Learning Materials For Accounting, Management , Finance And Economics.

Saturday, January 26, 2013

Disadvantages Of Internal Recruitment

Internal recruitment sources and methods have some disadvantages as follows:

1. Limited Choice

Internal recruitment provides limited choice of talent available in the organization as it avoids the arrival of fresh candidates. Internal recruitment does not tap any candidate from outside the organization; hence, the choice upon members of organization is limited.

2. Implementation Of Traditional System

Internal recruitment requires the implementation of traditional form, system, process and procedures. And this limits the scope of fresh talent in the organization.
                 
3. No Opportunity

In internal recruitment, the internal employees are protected from competition by not providing any opportunity to fresh talents. This also develops a tendency among the employees to take promotions without any extra knowledge or talent.

4. Favourism

There will be tendency of referring friends and family members in the organization. Then, the organization will be overstaffed with talent-less crowd.

5. Limited Internal Sources

The source of supply of manpower is limited in internal recruitment method. When an employee is promoted, his/her previous position will be vacant and another personnel is to be recruited to fill that vacant position.

6. Costly

Taking into consideration that when an employee is promoted, his/her position will be vacant. In this regard, another employee is to be recruited to fill that position, which may be costly affair.

Friday, January 25, 2013

Advantages Of Internal Recruitment

Internal recruitment has following advantages:

1. Moral

Internal method of recruitment ensures that employees would be preferred over the outsiders; hence, it yields high morale in them.

2. Labor Relation

Internal recruitment brings an efficient labor relation between employees and management as they are transferred and promoted to desired places.

3. Better Selection

Internal recruitment policy provides an opportunity for the better selection of qualified and experienced personnel who can perform the job well.

4. Economy

Internal recruitment method is economical, as the organization need not spend much money for recruitment of employees from outside the organization.

5. Better Performance

The transferred or promoted employees can perform better work performance, as they are known with requirement of skill, knowledge and ability.

6. Employee Development

Under internal recruitment, every employee gets an opportunity for transfer and development, which motivates him/her for higher level of performance. Ultimately, it helps in employee development.

7. Less Time

Internal recruitment takes less time in comparison to the external source and methods of recruitment. Different aspects of an employee are already known, it does not consume much time to appoint him/her in the organization.

Internal Sources And Methods Of Recruitment

Internal Sources Of Recruitment

Internal sources refer to recruiting employees from within the organization. In deciding requirement of employees, initial consideration should be given to a company's current employees, which is concerned with internal recruitment. They include those who are already available on the pay roll of the company. This is important source of recruitment as it provides opportunities for better development and utilization of existing human resources in the organization.

There are two aspects of recruitment under internal sources. They are as follows:

1. Promotions

It refers to promoting or upgrading an employee who is already existed in the pay roll and contributed for organizational performance. It is done by shifting an employee to a higher position with high responsibilities, facilities, status and pay. Usually, many companies fill higher job vacancies by promoting employees who are considered fit for such positions. This is due to fact that it has a great psychological impact over other employees for their motivation towards better performance.
                             
2. Transfers

It is an alternative technique to promotion. Under it, employees are internally recruited through transfer from one work place to another. It means, transfer refers to the process of interchanging the job duties and responsibilities of employees from one place to another or from one department to another. It involves shifting of people from one job to another without any promotion in their position or grade. It is a good source of generating qualified employees from over-staffed departments.

Methods Of Internal Recruitment

There are two methods of recruiting qualified candidates under internal recruitment. They are as follows:

1. Job Posting

Job posting is an open invitation to all employees in an organization to apply for the vacant position. It provides an equal opportunity to all employees currently working in the organization. Today it has become a very common practice in many organizations across the world. Under this, vacancy announcement is made through bulletin boards or in lists available to all employees. Interested employees, then apply for the post being advertised. In this way, it has become one of the cost saving techniques of recruitment.

2. Employee Referrals

Employee referral is recruiting new people based on the reference of current employee. Under this method, a candidate is appointed on the recommendation of some currently working employees. Usually this is nomination by supervisors. It is effective generally particularly to find critically skilled candidate for an organization. It has been a major source of new hires at many levels including professionals. It can be a good method of internal recruitment when employees recommend a successful candidate. However, it may be influenced by the tendency of developing good prospects for their families and friends in the organization.

Saturday, January 19, 2013

Factors Affecting Recruitment

Recruitment policy of an organization is affected by various factors. These factors may be divided into dimensions:- internal factors and external factors as follows:

1. Internal Factors Affecting Recruitment

For the internal mechanism of the organization, some of internal factors that affect recruitment are as follows:

i. Size of the organization

Recruitment process is affected by the size of the organization to a large extent. Experience suggests that larger organizations recruits more candidates than small ones. Large organizations find recruitment less problematic than small organizations.

ii. Recruiting Policy

The recruitment policy of the firm also affects the recruitment process. This policy is concerned with candidates from outside the organization, whereas others want to recruit from internal sources.

iii. Image of the organization

Image or goodwill of the organization also affects the recruitment. Organizations having good image can attract potential and competent candidates to a large extent. Good public relation, rendering public services, etc. help to enhance the image and reputation of the organization.

