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Answer the following question in a two page paper: ( I have provided the power points from chapter 4)

In you and your supervisor disagree about the relative importance and weights of your job duties, how would you reconcile your conflicting opinions?

For example, if you are a customer representative, your supervisor may emphasize the technical aspect of the job, while you think the interpersonal aspect of listening to customers and understanding their problems is more important. What would you do?

Draw on your own work experience as well as text materials (Chapter 4) to substantiate your answer.

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COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-1 Chapter 4 – Strategic Job Analysis and Competency Modeling COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-2 Learning Objectives After studying this chapter, you should be able to: ▪ ▪ ▪ ▪ ▪ ▪ Explain why job analysis can be strategic. Describe different types of job analyses, and what they are used for. Define “job description” and “person specification” and describe how they are used. Describe the advantages and disadvantages of different job analysis methods. Describe how to plan a job analysis. Describe how to conduct a job analysis. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-3 Job Analysis Definition: a systematic process of identifying and describing the important aspects of a job and the characteristics workers need to perform the job well Job analyses are used for multiple purposes, including: ▪ Determining job entry requirements ▪ Developing a company’s strategic recruiting plan ▪ Selecting individuals for employment ▪ Developing employee training plans ▪ Designing compensation systems ▪ Developing performance evaluation measures Job analyses also help group jobs into job families or groupings of jobs that either call for similar worker characteristics or contain parallel work tasks COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-4 Job Families COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-5 Job Analysis for Staffing A job analysis that produces a valid selection system identifies worker characteristics that: ▪ Distinguish superior from average and unacceptable workers; ▪ Are not easily learned on the job; and ▪ Exist to at least a moderate extent in the applicant pool. Future-oriented job analysis: job analysis technique for analyzing new jobs or analyzing how jobs will look in the future COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-6 Job-Worker Match COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-7 Legal Requirements To meet legal requirements, a job analysis must: ▪ Be valid and identify the worker knowledge, skills, abilities, and other characteristics necessary to perform the job and differentiate superior from barely acceptable workers ▪ Be in writing and relevant to the particular job in question ▪ Be derived from multiple sources COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-8 Practical Reasons to do a Job Analysis COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-9 Job Description A written description of the duties and responsibilities associated with the job itself. Job descriptions usually include: ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ The size and type of organization The department and job title The salary range Position grade or level To whom the employee reports and for whom the employee is responsible Brief summary of the main duties and responsibilities of the job Brief summary of the occasional duties and responsibilities of the job Any special equipment used on the job Any special working conditions (e.g. shift or weekend work, foreign travel, etc.) ▪ Purpose and frequency of contact with others ▪ The statement, “Other duties as assigned” to accommodate job changes and special projects COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-10 Person Specification ▪Person specification: summarizes the characteristics of someone able to perform the job well ▪Essential criteria: job candidate characteristics that are critical to adequate performance of a new hire ▪Desirable criteria: job candidate criteria that may enhance the new hire’s job success, but that are not essential to adequate job performance COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-11 Outcomes of Job Analysis COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-12 Job Analysis Methods Must be: ▪ Reliable, or replicable ◦ A reliable job analysis procedure will produce the same results when it 1) is applied to the same job by a different job specialist; 2) when a different group of job experts is used; and 3) when it is done at a different time. ▪ Valid, or accurately measure what it was intended to measure ◦ A valid job analysis accurately captures the target job. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-13 Job Analysis Techniques ▪Critical incidents technique: identifies behaviors extremely effective or extremely ineffective behaviors by documenting critical incidents that have occurred on the job ▪Job elements method: uses expert brainstorming sessions to identify the characteristics of successful workers ▪Structured interview technique: subject matter experts provide information about the job verbally in structured interviews ▪Task inventory approach: job experts generate a list of 50-200 tasks that are grouped in categories reflecting major work functions that are then evaluated on dimensions relevant for selection ▪Structured Questionnaires: involves using a list of preplanned questions designed to analyze a job (e.g., the Position Analysis Questionnaire or PAQ) COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-14 Planning Job Analyses Job analyses should be performed in such a way as to meet the professional and legal guidelines that have been published in the Uniform Guidelines on Employee Selection Procedures COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-15 Planning Job Analyses ▪Determine time and resources necessary and available ▪Collect background information about the company, its culture and business strategy, the job, and the job’s contribution to strategy execution and competitive advantage ▪O*NET - Occupational Information Network (http://online.onetcenter.org/) ▪Identify job experts ▪Identify appropriate job analysis technique(s) to use COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-16 Job Analysis Steps COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-17 Task Statements COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-18 Job Duties COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-19 Weighting Job Duties COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-20 Job Requirements Matrix COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-21 Competency Modeling ▪Definition: a job analysis method that identifies the necessary worker competencies for high performance ▪Competencies: more broadly defined components of a successful worker’s repertoire of behavior needed to do a job well ▪Because competencies are linked to the organization’s business goals, strategy, and values, a person specification resulting from a job description can enhance hiring quality and strategy execution ▪A competency-based job description: ▪ Enhances a manager’s flexibility in assigning work ▪ Lengthens the life of a job description ▪ Can allow firms to group jobs requiring similar competencies under a single job description COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-22 Competencies Related to Specific Job Environments COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-23 Job Rewards Analysis Job rewards analysis: identifies the intrinsic and extrinsic rewards of a job ▪ Analyzes the intrinsic rewards that are non-monetary and derived from the work itself and the firm’s culture ◦ Including the satisfaction of meeting personal goals, great coworkers, continuous learning, and doing meaningful work. ▪ Analyzes the extrinsic rewards that have monetary value ◦ Including base pay, bonuses, and benefits. The combination of intrinsic and extrinsic rewards are a job’s total rewards COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-24 Job Rewards Analysis, cont. Employee value proposition (EVP): the intrinsic and extrinsic rewards an employee receives by working for a particular employer in return for their job performance Communicating your EVP: ▪ First determine exactly what attracts job candidates, and why employees enjoy their work. ▪ Then craft a message to clearly state what makes your company the obvious choice over the competition. