BBPB2103_BI

TOPIC 2 LEGAL ENVIRONMENT 35

Information about contribution to SOSCO is as follows:

(a) An employee employed under a contract of service or apprenticeship and
earning a monthly wage of RM3,000 and below must compulsorily register
and contribute to SOCSO regardless of whether the employment status is
permanent, temporary or casual in nature.

(b) An employee must be registered with the SOCSO irrespective of age.

(c) SOCSO only covers Malaysian workers and permanent residents. Foreign
workers, on the other hand, are protected under the WorkmenÊs
Compensation Act 1952.

(d) SOCSO does not cover the following categories of person:

(i) A person whose wages exceed RM3,000 a month and has never been
covered before.

(ii) Government employees.

(iii) Domestic servants employed to work in a private dwelling house
which includes chefs, gardeners, house servants, watchmen,
washerwomen and drivers.

(iv) Employees who have attained the age of 55 only for purposes of
invalidity but if they continue to work they should be covered under
the Employment Injury Insurance Scheme.

(v) Self-employed persons.

(vi) Foreign workers.

EXERCISE 2.5

1. The Social Security Act 1969 protects all employees that are
employed under one contract of service with a salary of not
more than RM___________.

2. The amount of contribution that needs to be made by both the
employer and the employee under the Invalidity Pension
Scheme is _____________.

Copyright © Open University Malaysia (OUM)

36 TOPIC 2 LEGAL ENVIRONMENT

2.6 HUMAN RESOURCE DEVELOPMENT ACT
2001

This Act aims to increase employee training by imposing and collecting
human resource development levies, apart from establishing Human
Resource Development Councils and Human Resource Development Funds
for this purpose.

Every employer registered with the Human Resource Development Council will
have to pay a human resource development levy for every employee based on
their wages. Registered employers that have made the payment are entitled to
apply for financial aid or the services allocated in this Act for the purpose of
encouraging employee training. Table 2.5 shows the levy rate imposed according
to the set criteria in the Human Resource Development Act 2001.

Table 2.5: Levy Rate According to Sector

Criteria Levy Rate Based
on Employee Fee

Manufacturing sector with 50 or more employees 1%

Manufacturing sector with employees more than 10 and not 0.5%
exceeding 50 employees with a paid up capital of RM2.5 million
and above

Service sectors with 10 or more employees 1%

Under this Act, the Human Resource Development Fund must be spent on:

(a) Encouraging development and growth of employeesÊ skills by designing,
developing, increasing or monitoring training amenities;

(b) Preparing financial aid through loans or subsidies to employers to train or
re-train their employees;

(c) Organising or implementing activities or programmes aimed at re-training
employees who have been or will be laid off due to downsizing;

(d) Bearing the cost of managing the Human Resource Development Council
including payment and allowances for council officers; and

(e) Bearing any administration costs for the Fund as well as the cost of
implementing the Act.

Copyright © Open University Malaysia (OUM)

TOPIC 2 LEGAL ENVIRONMENT 37

Apart from that, the Human Resource Development Act 2001 also allots aspects
on the functions of the Human Resource Development Council:
(a) Evaluates and determines the types or levels of training that is in line with

the industryÊs human resource needs;
(b) Increases manpower training; and
(c) Establishes the conditions for loans or financial aid.

Visit http://www.hrdf.com.my to obtain information on the roles of Human
Resource Development (Ltd).

EXERCISE 2.6

1. Describe the purposes of the Human Resource Development
Fund under the Human Resource Development Act 2003.

2. State the functions of the Human Resource Development Council
as set under the Human Resource Development Act 2003.

2.7 EMPLOYEES PROVIDENT FUND ACT 1991
(AMENDMENT 2006)

The Employees Provident Fund (EPF), also known as Kumpulan Wang
Simpanan Pekerja (KWSP), is a government organisation in charge of social
security or retirement planning for legally employed workers in Malaysia.

All employers must register their employees with the Employees Provident Fund
immediately upon employment.

The Employees Provident Fund (EPF) aims to encourage employee savings
for the purpose of retirement.

Figure 2.5 shows the EPF contribution rate.

Copyright © Open University Malaysia (OUM)

38 TOPIC 2 LEGAL ENVIRONMENT

Figure 2.5: EPF contribution rate
The contribution rate allocated under this Act is based on the following:

(a) A worker aged less than 60 years. Full contribution is 24% (13% employers,
11% employee) for employee paid RM 5,000 and below. 23% (12%
employees and 11%) for employee paid exceeding RM 5,000 a month.

(b) A worker aged 60 and above up to 75 years. Contribution rate is 50% of
statutory contribution of workers aged under 60 years in the amount of
wages.

Effective 1 January 2007, the contributorÊs account is divided into two types
Account 1 and Account 2. All contributions are divided into the two accounts
according to fixed percentages, namely, 70 percent into Account 1 and 30 percent
into Account 2.

These accounts are created for different purposes and different types of
withdrawals are applicable to each account:
(a) Account 1

The savings here are for the purposes of retirement and cannot be fully
withdrawn before the age of 55 or passed away, or loses his capacity and
intends to leave Malaysia permanently.
(b) Account 2
The savings in this account are meant to help you to make early
preparations for a comfortable retirement. Withdrawals are allowed for the
purposes of:
(i) Attaining the age of 50 years;
(ii) Owning a house or making the downpayment for your first house;
(iii) Settling the balance of your housing loan for your first house;
(iv) Financing education for yourself and that of your children; and
(v) Medical expenses for yourself and that of your children.

Copyright © Open University Malaysia (OUM)

TOPIC 2 LEGAL ENVIRONMENT 39

ACTIVITY 2.5

Visit http://www.kwsp.gov.my and find information on these
questions:

1. How much can be withdrawn from Account 2 for the purpose
of paying for a house?

2. What actions can be taken by an employee if the management
does not make any EPF contribution?

EXERCISE 2.7

According to the Employees Provident Fund Act 1991, membersÊ
accounts are divided into two different accounts with different
percentages. State the percentages from the total contribution allocated
to each account and explain the purposes of each account.

2.8 WORKMEN’S COMPENSATION ACT 1952

This Act aims to compensate employees who are injured or contract illnesses
caused by their work.

In the early stages, this Act covered all manual workers in the private sector, and
non-manual workers in the private sector with a salary of not more than RM500 a
month. In 1977, the scope of the Act was extended to include non-manual workers
in the public sector with a salary of not more than RM400 a month.

The next amendment was made in 1993 where it gave protection to all foreign
workers in the private sector, whereas all local workers in the private sector were
covered under the EmployeesÊ Social Security Act 1969. However, in 1996, this
Act was amended so that it only gives protection to non-manual workers in the
public sector with a salary of not more than RM400, while foreign workers are
protected under the Foreign Workers Compensation Scheme 1952.

Copyright © Open University Malaysia (OUM)

40 TOPIC 2 LEGAL ENVIRONMENT

EXERCISE 2.8

Fill in the Blanks

To test your knowledge of the legal environment in human resource
management, answer the questions below:

1. Halim has worked with CBA Company for four years.
Therefore, the number of annual leave he is eligible to under
the Employment Act 1955 is ___________ days.

