RINGKASAN MATERI KULIAH

HUMAN RESOURCE
PLANNING
Dosen :

Prof. Dr. Ismuhadjar, SE, MM

PROGRAM STUDI MAGISTER MANAJEMEN

FAKULTAS EKONOMI
UNVERSITAS PERSADA INDONESIA
YAYASAN ADMINISTRASI INDONESIA
JAKARTA
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I. INTRODUCTION
I.I CONCEPTS OF STRATEGY AND PLAN

A. NEED FOR STRATEGIC HRM

⚫ IN MOST CASES, UNLESS THE HRM STRATEGY IS
APPROPRIATELY FORMULATED AND SKILLFULLY
IMPLEMENTED, THE SUCCESS OF THE ORGANIZATIONAL
STRATEGY IS AT RISK.
⚫ THE STRATEGIC MANAGEMENT OF PEOPLE WITHIN
ORGANIZATION AFFECTS IMPORTANT ORGANIZATIONAL
OUTCOMES SUCH AS SURVIVAL, PROFITABILITY,
CUSTOMER SATISFACTION LEVELS, AND EMPLOYEE
PERFORMANCE.
⚫ HR MANAGERS HAVE TO USE STRATEGY TERMS TO
SHOW HOW THEIR HR PRACTICES SUPPORT
ORGANIZATIONAL STRATEGIES.

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STRATEGY
⚫ THE FORMULATION OF ORGANIZATIONAL MISSIONS,
GOALS, OBJECTIVE, AND ACTION PLAN.
⚫ PERIOD OF STRATEGY : THREE TO FIVE YEARS, OR FIVE
TO TEN YEARS,
⚫ STRATEGY FORMULATION AND IMPLEMENTATION INTENDS
TO ACHIEVE THE FOLLOWING :
1. DEFINE THE VISION
2. CONVERT THIS VISION INTO MEASURABLE OBJECTIVES
AND PERFORMANCE TARGETS
3. DETERMINE THE PLAN TO ACHIEVE THE STRATEGY
4. IMPLEMENT THE PLAN IN WAYS THAT ARE BOTH
EFFECTIVE AND EFFICIENT
5. MEASURE THE RESULTS AGAINST GOALS AND REVISE
PLANS IN LIGHT OF ACTUAL EXPERIENCE, CHANGING
CONDITIONS, NEW IDEAS, AND NEW OPPORTUNITIES.

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⚫ BECAUSE OF THE UNCERTAINTY, THIS PLANS ARE
FORMULATED TO BE SOMEWHAT FLEXIBLE, SO THEY
CAN RESPOND TO CHANGES IN THE ENVIRONMENT.
⚫ STRATEGIC PLANNING MUST BE VIEWED AS A DYNAMIC
PROCESS, MOVING AND SHIFTING AND EVOLVING AS
CONDITIONS WARRANT CHANGES (IS CALLED LOGICAL
INCREMENTALISM).
⚫ EMERGENT STRATEGY : THE PLAN THAT CHANGES
INCREMENTALLY DUE TO ENVIRONMENTAL CHANGES.
⚫ INTENDED STRATEGY : THE FORMULATED PLAN AT THE
BEGINNING OF THE PERIOD
⚫ RELIAZED STRATEGY : THE IMPLEMENTED PLAN.

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STRATEGIC TYPES
⚫ BASICALLY CAN BE CLASSIFIED INTO: CORPORATE
STRATEGY, AND BUSINESS STRATEGYBASICALLY CAN
BE CLASSIFIED INTO: CORPORATE STRATEGY, AND
BUSINESS STRATEGY

CORPORATE STRATEGY
• ORGANIZATIONAL – LEVEL DECISIONS THAT FOCUS ON LONG-
TERM SURVIVAL.
• THREE OPTIONS OF CORPORATE STRATEGIES :
✔ GROWTH STRATEGY
✔ MAINTENANCE / STABILITY STRATEGY
✔ TURNAROUND / RETRENCHMENT STRATEGY

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GROWTH STRATEGIES
⚫ GROWTH IN REVENUES, SALES, MARKET SHARE,
CUSTOMERS, ORDERS AND SO ON.
⚫ GROWTH CAN ALLOW AN ORGANIZATION TO REAP THE
BENEFITS OF ECONOMIC SCALE, TO ENHANCE ITS
POSITION IN THE INDUSTRY VIS-À-VIS ITS
COMPETITORS, AND PROVIDE MORE OPPORTUNITIES
FOR PROFESSIONAL DEVELOPMENT AND ADVANCEMENT
TO ITS EMPLOYEES.

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⚫GROWTH CAN BE ACHIEVED IN SEVERAL WAYS :
✔ INTERNALLY / INCREMENTAL GROWTH.
GROWTH CAN BE ACHIEVED INTERNALLY (INCREMENTAL
GROWTH) BY FURTHER PENETRATING EXISTING MARKETS,
DEVELOPING NEW MARKETS, DEVELOPING NEW
PRODUCTS OR SERVICES TO SELL IN EXISTING AND/OR
NEW MARKETS. METHODS USED BY PROCTER & GAMBLE
FOR ITS INCREMENTAL GROWTH :
⚫ EXPANDING THE CLIENT BASE (BY INTRODUCING SKIN-
CARE AND HAIR-CONDITIONER FOR BABIES)
⚫ INCREASING THE PRODUCTS (BY ADDING PRINGLES
POTATO CHIPS TO A PRODUCT MIX OF CLEANING AND
HEALTH-CARE PRODUCTS)
⚫ CHANGING THE DISTRIBUTION NETWORKS (BY ADDING
DRUGSTORES TO GROCERY STORES)
⚫ USING TECHNOLOGY TO MANAGE JUST-IN-TIME
CUSTOMER PURCHASING

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✔ INTERNATIONAL GROWTH
SEEKING NEW CUSTOMERS OR MARKETS BY
EXPANDING INTERNATIONALLY.
✔ EXTERNAL GROWTH
• ACQUIRING OTHER ORGANIZATIONS, DONE WITH
COMPETITORS OR WITH ORGANIZATIONS THAT
MIGHT SUPPLY RAW MATERIALS OR BE PART OF
THE ORGANIZATIONS DISTRIBUTION CHAIN
(CALLED VERTICAL INTEGRATION)
✔ MERGER
TWO OR MORE ORGANIZATIONS COMBINE
RESOURCES AND BECOME ONE
✔ ACQUISITION
TO PURCHASE OF ONE COMPANY BY ANOTHER

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MAINTENANCE/ STABILITY TRATEGIES
⚫ FOR MANY REASONS, SOME EXECUTIVES WISH
TO MAINTAIN THE STATUS QUO
⚫ AN ORGANIZATION PURSUING THIS STRATEGY
MAY SEE VERY LIMITED OPPORTUNITIES IN ITS
ENVIRONMENT AND DECIDE TO CONTINUE
OPERATIONS AS IS.

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RESTRUCTURING/RETRENCHMENT STRATEGY
⚫ THE ORGANIZATION DECIDES TO DOWNSIZE OR
STREAMLINE ITS OPERATIONS IN AN ATTEMP TO FORTIFY
ITS BASIC COMPETENCY.
⚫ DECISION MAKERS MAY SEE THE ENVIRONMENT AS
OFFERING FOR MORE THREATS THAN OPPORTUNITIES AND
THE ORGANIZATION’S WEAKNESSES AS EXEEDING ITS
STRENGTHS. THEREFORE, THE ORGANIZATION TRIES TO
RETOOL ITSELF TO CAPITALIZE ON ITS EXISTING
STRENGTHS AND REMAIN SOLVENT.
⚫ A KEY ISSUES THAT NEEDS TO BE ADDRESSED IS COST-
CUTTING ; IN MANY ORGANIZATIONS, PAYROLL IS THE
CHIEF EXPENSE
⚫ RESTRUCTURING OPTIONS INCLUDE :

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✔ TURN AROUND STRATEGY : AN ATTEMP TO INCREASE THE
VIABILITY OF AN ORGANIZATION, INCLUDE :
⚫ GETTING RID OF UNPROFITABLE PRODUCTS
⚫ LAYOFFS
⚫ MAKING THE ORGANIZATION MORE EFFICIENT
⚫ ATTEMPTING TO REPOSITION IT WITH NEW PRODUCTS.
✔ DIVESTITURE : THE SALE OR REMOVAL OF A BUSINESS
✔ LIQUIDATION : THE TERMINATION OF A BUSINESS AND
THE SALE OF ITS ASSETS
✔ BANKRUPTCY : A FORMAL PROCEDURE IN WHICH AN
APPOINTED TRUSTEE IN BANKRUPTCY TAKES POSSESSION
OF A BUSINESS’S ASSETS AND DISPOSES OF THEM IN AN
ORDERLY FASHION.

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BUSINESS UNIT STRATEGIES
⚫THERE IS A SIGNIFICANT AND GROWING TREND FOR LARGER
ORGANIZATIONS TO BREAK THEIR OPERATIONS INTO SMALLER,
MORE MANAGEABLE, AND MORE RESPONSIVE UNITS;
SUBDIVISIONS ARE OFTEN ESTABLISHED BY PRODUCT OR
SERVICE, CUSTOMER GROUP, OR GEOGRAPHIC REGION.
⚫IN ADDITION TO THE GENERAL-CORPORATE-LEVEL STRATEGY
MANY INDIVIDUAL BUSINESS UNITS OR PRODUCT, SERVICE, OR
CUSTOMER DIVISIONS DEVELOP A MORE SPECIFIC STRATEGY
TO FIT THE CIRCUMSTANCES OF THEIR MARKETPLACE AND
COMPETITIVE ENVIRONMENT.
⚫BUSINESS UNIT STRATEGY PLANS TO BUILD A COMPETITIVE
FOCUS IN ONE LINE OF BUSINESS.
⚫THREE DIFFERENT BUSINESS UNIT STRATEGIES :
✔COST LEADERSHIP
✔DIFFERENTATION
✔FOCUS STRATEGY

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COST LEADERSHIP
⚫ THE ORGANIZATION ATTEMPTS TO INCREASE ITS
EFFICIENCY, CUT COST, AND PASS THE SAVINGS
ON THE CUSTOMER.
⚫ IT ASSUMES THAT THE PRICE ELASTICITY OF
DEMAND OF ITS PRODUCTS IS HIGH => SMALL
CHANGE IN PRICE WILL SIGNIFICANTLY AFFECT
CUSTOMER DEMAND.

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DIFFERENTATION
⚫ THE ORGANIZATION DISTINGUISHES ITS PRODUCT OR
SERVICE FROM THOSE OF COMPETITORS OR, AT LEAST,
ATTEMPTS TO MAKE CONSUMERS PERCIEVE THAT
THERE ARE DIFFERENCES => ALLOWS THE
ORGANIZATION TO DEMAND A PREMIUM PRICE OVER
THE PRICE CHARGED BY COMPETITORS AND ATTEMPTS
TO GAIN THE LOYALTY OF CONSUMERS TOWARD A
PARTICULAR BRAND.
⚫ WITH THIS TYPE OF STRATEGY, CREATIVITY AND
INNOVATION IN PRODUCT DESIGN AND SERVICE
DELIVERY ARE IMPORTANT => THE ORGANIZATION
SHOULD OFFER INCENTIVES AND COMPENSATION FOR
CREATIVITY
⚫ MEASURES FOR PERFORMANCE MIGHT BE MORE LONG
TERM IN ESTABLISHING AND BUILDING BRAND NAME.

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FOCUS STRATEGY
⚫ DIFFERENT SEGMENTS OF MARKET HAVE
DIFFERENT NEEDS AND ATTEMPTS TO SATISFY
ONE PARTICULAR GROUP; A RESTOURANT THAT
TARGETS FAMILIES, A CLOTHING STORE THAT
TARGETS LARGER INDIVIDUALS, OR RETAIL
BUSINESS THAT TARGETS A PARTICULAR ETHNIC
GROUP.

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MODELS OF BUSINESS UNIT STRATEGIES
⚫ ORGANIZATIONS WITH MULTIPLE BUSINESS NEED
A TECHNIQUE FOR ANALYZING THE STRATEGIES
OF THE DIFFERENT BUSINESS UNITS.
⚫ THREE POPULAR MODELS FOR ANALYZING
STRATEGIC BUSINESS UNITS :
⚫ THE BOSTON CONSULTING GROUP MODEL
⚫ THE ORGANIZATIONAL TYPES MODEL (BY MILES
& SNOW)
⚫ PORTER’S FIVE FORCES MODEL

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BOSTON CONSULTING GROUP MODEL
⚫ A PORTFOLIO ANALYSIS TOOL THAT HELP MANAGERS
DEVELOP ORGANIZATIONAL STRATEGY BASED ON
MARKET SHARE OF BUSINESS AND THE GROWTH OF
MARKET IN WHICH BUSINESS EXIST.
⚫ STEP I : IDENTIFY THE ORGANIZATION’S STRATEGIC
BUSINESS UNITS (SBU), THAT IS A SIGNIFICANT
ORGANIZATION SEGMENT WHICH IS ANALIZED TO
DEVELOP ORGANIZATIONAL STRATEGY AIMED AT
GENERATING FUTURE BUSINESS REVENUE ; COULD BE A
COMPANY DIVISION, A SINGLE PRODUCT, OR A
COMPLETE PRODUCT LINE, OR MIGHT BE THE ENTIRE
COMPANY (IN SMALL ORGANIZATIONS).
⚫ STEP 2 : USING THE B.C.G GROWTH SHARE MATRIX TO
CATEGORIZE EACH SBU WITHIN ONE OF THE FOUR
MATRIX QUADRANTS.

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⚫ STARS : HIGH SHARE OF A HIGH – GROWTH
MARKET 🡪 NEEDS LARGE AMOUNT OF CASH TO
SUPPORT THEIR RAPID AND SIGNIFICANT GROWTH. IT
GENERATES LARGE AMOUNT OF CASH FOR THE
ORGANZATION, AND ARE USUALLY SEGMENTS IN
WHICH MANAGEMENT CAN MAKE ADDITIONAL
INVESTMENT AND EARN ATTRACTIVE RETURNS.

⚫ CASH COWS : LARGE SHARE OF A MARKET THAT IS

GROWING ONLY SLIGHTLY. IT PROVIDES THE
ORGANIZATION WITH LARGE AMOUNT OF CASH, BUT
BECAUSE THEIR MARKET IS NOT GROWING
SIGNIFICANTLY, THE CASH IS GENERALLY USED. TO
MEET THE FINANCIAL DEMANDS OF THE
ORGANIZATION IN OTHER AREAS, SUCH AS THE
EXPANSION OF A STAR S.B.U.

