Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

FUNDAMEN

TALS

OF

HUMAN RESOURCE

MANAGEMENT

5TH E

DITIO

N

BY R

.A. N

OE, J.

R. HOLL

ENBECK, B

.

GERHART, A

ND P.M. W

RIGHT

CHAPTER 9

DEVELO

PING

EMPLOYE

ES FOR F

UTURE

SUCCESS

9-2

Need to Know

1. How development is related to training and careers.

2. Methods organizations use for employee development.

3. How organizations use assessment of personality type, work behaviors, and job performance to plan employee development.

4. How job experiences can be used for developing skills.

1. How development is related to training and careers.

2. Methods organizations use for employee development.

3. How organizations use assessment of personality type, work behaviors, and job performance to plan employee development.

4. How job experiences can be used for developing skills.

9-3

Need to Know

5. Principles of successful mentoring programs.6. How managers and peers develop employees

through coaching.7. Identify steps in career management process.8. How organizations meet challenges of the “glass

ceiling,” succession planning, and dysfunctional managers.

5. Principles of successful mentoring programs.6. How managers and peers develop employees

through coaching.7. Identify steps in career management process.8. How organizations meet challenges of the “glass

ceiling,” succession planning, and dysfunctional managers.

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Introduction

• Employee development: combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers.

• Development is about preparing for change in the form of new jobs, new responsibilities, or new requirements.

• Employee development: combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers.

• Development is about preparing for change in the form of new jobs, new responsibilities, or new requirements.

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Table 9.1: Training versus Development

9-6

Test Your Knowledge

Significant Developments: True (A) or False (B)? There are more horizontal “ladders” in middle

management than upward moves. Companies focus on employee’s career steps rather

than their core competencies. Careers are now more a series of projects, rather than

upward steps in an organization Career development primarily applies to managers. Organization manages employee’s careers more so

than the individual. Average 32-year old has already worked for 7 different

firms.

Significant Developments: True (A) or False (B)? There are more horizontal “ladders” in middle

management than upward moves. Companies focus on employee’s career steps rather

than their core competencies. Careers are now more a series of projects, rather than

upward steps in an organization Career development primarily applies to managers. Organization manages employee’s careers more so

than the individual. Average 32-year old has already worked for 7 different

firms.

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Development for Careers

Protean career: a career that frequently changes based on changes in the person’s interests, abilities, and values and in the work environment.

• To remain marketable, employees must continually develop new skills.

Protean career: a career that frequently changes based on changes in the person’s interests, abilities, and values and in the work environment.

• To remain marketable, employees must continually develop new skills.

9-8

Test Your Knowledge

• An employee starts out as a sales person, then becomes an account manager, gets promoted to sales manager, and is now VP of Sales. Which type of career did this employee have?A. ProteanB. TraditionalC. Glass ceilingD. Dead end

• An employee starts out as a sales person, then becomes an account manager, gets promoted to sales manager, and is now VP of Sales. Which type of career did this employee have?A. ProteanB. TraditionalC. Glass ceilingD. Dead end

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Figure 9.1: Four Approaches to Employee Development

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Approaches to Employee Development

•These may include:– Workshops– Short courses– Lectures– Simulations– Business games– Experiential

programs•Many companies operate training and development centers.

•These may include:– Workshops– Short courses– Lectures– Simulations– Business games– Experiential

programs•Many companies operate training and development centers.

•Collecting information and providing feedback to employees about heir behavior, communication style, or skills.•Information for assessment may come from the employees, their peers, managers, and customers.

•Collecting information and providing feedback to employees about heir behavior, communication style, or skills.•Information for assessment may come from the employees, their peers, managers, and customers.

Formal Education Assessment

One way to develop employees is to begin with an assessment which may consist of assigning an activity to a team and seeing who brings what skills and strengths to the team.

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Assessment Tools

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Assessment Tools:Myers-Briggs Type Indicator (MBTI)®Psychological test that identifies individuals’ preferences for source of energy, means of information gathering, way of decision making, and lifestyle, providing information for team building and leadership development.

Psychological test that identifies individuals’ preferences for source of energy, means of information gathering, way of decision making, and lifestyle, providing information for team building and leadership development.