2. Employers are prohibited to ask or demand an employee to
work more than ___________ hours a week.

Multiple Choice Questions

1. Below are items contained in the Employment Act 1955
EXCEPT ___________.
A. Hours of work
B. Annual leave
C. Procedure of settling dissatisfaction
D. Payment of fee

2. Below are statements of hours of work alloted for an employee
under the Work Act 1955 EXCEPT _____________.
A. Working not more than 8 hours in a day
B. Employees must be given a rest period of at least 45 minutes
C. Working not more than 5 hours without given a rest
D. Working not more than 48 hours in a week

3. MembersÊ accounts are divided into two accounts under the
Employees Provident Fund Act 1991. Account 1 can be
withdrawn when the member _____________.
A. Is settling a loan
B. Is purchasing a house
C. Is handicapped and can no longer work
D. Is settling medical expenses

4. The purpose of establishing the Human Resource Development
Fund is to _______________.
A. Develop employeesÊ skills through training
B. Prepare start-up business loans for employers
C. Implement financial crisis reinstallation activities or
projects for an organisation
D. Pay all organisation expenses to acquire business from its
competitions

Copyright © Open University Malaysia (OUM)

TOPIC 2 LEGAL ENVIRONMENT 41

5. Which of these is NOT TRUE regarding female employees under
the Employment Act 1955?
A. Female employees have the right to 60 days of consecutive
maternity leave.
B. Female employees are not allowed to work between 10pm
and 5am.
C. Female employees are only allowed to perform light jobs that
do not include handling machineries.
D. Female employees are eligible to maternity allowance if they
inform the management four months before the due date.

6. Below are the functions of the Human Resource Development
Council EXCEPT:
A. Deciding on the conditions in giving aid and financial loans.
B. Increasing manpower training.
C. Evaluating and determining the types of training that are
suitable for industrial needs.
D. Helping an organisation solve employeesÊ disciplinary
problems.

Essay Questions

1. Amin has worked in Syarikat Teguh for five years. He was
admitted to the hospital for 60 days due to a road accident. How
many days of standard medical leave can he take after the accident
in that particular year?

2. State four public holidays that have been set and be made
compulsory in the calendar year.

3. What are the types of leave conditioned in the Employment Act
1955?

4. Are all employers and employees required to contribute to the
Social Security Organisation (SOCSO)? Explain.

5. Elaborate briefly on the types of scheme introduced under the
EmployeesÊ Social Security Act 1969.

Copyright © Open University Malaysia (OUM)

42 TOPIC 2 LEGAL ENVIRONMENT

Overall, it is clear that legal systems do influence work relations formed
between employers and employees.

The Industrial Relations Act 1967, which has been discussed in this topic,
should be able to give you a more comprehensive picture about the
importance of having a systematic and organised human resource
management system.

This can ensure a harmonious working relationship between employers and
employees.

In addition, this can help an organisation reach competitive advantage in the
local as well as the global market.

Contract of service Maternity coverage

EmployeesÊ Social Security Act 1969 Normal hours of work

Employer-employee relations Occupational Safety and Health Act

Employment Act 1955 (OSHA) 1994

Human Resource Development Act Payment of wages

1992 Recruitment of women

Industrial Relations Act 1967 Trade Unions Act 1959

Leave WorkmenÊs Compensation Act 1952

Copyright © Open University Malaysia (OUM)

Topic Job Analysis

3 and Design

LEARNING OUTCOMES

By the end of this topic, you should be able to:
1. Describe the steps involved in job analysis;
2. Explain the key issues in job description and specification;
3. Discuss the relationship between job requirements and human

resource management functions; and

4. Examine the factors that need to be taken into account when

designing a job.

INTRODUCTION

Job analysis and job design are two important elements that form the foundation
for effective human resource planning. Job analysis determines the requirements
in a job. Job design helps employees achieve organisation objectives and at the
same time gives satisfaction to employees performing their jobs.

The main purpose for an organisation to conduct job analysis is to improve its
performance and productivity. It is necessary to identify the skills, knowledge,
experience and other requirements necessary to do a job. Job analysis helps
organisations to fulfil the legal needs and regulations set by the government.
Usually, the human resource department is responsible for conducting job
analysis.

Copyright © Open University Malaysia (OUM)

44 TOPIC 3 JOB ANALYSIS AND DESIGN

3.1 JOB ANALYSIS

Job analysis is the process of obtaining information about a particular job by
determining the responsibilities, duties, skills and experiences of the
prospective employee.
Job analysis should be executed by following a systematic approach as shown in
Figure 3.1.

Figure 3.1: The six important steps to job analysis
Source: Adapted from Bohlander, Snell & Sherman. (2009). Managing human resources

(15th ed.). Ohio: South-western College Publishing
The outcome of the analysis is used to develop job description and specification.
Before carrying out a job analysis, the requirements for a particular job must be
determined.Questions such as the following should be asked so that a more
accurate job requirement can be determined:
(a) What kind of work will be done by the employee?

Copyright © Open University Malaysia (OUM)

TOPIC 3 JOB ANALYSIS AND DESIGN 45

(b) How is the employee going to perform the job?
(c) Why is the employee be performing the job?

Figure 3.2 briefly explains how a job analysis can be used to produce job
description and specification.

Figure 3.2: Job analysis, job description and job specification
Source: Adapted from Bohlander, Snell & Sherman. (2009). Managing human resources

(15th ed.). Ohio: South-western College Publishing

Copyright © Open University Malaysia (OUM)

46 TOPIC 3 JOB ANALYSIS AND DESIGN

(a) Job Analysis
It is important for HR department to analyse, reanalyse and document
information about a job. It is used during the hiring process and also for
training and performance appraisal.

Job analysis is thus, necessary and it is a procedure or method that examine
the skills, knowledge, experience and other requirement necessary to do a
job well.

The outcomes of the job analysis will be the job description and the job
specification.

(b) Job Description
It is a document that outlines a job. According to Maimunah (2008) a
typical caption is as follows:
(i) Job title, location and grading;
(ii) Relationships – organisational hierarchy;
(iii) Brief statements on the purpose of the job;
(iv) List of duties and responsibilities;
(v) Terms and conditions of employment to be given to the job-holder;
and
(vi) Negative aspects of the job.

(c) Job Specification
Sometimes it is known as person description. A document that explains
how an individual fits into a job. It also assists the HR personnel to recruit a
qualified candidate for a position.

According to Maimunah (2008), job specification should include the
following:
(i) Knowledge, skills and abilities required to do the job;
(ii) Educational qualifications and work experiences required;
(iii) Physical requirements of the job, if any;
(iv) Personality requirements, where relevant; and
(v) Career path.

Copyright © Open University Malaysia (OUM)

TOPIC 3 JOB ANALYSIS AND DESIGN 47

Next, refer to Figure 3.3 for the job analysis process.

Figure 3.3: Job analysis process
Source: Adapted from Bohlander, Snell & Sherman. (2009). Managing human resources

(15th ed.). Ohio: South-western College Publishing
Before we engage in further discussion on job analysis, we must first understand
some terms that are closely related to job analysis. The terms are shown in Table
3.1.

Copyright © Open University Malaysia (OUM)

48 TOPIC 3 JOB ANALYSIS AND DESIGN

Term Table 3.1: Basic Job Terms
Job
Position Description

Job group A number of activities and duties that are inter-related.
Duties Different duties and responsibilities performed by an
employee.
Element A group of different jobs with similar characteristics.
Job specification A group of job elements coordinated and combined to produce
results.
Job description The smallest unit of a job or task.
Statement on the knowledge, skills and capabilities needed by
an employee to perform a job.
Statement on the duties, obligations and responsibilities
needed to perform a job.

ACTIVITY 3.1

Working with a group of three or four students, collect at least three
different job descriptions from organisations of your choice. Compare
the descriptions, highlight similarities and differences.

3.1.1 Job Analysis Approach

We can use various methods to obtain data or information on a job. These
methods can be categorised as qualitative or quantitative methods.

