Fundamentals of

Human Resource
Management

Chapter 3:
Human Resource Planning
and Job Analysis
 Planning is

knowing

where you are going and

how to get there.

 Strategic Planning
 The strategic planning process in an organization is long and continuous.
 The main emphasis is to determine what business it is in. This is referred to as the
mission statement: a brief description of the reason an organization is in
business.
 Managers, then, need to define the organizations strategic goals: the objectives for
the company for the next 5 to 20 years. Objectives are the broad statements that
establish the targets the organization will achieve.
 Then starts the corporate assessment. A company begins to analyze its goals, its
current strategies, its external environment, its strengths and weakness, and its
opportunities and threats, in terms of whether they can be achieved with current
organizational resources. This is referred to as gap or SWOT analysis.
 SWOT leads to a clear assessment of the organization’s internal resources and indicates
organizational departmental abilities.
 Strengths: An organization’s best attributes and abilities.
 Core Competency: Organizational strengths that represent unique skills or resources.
 Weaknesses: Resources an organization lacks or activities it does poorly.
 The company needs to determine what jobs need to be done and how many and what type of
workers will be required. This is called organizing. Thus, establishing the structure of the
organization assists in determining the skills, knowledge, and abilities required for
jobholders. (It is where HR management plays an integral role)
 To determine what skills are needed, HRM conducts a job analysis.
Strategic Planning (Cont’d)
Mission

Objectives and Goals

Strategy

Structure

People
 Human Resource Planning
 Human resource planning is the process of determining an
organization’s human resource needs.

 It is the process by which an organization ensures that it has

the right number and kinds of people, at the right place, at the
right time, capable of effectively and efficiently completing
those tasks that will help the organization achieve its overall
strategic objectives.

 Employment planning, then, ultimately translates the

organization’s overall goals into number and types of
workers needed to meet those goals.

 Employment planning needs to be linked to the organization's

overall strategy, otherwise, it becomes a mere guesswork.
 The Purpose of HR Planning
 The purpose of the human resource planning
is to determine what HRM requirements exist
for current and future supplies of and
demands of workers.
 Assessing Current Human Resources
 Develop a profile of the organization’s current employees. This includes
information about the workers and the skills they currently posses.

 Develop a human resources inventory report, derived and completed

from supervisors and employees. It would include a complete list of all
employees by name, education, training, prior employment, current
position, performance ratings, salary level, languages spoken,
capabilities, and specialized skills.

 Its benefits are:

A. This allows in determining what skills are currently available in the organization.
B. It serves as a guide for supporting new organizational pursuits or in altering the
organization’s strategic direction.
C. It has a value for other HRM activities.
D. It provides crucial information for identifying current or future threats to the
organization ability to successfully meets its goals.
Human Resource Information Systems
 Human resource information system (HRIS) is a
computerized system that assists in the processing of
HRM information.

 It is a database system keeping important

information about employees in a central and
accessible location.
 Succession Planning
 Replacement chart: HRM organizational charts indicating positions that may
become vacant in the near future and the individuals who may fill the vacancies.

 It covers individuals in the middle to upper-level management positions.

 Against this list of positions is placed the individual managers’ skills inventory to
determine if there is sufficient managerial talent to cover potential future
vacancies.

 This chart gives management an indication of time frames for succession, as well
as, helping to stop any skill shortages.

 Replacement charts look similar to traditional organizational charts. With

incumbents listed in their positions, those individuals targeted for replacement are
listed beneath with the expected time in which they will be prepared to take on the
needed responsibility.

 Review figure 5-3 page 127.

 HR Planning Process
1. Determining the demand for labor.
 It is concerned with developing a projection of future human resource needs.
 It is performing a year-by-year analysis for every significant job level and type.
 Accurate estimates of future demands is in both quantitative and qualitative terms.
2. Predicting future labor supply.
 It requires estimating changes in internal and external labor supply.
 Labor supply can come from four sources: new hires, contingent workers, transfers-in,
or individuals returning from leaves.
 Decreases internal supply can come about through retirements, dismissals, transfers-
out of the unit, layoffs, voluntary quits, sabbaticals, prolonged illnesses, or deaths.
 The labor market must be thoroughly studied.
3. Matching labor demand and supply.
 The objective of employment planning is to bring together the forecasts of future
demand of workers and the supply for human resources, both current and future.
 The result of this effort is to pinpoint shortages or overstaffing; and to keep abreast of
the opportunities existing in the labor market to hire qualified employees – either to
satisfy current needs or to stockpile potential candidates for the future.
 In case of shortage, the organization must hire or contract with additional staff or transfer
staff within the organization.
 In case of surplus (oversupply), the organization is engaged in derecruiting.
 Job Analysis
 Job analysis is a systematic exploration of
the activities within a job. It is a technical
procedure used to define job duties,
responsibilities and accountabilities.

 It provides information about jobs currently

being done and the knowledge, skills, and
abilities that individuals need to perform the
jobs adequately.
 Job Analysis Methods
1. Observation method.

2. Individual interview method.

3. Group interview method.

4. Structured questionnaire method.

5. Technical conference method.

6. Diary method.

 These methods are not mutually exclusive; they can be combined.

 A problem is that individuals may describe what they should do not
what they actually do.
 The steps in Job Analysis
1. Understand the purpose of the job analysis.

2. Understand the roles of jobs in the organization.

3. Benchmark positions.

4. Determine how to collect job analysis information.

5. Seek clarification.

6. Develop draft.

7. Review the draft with the supervisor.

 Structured Job Analysis Techniques
1. The department of labor job analysis process.
 It describes what a worker does by having someone observe and
interview the employee.
 This information is standardized and cataloged into three general
functions: data, people, and things.
 A job gets a code based on these three elements.
 Review exhibit 5-6 page 132.

2. The position analysis questionnaire (PAQ).

 It is a job analysis technique that rates jobs on elements of six
activity categories ((1) information input, (2) mental process, (3)
work output, (4) relations with people, (5) job context, and (6) other
job characteristics).
 It involves 194 elements that are grouped into six major divisions
and 28 sections.
 It is more applicable to higher-level, professional jobs.
 Outcomes of Job Analysis
1. Job descriptions
 A job description is a written statement of what the jobholder does, how it
is done, under what conditions and why. In other words, it portrays job
content, environment, and conditions of employment.
 A common format of a job description includes the job title, the duties to be
performed, the distinguishing characteristics of the job, environmental
conditions, and the authority and responsibilities of the jobholder.
 Review exhibit 5-10 page 135.

2. Job specifications
 A job specification is statements indicating the minimal acceptable
qualifications incumbents must possess to successfully perform the essential
elements of their jobs.
 It identifies pertinent knowledge, skills, education, experience, certification,
and abilities.

3. Job evaluations
 A job evaluation specifies the relative value of each job in the organization.
 The Multifaceted Nature
of the Job Analysis
Job analysis is the starting point of sound HRM.

Labor relations Recruiting

Selection

Job analysis
Safety and health Human resource
Job description planning

Compensation Job specification

Employee training

Performance Career Employee

management management development
 Job-morphing
 Job-morphing is readjusting skills to match
job requirements.