•Most popular test for employee development.•Assessment consists of 100 + questions about how the person feels or prefers to behave in different situations.

•Most popular test for employee development.•Assessment consists of 100 + questions about how the person feels or prefers to behave in different situations.

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Assessment Tools

An assessment process in which multiple raters or evaluators (assessors) evaluate employees’ performance on a number of exercises, usually as they work in a group at an offsite location.

An assessment process in which multiple raters or evaluators (assessors) evaluate employees’ performance on a number of exercises, usually as they work in a group at an offsite location.

A measurement tool that gathers ratings of a manager’s use of skills associated with success in managing.

A measurement tool that gathers ratings of a manager’s use of skills associated with success in managing.

Assessment Centers Benchmarks

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Table 9.2: Skills Related to Success as a Manager

9-16

Assessment Tools

Performance appraisals can be useful for employee development under certain conditions:

1. Appraisal system must tell employees specifically about their performance problems and ways to improve their performance.

2. Employees must gain a clear understanding of differences between current and expected performance.

3. Appraisal process must identify causes of performance discrepancy and develop plans for improving performance.

Performance appraisals can be useful for employee development under certain conditions:

1. Appraisal system must tell employees specifically about their performance problems and ways to improve their performance.

2. Employees must gain a clear understanding of differences between current and expected performance.

3. Appraisal process must identify causes of performance discrepancy and develop plans for improving performance.

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Assessment Tools

360-degree feedback can be used for development purposes:

1. Raters identify an area of behavior as a strength of the employee or an area requiring further development.

2. Results presented to employee show how rating on each item and how self-evaluations differ from other raters’ evaluations.

3. Individual reviews results, seeks clarification from raters, and sets specific development goals based on strengths and weaknesses identified.

360-degree feedback can be used for development purposes:

1. Raters identify an area of behavior as a strength of the employee or an area requiring further development.

2. Results presented to employee show how rating on each item and how self-evaluations differ from other raters’ evaluations.

3. Individual reviews results, seeks clarification from raters, and sets specific development goals based on strengths and weaknesses identified.

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Test Your Knowledge

• Sarah participated in leaderless group discussions and in-basket exercises and was observed by a number of raters. Which assessment method was used for Sarah?A. InterviewB. Performance appraisalC. Assessment CenterD. Coaching

• Sarah participated in leaderless group discussions and in-basket exercises and was observed by a number of raters. Which assessment method was used for Sarah?A. InterviewB. Performance appraisalC. Assessment CenterD. Coaching

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Approaches to Employee Development

Job experiences: combination of tasks, relationships, problems, demands and other features of an employee’s jobs.•Most employee development occurs through job experiences.

Job experiences: combination of tasks, relationships, problems, demands and other features of an employee’s jobs.•Most employee development occurs through job experiences.

•Key job experience events include:

– Job assignments– Interpersonal

relationships– Types of transitions

•Through these experiences, managers learn how to handle common challenges, and prove themselves.

•Key job experience events include:

– Job assignments– Interpersonal

relationships– Types of transitions

•Through these experiences, managers learn how to handle common challenges, and prove themselves.

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Figure 9.2: How Job Experiences Are Used for Employee Development

Working outside one’s home country is the most important job experience that can develop an employee for a career in the global economy.

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9-22

Approaches to Employee Development

• Interpersonal relationships: employees can also develop skills and increase their knowledge about the organization and its customers by interacting with a more experienced member:

– Mentoring– Coaching

• Interpersonal relationships: employees can also develop skills and increase their knowledge about the organization and its customers by interacting with a more experienced member:

– Mentoring– Coaching

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Figure 9.3: Steps and Responsibilities in the Career Management Process

9-24

Test Your Knowledge

• Phyllis is in the process of understanding what possibilities exist for her within the organization based on her strengths and developmental areas. Which phase of the career management process is she in?A. Self AssessmentB. Reality CheckC. Goal SettingD. Action Planning

• Phyllis is in the process of understanding what possibilities exist for her within the organization based on her strengths and developmental areas. Which phase of the career management process is she in?A. Self AssessmentB. Reality CheckC. Goal SettingD. Action Planning

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Career Management System

•Use of information by employees to determine career interests, values, aptitudes, behavioral tendencies, and development needs.

