2. 2
Acknowledgment
First of all I would like to thank RITI and Brilliance staff for their effort ,and special thanks to
Mr. Mohamed El-Nagar. I would like to thank my classmate Mr. Hamed whom without
his help in this study it wouldn’t be in this level. I would also like to extend thanks to my
colleague at KPMG; Mr. Kassem Bolbol who helped me in proofreading. Further thanks to
my friend and teacher Ms. Vanessa, who suggested that I add my point of view when doing
the report. Finally, I would like to thank my colleague Mr. Hamdi Hassan who coordinated
and formatted the study.
Mostafa Abdel Raheem
20 -8- 2013
3. 3
Table of contents Page
Introduction……………………………………………………………………………………………………… 6
A)Strategic Management…………………………………………………………………………..…. 7
What Does Strategic Management Mean? ……………..………………………………..…. 8
Why the Organization Needs Strategic Management ? ……………………….………..…. 9
How Strategic Management Starts? …………………………………………….…………………10
What is the Strategic Management model ? ……………………………………………………11
How can we conduct external and internal scanning?……………………………..………12
Describe how (Macro-environment) can be done ?……………………………………..…..12
How to assess the internal environment of the organization ?……………………….….26
Strategy Formulation……………………………………………………………………………………31
Strategy implementation………………………………………………………………………………39
Strategy evaluation and control………………………………………………………………….…40
Case Study ( Strategic Management )……………………………………………..………….…41
B) Job Analysis and Competency Framework …………………………………………...…. 53
What is Job Analysis? ……………..………………………………………………………….…..…. 54
Why We Need Job Analysis ?………………………………………………..………….………..…. 55
How can we conduct job analysis? …………………………………………….…………...………58
What are the collection techniques?…………………..……………………………………………60
What is job description?………………………………………………………………….……..………64
What should a job description contain?…………………………………………………..…..…..64
What are methods for job design?……………………………………………………….……….….68
What does De-jobbing mean? ……………………………………………………………………..…………71
Why do we need De-jobbing………………………………………………………………………..…………71
Competency-Based Job Analysis…………….…………………………………………………..……….…72
What are competencies types ?………………………………………………………………………….…75
Competency Framework…………….…………………………………………………………..…….…..…. 77
What are the benefits of Competency framework …..………………………………..………...…. 78
How can we establish competencies framework ?………….……..…………………….…….…..….79
Case Study :Job Analysis & Job Description……………………………………………….………………82
C) Recruitment, Personnel Planning & Selection………………………………………....…. 109
Why we need to plan for recruiting?………….……………………………………………………..………110
4. 4
Recruiting process ………………………………………………………………….………………………..…..110
Personnel/Workforce Planning………………………………………………………………………………….111
Internal Sources of Candidates ………………………………………………..………………………………113
External Sources of Candidates ……………………………………………………………………..…………118
Factors affecting recruiting …………………………………………………………………….…………….…121
Step-by-step approach to effective human resource planning…………………………………..124
Employee testing and selection? …………………………………………………………………….……..…124
Tests types …………………………………………………………………….………………………….……….…126
Background Investigations and Reference Checks…………………………………………………….130
What is the interview and interviews types, and interview benefits ?.........................131
How to conduct effective interviews?.................................................................135
Competency Based Interview………………………………………………………………………………….139
How can we create competency ? ………………………………………………………………………….141
Questions Technique…………………………………………………………………………………………….. 143
STAR & Funnel Technique…………………………………………………………………………………….. 144
Case study: Apple Recruitment and Selection……………………………………………………….. 148
D)Performance Management System ( PMS ) …………………………………………………….159
What is Performance Management? ……………………………………………………….……………..160
Why we need the Performance Management? ……………………………………….………………..161
Roles on Performance Management Process………………………………………………………………162
Performance Management Steps…………………………………………………………………….………... 163
Objective in Performance Management ……………………………………………………….…………… 165
Who apprise the performance…………………………………………………………….……………………..166
Performance Management Criteria……………………………………………………………….……………..167
Common Rating Errors………………………………………………………………………………….……………168
What Is an Appraisal Interview?................................................................................... 170
E)Labor law and Policies…………………………………………………………………..………………… 174
لا ٍع يمديتانعًم ٌَى ………………………………………………………….…………………………...……………175
انعًم ٌلاَى نفهى هايت تعريفاث …………………………………………………………………..…..……………..176
انعًم وعمد انعًم عاللت ٍبي ……….…………………………………………………………………………انفرق 176
انعًم ٌلاَى في انتشغيم ………………………………………………………………………..…………………….177
وأَىاعه انعًم …………..……….……………………………………………………………………………………عمد 178
ًانع عمد الَمضاء عايت أحكاوم ………………………………………………………………………..……………….180
6. 6
Introduction
Working at one of the big four at KPMG is an opportunity to change my career path, and I
would like to enhance my self-development by taking this Human Resource Diploma to build on
the academic background and experience that I gained from working five years in the HR field.
Thinking of Human Resource and my field of interest I chose two topics (Job analysis and
Recruiting).
I consider Job analysis to be the basic and most important function of HR, it helps in recruiting,
training, performance management and job evaluation.
Recruiting is a very critical decision to employ someone, and should depend on a wise process.
Bad recruiting can cost a lot of losses and other undesirable results.
I believe that if any organization has good job descriptions, a smart job analysis system and
an effective recruiting process, it will be very easy for the HR department to do other functions
thus leading the organization to achieve its goals and vision.
In addition is one of the most important elements achieving the organization strategic plan and
improvement organization performance.
And Labor law is related to my education and every organization have to follow it to avoid any
problem could happen.
What is this box ?!
This box will appear several times in the study. It contains extra suggestions/
information or my point of view regarding a particular point.
8. 8
What Does Strategic Management Mean?
First let’s break down the term of Strategic and Management then we can identify Strategic
Management meaning:
Strategic :
Which comes from the word strategy; is a high level plan to achieve one or more
goals under conditions of uncertainty.
Management :
is the act of coordinating the efforts of people to accomplish desired goals
and objectives using available resources efficiently and effectively.
So we can defined Strategic Management as :
Strategic Planning is the process used by an organization to establish where it is
going, how it is going to get there and how it will know if it got there or not.
Another definitions are :
strategic planning involves gaining insights about where the organization is now,
gathering the information that identifies where the organization should be in the
future and generating the decisions that will bridge the gap.
Is a set of managerial decisions and actions that determines the long-run
performance of a corporation.
Is an ongoing process that evaluates and controls the business and
the industries in which the company is involved; assesses its competitors and sets
goals and strategies to meet all existing and potential competitors; and then
reassesses each strategy annually or quarterly [i.e. regularly] to determine how it
has been implemented and whether it has succeeded or needs replacement by a
new strategy to meet changed circumstances, new technology, new competitors, a
new economic environment., or a new social, financial, or political environment.
9. 9
Why the Organization Needs Strategic Management ?
My Definition
I created my own definition of strategic management.
Strategic Management is implementing and performing long term plans to achieve
a specific goal .
There are many benefits of strategic management and they are as follows:
1. Strategic management keeps the organization on track to achieve its vision and goals.
2. Guarantees harmony in the organization.
3. Clarifies the organization’s competitive advantage.
4. Provides clear guidelines for day-to-day decision making.
5. Reduces conflict; empowering the organization.
6. Focuses everyone in the organization in the same overall framework.
7. Speeds up the implementation of the core strategies .
8. Improves understanding of competitors’ strategies.
9. Enhances awareness of threats.
10. Reduces resistance to change.
10. 10
How Strategic Management Starts?
The regular way of planning (Tactical Planning) is to think of steps to reach the vision, but if
you didn’t know your goal, you most probably will not reach your desired vision. So the
recommended way (Strategic Planning) is to start strategic management to determine your
vision by answering these question (How will the organization look like in the future?) (What
are the organization goals?), then plan backwards from vision to the current situation and
analyze the strengths, weaknesses, opportunities and threats which is known as the SWOT
analysis. Environmental Scanning is required too. Furthermore, it is important to mention who is
responsible for strategic management among the Top management, Shareholders and Board of
Directors.
11. 11
What is the Strategic Management model ?
In details
Environmental
Scanning
Strategy
Formulation
Strategy
Implementation
Evaluation &
Control
12. 12
How can we conduct external and internal scanning?
Describe how scanning the external environment (Macro-
environment) can be done ?
External factors can be concluded from two sides:
Country: Political, Economical, Socio-Cultural, Technological, Environmental & Legal Forces
(PESTEL)
Industry: New Entrants, Competitors, Substitute, Buyers & Suppliers (Porter 5 Forces)
Internal factors can concluded from:
Company: Value-Chain Analysis
First: Country Scan (PESTEL)
Macro-environment consists of political, economical, socio-cultural, technological,
environmental and legal forces that affects the organization while achieving it vision and goals.