(a) Qualitative Methods
The following are some of the qualitative methods often used:

(i) Interview
A job analyst will question employees, supervisors and managers
individually regarding the work that is being analysed.

(ii) Survey
A job analyst will distribute to every employee a questionnaire on the
work that is being analysed. Each employee must fill up the
questionnaire. The data gathered is on employeesÊ duties and
responsibilities, work goals, suitability of workplace, requirements to
perform work (skills, education, experience, physical and mental
needs), equipment and materials needed, and requirements on
employeesÊ health and safety.

Copyright © Open University Malaysia (OUM)

TOPIC 3 JOB ANALYSIS AND DESIGN 49

(iii) Observation
A job analyst can obtain information on jobs by observing employees
of particular positions while they are performing their tasks.
Observation is based on standard work activities. The result of the
observation will be recorded in an observation form.

(iv) Journal and Record
The employer will be requested by the analyst to record all activities
in a journal throughout the employeeÊs work cycle. Usually, the notes
are made in 30 minutes or one hour intervals for each cycle or work
shift, and the time frame is usually between two and four weeks.

Apart from the methods above, there are other methods or approaches in
data collecting that are quantitative in nature.

(b) Quantitative Methods
Among the popular quantitative approaches in job analyses are as follows:

(i) Functional Job Analysis (FJA)

FJA is a quantitative approach to job analysis. It utilises the
inventory of a jobÊs activities or functions.

FJA assumes that every job involves the execution of a specific
employeeÊs functions, i.e. functions related to data, humans and
things.

Each function has a difficulty level that has been relatively set. The
total value of difficulty level will determine a jobÊs content and help to
prepare the job description and specification. Table 3.2 shows an
example of a FJA application.

Copyright © Open University Malaysia (OUM)

50 TOPIC 3 JOB ANALYSIS AND DESIGN

Table 3.2: Sample of a Functional Job Analysis Application

Level of Difficulty of EmployeesÊ Functions

Data Humans Things

0 Synthesising 0 Mentoring 0 Starting
1 Coordinating 1 Negotiating 1 Working efficiently and
2 Analysing 2 Giving instructions and thoroughly
3 Arranging 3 Supervising 2 Operating controlling
4 Calculating 4 Diverting attention 3 Steering operating
5 Copying 5 Persuading 4 Manipulating
6 Comparing 6 Talking in signs 5 Attending
7 Servicing 6 Feeding off bearing
8 Receiving orders helping 7 Handling

Source: Adapted from Revised Handbook for Analysing Jobs,
Washington DC: US Gov. Printing Office, 1991

Based on the example presented in Table 3.2, if a clerk needs to copy
data, talk to customers and lift things, the difficulty levels of his or her
functions are 5, 6 and 7, respectively. This means that the total
difficulty level for the clerk is 18.

If the difficulty levels for an assistant psychiatrist in a hospital in
terms of handling data, humans and things are 1, 7 and 5,
respectively, then, the total level of difficulty is 13.

The lower the score of the difficulty level, the higher the difficulty
level function. Therefore, jobs that have the same score are grouped
together and paid the same salary rate.

(ii) Position Analysis Questionnaire (PAQ)

PAQ is a quantitative survey method that covers 194 items on
employee oriented duties.

This technique uses a scale of 0 to 5 to determine the degree of work
duties or elements that need to be carried out in a job. The 194 items
are classified in six groups, i.e:

Information input
Information input refers to the way employees acquire
information on a job.

Copyright © Open University Malaysia (OUM)

TOPIC 3 JOB ANALYSIS AND DESIGN 51

Mental process
Mental process refers to the process of reasoning, decision making
and planning applied to perform a job.

Work result
Work result refers to the types of equipment and physical
activities utilised to perform a job.

Relationship with others
Relationship with others refers to the types of relationship
expected in order to perform a job.

Work contexts
Work contexts refer to the physical and social contexts where the
job is performed.

Other work characteristics
Other work characteristics refer to activities, occurrences or other
characteristics aside from the five characteristics listed above.

The score from respondentsÊ answers will be analysed by a computer
and the result will be used to determine the characteristics of a job.

(iii) Critical Incident Method
Through this method, important work duties are identified to
determine the success of a job. Information on critical duties can be
obtained through interviews with employees and managers or
through written reports by the position holder. Data obtained will be
analysed. The result is a clearer or more understandable report on the
important tasks in a job.

(iv) Computer Job Analysis
Human resource information system helps a lot in the job analysis
process. Now, there are many software designed specifically to
analyse jobs and come up with job descriptions and specifications
based on the analysis. Managers and employees have to only choose
statements on duties related to the job being analysed to determine
the importance level of the duties.

Copyright © Open University Malaysia (OUM)

52 TOPIC 3 JOB ANALYSIS AND DESIGN

EXERCISE 3.1

TRUE (T) or FALSE (F) Statements
1. Job analysis is the process of obtaining information on a job

by determining the obligations, duties or activities of the job.
2. The responsibility of carrying out a job analysis is the main

responsibility of a line manager.
3. The usual methods of gathering information for a job analysis

are interviews, questionnaires, observations and journals.
4. The functional job analysis approach is an inventory of a jobÊs

various functions and work activities.
5. The main objective of the critical incident method approach

when performing a job analysis is to identify the 194 items in
the position analysis questionnaire list.

Visit http://www.job-analysis.net and get information on the approaches in a
job analysis (apart from those already mentioned).

3.1.2 Job Description and Specification

Data on a job obtained from a job analysis will be used to develop the job
description and specification.
(a) Job Description

A job description is a written description of a job and it covers the
duties that need to be performed.

Most job descriptions contain at least three parts, namely, position, work
introduction and work duties and obligations. Table 3.3 presents the
important areas of a job description.

Copyright © Open University Malaysia (OUM)

TOPIC 3 JOB ANALYSIS AND DESIGN 53

Job Description Table 3.3: The Important Parts of a Job Description
Term
Description
Position Name
Represents the duties and level of the post in an organisation.
Psychologically, the position name can represent a jobÊs status.
The position name should also explain the duties that need to be
performed in a job.

Work Differentiates a job from another job.
Introduction
Items that need to be included in a work introduction include
Duties or work location in an organisation, to whom the position holder
Obligations should report, and when was the last time the job description
was revised.

A statement on the job obligations and duties is often arranged
according to its significance.

A job statement should show the weight or value of a task in a
particular job. Often, the total time utilised to perform a task
will become the main weight.

A job statement covers responsibilities in performing duties and
results that should be achieved. It also covers the equipment or
tools needed by employees to perform the job.

The management must ensure that job duties and obligations do
not go against laws and regulations.

A job description is important to employees because it helps them to learn
their duties and obligations in a particular job and reminds them of the
result they must achieve.

On the managementÊs side, a job description becomes a base to reduce any
misunderstanding between employers and employees in the job
requirements. It is also a basis for the management to take corrective actions
when a task or obligation is not performed well.

(b) Job Specification
A job specification is a certain eligibility needed to perform tasks and fulfil
the responsibilities of a job. A job specification usually consists of two
things, i.e.:

Copyright © Open University Malaysia (OUM)

54 TOPIC 3 JOB ANALYSIS AND DESIGN

(i) Skill requirements in performing a job. This includes education or
experiences, specialised training, personal characteristics or abilities
and manipulative abilities.

(ii) Physical requirements in performing a job. Physical requirements
include requirements to walk, stand up, reach, lift or speak while
performing a job. Physical requirements also take into consideration
an employeeÊs endurance towards the physical environment of the
workplace and the hazards that need to be faced.

ACTIVITY 3.2

Based on your experience in the workplace, what are the problems
that may be faced by the management and employees in the
process of preparing a job description report?

