A practical Guiding Book

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Unit - 1 : Introduction to Human Resource Management
Structure of Unit:
1.0 Objectives
1.1 Introduction
1.2 Opening Case
1.3 What is HumanResource Management?
1.4 Nature ofHRM
1.5 Scope of HRM
1.6 Objectives ofHRM
1.7 Functions ofHRM
1.8 Role ofHRM
1.9 HRM inthe New Millennium
1.10 Summary
1.11 SelfAssessment Questions
1.12 Reference Books
1.0 Objectives
After studyingthis unit, you willbe able to:
 Understand thebasic concepts ofhumanresource management (HRM).
 Explain what humanresource management is and how it relates to the management process.
 Provide anoverview offunctions ofHRM.
 Describe how the major roles ofHR management are being transformed.
 Explaintherole ofHRM inthe present millennium.
1.1 Introduction
Human beings aresocialbeings and hardlyever live and work in isolation. We always plan, develop and
manage our relations both consciouslyand unconsciously. The relations are the outcome ofour actions
and depend to a great extent upon our ability to manage our actions. From childhood each and every
individual acquire knowledge and experience on understanding others and how to behave ineach and
everysituations in life. Later wecarryforward this learningand understanding incarrying and managing
relations at our workplace. The whole context of Human Resource Management revolves around this
core matterofmanaging relations at work place.
Since mid 1980’s Human Resource Management (HRM) has gained acceptance inboth academic and
commercialcircle. HRMis a multidisciplinaryorganizationalfunctionthat draws theoriesand ideasfrom
various fields suchas management, psychology, sociologyand economics.
There is no best way to manage people and no manager has formulated how people can be managed
effectively, because peopleare complex beings withcomplexneeds. Effective HRMdepends verymuch
on the causes and conditions that an organizationalsetting would provide. AnyOrganizationhas three
basic components, People, Purpose, and Structure.
In1994, a noted leader inthe human resources (HR) field made the followingobservation:Yesterday,the
companywiththeaccess most to the capitalor the latest technologyhad the best competitive advantage;

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Today, companiesthat offerproducts withthehighest qualityaretheoneswithaleg uponthecompetition;
But the only thing that will uphold a company’s advantage tomorrow is the caliber of people in the
organization.
That predicted future is today’s reality. Most managers in public- and private sector firms of all sizes
would agreethat people trulyarethe organization’s most important asset. Having competent staffonthe
payroll does not guarantee that a firm’s human resources will be a source of competitive advantage.
However in order to remain competitive, to grow, and diversify an organization must ensure that its
employees are qualified, placed in appropriate positions, properly trained, managed effectively, and
committed to the firm’s success. The goalofHRM is to maximize employees’contributions in order to
achieve optimalproductivityand effectiveness, while simultaneouslyattainingindividualobjectives(such
as having a challenging job and obtainingrecognition), and societalobjectives (suchas legalcompliance
and demonstratingsocialresponsibility).
1.2 Opening Case
On October 3, 2003, Anant DalviandAkhtar Khan, who worked as contract workers in Tata Electric
Company untiltheywere laid offin 1996, doused themselves with kerosene and set themselves ablaze
even as their co-workers protested before the company’s offices. While Dalvi died on the spot, Khan
died a few days later.
The Tata Electric Companysaid theywere no longer ontheir payrolland were not permanent workers.
Employees unionhad taken up their case and filled petitionin the Labour Court before their contracts
were terminated. Thecourt directed thecompanynot to terminatetheir services without followingthedue
process oflaw. Despite this their services were terminated onJune 30, 1996.
The companyunionpromised the workersthat theywould renegotiate.Yet onthe night before theykilled
themselves when Khan and Dalvi spoke to the union leader Shinde, they were told that nothing more
could bedone for them. It is this that ledthemto take theirlives. Dalvihas beeninservice as apeonfor17
years and Khan had been employed for 19 years. But their services were not regularized. Such workers
draw salarymuch less than the permanent employees.
This is an example ofthe problemthat comes under the purview ofHumanResource Management- the
main concept elaborated inthis chapter.
1.3 What is Human Resource Management?
HRMis thestudyofactivities regardingpeople working inanorganization. It isamanagerialfunctionthat
tries to matchanorganization’s needs to the skills and abilitiesofits employees.
1.3.1 Definitions of HRM
Human resources management (HRM) is amanagement function concerned withhiring, motivating
and maintaining people in an organization. It focuses on people in organizations. Human resource
managementisdesigningmanagementsystemstoensurethathumantalent isusedeffectivelyandefficiently
to accomplishorganizationalgoals.
HRMisthepersonnelfunctionwhichisconcernedwithprocurement,development,compensation,integration
and maintenance of the personnel of an organization for the purpose of contributing towards the
accomplishments of the organization’s objectives. Therefore, personnelmanagement is the planning,
organizing, directing, andcontrollingoftheperformanceofthoseoperativefunctions(EdwardB. Philippo).

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According to the Invancevich and Glueck,“HRM is concerned withthe most effective use ofpeople
to achieve organizationaland individualgoals. It isthe wayofmanagingpeople at work, so that theygive
theirbest to the organization”.
According to Dessler (2008) the policies and practices involved in carrying out the “people” or human
resource aspects ofa management position, including recruiting, screening, training, rewarding, and
appraising comprisesofHRM.
GenerallyHRMrefers to themanagementofpeople inorganizations.It comprises oftheactivities, policies,
andpracticesinvolvedinobtaining,developing,utilizing,evaluating,maintaining,andretainingtheappropriate
number and skill mix ofemployees to accomplish the organization’s objectives. The goalofHRM is to
maximize employees’ contributions in order to achieve optimal productivity and effectiveness, while
simultaneouslyattainingindividualobjectives(suchashaving a challengingjoband obtainingrecognition),
and societalobjectives (suchas legalcompliance and demonstrating socialresponsibility).
In short Human Resource Management (HRM) can be defined as the art ofprocuring, developing and
maintaining competent workforce to achieve the goals of an organization in an effective and efficient
manner.
1.4 Nature of HRM
HRM isa management functionthat helps manager’s to recruit, select, train and develop members foran
organization. HRMis concerned withpeople’s dimensioninorganizations.
The following constitutethe core ofHRM
1. HRM Involves theApplication of Management Functions and Principles.The functions
and principles are applied to acquiring, developing, maintaining and providing remuneration to
employees inorganization.
2. Decision Relating to Employees must be Integrated. Decisions on different aspects of
employees must be consistent withother humanresource (HR) decisions.
3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an
organizationwillresult inbetterment ofservices to customers inthe formofhighqualityproducts
supplied at reasonable costs.
4. HRM Functions are not Confined to Business Establishments Onlybut applicable to non-
business organizations suchas education, healthcare, recreationand like.
HRM refers toa set ofprogrammes, functionsandactivities designedandcarried out inorderto maximize
both employee as wellas organizationaleffectiveness.
1.5 Scope of HRM
The scope ofHRM is indeed vast.Allmajor activities inthe working life ofaworker – fromthetime ofhis
orherentryinto anorganizationuntilheor she leaves theorganizationscomes underthepurviewofHRM.
The major HRM activities include HRplanning, job analysis, jobdesign, employee hiring, employee and
executive remuneration, employeemotivation, employee maintenance, industrialrelations and prospects
ofHRM.
The scope ofHuman Resources Management extends to:
 All the decisions, strategies, factors, principles, operations, practices, functions, activities and
methods related to the management ofpeople as employees inanytype oforganization.
 Allthe dimensionsrelated to people intheir employment relationships, and allthe dynamics that
flowfromit.

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Figure 1.1: Scope of HRM
The scope ofHRM isreallyvast.Allmajor activities nthe working life ofa worker – fromthe time ofhis
or her entryinto an organization untilhe or she leaves it comes under the purview ofHRM.American
Society for Training and Development (ASTD) conducted fairly an exhaustive studyin this field and
identified nine broad areas ofactivities ofHRM.
These aregivenbelow:
 HumanResource Planning
 Designofthe Organizationand Job
 Selectionand Staffing
 TrainingandDevelopment
 OrganizationalDevelopment
 Compensationand Benefits
 EmployeeAssistance
 Union/Labour Relations
 PersonnelResearchandInformationSystem
a) Human Resource Planning: The objectiveofHR Planningisto ensure that theorganizationhas
theright typesofpersons at theright time at theright place. It prepareshumanresources inventory
withaviewto assesspresentandfutureneeds,availabilityandpossibleshortagesinhumanresource.
Thereupon, HR Planning forecast demand and supplies and identify sources of selection. HR
Planning developsstrategies bothlong-termandshort-term, to meet theman-power requirement.
b) DesignofOrganizationandJob:Thisisthetaskoflayingdownorganizationstructure, authority,
relationship and responsibilities. This willalso meandefinitionofwork contentsfor eachposition
intheorganization.Thisisdone by“jobdescription”.Another important stepis“Jobspecification”.
Jobspecificationidentifies the attributesofpersons who willbe most suitable for each job which
is defined byjob description.
Personnel
Research and
Information
System
Human
resource
planning
Design of the
Organization
and Job
Selection and
Staffing Training and
Development
Organizational
Development
Employee
Assistance
Compensation
and Benefits
Union/Labour
Relations
Human
resource
management

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c) Selection and Staffing: This is the process ofrecruitment and selection ofstaff. This involves
matching people andtheir expectations withwhichthe jobspecifications andcareer pathavailable
withintheorganization.
d) Training and Development:This involvesanorganized attempt to findout training needsofthe
individuals to meet the knowledge and skillwhich is needednot onlyto performcurrent job but
also to fulfilthe futureneedsofthe organization.
e) Organizational Development: This is an important aspect whereby “Synergetic effect” is
generated in an organization i.e. healthyinterpersonal and inter-group relationship within the
organization.
f) Compensation and Benefits:This isthe area ofwages and salaries administrationwhere wages
and compensations are fixed scientificallyto meet fairness and equitycriteria. In additionlabour
welfare measures are involved which includebenefits and services.
g) Employee Assistance: Each employee is unique in character, personality, expectation and
temperament. Byand large each one ofthemfaces problems everyday. Someare personalsome
are official. Intheir case he orshe remains worried. Suchworries must be removedto make him
or her more productive and happy.
h) Union-LabourRelations:HealthyIndustrialandLabourrelationsareveryimportant forenhancing
peace and productivityin an organization. This is one ofthe areas ofHRM.
i) PersonnelResearch andInformation System:Knowledge onbehavioralscience and industrial
psychology throws better insight into the workers expectations, aspirations and behaviour.
Advancementoftechnologyofproduct andproductionmethodshavecreatedworkingenvironment
which are much different from the past. Globalization of economyhas increased competition
many fold. Science of ergonomics gives better ideas of doing a work more convenientlybyan
employee. Thus, continuousresearchinHRareasis anunavoidable requirement. It must also take
specialcareforimproving exchange ofinformationthrougheffective communicationsystems ona
continuous basis especiallyonmoraland motivation.
HRM is a broad concept;personnelmanagement (PM)and Human resource development (HRD) are a
part ofHRM.
1.6 Objectives of HRM
The primary objective of HRM is to ensure the availability of competent and willing workforce to an
organization. The specificobjectives include the following:
1) Humancapital:assistingthe organizationinobtaining the right numberand typesofemployees to
fulfillits strategicand operationalgoals
2) Developing organizationalclimate: helpingto createa climateinwhichemployees are encouraged
to developandutilizetheirskillsto the fullestandto employtheskillsandabilities oftheworkforce
efficiently
3) Helpingtomaintainperformance standardsandincreaseproductivitythrougheffectivejobdesign;
providingadequateorientation, traininganddevelopment;providingperformance-relatedfeedback;
and ensuringeffective two-waycommunication.
4) Helping to establishand maintainaharmonious employer/employee relationship
5) Helping to createand maintain a safe andhealthywork environment

