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

McGraw-Hill/Irwin Copyright 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved.
 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.

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 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.

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 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.

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Table 9.1: Training versus Development

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 Test Your Knowledge
Significant Developments: True (A) or False (B)?
There are more horizontal ladders in middle
management than upward moves.
Companies focus on employees 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 employees careers more so
than the individual.
The average 32-year old has already worked for 7 different
firms.

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 Development for Careers

Protean career: a career that frequently

changes based on changes in the persons
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. Protean
B. Traditional
C. Glass ceiling
D. Dead end

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Figure 9.1: Four Approaches to Employee
Development

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 Approaches to Employee Development

Formal Education Assessment

These may include: Collecting information and
Workshops providing feedback to
Short courses employees about heir
Lectures behavior, communication
Simulations style, or skills.
Business games Information for assessment
Experiential programs may come from the
Many companies operate employees, their peers,
training and development managers, and customers.
centers.

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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

Myers-Briggs Type Indicator (MBTI)

Assessment Centers

Benchmarks Assessment

Performance Appraisal

360-Degree Feedback
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 Assessment Tools:
Myers-Briggs Type Indicator (MBTI)
It is a psychological test This is the most popular
that identifies test for employee
individuals preferences development.
for source of energy,
means of information The assessment consists
gathering, way of of more than 100
decision making, and questions about how the
lifestyle, providing person feels or prefers to
information for team behave in different
building and leadership situations.
development.

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 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
managers 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 (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.

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 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.

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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. Interview
B. Performance appraisal
C. Assessment Center
D. Coaching

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 Approaches to Employee Development
(continued)

Job experiences: the Key job experience

combination of events include:
relationships, problems, Job assignments
demands, tasks, and Interpersonal
relationships
other features of an Types of transitions
employees jobs.
Through these
Most employee experiences, managers
development occurs learn how to handle
through job experiences. 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 ones 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
(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

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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. Self Assessment
B. Reality Check
C. Goal Setting
D. Action Planning

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 Career Management System (continued)
Data Gathering:
Feedback
Self-Assessment
Information employers give
The use of information by
employees about their skills
employees to determine
and knowledge and where
their career interests,
these assets fit into the
values, aptitudes,
organizations plans.
behavioral tendencies, and
development needs.
MBTI
Strong-Campbell Interest
Inventory
Self-Directed Search
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Figure 9.4: Sample Self-Assessment
Exercise

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 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 & Follow-
Up
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.
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Figure 9.5: Career Development Plan

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 Development-Related Challenges

Succession Dysfunctional
Glass Ceiling
Planning Managers
Circumstances The process of A manager who
resembling an identifying and is otherwise
invisible barrier tracking high- competent may
that keep most potential engage in some
women and employees who behaviors that
minorities from will be able to fill make him or her
attaining the top top management ineffective or
jobs in positions when even toxic
organizations. they become stifles ideas and
vacant. 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 These dysfunctional

otherwise competent behaviors include:
may engage in some
behaviors that make
him or her ineffective
someone who stifles
ideas and drives away
employees.
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 (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 managers needs.

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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 (continued)

In modern organizations, the concept of a career is

fluid a protean career that changes along with
changes in a persons 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.

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 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 employees jobs.
Organizations can ensure that women and minority
employees receive access to development resources
such as coaches and mentors.

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 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.

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