Human Resource

Chapter 4

Work-Flow Analysis and Organization Structure

 Work-Flow Design – is the process of analyzing the tasks necessary for the production of a
product or service prior to allocating and assigning these tasks to a particular job category or
process
 Organization Structure – refers to the relatively stable and formal network of vertical and
horizontal interconnections among jobs that constitute the organization
 Work-flow design and organization structure are both used to gain a competitive advantage for
the firm. How one does this is based on the firm’s strategy and its competitive environment

Stages in Work Flow Analysis: Work Outputs, Processes, and Inputs

(1) Work Outputs

 Every work unit (such as individuals, departments, teams etc.) all seek to produce some output
that others can use
 Output is the product of a work unit and is an identifiable thing (Ex. chair, hamburger, etc.) or
service

(2) Work Processes

 Work Process – are the activities that members of a work unit engaged in to make the output
 Jobs that are more complex, a team-based job design is used. This allows a wider-set of skills,
team back-up, share of workload and errors detection
 For teams to be effective, the level of task interdependence (how much they have to cooperate)
matches the level of outcome interdependence (how much they share the reward for task
accomplishment)

(3) Work Inputs

 Work Inputs – are the inputs used in the development of the work unit’s product
 Forms of inputs:
o Raw Inputs – consist of materials that will be converted into the work unit’s product
o Equipment – refers to the technology and machinery used to transform raw materials
into finished products
o Human Resources (is the final input for the work-flow process) – the skills and
abilities need to perform the tasks

Organization Structure

Dimensions of Structure
 Two important dimensions of organization structure is:
o Centralization
o Departmentalization
 Centralization – degree to which decision-making authority resides at the top of the
organizational chart
 Departmentalization – degree to which work units are grouped based on functional similarity or
similarity of work flow

Functional Configuration
 Two common forms of organization structure that tend to emerge in organizations are:
1. Functional Structure – combines functional departmentalization scheme with relatively
high levels of centralization. High levels of centralization tend to go naturally with
functional departmentalization
2. Divisional Structure – combines a divisional departmentalization scheme with relatively
low levels of centralization

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 The use of divisional structures is not very efficient because it causes redundancy with each
group carrying its own functional specialists
 Divisional structure can be “self-cannibalize” if the gains achieved in one unit come at the
expense at another unit

Functional Structure Divisional Structure

 Most appropriate in stable, predictable  Most appropriate in unstable, unpredictable
environments where demand for resources environment where it is difficult to
can be anticipated and coordination anticipate the demand for resources and
requirement between jobs can be refined coordination requirement between jobs are
and standardized not consistent over time
 Help support organizations that compete  Helps support organizations that compete
against cost on differentiation or innovation
 Jobs need to be narrow and highly  Managers need to be more experience and
specialized have a high cognitive ability
 Workers in this structure has more
authority or responsibilities for managing
coordination between themselves and
others

Job Analysis: The Building Block of HRM

 Job Analysis – is getting information of a particular job
 For an organization to succeed, information about a jobs should be provided (through job
analysis), in order to ensure that potential employees can meet the requirement/skill-sets for that
particular job (done through selection)
 It is said that job analysis is the building blocks of HRM because every HRM programs/activities
require some type of information, which can be acquired through job analysis, which can aid in
their processes such as selection, training, job evaluation etc.

Nature and Sources of Job Analysis Information

 Two source of information that are useful in conducting job analysis are:
o Job descriptions
o Job specifications
 Job Descriptions – are the tasks, duties and responsibilities that are involved in a particular job
 Job Specifications – are the required knowledge, skills, abilities and other characteristics to
perform a particular job
o Knowledge refers to factual or procedural information
o Skills refers to the individuals proficiency
o Abilities – refers to the individuals capabilities
o Other Characteristics – can include personality traits
 Job incumbents (used when it is difficult to monitor the person who is doing the job) and
supervisors are the most frequently used source of job analysis

Job Analysis Methods (4)

 There are four ways to analyze jobs

(1) Job Analysis Interview

 Usually done through job analysis questionnaires

(2) Observation and Self-Reports

 Supervisors observe the activities of workers and/or create reports to collect information

(3) The National Occupational Classification

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 Is a database that organizes the work Canadians do