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6) Developing programs to meet the economic, psychological, and socialneeds of the employees
and helping theorganizationto retaintheproductive employees
7) Ensuringthatthe organizationisincompliancewithprovincial/territorialandfederallawsaffecting
the workplace (such as human rights, employment equity, occupational health and safety,
employment standards, andlabourrelationslegislation).To help the organizationto reachits goals
8) To provideorganizationwithwell-trained andwell-motivated employees
9) To increase theemployees satisfaction and self-actualization
10) To developand maintainthe qualityofwork life
11) To communicate HR policiesto allemployees.
12) To help maintainethicalpolices and behavior.
TheabovestatedHRMobjectivescanbesummarizedunderfourspecificobjectives:societal,organizational,
and functionaland personnel.
Figure 1.2: Objectives of HRM
1) Societal Objectives: seek to ensure that the organization becomes sociallyresponsible to the
needs and challenges ofthe societywhileminimizing the negative impact ofsuch demands upon
the organization. The failure ofthe organizations to use their resources for thesociety’s benefit in
ethicalways maylead to restriction.
2) Organizational Objectives: it recognizes the role of HRM in bringing about organizational
effectiveness. It makes sure that HRMis not a standalonedepartment, but rather ameans to assist
the organization with its primary objectives. The HR department exists to serve the rest ofthe
organization.
3) FunctionalObjectives:is to maintainthe department’s contributionat a levelappropriateto the
organization’s needs. Humanresources are to beadjusted to suit theorganization’s demands. The
department’s value should not become too expensive at the cost ofthe organizationit serves.
4) PersonnelObjectives:it is to assist employees in achievingtheir personalgoals, at least as far as
these goals enhance the individual’s contribution to the organization. Personal objectives of
employees must bemet iftheyareto be maintained, retained andmotivated. Otherwise employee
performance and satisfaction maydeclinegiving rise to employee turnover.
Personnel

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1.7 Functions of HRM
Human Resources management has an important role to play in equipping organizations to meet the
challenges ofan expanding and increasinglycompetitive sector. Increase in staffnumbers, contractual
diversificationand changesindemographicprofilewhichcompelthe HRmanagersto reconfigure therole
and significance ofhumanresources management. The functions are responsive to current staffing needs,
but canbe proactive inreshaping organizationalobjectives.Allthefunctions ofHRM are correlatedwith
the core objectives of HRM (Table 1.1). For example personal objectives is sought to be realized
throughfunctions likeremuneration, assessment etc.
Figure 1.3 : Functions of HRM
Table 1.1 HRM Objectives and Functions
HRM Objectives Supporting Functions
1. Societal Objectives Legal compliance
Benefits
Union- management relations
2. Organizational Objectives Human Resource Planning
Employee relations
Selection
Training and development
Appraisal
Placement
Assessment
3. Functional Objectives Appraisal
Placement
Assessment
4. Personal Objectives Training and development
Appraisal
Placement
Compensation
Assessment

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HR management canbe thought of as seven interlinked functions taking place within organizations, as
depicted inFigure1.3Additionally, externalforces—legal, economic,technological, global, environmental,
cultural/geographic, political, and social—significantlyaffect how HR functionsare designed, managed,
and changed. The functions canbe groupedas follows:
 Strategic HR Management: As apart ofmaintaining organizationalcompetitiveness, strategic
planning forHR effectiveness canbeincreased throughtheuseofHR metrics andHRtechnology.
Humanresourceplanning(HRP) functiondetermine thenumber andtypeofemployeesneeded to
accomplishorganizationalgoals. HRP includes creatingventure teams witha balanced skill-mix,
recruiting theright people, and voluntaryteamassignment. This functionanalyzes and determines
personnelneeds inorder to create effective innovation teams. The basic HRP strategyis staffing
and employee development.
 EqualEmployment Opportunity:Compliance withequalemployment opportunity(EEO)laws
and regulations affectsallother HR activities.
 Staffing: The aimofstaffingisto provideasufficient supplyofqualified individualsto filljobsinan
organization. Jobanalysis, recruitment and selectionare the mainfunctions under staffing.
Workers job designand job analysis laid the foundation for staffing byidentifying what diverse
people do in their jobs and how theyare affected bythem.
Jobanalysisis the process ofdescribingthe nature ofajoband specifyingthe humanrequirements
such as knowledge, skills, and experience needed to perform the job. The end result of job
analysis is jobdescription. Job description spells out work duties and activities ofemployees.
ThroughHR planning, managers anticipate the future supplyofand demand for employees and
the nature ofworkforce issues, including theretentionofemployees. So HRPprecedes the actual
selection of people for organization. These factors are used when recruiting applicants for job
openings. The selectionprocess is concerned withchoosing qualified individuals tofillthose jobs.
In the selection function, the most qualified applicants are selected for hiring from among the
applicants based on the extent to which their abilities and skills are matching withthe job.
 Talent Management and Development: Beginning withthe orientation ofnew employees,
talent management and development includes different types oftraining. Orientationis the first
step towards helping a new employee to adjust himself to the new job and the employer. It is a
method to acquaint new employees with particular aspects oftheir new job, including pay and
benefit programmes, working hours and companyrules and expectations.
Training and Development programs provide usefulmeans ofassuring that the employees are
capable ofperforming their jobs at acceptable levels and also more thanthat.Allthe organizations
provide training for new and in experienced employee. In addition, organization often provide
bothonthejobandoffthejobtrainingprogrammesforthoseemployeeswhosejobsareundergoing
change.
Likewise, HRdevelopment and succession planning ofemployees and managersis necessaryto
prepare for future challenges. Career planning has developed as result of the desire of many
employees to grow in their jobs and to advance intheir career. Career planningactivities include
assessing anindividualemployee’s potentialforgrowthand advancement inthe organization.
Performance appraisalincludes encouraging risk taking, demanding innovation, generating or
adopting new tasks, peer evaluation, frequent evaluations, and auditing innovation processes.

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This functionmonitorsemployeeperformance to ensurethat it is at acceptablelevels. Thisstrategy
appraisesindividualandteamperformanceso thatthere is alinkbetweenindividualinnovativeness
and companyprofitability. Which tasks should be appraised and who should assess employees’
performance are also taken into account.
 Total Rewards: Compensation inthe formofpay, incentives and benefits arethe rewards given
to theemployees for performing organizationalwork. Compensationmanagement isthe method
for determining how muchemployees shouldbe paid for performing certainjobs. Compensation
affects staffinginthat people aregenerallyattracted to organizationsoffering a higher levelofpay
inexchange for the work performed. To be competitive, employers develop andrefine their basic
compensationsystems and mayuse variable payprograms suchas incentive rewards,promotion
fromwithintheteam, recognitionrewards, balancingteamandindividualrewardsetc. Thisfunction
uses rewardsto motivate personnelto achieve an organization’s goalsofproductivity, innovation
and profitability. Compensationis also related to employee development in that it provides an
important incentive inmotivating employees to higher levels ofjobperformanceto higher paying
jobs inthe organization.
Benefits are another form of compensation to employees other than direct pay for the work
performed. Benefitsinclude bothlegallyrequireditemsandthoseofferedat employer’s discretion.
Benefits areprimarilyrelated to thearea ofemployee maintenanceas theyprovide for manybasic
employee needs.
 Risk Management and Worker Protection: HRM addresses various workplace risks to
ensureprotectionofworkersbymeeting legalrequirementsandbeing moreresponsiveto concerns
for workplace healthand safetyalong with disasterand recoveryplanning.
 Employee and Labor Relations: The relationship between managers and their employees
must be handled legallyand effectively. Employer and employee rights must be addressed. It is
important to develop, communicate, and update HR policies and procedures so that managers
and employeesalike know what isexpected. In some organizations, union/management relations
must beaddressed as well. The termlabour relationrefers to the interactionwithemployees who
are represented by a trade union. Unions are organization of employees who join together to
obtainmore voiceindecisions affecting wages, benefits, working conditions andother aspects of
employment.WithregardtolabourrelationsthemajorfunctionofHRpersonnelincludesnegotiating
with theunions regarding wages, service conditions and resolving disputesand grievances.
1.8 Role of HRM
The role ofHRM is to plan,develop andadminister policiesand programs designed to make optimumuse
ofan organizationshumanresources. It is that part ofmanagement whichis concerned withthe people at
work and withtheir relationship within enterprises. Its objectives are: (a) effective utilization ofhuman
resources, (b) desirable workingrelationships among allmembers oftheorganizations, and (c)maximum
individualdevelopment. Humanresources functionas primarilyadministrative and professional. HR staff
focused onadministeringbenefitsandotherpayrollandoperationalfunctionsanddidn’tthinkofthemselves
as playing a part in the firm’s overallstrategy.
HR professionalshave anallencompassingrole. Theyare required to have a thoroughknowledge ofthe
organization and its intricacies and complexities. The ultimate goal of every HR person should be to
develop a linkage between the employee and organization because employee’s commitment to the
organizationiscrucial.

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The first and foremost role ofHR personnelis to impart continuous educationto theemployees about the
changes and challenges facing the countryingeneraland their organization inparticular. The employees
should know about the balance sheet ofthe company, sales progress, and diversification ofplans, share
price movements, turnover and other details about the company. The HR professionals should impart
suchknowledgeto allemployees throughsmallbooklets, video filmsand lectures.
The primaryresponsibilities ofHuman Resource managers are:
 To develop a thoroughknowledge ofcorporateculture, plans and policies.
 To act as an internalchange agent and consultant
 To initiate change and act as anexpert and facilitator
 To activelyinvolveincompany’s strategyformulation
 To keep communicationline open between the HRD function and individuals and groups both
withinandoutside the organization
 To identifyand evolve HRD strategiesinconsonance with overallbusiness strategy.
 To facilitatethe development ofvariousorganizationalteams and theirworking relationship with
other teamsand individuals.
 To tryand relate people andwork so that theorganizationobjectives are achievedefficientlyand
effectively.
 To diagnose problems and determine appropriate solution particularly in the human resource
areas.
 To provide co-ordinationand support services forthe deliveryofHRDprogrammes and services
 To evaluate theimpact ofanHRDinterventionor to conduct researchso as toidentify, develop or
test how HRD Ingeneralhasimproved individualandorganizationalperformance.
Different management gurus have deliberated different roles for the HR manager based on the major
responsibilities that theyfullfillinthe organization. Few ofthe commonlyaccepted modelsareenumerated
below.
Pat Mc Lagan has suggested nine roles that are playedbyHR practitioners
1. To bring the issues and trends concerning an organization’s external and internalpeople to the
attention of strategic decision makers and to recommend long term strategies to support
organizationalexcellenceand endurance.
2. To design and prepare HR systems and actions for implementation so that they can produce
maximumimpact onorganizationalperformance and development.
3. To facilitate the development and implementation of strategies for transforming one’s own
organizationbypursuingvalues andvisions.
4. To createa positive relationship withthe customer’s byproviding themwith the best services; to
utilize theresources to the maximumand to create commitment among the people who help the
organization to meet the customers needs whether directlyconnected or indirectlyconnected to
theorganization.
5. To identifythe learning needs hence to design and develop structured learning programmes and
materials to help accelerate learning forindividuals and groups.

