LEARNING OBJECTIVES

Explain how employee development contributes to strategies related to employee

retention, developing intellectual capital and business growth.
Discuss the steps in the development planning process.
Explain the employees’ and company’s responsibilities in planning development.
Discuss current trends in using formal education for development.
Relate how assessment of personality type, work behaviors, and job performance
can be used for employee development.
Explain how job experiences can be used for skill development.
Develop successful mentoring programs.
Describe how to train managers to coach employees.
Discuss what companies are doing for melting the glass ceiling.
Use the 9-box grid for identifying where employees fit in a succession plan and
construct appropriate development plans for them.
 INTRODUCTION

Employee Development is a key contributor to a company’s competitive advantage by

helping employees understand their strengths, weaknesses, and interests and by showing them

how new jobs and expanded job responsibilities are available to them to meet their personal

growth needs.

This chapter begins by discussing the relationship between development, training, and
careers. Choosing an approach is one part of development planning. Second, before employees

choose development activities, the employee and the company must have an idea of the

employee’s development needs and the purpose of development. Identifying the needs and

purpose of development is part of its planning. The second section of the chapter describes the
steps of the development planning process. Employee and company responsibilities at each step

of the process are emphasized. Third, we look at development approaches, including formal
education, assessment, job experiences, and interpersonal relationships. The chapter

emphasizes the types of skills, knowledge, and behaviors that are strengthened by each

development method. The chapter concludes with a discussion of special issues in employee

development, including succession planning and using development to help women and
minorities move into upper-level management positions (referred to as “melting the glass ceiling”).

LO 9-1 Explain how employee development contributes to strategies related to employee

retention, developing intellectual capital and business growth.

Development and Training

refers to formal education, job experiences, relationships, and assessment
of personality and abilities that help employees prepare for the future.
Today’s careers are known as protean careers. A protean career is based on self-direction
with the goal of psychological success in one’s work. Employees take major responsibility for
managing their careers.
 The protean career has several implications for employee development. The goal of the
new career is psychological success: the feeling of pride and accomplishment that comes from
achieving life goals that are not limited to achievements at work (such as raising a family and
having good physical health). Psychological success is self-determined rather than solely
determined through signals the employee receives from the company (like salary increase and
promotion).

Comparison between Training and Development

Table 9.1 shows the differences between training and development. Traditionally, training
focuses on helping employees’ performance in their current jobs. Development prepares them for
other positions in the company and increases their ability to move into jobs that may not yet exist.
Development also helps employees prepare for changes in their current jobs that may result from
new technology, work designs, new customers, or new product markets. Development is
especially critical for talent management, particularly for senior managers and employees with
leadership potential.

DEVELOPMENT AND CAREERS

Employees need to develop new skills rather than rely on a static knowledge base. This
has resulted from companies’ need to be more responsive to customers’ service and product
demands.
The emphasis on continuous learning has altered the direction and frequency of movement
within careers (career pattern). Traditional career patterns consisted of a series of steps arranged
in a linear hierarchy, with higher steps related to increased authority, responsibility, and
compensation. Expert career patterns involve a lifelong commitment to a field or specialization
(such as law, medicine, or management).
 Development can facilitate employee engagement by enhancing their employability. It
reduces employees’ job hopping because they feel less need to change employers to build their
skill sets or gain valuable job experiences.
Development can facilitate employee engagement by enhancing their employability. It
reduces employees’ job hopping because they feel less need to change employers to build their
skill sets or gain valuable job experiences.

LO 9-2 Discuss the steps in the development planning process.

LO 9-3 Explain the employees’ and company’s responsibilities in planning development.

LO 9-4 Discuss current trends in using formal education for development.

Relate how assessment of personality type, work behaviors, and job performance
LO 9-5
can be used for employee development.

Development Planning System

A system to retain and motivate employees by identifying and meeting their development
needs (also called career management systems).

Figure 9.1 Steps and Responsibilities in the Career Management Process

Self-assessment refers to the use of information by employees to determine their career

interests, values, aptitudes, and behavioral tendencies. It often involves psychological tests such
as the Myers-Briggs Type Indicator (described later in the chapter), the Strong-Campbell Interest
Inventory, and the Self-Directed Search. The Strong-Campbell helps employees identify their
occupational and job interests; the Self-Directed Search identifies employees’ preferences for
working in different types of environments (like sales, counseling, landscaping, and so on). Tests
may also help employees identify the relative values they place on work and leisure activities.
Reality check refers to the information employees receive about how the company
evaluates their skills and knowledge and where they fit into the company’s plans (potential
promotion opportunities, lateral moves)

Goal setting refers to the process of employees developing short- and long-term
development objectives.

Action Planning
During this phase, employees complete an action plan. An action plan is a written strategy
that employees use to determine how they will achieve their short- and long-term career goals.
The development approach used depends on the needs and developmental goal.

