Chapter

Employee
Development

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 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 Current Future
Use of work Low High
experiences

Goal Preparation for Preparation for

current job changes

Participation Required Voluntary

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 Why is employee development important?

Employee development is a necessary component

of a company’s efforts to:
improve quality
retain key employees
meet the challenges of global competition and social
change
incorporate technological advances and changes in
work design

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 Approaches to Employee Development

Assessme
nt

Formal Job
Education Experienc
es

Interperso
nal
Relationsh
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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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 Examples of development programs at GE

Program Description Target Audience Courses

Executive Emphasis on Senior professionals Manager
Development strategic thinking, and executives Development
Sequence leadership, cross- identified as high- Global Business
functional potential Management
integration, Executive
competing globally, Development
customer
satisfaction

Core Development of Managers Corporate Entry

Leadership functional Leadership
Program expertise, business Professional
excellence, Development
management of New Manager
change Development
Experienced
Manager

Professional Emphasis on New Employees Audit Staff

Development preparation for Financial
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 Important trends in executive education:

Increasing use of distance learning by many

companies and universities
Companies and the education provider create
short, custom courses, with content designed
specifically to needs of the audience
Supplementing formal courses from consultants
or university faculty with other types of training
and development activities

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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 (continued)
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® Assessment Center
(MBTI)

Performance
Appraisals and
Benchmarks 360-Degree Feedback
Systems

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 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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 Examples of MBTI Use:
Can be used by salespeople who want to become
more effective at interpersonal communication
by learning things about their own personality
styles and the way they are perceived by others
Can help develop teams by matching team
members with assignments that allow them to
capitalize on their preferences
Can help employees understand how the different
preferences can lead to useful problem solving
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 Assessment Tools: Assessment Center

The assessment center is a process in which

multiple raters or evaluators evaluate employees’
performance on a number of exercises
usually held at an off-site location
used to identify if employees have the abilities,
personality, and behaviors for management jobs
used to identify if employees have the necessary skills
to work in teams

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 Examples of Skills Measured by Assessment
Center Exercises

EXERCISES
SKILLS In-basket Scheduling Leaderless Personality Role Play
Exercise Group Test
Discussion

Leadership X X X X

Problem X X X X
solving
Interperson X X X
al
Administrat X X X
ive
Personal X X X

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 Assessment Tools: Benchmarks
Benchmarks© is an instrument designed to
measure important factors in being a successful
manager
Items measured are based on research that
examines the lessons executives learn at critical
events in their careers
This includes items that measure managers’ skills
in dealing with subordinates, acquiring resources,
and creating a productive work climate
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 Skills Related to Managerial Success
Resourcefulness Confronting problem
Doing whatever it takes subordinates
Being a quick study Team orientation
Building and mending Balance between personal life
relationships and work
Leading subordinates Decisiveness
Compassion and sensitivity Self-awareness
Straightforwardness and Hiring talented staff
composure
Putting people at ease
Setting a developmental
climate Acting with flexibility

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 Assessment Tools:
Performance Appraisals
Performance appraisal - the process of
measuring employees’ performance
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)
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 Conditions under which performance
measurement is useful for development:
The appraisal system must give employees specific
information about their performance problems and
ways they can improve their performance
Managers must be trained in providing
performance feedback
Managers must frequently give employees
performance feedback
Managers also need to monitor employees’
progress in carrying out the action plan

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 Assessment Tools: 360-Degree
Feedback System

Peers Rati Rati Manager

ng ng
For For
m m

Self

Rati Rati
Customer ng ng
For For Subordin
s m m ates

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 Activities involved in development planning using
the 360-degree feedback process: (1 of 2)
1. Understand strengths and weaknesses
 Review ratings for strengths and weaknesses
 Identify skills or behaviors where self and others’
ratings agree and disagree

2. Identify a development goal

 Choose a skill or behavior to develop
 Set a clear, specific goal with a specified outcome

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 Activities involved in development planning using
the 360-degree feedback process: (2 of 2)
3. Identify a process for recognizing goal
accomplishment

4. Identify strategies for reaching the development

goal
 Establish strategies such as reading, job experiences,
courses, and relationships
 Establish strategies for receiving feedback on
progress
 Establish strategies for receiving reinforcement for
new skills or behavior
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 Factors necessary for a 360-degree
feedback system to be effective:
The system must provide consistent (reliable)
ratings
Feedback must be job-related (valid)
The system must be easy to use, understandable,
and relevant
The system must lead to managerial development

