McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Chapter Employee Development

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Development Development refers to formal education, job experiences, relationships, and assessments of personality and abilities that help employees perform effectively in their current or future job and company.

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Comparison Between Training and Development TrainingDevelopment FocusCurrentFuture Use of work experiences LowHigh GoalPreparation for current jobPreparation for changes ParticipationRequiredVoluntary

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Why is employee development important? Employee development is a necessary component of a company’s efforts to: improve quality retain key employees meet the challenges of global competition and social change incorporate technological advances and changes in work design

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Approaches to Employee Development Formal Education Assessment Job Experiences Interpersonal Relationships

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Formal Education Formal education programs include: off-site and on-site programs designed specifically for the company’s employees short courses offered by consultants or universities executive MBA programs university programs in which participants actually live at the university while taking classes

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Examples of development programs at GE ProgramDescriptionTarget AudienceCourses Executive Development Sequence Emphasis on strategic thinking, leadership, cross-functional integration, competing globally, customer satisfaction Senior professionals and executives identified as high-potential Manager Development Global Business Management Executive Development Core Leadership Program Development of functional expertise, business excellence, management of change ManagersCorporate Entry Leadership Professional Development New Manager Development Experienced Manager Professional Development Program Emphasis on preparation for specific career path New EmployeesAudit Staff Financial Management Human Resources Technical Leadership

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Important trends in executive education: Increasing use of distance learning by many companies and universities Companies and the education provider create short, custom courses, with content designed specifically to needs of the audience Supplementing formal courses from consultants or university faculty with other types of training and development activities

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Assessment involves collecting information and providing feedback to employees about their behavior, communication style, or skills

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Assessment (continued) Used most frequently to: identify employees with managerial potential measure current managers’ strengths and weaknesses identify managers with potential to move into higher- level executive positions work with teams to identify members’ strengths and weaknesses, and factors that inhibit productivity

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Myers-Briggs Type Indicator ® (MBTI) Assessment Center Benchmarks Performance Appraisals and 360-Degree Feedback Systems Popular Assessment Tools

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Assessment Tools: Myers-Briggs (MBTI) Most popular psychological test for employee development Used for understanding such things as: communication motivation teamwork work styles leadership

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Examples of MBTI Use: Can be used by salespeople who want to become more effective at interpersonal communication by learning things about their own personality styles and the way they are perceived by others Can help develop teams by matching team members with assignments that allow them to capitalize on their preferences Can help employees understand how the different preferences can lead to useful problem solving

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Assessment Tools: Assessment Center assessment center The assessment center is a process in which multiple raters or evaluators evaluate employees’ performance on a number of exercises usually held at an off-site location used to identify if employees have the abilities, personality, and behaviors for management jobs used to identify if employees have the necessary skills to work in teams

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Examples of Skills Measured by Assessment Center Exercises SKILLS In-basketScheduling Exercise Leaderless Group Discussion Personality Test Role Play LeadershipXXXX Problem solving XXXX InterpersonalXXX AdministrativeXXX PersonalXXX EXERCISES

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Assessment Tools: Benchmarks Benchmarks © is an instrument designed to measure important factors in being a successful manager Items measured are based on research that examines the lessons executives learn at critical events in their careers This includes items that measure managers’ skills in dealing with subordinates, acquiring resources, and creating a productive work climate

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Skills Related to Managerial Success Resourcefulness Doing whatever it takes Being a quick study Building and mending relationships Leading subordinates Compassion and sensitivity Straightforwardness and composure Setting a developmental climate Confronting problem subordinates Team orientation Balance between personal life and work Decisiveness Self-awareness Hiring talented staff Putting people at ease Acting with flexibility

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Assessment Tools: Performance Appraisals Performance appraisal Performance appraisal - the process of measuring employees’ performance Approaches for measuring performance: ranking employees rating work behaviors rating the extent to which employees have desirable traits believed to be necessary for job success (e.g., leadership) directly measuring the results of work performance (e.g., productivity)

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Conditions under which performance measurement is useful for development: The appraisal system must give employees specific information about their performance problems and ways they can improve their performance Managers must be trained in providing performance feedback Managers must frequently give employees performance feedback Managers also need to monitor employees’ progress in carrying out the action plan

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Assessment Tools: 360-Degree Feedback System Rating Form Self Peers Customers Subordinates Manager

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Activities involved in development planning using the 360-degree feedback process: (1 of 2) 1. Understand strengths and weaknesses  Review ratings for strengths and weaknesses  Identify skills or behaviors where self and others’ ratings agree and disagree 2. Identify a development goal  Choose a skill or behavior to develop  Set a clear, specific goal with a specified outcome