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6. To enable the individuals and groups to work in new situations and to expend and change their
views so that people inpower move fromauthoritarian to participative models ofleadership.
7. To help employees to assess their competencies, values and goals so that theycanidentify, plan
and implement development plans.
8. He also assists the individual employee to add values in the workplace and to focus on the
interventions and interpersonalskills for helping people change and sustainchange.
9. He assesses the HRD practices and programmesand their impact and to communicate results so
that the organizationand its people accelerate their change and development.
According to Dave Ulrich HR play’s four keyroles.
1. Strategic PartnerRole-turning strategyinto results bybuilding organizationsthat create value;
2. ChangeAgent Role- making change happen, and in particular, help it happen fast
3. Employees Champion Role—managing the talent or the intellectualcapitalwithina firm
4. Administrative Role—trying to get things to happen better, faster and cheaper.
The role HRinorganizations has undergone anextensive change and manyorganizations have gradually
orientedthemselvesfromthetraditionalpersonnelmanagement toahumanresourcesmanagement approach.
The basic approach of HRM is to perceive the organization as a whole. Its emphasis is not only on
productionandproductivitybut also onthe qualityoflife. It seeks to achievethe paramount development
ofhumanresources and the utmost possible socio-economic development.
Current Classification of HR roles
According to R.L Mathis and J. H. Jackson (2010) severalrolescan be fulfilled byHR management. The
nature and extent ofthese roles depend on both what upper management wants HR management to do
and what competencies the HR staffhave demonstrated. Three roles are typicallyidentified forHR. The
focus ofeach ofthem, as shown in Figure 1.is elaborated below:
1. Administrative Role of HR
Theadministrative roleofHR management hasbeenheavilyoriented to administrationand recordkeeping
including essential legalpaperwork and policy implementation. Major changes have happened in the
administrative role ofHR during the recent years. Two major shifts driving the transformation of the
administrative roleare: Greater use oftechnologyand Outsourcing.
Technologyhas beenwidelyused to improvethe administrative efficiencyofHR and the responsiveness
ofHR to employees and managers, more HR functions arebecoming available electronicallyorare being
done onthe Internet usingWeb-based technology. Technologyis being used in most HR activities, from
employment applications andemployee benefitsenrollmentsto e-learningusing Internet-based resources.
Fig 1.4 Current Classification of HR Roles
Administrative
Personnel practices
Legal compliance forms
and paperwork
Operational Actions
Managing employee
relationship issues
Employee advocate
Strategic HR
Organizational/business
strategies
HR strategic or planning
Evaluation of HR
effectiveness.
Figure 1.4 : Current Classification of HR roles

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Increasingly, manyHRadministrative functions are beingoutsourced to vendors. Thisoutsourcing ofHR
administrative activities has grown dramaticallyinHR areas such as employee assistance (counseling),
retirement planning, benefits administration, payrollservices, andoutplacement services.
2. Operational and EmployeeAdvocate Role for HR
HRmanagersmanagemost HRactivitiesinline withthestrategies and operations that havebeenidentified
bymanagement and serves as employee “champion” for employee issues and concerns.
HRoftenhasbeenviewedasthe“employee advocate”inorganizations. Theyact as thevoice foremployee
concerns, and spendconsiderable time onHR“crisis management,” dealing withemployee problems that
are both work-related and not work-related. Employee advocacy helps to ensure fair and equitable
treatment for employees regardless ofpersonalbackground or circumstances.
Sometimes the HR’s advocate role maycreate conflict with operating managers. However, without the
HR advocaterole, employers could face evenmore lawsuits andregulatorycomplaints than theydo now.
The operationalrole requires HR professionals to cooperate with various departmentaland operating
managers and supervisors in order to identify and implement needed programs and policies in the
organization. Operationalactivities are tacticalinnature. Compliance withequalemployment opportunity
and other laws is ensured, employment applications are processed, current openings are filled through
interviews, supervisors are trained, safety problems are resolved, and wage and benefit questions are
answered. Forcarrying out these activities HR manager matches HR activities with the strategies ofthe
organization.
3. Strategic Role for HR
The administrativerole traditionallyhas beenthe dominant role for HR. However, as Figure1.4 indicates
that a broader transformationin HR isneeded so that significantlyless HR time and fewer HR staffsare
used just for clericalwork.
Differences betweenthe operationaland strategic roles exist in a number ofHR areas. The strategicHR
role means that HR professionals are proactive in addressing business realities and focusing on future
businessneeds, suchasstrategic planning, compensationstrategies, theperformanceofHR, and measuring
its results. However, insome organizations, HRoftendoes not playa keyrole informulating the strategies
for the organizationas a whole;insteadit merelycarries themout throughHR activities.
Manyexecutives, managers, and HR professionals are increasinglyseeing the needfor HR management
to become a greater strategic contributor to the “business” success of organizations. HR should be
responsible for knowing what the true cost ofhumancapitalis for an employer. For example, it maycost
two timeskeyemployees’annualsalariesto replace themiftheyleave. Turnover canbe controlled though
HRactivities, andifit issuccessfulinsavingthecompanymoneywithgoodretentionandtalent management
strategies, those maybe important contributions to thebottomline oforganizationalperformance.
The role of HR as a strategic business partner is often described as “having a seat at the table,” and
contributing to the strategic directions and success ofthe organization. That means HR is involvedin
devising strategy in addition to implementing strategy. Part of HR’s contribution is to have financial
expertise andto produce financialresults, not just to boost employeemoraleor administrativeefficiencies.
Therefore, a significant concernfor chieffinancialofficers(CFOs) is whetherHRexecutives areequipped
to help themto planand meet financialrequirements.

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However, even though this strategic role of HR is recognized, many organizations stillneed to make
significant progress towardfulfilling it. Someexamples ofareas where strategiccontributionscanbe made
byHR are:
 Evaluating mergers and acquisitions for organizational“compatibility,” structuralchanges, and
staffing needs
 Conducting workforce planningto anticipate the retirement ofemployees at alllevels and identify
workforce expansioninorganizationalstrategic plans
 Leadingsiteselectioneffortsfornewfacilitiesortransferringoperationsto internationaloutsourcing
 locations based on workforce needs
 Instituting HR management systems to reduceadministrative time, equipment, and staffbyusing
HRtechnology
 Working withexecutives to develop a revised sales
 compensationand incentives planas new products
It istheerawhenforthecompetitivetriumphoftheorganizationthereisaneedto involveHRMsignificantly
in anintegrated manner, whichdemandssuchcapabilities fromthe HR specialists.
The role ofHR shifted fromafacilitator to a functionalpeerwith competencies in other functions,and is
acknowledged asanequalpartnerbyothers. TheHRismotivatedto contributetoorganizationalobjectives
ofprofitabilityand customer satisfaction, and is seen as a vehicle for realization ofqualitydevelopment.
The department has a responsibilityfor monitoring employee satisfaction, sinceit is seenassubstitute to
customer satisfaction.
According to McKinsey’s 7-S framework model HR plays the role of a catalyst for the organization.
According to this framework, effective organizationalchange is a complex relationship between seven
S’s. HRMis a totalmatching process between the three Hard S’s (Strategy, Structureand Systems) and
the four Soft S’s (Style, Staff, Skills and Super-ordinate Goals). Clearly, allthe S’s have to complement
each other andhave to be alignedtowards a single corporate visionfor the organizationto be effective. It
has to be realized that most ofthe S’s are determined directlyor indirectlybythe wayHuman Resources
are managed, and therefore, HRM must be a part of the total business strategy.
1.9 HRM in the New Millennium
Human Resources have never been more indispensable than today. The competitive forces that we face
today willcontinue to face in the future demanding organizationalexcellence. In order to achieve this
extended quality, organization’s need to focus on learning, quality development, teamwork, and
reengineering. Thesefactorsare drivenbythewayorganizations implement thingsandhow employeesare
treated.
1. HR Can Help in Dispensing Organizational Excellence: To achieve this paradigm shift in the
organizationexcellencethereis a need fororganizations to reformthe wayinwhichwork iscarriedout by
the HumanResource department. Bydesigning an entirelynew roleand agenda that results in enriching
the organization’s value to customers, investors and employees, HR canhelpin delivering organizational
excellence. Thiscan be carried out byhelping line managersand senior mangers inmoving planning from
the conference roomto the market place and bybecoming an expert in the way work is organized and
executed.
HR shouldbe a representative ofthe employeesand shouldhelp the organizationinimproving its capacity

