CHAPTER TWO

2. Job Analysis and Human Resource Planning

2.1 Job Analysis

2.1.1 Job Analysis Terminologies
1. Job – is a group of related activities/ positions that are similar in their duties or it is a
collection of tasks, duties and responsibilities, which as a whole, is regarded as a regular
assignment to individual employees and which is different from other assignments. E.g.
accountant, manager, clerk, compensation specialist etc. A job may include many positions.
2. Positions – is a group of tasks or a particular set of duties assigned to an individual.
3. Task – is coordinated and aggregated series of work elements used to produce output.
4. Job analysis is a systematic analysis of each job for the purpose of collecting information as
to what the jobholder does, under what circumstances it is performed and what qualifications
are required for doing the job, relationship to other jobs physical demand environmental
conditions. Job analysis deals with complete study of the job embodying every known and
determinable factor, including

- The duties and responsibilities involved in its performance.

- The condition under which the work is carried.
- The nature of the task.
- The qualification required by workers and
- The condition of employment.

An analysis of the job to be done (i.e. an analytical study of the tasks to be performed to
determine their essential factors) written into a job description so that the selectors know what
physical and mental characteristics applicants must possess, what qualities and attitudes are
desirable and what characteristics are a decided disadvantage.

The information collected through job analysis relates to the job and the jobholder. The
requirements relating to the job are termed as job description whereas the qualities demanded
from jobholders are known as job specifications.

1|
The ultimate purpose of job analysis is to improve organizational performance and productivity.
Job description and Job specification are the immediate products of job analysis.

2.1.2 Which job is to be analyzed?

- When an organization is established

- When a new job is created,
- When a job is changed due to:
 new technology, methods, procedures, systems
 When the organization contemplates on a new compensation plan.
2.1.3 Steps in job analysis

There are six steps in doing job analysis.

1. Select jobs to study: These areas can be decided on the bases of the need, priorities, and
constraints of particular organization.
2. Determine information to collect: tasks, responsibilities, skill requirements etc.
3. Identify source of data:
 employees - Actually perform the job, possess firsthand knowledge about the elements &
activities involved in jobs.
 Supervisor - Supervise the employees while the job is being done; Deal with the
problems that arise while the job is being performed.
 Persons specializing in job analysis are appointed to watch the employees performing the
job, they systematically record the activities involved in a job.
4. Select data collection method: There are several methods to collect job analysis
information. These are:
1. Observation – under this method, data is collected through observing an employee while
at work. The job analyst on the bases of observation carefully records what the worker
does, how he/she does and how much time is required for completion of a given task.
This is the most reliable method of seeking firsthand information related to a job. This
method is suitable for jobs that consists primarily of observable physical activity and
short job cycle activities. This not suitable for unobservable mental activities.

2|
 2. Interview – in this method the job analyst directly interviews the job holder through a
structured interview form to elicit information about the job. It is suitable when direct
observation is not possible. This method is time consuming and costly, when the job is
complicated in nature and requires longer interview.
3. Questionnaire – it is desirable data collection method especially where the number of
people doing the same job is large and personal interview is difficult, and where giving
enough time to employees is desirable to enable them to fill the required information
appropriately. Questionnaires are two types: open ended and close ended. An open-ended
question makes the job holder to answer questions in their own way and close ended
questions contains questions having a given alternatives.
4. Check list – the checklist method of job data collection differs from the questionnaire
method in the sense that it contains a few subjective questions in the form of yes or no.
the job holder is asked to tick the questions that are related to his/her job.
5. Critical incidents – this method is based on the job holders past experience and incidents
related to the job.
6. Diaries – the job analyst seeks job related personal records of the job holder. It is
appropriate when the job holder records judiciously.
5. Evaluate and verify data collection by other employees and managers: Verify the job
analysis information with the worker performing the job and with his or her immediate
supervisor. This review can also help gain the employee’s acceptance of the job analysis data
and conclusions, by giving the person chance to review and modify their description of the
job activities.
6. Write job analyses report/develop a job description and job specification.
 Job description – It is factual and organized statement describing the job in terms of its
title, location, duties, responsibilities, working conditions, hazards, and relationship with
other jobs. It tells us what to be done, how it is to be done and why. The main objective of
job description is to differentiate a given job from other job and to set out its outer limits.
Job description is an important document as it helps to identify the job and give a clear
idea of what the job is.
 Contents of job description
1. Job identification: Job title, code number of the job, department or division where the

