1. CHAPTER 9 Developing Employees for Future Success
fundamentals of Human Resource Management 4th edition by R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright
CHAPTER 9
Developing Employees for Future Success
Human resource management establishes a process for employee development that prepares employees to help the organization meet its goals.
This chapter explores the purpose and activities of employee development.

2. What Do I Need to Know?
Discuss how development is related to training and careers.
Identify the methods organizations use for employee development.
Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development.
Explain how job experiences can be used for developing skills.
After reading and discussing this chapter, you should be able to:

3. What Do I Need to Know? (continued)
Summarize principles of successful mentoring programs.
Tell how managers and peers develop employees through coaching.
Identify the steps in the process of career management.
Discuss how organizations are meeting the challenges of the “glass ceiling,” succession planning, and dysfunctional managers.
After reading and discussing this chapter, you should be able to:

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.
This chapter explores the purpose and activities of employee development.

5. Table 9.1: Training versus Development
Development implies learning that is not necessarily related to the employee’s current job. It prepares employees for other positions in the organization and increases their ability to move into jobs that may not yet exist.
In contrast, training traditionally focuses on helping employees improve performance of their current jobs.
Table 9.1 summarizes the traditional differences.

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.
There are more horizontal “ladders” in middle management than upward moves. True
Companies focus on employee’s career steps rather than their core competencies. False – focus is on core business competencies and therefore, fostering those in their employees.
Careers are now more a series of projects, rather than upward steps in an organization – True
Career development primarily applies to managers. False – Now focus needs to be on all employees because fewer of them have direct managerial control but are rather parts of a team or workgroup.
The organization manages employee’s careers more so than the individual. – False, the individual really needs to take control over their career and when you have skills that are in demand, you have more flexibility to change jobs to those that fit your lifestyle.
The average 32-year old has already worked for 7 different firms. - True

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.
Recently, changes such as downsizing and restructuring have become the norm, so the concept of a career has become more fluid than the traditional view.
Today’s employees are likely to have a protean career, one that frequently changes based on changes in the person’s interests, abilities, and values in the work environment.

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?
Protean
Traditional
Glass ceiling
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?
Protean
Traditional
Glass ceiling
Dead end
Answer: B

9. Figure 9.1: Four Approaches to Employee Development
The many approaches to employee development fall into four broad categories:
Formal education
Assessment
Job experiences
Interpersonal relationships.
Figure 9.1 summarizes these four methods. Many organizations combine these approaches.

10. Approaches to Employee Development
Formal Education
Assessment
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.
Organizations may support employee development through a variety of formal educational programs, either at the workplace or off-site.
Another way to provide for employee development is assessment.

11. Ask the students: “How can this assessment help employees?”
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.

12. Assessment Tools
Myers-Briggs Type Indicator (MBTI)®
Assessment Centers
Benchmarks Assessment
Performance Appraisal
360-Degree Feedback
Organizations vary in the methods and sources of information they use in developmental assessment.
The tools used for assessment include those listed on this slide.

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.

14. Assessment Tools (continued)
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.

15. Table 9.2: Skills Related to Success as a Manager
Table 9.2 is an example of a Benchmark assessment tool that measures a manager’s use of skills associated with success in managing.

16. Assessment Tools (continued)
Performance appraisals can be useful for employee development under certain conditions:
The appraisal system must tell employees specifically about their performance problems and ways to improve their performance.
Employees must gain a clear understanding of the differences between current performance and expected performance.
The appraisal process must identify causes of the performance discrepancy and develop plans for improving performance.
Managers must be trained to deliver frequent performance feedback and must monitor employees’ progress in carrying out their action plans.

17. Assessment Tools (continued)
360-degree feedback can be used for development purposes:
The rater would identify an area of behavior as a strength of the employee or an area requiring further development.
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.
The individual reviews the results, seeks clarification from the raters, and sets specific development goals based on the strengths and weaknesses identified.

18. 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?
Interview
Performance appraisal
Assessment Center
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?
Interview
Performance appraisal
Assessment Center
Coaching
Answer C

19. 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.
Most employee development occurs through job experiences.

20. Figure 9.2: How Job Experiences Are Used for Employee Development
Figure 9.2 summarizes how various job experiences can be used for employee development.

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

22. 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

23. Figure 9.3: Steps and Responsibilities in the Career Management Process
Employee development is most likely to meet the organization’s needs if it is part of a human resource system of career management.
As shown in Figure 9.3, a basic career management system involves four steps:
Data Gathering
Feedback
Goal setting
Action planning & Follow-up
At each step, both the employee and the organization have responsibilities.
The system is most likely to be beneficial if it is linked to the organization’s objectives and needs, has support from top management, and is created with employee participation.

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?
Self Assessment
Reality Check
Goal Setting
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?
Self Assessment
Reality Check
Goal Setting
Action Planning
Answer B

25. Career Management System (continued)
Data Gathering: Self-Assessment
Feedback
Information employers give employees about their skills and knowledge and where these assets fit into the organization’s plans.
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
Data Gathering. In this stage employees embark on a process of Self-Assessment:
The employee’s responsibility is to identify opportunities and personal areas needing improvement.
The organization’s responsibility is to provide assessment information for identifying strengths, weaknesses, interests, and values.
Feedback:
The employee’s responsibility is to identify what skills he or she could realistically develop in light of the opportunities available.
The organization’s responsibility is to communicate the performance evaluation and the opportunities available to the employee, given the organization’s long-range plans.

26. Figure 9.4: Sample Self-Assessment Exercise
Self-assessment tools can include exercises such as the one in Figure 9.4.

27. Career Management System (continued)
Goal Setting
Action Planning & Follow-Up
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
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.
Goal Setting:
It is the employee’s responsibility to identify the goal and the method of determining her or his progress toward that goal.
The organization’s responsibilities are to ensure that the goal is specific, challenging, and attainable and to help the employee reach the goal.
Action Planning:
The employee is responsible for identifying the steps and timetable to reach the goals.
The employer should identify resources needed, including courses, work experiences, and relationships.

28. Figure 9.5: Career Development Plan
The outcome of action planning often takes the form of a career development plan.
Figure 9.5 is an example of a development plan for a product manager.

29. 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.
A well-designed system for employee development can help organizations face three widespread challenges:
The glass ceiling
Succession planning
Dysfunctional behavior by managers

30. 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.

31. Figure 9.6: Process for Developing a Succession Plan
Figure 9.6 breaks the succession planning process into seven steps.

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.
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

33. 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.

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.

35. 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.

36. 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.

37. 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.