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Please click here to access the new HRM Failures case associated with this chapter. HRM
Failures features real-life situations in which an HR conflict ended up in court. Each case
includes a discussion questions and possible answers for easy use in the classroom. HRM
Failures are not included in the text so that you can provide your students with additional
real-life content that helps engrain chapter concepts.
1.1 Chapter Summary
The first section of this chapter discusses the analysis of work process within a given work unit.
Having provided an understanding of the broader context of jobs, the chapter discusses the need
for and usefulness of both job analysis and the techniques for performing job analysis. Finally,
the chapter concludes by presenting the various approaches to job design to provide managers
with an understanding of the costs and benefits of emphasizing different characteristics of jobs
when designing or redesigning them.
1.2 Learning Objectives
After studying this chapter, the student should be able to:
1. Analyze an organization’s structure and work-flow process, identifying the output,
activities, and inputs in the production of a product or service.
2. Understand the importance of job analysis in strategic and human resource management.
3. Choose the right job-analysis technique for a variety of human resource activities.
4. Identify the tasks performed and the skills required in a given job.
5. Understand the different approaches to job design.
6. Comprehend the trade-offs among the various approaches to designing jobs.
1.3 Extended Chapter Outline
Note: Key terms appear in boldface and are listed in the "Chapter Vocabulary" section.
1.4 Opening Vignette:
1.5 Changes in Organizational Structure and Workflow Promote GM Revival
GM faced some tough times and tougher decisions in the summer of 2009. Attempting to
recover from bankruptcy, GM needed to alter its organizational structure to reduce redundancy,
waste, and intramural feuds and its workflow if it had hopes of survival. The result was a
reduction in the number of supported platforms from 30 to 14 and the number of models from 86
to 49. The financial results were equally astounding.
Discussion Question
1. Explain the resurgence of manufacturing in the United States, and then, offer some ways that
Human Resource Managers can play a significant role in continuing and perhaps even
accelerating this resurgence.
The reason that manufacturing is making a comeback in the United States is because U.S.
manufacturing companies are making good use of their existing resources, particularly
There are many ways that HR professionals can play a part in this comeback. HR
professionals can help to identify talent within the company, and they can offer and support
I. Introduction—Designing the work to be performed is one of the first tasks of
strategy implementation discussed in Chapter 2. The way a firm competes can have a
profound impact on the way tasks are organized, and the way the tasks are designed may
provide the company with a competitive advantage. Also, the way jobs are designed can,
in fact, affect company work-unit performance. There is no “one best way” to design
jobs and structure organizations. The organization needs to create a fit between its
environment, its competitive strategy and philosophy on the one hand, with its job and
organizational design on the other. Job analysis and job design are interrelated.
1.5.1.1.1.1.1.1
1.5.1.1.1.1.1.2 II. Work-Flow Analysis and Organization Structure (Workflow analysis, analyzing work
outputs, processes, and inputs; see text Figure 4.1)
-work-flow design – the process of analyzing the tasks necessary for the
production of a product or service, prior to allocating and assigning these
tasks to a particular job category or person.
-organization structure – the relatively stable and formal network of vertical
and horizontal interconnections among jobs that constitute the organization.
A. Work-flow Analysis
The workflow process is useful because it provides a means for the managers to
understand all the tasks required to produce a high-quality product as well as the
skills necessary to perform those tasks.
1.5.1.1.1.1.1.2.1
1.5.1.1.1.1.1.2.2 B. Analyzing Work Outputs
1. Work outputs are products of, or services provided by, a work unit, and
Examples: A jet engine blade, a forklift or a football jersey.
2. Once outputs have been identified, it is necessary to specify the standards
3. ProMES (productivity measurement and evaluation system) is a
C. Analyzing Work Processes
1. Work processes are the activities that members of a work unit engage into
produce a given output.
Example: Work processes needed to produce an automobile include
assembly, painting, and so forth.
Every process consists of operating procedures that specify how things
should be done to develop the product or service.
Competing Through Technology:
Robots Attack Okun’s Law
Okun’s Law, named after economist Arthur Okun, states that there is a robust and steady
relationship between productivity, on the one hand, and unemployment rates on the other hand.
