CHAPTTER THREE

JOB ANALYSIS AND HUMAN RESOURCE PLANNING

3.1. JOB ANALYSIS
A job in an organization is created when tasks, duties and responsibilities justify hiring of one
or more people for accomplishing the organizational purposes. A Job consists of a group of
tasks that must be performed for an organization to achieve its goals. A job may need the
services of one individual or the services of ten or more. In a work group consisting of an
auditor, two chief accountants, and three accounting clerks, there are a total of three jobs and
six positions. A position is the collection of tasks and responsibilities performed by one person;
there is a position for every individual in an organization. If a job is so fundamentally important
in an organization, what then is a job analysis?
Job analysis is the systematic process of determining the skills, duties and knowledge required
for performing jobs in an organization. It is an important human resource technique and is also
a method that enables to obtain information regarding jobs available in the organization.
The major purpose of job analysis is to provide answers to the following six important
questions.
1. What physical and mental tasks does the worker accomplish?
2. When is the job to be completed?
3. Where is the job to be accomplished?
4. How does the worker do the job?
5. Why is the job done?
6. What qualifications are needed to perform the job?
Job analysis is a procedure used to determine:
- tasks, duties and responsibilities
- the relationships of one job to other jobs
- the working conditions
- the qualifications needed for each job.
The job facts are gathered, analyzed and recorded with respect to the job as it exists. Moreover,
job analysis is conducted after the job has been designed, the necessary training has been given
to the employees to perform job. Job analysis is performed on three different situations. These
are:
1) It is done when the organization is founded and a job analysis program is initiated for
the first time.
2) It is performed when new jobs are created
3) It is used when jobs are changed significantly as a result of new technology, methods,
procedures, or systems.
In most cases, job analysis is carried out because of changes in the nature of jobs. It is used to
prepare both job descriptions and job specifications. The job description is a written statement
that explains the title, duties, responsibilities, working conditions, and other aspects of a
specified job. Job specification, on the other hand, describes the skill, knowledge, work
experiences required to perform the job.

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Reasons for Conducting Job Analysis
Data obtained from job analysis has an impact on every aspect of human resource management
as shown in figure below.

Human Resource
Planning

Recruitment

Tasks Responsibilities Duties Selection

Human Resource
Development

Job Performance Appraisal

Description

Job Compensation
Analysis and Benefits
Job
Specifications Safety and Health

Employee and
Labor Relations
Knowledge Skills Abilities
Human Resource
Research

Equal
Employment
Job Analysis: The Most Basic Human Resource Management Tool
As can be seen above, a major use of job analysis data is in the area of human resource
planning. Since jobs in an organization are different in nature, each requires different
knowledge, skills and experiences. Hence, effective human resource planning can only take
place when these job requirements are taken into account.
Human resource activities, such as recruitment and selection largely depend on job
information. In order to match the personnel to the job, the recruiter must know the
qualifications and other pertinent features of the job. It is only then can organizations select
and hire the right person for the right job. Furthermore, job analysis information can help
organizations to decide the nature of examinations or interviews to be conducted.
Job specification information, such as the knowledge, skills and abilities an employee need to
perform a task is crucial in identifying human resource training and development