Table 9.2 Design Factors of Effective Development Systems

Approaches to Employee Development

Four approaches are used to develop employees: formal education, assessment, job
experiences and interpersonal relationships. Many companies use a combination of these
approaches. Larger companies are more likely to use leadership training and development
planning more frequently than smaller companies. Keep in mind that although much development
activity is targeted at managers, all levels of employees may be involved in development.
 1. Formal Education Programs
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, and university programs in which participants actually live at the university while taking
classes. These programs may involve lectures by business experts, business games and
simulations, adventure learning, and meetings with customers.

Many companies also provide tuition reimbursement as a benefit for all employees to
encourage them to develop. Tuition reimbursement refers to the practice of reimbursing
employees’ costs for college and university courses and degree programs. Companies that have
evaluated tuition reimbursement programs have found that the programs increase employee
retention rates, readiness for promotion, and improve job performance.

2. Assessment
Assessment involves collecting information and providing feedback to employees about their
behavior, communication style, or skills. The employees, their peers, managers, and customers
may provide information.
Personality Tests and Inventories
Tests are used to determine if employees have the personality characteristics necessary
to be successful in specific managerial jobs or jobs involving international assignments.
Personality tests typically measure five major dimensions: extraversion, adjustment,
agreeableness, conscientiousness, and openness to experience.

Assessment Center
At an assessment center multiple raters or evaluators (assessors) evaluate employees’
performance on a number of exercises. An assessment center is usually an off-site location such
as a conference center. From 6 to 12 employees usually participate at one time. Assessment
centers are primarily used to identify if employees have the personality characteristics,
administrative skills, and interpersonal skills needed for managerial jobs. They are also
increasingly being used to determine if employees have the necessary skills to work in teams.
The types of exercises used in assessment centers include:
 a. Leaderless Group Discussion - Process in which a team of five to seven employees
solves an assigned problem together within a certain time period.
b. Interview - Employees are questioned about their work and personal experiences,
skills, and career plans.
c. In-Basket - A simulation of the administrative tasks of a manager’s job. The exercise
includes a variety of documents that may appear in the in-basket on a manager’s desk.
The participants read the materials and decide how to respond to them. Responses
might include delegating tasks, scheduling meetings, writing replies, or completely
ignoring the memo!
d. Role-Plays - A participant taking the part or role of a manager or other employee.

Performance Appraisals and 360-Degree Feedback Systems

Performance Appraisal
The process through which an organization gets information on how well an employee is
doing his or her job.
A recent trend in performance appraisals for management development is the use of
upward feedback and 360-degree feedback.

Upward Feedback
A performance appraisal process for managers that includes subordinates’ evaluations.

360-Degree Feedback Systems

A performance appraisal system for managers that includes evaluations from a wide range
of persons who interact with the manager. The process includes self evaluations as well as
evaluations from the manager’s boss, subordinates, peers, and customers.

LO 9-6 Explain how job experiences can be used for skill development.

3. Job Experiences
Most employee development occurs through job experiences. Job Experiences is the
relationships, problems, demands, tasks, and other features that employees face in their jobs. A
major assumption of using job experiences for employee development is that development is
most likely to occur when employees are given stretch assignments.
Stretch assignments refer to assignments in which there is a mismatch between the
employee’s skills and past experiences and the skills required for success on the job. To succeed
in their jobs, employees must stretch their skills—that is, they are forced to learn new skills, apply
their skills and knowledge in a new way, and master new experiences.

Job Enlargement
Adding challenges or new responsibilities to an employee’s current job.

Figure 9.2 How Job Experiences Are Used for Employee Development
Job Rotation and Lateral Moves
Job Rotation
The process of systematically moving a single individual from one job to another over the
course of time. The job assignments may be in various functional areas of the company or
movement may be between jobs in a single functional area or department.
It gives employees a series of job assignments in various functional areas of the company
or movement among jobs in a single functional area or department. Job rotation involves a
planned sequence of jobs that the employee is expected to hold, while lateral moves may not
necessarily involve a predetermined sequence of jobs or positions.
Job rotation helps employees gain an overall appreciation of the company’s goals,
increases their understanding of different company functions, develops a network of contacts,
and increases their skills

Transfers, Promotions, and Downward Moves

Upward, lateral, and downward mobility is available for development purposes in most
companies.
Transfer
The movement of an employee to a different job assignment in a different area of the
company.
Promotions
Advancement into positions with greater challenge, more responsibility, and more authority
than the employee’s previous job.
Downward Move
A job change involving a reduction in an employee’s level of responsibility and authority. A
downward move occurs when an employee is given less responsibility and authority. This may
involve a move to another position at the same level (lateral demotion), a temporary cross-
functional move, or a demotion because of poor performance. Temporary cross-functional moves
to lower-level positions, which give employees experience working in different functional areas,
are most frequently used for employee development.
Temporary Assignments
Job tryouts such as employees taking on a position to help them determine if they are
interested in working in a new role. Temporary assignments can include a sabbatical. A sabbatical
refers to a leave of absence from the company for personal reflection, renewal, and skill
development.

LO 9-7 Develop successful mentoring programs.