In general, the formula expressed in this law suggests that every 3% gain in output should reduce
the unemployment rate by 1%. Recent unemployment data indicate that this trend is no longer
accurate. One potential reason – the introduction of robots into the mix.
Discussion Question
1. Can you think of other common jobs that exist today that would have been inconceivable to your
parents or grandparents when they were your age? Are these new lines of work relatively high
paying jobs or low paying jobs??
Student responses may vary, but look for the demonstration that students have an
understanding of the types of work robots may be involved in as well as the new types of
D. Analyzing Work Inputs
1. Work inputs are the "ingredients" that go into the work processes and can
be broken down into three categories (text Figure 4.1).
a. Raw materials consist of the materials, data, and information that will
be converted into the work unit's products.
III. Organization structure – provides a cross-sectional overview of the static relationship
between individuals and units that create the outputs.
A. Two of the most important dimensions of structure are centralization and
departmentation.
1. Centralization is the degree to which authority resides at the top of the
organizational chart.
2. Departmentalization refers to the degree to which work units are grouped
based upon functional similarity or similarity of workflow.
B. Two types of Structural Configuration of organizational structure tend to emerge
in organizations:
1. A functional structure (See Fig. 4.2 in the text) employs a functional
2. A divisional structure (see Figures 4.3, 4.4, 4.5 in the text) employs a
workflow departmentation and low levels of centralization. Because of
Competing Through Globalization:
Is it Time to Slow Down Fast Fashion?
Low cost, high speed, and flexibility – the primary means of achieving competitive advantage
today are illustrated well in this case of “fast fashion”. However, some believe that the only way
to achieve these ends in this industry is though exploitation of workers in Third-World labor
markets. Plant managers in these emerging economies often attempt to take short-cuts in safety
measures when rapid changes in production demands are made in order to maintain profitability.
Nike recently publically claimed that when these factories are asked to make such changes in
style and production runs midstream that it results in one of the largest contributors to overtime
and accidents.
Discussion Question
1. How does one balance the potential for backlash against Western firms that outsource work to
countries that exploit workers against the potential cost savings associated with outsourcing to
these countries?
Student responses may vary, but look for an indication that they are thinking in terms of
2. In underdeveloped countries that have extremely high rates of unemployment, how does one
balance the need to provide workers better working conditions against the potential for losing all
of those jobs to workers in more developed countries?
Student responses may vary, but look for an indication that they are thinking about making
positive changes to the economies in these countries – not only economic change, but change in
terms of recognizing the need to value human lives. As the Commerce Minister in Bangladesh
indicated, having an entire country branded as not caring about workers does ot help anyone in
the long run.
C. Structure and the Nature of Jobs
1. Jobs in functional structures need to be narrow, highly specialized, and
people need to work alone.
2. Jobs in divisional structures need to be more holistic, team-based structure
with greater decision making authority.
IV. Job analysis – the process of getting detailed information about jobs.
A. The Importance of Job Analysis
1. Job analysis has been called the building block of everything that the
personnel department does.
2. Some of the human resource activities that use job-analysis information
includes selection, performance appraisal, training and development, job
evaluation, career planning, work redesign, and human resource planning.
-Work redesign – a firm will seek to redesign work to make it more
efficient or effective.
-Human resource planning – planners analyze an organization’s human
resource needs in a dynamic environment and develop activities that
enable the firm to adapt to change.
-Selection – identifying the most qualified applicants for employment.
-Training – trainer identifies the tasks performed in the job.
-Performance appraisal – getting information about how well each
employee is performing.
-Career planning – matching an individual’s skills and aspirations with
opportunities that are or may become available in the organization.
-Job evaluation – assessing the relative dollar value of each job to the
organization to set up internally equitable pay structures.
B. The Importance of Job Analysis to Line Managers
1. Managers must have detailed information about all the jobs in their work
group to understand the work-flow process.
2. Managers need to understand the job requirements to make intelligent
hiring decisions.