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requirements. If the specification suggests that the job requires a particular knowledge, skill, or
ability and the person filling the position does not possess all the qualifications required-
training and/or development is probably in order.
Performance standards are developed from job information and then actual employee
performance is measured. It is important to note here that employee would be evaluated in
terms of how well they discharge their responsibilities specified in the job descriptions. Thus,
performance appraisal, which is based on job analysis information, enables organization to
measure employee performance against written standard and provide feedback concerning their
contribution. The relative value of a particular job to the organization must be well known
before a monetary value can be chosen to it. The more significant its duties and responsibilities,
the more the job is worth relatively. Jobs that require greater knowledge, skills, and abilities
should be worth more to the organization.
Information obtained from job analysis is also important in identifying safety and health
considerations. It enables management to provide for special measures for the physically
handicapped or infirm employee, the pregnant mother or other vulnerable sections among
workers. Job analysis information is also important to employee and labor relationships.
Management relies on job description to consider promotion, transfer, or demotion, on the
basis of comparison of talent. Moreover, information derived from job analysis enables
management to make decisions regarding employees in the organization.
In general, job studies are undertaken in order to bring about improvement in work methods,
reduction in errors, elimination of handling unnecessary materials and duplication of effort,
reduction in fatigue, increased employee commitment and responsibility and consequently to
improve the performance of the employee. These studies, therefore, enable the job analyst to
think in terms of designing/ redesigning jobs to achieve the above objectives.
Types of Job Analysis Information
All relevant information concerning the job is vital for successful accomplishment of job
analysis. The job analysts seek to identify the job's actual duties and responsibilities and collect
other types of data as shown in the table below.
1. Work activities
a. Work activities and processes
b. Activity records (in film form, for example)
c. Procedures used
d. Personal responsibility
2. Worker-oriented activities
a. Human behaviors, such as physical actions and communicating on the job.
b. Elemental motions for methods analysis.
c. Personal job demands, such as energy expenditure.
3. Machines, tools, equipment, and work aids used
4. Job-related tangibles and intangibles
a. Knowledge dealt with or applied (as in accounting).
b. Materials processed.
c. Products made or services performed.

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5. Work accomplishment
a. Error analysis
b. Work standards
c. Work measurements, such as time taken for a task
6. Job context
a. Work schedule
b. Financial and non-financial incentives
c. Physical working conditions
d. Organizational and social contexts
7 Personal requirements for the job
a. Personal attributes such as personality, interests
b. Education and training required
c. Work experience.
Table 1: Types of Data Normally Gathered in Job Analysis.
Job analysis information is used to define staffing needs of an organization. It includes analysis
of:
 Work activities - What needs to be done
 Work tools and technology - What machines, tools and technology people will use.
 Knowledge requirement - What people must know (knowledge), to perform the job.
 Personal requirement - What skills, competence and experience people must possess to
perform well.
 Job context - the work schedules, physical conditions, and social environment of the job.
 Performance Standards - expected results.
This information enables the job analyst to determine the type and level of education, training
and work experience.
Job Analysis Methods
Job analysis information provides the base for human resource information system (HRIS).
Basically, in order to get information for job analysis, the job analyst need to know that
organization and the work it performs. Methods used to conduct job analysis are different; this
is because organizational needs and resources for conducting job analysis differ. However,
some of the most common methods of obtaining information for job analysis are:
1) Questionnaires 4) Employee Log
2) Interviews 5) Combination of Methods
3) Observation
Questionnaires: To study jobs, job analyst design questionnaires to collect information
uniformly. These questionnaires reveal the duties and responsibilities, human characteristics
and working conditions and performance standards of the job to be investigated. The
questionnaire method is quick and economical to use. However, accuracy is lower because of
misunderstood questionnaires. Since, there is a possibility that some workers may tend to
exaggerate the significance of their tasks, suggesting more responsibility than actually required,
the same type of questionnaire can also be administered to supervisors to verify the worker
responses.