13. 13
Political factors :
Government stability and likely changes
Bureaucracy
Corruption level
Tax policy (rates and incentives)
Freedom of press
Regulation/de-regulation
Trade control
Import restrictions (quality and quantity)
Tariffs
Competition regulation
Government involvement in trade unions and agreements
Environmental Law
Education Law
Anti-trust law
Discrimination law
14. 14
Copyright, patents / Intellectual property law
Consumer protection and e-commerce
Employment law
Health and safety law
Data protection law
Laws regulating environment pollution
Economic factors :
Growth rates
Inflation rate
Interest rates
Exchange rates
Unemployment trends
Labor costs
Stage of business cycle
Credit availability
Trade flows and patterns
Level of consumers’ disposable income
Monetary policies
Fiscal policies
Price fluctuations
Stock market trends
Weather
Climate change
Socio-cultural factors :
Health consciousness
Education level
Attitudes toward imported goods and services
Attitudes toward work, leisure, career and retirement
Attitudes toward product quality and customer service
Attitudes toward saving and investing
15. 15
Emphasis on safety
Lifestyles
Buying habits
Religion and beliefs
Attitudes toward “green” or ecological products
Attitudes toward and support for renewable energy
Population growth rate
Immigration and emigration rates
Age distribution and life expectancy rates
Sex distribution
Average disposable income level
Social classes
Family size and structure
Minorities
Technological factors :
Basic infrastructure level
Rate of technological change
Spending on research & development
Technology incentives
Legislation regarding technology
Technology level in your industry
Communication infrastructure
Access to newest technology
Internet infrastructure and penetration
16. 16
Environmental factors :
Weather
Climate change
Laws regulating environment pollution
Air and water pollution
Recycling
Waste management
Attitudes toward “green” or ecological products
Endangered species
Attitudes toward and support for renewable
Legal factors :
Anti-trust law
Discrimination law
Copyright, patents / Intellectual property law
Consumer protection and e-commerce
Employment law
Health and safety law
Data Protection
Criminalization of bribery
17. 17
Update
When I researched about PESTEL analysis, I found a new update. Two
factors have been added ; Ethical and Demographic factors and the term
was converted from PESTEL analysis to STEEPLED analysis.
Ethical factors:
Ethical advertising and sales practices
Accepted accounting, management and marketing standards
Attitude towards counterfeiting and breaking patents
Ethical recruiting practices and employment standards (not using children to
produce goods)
Demographic Factors:
Population growth rate
Immigration and emigration rates
Age distribution and life expectancy rates
Sex distribution
Average disposable income level
Social classes
Family size and structure
Minorities
Second: Industry analysis (Porter’s 5 Forces)
Consists of bargaining power of customers (buyers), bargaining power of suppliers, the intensity
of competitive rivalry, potential entrants, substitutes and other stakeholders.
Porter’s five forces analysis is a framework for industry analysis and business strategy
development. It draws upon industrial organization (IO) economics to derive five forces that
determine the competitive intensity and therefore attractiveness of a market. Attractiveness in
this context refers to the overall industry profitability. An "unattractive" industry is one in which
the combination of these five forces acts to drive down overall profitability. A very unattractive
18. 18
industry would be one approaching "pure competition", in which available profits for all firms
are driven to normal profit. Three of Porter's five forces refer to competition from external
sources. The remainder are internal threats.
19. 19
To explain Porter’s Five Forces, let’s imagine a milk bottling factory as an example.
The Five Forces :
The Bargaining Power of Suppliers
Suppliers of raw materials, components, labor, and services to the organization can be a threat
to the organization, when there are few substitutes. Suppliers may refuse to work with the
organization.
In another words, if the organization is not a big client for the suppliers and does not demand a
lot of raw materials or services, the suppliers may decide not to deal with the organization.
Here the organization assesses how easy it is for suppliers to drive up prices. This is driven by
the number of suppliers of each key input, the uniqueness of their product or service, their
strength and control over the organization, the cost of switching from one to another, and so
on. The fewer the supplier choices the organization has, and the more the organization needs
the suppliers' help, the more powerful your suppliers are.
Factor Note
Uniqueness of the input
supplied
If the resource is essential to the buying firm and no close
substitutes are available, suppliers are in a powerful position
Number and size of firms
supplying the resources
A few large suppliers can exert more power over market prices
that many smaller suppliers each with a small market share
Competition for the input
from other industries
If there is great competition, the supplier will be in a stronger
position
Cost of switching to
alternative sources
A business may be “locked in” to using inputs from particular
suppliers – e.g. if certain components or raw materials are
designed into their production processes. To change the
supplier may mean changing a significant part of production
20. 20
Example
Suppliers of a milk bottling factory are cow farms, and if there is one cow farm controlling the
market, it will be hard to bargain with it.
How deal with the bargaining power of suppliers??
The best way to face the bargaining power of suppliers is (Backward integration), which means
having your own source of raw materials. In the milk bottling factory example, the factory need
to have its own cow farm.
The bargaining power of buyers (customers)
Customers have the power when there is no one else to buy from you, or the buyers bye huge
amounts of your product. So they can bargain with you.
We can know if the buyers have the power when we ask the organization how easy it is for
buyers to drive prices down. Again, this is driven by the number of buyers, the importance of
each individual buyer to the business, the cost to them – customers- of switching from the
organizations’ products or services to those of someone else.
Factor Note
Number of customers The smaller the number of customers, the greater their power
Their size of their orders The larger the volume, the greater the bargaining power of customers
Number of firms supplying the
product
The smaller the number of alternative suppliers, the less opportunity
customers have for shopping around
The threat of integrating
backwards
If customers pose a threat of integrating backwards they will enjoy
increased power
The cost of switching Customers that are tied into using a supplier’s products (e.g. key
components) are less likely to switch because there would be costs
involved
21. 21
Example
Buyers of milk bottling factory are big super markets like Metro or Carrefour, buy huge
quantities of milk bottles.
How to face the bargaining power of buyers ??
To face the challenge of bargaining power of buyers, Forward integration will be the solution.
Why do you need buyers to reach your final customers?
The organization takes one step forward to buy to the customers. In the milk bottling factory
example, the factory needs to have its own outlets.
The intensity of competitive rivalry
What is important here is the number and capability of organization’s competitors. If the
organization has many competitors, and they offer equally attractive products and services,
then the organization will have little power in the situation, because suppliers and buyers will go
elsewhere if they don't get a good deal from the organization. On the other hand, if no-one else
can do what the organization does, then the organization can often have tremendous strength.
Factor Note
Number of competitors in the
market
Competitive rivalry will be higher in an industry with many current
and potential competitors
Market size and growth prospects Competition is always most intense in stagnating markets
Product differentiation and brand
loyalty
The greater the customer loyalty the less intense the competition
The lower the degree of product differentiation the greater the
intensity of price competition
The power of buyers and the
availability of substitutes
If buyers are strong and/or if close substitutes are available, there
will be more intense competitive rivalry
Capacity utilization The existence of spare capacity will increase the intensity of
competition
22. 22
The cost structure of the industry Where fixed costs are a high percentage of costs then profits will be
very dependent on volume
As a result there will be intense competition over market shares
Exit barriers If it is difficult or expensive to exit an industry, firms will remain
thus adding to the intensity of competition
Example
If the milk bottling factory is the only factory in the area, it will have a monopoly over the
market and the chances that other rival bottling factories appearing in the area will decrease
with the increase in the power of the company.
How to face the intensity of competitive rivalry??
To face the intensity of competitive rivalry, we should consider more than one factor, but the
most important factor is to have competitive advantages that none of the other organizations
have .
The threat of substitute products or services
This is affected by the ability of the organization customers to find a different source for getting
what the organization does . For example if you supply a unique software product that
automates an important process, people may substitute it by doing the process manually or by
outsourcing it. If substitution is easy and is viable, then this weakens the organization’s power.
Example
Customers can buy powder milk instead of normal milk, or drink juice.
How to face the threat of substitute products or services ??
Vertical integration will help any organization face substitute problems, by providing alternative
products, it guarantees to limit the threat of substitutes.
23. 23
The threat of the entry of new competitors
It is affected by the ability of new competitors entering the market. If it costs little time or
money to enter the market and compete effectively, if there are few economies of scale in
place, or if the organization has little protection over key technologies, then new competitors
can quickly enter the market and weaken the organization’s position. If the organization has
strong and durable barriers to entry, then it can preserve a favorable position and take fair
advantage of it.
Barrier Notes
Investment cost High cost will deter entry
High capital requirements might mean that only large businesses can
compete
Economies of scale available to
existing firms
Lower unit costs make it difficult for smaller newcomers to break into
the market and compete effectively
Regulatory and legal restrictions Each restriction can act as a barrier to entry
E.g. patents provide the patent holder with protection, at least in the
short run
Product differentiation
(including branding)
Existing products with strong USPs and/or brand increase customer
loyalty and make it difficult for newcomers to gain market share
Access to suppliers and
distribution channels
A lack of access will make it difficult for newcomers to enter the market
Retaliation by established
products
E.g. the threat of price war will act to discourage new entrants
But note that competition law outlaws actions like predatory pricing
24. 24
Easy to Enter Difficult to Enter
Common technology
Access to distribution channels
Low capital requirements
No need to have high capacity and output
Absence of strong brands and customer
loyalty
Patented or proprietary know-how
Well-established brands
Restricted distribution channels
High capital requirements
Need to achieve economies of scale for
acceptable unit costs
Example
It is easy to enter the milk bottling business, as it doesn’t need special requirements to start in
this business.
