To Plan or Not to Plan
Zee Bay Inc. is a medical transcription firm in India and its tagline is ‘Confidential and Accurate Transcription that Meets Your Deadlines.’ It caters to the medical outsourcing requirement of the American medical world.
Medical transcription services ought to have five distinct value propositions for their clients: competitive price, fast turnaround time, 100 per cent accuracy, quality output and security and confidentiality. Until now Zee Bay had been a ‘boutique BPO’ (few high-paying customers with very high-quality requirements) but with passing time the sales team in the US had been facing a lot of difficulty with selling Zee Bay services at their current price levels. Bigger players had come into the market and they were selling their services at a loss to win customers with the hope that the customers would become sticky and then they would inch their prices up. Nobody knew whether their strategy would work or not but currently it was causing a lot of grief to Zee Bay. To tide over this crisis, the management team had come to only one conclusion that there was no way that the ‘boutique’ model could sustain and that they needed to expand.
Zee Bay Inc.'s Strategy
Raikar, the promoter, decided to set in motion his plans to expand from the coming financial year. Based on his strategy team inputs, he was looking at a near-shore acquisition which could help him get an advantage over his other Indian competitors. There was no company that he could think of acquiring at the moment, but Kumar (who doubled up as his Chief Financial Officer (CFO) and Strategic Head) had not given up and was having a series of meetings with many in South India which seemed to be especially endowed with small transcription shops.
Zee Bay at the moment has 550 people across three locations in India: Mumbai, Hyderabad and Bengaluru. Of these, 500 were part of operations and were involved in transcription, proofreading or supervision. The qualification break-up of the transcriptionists looked like this: undergraduates—20 per cent; graduates—60 per cent; others—20 per cent. The average age of the operations team was 27 years. There were a few retired people from the medical world, of whom most had served as nurses at local hospitals.
To Hire or Not to Hire
In the face of all this, Manish Tandon, the Head of Human Resources, had a tough job at hand. It was December—the Human Resource Planning (HRP) process had started and he needed to firm up his numbers. Raikar would be having the first round of discussions with the first draft of the budget next week.
Manish knew that the business slow down had hit the US markets too. However, current customers had promised an increase in business in terms of volume to the tune of 15–20 per cent. There was a general reduction of business, but what the sales team was very upbeat about was the fact that more medical firms would like to optimize on costs and hence would be more than willing to outsource the work to good quality players in India. With this background they had projected a 45 per cent rise in orders. What Manish feared was that if he hired manpower and the orders did not follow the projection then he would be left with no option but to have people go. This was not the usual software business where you could utilize your bench in domestic projects.
The additional business from current clients was not a worry—the ‘Resourcing’ team got enough lead time to be ready with trained people. The tricky cases are going to be the additions to the client list. New clients invariably wanted a pilot run before they signed on the dotted line. Before they gave assured business it was fair that they tested waters! A pilot team would mean hiring people not knowing whether they could keep them or not—same old chicken and egg story! This would mean Zee Bay had to be people ready. ‘We could probably increase the number of transcribers on the current processes and use the supervisory force to double up as transcribers till we get the job,’ Manish sat and wondered.
For the projected increase in revenue, Zee Bay would have to quickly build a team. They would need transcriptionists, proofreaders, team leaders, shift supervisors and programme managers. The ratio of transcriptionist to team leader is 12:1. The ratio of TL to AM is 1:4. Attrition was very high, going up to 50 per cent the previous year when the going was great in terms of business. Now with the slow down, they are expecting that the perennially north bound attrition rate would buckle its trend.
As Manish took his scratch pad out to start making his notes, he wondered ‘Planning on the face of it should be about numbers, but how to go about the whole activity’. He tried to scratch his memory and recall every management book that he had read, if an ‘idea’ could suddenly appear from somewhere. There is nothing which is fixed—we don't know whether we would get business. If we get business we do not know the areas that we would need the expertise in. We do not know the rates that we would get—in all probability, rates would be such that you cannot be sure you would get the best of guys for the kind of money you could pay. We do not know whether there will be an acquisition for sure or not. Every time you ask Raikar, he will have a new list of candidates. Doesn't help our case! Manish could take it no more—he pushed his chair back and thought he would go and do a little management by walking around—‘at least I can be sure there will be people out there’—he was tired of racking his grey cells for solutions.
Questions
What is Manish's problem?
How do you suggest he plan for his human resource requirement?
Source: Adapted from Pande and Basak (2010).
I expect to spend the rest of my life in the future, so I want to be reasonably sure of what kind of future it is going to be.
—Charles Kettering
Jaiprakash Singh sat staring into his coffee cup, long after he had taken the last sip. He shook his head as if in total disbelief of something and remarked to his wife, ‘I was thinking of growing the company—and here I am running to stay at the same place’. Just then he saw Anand walking towards him. Anand had been in a large consulting house for many years now and was to be seen rarely at the tennis courts due to his hectic travelling. ‘Why don't you ask for his advice?!’ piped in his wife, ‘he has been helping organizations out of their mess for a living!’ Anand made it easy for him saying, ‘So how's the new job going, Mr President’, as he slumped into the chair next to him. Here's their conversation reported verbatim.
‘I didn't realize at the time (1970)’, Reginald Jones, GE's former chairman indicated, ‘but we were a company with 30,000 electromechanical engineers becoming a company that needed electronics engineers. We did not plan for this change in 1970, and it caused us big problems by the mid-1970.’ GE had been doing business planning for a long time but started taking a long-term view on HR after facing this crisis.
Source: Adapted from Mills (1985a).
If you imagine the situation the Jaiprakash Singh is in, you can be sure that not much planning has gone into his human resource operations at all. Had it been factored in, he would not have been in the mess that he seems to be in.
Simply put, HRP determines the human resources requirement by the organization to achieve its strategic goal. It is the process by which the organization ensures that it has the right number and right kind of people, at the right place at the right time, capable of effectively completing those tasks that will help the organization achieve its objectives.
It addresses the need for human resources in both the quantitative as well as the qualitative manner. This would translate into two questions—How many people? What kind of people? Apart from this, HRP also looks at broader issues such as capability building of the people resources and the introduction of processes to meet the future requirement (both ‘how many’ and ‘what kind’) for people.
Human Resource Planning determines the human resources requirement of the organization to achieve its strategic goal.
HRP is an integral part of the business planning exercise. The business planning defines what kind of business the organization would be in, in the future. It also defines the competencies that the organization needs to build to face the challenges in the future. It involves forecasting the organizations future human resource needs and how those needs could be met. It would include establishing objectives and developing and implementing programmes to ensure that people are available with the appropriate qualification, experience and skills during the phase that organizations would be needing them. It could involve developing and implementing programmes to improve employees’ performance or to increase employees’ satisfaction and involvement in order to boost organizational productivity, quality or innovation (Mills 1985a).
Most organizations follow planning because they believe that it makes their company plan for the future in order to eliminate surprises and it makes them flexible and entrepreneurial. But there are other organizations that resist planning and feel it is bureaucratic, costly and ineffective.
A survey on ‘HRP’ was done by D. Quinin Mills (1985a) for more than 200 companies in the United States that had sales of more than $50 million and conducted business from 10 or more locations and had a controlling interest in one or more subsidiaries. About 72 per cent of survey respondents who practised HRP were certain that it improved the profitability and 39 per cent or more than half of the human resource planners insisted that they could measure the difference to the bottom line. The survey data analysed the profitability of the companies that included human resource goals in their business plans compared with those that did not. It turned out that the companies that had their business goals charted out were the more profitable ones. In July 2007, The Economic Times reported ‘HR department in the IT industry has miserably failed in manpower planning—right from recruitment to training and development, after the exodus of more than 10,000 employees from top four IT firms in India in the first quarter of the year.’
