In this chapter recommendations on what practices and processes could be developed further in the case company based on the new job descriptions are provided. Providing more detailed recommendations in how to develop these human resource practices and processes in the case company howev- er, is beyond the scope of this thesis.
The writer recommends that the new and updated job descriptions should be used strategically in the case company to make the human resource management efforts more consistent as described in the beginning of chap- ter 5. As it was mentioned in the theory part of this thesis, strategic human resource management is an undiscovered competitive factor in Finnish small and medium sized enterprises.
According to the research there is some problems with workflow in the case company. Communication problems between the employees about the timetables of customer orders is influencing customer satisfaction neg- atively in situations where several employees work on the same process at different stages without knowing clear enough what is the situation, what the previous employee has done and what has been communicated with the customer. As it was mentioned in the theory part of this thesis, the job analysis information, that is written to the job descriptions, can clarify and identify the design and structure of an organization by minimizing over- lapping and duplicating of duties, tasks and responsibilities. (Stone 2013, 167.) The writer recommends that the information found on the new and updated job descriptions is used to analyze and develop the company’s workflow in the future.
As it was found in the theory part of this thesis, the recruitment process is dependent on the information that the job analysis provides on require- ments for satisfactory performance and realistic picture of the job for the applicant. (Stone 2013, 167.) The writer recommends that the new and up- dated job descriptions should also be used for developing the recruitment process of the case company. Although in the research it was found, that all interviewed employees had realistic picture of the job before employ- ment, the information from the new job descriptions can be used to give applicants even more accurate picture of the job. The information from the
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new job description should serve as systematically documented base for recruiting that can be communicated to an outside recruiting firm or used by the owner when recruiting from his own networks. As it was mentioned in the theory part of this thesis, developing human resource management can also improve employer image of the company, which means that it is easier for the company to recruit skilled professionals (Johansson 2009, 16).
The orientation of new employees in the case company should be devel- oped, because according to the research, the orientation is mostly done by co-workers when needed. Because currently the skill and knowledge needed for performing a job are not clearly documented anywhere, the ori- entation of new employees must be based on verbal agreements and as- sumptions. In the theory part of this thesis it was mentioned that orienta- tion process needs the information from job analysis in order to be suc- cessful. Duties, responsibilities and performance standards have to be clearly defined before a new employee can be taught the job properly.
(Stone 2013, 167.) The new job descriptions created with the recommen- dations given in this thesis should provide more accurate base for orienta- tion of new employees in the future.
According to the research there are challenges in training and development practices of the case company. The employer values the employees devel- oping their skill and knowledge, and the employees’ responsibility to de- velop professional skills and knowledge is also written on both current job descriptions that are used. The owner is also worried that employees too often see their only development option being searching work from else- where instead of developing their competencies in their current jobs, and the seasonal nature of bicycle business creates a challenge where it is dif- ficult to provide motivating tasks for all the sales persons in winter time.
The employee interview answers indicate that there is not much training offered, and not all employees are committed or have access to actively developing their skills and knowledge. In the theory part of this thesis it was mentioned that information from job analysis about abilities, skills and knowledge needed for satisfactory job performance can also be used for designing and developing of training and development programs. From the job analysis information, the managers are able to determine whether the employee requires training and what would be the objective of the training. (Stone 2013, 168.) The writer recommends that the information from the new job descriptions is used in the case company to clarify base for training and development of skills and knowledge for the employees.
The information from the new job analysis process should also be used to increase the employee’s awareness of the training and development oppor- tunities that the employer can offer, so that the employees would not see their only development opportunities being searching work elsewhere. The training and development that is needed should be conducted mostly dur- ing the winter time to provide motivating tasks for the employees during the quiet season.
The writer suggests that the information documented on the standards of performance – section of the new job description form is used to develop
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performance appraisal practices in the case company. In the theory part of this thesis it was found that one of the main uses of a job description is that it clarifies what the employee is expected to accomplish. Thus, it can be used as a groundwork for agreement between the employer and the em- ployee about the expected job performance results. (Arthur 2005, 83-84.) According to the research, the employees of the case company do not know how their performance in work is appraised. On the other hand, the owner states that performance appraising is an ongoing process that is happening all the time. The performance appraisal is currently based on the success of the company, and the owners’ own perception of the work quality and customer satisfaction. The writer suggests that the new job de- scriptions should be used in the case company as groundwork for agree- ment between the employer and the employee about the expected job per- formance results, so that the base for performance appraisal would be more clearly documented, and the employees would be more aware of it since they are recommended to be involved in the creation process of the new job descriptions from the beginning.