How to face the threat of the entry of new competitors ??
Putting more entry barriers and protecting technology help to make any new competitors think
twice before entering and competing in the organization’s market.
25. 25
Summary:
Porter's Five Forces Analysis is an important tool for assessing the potential for profitability in an
industry. With a little adaptation, it is also useful as a way of assessing the balance of power in
more general situations.
It works by looking at the strength of five important forces that affect competition:
Supplier Power: The power of suppliers to drive up the prices of the organization
inputs.
Buyer Power: The power of the organizations’ customers to drive down your prices.
Competitive Rivalry: The strength of competition in the industry.
The Threat of Substitution: The extent to which different products and services can
be used in place of the organization products and services.
The Threat of New Entry: The ease with which new competitors can enter the market
if they see that the organization is making good profits (and then drive the prices down).
26. 26
By thinking about how each force affects the organization , and by identifying the strength and
direction of each force, the organization can quickly assess the strength of its position and
ability to make a sustained profit in the industry.
the organization can then look at how it can influence each of the forces to move the balance of
power more in its favor.
How to assess the internal environment of the organization.
In order to have a successful strategy; it should be based on a realistic assessment of the
organization’s internal resources and capabilities. An internal analysis provides the means to
identify the strengths to build on and the weaknesses to overcome when formulating strategies.
The internal analysis process considers the organization’s resources, the business the
organization is in, its objectives, policies, and plans, and how well they were achieved.
All organizations irrespective of their size, nature, and scope of business perform the functions
of finance, production, marketing, and human resource development. For efficient strategic
management, careful planning, execution, and coordination of various functions marketing,
production and operations, finance and accounting, research and development, and human
resource management are highly essential.
Value chain describes the activities within and around an organization which together create a
product or service.
Internal environment is divided into these points Structure, Culture and Resources as follows:
Structure
Chain of Command
27. 27
There are five types of organization structures
1. Simple structure
2. Functional structure
3. Divisional structure
4. Strategic business units (SBU’s)
5. Conglomerate structure
And it is related to HR department with corporate strategy
Growth
In this case the HR department should start the hiring and recruiting process, and organize the
training needs.
28. 28
Stability
In some time maintain the employee in the organization.
Retraction
In this case the organization tries to minimize the workforce, and HR helps in choosing which
employees should be kept and who should leave.
Culture
Beliefs, Expectations, Values
Values are different from one organization to another and it is the main element in an
organization and defines the behavior of employees, and these values are set by top
management in partnership with the HR department.
Culture is the collection of beliefs, expectations, and values learned and shared by a
corporation’s members and transmitted from one generation of employees to another.
Resources
Assets, skills, competencies, knowledge
Resources
Financial resources such as cash flow, debt capacity, the availability of new equity,
and cash and other liquid resources on hand.
Physical resources such as plants and equipment, buildings, land, inventories,
vehicles, and other facilities.
Human resources such as management, supervisors, production employees, staff
specialists, sales people, engineers, etc.
29. 29
Technology such as patents, licenses, designs, production methods, proprietary
information, technological skills, and the like.
Organizational resources such as systems, procedures, management techniques,
decision-making models, company reputation, good will, etc.
And also,
Capabilities
Competency
Core competency
Distinctive competency
All that was mentioned above creates the value chain, which describes the activities
within and around an organization that together create a product or service.
30. 30
SWOT analysis can help in analyzing the external factors (opportunities and threats) and
internal factors (straights and weakness), positive point (straights and opportunities ), and
negative points (weakness and threats).
External factors are outside the organization and out of top management’s control, while
internal factors are inside the organization and within top management’s control.
SWOT analysis helps in taking the decision to start the business or not, whereas TOWS analysis
helps in choosing the best tactic to survive in the market, make profit and achieve the vision.
31. 31
Strategy Formulation.
Strategy formulation is the development of long range plans for the effective management of
environmental opportunities and threats in light of corporate strengths and weaknesses.
It includes defining the corporate vision and mission, specifying achievable objectives,
developing strategies and setting policy guidelines. It begins with situational analysis. The
simplest way is to analyze through is SWOT analysis. This is the method to analyze the
strengths and weakness in order to utilize the threat and to overcome the threat. SWOT is the
acronym for Strength, Weakness, Opportunities and Threats. The TOWS matrix illustrates how
the external opportunities and threats facing a particular corporation can be matched with that
organization’s internal strengths and weaknesses to result in four sets of possible strategic
alternatives.
32. 32
Vision
Vision is what the organization expects itself to be in the future, and we can know the vision
from the answer of this question: “how the organization will look like after 5 years?”
The Vision helps to inspire employees to work for one goal in harmony, which helps in uniting
the workforce in the organization to compete and create a culture inspired from the vision.
Another benefit of having a vision is increasing productivity while leveraging all resources to
successfully implement a strategic plan.
Vision reminds organization employees of what they are trying to achieve.
Properties of an effective vision?
1. Vision has to be Inspiring/motivating people
2. Vision must capture an understanding of what the organization can be great at.
3. Vision must make clear how the organization will deliver value to its customers in ways
that are innovative and different from the competition.
4. Vision must be measurable – people need to know whether the organization is on phase
to achieve the vision.
5. Vision must translate into a clear and compelling message.
Mission
The Mission is describing what the organization can do now to reach its vision in the future and
it must relate to other stakeholder i.e. employees, community, government, customers …etc.
There are two types of mission statements [1]
:
Customer-oriented missions. Customer-oriented missions defines the organization’s
purpose in terms of meeting customer needs or providing solutions for them. They provide
more flexibility than product-oriented missions and can be easily adapted to changing
environment. For example, Nokia’s mission “connecting people” is customer-oriented. It
does not focus on mobile phones or smart phones only. It provides a solution to customer
33. 33
needs and could easily have worked 50 years ago, and will continue to work in the future. It
also gives more strategic flexibility for the company. In Nokia’s case, it may start providing
VoIP software to allow calls to be made over the internet and its mission would still be valid.
Product-oriented missions. Product-oriented missions focus on what products or
services to serve rather than what solutions to provide for customers. These statements
provide less flexibility for the company because most products have short life cycle and
offer limited market expansion. The company that defines its business as “providing best
health insurance products” may struggle to grow to other insurance product categories.
For a mission to be effective it must include the following 9 components [2]
:
Customers. Who are your customers? How do you benefit them?
Products or services. What are the main products or service that you offer? Their
uniqueness?
Markets. In which geographical markets do you operate?
Technology. What is the firm’s basic technology?
Concern for survival. Is the firm committed to growth and financial soundness?
Philosophy. What are the basic beliefs, values and philosophies that guide an
organization?
Self-concept. What are the firm’s strengths, competencies or competitive advantages?
Concern for public image. Is the firm socially responsible and environmentally friendly?
Concern for employees. How does a company treat its employees?
Properties of an effective mission?
1. Focus on a limited number of goals.
2. Stress on major policies and values the organization wants to honor.
3. Define the major competitive scopes within which the organization will operate.
34. 34
What are steps to write mission statement ?
Step 1. Gather a team of managers, employees and shareholders. Mission is the
statement that must be understood by employees of all levels. Involving more people will let
you find out how each of them see an organization and its core purpose. In addition, employees
will support organization’s mission more if they will be involved in the process of creating it.
Step 2. Answer all 9 questions for effective mission. Many practitioners and academics
agree that a comprehensive statement must include all 9 components. Only then creating a
mission can benefit a company. At this stage, try to honestly answer all the questions and
identify your customers, markets, values etc. It may take a lot of time but it’s worth it.
Step 3. Find the best combination. Collect the answers from everyone and try to combine
one mission statement out of them. During this step, you can make sure that everyone
understands company’s reason for being and there are no conflicting views left.
Why Mission statement is important?
Informs organization’s stakeholders about its plans and goals;
Unifies employees’ efforts in pursuing company goals;
Serves as an effective public relations tool;
Provides basis for allocating resources;
Guides strategic or daily decision making;
Shows that a company is proactive.
Mission statement example
Intel’s Mission:
Delight our customers , employees , and shareholders by relentlessly delivering the platform
and technology advancements that become essential to the way we work and live.
35. 35
Objectives
Objectives are short term goals which the organization needs to accomplish to get closer to
achieving the vision. There should be objectives for every department and job post as well as
companywide objectives.