Consider what would happen if HRP was not done? There could be two fall outs. Either the company would be overstaffed or understaffed. An understaffed company would lose business and customers for its inability to deliver. There will be stress within the organization as people would be overworked. It might become a reason for attrition and conflicts within the organization. Being overstaffed is equally harmful. It is wasteful and expensive. Retrenchment, layoff and no replacement to natural attrition are all expensive ways of correcting the situation. It reduces the competitive efficiency of the organization and also affects motivation adversely, which can become a reason for attrition of the precious few who would want to earn a hard day's work. It is no surprise that more and more organizations are adopting the HRP process. Table 3.1 classifies HRP into three stages of evolution and describes how the process works at each stage of its evolution.
Table 3.1 Which stage of HRP is the organization in?
Stage | Characteristics Activities | |
---|---|---|
Traditional |
Stage 1 |
■ No long-term business plan. Could be family-run businesses. Employee Engagement is interpreted as hosting parties and organizing picnics |
|
Stage 2 |
■ Organizations tend to be sceptical of HRP, though some of them have short-term headcount forecasting. They believe that HRP is important and think that there is a need to do more |
Moderate |
Stage 3 |
■ Long-term headcount forecasting that are for at least five years. This activity is, however, not integrated with the long-term business plan |
Advanced |
Stage 4 |
■ HRP is a part of the business planning process, and the senior managers are enthusiastic about it. Skills inventories and succession planning are a part of the long-term business plan |
|
Stage 5 |
■ Long-term detailed plans in place. They use advanced methods of planning. All HR processes such as succession planning, career planning, high-potential development and retention are tied in with the HRP process |
Source: Adapted from Mills (1985b).
W. S. Wikstrom (1971) pointed out in the conference board report ‘manpower planning evolving systems’ that manpower planning consists of a series of activities as follows:
Thus, HRP aims to get the right number of professionals at the right time to meet the organization's demands (Figure 3.1).
Figure 3.1 Human Resource Planning
Source: Adapted from Mondy (2009).
The various steps for effective HRP are as follows:
External scan would mean doing a quick scan of the market to keep the ‘larger canvas’ in mind. This scan would be done using a SWOT analysis (Strengths, Weakness, Opportunities and Threats). This enables HR with the information as to what it could leverage to its advantage and where it needs to plug in the gaps. A very important part of this external scanning is that of the employment market and the environment. This can be in terms of changing employment laws (e.g., changed levels of minimum wages), hiring environment (political pressure to hire locals), compensation trends (compensation break-up ratio of fixed to variable), employment practices (hiring of temp workers, flexi time), technology (how much of the process of recruitment and selection can be automated) etc. The employment market varies from industry to industry and is often created by the competitors. Hence, a tab on what competition is doing can be an edge over them in the market. All this is crucial as this has an effect not only on the type and number of people to be hired but also on how and where they are hired. Let us take an example of the IT industry. In 2009, Nasscom asked the top colleges to postpone their placement season to the final semester. Earlier the software firms would hire from select engineers in the third year of engineering at campuses. This was done to ensure that software firms would go in for just-in-time hiring and to ensure that they do not over hire in an environment where project pipelines were under pressure. Such a directive by a governing body may affect the campus hiring plans for an organization.
Internal scanning would mean collecting and analysing the information about overall organizational objectives in terms of sales, markets and growth in the future. This is necessary to make a calculation of the numbers and forecasting of the kind of competence required from people. HR also needs to have accurate information about the level of present manpower resources, namely, the number of people, the types of skills and current capabilities of the organization, the development potential of untrained employees and the expenses that would be incurred in the development of skills.
All the information collected from the scanning phase becomes a major input for the HRP process.
Gap analysis needs to cover both long- and short-term initiatives. In the short term, the gap will be filled by objective-based reward and training. In the long term, a strategic perspective is important, requiring both organizational and manpower development.
Dealing with surplus and shortage of manpower: As a result of the RAG analysis, organizations may diagnose either a surplus or a shortage of manpower for their future requirements. This step is about planning to manage the outcome of gap analysis. For dealing with shortages, organizations can use innovative sources of manpower or start training current employees in the short term. In the long term, they could work on becoming a more attractive employer through employer branding, redesigning the compensation and a host of other methods. Many organizations have also tried to manage this situation by slightly lowering the selection criteria and being more flexible on other employment conditions. Hiring part-time workers, temporary staff, students and outsourcing are some of the ways in which organizations respond to shortage of manpower.
The obvious way to deal with surplus manpower is by downsizing and separating people. However, especially in India, this is looked upon as the last alternative. Alternative ways to handle this could be by restricting hiring, by not filling in the gaps created by resigned employees and introducing voluntary retirement schemes. Outplacement, is also practised by many companies, wherein the laid off employees are given some kind of assistance in finding employment elsewhere.
In many countries, including India, there are wide variations between the availability of technically trained manpower and the actual demand for such personnel. On the one hand, there may be severe shortage of skilled, technical manpower and, on the other hand, there may be a surplus of non-technical professionals. These are the problems both developing and developed countries face. Therefore, the qualitative aspect is as important as the quantitative aspect.
There are many factors that account for the increased attention to HRP, but environmental forces—globalization, new technology, economic conditions and even a changing workforce—seem of great importance (Dumaine 1989; Dyer and Heyer 1984). Uncertainty can interfere with efficient operations and, therefore, the organization typically attempts to reduce its impact (Thompson 1967).
Step 1: |
Environment scan |
Step 2: |
Forecasting demand of manpower |
Step 3: |
Forecasting supply of manpower |
Step 4: |
RAG analysis (required, available and gap) analysis |
Step 5: |
Plan of action |
Step 6: |
Control and assessment |
United Bank of India (UBI)
In February 2008, the government-owned United Bank of India (UBI) was one of the few public sector banks with business less than 1 lakh crore. It gave itself the tall task of doubling its business to around 1.5 lakh crore by 2011 from the then 70,000 crore.
To begin with, the bank thrashed out a three-year business plan with the guidance of the Indian Institute of Management (IIM), Kolkata. Besides setting the business target and planning the revamp, UBI identified two major deterrents that need to be addressed at the earliest. The first was related to manpower planning and development and the second related to the use of technology.
The bank's manpower was depleting and the top-line staff was aging. Some of the startling facts were that 1,950 of its 5,000 odd officers were slated to retire by 2011. And in 2009, the bank was likely to face a vacuum at the top-deck as 10 of its dozen general managers were to retire. The average age of the staff was 53.
The bank wanted to have a set of people with the right attitude and behaviours suited for the changing banking world. The company did its manpower planning in a detailed way and factored in campus recruitment and lateral movement of bankers to fill up vacancies, besides promoting its own existing employees to senior positions.
As on 31 March 2011, the bank's business stood at 1.32 lakh crore. HRP seems to have worked!
Source: Adapted from Ray (2011).
The accountability for HRP lies with the HR department. HR brings in value to the business planning and from there on to the HRP process in the form of expertise and knowledge of the state of the labour market, legal or government frameworks, global or international people considerations, best practice on governance matters, best practices on people strategies and competitive intelligence regarding manpower.
The HR planner focuses on the human side of the enterprise. Stainer (1979) recommends the following nine best practices for human resource practitioners to follow:
It is important to note that every organization does not have an HR planner—only organizations that are large can afford a specialized position for an HR Planner. This position might be called workforce analyst, HR forecaster, HRP evaluator, work analyst or HRP manager. In smaller organizations, HR practitioners wear multiple hats. In such a case, the HR manager has to take care of the HRP function too.
The quality of the HRP depends on the quality of the forecasting. Demand forecasting is done based on a number of long- and short-term factors such as change of economy, technological trends, market trends, global trends, strategic plans of the organization, ongoing and immediate future projects/operations. There are many techniques to ascertain this demand. The methods to forecast manpower demand can be categorized into two: those which use quantitative models and those which rely on the judgement of the participants. Let us take a look at each of these methods in brief (Table 3.2).
Demand forecasting can be done using quantitative and judgemental methods.
