9-1 McGraw-Hill/IrwinCopyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved. fundamentals of Human Resource Management 3 rd edition by R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright CHAPTER 9 Developing Employees for Future Success

9-2 What Do I Need to Know? 1.Discuss how development is related to training and careers. 2.Identify the methods organizations use for employee development. 3.Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development. 4.Explain how job experiences can be used for developing skills.

9-3 What Do I Need to Know? (continued) 5.Summarize principles of successful mentoring programs. 6.Tell how managers and peers develop employees through coaching. 7.Identify the steps in the process of career management. 8.Discuss how organizations are meeting the challenges of the “glass ceiling,” succession planning, and dysfunctional managers.

9-4 Introduction Employee development: the 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.

9-5 Table 9.1: Training versus Development TRAININGDEVELOPMENT FocusCurrentFuture Use of work experiences LowHigh GoalPreparation for current job Preparation for changes ParticipationRequiredVoluntary

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. – The organization manages employee’s careers more so than the individual. – The average 32-year old has already worked for 7 different firms.

9-7 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.

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.Protean B.Traditional C.Glass ceiling D.Dead end

9-9 Figure 9.1: Four Approaches to Employee Development

9-10 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.

9-11 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.

9-12 Assessment Tools Myers-Briggs Type Indicator (MBTI)®Assessment CentersBenchmarks AssessmentPerformance Appraisal360-Degree Feedback

9-13 Assessment Tools: Myers-Briggs Type Indicator (MBTI)® It is a 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. This is the most popular test for employee development. The assessment consists of more than 100 questions about how the person feels or prefers to behave in different situations.

9-14 Table 9.2a: Personality Types Used in the Myers-Briggs Type Indicator

9-15 Table 9.2b: Personality Types Used in the Myers-Briggs Type Indicator

9-16 Assessment Tools (continued) Assessment Centers 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. Benchmarks A measurement tool that gathers ratings of a manager’s use of skills associated with success in managing.

9-17 Table 9.3: Skills Related to Success as a Manager

9-18 Assessment Tools (continued) Performance appraisals can be useful for employee development under certain conditions: 1.The appraisal system must tell employees specifically about their performance problems and ways to improve their performance. 2.Employees must gain a clear understanding of the differences between current performance and expected performance. 3.The appraisal process must identify causes of the performance discrepancy and develop plans for improving performance.

9-19 Assessment Tools (continued) 360-degree feedback can be used for development purposes: 1.The rater would identify an area of behavior as a strength of the employee or an area requiring further development. 2.The results presented to the employee show how he or she was rated on each item and how self-evaluations differ from other raters’ evaluations. 3.The individual reviews the results, seeks clarification from the raters, and sets specific development goals based on the strengths and weaknesses identified.

9-20 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.Interview B.Performance appraisal C.Assessment Center D.Coaching

9-21 Approaches to Employee Development (continued) Job experiences: the combination of relationships, problems, demands, tasks, 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.

9-22 Figure 9.2: How Job Experiences Are Used for Employee Development

9-23 Working outside one’s home country is the most important job experience that can develop an employee for a career in the global economy.

9-24 Approaches to Employee Development (continued) 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

9-25 Rick Pitino, head basketball coach at Louisville, is known for being a good mentor. His track record proves it. Many former assistants and players have become college head coaches after working with him.

9-26 Figure 9.3: Steps and Responsibilities in the Career Management Process

9-27 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 Assessment B.Reality Check C.Goal Setting D.Action Planning

9-28 Career Management System (continued) Self-Assessment The use of information by employees to determine their career interests, values, aptitudes, behavioral tendencies, and development needs. MBTI Strong-Campbell Interest Inventory Self-Directed Search Reality Check Information employers give employees about their skills and knowledge and where these assets fit into the organization’s plans.

9-29 Figure 9.4: Sample Self-Assessment Exercise

9-30 Career Management System (continued) Goal Setting Based on the information from the self-assessment and reality check, the employee sets short- and long-term career objectives. – Desired positions – Level of skill to apply – Work setting – Skill acquisition Action Planning 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. Approach used depends on the particular development need and career objectives.

9-31 Figure 9.5: Career Development Plan

9-32 Development-Related Challenges Glass Ceiling Circumstances resembling an invisible barrier that keep most women and minorities from attaining the top jobs in organizations. Succession Planning The process of identifying and tracking high- potential employees who will be able to fill top management positions when they become vacant. Dysfunctional Managers A 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.

9-33 Indra Nooyi became the first woman CEO of PepsiCo in Her success at the company gives her the distinction of being one of the women to break through the glass ceiling.

9-34 Figure 9.6: Process for Developing a Succession Plan

9-35 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

9-36 Bad Bosses Take a Toll

9-37 Dysfunctional Managers (continued) 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 Specialized programs include Individual Coaching for Effectiveness (ICE) – This includes diagnosis, coaching, and support activities tailored to each manager’s needs.

9-38 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.

9-39 Summary (continued) In modern organizations, 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. To plan and prepare for a protean career requires active career management, which includes planning for employee development. Assessment can help the organization identify employees with managerial potential or identify areas in which teams need to develop.

9-40 Summary (continued) Assessment centers combine a variety of methods to provide assessment information. Managers must share the 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.

9-41 Summary (continued) 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.