Chapter 4 Strategic Planning, Human Resource Planning, and Job Analysis PDF

Chapter 4 Strategic Planning, Human Resource Planning, and Job Analysis Copyright © 2016 Pearson Education, Inc. 4-1  Learning Objectives 1. Describe the strategic planning process. 2. Explain th...

Chapter 4 Strategic Planning, Human Resource Planning, and Job Analysis Copyright © 2016 Pearson Education, Inc. 4-1  Learning Objectives 1. Describe the strategic planning process. 2. Explain the human resource planning process. 3. Describe forecasting requirements. 4. Summarize forecasting human resource availability. 5. Explain what a firm can do when either a shortage or surplus of workers exists. 6. Describe strategic succession planning in today’s environment. 7. Describe the types of information required for job analysis and the reasons for conducting it. Copyright © 2016 Pearson Education, Inc. 4-2  Learning Objectives (Cont.) 8. Summarize the types of job analysis information. 9. Explain the various job analysis methods. 10. Describe the components of a job description. 11. Explain the Standard Occupational Classification (SOC) and the Occupational Information Network (O*NET). 12. Summarize job analysis for team members. 13. Explain how job analysis helps satisfy various legal requirements. Copyright © 2016 Pearson Education, Inc. 4-3  Learning Objectives (Cont.) 14. Describe what competencies and competency modeling are. 15. Summarize job design concepts. 16. Describe the importance of global talent management. Copyright © 2016 Pearson Education, Inc. 4-4 LO 1 Strategic Planning Four steps: Determination of the organizational mission Assessment of the organization and its environment Setting of specific objectives or direction Determination of strategies to accomplish those objectives Copyright © 2016 Pearson Education, Inc. 4-5 LO 1 Strategic Planning/Implementation Process MISSION DETERMINATION Decide what is to be accomplished (purpose) Determine principles that will guide the effort ENVIRONMENTAL ASSESSMENT External: Determining external conditions, threats, and opportunities Internal: Determining competencies, strengths, and weaknesses within the organization. OBJECTIVE SETTING Specifying corporate-level objectives that are: Challenging but attainable Time-specific Measurable Documented (written) STRATEGY SETTING Specifying and documenting corporate-level strategies and planning STRATEGY IMPLEMENTATION Copyright © 2016 Pearson Education, Inc. 4-6 LO 1 Mission Determination The mission is a unit’s continuing purpose or reason for being The corporate mission is the sum total of the organization’s ongoing purpose Arriving at a mission statement should involve answering questions such as: What are we in management attempting to do for whom? Should we maximize profit so shareholders will receive higher dividends or so share price will increase? Copyright © 2016 Pearson Education, Inc. 4-7 LO 1 Environmental Analysis Environmental analysis entails an assessment of strengths and weaknesses in the internal environment and the threats and opportunities from the external environment Environmental analysis is often considered to be a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) Copyright © 2016 Pearson Education, Inc. 4-8 LO 1 Objective Setting Objectives are the desired end results of any activity Objectives should have four basic characteristics: They should be expressed in writing They should be measurable They should be specific as to time They should be challenging but attainable Copyright © 2016 Pearson Education, Inc. 4-9 LO 1 Strategy Setting First of two strategic options: Lowest-cost strategy focuses on gaining competitive advantage by being the lowest- cost producer of a product or service within the marketplace Lowest-cost strategies require aggressive construction of efficient-scale facilities and vigorous pursuit of cost minimization in such areas as operations, marketing, and HR Copyright © 2016 Pearson Education, Inc. 4-10 LO 1 Strategy Setting (Cont.) Second of two strategic options: Differentiation strategies focus on developing products or services that are unique from those of their competitors Differentiation strategy can take many forms, including design or brand image, technology, features, customer service, and price Copyright © 2016 Pearson Education, Inc. 4-11 LO 1 Strategy Implementation Leadership Organizational Structure Information and Control Systems Technology Human Resources Copyright © 2016 Pearson Education, Inc. 4-12 LO 2 Human Resource Planning (Workforce Planning) Matching the internal and