Chapter 009 Developing Employees for Future Success

McGraw-Hill/Irwin
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.
Need to Know
1.
2.
3.
4.
How development is related to training and
careers.
Methods organizations use for employee
development.
How organizations use assessment of personality
type, work behaviors, and job performance to plan
employee development.
How job experiences can be used for developing
skills.
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Need to Know
5.
6.
7.
8.
Principles of successful mentoring programs.
How managers and peers develop employees
through coaching.
Identify steps in career management process.
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.
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Table 9.1: Training versus
Development
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Test Your Knowledge

Significant Developments: True (A) or False (B)?
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.
 There
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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.
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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.
B.
C.
D.
Protean
Traditional
Glass ceiling
Dead end
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Figure 9.1: Four Approaches to
Employee Development
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Approaches to Employee Development
Formal Education
These may include:
•
–
–
–
–
–
–
Workshops
Short courses
Lectures
Simulations
Business games
Experiential programs
Many companies operate
training and development
centers.
•
Assessment
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.
•
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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.

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
Assessment Centers
Benchmarks
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.
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Table 9.2: Skills Related to Success as
a Manager
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Assessment Tools
Performance appraisals can be useful for employee
development under certain conditions:
1.
2.
3.
Appraisal system must tell employees specifically
about their performance problems and ways to
improve their performance.
Employees must gain a clear understanding of
differences between current and expected
performance.
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.
2.
3.
Raters identify an area of behavior as a strength of
the employee or an area requiring further
development.
Results presented to employee show how rating on
each item and how self-evaluations differ from other
raters’ evaluations.
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.
B.
C.
D.
Interview
Performance appraisal
Assessment Center
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.
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
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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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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
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Figure 9.3: Steps and Responsibilities
in the Career Management Process
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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.
B.
C.
D.
Self Assessment
Reality Check
Goal Setting
Action Planning
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Career Management System
Data Gathering:
Self-Assessment
Use of information by
employees to determine
career interests, values,
aptitudes, behavioral
tendencies, and
development needs.
•
•
MBTI
Strong-Campbell Interest
Inventory
•
Self-Directed Search
•
Feedback
Information employers
give employees about
their skills and knowledge
and where these assets fit
into the organization’s
plans.

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Figure 9.4: Sample Self-Assessment
Exercise
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Career Management System
Goal Setting
Action Planning & Follow-Up
Based on information from
self-assessment and reality
check, employee sets shortand 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 shortand long-term career
goals.
•Any one or a combination
of development methods
may be used, depending
on development need and
career objectives.
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Figure 9.5: Career Development Plan
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Development-Related Challenges
• Circumstances
resembling an
invisible barrier
that keep most
women and
minorities from
attaining the
top jobs in
organizations.
• Process of
identifying and
tracking highpotential
employees who
will be able to
fill top
management
positions.
• Manager who is
otherwise
competent may
engage in some
behaviors that
make him or her
ineffective or
even “toxic” –
stifles ideas and
drives away
good
employees.
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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
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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.

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
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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.
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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.
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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.
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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.
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