Finally, the writer recommends that after the new job descriptions have been created, the information they provide should be used to research and develop the design of the case company’s jobs. As it was mentioned in the theory part of this thesis, every one of the employee motivation theories reviewed in chapter 2.6 suggest that employee motivation and perfor- mance can be increased by job design. A well-designed job combines managements requirement for efficiency and employees need for job satis- faction to support company in achieving its strategic objectives. A poorly designed job on the other hand may lead to low productivity, high turno- ver of employees, sabotage, absenteeism and unionization. (Stone 2013, 186; Gomez-Mejia et al. 2007, 57.) Basic understanding of work motiva- tion is important to the managers since motivated employees are more likely to perform better and reach goals than those who lack motivation.
(Gomez-Mejia et al. 2007, 54.) The writer recommends that the common approaches to the job design, such as the job rotation, job enlargement, job enrichment and team-based job design, that are review in the theory part of this thesis are researched together with the information from the new job descriptions in the case company to find ways to increase employee motivation and performance to create competitive advantage for the com- pany.
6 CONCLUSION
This research is a thesis report for Häme University of Applied Sciences for a Bachelor’s Degree in Business Administration. The research is con- ducted for R-Tech Suspension Oy. The company is a bicycle distribution and retail company operating in Tampere Finland. (Rtech 2018.)
The reason for this selecting this topic for thesis work was the company’s need to clarify the division of tasks and responsibilities among the em- ployees. The purpose of this thesis is to find out whether the company
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would benefit from more accurate job descriptions and to provide sugges- tions on how the company can use job descriptions to become more effec- tive. There are four objectives for this research:
• Review of multiple sources to discover theoretical information that is relevant to this project
• Research of current situation in commissioning company
• Analysis of situation. In this step, the situation in Rtech is analysed carefully
• Providing suggestions on whether developing job descriptions is an effective use of the company’s resources, and if so, how to develop the job descriptions at Rtech to gain competitive advantage for the company.
The research question for this thesis project is:
How can job descriptions be developed at R-Tech Suspension Oy in order to make the company more effective?
The research methods that are used to answer the research question in this thesis project are qualitative methods: Literature review, interviews and documentary analysis.
Human Resource management consists of all of the intentional manage- ment activities that affect people working in an organization. Human re- source management process includes recruiting, orienting and training, appraising and compensating as well as health and safety, fairness con- cerns and labor relations. (Viitala 2016, 3; Dessler 2015, 36.) The goal of human resource management is to make sure that there is the right amount of people in the right place with the right skills, committed and well-being working in an organization in order to make the organizations business strategy possible (Viitala 2016, 3). New products, services and processes are created and developed by the innovative employees of the company.
More and more companies define human recourses as their most important success factor and skills and knowledge as their most important source of competitive advantage. Considering this, it is vital for any company to get competent employees committed to continuously developing the compa- ny’s functions. Furthermore, for many companies’ the human recourses are the biggest financial investment. This is the case for example in most service industries. (Viitala 2007, 10.)
Human resource management in small companies is different to large or- ganizations because of their size, informality, priorities and the nature of entrepreneurship (Dessler 2015, 592). A small company does not neces- sarily have a unit or even a single employee specialized in human resource management. In many cases the owner or CEO is in charge of human re- source management in addition to their other duties and responsibilities (Johansson 2009, 33). In small companies, a clearer definition of tasks, re-
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sponsibilities and authorities and development of leadership skills would lead to better work quality and efficiency as well as better employee well- being (Business Finland 2017).
The importance of the job analysis as the base of human resource man- agement practices in an organization is agreed widely in human resource management literature. The job analysis is a basic human resource man- agement function that focuses on the content, requirements and context of the job (Stone 2013, 164). The job analysis is the base for objective hiring, training, evaluation and supervising employees. It can also improve the ef- ficiency of the company. (Chow & Kleiner 2002, 121-123.) According to Prescott (2012, 45), the job analysis is the foundation and operating sys- tem of all human resource management.
Collecting information for the job analysis can be done different ways, such as interviews, questionnaires, observation and diaries. (Dessler 2015, 125.) Using a combination of different job analysis methods is likely to provide the best results. Used alone, none of the methods is likely to pro- vide comprehensive information about the job. The decision about which methods to use, should be based on the purpose that the job analysis in- formation is needed. (Stone 2103, 179.) The two common approaches to a job analysis are a job-oriented and employee-oriented approach. The job- oriented approach is focused on the tasks, responsibilities and duties of the job. In other words, it is focused on what gets done. The employee- oriented approach focuses on the employees’ behavior requirements and how the job is done. (Stone 2013, 165.)
The way work is organized to meet the company’s goals on producing products and services is referred to as work flow. The process of examin- ing how work adds or creates value to business processes as it moves through the organization is called work-flow analysis. Every job in a com- pany should add value to the work they receive before moving the work to the next worker or customer. It is common that work flow analysis reveals some steps or even whole jobs that could be eliminated, simplified or combined to make the organization more effective. (Gomez-Mejia et al.
2007, 49-50 & 58.)
The division of tasks in an organization that are assigned to an individual job holder is called the job design. The job design contributes to employee motivation and satisfaction as well as organizational goals. (Prescott 2012, 288.)