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Interviews: Face-to-face conversation is an effective method to collect job information. This
method provides an opportunity for the interviewer "to explain unclear questions and probe into
uncertain answers. The job analyst often talks with a limited number of employees first, and
then contacts the supervisors for checking the accuracy of the information obtained from the
employees. Although, the interview method is time-consuming and expensive, it more likely
ensures a high level of accuracy.
Observation: The observation method is slow and less accurate than other methods. This is
because the job analyst may miss irregularly occurring activities. Nevertheless, actual
observation acquaint the analyst with the machines, tools, equipment's and work aids used, the
work environments and it is useful to obtain visual impression of what is involved in the job.
This method is used primarily to study jobholders at work, noting what they do, how they do it,
and how much time it takes. Moreover, it enables the analyst to see the interrelationships
between mental and physical tasks. However, observation alone is usually an insufficient
means of conducting job analysis, particularly when mental skills are dominant in a job.
Employee Log: This method enables the job analyst to collect job data by having the
employees summarize their work activities in a diary or log. If entries are made over the entire
job cycle, the diary can be quite accurate and feasible way of collecting job information. This
method is not popular because it is time-consuming and less reliable as some employees may
tend to exaggerate their tasks. However, valuable understanding of highly specialized jobs,
such as a financial analyst, may be obtained in this way.
Combination of Methods: Since each method of obtaining information for job analysis has its
own limitations, job analysts often rely on combinations where two or more techniques are
used concurrently. For example, in analyzing clerical and administrative jobs, the analyst might
use questionnaires supported by interviews and limited observation. On the other hand, in
analyzing production jobs, interviews supplemented by work observation may provide the
required information. Combination of methods can ensure high accuracy at minimum costs.
Basically, the job analyst would employ the combination of methods required to carry out an
effective and efficient job analysis.
Conducting Job Analysis
The expert who conducts job analysis is interested in collecting information on what is
involved in doing a particular job. Job analysis is not one-man affair. It requires the
participation of a number of employees and their immediate supervisors. Organizations may
use employed human resource experts or use outside consultants to perform job analysis.
Before conducting job analysis, the analyst seeks to gain general understanding of the
organization and the job/jobs to be studied. Then, the analyst develops the desired job analysis
methods to gather information about the jobs; employee characteristics, and job performance
standards. Before starting to gather data, the employees' supervisor should introduce the analyst
to the employees and explain the main purpose of the job analysis. The job information
collected by using one or more job analysis methods allow management to draw up a job
description, job specifications and job standard.

 Job Descriptions

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 A job description is a written statement of what employee does, how it is done and why it is
done. In other words, the job description contains the total requirements of the job.
Among the items frequently included in a job description are:
- Major duties performed - Performance standards to be achieved.
- Percentage of time devoted to each duty. - Working conditions and possible hazards
- Number of employees performing the job and how they report to.
- The machines and equipment used on the job.
Within an organization, all the job descriptions should follow the same format, although the
form and content may differ from organization to organization. A sample of job description for
a secretary in an-organization is provided in the exhibit below.
POSITION TITLE POSITION NUMBER
Administrative Secretary II
DIVISION OR STAFF DEPARTMENT REPORTS TO EFFECTIVE DATE
_________ ____________ _________ August 14, 2017
DEPARTMENT SECTION GRADE
______________ ___________ _______
JOB SUMMARY
- Performs clerical and administrative duties for the General Manager and often one or more staff
members of the department.
NATURE OF WORK
- Performs a wide variety of office duties including most of the following:
a. Typing correspondence, report, manuscripts, graphs, charts, etc., from notes, dictating
machine, and/or hand written drafts proficiently and with minimum, direction/instructions.
b. Receiving telephone calls and visitors skillfully and handling incoming mail efficiently.
c. Originating general correspondence and handling inquiries,
d. Establishing and maintaining department files and records.
e. Assuming responsibility for arranging appointments and meetings, screening calls, and
handling personal and confidential matters for superior.
f. Performing administrative duties and special projects as directed, such as collecting and
compiling general reference materials and information pertaining to company, division, or
department practices and procedures.
QUALIFICATIONS
g. Diploma in Secretarial Science and Office Management plus 5 years of clerical experience,
and a typing skill of at least 100-WPM.
h. Demonstrated proficiency in English grammar, punctuation, spelling, and proper word
usage.
Sample Job Description
Although the contents of the job description vary, most job descriptions include:
- Job Identification - Job Summary
- Date of the Job Analysis - Duties Performed
Job Identification: This section on job identification includes the title of the job, department/
section, reporting relationship, date of the job description, and job code or number. A good