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⚫ QUESTION MARKS : HAVE A SMALL SHARE OF A
HIGH – GROWTH MARKET. IT IS UNCERTAIN
WHETHER MANAGEMENT SHOULD INVEST
MORE CASH IN THEM TO GAIN A LARGER SHARE OF
THE MARKET OR DEEMPHASIZE OR ELIMINATE THEM.
MANAGEMENT WILL CHOOSE THE FIRST OPTION
WHEN IT BELIEVES IT CAN TURN THE QUESTION
MARK INTO A STAR, AND THE SECOND WHEN IT
THINKS FURTHER INVESTMENT WOULD BE
FRUITLESS.

⚫ DOGS: HAVE A RELATIVELY SMALL SHARE OF A LOW

– GROWTH MARKET. THEY SUPPORT THEMSELVES ; IN
SOME CASES, THEY ACTUALLY DRAIN OFF CASH
RESOURCES BY OTHER S.B.U.

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 PORTER’S MODEL
GROUPING THE MANY WAYS IN WHICH ORGANIZATIONS CAN
COMPETE INTO FIVE GENERAL COMPETITIVE STRATEGIES :
1. LOW-COST PROVIDER STRATEGY : PROVIDE A PRODUCT OR
SERVICE AT A PRICE LOWER THAN THAT OF COMPETITORS WHILE
APPEALING TO A BROAD RANGE OF CUSTOMERS. EXAMPLE : FAST-
FOOD BUSINESSES
2. BROAD DIFFERENTATION STRATEGY : SEEKS TO DIFFERENTIATE
ITS PRODUCTS FROM COMPETITORS PRODUCTS IN WAYS THAT WILL
APPEAL TO A BROAD RANGE OF BUYERS. EXAMPLE : “BURGER
KING” INTRODUCE THE WHOPPER WITH “FRILLS”, FOR WHICH
PEOPLE WILL PAY AN EXTRA DOLLAR.
3. BEST COST PROVIDER STRATEGY : TO GIVE CUSTOMERS MORE
VALUE FOR THE MONEY BY EMPHASIZING A LOW-COST OF PRODUCT
OR SERVICE AND AN UPSCALE DIFFERENTATION. EXAMPLE :
“EASTSIDE MARIO’S” OFFERS HAMBERGERS BUT PRESENTS THEM
ON A PLATE, WITH EXTRAS SUCH AS POTATO SALAD, SERVED BY A
WAITER IN AN ATTRACTIVE SETTING FEATURING SUCH THINGS AS
FOCUSED LIGHTS AND ART ON THE WALLS.

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4. FOCUSED OR MARKET NICHE STRATEGY BASED ON
LOWER COST
TO OFFER A LOW-COST PRODUCT TO A SELECT GROUP
OF CUSTOMERS. EXAMPLE : “RED LOBSTER” SELLS
FISH AND SEAFOOD AT REASONABLE PRICES TO A
NARROW MARKET SEGMENT.
5. FOCUSED OR MARKET NICHE STRATEGY BASED ON
DIFFERENTATION
TRIES TO OFFER A NICHE PRODUCT OR SERVICE
COSTUMIZED TO THE TASTES AND REQUIREMENTS OF
A VERY NARROW MARKET SEGMENT. EXAMPLE :
“BLACK AND BLUE” IS A VERY EXPENSIVE
RESTAURANT IN TORONTO THAT SPECIALIZES IN
STEAKS AND PERMITS CIGAR SMOOKING, THUS
APPEALING TO THE OLDER, USUALLY MALE,
BUSINESS CUSTOMER.

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 MILES AND SNOW’S ORGANIZATIONAL TYPES
FOUR ORGANIZATIONAL TYPES :
1. DEFENDER : THE DEFENDER TYPE COMPETES IN A
RELATIVELY STABLE AND PREDICTABLE
ENVIRONMENT AND PURSUES LOW-COST
OPERATIONS, FOCUSING ON EFFICIENCY THROUGH
STANDARDIZED JOBS, FORMALIZATION, AND
CENTRALIZATION.
2. PROSPECTOR : OPERATES IN A DYNAMIC
ENVIRONMENT. INNOVATION AND ADAPTION ARE
CRITICAL TO SUCCESS, ACHIEVED THROUGH HEAVY
INVESTMENTS IN RESEARCH AND DEVELOPMENT,
AND THROUGH ORGANIC STRUCTURES THAT ARE
HIGHLY DECENTRALIZED TO ALLOW FOR RAPID AND
INTELLIGENT RESPONSES TO THE CHANGING
ENVIRONMENT.

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3. ANALYZER : A COMBINATION OF THE
DEFENDER AND THE PROSPECTOR,
ATTEMPTING TO ACHIEVE EFFICIENCY WITH
AN INTEREST IN NEW MARKETS AND
PRODUCTS. THESE COMPANIES SCAN
COMPETITOR’S ACTIONS AND REACT
PROMPTLY BY DEVELOPING BETTER WAYS
TO GET PRODUCTS TO MARKET
4. REACTOR : HAS NO APPARENT STRATEGY, IT
IS AN IMPERFECT TYPE THAT LACKS A
CONSISTENT RESPONSE TO CHANGING
CONDITIONS.

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I.2 ALIGNING HR WITH STRATEGY

STRATEGIC HUMAN RESOURCE MANAGEMENT

⚫ STRATEGIC HRM : INTERRELATED PRACTICES, POLICIES,
AND PHILOSOPHIES THAT FACILITATE THE ATTAINMENT OF
ORGANIZATIONAL STRATEGY.
⚫ THE CENTRAL IDEA BEHIND STRATEGIC HUMAN RESOURCE
MANAGEMENT IS THAT ALL INITIATIVES INVOLVING HOW
PEOPLE ARE MANAGED NEED TO BE ALIGNED WITH AND
SUPPORT OF THE ORGANIZATION’S OVERALL STRATEGY
⚫ ACHIEVING ORGANIZATIONAL EXCELLENCE MUST BE THE
WORK HUMAN RESOURCE => HUMAN CAPITAL ISSUES ARE
AT THE TOP OF THE C.E.O. AGENDA.
⚫ HUMAN CAPITAL : THE SUM OF EMPLOYEE’S KNOWLEDGE
EDUCATION, SKILLS, TRAINING, EXPERTISE, EXPERIENCE,
AND COMMITMENT INVESTED IN THE ORGANIZATION
⚫ HRM STRATEGY MUST MATCH THE BUSINESS STRATEGY

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EMPLOYEE AS A STRATEGIC RESOURCE
⚫AN ORGANIZATION’S EMPLOYEES CAN PROVIDE A FIRM WITH A
COMPETITIVE ADVANTAGE. EMPLOYEES WHO PROVIDE SUPERIOR
PERFORMANCE BECAUSE OF THEIR SKILLS OR FLEXIBILITY WILL
ENABLE A COMPANY TO BEAT ITS COMPETITORS THROUGH
SUPERIOR SERVICE OR THE DEVELOPMENT OF UNIQUE PRODUCTS.
⚫HR PROGRAMS REPRESENT AN INVESTMENT IN HUMAN CAPITAL;
THIS HUMAN CAPITAL IS DIFFICULT TO DUPLICATE OR IMITATE.
⚫THE LESS A RESOURCE (HUMAN CAPITAL) CAN BE IMITATED, THE
MORE DURABLE THE SOURCE OF COMPETITIVE ADVANTAGE.
HUMAN RESOURCE MANAGEMENT CAN OFFER THIS KIND OF
DURABLE, COMPETITIVE ADVANTAGE.
⚫HUMAN RESOURCE / HUMAN CAPITAL CAN DETERIORATE. SKILLS
AND KNOWLEDGE CAN BECOME OBSOLETE UNLESS EITHER THE
INDIVIDUALS OR THE EMPLOYER INVESTS IN FURTHER EDUCATION
AND TRAINING.
⚫HIGHER INVESTMENTS IN TRAINING RESULT IN HIGH-VALUE
HUMAN CAPITAL. THUS, HUMAN CAPITAL HAS TO BE REPLENISHED.

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IMPROVED GOAL ATTAINMENT
⚫ STRATEGIC HRM CAN IMPROVE AN ORGANIZATION’S
PERFORMANCE THE GOALS OF HRM STRATEGIES ARE TO SHAPE
EMPLOYEE BEHAVIOR SO THAT IT IS CONSISTENT WITH THE
DIRECTION THE ORGANIZATION IDENTIFIES IN ITS STRATEGIC
PLANS.
⚫ ORGANIZATIONS WITH CLEAR STRATEGIES PROVIDE DIRECTION
AND MEANING TO EMPLOYEES AND MITIGATE THE NEED FOR
CONTROL BY SUBSTITUTING A CONSISTENCY OF PURPOSE. IN
OTHER WORDS, A MISSION. THIS ARTICULATED VISION FOR THE
FUTURE MAY RESULT IN A MORE EFFECTIVE ORGANIZATION
THROUGH INCREASED MOTIVATION AND PERFORMANCE,
LOWERED ABSENTEEISM AND TURNOVER, AND HEIGHTENED
STABILITY, SATISFACTION, AND INVOLVEMENT.
⚫ STRATEGY FORMULATION IS IMPORTANT TO THE ATTAINMENT OF
ORGANIZATIONAL GOALS IN ORDER TO ALIGN ALL HR
FUNCTIONAL STRATEGIES WITH OVERALL STRATEGY AND TO
FOCUS EMPLOYEES ON IMPORTANT MISSION AND GOALS OF THE
ORGANIZATION.

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II. HUMAN RESOURCE PLANNING

Mello, Jeffrey, A. 2011. P 202 - 214

⚫ THE SENIOR HR PROFESSIONAL AS A VITAL MEMBER OF THE TOP

MANAGEMENT TEAM, SHOULD ALSO BE HEAVILY INVOLVED IN
CORPORATE OR BUSINESS UNIT STRATEGIC PLANNING SO THAT THE TOP
MANAGEMENT TEAM IS ABLE TO INCLUDE HUMAN RESOURCE
MANAGEMENT CONCERNS IN ITS OVERALL PLANNING.
 
⚫ THE FIRST COMPONENT OF HUMAN RESOURCE MANAGEMENT STRATEGY
IS HUMAN RESOURCE PLANNING. ALL OTHER FUNCTIONAL HR
ACTIVITIES, SUCH AS STAFFING, TRAINING, PERFORMANCE
MANAGEMENT, COMPENSATION, LABOR RELATIONS, AND EMPLOYEE
SEPARATION, ARE DERIVED AND SHOULD FLOW FROM THE HUMAN
RESOURCE PLANNING PROCESS.

⚫ HUMAN RESOURCE PLANNING IS A PROACTIVE PROCESS ; IT ATTEMPTS

TO PLAN AND ANTICIPATE WHAT MIGHT HAPPEN IN THE VARIOUS
DOMAINS OF THE ORGANIZATION’S INTERNAL AND EXTERNAL
ENVIRONMENTS AND TO DEVELOP PLANS TO ADDRESS THESE EVENTS
PRIOR TO THEIR ACTUALLY HAPPENING. 28
⚫ BECAUSE HR PLANNING INVOLVES MAKING ASSUMPTIONS ABOUT
THE FUTURE, PARTICULARY THE STATUS OF THE ECONOMY,
COMPETITION, TECHNOLOGY, REGULATION, AND INTERNATIONAL
OPERATIONS AND RESOURCES, IT IS CRITICAL THAT ALL HR
PLANNING INITIATIVES BE FLEXIBLE. TO FACILITATE THIS
FLEXIBILITY, KEY DECISION MAKERS IN THE ORGANIZATION
SHOULD CLARIFY AND WRITE DOWN ALL ASSUMPTIONS THEY
MAKE ABOUT THE ENTERNAL ENVIRONMENT AND THE
ORGANIZATION WHEN DEVELOPING THE HR PLAN.
⚫ HR PLANNING INVOLVES PLANNING FOR THE DEPLOYMENT OF
THE ORGANIZATION’S HUMAN CAPITAL IN THE MOST EFFECTIVE
AND EFFICIENT WAYS, IN LINE WITH ORGANIZATION AND/ OR
BUSINESS UNIT STRATEGY.
⚫ TWO TYPES OF HR PLANNING :
AGGREGATE PLANNING ANTICIPATES NEEDS FOR GROUPS OF
EMPLOYEES IN SPECIFIC, USUALLY LOWER – LEVEL JOBS (THE
NUMBER OF CUSTOMER SERVICE REPRESENTATIVE, FOR
EXAMPLE), AND THE GENERAL SKILLS EMPLOYEES NEED TO
ENSURE SUSTAINED HIGH PERFORMANCE
SUCCESSION PLANNING FOCUSES ON KEY INDIVIDUAL
MANAGEMENT POSITIONS THAT THE ORGANIZATION NEEDS TO
MAKE SURE REMAIN FILLED AND THE TYPES OF INDIVIDUALS
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WHO MIGHT PROVIDE THE BEST FIT IN THESE CRITICAL
OBJECTIVES OF HUMAN RESOURCE PLANNING
FIVE MAJOR OBJECTIVES OF HR. PLANNING :
⚫ PREVENT OVERSTAFFING AND UNDERSTAFFING.
⚫ ENSURE THE ORGANIZATION HAS THE RIGHT EMPLOYEES
WITH THE RIGHT SKILLS IN THE RIGHT PLACES AT THE
RIGHT TIME.
⚫ ENSURE THE ORGANIZATION IS RESPONSIVE TO CHANGES
IN ITS ENVIRONMENT.
⚫ PROVIDE DIRECTION AND COHERENCE TO ALL HR
ACTIVITIES AND SYSTEMS.
⚫ UNITE THE PERSPECTIVES OF LINE AND STAFF MANAGERS.

