Chapter Two: The Acquisition of HR PDF

Chapter Two: The Acquisition of HR Dr. Mulu Aderie  The Acquisition of HR  Employment Process is concerned with the obtaining of the proper kind and number of people necessary to accomplish organizational objectives. It includes the following basic tasks:...

Chapter Two: The Acquisition of HR Dr. Mulu Aderie  The Acquisition of HR  Employment Process is concerned with the obtaining of the proper kind and number of people necessary to accomplish organizational objectives. It includes the following basic tasks: 2.1 Job Analysis 2.2 Human Resource Planning 2.3 Recruitment 2.4 Selection 2.5 Induction 2.6 Placement 2.1 Job Analysis  Job Analysis is a systematic process of studying and collecting information about the nature and characteristics of the job and the qualification of the employee that will fill the job. i.e. it is a systematic process of finding work-oriented and personal requirement of the job.  Job Analysis can be studied using the following methods: Observation [slow and less accurate], Interview [accurate, but expensive and time consuming], Questionnaire [quick and economic to use], Employee Log [appropriate for highly specialized works] and others. Steps in Job Analysis  There are six steps required to develop Job Analysis: 1. Determine the use of the Job Analysis Information 2. Collect Background information such as organizational structure, process, objective,… 3. Benchmark Positions 4. Collect job analysis information such as behavior, content, equipment, tools, standards, human requirements.. 5. Review the information with the participants.i. e check the corrective-ness of the information with workers, supervisors, and others 6. Develop Job Analysis Job Analysis  The purpose of Job Analysis is to obtain answer to the following six questions: A. What workers does= task or function B. Why is done=reason C. What aids= tools, machines, equipments,… D. What qualification=skill, capacity, experience… E. What is accomplished= output F. How is done= procedure, methods, techiniques, Job Analysis  Components of Job Analysis: 1. Job Description: it is the profile of the job. It defines what the job does. 2. Job Specification: it is the profile of the human characteristics needed by the job. A. Job Description  Job Description: is a written document that shows the nature and characteristics of the task to be performed. It is the picture of the job  It includes the following points: 1. Job Identity: title, location, grade… 2. Brief statement of the purpose of the job 3. Job Duties and Responsibilities 4. Facts about working Conditions: allowance, private office, Safety, Health, physical, environmental, hours of work 5. Machinery and equipment to be used B. Job Specification  It is a written statement of the minimum acceptable human qualities necessary to prepare a given job properly. Job Specification includes the following information: 1. Physical Qualities: appearance, age, eyesight, hearing, 2. Mental Quality: intelligent, thinking ability, ability to make sound decision, 3. Skill or Talent: communication ,technical, conceptual, human and computer skill 4. Qualification: Knowledge acquired from experience, education or training 5. Personality Requirement; emotion, stable, patient, 2.2 Human Resource Planning  Human resource (HR) planning; The process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives.  It helps organization to identify their short-term and long-term human resource requirement. Process of HRP  There are five steps [Procedures ] needed in developing HRP – Step 1: Determine the total Human Resource Planning Requirement [HRPR] – Step 2: Determine the Human Resource Inventory [HRI] – Step 3: Anticipate Change in HRI – Step 4: Determine the Net Human Resource Requirement [DNHRR] – Step 5: Action Planning Step 1: Determine the total Human Resource Planning Requirement [HRPR]  HRPR begins with the analysis of the organization’s Business Plan such as – Sales Budget – Human Resource Budget – Productivity – Materials Budget – E.t.c  HRP for a new organization may be to study similar organization by using forecasting techniques Forecasting Human Resource  Forecasting is based on the annual budget and long- term corporate plan. Methods of forecasting HR are stated below: A. Judgment and experience: It is subjective method which is purely the common sense of the manager. It is appropriate for short period of time. B. Zero base forecasting: The existing HR information is taken as a starting and based on that information, you an predict for the future. The idea here is re-assigning the existing HR and use efficiently and effectively. C. Bottom up approach: is a popular method which is based on the projection of future requirements from the concerned sections. D. Delphi Method: method of HR forecasting by a group of experts Step 2: Determine the Human Resource Inventory [HRI]  This step deals with knowing the type and number of people available in the organization. In other words, it is Human Resource Auditing.  There are two types of HRI/Audit/ A. Management Audit: deals with the number and type of people available in the management position B. Skill Audit: deals with the number and type of people available in the non-management position  Human Resource Audit should be explained/expressed/ in terms of number. Step 3: Anticipate Change in HRI  The present data in the HRI is the photograph of the human resource available at a singe point in time. But, in the long run, changes must be anticipated and carefully planned. This is called employee mobility such as A. Turn over B. Promotion C. Transfer D. Demotion E. E.t.c Turn over  It refers to movement in to and out of the organization. Reasons for turn over are A. Natural Wast: death, illness, sickness, retirement B. Voluntary TO: poor working condition in the organization, dissatisfaction with management and payment, no possibility/opportunity/ growth and others C. Involuntary TO: dismissal, forced by the organization for incapable employee Turn over  The degree of movement of Human Resource [Turn Over] depends on two factors A. Time: as people stay longer in the organization, they become permanent. B. Age: as people become older and older, they stay in the organization permanently Step 4: Determine the Net Human Resource Planning Requirement  Net Human Resource Requirement is the difference between the total Human Resource  Planning Requirement and the Human Resource Audit and Anticipated changes in HRI.  