3. Since the manager is responsible for ensuring that each individual is
performing his or her job satisfactorily, the manager must clearly
understand the tasks required in every job.
C. Job Analysis Information
1. A job description is a list of the tasks, duties, and responsibilities (TDRs)
that the job entails. (Text Table 4.1)
2. A job specification is a list of the knowledge, skills, abilities, and other
characteristics (KSAOs) that an individual must have to perform the job.
Example: Job specifications for an employment assistant would include:
(1) a four-year college degree with major course work in human resources
or an equivalent combination of experience, education, and training; (2)
considerable knowledge of principles of employee selection and
assignment of personnel; (3) the ability to express ideas clearly in written
and oral communication; (4) the ability to independently plan and organize
one's own activities.
Ethics in Action:
Running Right While Running Coal
Coal company Massey Energy has the worst worker fatality record of any coal company in the
United States. This is partly related to an organizational culture that became accepting of
wrongdoing and forsaking worker safety for lower costs and higher profits. New leadership
through being acquired may change this situation. The company’s new owner, Alpha Natural
Resources has vowed to run the company in a responsible way and to lead by example.
Discussion Question
1. In what ways, other than higher than average turnover, does having an unsavory ethical
reputation harm an organization’s competitive advantage?
Student responses may vary, but look for an indication that they are thinking in terms of a
3. Sources of Job Analysis Information
a. In general, it will be useful for the manager to go to the job
b. Managers should ask others familiar with the job, such as the
c. Research has shown greater agreement between supervisors and
subordinates when rating general job duties than when rating
d. Research is somewhat inconclusive about the relationship between the
performance level of the job analyst and the job-analysis
1.5.1.1.1.1.1.2.3
1.5.1.1.1.1.1.2.4 D. Job Analysis Methods
1. Position Analysis Questionnaire (PAQ)
a. The Position Analysis Questionnaire (PAQ) is a standardized
job-analysis questionnaire containing 194 items representing work
behaviors, work conditions, or job characteristics that are
generalizable across a wide variety of jobs.
b. The 194 items are organized into six sections, and the job analyst
is asked to rate each item on six scales. A computer program
generates a job report based on the ratings. The six sections are:
- information input
- mental processes
- work output
- relationships with other persons
- job context
-other characteristics
c. Research has indicated that the PAQ measures 13 overall
dimensions (text Table 4.2). Knowing the dimension scores
provides some guidance regarding the types of abilities that are
necessary to perform the job.
d. One of the main problems with the PAQ is that it requires the
reading level of a college graduate to complete the questionnaire.
2. The Occupational Information Network (O*NET)
a. The U.S. Department of Labor replaced the Dictionary of
Occupational Titles in 1998 with O*NET because jobs in the new
economy were so qualitatively different from jobs in the old
economy, and the DOT no longer served its purpose.
b. Instead of relying on fixed job titles and narrow task descriptions,
the O*NET uses a common language that generalizes across jobs
to describe the abilities, work styles, work activities, and work
context required for various occupations that are more broadly
defined.
c. Although it is still being developed, the O*NET is already being
used by many employers and employment agencies. It is also
designed to help job seekers.
1.5.1.1.1.1.1.2.5 E. Dynamic Elements of Job Analysis
Although we tend to view jobs as static and stable, in fact, jobs tend to change and
evolve over time. The job analysis process must also detect changes in the nature
of jobs. Advances in technology have made it hard to keep up with some of the
major changes in jobs, and automation has led to the elimination of certain jobs or
the offshoring of tasks or even shifting the tasks from the worker to the customer.
V. Job design is the process of defining the way work will be performed and the tasks that
will be required in a given job. Job redesign refers to changing the tasks or the way
work is performed in an existing job. Jobs can also be characterized on different
dimensions of job design (Table 4.3 in the text).
1.5.1.1.1.1.1.2.6 A. Mechanistic Approach
1. The mechanistic approach to job design has its roots in classical industrial
engineering and focuses on designing jobs around the concepts of task
For more information on O*NET, visit http://online.onetcenter.org/
specialization, skill simplification, and repetition.