3.1.3 Uses of a Job Analysis

The result of the job analysis process helps the human resource manager to carry
out human resource management functions (refer to Figure 3.2). These functions
are recruitment, selection, training and development, performance evaluation
and compensation management.
(a) Recruitment

The recruiter must have knowledge of the job specification before hiring an
employee to fill the post.

(b) Selection
The manager and supervisor will use the job description and job
specification to select and orientate the employees.

(c) Training and development
Training equips employees with the knowledge, skills and abilities
necessary to perform their tasks.

(d) Performance evaluation
The requirements contained in a job description can be used as the criteria
to evaluate the post holderÊs performance.

(e) Compensation management
The management must consider requirements in terms of the employeeÊs
skills, efforts and responsibilities, as well as workplace environment and
hazards in determining the payment rate for workers so that it is equal to
the work performed.

Copyright © Open University Malaysia (OUM)

TOPIC 3 JOB ANALYSIS AND DESIGN 55

EXERCISE 3.2

TRUE (T) or FALSE (F) Statements

1. In preparing a job description report, the selection of a job title
is important in determining the employeeÊs status.

2. When writing a job description report, it is logical to use terms
that are loose, unclear and comprehensive.

3. When there is a gap between knowledge, skills and abilities and
the requirements needed to fulfil the job description and
specification, then the position holder must be given training.

4. The requirements in a job description can be used as the criteria
to evaluate the position holderÊs performance. It is known as job
evaluation.

5. In determining the payment rate of a job, the relative value of
the job does not hold much importance.

3.2 JOB DESIGN

Before you proceed with the discussion on job design, make sure you are not
confused between job design and job analysis.

A job analysis involves a study on a job that is being performed by an employee.
A job design is an expansion of the job analysis aiming at improving a job
through people and technology, so that the organisationÊs efficiency and job
satisfaction can be achieved. A job design involves job structuring, including job
enlargement, reengineering and job enrichment.

Job design involves the emerging of five factors (Bohlander, 2001):
(a) Organisational objectives;
(b) Matters relating to behaviour;
(c) Matters relating to industrial engineering;
(d) Ergonomic matters; and
(e) Employee contribution.

Copyright © Open University Malaysia (OUM)

56 TOPIC 3 JOB ANALYSIS AND DESIGN

3.2.1 Behavioural Matters

There are two approaches that influence employee behaviour when performing a
job. They are job enrichment and job characteristics.
(a) Job Enrichment

Job enrichment is to stimulate a job by increasing meaningful tasks and
obligations to give more satisfaction to employees.

Job enrichment for employees can be done through these methods:
(i) Increasing the difficulty level and the responsibilities of a job;
(ii) Giving employees opportunities to maintain authority and

empowerment of their work;
(iii) Conducting a one-on-one work performance report with the employee;
(iv) Increasing new tasks that require training and development; and
(v) Assigning particular tasks individually so that employees become experts.

Job enrichment is only effective for certain jobs. There are employees who
are unhappy when their job descriptions are changed, but there are also
others who see it as a challenge and something stimulating.
(b) Job Characteristics
A job characteristics model states that there are three psychological states
where an employee shows an improvement in his or her work performance,
internal motivation, decrease in absenteeism and turnover.

The three psychological circumstances are:
(i) Feeling a sense of meaningfulness towards the work performed;
(ii) Feeling responsible for work results; and
(iii) Knowing or understanding the work that has been done.

If there is a decrease in one of the three psychological circumstances, it will
affect the internal motivation of an employee.

According to Hackman and Oldham (1976), there are five job characteristics
that influence these three psychological circumstances. They are skill
variety, task identity, task significance, autonomy and feedback.
(i) Skill Variety

Explains the range of skills and activities necessary to complete the
job. The more an employee is challenged to use a wide variety of
skills, the more satisfying the job is likely to be.

Copyright © Open University Malaysia (OUM)

TOPIC 3 JOB ANALYSIS AND DESIGN 57

(ii) Task Identity
Measures the degree to which a person can complete an activity or job
in full. Employees who are able to take an activity from start to finish
are usually more satisfied.

(iii) Task Significance
Focuses on the impact and influence of a job. Jobs are more satisfying
if employees believe that they make a difference, and are adding real
value to colleagues, the organisation, or the larger community.

(iv) Autonomy
Describes the amount of individual choice and discretion involved in
a job. More autonomy leads to more satisfaction.

(v) Feedback
Measures the amount of information an employee receives about his
or her performance, and the extent to which he or she can see the
impact of the work. The more that people are told about their
performance, the more interested they will be in doing a good job.

Figure 3.4 shows Hackman and OldhamÊs job characteristics model.

Figure 3.4: Hackman and OldhamÊs job characteristics model
Source: Adapted from Hackman & Oldham (1976). Motivation through the design of

work: Test of a theory

Copyright © Open University Malaysia (OUM)

58 TOPIC 3 JOB ANALYSIS AND DESIGN

ACTIVITY 3.3

In your opinion, what will happen if an employeeÊs duties and
responsibilities are increased but he or she is not psychologically
ready to accept the job enrichment?

3.2.2 Industrial Engineering Matters

Industrial engineering is a field that is closely related to analysing work
methods and determining the standard work duration. It involves a study on
the work process cycle and determines the work elements that need to be
changed, merged, rearranged or eliminated so that the work duration needed
to complete the work process cycle can be lessened.

Through industrial engineering, the standard work duration for each work
element is merged and matched by taking into account employeeÊs skills and
efforts when performing the particular job. The time duration on matters that
interrupt employees when working is also considered. Therefore, the total time
that has been changed is considered the standard time to perform a work cycle.
Industrial engineering involves a disciplined and objective approach. However,
employeesÊ behavioural matters must be considered. This is because a job design
that is only seen from the industrial engineeringÊs point of view as being efficient
and organised may not be psychologically suitable for the employee.

ACTIVITY 3.4

Think about the industrial engineeringÊs strengths and weaknesses in
terms of work process and employees. Based on your working
environment, list the strengths and weaknesses of industrial
engineering.

Copyright © Open University Malaysia (OUM)

TOPIC 3 JOB ANALYSIS AND DESIGN 59

3.2.3 Ergonomic Matters

Ergonomics is a disciplinary approach in designing equipment with a system
that can be used easily and effectively by employees.

The overall system is suited to the characteristics that are present in humans.
Factors such as job types, work environment, machines, equipment and
processes must be suitable for the employees that are performing the particular
job. Briefly, we try to fit machine to man, and not fit the man to the machine.

In other words, ergonomics tries to lessen negative impacts such as carelessness,
negligence and other weaknesses that can cause defects to products and damages to
the equipment. Most importantly, it is to avoid employee injuries and accidents as
well as fatalities when performing work. See Figure 3.5 for an example.

In designing equipment, the employeesÊ physical abilities as well as their reaction
towards stimulation must be considered. An employeeÊs ability to react by way
of seeing, hearing, touching and discovering equipment is important. Apart from
being appropriate for the workplace, the equipment or machine must be suitable
for employees, specifically female employees.

Figure 3.5: Sample of Ergonomics Checklist at a ClerkÊs Work Station
Source: Adapted from Bohlander, Snell & Sherman. (2004). Managing human resources

(13th ed.). Ohio: South-western College Publishing

Copyright © Open University Malaysia (OUM)

60 TOPIC 3 JOB ANALYSIS AND DESIGN

ACTIVITY 3.5

In this developing era, females are able to perform tasks that were formerly
monopolised by men. However, there are parties who feel that jobs such as
labourers are only suitable for men. Give your views. If you agree, do you
think you are discriminating against female employees?

