ch 10 onwards

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1Human ResourceHuman Resource

ManagementManagement

Managing CareersManaging Careers



The Basics Of Career ManagementThe Basics Of Career Management

Career

Management

Career

Planning

Career

Development

Employees¶

Careers



TABLE Traditional Versus Career Development Focus

HRActivity Traditional Focus Career Development Focus

Human

resource

planning

Analyzes jobs, skills, tasks²

present and future. Projects

needs. Uses statistical data.

Adds information about individual

interests, preferences, and the like to

replacement plans.

Recruiting and

placement

Matching organization¶s

needs with qualified

individuals.

Matches individual and jobs based on

variables including employees¶ career

interests and aptitudes.

Training and

development

Provides opportunities for

learning skills, information,

and attitudes related to job.

Provides career path information.

Adds individual development plans.

Performance

appraisal

Rating and/or rewards. Adds development plans and individual

goal setting.

Compensation

and benefits

Rewards for time, productivity,

talent, and so on.

Adds tuition reimbursement plans,

compensation for non-job relatedactivities such as United Way.

Source: Adapted from Fred L. Otte and Peggy G. Hutcheson, Helping Employees Manage Careers (Upper Saddle River,

NJ: Prentice Hall, 1992), p. 10, and www.ge.com.cn/careers/career_management.html. Accessed May 18, 2008.



TABLE Roles in Career Development

Individual

� Accept responsibility for your own career.

� Assess your interests, skills, and values.

� Seek out career information and resources.

� Establish goals and career plans.

� Utilize development opportunities.

� Talk with your manager about your career.

� Follow through on realistic career plans.

Employer

� Communicate mission, policies, and procedures.

� Provide training and development opportunities, including workshops.

� Provide career information and career programs.

� Offer a variety of career paths.

� Provide career-oriented performance feedback.

� Provide mentoring opportunities to support growth and self-direction.

� Provide employees with individual development plans.

� Provide academic learning assistance programs.

Manager

� Provide timely and accurate performancefeedback.

� Provide developmental assignments and

support.

� Participate in career development

discussions with subordinates.

� Support employee development plans.

Source: Adapted from Fred L. Otte and Peggy G. Hutcheson, Helping Employees Manage Careers (Upper Saddle River, NJ: Prentice Hall, 1992),

p. 56; www.ge.com.cn/careers/career_management.html; and www_03.ibm.com/employment/us.cd_career_dev.shtml. Accessed May 18, 2007.



Identify Your Career StageIdentify Your Career Stage

�� Growth StageGrowth Stage�� Exploration StageExploration Stage

�� Establishment StageEstablishment Stage

Trial substageTrial substage

Stabilization substageStabilization substage

Midcareer crisis substageMidcareer crisis substage

�� Maintenance StageMaintenance Stage

�� Decline StageDecline Stage



The Employer¶s Role inThe Employer¶s Role in

Career DevelopmentCareer Development

Realistic Job

Previews

Challenging

First Jobs

Networking and

Interactions

Mentoring

Career-Oriented

Appraisals

Job

Rotation

Employer¶s

Role



Managing Promotions and TransfersManaging Promotions and Transfers

Decision 1:

Is Seniority or Competence

the Rule?

Decision 4:

Vertical,Horizontal, or

Other?

Decision 2:

How ShouldWe Measure

Competence?

Decision 3:

Is the ProcessFormal or

Informal?

Making Promotion

Decisions



Career Management andCareer Management and

Employee CommitmentEmployee Commitment

Old Contract:³Do your best and be loyal to us,

and we¶ll take care of your career.´

New Contract:³Do your best for us and be loyal

to us for as long as you¶re here,

and we¶ll provide you with the

developmental opportunities you¶ll

need to move on and have a

successful career.́

Comparing Yesterday¶s and Today¶s

Employee-Employer Contract



Career Management andCareer Management and

Employee Commitment (cont¶d)Employee Commitment (cont¶d)

Career

DevelopmentPrograms

Career-

OrientedAppraisals

Commitment-

oriented career

development efforts



1Human ResourceHuman Resource

ManagementManagement

Establishing Strategic Pay Plans & BenefitsEstablishing Strategic Pay Plans & Benefits

& Services& Services



Basic Factors in DeterminingBasic Factors in Determining

Pay RatesPay Rates

Direct Financial

Payments

Indirect Financial

Payments

Employee

Compensation



Corporate Policies, Competitive Strategy,Corporate Policies, Competitive Strategy,

and Compensationand Compensation

�� Aligned Reward StrategyAligned Reward Strategy

The employer¶s basic task:The employer¶s basic task:

To create a bundle of rewardsTo create a bundle of rewards²²a total reward packagea total reward package²²

that specifically elicits the employee behaviors that the firmthat specifically elicits the employee behaviors that the firm

needs to support and achieve its competitive strategy.needs to support and achieve its competitive strategy.