Effective objectives should be S.M.A.R.T
Which is an acronym for the following:
Specific
A specific objective rather than a more general one. This means the Objective is clear and
unambiguous, without vagueness. To be specific, objectives must tell exactly what is expected,
why is it important, who is involved, where is it going to happen and which attributes are
important.
Measurable
An objective without a measurable outcome is like a sports competition without a scoreboard or
scorekeeper. Numbers are an essential part of business. Putting concrete numbers in the
objective is essential to know what remains to done.
Attainable
Objective should be realistic and attainable. Objective are neither out of reach nor below
standard performance, as these may be considered meaningless.
Relevant
Will this objective have an effect on the desired goal or strategy? relevancy relates to the
relationship between the objective and the overall goals of the program or purpose of the
intervention. Evidence of relevancy can come from a literature review, best practices, or your
theory of change.
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Time frame
When will this objective be accomplished?
A specified and reasonable time frame should be incorporated into the objective statement. This
should take into consideration the environment in which the change must be achieved, the
scope of the change expected, and how it fits into the overall work plan.
Strategies
A strategy of a corporation forms a comprehensive master plan stating how the organization
will achieve its mission and objectives. It maximizes competitive advantage and minimizes
competitive disadvantage.
Describes a company’s overall direction in terms of its general attitude toward growth and
management of its various business and product lines.
Growth
Stability
Retrenchment
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Growth Strategies:
Expanding market.
Opportunity to increase profits.
Growing to survive.
Mergers, acquisition, strategic alliance.
Stability Strategies:
Predictable market
Small business having a niche.
Useful on short term.
Dangerous on long term.
Retrenchment Strategies:
Weak competitive position.
Poor performance.
Reforms are beyond reach.
Three types of strategy
Corporate strategy:
It describes an organization’s overall direction in terms of its general attitude towards growth
and management of its various business and product lines.
Corporate strategy deals with three key issues facing the corporation as a whole.
Directional strategy
the organization’s overall orientation towards growth, stability and
retrenchment. The two basic growth strategies are concentration and
diversification. The growth of a company could be achieved through merger,
acquisition, takeover, joint ventures and strategic alliances. Turnaround,
divestment and liquidation are the various types of retrenchment strategy.
Portfolio analysis
The industries or markets in which the firm competes through its
products and business units. In portfolio analysis, top management views its
product lines and business units as a series of portfolio investment and
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constantly keeps analyzing for a profitable return. Two of the most popular
strategies are the BCG Growth Share matrix and
GE business screen.
Parenting strategy
the manner in which the management coordinates activities and transfers
resources and cultivate capabilities among product lines and business units.
Business strategy:
It usually occurs at the business unit or product level and it emphasizes improvement of the
competitive position of a corporation's products or services in the specific industry or marketing
segment served by that business unit. It may fit within two overall categories of
competitive or corporate strategies. Competitive strategy is the strategy battle against all
competitors for advantage. Michael Porter developed three competitive strategies called
Generic strategies. They are cost leadership, differentiation and focus. Cooperative strategy
is to work with one or more competitors to gain advantage against other competitors.
Functional strategy:
It is the approach taken by a functional area to achieve corporate and business unit
objectives and strategies by maximizing resource productivity. It is concerned with
developing nurturing a distinctive competence to provide a company or business unit with a
competitive advantage.
A hierarchy of strategy is the grouping of strategy types by levels in the organization. This
hierarchy of strategy is a nesting of one strategy within another so that they complement
and support one another. Functional strategies support business strategies that in turn
support the corporate strategy.
Policy:
Policy is a broad guideline for decision making that links the formulation of strategy with
its implementation. Companies use policies to make sure that employees throughout the
firm make decisions and take actions that support the corporation’s mission, objectives and
strategies.
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Strategy implementation
Strategy implementation is the translation of chosen strategy into organizational action so as
to achieve strategic goals and objectives. Strategy implementation is also defined as the
manner in which an organization should develop, utilize, and amalgamate organizational
structure, control systems, and culture to follow strategies that lead to competitive
advantage and a better performance. Organizational structure allocates special value
developing tasks and roles to the employees and states how these tasks and roles can be
correlated so as maximize efficiency, quality, and customer satisfaction-the pillars of
competitive advantage. But, organizational structure is not sufficient in itself to motivate the
employees.
An organizational control system is also required. This control system equips managers with
motivational incentives for employees as well as feedback on employees and organizational
performance. Organizational culture refers to the specialized collection of values, attitudes,
norms and beliefs shared by organizational members and groups.
Following are the main steps in implementing a strategy:
Developing an organization having potential of carrying out strategy successfully.
Disbursement of abundant resources to strategy-essential activities.
Creating strategy-encouraging policies.
Employing best policies and programs for constant improvement.
Linking reward structure to accomplishment of results.
Making use of strategic leadership.
Excellently formulated strategies will fail if they are not properly implemented. Also, it is
essential to note that strategy implementation is not possible unless there is stability between
strategy and each organizational dimension such as organizational structure, reward structure,
resource-allocation process, etc.
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Strategy evaluation and control
Strategy implementation poses a threat to many managers and employees in an organization.
New power relationships are predicted and achieved. New groups (formal as well as informal)
are formed whose values, attitudes, beliefs and concerns may not be known. With the change
in power and status roles, the managers and employees may employ confrontation behavior.
Strategy Evaluation is as significant as strategy formulation because it throws light on the
efficiency and effectiveness of the comprehensive plans in achieving the desired results. The
managers can also assess the appropriateness of the current strategy in today’s dynamic world
with socio-economic, political and technological innovations. Strategic Evaluation is the final
phase of strategic management.
The significance of strategy evaluation lies in its capacity to co-ordinate the task performed by
managers, groups, departments etc, through control of performance. Strategic Evaluation is
significant because of various factors such as - developing inputs for new strategic planning, the
urge for feedback, appraisal and reward, development of the strategic management process,
judging the validity of strategic choice etc.
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Apple Inc. is an American multinational corporation, which designs, manufactures and sells
personal computers, consumer electronics and software, and provides related services. The
business has experienced a tremendous growth from 2001 when it has introduced its iPod mp3
player. Apple Inc. is considered to be the most successful electronics company in the world. ,
and the maker after Samsung and Nokia. Fortune magazine named Apple the most admired
company in the United States in 2008, and in the world from 2008 to 2012.
Name Apple Inc.
Industries served
Computer hardware, Computer software, Consumer electronics,
Digital distribution
Geographic areas served Worldwide
Headquarters U.S.
Current CEO Tim Cook
Revenue $ 156.508 billion (2012)
Profit $ 41.733 billion (2012)
Employees 72,800 (2012)
Main Competitors
Samsung Electronics Co., Ltd., Amazon.com, Inc., International
Business Machines Corporation, Cisco Systems, Inc., Google Inc.,
Microsoft Corporation, Dell Inc., LG Electronics, Lenovo Group
Limited, Hewlett-Packard Company, Sony Corporation and many
others.
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Strengths Weaknesses
1. iTunes Music Store is a good source of
revenue, especially with the iPod and the
availability on Windows platform.
2. Developing own software and hardware.
3. Apple’s niche audience provides the
company with some insulation from the
direct price competition.
4. Revamping desktop and notebook lines.
5. Web technology can be used to improve
product awareness and sales.
6. Low debt—more maneuverable.
7. Customer loyalty combined with
expanding closed ecosystem
8. Apple is a leading innovator in mobile
device technology
9. Strong financial performance
($10,000,000,000 cash, gross profit
margin 43.9% and no debt)
10. Brand reputation
11. Retail stores
12. Strong marketing and advertising teams
1. Weak relationship with Intel and
Microsoft.
2. Weak presence in business arena.
3. Dependency on new product launches.
4. Weak presence in markets other than
education and publishing.
5. Slow turnaround on high demand
products.
6. Death of Steve jobs.
7. High price. Apple’s products are typically
higher in price than its competitors. Price
sensitive consumers tend to not consider
Apple in buying decisions.
8. Incompatibility with different OS
9. Decreasing market share
10. Patent infringements
11. Further changes in management
12. Defects of new products
13. Long-term gross margin decline
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Opportunities Threats
1. Increase in worms and viruses on PCs.
2. Large population (Gen X & Y) which are
extremely individualistic and name brand
conscious.
3. TV Expansion Possibilities for Apple TV
4. Government crackdown on pirating
music off the Internet.
5. Much of the world is still without
computers.
6. People enjoy small electronic gadgets
7. Cross product sales will continue to
increase as more and more people
choose Apple.
8. High demand of iPad mini and iPhone 5
9. iTV launch
10. Emergence of the new provider of
application processors
11. Growth of tablet and Smartphone
markets
12. Obtaining patents through acquisitions
13. Damages from patent infringements
14. Strong growth of mobile advertising
market
15. Increasing demand for cloud based
services
1. Companies not seeing Apple as
compatible with their software.
2. Dell, Samsung and HP are major
competitors.
3. Increasing competition with music
downloads.
4. Competition produces similar products at
often half the price.
5. The population at large unwilling to use
Macintosh.