EXERCISE 3.3

TRUE (T) or FALSE (F) Statements

1. There are two methods in job design, namely, job enrichment
and job characteristics. Both methods combine employee
behavioural needs when they are performing their jobs.

2. Richard HackmanÊs and Greg OldhamÊs job characteristics
model suggests that there are three employee psychological
circumstances that will improve work performance and
internal motivation, and decrease employee non-attendance
and dismissal.

3. The result of industrial engineering scientific management is a
work method analysis to determine a standard work time.

4. Ergonomics is about designing equipment that considers the
operatorÊs mental ability to operate the equipment, as well as
react through sight, hearing and touch towards the
information from the equipment.

3.2.4 Job Design to Increase Employee Contributions

All techniques used to increase employee contributions in an organisation have
two similarities, namely, to increase cooperation and standardisation among
group members.

Research shows that working in a group promotes a sense of responsibility
towards achieving organisational goals. It also increases employeesÊ acceptance
towards decisions made, and encourages a cooperative approach in performing
tasks in the workplace.

Copyright © Open University Malaysia (OUM)

TOPIC 3 JOB ANALYSIS AND DESIGN 61

Among the cooperation techniques that increase employeesÊ involvement in the
organisation are employee involvement groups and employee teams.

(a) Employee Involvement Groups
An employee involvement group is a group of employees that often meet to
solve problems or to give suggestions for the process of organisation
improvement. Each group may consist of five to ten employees and each
employee has similar or related duties or tasks in the organisation. In
general, employee involvement groups give suggestions to the
management, and the management decides whether or not to execute the
suggestion. If the suggestion is accepted, the result will be measured and
the group members will be rewarded for their contribution.

An employee involvement group usually meets four or five hours a month
and is chaired by a head. The head has no power but only acts as a
facilitator.

Figure 3.6 shows the employee involvement group process.

Figure 3.6: Employee involvement group process

(b) Employee Teams
An employee team is a technique where work functions are delegated to
groups and not to individuals. Members of a group are given the freedom
to use their own intelligence in managing working in a team and
individually. Each team member is responsible for improving the work
environment in the organisation. The team also assumes that each member
is responsible for the performance of their group. The management sees each
group as a unit that reacts to solve problems related to the organisation.

Copyright © Open University Malaysia (OUM)

62 TOPIC 3 JOB ANALYSIS AND DESIGN

Employee teams can operate in different forms or structures, and each
structure has its own strategy.
(i) Cross-functional Teams

A cross-functional team is a team that consists of multiple expertise
and is established to achieve a specific objective. Membership in the
cross-functional team is upon appointment and not voluntary.
(ii) Project Teams
A project team is a team that is established to design a new product or
service. Membership is upon appointment by the management based
on the ability of the employee to contribute to the achievement of a
project. The team will be disbanded when all tasks are completed.
(iii) Self-directed Teams
A self-directed team consists of those who are trained to perform tasks
related to the work unit. Group members opt for the majorityÊs
agreement in carrying out each of their obligations, such as problem
solving and liaising with customers from inside or outside the
organisation.
(iv) Task Force Teams
A task force team is a team that is established by the management to
solve major problems immediately. This team is responsible for
developing a long-term plan in the solving of major problems,
including carrying out the solutions.
(v) Process-improvement Teams
A process-improvement team comprises employees who are
experienced in various departments or functions. They are in charge
of improving quality, reducing wastage, or increasing productivity in
the processes that involve all related departments or functions. Team
members are usually appointed by the management.
(vi) Virtual Teams
A virtual team is a team where its members are far away from each
other and communicate through computers and other communication
technology.

Copyright © Open University Malaysia (OUM)

TOPIC 3 JOB ANALYSIS AND DESIGN 63

Employee teams will change the way the management and employees
communicate with each other. The manager faces problems in acting as a
head whereby traditionally managers have always acted as supervisors. The
manager will feel threatened by the empowerment given to employee teams,
which indirectly lessens the managementÊs power.

On the other hand, employees face problems in adapting to the new
supervisory role. To prevent these problems, members in employee teams
have to be trained throughout the four stages of team formation. These
stages are: formation, conflict, standards, and execution. The complete
training includes important skills in:

Team leadership.

Formation of the mission or objective.

Chairing a meeting.

Team decision making.

Conflict resolutions.

Effective communication.

Awareness of team diversity.

SELF-CHECK 3.1

What are the similar characteristics present in the techniques to
increase employee contribution in an organisation?

Copyright © Open University Malaysia (OUM)

64 TOPIC 3 JOB ANALYSIS AND DESIGN

3.2.5 Suitability of Work Timetable

The suitability of work timetable is not actually a part of job design. This is
because employeesÊ duties and responsibilities are not changed. However, the
suitability of work timetable will change employeesÊ normal working time.
Among the usual work timetable options are compressed workweek, flexi time,
job sharing, and telecommuting.
(a) Compressed Workweek

In compressed workweek, the total work days a week are reduced but the
total work hours a day are increased. This maintains the total work hours
per week.
(b) Flexi Time
Flexi time enables employees to choose the start and end of work time that
is suitable for them, as long as the total work time per day or per week is
maintained. However, it is compulsory for all employees to be at the
workplace at a certain period of time, such as between 10am and 3.30pm.
(c) Job Sharing
Job sharing refers to two temporary workers performing one job which is
supposedly manned by one full-time employee. They acquire a fee equal to
the total number of hours they work.
(d) Telecommuting
Telecommuting is the utilisation of micro computers, networks, and other
communication technologies such as facsimile machines when working at
home, whereby these tasks were previously done in the office or at the
workplace.

Copyright © Open University Malaysia (OUM)

TOPIC 3 JOB ANALYSIS AND DESIGN 65

EXERCISE 3.4

TRUE (T) or FALSE (F) Statements

1. Cooperation and standardisation techniques are among the
techniques in job design that aim at increasing group or
employee productivity.

2. Permanent groups that consist of five to ten employees who
perform the same task and often meet to identify, analyse, and
propose solutions for problems are known as task force teams.

3. Employee teams can operate in different organisational
structures, each with a specific strategy and goal.

4. Flexi time allows employees to choose their own start and
end of work time as long as they work for a certain total
number of hours per day or per week.

5. Telecommuting utilises micro computers, networks and
different communication technologies such as facsimile
machines to work at home, instead of doing it at the workplace.

Match the concepts to the suitable statements

(a) Job (d) Job design

(b) Job analysis (e) Job specification

(c) Job description (f) Position

1. A statement on the need for oneÊs knowledge, skills and
abilities in order to perform a job.

2. Extension and expansion of job analysis that improve a job,
and is related to job structure to increase organisation
efficiency and an employeeÊs job satisfaction.

3. Different tasks and responsibilities carried out by an
employee.

4. The process to obtain information on a particular job by
determining the obligations, tasks or activities in the
particular job.