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 360-Degree Feedback:
Important Issues to Consider
Who will the raters be?
How will you maintain the confidentiality of the
raters?
What behaviors and skills are job-related?
How will you ensure full participation and
complete responses from every employee who is
asked to be a rater?
What will the feedback report include?
How will you ensure that managers receive and
act on the feedback?
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 Job Experiences
Job experiences refer to 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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 To be successful in
their jobs,
employees must
stretch their skills.
They must be forced
to learn new skills,
apply their skills and
knowledge in a new
way, and master new
experiences.
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 Job Demands and Lessons Learned from Them
Making transitions Unfamiliar responsibilities
Proving yourself
Creating change Developing new directions
Inherited problems
Reduction decisions
Problems with employees
Having high level of responsibility High stakes
Managing business diversity
Job overload
Handling external pressure

Being involved in non-authority Influencing without authority

relationships
Facing obstacles Adverse business conditions
Lack of top management
support
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 How Job Experiences are Used for Employee
Development:
Promot
ion

Enlargement
of Current

Job Transfer
Rotation (Lateral
(Lateral Move)
Move)
Job
Experienc
es

Tempora
Downw ry
ard Assignm
ent with
Move Another
Organiza
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 Characteristics of Effective Job Rotation
Systems (1 of 2)
1. Job rotation is used to develop skills as well as
give employees experience needed for
managerial positions
2. Employees understand specific skills that will
be developed by rotation
3. Job rotation is used for all levels and types of
employees
4. All employees have equal opportunities for job
rotation assignments
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 Characteristics of Effective Job Rotation
Systems (2 of 2)
5. Job rotation is linked with the career
management process so employees know the
development needs addressed by each job
assignment
6. Benefits of rotation are maximized and costs are
minimized through managing time of rotations
to reduce workload costs and help employees
understand job rotation’s role in their
development plans

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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: (1 of 2)
Mentor and protégé participation is voluntary
relationship can be ended at any time without fear of
punishment
Mentor-protégé matching process does not limit the
ability of informal relationships to develop
Mentors are chosen on the basis of:
their past record in developing employees
willingness to serve as a mentor
evidence of positive coaching, communication, and
listening skills

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 Characteristics of Successful Formal
Mentoring Programs: (2 of 2)
The purpose of the program is clearly understood
The length of the program is specified
A minimum level of contact between the mentor and
protégé is specified
Protégés are encouraged to contact one another to
discuss problems and share successes
The mentor program is evaluated
Employee development is rewarded

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 Coaching Relationships
Coach – a peer or manager who works with
employees to:
motivate them
help them develop skills
provide reinforcement and feedback
Coaches need to be able to suggest effective
improvement actions

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 The Development Planning Process

The development planning process involves:

identifying development needs
choosing a development goal
identifying the actions that need to be taken by the
employee and the company to achieve the goal
determining how progress toward goal attainment will
be measured
investing time and energy to achieve the goal
establishing a timetable for development

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 Development Planning (continued)

An emerging trend in development is that the

employee must initiate the development planning
process

The development approach used is dependent on

the needs and development goal

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 Responsibilities in the Development
Planning Process: (1 of 2)
Development Employee Company Responsibility
Planning Responsibility
Process
Opportunity How do I need to Assessment information to
improve? identify strengths,
weaknesses, interests, and
values
Motivation Am I willing to invest Company assists in
the time and energy identifying personal and
to develop? company reasons for
change.
Manager discusses steps for
dealing with barriers and
challenges to development.

Goal How do I want to Company provides

Identification develop? development planning
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 Responsibilities in the Development
Planning Process: (2 of 2)
Development Employee Company Responsibility
Planning Responsibility
Process
Criteria How will I know I am Manager provides feedback
making progress? on criteria

Actions What will I do to Company provides

reach my assessment, courses, job
development goal? experiences, and
relationships
Accountability What is my Managers follows up on
timetable? progress toward
How can I ask others developmental goal and
for feedback on helps employees set a
progress toward my realistic timetable for goal
goal? achievement

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 Company Strategies for Providing
Development:

Individualization

Learner Control

Ongoing Support

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