAIRESJob analyst administers a structured questionnaire to employees
who identify the tasks they perform in accomplishing the job.

OBSERVATIONJob analyst usually inspects the work being performed and records
his or her observations.

INTERVIEWSJob analyst interviews both the employee and the supervisor.

EMPLOYEE RECORDINGGathered by having the employees describe their daily
work activities in a diary or log.

COMBINATION OF METHODSLikely, no one job analysis method will be used
exclusively. A combination is often more appropriate.

CONDUCTING JOB ANALYSIS
People who participate in job analysis should include, at a minimum, the employee and the
employees immediate supervisor.

JOB DESCRIPTION
Document that provides information regarding the essential tasks, duties, and responsibilities of
a job.

JOB IDENTIFICATIONIncludes the job title, department, reporting relationship,
and a job number or code.

DATE OF THE JOB ANALYSISJob analysis date is placed on the job description to
aid in identifying job changes that would make the description obsolete.

JOB SUMMARYProvides a concise overview of the job.

DUTIES PERFORMEDBody of the job description delineates the major duties to be
performed.

JOB SPECIFICATIONDocument that outlines the minimum acceptable
qualifications a person should possess to perform a particular job.

O*NET, THE OCCUPATIONAL INFORMATION NETWORK
Comprehensive, government-developed database of worker attributes and job characteristics. It
is the nations primary source of occupational information.

STANDARD OCCUPATIONAL CLASSIFICATION (SOC)
Recently, the federal government released updated job descriptions for all U.S. workers in more
than 800 occupations. The update is done once each decade of the standard occupational
classification system, which defines an occupation by the work, duties, skills, education, or
experience it entails.
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JOB SCULPTING
Involves modifying the typical job descriptions to take advantage of the talents, interests, and
experiences of each employee.

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

JOB ANALYSIS FOR TEAM MEMBERS
In many firms today, people are being hired as team members. Whenever someone asks a team
member, What is your job description? the reply might well be Whatever. What this means
is that if a project has to be completed, individuals do what has to be done to complete the task.

JOB ANALYSIS AND THE LAW
Legislation requiring thorough job analysis includes the following acts.

FAIR LABOR STANDARDS ACTEmployees are categorized as exempt or
nonexempt, and job analysis is basic to this determination.

EQUAL PAY ACTIf jobs are not substantially different, similar pay must be
provided. When pay differences exist, job descriptions can be used to show whether jobs
are substantially equal in terms of skill, effort, responsibility, or working conditions.

CIVIL RIGHTS ACTJob descriptions may provide the basis for adequate defenses
against unfair discrimination charges in initial selection, promotion, and all other areas of
human resource administration.

OCCUPATIONAL SAFETY AND HEALTH ACTJob descriptions are required to
specify elements of the job that endanger health or are considered unsatisfactory or
distasteful by the majority of the population.

AMERICANS WITH DISABILITIES ACTEmployers are required to make
reasonable accommodations for workers with disabilities.

HR AS A STRATEGIC BUSINESS PARTNER
HR professions are increasingly been expected to take on the role of being a strategic partner. No
longer is an administrative and compliance role acceptable as their primary jobs. HR executives
must work with top management in achieving concrete plans and results if HR is to become a
strategic partner.

STRATEGIC PLANNING PROCESS
Process by which top management determines overall organizational purposes and objectives
and how they are to be achieved.

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MISSION DETERMINATIONUnits continuing purpose, or reason for being.

ENVIRONMENTAL ASSESSMENTOrganization must be assessed for strengths and
weaknesses, and the threats and opportunities (often referred as a SWOT analysis) in the
external environment must be evaluated.

OBJECTIVE SETTINGDesired end results of any activity.

STRATEGY SETTINGStrategies should be developed to take advantage of the
companys strengths and minimize its weaknesses in order to grasp opportunities and avoid
threats.

STRATEGY IMPLEMENTATIONStrategy implementation requires changes in the
organizations behavior, which can be brought about by changing one or more organizational
dimensions, including managements leadership ability, organizational structure, information
and control systems, production technology, and human resources.

HUMAN RESOURCE PLANNING (WORKFORCE PLANNING)
Systematic process of matching the internal and external supply of people with job openings
anticipated in the organization over a specified period of time.

