1. Copyright © 2015 Pearson Education, Inc.

2. Chapter 10 – Assessing Internal Candidates
Copyright © 2015 Pearson Education, Inc.  

3. Copyright © 2015 Pearson Education, Inc.
Learning Objectives
After studying this chapter, you should be able to:
Identify the goals of internal assessment.
Discuss how internal assessment can enhance a firm’s strategic capabilities.
Describe different internal assessment methods.
Discuss the importance of integrating succession management and career development.
Describe two models of internal assessment.
Copyright © 2015 Pearson Education, Inc.  

4. Copyright © 2015 Pearson Education, Inc.
Internal Assessment
The evaluation of a firm’s current employees for training, reassignment, promotion, or dismissal purposes
Evaluates employees’ fit with other jobs
Assesses employees to enhance the firm’s strategic capabilities by aligning a firm’s talent with its vision, goals, and business strategy
Informs downsizing decisions
Copyright © 2015 Pearson Education, Inc.  

5. Internal Assessment Goals
Maximize fit
Accurate assessment
Maximize return on investment
Positive stakeholder reactions
Support talent philosophy and HR strategy
Establish and reinforce HR strategy and employer image
Identify employees’ development needs
Assessing ethically
Legal compliance
Copyright © 2015 Pearson Education, Inc.  

6. Internal Assessment Methods
Skills inventories
Mentoring programs
Performance reviews of task and interpersonal behaviors
Multi-source assessments
Job knowledge tests
Assessment center methods
Clinical assessments
Copyright © 2015 Pearson Education, Inc.  

7. Multisource Assessment
Copyright © 2015 Pearson Education, Inc.  

8. Who Best Rates Which Behaviors?
Copyright © 2015 Pearson Education, Inc.  

9. Copyright © 2015 Pearson Education, Inc.
Nine Box Matrix
Nine box matrix: a combined assessment of an employee’s performance and potential.
Is a method for displaying judgments made about employees, not for making those judgments.
Its value depends on the quality of the assessment methodology that determines the box each individual is placed in.
It can help companies understand the overall strength of their workforce, but only if the employees were accurately evaluated in the first place.
Copyright © 2015 Pearson Education, Inc.  

10. Career Crossroads Model
Focuses on managerial and leadership positions rather than technical or professional work.
The natural hierarchy of work that exists in most large, decentralized business organizations consists of six career passages from the entry level to the top job, with each passage representing increased complexity. The six passages are:
Starting Point: Managing yourself
Passage 1: Managing others
Passage 2: Managing managers
Passage 3: Managing a function
Passage 4: Managing a business
Passage 5: Managing multiple businesses
Passage 6: Managing the enterprise
Copyright © 2015 Pearson Education, Inc.  

11. Succession Management
Succession management: an ongoing process of systematically identifying, assessing, and developing an organization’s leadership capabilities to enhance its performance
Succession management plans: written policies that guide the succession management process
Replacement planning: the process of creating back-up candidates for specific senior management positions
Copyright © 2015 Pearson Education, Inc.  

12. Succession Management Database
Copyright © 2015 Pearson Education, Inc.  

13. Steps in Developing a Succession Management System
Copyright © 2015 Pearson Education, Inc.  

14. What Makes Succession Management Effective?
Understanding the nature of talent gaps with enough time before the talent is needed can allow the organization to:
Plan for and remedy any workforce talent deficiencies
Develop an external recruiting strategy to bring in external talent
Redesign the work to reduce the need for the talent expected to be in short supply
Plan alternate career paths for surplus talent
Copyright © 2015 Pearson Education, Inc.  

15. Effective Succession Management Systems
The succession management process needs to make sense to and be usable by different business units.
A standardized process can help to focus and guide the development of employees to meet the strategic needs of the organization, and increase employee perceptions of the program’s fairness by reducing opportunities for favoritism.
The process should also align with other human resource processes including recruitment, selection, rewards, training, and performance management.
Continually evaluate and improve the system.
Copyright © 2015 Pearson Education, Inc.  

