HUMAN RESOURCE MANAGEMENT

FALL 2009

MBA ELECTIVE

ASAD HASAN
 Today’s topics

 Co. Strategy – Goals, Factors

 Company Strategy & affecting HRP, process, problems
HR Planning and limitations of HRP
 Definition, approaches, process,
 Job Analysis benefits of job analysis
 Job Design  HR planning: introduction,
objectives of HRP
 Job Description  Linkage of HRP to other plans,
need for HRP, benefits of HRP
 Strategies in Brief
Company Strategic Principle

Dell Be direct
eBay Focus on trading communities
General Electric Be number one or number two in every
industry in which we compete, or get out
Southwest Airlines Meet customers’ short-haul travel needs
at fares competitive with the cost of
automobile travel
Vanguard Unmatchable value for the investor-owner
Wal-Mart Low prices, every day

Source: Arit Gadiesh and James Gilbert, “Frontline Action,” Harvard Business Review, May 2001, p. 74.
 Types of Strategic Planning
 Corporate-level strategy
 Identifies the portfolio of businesses that, in total, comprise the
company and the ways in which these businesses relate to each
other.
 Diversification strategy implies that the firm will expand by
adding new product lines.
 Vertical integration strategy means the firm expands by,
perhaps, producing its own raw materials, or selling its products
direct.
 Consolidation strategy reduces the company’s size
 Geographic expansion strategy
 Types of Strategic Planning (cont’d)
 Business-level/competitive strategy
 Identifies how to build and strengthen the business’s long-
term competitive position in the marketplace.
 Cost leadership: the enterprise aims to become the low-
cost leader in an industry.
 Differentiation: a firm seeks to be unique in its industry
along dimensions that are widely valued by buyers.
 Focus: a firm seeks to carve out a market niche, and
compete by providing a product or service customers can
get in no other way.
 HR Planning

 Human resource planning is a process by which

an organization ensures that
 it has the right number and kinds of people
 at the right place
 at the right time
 capable of effectively and efficiently completing
those tasks that will help the organization
achieve its overall strategic objectives.
 HR Planning

 Linked to the organization’s overall strategy and

planning to compete domestically and globally.
 Overall plans and objectives must be translated into
the number and types of workers needed.
 Senior HRM staff need to lead top management in
planning for HRM issues.
 Factors That Determine HR Plans
9
Align compensation strategies & policies with
organisation goals and objectives

Organizational
Strategic Focus HR Strategy HR Activities
Strategy
• Long HR planning • Promote from
horizon within
• Efficiency • Extensive
• Build skills in existing
Cost Leadership • Stability employee training
• Cost Control • Job and employee • Hire and train
specialization efficiency for specific
capabilities
• Shorter HR planning • External staffing
horizon • Less training
• Growth
• Hire the HR capabilities • Hire and train
Differentiation • Innovation
needed for broad
• Decentralization
• Broader, more flexible competencies
jobs and employees
 Typical Division of HR Responsibilities
in HR Planning
11
 Job Analysis – what is ?

 Job Analysis is a systematic exploration of the

activities within a job.
 It defines and documents the duties, responsibilities
and accountabilities of a job and the conditions under
which a job is performed.
 Job Analysis - Methods

 Job Analysis Methods

 Observation method – job analyst watches
employees directly or reviews film of workers on the
job.
 Individual interview method – a team of job

incumbents is selected and extensively interviewed.

 Group interview method – a number of job

incumbents are interviewed simultaneously.

 Job Analysis - Methods

 Job Analysis Methods

 Structured questionnaire method – workers
complete a specifically designed questionnaire.
 Technical conference method – uses supervisors
with an extensive knowledge of the job.
 Diary method – job incumbents record their daily
activities.
 The best results are usually achieved with some
combination of methods.
 Job Analysis -Techniques

 Structured Job Analysis Techniques

 Department of Labor’s Job Analysis Process:

 Information from observations and interviews is

used to classify jobs by their involvement with data,
people and things.
 Information on thousands of titles available on
O*Net OnLine which is the Department of Labor’s
replacement for the Dictionary of Occupational
Titles.
 Job Analysis - Techniques

 Position Analysis Questionnaire (PAQ)

(developed at Purdue University)
 Jobs are rated on 194 elements, grouped in six
major divisions and 28 sections.
 The elements represent requirements that are
applicable to all types of jobs.
 This type of quantitative questionnaire allows
many different jobs to be compared with each
other, however, it appears to be more applicable to
higher-level professional jobs.
 Job Analysis - JD

 Job Descriptions
 Written statement of what jobholder does, how it is

done, under what conditions and why.

 Common format: title; duties; distinguishing
characteristics; environmental conditions; authority
and responsibilities.
 Used to describe the job to applicants, to guide new

employees, and to evaluate employees.

 Job Analysis - Specs

 Job Specifications
 States minimum acceptable qualifications.

 Used to select employees who have the essential

qualifications.
 Job Analysis - Evaluation

 Job Evaluations
 Specify relative value of each job in the organization.

 Used to design equitable compensation program.

 Job Analysis - Nature

 The Multi-faceted Nature of Job Analysis

 Almost all HRM activities are tied to job analysis.

 Job analysis is the starting point for sound HRM.

 Job Analysis - Changes

 Job Analysis and the Changing World of Work

 Globalization, quality initiatives, telecommuting, and

teams require adjustments to the components of a

job.
 Today’s jobs often require not only technical skills but

interpersonal skills and communication skills as

well.