HRM ...effective and efficient use of the organization's human resources

Let's begin with an examination of the term "management". Within most organizations, considerable thought is given to the effective and efficient use of financial resources. This is called "Financial Management". Similarly, "Operations Management" concerns itself with the effective utilization, storage, and distribution of material resources. Further, "Marketing Management" concerns itself with the promotion and sale of the organization's products. So, what about "Human Resources Management (HRM)"?

HRM is concerned with the effective and efficient use of the organization's human resources. How do we decide what kind of human resources (employees) we need? How will we procure them? How will we ensure that we select only the best? How will we ensure that the people we choose can do the jobs we expect them to do? How will we measure their effectiveness? How will we maintain or motivate these employees?

So, we begin our management of the firm's human resources by asking: "What is it that we're trying to manage?"

Once our employees are functioning effectively, we need to ensure that they continue to do so; we need to concern ourselves with their motivation. Part of this motivational process involves compensation. This begs a further question; how do we decide how and when to compensate our employees, including decisions about the relationship between the nature of their jobs and level of their compensation.

How do we make these decisions? Or, more specifically, how do we make these decisions rationally -- how can we ensure that these decisions are made with objective criteria?

In the case of hiring, we need to decide what kind of employee we're looking for? When engaged in the selection process, we must decide which of the applicants will actually be the best employee?

HRM also involves the maintenance of human resources. This includes the issue of compensation. From our knowledge of the Equity Theory of Motivation, we know must decide on issues of relative compensation (how much are people doing one job paid relative to others doing a completely different job -- and how is that decision made?).

Theories of motivation also point out employees' needs for feedback. Therefore, we need to be able to determine when our employees are doing a good job.

The answers to the questions above, lie in an understanding of the jobs that our employees are performing and, to understand their jobs, we need to do a job analysis. Essentially, the job analysis forms the core of the human resource management function.

In doing a job analysis, we are essentially gathering raw data about the jobs in our organization.

THE PROCESS OF DETERMINING...

• the specific nature and duties of a job

• the kinds of people (in terms of skills and experience) who should be hired for the job

If for no other reason, there may be a legal need to do job analyses. When courts are required to decide selection cases, the job analysis may be critical; employers wishing to demonstrate that their selection processes are valid, will need to start with the job analysis.

 

However, beside any legal reasons for job analysis, there are also important management reasons for doing the analysis. The job analysis yields an improved process for obtaining, retaining, and managing an organization's work and human resources?

Job analyses can be utilized to enhance communication within the organization. Quite simply, the job description (which is the really job analysis data in a structured format) communicates the organization's expectations to it's employees. The job description is a simple way of telling people what it is they are expected to do. To facilitate this communication, the job analysis should use simple sentences or phrases to define job tasks.

"What do you want me to do"?

To be useful, the job analysis should record what the employee should do, to what or to whom, and at what level of proficiency.

Job analysis...

...permits recruiters to find the best "fit" between organization requirements and individual needs

When recruiting new employees, the firm is interested in finding the best "fit" between the organization and the new employees.

How is this best "fit" determined? An effective recruitment and selection process should be based on objective criteria, and those objective criteria are based on the job analysis.

An efficient recruitment process will limit applicants to those individuals who can actually perform the jobs that require new employees. For example, a job advertisement based on the specific performance criteria   identified in the job analysis (and detailed in the job description), should limit applicants to persons who meet those criteria. This is much more efficient than placing advertisements which do not reflect the firm's (the job's) specific needs and consequently result in a multitude of unqualified (both over- and under-qualified) applicants.

The selection of an employee should also be based on objective criteria. In this case, the applicant's ability to do the critical tasks of the job as determined by the job analysis (and reflected in the job description). The job description will "define" the ideal standard against which all applicants will be compared. The "best fit" is then determined by a comparison of the applicant's KSA's (Knowledge, Skills, and Abilities) against the requirements of the job.

 

Job analysis may be used to identify...

...employee performance deficiencies...

...thereby identifying training needs

The job analysis is an essential element to the development of training programs; it serves as the basis for the training needs assessment (the first step in the development training programs).

In its simplest form, the training needs assessment is a matter of comparing the job incumbent's job performance with the actual requirements of that job (as specified in the job description). If there is no discrepancy in this comparison, then we have no need for training. On the other hand, if we identify a gap between the "actual" and the "ideal", then we have potentially identified a need for training.

 

Job analysis...

...determines the standards against which employees' performance will be measured

Performance appraisal should also have a relationship to the critical tasks of the job as determined by the job analysis (objective criteria). There should be quality standards or level of proficiency statements for all of the critical tasks.

Therefore, the primary question of performance evaluation is:

• "Did the employee do what the employee was asked to do?"

A second question is:

• "Did the employee do it at an acceptable quality level?"

If the information with respect to what is actually required to do the job is in the job analysis, then these questions should be relatively easy to answer.

 

Job analysis data...

...permits comparison of jobs - to determine relative value and appropriate compensation

Relative skill level (the comparison of the skills required for various jobs) is important for setting relative compensation within the firm. Of course, there are other factors used in determining levels of compensation; the external labor market and seniority. However, the job analysis process should establish relative skill levels among the jobs in an organization in order to ensure internal equity.

Job analysis...

...may pinpoint areas of danger

...may assist in the drafting of safety policies

...allows a degree of job classification (in terms of skills, safety, working condition etc)

...provides objective data that may be used at the bargaining table