In ratio analysis, it is assumed that two variables bear a direct relationship with each other. For example, if it takes 30 employees to sell 300 units, then the ratio of number of units sold to employee is 1:10. Based on this, it could be calculated that if one needs to sell 600 units, at 1:10 ratio, 20 sales people would be required. This is a simple method to use, but it has the disadvantages of over simplification. It ignores the fact that with rising volumes (of sales) economies of scale would set in making the system more efficient and this ratio might actually change. However, for doing rough back of the envelope calculations it is a very user-friendly method.
Ratios assume that two variables bear a direct relationship with each other.
Table 3.2 Quantitative and judgemental methods
Quantitative Method | Judgemental Method |
---|---|
■ Ratios |
■ Managerial judgement |
■ Benchmarking/thumb rule |
– Bottom-up approach |
■ Scatter plot |
– Top-Down approach |
■ Trend analysis |
■ Delphi technique |
■ Computerized forecasts |
■ Zero-based forecasting |
■ Simulation |
|
■ Work study |
|
Many years of experience gives rise to many thumb rules or benchmarks. For example, the international benchmark for HR is 1:100 in an automated environment, which indicates one HR employee can support and service 100 employees. Therefore, if the employee strength is 5,000, 50 HR employees will be needed. These benchmarks are useful when forecasting has to be done in large volumes for a new business.
Thumb rules and benchmarks are established with many years of experience.
This refers to the graphical representation which depicts how two variables are related to each other. For example, if the sales and the organizations recruitment levels are related, then with the scatter plot the organizations can forecast the projected demand of manpower requirements depending on the forecast of sales.
Scatter plot refers to the graphical representation which depicts how two variables are related to each other.
The term trend analysis refers to the concept of collecting information and attempting to spot a pattern, or trend, in the information. When the requirement of human resources by an organization is studied to identify a trend and then forecast future requirement based on the trend, then such a method of forecasting is known as trend analysis. For example, organizations may calculate the numbers at the end of each year for the last three or five years, of various functions such as human resources, marketing, finance, operations etc. and then extrapolate this to forecast the future. The shortcoming with this method is that it assumes that the trend will continue without any change which is not always true.
Trend analysis refers to the concept of collecting information and attempting to spot a pattern, or trend, in the information.
Trend analysis, ratio analysis and scatter programmes forecast the manpower based on the relationship between two variables. However, the requirement for manpower is dependant on a host of variables and not just two. For example, the requirement for sales officers would depend on the trend of sales in different markets, the number of products introduced, the difference in the products (can one salesman sell both?) and customers for the products. The computer program enables the manager to enter all these variables to generate the resource requirement that is required to meet the business objectives. Thus, a computerized forecasting method can forecast in a complex environment better than other methods.
Computerized forecasts enable the manager to enter variables to generate the resource requirement that is required to meet the business objectives.
This is one of the most sophisticated methods of forecasting human resource needs. A computer simulation models a real-life or hypothetical situation on the computer to see how a system works. By changing variables, predictions may be made about the requirement of people at different levels and locations of the organization. Simulations are a mathematical representation of major organizational processes, policies and human resource movement through the organization. They use algorithms for simulating the requirement of people depending on various business variables, either actual or hypothetical. They are, therefore, useful in forecasting for human resources by pinpointing any combination of organizational and environmental variables.
Simulation models a real-life or hypothetical situation on the computer to see how a system works.
It can be used when it is possible to apply work measurement to calculate how long operations should take and the number of people required. Work study techniques for direct workers can be combined with ratio trend analysis to calculate the number of indirect workers needed.
Work study can be used when it is possible to apply work measurement to calculate how long operations should take and the number of people required for the same.
This is the most often used method of forecasting. In this, the opinions of manager, functional and departmental heads, subject matter experts or senior-level management who are aware of the manpower needs of the organization are sought to arrive at an estimate. The method depends entirely on the judgement of the managers of the organization. Based on the method by which the opinions of managers are pooled together, there are two ways to do managerial forecasting.
– Bottom-up approach
– Top-down approach
Bottom-up approach. This method works out like this—each manager who is in charge will create his own requirement. It starts right from the lowest level and moves to the middle level and then to the senior, and finally the entire forecast for the employees for the entire organization is ready. Each level of managers discuss and negotiate their requirement with the next level. Here the onus is on the manager, as they have to justify their anticipated staffing needs. For example, at Mariott Hotels HRP is carried out by successive layer of management, with the process starting from the bottom and moving upward. Each manager personally reviews two layers of employees below his own rank. This allows an overlap in the evaluation procedure, because everyone is evaluated by his immediate supervisor as well as by the person two ranks above.
Managerial forecast seeks opinions of manager, functional and departmental heads, subject matter experts or senior level management who are aware of the manpower needs of the organization to arrive at an estimate.
Top-down approach. The purpose of this approach is to have the minimum involvement of the line managers in the forecasting process. Most of the responsibility for forecasting is taken by the top management who based on their experience, their view of the future business and resource constraints estimate resource requirement for the future. This method is more time efficient and business driven than the bottom approach. However, the downside is that this kind of forecasting does not have the buy in of the line managers and might be therefore difficult to implement in the budgeting process.
Delphi is a group-based systematic forecasting method. At a Delphi meeting, experts take turns at presenting their forecast and assumptions to the others, who then make revisions in their own forecasts. This combination process continues until a viable composite forecast emerges. The composite may represent specific projections or a range of projections depending on the experts’ position. This technique is useful for generating solutions to unstructured and complex questions, such as those that arise during HRP.
In the Delphi technique, experts take turns at presenting their forecast and assumptions to the others, who then make revisions in their own forecasts.
In zero-based budgeting, managers need to build a budget from the ground up, building a case for their manpower requirement as if no baseline existed. Resources are not necessarily allocated in accordance with previous patterns and consequently each existing headcount has to be annually re-justified. The main emphasis here is on the analysis of human resource needs. The systematic nature of such a fundamental review imposes a discipline in the organization which has obvious advantages. It produces more and better management information in a readily accessible form. This in turn improves the quality of management's decision. Another advantage that stems from this improved management information is that its production involves the participation of lower-level management in the budgetary process. Unexpected events that occur during the financial year can be more readily adjusted for. If implemented well, zero-based budgeting can eliminate a sense of ‘entitlement’ to resources. The downside of zero-based budgeting is that it vastly overestimates man's ability to calculate. Also because of its nature it can be a very time-consuming and an expensive affair.
In zero-based budgeting managers need to build a budget from the ground up, building a case for their manpower requirement as if no baseline existed.
Once demand forecasting is done—it usually forecasts the requirement on a certain future date. To decide next steps it is important to gauge the availability of manpower inside the organization too. This is called supply forecasting. Some of the methods used to forecast this are discussed in the following subsections.
No workforce is stable or stationary. People are hired, they grow within the system and then some of them leave for a variety of reasons. The focus of Markov analysis is to attempt to project into the future what the current workforce would look like if the current mobility flow continues with no changes. It is used to study the flow of people entering and exiting the system. Let us understand this with the hypothetical flow of people in a call centre (Figure 3.2). In 2011, the number of people in different jobs is given in the first column. There are 12 programme managers, 36 assistant managers, 96 supervisors, 288 team leaders and 1,440 customer service representatives (CSRs). How these people make a transition in the next year is given in the subsequent columns. The figures in percentage represent the transition, i.e., the percentage of people who will make a transition into that job in the coming year. For example, 74 per cent of the total number of CSRs (1,440) will stay in their current job, i.e., 1,066 CSRs will continue. About 6 per cent (of 1,440), i.e., 86 would get promoted to team leaders and 20 per cent would exit the system, i.e., 288 will be separated.
The focus of Markov analysis is to attempt to project into the future what the current workforce would look like if the current mobility flow continues with no changes.
Figure 3.2 Markov analysis
Thus, Markov analysis shows the percentage of employees who remain in each job from one year to the next as well as the numbers that get promoted, demoted, transferred or exit from the organization. It helps in tracking patterns of employee movements through various jobs and aids in developing a transition matrix of the forecast of manpower supply. External supply refers to labour from the outside market that could be hired in the organization, accordingly the organizational sourcing and recruitment plans will have to be modified. The internal supply of manpower would cause the redeployment of current employees into new areas.
