Businesses rely on various resources for their existence and success. But what are resources? They come in many forms, including the following
- Human resources
- Finance
- Machinery OR workstations used to make products
- Raw material and many more
The success of a business relies on many factors, including the optimal use of resources. However, of all resources, utilizing human resources is challenging because, unlike other resources, human emotions and intellect come directly into play. So, maximum care is to be taken when dealing with Human Resources.
Optimal usage of human resources
High Human Resource utilization can increase business efficiency and profits. Nevertheless, achieving it requires proper planning and execution. Organizations should first identify all existing “JOB ROLES” and the necessary “SKILLS” to fit into those Job Roles.
Job roles and skills
Every organization has employees assigned to various job roles to do their work. For example, a manufacturing plant will have numerous departments like ● Production department
- Raw material sourcing/ purchasing department
- Finance & Accounting department
- Human Resource department
- Sales/ marketing department
- Housekeeping department
- Product despatch department
- Stores department and a few others
Every department will have its Job Roles and they can be as follows ● Production manager
- Shift Supervisor
- Line in charge
- Assembler
- Fitter
- Turner
- Electrician
- Store in charge
- Finance manager
- Finance Executive
- Account Executive
- HR Manager
- HR Executive and much more similar to these
Jobs and Job Roles
Organizations may have thousands of workers, but job roles typically don’t exceed 100. For example, a production department might have 15 job roles with over 200 workers, meaning many employees can fill various roles. In this department, jobs can include:
- “Production Manager”,
- 2 or 3 “Shift Supervisors”,
- many “Fitter”, “Assembler”, “Turner” and others who wear the hats of the “Job Roles” listed above.
Similarly, the Finance department may have Jobs as mentioned below ● 1 Chief Finance Manager (CFO)
- 2 or 3 Finance Executives
- Account Executives and there could be one OR two more additional workers who fit into the Job Roles listed above.
Organizations should clearly define Job Roles, as each department will have multiple roles that many employees may fulfill to maximize human resource utilization.
Define each Job Role with the required experience and skill
Each Job Role should have its necessary skills and experience clearly defined as follows
Skills
- Production manager*
○ Primary
■ BE/ ME Production Engineering;
■ 15 years Experience in manufacturing process;
■ Exposure to advanced manufacturing practices using IoT, Robotics, AI, etc;
■ Should be a PMP-certified manager
○ Secondary
■ Experience in Electronics manufacturing is preferable;
■ Should have handled production values of Rs. 300 Crores annually; ■ Should have dealt atleast 500 workers team;
■ Should have exposure to 6 Sigma certifications;
○ Tertiary
■ Should be proficient in the following language
- Hindi, Kannada, Tamil
■ Working Knowledge of ISO 9001 Certification
*The job role mentioned above is used to illustrate the concept, thats it.
Definition of Job Role Categories
The categories are divided into Primary, Secondary, and Tertiary. Primary skills are critically important, Secondary skills are moderately important, and Tertiary skills are the least important but considered “good to have.”
Why is it important to define Job Roles this way?
Defining Job Roles is crucial for assessing employee fit, as it clarifies the necessary skills for each Job Role. A tailored software can match resumes to these Job Roles and generate SKILL GAP reports, helping individuals identify and acquire the skills they need for their desired positions.
Job Role and Responsibility
Every Job Role will have Responsibilities, which must be properly defined under the right categories – Primary, Secondary, and Tertiary. For example
Job Role: Production Manager**
- Primary Responsibility
○ Meet yearly target = 10,000 units;
○ Meet the Quality target of 99.8%. Maximum 50 unit rejection;
○ Safety 100%, no loss due to operation in unsafe environment;
○ And many more like those
○ Extensive knowledge of Microsoft Office 2024
- Secondary Responsibility
○ Manage production workers, quality staff, and warehouse staff well. ○ No production loss due to strikes etc
○ Something else
- Tertiary
○ Language spoken
** This example is used for illustrative purposes only, not a genuine real-life specification.
Prepare employee resumes in a structured format.
After defining Job Roles, it’s essential to create employees’ resumes in a similar structure with categories: Primary, Secondary, and Tertiary. This allows for a direct comparison of employee skills to Job Roles. Specialized software can match these skills, resulting in a GAP report highlighting the SKILL GAP that needs to be addressed.
The Job Descriptions (JD) are defined elaboratively, why is this exercise required?
Companies often describe job roles in a lengthy manner, making them incompatible with computer systems. This poses challenges for organizations with large employee counts, as it complicates finding employees with the right skills and hinders objective performance reviews and skill gap assessments.
Conclusion
Companies need to improve their resource utilization rates. If financial resources are not used optimally, they can be wasted on unnecessary expenditures, which can significantly impact the bottom line. Therefore, companies must maximize the returns on their investments.
When every employee understands their job well, they can perform their tasks efficiently and accurately. This contributes to the overall profitability of the enterprise..