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 job title will closely approximate the nature of the work content and will distinguish that job
from others.
Date of the Job Analysis: The date of the job analysis is indicated on the job description to
help in identifying how old the description is. It ensures periodic review of the job content and
minimizes the number of obsolete job descriptions.
Duties Performed: This section provides the major duties to be performed. Usually one
sentence beginning with an action verb such as receives, performs, establishes, or assembles,
adequately explains each duty.
 Job Specification
A job description defines what a job is; it is a profile of the job, on the other hand, job
specification describes the job demands on the employees who do it and the human skills that
are required. It is a profile of human characteristics needed by the person performing the job.
These requirements include experience, training, education, and the ability to meet physical
and mental demands. In other words, job specification is identification of knowledge, skill and
attitude needed to perform a particular job. It is important to not here that since job descriptions
and specifications both focus on the job, job specifications are often included as one section of
job description. For example, the qualifications required for the job of "secretary II" include
typing at least sixty words per minute and demonstrated proficiency in English. This type of
information, as stated earlier, is extremely important in recruiting and selection process.
 Job Performance Standards
Job performance standard is the third application of job analysis. Job descriptions as stated
earlier are statements of what activities are to be performed, whereas performance standards
make explicit the quantity and/or quality of performance expected in basic tasks indicated in
the job description. Job performance standards are statements of the acceptable as well as
attainable levels of achievement on a particular job. Job performance standards serve three
functions. These are:
1) Standards become objectives or targets for employee effort. The challenge or pride of
meeting objectives may serve to motivate employees. Once standards are met, workers may
feel a sense of accomplishment and achievement.
2) Standards are criteria against which job success is measured. When measured performance
strays from the job standard, corrective action is taken. As illustrated in figure below, the
action serves as feedback, which in turn can lead to change standards if they are in
appropriate or improve the actual performance.
Actual Correction of
Job performance Deviations
Job Performance
standard

A job control system

3) Performance standards benefit both the jobholder and the superior who evaluates him. The
more the employee understands what is expected of him, the more likely it is that he/she
will be able to carry out the responsibilities of the position successfully. On the other hand,
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 in evaluating the performance of each employee, the supervisor can compare the actual
performance of each person with the written standard. Performance appraisals can never
become fully objective, but the usage of written standards helps to make them more
objective.
3.2 HUMAN RESOURCE PLANNING
What is Human Resource Planning?
The acquisition of people to perform each job within the organization is the role of the staffing
function. This function is interrelated closely with planning, because human resource needs
must be forecasted sufficiently in advance to enable qualified individuals to be available for job
openings as they occur. Human resource planning, therefore, is the process of systematically
reviewing human resource requirements to ensure that the required numbers of employees, with
the required skills, are available when they are needed. It is a means of deciding the number
and type of HR that the organization needs now and in the future. It translates the organization's
objectives into the number of employees required to meet those objectives. Without clear-cut
planning estimation of human resource need is reduced to mere guesswork.
The purpose of developing human resource planning is to asses where the organization is,
where it is going, and what implications these assessments have on future supplies of and
demands of human resource. Attempts must then be made to match supplies and demands,
making them compatible with the achievement of the organization's future needs.
 The Importance of Human Resource Planning
Its supply of personnel must be sufficient to ensure the healthy operation of the organization.
Toward this objective of continuing healthy operations, the organization needs to be undertaken
human resource planning. Human resource planning, therefore:
- assumes a crucial role in the future success or failure of an organization.
- enables a manager to predict his/her manpower requirements, to determine the deployment
of personnel and to control wage and salary costs.
- provides management information about the existing strength and weaknesses of the people
in the organization.
- assesses the kinds of skills required to be developed as well as recruited.
- estimates human resource requirements over a specified time frame in relation to the
organization's goals. Provides an indication of the lead-time that is available to evolve
new strategies in selecting and training the required additional manpower or reducing the
strength of the workforce.
In general, the following are the major reasons for undertaking human resource planning.
1. Future Human Resource Requirements: Planning is vital for determining the human
resource needs for the future.
2. Cope With Change: Human resource planning enables the management to cope with
changes in technology, competitive forces, markets, government regulations, etc. Such
changes often generate changes in job content, skill demands, number and types of
personnel.
3. Decreasing/Increasing Growth of Organizations: The manner, the pace and the direction
in which an organization is growing dictates the need for a human resource plan. Years of