They help in listing current job holders and identifying possible replacement if any opening occurs. It aids in information on the current job performance and promotion potential of possible replacements.
Replacement chart identifies possible replacement for positions which maybe rendered vacant or open.
Skill inventory is a compilation of skills, education and experience of employees. It is normally obtained as a report from the HRIS. Organizations use these inventories to assess their ability to meet certain company goals. Understanding the company's pool of current skills/talents and its future skill requirements can aid an organization in its strategic human resource planning efforts.
Similar to the skill inventory is the management inventory. Management inventory is a comprehensive catalogue of the capabilities found in an organization's management team. The inventory is populated with the help of data from the manager's employment records, formal and informal education and training obtained, immediate supervisor's report and the results of performance evaluations.
Skill inventory is a compilation of the skills, education and experiences of current employees.
Skill Inventory Template
Staffing tables are graphic representations of all organizational jobs, along with the number of employees currently occupying those jobs. Staffing tables could also be prepared for the future and thus can be used to forecast the supply of manpower.
Staffing tables are graphic representations of all organizational jobs, along with the number of employees currently occupying those jobs.
Wastage analysis is the analysis of the employee turnover in an organization. Wastage analysis attempts to forecast the rate and trend of turnover in an organization. It, therefore, helps in making an estimate of resources that might be leaving the organization; thus in another way forecasting the supply of manpower inside the organization.
Wastage analysis is the analysis of employee turnover in an organization.
Overstaffing by Design
Aravind Eye Care System (AECS), Madurai, represents the largest and most comprehensive eye care system, leading in the number of surgeries and number of patients much more than any other eye care facility in the world. What is special about Aravind is that nearly 70 per cent of surgeries are at free of cost for the poorest of India's blind population.
Lately, eye care services have become competitive and the industry making significant progress has led to voluntary attrition of manpower across different categories and centres. At Aravind, apart from assessing reasons for attrition, preventive steps are also taken so that effective functioning of the services is not disrupted. It makes detailed assessments of manpower needs scientifically. This helps in its recruitments, training and transfers across departments.
It is a conscious decision which the organization has made to staff people in excess numbers in critical services to take care of contingencies and offering training programmes to build harmony and commitment among employees. Having employee strength of approximately 350 medical officers and consultants, more than a thousand mid-level ophthalmic personnel (MLOPs) and approximately 500 administrative staff, Aravind fulfils all its manpower needs without any advertisement. Despite this policy, there always exists a large pool of applicants for recruitment. MLOPs, representing about 70 per cent of its workforce, are young women in the age group of 17–19 hailing from humble rural backgrounds.
Source: Adapted from ‘Aravind Eye Care HR Policy Covers All Facets of Employee Life: Study ET Bureau’, 4 January 2010, accessed on 25 August 2011.
Figure 3.3 Succession planning chart
Succession planning is a process for the identification of critical key positions of the organization and then developing internal people with the potential to fill these positions in the case of there getting rendered vacant. The process of identification of potential candidates for key positions helps in forecasting the supply of people for these key positions and hence it qualifies as a method for supply forecasting of manpower. A typical succession planning chart may look like the one shown in Figure 3.3.
Succession planning is a process for identification of critical key positions of the organization and then developing internal people with the potential to fill these positions.
One of the basic changes in the business environment has been the pace at which it changes. What was applicable yesterday is not true today and it would be foolish to assume that what is today will be tomorrow too. Traditional forecasting is unable to handle such fast and frequent changes in environment. When using the traditional methods to forecast one has to either extrapolate the past or making some assumptions about the future, which may or may not be true. This obviously, makes planning a futile exercise. Scenario planning is a tool developed to tackle such changes.
Pioneered by Pierre Wack (1985) of Royal Dutch Shell Group, this is not yet another method to forecast and predict. Instead, scenario planning requires the articulation of multiple scenarios which may unfold in the future and being ready for the same. It does not extrapolate from the past to predict what will happen in the future, but, instead offers different stories of how the future might look. It thus helps to prepare for discontinuation and sudden change, helps to create a common culture or language through which the future can be imagined and discussed and challenges the mental maps we all hold.
Scenario planning is best done in a workshop setting of senior business executives and HR executives. The idea is to bring together a wide range of perspectives in order to consider scenarios other than the widely accepted forecasts. The scenario development exercise should include all those who will design and implement solutions based on the scenario analysis.
The following outlines the sequence of actions that may constitute the process of scenario planning.
Step 1: |
Define the scope of the planning and the time frame. |
Step 2: |
Identify the certainties of the situation meaning those elements that are certain to occur. |
Step 3: |
Identify the critical uncertainties in the environment. |
Step 4: |
Identify those which are the most important. |
Method to calculate level of significance of the driver
Then pick up the highest scoring variables to develop a scenario around its different values.
Step 5: |
Articulate the extremities of the variable. |
Step 6: |
Develop a matrix of the variables to develop different scenarios. |
Each scenario should also be given a descriptive name representative of the scenario for easy recall.
Step 7: |
Analyse each scenario and articulate a recruitment and selection strategy to respond to it. |
Consider this situation. You have joined the human resources department of a chain of hotels. The chain does not have mature human resources processes in place and there is a lot which can be put in order. You have been in the job for a week when the first crisis sets in. The F&B (foods and beverage) manager of one of the prime properties has put in his papers and it seems he is going to take with him quite a few of his team members too. You are given the task of averting this crisis by helping hire replacements quickly so that the new incumbents are in place well in time. What will you do? Chances are you will go to your manager and she might give you a few ways to look for the replacements. You may call one of your recruitment consultants and tell them that you are looking for replacements for certain positions. If they are good recruitment consultants they would make sure that they ask you a few questions. Can you send me the F&B manager's job description? What kind of a person are you looking for? What will be their salary? Who will they report to? What will be the growth path for this position in the organization? What kind of skills and knowledge does they need to have? Considering that there is no help that you can get with the current HR processes what will you do? You will do something to figure out what are the knowledge, skills and abilities required to do the job of an F&B manager. You will also look for all additional information which will help you decide who the ideal occupant of the position will be. All that you did will actually constitute a job analysis.
Job analysis is a systematic process of determining the knowledge, skills and abilities required for performing jobs in an organization. Knowledge refers to an organized body of information, which applies directly to the performance of the function, for example, a software engineer should have the knowledge of the technology in which they would be required to work. Skill is the proficiency to perform a certain task. For example, a secretary should have the ability to book and cancel tickets online. Abilities are an underlying, enduring trait useful for performing tasks. For example, an analyst should have the ability to comprehend, assimilate and present large amounts of data as information. It also examines a job's mental and physical requirements; the environment where work is carried out and the job's primary and secondary functions.
Job analysis is a systematic process of determining the knowledge, skills and abilities required for performing jobs in an organization.
Figure 3.4 Job analysis information hierarchy
As a result of job analysis, the following basic information about a job is collected:
Job analysis, as explained in Figure 3.5, is performed on three occasions:
Step 1: |
Planning the job analysis |
Step 2: |
Preparing and introducing job analysis |
Step 3: |
Conducting the job analysis |
Step 4: |
Developing job descriptions and job specifications |
Step 5: |
Maintaining and updating job descriptions and job specifications |
Figure 3.5 Stages in the job analysis process
There are two parts to the planning of the job analysis.
The preparation and introduction of job analysis involves three things to be done.
Conducting the job analysis has two parts to it and both are very exhaustive and need a lot of detailing and hard work.
The job descriptions and the job specifications have to be updated time to time whenever there are new jobs which come up or the nature of jobs changes. There should be a system laid down to revisit these as and when required. The best way to make this happen is to include these documents as a part of day-to-day HR activities. For example, job descriptions should be used to share the details of a job with potential candidates inside and outside the organization. As they are in use regularly they would be revised as and when required.