6. Skype is danger competitor to FaceTime
7. Mobile Phones based on Google’s
Android Operating System.
8. Technology moves quickly, new threats
from new startups are likely.
9. Rapid technological change
10. 2013 tax increases in U.S.
11. Breached IP rights
12. Price pressure from Samsung over key
components
13. Strong dollar
14. Android OS growth
15. Competitors moves in online music
market
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Elucidation
Strengths
1. Customer loyalty combined with expanding closed ecosystem. While at first Apple’s closed
ecosystem was a weakness for the business, this has now changed. First, Apple now has a full
range of apps, software and products that are interlinked and support each other. Second, new
products and supplements will be released soon (iTV), hence expanding the ecosystem. Third,
Apple has a strong customer loyalty, which increases due to Apple’s closed ecosystem, which, in
turn, is supported by customer loyalty. So the combination of Apple’s expanding closed
ecosystem and customers’ loyalty increases firm’s competitive advantage.
2. Apple is a leading innovator in mobile device technology. Apple has been chosen as the
most innovative business in the world for the 3rd time in 2012. Company’s core competency of
producing innovative products is the strength the company builds upon and is able to bring the
most innovative products to the market.
3. Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no
debt).Apple’s financial performance is one of the best among many companies. Company
currently (end of 2012) holds about $10,000,000,000 in cash, which can be used for acquisitions,
buying back company shares and other matters. It also has higher gross profit margin than its
main competitors, which is equal to 43.9%. Company has no debt and is not directly affected by
interest rates or credit markets.
4. Brand reputation. Apple has a reputation of highly innovative, well designed, and well-
functioning products and sound business performance. Apple brand is valued at $76.5 billion and
was the second most valuable brand in the world in 2012.
5. Retail stores. Apple’s retail stores ensure high quality customer experience; provide direct
contact with knowledgeable staff and increases brand awareness. Besides, Apple’s stores are
one of the most profitable in terms of sales/ft2.
6. Strong marketing and advertising teams. Marketing is one of the strongest functional areas
Apple has. It can sell pricier products, build superior stores (they are more or less built to achieve
marketing goals) and advertise their products in a compelling manner.
Weaknesses
1. High price. Apple’s products cost much more than its competitors devices. Some critics
argue that the price is not justified. When there’s such a fierce competition, Apple products price
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becomes a weakness because consumers can easily opt for similar quality but lower price
products.
2. Incompatibility with different OS. The iOS and OS X are quite different from other OS and uses
software that is unlike the software used in Microsoft OS. Due to such differences, both in
software and hardware, users often choose to stay with their accustomed software and hardware
(Microsoft OS and Intel hardware).
3. Decreasing market share. The less market share Apple has, the less it can influence its
potential customers and persuade them to jump into using Apple’s closed ecosystem products.
4. Patent infringements. The firm is often accused of infringing other companies’ patents and has
even lost some trials. This damages Apple brand and its financial situation.
5. Further changes in management. Apple has lost Steve Jobs in 2012 and Tim Cook became the
new CEO. Scott Forstall and John Browett (chief of retail) left the company too and this will have
an impact on company’s management, which, as many think, will be negative.
6. Defects of new products. This is not current Apple weakness but one that jumps out time to
time. Some of Apple’s iPod and iPhone releases had clear faults and thus disturbed sales of the
products and firm’s reputation of superior product performance.
7. Long-term gross margin decline. Current Apple’s gross margin is one of the highest in the tech
industry but analysts fear that due to increasing component prices and competition current
margins will not be sustained. Hence, glooming firm’s future financial performance.
Opportunities
1. High demand of iPad mini and iPhone 5. iPad mini sales will increase Apple’s market share in
the tablet market and, will strengthen firm’s competitive advantage.
2. iTV launch. iTV launch will support Apple TV sales and the products’ ecosystem.
3. Emergence of the new provider of application processors. Samsung, the main Apple’s
competitor, is also the only provider of application processors for Apple’s products. Apple has to
find a new source for the component but could not find a suitable one yet. Nonetheless, new
manufacturers with superior engineering capabilities are arising and it’s just a matter of time,
when Apple will seize upon the opportunity of being less dependent on its direct competitors.
4. Growth of tablet and smartphone markets. Growth of tablet and smartphone markets is a good
opportunity to expand firm’s share in these markets.
5. Obtaining patents through acquisitions. Apple lacks of some patents to sustain its growth and
the best way to acquire those patents is to acquire the firms holding them. In addition, Apple
could develop new skills and competencies.
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6. Damages from patent infringements. Apple patents are often infringed by its competitors.
Thus, collecting the damages from the companies that do so is a viable opportunity to not only
increase the cash reserves but to damage the competitor’s reputation and sales as well.
7. Strong growth of mobile advertising market. Apple has developed iAd advertising platform,
which allows advertising on Apple iPhone, iPad and iPod touch. The growth of mobile advertising
market is an opportunity which could be further seized upon.
8. Increasing demand for cloud based services. Apple could expand its range of iCloud services
and software as the demand for cloud-based services is expanding.
Threats
1. Rapid technological change. One of the most severe threats Apple and the other tech
companies are facing is rapid technological change. Companies are under the pressure to
release new products faster and faster. The one that cannot keep up with the competition soon
fails. This is especially hard when a business wants to introduce something new, innovative and
successful. Apple was able to bring very innovative products to the market so far but for the
moment, even Apple hasn’t unveiled any plans for the new products (except iTV) and may lack
new introductions to keep up with competition.
2. 2013 tax increases. Tax increases in USA in 2013 will negatively affect Apple.
3. Rising pay levels for Foxconn workers. Pay levels for Foxconn’s workers already rose 3 times
from 2010 to 2012. Foxconn is the main manufacturer of Apple products and the rising pay level
for Foxconn’s workers will likely raise the prices for Apple products.
4. Breached IP rights. The companies that breach Apple patents might not be discovered soon
and may benefit from it, while weakening Apple at the same time.
5. Price pressure from Samsung over key components. Samsung has already asked Apple to
pay higher price for its application processors. Due to intense competition and no viable
substitutes, Apple may be asked to pay even more.
6. Strong dollar. Apple earned more than half of its revenues from outside US. Dollar appreciation
against other currencies reduces potential profits from those countries.
7. Android OS growth. Android OS is the main competitor for iOS in mobile device market. The
domination of Android decreases iOS power over influencing consumers to join Apple.
8. Competitors’ moves in online music market. Apple faces threat from online music stores, such
as Amazon, Wal-Mart and online music subscription companies, such as Spotify.
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Vision
To make a contribution to the world by making tools for the mind that advances humankind.
The vision reflect the real trend for Apple, to invent new tools i.e. ipad, and to change how
humans live.
Mission
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and
professional software. Apple leads the digital music revolution with its iPods and iTunes online
store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and
is defining the future of mobile media and computing devices with iPad.
The mission is reflect product and services develop humans live style with high quality.
Objectives:
1. To maximize profit
2. To be the dominant high-tech brand in the whole world
3. To invent products that will be useful, handy and sleek that will appeal to consumers all over
the world, with a special focus on developed countries like Canada and the US, Europe, and the
populous Asian countries like China, Japan, India and South Korea.
4. To become the world's number one company.
Corporate Strategy: Portfolio industry
Apple compete with a variety of products and services , icloud service competes with Google
drive, and iphone defeats Nokia, ipad in war with Samsung, and we can’t forget Apple’s old
rivalry Microsoft.
Apple has expanded throughout the world and has released many popular products and it is
achieving success with high profits and loyalty for Apple trademark.
As of May 2013, Apple maintains 406 retail stores in fourteen countries as well as the
online Apple Store and iTunes Store, the latter of which is the world's largest music retailer.
Apple is the second-largest publicly traded corporation in the world by market capitalization,
with an estimated value of US$414 billion as of January 2013. As of September 29, 2012, the
50. 50
company had 72,800 permanent full-time employees and 3,300 temporary full-time employees
worldwide.[4] Its worldwide annual revenue in 2012 totaled $156 billion. In May 2013, Apple
entered the top ten of the Fortune 500 list of companies for the first time, rising 11 places
above its 2012 ranking to take the sixth position.
Apple works on its vision to help humankind by developing creative tools.
Product Differentiation Strategy
Apple is known for its innovation in creating new devices and software. Apple was the first
company to provide tablets to humankind and iphone. It is market leader of tablets and smart
phones. Also it focuses on quality, apple software and product as we can see here:
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High Medium Low
Tablets: the ipad has first
mover advantage and a
dominate share in a fast
growing market, however
competitors are getting
strength. Release of the
ipad 2 in spring 2001
reinforced apple’s position.
Smart phones: the iphone
trails Nokia and Samsung
market share, but this is high
growth market. A new
version of the iphone 5
achieve terrific profit
itunes: despite the appeal
of peer-to-peer sharing,
Apple has the dominant
position in paid online
music purchases.
ipod: sales have flattened
out, but Apple has the
dominate market share
Laptops: apple has strong
revenue growth ( Apple
laptop sales have exceeded
desktop sales since 2006)
Desktops: Apple has 8%
market share, sales declined
from 2008 to 2009.