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2.1 JOB ANALYSIS
⚫ HR PRACTITIONERS REFER TO JOB ANALYSIS AS
THE FOUNDATION FOR ALL HR ACTIVITIES

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⚫ JOB:
A GROUPING OF RELATED DUTIES, TASKS, AND BEHAVIORS
PERFORMED BY ONE OR MORE INDIVIDUALS, NAMELY
JOBHOLDERS (Belcourt & McBey, 2004 : 112)

⚫ JOB ANALYSIS :
THE ANALYSIS OF SUBDIVIDED WORK IN THE ORGANIZATION,
BOTH AT THE LEVEL OF THE INDIVIDUAL JOB AND FOR THE
ENTIRE FLOW OF THE PRODUCTION PROCESS (Belcourt &
McBey, 2004 : 112)
✔ THE PROCEDURES FOR DETERMINING THE DUTIES AND
SKILL REQUIREMENTS OF A JOB AND THE KIND OF PERSON
WHO SHOULD BE HIRED FOR IT (Dessler, Gery, 2008 : 142)
✔ IT SYSTEMATIC INVESTIGATION OF THE TASKS, DUTIES
AND RESPONSIBILITIES OF A JOB AND THE NECESSARY
KNOWLEDGE, SKILLS AND ABILITIES A PERSON NEEDS TO
PERFORM THE JOB ADEQUATELY (Stone, Raymond J, 2008 : 153)

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⚫ JOB DESCRIPTION :
A LIST OF A JOB’S DUTIES, RESPONSIBILITIES,
REPORTING RELATIONSHIP, WORKING
CONDITIONS, AND SUPERVISORY
RESPONSIBILITIES (Dessler, Gery, 2008 : 142)
⮚ THE WRITTEN OUTCOME (DOCUMENT)
PRODUCED BY THE JOB ANALYSIS PROCESS
WHICH EMPHASIZES THE DUTIES OR TASKS
TO BE CARRIED OUT ON THE JOB (Belcourt &
McBey, 2004 : 112)

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⚫ JOB SPECIFICATION
⮚ A LIST OF A JOB’S “HUMAN REQUIREMENTS”;
THAT IS, THE REQUISITE EDUCATION, SKILL,
PERSONALITY, AND SO ON (Stone, Raymond J,
2008 : 153)
⮚ THE WRITTEN OUTCOME (DOCUMENT)
PRODUCED BY THE JOB ANALYSIS PROCESS
WHICH EMPHASIZES ON IDENTIFYING THE
COMPETENCIES THE JOBHOLDER MUST
PROSSESS TO BE A SUCCESSFUL PERFORMER
IN THE SPECIFIED JOB.
⮚ THE COMPETENCIES : KNOWLEDGE – SKILL –
ABILITY – OTHER ATTRIBUTES (INCLUDE
WORK EXPERIENCE).
(Belcourt & McBey, 2004 : 113)
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PROBLEMS ASSOCIATED WITH JOB ANALYSIS

1.JOB ANALYSIS THAT IS NEITHER UPDATE NOR REVIEWED

⚫ RECENT EXTREMELY RAPID CHANGE IN TECHNOLOGY,
MATERIALS, AND PROCESSES WHICH IMPACTS ON HOW
WORK IS BEING PERFORMED MUST BE INCORPORATED
INTO THE AMENDEED JOB DESCRIPTION OR SPECIFICATION.
OBSOLETE JOB DESCRIPTIONS NOT ONLY FAIL TO PROVIDE
JOB INCUMBENTS WITH MEANINGFUL GUIDANCE AS TO
THEIR REQUIRED DUTIES AND TASKS, BUT ALSO RESULT IN
AN HR PLANNING THAT IS ATTEMPTING TO MATCH
INDIVIDUALS TO JOBS BASED ON INFORMATION THAT IS
NO LONGER VALID.
⚫ JOB ANALYSIS MUST BE REVIEWED ON A REGULAR BASIS
BY INCUMBENTS, SUPERVISORS, HR STAFF, AND SO ON TO
ENSURE THAT THE WRITTEN JOB REQUIREMENTS REFLECT
THE REALITY OF THE CONTEMPORARY JOB PERFORMANCE.

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2. JOB DESCRIPTION OR SPECIFICATION THAT IS TOO
VAGUE

IF JOB ANALYSIS IS TO PROVIDE INFORMATION TO ALLOW

US TO SELECT THE INDIVIDUAL WHO BEST MEETS JOB
REQUIREMENTS, WE MUST BE SPECIFIC AS TO WHAT
THOSE EXACT REQUIREMENTS ARE. FOR EXAMPLE,
ORGANIZATIONS OFTEN SPECIFY THAT APPLICANTS MUST
HAVE A CERTAIN NUMBER OF YEARS EXPERIENCE IN A
CERTAIN FUNCTIONAL AREA INSTEAD OF SPECIFYING THE
EXACT SKILLS OR COMPETENCIES THE APPLICANT
SHOULD HAVE LEARNED OVER THAT PERIOD.
TO BE AN EFFECTIVE COMPONENT OF HR PLANNING, THE
JOB ANALYSIS PROCESS MUST PRODUCE DETAILED,
SPECIFIC BAHAVIOURAL EXAMPLES OF SUCCESSFUL JOB
PERFORMANCE FOR EACH JOB IN THE WORK PROCESS.

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3. CONTAMINATION AND DEFICIENCY
⚫ CONTAMINATION : AN ERROR THAT OCCURS
WHEN UNIMPORTANT OR INVALID
BEHAVIOURS OR ATTRIBUTES ARE
INCORPORATED INTO A JOB DESCRIPTION OR
SPECIFICATION.
⚫ DEFICIENCY : AN ERROR OF OMISSION WHEN
A JOB DESCRIPTION OR SPECIFICATION FAILS
TO INCORPORATE IMPORTANT ASPECTS OF THE
JOB REQUIRED FOR SUCCESS.

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4. TIME AND COSTS OF JOB ANALYSIS
SOME ORGANIZATIONS ARE DETERRED FROM CONDUCTING JOB
ANALYSIS DUE TO THE SIGNIFICANT TIME AND START-UP COSTS
PERCIEVED TO BE ASSOCIATED WITH THE PROCESS, BECAUSE THEY
HAVE NOT CONDUCTED A PROPER COST-BENEFIT ANALYSIS WITH
RESPECT TO THIS DECISION.
THEY SHOULD ALSO CONSIDER THE TIME AND COST SAVINGS THAT
RESULT FROM THE FOLLOWING :
1) BETTER MATCHING OF INDIVIDUAL SKILLS TO ORGANIZATIONAL
REQUIREMENTS
2) INCORPORATION OF THE BENEFITS OF ORGANIZATIONAL
LEARNING WITH RESPECT TO PRODUCT AND PROCESS
IMPROVEMENT
3) REDUCED JOB AMBIGUITY AND WASTAGE
4) CLARIFICATION OF OPERATING PROCEDURES AND JOB
RELATIONSHIP
5) EXPLICIT DEFINITION OF PERFORMANCE EXPECTATIONS FOR
INDIVIDUALS AND TEAMS
6) FACILITATION OF OTHER HR PROGRAMS.

38
⚫ THE PROCESS OF JOB ANALYSIS

THE PROCESS OF JOB ANALYSIS INVOLVES FOLLOWING

FIVE STEPS TO MAXIMIZE THE POTENTIAL FOR
SUCCESS : - DETERMINE THE JOB OR PROCESS TO BE
ANALIZED – DETERMINE METHODS AND ANALYZE THE
JOB OR PROCESS – EXAMINE THE RECORDED DATA ON
THE JOB OR PROCESS – DEFINE AND FORMALIZE NEW
METHODS AND PERFORMANCE STANDARDS FOR THE
JOB OR PROCESS – MAINTAIN NEW METHODS AND
PERFORMANCE STANDARDS FOR THE JOB OR PROCESS.

39
1. DETERMINE THE JOB OR PROCESS TO BE
ANALYZED
⚫ ALTHOUGH THE DESIRED OUTCOME OF A JOB
ANALYSIS IS TO HAVE A COMPREHENSIVE RECORD
OF ALL ORGANIZATIONAL JOBS AND THEIR
ASSOCIATED DUTIES, SKILL REQUIREMENTS,
WORKING CONDITIONS, AND SO ON, REALITY
DICTATES THAT ORGANIZATIONS NORMALLY
SELECT CERTAIN WELL-DEFINED JOBS COMMON
THROUGHOUT THE INDUSTRY THAT CAN BE
BENCHMARKED EXTERNALLY.
⚫ SOME FACTORS THAT DETERMINE WHETHER JOB
ANALYSIS WILL BE CONCURRENT (ALL JOBS
ANALIZED AT APPROXIMATELY THE SAME TIME) OR
SEQUENTIAL (JOB ANALYSIS CONDUCTED IN
DIFFERENT STAGES OVER TIME) INCLUDE :

40
1) THE DEGREE TO WHICH THE SELECTED JOB IS CENTRAL OR CRITICAL; THE
MORE CRITICAL OR CENTRAL THE JOB OR PROCESS, THE GREATER THE
TENDENCY TO ANALYZE IT, AND TO DEFER EXAMINATION OF LESS CENTRAL
JOBS OR PROCESSES TO A FUTURE TIME.
2) THE AVAILABILITY OF JOB ANALISTS AND OTHER RESOURCESS; THE NUMBER
AND AVAILABILITY OF JOB ANALISTS, BE THEY EXTERNAL CONSULTANTS OR
INTERNAL HR SPECIALISTS, ARE KEY FACTORS INFLUENCING WHETHER AN
ORGANIZATION IS ABLE TO CONDUCT CONCURRENT JOB ANALYSIS OR IS
FORCED TO DO IT SEQUENTIALLY BY STAGES.
3) THE AVAILIBILITY OF EXTERNAL PERFORMANCE BENCHMARK FOR
ORGANIZATIONAL JOBS.

BENCHMARK : EXTERNAL COMPARATORS FOR ORGANIZATIONAL JOBS AND

PERFORMANCE CRITERIA.
⮚ THE CANADIAN GOVERNMENT’S “NATIONAL OCCUPATIONAL
CLASSIFICATION (N.O.C)” CONTAINS STANDARDIZED JOB DESCRIPTIONS ON
APROXIMATELY 25,000 JOBS, FACILITATES EXTERNAL BENCHMARKING FOR
JOB ANALISTS.
⮚ THE U.S’S “ DICTIONARY OF OCCUPATIONAL TITLES (D.O.T)” PROVIDES
INFORMATION ON THE MAIN DUTIES AND EMPLOYMENT REQUIREMENTS OF
EACH CLASSIFIED JOB.

41
2. DETERMINE METHODS AND ANALYZE THE JOB OR PROCESS
 
⚫ SELECTION CRITERIA FOR JOB ANALYSIS METHODS INCLUDE :
COST, INCLUDES LICENCE FEES FOR COPYRIGHTED QUESTONAIRES,
TRAINING, AND ADMINISTRATION
TIME, INCLUDES THAT SPENT ON SURVEY AND INTERVIEW TRAINING
AND ASSESSMENT, DATA CODING AND ANALYSIS, AND SO ON
FLEXIBILITY OF METHODS, WHETHER THE METHOD IS APPROPRIATE
FOR THE PARTICULAR CIRCUMSTANCES
VALIDITY AND RELIABILITY, RELATES TO WHETHER THE JOB
ANALYSIS METHODS HAVE BEEN TESTED AND FOUND TO BE
ACCURATE MEASURES, AND WHETHER THE RESULTS OF THESE
METHODS SHOW A CONSISTENT PATTERN OVER REPEATED USABE.
ACCEPTANCE, DIRECT OBSERVATION AND VIDEOTAPING OF WORK
PERFORMANCE, MAYBE CONSIDERED INTRUSIVE BY THE WORKFORCE
AND, THEREFORE, MAYBE MET WITH RESISTANCE. OTHER METHODS,
SUCH AS QUESTIONAIRES AND INTERVIEWS, MIGHT BE DEEMED MORE
ACCEPTABLE BY THE WORKERS, WHO WOULD THEN COOPERATE IN
PROVIDING INFORMATION TO THE JOB ANALISTS.

42
⚫ THE COMMON METHODS OF JOB ANALYSIS
 
⮚ INTERVIEW
A JOB ANALIST MAY INTERVIEW JOB INCUMBENTS, CO-
WORKERS, SUPERVISORS, SUPPLIERS, CLIENTS, AND
SUBORDINATES. IT IS CALLED 360 - DEGREE EVALUATION :
EVALUATION OF ATTRIBUTES AND PERFORMANCE
DIMENTIONS OF JOB BY SETTING FEEDBACK FROM “THE
FULL CIRCLE” AROUND THE JOB.

⮚ OBSERVATION
DIRECT OBSERVATION : ANALISTS OBSERVE THE
PRODUCTION LINE FOR WORKER BEHAVIOURS AND THE
SKILLS REQUIRED FOR THE JOB SUCCESS. EXAMPLE : TIME-
AND- MOTION STUDY. INDIRECT OBSERVATION CAN
INCORPORATE A VARIETY OF MEANS, SUCH AS A
VIDEOTAPED RECORDING OF THE JOB BEING PERFORMED.

43
⚫ QUESTONAIRES
⚫ THE STANDARDIZED QUESTIONAIRES MORE FREQUENTLY USED :
⮚ THE POSITION DESCRIPTION QUESTIONAIRE
⮚ THE FUNCTIONAL JOB ANALYSIS
⮚ THE JOB DIAGNOSTIC SURVEY
⮚ THE DIMENSIONS OF EXECUTIVE POSITIONS
⮚ THE POSITION ANALYSIS QUESTIONAIRE
THESE SURVEY INSTRUMENTS ARE COMPLETED BY JOBHOLDERS, THEIR
SUPERVISORS, AND PEOPLE WHO WORK IN OTHER JOB THAT ARE
RELATED TO THE SPECIFIC JOB BEING INVESTIGATED.
⚫ THE COMMON ELEMENTS ARE QUESTIONS CONCERNING :
⮚ EDUCATION, TRAINING, AND SKILL REQUIREMENTS TO BE SUCCESSFUL
IN THE JOB
⮚ RESPONSIBILITY OR ACCOUNTABILITY (WITH REGARD TO BUDGETS,
SPECIFIC DUTIES AND TASKS PERFORMED, NUMBER AND TYPE OF
PEOPLE SUPERVISED, ETC)
⮚ EFFORT- THAT IS, THE COGNITIVE AND PHYSICAL DEMANDS PLACED ON
THE INDIVIDUAL.
⮚ WORKING CONDITIONS, FOR EXAMPLE WETHER THE WORK IS DONE BY
AN INDIVIDUAL OR TEAM, THE EQUIPMENT OR MATERIALS USED, THE
JOB CONTEXT OR THE ENVIRONMENTAL CONDITIONS OF WORK, THE
WORK SHIFTS OR HOURS OF WORK, THE POTENTIAL HEALTH HAZARD,
AND SO ON. 44
⚫ JOURNALS AND DIARIES
JOBHOLDERS ARE ASKED TO MAINTAIN A WRITTEN RECORD OF THEIR JOB
ACTIVITIES, AND ASSOCIATED TIME EXPENDITURES, FOR A PRESET PERIOD
THAT TYPICALLY RANGES FROM A COMPLETE WORK CYCLE OR TYPICAL
WEEK TO UP TO A MONTH
 
OUTPUT AND PRODUCTION ANALYSIS
MACHINE- GENERATED OUTPUT REPORTS, AS WELL AS PRODUCTION
REPORTING PROCEDURES, CAN OBTAIN ABOUT THE JOB AND ITS NORMAL
AND PEAK LEVEL OF PRODUCTION, WHICH ARE USEFUL IN DETERMINING
APPROPRIATE PERFORMANCE
STANDARDS FOR OUTPUT.