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Activities involved in development planning using the 360-degree feedback process: (2 of 2) 3. Identify a process for recognizing goal accomplishment 4. Identify strategies for reaching the development goal  Establish strategies such as reading, job experiences, courses, and relationships  Establish strategies for receiving feedback on progress  Establish strategies for receiving reinforcement for new skills or behavior

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Factors necessary for a 360-degree feedback system to be effective: The system must provide consistent (reliable) ratings Feedback must be job-related (valid) The system must be easy to use, understandable, and relevant The system must lead to managerial development

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Degree Feedback: Important Issues to Consider Who will the raters be? How will you maintain the confidentiality of the raters? What behaviors and skills are job-related? How will you ensure full participation and complete responses from every employee who is asked to be a rater? What will the feedback report include? How will you ensure that managers receive and act on the feedback?

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Job Experiences Job experiences refer to relationships, problems, demands, tasks, or other features that employees face in their jobs Most employee development occurs through job experiences A major assumption is that development is most likely to occur when there is a mismatch between the employee’s skills and past experiences and the skills required for the job

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved To be successful in their jobs, employees must stretch their skills. They must be forced to learn new skills, apply their skills and knowledge in a new way, and master new experiences.

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Job Demands and Lessons Learned from Them Making transitions Unfamiliar responsibilities Proving yourself Creating change Developing new directions Inherited problems Reduction decisions Problems with employees Having high level of responsibility High stakes Managing business diversity Job overload Handling external pressure Being involved in non-authority relationships Influencing without authority Facing obstacles Adverse business conditions Lack of top management support Lack of personal support Difficult boss

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved How Job Experiences are Used for Employee Development: Enlargement of Current Job Experiences Promotion Job Rotation (Lateral Move) Transfer (Lateral Move) Downward Move Temporary Assignment with Another Organization

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Characteristics of Effective Job Rotation Systems (1 of 2) 1. Job rotation is used to develop skills as well as give employees experience needed for managerial positions 2. Employees understand specific skills that will be developed by rotation 3. Job rotation is used for all levels and types of employees 4. All employees have equal opportunities for job rotation assignments

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Characteristics of Effective Job Rotation Systems (2 of 2) 5. Job rotation is linked with the career management process so employees know the development needs addressed by each job assignment 6. Benefits of rotation are maximized and costs are minimized through managing time of rotations to reduce workload costs and help employees understand job rotation’s role in their development plans

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Interpersonal Relationships Employees can also develop skills and increase their knowledge about the company and its customers by interacting with a more experienced organizational member Two types of interpersonal relationships used to develop employees: Mentoring Coaching

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Characteristics of Successful Formal Mentoring Programs: (1 of 2) Mentor and protégé participation is voluntary relationship can be ended at any time without fear of punishment Mentor-protégé matching process does not limit the ability of informal relationships to develop Mentors are chosen on the basis of: their past record in developing employees willingness to serve as a mentor evidence of positive coaching, communication, and listening skills

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Characteristics of Successful Formal Mentoring Programs: (2 of 2) The purpose of the program is clearly understood The length of the program is specified A minimum level of contact between the mentor and protégé is specified Protégés are encouraged to contact one another to discuss problems and share successes The mentor program is evaluated Employee development is rewarded

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Coaching Relationships Coach – a peer or manager who works with employees to: motivate them help them develop skills provide reinforcement and feedback Coaches need to be able to suggest effective improvement actions

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved The Development Planning Process development planning process The development planning process involves: identifying development needs choosing a development goal identifying the actions that need to be taken by the employee and the company to achieve the goal determining how progress toward goal attainment will be measured investing time and energy to achieve the goal establishing a timetable for development

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Development Planning (continued) An emerging trend in development is that the employee must initiate the development planning process The development approach used is dependent on the needs and development goal

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Responsibilities in the Development Planning Process: (1 of 2) Development Planning Process Employee ResponsibilityCompany Responsibility OpportunityHow do I need to improve?Assessment information to identify strengths, weaknesses, interests, and values MotivationAm I willing to invest the time and energy to develop? Company assists in identifying personal and company reasons for change. Manager discusses steps for dealing with barriers and challenges to development. Goal IdentificationHow do I want to develop?Company provides development planning guide. Manager has developmental discussion with employee.

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Responsibilities in the Development Planning Process: (2 of 2) Development Planning Process Employee ResponsibilityCompany Responsibility CriteriaHow will I know I am making progress? Manager provides feedback on criteria ActionsWhat will I do to reach my development goal? Company provides assessment, courses, job experiences, and relationships AccountabilityWhat is my timetable? How can I ask others for feedback on progress toward my goal? Managers follows up on progress toward developmental goal and helps employees set a realistic timetable for goal achievement

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved Company Strategies for Providing Development: Individualization Learner Control Ongoing Support