14. 14
for change. HR will help the organizations in facing the competitive challenges such as globalization,
profitabilitythroughgrowth, technology, intellectualcapital, and other competitive challenges that the
companies are facingwhile adjusting to uncontrollablychallenging changes inbusinessenvironment. The
novelrole ofHR is to rapidlyturnstrategyinto action;to manage processes intelligentlyand efficiently;to
maximizeemployeecontributionandcommitmentandto construct favorableconditionsforflawlesschange.
2. Human Resource Should be a Strategy Partner: HR should also become a partner in strategy
executions bypropelling and directing serious discussions ofhow the companyshould be organized to
carryout its strategy.
Creating the conditions for this discussioninvolves four steps. First HR need to define an organizational
architecture byidentifying the company’s wayofdoing business. Second, HR must be held responsible
for conducting an organizational audit. Third, HR as a strategic partner needs to identifymethods for
restoring the partsofthe organizationalarchitecturethat needit. Fourthand finally, HR must take stock of
its ownwork and set clearpriorities. Intheir newrole as administrative expertstheywillneed toshed their
traditionalimage and stillmake sure allroutine work for the companyis done well.
3. HR Accountability Should be Fixed to Ensure Employee Commitment: HR must be held
accountableforensuringthat employeesfeelcommittedto the organizationandcontributefully. Theymust
take responsibility for orienting and training line management about the importance ofhigh employee
morale and howto achieve it. Thenew HR should be the voice ofemployeesinmanagement discussions.
The new role for HR might also involve suggesting that more teams be used on some projects or that
employees be givenmore controlover their own work schedules.
4. The New HR Must Become a ChangeAgent: The new HR must become a change agent, which
is building the organization’s capacityto embrace and capitalize onchange. Even though theyare not
primarilyresponsibleforexecutingchangeitisthedutyoftheHRmanagerto makesurethattheorganization
carries out thechanges framed for implementation.
5. Improving the Quality of HR: The most important thing that managers can do to drive the new
mandate for HR is to improve the qualityof the HR staffitself. Senior executives must get beyond the
stereotypes ofHR professionals as incompetent support staffand unleashHR’s fullpotential
6. Change in Employment Practices: The balance sheet ofan organization shows human resource as
an expense and not as aCapital. Inthe informationage, it is perceived that the machines cando the work
more efficientlythan most people however;technologyto work is dependent onpeople.
The challengesforEmployment Practice inthe New Millenniumwillrequire that there shouldbe strategic
involvement ofthepeopleandlabour-managementpartnershipsastheybothhaveto takeorganization
ahead.
7. Benchmarking Tool Must be Mastered by HR Professionals: HR professionals must master
benchmarking, whichis a toolfor continuousimprovement- directing the humansideassociated withthe
strategicpathadoptedbythe organization. Throughthis, HRdepartment willstart appreciatingthechanges
happening withinand outside the environment while expanding the knowledgeabout how to addvalue to
decisionmakingat the highest levelofthe organization.
8.Aligning Human Resources to BetterMeet Strategic Objectives: Too oftenorganizations craft
their strategyinavacuum. Someorganizations don’t eveninclude keypeopleduringstrategyformulation
resulting inlacunae betweenthe actualproblems and the solutionsimplemented- as criticalinputsare not
sought fromthose individuals who aresupposed to implement the new strategies.

15. 15
A past CEO of Sony once said that organizations have access to the same technology and the same
information. Thedifferencebetweenanytwoorganizationsisthe“people”-thehumanresource.Empowering
theworkforceisanessentialtoolforaligninghumanresourceswiththeachievement ofcorporateobjectives.
It isthedutyofHRmanagertohiretalentedhumanresourceandtoprovidethemwithapositiveenvironment
where they willbe able to utilize their skills and potentials and to create an environment in whichthese
individuals arecomfortable taking risks.
9. Promote FromWithin andInvestinEmployees: Promoting employeesfromwithinsendsapowerful
message that the organization’s employees are valued. New blood and fresh ideas often come from
newcomers to theorganization. To avoidstagnationofthefirm, new ideas and approachesare critical.Yet
to improve employee morale, promoting individuals from within the organization is essential. This
communicates that the organizationvalues theiremployees and invests intheir humanresources.
10. Review the Recruitment and Selection Process: Akey element of human resource planning is
ensuring that thesupplyofappropriate employees(withthe right skillmix) is onboardwhenneeded. This
requires aproactiveapproachwherebythe organizationanticipatesitsneedswellinadvance. Itisimportant
to identifythe competencies being sought. That is, the criteria upon which selection decisions areto be
made should be decided in advance. Afirm must identify those skill sets required by employees to be
successful. Charles O’Reillysuggests that companies shouldhire for attitude (perhaps evenmore sothan
technicalskills).That is, thefitoftheindividualwiththevaluesoftheorganizationandthecultureofthefirm
should also beconsidered whenselecting employees. This hasbeenreferred to asthe person-organization-
fit. It isno longer enoughto simplyconsider theperson’s fit(and technicalskillset)withthe job. Partofthe
employee’s fit withthe organization should focus onthe core values and beliefs ofthe organization. This
willincrease employees’contributions to the overallsuccess ofthe organizationiftheyalreadyembrace
the core valuesofthe organizationpriorto their selection
11. Communicate MissionandVision:Ifemployees areexpected to contribute to theattainment ofthe
organization’s strategicobjectives, theymust understandwhat their role is.This canbe achievedinpart by
clearlycommunicating the mission and vision statementsofthe firm. The old adage is certainlytrue. Ifa
person does not know where he or she is going, anyroad willget himor her there.
Themissioncommunicates theidentityandpurpose oftheorganization. It providesa statementofwho the
firmis andwhat their business is. Onlythose employees whounderstand thispurposecancontributeto the
fullest extent possible. The visionstatement provides a picture ofthe futurestate ofthe firm. Itshould be
a stretchto attain.This keeps allthe organization’s employeespulling inthesame directionwitha common
end point. It is mucheasierto alignhumanresourceswithcorporate objectives whenthese employeesare
familiar withthe missionand visionofthe firm.
Asthemissionandvisionstatementsarearticulated, organizationalmembersbegintomorecloselyembrace
their verymeaning on anindividuallevel. These statements providea road map leadingemployees down
the roadtoachieveorganizationalobjectives. Employeesthenidentifyhow theycancontribute theirunique
talents toward theattainment ofthese goals.
12. Use Teams toAchieve Synergy: Synergycan be concisely defined as “two plus two equals five”.
In other words, the whole is greater than the sumofthe parts. So much more can be achieved as people
work together. Throughthe effective use ofteams, organizations can often achievesynergy. Teamgoals,
however, must bealignedwiththeorganization’sstrategicobjectives.Aligning teamobjectiveswithoverall
corporate objectives ensuresthat people are working toward the same goal

16. 16
1.10 Summary
It is criticalthat today’s organizations align their human resources to better meet strategic objectives.A
failure to do so results inwasted time, energy, and resources. Organizationsare more likelyto achieve this
alignment withtheircorporate objectives when theyreview their recruitment and selection processesfor
fit, communicate themission and vision statements, use joint goalsetting, designan appropriate reward
system, empower the workforce, promote and develop fromwithin, and use teams to achieve synergy.
HumanResource Management isthemanagement functionthat helpsthe managers toplan, recruit, select,
train, develop, remunerateandmaintainmembersforanorganization. HRM hasfourobjectivesofsocietal,
organizational, functionaland personal development.An organization must have set policies; definite
procedures and welldefinedprinciples relating to its personnelandthese contribute to theeffectiveness,
continuityand stabilityoftheorganization.
1.11 Self Assessment Questions
1. Define HRM?What are its functions and objectives?
2. Elaborate about the nature ofHRM and its relevance inpresent scenario.
3. Explain the role ofHR manager inHRM.
1.12 Reference books
- Aswathappa. K. (2008), Human Resource and Personnel Management (5th
edition), Tata
McGraw-HillPublishing CompanyLtd., New Delhi.
- Biswajeet Pattanayak (2001), Human Resource Management, Prentice HallofIndia Pvt.
Ltd., New Delhi.
- Lloyed L. Byers and Leslie W. Rue (1997), Human Resource Management (5th edition),
The McGraw-HillCompanies, USA.
- MichaelArmstrong (1999), A Handbook of Human Resource Management Practice (7th
edition), KoganPage Limited, 120 PentonvelleRoad, London.

17. 17
Unit - 2 : Human Resource Planning
Structure of Unit:
2.1 Objectives
2.2 Introduction
2.3 HumanResourcePlanning (HRP)
2.4 DefinitionofHumanResource Planning
2.5 Nature ofHRP
2.6 Objectives ofHumanResource Planning
2.7 Need for HRP in Organizations
2.8 Importance ofHRP
2.9 FactorsAffecting HRP
2.10 HRP Process
2.11 Requisites for SuccessfulHRP
2.12 Barriers to Human HRP
2.13 Summary
2.14 SelfAssessment Questions
2.15 Reference Books
2.1 Objectives
After studyingthis unit, you willbe able to:
 Understand the nature and need ofHRP
 Able to gaininformationabout different factors that affect HRP
 Realize the importanceofhumanresource planning incurrent organizationalscenario
 Understand the HRP process and the pre requisites for successfulHRP process
2.2 Introduction
As told inthelast chapter Humanresource management has started to playasignificant role inthe overall
strategic development ofthe organization.At present HR strategies are designed in tune withthe overall
businessstrategyoftheorganization. HRstrategyshouldsubservetheinterestoftheorganization,translating
firm’s goals andobjectivesinto aconsistent,integrated and complimentaryset ofprogrammes and policies
for managing people.
First part of Human resource strategyis HRP – Human Resource Planning.Allother HR activities like
employee hiring, training and development, remuneration, appraisaland labour relationsare derivedfrom
HRP.HRplanningisimportant inawidevarietyofindustriesandfirms. HRplanningaffectswhat employers
do whenrecruiting,selecting, andretaining people,andofcourse these actionsaffect organizationalresults
and success. Thechallenges caused bychangingeconomic conditions during recent year’sshow whyHR
workforce planningshould occur.
Staffing an organization is an HR activity that is both strategic and operational in nature. As the HR
Headline indicates, HR planning is important ina wide varietyofindustries andfirms. HR planningaffects
what employers do when recruiting, selecting, and retaining people, and, ofcourse these actions affect
organizational results and success. Human Resources planning mean different means to different
organizations. Tosome companies, humanresourcesplanningmeanmanagement development.It involve
helping executives to make better decisions, communicate more effectively, and know more about the
firm. The purpose ofHRP is to makethe manager a better equipped for facing the present and future.

18. 18
2.3 Human Resource Planning (HRP)
Human resource planning is important for helping both organizations and employees to prepare for the
future. The basic goalofhumanresourceplanning is to predict the future and based onthese predictions,
implement programmesto avoidanticipatedproblems.Verybrieflyhumans resource planningisthe process
ofexamining anorganization’s or individual’s future human resource needs for instance, what typesof
skills will be needed for jobs ofthe future compared to future human resource capabilities (such asthe
types ofskilled employees you already have) and developing human resource policies and practices to
address potentialproblems for example, implementing trainingprogrammes to avoidskilldeficiencies.
2.4 Definition of Human Resource Planning
According toVetter, “HRPisthe process bywhichmanagement determines howthe organizationshould
movefromitscurrent manpower positionto desired manpower position.Throughplanning, management
strives to have the right time, doing things which result in both the organizationand individualreceiving
maximumlongrunbenefits”.
AccordingtoGordonMcBeath,“HRPisconcernedwithtwo things:Planningofmanpowerrequirements
and PlanningofManpower supplies”.
According to Beach, “HRP isa process ofdetermining and assuming that the organization willhave an
adequate numberofqualified persons, availableat proper times, performingjobs whichmeet the needs of
the enterprise andwhichprovides satisfactionforthe individuals involved”
Simply HRPcan be understood as the process of forecasting an organization’s future demands for and
supplyofthe right type ofpeople in the right number. In other words HRPis the process ofdetermining
manpower needs and formulating plans to meet these needs.
HRP is a Four-Phased Process.
 The first phase involves the gathering and analysis of data through manpower inventories and
forecasts,
 The second phase consists ofestablishing manpower objectives and policies and gaining top
management approvalofthese.
 The third phase involves designing and implementing plans and promotions to enable the
organizationto achieve its manpower objectives.
 Thefourthphaseisconcernedwithcontrolandevaluationofmanpowerplanstofacilitateprogress
in order to benefit both the organization and the individual. The long run view means that gains
may be sacrificed in the short run for the future grounds. The planning process enables the
organizationtoidentifywhatitsmanpowerneedsisandwhatpotentialmanpowerproblemsrequired
current action. Thisleads to more effectiveand efficient performance.
2.5 Nature of HRP
Humanresourceplanningistheprocessofanalyzing and identifyingtheavailabilityandtheneedforhuman
resources so that the organization canmeet its objectives. Thefocus ofHR planning is to ensure that the
organizationhas theright number ofhumanresources, withthe right capabilities, at the right times, and in
the right places. InHR planning, anorganizationmust considerthe availabilityand allocationofpeople to
jobs over long periods oftime, not just for the next month or the next year1
.
HRPisa subsysteminthe totalorganizationalplanning.Actions mayinclude shiftingemployees toother
jobsintheorganization, layingoffemployeesorotherwisecuttingbackthenumberofemployees,developing