There are five common approaches to the job design: Work simplification, job rotation, job enlargement, job enrichment and team-based job design (Gomez-Mejia et al. 2007, 57).
Motivational theories explain why certain type of work is more motivating and satisfying to employees than other. A basic understanding of work motivation is important to managers since motivated employees are more likely to perform better and reach goals than those who lack motivation.
(Gomez-Mejia et al. 2007, 54.) In this thesis, four established motivation
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theories are examined: The Job Characteristics Model proposed by Hack- man and Oldman, Frederick Herzberg’s two-factor theory, Work adjust- ment theory and Edwin Locke’s goal-setting theory
The job description is a written document outlining the responsibilities, duties, tasks, contributions, behaviors, qualifications and outcomes for a job in an organization. In many organizations the job description is used only during the hiring process and discarded as a managerial tool. The job description can however, provide an organization with competitive ad- vantage when used strategically. (Samuel 2016, 8; Gomez-Mejia, Balkin
& Cardy 2007, 65.) An organizations every position should have a job de- scription. A job description can be generic or specific. A generic job de- scription may cover several similar positions in a company and they are written in broad and general terms. A specific job description is used for a position that has unique responsibilities that separate it from other similar positions in the company. (Arthur 2005, 83-84.) A job description can be used for a number of purposes throughout the employment process.
A well-formed job description has many benefits to a company:
• Makes job functions and reporting relationships more clear
• Enhances smooth administration on wages
• Enhances the entire management process of evaluating employee performance
• Makes the human resource management more simple (Chow & Kleiner 2002, 125.)
• Helps to identify essential duties and clarifies what the employee is expected to accomplish
• Helps with recruiting, job posting, interviewing and orienting (Arthur 2005, 83-84.)
No standard job description format exists, but most job descriptions in- clude sections that cover: job identification, job summary, responsibilities and duties, authority of incumbent, standards of performance, working conditions and job Specification.
(Dessler 2015, 134.)
The duties and responsibilities should be arranged in logical and sequen- tial order so that the most time consuming or responsibility carrying tasks are mentioned first. Separate duties should be stated concisely and clearly, and essential and marginal duties identified. It is best to use exact and spe- cific language. Ambiguous words and generalizations should be avoided, as well as technical language. It is best to begin sentences with an action word that is descriptive of a specific function such as “creates.” This way the focus is on what the employee does instead of the procedure that is used. (Arthur 2005, 84-85.)
Every task does not need to be listed in a job description. The occurrence frequency of each duty or an estimated percentage of time devoted to each duty can be written on a column next to the list of tasks. It is also better to
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avoid a narrative paragraph from when listing duties to a job description, and rather list them individually and concisely. (Arthur 2005, 84-85.) Referring should be done to positions or titles. The job should be de- scribed objective and accurate, by using the present tense. Instead of ex- plaining the used procedure, it is better to stress what the employee does.
(Arthur 2005, 84-85.)
Standards of performance that the company expects from the job holder can be included in the duties and responsibilities section of a job descrip- tion. (Dessler 2015, 138.)
Job specification is a written document that lists the human traits and qual- ifications needed to perform a job effectively. (Dessler 2015, 141).
The criticism towards job descriptions found in literature is mainly related to the conventional task-based job descriptions. Prescott (2012, 45) sug- gests that the increasing problem with the job descriptions is that they are out of touch with the modern working world. Job descriptions tend to fo- cus on volatile work activities instead of clarifying the measurable end re- sults of the work. Traditional job descriptions are only suitable for repeti- tive work and ignore the dynamics of the job. Job description are also crit- icised for being only suitable for bureaucratic, predictable and stable or- ganizations. This critique is especially targeted to the job descriptions of problem solving and managerial jobs where incumbents are able to signif- icantly influence the way their work activities are conducted. (Stone 2013, 175-176.) Task-based job descriptions are too focused on how the job has been done in the past, and do not take in to account the employee’s poten- tial to contribute to the company in ways that are not described currently.
(Hawkes & Weathington 2014, 194.)
The empirical part of this thesis is done by researching the case company’s practises in using job descriptions and human resource practises in gen- eral. The research includes interviews with the owner and the employees, as well as research of the current written job description documents The small size of the case has some benefits concerning human resource management. It can be concluded from the research that many human re- source practices and processes in the company function relatively well based on verbal agreements and without systematic approach to docu- menting them. The case company’s human resource management practices that are researched: Job descriptions, performance appraisal, recruiting, orientation, training and development of employees are all mostly infor- mal, inconsistent and based on verbal agreements which makes developing them challenging. The owner states in his interview that human resource management is the most challenging part of managing a small business.
The written job description documents are not used for anything at the moment. The employees are also not very well aware of their job descrip- tions. The current job descriptions are also not up to date, and there is no information on the job description documents about when they were up-