                       
iv. Image of job

Jobs having good image in terms of better remuneration, working condition, promotion, career development opportunities etc can attract the potential and qualified candidates to a large extent.

2. External Factors Affecting Recruitment

External factors are concerned with the environmental changes that will take place in the external environment of organization. Some of the external factors that affect recruitment policy are as follows:

i. Demographic factors

A demography is the study of human population in terms of age, sex, occupation, religion, composition, ethnicity etc. The demographic factors have profound influence on recruitment process.

ii. Labor market

Labor market constitutes the force of demand and supply of labor of particular importance. For instance, if demand for a particular skill is high relative to its supply, the recruitment process evolves more efforts. Contrary to it, if supply is more than demand, the recruitment process will be easier.

        Also read: Internal Sources And Methods Of Recruitment

iii. Unemployment situations

Unemployment rate of particular area is yet another influencing factor of recruitment process. If the unemployment rate is high, the recruitment process will be simpler and vice versa.

iv. Social and political environment

The forces of social and political environment also influence recruitment policy. For instance, the change in government can have a direct impact upon recruitment policy of the company due to change in government rules and regulations.

vi. Legal considerations

Legal considerations with regard to employment provision for under-privileged castes etc. will have a positive impact on recruitment policy of the organization.

Recruitment Process Or Steps Of Recruitment

Recruitment is a step-by-step process of locating, identifying and attracting qualified people to apply for the vacant post in an organization. It requires the following phases:

1. Identifying The HR Requirement

The first step of recruitment is to assess the requirement of human resource in an organization to carry out the organizational mission, goals and objectives. Under this step, the required number and kinds of people needed for the organizational performance are identified. It can be done through the information obtained from HR planning and job analysis. This provides information on the current availability of human resources and anticipates the future requirement of HR for organizational activities. Under it, comprehensive draft is prepared specifying the duties, responsibilities, working conditions and skill requirements to perform the task.

2. Identifying Possible Sources Of HR Supply

After the assessment of HR requirement, the probable sources are identified for generating a pool of qualified candidates. This process involves searching for the potential candidates. Mainly sources of HR supply are of two types: internal sources and external sources. Internal sources consist of transfers and promotions. Whereas, external sources include a variety of alternatives like employment agencies, advertisement, casual callers, recommendations, educational institutions etc. Along with the probable sources, the suitable method of recruitment is also identified under this phase of recruitment. The sources and methods are adopted in such a way that they provide the best and qualified human resource at a minimum cost.

3. Communicating The Information 

In this step of recruitment, the potential candidates are informed about vacancy announcement.Under it, the information about the job requirement is passed away to the potential candidates about the job and required number of employees to be recruited. This information is passed away through different media or from the organization's notice board. The popular media for vacancy announcement are print media, electronic media, internet, and so on.

4. Receiving Application

Recruitment process ends by generating a pool of qualified candidate to fill organizational vacancies. Under it, a recruiter receives the application forms dropped by different applicants who are interested to apply for a job. It provides a pool of candidates for selection. After recruitment, selection process begins, which chooses the best applicant for the job who is supposed to perform well in the actual work situation. After receiving application forms, they are evaluated to check whether the basic requirement is maintained or not.

Concept And Meaning Of Recruitment

Recruitment is a process of identifying and preparing potential candidates to fill the application form. It is an initial phase of employment process. Recruitment inspires the potential candidates to fill the application form for employment. After estimating the need and requirement of human resource in an organization, the HR manager proceeds with identification of sources of HR, which is termed as recruitment.

Recruitment may be defined as a process of bringing right people for right position, at the right time to perform organizational activities in order to achieve the objectives. It is concerned with identifying and attracting a pool of candidates to fill the organizational vacancies. Recruitment generates applications or applicants for specific positions to be filled in the organization. In other words, it is a process of finding and attracting capable applicants for employment. Hence, theoretically recruitment process ends with the receipt of applications. It is regarded as a positive process as it attracts a large number of qualified applicants who will take the job if it is offered.

It is concluded that, recruitment is a process of searching for and securing applicants for specific position to be filled. It specifies HR requirements through the generation of a pool of candidates for organizational vacancies. It identifies different sources of manpower. Recruitment process identifies the following:

1. Recruitment process identifies different sources of manpower supply,
2. Recruitment assesses their validity,
3. Recruitment process choose the most suitable source and
4. Recruitment process invites applications from  prospective candidates.

Recruitment process begins after preparing HR planning and conducting job analysis. Therefore, it keeps a relationship with other human resource activities.

Friday, January 18, 2013

Job Evaluation Process Or Steps Of Job Evaluation

Job evaluation is a step by step process which is completed after the successful completion of following phases:

1. Job Analysis

It is a process through which required information about various aspects of jobs can be obtained. Job analysis involves two dimensions:

i. Job description

Under job description, a profile of job information is prepared indicating the duties, responsibilities and working condition of work. It explains about what the job entails.

ii. Job specification

Job specification indicates preparation of a specification statement which explains the necessary skills, knowledge and abilities required to perform the job.