CURRENT JOB DESCRIPTIONS AND SPECIFICATIONS

A USEFUL STARTING POINT, IF A PREVIOUS JOB ANALYSIS HAS BEEN
PERFORMED, IS AN EXAMINATION OF THE EXISTING JOB DESCRIPTIONS
AND SPECIFICATIONS. IT WILL SHOW HOW THE JOB IN QUESTION HAS
EVOLVED AND WETHER ITS COMPONENT DUTIES, TASKS, AND EMPLOYEE
SPECIFICATIONS, HAVE INCREASED OR DIMINISHED OVER TIME.

THERE IS NO ONE BEST WAY TO ANALYZE A JOB, SO MOST CONTEMPORARY

JOB ANALYSIS EMPLOY A COMBINATION OF THE AFOREMENTONED
METHODS.
45
3. EXAMINE THE RECORDED DATA ON THE JOB OR
PROCESS
⚫ HAVING SELECTED THE MOST APPROPRIATE
METHODS TO ANALYZE THE JOB, JOB ANALISTS :
⮚ RECORD THE KNOWLEDGE, SKILLS, AND
ABLITIES ;
⮚ JOB RELATED BEHAVIOURS, DUTIES, TASKS,
RESPONSIBILITIES ;
⮚ WORKING CONDITIONS OF THE JOB.
⚫ THE NEXT STEP IS TO EXAMINE THESE DATAS
FROM A VARIETY OF PERSPECTIVES TO GET A
DETAILED PROFILE OF THE CURRENT JOB. SOME
OF THE QUESTIONS INVOLVED IN THE
EXAMINATION ARE AS FOLLOWS :

46
a. WHAT IS THE PURPOSE OF THIS JOB ? WHY DOES IT EXIST ?
b. WHERE IS THE JOB PHYSICALLY PERFORMED ? ARE THERE
COMPELLING REASON WHY THE JOB MUST BE PERFORMED
THERE ?
c. WHAT IS THE SEQUENCE OF BEHAVIOURS REQUIRED FOR
SUCCESSFUL JOB PERFORMANCE ? ARE THERE WAYS TO MODIFY
THE METHODS AND PROCESS TO IMPROVE THE JOB, BOTH
QUALITATIVELY (e.g. WORKER AND CLIENT SATISFACTION,
WORKER MOTIVATION) AND QUANTITATIVELY (e.g. OUTPUT) ?
d. WHO PERFORM THE JOB ? WHAT CONSTITUTES THE EMPLOYEE
SPECIFICATIONS (e.g. EDUCATION, TRAINING, SKILLS, ETC).
REQUIRED FOR JOB SUCCESS ? ARE THESE SPECIFICATIONS
OPTIMAL, OR THEY THE MINIMUM STANDARD REQUIRED FOR
SUCCESS ON THE JOB ?
e. WHAT ARE THE MEANS OF PERFORMING THE JOB ? ARE THE
MATERIALS, MACHINES, GROUP PROCESSESS, AND OPERATING
PROCEDURES CONGRUENT WITH EFFECTIVE PERFORMANCE OF
THE JOB ?

47
4. DEFINE AND FORMULATE NEW METHODS AND
PERFORMANCE STANDARDS FOR THE JOB OR PROCESS
• TO THIS POINT IN THE PROCESS, THE ANALISTS HAVE :
a. EXAMINED EXISTING DESCRIPTIONS AND
SPECIFICATIONS FOR THE JOB (IF PREVIOUS ANALYSES
HAVE BEEN CONDUCTED)
b. ANALIZED DATA ON THE JOB AS IT IS PRESENTLY
PERFORMED BY THE JOBHOLDER(S)
c. COMPARED (a) AND (b) TO THE JOB CALSSIFICATION IN
THE CURRENT PRACTISES IN COMPETITIVE FIRMS. AT
THIS STAGE, THE JOB ANALISTS ATTEMPT TO IMPROVE
ON CURRENT PRACTICES BY RECOMMENDING NEW
METHODS AND PERFORMANCE STANDARDS FOR THE
JOB.
TO DO THIS, ANALISTS MUST PRESENT THE FOLLOWING
QUESTIONS TO THE INCOMBENTS AND MANAGERS :

48
a) WOULD YOU RECOMMEND ANY CHANGES TO
MATERIALS, MACHINERY, BEHAVIOURAL
SEQUENCING, TRAINING, OR PROCEDURES TO
IMPROVE PERFORMANCE ON THE JOB ?
b) ARE THERE ANY DUTIES OR TASKS THAT SHOULD BE
ADDED TO OR DELETED FROM THE JOB ?
c) WOULD YOU RECOMMEND ANY CHANGES IN THE
SPECIFICATIONS (e.g. KNOWLEDGE, SKILLS, OR
ABILITIES) FOR INDIVIDUALS SELECTED TO PERFORM
THIS JOB ?
d) WHAT CHANGES IN WORKING CONDITIONS WOULD
YOU RECOMMEND TO IMPROVE PERFORMANCE ON
THIS JOB ?
e) WHAT IS YOUR RATIONALE FOR THESE
RECOMMENDED CHANGES ?

49
• HAVING COLLECTIVE WISDOM OF ALL RELEVANT
PARTIES REGARDING THE PERFORMANCE OF THE JOB
UNDER EXAMINATION, THE HR. SPECIALISTS OR JOB
ANALISTS WRITE THE NEW DESCRIPTION OR
SPECIFICATION.
⮚ BOTH JOB DESCRIPTIONS AND SPECIFICATIONS
CONTAIN THE FOLLOWINGS INFORMATION :
a) THE JOB TITLE
b) THE JOB CODE OR CLASSIFICATION NUMBER
c) THE COMPENSATION CATEGORY
d) THE DEPARTMENT OR SUB-UNIT
e) THE SUPERVISING JOB TITLE (THE TITLE OF THE
PERSON TO WHOM ONE REPORTS)
f) THE DATE OF THE APPROVED DESCRIPTION OR
SPECIFICATION
g) THE NAME OF THE JOB ANALIST.

50
5. MAINTAIN NEW METHODS AND PERFORMANCE STANDARDS FOR THE
JOB PROCESS
FOUR MAIN METHODS TO HELP ENSURE USAGE OF THE NEW TECHNIQUES
AND TO PREVENT RELAPSES TO THE OLD, COMFORTABLE WAYS OF
PERFORMING ON THE JOB :
1) COMMUNICATION AND TRAINING
THE AFFECTED JOBHOLDERS MUST SOON BE GIVEN A COPY OF THE
REVISED JOB DESCRIPTION OR SPECIFICATION. THE PROCESS OF
FORMALLY COMMUNICATING THE JOB CHANGES MUST ALSO PROVIDE
SUFFICIENT TIME FOR QUESTIONS AND ANSWERS TO ENSURE
WORKERS ARE CLEAR ON THE NEW EXPECTATIONS FOR THEIR JOB
PERFORMANCE.
TRAINING AND DEVELOPMENT PROGRAMS MAY HAVE TO BE
INSTITUTED IF THERE ARE SIGNIFICANT CHANGES IN METHODS,
MATERIALS, OR THE SEQUENCING OF BEHAVIOURS REQUIRED ON THE
JOB.
2) SUPERVISORY REINFORCEMENT
AFTER BEING FORMALLY NOTIFIED OF THE CHANGES, SUPERVISORS
MUST SPEND CONSIDERABLE TIME ENSURING THAT WORKERS ARE, IN
FACT, BEHAVING IN ACCORDANCE WITH THE NEW JOB PROCEDURS.
COACHING, MODELLING THE DESIRED BEHAVIOURS, AND
REINFORCING SUCCESSFUL PERFORMANCE OF THE NEW METHODS ARE
ALL TECHNIQUES SUPERVISORS CAN EMPLOY TO PREVENT RELAPSES
51
TO THE OUTPUTED, YET HABITUAL, METHODS OF PERFORMING THE
3) EMPLOYEE FEEDBACK
FEEDBACK IS CRITICAL TO THE SUCCESS OF THE JOB ANALYSIS
PROCESS. EMPLOYEES MUST BE GIVEN THE FREEDOM TO EXPRESS
SUGGESTED IMPROVEMENTS OR CONCERNS WITH RESPECT TO
METHODS, PERFORMANCE STANDARDS, IF WE EXPECT THEM TO
BECOME MOTIVATED AND COMMITTED TO THEIR JOBS.
BEAR IN MIND THAT JOB ANALYSIS IS A NEVER- ENDING PROCESS OF
DATA GATHERING, CODING, INTERPRETING, AND REFINING JOB
METHODS AND STANDARDS, DUE TO CHANGES IN TECHNOLOGY,
COMPETITIVE PRACTICES, ECONOMIC CIRCUMSTANCES, AND SO ON.
4) REWARD SYSTEMS
A COMMON DOWN FALL OF WORK REDESIGN AND JOB ANALYSIS
EFFORTS IS THAT ALTHOUGH THE JOB METHODS AND STANDARDS
HAVE CHANGED, THE ORGANIZATIONAL REWARD SYSTEM HAS NOT
BEEN ALTERED, AND IT REINFORCES THE UNDESIRABLE OLD JOB
BEHAVIOUR.
FOR EXAMPLE, IF THE REVISED WORK PROCESS IS TEAM BASED, BUT
THE COMPENSATION SYSTEM CONFLICTS WITH JOB DESCRIPTIONS BY
BEING DISPROPORTIONALLY WHEIGHTED TOWARD EVALUATION OF
INDIVIDUAL PERFORMANCE, WE CAN EXPECT TO SEE UNPLANNED,
DYSFUNCTIONAL BEHAVIOURS AND CONDUCT FROM MEMBERS OF THE
TEAM.

52
SPECIFIC JOB ANALYSIS TECHNIQUES
FIVE WELLKNOWN AND WIDELY UTILIZED
TECHNIQUES :
1. CRITICAL INCIDENT TECHNIQUE
A QUALITATIVE PROCESS OF JOB ABALYSIS THAT
PRODUCES BEHAVIOURAL STATEMENTS ALONG
A RANGE FROM SUPERIOR TO INEFFECTIVE
PERFORMANCE FOR ASPECIFIC JOB
2. BEHAVIOURALLY ANCHORED RATING SCALES
(BARS)
A JOB IS DEVIDED INTO A NUMBER OF KEY
DIMENSIONS, AND EACH DIMENSIONS CONTAINS
A RANGE OF STATEMENTS OF JOB BEHAVIOUR
“ANCHORED” TO A NUMERICAL SCALE

53
3. POSITION ANALYSIS QUESTIONAIRE (PAQ)
A STRUCTURED JOB ANALYSIS CHECKLIST THAT
INCLUDE 194 ITEM OF ELEMENTS USED TO RATE A JOB;
INCORPORATED INTO SIX DIMENSIONS :
1) INFORMATION INPUT : HOW AND WHERE THE WORKER
OBTAINS NECESSARY INFORMATION FOR JOB FUNCTIONING.
2) MENTAL PROCESSES : THE TYPES OF PLANNING, REASONING,
AND DECISION MAKING PROCESSES REQUIRED BY THE JOB.
3) WORK INPUT : THE SPECIFIC ITEMS PRODUCE BY THE
WORKERS AND THE TOOLS HE OR SHE EMPLOYS TO
PRODUCE THEM
4) RELATIONSHIP WITH OTHER WORKERS : IMPORTANT
INTERPERSONAL CONTACTS FOR THE JOBHOLDERS.
5) JOB CONTEXT AND WORK SATISFACTION : THE PHYSICAL
AND SOCIAL WORKING ENVIRONMENTS.
6) OTHER JOB CHARACTERISTICS : ELEMENTS OF THE JOB THAT
DO NOT FALL INTO THE OTHER FIVE DIMENSIONS.

54
4. FUNCTIONAL JOB ANALYSIS (FJA)
ANALYSIS ANY JOB USING THREE ESSENTIAL ELEMENTS :
1) PEOPLE : IMPORTANT INTERPERSONAL RELATIONSHIPS ON THE
JOB
2) DATA : OBTAINING, USING, AND TRANSFORMING DATA IN AIDS OF
JOB PERFORMANCE
3) THINGS : PHYSICAL MACHINERY, RESOURCES, AND
ENVIRONMENTAL EACH OF THESE THREE ELEMENTS IS THEN
RATED BY LEVEL OF COMPLEXITY AND IMPORTANCE.
5. THE WAY SYSTEM
USES THREE KEY FACTORS TO ANALYZE JOBS :
2) KNOW- HOW : THE SPECIFIC KNOWLEDGE AND SKILLS REQUIRED
TO PERFORM THE JOB
3) PROBLEM - SOLVING : THE DECISIONS AND PROBLEMS THAT
MUST BE SUCCESSFULLY HANDLED ON THE JOB
4) ACCOUNTABILITY : THE JOBHOLDER’S RESPONSIBILITIES FOR
CRITICAL TASK COMPLETION AND FOR ORGANIZATIONAL
RESOURCES, BUDGETS, SUPERVISION OF PEOPLE, ETC.