19. 19
present employees, and/or increasing the number of employees in certain areas. Factors to consider
include the current employees’knowledge, skills, and abilitiesand the expected vacanciesresulting from
retirements, promotions, transfers, and discharges. To do this, HR planning requires efforts by HR
professionals working withexecutives and managers.
2.6 Objectives of Human Resource Planning
1. To ensureoptimumutilizationofhumanresources currentlyavailable inthe organization.
2. To assess orforecast the future skillrequirement ofthe organization.
3. To providecontrolmeasuresto ensure thatnecessaryresourcesare availableasand whenrequired.
4. A series of specified reasons are there that attaches importance to manpower planning and
forecasting exercises. Theyare elaborated below:
 To link manpower planningwiththeorganizationalplanning
 To determinerecruitment levels.
 To anticipate redundancies.
 To determineoptimumtraininglevels.
 To providea basis for management development programs.
 To cost the manpower.
 To assist productivitybargaining.
 To assessfuture accommodationrequirement.
 To studythe cost ofoverheads and value ofservice functions.
 To decide whether certain activityneeds to be subcontracted, etc.
HRP exists as a part of planning process of business. This is the activity that aims to coordinate the
requirementsforthe availabilityofthedifferent typesofemployers. The majoractivities aretheforecasting,
(future requirements), inventorying (present strength), anticipating (comparison ofpresent and future
requirements) and planning (necessaryprogramto meet the requirements).
TheHRforecastsareresponsibleforestimatingthenumberofpeopleandthejobsneededbyanorganization
to achieve its objectives and realize its plans in the most efficient and effective manner.
HR needsare computed bysubtracting HR supplies or numberofthe employees available fromexpected
HR demands or number ofpeople required to produce a desired levelofoutcome. The objective ofHR
is to provideright personnelfor the right workand optimumutilizationoftheexisting humanresources.
The objectives ofhumanresource planning maybe summarized as below:
 Forecasting Human Resources Requirements: HRP is essentialto determine the future needs
ofHRinan organization. Inthe absence ofthis plan it is verydifficult to provide theright kindof
people at the right time.
 Effective Management of Change: Proper planning is required to cope with changes in the
different aspects which affect the organization. These changes need continuationofallocation/
reallocationand effectiveutilizationofHRinorganization.

20. 20
 Realizing the Organizational Goals: In order to meet the expansion and other organizational
activities the organizationalHR planning is essential.
 Promoting Employees: HRP gives the feedback in the form of employee data which can be
used indecision-making in promotionalopportunitiesto be made availablefor the organization.
 Effective Utilization of HR: The data base will provide the usefulinformation in identifying
surplus anddeficiencyinhuman resources. The objective ofHRP is to maintainandimprove the
organizationalcapacitytoreachits goals bydeveloping appropriatestrategies that willresult inthe
maximumcontributionofHR.
2.7 Need for HRP in Organizations
Major reasons for the emphasis on HRP at the Macro level:
1) Employment-Unemployment Situation: Though in general the number of educated
unemployment is onthe rise, there isacute shortage for avarietyofskills. Thisemphasizes onthe
need for more effective recruitment and employee retention.
2) Technological Change: The changes in production technologies, marketing methods and
management techniques havebeenextensive and rapid. Their effect has beenprofoundonthe job
contents andjobcontexts. Thesechangeshavecaused problemsrelatingto redundancies, retention
andredeployment.Allthesesuggest theneedto planmanpowerneedsintensivelyandsystematically.
3) Demographic Change: The changing profile of the work force in terms ofage, sex, literacy,
technicalinputsand socialbackground hasimplications for HRP.
4) Skill Shortage: Unemployment does not mean that the labour market is a buyer’s market.
Organizations generallybecome more complex and requirea wide range ofspecialist skills that
are rare and scare. Aproblem arises in an organization when employees with such specialized
skills leave.
5) Governmental Influences: Government control and changes in legislation with regard to
affirmative actionfor disadvantages groups, workingconditions and hours ofwork, restrictions
onwomenandchildemployment, causalandcontract labour, etc. havestimulatedtheorganizations
to be becomeinvolved in systematic HRP.
6) Legislative Control: The policies of “hire and fire” have gone. Now the legislation makes it
difficult to reducethe size ofanorganizationquicklyandcheaply. It is easyto increase but difficult
to shed thefat interms ofthe numbers employed becauseofrecent changes inlabour law relating
to lay-offs andclosures. Those responsible formanaging manpower must look farahead and thus
attempt to foresee manpower problems.
7) Impact ofthePressureGroup:Pressuregroupssuchas unions, politiciansandpersons displaced
fromland bylocation ofgiant enterpriseshave been raising contradictorypressure onenterprise
management suchasinternalrecruitmentandpromotion,preferenceto employees’children,displace
person, sons ofsoiletc.
8) SystemsApproach: The spread of system thinking and advent ofthe macro computer as the
part ofthe on-going revolution ininformation technology which emphasis planning and newer
ways ofhandlingvoluminous personnelrecords.

21. 21
9) Lead Time: The log lead time is necessaryinthe selection process and training and deployment
ofthe employee to handle new knowledge and skills successfully.
2.8 Importance of HRP
HRP is the subsystemin the totalorganizationalplanning. Organizationalplanning includes managerial
activitiesthatset the company’sobjectiveforthe futureanddeterminesthe appropriatemeansforachieving
those objectives. The importance ofHRPis elaborated onthebasis ofthe keyroles that it is playing inthe
organization.
1. Future Personnel Needs: Human resource planning is significant because it helps to determine
the future personnelneeds ofthe organization. Ifan organizationis facing the problemofeither
surplus or deficiencyinstaffstrength, thenit is the result ofthe absence ofeffecting HR planning.
Allpublic sectorenterprises find themselves overstaffed now as theynever had anyplanning for
personnelrequirement and went ofrecruitment spree tilllate 1980’s. The problemofexcess staff
hasbecomesuchaprominentproblemthat manyprivatesectorunitsareresortingtoVRS‘voluntary
retirement scheme’. The excess oflabor problemwould have been there ifthe organization had
goodHRPsystem.Effective HRPsystemwillalso enable theorganizationtohavegoodsuccession
planning.
2. Part of StrategicPlanning: HRPhas become an integralpart ofstrategic planning ofstrategic
planning. HRP providesinputs instrategyformulationprocess in terms ofdeciding whether the
organizationhas got theright kind ofhumanresources to carryout the givenstrategy. HRPis also
necessaryduring the implementation stage in the formofdeciding to make resource allocation
decisions relatedto organizationstructure, process and humanresources. Insome organizations
HRP play as significant role as strategic planning and HR issues are perceived as inherent in
business management.
3. Creating Highly Talented Personnel: Even though India has a great pool of educated
unemployed, it is the discretion ofHR manager that willenable the companyto recruit the right
personwithright skills to the organization. Eventhe existing staffhope the jobso frequentlythat
organization face frequent shortage of manpower. Manpower planning in the form of skill
development is requiredto help the organizationindealing withthis problemofskilled manpower
shortage
4. InternationalStrategies:An internationalexpansionstrategyofanorganizationis facilitated to
a great extent byHR planning. The HR department’s abilityto fillkeyjobswith foreignnationals
and reassignment ofemployees fromwithinor across nationalbordersis a major challengethat is
being faced byinternationalbusiness. Withthegrowing trend towards globaloperation, the need
for HRPwillas wellwillbetheneed to integrateHRPmore closelywiththeorganizations strategic
plans. Without effective HRP and subsequent attention to employee recruitment, selection,
placement, development, and career planning, the growing competitionfor foreign executives
maylead to expensive and strategicallydescriptive turnover among keydecisionmakers.
5. Foundation for Personnel Functions: HRP provides essentialinformation for designing and
implementing personnel functions, such as recruitment, selection, training and development,
personnelmovement like transfers, promotions and layoffs.
6. Increasing InvestmentsinHumanResources:Organizationsaremakingincreasinginvestments
inhumanresourcedevelopment compellingtheincreasedneedforHRP.Organizationsarerealizing

22. 22
that humanassets canincrease invalue more thanthephysicalassets.Anemployeewho gradually
develops his/ her skills and abilities becomea valuable asset for the organization. Organizations
can make investments in its personnel either through direct training or job assignment and the
rupee value ofsuch a trained, flexible, motivated productive workforce isdifficult to determine.
Top officials have started acknowledging that qualityofwork force is responsible for both short
termand long termperformance ofthe organization.
7. Resistance to Change: Employees are always reluctant whenever theyhear about change and
evenabout jobrotation. Organizationscannot shift oneemployee fromonedepartment to another
without anyspecificplanning. Evenfor carryingout jobrotation(shifting oneemployee fromone
department to another) there is a need to plan well ahead and match the skills required and
existing skillsofthe employees.
8. Uniting theViewpoint ofLine andStaffManagers:HRPhelps to unite the viewpointsofline
and staffmanagers. Though HRP is initiated and executed bythe corporate staff, it requires the
input and cooperation ofallmanagers within an organization. Eachdepartment manager knows
about the issues faced byhis department more thananyone else. So communication betweenHR
staffand line managers is essentialfor the success ofHRPlanning and development.
9. Succession Planning: Human Resource Planning prepares people for future challenges. The
‘stars’ are picked up, trained, assessed and assisted continuously so that when the time comes
such trained employeescan quicklytake the responsibilities and position oftheir boss or seniors
as andwhensituation arrives.
10. OtherBenefits: (a)HRPhelpsinjudgingtheeffectivenessofmanpowerpoliciesandprogrammes
of management. (b) It develops awareness on effective utilization ofhuman resources for the
overall development of organization. (c) It facilitates selection and training ofemployees with
adequate knowledge, experience and aptitudes so as to carryon and achieve the organizational
objectives (d) HRP encourages the companyto review and modify its human resource policies
and practices andto examine the wayofutilizing the human resources for better utilization.
2.9 Factors Affecting HRP
HRP is influencedbyseveralfactors. The most important ofthe factors that affect HRP are (1) typeand
strategyoforganization(2) organizationalgrowthcyclesand planning (3)environmentaluncertainties (4)
time horizons (5) type and quality offorecasting information (4) nature ofjobs being filled and (5) off
loading the work.
1.TypeandStrategy oftheOrganization: Typeoftheorganizationdeterminestheproductionprocesses
involve, number and type of staff needed and the supervisory and managerialpersonnel required. HR
need is also defined bythe strategicplanoforganization. Iftheorganizationhas a planfor organic growth
then organizationneed to hire additionalemployees. On the other hand Ifthe organization is goingfor
mergers and acquisition, then organization need to plan for layoffs, as mergers can create, duplicate or
overlap positions that can be handled more efficientlywithfewer employees.
Organization first decides whether to be reactive or proactive in HRP. Organizations either carefully
anticipate the needs and systematicallyplan to fillthe need inadvance (proactive) or cansimplyreact to
the needs as theyarise (reactive). Likewise, the organization must determine the width ofthe HR plan.
Organization can choose a narrow focus byplanning in onlyone or two HR areas like recruitment and
selection or can have a broadperspective byplanning inallareas including training and remuneration.