Software: Apple sales have
been relatively flat, strength
comes from custom product
to support other Apple
devices
Business Unit Strength
Business Strength / Competitive Position
52. 52
Recommended Strategies
We can note that the Vision, Mission and Strategy all work in harmony to present Apple as one
of the best companies in history. I think Apple can decrease prices to help to gain market share
more and expand among average income customers .
Backward integration is highly recommended, Apple can rely on Samsung to help in
manufacturing the ipad, but Samsung compete with its own tablet, so backward integration is
good strategy to save Apple copyrights. Samsung caused massive losses to Apple.
Horizontal integration is a strategy where a company acquires, merges or takes over
another company in the same industry value chain. In Apple’s case the company is called
Authentic for software and security programs.
54. 54
What is Job Analysis?
Job analysis is a process to determine the duties and skills required from the job and the
person who should be hired for it.
Job analysis is a systematic investigation of the tasks, duties and responsibilities of a job and
the necessary knowledge, knowledge skills and abilities a person needs to perform the job
adequately.
Job Analysis is a systematic exploration of the activities within a job. It is a technical
procedure used to define the duties, responsibilities, and accountabilities of a job. This
analysis "involves the identification and description of what is happening on the job,
accurately and precisely identifying the required task, the knowledge, and skills necessary
for performing them, and the conditions under which they must be performed."
Job Analysis is the procedure for determining the duties and skill requirements of a job and
the kind of person who should be hired for it.
Job Analysis is a systematic way to gather and analyze information about the content and the
human requirements of jobs, and the context in which jobs are performed.
Job Analysis is to identify the tasks, duties, and responsibilities that make up a job and the
knowledge, skills and abilities needed to perform the job.
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Why We Need Job Analysis ?
We do job analysis to get a job description and job specification .
Job description is a written statement of what the worker actually does , how heshe does it
and what work conditions are. Job specification is a list of a job’s human requirement , that is
requisite ,knowledge skills, personality ,level of education and any other competency required.
Job analysis aims to answer questions such as:
How does the worker do the job?
exist?
temperature, noise)?
Job analysis information can be useful in
Recruitment : Job analysis information helps to recruit the right candidate for the right
position. This information helps in planning for human resource needs in the future.
Performance appraisal: Job analysis information makes performance appraisal more easier
and accurate by comparing between what the employee should do and what the employee
actually did.
Training: Identifies what job requirement is and analysis the gap between what is should be
and what is actually. The job analysis helps to choose the suitable training plan.
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Organizational structure and design: Job analysis helps the organization to make suitable
changes in the organizational structure, so that it matches the needs and requirements of
the organization. Duties are either added or deleted from the job.
Compensation and benefits: Job analysis is good tool to determine suitable compensation
based on tasks the employee does and how much this task is complicated or important to the
organization.
Discovering unassigned duties: It becomes very clear which position is responsible for what
task, making it easier to discover any unassigned duties that could help the organization to be
more productive.
Discovering over workload : With a fast comparison, we can know if there is unfair
distribution of tasks, i.e. two employees in the same department and same level, one of them
may have 14 tasks and the other one only 3 tasks.
Job evaluation: Job evaluation refers to studying in detail the job performance by all
individuals. The difficulty levels, skills required and on that basis the salary is fixed.
Information regarding qualities required, skilled levels, difficulty levels is obtained from job
analysis.
Relation between different positions: Reading job analysis can give an idea about relation
between the position under study and other positions dealt with in the organization or out of
the organization.
Acceptance of job offer: When a person is given an offer letter the duties to be performed
by him are clearly mentioned in it, this information is collected from job analysis, which is why
job analysis becomes important.
Safety Plan: Job analysis helps to identify risky jobs in the organization, and a suitable safety
plan for each position.
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How can we conduct job analysis?
How can we conduct job analysis?
There are six steps to conduct the job analysis :
Step 1: Decide how we will use the information.
Before starting a job analysis, we need to understand the purpose of conducting the
investigation. Recognizing that job analysis serves as recruiting, training, setting performance
standards, evaluating performance, or compensation.
Step 2: Review relevant background information.
You can collect information from competitor company in the same filed, or supervisor or experts
in the job. Another source of information could be websites that provide job analysis ,and any
job analyses existing in the organization, could help to gather information of the job
understudy.
Step 3: Select representative positions.
To make sure the job analysis is accurate , it recommended to select a sample of employees. If
there are 400 employees do the same job, select 10 employees, but you have to make sure
that some of them have high performance and some of them low, some of them newly hired
and some of them have been working for long. When you choose a good sample of employees,
this will help you analyze the job of normal employees and you will not focus on just best
performance only that makes it hard for majority to perform or for the new entry to perform
like the seniors in same positions.
Step 4: Actually analyze the job.
After you know which information we need and select who will represent the positions. We will
choose the best techniques to analyze the job. There is a lot of techniques to analyze the job
and these will be mentioned in the next point.
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Step 5: Verify the job analysis information.
Before starting to write job description and job specifications we have to ensure that the
information is accurate. The reason is that some employee can give tasks more than heshe
actually does to get more weight in the organization. On the other hand, some employee like to
write tasks less than what heshe actually does to avoid the responsibility. Therefore, the
supervisor of the position under study should approve the job description. Reviewing comments
by the supervisor can assist in determining a final job description document. When the
description is an accurate reflection, the supervisor should sign off, or approve the document.
Step 6: Develop a job description and job specification.
There is no specific format that all job descriptions follow, most include certain elements. These
include the job title, summary sentence of the job's main activities, the level of authority and
accountability of the position, performance requirements and working conditions. At the end of
job description typically includes the job specifications, or those personal characteristics the job
incumbent should possess to be successful on the job.
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What are the collection techniques?
There are different techniques used by organization to collect information and conduct the job
analysis. These methods are as follows:
i. Interviews
An interview of the employee is conducted by a group of experts
They ask questions about the job, skill levels, difficulty levels and crosscheck questions
with collected information
Based on this information, a job analysis is prepared.
Tips for interviews techniques
You should establish rapport with the interviewee to inform them of benefit of job analysis
and how will it help himher to get the right training or promotion and other benefits that
can ensure accurate answers.
Follow a structured guide or checklist to standardize the questions to gather accurate
answers that help make a job description and job specification.
Through the interview avoid asking YesNo questions, asking open ended-questions help
you to get more information from interviewee.
Focus in your questions on the importance of duties and frequency of occurrences of the
duties.
Don’t forget to review the data with the supervisor of the employee to verify the
information.
Advantages of interviews techniques
Two way communication that help to get the information correct.
Interview allows you to get any clarification if there is any information that need to be clarified.
Fast way to get the information from the caliber or the supervisor.
Example for jobs that can use interviews techniques is Administrative jobs
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Disadvantages of interviews techniques
It takes a long time to conduct interviews in large numbers of jobs.
Enlarging job for job evaluation.
Distorted information in hisher answers.
Example for jobs that can’t use interviews techniques: worker and blue collar
Interview formats
Structured (checklist)
Unstructured
Information source
Individual employees.
Group of employees.
Supervisor with knowledge of the job.
ii. Questionnaires
A questionnaire is provided to the employee and they are asked to answer the questions in it.
The questions may be multiple choice questions or open ended questions. The questions decide
how exactly the job analysis will be done. This technique is effective because people would
think twice before putting anything in writing.
Advantages of questionnaire techniques
Quick and efficient way to gather information from large number of employees.
Flexible and therefore the employee can do it any time that suites himher.
Easy to retrieve .
Examples of jobs that can use questionnaire techniques: large organizations having a lot of
locations and employees like banking sector.
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Disadvantages of questionnaire techniques
Questionnaires can save time in gathering information , but it takes a long time to analyze
the information from answered questionnaires.
It take a long time to collect and receive the answered questionnaires, and results in low
rate of responses.
Language can be problem if employees don’t understand the terms in the questionnaire, and
maybe it will not be clear if a word has more than one meaning.
Irrelevant info or inappropriate information such as complaints could be written in the
questionnaires.
Handwriting can be a barrier in getting clear information – in case questionnaires are not
electronic-.
Example for jobs that can’t use questionnaires techniques: worker and blue coaler.
iii Observation
this techniques the observer actually observes the concerned worker. He makes a list of all the
duties performed by the worker and the qualities required to perform those duties based on the
information collected, job analysis is prepared.
Advantages of observation techniques
Provide first-hand and accurate information.
Reduce distortion of information or any enlarging duties.
No way for hiding any information.
Example for jobs that can use observation techniques: worker and blue collars.
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Disadvantages of observation techniques
Time consuming to observe every activity in the job.
Needs a huge number of observers in case a lot of jobs are under study.
Difficulty in capturing entire job cycle because some activities do not happen on a daily
basis.