5. A group of related activities and tasks.

6. A statement on the tasks, obligations and responsibilities of a
particular job.

Copyright © Open University Malaysia (OUM)

66 TOPIC 3 JOB ANALYSIS AND DESIGN

Multiple Choice Questions

1. A job specification determines the qualification needed for an
applicant. It plays an important role in _______________.
A. Recruitment functions
B. The functions of a job analysis
C. A job characteristics model
D. Selection function

2. Human resource management uses the data from the job analysis
to develop ____________________.
A. An attitude and behaviour survey
B. A job description and specification
C. A job analysis function and ergonomic issues
D. Employee agreement and workersÊ union

3. In a job description, the area that gives information on the location
of a certain job and to whom the work result should be reported is
known as __________________.
A. Task identity
B. Skill variety
C. Position title
D. Job specification

4. Below are the characteristics present in the job characteristics
model EXCEPT _____________________.
A. Skill variety
B. Task identity
C. Task significance
D. Group decision making

5. Those involved in the employee involvement groups must receive
training in identifying problems, analysing problems and
identifying various decision-making tools such as
__________________.
A. Planned or unplanned decisions
B. Quality groups and self-managed teams
C. Centralised and decentralised power
D. Statistical analysis and cause and effect diagrams

Copyright © Open University Malaysia (OUM)

TOPIC 3 JOB ANALYSIS AND DESIGN 67

6. On behalf of the employers, flexi time is really helpful in
_________________.
A. Forecasting employee dismissal rate
B. Recruiting and retaining employees
C. Developing job sharing
D. Developing a flexible timetable that is easy to follow

Essay Questions

1. Imagine that you are a manager in the service department. How
does the employee requirement, which has been formerly
documented, help in managing your unit?

2. Clarify how industrial engineering and ergonomics can relate to
their own advantages, and at the same time suit each other in
designing a certain job.

Job analysis and job design play an important role in the development of an
organisation.

In relation to that, organisations give specific importance to both aspects.

Through job analysis, job description and specification are developed. A
wrong analysis will produce an inaccurate description and specification.

This in turn gives a bad effect to the organisationÊs performance.

Ergonomics Job description
Functional job analysis (FJA)
Industrial engineering Job design
Job analysis
Job characteristics model Job specification

Position analysis questionnaire
(PAQ)

Copyright © Open University Malaysia (OUM)

Topic Planning and

4 Employee
Recruitment

LEARNING OUTCOMES

By the end of this topic, you should be able to:
1. Identify the advantages of combining human resource planning

with the organisation's strategic planning;
2. Describe basic approaches to human resource planning;
3. Discuss strengths and weaknesses of employee recruitment from

within an organisation; and
4. Examine the source of the external recruitment process.

INTRODUCTION

Organisations compete with one another based on the skills and abilities of their
manpower. Therefore, manpower or human resource planning becomes very
important so that present and future employees will be a competitive workforce.

Organisations need to be careful when recruiting, selecting, developing and
maintaining their employees. To fulfil the requirements when performing human
resource management functions, effective human resource planning must be
carried out.

In this topic, we will discuss two processes of human resource management,
namely, human resource planning and recruitment. Human resource planning is

Copyright © Open University Malaysia (OUM)

TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT 69

the basis for staffing in an organisation, whereas recruitment initiates the action
process in fulfilling whatever has been planned by the organisation.

4.1 HUMAN RESOURCE PLANNING

Human resource planning is a process of forecasting and preparing human
movement into, within and out of an organisation.

The aim of human resource planning is to utilise human resources effectively so
that the organisationÊs goals can be achieved. Human resource planning also
ensures that the organisation has the correct total and type of employees.

4.1.1 Importance of Human Resource Planning

The importance of human resource planning can be seen from different
perspectives as shown in Figure 4.1.

Figure 4.1: The importance of human resource planning

(a) Recruitment
Changes in the employee environment and composition require the
manager to be more involved in human resource planning. The manager
must plan a more effective recruitment method so that the aim to hire
capable employees will be achieved.

Copyright © Open University Malaysia (OUM)

70 TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT

(b) Reducing non-visible costs
Human resource requirements that are effectively planned will reduce an
organisationÊs losses. For example, a job vacancy that is immediately filled
will not disrupt the organisationÊs operations; the quality of products or
services will be maintained and the organisationÊs losses can be avoided.

(c) Employee career planning and development
Any weaknesses in human resource planning will give a negative effect to
an employeeÊs career, as the opportunities to further himself or herself in a
job and position may be limited.

(d) Effectiveness of human resource management programmes
Human resource planning is the basis for the standardisation of human
resource management functions. Take this scenario for example. An
employee from Section B has resigned, but an employee is being hired to
work in Section A even though Section A does not need a new employee.
This shows that the human resource management functions are not
performed effectively.

SELF-CHECK 4.1

Through human resource planning, an organisation plans its
employeesÊ movement into, within and out of the organisation. If you
have your own company, will human resource planning be important
to your organisation? Explain.

4.1.2 Human Resource Planning and Strategic
Planning

For the purpose of future organisational planning, a human resource manager
must combine human resource planning with the organisationÊs strategic
planning. There are three methods on how human resource planning and
strategic planning can be related.

Copyright © Open University Malaysia (OUM)

TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT 71

Figure 4.2 shows these methods.

Figure 4.2: Relationship between human resource planning and strategic planning

(a) Relating the Strategising and Implementation Process

Strategic planning enables an organisation to determine its main
objectives and develop a comprehensive plan to achieve the objectives.

Human resource planning is related to strategic planning at the beginning
and final stages. At the beginning, human resource planning is the input in
the strategising process. Human resource planning will address what can
be done. At the final stage, strategic planning and human resource planning
are related in terms of their implementation. When the strategies are set, the
management must decide on the division of source, including matters
involving structure, process and human resources.

The combination of human resource planning and strategic planning is
effective when both plans assist each other. In this matter, the top
management must understand that decisions made in strategic planning
will affect human resource planning, and vice versa. The human resource
manager is seen as part of the management team in the organisationÊs
strategic planning.

Figure 4.3 shows the relationship between the human resource planning
process and the strategic planning process.

Copyright © Open University Malaysia (OUM)

72 TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT

Figure 4.3: The relationship between the human resource planning process and the
strategic planning process

ACTIVITY 4.1

Based on Figure 4.3, between strategic planning and human
resource planning, which should come first? Discuss with your
coursemates.
(b) Determines the Types of Human Resources Present in the Organisation
The strategies planned can be related to human resources in terms of an
employeeÊs basic efficiency. These employees can be divided into four
categories based on their skills and the strategic values given to them by the
organisation. Refer to Figure 4.4 to know how an organisation determines
the types of employees.

Copyright © Open University Malaysia (OUM)

TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT 73

Figure 4.4: Determining types of employees in an organisation
Source: Adapted from Bohlander, Snell & Sherman. (2009). Managing human resources

(15th ed.). Ohio: South-western College Publishing.

(i) Employees with Core Knowledge
This refers to employees with special skills and high strategic values.
An organisation needs to give a high commitment to these employees
by giving them training and opportunities to develop. Examples of
employees with core knowledge are accountants and computer
programmers.

(ii) Employees with Traditional Tasks
This refers to employees who have skills which are not unique.
Usually, an organisation does not give much training and
opportunities for these employees to develop career wise. Examples of
these employees are salespeople and drivers.

(iii) Contract Labourers
This refers to employees who are readily available and with limited
tasks, such as clerks and furniture restorers.

(iv) Affiliates
Affiliates have unique skills but are not related to the organisationÊs
basic strategies. An organisation tries to promote a good relationship
with their affiliates and invests in the exchange of information and
knowledge. Examples of affiliates are lawyers, consultants and lab
researchers.

Copyright © Open University Malaysia (OUM)

74 TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT

(c) Ensures the Suitability and Flexibility of the Human Resource Planning
Practices
Another way of relating human resource planning and strategic planning is
by suiting the policies, programmes and practices of human resource
planning to the organisationÊs strategic requirements.

Human resource planning policies and practices must achieve two types of
adaptation, i.e. external adaptability and internal adaptability.
(i) External adaptability focuses on the relationship between business

objectives and the main human resource efforts. For example, to
achieve a low operational cost, the human resource planning policies
and practices must support the direction of low operational costs.
(ii) Internal adaptability is a human resource planning practice that is
suited between one another to produce a symbiosis relationship. For
example, job design and training focus on the same behavioural
target, such as efficiency and creativity in work.