3|
 job is located. This part of job description helps to identify and designate the job.
2. Job summary: It describes the contents of the job in terms of activities or tasks
performed.
3. Job duties and responsibilities: It is the heart of job description. It describes the
duties performed along with frequency of each major duty and responsibilities
concerning custody of money, supervision, training of staff, etc. are also described in
this part.
4. Working condition: The physical environment of the job is described in terms of
heat, light, noise level, dust, etc. Nature of risk and hazards and their possibility of
occurrence are also given.
5. Social environment: Size of work group and inter-personal interactions required to
perform the job are given.
6. Machines, tools and equipment: The name of major machines, equipment, and
materials used in the job are described.
7. Supervision: The extent of supervision given or received is stated in terms of persons
to be supervised along with their job titles. Designation of immediate superior and
subordinates may also be described.
8. Relation with other jobs: The jobs immediately, above and below are mentioned. It
provides an idea of vertical workflow and channel of promotion. It also indicates to
whom the jobholder will report and who will report to him/her.
 Job Specification - It is a statement of the minimum acceptable human qualities required
for the proper performance of the job. It is a record of the physical, mental, social and
psychological, and behavioral characteristics which a person should possess in order to
perform the job effectively. Physical characteristics include height, weight, vision,
hearing, health, age, hand foot coordination. Mental characteristics consist of general
intelligence, memory, judgment, ability to concentrate, foresight etc. Social and
psychological characteristic include emotional stability, flexibility, personal appearance,
pleasing manner, initiative, drive, conversational ability etc. Other personal characteristics
include sex, education, family, background, job experience, extra-curricular activities,
hobbies, etc. Job specification tells what kind of person is required for a given job. It
serves as a guide in the recruitment and selection processes.

4|
2.1.4 Importance of job analysis information
 Job definition – a job analysis results in a description of the duties and responsibilities of
the job. Such a description is useful to the current jobholders and their supervisors as well
as prospective employees.
 Orientation - Effective job orientation cannot be accomplished without a clear
understanding of the job requirements. The duties and responsibilities of a job must be
clearly defined before a new employee can be taught how to perform the job.
 Employee safety –A thorough job analysis often uncovers unsafe practices and
environmental conditions associated with a job. Focusing precisely on how the job is
done usually reveals any unsafe procedures.
 Manpower planning –It helps in developing labor supply as labor needs are laid dawn
in clear terms. How many and what type of people will be required depends on the jobs to
be staffed.
 Recruitment and selection –Job analysis provides guidance in recruitment and selection
of employees, as specific requirements of the job are laid down in concrete terms. It
provides reliable data on the bases of which the employees are selected.
 Promotion and transfer-Job analysis helps in evaluating current employees for
promotion and transfers. If information about the job is available –employees can be
transferred from one department to another without any complication.
 Compensation –job analysis information is crucial for estimating the value of each job
and an appropriate compensation. Compensation (such as salary and bonus) usually
depends on the job required skills and education level, safety hazards, degree of
responsibility, and so on-all factors you can assess through job analysis.
 Training and development –The job information helps in determining the content,
context and subject matter of training and development program. It also provides what
skill, and knowledges required to perform a job and aware the manager to design training
program to acquire job requirements.
 Performance appraisal –The standard of performance for employees can be set on the
bases of information provided by job analysis and actual performance can be compared
with these standards. It helps the management in judging the worth of employees.

5|
  Job evaluations-Job analysis provide data determining the value of the job in relation
other jobs on the bases of which actual wages for the jobs are fixed. It specifies the
relative value of each job in the organization. It Ranks all jobs in a hierarchy. It Rates
the jobs, not the employees. Job description, job specification & job standards serve as
inputs for job evaluation.

Uses of job Evaluation

- It provides information for developing a compensation package.

- It serves as the basis for fixing a fair & equitable salary & wage structure.
2.1.5 Factors affecting the accuracy of job analysis information

Job analysis information is not always accurate due to different factors. These are:

- Self-reporting exaggerations and omissions by employees and managers.

- Collecting information from a representative sample of employees.
- Capturing all important job information is difficult in ways that:
 Length of job cycle exceeding observation period
 Lack of access to job site for personal observation
 Lack of familiarity with the tasks, duties, and responsibilities of a job
 Ongoing changes in the job.

2.2 Human Resource Planning

Planning is vital to the success of any business and planning for current and future human
resource needs is becoming increasingly important with the global and technological changes
that are occurring.

HR planning is a continuous activity which can be simple or complex, depending on the nature
and size of the organization. HR managers need to employ a systematic process which includes
labor demand forecasting, labor supply analysis and balancing supply and demand. Failure to do
this accurately will result in subsequent staffing problems which will affect organizational
effectiveness.

6|
HR planning is a continuous activity which can be simple or complex, depending on the nature
& size of the organization

Human resource planning involves forecasting the organization’s future demand for employees,
forecasting the future supply of employees within the organization, and designing programs to
correct the discrepancy between the two/scheduling of activities for acquiring, redeploying, and
possibly discarding labor. It seeks to ensure that an adequate supply of labor is available when
required.

Human resource planning is the process of translating over all organizational objectives, plans,
and programs to achieve specific performance of work force needs. The systematic and the
continuing process of analyzing an organization’s human resource needs under changing
conditions and developing personnel policies, appropriate to the long-term effectiveness of the
organization.

The purpose of human resource planning is to ensure that, in the future, the organization has
enough employees with the appropriate skill so that it can accomplish its short and long-term
goals.