Of little use if jobs involves a high level of mental activity, as it will be impossible to
analyze the activity.
Example for jobs that can’t use observation techniques: (IT) information technology
engineers and Graphic designer .
iV Diaries or logs
A log record is a book in which employees record all the activities performed by them on the
job. Companies can ask employees to maintain log records and job analysis can be done on
the basis of information collected from the log record. The records are extensive as well as
exhaustive in nature and provide a fair idea about the duties and responsibilities in any job.
Advantages of Diaries or log techniques
Provide first-hand and accurate information.
Reduce distortion of information or any enlargement of duties.
Example for jobs that can use diaries or logs: call center agents .
Disadvantages of Dairies or logs techniques
Time consuming to review the diaries of every activity in the job.
Difficulty in capturing entire job.
Of little use if jobs involves a high level of mental activity, as it will be impossible to
analyze the activity.
Some technical activities will be hard to record.
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What is job description?
What should a job description contain?
Example for jobs that can’t use diaries or logs: (IT) information technology engineers and
Graphic designer .
TIP Use at least two methods of collecting job analysis information to verify the collected
data.
A job description is a written statement of what the worker actually does, how he or she does
it, and what the job’s working conditions are.
There are 8 section that should be included in a job description as follows:
1- Job identification ( Code ).
2- Job summary.
3- Relationships.
4- Responsibilities and duties.
5- Authority of incumbent.
6- Standards of performance.
7- Working conditions.
8- Job specification and qualifications.
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Describe every section in brief
1- Job identification ( Code )
In this section, the name of the job (job title), job code, name of who wrote the
description and when it was written should be included.
2- Job summary
This section can answer a simple question ( why this job exists ?) not “How” the
work is accomplished. This is done by mentioning the general nature of the job and
listing the major functions or activities. One or two sentences should do.
3- Relationships ( chain of command )
This section describes all possible relations for the job holder including the
supervisor or to whom he report, whether the job holder directly supervises
someone, and others with whom the job holder will be expected to work and come
into contact with internally or externally.
4- Responsibilities and duties
Listing the major job responsibilities and duties ( essential functions ), and steps of
doing activities needs to detailed as well as the percentage of priority allocated for
each responsibility area.
5- Authority of incumbent
Defines limits of job holder’s decision-making authority, direct supervision, and
budgetary limitations. Authority to speak to media or representation in labor unions
and other labor bureau, as well as the power of the job holder’s signature i.e. ability
to sign checks and banking transactions.
6- Standards of performance
This section tells the employee what a good job looks like, and the performance
standards provide the employee with specific performance expectations for each
major duty. They are the observable behaviors and actions which explain how the
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job is to be done, plus the results that are expected for satisfactory job
performance. Standard of performance should be Based on the position, not the
individual and expressed in terms of Quantity, Quality, Timeliness, Cost, Safety, or
Outcomes.
7- Working conditions
Describe the work conditions and tools or machines required for each position,
whether it is indoors or outdoors, the average hours, weekends and if there is travel
needed. Identifying work conditions helps in recruitment planning, selection and for
safety planning or training.
8- Job specification and qualifications
Job specification and qualifications are listing education and/or equivalent
combination of education and experience as well as any skills necessary to perform
the job competently. Competencies need to be written in this section. It can
divided in to the following categories:
1- Specifications for trained personnel, i.e. previous job performance
2- Specifications for untrained personnel, i.e. personality
3- Specifications Based on Judgment, i.e. Standard Occupational Classification.
4-Specifications Based on Statistical Analysis.
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My recommendations
In the job description, when job duties are written they should be categorized
based on competency requirements.
i.e. in sales job description – The task of making a phone call , should show which
competencies are needed for this duty.
For example:
a. Communication skills
b. Customer focus
c. Quality oriented
And show the priority percentage of each duty.
i.e. in secretary job description
1- Arrange manager meeting with client by phone. (Priority Percentage: 30%)
2- Write any documents using Microsoft word. (Priority Percentage: 5%)
3- Follow up the emails sends to clients or suppliers. (Priority Percentage: 20%)
Etc...
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What are methods for job design?
There are three methods for job design
Job enlargement :
Assigning workers additional same level activities, thus increasing the number of
activities they perform.
Job enlargement :
increasing the scope of one’s duties and responsibilities. The increase in scope is
quantitative in nature and not qualitative and at the same level.
Advantages of job enlargement
1-Variety of skills, Job enlargement helps the organization to improve and increase the skills of
the employee due to organization as well as the individual benefit.
2-Improves earning capacity: Due to job enlargement the person learns many new activities.
When such people apply for jobs to other companies they can bargain for more salary.
3- Wide range of activities: Job enlargement provides wide range of activities for employees.
Since a single employee handles multiple activities the company can try and reduce the
number of employee’s. This reduces the salary bill for the company.
Disadvantages of job enlargement
1-Increases work burden: Job enlargement increases the work of the employee and not every
company provides incentives and extra salary for extra work. Therefore the efforts of the
individual may remain unrecognized.
2- Increasing frustration of the employee: In many cases employees end up being frustrated
because increased activities do not result in increased salaries.
3-Problem with union members: Many union members may misunderstand job enlargement as
exploitation of worker and may take objection to it.
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Job enrichment:
Redesigning jobs in a way that increases the opportunities for the worker to
experience feelings of responsibility, achievement, growth, and recognition.
Job enrichment:
is an attempt to motivate employees by giving them the opportunity to use the
range of their abilities.
Advantages of job enrichment
1- Interesting and challenging job: When a certain amount of power is given to employees it
makes the job more challenging for them, we can say that job enrichment is a method of
employee empowerment.
2- Improves decision making: Through job enrichment we can improve the decision making
ability of the employee by asking him to decide on factory layout, method and style of
working.
3- Identifies future managerial caliber: When we provide decision making opportunities to
employees, we can identify which employee is better that other indecision making and mark
employees for future promotion.
4- Identifies higher order needs of employees: This method identifies higher order needs of the
employee. Abraham Maslow’s theory of motivation speaks of these higher order needs e.g.
ego and esteemed needs, self actualization etc. These needs can be achieved through job
enrichment.
5- Reduces work load of superiors: Job enrichment reduces the work load of senior staff. When
decisions are taken by juniors the seniors work load is reduced.
Disadvantages of job enrichment
1-Job enrichment is based on the assumptions that workers have complete knowledge to take
decisions and they have the right attitude. In reality this might not be the case due to which
there can be problems in working.
2- Job enrichment has negative implications i.e. Along with usual work decision making work is
also given to the employees and not many may be comfortable with this.
3-Superiors may feel that power is being taken away from them and given to the junior’s. This
might lead to ego problems.
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4- This method will only work in certain situations. Some jobs already give a lot of freedom and
responsibility; this method will not work for such jobs.
5- Some people are internally dissatisfied with the organization. For such people no amount of
job enrichment can solve the problem
Job rotation :
Moving a trainee from department to department to broaden his or her
experience and identify strong and weak points to prepare the person for an
enhanced role with the company
Systematically moving workers from one job to another to enhance work team
performance.
Job rotation :
Job rotation in the workplace is a system where employees work at several jobs in
a business, performing each job for a relatively short period of time.
Advantages of job rotation
1-Avoids monopoly: Job rotation helps to avoid monopoly of job and enable the employee to
learn new things and therefore enjoy his job.
2-Provides an opportunity to broaden one’s knowledge: Due to job rotation the person is able to
learn different job in the organization this broadens his knowledge.
3- Avoiding fraudulent practice: In an organization like bank jobs rotation is undertaken to
prevent employees from doing any kind of fraud i.e. if a person is handling a particular job
for a very long time he will be able to find loopholes in the system and use them for his
benefit and indulge (participate) in fraudulent practices job rotation avoids this
Disadvantages of Job Rotation
1- Frequent interruption: Job rotation results in frequent interruption of work. A person who is
doing a particular job and gets it comfortable suddenly finds himself shifted to another job or
department .this interrupts the work in both the departments.
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What does De-jobbing mean?
Why do we need De-jobbing
2. Reduces uniformity in quality: Quality of work done by a trained worker is different from that
of a new worker .when a new worker I shifted or rotated in the department, he takes time to
learn the new job, makes mistakes in the process and affects the quality of the job.
3- Misunderstanding with the union member: Sometimes job rotation may lead to
misunderstanding with members of the union. The union might think that employees are
being harassed and more work is being taken from them. In reality this is not the case.
De-jobbing is when an organization or industry shifts away from formal jobs with formal job
descriptions to some other arrangement to get their work done.
In another meaning de-jobbing is solution to face people say, ”That isn't my job” and the
work doesn't get done because they aren't doing their work. They're doing ONLY their jobs.
De-jobbing is useful for organization to broadening the responsibilities of the company’s jobs
and encouraging employee initiative. De-jobbing is the result of several changes taking place in
business today. Firms need to
keep pace with a number of revolutionary forces- accelerating product and technological
changes, global competition, deregulation, political instability, demographic changes, and a
shift to a service oriented economy and the arrival of the information age. Forces like these
have changed the playing field on which firms compete. This rapid change has increased the
need for firms to be responsive, flexible, and generally more competitive and capable of
competing in a global market place.
