h C a p t e r 9
McGrawHill/Irwin
Employee Development
2008 The McGrawHill Companies, All Rights Reserved
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.
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Comparison Between Training and Development
Training Development Focus Use of work exp Goal Participation
Current Low Current job Required Future High Changes Voluntary
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Why is Employee Development Important?
Necessary component of efforts to:
improve quality retain key employees talent management deal with globalization and social change incorporate new technology
Helps companies reduce turnover
Commitment to skill development Develop better managers
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Approaches to Employee Development
Assessment
Formal Education Interperson al Relationshi ps
Job Experiences
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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
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Important Trends in Executive Education
Increasing use of distance learning Creation of short courses, customized to needs of the audience Supplementing formal courses with other types of training and development activities Mini MBAs that are less than 2 years More executive education by universities, ROI measurement Companies reimburse tuition
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Assessment involves collecting information and providing feedback to employees about their behavior, communication style, or skills
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Assessment
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
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Popular Assessment Tools
Myers-Briggs Type Indicator (MBTI)
Assessment Center Performance Appraisals and 360-Degree Feedback Systems
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Benchmarks
Assessment Tools: Myers-Briggs (MBTI)
Most popular psychological test for employee development Used for understanding such things as:
communication motivation teamwork work styles leadership
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Assessment Tools: Assessment Center
Multiple raters evaluate employees' performance on a number of exercises
usually held at an off-site location identify employees with managerial capabilities identify employees with skills to work in teams
Exercises include:
leaderless group discussions interviews in-baskets role plays
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Assessment Tools: Benchmarks
Measures important factors in managerial success Based on research that examines lessons executives learn at critical events in their careers Measures managers' skills in dealing with:
subordinates acquiring resources creating a productive work climate
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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
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Assessment Tools: Performance Appraisals
Process of measuring performance employees' 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) 915
Assessment Tools: 360-Degree Feedback System
Peers
Ratin g Form Ratin g Form
Manager
Self
Customers
Ratin g Form
Ratin g Form
Subordina tes
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Job Experiences
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
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How Job Experiences are Used for Employee Development
Promoti on
Enlargement of Current Job Rotation
(Lateral Move)
Transfer
(Lateral Move)
Job Experiences Temporar y Assignme nt , Projects, and 918 volunteer work
Downw ard Move
Enlarging the Current Job
Job enlargement adding challenges or new responsibilities to an employee's current job This could include:
special project assignments switching roles within a work team researching new ways to serve clients and customers
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Transfers, Promotions, and Downward Moves
Transfer - in a transfer, an employee is given a different job assignment in a different area of the company Promotions advancements into positions with greater challenges, more responsibility, and more authority than in the previous job Downward move occurs when an employee is given a reduced level of responsibility and authority
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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
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Characteristics of Successful Formal Mentoring Programs
Participation is voluntary Mentors chosen on the basis of:
past record in developing...