2.2.1 Steps in human resource planning

Human resource planning is not a onetime activity. Hence it involves four distinct steps. These
are:

1. Analyzing organizational objectives.

2. Define the skills required to meet objectives. This involves forecasting the requirements
and availability of HR needed by the organization to perform present and future jobs. Two
activities are expected to accomplish in this step:
 Determine the demand for human resource - This step involves considering what the
organization’s HR needs will be in the future. This includes the number of employees that
will be needed, the type of skills that will be required, productivity levels needed to
complete successfully, and so forth. The logical place to begin this process is with an
organization’s business plan (long-term and operational plan). These plans usually
indicate major sales, production, and financial goals. This information tells the human

7|
 resource planner whether volumes will be going up, staying the same, or going down.
From organizational plan we can infer whether or not there will be any change in the basic
technologies the organization uses to make, and distribute its products /services. Such
changes typically are introduced as a means of increasing employee productivity and thus
reducing future human resource requirements. To determine the quantity and quality of
HR needed it is important to foresee:
 Job needs – are activities, tasks, or jobs to be undertaken to accomplish
organizational objectives which are determined through job analysis.
 Job volume – the number of employees and skill categories required to carry out
organizational objectives effectively and efficiently.

Demand forecasting techniques

 Expert estimate- The opinions (judgments) of supervisors, department managers,

experts, or others knowledgeable about the organization’s future employment needs.
It is a qualitative demand forecasting technique and also named managerial
estimation. It is an expert or a group of experts forecasting organizational demand for
employees based on their prior experience, or subjective/personal judgments. Another
method Delphi technique is important to decrease the subjectivity of forecasts by
soliciting and summarizing the judgments of a preselected group of individuals. The
final forecast represents a composite group judgment.
 Trend analysis –it is a quantitative technique and forecasting labor demand based on
an organizational index/a business factor such as sales, profitability index, production
index etc. previous information is important for this type of demand forecasting.
 Determine the supply aspect of human resource - This phase of HR planning is designed
to answer the question, “how many and what kinds of employees do I currently have in
terms of the skills and training necessary for the future?” It all begins with an inventory of
employees expected to be available in various job categories at the start of planning
period. This internal analysis is called skill inventory, an activity of assessing the current
supply of employees. From these figures are subtracted anticipated losses during planning
period due to retirements, voluntary turnover, promotions, transfers, death, quits,
resignation and others. When the organization can’t get the required employees from

8|
 within, it looks for another source, labor market analysis. In line with labor market
environmental analysis/ Economic conditions, laws and regulations, and labor union is
important for effective HRP.
3. Determine the net new personnel requirements.
This requires comparing over all personnel requirement with personnel inventory where the
difference is net requirement.
4. Developing action plans – this step involves adjustment on the demand and supply of
human resource when human resource surplus and shortage exists. So recruitment,
promotion, transfer, training, early retirement, downsizing/minimizing the duties involved in
a job, attrition etc... Can be part of the action plan.
2.2.2 Objectives of HRP

The main purpose of HRP is to have an accurate number of employees required, with matching
skill requirements to accomplish organizational goals.

- To get the right people in the right place at the right time with the necessary
skills/ensure adequate supply of man power when required. This involves policies in
respect of recruitment, succession planning and training.
- Ensure proper use of the existing human resource in the organization.
- Forecast future requirements of human resource with different levels of skills.
- To retain the stability in the workforce through pay and benefits, and individual
career planning.
- Assess surplus or shortage of human resource available over a specified period of
time/to put into effect changes that come about from major operational strategies.
These can involve re-location, re-training or re-deployment.
- To ensure that staffs move in the right direction through the establishment of
standards, performance control systems and building long-term employee
relationships/control the human resource already deployed in the organization.

2.2.3 Importance of HRP

- Planning for current & future human resource needs is becoming increasingly
important with the global & technological changes that are occurring. In order to

9|
 plan successfully, managers need to be aware of the internal & external
environments of an organization & their implications.
- Human resource planning meets the organization need for the right type of people in
right number at right times. It also
- HRP helps the effective and efficient use of personnel.
- Manpower shortage and surplus minimized to a large extent.
- HRP Helps the organization create and develop training and succession planning for
employees and managers.
- HRP provides multiple gains by ways of promotion, increased in emoluments/salary
fee and other fringe benefits.
- HRP provides a means for human resource management by carefully consider future
events.
- The organization is beneficiary with increased in skill, knowledge, and job
satisfaction of employees. It also benefited in terms of increased prosperity, growth,
and development and becomes competent.
2.2.4 Factors Affecting Human Resource Planning

HR planners face various problems while formulating human resource plan. These are:

 People perceive that employees are available abundance in our labor surplus economy. So
why to spend time and money in forecasting HRs. this perception is inaccurate and
contradicts HRP.
 Inaccurate demand and supply. The longer the time horizon for forecasting human resource
requirements, greater is the possibility of inaccuracy in estimating HR needs.
 Various types of uncertainties like labor turnover, absenteeism, seasonal employment,
market fluctuation and changes in technology affect HRP.
 As HRP is based on data relating to HR, so in the absence reliable data, it becomes difficult
to develop effective HR plans.

10 |