Flattening organizations, creating empowered teams, re-engineering and the like are the
techniques which make firms highly responsive, flexible and competitive. Firms are slowly
moving towards new configurations, ones built around jobs that are broad and that may
change every day. People in such situations no longer can take their cues from job
descriptions or a supervisor’s instructions. Signals come from changing demands of work.
Workers learn to focus on their individual effort and collective resources in such work that
need doing. Mangers use de-jobbing based on internal factors like
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Competency-Based Job Analysis
1- Flatter organizations Instead of traditional, pyramid-shaped organizations with seven or
more management layers, flat organizations with just three or four levels are more prevalent.
Most large firms
have already cut their management layers from a dozen to six or fewer. Because the
remaining managers have more people reporting to them, they can supervise them less, so
the jobs of subordinates end up bigger in terms of both breadth and depth of
responsibilities.
2-Work teams system Managers increasingly organize tasks around teams and processes
rather than around
specialized functions. External factors such as Rapid product and technological change,
Deregulation, Political instability, Demographic changes, Global competition Rise of a service
economy.
Competency Definition
Competency is behavior or action that can be seen when a job is being done well.
Competency is the ability of an individual to do a job properly.
Competency is a measurable skill. In the job analysis process, a competency is a specific
and measurable quality that an individual who performs a role must possess. Generally,
identifying the competencies tied to each job is the first step in the job analysis process.
Competency is demonstrable characteristics of a person that enable performance of a job.
Competency is mix of knowledge, skills , attitude and ability to perform a job / activity
properly.
It can be helpful to think of competencies in terms of an iceberg. Technical competencies
are at the tip - the portion above the waterline that is clearly visible (and therefore easier
to assess).
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Knowledge : information that has to be learned and is recalled to carry out a job.
i.e. know how to use software theoretical without able to do it.
Skill : the application of knowledge in practical way to achieve a result.
i.e. produce a document using software.
Attitude : mental position or emotional feelings about ideas or issues. Attitudes are shaped
by demographics , social values, and personality
i.e. way of judgment or solving problems.
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Competency-Based Job Analysis is describing a job in terms of the measurable, observable,
behavioral competencies (knowledge, skills, and/or behaviors) an employee must exhibit to
do a job well.
Competencies are behaviorally defend personal characteristic that are required by employee
for effective performance. These personal characteristic may include, but are not limited to:
knowledge, skill, and abilities.
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What are competencies types ?
There are three main competencies
Core competencies Functional competencies Managerial
competencies
Core competencies :
Competencies required by all employees at all levels in the organization to
ensure a harmonious atmosphere to generate more productivity and achieve
the organization’s strategy and vision.
It is a Competency that relate to organization’s values, mission and
strategy; these are
competencies that reflect organizational core capabilities.
Examples: Customer satisfaction or quality orientation.
Functional competencies :
Skills required in functional areas in certain positions or departments to
undertake the job at required level of efficiency to achieve job purpose or
department objectives that participate in organization strategy and vision.
Functional competencies pertain to specific bodies of knowledge and skills
required. It includes the abilities to use the procedures, techniques and
knowledge of a specialized field.
Examples: communication skills or innovation.
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Managerial competencies :
Competencies that relate to skills needed to perform managerial work and
processes. It deals with the interaction process either with an individual or
group of people.
In typical organizations, managerial competencies will play greater emphasis
as the position progresses within the organization.
And it is only required by individuals holding management positions across
all functions.
Examples: Strategic thinking and Result oriented.
Another competency recommended !!
In my humble opinion, I think there is another type of competency that can be added and
it is the Industry competency. Maybe one or two competencies in each industry it exist
because nature of the industry. This competency should be in each company that wants
to compete in the industry. Industry competency differs from core competency, in that
core competency can change from one company to another in the same industry, while
industry competency is more general and axiomatic for any company work in this
industry.
Examples:
Advertising agencies must have ( Creative competency)
IT companies must have (Updating competency)
Banking sector must have (Accurate and confidential competency)
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Competency Framework
Competency framework is a set of values and competencies extracted from organization’s
vision and strategy, so we can use this framework as standard measure .
Also we can define competency framework as the reflection of behaviors required from all
organization employees across all positions and functions at all different levels in the
organization.
We need Competency framework to answer those questions
How do you define the skills, behaviors and attitudes that workers need to
perform their roles effectively?
How do you know they're qualified for the job?
How do you know what to measure?
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What are the benefits of Competency framework ?
A common understanding of critical success factors and desired behaviors within the
organization.
Competency framework is very useful in selection, and Competency Based
Interview to recruit the right employees having the competencies that match with the
organization and position competencies.
Integration of organizational process to competencies helps the interpretation of the big picture
concerning day to day working, i.e. Situation of a new product launch and the competency
Customer Focus valued by the organization.
Provide training and development to improve skills, knowledge and abilities that help achieve
the goals and vision of organization.
Better management and effective decisions regarding cost intensive processes like succession
planning.
Use competencies as a basis for individual performance management.
In reward management to choose people who have common competencies with the
organization.
In brief, Creating a competency framework is an effective method to assess, maintain, and
monitor the knowledge, skills, and attitudes of people in your organization. The framework
allows you to measure current competency levels to make sure your staff members have the
expertise needed to add value to the business. It also helps managers make informed
decisions about talent recruitment, retention, and succession strategies. And, by identifying
the specific behaviors and skills needed for each role, it enables you to budget and plan for
the training and development your company really needs.
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The process of creating a competency framework is long and complex. To ensure a
successful outcome, involve people actually doing carrying out the roles to evaluate real
jobs, and describe real behaviors. The increased level of understanding and linkage between
individual roles and organizational performance makes the effort well worth it.
How can we establish competencies framework ?
You need to prepare the competencies framework .There are several ways to prepare the
competencies framework; you can use a pre-set list of common standard competencies and
then customize it to the specific needs of your organization, or go to outside consultants to
develop the framework for the organization. Finally you can create a general organizational
framework, and use it as the basis for other frameworks as needed.
It should involve employees from all departments in the organization.
Collecting information can help you create an effective competency framework. Any method
can be used like interviewing employees, creating questionnaires or observing and
analyzing the jobs and work process.
After that you need to meet with the selected team to identify the competency related to the
organization’s vision and mission, then the top management approve competencies in each
types .
Competency framework should include main four items: competency name, competency
definition, behavior and evaluation scale.
Competency name
Around 4-6 core competencies should be selected and 3-5 technical competencies and a
maximum of 3 managerial competencies. It is recommended to not choose a lot of
competencies because analysis becomes more difficult .
I.e. Negotiation skills
Competency definition
In this item content, a brief definition of what the competency name means needs to be
mentioned. This is to make sure the competency will be clear and all the organization knows
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exactly what this competency means. Using general terms maybe lead to misunderstanding
that in the end of the day might lead to not achieving the organization’s strategy and vision.
I.e. Negotiation skills: ability to reach win-win situation to achieve goals.
Behavior indicators
Numbers of statements to explain what is the best or desired performance and behaviors look
like and what ineffective behaviors look like.
I.e. Preparation before the negotiation, collecting information, setting goals,
choosing negotiations tactics, bargaining and closing.
An example of ineffective behaviors is starting negotiation without enough information or set
goals, or trying to finish the negotiation in win-lose situation.
Evaluation scale
This tool helps ensure a standard measure of behavior in the organization .
Unsatisfactory Good Very Good Exceptional
Haven’t negotiation
plan
Didn’t collect
information or set
goals before
negotiation
Set objective and
goals
Collect information
Have plan or know
at least one
negotiations tactics
Have different
solutions
Achieve goals and
objective
Know and use more
than one
negotiation tactics
Reach to win-win
situation
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Why most competency framework initiatives don’t work?
In most cases, the problem is with a complicated competency framework, or a copied and
pasted competency framework that doesn’t fit with the organization and could be used
wrongly.
These are some tips to avoid ineffective competency frameworks as follows:
Involve the people doing the work – These frameworks should not be developed solely by
HR people, who don't always know what each job actually involves. Nor should they be left
to managers, who don't always understand exactly what each member of their staff does
every day. To understand a role fully, you have to go to the source – the person doing the
job – as well as getting a variety of other inputs into what makes someone successful in that
job.
Communicate – People tend to get nervous about performance issues. Let them know why
you're developing the framework, how it will be created, and how you'll use it. The more
you communicate in advance, the easier your implementation will be.
Use relevant competencies – Ensure that the competencies you include apply to all roles
covered by the framework. If you include irrelevant competencies, people will probably have
a hard time relating to the framework in general. For example, if you created a framework
to cover the whole organization, then financial management would not be included unless
every worker had to demonstrate that skill. However, a framework covering management
roles would almost certainly involve the financial management competency.
