Chapter Two

Organization Design

HRM, 2021, Set By Dr. Habtamu Dadi

 Section 1
Organization Design and Job
Analysis

HRM, 2021, Set By Dr. Habtamu Dadi

Organization Design
Organization design is the process of deciding how
organizations should be structured and function.

Organizational design is a management decisions and

actions that result in a specific organizational structure.

Organisation design is the process and outcome of

shaping an organisational structure to align it with the
business purpose and context in which it exists.

HRM, 2021, Set By Dr. Habtamu Dadi

 Aims of organization design
The overall aim of organization design is to optimize the arrangements for
conducting the affairs of the business.
But another overall aim of organization design is to achieve the ‘best fit’ between
the structure and the circumstances in which organization operates.


Clarify the overall purposes of the organization – the strategic goals that govern
what it does and how it functions.
Define how work should be organized to achieve that purpose, including the use
of technology and other work processes
Define as precisely as possible the key activities involved in carrying out the
work.
Group these activities logically together to avoid unnecessary overlap or
duplication.
Provide for the integration of activities and the achievement of cooperative effort
and teamwork.

HRM, 2021, Set By Dr. Habtamu Dadi

Aims of organization design continued
 Build flexibility into the system so that organizational arrangements
can adapt quickly to new situations and challenges.
 Provide for the rapid communication of information throughout the
organization.
 Define the role and function of each organizational unit so that all
concerned know how it plays its part in achieving the overall purpose.
 Clarify individual roles, accountabilities and authorities.
 Take account of individual needs and aspirations.
 Design jobs to make the best use of the skills and capacities of the job
holders and to provide them with high levels of intrinsic motivation.
 Plan and implement organization development activities to ensure that
the various processes within the organization operate in a manner that
contributes to organizational effectiveness.

HRM, 2021, Set By Dr. Habtamu Dadi

Job analysis
Defining terms
A job is an organizational unit which consists of a group
of defined tasks or activities to be carried out or duties
to be performed for organization to achieve its goals.
Job analysis is the process of collecting, analyzing and
setting out information about the content of jobs in order
to provide the basis for a job description and data for
recruitment, training, job evaluation and performance
management.
Job analysis is the process of getting detailed
information about jobs. Job analysis concentrates on what
job holders are expected to do.
HRM, 2021, Set By Dr. Habtamu Dadi
 Job analysis
Job analysis is the systematic process of identifying
the tasks, duties and responsibilities that make up
a job and the knowledge, skills, and abilities
needed to perform the job.
It provides data/information on job requirements,
which are then used for writing/developing job
descriptions (what the job entails) and job
specifications (what kind of people to hire for the job).

HRM, 2021, Set By Dr. Habtamu Dadi

A job description defines what job holders are
required to do in terms of activities, duties or tasks.
- benefits to organization
- benefit to employee
Job Specification is the human qualifications in
terms of knowledge, skills, and ability (KSA) required
to accomplish a job.

HRM, 2021, Set By Dr. Habtamu Dadi

The Rationale for Conducting Job Analysis
Basically, the purpose of job analysis is to obtain
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. What is the job to be accomplished?
4. How does the worker do the job?
5. Why is the job done? and
6. What qualifications are needed to perform
the job?
HRM, 2021, Set By Dr. Habtamu Dadi
HRM, 2021, Set By Dr. Habtamu Dadi
Stages in the Job Analysis Process
I. Planning the Job Analysis
II. Preparing for and introducing job analysis
III. Conducting the Job Analysis
IV. Developing Job Descriptions and Job Specifications
V. Maintaining and Updating Job Descriptions and
specifications

HRM, 2021, Set By Dr. Habtamu Dadi

I. Planning the Job Analysis
Identify objectives of Job Analysis

II. Preparing for and introducing job

analysis
Identifying jobs to be analyzed and methodologies
Review existing job documentation. Review relevant
background information such as organization charts,
process charts, and job descriptions..
Communicate process to managers/employees

HRM, 2021, Set By Dr. Habtamu Dadi

III. Conducting the Job Analysis
Gather job analysis data (Determine information to
collect and source of data)
-Data collection requires the Job Analyst to gather all
the information which they can about the job.
They should:
- Obtain existing information such as existing
organization, procedure or training manuals which give
you information about the job

HRM, 2021, Set By Dr. Habtamu Dadi

Conducting the Job Analysis-- cont
- Obtain the existing Job Description and Person
Specification for the job being analyzed
- Ask managers and job holders for fundamental
information concerning the job, the overall purpose,
the main activities carried out, the responsibilities
involved and the relationships with others. This can be
done through a series of structured interviews.
Review and compile data

HRM, 2021, Set By Dr. Habtamu Dadi

Job analysis methodology and techniques

HRM, 2021, Set By Dr. Habtamu Dadi

Job analysis methodology and
techniques
1. Interview:- employee first describe duties
performed and then analyst contact supervisor for
additional information
2. Questionnaire: job holders fill in the structured
questionnaires
3. Observation:- job analyst watches what current
worker perform job tasks and records observations.
4. Checklists: almost similar to questionnaires
5. Participant Diaries/Logs: employee describes their
daily work activities
HRM, 2021, Set By Dr. Habtamu Dadi
Student self reading
For Further understanding
See Job analysis interview
checklist
See Job Analysis
Questionnaire text book.