In order to make the job analysis exercise a success, the line managers, employees and the human resource managers should participate in strategic planning (Table 3.3).
Table 3.3 Role of line managers, employees and human resource managers in strategic planning
Line Managers | HR Managers | Employees |
---|---|---|
■ Work with HR managers to determine whether the jobs need to be analysed or re-analysed ■ Help decide who in the team should conduct the job analysis ■ Help identify employees to participate in job analysis ■ Provide necessary inputs to the job analyst ■ Participate in job analysis through interviews and questionnaires or other job analysis methods ■ Facilitate with the team to participate in the job analysis exercise ■ Understand how job analysis aids other HR processes |
■ Communicate with line managers and employees about the importance of the job analysis exercise ■ Work with line managers to determine whether and which job needs to be analysed or re-analysed ■ Serve as the job analysis expert or help in choosing the right external vendor ■ Review job descriptions and job specifications from time to time with employees and line managers to keep it updated ■ Keep oneself informed of current trends in the field ■ Use job analysis results for career planning |
■ Understand importance of job analysis ■ Provide accurate information for the job analysis process ■ Participate in job analysis through interviews and questionnaires or other job analysis methods ■ Adapt to the changing nature of the job and be flexible in performing new assignments ■ Help line managers and HR know when there is a change in the job content ■ Use the job analysis information to make a career choice and plan career |
Source: Adapted from Jackson et al. (2001).
Effective analysts should:
There are two ways to classify the methods of doing job analysis:
– Sampling
– Employee diary/log
– Critical incident technique
– Position Analysis Questionnaire (PAQ)
– Management Position Description Questionnaire (MPDQ)
– Work Profiling Systems (WPS)
– Multipurpose Occupational Systems Analysis Inventory-closed Ended (MOSAIC)
– Fleishman Job Analysis Survey (FJAS)
– Functional Job Analysis Scales
– O* Net Content Model
Qualitative Job Analysis Techniques |
Quantitative Job Analysis Techniques |
---|---|
■ Interview |
■ Functional job analysis |
■ Observation |
■ Position analysis questionnaire |
Job-oriented |
Worker-oriented |
■ Task analysis |
■ Position analysis questionnaire |
■ Functional job analysis |
■ Critical incident technique |
In this method, the job analyst observes the individual performing the job and takes notes to describe the tasks and duties performed. This method of collecting information lets the job analyst see the work environment, tools and equipment used, interrelationships with other workers and complexity of the job.
In the observation method the job analyst observes the individual performing the job and takes notes to describe the tasks and duties performed.
This method is suited for jobs which:
The advantage of this method is that the job analyst can get firsthand knowledge and information about the job. It overcomes the bias which might come in if information is collected from a person (either employee or manager). The down side is that the presence of an observer, i.e., the job analyst may affect the worker causing them to alter their normal work behaviour. It is therefore important for the analysts to be unobtrusive while making their observations.
Some jobs in which the observation method is successful include that of a flight attendant, machine operator, skilled crafts worker and a bus driver.
The work sampling method allows the job analyst to determine the content and pace of a typical workday through a statistical sampling of certain actions rather than through continuous observation of all actions.
Work Sampling. This is another type of observation which does not require continued attention during the entire course of the individual's work. This method allows the job analyst to determine the content and pace of a typical workday through a statistical sampling of certain actions rather than through continuous observation of all actions. This method is useful in analysing jobs which are repetitive in nature.
The employee diary/log requires employees to do self-observation by keeping a log or a diary of all job duties done during the course of specified time.
Employee Diary/Log. This is yet another type of observation method which requires employees to do self observation by keeping a log or a diary of all job duties done during the course of a specified time period. This would capture all the tasks and duties the employee performs and also the frequency with which the tasks are performed.
One of the most important requirements for developing a system of job analysis is to establish a clear and specific set of definitions for these job elements in behavioural terms. The American Institute for Research carried out a series of projects on this problem. The first of these was a study undertaken by Wagner which was to define the requirements of aircrew jobs in terms of specific job elements. As a part of the job analysis several thousand critical incidents were gathered from aircrew members. These were then classified into 24 job elements. These job elements were then grouped under the four area headings: (1) learning and thinking; (2) observation and visualization; (3) sensory-motor coordination and (4) motives, temperament and leadership.
Critical Incident Technique. The CIT is an interview technique used to investigate actual incidences of on-the-job behaviour. A critical incident is an event that has actually happened, had an effect that is of crucial importance for being successful in the job, is not frequently occurring, is relatively short-lasting, has directly involved the respondents themselves and has happened not too long ago. The technique consists of a set of procedures for collecting direct observations of human behaviour which lead to either success or failure at a task. An example could be dealing with a serious complaint of a customer. The incidents are recorded as notes, stories or anecdotes about how a job holder handles certain situations and from these a composite picture of job behaviour is built up. The interview can be structured so that nothing is missed out. It can begin with an introduction by the interviewer in which they explain the goal and approach, the technique and the follow up after the interview. The interviewee can then be asked to describe globally several critical incidents. The incidents should be related to job objectives. Incidents with both positive as well as negative outcomes should be included. The interviewer can then probe the situation for role and the judgement of the person involved. The analysis of the behaviour will then lead to the personal attributes involved.
The CIT is an interview technique used to investigate actual incidences of on-the-job behaviour.
Interviewing is one of the most popular methods used in job analysis. The interview can be used to collect information from the job holder or the manager or at times from the subordinate too. These interviews can be structured or unstructured.
Structured or unstructured interviews can be used to collect information from the job holder or the manager or at times the subordinate too.
An example of how a critical incident (Cascio 1995) is recorded:
‘On January 14, Mr. Vin, the restaurant's wine steward was asked about an obscure bottle of wine. Without hesitation, he described the place of vintage and bottling, the meaning of the symbols on the label, and the characteristics of the grapes in the year of the vintage.’
Unstructured. In an unstructured interview, the job analyst asks questions which appear free flowing but actually have the objective about what all information has to be collected clearly in mind. The job analyst probes the responses to develop clarity of the details of the job. They have to continuously keep taking notes without losing eye contact with the interviewee—this can be a major challenge. In order to not get distracted and keep the discipline in the line of the interview, the job analyst has to be very skilled at doing this.
Structured. In a structured interview, the job analyst may follow a definite format involving charting a job-holder's sequence of activities in performance or have an inventory or questionnaire. While this may ensure that all important aspects are covered, a structured interview does not allow the job analyst to probe.
These interviews can be one-to-one, group interviews or panel interviews. The advantage of this method over the observation method is that it lets the job analyst collect information on aspects of the job which is not observable. However, the disadvantage is that it is very time consuming. Moreover, as a method it has to depend on the details obtained from others, hence, there are chances that the job may be overstated or understated by the interviewee. A lot depends on the skill of the interviewer too. The quality of the job analysis will be a function of his ability to develop a rapport with the interview, his ability to interpret, analyse and probe while taking the interview. Hence, it is not advisable to use it as the sole method to do job analysis.
Job Analysis Interview Checklist
The points which need to be essentially covered in a job analysis interview are:
What is your job title?
Whom do you report to?
Who reports to you?
Why does your job exist? What are you expected to do?
What are your main areas of responsibility (this may also be referred to as key result area, principal accountability or main tasks)?
Describe what you have to do, how you do it and how does your doing the job affect others?
What are the dimensions of your job? How do you define the size of your job? (as in sales target, number of items produced, number of people managed etc.)
How does your job fit in with the jobs in your department and outside your department?
How flexible are you required to be to deliver in your job?
How is your work appraised and reviewed?
How much of decision-making authority do you have?
What are the contacts that you are required to make inside and outside your organization?
Are there any difficulties in your work environment in terms of physical strain or unearthly hours of work?
What are the major problems or difficulties you encounter in your job?
What knowledge and skills do you need to do your job?