2. Job Rating

Job rating includes the process of using same methods to study job descriptions and specifications in order to assign a relative worth for each job. Some of job rating methods are: ranking, point rating factor comparison, and so on.

3. Money Allocation

After rating the worthiness of each job, a pay structure is determined and the money for each job is allocated. It means, it is the arrangement of paying rewards/compensation for each job according to its worth or value.

4. Job Classification

Job classification is the last step of job evaluation which is concerned with the categorization of jobs according to their pay scale. For example, high paying jobs are represented at the top of the hierarchy.

Importance And Features Of Job Evaluation

Job evaluation has some importance and features as follows:

1.Job evaluation helps to rate the job

Job evaluation is a technique which helps to rate the job in terms of complexities and importance. It rates the job but the job holder. This helps determining and fixing wages accordingly.

2. Job evaluation helps to determine pay structure

Job evaluation is a consistent and rational process of determining wages and salary structure for various level of jobs. Internal and external consistencies are analyzed in order to determine wage levels.

3. Job evaluation helps in bringing harmonious relation between labor and management

Job evaluation brings harmony and good labor relation through eliminating wage inequalities within the organization.

4. Job evaluation helps to minimize the cost of recruitment and selection

Job evaluation helps in keeping down the recruitment and selection costs as it assists in retaining employees. It means, job evaluation inspires for keeping down the labor turnover, as a result of which there will be less need of new recruitment. Moreover, due to systematic analysis of various aspects of jobs, recruitment and selection can be made by matching the qualification and candidate.


5. Job evaluation helps to differ job other than skills

Job evaluation considers risks and other factors of  job rather than skills in order to determine the worth of jobs. Hence, jobs are no longer differentiated with skills.

6. Job evaluation helps to determine the cost and rate of production

Job evaluation determines an efficient wage structure according to workload, hence, worker's productivity will be increased thereby increasing the rate of production.

7. Job evaluation helps to determine the requirement of training and development

Job evaluation identifies training and development requirements by comparing the complexity and importance between various jobs. Highly complex and critical job exposes training need.

8. Job evaluation helps to minimize cost

Through the productivity enhancement and increasing the rate of production, the per unit cost of an output is minimized or reduced.

Concept And Meaning Of Job Evaluation

Job Evaluation

Job evaluation is concerned with a process of establishing value of different jobs. job evaluation provides a basis for ranking or grading different jobs and developing a pay structure for them. It is the process of describing the duties, authority relationships, skills, condition of work and other relevant information related to jobs. It supplies useful data and information to develop job description and specification documents. Job evaluation is an important task of a HR manager which is performed in order to determine the value or worth of each job within the organization.

Job evaluation is the rating of job in an organization which attempts to compare the relative intrinsic value of each job and forms a job hierarchy. It is ranking of job not the job holder- as the job holders are rated through performance appraisal. Under the job evaluation process, wages and salary differentials are established on the basis of job ranking process. The basic procedure in job evaluation is to compare the contents of jobs in relation to one another which form a job hierarchy.

Therefore, job evaluation may be defined as a process of assigning value for each job in a job hierarchy so as to ascertain and determine a relative remuneration for different jobs. It takes into account the demands of the job in terms of efforts and abilities.

Concept And Meaning Of Job Specification And Contents Of Job Specification Statement

Concept And Meaning Of Job Specification

Job specification is a document or statement which spells out the minimum levels of qualification, skills, physical and other abilities, experience, judgement and attributes required to perform the efficiently and effectively. Job specification is prepared along with job description statement to explain the minimum acceptable human qualities necessary to perform the task effectively. It specifies the physical, psychological, personal, social and behavioral characteristics of each job-holder.
The job specification statement is an important tool in the selection process because it specifies the individual abilities, skills and knowledge of performing tasks. It keeps the selector's attentions on the list of qualifications necessary for an incumbent to perform the job. Finally, it allows him/her to determine whether candidates are qualified. 

Therefore, a job specification is the listing of minimum levels of qualification, skills and abilities that an incumbent must possess in order to perform the required task properly. An individual possessing the minimum qualities specified in a job specification statement can perform the job more effectively than individual lacking them.

Contents Of Job Specification Statement

Following contents are included in job specification statement:

1.Required Education

Required level of education for each post that an incumbent is supposed to hold is listed in job specification statement. It also helps to determine the level or category of job in terms of rank. 

2. Health And Physical Fitness

Physical fitness and health is a crucial aspect of good performance. Hence, body structure, physical ability and other aspects of health and fitness is a must in order to perform well in the organization.

3. Appearance

Appearance refers to an outlook of an employee, which must be attractive and good looking. The cleanliness and neatness of an individual shows his/her appearance. Hence, job specification statement defines the employee's appearance.

4. Mental And Other Abilities

The employee must be mentally fit to perform the desired task. If not, the problems may arise at the work floor. Mental fitness is associated with the ability of decision making, managing emotions and sorrows, dealing with different kinds of people etc.