NHRR= THRPR- HRI- ∆HRI  The result can be zero [no variation on demand and supply], positive [shortage of employees] or negative [surplus of employees]. Step 5: Action Planning  This is the step to be taken for adjustment purpose of the net requirement of Human Resource Planning. So, based on the result in step four, Action Plan should be developed for each conditions. That is A. Action Planning when Net Human Resource Planning Requirement is Zero B. Action Planning under Surplus Condition C. Action Planning under Shortage Condition HRM MBA Program Dr. Mulu A. Action Planning A. Action Planning when Net Human Resource Planning Requirement is Zero: This is a situation when number of employees demanded and number of employees available in the organization matches. That means there is no variation between demand and supply of employee in the organization. So, there is no action to be taken. Action Plan B. Action Planning under Surplus Condition: Occurs when supply of employees is greater than the demand. Employees are abundantly available. So, the action is reduction of employees which is difficult for managers. Example of this action are: – Early retirement – Layoff – Work sharing – Dismissal or termination – Stop overtime or part-time – Give leaves Action Plan C. Action Planning under Shortage Condition: This occurs when there is scarcity of Human Resource Requirement. So, the action is to increase number of employees. – Training and Promotion of the present employees – Recalling previously laid off employees – Sub-contracting some part of works – Buyback vacations – Increase over-time and part-time workers – E.t.c Recruitment: Definition  Recruitment is the process of attracting potential candidates who are capable and interested to fill the vacant position in an organization.  Sources of Recruitment. There are two sources: – Internal: Sources of Recruitment through promotion, upgrading or transfer. It is Less costly, save time and effort, raise morale of employees, behavior of employees are known and tested, needs little or no adjustment, but provides limited choice, doesn’t help to avoid dissatisfied employees and danger of inbreeding Sources of Recruitment – External Sources of Recruitment; Sources of Recruitment outside of the organization such as universities, colleges, employment agencies, and others. Provides large and better choice, avoids inbreeding and helps to avoid dissatisfied employees but it is costly; behavior of employees is unknown, internal employees may be disappointed and needs large adjustment. – In recruiting employees, you should follow and use realistic approach.i.e provide them with positive aspect of the organization such as growth, benefit, attraction and negative aspect such as strict supervision, dealing with unpleasant customers. Steps in Recruitment Process  Step-1: Identify the need for recruitment  Step-2: Describe the job  Step-3: complete recruitment request form  Step-4: Agree the grade and salary for the job  Step-5: Advertise the job Step 1: Identify the need for recruitment  The recruitment process starts when a vacancy arises. This may be a new position or due to expansion of the company or as a result of a staff member leaving the organization.  For each vacancy it is important to consider: – Does the role fits with the organization’s mission and vision? – Does the role add value to the organization? – How the role will be funded? Organizations should consider the cost of employing staffs such as salary, benefits, equipments… Step 2: Describe the job-the job profile  The job profile has two components: job description and job specification.  Job description: include the main purpose of the job, scope of the job, and duties and responsibilities of the job.When you are stating the duties and responsibilities, use verbs for example advise, arrange, check, inspect, train…  Job Specification: includes the minimum requirements of the individual to carry out the job such as skill, experience, qualification and others.  Once the job profile is prepared, you have to answer questions like, is it realistic?, is it clear? is it equal opportunity for all? Step 3: Complete the Recruitment Request Form  Once the job profile is written, it is important to have a process where line managers make an official request for the position to the HRM Department.  A suggested temples for recruitment request form is stated as follows. Job Title Location Needed from Start date End date Reason needed Replacement New Position Funding General fund Specific fund Job Profile Attached? Advertisement Suggesting appropriate place to advertise the job Requested by Name Signature Date Approved by Name Signature Date Step 4: Agree the Grade and Salary  The Grade and Salary of a job depends on the job profile. In order to set a Grade for a job, the job profile must be evaluated.  Evaluation of jobs should be carried out by a member of the HRM Department and the line manager of the job being valuated. Between them, they have an overview of the organization and good understanding of the job.  Job Evaluation depends on three criteria such as level of skill, level of responsibility and level of representation. Lower skill, responsibility and representation are given fewer points and vice versa. More points are given to responsibility. Levels and Responsibility Skill Representation criteria Low Medium High Very High Job Evaluation  Once score is given to each job, there should be comparison with other jobs. Then grade will be assign as lower, medium high or very high.  If the grade of the job is identified, it is easy to set salary. Step 5: Advertise the job  Once the job description, Job Specification and Salary has been finalized, it is time to let people know about the vacancy.  There are many ways to advertise vacancies such as notice board, through internet, using newspapers.  It is worth thinking carefully about targeting places where people with right skills and personal qualities are likely to see the advertisement Con’t  Information Included in the advertisement: – Brief Description of the Organization – Location of the job – Salary and grade of the job – Start date – Closing date – How to apply – And other information included in the job description and job specification. 