The questionnaire is a widely used method to collect data about jobs. A questionnaire is a survey instrument which is developed and given to employees and managers to complete. The major advantage of this method is the ease of administration and the short time in which a large body of data can be collected. However, the downside is that it assumes that the employees and the managers can correctly analyse and communicate information about the jobs. For this reason, it is a good idea to use this method in conjunction with another method like interviewing.
Some of the popular job analysis standard questionnaires are described below.
A questionnaire is a survey instrument which is developed and given to employees and managers to complete.
Position Analysis Questionnaire (PAQ). It can be applied to the behaviour and activities of all workers/employees irrespective of their specific jobs they perform. Created by Ernest J. McCormick (1972), it was based on two assumptions: (1) a relatively small set of behaviours is common to all jobs and (2) all jobs can be described in terms of how much they involve each of these behaviours. Keeping the above two assumptions in mind McCormick developed a structured questionnaire comprising 194 statements that describe the worker behaviours. Each statement is rated on skills such as the extent of use, importance of the job and the amount of time spent in doing the job. The items are organized into six divisions:
The PAQ (Position Analysis Questionnaire) can be applied to the behaviour and activities of all workers/employees irrespective of their specific jobs they perform.
Each job element is rated on six scales: extent of use, importance, time, possibility of occurrence, applicability and a special code for certain jobs. A part of the PAQ is given as an illustration.
Management Position Description Questionnaire (MPDQ). This is a standardized questionnaire designed to analyse managerial and executive jobs. It is very comprehensive consisting of 250 questions. The instrument has to be completed by managers themselves. There are six dimensions along which the questionnaire is designed. These are—decision-making, problem solving, organizational impact, human resource responsibility, know-how and contacts. The rating scales for the MPDQ are not precise and require the responses of several managers to describe a job reliably at the item level. MPDQ is one of the first computer-based job analysis system and is able to give wide ranging reports in a graphical manner for easy analysis.
The MPDQ (Management Position Description Questionnaire) is a standardized questionnaire designed to analyse managerial and executive jobs.
Information Input
Sources of job information—Visual Sources of job information
Rate each of the following items in terms of the extent to which it is used by the worker as a source of information in performing their job, where 1 = Nominal/Infrequent; 2 = Occasional; 3 = Moderate; 4 = Considerable and 5 = Very Substantial.
1 |
Written material (books, reports, office notes, articles, job instructions, signs etc.) |
2 |
Quantitative materials (materials which deal with quantities or amounts, such as graphs, accounts, specifications, table of numbers etc.) |
3 |
Pictorial materials (pictures or picture-like materials used as sources of information, e.g., drawings, blueprints, diagrams, maps, tracings, photographic films, X-ray, TV pictures etc.) |
4 |
Patterns/related devices (templates, stencils, patterns etc., used as sources of information when observed during use; do not include here materials described in item 3 above) |
5 |
Visual displays (dials, gauges, signal lights, radarscopes, speedometers, clocks etc.) |
6 |
Measuring devices (rules, calipers, tire pressure gauges, scales, thickness gauges, pipettes, thermometers, protractors etc. used to obtain visual information about physical measurements, do not include here devices described in item 5 above) |
7 |
Mechanical devices (tools, equipment, machinery and other mechanical devices which are sources of information when observed during use or operation) |
8 |
Materials in process (parts, materials, objects etc., which are sources of information when being modified, worked on, or otherwise processed, such as bread dough being mixed, workpiece being turned in a lathe, fabric being cut, shoe being resoled etc.) |
9 |
Materials not in process (parts, materials, objects etc., not in the process of being changed or modified, which are sources of information when being inspected, handled, packaged, distributed or selected etc., such as items or materials in inventory, storage or distribution channels, items being inspected etc.) |
10 |
Features of nature (landscapes, fields, geological samples, vegetation, cloud formations and other features of nature which are observed or inspected to provide information) |
11 |
Man-made features of environment (structures, buildings, dams, highways, bridges, docks, railroads and other ‘man-made’ or altered aspects of the indoor or outdoor environment which are observed or inspected to provide job information; do not consider equipment, machines etc., that an individual uses in his work, as covered by item 7) |
Note: The 194 PAQ elements are grouped into six dimensions. This exhibits 11 of the ‘information input’ questions or elements. Other PAQ pages contain questions regarding mental process, work output, relationships with others, job context and other job characteristic.
Work Profiling System (WPS). WPS contains a structured questionnaire which measures ability and personality attributes in areas such as hearing skills, sight, taste, smell, touch, body coordination, verbal skills, number skills, complex management skills, personality and team role. There are three versions of this questionnaire based on the type of occupations, i.e., managerial, service and technical occupations. The questionnaire is available in pencil and paper as well as electronic forms.
WPS contains a structured questionnaire which measures ability and personality attributes in areas such as hearing skills, sight, taste, smell, touch, body coordination, verbal skills, number skills, complex management skills, personality and team role.
Multipurpose Occupational Systems Analysis Inventory-closed Ended (MOSAIC). This is a questionnaire which contains 151 job tasks rated in terms of importance for the effective job performance and 22 competencies rated in terms of importance and required proficiency.
Common Metric Questionnaire (CMQ). The CMQ has five sections:
The CMQ is a relatively new instrument. It has been field tested on 4,552 positions representing over 900 occupations in the Dictionary of Occupational Titles (DOT), and yielded reasonably high reliabilities (Harvey 1993).
Fleishman Job Analysis Survey. Another job analysis methodology—the Fleishman Job Analysis Survey (FJAS), contains a taxonomy of abilities that include 52 cognitive, physical, psychomotor and sensory abilities. The FJAS uses level of ability rating scales that specify level of functioning requirements for jobs.
Functional Job Analysis Scales. The most recent version of FJA uses seven dimensions to describe what workers do in jobs. These seven dimensions are—(1) Things, (2) Data, (3) People, (4) Worker instructions, (5) Reasoning, (6) Math and (7) Language. Each scale has several levels that are anchored with specific behavioural statements and illustrative tasks.
O*Net Content Model. To understand the O*Net Content model it is important to understand the Dictionary of Occupational Titles (DOT). DOT is a comprehensive list of all jobs prepared by the US Department of Labour. Their definition of each job had seven basic parts to it. The seven basic parts were:
In 2003, they refined and updated this 60-year-old database and the result was the O*Content model. The O*Net database provides descriptors for more than 1,100 occupations. Each occupation has more than 300 descriptors. These descriptors are job-oriented descriptors or worker-oriented descriptors.
There is no best way for doing a job analysis (Ash 1988; Dunnette 1976; Levine et al. 1988). Every method has its own strengths and weaknesses. A way of overcoming specific shortcomings of separate methods is to combine different approaches in one procedure. An approach that leads to good results in practice is using interview techniques with more structured job analysis systems.
Questionnaire for Job Analysis
Job Analysis Information Sheet
Job Title _____ |
Date___________ |
Job Code____ |
Dept. _________ |
Managers Title ____ |
Hours worked ___ |
Job Analyst's Name ___ |
Date: _______ |
What is the job's overall purpose?
___________________________________________________________
If the employee supervises others, list them by job title;
___________________________________________________________
Check those activities that are part of the employee duties.
Describe the type and extent of supervision received by the employee
_____________________________
Job duties: Describe briefly what the employee does and, if possible, how he/she does it. Include duties in the following categories
Regular / Daily duties _____________________________________________________________
Periodic duties _____________________________________________________________
Duties performed at irregular intervals___________________________________________________
Is the employee performing duties he/she considers unnecessary? If so, describe.________________________
Is the incumbent performing duties, not presently included in the job description? If so, describe.
_________________________________________________________
Education—Tick mark the box that indicates the educational requirements for the job.
Experience—Check the amount of experience needed to perform the job.
Location: Check location of job.
Have performance standards been established? If so, what are they?
__________________________________________________________
Are there any personal attributes (special aptitudes, physical characteristics, personality traits etc.) required by the job?
__________________________________________________________
Are there any exceptional problems the employee might be expected to encounter in performing the job under normal conditions? If so, describe.
__________________________________________________________
Describe the successful completion and/or end results of the job.