5. Experience

Under it, the required level of experience in doing a particular task is explained, if necessary. An experienced employee will be preferable in comparison to the fresh candidate.

Concept And Meaning Of Job Description And Contents Of Job Description Statement

Concept And Meaning Of Job Description

Job description is a functional description of the contents and contexts of the job. Job description narrates the various features and contents of a job. It is a written statement that identifies, describes and defines job's duties, responsibilities, working conditions etc. It is a document showing a brief summary of task requirements which explains the constitute elements of job in a organized way.

Job description discloses what an incumbent is supposed to do, how the task is to be done. The data to be included in the job description statement is usually determined by the job analyst to make the document more reliable and informative.Moreover, the information is, in turn, used to write a job specification statement showing minimum requirement of skill, knowledge and ability to perform a specific task.

Thus, job description is the listing of job tasks, duties and responsibilities which depicts a brief summary of the job in terms of nature and types.

Contents Of Job Description Statement

The job description statement contains the following contents:

1. Job Title

It explains the title of the job. It means, what the particular job is all about is identified under this content.

2. Job Location

It refers to the name of the department where the job under consideration exists in the organization.

3. Job Summary

Job summary tells about a brief history of job. It is a short paragraph which explains the tasks and activities to be performed by an incumbent. It is a statement which explains what the job entails.

4. Duties

Duties refer to the task performed by an employee. It is necessary to mention the task of the employee because it helps him to estimate the percentage of time that is devoted to the performance.

5. Machines, Tools And Equipment

The machines, tools and equipment used by an incumbent for the performance of tasks are included under this head. 

6. Materials And Form Used

It includes all input requirements and the method of application in the production process.

7. Working Environment

The working environment is concerned with the actual work place. It defines working condition in terms of heat, light, noise level etc.

8. Job Hazards

Job hazards are obstacles and obstructions that may arise during actual performance of the task.

Steps Involved In Job Analysis Or Job Analysis Process

Job analysis is a process of collecting information related to various aspects of the job. It collects and analyses the information associated with job description and specifications. Following steps are involved in job analysis:

1. Information Collection

This is the first step of job analysis under which required information related to various aspects of jobs are collected. Information is obtained through different methods such as interview, observation, questionnaire, critical incidents etc.It is associated with preparation of plans and programs and assignment of responsibilities to the concerned person.

2. Review Background Information

This is the second step of job analysis process under which the previously collected information is reviewed to design organizational charts, current position descriptions and specifications, procedures, manuals and process charts. These help in detailed assessment of job.

3. Selection Of Representative Position To Be Analyzed

Analyzing all jobs at a time is complex and costly affair. So, only a representative sample of jobs is selected for the purpose of detailed analysis. Under it, the job analyst investigates to determine which organization managers or employees require job analysis. He should also determine for what purpose the job must be analyzed.

4. Analysis Of Jon By Collecting Data

Under this step of job analysis process, a job analyst obtains the data and information related to the selected jobs. The information is collected on the job activities, required employee behaviors, working conditions, human traits and qualities, abilities of performing the job and other various dimension of the job. Data can be collected either through questionnaire, observation or interviews.

5. Develop Job Description

In this step of job analysis, a job description schedule is developed through the information collected in the above step. This is the written statement which describes the prominent characteristics of job along with duties, location and degree of risk involved in each job.

6. Develop Job Specification

Developing the job specification is the last step of job analysis process under which a detailed specification statement is prepared showing minimum requirement of each job. A job specification summarizes the personal qualities, traits, skills, knowledge, and background required to perform specific task. It also involves the physical and psychological attributes of the incumbent.

Thursday, January 17, 2013

Significance And Uses Of Job Analysis

Job analysis helps to prepare sound human resource practice and policies. Because  job analysis provides a deeper understanding of the behavioral requirements of the job, it plays a vital role in the defense of employment practices. Following are the main importance and uses of job analysis:

1. HR Planning

Job analysis provides useful information for human resource planning. It is the foundation for forecasting demand for and supply of human resources in an organization. It is also necessary for preparing HR inventory and HR information system in the organization.

2. Recruitment And Selection

Job analysis provides necessary information for conducting recruitment and selection of employees in the organization. Recruitment generates a pool of candidates who are willing to perform in the organization, whereas selection selects the best suited candidate out of the available candidates who are supposed to perform well in the organization.

3. Training And Development

Up-to-date description and specification statements help to ensure the requirement of training and development needs in the organization. By comparing knowledge and skill of current employees with the expected level of performance, the need of training and development requirement can be assessed.

4. Compensation Management

Job analysis provides necessary information for managing compensation of employees. It helps to rank the job in order to determine pay surveys. Hence, it helps in compensation decisions.

5. Performance Appraisal

Job analysis helps to appraise the performance of employees by providing clear cut standards of performance for each job. It compares each employee's actual performance with the predetermined standards.

6. Information Of Duties

Job analysis provides valuable information regarding the duties and responsibilities of an incumbent through job description statement. It also provides the content and skill requirement of each job.

7. Health And Safety

In course of job analysis, certain unsafe environmental and operational conditions or personal habits are discovered and thus, that may lead to safety improvements.