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 comfortable growth may give rise to slower growth prospects or even reduced growth
prospect.
4. Foundation for Human Resource Functions: The plan provides essential information for
designing and implementing human resource functions such as recruitment, selection,
employee mobility (transfers, promotions, lay-off, etc.) and training and development.
In general, human resource planning:
- Should be planning - something done in advance rather than just as a spur-of-the-moment
reaction to immediate pressure.
- Should guide and coordinate all personnel activities so that they work together to support
the overall strategy rather than operate independently of one another.
- Should be responsive to both the external and the organization environment.
- Should be strategic - linked with high level planning rather than performed in isolation
The Human Resource Planning Process
Planning for human resource should be tied in with overall long-term organizational plan. In
other words, after organizational strategic plans have been formulated, human resource
planning can be undertaken. Strategic plans are reduced to specific quantitative and qualitative
human resource plans. Many organizations carry out systematic planning only for those
categories of personnel, which have been in short supply or for those types of skills which
require a long development time within the organization. This being as it is, most organizations
identify short term and long-term human resource needs by examining their strategic plan.
As can be seen in the figure next page, below, the human resource planning has two
components. These are requirements and availability. Forecasting human resource
requirements involves determining the type and number of people needed in an organization.

The below projections will reflect various factors, such as development plans in government
organizations whereas production plans in business firms. Forecasting human resource
availability involves identifying both the internal sources and external sources. It is important
here to not that one of the major objectives of human resource planning is to enable the
organization not be understaffed or overstaffed. Thus, it is the responsibility of the management
to compare requirements and availability to determine whether there will be a surplus or
shortage of employees. If a surplus is projected, then, the organization must use different
employee reduction methods, such as early retirements, restricted hiring, dismissal, etc. On the
other hand, if shortage is predicted, the organization must obtain the right type and number of
people from the labor market through recruitment and selection.

EXTERNAL ENVIRONMENT
INTERNAL ENVIRORNMENT
Strategic Planning
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 Human Resource Planning

Forecasting Comparison of Forecasting

Human Resource Requirements Human Resource
Requirements and Availability Availability

Demand Surplus of Shortage of

Supply Workers Workers

Recruitment
Restricted Hiring
No action Reduced Hours, Selection
Early Retirement
Layoff

The Human Resource Planning Process

Although there is no universally accepted set of procedures for undertaking human resource
planning process, there is a general agreement upon the major processes and contents of human
resource planning as illustrated below.
Organizational Current Forecasting Implementation Audit
Goals & Plans Human Human Programs &
Resource Resource Adjustment
Steps in the Human Resource Planning Process
 Organizational Goals and Plans
Human resource planning is a part of the strategic planning for the entire organization.
Moreover, a human resource planning process should be clearly tied to the organization's
strategic goals.
The organizational goals are the result of its strategic planning. Different kinds of public or
business plans can be designed ahead for different number of years. Generally speaking,
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however, human resource planning for up to one year is considered short range and is widely
practiced in many organizations. On the other hand, planning for two to four years is
considered medium range and planning for five years and beyond is long-range.
 Current Human Resource Situation
The second phase of the planning process is the preparation of an inventory of human resource
within the organization. This is often called human resource inventory or a manpower
information system. The inventory consists of up-to-date information concerning each
employee's knowledge, skills and abilities. It enables management to assess the type and
number of employees available in the organization. Moreover, a summary of this sort gives
planners a comprehensive understanding of the capabilities that are to be found in the
organization's workforce.
Human resource inventory includes job classifications, age, gender, organizational level, rate of
pay, and functions. It may also include resume date, skill, education, training received, and
career interest. This manpower information can be collected, stored and retrieved manually by
means of filing system in small organizations, whereas computerized system is practically a
must for the larger organizations that wish to handle employee information for many years.
This step enables planners to evaluate the status of current human resources. What skills,
interests, and experiences of current employees have? What jobs are being done? How many
employees are doing particular jobs? Current employees are the most likely candidates to meet
future needs and should be the first ones considered for new positions.
 Human Resource Forecast
Human resource forecasts are attempts to predict an organization's future demand for
employees. It is a determination of the demand for employees for given time periods in the
future such as one, three and five years. The forecast also requires the preparation of an
estimate of the supply of people who will be available for the selected time period. The supply
is composed of two main parts. There are:
- an estimate of the numbers and types of personnel presently on the payroll.
- The portion which must be recruited externally.
These figures for the planning period are obtained by subtracting the current available
manpower from the projected demand. If the figures are positive, employees will have to be
recruited, selected and hired; if the figures show negative, employees may eventually have to
be laid off.
The demand forecast is an estimate of types and numbers of personnel the organization will
require in the future. It is derived from goals and plans. Generally, human resource planners
must use several techniques of forecasting manpower requirement and availability. Some of the
techniques available are qualitative and quantitative in nature.
 Human Resource Forecasting Techniques.
Forecasting technique ranges from judgment to sophisticated quantitative models. The most
commonly used techniques of forecasting are:
 Judgment and Experience  Work Standard Data
 Zero-Base Forecasting  Key Predicative Factors.
 Bottom-up Approach