external supply of candidates with job openings anticipated in the organization over a specific period of time Copyright © 2016 Pearson Education, Inc. 4-13 LO 2 Human Resource Planning Process External Environment Internal Environment Strategic Planning Human Resource Planning Forecasting Forecasting Human Comparing Requirements Human Resource Resource Requirements and Availability Availability Demand = Surplus of Shortage of Supply Workers Workers No Action Restricted Hiring, Recruitment Reduced Hours, Early Retirement, Layoffs, Selection Downsizing Copyright © 2016 Pearson Education, Inc. 4-14 LO 3 Requirements Forecast Determining: Number Skills Location of employees that the organization will need at future dates in order to meet goals Copyright © 2016 Pearson Education, Inc. 4-15 LO 3 Techniques for Forecasting Human Resource Requirements Zero-base forecast Bottom-up forecast Relationship between volume of sales and number of workers required Copyright © 2016 Pearson Education, Inc. 4-16 LO 3 Zero-Base Forecast Uses current level of staffing as starting point for determining future staffing needs Essentially the same procedure as zero- base budgeting Key is a thorough analysis of human resource needs Copyright © 2016 Pearson Education, Inc. 4-17 LO 3 Bottom-Up Forecast Each level of organization, starting with lowest, forecasts its requirements to provide aggregate of employment needs Copyright © 2016 Pearson Education, Inc. 4-18 LO 4 The Relationship of Sales Volume to Number of Employees Number of Employees 500 400 300 200 100 0 10 20 30 40 50 60 Sales (thousands) Copyright © 2016 Pearson Education, Inc. 4-19 LO 4 Availability Forecast Determination of: Whether firm will be able to secure employees with necessary skills Sources from which to obtain employees Copyright © 2016 Pearson Education, Inc. 4-20 LO 5 Shortage of Workers Forecasted Innovative recruiting Compensation incentives Training programs Modified selection standards Copyright © 2016 Pearson Education, Inc. 4-21 LO 5 Surplus of Employees When a comparison of requirements and availability indicates a worker surplus will result, most companies look to alternatives to layoffs, but downsizing may ultimately be required Copyright © 2016 Pearson Education, Inc. 4-22 LO 5 Job Openings, 2012-2022 (in ‘000s) Copyright © 2016 Pearson Education, Inc. 4-23 LO 5 Alternatives to Layoffs Although layoffs can be a necessary cost- cutting measure, alternatives include: Restricted hiring policy Early retirement Encouraging workers to use vacation time Swapping employees Moving employees from full-time to 30 hours a week without reducing health benefits Copyright © 2016 Pearson Education, Inc. 4-24 LO 5 Alternatives to Layoffs (Cont.) Job-sharing arrangements Reduce the workweek Offer an unpaid holiday option Sabbaticals for selected employees Copyright © 2016 Pearson Education, Inc. 4-25 LO 6 Succession Planning Process of ensuring that qualified persons are available to assume key managerial positions once the positions are vacant Goal is to help ensure a smooth transition and operational efficiency Copyright © 2016 Pearson Education, Inc. 4-26 LO 6 Small Business Succession Planning Just as, or more, important for small businesses Company could face economic and tax disasters Just 10% survive to the third generation Disaster stories are readily available Copyright © 2016 Pearson Education, Inc. 4-27 LO 7 Job Analysis Job analysis is the systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization. Copyright © 2016 Pearson Education, Inc. 4-28 LO 7 When Job Analysis Is Performed When the organization is founded and a job analysis program is initiated When new jobs are created When existing jobs are changed significantly Copyright © 2016 Pearson Education, Inc. 4-29 LO 7 Job Analysis Should Answer What physical and mental tasks does the worker accomplish? When is the job to be completed? Where is the job to be accomplished? How does the worker do the job? Why is the job done? What qualifications are needed to perform the job? Copyright © 2016 Pearson Education, Inc. 4-30 LO 7 Job Consists of group of tasks that must be performed for organization to achieve its goals May require the services of one person, such as the company’s president May require the services of 75 people, such as machine operators in a large firm Copyright © 2016 Pearson Education, Inc. 4-31 LO 7 Position Collection of tasks and responsibilities performed by one person There is a position for every individual in an organization Copyright © 2016 Pearson Education, Inc. 4-32 LO 7 Job