55
COMPETENCY - BASED APPROACH

●IN TODAY’S BUSINESS ENVIRONMENT, CHARACTERIZED BY INCREASED

GLOBALIZATION, EXTREMELY TURBULENT ENVIRONMENT, AND FIERCE
COMPETITION, TRADITIONAL JOB ANALYSIS MAYBE UNABLE TO KEEP
UP WITH THE RAPID OF CHANGE FACED BY MOST ORGANIZATIONS.
●MANY ORGANIZATIONS HAVE REDUCED THEIR COMPLEMENT OF FULL-
TIME WORKERS BY “DOWNSIZING” THERE BY PRODUCING FLATTER
ORGANIZATIONAL STRUCTURES WITH FEWER WORKERS AND GREATER
RELIANCE ON SELF- MANAGED TEAMS IN ACHIEVING DESIRED
ORGANIZATIONAL OUTCOMES.
●THE INCREASED DESIRE FOR FLEXIBILITY AND CROSS- TRAINING OF
EMPLOYEES HAS LED TO A TREND OF EXAMINING COMPETENCY
MODELLING IN ORDER TO IDENTIFY GENERAL WORKER
REQUIREMENTS ASSOCIATED WITH A BROAD RANGE OR CATEGORY OF
JOBS = > COMPETENCY BASED APPROACH OF JOB ANALYSIS TO
DEVELOP SUCCESSFUL PROFESSIONAL PERFORMANCE FOR DENTISTS,
ENGINEERS, NURSES, PHYSICIANS, POLICE OFFICERS ETC.
COMPETENCY : ANY KNOWLEDGE, SKILL, TRAIT, MOTIVE, ATTITUDE,
VALUE, OR OTHER PERSONAL CHARACTERISTIC THAT IS ESSENTIAL TO
PERFORM THE JOB AND THAT DIFFERENTIATES SUPERIOR FROM SOLID
PERFORMANCE.
56
2.2 HUMAN RESOURCE MANAGEMENT
SYSTEMS
⚫ HUMAN RESOURCE MANAGEMENT SYSTEMS (HRMS)/ HUMAN
RESOURCE INFORMATION SYSTEMS (HRIS) IS THE INTEGRATED
DATABASE SYSTEM THAT IS ESSENTIAL TO PERMIT HIGH- QUALITY,
INFORMED HR PLANNING DECISION TO BE MADE.
⚫ JOB ANALYSIS PROCESS IDENTIFIES EMPLOYEE SPECIFICATIONS
(KNOWLEDGE, SKILLS, AND ABILITY/ KSAs) REQUIRED TO
SUCCESSFULLY PERFORM THE DUTIES AND TASKS OF THE VARIOUS
JOBS IN AN ORGANIZATION; THIS INFORMATION IS TYPICALLY STORED
ON A COMPUTER DATABASE TO ENABLE MATCHING COMPARISIONS TO
BE CONDUCTED BETWEEN THE ORGANIZATIONAL REQUIREMENTS, AS
IDENTIFIED BY THE JOB ANALYSES PROCESS, AND THE CURRENT STATE
OF EMPLOYEE COMPETENCIES.
⚫ THE DEGREE OF CONGRUENCE BETWEEN THE TWO IS THE KEY FACTOR
IN INSTIGATING HR PROGRAMS SUCH AS TRAINING AND
DEVELOPMENT, WORK REDISIGN, RE-EVALUATION OF COMPENSATION
(e.g. PAY FOR PERFORMANCE, SKILL-BASED PAY, MERIT PAY) AND
OTHER TERMS OF EMPLOYMENT, AS WELL AS VARIOUS STAFFING
INITIATIVES (e.g. RECRUITING, LAYOFFS, HIRING FREEZES, ATTRITION).

57
⚫ THE INFORMATION CONTAINED IN THE HRMS IS CRITICAL TO
EFFECTIVE HR PLANNING, SO IT IS ESSENTIAL TO BE
ACCURATE, UP TO DATE, RELEVANT, AND OF HIGH QUALITY,
AND IN SUFFICIENT QUANTITY TO MAKE EFFECTIVE POLICY
DECISIONS THAT AFFECT A VARIETY OF DIFFERENT AREAS
INCLUDING THE FOLLOWING :
1) LEGAL COMPLIANCE.
2) ABSENTEEISM AND TURNOVER REPORT.
3) THE ORGANIZATION DEMOGRAPHIC COMPOSITION.
4) PERFORMANCES APPRAISAL RATING HISTORY.
5) SUCCESSION AND REPLACEMENT PLANS.
6) COMPENSATION REVIEWS.
7) ASSESSMENT OF TRAINING AND DEVELOPMENT NEEDS.
8) CAREER COUNCELLING AND PLANNING.\
9) MATCHING OF INDIVIDUAL AND ORGANIZATIONAL NEEDS.
10) WORK DESIGN AND RESTRUCTURING PLANNING.
11) ASSESSMENT CENTRE AND POTENTIAL RATINGS.

58
THREE STAGES OF HRMS DEVELOPMENT
THE ORGANIZATIONAL EVOLUATION OF HRMS CAN BE CLASSIFIED
INTO THREE STAGES OF DEVELOPMENT :
1. BASIC PERSONNEL SYSTEM
A BARE- BONES HRMS APPROACH INCORPORATING DATABASES
THAT MAY MIX WRITTEN RECORDS OF FILE WITH OTHER DATA
ELEMENTS STORED ON A COMPUTER DATABASE; THE DATA
MAINTAINED BY THIS TYPE OF SYSTEM FOCUS ON THE
FOLLOWING AREAS :
1) EMPLOYEE RECORDS (e.g. INDIVIDUAL PROFILE, PERSONAL
INFORMATION SHEET, APPLICANT FORM, ORGANIZATION
ACKNOWLEDGMENT, EMPLOYMENT AGREEMENT OR
CONTRACT).
2) PAYROLL (WAGE OR SALARY, ATTENDANCE AND VACATION
ENTRIES, AND PENSION AND BENEFIT DATA).
3) STAFFING (JOB DESCRIPTION FOR EXECUTIVE AND KEY
ORGANIZATIONAL JOBS ONLY)
4) BASIC DATA REQUIRED FOR COMPLIANCE WITH PERTINENT
LABOUR LEGISLATION.

59
THIS INFORMATION IS USED ALMOST EXCLUSIVELY BY HR
STAFF IN STAND- ALONE APPLICATIONS, FOCUSED ON
CORRECT RECORD- KEEPING OF THE ORGANIZATION’S
PERSONNEL ACTIVITIES, ORIENTED TOWARD THE PAST.
BECAUSE OF THIS SITUATION, THE BASIC PERSONNEL
SYSTEM IS REACTIVE IN NATURE AND LIMITED USE FOR HR
POLICY DECISION- MAKING AND STRATEGIC HUMAN
RESOURCE PLANNING.

60
2. AUGMENTED HR SYSTEM
OCCURS WHEN THE ORGANIZATION DECIDES TO COMMIT THE
RESOURCES TO BECOME MORE PROACTIVE WITH RESPECT TO HR
POLICY DECISIONS :
⮚ BECOME ENTIRELY COMPUTER BASED ; ALMOST LIMITLESS
POSSIBILITIES FOR DATA INCLUSION.
⮚ DATA ELEMENTS ARE AUGMENTED BY A VARIETY OF
INFORMATION DETERMINED BY A NEEDS ANALYSIS. THE
ORGANIZATION GIVE PRIORITY. TO THE ADDITION OF DATA THAT
ARE OF GREATEST RELEVANCE TO ITS OPERATION.
FOR EXAMPLE :
ABSENTEEISM AND TURNOVER HAVE BEEN NOTED AS PROBLEMS,
THE AUGMENTED HR SYSTEM CAN TRACK INDIVIDUAL ABSENCE
OR SEPARATIONS BY A VARIETY OF COMBINATIONS OF WORKER
CLASSIFICATION, GEOGRAPHICAL LOCATION, AUTHORITY LEVEL,
AND SO ON => ENABLES HR PLANNERS TO IDENTIFY MORE
READLY DEVELOPING PROBLEM AREAS OR TRENDS AND THEREBY
BE PROACTIVE IN DEVELOPING OR MODIFYING PERSONNEL
POLICIES TO EFFECTIVELY DEAL WITH SUCH PROBLEMS.

61
3. COMPREHENSIVE AND INTERACTIVE HRMS
⚫ AN HRMS CONFIGURATION THAT ENABLES THE HR PLANNING STAFF TO RUN
“WHAT IF” SCENARIOS TO DETERMINE THE BEST FUTURE POLICY ALTERNATIVES
GIVEN A RANGE OF POSSIBLE OUTCOMES.
⚫ RATIONAL DATA BASES ENABLE THE USER TO CUSTOMIZE THE HR DATA TO BE
INVESTIGATED, THEREBY OFFERING A WIDE VARIETY OF SEARCHES AND
ANALYSIS TO BE CONDUCTED.
EXAMPLE :
USING THIS SYSTEM TO DEVELOP A CANDIDATE LIST FOR ATTENDANCE AT AN
ASSESSMENT CENTRE AND FOR FUTURE MANAGEMENT - DEVELOPMENT PROGRAMS. IN
SUCH AN INSTANCE, THE COMPUTER SENIORITY IN THE ORGANIZATION. SEARCH COULD
SELECT CANDIDATES WHO HAD : (1). PERFORMANCE APPRAISAL RATINGS OF “ABOVE
AVERAGE” OR HIGHER OVER THE POST FIVE YEARS. (2). SUCCESSFULLY COMPLETED A
GRADUATE DEGREE (PREFERABLY AN MBA), AND (3). A MINIMUM FIVE YEARS
THE PROGRAM COORDINATOR OF MANAGEMENT DEVELOPMENT COULD THEN REVIEW
THE LIST PRODUCED BY THE DATA BASE SEARCH, USING INPUT FROM SENIOR
MANAGERS AND EXECUTIVES TO DECIDE WHOM TO INCLUDE OR EXCLUDE FROM THE
LIST. THE LIST WOULD BE MODIFIED THROUGH THE REVIEW BY HR STAFF AND
MANAGERS, TO FORM THE BASIS FOR COMMENT AND REVIEW.

RELATIVELY FEW COMPANIES HAVE EVOLVED TO THE STAGE- THREE; ONLY VERY LARGE
MULTINATIONAL AND GOVERNMENTAL ORGANIZATIONS, PARTICULARLY THOSE
OPERATING TRANSPORTATION, COMMUNICATIONS, AND UTILITIES INDUSTRIES, TEND TO
USE COMPLEX, INTEGRATED STATISTICAL SYSTEMS FOR THEIR HRMS AND FORECASTING
PROCEDURES.
62
 SELECTION AND DESIGN CRITERIA FOR HRM S
1. SYSTEM SECURITY ACCESS CONTROL
HRMS CONTAINS SENSITIVE PERSONAL INFORMATION ABOUT THE
WORKFORCE, AS WELL AS PLANNING SCENARIOS (REPLACEMENT
AND SUCCESSION); IT IS VITAL THAT PROPER ATTENTION BE
GIVEN TO CONTROLLING ACCESS TO THIS INFORMATION.
▪ ACCESS SHOULD BE GRANTED ONLY ON A “NEED-TO-KNOW”
BASIS, PASSWORDS, P.I.N.S (Personal Identification Numbers), AND
CODES SERVING AS ENTRY BARRIERS PROHIBITING
UNAUTHORIZED ACCESS TO OTHER DATA ELEMENTS THAT ARE
NOT REQUIRED BY THE LEGITIMATE WORK REQUIREMENTS OF A
PARTICULAR JOBHOLDERS.
▪ ACCESS REQUIREMENTS SHOULD BE REVIEWED ON A REGULAR
BASIS TO DETERMINE IF CONTINUED ACCESS TO THE SPECIFIC
DATA ELEMENTS IS STILL VALID; IF NOT, THE JOB INCUMBENT
SHOULD BE DENIED ENTRY TO THE CONFIDENTIAL DATA BASE.
▪ THE INDIVIDUAL EMPLOYEE’S RIGHT TO EXAMINE HIS/ HER
PERSONAL RECORD TO ENSURE THAT IT IS ACCURATE AND
CONTAINS ONLY JOB-RELATED INFORMATION.

63
2. USER FRIENDLYNESS OF THE HRMS
⚫ HRMS SOFTWARE VARIES SUBSTANTIALLY WITH RESPECT TO
THE TRAINING TIME AND EASE OF USE FOR HR STAFF
⚫ SYSTEMS THAT BUILD ON COMMON HR TERMINOLOGY AND ARE
DESIGNED OPERATING IN CONJUNCTION WITH OTHER
WIDESPRED COMPUTER OPERATING SYSTEMS (MICROSOFT
WINDOWS AND MS. DOS, UNIX), WILL REQUIRE LESS
PREPARATORY TRAINING OF STAFF THAN WOULD VERY
SPECIALIZED HRMS APPLICATION.

3. FLEXIBILITY AND INTERFACE WITH OTHER ORGANIZATIONS

SYSTEMS.
⚫ WHEN PURCHASING HRMS SOFTWARE, THE ORGANIZATION
MUST CONSIDER THE LINKAGE BETWEEN EXISTING COMPUTER
HARDWARE AND THE PROPOSED SOFTWARE SYSTEMS, AS WELL
AS STAFF COMPUTER LITERACY WITH THE VARIOUS SYSTEMS.
ENSURE THAT THERE IS A SMOOTH INTERFACE BETWEEN
HARDWARE AND SOFTWARE. ASK FOR DEMONSTRATIONS AND A
TRIAL PERIOD OF OPERATING THE HRMS TO ENSURE PROBLEM-
FREE OPERATION OF THE SYSTEM.
64
4. APPROPRIATENESS FOR MEETING ORGANIZATION NEEDS.
SOME COMPANIES MAKE THE MISTAKE OF PURCHASING
HRMS SOFTWARE BECAUSE OF BENEFICIAL FEATURES IN
ONE SPECIFIC AREA (e.g. COMPENSATION) => TAKE TIME TO
IDENTIFY AND RANK THE ORGANIZATION’S HR GOALS FOR
THE HRMS => FOCUSED ON THE “MUST HAVE” AND LESSEN
THE “NICE TO HAVE”. BEFORE PURCHASING HRMS
SOFTWARE, CONSIDER NOT ONLY THE PRICE, BUT ALSO A
VARIETY OF FACTORS, SUCH AS :
1) THE NUMBER OF YEARS THE SOFTWARE COMPANY HAS
BEEN IN EXISTENCE.
2) WETHER THE VENDOR SPECIALIZES IN HRMS
3) POST- PURCHASE SERVICE SUPPORT PACKAGES
4) THE NUMBER OF CLIENTS THE VENDOR HAS
5) THE NUMBER OF ACTUAL INSTALLATION
6) THE VENDOR’S REPUTATION FOR RELIABILITY IN THE
INDUSTRY.

65
5. SYSTEM COSTS AND SERVICE SUPPORT.
HRMS COSTS TO BE CONSIDERED :
1) THE TRAINING EXPENSE OF CONVERTING
HR AND OTHER STAFF USERS TO
OPERATING THE NEW SYSTEM
2) THE ANNUAL LICENSING FEE
3) THE ON GOING COSTS OF PROVIDING
ASSISTANCE, TECHNICAL SUPPORT, AND
UPGRADES TO THE NEWLY ESTABLISHED
SYSTEM
4) POST - PURCHASE SUPPORT AND
SUPPLEMENTAL COSTS.

66
2.3 THE HUMAN RESOURCE FORECASTING PROCESS

⚫ HR FORECASTING CONSTITUTES THE HEART OF THE HR PLANNING

PROCESS, AND CAN BE DEFINED AS ASCERTAINING THE NET
REQUIREMENT FOR PERSONNEL BY DETERMINING THE DEMAND FOR
AND SUPPLY OF HUMAN RESOURCES NOW AND IN THE FUTURE.