8. Job Re-engineering

Job analysis provides valuable information data relating to the content and skill requirement of jobs which help to bring about improvements in the engineering design of jobs.

9 .Employee Counseling

Vocational guidance and rehabilitation counseling is possible through comprehensive job description and specification statements. 

Objectives Of Job Analysis

Job analysis is a process which determines the duties and skill requirements of a job. Hence, it indicates what activities and accountability the job entails. Following are the main objectives or purposes of job analysis:

1. Job Description

Job description is a job profile which describes the contents, environment and condition of jobs. It is prepared on the basis of data collected through job analysis. It provides information relating to activities and duties to be performed in a job. It differentiate one job from another by introducing unique characteristics of each job.


2. Job Specification

Job specification is another notable objective of job analysis. It includes the information relating to the requirements of skills and abilities to perform a specific task. It states the minimum acceptable qualifications that an incumbent must possess to perform the assigned duty successfully. The job specification statement identifies the knowledge, skills, abilities needed to perform that task effectively. 

3. Job Evaluation

Job analysis also provides required information which are necessary for evaluating the worthiness of jobs. After the preparation of job description and job specification statements, it assists for the evaluation of actual performance against the predetermined standard. Then the deviation (if any) is found out that has taken place during the course of action. Moreover, job evaluation helps to establish the value of different jobs in a hierarchical order which allows to compare jobs one from another.

Concept And Meaning Of Job Analysis

What Is Job Analysis ?

Job analysis is understood as the analysis of job-related activities in the organization. Job analysis collects and analyses the information related to jobs and various aspects of jobs. It is performed upon ongoing jobs only which contain job contents and the skill requirement to perform the specific task. it involves a formal study of jobs which is essential in determining the duties and the nature of the jobs in the organization.

Job analysis is a process of gathering or collecting information relating to job description and job satisfaction. It is the systematic process of gathering and organizing the information relating to various aspects of job, which describes the job contents and minimum job requirements in terms of skills, efforts, responsibilities and working conditions. Job analysis attempts to provide information related to the following questions:

- Where does the work come from?
- What kind of machines are to be used in performing the job?
- What knowledge, skills and abilities are needed to do the specific task?
- How much supervision is necessary?
- What is the current working condition and what is should be?
- What are the performance expectations for the jobs?

Therefore, it can be concluded that job analysis is an analytical study of job-related information which provides a basis for defining duties, responsibilities and accountability of each job. It helps to prepare job description and job specification statements. It is a part of overall work planning which involves analysis, measurement, control, design and redesign of different jobs.

Methods Of Job Design

Job design methods seek how to design jobs. Jobs can be designed to range them from very simple to highly complex ones depending on the skill requirement to perform the job. The well known methods of job design are as follows:

1. Classical Approach

The classical approach of job design is greatly influenced by the work of F.W Taylor. From his work, time and motion study, he realized that by bringing a proper match between labor, tools and tasks it would be possible to increase productivity. Hence under this approach, the job is designed in the basis of organizational requirements. Its purpose is to simplify the tasks and break them down into small work units. The primary focus of this approach is planning, standardizing and improving human effort at work in order to optimize organizational productivity. Different methods under classical approach are as follows:

* Work Simplification: It is a process through which the job is broken down into small work units.
* Job Rotation: It is a process of transferring workers from one job to another or from one work unit to another without disrupting the flow of work.
* Job Enlargement: It refers to a process of expanding the job's duties. It increases a number of different tasks performed by an individual in a single job.

                       
2. Socio-technical Approach

This is another important approach of job design in which social and technical aspects of the organization are considered. Under it, jobs are designed according to individual needs and organizational requirements. Furthermore, this approach considers both job-related technical systems as well as accompanying social forces of the job. It means it includes an entire job situation along with organizational and social factors while designing jobs. This approach leads to development of self-managed work teams in organization.

The technical and social aspects of job are analyzed in order to create jobs which have supportive relationship. Moreover, it requires a combined efforts of employees, supervisors, and union representatives to design and redesign the jobs under this approach. Hence, it is situational approach as it assesses the technical requirements and social surroundings of the job.

3. Behavioral Approach

Behavioral approach is concerned with behavioral factors such as: autonomy, variety, task identity, task significance, feedback mechanism etc. It means the above mentioned behavioral factors are analyzed and considered while designing the jobs under this approach. The different behavioral methods are as follows:

* Job Enrichment: It is concerned with the process of putting specialized tasks together so that the individual who is assigned with the task is responsible to perform the whole task.
* Job Characteristics: This method states that job characteristics affect the job designing process. It focuses on job redesign, work structuring, job enrichment, and so on to improve organizational productivity and quality of work life of employees.
* Autonomous Team: It is a group of workers in which they solve problems, implement solution and take full responsibility for outcomes. They are self-directed and self-managed work groups who perform related or interdependent tasks.
* Modified Work Schedule: It is a technique of job design through which the working schedules, timing, work week etc. are rescheduled as per the convenience of the workers.