2.4 Selection  Selection is the process of choosing the best candidate among many applicants by matching personal qualities with the job requirement.  Steps involved in selection process are: – Completion of the application blank – Preliminary screening – Testing [Written and on the job] – In-depth Interview – Collect Reference – Medical Testing – Offer the job – Inform unsuccessful candidates – Open personal file Steps in Selection Process  Step 1: Completion of the application blank – Filling the employee requisition form with their bio-data such as experience, qualification, background and other relevant factors  Step 2: Preliminary Screening – Reject the unfit employee by checking the minimum educational, experience, and capacity  Step 3: Testing – Valid and reliable test will be given to measure the mental and psychological effort of the individual. The test could be theoretical test [written examination] or practical test on the actual job. Steps in Selection Process…  Step 4: In-depth interview – involves face to face questioning of the applicant to find out his/her personal and professional excellence, – It measures the confidence, theoretical and practical knowledge of the applicant Cont’d…  Step 5: Collect References – References play a very important part in the recruitment process. Information from past employers is often the best way to understand how a new staff member will fit into the role and the organization. – References are normally collected after the interview for the most successful candidates. – References can be collected in written form or by telephone. Telephone references may give a more realistic picture of what the candidate is like since references do not have time to think about diplomatic responses to the questions. – Questions asked to referee could be questions related to specific to the job, character and his/her recommendation of the applicant to the job. Steps in Selection Process  Step 6: Medical Examination – and mental fitness of Checking the physical the applicant to the job – Some jobs has already specified particular diseases which are communicable and epidemic once. Step 7: Offer the Job  Step 7: Offer the Job – Where possible, the line manager should telephone the successful candidates to offer the job. The decision of the successful candidate whether to accept the job should not be expected immediately. Next, medical test, checking the physical fitness to the job, will be made. – Jack Park [Paperwork] will be prepared. It includes Acceptance letter, Contract of employment, medical test, personal information sheet, employment offer letter, and staff handbook. Step 8: Inform Unsuccessful Candidates  Step 8: Inform Unsuccessful Candidates – Candidates who were unsuccessful must be told as soon as the successful candidate has accepted the job. It is not necessary to state why they where unsuccessful but be prepared to provide constructive feedback if requested. – Tests, and interview notes completed by unsuccessful candidates should be kept for as long as local law requires. This file may be useful for future references. Step 9: Open a personal file  Step 9: Open a personal file – A personal file should be set up for each new staff member. This file is confidential and only the HRM Department and the line manager should have access on it. It should therefore be stored in a locked cabinet. – The personal file should contain all information relevant to the staff member. It is important that it is kept up-to date. – The amount of information held will depend upon the person’s role. Con’t  Each personal file should contain:  Personal Detail such as Marital Status, number of children, Age, Sex, Date and country of birth, home address, telephone, e-mail address, photograph, emergency contact, identity card/passport…  Recruitment Information such as results of police checks, medical results, test scores, curriculum vitae, and others  Employment Information such as employment history, appraisal and development results, disciplinary records, sickness and absence records, salary records, annual leave, committee works, others 2.5 Induction  When a new member of staff joins an organization, it is important that they are given good support in gaining an understanding of their role and the organization.  Induction is the process of socializing/familiarizing the new employee/new comer/ with the organization ,with other employees and with his/her job.  Induction is designed to provide the new staff with information in order to function comfortably and efficiently in the organization Areas of Induction  Content of Induction includes: A. Organizational related Issues such as history , organizational structure, operation overview, company policy, and others B. Employee Related Issues such as pay scale, pay day, vacation, education opportunity, benefits, safety and health and others C. Job Related Issues such as job duties, responsibilities, job location, job safety, job requirement, job relation and others D. Relationship related issues such introducing with his/her superior, colleagues, trainers, and other peoples.  To introduce, we may use films, videos,slides or company handbooks. Why Induction  Benefits of Induction are: – It helps to reduce the new employee feeling of isolation – It helps the new staff to become part of the organization quickly and to be more secured – It helps the new employee to learn more about the new duties and responsibilities – It helps the new candidate to understand the social, cultural and technological aspect of the work place quickly. 2.6 Placement  It is the process of assigning a worker to a particular job based on qualification, experience, qualities, and other factors.  Avoid wrong placement. It brings inefficiency and ineffectiveness in an organization. Proper placement brings – better motivation – Reduce cost of absenteeism and turnover – Increase employee satisfaction – Better utilization of resources Questions  Do all the jobs in your organization fit with its vision and mission?  Does every jobs has job description? If not who is responsible for it?  Do you think the recruitment and selection process fair and transparent?  How are new member of staff introduced in your organization? is it adequate? How this can be improved?  What is the practice of your organization in placement End of CH -2 Any Questions?