The HR or compensation manager along with topThe HR or compensation manager along with top

management creates pay policies that are consistentmanagement creates pay policies that are consistent

with the firm¶s strategic aims.with the firm¶s strategic aims.



TABLE Developing an Aligned Reward Strategy

Questions toAsk:

1. What must our company do to be successful in fulfilling its

mission or achieving its desired competitive position?

2. What are the employee behaviors or actions necessary to

successfully implement this competitive strategy?

3. What compensation programs should we use to reinforce thosebehaviors? What should be the purpose of each program in

reinforcing each desired behavior?

4. What measurable requirements should each compensation

program meet to be deemed successful in fulfilling its purpose?

5. How well do our current compensation programs match these

requirements?

Source: Adapted from Jack Dolmat-Connell, ³Developing a Reward Strategy that Delivers Shareholder

andE

mployee Value,´ Compensation and Benefits Review , March±A

pril 1999, p. 51.



Compensation Policy IssuesCompensation Policy Issues

��Pay for performancePay for performance

�� Pay for seniorityPay for seniority

�� The pay cycleThe pay cycle

�� Salary increases and promotionsSalary increases and promotions

�� Overtime and shift payOvertime and shift pay

�� Probationary payProbationary pay

�� Paid and unpaid leavesPaid and unpaid leaves

�� Paid holidaysPaid holidays

�� Salary compressionSalary compression

�� Geographic costs of living differencesGeographic costs of living differences



Equity and Its Impact on Pay RatesEquity and Its Impact on Pay Rates

External

Equity

Procedural

Equity

Internal

Equity

Individual

Equity

Forms of Equity



Addressing Equity IssuesAddressing Equity Issues

Salary Surveys

Job Analysis and

Job Evaluation

PerformanceAppraisal

and Incentive Pay

Communications, Grievance

Mechanisms, and Employees¶

Participation

Methods to

Address Equity

Issues



Establishing Pay RatesEstablishing Pay Rates

1

2

3

4

5

Steps in Establishing Pay Rates

Determine the worth of each job in your organization

through job evaluation (to ensure internal equity).

Conduct a salary survey of what other employers are

paying for comparable jobs (to help ensure external equity).

Group similar jobs into pay grades.

Price each pay grade by using wave curves.

Fine-tune pay rates.



FIGURE

Wage Structure



Pricing Managerial and Professional JobsPricing Managerial and Professional Jobs

Base

Pay

Executive

Benefits and

Perks

Short-term

Incentives

Long-Term

Incentives

Compensating Executives

and Managers



CompetencyCompetency--Based PayBased Pay

�� CompetenciesCompetenciesDemonstrable characteristics of a person, includingDemonstrable characteristics of a person, including

knowledge, skills, and behaviors, that enableknowledge, skills, and behaviors, that enable

performance.performance.

�� What is CompetencyWhat is Competency--Based Pay?Based Pay? Paying for the employee¶s range, depth, and types of Paying for the employee¶s range, depth, and types of

skills and knowledge, rather than for the job title heskills and knowledge, rather than for the job title he

or she holds.or she holds.



CompetencyCompetency--Based Pay (cont¶d)Based Pay (cont¶d)

Support High-

Performance

Work Systems

Support

Performance

Management

Why Use Competency-

Based Pay?

Support

StrategicAims



FIGURE 11±8

Broadbanded

Structure and

How It Relates

to Traditional

Pay Grades

and Ranges



Employee Incentive PlansEmployee Incentive Plans

Individual Employee Incentive

and Recognition Programs

Sales Compensation

Programs

Organizationwide Incentive

Programs

Executive Incentive

Compensation Programs

Team/Group-based Variable

Pay ProgramsPay-for-Performance

Plans



Pay For Time Not WorkedPay For Time Not Worked

Vacations and

Holidays

Parental

Leave

Supplemental

Unemployment

Benefits

Supplemental Pay

Benefits

Unemployment

Insurance

Sick

Leave

Severance

Pay

Documents

ch 10 onwards