When changes take place in the working environment, human resource
planning must be flexible and able to withstand the changes. This will
increase an organisationÊs ability to act and change in the efforts to
maintain the organisationÊs competitive advantage. Flexibility can be
achieved in two ways, i.e. coordination flexibility and source flexibility.
(i) Coordination flexibility happens through a swift resource change to

fulfil new or changed requirements. For example, through human
resource planning, the manager can predict economic trends and
competitorsÊ pace.
(ii) Source flexibility happens when employees are able to perform many
different tasks in many different ways. For example, an employee can
work as a team, or switch tasks, and is flexible in nature, in terms of
job responsibilities.

Copyright © Open University Malaysia (OUM)

TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT 75

EXERCISE 4.1

TRUE (T) or FALSE (F) Statements

1. Knowledgeable employees often get more attention from the
management in terms of commitment and training
opportunities to increase their knowledge and skills.

2. Apart from visible costs and non-visible costs, ineffective
human resource planning can cause employees to face
problems in planning their careers in the organisation.

3. Generally, contract labourers and temporary workers have a
lower strategic value of skills and knowledge compared to
knowledgeable employees and full-time employees.

4. A human resource manager must become a part of the
planning committee of an organisation.

5. Human resource planning is related to an organisationÊs
strategies when an organisation is performing strategic
analysis, strategic formation and strategic implementation.

4.1.3 Human Resource Planning Process

Through human resource planning, an organisation can forecast and prepare for
human movement into, within and out of the organisation. Therefore, the steps
involved in human resource planning are:

Environmental scanning;
Predicting manpower/human resource needs;
Predicting manpower/human resource supply; and
Balancing human resource supply and requirement.

(a) Environmental Scanning
Environmental scanning systematically detects the external forces that
influence the organisation. The external forces or factors often scanned are:
(i) Economic factors, including local and global economy.
(ii) Competitive trends, including processes, services and new
innovations.

Copyright © Open University Malaysia (OUM)

76 TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT

(iii) Technological changes, including robotic technology and office
automation.

(iv) Political and legal issues, including laws and administration.
(v) Social matters, including childcare and education
(vi) Demographic trends, including age, composition and literates.
Aside from scanning the external environment, internal scanning is also
carried out. A cultural audit is the scanning of the organisation's culture
and work life quality in an organisation.
(b) Predicting Employee Needs
Based on the human resource planning model as shown in Figure 4.5, there
are two types of approach to predict employee needs in an organisation.
The approaches are quantitative approach and qualitative approach.

Figure 4.5: Human resource planning model
Source: Adapted from Bohlander, Snell & Sherman. (2009). Managing human resources

(15th ed.). Ohio: South-western College Publishing.
(i) Quantitative Approach

Quantitative approach involves the use of statistical and mathematical
techniques. This approach is often used by professional planners. One
of the examples of the quantitative method is trend analysis.

Copyright © Open University Malaysia (OUM)

TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT 77

Trend analysis is a quantitative approach to predict labour needs
based on an index. For example, sales result (refer to Table 4.1).

Table 4.1: Predicting Human Resource Needs with the Trend Analysis Method

Year Business Factors Labour Human
(Sales in RM Productivity Resource Needs
1995 Â000)
1996 (Sales/ (Number of
1997 2351 Employees) Employees)
1998 2613
1999 2935 14.33 164
2000 3306 11.12 235
2001 3613 08.34 352
2002* 3748 10.02 330
2003* 3880 11.12 325
2004* 4095 11.12 337
4283 12.52 310
4446 12.52 327
12.52 342
12.52 355

* forecasted
figures

Source: Adapted from Bohlander, Snell & Sherman. (2009). Managing human
resources (15th ed.). Ohio: South-western College Publishing

In Table 4.1, the business factor that is taken into account in predicting
human resource needs is the total annual sales for each year. Labour
productivity is obtained by calculating the average number of sales of
an employee in the financial year. The total number of employees can
be predicted by dividing the value of business factor with labour
productivity.

Apart from total sales, other business factors that can be used to
predict human resource needs are interest rates, Gross National
Income and income expenditure.

Other quantitative methods that can be used to predict human
resource needs are regression analysis, ratio analysis and timeline
analysis.

Copyright © Open University Malaysia (OUM)

78 TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT

ACTIVITY 4.2

Refer to Table 4.1. If the sales result in 2005 was RM4,546,000 and
the labour productivity maintained as in 2004, what would be the
human resource needs in 2005?

(ii) Qualitative Approach
A qualitative approach does not involve much statistics but takes into
consideration employees' interests, abilities and aspirations in
fulfilling future staffing requirements. In this method, the human
resource manager predicts employee needs through considerations.
Among the qualitative methods often used are management
forecasting and the Delphi Technique.
Management forecasting is opinions, considerations or proposals
from supervisors, department managers, experts or those with
knowledge in human resource requirements for the organisation
in the future.
The Delphi Technique is a technique of obtaining and
summarising proposals or considerations from chosen experts on
employee needs in an organisation. This technique reduces
biasness as the final prediction is a combination of expertsÊ
predictions.

ACTIVITY 4.3

Look at the human resource planning in your workplace. Are the
management predictions and Delphi Technique used? If yes, give
an example on how the planning is implemented.

(c) Predicting Employee Supply
After an organisation predicts employee needs, it has to determine whether
the number and types of current employees will be sufficient for the future.
This process involves detecting the level of current and future supply,
whether inside or outside the organisation.

Copyright © Open University Malaysia (OUM)

TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT 79

There are various methods to detect and predict the total number of
internal employees. Among these methods are:

(i) Staffing Schedule
A staffing schedule gives a graphic display on all jobs in an
organisation, including existing number of employees involved in the
jobs. It also contains employees' needs for the future.

(ii) Markov Analysis
This analysis detects the pattern of employee movement through
various types of jobs. It shows the percentage and actual figure of
employees who still remain in a particular job, and employees who
are promoted, demoted, transferred or removed from the
organisation. Through the Markov Analysis, an employee movement
matrix can be developed and the supply of internal human resources
can be predicted. For example, refer to Table 4.2.

Table 4.2: Example of the Use of Markov Analysis to Predict Internal Human Resource
Supply

Year Categories (a) Transition Probability Matrix Out
2002 and job levels Year 2003 (expected)
.10
A1 A1 A2 B1 B2 .35
A2 .30
B1 .60 .10 .20 .00 .20
B2 .05 .60 .00 .00
.05 .00 .60 .05
.00 .00 .00 .80

(b) Predicting Supply

Year 2003 (expected)

Categories Current A1 A2 B1 B2 Out
workforce
and job levels 10
7
Year A1 100 60 10 20 0 60
3
2002 A2 20 1 12 0 0

B1 200 10 0 120 10

B2 15 0 0 0 12

Predicted supply 71 22 140 22

Based on Table 4.2, suppose A1 is salesperson, A2 is sales manager, B1 is
customer service agent, and B2 is customer service manager.

The percentage data in part a (transition probability matrix) for all
categories and job levels were obtained based on previous yearsÊ
calculations. Refer to the salesperson level (A1). The percentage is derived

Copyright © Open University Malaysia (OUM)

80 TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT

from the total number of employees that are maintained in level A1 divided
by the total number of employees in that level from the previous year.
Then, the total number of promotions to A2 in the current year is divided
by the total number of employees in level A1 from the previous year. The
same goes for the total number of employees that have moved to B1,
promoted to B2, and was removed from the organisation. The total of all
percentages must add up to 1 (or 100%). For example, at level A1= 0.60 +
0.10 + 0.20 + 0.00 + 0.10 = 1.00.