HRM, 2021, Set By Dr. Habtamu Dadi

IV. Developing Job Descriptions and Job Specifications
Job Description
A list of a job’s duties, responsibilities, reporting
relationships, working conditions, and supervisory
responsibilities
Is the written statement of what the job holder does,
how he or she does it, and under what conditions the
job is performed.

HRM, 2021, Set By Dr. Habtamu Dadi

Job Description Components
There is no standard format for writing a job
description. However, most descriptions contain
sections that cover:
1. Job identification: Job title, Reporting relationships,
Department, Location, Date of analysis
2. Job summary: general nature of the job including
major function, activities.
3. Responsibilities and duties
4. Supervision
5. Standards of performance
HRM, 2021, Set By Dr. Habtamu Dadi
6. Working conditions and possible hazards
7. Job specifications :Knowledge, skills, and abilities
Education and experience, Physical requirements
8. Number of employees performing the job and
whom they report to, and
9. The machines and equipment’s used on the job

HRM, 2021, Set By Dr. Habtamu Dadi

Example Job Description
Job Title: Accounts Payable and Payroll Accountant
Reports to: Finance Directorate
Job Purpose:
Job Description: Business Partner with Accounts
Payable and Payroll Departments to develop expense
forecasts and commentary; prepare accounts payable and
payroll shared services; ensure inputs are posted weekly,
perform account analysis/reconciliations of cash, liability
and employee loan accounts, submit routine reports to
Corporate; identify and implement process
improvements relative to all responsibilities listed above

HRM, 2021, Set By Dr. Habtamu Dadi

Example of Job Description
Job title: HR adviser; recruitment
Reports to: HR Service Centre Manager
Reports to job holder: none
Job purpose: To provide recruitment services to line managers for jobs below management level
Main duties:
1. Respond promptly to requests from line managers to assist in recruiting staff.
2. Produce person specifications.
3. Agree on the use of recruitment agencies and/or media advertisements or internet
notifications of vacancies.
4. Brief and liaise with agencies and/or draft advertisements for jobs for approval by
line managers and place advertisements or information on vacancies using the
media and/or the internet.
5. Process replies and draws up short lists.
6. Conduct preliminary interviews independently or conduct short-list interviews
with line managers.
7. Agree offer terms with line manager, take up references and confirm the offer.
8. Review and evaluate sources of candidates and analyse recruitment costs.

HRM, 2021, Set By Dr. Habtamu Dadi

Job specification
The job specification focuses on the person in
answering the question, “What human traits and
experience are required to do this job effectively?”
Minimum qualifications person should possess to
perform particular job. Should reflect minimum, not
ideal qualifications for particular job.

HRM, 2021, Set By Dr. Habtamu Dadi

Example of Job specification
Job Specification: BS degree in accounting or finance,
2+ years of accounting or finance experience, sound
knowledge of integral accounts payable and general
ledger systems, working knowledge of IBX Software,
good communication skills, able to work
independently at off-site location

Here we try to examine KSA and other competence

behaviors
See Other Examples from Text

HRM, 2021, Set By Dr. Habtamu Dadi

V. Maintaining and updating job description
and specification
Update job description and specification as
organization change
Periodically review all jobs

HRM, 2021, Set By Dr. Habtamu Dadi

 Section 2
Job Design and Development

HRM, 2021, Set By Dr. Habtamu Dadi

Job Design and Development
Job Design
Job design specifies the contents, methods and relationships of
jobs in order to satisfy work requirements for productivity,
efficiency and quality, meet the personal needs of the job
holder and thus increase levels of employee engagement.

 It is a systematic process through which the

 work content (tasks, functions, and relationship),
 the qualifications required (knowledge, skills and abilities)
 the rewards (extrinsic and intrinsic) is determined for each job.

HRM, 2021, Set By Dr. Habtamu Dadi

Simply Job Design is organizing tasks, duties, and
responsibilities into a productive unit of work.
and
Matching the characteristics of people with
characteristics of jobs

Job design deals with making decisions about what

tasks should be grouped into a particular jobs.

HRM, 2021, Set By Dr. Habtamu Dadi

Factors affecting job design
1. The characteristics of jobs.
2. The characteristics of task structure.
3. The process of intrinsic motivation.
4. The job characteristics model.