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 Judgment and Experience: This method is based on the estimates made by people like
executives or experts who are very familiar with the entire nature of the jobs in the
organization. It is appropriate for short-range forecasts. The manager and heads of various
units of the organization make estimates of future human resource requirements by
judgmentally converting information on future organizational activities into numbers and
types of personnel needed.
 Zero-Base Forecasting: The method uses the organization's current level of employment
as the starting point for determining future staffing needs. Whenever vacancies exist due to
retirement, layoff, death, or resignation, the vacant positions are not immediately filled.
Instead, personnel requirement analysis is made to determine whether the organization can
justify filling them. The same procedure is followed when organizations create new
positions. Zero-base human resource forecasting, therefore, requires management at
different levels to thoroughly analyse their human resource needs.
 Bottom-up Approach: In bottom-up approach, managers from various levels are asked to
contribute to employment forecasting. It has the advantage of drawing many managers into
the process and giving them a sense that they are participating in one of the importance
activities of the organization. Here, unit managers send their employment needs forecasting
proposals to the top management who compare these with the plan and finalize them.
Human resource forecasting is often most effective when managers periodically project
their human resource needs, comparing their current and anticipated levels, and giving
the human resource department adequate lead time to explore internal and external source.
 Work Standard Data: This is a means of determining the relationship between tasks and
the number of employees needed to perform the tasks. In this case many organizations have
established data for man-hours or unit times to perform tasks. The technique is useful only
in cases where the volume of work can be satisfactorily quantified, total production and
activities in terms of clear units are estimated and the number of man hours required to
perform/ produce each unit is carefully calculated.
The total projected units of work for the organization are translated into man-hours or
man-days and the number and type of employees by using the pre-established time
standards. However, work standard technique cannot be applied for estimating professional
personnel requirements. For this, judgment, experience and managerial intent are some of
the major determinants of how many and what types of employees are needed.
 Key Predictive Factors: The core element is to identify one major indicator with which
total human resource requirement correlates highly. For example, one of the useful
predictors of academic staff employment levels in the Ethiopian Civil Service College is the
number of students to be served. Moreover, to identify predictor variables, the manpower
planning office of business organization must examine several variables such as sales
volume, units produced, or number of customers served to find which variable or variables
provides a good correlation between the number and type of employees needed.
 Implementation Programs:
After the optimal alternative for addressing the organization's human resource issues has been
chosen, it is translated into operational programs with specific plans, target dates, schedules,
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and resource commitments. The implementation phase of the human resource planning requires
translating the plan into action. For example, if a shortage of accountants in Region 5 has
been forecasted and if the plans reveal, both recruitment plus upgrading of the present
accounting talent, then both recruitment and training programs will have to be strengthened and
expanded.
The following are the major implementation actions.
Recruitment and Selection
The analysis of human resource requirements indicates a shortage of specific skills. In such
case, the human resource manager must examine both the internal and the external sources of
supply, and then efforts must be made to attract the best-qualified candidates to the
organization.
Most experts are agreed that the search for manpower must always begin within the
organization where a thorough check on the quantity and quality of existing employees can be
made to yield a manpower audit. The organization itself is a captive source and when the
qualifications, experiences and capacities of manpower within is known, offering them new
avenues and openings can act as powerful incentives.
After analyzing the internal human resource availability, the organization will have to examine
the labor market. Recruiting new personnel from the open labor market can be costly and
complicated process that has a strong impact on organizational effectiveness. In order to
acquire the best-qualified people, organizations must have a good policy to ensure that
employment conditions are sufficiently attractive. Once a pool of potential applicants has been
developed there is a need to assess this pool to predict which candidates will assist the,
organization in the attainment of its objectives if selected. Here, employee selection refers to
the development of policies and procedures, and evaluating potential employees in terms of job
specification. It is a means of determining, which people best meet the needs of the
organization.
Performance Appraisal
Performance appraisal is the process by which organizations evaluate individual job
performance. Organizations use performance appraisal for manpower planning purposes, as
input into personnel information systems. Moreover, it provides reliable data for management
decisions in regard to:
- employee's readiness for taking a new jobs, through transfers and promotions
- training and management development needs.
In general, information collected through performance appraisals enables management to assess
employees' performance and potential for future development.
Promotion, Transfer, Layoff and Retirement
Organizations are ever changing. Because of the needs of the organization and employees, the
occurrence of some sort of employee movement is always there. In implementing the human
resource plans, some employees may be promoted from jobs to another positions that are
higher in pays, responsibilities and/or organizational levels while others may be transferred to
another jobs either to fill vacant positions or to provide the employee with new skills and to
enable him/her be a better candidate for promotion in the future.

