Summary IOP4863_notes_OPEN-SYSTEM, DECISION THEORETIC VIEW OF THE EMPLOYMENT PROCESS

IOP4863_notes_OPEN-SYSTEM, DECISION THEORETIC VIEW OF THE EMPLOYMENT PROCESS OPEN-SYSTEM, DECISION THEORETIC VIEW OF THE EMPLOYMENT PROCESS → The systems approach is a perspective that emphasises relationships and interactions. → In the systems approach, the organisation is viewed as operating in continual interaction with multiple environments in an open system. → From an open systems perspective, the organisation is viewed as an input-throughput- output system. → Within the organisation is a number of interacting sub-systems that transform inputs, such as energy and information from the environment into outputs. → The outputs are then exported back into the environment in the form of products and services for consumption → Outputs reactivate the input-throughput- output cycle. Figure 1 below represents this perspective. → The employment process can be viewed as a system of sequential, interdependent decisions → In order to analyse a system, it is necessary to establish the relationship between the system and its environment. A system can be defined as “a regularly interacting or interdependent group of items forming a unified whole”, or “a set of things working together as parts of a mechanism or an interconnecting network”, and its purpose is to “attain one or more objectives”. Systems’ thinking is “the ability to see the big picture and to distinguish patterns instead of conceptualizing change as isolated events”. The organisation is such an open system which is constantly and reciprocally affected by its environment, as depicted in figure 1, and its decisions should be made in the context of this relationship. The external environment is comprised of the broad environment (political and legal forces, economic forces, sociocultural forces, technological forces, the natural environment and the global environment) which is outside of its control, and the task environment (existing and potential new competitors, suppliers, customers, regulating authorities and complementary products and services) which it can influence. Developmental trends in the external environment will directly affect an organisation. Furthermore, organisations are made up of members, groups, teams, units and departments (the internal environment), which are constantly interacting with one another and are also being affected in part and as a whole by the external environment. The employment process can be described as “a network or system of sequential, interdependent decisions” pertaining to the optimisation of the organisation’s human resources through job analysis, workforce planning, recruitment, selection, training and development, and performance management. The employment decisions and processes are linked and highly interdependent; a change in one part of the process will be felt in all other parts of the process. It is a sequential system, where information gathered from one decision is necessary to make the next decision. Foundational to the process is job analysis – virtually all employment decisions rests on this cornerstone. It involves a job description and job specification to ascertain which skills and personal characteristics are necessary for performance, with the principal aim of achieving organisational objectives. Without a job analysis, one cannot start with workforce planning, and recruitment and selection cannot follow, and as such all the other employment processes are hinged on the information derived from a job analysis. Illustrate the link between the various phases in the employment process by means of a fictional case study (Company XYZ) Job analysis and job evaluation → The first step of the employment process would be to conduct a proper job analysis for Company XYZ. → A job analysis is a systematic process of collecting and analysing information about jobs → Job analysis leads to well defined job descriptions, which entails a brief summary of the tasks to be performed, job specifications which includes the characteristics and skills required of the individual to perform the job, and job evaluations, which is a formal assessment of the value of a particular job to the organisation. → Job analysis and job evaluation are also key elements used to set up compensation packages and determine pay differentials in organisations. → It is important to note that South African legislation has made job analysis a mandatory organisational requirement Workforce planning → After all the necessary information has been obtained, Company XYZ can proceed to workforce planning. → Workforce planning is concerned with identifying both current and future skill gaps and possible solutions to fill them → An inventory of all the available knowledge, skills, abilities, and experiences of current employees from company XYZ must be compiled. → Knowledge of an organisation's current and future talent is important to decide what types of skills need to be acquired externally, and what types of skills can be found within the organisation. → A forecast of the supply of and demand for labour should then be undertaken. → Based on this information, various plans and procedures can be formulated to meet predicted staffing needs at Company XYZ. This may include training, transfers, promotions, or recruitment. Recruitment → Recruitment is concerned with identifying and attracting a large pool of suitable candidates with the required knowledge, skills, abilities, qualifications, and characteristics as determined by the job analysis → Once a staffing need is identified in one or more departments at Company XYZ, the recruitment planning process can begin. 2 Initial screening and selection → The next step in the recruitment process is the initial screening, which entails reviewing information about job applicants in order to reduce the number of applicants to those who are most suitably qualified for the vacant position at Company XYZ. → Company XYZ may use the skills inventory created during the workforce planning phase to identify current employees for the available positions. → As previously mentioned, job analysis is a crucial element in the employment process, and as far as selection is concerned, the selection process relies heavily on competent job analysis information. → Selection involves matching the individual with the job. Hence, to identify the best person for the job, it is crucial to understand the nature of the job and its inherent requirements. → Judgements based on collected information through various methods such as interviews, background and reference checks will provide the basis for hiring or rejecting applicants. Training & development → Company XYZ must consider the calibre of employees they are going to select because this will impact on training strategies such that, individuals who are less skilled will require further training to develop their competencies → Furthermore, internal talent may be identified and provided training and development opportunities to increase the internal supply of key talent. Performance management → All previous phases in the employment process affects and is affected by the performance-management process → If for example, it is found that individuals at Company XYZ lack certain skills and competencies, then job analysis may need to be revised, along with recruitment and selection strategies. → Furthermore, performance management systems at Company XYZ may help identify developmental needs of employees and provide information on who should be trained and in what areas. → Performance management systems also assist in compensation decisions such as pay increases. Implementing a successful performance management system is a requirement for the successful implementation of other employment functions including training, workforce planning, recruitment and selection, and compensation. Organisational exit → Organisational exit is when an employee leaves an organisation. Organisational exit influences and is influenced by prior phases in the employment process → If Company XYZ foresees the exit, then the company must plan for it. However, if it is unforeseen, Company XYZ's strategic plan must change to take into account the new situation.