23. 23
The nature ofHR plan is also decides upon the formalityofthe plan. It can decides to have an informal
plan that lies mostlyin the minds ofthe managers and personnelstaff or can have a formalplan which is
properlydocumentedinwriting
The nature ofHR plan is also depended uponthe flexibilitythat is practiced in the organization. HR plan
should have the abilityto anticipate and dealwith contingencies. Organizations frame HRP insuchaway
that it can contain manycontingencies, which reflect different scenariostherebyassuring that theplan is
flexible and adaptable.
Figure 2.1 : FactorsAffecting HRP.
Figure 2.1 summarizesthe five factors that influence anorganizationwhile framingits strategic HRP.
2. Organizational Growth Cycles and Planning: Allorganizations pass through different stages of
growthfromthedayofits inception.Thestageofgrowthinwhichanorganizationisdetermines thenature
andextendsofHRP. Smallorganizationsintheearlier stages ofgrowthmaynot havewelldefined personnel
planning. But asthe organizationenters thegrowthstage theyfeeltheneed to planitshumanresource.At
this stage organizationgives emphasis upon employee development. But as theorganization reaches the
mature stageit experience less flexibilityand variabilityresultinginlow growthrate. HRplanningbecomes
moreformalized andless flexibleandlessinnovative andproblemlikeretirementand possible retrenchment
dominateplanning.
During the declining stage ofthe organizationHRP takes a different focus like planning to do the layoff,
retrenchment and retirement. Indeclining situationplanning always becomes reactiveinnature towards
the financialand sales distress faced bythe company.
3. Environmental Uncertainties:Political, socialand economic changesaffect allorganizationsand the
fluctuations that are happening in these environments affect organizations drastically. Personnelplanners
dealwithsuch environmentaluncertainties bycarefullyformulating recruitment, selection, trainingand
HRP
Organizational
Growth cycle
and Planning
Environmental
Uncertainties
Outsourcing
Nature of jobs
being filled
Type and
quality of
forecasting
information
Time horizons
Type and
Strategy of
Organization.

24. 24
Table 2.2 : Levels of HRP Information
Strategic Information General Organizational
Information
Specific Information
Necessary for HRP
Product mix
Customer mix
Organizational structure
Information flows
Job analysis
Skills inventories
Competitive emphasis Operating and capital
budgets
Functional area objectives
Management inventories
Geographic limits of
market
Production schedules
Distribution channels
Available training and
development programmes
Sales territories
Production processes
Recruitment sources
Level of technology
Planning horizons
Labour market analysis
Compensation programmes
Constitutional provisions
and labour laws
Retirement plans
Turnover data.
developmentpoliciesandprogrammes.Thebalanceintheorganizationisachievedthroughcarefulsuccession
planning, promotionchannels,layoffs, flexitime, jobsharing, retirement, VRS andother personnelrelated
arrangements.
4. Time Horizons: HR planscan be short termor longterm. Short termplans spans fromsixmonths to
one year, while long term plans spread over three to twentyyears. The extent oftime period depends
uponthe degreeofuncertaintythat isprevailing inanorganizations environment. Greater the uncertainty,
shorter theplan time horizonandvice versa.
Source: Elmer H. Burack and Nicholas J. Mathis, Human Resource Planning- A Pragmatic approach
to manpower Staffing and development, Illinosis, Brace- Park Press, 1987, p. 129.
5. Type andQuality ofinformation:The informationused to forecast personnelneeds originates from
a multitude ofsources. The forecast dependsto a large extent uponthe type ofinformationand thequality
ofdata that is available to personnelplanners. The qualityand accuracyofinformationdepend uponthe
clarity with which the organizational decision makers have defined their strategy, structure, budgets,
production schedule and so on.
Source: Leap& Crino, Personnel/ Human Resource Management, p. 161.
6. Nature ofJobs Being Filled: Personnelplanners need to be reallycarefulwith respect to the nature
ofthe jobsbeing filled intheorganization. Employees belongingto lower levelwho needverylimited skills
can berecruited hastilybut, whilehiring employees for higherposts, selectionand recruitment need to be
carried out with high discretion. Organizationneed to anticipate vacancies far inadvance as possible, to
provide sufficient timeto recruit suitable candidate.
Table 2.1 : Degree of Uncertainty and Length of Planning Period
Short Planning period- uncertainty/
instability
Long planning period- certainty/ stability
Many new competitors
Rapid changes in social and economic
conditions
Strong competitive position
Evolutionary, rather than rapid social,
political and technological change
Unstable product/ service demand patterns
Small organizational size, poor management
practices (crisis Management)
Stable demand patterns
Strong management practices.

25. 25
7. Outsourcing: Several organizations outsource part of their work to outside parties in the form of
subcontract. Outsourcing is a regular feature both in the public sector as well as in the private sector
companies. Manyofthe organizations havesurplus labour and hence instead ofhiring more people they
go for outsourcing. Outsourcing is usuallydone for non criticalactivities. Outsourcing of non- critical
activities throughsubcontractingdeterminesHRP.
2.10 HRP Process
HRP effectivelyinvolves forecasting personnelneeds, assessing personnelsupplyandmatching demand–
supplyfactors throughpersonnelrelated programmes. The HR planning process is influenced byoverall
organizationalobjectives andenvironment ofbusiness.
Figure 2.2 : The HRP Process
EnvironmentalScanning:
It refers to the systematic monitoring ofthe externalforces influencing the organization. The following
forces are essentialfor pertinent HRP.
 Economicfactors, includinggeneraland regionalconditions.
 Technologicalchanges
 Demographic changes includingage, compositionand literacy,
 Politicalandlegislative issues, including lawsand administrative rulings
 Socialconcerns, including child care, educationalfacilities and priorities.
Byscanning the environment for changes that willaffect an organization, managers can anticipate their
impact and make adjustments early.
OrganizationalObjectivesand Policies:HR planis usuallyderived fromthe organizationalobjectives.
Specific requirements in terms of number and characteristics of employees should be derived from
organizationalobjectives
Once the organizationalobjectives are specified, communicatedand understood byallconcerned, theHR
department must specifyits objective withregard to HR utilizationinthe organization.

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HR Demand Forecast:
Demand forecastingis the process ofestimating the future quantityand qualityofpeoplerequired to meet
the future needs of the organization.Annualbudget and long-termcorporate planwhen translated into
activityinto activityformthe basis for HR forecast.
For eg: inthe case ofa manufacturing company, the sales budget willformthe basis for productionplan
giving thenumber andtype ofproductsto be producedineachperiod. Thiswillformthe basisuponwhich
the organizationwilldecide the number ofhours to be workedbyeachskilled categoryofworkers. Once
the number hours required is available organizationcan determine the qualityand quantityofpersonnel
required for the task.
Demand forecasting is influenced byboth internalfactors and externalfactors: externalfactors include-
competition, economic climate, laws and regulatorybodies, changes in technologyand social factors
whereasinternalfactorsarebudget constraints,productionlevel, newproductsandservices, organizational
structure and employee separations.
Demand forecasting is essentialbecause it helps the organization to 1. Quantify the jobs, necessaryfor
producing agiven number ofgoods, 2. To determine the nature ofstaffmixrequired in the future, 3. To
assessappropriatelevelsindifferentpartsoforganizationso asto avoidunnecessarycoststo theorganization,
4. To prevent shortages ofpersonnelwhereand when, theyare neededbythe organization. 5.To monitor
compliances withlegalrequirements with regard to reservation ofjobs.
Techniques like managerialjudgment, ratio- trend analysis, regression analysis, work studytechniques,
Delphitechniques aresome ofthe majormethods used bythe organizationfor demand forecasting.
HR Supply Forecast:
Supplyforecast determines whether the HR department willbe able to procure the required number of
workers. Supplyforecast measures the numberofpeople likelyto be available fromwithinand outside an
organization, aftermaking allowance for absenteeism, internalmovements and promotions, wastage and
changes inhours, and other conditions ofwork.
Supply forecast is required because it is needed as it 1. Helps to quantify the number of people and
positions expected to be available infutureto help the organizationrealizeits plans andmeet itsobjectives
2. Helpsto clarifythe staffmixes that willariseinfuture 3. It assesses existing staffing indifferent parts of
the organization. 4. It willenablethe organizationto prevent shortageofpeople whereandwhentheyare
most needed. 5. It also helpsto monitor future compliancewith legalrequirements ofjob reservations.
Supplyanalysis covers the existing human resources, internalsources ofsupplyand externalsourcesof
supply.
HRProgramming:
Once an organization’s personneldemand and supplyare forecastedthe demand and supplyneed to be
balanced inorder that the vacanciescan be filled bythe right employees at the right time.
HR Plan Implementation:
HR implementationrequiresconverting an HR planinto action.Aseries ofactionare initiated asapart of
HR plan implementation. Programmes such as recruitment, selection and placement, training and
development, retraining and redeployment, retention plan, succession plan etc whenclubbed together
formtheimplementationpart oftheHR plan.