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When human resource plan reveals that the internal supply of employees exceeds the
organization's demand, reduction of surplus workers becomes unavoidable task. Such situation
can be corrected through layoffs, early retirements and/or restricted hiring. When the
organization is unionized, layoff procedures are usually stated clearly in the labor management
agreement. Typically, workers with the least seniority are laid off first. If the organization is
nonunion, it may base layoff on a combination of factors, such as seniority and productivity
level. In early retirement some employees are reluctant, but others may be willing to retire.
This being the case, early retirement is supposed to be voluntary and the organization must
offer some sort of inducement.
Training and Development
Training and management development must be in the context of the organization's human
resource development policy. They must be based on recognized needs such as:
- changes in technology
- the introduction of new products
- changes in organizations set-up
- organization's desire to upgrade the skills & knowledge of employees with a view to help
them do their current jobs properly and prepare them for future responsibilities
The training and management development programs are relevant and useful only when they
are implemented towards the attainment of organizational objectives.
Motivation and Compensation
The system of motivation and compensation should serve to help the organization achieve the
manpower plan. Compensation is what an organization provides its employees in exchange for
their work contribution. If the organization is not paying competitive rates, the current
employees are likely to leave the organization. Pay dissatisfaction not only affects the quality
of work life but it also has a trouble in recruiting and retaining employees. On the other hand, if
the treatment of employees is perceived to be arbitrary, then the organization will also have
problem of meeting its human resource requirements.
 Audit and Adjustment
Human resource planning requires considerable time, personnel, and financial resources. The
return on this investment may not justify the expenditure for small firms. Increasingly,
however, large organizations use human resource planning as a means of achieving greater
effectiveness. For any of various reasons, the human resource programs for meeting the desired
targets may be falling short of organizational objectives. A system for evaluating and
measuring progress should be set up. Many systems of measurement can be used depending
upon the specific program being evaluated.
Moreover, another reason for reviewing progress is to check if changes in the human resource
plans are made necessary, because of changed circumstances or because of the original
planning has been proven wrong.

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