4. Interpersonal Relationships
Employees can also develop skills and increase their knowledge about the company and
its customers by interacting with a more experienced organization member. Mentoring and
coaching are two types of interpersonal relationships that are used to develop employees.

Mentoring
A mentor is an experienced, productive senior employee who helps develop a less
experienced employee (the protégé). Because of the lack of potential mentors, and recognizing
that employees can benefit from relationships with peers and colleagues, some companies have
initiated and supported group and peer mentoring.

Developing Successful Mentoring Programs.

One major advantage of formalized mentoring programs is that they ensure access to
mentors for all employees, regardless of gender or race. An additional advantage is that
participants in the mentoring relationship know what is expected of them. One limitation of formal
mentoring programs is that mentors may not be able to provide counseling and coaching in a
relationship that has been artificially created.

Benefits of Mentoring Relationships.

Both mentors and protégés can benefit from a mentoring relationship. Research suggests
that mentors provide career and psycho-social support to their protégés. Career support includes
coaching, protection, sponsorship, and providing challenging assignments, exposure, and
visibility. Psychosocial support includes serving as a friend and a role model, providing positive
regard and acceptance, and creating an outlet for the protégé to talk about anxieties and fears.
Additional benefits for the protégé include higher rates of promotion, higher salaries, and greater
organizational influence.
 Reverse mentoring refers to mentoring in which younger employees mentor more senior
employees.

LO 9-8 Describe how to train managers to coach employees.

Coaching
A coach is a peer or manager who works with an employee to motivate him, help him
develop skills, and provide reinforcement and feedback. There are three roles that a coach can
play. Part of coaching may be one-on-one with an employee (such as giving feedback). Another
role is to help employees learn for themselves. This involves helping them find experts who can
assist them with their concerns and teaching them how to obtain feedback from others. Third,
coaching may involve providing resources such as mentors, courses, or job experiences that the
employee may not be able to gain access to without the coach’s help.

LO 9-9 Discuss what companies are doing for melting the glass ceiling.

Special Issues in Employee Development

MELTING THE GLASS CEILING
A major development issue facing companies today is how to get women and minorities
into upper-level management positions—how to melt the glass ceiling.

Glass Ceiling
A barrier to advancement to higher-level jobs in the company that adversely affects women
and minorities. The barrier may be due to lack of access to training programs, development
experiences, or relationships (e.g., mentoring).

LO 9-10 Use the 9-box grid for identifying where employees fit in a succession plan and
construct appropriate development plans for them.

SUCCESSION PLANNING
Succession planning refers to the process of identifying and tracking high-potential
employees who are capable of moving into different positions in the company resulting from
planned or unplanned job openings due to turnover, promotion, or business growth.
 Succession planning is often discussed when considering company’s managers or top
leaders but it is an important consideration for any job. Succession planning helps organizations
in several different ways. It requires senior management to systematically review leadership talent
in the company. It ensures that top-level managerial talent is available. It provides a set of
development experiences that managers must complete to be considered for top management
positions; this avoids premature promotion of managers who are not ready for upper management
ranks.

High-Potential Employees
Employees the company believes are capable of being successful in high-level management
positions.

Bench Strength
The business strategy of having a pool of talented employees who are ready when needed to
step into a new position within the organization.

Table 9.3 The Process of Developing a Succession Plan

Table 9.3 shows the process used to develop a succession plan.

 Typically, succession planning reviews first involve employees’ managers and human
resources. A talent review could also include an overall assessment of leadership talent in the
company, an identification of high-potential employees, based on their performance and potential,
and a discussion of plans to keep key managers from leaving the company. Many companies use
the 9-box grid for conducting the succession planning review.

The 9-box grid is a three-by-three matrix used by groups of managers and executives to
compare employees within one department, function, division, or the entire company. The 9-box
grid is used for analysis and discussion of talent, to help formulate effective development plans
and activities, and to identify talented employees who can be groomed for top-level management
positions in the company. As shown in Figure 9.5 one axis of the matrix is based on an
assessment of job performance. The other axis is typically labeled “potential” or “promotability.”
Typically, managers’ assessment of performance (based on the company’s performance
management system) and potential.

SUMMARY

This chapter emphasized the various development methods that companies use: formal
education, assessment, job experiences, and interpersonal relationships. Most companies use
one or more of these approaches to develop employees. Formal education involves enrolling
employees in courses or seminars offered by the company or educational institutions.
Assessment involves measuring the employee’s performance, behavior, skills, or personality
characteristics. Job experiences include job enlargement, rotating to a new job, promotions, or
transfers. A more experienced, senior employee (a mentor) can help employees better
understand the company and gain exposure and visibility to key persons in the organization.
Part of a manager’s job responsibility may be to coach employees. Regardless of the
development approaches used, employees should have a development plan to identify (1) the
type of development needed, (2) development goals, (3) the best approach for development,
and (4) whether development goals have been reached. For development plans to be effective,
both the employee and the company have responsibilities that need to be completed.
REFERENCE

Noe, Raymond A., et. al (2017). Human Resource Management Gaining a Competitive
Advantage, 10th Edition. USA: McGraw- Hill Education.