Description/Job Specification Job Description: Provides information regarding the essential tasks, duties, and responsibilities of the job Job Specification: Minimum acceptable qualifications a person needs to perform a particular job Copyright © 2016 Pearson Education, Inc. 4-33 LO 7 Reasons for Conducting Job Analysis Job analysis has an impact on every aspect of HR practice: Staffing Training and Development Performance Appraisal Compensation Safety and Health Employee and Labor Relations Legal considerations Copyright © 2016 Pearson Education, Inc. 4-34 LO 7 Job Analysis: A Basic Human Resource Management Tool ▪ Staffing Tasks Responsibilities Duties ▪ Training and Development ▪ Performance Appraisal ▪ Compensation Job Descriptions ▪ Safety and Health Job ▪ Employee and Labor Analysis Job Relations Specifications ▪ Legal Considerations Knowledge Skills Abilities Copyright © 2016 Pearson Education, Inc. 4-35 LO 8 Job Analysis Information Job’s actual duties and responsibilities Worker-oriented activities: Machines, tools, and equipment Personal requirements (e.g., experience) Job standards Work schedule Financial and nonfinancial compensation Working conditions Copyright © 2016 Pearson Education, Inc. 4-36 LO 9 Job Analysis Methods Questionnaires Observation Interviews Employee recording Combination of methods Copyright © 2016 Pearson Education, Inc. 4-37 LO 9 Questionnaires Structured questionnaires given to employees Typically quick and economical Potential problems: Employees might lack verbal skills Employees might exaggerate the significance of their tasks Copyright © 2016 Pearson Education, Inc. 4-38 LO 9 Observation Analyst watches worker perform job tasks and records observations Used primarily to gather information emphasizing manual skills Often insufficient when used alone Difficult when mental skills are dominant in a job Copyright © 2016 Pearson Education, Inc. 4-39 LO 9 Interviews Interview both employee and supervisor Interview employee first, helping him or her describe duties performed After interviews, analyst normally contacts supervisor for additional information Copyright © 2016 Pearson Education, Inc. 4-40 LO 9 Employee Recording Employees describe daily work activities in diary or log Valuable in understanding highly specialized jobs Problem: Employees might exaggerate job importance Copyright © 2016 Pearson Education, Inc. 4-41 LO 9 Combination of Methods Analysts usually use more than one method Clerical and administrative jobs (example): Questionnaires supported by interviews and limited observation Production jobs: Interviews supplemented by extensive work observation Copyright © 2016 Pearson Education, Inc. 4-42 LO 9 Conducting Job Analysis People who participate in job analysis should include, at a minimum: Employee Employee’s immediate supervisor Copyright © 2016 Pearson Education, Inc. 4-43 LO 10 Job Description Document that states: Tasks Duties Responsibilities Needs to be relevant and accurate Copyright © 2016 Pearson Education, Inc. 4-44 LO 10 Items Frequently Included in a Job Description Major duties performed Percentage of time devoted to each duty Performance standards to be achieved Working conditions and possible hazards Number of employees performing job The person to whom the employee reports The machines and equipment used for job Copyright © 2016 Pearson Education, Inc. 4-45 LO 10 Proper Language in the Job Description Keep each statement crisp and clear Structure sentences in classic verb/object and explanatory phrases Always use present tense of verbs Use explanatory phrases telling why, how, where Omit any unnecessary articles Use unbiased terminology Avoid using words that are subject to differing interpretations Copyright © 2016 Pearson Education, Inc. 4-46 LO 10 Content of a Job Description Job Identification – Job title, department, reporting relationship, and job number or code Job Analysis Date – Aids in identifying job changes that make description obsolete Job Summary – Concise overview of job Duties Performed – Major duties of job Copyright © 2016 Pearson Education, Inc. 4-47 LO 10 Job Specification Minimum qualifications worker should possess Should reflect minimum, not ideal, qualifications Often a major section of a job description Copyright © 2016 Pearson Education, Inc. 4-48 LO 10 Problems If Job Specifications Are Inflated Could systematically eliminate minorities or women from consideration Compensation costs could increase Vacancies could be more difficult to fill Copyright © 2016 Pearson Education, Inc. 4-49 LO 11 Standard Occupational Classification (SOC) Job descriptions for all U.S. workers in more than 800 occupations 2010 SOC replaces the 2000 system Copyright © 2016 Pearson Education, Inc. 4-50 LO 11 Representative SOC Description for HR Professionals 13-1071 Human Resources Specialists Perform activities in the human resource area. Includes employment specialists who screen, recruit, interview, and place workers. Excludes "Compensation, Benefits, and Job Analysis Specialists" (13-1141) and "Training and Development Specialists" (13-1151). Illustrative examples: Staffing Coordinator, Personnel Recruiter, Human Resources Generalist Copyright © 2016 Pearson Education, Inc. 4-51 LO 11 Representative SOC Description for HR Professionals (Cont.) 11-3111 Compensation and Benefits Managers Plan, direct, or coordinate compensation and benefits activities of an organization. Job analysis and position description managers are included in "Human Resource Managers" (11- 3121). Illustrative examples: Wage and Salary Administrator, Employee Benefits Director, Compensation Director Copyright © 2016 Pearson Education, Inc. 4-52 LO 11 Occupational Information Network (O*NET) Comprehensive government-developed database of: Worker attributes Job characteristics Primary source of occupational information Copyright © 2016 Pearson Education, Inc. 4-53 LO 12 Job Analysis for Team Members With team design, there are no narrow jobs Work that departments do is often bundled into teams Last duty shown on standard job description, “And any other duty that may be assigned,” is increasingly becoming THE job description Copyright © 2016 Pearson Education, Inc. 4-54 LO 13 Job Analysis and the Law Fair Labor Standards Act: Employees categorized as exempt or nonexempt Equal Pay Act: Similar pay must be provided to women if jobs, as shown in job descriptions, are not substantially different Civil Rights Act: Basis for adequate defenses against unfair discrimination Copyright © 2016 Pearson Education, Inc. 4-55 LO 13 Job Analysis and the Law (Cont.) Occupational Safety and Health Act (OSHA): Employer must specify job elements that endanger health or are considered unsatisfactory or distasteful by most people Americans with Disabilities Act (ADA)/ADA Amendments Act: Employer must make reasonable accommodations for disabled workers Copyright © 2016 Pearson Education, Inc. 4-56 LO 14 Competencies and Competency Modeling Competencies refer to an individual’s capability to orchestrate and apply combinations of knowledge, skills, and abilities consistently over time to perform work successfully in the required work situations Copyright © 2016 Pearson Education, Inc. 4-57 LO 14 Competencies and Competency Modeling (Cont.) Competency modeling specifies and defines all the competencies necessary for success in a group of jobs that are set within an industry context Copyright © 2016 Pearson Education, Inc. 4-58 LO 14 U.S. Department of Labor Competency Model Copyright © 2016 Pearson Education, Inc. 4-59 LO 15 Job Design Process of determining: Specific tasks to be performed Methods used in performing these tasks How a job relates to other work in organization Copyright © 2016 Pearson Education, Inc. 4-60 LO 15 Job Enrichment Job enrichment consists of basic changes in the content and level of responsibility of a job so as to provide greater challenges to the worker Job enrichment provides a vertical expansion of responsibilities Copyright © 2016 Pearson Education, Inc. 4-61 LO 15 Job Enlargement Changes in scope of job to provide greater variety to worker All of the tasks at the same level of responsibility Sometimes called cross-training Copyright © 2016 Pearson Education, Inc. 4-62 LO 15 Job Rotation Moving employees from one job to another to broaden their experience Often required for higher-level tasks Can be effective in protecting a company against the loss of key employees Copyright © 2016 Pearson Education, Inc. 4-63 LO 15 Reengineering Fundamental rethinking Radical redesign of business processes Aims to achieve dramatic improvements in critical measures of performance such as: Cost Quality Service Speed Copyright © 2016 Pearson Education, Inc. 4-64 LO 16 Global Talent Management Strategic endeavor to optimize use of human capital Enables an organization to drive short- and long-term results Builds culture, engagement, capability, and capacity through integrated talent acquisition, development, and deployment processes that are aligned to business goals Copyright © 2016 Pearson Education, Inc. 4-65 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2016 Pearson Education, Inc. 4-66