_________________________________________________________
To what job would an employee expect to be promoted?
__________________________________________________________
Source: Adapted from Jackson et al. (2001).
Research by Levine et al. (1983) has pointed out 11 practical issues that need to be considered prior to using a particular method:
The job analysis captures a lot of information about the job. It collects information about the duties and tasks (basic unit of work) to be performed, its frequency, duration, effort, skill, complexity etc. It captures details of the environment in terms of the physical requirements of the job and the presence of adverse work conditions and the absence of basic comforts. It outlines the tools and equipments required to deliver on the job safely. It also articulates the relationships with people internal and external to the organization. Finally, it captures from various sources the knowledge skills and abilities to perform the job effectively. All this information which the job analysis collects can be succinctly presented in two documents. These are job description and job specification.
A job description is simply a clear concise depiction of a job's duties and responsibilities.
A job description is simply a clear concise depiction of a job's duties and responsibilities. It refers to a well-articulated document that describes the duties and responsibilities of the job. Hence, the information obtained through the job analysis exercise is important for the job description. A job description should emphasize what the employees are expected to do, how they are to do it and the circumstances under which the job is to be performed. They are written statements in most documents that govern the employment relationship.
A job specification is a statement of the knowledge, skills and abilities needed to do the job.
A job specification is a statement of the qualifications needed to do the job. The qualification is in terms of the knowledge, skills, abilities, education and previous experience and any other physical and mental requirements and/or the working conditions. Cutoff scores on tests, credentials, licenses, degrees, previous experience are all a part of job specifications.
In theory, job description and job specifications are two separate documents (as described in Table 3.4)—however, when they are prepared in organizations they are usually merged into one and called job description. Different organizations design it differently but usually a job description consists of the following sections:
Table 3.4 Differences between job description and job specification
Job Description | Job Specification |
---|---|
■ It is a statement in which purpose, scope, duties, task and responsibilities of a job are summarized |
■ It is a statement which indicates the qualifications and qualities required for an employee to be successful at their job |
■ Analysis of tasks, activities working conditions and accountability of a particular job |
■ Analysis of abilities, characteristics and qualifications of an employee |
■ Job description is focused on the task |
■ Job specification is focused on the qualities of the employee |
Sample Format of Job Description for an NBFC
Job Description
Organization: |
Working Unit: |
Data: |
Job Title: |
Reporting To: |
Approval: |
Credit Officer: |
Unit Manager/Regional Credit Manager: |
|
Purpose
Responsible for underwriting various types of loans (personal loans, mortgage, two-wheeler/auto, consumer durable etc.) for retail business as per company policy.
Key Accountabilities |
Key Performance Indicators (KPI) |
---|---|
1. Enforcement and adherence of the company credit policy at the branch |
1. Delinquencies of the underwritten portfolio |
2. Review and approval of credit files as per policy |
2. Losses of the underwritten portfolio |
3. Personal discussion with customer for credit assessment |
3. Turnaround time |
4. Tele verification of references/customer |
4. Approval/Reject Ratio |
5. Approval of deviations as per policy. |
5. Overall Branch Profitability |
6. Review portfolio with respect to delinquency/losses/fraud of the portfolio underwritten. |
|
Job Specification:
Educational Qualifications: Graduate (Minimum Qualification)
Professional Experience
Competencies Expected
Job analysis generates a lot of information about a job. The information can be used as it is or interpreted in a relevant manner for designing and improving HR processes. Hence, job analysis is the foundation for many HR processes to be done well (Figure 3.6).
– Organization design
– HRP
– Job design
– Career planning
– Recruitment
– Selection
– Socialization
– Developing processes
– Learning and development
– Performance standard
– Legal requirement
– Employee relations
Whenever an organization has to redesign itself into a new way, the first question which needs to be answered is who does what and how are people related to in the current organization and who can do what and how can people be related to one another in the new organization. This information is obtained from job analysis. Coupled with departmental objectives and organizational charts organizational design can be achieved.
Broadbanding. When many jobs are grouped into smaller set, it is known as broadbanding, it involves clustering of jobs or job families into a smaller set. Companies do this to simplify the organizational structure, eliminating the number of job titles and keep a wider basket for the company's compensation. It helps in collapsing multiple pay grades, with narrowly defined pay ranges into fewer salary grades with more pay potential. Flatter and broader pay scales are more appropriate to flatter organizational structure.
A review of the job description information can be useful in concluding redundant positions in the organizational chart and thus help in planning for resources required in the future.
Figure 3.6 Job analysis: A basic HRP tool
Job design deals with the allocation and arrangement of organizational work activities and tasks into sets where a singular set of activities constitutes a job and is performed by the job incumbent. Job design receives a lot of attention for three reasons: (1) it affects the performance, (2) it affects the job satisfaction and (3) it affects the physical and mental health of the person. Job analysis information contains feedback on all these three dimensions. Therefore, job analysis can be used to redesign jobs and how jobs relate to one another.
The information obtained from the job analysis can be collated into job families which help in career planning.
Job Family. This refers to a group of jobs that can be treated as similar or are clubbed together for administrative purpose. At times, it could also refer to higher-level jobs categorized by knowledge skills and competencies and they also help in enlarging the scope of work and aid in providing promotional opportunities in the long run.
The term ‘job family’ refers to a grouping of jobs that handle similar types of work and require similar types of training, skills, knowledge and expertise. Some job families have more jobs in them than others, and those with many jobs may have specialty areas. In all cases, a job can only reside in one job family. Jobs in the same job family may reside in the same department or in different departments.
Job classification is the arrangement of jobs into classes, groups or families according to some systematic schema. Traditional classification schemes have been based on organizational lines of authority, technology-based job/task content and human behaviour-based job content.
Job evaluation is a procedure for classifying jobs in terms of their relative worth both within an organization and within the related labour market. It is used to determine compensation.
Job enlargement refers to the increase in number and variety of tasks in a job. It is also referred to as horizontal job loading. With job enlargement a worker might find themselves juggling between multiple priorities.
Job enrichment is referred to as vertical job loading because the job holder takes on a higher level of responsibility.
Job involvement is the degree to which individuals identify psychologically with their work. It also refers to the importance of work to a person's self image.
Job rotation is the temporary switch of assignments. Its intention is to train the worker in doing a variety of tasks.
Job shadowing is a work experience option where students or trainees learn about a job by walking through the work day as a shadow to a competent employee. The job shadowing work experience is a temporary, unpaid exposure to the workplace in an occupational area of interest to the student.
Figure 3.7 An illustration of a job family
An Illustration. The example in Figure 3.7 shows the ‘financial’ job family—a large job family with a number of work or specialty areas. Each area of specialty then has jobs.
The organization requires many diverse resources to ensure that its financial operations are planned, managed and carried out effectively. In the above illustration, the staff accountant, the project accountant and the manager accounting are all jobs within the accounting specialty, but each may report to a different department. The staff accountant may be a part of the accounts department. The project accountant may be allocated to a project being implemented for a client somewhere. The manager accounting may be a part of the corporate planning department.
What these jobs have in common is that they all handle work that relates to accounting for the organization's funds, including analysing, monitoring, preparing and reconciling financial information in their area of responsibility. Each incumbent requires skill, knowledge and expertise in accounting theory, principles and practices.
Career planning is an attempt by an employee to become more aware of their skills, values, interests, choices and opportunities.
Career path is the sequence of work positions or roles that a person holds over the span of a lifetime. Career paths can take many different paths as there are people. They can include upward as well as lateral movement.
When jobs are clubbed together in job families—an exercise like this helps organizations to show a logical progression that careers might take if they continue to stay in the organization for a good number of years. Using job analysis, employees can identify a logical progression of jobs that they could move to if they wanted to climb the corporate ladder.
The documents which get prepared after the job analysis are useful documents for individuals who have responsibilities in the day-to-day operations of the organization. These activities include recruitment and selection, orientation of the new employee, learning and development and for developing different kinds of processes and procedures.