⚫ FORECASTING ACTIVITY CAN BE SUBDIVIDED INTO THREE

CATEGORIES/ METHODS :
1) TRANSACTION - BASED FORECASTING
FORECASTING THAT FOCUSES ON TRACKING INTERNAL CHANGE
INSTITUTED BY THE ORGANIZATION’S MANAGERS
2)EVENT - BASED FORECASTING
FORECASTING CONCERNED WITH CHANGES IN THE EXTERNAL
ENVIRONMENT
3) PROCESS - BASED FORECASTING
FORECASTING NOT FOCUSED ON A SPECIFIC INTERNAL
ORGANIZATIONAL EVENT BUT ON THE FLOW OR SEQUENCING OF
SEVERAL WORK ACTIVITIES (e.g. WAREHOUSING
SHIPPING PROCESS).

67
⚫ SUCCESSFULL / EFFECTIVE HR FORECASTING
PROCESS SHOULD :
⮚ USE BOTH QUANTITATIVE AND QUALITATIVE
DATA
⮚ USE A VARIETY OF FORECASTING TECHNIQUES
⮚ HINGES ON OBTAINING A FINE BALANCE
BETWEEN GLOBAL AND LOCAL CONTROL OF
THE PROCESS.

68
BENEFITS OF HR FORECASTING
1. REDUCES HR COSTS
o EFFECTIVE HR FORECASTING FOCUSES ON A COMPARISON
BETWEEN :
⮚ THE ORGANIZATION’S CURRENT STOCK OF WORKFORCE
KSAs, AND
⮚ THE NUMBERS, SKILL COMPETENCIES, AND SO ON
DESIRED IN THE WORKFORCE OF THE FUTURE.
THE COMPARISON FACILITATES A PROACTIVE, SEQUENTIAL
APPROACH TO DEVELOPING INTERNAL WORKERS AND IS
CONCURRENT WITH ACTIVITIES FOCUSED ON OBTAINING THE
BEST EXTERNAL RECRUITS FROM COMPETITORS, UNIVERSITIES,
AND TRAINING PROGRAMS => ORGANIZATION CAN REDUCE HR
COSTS BY :
✔ TAKING A LONG- RUN PLANNING APPROACH TO HR ISSUES
✔ REDUCE COSTLY LAST- MINUTE CRISIS MODES IN REACTION
TO UNEXPECTED DEVELOPMENTS IN THE INTERNAL OR
EXTERNAL LABOR MARKETS.

69
2. INCREASES ORGANIZATIONAL FLEXIBILITY
o HR PROACTIVE FORECASTING PROCESS INCREASES THE
NUMBER OF VIABLE POLICY OPTIONS AVAILABLE TO THE
ORGANIZATION, THEREBY ENCHANGING FLEXIBILITY.
o FORECASTING PROCESSES DEVELOP PROGRAM OPTIONS
CAN DETERMINE WHETHER IT IS MORE ADVANTAGEOUS
AND COST EFFECTIVE TO RETRAIN CURRENTS MEMBERS
OF THE WORKFORCE TO FILL ANTICIPATED JOB
OPENINGS, OR FILL THESE OPENINGS WITH EXTERNAL
RECRUITS WHO ARE ALREADY IN POSESSION OF THE
REQUIRED COMPETENCIES AND SKILLS.
o GIVEN THAT HR FORECASTING IS PREDICATED ON
TRENDS, ASSUMPTIONS, SCENARIOS, AND VARIOUS
PLANNING TIME HORIZONS, THE PROCESS ITSELF
ENCOURAGE THE DEVEOPMENT OF A WIDE RANGE OF
POSSIBLE POLICY OPTIONS AND PROGRAMS FROM
WHICH THE HR STAFF CAN SELECT.

70
3. ENSURES A CLOSE LINKAGE TO THE MACRO BUSINESS FORECASTING
PROCESS
⚫ A SERIOUS PROBLEM DEVELOPS WHEN THE PERSONNEL PLANNING
PROCESS BECOMES DIVORCED AND DISCONNECTED FROM THE OVERALL
BUSINESS GOALS OF THE ORGANIZATION.
⚫ THE IMPLEMENTATION OF AN HR FORECASTING PROCESS HELPS TO
ELIMINATE THE POSSIBILITY THAT PERSONNEL POLICIES WILL VEER AWAY
FROM THE OVERALL OPERATING AND PRODUCTION POLICIES OF THE
ORGANIZATION
⚫ THE PROCESS
✔ THROUGH PROACTIVE INTERNAL AND ENVIRONMENTAL SCANS OF
MARKET AND COMPETITOR STRENGTH, WEAKNESSES, OPPORTUNITIES,
THREATS, RESOURCES, AND POLICY ACTIONS, AN OPERATIONAL
OBJECTIVES WAS SET BY THE ORGANIZATIONS TOP MANAGEMENT.
✔ ONCE THESE HAVE BEEN ESTABLISHED, SPECIFIC HR FORECASTING
ANALYSES ARE SET IN MOTION TO DETERMINE THE FEASIBILITY OF THE
PROPOSED OPERATIONAL OBJECTIVES WITH RESPECT TO TIME, COST,
RESOURCES ALLOCATION, AND OTHER CRITERIA OF PROGRAM SUCCESS.
✔ THE HR ANALYSES ARE SUBSEQUENTLY SENT BACK TO TOP
MANAGEMENT, TO CONFIRM THE VIABILITY OF THE ORIGINAL BUSINESS
OBJECTIVES, OR INDICATE THAT CHANGES (e.g. THE ALLOCATION OF
ADDITIONAL RESOURCES) NEED TO BE MADE TO ENABLE THE
OBJECTIVES TO BE MET.
71
⚫ THOSE ANALYSES AND THE SUBSEQUENT
FEEDBACK OF THE HR FORECAST SUMMARIES
TO SENIOR/ TOP MANAGEMENT HELP TO ENSURE
THAT THE TOP DECISION - MAKERS IN THE
ORGANIZATION :
1) AWARE OF KEY HR ISSUES AND
CONSTRAINTS THAT MIGHT AFFECT
ORGANIZATIONAL SUCCESS.
2) ENSURE THE HR OBJECTIVES ARE CLOSELY
ALIGNED WITH THE ORGANIZATION’S
OPERATIONAL BUSINESS OBJECTIVES.

72
4. ENSURES THAT ORGANIZATIONAL REQUIREMENTS TAKE
PRECEDENCE OVER ISSUES OF RESOURCE CONSTRAINT
AND SCARCITY.
● THE FIRST STEP IN THE HR FORECASTING PROCESS IS THE
HUMAN RESOURCES DEMAND (THAT IS THE
ORGANIZATION’S PROJECTED REQUIREMENT FOR HUMAN
RESOURCES).
● THE HUMAN RESOURCE SUPPLY (THE SOURCE OF
WORKERS TO MEET DEMAND REQUIREMENTS, OBTAINED
EITHER INTERNALLY OR FROM EXTERNAL AGENCIES) IS
DONE ONLY ONCE THE PROCESS OF EVALUATING
PERSONNEL REQUIREMENTS FOR CURRENT AND FUTURE
TIME HORIZONS HAS BEEN FINALIZED.
● THIS SEQUENCE REINFORCES THE FACT THAT ATTAINMENT
OF DESIRED ORGANIZATIONAL GOALS AND OBJECTIVES
MUST TAKE PRIORITY OVER ALL ISSUES CONCERNING
RESOURCE SCARCITY AND OTHER IMPLEMENTATION
ISSUES.

73
KEY PERSONNEL ANALYSES CONDUCTED BY HR FORECASTER
ALTHOUGH THE HR FORECASTING PROCESS IN AN ORGANIZATION IS
CONDUCTED TO DETERMINE THE NUMBER OF EMPLOYEES AND THE
SKILL COMPETENCIES REQUIRED BY SUB- UNITS, AS WELL AS THE ENTIRE
ORGANIZATION, A NUMBER OF PERSONNEL CATAGORIES TYPICALLY ARE
GIVEN GREATER - THAN - AVERAGE ATTENTION IN THE FORECASTING
PROCESS.
1. SPECIALIST/ TECHNICAL/ PROFESSIONAL PERSONNEL
◦ WORKERS HOLDING TRADE QUALIFICATIONS THAT ARE IN HIGH
DEMAND OR THAT REQUIRE LENGTHY PREPARATORY TRAINING FOR
ATTAINMENT OF SKILL COMPETENCY CONSTITUTE A KEY AREA OF
FOCUS FOR HR FORECASTING. IN INCREASINGLY GLOBAL ECONOMY,
THESE WORKERS WILL BE IN HIGH DEMAND BY COMPETITIVE FIRMS,
WHICH MEANS IT NEEDS SPECIAL ATTENTION TO PROGRAMS TO
INDUCE THESE WORKERS TO JOIN THE ORGANIZATION.
◦ FURTHERMORE, ATTENTION MUST BE GIVEN TO BENCHMARKING
COMPENSATION SCHEMES TO MEET OR LEAD INDUSTRY STANDARDS
SO AS TO ATTRACT AND RETAIN PEOPLE WHO PERFORM WELL IN
THESE CATEGORY.
◦ A LONGER LEAD TIME IS OFTEN REQUIRED TO RECRUIT TECHNICIANS
AND PROFESSIONALS BECAUSE OF THE NEED FOR A MORE
COMPREHENSIVE AND LARGER GEOGRAPHIC SEARCH FOR THIS
SPECIALIST TALENT POOL. 74
2. EMPLOYMENT EQUITY -DESIGNATED GROUPS MEMBERSHIP
DESIGNATED GROUPS : IDENTIFIABLE GROUPS DEEMED TO NEED SPECIAL
ATTENTION : PEOPLE OF ABORIGINAL DESCENT, WOMEN, PEOPLE WITH
DISABILITIES, AND MEMBERS OF VISIBLE MINORITIES. PARTICULAR ATTENTION
MUST BE PAID TO THESE DESIGNATED GROUPS WITH RESPECT TO THE
OPPORTUNITIES THEY RECEIVE FOR EMPLOYMENT, PROMOTION, TRAINING, AND SO
ON.

3. MANAGERIAL AND EXECUTIVE PERSONNEL

⚫EXECUTIVES (C.E.O, PRESIDENT, VICE-PRESIDENTS, ETC) :
◦ INTERACT WITH KEY ENVIRONMENTAL STAKEHOLDERS, AND
◦ ARE RESPONSIBLE FOR SETTING THE GOALS FOR THE ORGANIZATION’S FUTURE
DIRECTION.
⚫MANAGERS (MIDDLE AND FIRST LINE MANAGERS) :
◦ ACTING AS THE SUPERVISORY LAYER OF AUTHORITY BETWEEN EXECUTIVES AND
THE OPERATING SHOP- FLOOR LEVEL.
◦ ARE RESPONSIBLE FOR COACHING, DIRECTING, TRAINING AND DEVELOPING, AND
CONTROLING WORKER BEHAVIOURS TO ACHIEVE THE GOALS ESTABLISHED BY
THE EXECUTIVE GROUP.
⚫ORGANIZATIONAL LEADERS WHO ARE :
◦ABLE TO TRANSFORM ORGANIZATIONAL CULTURE,
◦ABLE TO ANTICIPATE EXTERNAL CHANGE, AND
◦POSSESS THE DYNAMIC PERSONAL ATTRIBUTE NECESSARY TO UNIFY
ORGANIZATION.
⚫ARE VERY RARE INDEED IN MOST PUBLIC AND PRIVATE- SECTOR ORGANIZATIONAL
SETTINGS.
75
⚫ NOT ONLY MUST GREATER ATTENTION BE PAID TO
IDENTIFYING LEADERSHIP TALENT WITHIN THE
ORGANIZATION, BUT ASSESSMENT CENTERS OR
APPRAISALS MUST ALSO BE CONDUCTED TO MATCH THE
“RIGHT PERSON TO THE RIGHT JOB AT THE RIGHT TIME”.
⚫ THE ORGANIZATION’S SURVIVAL AND FUTURE SUCCESS
DEPEND DIRECTLY ON SUCCESSION AND REPLACEMENT
PLANNING.

76
4. RECRUITS
RECRUITING TRAINEES IS EXTREMELY IMPORTANT TO THE
SUCCESS OF THE ORGANIZATION’S OVERALL HR POLICIES.
WHEN DETERMINING WHETHER TO OBTAIN TRAINEES FROM
INTERNAL WORK FORCE OR EXTERNALLY, A WIDE VARIETY OF
FACTORS MUST BE CONSIDERED.
⚫ SELECTING CURRENT EMPLOYEES TO ATTEND TRAINING
COURSES LEADING TO PROMOTION REWARDS LOYALITY
AND PAST PERFORMANCE, AND SIMULTANEOUSLY
DIMINISHED THE NEED FOR THE ORGANIZATIONAL
SOCIALIZATION OF NEWCOMERS FROM OUTSIDE.
⚫ ON THE OTHER HAND, CURRENT EMPLOYEES MAYBE VERY
COMFORTABLE WITH THE STATUS QUO AND EXISTING
METHODS OF ORGANIZATIONAL OPERATIONS, AND
THEREFORE MAY NOT BE WELL SUITED FOR EMPLOYMENT
ON NOVEL, CREATIVE WORK PROCESSES THAT DIFFER
SUBSTANTIALLY FROM ESTABLISHED PRACTICES.

77
 ⚫ NEW ENTRANTS CAN BRING THE ORGANIZATION
INSIGHTS INTO HOW COMPETITORS STRUCTURE
AND OPERATE THEIR BUSINESS AND MAY, AS
WELL, BRING WITH THEM THE LATEST TRENDS
AND PRACTICES TOUGHT IN UNIVERSITIES AND
SPECIALIST TRAINING AGENCIES.
THE RELATIVE BALANCE OF INTERNAL TO EXTERNAL
PERSONNEL TO BE SELECTED FOR TRAINING COURSES
IS A KEY FACTOR IN THE HR FORECASTING AND
PROGRAMMING OPERATIONS OF MANY
ORGANIZATIONS

78
 THE FORECASTING PROCESS
THE GOAL OF HR FORECASTING IS TO OBTAIN SUFFICIENT
NUMBERS OF TRAINED PERSONNEL WHO WILL BE ABLE
PERFORM SUCCESSFULLY IN JOBS WHEN THOSE JOBS NEED TO
BE FILLED.
1. TO DO THIS, THE FORECASTING PROCESS HAS FIVE STAGES :
2. IDENTIFY ORGANIZATIONAL GOALS, OBJECTIVES, AND
PLANS.
3. DETERMINE OVERALL DEMAND REQUIREMENT FOR
PERSONNEL
4. ASSESS IN- HOUSE SKILLS AND OTHER INTERNAL SUPPLY
CHARACTERISTICS
5. DETERMINE THE NEED DEMAND REQUIREMENTS THAT
MUST BE MET FROM EXTERNAL, ENVIRONMENTAL SUPPLY
SOURCES
6. DEVELOP HR PLANS AND PROGRAMS TO ENSURE THAT THE
RIGHT PEOPLE ARE IN THE RIGHT PLACE.