 Each occupational description is assigned a 4 digit code based on the NOC classification matrix
 Once the code is determined, users can locate occupational profile in the database. These
profiles contain descriptions, kind of working environment, employment requirements etc. of the
job

(4) Position Analysis Questionnaire (PAQ)

 Is a standardize job analysis questionnaire containing 194 items.
 These items represents a work behaviour, work conditions and job characteristics
 The items are organized into 6 sections
1. Information Input – where and how a worker gets information needed to perform a job
2. Mental Processes – the reasoning, decision making, planning, and information process
needed to perform the job
3. Work Output – are the physical activities and tools used to perform the job
4. Relationships with other people – is the relationships with others to perform the job
5. Job Context – the physical and social contexts where the work is performed
6. Other Characteristics – are the other activities, conditions and characteristics need for
the job

Job Design
 Job Design – is the way the work will be performed and the tasks that will be required in a given
job
 Job Redesign – is changing the way the work is performed or task in a job

Various Approaches to Job Design

Mechanistic Approach
 Rooted from engineering
 Scientific management is one of the earliest methods used before the mechanistic approach
 Recall: the scientific management is a method where the organization figures out how to produce
product and trains everyone to produce it that way. “One best way”
 Once the scientific management approach evolved to the mechanistic approach, it resulted in
simple meaningless jobs that reduce the dependence on high-skilled workers

Motivational Approach
 Rooted from psychology and management and the emergent of mechanistic approaches to job
design
 Focuses on increasing meaningfulness of jobs through job enrichment (adding complexity and
meaningfulness to a person’s work), job enlargement (broadening the types of skills performed)
and constructing jobs around sociotechnical systems
 Jobs can be described in 5 characteristics
o Skill Variety – the variety skills needed to carryout a task
o Task Identity – is the requirements to complete a whole job from beginning to end
o Task Significance – the importance the job has on peoples lives
o Autonomy – is the degree in which the job allows the workers to make decisions about
how the work will be carried out
o Feedback – is information a worker receives about their performance effectiveness from
the work

Ergonomic/Biological Approach
 Ergonomic – is creating a proper fit between people and their work
 Focus on physical capabilities and limitations
 The goal is to reduce physical strain on workers by creating a work environment that reduces
fatigue, aches and pains and health complaints

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 This approach has been applied to redesigning equipment’s used in jobs

o Ex. making chairs more supportive on the back area

Perceptual-Motor Approach
 Rooted from human-factors
 Focuses on human mental capabilities and limitations
 This approach attempts to improve reliability and safety and reduce job’s cognitive demands

Human Resource Planning

 There are many factors that influence the supply and demand for labour.
 Two major ways societal trends/events affect employers are through:
1. Consumer markets, which affects the demand for G&S
2. Labour markets, which affects the supply of people to produce G&S
 In some cases, the market can be characterized as a labour surplus or labour shortage
o Where there is a labour surplus, a corporate downsizing is in order
o Where there is a labour shortage, initiating a recruitment campaign is in order
 Three ways to effectively utilizing labour markets to one’s competitive advantage:
1. Companies must have a clear idea of their current configuration of HR. They need to be
aware of their present employees strengths & weakness
2. The organization needs to be aware of their future goals and how their current HR
configuration can help attain those future goals
3. Needs to address discrepancies between present and future configuration

Human Resource Planning Process

 HR planning process consist of 4 steps:

(1) Forecasting
 Forecasting – is predicting the supply and demand for various HR in order to predict future
labour surplus or shortage
 Forecasting uses:
o Statistical methods – using historical data to make predictions about future events. It is
more accurate than using subjective or judgemental methods
o Judgemental methods
 Leading Indicator – is a measure that accurately predicts labour demand
 Transitional Matrices – shows the proportion (or number) of employees in different job
categories at different times
 Once forecasts for labour demand and supply are known, companies can use these information
to see if there is a labour shortage or surplus

(2) Goal Setting and Strategic Planning

 Main purpose is to focus attention on problems and provide a standard for determining the
success of any programs aimed at labour shortage or surplus
 The goal should directly come from the analysis of labour supply and demand

(3) Program Implementation and Evaluation

 A critical aspect for program implementation is to make sure that one individual is held
accountable for achieving stated goals and has the necessary resources to achieve the goals
 Last step in the planning process is the evaluation stage

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