Chapter 4
Strategic Planning,
Human Resource Planning,
and
Job Analysis
Adapted from Pearson Education, Inc. Copyright © 2019
Strategic Planning
Process by which top
management determines the
overall organizational
purposes and objectives and
how they are to be achieved
Strategic planning at all levels
can be divided into four steps
Strategic Planning and Implementation Process
MISSION DETERMINATION
Decide what is to be accomplished
(purpose) Determine principles that will
guide the effort
ENVIRONMENTAL ASSESSMENT
External Determining external conditions, threats, and opportunities
Internal Determining competencies, strengths, and weaknesses within the
organization.
OBJECTIVE SETTING
Specifying corporate-level objectives that are:
•Challenging, but
attainable • Measurable
• Time-specific
• Documented
(written)
STRATEGY SETTING
Specifying and documenting corporate level strategies and
planning
STRATEGY IMPLEMENTATION
Strategy Implementation
Leadership
Organizational Structure
Information and Control
Systems
Human Resources!
Human Resource Planning
Systematic process of
matching the internal and
external supply of people
with job openings
anticipated in the
organization over a
specified period of time
Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning
Human Resource Planning
Forecasting Comparing Forecasting
Human Requirements Human Resource
Resource Availability
Requirements and
Availability
Demand = Surplus of Shortage of
Supply Workers Workers
No Action Restricted Hiring, Recruitment
Reduced Hours, Early
Retirement, Layoffs, Selection
Downsizing
Two Components of Human Resource Planning
Requirements forecast
Determining the number, skill, and location of employees
that the organization will need at future dates in order to
meet its goals
Availability forecast
Determination of whether the firm will be able to secure
employees with the necessary skills, and from what
sources
A firm becomes aware of having a surplus or
shortage of employees as a result of comparing
requirements and availability
Forecasting Human Resource
Requirements
Zero-based forecasting
Bottom-up approach
Relationship between
Volume of Sales and
Number of Workers
Required
Use of HR Databases
Many workers needed for future positions
may already work for the firm
Databases include information on all
managerial and nonmanagerial employees
Companies search databases within the
company to see if employees with needed
qualifications already exist.
Shortage of Workers Forecasted
Innovative recruiting
Compensation incentives
Training programs
Different selection standards
Surplus of Employees
Restricted hiring
Employees who leave are not
replaced
Reduced hours
Downsizing - Layoffs
Alternatives to Layoffs
Although layoffs can be a necessary cost-
cutting measure, alternatives include:
Restricted hiring policy
Early retirement
Moving employees from full-time to 30 hours a
week without reducing health benefits
Reduce the workweek
Offer an unpaid holiday option
4-12
Job analysis
Systematic process of determining the skills, duties, and
knowledge required for performing jobs in an
organization
Job
Consists of a group of tasks that must be performed for
an organization to achieve its goals
Position
Collection of tasks and responsibilities performed by one
person; there is a position for every individual in an
organization
Questions Job Analysis Should Answer
What physical and mental tasks does
worker accomplish?
Where is job to be accomplished?
How does worker do the job?
Why is the job done?
What qualifications are needed to perform
the job?
When Job Analysis Is Performed
When the organization is founded
and a job analysis program is initiated
When new jobs are created
When existing jobs are changed
significantly
4-15
4-15
Job Analysis: A Basic Human Resource
Management Tool
Staffing
Tasks Responsibilities Duties
Training and
Development
Performance Appraisal
Job
Compensation
Descriptions Safety and Health
Job Employee and Labor
Analysis Job Relations
Specifications Legal Considerations
Knowledge Skills Abilities
Reasons For Conducting
Job Analysis
Staffing
Training and Development
Performance Appraisal
Compensation
Safety and Health
Employee and Labor Relations
Legal Considerations
Summary of Types of Data Collected
Through Job Analysis
Work activities
Machines, tools, equipment, and work aids
used
Job-related tangibles and intangibles
Work performance (time taken for a task)
Job context (work schedule, physical working conditions)
Personal requirements for the job (personality,
education, experience)
Job Analysis Methods
Questionnaires
Observation
Interviews
Employee recording
Combination of
methods (most
appropriate)
Questionnaires
Typically quick and economical to use
Structured questionnaire to employees
Problem: Employees may lack verbal skills
Some employees tend to exaggerate
significance of their tasks
Observation
Job analyst watches the worker perform job
tasks and records his/her observations
Used primarily to gather information on jobs
emphasizing manual skills
Used alone is often insufficient
Difficulty: When mental skills are dominant in a
job
Interviews
Interview both employee and
supervisor
Interview employee first, helping him
or her describe the duties performed
Then, analyst normally contacts
supervisor for additional information,
to check the accuracy of the
information obtained
Combination of Methods
Usually use more than one method
Clerical and administrative jobs: questionnaires
supported by interviews and limited observation
Production jobs: interviews supplemented by
extensive work observations may provide
necessary data
Combination of methods is more appropriate
Conducting Job Analysis
People who participate
in job analysis should
include, at a minimum:
Employee
Employee’s immediate
supervisor
Job Description
Document that provides
concise statements of what
employees are expected to
do on the job, how they do it,
and the conditions under
which the duties are
performed
Vitally important that job
descriptions are both relevant
and accurate
Content of a Job Description
Job Identification
Job Analysis Date
Job Summary
Duties Performed
Job Specification
Content of a Job Description
Job Identification – Job title, the
department, the reporting relationship, and
a job number or code
Job Analysis Date – Aids in identifying job
changes that would make the description
obsolete
Job Summary – Concise overview of the
job
Duties Performed – Major duties. Use
action verbs
O*NET, the Occupational
Information Network
Comprehensive government developed
database of worker attributes and job
characteristics
Primary source of occupational
information
Job Analysis: A Basic Human Resource
Management Tool
Staffing
Tasks Responsibilities Duties
Training and
Development
Performance Appraisal
Job
Compensation
Descriptions Safety and Health
Job Employee and Labor
Analysis Job Relations
Specifications Legal Considerations
Knowledge Skills Abilities
29
Job Specification
Minimum acceptable qualifications that a
person should possess to perform a
particular job (experience, personality
traits, educational requirements, physical
abilities)
Should reflect the minimum, not the ideal
qualifications for a particular job
Job specifications are often included as a
major section of job descriptions
Problems If Job Specifications
Are Inflated
May systematically eliminate
minorities or women from
considerations
Compensation costs will
increase
Job vacancies will be harder to
fill 31
Job Analysis and the Law
Equal Pay Act
Fair Labor Standards Act
Civil Rights Act
Occupational Safety and
Health Act
Americans with Disabilities
Act
Job Design
Process of determining specific tasks to be
performed, methods used in performing these
tasks, and how the job relates to other work in
the organization
Job enrichment - Basic changes in the content
and level of responsibility of the job, to provide
greater challenge to the worker. Job enrichment
provides a vertical expansion of responsibilities
Job Design (Cont.)
Job enlargement
Changes in scope of the job to provide
greater variety to the worker