2. Scientific management, one of the earliest mechanistic approaches, sought
to identify the one best way to perform the job through the use of
time-and-motion studies.
3. The scientific management approach was built upon in later years and
resulted in a mechanistic approach that calls for the job to be designed
very simply. The organization reduces its need for high-ability
individuals, and workers are easily replaceable (a new employee can be
trained to perform the job quickly and inexpensively).
1.5.1.1.1.1.1.2.7
1.5.1.1.1.1.1.2.8
1.5.1.1.1.1.1.2.9 B. Motivational Approach
1. The motivational approach to job design focuses on the job characteristics
that affect the psychological meaning and motivational potential, and it
views attitudinal variables as the most important outcomes of job design.
2. The prescriptions of the motivational approach focus on increasing job
complexity through job enlargement, job enrichment, and the construction
of jobs around sociotechnical systems.
3. A model of how job design affects employee reaction is the “Job
Characteristics Model”.
a. According to this model, jobs can be described in terms of five
characteristics: skill variety, task identity, task significance,
autonomy, and feedback.
b. These five job characteristics determine the motivating potential of
a job by affecting three psychological states: experienced
meaningfulness, responsibility, and knowledge of results.
c. When the core job characteristics are high, individuals will have a
high level of internal work motivation, higher quantity and quality
of work, and higher levels of job satisfaction.
d. Much of the work on job enlargement, job enrichment, and
self-managing work teams has its roots in the motivational
approach to job design (Table 4.3 in the text). However, most of
the research shows these interventions increase employee
satisfaction and performance quality, but not necessarily increase
quantity of performance.
Example: Alston & Bird of Atlanta have designed the paralegal job
so that it entails a great deal of autonomy and clear communication
channels between attorneys and paralegals. The result: In an
industry where turnover among paralegals averages 20 percent per
year, turnover at Alston & Bird averages 7 percent per year. The
firm also receives 15,000 applications for the 200 positions
available per year.
1.5.1.1.1.1.1.2.10 C. Biological Approach
1. The biological approach to job design comes primarily from the sciences
of biomechanics (the study of body movements), and it is usually referred
to as ergonomics, or the concern with examining the interface between
individuals' physiological characteristics and the physical work
environment. The goal of this approach is to minimize the physical strain
on the worker by structuring the physical work environment around the
way the body works.
Example: At Toyota's high-tech Tahara No. 4 line, new electric vehicle
carriers were installed to minimize stress on the workers' bodies. They
adjust a car's height at every workstation. Toyota reports a major
reduction in turnover during the plant's first year of operation.
2. The biological approach focuses on outcomes such as physical fatigue,
aches and pains, and health complaints.
3. The biological approach has been applied in redesigning equipment to
reduce the physical demands so women can perform the jobs and to reduce
occupational illnesses such as carpal tunnel syndrome.
1.5.1.1.2
1.5.1.1.3 D. Perceptual-Motor Approach
1. The perceptual-motor approach to job design has its roots in the
human-factors literature and focuses on human mental capabilities and
limitations. The goal is to design jobs in a way that ensures that they do
not exceed people's mental capabilities.
2. This approach generally tries to improve reliability, safety, and user
reactions by designing jobs in a way that reduces the information
processing requirements of the job.
3. This approach, similar to the mechanistic approach, generally has the
effect of decreasing the job's cognitive demands.
4. Recent changes in technological capabilities hold the promise of helping
to reduce job demands and errors, but in some cases, these developments
have actually made the problem worse. This is referred to as “absence
presence”
Example: An example of absence presence is talking on a cell phone
while driving a car.
E. Trade-offs among Different Approaches for Job Design
1. One research study found job incumbents expressed higher satisfaction
with jobs scoring highly on motivational approach. However, the
motivational and mechanistic approaches were negatively related,
suggesting that designing jobs to maximize efficiency is likely to result in
a lower motivational component to those jobs.
2. Jobs redesigned to increase the motivating potential result in higher costs
in terms of ability requirements, training, and compensation.
3. In designing jobs, it is important to understand the trade-offs inherent in
focusing on one particular approach to job design.