16. Succession Management Tips
Copyright © 2015 Pearson Education, Inc.  

17. Copyright © 2015 Pearson Education, Inc.
Career Planning
Career planning: a continuous process of self-assessment and goal setting.
To be strategic, career planning needs to complement the expected future talent needs of the organization.
When integrated with the organization’s succession management and labor forecasting processes, career planning and succession management can help give any organization a snapshot of available talent for meeting current and future needs.
Copyright © 2015 Pearson Education, Inc.  

18. Career Development Tools
Assessment centers simulate the position an employee is interested in pursuing and whether or not they are a good fit for the job.
Career counseling and career development workshops help individuals understand the jobs that best match their motivations and talents, and help them develop the skills they need to successfully compete for these opportunities.
Training and continuing education – skills in training in a more formalized educational setting.
Job rotation, challenging assignments and mentoring
Sabbaticals – used to reenergize employees
Challenging and developmental job assignments can enhance key competencies and build experience in important job tasks before the individual assumes the position.
Copyright © 2015 Pearson Education, Inc.  

19. Making a Career Development Plan
Assess yourself
Set goals
Develop an action plan
Revisit and revise as needed
Copyright © 2015 Pearson Education, Inc.  

20. Evaluating Internal Assessment
Validity—whether the assessment method predicts relevant components of job performance
Return on investment—whether the assessment method generates a financial return that exceeds the cost associated with using it
Applicant reactions—including the perceived job relatedness and fairness of the assessment method
Copyright © 2015 Pearson Education, Inc.  

21. Evaluating Internal Assessment, cont.
Selection ratio—having a low selection ratio means hiring only a few applicants, which allows an assessment method to have maximal impact in improving the performance of the people hired
Usability—people in the organization must be willing and able to use the method consistently and correctly
Adverse impact—an assessment method is more effective if it predicts job performance and other important hiring outcomes without discriminating against members of a protected class.
Copyright © 2015 Pearson Education, Inc.  

22. Copyright © 2015 Pearson Education, Inc.
Discussion Questions
How is internal assessment useful for more than just evaluating employees for other positions in the company?
Do you feel that multi-source feedback is appropriate? Why or why not?
Using the nine box matrix, an employee doing a good job might actually be rated lower than a mediocre employee who has been working in a developmental stretch assignment. Do you feel that this is fair? Why or why not?
Copyright © 2015 Pearson Education, Inc.  

23. Copyright © 2015 Pearson Education, Inc.
Discussion Questions
Given how important succession management programs are, how can companies persuade their managers to support and commit to their succession management activities?
Why is it important to integrate succession management with career planning?
Copyright © 2015 Pearson Education, Inc.  

24. Copyright © 2015 Pearson Education, Inc.
Strategy Exercise
Working in groups of 3-5, read the following vignette and develop some suggestions for the company based on the material you read in this chapter. Be prepared to share your ideas with the class. Twisted is a small company with big dreams. The shopping-mall oriented hot pretzel company has successfully grown its revenues by a rate of 10% annually over the last 10 years. Twisted wants to sustain its growth rate in the years ahead. The company has traditionally hired new store managers from outside of the company. However, in the last few years, it has had a difficult time recruiting enough of these people. The CEO feels that there are probably a large number of employees who might make good managers. However, the company has no good internal assessment systems in place to identify them. The CEO asks your group to help the firm identify internal managerial talent so it can continue to pursue its growth strategy. What methods would you suggest for doing so?
Copyright © 2015 Pearson Education, Inc.  

25. Opening Vignette Exercise
In this chapter’s opening vignette, you learned how Fluor combines succession management and career development to ensure a solid talent pipeline of project managers and senior executives. Working in a group of three to five students, reread the vignette. Be prepared to share with your class your answers to the following questions:
Why do you think that Fluor’s internal assessment and development system is so successful?
What additional ideas do you have that could help Fluor fill as many internal positions as possible with its current employees?
Copyright © 2015 Pearson Education, Inc.  

26. Chern’s Case Assignment
Make recommendations to Chern’s regarding how it can improve its internal promotion practices.
Recommend ways to identify and develop sales associates who have the potential to become department managers.
Copyright © 2015 Pearson Education, Inc.  

27. Copyright © 2015 Pearson Education, Inc.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2015 Pearson Education, Inc.