Wednesday, January 16, 2013

Importance And Benefits Of Job Design

Job design is important for an organization to perform the organizational activities in the most efficient and effective manner. It provides the required information about the incumbent and also specifies the way of performing the tasks. Therefore, job design is very important for the organization due to its benefits as follows:

1. Organizational Design

The job design specifies the contents and procedures of performing the task in the organization. Hence, it helps in designing organizational structure. The organizational structure is determined by the job design process. It plays a key role in assessing the need and requirement of organizational structure. Job design also specifies organizational culture, norms and values that its members need to follow to achieve organizational goals.

2. Structure Of Competent Employee

Job design is a systematic approach of providing job-related data and information on skills, knowledge and ability of the incumbent to perform the task. On the basis of the information provided by it, the job description and job specification schedule are prepared, which helps to the best suited candidate for the job. It provides a milestone to select the competent employee who is capable of performing the task well in the organization.

3. Motivation And Commitment Of Employees

Job design makes the work more interesting and challenging, which motivates the employees for higher level of performance. The challenging and interesting job provides better pay for the employees which inspires them for better job performance. Along with motivation job design also brings high degree of commitment in them towards organizational objectives. This helps to increase organizational productivity and employee satisfaction at work.

4. Environmental Adaptation

An organization is operated in a dynamic environment. Hence, any change in the environmental forces can have direct impact upon organizational performance. Therefore, a systematic job design process tries to address the change that has occurred in the organizational environment. The process of job design and job redesign is prepared in such a way that it adapts the change in the environmental forces.

5. Labor Relation

A well prepared job design brings a harmonious relation between employees and management. On the other hand, poorly prepared job design creates employee-grievances, indisciplinary actions, greater employee turnover, greater absenteeism and conflict.

                       Also read: Methods Of Job Design

6. Quality Of Work Life

A quality of work life is understood as an efficient relationship between employees and organizational working environment. A properly prepared job design leads to improvements in quality of work life. With a good design of work schedules, people see a growing future in organization which ultimately leads to high motivation at work and a positive change in their thoughts and beliefs. Finally, these changes will have a direct impact upon the quality of work life.

7. Organizational Productivity

The job design specifies the contents and working procedures of how the task is performed. This leads to a positive change in job performance and job analysis. As a result of which, the organizational productivity will be enhanced through efficient work performance.

Concept And Meaning Of Job Design

It is believed that a well designed job motivates the employees for higher level of performance. Poorly designed jobs often result in boredom and employee frustration, high turnover, reduced motivation, low level of productivity and increase in operating cost. To avoid such negative consequences, the jobs have to be designed systematically and scientifically

Thus, job design is a systematic process of organizing work into the tasks required to perform a specific job. It defines the contents and the way the tasks are combined to complete a job. Job design integrates the tasks, function and relationship in order to achieve certain organizational objectives. It is a logical sequence of job analysis which provides job-related data and skill requirement of the incumbent. There are three important influences of job design, they are- work flow analysis, business strategy and organizational structure.
                       
Job design is a process through which job related data are revealed and the contents as well as methods of performing different tasks are specified. It plays a key role in bringing organizational productivity and employee motivation at work.

                      Also read: Methods Of Job Design

Therefore, job design is a process by which required and job-related information is gathered to determine different tasks to be included in the job. The manner in which the work activities are scheduled can influence the motivational level of employees. Hence it is an essential tool of human resource management which helps to enhance organizational productivity and challenges at work.
A brief description of steps in job design are as follows:

1. Specification of tasks: This is the first step of job design under which the individual task is specified. It means different tasks to be included in a job are categorized and specified.

2. Combination of task: After specifying the individual tasks to be included in a job, they are combined into a group and assigned to individual employee or group for performance.

3. Specification of method: Under this step, different methods of performance of each tasks are identified and determined.

Human Resource Planning Approaches

HR planning is a mechanism created to forecast the required human resource to perform a specific task. It also assesses the skill requirement of employees for each job. It is a complex task which estimates the future demand and supply position of HR in the organization. Hence, it gives a picture of infinite future in advance in terms of human resource requirement for the company. Here, the approaches to HR planning are as follows:

1. Quantitative Approach

It is also known as top down approach of HR planning under which top level make and efforts to prepare the draft of HR planning. It is a management-driven approach under which the HR planning is regarded as a number's game. It is based on the analysis of Human Resource Management Information System and HR Inventory Level. On the basis of information provided by HRIS, the demand of manpower is forecasted using different different quantitative tools and techniques such as trend analysis, mathematical models, economic models, market analysis, and so on. The focus of this approach is to forecast human resource surplus and shortages in an organization. In this approach major role is played by top management.

2. Qualitative Approach

This approach is also known as bottom up approach of HR planning under which the subordinates make an effort to prepare the draft of HR planning.Hence, it is also called sub-ordinate-driven approach of HR planning. It focuses om individual employee concerns. It is concerned with matching organizational needs with employee needs. Moreover, it focuses on employee's training, development and creativity. Similarly, compensation, incentives, employee safety, welfare, motivation and promotion etc. are the primary concerns of this approach. In this approach, major role is played by lower level employees.