HUMAN RESOURCE PLANNING PROCESS

STRATEGIC PLANNING

HUMAN RESOURCE PLANNING

FORECAST HUMAN RESOURCE REQUIREMENTS

FORECAST HUMAN RESOURCE AVAILABILITY

COMPARE REQUIREMENTS AND AVAILABILITY

DEMAND = SUPPLYNO ACTION

SURPLUS OF WORKERSRESTRICTED HIRING, REDUCED HOURS,
EARLY RETIREMENT, LAYOFFS, DOWNSIZING

SHORTAGE OF WORKERSEXTERNAL RECRUITMENT AND SELECTION

FORECASTING HUMAN RESOURCE REQUIREMENTS
Determining the number, skill, and location of employees the organization will need at future
dates in order to meet its goals.

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ZERO-BASE FORECASTINGForecasting method that uses the organizations
current level of employment as the starting point for determining future staffing needs.

BOTTOM-UP FORECASTForecasting method in which each successive level in the
organization, starting with the lowest, forecasts its requirements, ultimately providing an
aggregate forecast of employees needed.

RELATIONSHIP BETWEEN VOLUME OF SALES AND NUMBER OF
WORKERS REQUIREDOne of the most useful predictors of employment levels is
sales volume. The relationship between demand and the number of employees needed is
a positive one.

WORKFORCE PLANNING SOFTWAREWorkforce planning software refers to
applications that allow companies to forecast the number and kind of employees they will
need at some point in the future. Workforce planning software tends to fall into two
categories. The first is short-term or operational workforce planning, meaning preparing
for changes within months. Longer-term, strategic workforce planning software providers
design products help envision the workforce as far out as three to five years.

FORECASTING HUMAN RESOURCE AVAILABILITY
Determination of whether the firm will be able to secure employees with the necessary skills,
and from what sources.

HUMAN RESOURCE DATABASES
Databases are being used by organizations that take human resources seriously in matching
people with positions. Also, succession planning helps to ensure an internal supply of highly
qualified management personnel.

SHORTAGE OF WORKERS FORECASTED
There are several actions that companies can take.

INNOVATIVE RECRUITINGNew approaches to recruiting must be used.

COMPENSATION INCENTIVESFirms competing for workers in a high-demand
situation may have to rely on compensation incentives. Premium pay is one obvious
method.

TRAINING PROGRAMSSpecial training programs may be needed to prepare
previously unemployable individuals for positions with a firm. Remedial education and
skills training are two types of programs that may help attract individuals to a particular
company.

DIFFERENT SELECTION STANDARDSSelection criteria that screen out certain
workers may have to be altered to ensure that enough people are available to fill jobs.
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SURPLUS OF EMPLOYEES FORECASTED
When a comparison of requirements and availability indicates that a worker surplus will result,
most companies look to layoff alternatives but downsizing may ultimately be required.

LAYOFF ALTERNATIVES
One of the first alternatives to layoffs is to implement a restricted hiring policy which reduces
the workforce by not replacing employees who leave. Early retirement of some present
employees is another way to reduce the number of workers. A tactic that is popular in the
construction market is swapping employees. Another means to layoffs included permitting a
employee to go from full-time to 30 hours a week without losing health benefits. Other
companies are reducing the workweek from five days to four thereby having a 20 percent
reduction in wages. Another option is to ask your employees to take sabbaticals.

SUCCESSION PLANNING: A COMPONENT OF STRATEGIC PLANNING
Process of ensuring that qualified persons are available to assume key managerial positions once
the positions are vacant.

DISASTER PLANNING: A COMPONENT OF STRATEGIC PLANNING
Disaster plans should focus on possible catastrophes that range from natural calamities such as
hurricanes, earthquakes, and floods to human-made crises such as 9/11. Certainly the 2010 oil
spill disaster on the Gulf coast caused companies to review and update their disaster plan.

MANAGER SELF-SERVICE
Use of software and the corporate network to automate paper-based human resource processes
that require a managers approval, record-keeping or input, and processes that support the
managers job.

EMPLOYEE SELF-SERVICE
Processes that automate transactions that used to be labor-intensive for both employees and HR
professionals.

JOB DESIGN CONCEPTS
Process of determining the specific tasks to be performed, the methods used in performing these
tasks, and how the job relates to other work in the organization.

JOB ENRICHMENTBasic changes in the content and level of responsibility of a job
so as to provide greater challenges to the worker.

JOB ENLARGEMENTIncreasing the number of tasks a worker performs, with all of
the tasks at the same level of responsibility.

JOB ROTATIONMoves employees from one job to another to broaden their
experience.