ASSESSMENT & REVIEW OF CURRENT HUMAN RESOURCES OF A COMPANY
Human resource planning begins by developing a profile of the current status of human resources. Basically, this is an internal analysis that includes an inventory of the workers and skills already available within the organization and a comprehensive job analysis. A human resource inventory report includes a list of names, education, training, prior employment, current position, performance ratings, salary level, languages spoken, capabilities and specialized skills for every employee in the organization. This input is valuable in determining what skills are currently available in the organization. It not only acts as a guide for considering new pursuits for the organization but also has value in other activities, such as selecting individuals for training and executive development, for promotion and for transfers. Some organizations also generate a separate executive inventory report which covers individuals in middle and top management positions. This adds a new dimension to the planning activity by highlighting those positions that may become vacant in future due to retirements, promotions, transfers or resignations. The individual managerâ€™s inventory can be placed against the list of positions to determine if there is sufficient managerial talent to cover both the expected and unexpected vacancies.
While the human resources inventory is concerned with telling us what individual employees can do, job analysis defines the jobs within the organization and the behaviors necessary to perform these jobs. Job analysis is the systematic collection and recording of information concerning the purposes of a job, its major duties, the conditions under which it is performed and the knowledge, skills and abilities needed to perform the job effectively. The results of job analysis are often used to develop job descriptions
A job description is a statement of the duties, working conditions and other significant requirement associated with a particular job. Job descriptions are frequently combined with job specifications, which is a statement of skills, abilities, education and pervious work experience that are required to perform a particular job. Though the formats for job descriptions and job specifications vary, the information is typically used for activities that require a solid understanding of the job and the qualifications necessary for performing it. In essence, the assessment of the organizationâ€™s current human resources situation based on human resource inventory and a thorough job analysis identifies where people are by taking a close look at the jobs currently being done and the people doing those jobs.
Demand for human resource is a result of demand for the organizationâ€™s products or services. Based on the estimate of total revenue, the organization can attempt to establish a number and mix of human resources needed to reach these revenues. As a result, before we can estimate future human resources needs, some formal statement is required of what course the organization plans to take in the future, defined in terms of sales or revenue.