3. Mixed Approach

This is called mixed approach because it combines both top-down and bottom-up approaches of HR planning. In fact, the effort is made to balance the antagonism between employees and the management. Hence, it tends to produce the best result that ever produced by either of the methods. Moreover, it is also regarded as an Management By Objective(MBO) approach of HR planning. There is a equal participation of each level of employees of the organization.

Relationship Between Strategic Planning And Human Resource Planning

Strategic planning is a step-by-step process of determining how to  pursue the organization's long-term goals with the resources expected to be available. It is a systematic approach of analyzing the opportunities and threats in the environment to enhance the efficiency and organizational productivity. It is the name given to the sense making activity which includes the function of goal setting and strategy formulation.

On the other hand, Human resource planning is the estimation of future demand for and supply of human resources for the accomplishment of stated organizational goals. HR planning consists all the activities of human resource management such as forecasting of HR, collecting information, policy making, recruitment, training and development, motivation and development of human resource in the organization. These activities  help prepare and HR plan where by right number and kind of people are being forecasted.

These terms establish a close relationship as one cannot be separated from another. They are correlated with each other because HR planning is an integral part of the overall corporate plan. Hence, the relationship between HR planning and strategic planning can be depicted under the following aspects:

1. Follower relationship of HR plan

This relationship depicts that an HR plan is an integral part of the overall corporate plan of the organization. HR plan is based upon the overall objectives and strategies of the company. It is prepared by following the guidelines by the overall corporate plan of the organization. Hence, it is tailored to meet the needs of the overall mission, vision and objective of the company. Moreover, this relationship explains that HR plan is derived from the overall corporate plan of the organization.

2. Partner relationship of HR plan

When the HR plan and strategic plan are formulated simultaneously, it is supposed that they have partner relationship. Under it, it is assumed that HR and HR manager are considered as a valuable resource in the organization. And it ensures that the employees are fully participated in strategy implementation. Moreover, implications of HR are considered in the formulation stage of strategic plan. The primary purpose of this relationship is to link HR activities with strategic plan in order to achieve organizational goals. It also ensures that Human Resource Management (HRM) activities are considered before formulating the corporate plan.

Sunday, January 13, 2013

Characteristics Of HR Strategy

Important characteristics of HR strategy are as follows:

1. Objective Oriented

HR strategy focuses on organizational objectives as well as human resource management function of the organization. It is prepared to realize certain well-defined objectives of the organization.

2. Future Oriented

HR strategy is formulated to supply sufficient number and kind of employees in future to achieve the organizational goals and objectives. Hence, it is future-oriented mechanism.

3. Competitive Advantage

HR strategy focuses on the competitive advantage in the market in the sense that it makes people more and more strategic to achieve their goals. Hence, it accepts people as strategic resources in the organization.

4. Environmental Adaptation

HR strategy helps in adapting any sort of change that has occurred in the environment. Its plans and procedures are designed and implemented as per the environmental change.

5. Efficiency Development

HR strategy develops the skill, knowledge and ability of employees and make them competitive. As a result, of which the efficient employees can be mobilized in the organization for a longer period of time.

Saturday, January 12, 2013

Concept And Objectives Of Human Resource Strategy

Concept And Meaning Of Human Resource Strategy (HR Strategy)

The word 'strategy can be understood as a long range direction and scope of an organization. It provides a framework to achieve organizational goals and objectives. It develops a grand plan about how the company is going to achieve the desired result and how to compete with other rival firms. It also focuses on how the resources are employed effectively an efficiently.

In the light of it, Human resource strategy can be defined as a process which helps management anticipate and manage the rapidly increasing changes. It is concerned with long range direction and scope of HR activities in the organization. It is broad action plan designed to accomplish the goals and objectives of human resource management function in the organization. Moreover, it is concerned with establishing relationship between long range HR direction and business strategy.It involves philosophy that people are managed in an organization and they are integrated with business strategy.

It can be assessed that HR strategy is primarily concerned with the philosophy of managing and mobilization human resources in the organization to achieve the long range business strategy an management goals. Human resource strategy is based on:
* Managing HR strengths in the organization
* Managing competitive capabilities of HR
* Translating people into personnel policies and practices
* Integrating people with business strategy

Objectives Of HR Strategy

According to Gary Dessler Objectives of HR Strategy are as follows:

1. To use various mechanism to build healthy two-way communication.

2. To screen out potential managers whose values are not people oriented

3. To provide highly competitive salaries and pay-for-performance incentives.

4. To guarantee to the greatest extent possible for fair treatment and employ security for all employees.

5. To institute various promotion-from-within activities aimed at giving employees every opportunity to fully utilize their skill and gifts at work.

Human Resource Planning Process Or Steps Of HR Planning

Human resource planning is a process through which the company anticipates future business and environmental forces. Human resources planning assess the manpower requirement for future period of time. It attempts to provide sufficient manpower required to perform organizational activities. HR planning is a continuous process which starts with identification of HR objectives, move through analysis of manpower resources and ends at appraisal of HR planning. Following are the major steps involved in human resource planning:

1. Assessing Human Resources

The assessment of HR begins with environmental analysis, under which the external (PEST) and internal (objectives, resources and structure) are analyzed to assess the currently available HR inventory level. After the analysis of external and internal forces of the organization, it will be easier for HR manager to find out the internal strengths as well as weakness of the organization in one hand and opportunities and threats on the other. Moreover, it includes an inventory of the workers and skills already available within the organization and a comprehensive job analysis.