Recruitment requires HR to attract the right candidates from the talent pool available for a certain job. A clearly defined job specification would enable the recruiters to decide the source of their recruitment. Clearly articulated requirement in terms of qualification, length and nature of experience is helpful in all recruitment activities such as designing a recruitment advertisement, giving information about the open position to executive search firms and also on career web sites as well as social networking sites. The quality and the clarity of the information would be reflected in the quality of the talent that the organization is able to attract. The information in the job description would also enable the recruiter to give a clear picture of the job and what it entails to an interested candidate.
The selection process intends to select the best person for a job. The design of the selection tools have to, therefore, keep the contents of the job specification in mind so that each specification gets tested.
The job description is the first interface that a new employee has with an organization. In order that the new employees succeed it is important that they understand what is expected from them and how their job fits in with the rest of the organization.
Many jobs need to have a specific procedure to be followed to be done well. These procedures need to outline step-by-step actions that the employee needs to take. The duties within a job description provide a starting point for the development of procedures.
Once the applicant has the requisite KSAs and qualification, they get hired, but, in case the company feels they need to enhance their skill set or increase their responsibility or there is some new learning initiative or new technology involved, they would need to get trained accordingly. Hence, this should assess the employee in bridging the gap, also enhancing the necessary skills to a superior level of responsibility.
Employees in organizations should be evaluated in terms of how well they perform their duties and whether they have achieved all that has been indicated in the job descriptions, i.e., goals and achievements. A good job description outlines the performance standards of the job too. This can prove to be a starting point for a conversation around performance.
Job analysis outlines all details of a job. For any statutory compliance that gets to a court the basic document to defend it is the job description which outlines the content, working condition etc. A quality job description also provides a sound base for determining the comparable worth of jobs and for establishing employment and performance standards. In countries like the USA where Fair Labour Standard Act (FLSA) and American Disabilities Act (ADA) have to be complied with, the job analysis documents form the basis for many decisions.
A key labour principle is ‘equal pay equal work’. Job descriptions and then job evaluations provide a sound basis for the pay decision.
Decline in Job Analysis
Do organizations actually follow job analysis, nowadays? In fact, most HR professionals find it a waste of time, effort and energy, in fact the latest generation of human resources professionals, do not even know what ‘job analysis is all about’. In some organizations such as TCS, Reliance Communications and Vodafone changes occur so frequently that traditional job analysis is close to impossible. Job requirements are also hard to specify because companies expect employees to do ‘whatever the customer wants’. In such a scenario, job analysis will have to be dynamic and fluid. Nevertheless job analysis will not completely disappear, but procedures used are likely to evolve to meet the change in current work demands. The traditional use of job analysis will hold relevance only if:
Other organizations will have to use modified approaches to job analysis to capture new forms of work, and use it for a variety of purposes.
Changing Purpose of Job Analysis
The basic purpose of the job analysis exercise is the collection of all relevant information about the job. That primary purpose still stays the same. However, the use that this information is put to has changed. In his work on job analysis for the future, Sanchez (1994) suggests a shift in name from job analysis to work analysis. This indicates the trend that the focus is moving from a ‘job’ to ‘work’ which has been distributed between multiple positions. This information collected about the work would be useful in designing skill-based pay programmes to facilitate organizational readiness for the future and to identify task interdependencies and workflows.
Changing Job Analysis Methods
While the tools to collect information largely stay the same the audience from whom information is collected is broadening. Earlier it was only the job holder, the supervisor and the subordinate who gave inputs to the process of job analysis—now others who are getting included into this ambit are customers, technical experts and the people designing the work of the future in their analytical process. The focus of the analysis is also shifting from just the job to work and also to broad attributes which ensure success in an organization. A lot of analysis is also being done of jobs which would be the result of a planned change exercise to facilitate change management.
Flowcharting is getting utilized in the collection of work information (Sanchez 1994). Flowcharting enables analysts to connect the work performed by multiple people, rather than limiting their scope to within the boundaries of a single job.
Job analysis or work analysis as it is increasingly turning too will continue to generate enough information to modify the designs of organizations and work processes to make their management easier and more effective.
Source: Adapted from May (2011).
JC Penny
The retailer JC Penny implemented a job content based philosophy to move away from a culture that encouraged internal promotions driven by longevity rather than real changes in job content. JC Penny took the following steps to implement the approach.
JC Penny found that it:
The Compensation Director Donna G. credited this system with moving its culture from being a pay and tenure based to one based on accountability and results.
Source: Adapted from Jensen et al. (2007).
Workforce Analytics
According to recent studies by McKinsey, the biggest focus for management in the next decade is vying for top talent in an intensively competitive global marketplace. It will become increasingly important that organizations use the data that they have about their employees to stay on top of the situation and not be met by any unpleasant surprises. Technology is now being leveraged in a big way to analyse and optimize the workforce through a category of software known as Workforce Analytics. Workforce analytics is actually predictive analytics which can help in anticipating the result of an HR strategy well in advance. It can test various scenarios and thus anticipate the result of a strategy well in advance and also select the best possible course. These are the some things that it can do for you:
Data mining: It can delve into huge volumes of data to detect patterns and indicators. It helps in answering questions like—What is the time after which a management trainee tends to resign and go away? Who is likely to leave in the next six months? Did a change in the benefits package reduce attrition? What impact would it have if I start hiring from small towns and give the big cities a miss?
Operations research (OR) systems: It uses sophisticated mathematical programming capabilities to gauge the interdependence of a multitude of factors/variables within the organization. The purpose is to identify the combinations of variables that will produce the best results, within resource limitations and other restrictions. For example: ‘How should we decide on salary increments so that we achieve the best combination of internal and external pay equity?’
Forecasting capabilities enable managers to do accurate HRP which would mean both headcount as well as the profile of skills which might be required in the future.
Descriptive and predictive modelling enables managers to analyse the past and look forward to spot trends in absenteeism, attrition or performance.
Text mining enables you to investigate large volumes of free-form documents. You could scourge e-mails, appraisal reviews, employee profiles and use that knowledge to do any of the processes described above.
Discrete event simulation modelling helps in putting different events together to derive a pattern out of them. Thus this enables you to measure and assess potential employee behaviours and outcomes under various different scenarios, before you take action.
Source: Adapted from Guthridge et al. (2008).
The James Company is a large, decentralized multinational with divisions and subsidiaries throughout the world. Each operating company does its own planning, while the CEO has the job of conceptualizing corporate strategy. A small staff with expertise in various functions turns these concepts to plans.
The company's HRP is likewise decentralized and informal, discussions and minimal reporting constitute the HRP process. An international skills group works with the company to coordinate skills inventories. HR planners and planners from other related functions meet all over the world through the company's personnel network to discuss human resource issues.
HRP at the corporate level focuses on policy development in key areas: (1) the identification and appointment of senior managers to implement business strategies, (2) the incorporation of people-related information into strategic, operational and succession planning and (3) the design and review of personnel polices to support strategy implementation.
Human resources building blocks used at the corporate level and by the individual companies include headcount planning and development programmes. These are not formally related to the strategic planning process, which focuses on management-succession planning and the skill inventory too.
Managers receive profit and loss responsibilities early in their careers and their potential for future growth is measured by how well each of the units perform.
Source: Adapted from Mills (1985a).
Introduction
The banking industry in India underwent a major transformation due to the changes in economic conditions and continuous deregulation. These multiple changes happening one after other has a ripple effect on banks trying to graduate from completely regulated seller market to completed deregulated customers market. The challenges in the people space were also many. Some of them were
A top consulting company was commissioned by a public sector Indian bank to identify the knowledge, skills, abilities and other personal characteristics or competencies for job performance for their executives and managers. The consulting organization after a preliminary study of the organization identified a set of objective which if achieved would take the bank forward.
The identified objectives were:
The methodology they followed:
Results they achieved:
Questions
Critically analyse the methodology the consulting firm followed.
Is there any other approach they could have used to achieve the mandate given by the company?
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