79
ENVIRONMENTAL AND ORGANIZATIONAL
FACTORS AFFECTING HR FORECASTING

THE HR FORECASTING PROCESS IS EXTREMELY

COMPLEX, REQUIRING SPECIFIC NUMERICAL AND
SKILL COMPETENCY TARGETS FOR PERSONNEL TO
BE MET DESPITE OPERATING IN CIRCUMSTANCES
OF HIGH UNCERTENTY, ARISES FROM BOTH
EXTERNAL ENVIRONMENTAL FACTORS AND FROM
INSIDE THE ORGANIZATION ITSELF.
THE KEY FACTOR FOR HR FOECASTING IS TO
INCORPORATE FLEXIBILITY INTO THE PROGRAM
RESPONSES ASSOCIATED WITH DEMAND AND
SUPPLY FORECASTS.

80
 INTERNAL / ORGANIZATIONAL EXTERNAL/ ENVIRONMENTAL
∙ Corporate mission statement, strategic ∙ Economic situation
goals
∙ Operational goals, production budgets ∙ Labour markets and unions

∙ HR policies (e.g. compensation, ∙ Governmental laws and regulations

succession)
∙ Organizational structure, restructuring, ∙ Industry and product life cycles
mergers, etc.
∙ Worker KSAs/ competencies and ∙ Technological changes
operation
∙ HRMS level of development ∙ Competitor labour usage
∙ Organizational culture, workforce ∙ Global market for skilled labour
climate and satisfaction, and internal
communication
∙ Job analysis : workforce coverage, ∙ Demographic chages.
current data.
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HR FORECASTING TIME HORIZONS

⚫ ENVIRONMENTAL AND ORGANIZATIONAL FACTORS

INCREASE UNCERTAINTY, AND NECESSITATE FLEXIBILITY
IN THE PROGRAMS TO BALANCE PERSONNEL DEMAND AND
SUPPLY => DECREASES CONFIDENCE IN ABILITY TO
PREDICT THE FUTURE ACCURATELY AND HENCE REDUCES
THE HR. FORECASTING HORIZON.
⚫ LARGE ORGANIZATIONS WITH SUBSTANTIAL RESOURCES
AND SIZABLE NUMBERS OF WELL- TRAINED PERSONNEL
WHO ALSO PERFORM WELL WILL MAY BE BETTER ABLE TO
WEATHER THE STORMS OF FUTURE CHANGE IN
ENVIRONMENTAL, ECONOMIC, TECHNOLOGICAL, AND
COMPETITIVE MARKET FACTORS => WILL BE ABLE TO
EXTEND THEIR HR FORECASTING PROCESS FURTHER INTO
THE FUTURE WITH GREATHER CONFIDENCE IN THE
ACCURACY OF THEIR PREDICTIONS.

82
⚫SEVERAL DIFFERENT TIME HORIZONS FOR HR FORECASTING :
1. CURRENT FORECAST, USED TO MEET THE IMMEDIATE
OPERATION NEEDS; THE TIME FRAME IS UP TO THE END OF
THE CURRENT OPERATING CYCLE, OR MAXIMUM OF ONE
YEAR INTO THE FUTURE.
2. SHORT- RUN FORECAST EXTENDS FORWARD FROM THE
CURRENT FORECAST, FOR THE NEXT ONE- OR TWO- YEAR
PERIOD BEYOND THE CURRENT OPERATIONAL REQUIREMENT
3. MEDIUM- RUN FORECAST. IDENTIFIES REQUIREMENTS FOR
TWO TO FIVE YEARS INTO THE FUTURE.
4. LONG- RUN FORECAST. DUE TO UNCERTAINTY AND THE
SIGNIFICANT NUMBER AND TYPES OF CHANGES THAT CAN
AFFECT THE ORGANIZATION’S IS OPERATIONS, THE LONG-
RUN FORECAST IS BY NECESSITY EXTREMELY FLEXIBILE AND
IS A STATEMENT OF PROBABLE REQUIREMENTS GIVEN A SET
OF CURRENT ASSUMPTIONS.
LONG- RUN FORECAST EXTENDS FIVE OR MORE YEARS AHEAD
OF THE CURRENT OPERATIONAL PERIOD.

83
DETERMINING NET HR REQUIREMENTS
1. DETERMINEHR DEMAND
• CALCULATE THE ORGANIZATION’S REQUIREMENT OR DEMAND FOR
PERSONNEL IN NUMBERS AND OBLIGATORY SKILL COMPETENCIES
BEFORE WE CONSIDER HOW WE WILL MEET THOSE
REQUIREMENTS,
• FACTORS TO BE CONSIDERED :
⮚ EACH ORGANIZATIONAL SUB- UNIT HAS TO SUBMIT ITS NET
PERSONNEL REQUIREMENT TO THE CORPORATE FORECASTING
UNIT, BASED ON FUTURE NEEDS FOR LABOUR REQUIRED TO MEET
THE AGREED- ON CORPORATE AND SUB- UNIT OBJECTIVES (e.g.
MARKET SHARE, PRODUCTION LEVELS, SIZE OF EXPANSION, ETC)
⮚ THE HR DEMAND FIGURE MUST INCORPORATE THE INDIVIDUALS
NEEDED TO MAINTAIN OR REPLACE THE CURRENT PERSONNEL
WHO RETIRE, DIE, ARE FIRED, TERMINATED, OR TAKE LONG- TERM
LEAVE (e.g. FOR REASONS SUCH AS DISABILITY, TRAINING
COURSES, ETC), AND THE REPLACEMENTS FOR INDIVIDUALS WHO
ARE PROMOTED OR TRANSFERRED OUT OF THE DEPARTMENT.
⮚ THESE SUB- UNIT LABOUR DEMANDS ARE THEN AGREGATED AND
USED AS THE STARTING POINT FOR THE HR DEMAND FORECASTS.
84
⮚ PLANNED FUTURE CHANGES IN ORGANIZATIONAL DESIGN
OR IN RESTRUCTURING (e.g. EXPANSION OF CERTAIN
DEPARTMENTS, DOWN- SIZING OF MID - LEVEL
MANAGEMENT, PLANNED REDUNDANCY, AND ELIMINATION
OF SPECIFIC JOBS), WITH THEIR ASSOCIATED INCREASES OR
DECREASES IN STAFFING LEVELS, MUST BE INCORPORATED
INTO THE EQUATION TO REVISE THE AGGREGATED NET
DEPARTMENTAL DEMAND REQUIREMENT.
⮚ HR FORECAST HAVE TO CONSIDER HOW TO REPLACE
NONPRODUCTIVE PAID TIME (e.g. VACATION AND SICK DAYS),
EITHER BY INCREASING DEMAND FOR FULL- OR PART- TIME
PERSONEL (i.e. SLACK RESOURCES), OR BY USING OVERTIME
WITH THE EXISTING SET OF CURRENT EMPLOYEES TO
PREVENT LOSS OF PRODUCTIVE CAPACITY AND REQUIRED
LEVEL OF SERVICE TO ORGANIZATIONAL CLIENTS.

85
▪ CONSIDERATION OF ALL THOSE ISSUES LEADS TO THE NET
HR DEMAND, BROKEN DOWN INTO THE FORECASTING TIME
HORIZONS, CONTAINING :
1. THE NUMBER OF EMPLOYEES REQUIRED BY EACH SUB-
UNIT AND BY THE ORGANIZATION IN TOTAL.
2. THE EMPLOYEE SKILL SETS, COMPETENCIES, OR
SPECIFICATIONS REQUIRED FOR EACH OF THE POSITION.
▪ CONDUCT A COST ESTIMATE (HR BUDGET) FOR THE NET HR
DEMAND FIGURE AS A REALITY CHECK TO DETERMINE
WHETHER HR FORECAST ARE REALISTIC, GIVEN FINANCIAL
RESOURCE CONSIDERATIONS.

86
2.ASERTAIN HR SUPPLY
⚫ STEP ONE PRODUCED AN ESTIMATE OF PERSONNEL
REQUIREMENTS OR DEMAND.
STEP TWO EXAMINES EXACTLY HOW WE PLAN TO FILL THE
ANTICIPATED FUTURE REQUIREMENTS FOR PERSONNEL.
⚫ TWO SUPPLY OPTIONS :
INTERNAL SUPPLY, REFERS TO CURRENT MEMBERS OF THE
ORGANIZATIONAL WORKFORCE WHO CAN BE RETRAINED,
PROMOTED, TRANSFERRED, ETC. TO FILL ANTICIPATED FUTURE
HR REQUIREMENTS.
THE NUMBER AND THE KSAs OF THE WORKFORCE ARE
ANALIZED USING THE HRMS/ HRIS, WHICH CONTAINS A
PERSONAL RECORD OR SKILLS INVENTORY OF EACH MEMBER
OF THE WORKFORCE.
INCLUDED IN THE INVENTORY : EMPLOYEE NAME, SENIORITY,
CLASSIFICATION, PART- OR- FULL- TIME WORK STATUS, WORK
HISTORY AND RECORDS OF JOBS HELD IN THE ORGANIZATION,
EDUCATION, TRAINING, SKILL COMPETENCIES, HISTORY OF
PERFORMANCE APPRAISAL, FUTURE JOBS DESIRED BY OR
RECOMMENDED FOR THE INDIVIDUAL, HOBBIES AND INTEREST
THAT MAY BE USEFUL FOR ORGANIZATIONAL PLANNING.
87
 EXTERNAL SUPPLY : POTENTIAL EMPLOYEES WHO ARE
CURRENTLY UNDERGOING TRAINING (e.g. UNIVERSITY
STUDENTS), ARE WORKING FOR COMPETITORS, WHO ARE
MEMBERS OF UNIONS, PROFESSIONAL ASSOCIATIONS, OR
CURRENTLY ARE IN A TRANSITIONAL STAGE, BETWEEN JOBS OR
UNEMPLOYED.
REASONS FOR USING EXTERNAL LABOUR TO MEET HR DEMAND :
1. INTERNAL SEARCHES AND JOB POSTING OR BIDDING PROCESS
FAIL TO IDENTIFY SUFFICIENT NUMBER OF HIGH- QUALITY
INTERNAL CANDIDATES.
2. IT IS NECESSARY TO EXPAND ORGANIZATION’S OPERATIONS
WITHOUT INCREASING LABOUR EFFICIENCY, OR IMPLEMENTING
LABOUR - SAVING TECHNOLOGY
3. INTERNAL EMPLOYEES ARE SOCIALIZED AND MAYBE
COMFORTABLE IN THEIR MODUS OPERANDI, WHEREAS
EXTERNAL APPLICANTS CAN INTRODUCE TO THE
ORGANIZATION COMPETITIVE INSIGHTS AND HIGHLY CREATIVE
NOVEL OPERATIONAL TECHNIQUES RECENTLY LEARNED IN
EXTERNAL INSTITUTIONS.

88
4. INTERNAL CANDIDATES MAYBE
CONSIDERABLY MORE EXPENSIVE.
5. ORGANIZATIONAL OBJECTIVES REQUIRE A
SHIFT IN OPERATING TECHNIQUES, CULTURE,
AND PAST PRACTICES, HIRING EXTERNAL
CANDIDATES IS OFTEN DESIRABLE FOR
SHAKING UP THE ORGANIZATION.

89
3. DETERMINE NET HR REQUIREMENTS

▪ HR DEMAND = EXTERNAL SUPPLY + INTERNAL SUPPLY

▪ HR DEMAND - INTERNAL SUPPLY = EXTERNAL SUPPLY
▪ EXTERNAL SUPPLY REQUIREMENTS =
REPLACEMENT + CHANGE SUPPLY COMPONENTS
▪ REPLACEMENT SUPPLY = HIRING TO REPLACE ALL
NORMAL LOSSES
▪ CHANGE SUPPLY = HIRING TO INCREASE (OR DECREASE)
THE OVERALL STAFFING LEVEL
 
NORMAL LOSSES ARE THESE THAT RESULT FROM
RETIREMENTS, TERMINATIONS, VOLUNTARY
TURNOVER, PROMOTIONS, TRANSFERS, AND LEAVES,
AND THESE LOSSES MUST BE REPLACED TO KEEP THE
WORKFORCE SIZE AT THE CURRENT LEVEL.

90
⚫ EXTERNAL SUPPLY =CURRENT WORKFORCE
SIZE X (REPLACEMENT % PER YEAR +
CHANGE % PER YEAR)
EXAMPLE :
(1). - CURRENT WORKFORCE = 1000 WORKERS.
- ANNUAL HISTORICAL REPLACEMENT/ LOSS RATE =
11%
- DESIRED FUTURE GROWTH RATE = 7%
=> EXTERNAL SUPPLY = 1000 (0.11 + 0.7) = 110 + 70
= 180
OF THE NEW HIRES (180 PEOPLE), 110 PEOPLE ARE
ALLOCATED STRICTLY TO REPLACEMENT OF
DEPARTING WORKERS, AND THE OTHER INDIVIDUALS
CONSTITUTE THE CHANGE REQUIREMENT FOR NEW
GROWTH.

91
(2). - CURRENT WORKFORCE = 450
- HISTORICAL ANNUAL REPLACEMENT/ LOSS RATE
OF 8%
- CORPORATE DOWNSIZING POLICY THAT WILL
REDUCE OVERALL STAFFING LEVELS BY 9.5%
=> EXTERNAL SUPPLY = 450 ( 0.08 + [-0.095] ) =
36 - 43 = -7
THE RESULT IS A NET HR SURPLUS, WHICH MEANS
THE ORGANIZATION :
▪ MUST INSTITUTE A FREEZE ON EXTERNAL
HIRING
▪ REDUCE THE CURRENT INTERNAL WORKFORCE
COMPLEMENT BY SEVEN POSITIONS TO MEET
THE MANDATED DOWNSIZING POLICY.