• MBTI• Strong-Campbell

Interest Inventory• Self-Directed Search

•Use of information by employees to determine career interests, values, aptitudes, behavioral tendencies, and development needs.

• MBTI• Strong-Campbell

Interest Inventory• Self-Directed Search

Information employers give employees about their skills and knowledge and where these assets fit into the organization’s plans.

Information employers give employees about their skills and knowledge and where these assets fit into the organization’s plans.

Data Gathering: Self-Assessment Feedback

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Figure 9.4: Sample Self-Assessment Exercise

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Career Management System

•Based on information from self-assessment and reality check, employee sets short- and long-term career objectives.– Desired positions– Level of skill to apply– Work setting– Skill acquisition

•Based on information from self-assessment and reality check, employee sets short- and long-term career objectives.– Desired positions– Level of skill to apply– Work setting– Skill acquisition

•Employees prepare an action plan for how they will achieve their short- and long-term career goals.•Any one or a combination of development methods may be used, depending on development need and career objectives.

•Employees prepare an action plan for how they will achieve their short- and long-term career goals.•Any one or a combination of development methods may be used, depending on development need and career objectives.

Goal Setting Action Planning & Follow-Up

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Figure 9.5: Career Development Plan

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Development-Related Challenges

Indra Nooyi became the first woman CEO of PepsiCo in 2006. Her success at the company gives her the distinction of being one of the women to break through the glass ceiling.

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Figure 9.6: Process for Developing a Succession Plan

9-32

Dysfunctional Managers

A manager who is otherwise competent may engage in some behaviors that make him or her ineffective – someone who stifles ideas and drives away employees.

A manager who is otherwise competent may engage in some behaviors that make him or her ineffective – someone who stifles ideas and drives away employees.

•These dysfunctional behaviors include:

– insensitivity to others

– inability to be a team player

– arrogance– poor conflict

management skills– inability to meet

business objectives– inability to adapt to

change

•These dysfunctional behaviors include:

– insensitivity to others

– inability to be a team player

– arrogance– poor conflict

management skills– inability to meet

business objectives– inability to adapt to

change

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Dysfunctional Managers

When a manager is an otherwise valuable employee and is willing to improve, the organization may try to help him or her change the dysfunctional behavior:

Assessment Training Counseling

When a manager is an otherwise valuable employee and is willing to improve, the organization may try to help him or her change the dysfunctional behavior:

Assessment Training Counseling

9-34

Summary

• Employee development is the combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers.

• Training is more focused on improving performance in the current job, but training programs may support employee development.

• Employee development is the combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers.

• Training is more focused on improving performance in the current job, but training programs may support employee development.

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Summary

• The concept of a career is fluid – a protean career that changes along with changes in a person’s interests, abilities, and values and changes in the work environment.

• It requires active career management, which includes planning for employee development.

• The concept of a career is fluid – a protean career that changes along with changes in a person’s interests, abilities, and values and changes in the work environment.

• It requires active career management, which includes planning for employee development.

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Summary

• Assessment centers combine a variety of methods to provide assessment information. Managers must share assessments, along with suggestions for improvement.

• Job experiences contribute to development through a combination of relationships, problems, demands, tasks, and other features of an employee’s jobs.

• Organizations can ensure that women and minority employees receive access to development resources such as coaches and mentors.

• Assessment centers combine a variety of methods to provide assessment information. Managers must share assessments, along with suggestions for improvement.

• Job experiences contribute to development through a combination of relationships, problems, demands, tasks, and other features of an employee’s jobs.

• Organizations can ensure that women and minority employees receive access to development resources such as coaches and mentors.

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Summary

• Effective succession planning includes methods for selecting high-potential employees, providing them with developmental experiences, and getting the CEO actively involved with these employees.

• For dysfunctional managers who have the potential to contribute to the organization, the organization may offer development targeted at correcting the areas of dysfunction.

• Effective succession planning includes methods for selecting high-potential employees, providing them with developmental experiences, and getting the CEO actively involved with these employees.

• For dysfunctional managers who have the potential to contribute to the organization, the organization may offer development targeted at correcting the areas of dysfunction.