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Information for Human Resource Decisions

Chapter 5. Information for Human Resource Decisions. Chapter 5 Objectives. Describe human resource planning as a source of information for decision making. Discuss strategy as a source of information for making human resource decisions.

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Information for Human Resource Decisions

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  1. Chapter 5 Information for Human Resource Decisions

  2. Chapter 5 Objectives Describe human resource planning as a source of information for decision making. Discuss strategy as a source of information for making human resource decisions. Discuss economic conditions as a source of information for making human resource decisions. Describe job analysis as a source of information for making human resource decisions. Discuss the job analysis process and Identify and summarize common job analysis methods.

  3. The process of forecasting the supply and demand for human resources within an organization and developing action plans for aligning the two. What is Human Resource Planning?

  4. What are the benefits of HR Planning?

  5. Human Resource Planning • Through HR planning, an organization is able to generate a list of future human resource needs and a plan for meeting them. • To derive HR needs, the organization must forecast its demand and supply.

  6. Human Resource Planning (Cont.) • Demand forecasting involves predicting the number and types of people the organization will need at some future point in time. • Supply forecasting involves estimating which organizational positions are expected to be already filled.

  7. Human Resource Planning (Cont.) Demand Forecasting • An organization predicts needed workforce size on the basis of certain business factors. • A business factor is an attribute of the business such as sales volume or market share, which closely relates to the size of the needed workforce. • Is used when an organization operates in a stable environment.

  8. Human Resource Planning (Cont.) Supply Forecasting • Steps to supply forecasting • Step 1: Organization groups its positions by title, function, and level of responsibility. • Step 2: Estimate within each job group, how many of its current employees will: • Remain in their positions during the planning period. • How many will move to another position. • How many will leave the organization.

  9. Human Resource Planning (Cont.) Estimating Future HR Needs A firm derives its specific staffing needs by combining the results of the supply and demand forecasts within each job group

  10. Outcomes of the HR Planning Process Dealing with an Undersupply/Oversupply of Employees

  11. Human Resource Information Systems (HRIS) • A computerized information package that provides management with increasing capacity to record, store, manipulate, and communicate information across wide geographic boundaries, with access to many users

  12. Human Resource Information Systems (HRIS) (Cont.) A Company’s HRIS contains information about:

  13. Human Resource Information Systems (HRIS) (Cont.) Purposes served by a company’s HRIS:

  14. Labor Force Trends and Issues • Increasing workforce diversity • Gradual increase in average age of the U. S. workforce • Entry of more women into the workforce • Changing ethnicities • Global economic conditions

  15. Strategy as a Source of Information

  16. Implications of a growth strategy: Need to hire new employees Implications of a stability strategy: Implement training to upgrade employee skills Implement programs to help reduce turnover Implications of a reduction strategy: Find ways to reduce workforce Normal attrition processes Retirement (including early retirement) Layoffs Strategy as a Source of Information (Cont.)

  17. Rate of Unemployment Is calculated by the Bureau of Labor Statistics as the percentage of individuals looking for and available for work who are not presently employed. Market Wage Rate Is the prevailing wage rate for a given job in a given labor market. Economic Conditions asa Source of Information

  18. Human Capital Investments Are investments people makes in themselves to increase their value in the workplace. Can take the form of additional education or training. Economic Conditions asa Source of Information

  19. Job Analysis as a Source of Information Job analysis information can be applied to a variety of HRM practices

  20. Job Analysis Is the process of gathering and organizing detailed information about various jobs within the organization so that managers can better understand the process through which they are performed most effectively. Job Analysis as a Source of Information

  21. Job Analysis Determining the Type of Information to be Collected When conducting a job analysis, the organization must determine: Who will collect the information?

  22. Job Analysis Determining the Type of Information to be Collected Worker Requirements knowledge, skills, abilities Job Context plant assembly line • Job analysis information may be divided into three categories: • Job Content • Job Context • Worker Requirements Job Content assemble boxes The purpose of job analysis dictates the particular information to be gathered

  23. Job Analysis Determining the Type of Information to be Collected Job Content • What the worker does? • Purpose of the action. • Tools, equipment, or machinery used in the process. • Relative importance of tasks. • Expected performance levels. • Training needed

  24. Job Analysis Determining the Type of Information to be Collected Job Context • Reporting relationships • Supervision received • Judgment • Authority • Personal contacts • Working conditions • Physical demands • Personal demands

  25. Job Analysis Determining the Type of Information to be Collected Worker Requirements • Knowledge • Skill • Ability • Personal characteristics • Credentials

  26. Job Analysis Determining How to Collect the Information • HR professionals gather job analysis information by: • Interviewing the workers. • Observing them at work. • Having them complete job analysis questionnaires Appropriateness of each approach depends, in part, on the type of information sought.

  27. Job Analysis Determining How to Collect the Information Job analysis interviews: • Structured conversations between the job analyst and one or more subject-matter experts.

  28. Job Analysis Office Space and Job Analysis Questions: • What is “right” about how “The Bobs” conducted the interview? • What is “wrong” about how “The Bobs” conducted the interview? • How would you approach this situation differently in order to make this analysis more effective? • Do you think Peter is the “typical worker”? • When Peter states that it is “a problem of motivation” how would you realistically address this situation?

  29. Job Analysis Determining How to Collect the Information Job analysis observation: • Involves watching the incumbent • perform the job.

  30. Job Analysis Determining How to Collect the Information Job Analysis Questionnaires

  31. Job Analysis Determining How Job Analysis Information Will Be Recorded General Purpose Job Description

  32. Job Analysis Legal Issues • Americans with Disabilities Act (ADA) • Gender discrimination • Federal guidelines on proving job-relatedness of employment-based decisions

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