In part b (predicting supply), in the year 2002, the total number of salespeople
(A1) is 100. It is expected that in 2003, 60 people will remain as salespeople (A1),
10 people will be promoted to sales manager (A2), 20 people will be moved to
the position of customer service agent (B1), there will not be any promotion to
customer service manager (B2), and 10 people will be removed from the
company. In the year 2003, the company is expected to supply 71 salespeople, 22
sales managers, 140 customer service agents and 22 customer service managers.

ACTIVITY 4.4

Refer to Table 4.2. Say in 2002, the number of customer service
agents (B1) was 280. How many of them would be promoted to
customer service managers?

(i) Skill Inventory
Skill inventory consists of employeesÊ personal files that contain
information on education, experience, interests, skills and others. Skill
inventory enables the manager to promptly match the suitable
positions with employeesÊ backgrounds.

(ii) Replacement Chart
A replacement chart consists of a list of current position holders, and
those who have the probability to replace a position, should the
position be vacant. This chart gives information on the employeesÊ or
the managerÊs current performance and the probability of a
promotion.

(iii) Succession Planning
Succession planning identifies, develops and detects important
individuals for executive positions.

When an organisation experiences a shortage of internal sources for promotion,
or for new positions at the beginning or lower level, the manager must look at
external work source or labour supply from outside the organisation.

Copyright © Open University Malaysia (OUM)

TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT 81

There are a few external factors that influence the labour market. Among
them are demographic changes, economy, manpower level of education,
requirements for certain skills, population movement and government
policies. The unemployment rate at the national and state levels often
becomes the benchmark to detect the labour force or employee supply.

(d) Balancing Human Resource Supply and Requirement
Through human resource planning, an organisation balances between
employee need and supply. The demands towards employees are based on
trend forecasting in an organisationÊs business activities.

An offer involves determining where and how potential employees can be
found in order to fill expected vacancies. Matters become difficult if a
particular job needs specific training, and this will require more thorough
planning.

If there is a job vacancy, whether aiming at replacing an employee who has
resigned or due to the existence of a new position, an organisation must
employ a new worker. The organisation can recruit a full-time or part-time
employee, depending on its requirements.

An organisation can also re-hire employees who have resigned if the
organisation feels that it is appropriate. For short-term and temporary
actions, the organisation can encourage its employees to work overtime in
order to fulfil the organisationÊs current requirements.

When an organisation experiences a surplus of manpower, there are a few
actions that can be taken to reduce the existing number of employees, such as:

(i) Limiting the intake of new employees, unless really necessary.

(ii) Replacement of employees who have resigned or retired, or died, will
not be exercised.

(iii) Employees can be asked to share a job or task, demoted, advised to
retire, terminated from service or laid off if really necessary.

However, all actions by the organisation must follow existing regulations
and laws.

SELF-CHECK 4.2

Based on the human resource planning definition in subtopic 4.1
and your experiences in the workplace, what are the steps involved
in human resource planning?

Copyright © Open University Malaysia (OUM)

82 TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT

EXERCISE 4.2

TRUE (T) or FALSE (F) Statements

1. Various organisational factors, including competitive
strategy, technology, structure and productivity, can
influence the organisationÊs requirements towards its
employees.

2. When human resource planning shows a surplus of
workers, an organisation can use termination, job sharing,
dismissal, demotion methods, or rely on force so that
employees resign in order to achieve a balance in the
number of employees to the organisationÊs actual needs.

3. The qualitative technique of forecasting human resources
generally uses sophisticated analytical models.

4. The Delphi Technique is very suitable for an organisation
that is having staffing problems due to sudden
technological changes.

5. The unemployment rate at the national and state levels can
become the benchmark in identifying external human
resource supply.

4.2 RECRUITMENT

Recruitment is the process of identifying and encouraging potential
applicants in filling existing or future job vacancies in an organisation.

(Bohlander, Snell and Sherman, 2009)

In the recruitment process, effort is put into informing applicants about the
qualification requirements in performing a job, as well as job opportunities that
are offered by an organisation to its workers.

Recruitment that will be made, whether internally or externally, depends on the
supply of existing personnel, the organisationÊs human resource policy and
important matters involved in a particular job.

Copyright © Open University Malaysia (OUM)

TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT 83

4.2.1 Internal Recruitment

Internal candidates who are most qualified have to be identified so that no issues
will arise regarding regulations and laws, and that the organisationÊs needs and
employeesÊ aspirations can be fulfilled.

The effectiveness of internal sources can be further strengthened by giving the
opportunity to employees who feel that they are qualified to apply for the
position offered. Internal candidates who are suitable can be detected through
the human resource information system and job posting and bidding.

(a) Human Resource Information System (HRIS)
Information technology enables an organisation to create a database that
contains records and qualifications of each of its employees. A manager can
obtain information about candidates and identify those who have potential
to fill the position offered.

The existing data can also be used to forecast employeesÊ career path and
predict when and where the opportunity for promotion will be announced.
However, the data has to be updated and there has to be a systematic
method to update the data.

(b) Job Vacancy Advertisement and Recruiting
Job advertisement and vacancy mean that the management announces the
existence of a job vacancy while at the same time retains the name list of
employees who are trying for a better position. The announcement can be
made via the bulletin board, the organisationÊs bulletin, special handouts,
public address, and other appropriate methods. Sometimes announcements
can also be made through computer systems such as e-mails.

Job vacancy advertisement methods can be seen as beneficial when
employees are confident regarding the fairness of the system. It is more
effective when these methods are seen as part of the career development
programme for employees.

Among the advantages of recruiting from within the organisation are as
follows:

(i) Most organisations give priorities to existing employees to fill in
vacant positions which are higher than their current positions. The
offer to fill in a certain position or job is considered as promotion.
Through this, organisations can get back the returns from recruitment,
selection, training and development that have been initiated to their
employees.

Copyright © Open University Malaysia (OUM)

84 TOPIC 4 PLANNING AND EMPLOYEE RECRUITMENT

(ii) A promotion in an organisation can act as a reward for an employeeÊs
performance. The result is an increase in employee morale and
motivation.

(iii) By recruiting the existing employees in an organisation, costs related
to orientation and training can be reduced. This is because employees
are already familiar to the organisationÊs work environment.

(iv) In certain situations, internal recruitment can save employees from
being terminated as well as upgrade their working experience
through transfers.

(v) The performance records of employees who are offered a new job are
more reliable when compared to that of a new employee who is hired
from outside the organisation.

However, recruiting employees from within the organisation has its
weaknesses and limitations, as follows:
(i) Job requirements cannot be matched by existing employees, especially

for those higher ranking positions.
(ii) Organisations do not have the opportunity to acquire the knowledge

and expertise of employees who have been trained by other
organisations.
(iii) It is difficult for the organisation to encourage free flow of new ideas
among existing employees, as well as tackle their existing negative
attitudes.
(iv) The organisation has to face the risk of employee cloning, i.e.
employees who maintain repetitive work behaviour and attitude.

4.2.2 External Recruitment

There are many sources and places where an organisation can recruit employees
from the outside. However, the source of recruiting professional and skilful
employees such as accountants is not the same as the source of recruiting skilled
employees such as a flour mixer operator in a bread factory.

Among the sources of external recruitment are:

(a) Advertising
Advertising is the most popular source of attracting applicants. The
advertising mediums that are often used by organisations are newspapers,
radio and television commercials, posters, billboards and business journals.

Copyright © Open University Malaysia (OUM)