1. 9-1 McGraw-Hill/IrwinCopyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved. Seminar 6 – MT203 by R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright CHAPTER 9 Developing Employees for Future Success

2. 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.

3. 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.

4. 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.

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

6. 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.

7. 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.

8. 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. 9-9 Figure 9.1: Four Approaches to Employee Development

10. 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.

11. 9-11 Assessment Tools Myers-Briggs Type Indicator (MBTI)®Assessment CentersBenchmarks AssessmentPerformance Appraisal360-Degree Feedback

12. 9-12 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.

13. 9-13 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.

14. 9-14 Table 9.3: Skills Related to Success as a Manager

15. 9-15 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.

16. 9-16 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.

17. 9-17 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

18. 9-18 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.

19. 9-19 Figure 9.2: How Job Experiences Are Used for Employee Development

20. 9-20 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

21. 9-21 Figure 9.3: Steps and Responsibilities in the Career Management Process

22. 9-22 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

23. 9-23 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.

24. 9-24 Figure 9.4: Sample Self-Assessment Exercise

25. 9-25 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.

26. 9-26 Figure 9.5: Career Development Plan

27. 9-27 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.

28. 9-28 Figure 9.6: Process for Developing a Succession Plan

29. 9-29 Bad Bosses Take a Toll

30. 9-30 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.

31. 9-31 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. Any Questions?