92
4. INSTITUTE HR PROGRAMS : HR DEFICIT AND HR SURPLUS
HR DEFICIT OCCURS WHEN DEMAND FOR HR EXCEEDS THE
CURRENT PERSONNEL RESOURCES AVAILABLE IN THE
ORGANIZATION WORKFORCE (HR INTERNAL SUPPLY).
HR DEFICIT = HR DEMAND > HR INTERNAL SUPPLY
=> POLICY OPTIONS FOCUS ON EXTERNAL SUPPLY
CONSIDERATIONS OF :
⚫ RECRUITMENT, SELECTION, AND COMPENSATION SCHEMES
TO ATTRACT NEW EMPLOYEES.
⚫ IT MIGHT BE POSSIBLE TO :
◦ HIRE PART - TIME EMPLOYEES, FULL- TIME EMPLOYEES, OR
A COMBINATION OF BOTH
◦ RECALL ANY WORKERS (DEPENDING ON THEIR KSAs AND
TRAINING) WHO WERE LAID OFF BECAUSE OF PAST LOWER
LEVELS OF HR DEMAND.
◦ RETIRED EMPLOYEES MIGHT BE ENTICED BACK TO WORK
ON AT LEAST A PART- TIME BASIS BY MEANS OF
ATTRACTIVE, FLEXIBLE WORK SCHEDULES.
◦ USE TEMPORARY WORKERS TO MEET A SHORT - RUN HR
NEEDS TO ADDRESS THE HR DEFICIT.

93
HR SURPLUS OCCURS WHEN THE INTERNAL WORKFORCE
SUPPLY EXEEDS THE ORGANIZATION’S REQUIREMENT OR
DEMAND FOR PERSONNEL.
HR SURPLUS = HR DEMAND < HR INTERNAL SUPPLY.
=> A NUMBER POLICY OPTIONS TO BE CONSIDERED :
⚫ LAY OFF EMPLOYEES TO REDUCE THE EXCESS LABOUR
SUPPLY TO A LEVEL EQUAL TO THE DEMAND
REQUIREMENTS.
⚫ TERMINATE EMPLOYEES IF CERTAIN JOBS ARE
CONSIDERED REDUNDANT AND THE SKILL SETS
ASSOCIATED WITH THESE JOBS WILL NOT BE REQUIRED
IN THE FUTURE.
⚫ JOB SHARING : TWO OR MORE EMPLOYEES PERFORM
THE DUTIES OF ONE FULL- TIME POSITION, EACH
SHARING THE WORK ACTIVITIES ON A PART- TIME BASIS.
⚫ REDUCE THE NUMBER OF HOURS, SHIFTS, OR DAYS
WORKED BY EACH WORKERS SO THAT ALL WORKERS
CAN BE RETAINED.

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⚫ SECONDMENTS OR LEAVES : THE ORGANIZATION
LENDS SOME OF ITS EXCESS WORKFORCE TO
COMMUNITY GROUPS OR PERMITS THOSE SURPLUS
WORKERS TO TAKE EDUCATIONAL LEAVE FOR
TRAINING AWAY FROM THE OPERATIONAL
WORKPLACE.
⚫ ATTRITION : THE PROCESS OF REDUCING HR
SURPLUS BY ALLOWING THE SIZE OF THE
WORKFORCE TO DECLINE NATURALLY BECAUSE OF
THE NORMAL PATTERN OF LOSSES ASSOCIATED WITH
RETIREMENT, DEATHS, VOLUNTARY TURNOVER, ETC.
⚫ HIRING FREEZE : A PROHIBITION ON ALL EXTERNAL
RECRUITING ACTIVITIES.

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 SUCCESSION MANAGEMENT
EXECUTIVES OF ANY ORGANIZATION MUST DEVELOP THE NEXT
GENERATION OF LEADERS.
A. SUCCESSION MANAGEMENT
⚫ THE PROCESS OF ENSURING THAT POOLS OF SKILLED
EMPLOYEES ARE TRAINED AND AVAILABLE TO MEET THE
STRATEGIC OBJECTIVES OF THE ORGANIZATION.
⚫ IT CONSISTS OF A PROCESS OF IDENTIFYING EMPLOYEES
WHO HAVE THE POTENTIAL TO ASSUME KEY POSITIONS IN
THE ORGANIZATION AND PREPARING THEM FOR THESE
POSITIONS.
⚫ THE IDENTIFICATION OF TALENT IS ALWAYS PAIRED WITH
ON GOING PROGRAMS TO DEVELOP THAT TALENT.
⚫ IT ENSURES CONTINUITY IN LEADERSHIP AND DEVELOPS
THE NEXT GENERATION OF PLAYERS.
⚫ THE ULTIMATE TEST OF GOOD MANAGEMENT IS
SUCCESSION MANAGEMENT, ENSURING THAT THERE IS A
REPLACEMENT FOR THE C.E.O.
⚫ ORGANIZATIONS MUST PREPARE FOR EXPECTED AND
UNEXPECTED TURNOVER, FOR KEY PLAYERS DO DIE,96
B. SUCCESSION MANAGEMENT PROCESS
1. ALIGN SUCCESSION MANAGEMENT PLANS WITH
STRATEGY. MANAGEMENT DEVELOPMENT HAS TO BE
LINKED TO BUSINESS PLAN AND STRATEGIES. THE
STRATEGIC CONNECTION IS IMPORTANT, SO
ORGANIZATIONS MUST START WITH THE BUSINESS
PLAN. COUPLED WITH ENVIRONMENTAL SCANNING,
MANAGERS TRY TO PREDICT WHERE THE
ORGANIZATION WILL BE IN THREE TO FIVE TO TEN
YEARS.
2. IDENTIFY THE SKILLS AND COMPETENCIES NEEDED TO
MEET STRATEGIC OBJECTIVES.
3. FROM THE STRATEGIC PLAN, MANAGERS CAN THEN
DEVELOP A LIST OF THE EMPLOYEE SKILLS AND
COMPETENCIES NEEDED. TWO APPROACHES TO
IDENTIFYING THE CHARACTERISTICS OF SUCCESSFUL
MANAGERS : THE JOB-BASED, AND THE COMPETENCY
BASED APPROACHES.

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⚫ JOB – BASED APPROACH
THE JOB-BASED APPROACH SUGGESTS THAT EMPLOYEES WHO
HAVE SIGNIFICANT EXPERIENCE AS MANAGERS AND HAVE
ACQUIRED JOB SKILLS SUCH AS MOTIVATING, DELEGATING,
MARKETING, OR MANAGING FINANCES, WILL MAKE SUCCESFUL
MANAGERS.
 
⚫ COMPETENCY – BASED APPROACH
COMPETENCIES ARE GROUPS RELATED BEHAVIOURS THAT ARE
NEEDED FOR SUCCESSFUL PERFORMANCE. THEY ARE
MEASURABLE ATTRIBUTES THAT DIFFERENTIATE SUCCESSFUL
EMPLOYEES FROM THOSE WHO ARE NOT. GIVEN AN UNCERTAIN
FUTURE IN WHICH SKILL NEEDS CHANGE RAPIDLY, SUCCESSION
MANAGEMENT SHOULD FOCUS ON THE DEVELOPMENT OF
COMPETENCIES. THUS A LIST OF SKILLS (RATHER THAN JOBS OR
POSITIONS) FORMS THE BASIS FOR SUCCESSION MANAGEMENT.
BY EMPHASIZING COMPETENCIES RATHER THAN JOB SKILLS,
INDIVIDUALS WILL BE MORE FLEXIBLE IN ADAPTING TO
CHANGING ORGANIZATIONAL NEEDS.

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TYPES OF COMPETENCIES :
⚫ CORE COMPETENCIES : CHARACTERISTICS, SUCH
AS THINKING SKILLSM THAT EVERY MEMBER OF THE
ORGANIZATION IS EXPECTED TO POSSES.
⚫ ROLE OR SPECIFIC COMPETENCIES :
CHARACTERISTICS, SUCH AS BUSINESS KNOWLEDGE,
SHARED BY DIFFERENT POSITIONS WITHIN AN
ORGANIZATION.
⚫ UNIQUE OR DISTINCTIVE COMPETENCIES :
CHARACTERISTICS, SUCH AS EXPERTISE IN MEDIA
RELATIONS, THAT APPLY ONLY TO SPECIFIC
POSITIONS WITHIN AN ORGANIZATION.

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3. IDENTIFY HIGH-POTENTIAL EMPLOYEES
ONCE WE KNOW WHAT COMPETENCIES ARE NEEDED,
WE CAN TURN TO THE IDENTIFICATION OF EMPLOYEES
WHO MIGHT ULTIMATELY ACQUIRE THESE SETS.
APPROACHES TO IDENTIFY MANAGERIAL TALENT
1. TEMPORARY REPLACEMENT : MANAGERS WILL
HAVE IDENTIFIED A DESIGNATED BACKUP AND
POTENTIAL SUCCESSOR. THIS IS DONE IN CASE THE
MANAGER IS AWAY FROM THE OFFICE FOR
EXTENDED PERIODS (e.g. VACATIONS, TRAINING).
2. REPLACEMENT CHARTS : SOME ORGANIZATIONS
PREPARE REPLACEMENT CHARTS WITH PREDICTED
DEPARTURE DATES OF THE INCUMBENTS, ALONG
WITH A SHORTLIST OF POSSIBLE SUCCESSORS. THIS
IS USUALLY DONE AROUND PERFORMANCE
APPRAISAL TIME, USING THE PERFORMANCE
EVALUATION DATA.

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3. STRATEGIC REPLACEMENT : A MORE ADVANCED
SUCCESSION MANAGEMENT PROGRAM; IDENTIFIES THE
LEADERSHIP COMPETENCE IT NEEDS, BASED ON
ORGANIZATIONAL PLANS. THE ORGANIZATION THEN TRIES
TO SUPPORT AND TRAIN THESE MANAGERS FROM WITHIN.
4. TALENT MANAGEMENT CULTURE
A TALENT MINDSET : CEO’S BELIEVE THAT TALENT
MATTERS AND IT MUST BE DEVELOPED NOT ONLY AT THE
TOP LEVEL, BUT AT ALL LEVELS.
MANAGERS ACTIVELY SCAN THE ENVIRONMENT LOOKING
FOR EXTERNAL TALENT : THEY HAVE DEVELOPED BOTH
INTERNAL AND EXTERNAL LISTS OF HIGH-POTENTIAL
CANDIDATES.
SOME COMPANIES OPERATE WITH ALL FOUR APPROACHES,
USING REPLACEMENT PLANNING FOR HIGHLY PREDICTABLE
JOBS SUCH AS ACCOUNTING, AND TALENT MANAGEMENT TO
DEAL WITH RAPID CHANGES IN STRATEGIC NEEDS.

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4. PROVIDE DEVELOPMENTAL OPPORTUNITIES AND
EXPERIENCES.
IN THE SUCCESSION MANAGEMENT PROCESS, THE FOCUS IN
MANAGEMENT DEVELOPMENT IS ON THE DEVELOPMENT OF
COMPETENCIES, NOT JUST ON JOB PREPARATION, WHICH GOAL
IS TO DEVELOP MANY SKILLS THAT MAYBE NEEDED IN AN
UNCERTAIN FUTURE.
THE MOST COMMON DEVELOPMENT METHODS ARE
PROMOTIONS, JOB ROTATIONS, SPECIAL ASSIGNMENT AND
ACTION LEARNING, FORMAL TRAINING AND DEVELOPMENT,
AND COACHING AND MENTORING.
⚫ PROMOTIONS REFERS TO AN EMPLOYEE’S UPWARD
ADVANCEMENT IN THE HIERARCHY OF AN ORGANIZATION.
⚫ JOB ROTATIONS : A PROCESS WHERE BY AN EMPLOYEE’S
UPWARD ADVANCEMENT IN THE HIERARCHY OF AN
ORGANIZATION IS ACHIEVED BY LATERAL AS WELL AS
VERTICAL MOVES.
⚫ SPECIAL ASSIGNMENTS
MOST ORGANIZATIONS TEST HIGH-POTENTIAL EMPLOYEES
BY GIVING THEM AN ASSIGNMENT IN ADDITION TO THEIR
REGULAR DUTIES.
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⚫ FORMAL TRAINING AND DEVELOPMENT
SENIOR MANAGERS, NEED THE SOFT SKILLS OF
DELEGATION AND MOTIVATION, RATHER THAN HARD
SPECIAL SKILLS SUCH AS WEBSITE DEVELOPMENT OR
BENEFIT MANAGEMENT, THROUGH ROLE-PLAYING, CASE
STUDIES, BEHAVIOUR MODELLING, AND ACTION
LEARNING.
MANY COMPANIES PREPARE AN EDUCATIONAL APPROACH
THAT BROADEN INTELECTUAL SKILLS A THE ABILITY TO
ANALYZE. THESE COMPANIES TURN TO UNIVERSITIES TO
TEACH THEIR EXECUTIVES CONCEPTUAL SKILLS, WHICH
WILL BE USEFUL IN MANY SITUATIONS.
⚫ MENTORING AND COACHING
MENTORS ARE EXECUTIVES WHO COACH, ADVISE, AND
ENCOURAGE JUNIOR EMPLOYEES. THE MENTOR TAKES AN
ACTIVE INTEREST IN THE CAREER ADVANCEMENT, AND
THE PSYCHOSOCIAL DEVELOPMENT OF THE PROTÉGÉ.

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5. MONITOR SUCCESSION MANAGEMENT
RESULTS IF THE SUCCESSION MANAGEMENT WORKED PERFECTLY :
⚫ EMPLOYEES WOULD REVENUE REGULAR FEEDBACK BASED ON
THE ASSESSEMENT PROCESS AND WOULD PARTICIPATE IN
DEVELOPMENT PLAN.
⚫ THE ORGANIZATION WOULD HAVE SKILLED EMPLOYEES
PREPARED TO CONTRIBUTE TO THE GOALS OF THE
ORGANIZATION UNDER CHANGING CONDITIONS.
HOW TO MEASURE THE EFFECTIVENESS OF SUCCESSION
MANAGEMENT :
⚫ TO COUNT THE NUMBER OF PREDICTED “HIGH-POTENTIAL
REPLACEMENT” WITH THE ACTUAL NUMBER OF THOSE PLACED
IN THE POSITIONS.
⚫ ATTITUDE SURVEYS OF THESE EMPLOYEES
⚫ EXIT INTERVIEWS IF THESE “HI-POTS” LEAVE THE
ORGANIZATION
 
CORPORATIONS WITH STRONG SUCCESSION MANAGEMENT
PROGRAMS ARE HIGHER PERFORMERS MEASURED BY REVENUE
GROWTH, PROFITABILITY, AND MARKET SHARE.

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