27. 27
Controland Evaluation:
Controlandevaluation represent the finalphase ofthe HRPprocess.AllHR planinclude budgets, targets
and standards. The achievement ofthe organizationwillbe evaluated and monitored against the plan.
During this final phase organization willbe evaluating on the number of people employed against the
established (boththose who are inthe post and those who are in pipe line) and on the number recruited
against the recruitment targets. Evaluation is also done with respect to employment cost against the
budget and wastage accrued so that corrective action can be taken infuture.
2.11 Requisites for Successful HRP
1. HRP must berecognized as anintegralpart ofcorporate planning
2. Support oftopmanagement is essential
3. There should be some centralization with respect to HRP responsibilities inorder to have
co-ordinationbetweendifferent levels ofmanagement.
4. Organization records must be complete, up to date and readilyavailable.
5. Techniques used for HR planning should be those best suited to the data available and
degree ofaccuracyrequired.
6. Data collection, analysis, techniques ofplanning and the planthemselves needto be constantly
revised and improved inthe light ofexperience.
2.12 Barriers to HRP
Human Resource Planners face significant barriers while formulating an HRP. The major barriers are
elaborated below:
1) HR practitioners are perceived as experts in handling personnelmatters, but are not experts in
managing business. The personnelplanconceivedand formulated bythe HR practitioners when
enmeshed with organizational plan, might make the overall strategic plan of the organization
ineffective.
2) HRinformationoftenisincompatiblewithotherinformationusedinstrategyformulation. Strategic
planning efforts have long been oriented towardsfinancialforecasting, oftento the exclusion of
other types ofinformation. Financialforecasting takes precedence over HRP.
4) Conflict may exist between short term and long term HR needs. For example, there can be a
conflict betweenthepressureto get thework done ontimeand longtermneeds,suchaspreparing
people for assuming greater responsibilities. Manymanagers are ofthe beliefthat HR needs can
be met immediately because skills are available on the market as long as wages and salaries are
competitive. Therefore, long times plans are not required, short planningare onlyneeded.
5) There is conflict between quantitative and qualitative approaches to HRP. Some people view
HRP asa number game designedto track the flowofpeople across the department. Others take
a qualitative approachand focus onindividualemployee concerns such as promotionand career
development. Best result can be achieved if there is a balance between the quantitative and
qualitative approaches.
6) Non-involvement of operating managers renders HRP ineffective. HRP is not strictly an HR
department function. Successful planning needs a co-ordinated effort on the part of operating
managers andHR personnel.

28. 28
2.13 Summary
Today, humanresource planning is viewed as the way management comes to grasp the ill-defined and
tough-to-solve humanresource problems facinganorganization. Humanresource planningisthe process
ofdetermining the human resources required bythe organization to achieve its goals. Human resource
planning also looks at broader issues relating to the waysin which people are employed and developed,
inorderto improveorganizationaleffectiveness. HRPisa decisionmakingprocessthat combinesactivities
such as identifying and acquiring the right number ofpeople with the proper skills, motivating themto
achieve highperformance and creatinginteractivelinks betweenbusiness objectivesare resource planning
activities. HRPsets out requirements inbothquantitative and qualitative terms.Accurate manpowerplan
is a dream.Acommon error ofmanymanagers is to focus on the organization’s short termreplacement
needs. Any human resource plan, if it is to be effective, must be derived from the long term plans and
strategiesoftheorganization. The various approachesto humanresource planning underwhicha number
ofmajor issuesandtrends intoday’swork planthat willaffect organizationand employeesare(1)Examine
externaland internal issues, (2) Determining future organizations capabilities, (3) Determining future
organizationalneeds, and(4)Implementinghumanresourcesprogrammesto addressanticipated problems.
Although change is occurring veryrapidlyin the work world it is important for both organizations and
employees to monitor issues andevents continuouslyand consider their potentialeffects.
2.14 Self Assessment Questions
1. Explaintherole ofHR professionalinhuman resource planning process in organizations.
2 Describe the various forecasting techniques and how these techniques arebeing used in
humanresource planning.
3 Explainthebarriers to HRP. Bring out the requisites foreffective planning.
2.15 Reference Books
- Lloyd L. Byars and Leslie W. Rue (1997), Human Resource Management (5th edition), The
McGraw-HillCompanies, USA.
- Michael Armstrong (1999), A Handbook of Human Resource Management Practice (7th
edition), KoganPage Limited, 120 PentonvelleRoad, London.
- Biswajeet Pattanayak (2001), Human Resource Management, Prentice HallofIndia Pvt. Ltd.,
New Delhi.
- K. Aswathappa (1999), Human Resource and Personnel Management (2nd edition), Tata
McGraw-HillPublishing CompanyLtd., New Delhi.
- P. Subba Rao (2004), Management and Organisational Behaviour (First edition), Himalaya
PublishingHouse.

29. 29
Unit - 3 : JobAnalysisand Job Design
Structure of Unit:
3.0 Objectives
3.1 Introduction
3.2 JobAnalysis Defined
3.3 Uses ofJobAnalysis
3.4 Steps inJobAnalysis
3.5 Methods for CollectingJobAnalysis Data
3.6 Job Description
3.7 Writing JobDescription
3.8 JobSpecification
3.9 JobDesign
3.10 Methods ofJob Design
3.11 Summary
3.12 SelfAssessment Questions
3.13 Reference Books
3.0 Objectives
After completingthis unit, you willbe able to:
 Define jobanalysis.
 Understand the basic steps in a Job analysis.
 Identifythe major methods ofcollectingJobanalysis data.
 Recognize the major elements ofjob descriptions
 Explain how to prepare job descriptions and job specification and their use.
 Point out and explainjob design and its various methods
 Distinguish between jobenlargement and job enrichment.
3.1 Introduction
Manpower planning is concerned with determination of quantitative and qualitative requirements of
manpower for theorganization. Determinationofmanpower requirements is one ofthe most important
problems in manpower planning. Job analysis and job design, provide this knowledge. Before going
through the mechanismof job analysis and job design, it is relevant to understand the terms which are
used in jobanalysis and job design.
Job:Ajobmaybe defined as a “collection or aggregation oftasks, duties and responsibilitieswhich asa
whole, are regarded as a regular assignment to individualemployees,” and whichis different fromother
assignments, In other words, whenthe totalwork to be done is divided and grouped into packages, we
callit a “job.” Each job hasa definite title based uponstandardized trade specifications withinajob;two
or more grades may be identified, where the work assignment may be graded according to skill, the
difficultyofdoingthem, orthequalityofworkmanship. Thus, it maybenoted that apositionisa“collection
o tasks and responsibilities regularlyassigned to one person;”while a job is a “group ofposition, which
involve essentiallythesameduties, responsibilities, skillandknowledge.”Apositionconsistsofa particular
set ofduties assigned to anindividual.

30. 30
Decenzo and P. Robbinsdefine other terms as follows:
Task: It is a distinct work activitycarried out for a distinct purpose.
Duty: It is a number oftasks.
Position: It refers to one or more duties performed byone person in anorganization, There are at
least as manypositions as there are workers in the organization;vacancies maycreate
more positions thanemployees.
Job: It isa type ofpositionwithinthe organization.
Job Family: It isgroup oftwo ormore jobs that eithercallfor similar workercharacteristics orcontain
parallel work tasks as determined byjob analysis.
Occupation: It is agroup ofsimilar jobs found across organizations.
Career: It represents a sequence ofpositions, jobs, or occupations that a
person has over hisworking life.
3.2 Job Analysis Defined
Developinganorganizationalstructure, resultsinjobswhichhavetobestaffed. Jobanalysisistheprocedure
throughwhichyou determine the dutiesand nature ofthe jobs and the kinds ofpeople (in terms ofskills
and experience) who should be hired for them.’It provides youwithdata onjobrequirements, whichare
then used for developing job descriptions (what the job entails) and job specifications (what kind of
people to hire for the job). Some ofthe definitions ofjobanalysis ategiven as follows, to understand the
meaning ofthetermmore clearly:
According to Michael L. Jucius, “Jobanalysis refers to the process ofstudying the operations, duties
and organizational aspects of jobs in order to derive specifications or as they called by some, job
descriptions.”
According to DeCenzo and P. Robbins, “Ajob analysis is a systematic exploration of the activities
within a job. It is a basic technicalprocedure, one that is used to define the duties, responsibilities, and
accountabilities ofa job.”
Figure 3.1: Job Analysis Information Hierarchy
(Adapted from Decenzo and P. Robbins, Personnel/Human Resource Management)
Element
Task
Duty
Position
Job
Job Family
Occupation
Career

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According to Herbert G Herman “A job is a collection of tasks that can be performed by a single
employee to contribute to the productionofsome product or service provided bythe organization. Each
job has certain ability requirements (as well as certain rewards) associated with it. Jobanalysis process
used to identifythese requirements.”
Flippo has offered a more comprehensive definition ofjob analysis as, “Job analysis is the process
ofstudying and collecting informationrelatingto the operations andresponsibilities ofa specificjob. The
immediate products ofthe analysis are job descriptions and job specifications”
Thus, jobanalysisinvolves the process ofidentifying the nature ofa job(jobdescription) and thequalities
ofthe likelyjob holder (jobspecification).
3.3 Uses of Job Analysis
As summarized inFigure 3.2 the informationgenerated bythe job analysis is used as a basis ofseveral
interrelatedpersonnelmanagement activities:
1.Achievement ofGoals:Weather and Davis have stated, “Jobs are at the core ofeveryorganization’s
productivity,iftheyaredesignedwellanddoneright,theorganizationmakesprogresstowardsitsobjectives.
Otherwise, productivity suffers, profits fall, and the organization is less able to meet the demands of
society, customer, employees, and other with a stake inits success.”
2. Organizational Design: Jobanalysis will be usefulin classifying the jobs and the interrelationships
among the jobs. On the basis ofinformation obtained through job analysis, sound decisions regarding
hierarchicalpositionsandfunctionaldifferentiationcanbetakenand this willimproveoperationalefficiency.
3. OrganizationandManpowerPlanning: It is helpfulinorganizationplanning, for itdefines labour in
concretetermsandco-ordinatestheactivitiesoftheworkforce, andclearlydividesdutiesandresponsibilities.
4. Recruitment and Selection: Jobanalysis provides you with information onwhat the jobentails and
what humanrequirements are required to carryout these activities. This informationis thebasis onwhich
you decide what sort ofpeople to recruit and hire.
JobDescription
JobSpecification
Organizationaldesign
Organization and m an
power planning
Recruitment&selection
Placement&orientation
Training&development
Safetyandhealth
Employeecounseling
Job
Analysis
Performanceappraisal
Figure3.2:UsesofJobAnalysisFigure 3.2 : Uses of Job Analysis

32. 32
5. Placement and Orientation: Job analysis helps in matching the job requirements with the abilities,
interests and aptitudes ofpeople. Jobs willbe assigned to persons on the basis ofsuitabilityforthe job.
The orientationprogrammewillhelp the employeeinlearning the activities andunderstanding dutiesthat
are required to performa givenjob more effectively.
6. EmployeeTrainingandManagement Development:Jobanalysisprovidesthenecessaryinformation
to the management oftraining and development programmes. It helps in to determine the content and
subject matter ofin training courses. It also helps in checking applicationinformation, interviewing test
results andin checking references.
7. JobEvaluation andCompensation: Jobevaluationis theprocessofdetermining therelativeworthof
different jobsinanorganizationwitha view to link compensation, bothbasic andsupplementary, withthe
worth of the jobs. The worth of a job is determined on the basis of job characteristics and job holder
characteristics. Job analysis provides both in the forms ofjob descriptionand jobspecification.
8. Performance Appraisal: Performance appraisal involves comparing each employee’s actual
performance with his or her desired performance. Through job analysis industrialengineers and other
experts determine standards to be achieved and specific activities to be performed.
9. Health and Safety: It provides an opportunityfor identifying hazardous conditions and unhealthy
environmentalfactors so that corrective measures maybe taken to minimize and avoid the possibilityof
accidents.
10. EmployeeCounselling: Jobanalysisprovidesinformationabout careerchoicesandpersonallimitation.
Suchinformationishelpfulinvocationalguidanceandrehabilitationcounselling. Employeeswho areunable
to cope with the hazards and demands ofgiven jobsmaybe advised to opt for subsidiaryjobs or to seek
prematureretirement.
3.4 Steps in Job Analysis
The sixsteps ofjob analysis are shownin figure 3.3:
Collection of back
ground information
Selection of job
for analysis
Collection of job
analysis data
Information processing
Job
Description
Job
Specification
Determination of uses
of job analysis
Figure 3.3 : Job Analysis Process