2. Demand Forecasting

HR forecasting is the process of estimating demand for and supply of HR in an organization. Demand forecasting is a process of determining future needs for HR in terms of quantity and quality. It is done to meet the future personnel requirements of the organization to achieve the desired level of output. Future human resource need can be estimated with the help of the organization's current human resource situation and analysis of organizational plans an procedures. It will be necessary to perform a year-by-year analysis for every significant level and type.

3. Supply Forecasting

Supply is another side of human resource assessment. It is concerned with the estimation of supply of manpower given the analysis of current resource and future availability of human resource in the organization. It estimates the future sources of HR that are likely to be available from within an outside the organization. Internal source includes promotion, transfer, job enlargement and enrichment, whereas external source includes recruitment of fresh candidates who are capable of performing well in the organization.

4. Matching Demand And Supply

It is another step of human resource planning. It is concerned with bringing the forecast of future demand and supply of HR.The matching process refers to bring demand and supply in an equilibrium position so that shortages and over staffing position will be solved. In case of shortages an organization has to hire more required number of employees. Conversely, in the case of over staffing it has to reduce the level of existing employment. Hence, it is concluded that this matching process gives knowledge about requirements and sources of HR.

5. Action Plan

It is the last phase of human resource planning which is concerned with surplus and shortages of human resource. Under it, the HR plan is executed through the designation of different HR activities. The major activities which are required to execute the HR plan are recruitment, selection, placement, training and development, socialization etc. Finally, this step is followed by control and evaluation of performance of HR to check whether the HR planning matches the HR objectives and policies. This action plan should be updated according to change in time and conditions.

Significance Or Importance Of Human Resource Planning

Human resource planning aims at fulfilling the objectives of manpower requirement. It helps to mobilize the recruited resources for the productive activities. The human resource planning is and important process aiming to link business strategy and its operation. The importance of human resource planning are as follows:

1. Future Manpower Needs

Human resource planning ensures that people are available to provide the continued smooth operation of an organization. It means, human resource planning is regarded as a tool to assure the future availability of manpower to carry on the organizational activities. It determines the future needs of manpower in terms of number and kind.

2. Coping With Change

Human resource planning is important to cope with the change associated with the external environmental factors. It helps assess the current human resources through HR inventory and adapts it to changing technological, political, socio-cultural, and economic forces.

3. Recruitment Of Talented Personnel

Another purpose of HR planning is to recruit and select the most capable personnel to fill job vacancies.It determines human resource needs, assesses the available HR inventory level and finally recruit the personnel needed to perform the job.

4. Development Of Human Resources

Human resource planning identifies the skill requirements for various levels of jobs. Then it organizes various training and development campaigns to impart the required skill and ability in employees to perform the task efficiently and effectively.

5. Proper Utilization Of Human Resources

Human resource planning measures that the organization acquires and utilizes the manpower effectively to achieve objectives. Human resource planning helps in assessing and recruiting skilled human resource. It focuses on the optimum utilization of human resource to minimize the overall cost of production.

6. Uncertainty Reduction

This is associated with reducing the impact of uncertainty which are brought by unsudden changes in processes and procedures of human resource management in the organization.

Characteristics Of Human Resource Planning

The main Characteristics of  human resource planning are as follows:

1. Future Oriented

Human resource planning is prepared to assess the future requirement of manpower in the organization. It helps identify the size and composition of resources for future purpose.

2. Continuous Process

Human resource planning is a continuous process. The human resource planning prepared today may not be applicable for future due to ever changing external forces of the environment. Hence, to address such changing factors, the human resource planning needs to be revised and updated continuously.
                          
3. Optimum Utilization Of Human Resources
:
Human resource planning focuses on optimum utilization of resources in the organization. It checks how the employees are utilized in a productive manner. It also identifies employees' existing capabilities and future potentialities to perform the work.

4. Right Kinds And Numbers

Human resource planning determines the right number and kind of people at the right time and right place who are capable of performing the required jobs. It also assesses the future requirement of manpower for organizational objective.

5. Determination Of Demand And Supply

Human resource planning is a process of determining demand for and supply of human resources in the organization.  Then a match between demand and supply estimates the optimum level of manpower.

6. Environmental Influence

Human resource planning is influenced by environmental changes, hence, it is to be updated as per the change occupied in the external environment.

7. Related To Corporate Plan

Human resource planning is an integral part of overall corporate plan of the organization. It can be formulated at strategic, tactical and operational levels.

8. A Part Of Human Resource Management System

As a part of total human resource management system, human resource planning is regarded as a component or element of HRM which is concerned with acquisition ans assessment of manpower. It serves as a foundation for the management of human resource in an effective and efficient manner.