HRM, 2021, Set By Dr. Habtamu Dadi

Characteristics of Jobs
The three fundamental characteristics of jobs are:
Job range: the number of operations a job holder
performs to complete a task.
Job depth: the amount of discretion a job holder has to
decide job activities and job outcomes.
Job relationship: the interpersonal relationships
between job holders and their managers and co-
workers.

HRM, 2021, Set By Dr. Habtamu Dadi

Task structure
Job design requires the assembly of a number of tasks
into a job or a group of jobs.
 Individual may have one major task and many
interrelated tasks
 Tasks may be allocated to team
 One individual may have a variety of tasks
 Of course the way we arrange tasks results in different
organizational structure

HRM, 2021, Set By Dr. Habtamu Dadi

Behavioral element/Intrinsic motivation
The case for using job design techniques is based on
the premise that effective performance and genuine
satisfaction in work follow mainly from the intrinsic
content of the job.
This is related to the fundamental concept that people
are motivated when they are provided with intrinsic
rewards related to achievement, responsibility and
opportunity to use and develop skill as the means to
achieve their goals.

HRM, 2021, Set By Dr. Habtamu Dadi

The Job Characteristics Model

Source: Adapted from J. R. Hackman and G. R. Oldham, Work

Redesign (Reading, MA: Addison-Wesley, 1980). Figure 7.2
HRM, 2021, Set By Dr. Habtamu Dadi
Job Characteristics Model
 Jobs have five characteristics describing extent of:
 Skill variety: employee uses a wide range of skills
the degree to which job require a variety of differed activities.
A operator in garage does electric, rebuild engine, does body work, and also
interact with customers
 Task identity: worker involved in all tasks of job from beginning to end of

the production process

 Task significance: worker feels the task is meaningful to organization.

The degree to which job has substantial impact o the lives or work of other
people
 Autonomy: employee has freedom to schedule tasks and carry them out.

 Feedback: worker gets direct information about how well the job is done.

 These affect the motivation, satisfaction and performance of

employees.

HRM, 2021, Set By Dr. Habtamu Dadi

The Job Characteristics Model
 critical psychological states of experienced
meaningfulness of work, experienced responsibility for
outcomes of work and knowledge of the actual
outcomes of work strongly influence motivation, job
satisfaction and performance.
Skill Variety, task identity, task significance give job
satisfaction
 Autonomy gives sense of responsibility and
commitment
 Feedback helps to analyse performance

HRM, 2021, Set By Dr. Habtamu Dadi

Why organization do job design
In Job design we specifying content, methods,
relationship, of job. We organize work content/task,
and qualification required.
Why?
If a firm experience low productivity, employee
absenteeism, high turn over, lack of employee job
satisfaction, if major change happen in target, if
environmental change happen, if technology change
To address these problems organization redesign job.

HRM, 2021, Set By Dr. Habtamu Dadi

Advantage of Job Redesign
Have an advantage both for employee and
organization
 Work become interesting
 More autonomy
 Increase motivation
 High productivity
 Improve quality of work life balance
 Workers experience feeling of responsibility,
achievement, growth, and recognition

HRM, 2021, Set By Dr. Habtamu Dadi

Approaches of Job Design
Five popular approaches are:
1. Job simplification
2. Job rotation
3. Job enlargement
4. Job enrichment

HRM, 2021, Set By Dr. Habtamu Dadi

HRM, 2021, Set By Dr. Habtamu Dadi
2. Job Rotation:
This is the movement of employees from one task to
add variety and reduce boredom by allowing them to
perform a variety of work.

HRM, 2021, Set By Dr. Habtamu Dadi

3. Job Enlargement:
Job enlargement involves adding more tasks to a job.
This is a horizontal expansion in a job. By adding more
tasks to job, job enlargement expands job scope and
gives variety of tasks to the job holder.

For example, a mail-sorter’s job could be enlarged to

include physically delivering the mail to the various
departments in the organization.

HRM, 2021, Set By Dr. Habtamu Dadi

4. Job Enrichment:
Job enrichment involves basic changes in content and level of
responsibility of job, to provide greater challenge to worker.
Thus, job enrichment is a vertical expansion of a job by adding
more responsibility and freedom to do it.
Increasing the depth of a job by adding the responsibility for
planning, organizing, controlling, and evaluating the job. Job
enrichment involves redesigning jobs in a way that increases
the opportunities for the worker to experience feelings of
responsibility, achievement, growth, and recognition.
Job enrichment increases job depth, which refers to the degree
of control employees have over their work. Job enrichment can
improve the quality of work output, employee motivation, and
satisfaction.

HRM, 2021, Set By Dr. Habtamu Dadi