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1. Determine the Use of the Job Analysis Information: Start by identifying the use to which the
informationwillbe put, since thiswilldetermine the type ofdata you collect and the technique youuse to
collect them.
2. Collection ofBackground Information: According to Terry, “The make-up ofa job, its relation to
other jobs, and its requirements for competent performance are essentialinformation needed for a job
evaluation. Thisinformationcanbehadbyreviewingavailablebackgroundinformationsuchasorganization
charts (which show how the job in question relates to other jobs and where they fit into the overall
organization);classspecifications (whichdescribe thegeneralrequirementsoftheclassofjobtowhichthe
jobunderanalysis belongs);and theexisting jobdescriptions whichprovide a starting point fromwhichto
build the revised jobdescription”.
3. Selection of Jobs for Analysis: To do job analysis is a costly and time consuming process. It is
hence, necessaryto select a representative sample ofjobs for purposes of analysis. Priorities of various
jobs canalso be determined.Ajob maybe selected because it has undergone undocumented changes in
jobcontent. The request for analysis ofa job mayoriginate with the employee, supervisor, or a manager.
Whenthe employee requests an analysis it is usuallybecause new job demands have not been reflectedin
changes in wages. Employee’s salaries are, inpart, based uponthenature ofthe work that theyperform.
Some organizations establish a time cycle for the analysis of each job. For example:Ajobanalysis may
be required for alljobs everythree years. New jobs must also be subjected to analysis.
4. Collection of JobAnalysis Data: Job data on features of the job, requited employee qualification
and requirements, should be collected either formthe employees who actuallyperforma job; or from
other employees (such as foremen or supervisors) who watch the workers doing a job and there by
acquireknowledge about it;orfromthe outsidepersons, knownasthetradejobanalysiswho areappointed
to watchemployees performing a job. The duties ofsucha trade jobanalyst are (i) to outlinethe complete
scope of a job and to consider all the physical and mental activities involved in determining what the
worker does.; (ii) find out why a worker does a job; and for this purpose he studies why each task is
essentialfor theoverallresult;and (iii) the skillfactor whichmaybe needed inthe worker to differentiate
between jobs and establish the extent ofthe difficultyofanyjob.
5. Processing the Information: Once job analysis information has been collected, the next step is to
place it in a formthat willmake it usefulto those charged with the various personnelfunctions. Several
issuesarise withrespect to this. First, how muchdetailisneeded?Second, canthejobanalysis information
be expressed inquantitative terms?These must be considered properly.
6. Preparing Job Descriptions and Job Classifications: Job information which has been collected
must be processed to prepare the jobdescriptionform. Itis astatement showing fulldetails oftheactivities
of the job. Separate job description forms may be used for various activities in the job and may be
compiled later on. The job analysis is made withthe help ofthese description forms. Theseforms maybe
used as reference for the future.
7. Developing Job Specifications: Job specifications are also prepared on the basis of information
collected. It is a statement of minimum acceptable qualities of the person to be placed on the job. It
specifies the standard by which the qualities of the person are measured. Job analyst prepares such
statement taking into consideration the skills required inperforming the job properly. Such statement is
used inselecting a person matchingwith the job.

34. 34
3.5 Methods for Collecting Job Analysis Data
As discussedearlier, informationis to be collected for jobanalysis. Such information maybe collected by
the trained job analysis, superiors concerned and job holders themselves. Job information is collected
throughthefollowingmethods:
1. Participant Diary/Logs: Workers can be to keep participant diary/long or lists of things they do
during the day. For everyactivityheor she engages in, theemployee records the activity(along withthe
time) in a log. This can provide you with a very comprehensive picture of the job, especially when it’s
supplementedwithsubsequent interviews withthe workerand his orhersupervisor.This methodprovides
more accurateinformationifdonefaithfully. However, it isquitetime consuming. Further, eachjobholder
maymaintainrecordsaccordingto hisownwaywhichpresentsproblemsinanalysisatlaterstage. Therefore,
it haslimited application.
2. Interview: There are three types of interviews you can use to collect job analysis data: individual
interviews with each employee; group interviews with groups of employees having the same job; and
supervisor interviews withone or more supervisors who are thoroughly knowledgeable about the job
being analyzed. The group interview isused whena largenumber ofemployees areperforming similaror
identical work, since this can be a quick and inexpensive way of learning about the job. As a rule,the
worker’simmediatesupervisorwould attendthe groupsession;ifnot, you shouldinterview the supervisor
separatelyto get that person’s perspective onthe duties and responsibilities ofthe job.
3. Critical Incidents: In this method, job holders are asked to describe incidents concerning the job on
the basis oftheir past experience. The incidents so collected are analyzed and classifiedaccordingto the
job areas they describe, Afairly picture of actual job requirements can be obtained by distinguishing
betweeneffectiveand ineffectivebehaviorsofworkersonthejob.However, thismethodistimeconsuming.
The analyst requires a highdegree ofskillto analyze the contents ofdescriptions given byworkers.
4. TechnicalConference Method: This method utilizes supervisors with extensive knowledge of the
job. Here, specific characteristics of a job are obtained from the “experts.”Although it is a gooddata
gathering method, it often overlooks theincumbent worker’s perceptionabout what theydo ontheir job.
5. Job Performance: Under this method, the job analyst actuallyperforms the job under studyto get
first-hand experience ofthe actualtasks, andphysicaland socialdemands ofthe job. This method can be
used onlyfor jobs where skillrequirements are low and can be learnt quicklyand easily. This is atime-
consuming method andis not appropriate for jobsrequiring extensive training.
6. Functional JobAnalysis: Functionaljobanalysis (FJA) isemployee- oriented analyticalapproach of
job analysis. This approach attempts to describe the whole person onthe job. The mainfeatures ofFJA
includethefollowing:
 The extent to which specific instructionare necessaryto performthe task
 The extent to which reasoning andjudgment are required to performthe task
 The mathematicalabilityrequired to performthe task and
 The verbaland language facilities required to performthe task.
7. Observation Method: Using this method, a job analyst watches employees directly on the job.
Observations are made on various tasks, activities, the pace at whichtasks are carried out, and theway
different activities areperformed. This method is suitable for jobs that involvemanual, standardized, and
short job cycle activities. This method also requires that the entire range of activities be observable;
possible withsome jobs.

35. 35
8. Questionnaires: The method is usually employed by engineering consultants. Properly drafted
questionnaires are sent out to job-holders for completion and are returned to supervisors. However,the
informationreceived is often unorganized and incoherent. The idea inissuing questionnaire is to elicit the
necessaryinformationfromjob –holders so that anyerror mayfirst be discussed withthe employee and,
after corrections, maybe submitted to the job analyst.
This techniqueistimeconsuming andgenerallydoesnotyield satisfactoryresults becausemanyemployees
do not completethe questionnaire or furnishincorrect informationbecause oftheir own limitations.The
use ofquestionnaire is recommended onlyincase ofthose technicaljobs where the jobcontents arenot
completelyknownto the supervisor or the operation is too complexto observe.
There are certain standardized questionnaires developed bya few agencies which are used by various
organizationsfor jobanalysis. Most ofthesequestionnairesareoftwo types:positionanalysisquestionnaire
and management positiondescriptionquestionnaire that are decribed as follows:
a. Position Analysis Questionnaire. Position analysis questionnaire (PAQ) is a highly specialized
instrument for analyzing a jobinterms ofemployee activities.The PAQ developed byPurdue University
is a comprehensivequestionnaire for collecting informationfor jobanalysis.
In this questionnaire, various job elements have been grouped into six categories with each category
containing relevant jobelements resulting into 195 elements as showninTable 3.1.
Questionnaire for Job Analysis
1. Your Name ………..………..………..………..………..………..………..
2. Title or Designation of your job …………………………………………
3. Regular or Extra …………………………………………………………
4. Your Department ……………………………………………………….
5. To whom do you report directly (Name and Title): ………………………
6. Description of work:
(a) Daily Duties:
(b) Periodical Duties:
(c) Occasional Duties:
7. Your knowledge Requirements:
(A) Store Procedure and Methods:
(B) Merchandise:
8. What Equipment do you use?
9. What Materials do you work with or sell?
10. If you supervise the work of others, state how many and what their jobs are.
11. To what job would you normally expect to be promoted?
12. From what job were you transferred to your present job?

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Table 3.1 : PositionAnalysis Questionnaire
The advantage ofPAQ is that it provides a quantitative scoreor profile ofanyjobinterms ofhowthat job
rates onthebasic activities. The PAQ’srealstrengthis, thus, inclassifying jobs. PAQ’s resultscanbe used
to compare the jobs relative to one another and paylevels can be assigned for each job.
The major problemwithPAQ is thetime it takes fora jobanalyst to fillout the ratings. However,PAQ has
been widelyresearched and tested and appears to be both reliable and valid.
b. Management Position Description Questionnaire: Management position description is a highly
structured questionnaire containing208items relatingto managerialresponsibilities, restrictions,demands
and other miscellaneouspositioncharacteristics.W.W.TomovandP.R. Pinto havedevelopedthe following
Management positionDescriptionfactors:
 Product, marketing andfinancialstrategyplanning.
 Coordinationofotherorganizationunits and personnel
 Internalbusiness Control
 Products andservices responsibility
 Public andcustomer relations
 Advanced consulting
 Autonomyofactions
 Approvaloffinancialcommitments
 StaffService
 Supervision
 Complexityand stress
 Advanced financialresponsibility
 Broad personnelresponsibility
The above methods are the most popular ones for gathering job analysis data. Theyallprovide realistic
informationabout what jobincumbentsactuallydo. Theycanthusbe used for developingjobdescriptions
and job specifications. Caroll L. Shartle, Otis and Lenhert have provided the following suggestionsfor
making the jobanalyst’s task simple.
Job Aspects No. of
elements
Information input - Where and how do employee get information to do their
job?
35
Mental processes- what reasoning, planning, organizing, and decision
making is done?
14
Work output – what physical activities, tools and machines are used? 49
Relationships – what contact with other people, both in the company and
outside is maintained or developed?
36
Job context- what is the physical and social context in which the job is
maintained?
19
Other job characteristics – what other activities, conditions or Characteristics
not covered by the categories are relevant?
42