Employee Development

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.

It is a planned systematic and continuous process of learning and growth by which managers develop their conceptual and analytical abilities to manage. It is primarily concerned with improving the performance of managers by giving them stimulating opportunities for growth and development.

Comparison Between Training and Development Focus Current Future Use of work experiences Low High Goal Preparation for current job Preparation for changes Participation Required Voluntary

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

Approaches to Employee Development Assessment Formal Education Job Experiences Interpersonal Relationships

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

Examples: Schwan – Minnesota based frozen food delivery service had created its own corporate university IBM,Home Depot depend on inhouse development programmes GE has one of the worlds oldest and most widely known MDP centers in the world and GE develops managers at John.F.Welch Leadership center at Crotonville,NY

Lot of universities offer executive MBA programs … Tuition reimbursements

Examples of development programs at GE Description Target Audience Courses Executive Development Sequence Emphasis on strategic thinking, leadership, cross-functional integration, competing globally, customer satisfaction Senior professionals and executives identified as high-potential Manager Development Global Business Management Executive Development Core Leadership Program Development of functional expertise, business excellence, management of change Managers Corporate Entry Leadership Professional Development New Manager Development Experienced Manager Professional Development Program Emphasis on preparation for specific career path New Employees Audit Staff Financial Management Human Resources Technical Leadership

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

Assessment involves collecting information and providing feedback to employees about their behavior, communication style, or skills

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

Popular Assessment Tools Myers-Briggs Type Indicator® (MBTI) Assessment Center Benchmarks Performance Appraisals and 360-Degree Feedback Systems 4

Assessment Tools: Myers-Briggs (MBTI) Most popular psychological test for employee development Used for understanding such things as: communication motivation teamwork work styles leadership

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

Examples of Skills Measured by Assessment Center Exercises In-basket Scheduling Exercise Leaderless Group Discussion Personality Test Role Play Leadership X Problem solving Interpersonal Administrative Personal

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

Skills Related to Managerial Success Confronting problem subordinates Team orientation Balance between personal life and work Decisiveness Self-awareness Hiring talented staff Putting people at ease Acting with flexibility 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

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)

Assessment Tools: 360-Degree Feedback System Peers Manager Rating Form Rating Form Self Rating Form Rating Form Customers Subordinates

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

Methods/techniques of MDP Decision making skills In Basket exercises Business Games Case study Interpersonal skills Role play Sensitivity training Behavior modeling Job knowledge On the job experiences Coaching Understudy

Organizational knowledge Job Rotation Multiple management General Knowledge Special courses Special meetings Special readings Specific Individual needs Special Projects Committee assignments

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.

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 relationships Influencing without authority Facing obstacles Adverse business conditions Lack of top management support Lack of personal support Difficult boss

Characteristics of Effective Job Rotation Systems (1 of 2) Job rotation is used to develop skills as well as give employees experience needed for managerial positions Employees understand specific skills that will be developed by rotation Job rotation is used for all levels and types of employees All employees have equal opportunities for job rotation assignments

Characteristics of Effective Job Rotation Systems (2 of 2) Job rotation is linked with the career management process so employees know the development needs addressed by each job assignment 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

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

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

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

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

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

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

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

Responsibilities in the Development Planning Process: (2 of 2) Employee Responsibility Company Responsibility Criteria How will I know I am making progress? Manager provides feedback on criteria Actions What will I do to reach my development goal? Company provides assessment, courses, job experiences, and relationships Accountability What is my timetable? How can I ask others for feedback on progress toward my goal? Managers follows up on progress toward developmental goal and helps employees set a realistic timetable for goal achievement

Company Strategies for Providing Development: Individualization Learner Control Ongoing Support