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-25 3 Criteria for Employee Value Propositions 1. Magnitude refers to a reward package that is neither too small nor too large in economic terms. • Spending too much on rewards can negatively impact the firm’s financial stability, and hurt investor relations. 2. Mix refers to the composition of the reward package matching the needs and preferences of applicants or employees. • Offering stock options that vest in five years to a young, mobile workforce, or free daycare to an older workforce is not consistent with workers’ needs and preferences. 3. Distinctiveness refers to the uniqueness of the total reward package. • Rewards with no special appeal and that do not set the organization apart as distinctive do not present a compelling value proposition. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-26 Job Reward Dimensions Amount refers to how much of it is received. ▪ how much pay, what level of task variety Differential is how consistent the reward is across different employees. ▪ all employees receive the same number of vacation days, but merit bonuses range from 2% to 15% of base pay Stability is how reliable the reward is. ◦ Is the reward the same all of the time, or does it change (e.g., does it vary based on organizational performance or business requirements?) COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-27 Job Rewards Matrix COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-28 Job Rewards Matrix, cont. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-29 Discussion Questions Why do you think some organizations choose to not perform job analyses given their benefits? What could be done to increase their willingness to analyze jobs? How can job analysis make staffing more strategic? How do you personally evaluate different job opportunities and decide which to pursue? COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-30 Discussion Questions If supervisors and job incumbents disagreed about the relative importance and weights of various job duties, how would you reconcile their conflicting opinions? For example, if a supervisor emphasized the technical aspects of a customer service representative’s job and the representatives emphasized the interpersonal aspects of listening to customers and understanding their problems, what would you do? Some jobs change so rapidly that companies do not feel doing a job analysis is worthwhile because by the time one is done, it’s already outdated. What advice would you give such a company to help them take advantage of the benefits a job analysis has to offer without wasting unnecessary time and resources doing a traditional job analysis? COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-31 Develop Your Skills Exercise ▪Working in a group of 3-4 people, do a job rewards analysis on the job one of your group members holds (or has held). Use the questionnaire in this chapter’s Develop Your Skills feature as part of your analysis. ▪Summarize your analysis in a job rewards matrix. ▪Then apply the results and describe the type of potential job applicant to which each reward might appeal. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-32 Opening Vignette Exercise The opening vignette describes MITRE’s effort to develop a competency model for its sytems engineers. As explained in the vignette, systems engineering is a broad discipline requiring a variety of knowledge, skills, abilities, and other characteristics. Performing a job analysis or developing a competency model for this type of job requires using different methods than would doing the same for a more static, lower-skilled job such as a cashier or mail sorter. Your assignment for this exercise is to describe how you would conduct a job analysis or create a competency model differently for these two types of jobs. How would the process differ? Would you use different sources of information? COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-33 COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-34 Chern’s Case Study a) Using O*Net and other sources of data, create a job requirements matrix. b) For each competency or KSAO, decide if it should be used to hire or plan to develop. c) Estimate how important each characteristic is relative to the others as well as the relative time spent on each job duty. d) Create a job rewards matrix. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-35 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-36 COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-1 Chapter 5 – Forecasting and Planning COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-2 Learning Objectives ▪ ▪ ▪ ▪ ▪ ▪ After studying this chapter, you should be able to: Describe the workforce planning process. Discuss how an organization can predict its future business activity. Describe how an organization can forecast its demand for workers. Explain how to forecast the likely supply of available workers from inside and outside the firm. Discuss how to develop action plans to address gaps between labor supply and labor demand. Describe the staffing planning process. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-3 Workforce Planning ▪The availability of the talent needed to execute a desired business strategy will be an influence whether or not that strategy is ultimately successful. ▪Workforce planning: the process of predicting an organization’s future employment needs and the availability of current employees and external hires to meet those employment needs and execute the organization’s business strategy. ▪Workforce planning is the foundation of strategic staffing because it identifies and addresses future challenges to a firm’s ability to get the right talent in place at the right time to execute its business strategy. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-4 Workforce Planning Process 1. Identify the business strategy. 2. Articulate the firm’s talent philosophy and strategic staffing decisions. 3. Conduct a workforce analysis. 4. 5. Develop and implement action plans. Develop action plans to address any gaps between labor demand and labor supply forecasts. • The action plans should be consistent with the firm’s talent philosophy, and can include recruiting, retention, compensation, succession management, and training and development. • Action plans can be short-term or long-term, depending on the firm’s needs and the predictability of the environment. Monitor, evaluate, and revise the forecasts and action plans. As the environment changes, forecasts and action plans may need to change as well. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-5 Workforce Planning Process, cont. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-6 Forecasting ▪Given the uncertainty of forecasts, construct estimates as a range, providing low, probable, and high estimates. ▪Recalculate estimates as changes happen in the organization’s internal and external environments and as the firm’s assumptions and expectations change. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-7 Forecasting Business Activity An organization’s product demand directly affects its need for labor Locate reliable, high-quality information sources within and outside of the organization to forecast business activity Types of business activity forecasts: ▪ Seasonal ▪ Interest rate ▪ Currency exchange ▪ Competitors ▪ Industry and economic ▪ Others COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-8 Forecasting Labor Demand It is a good idea to identify minimal as well as optimal staffing levels when analyzing labor demand. An organization’s demand for labor depends on its forecasted business activity and its business needs, which depend on its business strategy. Business needs can include things like: ▪ Achieving the staffing levels necessary for generating a given amount of revenue within a particular period of time (e.g., salesperson staffing levels necessary to generate $5 million of revenue within 6 months) ▪ Increasing staffing levels to execute a growth strategy ▪ Decreasing staffing levels during a restructuring ▪ Obtaining the new talents needed to create new products or provide different services COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-9 Ratio Analysis Assumes that there is a relatively fixed ratio between the number of employees needed and certain business metrics. ▪ Using historical patterns within the firm helps to establish a reasonable range for these ratios. ▪ This process can be used for either justifying new positions or demonstrating the need for layoffs. Need consistent historical trends to calculate ratios. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-10 Possible Ratios ▪Production to employees ▪Revenue per employee ▪Managers to employees ▪Inventory levels to employees ▪Number of customers or customer orders to employees ▪Labor costs to all production costs ▪The percent utilization of production capacity to employees COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-11 Scatter Plots Show graphically how two different variables (e.g., revenue and staffing levels) are related. If an area has a population of 44,000 then 8 ambulance drivers would be predicted to be needed COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-12 Trend Analysis ▪Uses past employment patterns to predict future needs. ▪ For example, if a company has been growing five percent annually for the last eight years, it might assume that it will experience the same five percent annual growth for the next few years. ▪Any employment trends that are likely to continue can be useful in forecasting labor demand. ▪Because so many factors can also affect staffing needs, including competition, the economic environment, and changes in how the company gets its work done (e.g., automation might improve productivity), trend analysis is rarely used by itself in making labor demand forecasts. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-13 Trend Analysis COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-14 Judgmental Forecasting ▪Relies on the experience and insights of people in the organization to predict future needs. ▪Top-down: organizational leaders rely on their experience and knowledge of their industry and company to make predictions about what future staffing levels will need to be. Top managers’ estimates then become staffing goals for the lower levels in the organization. ▪ In some cases, particularly when companies are facing financial difficulties or restructuring, budgets may determine these headcount numbers. ▪Bottom-up: uses the input of lower-level managers in estimating staffing requirements. Based on supervisors’ understanding of the business strategy, each level provides an estimate of their staffing needs to execute the strategy. The estimates are consolidated and modified as they move up the organization’s hierarchy until top management formalizes the company’s estimate of its future staffing needs into staffing goals. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-15 The Role of Judgment ▪Because historical trends and relationships can change, it is usually best to supplement the more mechanical ratio, scatter plot, and trend forecasting methods with managerial judgment. ▪The more mechanical methods can be used as a starting point and managerial input then used to modify the estimates. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-16 Return on Investment Analysis ▪Estimate the return on investment from adding a new position based on the costs and outcomes resulting from that new hire. ▪First assign dollar values to the benefits you expect from a new hire for the period of time most appropriate for the position and your organization. ▪ How much revenue during the period will be directly generated as a result of this position? ▪ How much money per period will this position save your organization in terms of increased efficiency, and how much value will it add in greater productivity, quality, or customer service? ▪Then compare this amount with the cost of adding the new hire. ▪ Compute the cost of hiring, including advertising the position, interviewing, screening, travel, relocation, and training expenses. ▪ Add this to the compensation for the new position during the time period to get your initial investment. ▪Compare this amount with the value your company will gain to determine the return on the investment of adding the new position. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-17 Forecasting Labor Supply ▪Combining current staffing levels with anticipated staffing gains and losses results in an estimate of the supply of labor for the target position at a certain point in the future. ▪ Anticipated gains and losses can be based on historical data combined with managerial estimates of future changes. ▪The external labor market consists of people who do not currently work for a firm. ▪A firm’s internal labor market consists of the firm’s current employees. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-18 Forecasting the Internal Labor Market Estimate the competency levels and number of employees likely to be working for the company at the end of the forecasting period. To forecast internal talent resources for a position, subtract anticipated losses from the number of employees in the target position at the beginning of the forecasting period. ▪ Losses may be due to promotions, demotions, transfers, retirements, resignations, etc. When workers are harder to find, more employees than usual may leave the organization to pursue other opportunities than leave during looser labor markets when jobs are less plentiful. ▪ Anticipated gains from transfers, promotions, and demotions are then added to the internal labor supply forecast. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-19 Transition Analysis ▪A quantitative technique used to analyze internal labor markets and forecast internal labor supply. ▪A simple but often effective technique for analyzing an organization’s internal labor market, which can be useful in answering recruits’ questions about promotion paths and the likelihood of promotions as well as in workforce planning. ▪Can also forecast the number of people who currently work for the organization likely to still be employed in various positions at some point in the future. ▪The analysis is best performed for a limited number of jobs at a time to keep it easily interpretable. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-20 Transition Analysis Process COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-21 5-21 Transition Analysis COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-22 Using the Transition Probability Matrix COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-23 Internal Labor Market Forecasting Methods ▪Judgment ▪Talent inventories: summarize each employee’s skills, competencies, and qualifications ▪Replacement charts: visually shows each of the possible successors for a job and summarizes their present performance, promotion readiness, and development needs ▪Employee surveys to identify the potential for increased turnover in the future ▪Labor supply chain management: The basic foundation of any supply chain model is to have the right product, in the right volume, in the right place, at the right time, with the right quality ◦ Businesses use multiple suppliers so that they can quickly change and scale to meet changing business needs. ◦ Supply chain management principles of inventory management, planning, and optimization can be easily applied to people. ◦ Software and services allow companies to match employees' expertise and knowledge to business needs and deploy the right people just as assets would be deployed in a supply chain. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-24 Replacement Chart COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-25 Forecasting the External Labor Market Organizations monitor the external labor market in two ways. ◦ The first is through their own observations and experiences. For example, are the quality and quantity of applicants responding to job announcements improving or getting worse? ◦ The second way is by monitoring labor market statistics generated by others. ◦ U.S. Bureau of Labor Statistics (BLS) and others COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-26 Resolving Labor Supply/Demand Gaps ▪Action plans proactively address an anticipated surplus or shortage of employees. ▪Whether a shortage or surplus of applicants is the result of temporary factors or whether it reflects a trend that is likely to continue, is an important factor to understand, because different staffing strategies are appropriate for each. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-27 Temporary Talent Shortage ▪Because higher salaries cost the organization more money throughout the new hire’s tenure with the company, hiring inducements that last only as long as the talent shortage does are often better. ▪Companies often turn to more expensive recruiting methods such as search firms, or lower their hiring standards so that more recruits are considered qualified. ▪ Neither of these strategies is guaranteed to work ▪ More expensive recruiting methods may quickly drain a recruiting budget without resulting in an acceptable hire ▪ Lowering hiring standards decreases the quality of the company’s workforce, which may not be acceptable ▪Options include offering hiring incentives such as sign-on bonuses and retention bonuses such as stock options or cash to be paid after the employee has successfully worked with the company for a certain period of time. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-28 Persistent Talent Shortage If it is likely that a worker shortage will last a number of years, an organization must: ◦ Reduce its demand for the talents that will be in short supply ◦ By increasing their use of automation and technology, and by redesigning jobs so that fewer people with the desired talent are needed. ◦ And/or increase the supply of the qualifications it needs ◦ This is not a fast or practical solution for most organizations. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-29 Temporary Employee Surplus ▪If slowdowns are cyclical or happen frequently, using temporary or contingent workers who are the first to be let go when business slows can help to provide a buffer around key permanent workers. ▪Temporary layoffs may need to last more than six months to be cost-effective due to severance costs, greater unemployment insurance premiums, temporary productivity declines, and the rehiring and retraining process. ▪ Losing the investments the organization has already made in hiring and training the laid off workers can also be costly. ▪Alternatives to layoffs include across-the-board salary cuts or a reduction in work hours, or reallocating workers to expand other areas of the business. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-30 Permanent Employee Surplus ▪Early retirement incentives, layoffs, and not filling vacated positions can all reduce an employer’s headcount, but with a cost. ▪ Early retirement programs can result in the most skilled and productive employees leaving the organization. ▪ Layoffs can damage workforce morale and hurt the firm’s reputation as an employer. ▪ Not filling open positions can leave key positions in the organization vacant or understaffed. ▪Action plans to address a persistent employee surplus may also involve reassignments, hiring freezes, and steering employees away from careers in that position to reduce the need for future layoffs. ▪Retraining employees to fill other jobs in the firm can help bring labor supply and demand into balance. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-31 Staffing Planning The three questions that need to be answered are: 1. How many people should we recruit? ▪ ▪ Staffing yields: the proportion of applicants moving from one stage of the hiring process to the next Hiring yields: the percent of applicants ultimately hired (also called selection ratios) 2. What resources do we need? ▪ ◦ Workload-driven forecasting: based on historical data on the average number of hires typically made per recruiter Staffing efficiency driven forecasting: the total cost associated with the compensation of the newly hired employee 3. How much time will it take to hire? ◦ ▪ Continuous recruiting can shorten the hiring timeline Batch recruiting: recruiting a new applicant pool each time COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-32 Staffing Yields COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-33 Hiring Timeline COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-34 External Cost Per Hire External cost per hire: six basic elements account for 90% of the costs to hire to calculate the cost of external hiring: 1.Advertising expenses 2.Agency and search firm fees 3.Employee referral bonuses 4.Recruiter and applicant travel costs 5.Relocation costs 6.Company recruiter costs (prorated salary and benefits if the recruiter performs duties other than staffing) ▪ Saratoga Institute adds an additional 10% to cover miscellaneous expenses including testing, reference checking, hiring manager time, and administrative support. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-35 Internal Cost Per Hire Internal cost per hire includes four elements: 1.Internal advertising costs 2.Travel and interview costs 3.Relocation costs 4.Internal recruiter costs COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-36 Discussion Questions ▪If forecasting is rarely exact, why should a firm bother doing it? ▪What labor force trends might influence a firm’s staffing planning, in your opinion? ▪How can contingent employees help an organization prepare for anticipated surpluses or shortages of workers? COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-37 Discussion Questions If your boss asked you how investing more resources in forecasting and planning could help the organization compete better, what would you say? What would happen if a firm did not engage in staffing planning? COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-38 Opening Vignette Exercise The opening vignette describes the workforce planning process at Black Hills Corporation. One of the biggest planning challenges the company identified was retaining its experienced employees, particularly for its highly specialized skill needs that are difficult to find and for technical positions in which it takes longer for new hires to become productive. Because experienced employees are critical to Black Hills’ ability to operate efficiently, it must retain as many workers as it can, and also ensure that their knowledge is transferred completely to new employees. The company’s growth strategy also means that its need for employees is increasing. Working in a group of three to five students, develop action plans for Black Hills to both retain its existing employees and ensure the complete transfer of knowledge to its new hires. Be prepared to share your ideas with the class. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-39 COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-40 Chern’s Case Assignment a) Conduct a transition analysis. b) Summarize the internal labor market and highlight any trends or forecasted gaps. c) Based on the transition probability matrix, calculate how many new full-time sales associates should be hired externally. d) Calculate the number of applicants needed to acquire the number of new hires you forecasted. e) Use multiple sources of data to describe the current and future labor market for retail salespeople. If you forecast a gap, determine whether the gap is temporary or permanent. Make some recommendations to address the gap. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-41 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-42 COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-1 Chapter 5 – Forecasting and Planning COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-2 Learning Objectives ▪ ▪ ▪ ▪ ▪ ▪ After studying this chapter, you should be able to: Describe the workforce planning process. Discuss how an organization can predict its future business activity. Describe how an organization can forecast its demand for workers. Explain how to forecast the likely supply of available workers from inside and outside the firm. Discuss how to develop action plans to address gaps between labor supply and labor demand. Describe the staffing planning process. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-3 Workforce Planning ▪The availability of the talent needed to execute a desired business strategy will be an influence whether or not that strategy is ultimately successful. ▪Workforce planning: the process of predicting an organization’s future employment needs and the availability of current employees and external hires to meet those employment needs and execute the organization’s business strategy. ▪Workforce planning is the foundation of strategic staffing because it identifies and addresses future challenges to a firm’s ability to get the right talent in place at the right time to execute its business strategy. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-4 Workforce Planning Process 1. Identify the business strategy. 2. Articulate the firm’s talent philosophy and strategic staffing decisions. 3. Conduct a workforce analysis. 4. 5. Develop and implement action plans. Develop action plans to address any gaps between labor demand and labor supply forecasts. • The action plans should be consistent with the firm’s talent philosophy, and can include recruiting, retention, compensation, succession management, and training and development. • Action plans can be short-term or long-term, depending on the firm’s needs and the predictability of the environment. Monitor, evaluate, and revise the forecasts and action plans. As the environment changes, forecasts and action plans may need to change as well. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-5 Workforce Planning Process, cont. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-6 Forecasting ▪Given the uncertainty of forecasts, construct estimates as a range, providing low, probable, and high estimates. ▪Recalculate estimates as changes happen in the organization’s internal and external environments and as the firm’s assumptions and expectations change. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-7 Forecasting Business Activity An organization’s product demand directly affects its need for labor Locate reliable, high-quality information sources within and outside of the organization to forecast business activity Types of business activity forecasts: ▪ Seasonal ▪ Interest rate ▪ Currency exchange ▪ Competitors ▪ Industry and economic ▪ Others COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-8 Forecasting Labor Demand It is a good idea to identify minimal as well as optimal staffing levels when analyzing labor demand. An organization’s demand for labor depends on its forecasted business activity and its business needs, which depend on its business strategy. Business needs can include things like: ▪ Achieving the staffing levels necessary for generating a given amount of revenue within a particular period of time (e.g., salesperson staffing levels necessary to generate $5 million of revenue within 6 months) ▪ Increasing staffing levels to execute a growth strategy ▪ Decreasing staffing levels during a restructuring ▪ Obtaining the new talents needed to create new products or provide different services COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-9 Ratio Analysis Assumes that there is a relatively fixed ratio between the number of employees needed and certain business metrics. ▪ Using historical patterns within the firm helps to establish a reasonable range for these ratios. ▪ This process can be used for either justifying new positions or demonstrating the need for layoffs. Need consistent historical trends to calculate ratios. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-10 Possible Ratios ▪Production to employees ▪Revenue per employee ▪Managers to employees ▪Inventory levels to employees ▪Number of customers or customer orders to employees ▪Labor costs to all production costs ▪The percent utilization of production capacity to employees COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-11 Scatter Plots Show graphically how two different variables (e.g., revenue and staffing levels) are related. If an area has a population of 44,000 then 8 ambulance drivers would be predicted to be needed COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-12 Trend Analysis ▪Uses past employment patterns to predict future needs. ▪ For example, if a company has been growing five percent annually for the last eight years, it might assume that it will experience the same five percent annual growth for the next few years. ▪Any employment trends that are likely to continue can be useful in forecasting labor demand. ▪Because so many factors can also affect staffing needs, including competition, the economic environment, and changes in how the company gets its work done (e.g., automation might improve productivity), trend analysis is rarely used by itself in making labor demand forecasts. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-13 Trend Analysis COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-14 Judgmental Forecasting ▪Relies on the experience and insights of people in the organization to predict future needs. ▪Top-down: organizational leaders rely on their experience and knowledge of their industry and company to make predictions about what future staffing levels will need to be. Top managers’ estimates then become staffing goals for the lower levels in the organization. ▪ In some cases, particularly when companies are facing financial difficulties or restructuring, budgets may determine these headcount numbers. ▪Bottom-up: uses the input of lower-level managers in estimating staffing requirements. Based on supervisors’ understanding of the business strategy, each level provides an estimate of their staffing needs to execute the strategy. The estimates are consolidated and modified as they move up the organization’s hierarchy until top management formalizes the company’s estimate of its future staffing needs into staffing goals. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-15 The Role of Judgment ▪Because historical trends and relationships can change, it is usually best to supplement the more mechanical ratio, scatter plot, and trend forecasting methods with managerial judgment. ▪The more mechanical methods can be used as a starting point and managerial input then used to modify the estimates. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-16 Return on Investment Analysis ▪Estimate the return on investment from adding a new position based on the costs and outcomes resulting from that new hire. ▪First assign dollar values to the benefits you expect from a new hire for the period of time most appropriate for the position and your organization. ▪ How much revenue during the period will be directly generated as a result of this position? ▪ How much money per period will this position save your organization in terms of increased efficiency, and how much value will it add in greater productivity, quality, or customer service? ▪Then compare this amount with the cost of adding the new hire. ▪ Compute the cost of hiring, including advertising the position, interviewing, screening, travel, relocation, and training expenses. ▪ Add this to the compensation for the new position during the time period to get your initial investment. ▪Compare this amount with the value your company will gain to determine the return on the investment of adding the new position. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-17 Forecasting Labor Supply ▪Combining current staffing levels with anticipated staffing gains and losses results in an estimate of the supply of labor for the target position at a certain point in the future. ▪ Anticipated gains and losses can be based on historical data combined with managerial estimates of future changes. ▪The external labor market consists of people who do not currently work for a firm. ▪A firm’s internal labor market consists of the firm’s current employees. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-18 Forecasting the Internal Labor Market Estimate the competency levels and number of employees likely to be working for the company at the end of the forecasting period. To forecast internal talent resources for a position, subtract anticipated losses from the number of employees in the target position at the beginning of the forecasting period. ▪ Losses may be due to promotions, demotions, transfers, retirements, resignations, etc. When workers are harder to find, more employees than usual may leave the organization to pursue other opportunities than leave during looser labor markets when jobs are less plentiful. ▪ Anticipated gains from transfers, promotions, and demotions are then added to the internal labor supply forecast. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-19 Transition Analysis ▪A quantitative technique used to analyze internal labor markets and forecast internal labor supply. ▪A simple but often effective technique for analyzing an organization’s internal labor market, which can be useful in answering recruits’ questions about promotion paths and the likelihood of promotions as well as in workforce planning. ▪Can also forecast the number of people who currently work for the organization likely to still be employed in various positions at some point in the future. ▪The analysis is best performed for a limited number of jobs at a time to keep it easily interpretable. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-20 Transition Analysis Process COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-21 5-21 Transition Analysis COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-22 Using the Transition Probability Matrix COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-23 Internal Labor Market Forecasting Methods ▪Judgment ▪Talent inventories: summarize each employee’s skills, competencies, and qualifications ▪Replacement charts: visually shows each of the possible successors for a job and summarizes their present performance, promotion readiness, and development needs ▪Employee surveys to identify the potential for increased turnover in the future ▪Labor supply chain management: The basic foundation of any supply chain model is to have the right product, in the right volume, in the right place, at the right time, with the right quality ◦ Businesses use multiple suppliers so that they can quickly change and scale to meet changing business needs. ◦ Supply chain management principles of inventory management, planning, and optimization can be easily applied to people. ◦ Software and services allow companies to match employees' expertise and knowledge to business needs and deploy the right people just as assets would be deployed in a supply chain. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-24 Replacement Chart COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-25 Forecasting the External Labor Market Organizations monitor the external labor market in two ways. ◦ The first is through their own observations and experiences. For example, are the quality and quantity of applicants responding to job announcements improving or getting worse? ◦ The second way is by monitoring labor market statistics generated by others. ◦ U.S. Bureau of Labor Statistics (BLS) and others COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-26 Resolving Labor Supply/Demand Gaps ▪Action plans proactively address an anticipated surplus or shortage of employees. ▪Whether a shortage or surplus of applicants is the result of temporary factors or whether it reflects a trend that is likely to continue, is an important factor to understand, because different staffing strategies are appropriate for each. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-27 Temporary Talent Shortage ▪Because higher salaries cost the organization more money throughout the new hire’s tenure with the company, hiring inducements that last only as long as the talent shortage does are often better. ▪Companies often turn to more expensive recruiting methods such as search firms, or lower their hiring standards so that more recruits are considered qualified. ▪ Neither of these strategies is guaranteed to work ▪ More expensive recruiting methods may quickly drain a recruiting budget without resulting in an acceptable hire ▪ Lowering hiring standards decreases the quality of the company’s workforce, which may not be acceptable ▪Options include offering hiring incentives such as sign-on bonuses and retention bonuses such as stock options or cash to be paid after the employee has successfully worked with the company for a certain period of time. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-28 Persistent Talent Shortage If it is likely that a worker shortage will last a number of years, an organization must: ◦ Reduce its demand for the talents that will be in short supply ◦ By increasing their use of automation and technology, and by redesigning jobs so that fewer people with the desired talent are needed. ◦ And/or increase the supply of the qualifications it needs ◦ This is not a fast or practical solution for most organizations. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-29 Temporary Employee Surplus ▪If slowdowns are cyclical or happen frequently, using temporary or contingent workers who are the first to be let go when business slows can help to provide a buffer around key permanent workers. ▪Temporary layoffs may need to last more than six months to be cost-effective due to severance costs, greater unemployment insurance premiums, temporary productivity declines, and the rehiring and retraining process. ▪ Losing the investments the organization has already made in hiring and training the laid off workers can also be costly. ▪Alternatives to layoffs include across-the-board salary cuts or a reduction in work hours, or reallocating workers to expand other areas of the business. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-30 Permanent Employee Surplus ▪Early retirement incentives, layoffs, and not filling vacated positions can all reduce an employer’s headcount, but with a cost. ▪ Early retirement programs can result in the most skilled and productive employees leaving the organization. ▪ Layoffs can damage workforce morale and hurt the firm’s reputation as an employer. ▪ Not filling open positions can leave key positions in the organization vacant or understaffed. ▪Action plans to address a persistent employee surplus may also involve reassignments, hiring freezes, and steering employees away from careers in that position to reduce the need for future layoffs. ▪Retraining employees to fill other jobs in the firm can help bring labor supply and demand into balance. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-31 Staffing Planning The three questions that need to be answered are: 1. How many people should we recruit? ▪ ▪ Staffing yields: the proportion of applicants moving from one stage of the hiring process to the next Hiring yields: the percent of applicants ultimately hired (also called selection ratios) 2. What resources do we need? ▪ ◦ Workload-driven forecasting: based on historical data on the average number of hires typically made per recruiter Staffing efficiency driven forecasting: the total cost associated with the compensation of the newly hired employee 3. How much time will it take to hire? ◦ ▪ Continuous recruiting can shorten the hiring timeline Batch recruiting: recruiting a new applicant pool each time COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-32 Staffing Yields COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-33 Hiring Timeline COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-34 External Cost Per Hire External cost per hire: six basic elements account for 90% of the costs to hire to calculate the cost of external hiring: 1.Advertising expenses 2.Agency and search firm fees 3.Employee referral bonuses 4.Recruiter and applicant travel costs 5.Relocation costs 6.Company recruiter costs (prorated salary and benefits if the recruiter performs duties other than staffing) ▪ Saratoga Institute adds an additional 10% to cover miscellaneous expenses including testing, reference checking, hiring manager time, and administrative support. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-35 Internal Cost Per Hire Internal cost per hire includes four elements: 1.Internal advertising costs 2.Travel and interview costs 3.Relocation costs 4.Internal recruiter costs COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-36 Discussion Questions ▪If forecasting is rarely exact, why should a firm bother doing it? ▪What labor force trends might influence a firm’s staffing planning, in your opinion? ▪How can contingent employees help an organization prepare for anticipated surpluses or shortages of workers? COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-37 Discussion Questions If your boss asked you how investing more resources in forecasting and planning could help the organization compete better, what would you say? What would happen if a firm did not engage in staffing planning? COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-38 Opening Vignette Exercise The opening vignette describes the workforce planning process at Black Hills Corporation. One of the biggest planning challenges the company identified was retaining its experienced employees, particularly for its highly specialized skill needs that are difficult to find and for technical positions in which it takes longer for new hires to become productive. Because experienced employees are critical to Black Hills’ ability to operate efficiently, it must retain as many workers as it can, and also ensure that their knowledge is transferred completely to new employees. The company’s growth strategy also means that its need for employees is increasing. Working in a group of three to five students, develop action plans for Black Hills to both retain its existing employees and ensure the complete transfer of knowledge to its new hires. Be prepared to share your ideas with the class. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-39 COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-40 Chern’s Case Assignment a) Conduct a transition analysis. b) Summarize the internal labor market and highlight any trends or forecasted gaps. c) Based on the transition probability matrix, calculate how many new full-time sales associates should be hired externally. d) Calculate the number of applicants needed to acquire the number of new hires you forecasted. e) Use multiple sources of data to describe the current and future labor market for retail salespeople. If you forecast a gap, determine whether the gap is temporary or permanent. Make some recommendations to address the gap. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-41 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 5-42 COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-1 Chapter 4 – Strategic Job Analysis and Competency Modeling COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-2 Learning Objectives After studying this chapter, you should be able to: ▪ ▪ ▪ ▪ ▪ ▪ Explain why job analysis can be strategic. Describe different types of job analyses, and what they are used for. Define “job description” and “person specification” and describe how they are used. Describe the advantages and disadvantages of different job analysis methods. Describe how to plan a job analysis. Describe how to conduct a job analysis. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-3 Job Analysis Definition: a systematic process of identifying and describing the important aspects of a job and the characteristics workers need to perform the job well Job analyses are used for multiple purposes, including: ▪ Determining job entry requirements ▪ Developing a company’s strategic recruiting plan ▪ Selecting individuals for employment ▪ Developing employee training plans ▪ Designing compensation systems ▪ Developing performance evaluation measures Job analyses also help group jobs into job families or groupings of jobs that either call for similar worker characteristics or contain parallel work tasks COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-4 Job Families COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-5 Job Analysis for Staffing A job analysis that produces a valid selection system identifies worker characteristics that: ▪ Distinguish superior from average and unacceptable workers; ▪ Are not easily learned on the job; and ▪ Exist to at least a moderate extent in the applicant pool. Future-oriented job analysis: job analysis technique for analyzing new jobs or analyzing how jobs will look in the future COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-6 Job-Worker Match COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-7 Legal Requirements To meet legal requirements, a job analysis must: ▪ Be valid and identify the worker knowledge, skills, abilities, and other characteristics necessary to perform the job and differentiate superior from barely acceptable workers ▪ Be in writing and relevant to the particular job in question ▪ Be derived from multiple sources COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-8 Practical Reasons to do a Job Analysis COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-9 Job Description A written description of the duties and responsibilities associated with the job itself. Job descriptions usually include: ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ The size and type of organization The department and job title The salary range Position grade or level To whom the employee reports and for whom the employee is responsible Brief summary of the main duties and responsibilities of the job Brief summary of the occasional duties and responsibilities of the job Any special equipment used on the job Any special working conditions (e.g. shift or weekend work, foreign travel, etc.) ▪ Purpose and frequency of contact with others ▪ The statement, “Other duties as assigned” to accommodate job changes and special projects COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-10 Person Specification ▪Person specification: summarizes the characteristics of someone able to perform the job well ▪Essential criteria: job candidate characteristics that are critical to adequate performance of a new hire ▪Desirable criteria: job candidate criteria that may enhance the new hire’s job success, but that are not essential to adequate job performance COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-11 Outcomes of Job Analysis COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-12 Job Analysis Methods Must be: ▪ Reliable, or replicable ◦ A reliable job analysis procedure will produce the same results when it 1) is applied to the same job by a different job specialist; 2) when a different group of job experts is used; and 3) when it is done at a different time. ▪ Valid, or accurately measure what it was intended to measure ◦ A valid job analysis accurately captures the target job. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-13 Job Analysis Techniques ▪Critical incidents technique: identifies behaviors extremely effective or extremely ineffective behaviors by documenting critical incidents that have occurred on the job ▪Job elements method: uses expert brainstorming sessions to identify the characteristics of successful workers ▪Structured interview technique: subject matter experts provide information about the job verbally in structured interviews ▪Task inventory approach: job experts generate a list of 50-200 tasks that are grouped in categories reflecting major work functions that are then evaluated on dimensions relevant for selection ▪Structured Questionnaires: involves using a list of preplanned questions designed to analyze a job (e.g., the Position Analysis Questionnaire or PAQ) COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-14 Planning Job Analyses Job analyses should be performed in such a way as to meet the professional and legal guidelines that have been published in the Uniform Guidelines on Employee Selection Procedures COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-15 Planning Job Analyses ▪Determine time and resources necessary and available ▪Collect background information about the company, its culture and business strategy, the job, and the job’s contribution to strategy execution and competitive advantage ▪O*NET - Occupational Information Network (http://online.onetcenter.org/) ▪Identify job experts ▪Identify appropriate job analysis technique(s) to use COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-16 Job Analysis Steps COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-17 Task Statements COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-18 Job Duties COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-19 Weighting Job Duties COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-20 Job Requirements Matrix COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-21 Competency Modeling ▪Definition: a job analysis method that identifies the necessary worker competencies for high performance ▪Competencies: more broadly defined components of a successful worker’s repertoire of behavior needed to do a job well ▪Because competencies are linked to the organization’s business goals, strategy, and values, a person specification resulting from a job description can enhance hiring quality and strategy execution ▪A competency-based job description: ▪ Enhances a manager’s flexibility in assigning work ▪ Lengthens the life of a job description ▪ Can allow firms to group jobs requiring similar competencies under a single job description COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-22 Competencies Related to Specific Job Environments COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-23 Job Rewards Analysis Job rewards analysis: identifies the intrinsic and extrinsic rewards of a job ▪ Analyzes the intrinsic rewards that are non-monetary and derived from the work itself and the firm’s culture ◦ Including the satisfaction of meeting personal goals, great coworkers, continuous learning, and doing meaningful work. ▪ Analyzes the extrinsic rewards that have monetary value ◦ Including base pay, bonuses, and benefits. The combination of intrinsic and extrinsic rewards are a job’s total rewards COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-24 Job Rewards Analysis, cont. Employee value proposition (EVP): the intrinsic and extrinsic rewards an employee receives by working for a particular employer in return for their job performance Communicating your EVP: ▪ First determine exactly what attracts job candidates, and why employees enjoy their work. ▪ Then craft a message to clearly state what makes your company the obvious choice over the competition. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-25 3 Criteria for Employee Value Propositions 1. Magnitude refers to a reward package that is neither too small nor too large in economic terms. • Spending too much on rewards can negatively impact the firm’s financial stability, and hurt investor relations. 2. Mix refers to the composition of the reward package matching the needs and preferences of applicants or employees. • Offering stock options that vest in five years to a young, mobile workforce, or free daycare to an older workforce is not consistent with workers’ needs and preferences. 3. Distinctiveness refers to the uniqueness of the total reward package. • Rewards with no special appeal and that do not set the organization apart as distinctive do not present a compelling value proposition. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-26 Job Reward Dimensions Amount refers to how much of it is received. ▪ how much pay, what level of task variety Differential is how consistent the reward is across different employees. ▪ all employees receive the same number of vacation days, but merit bonuses range from 2% to 15% of base pay Stability is how reliable the reward is. ◦ Is the reward the same all of the time, or does it change (e.g., does it vary based on organizational performance or business requirements?) COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-27 Job Rewards Matrix COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-28 Job Rewards Matrix, cont. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-29 Discussion Questions Why do you think some organizations choose to not perform job analyses given their benefits? What could be done to increase their willingness to analyze jobs? How can job analysis make staffing more strategic? How do you personally evaluate different job opportunities and decide which to pursue? COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-30 Discussion Questions If supervisors and job incumbents disagreed about the relative importance and weights of various job duties, how would you reconcile their conflicting opinions? For example, if a supervisor emphasized the technical aspects of a customer service representative’s job and the representatives emphasized the interpersonal aspects of listening to customers and understanding their problems, what would you do? Some jobs change so rapidly that companies do not feel doing a job analysis is worthwhile because by the time one is done, it’s already outdated. What advice would you give such a company to help them take advantage of the benefits a job analysis has to offer without wasting unnecessary time and resources doing a traditional job analysis? COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-31 Develop Your Skills Exercise ▪Working in a group of 3-4 people, do a job rewards analysis on the job one of your group members holds (or has held). Use the questionnaire in this chapter’s Develop Your Skills feature as part of your analysis. ▪Summarize your analysis in a job rewards matrix. ▪Then apply the results and describe the type of potential job applicant to which each reward might appeal. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-32 Opening Vignette Exercise The opening vignette describes MITRE’s effort to develop a competency model for its sytems engineers. As explained in the vignette, systems engineering is a broad discipline requiring a variety of knowledge, skills, abilities, and other characteristics. Performing a job analysis or developing a competency model for this type of job requires using different methods than would doing the same for a more static, lower-skilled job such as a cashier or mail sorter. Your assignment for this exercise is to describe how you would conduct a job analysis or create a competency model differently for these two types of jobs. How would the process differ? Would you use different sources of information? COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-33 COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-34 Chern’s Case Study a) Using O*Net and other sources of data, create a job requirements matrix. b) For each competency or KSAO, decide if it should be used to hire or plan to develop. c) Estimate how important each characteristic is relative to the others as well as the relative time spent on each job duty. d) Create a job rewards matrix. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 1-35 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. COPYRIGHT © 2015 PEARSON EDUCATION, INC. 4-36
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Job Analysis reflection Essay
It is common that an employee may hold a different opinion on the appropriate approach
to some work, as opposed to the view of the boss/supervisor. A conflict arises when the
employee’s preferred approach to job does not fit with that held by the supervisor. In such
scenarios, the employee is left in a dilemma, on whether to trust in own approach and do the
work as planned, or consider the approach of the supervisor. While the opinion of the employee
may be the better fit, the scenario may worsen if the employee fails to honor the approach of the
supervisor and consequently a mess occurs in the work. The consequenc...


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