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9
Chapter
EmployeeEmployee
DevelopmentDevelopment

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

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Why is employee development important?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 DevelopmentApproaches to Employee Development
Formal
Education
Assessment
Job
Experiences
Interpersonal
Relationships

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Formal EducationFormal 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 GEExamples of development programs at GE
Program 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

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Important trends in executive education: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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AssessmentAssessment (continued)(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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Myers-Briggs Type
Indicator®
(MBTI)
Assessment Center
Benchmarks
Performance
Appraisals and
360-Degree Feedback
Systems
Popular Assessment ToolsPopular Assessment Tools

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Assessment Tools:Assessment Tools: Myers-Briggs (MBTI)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: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 Tools: Assessment CenterAssessment Center
The assessment centerassessment 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 AssessmentExamples of Skills Measured by Assessment
Center ExercisesCenter Exercises
SKILLS In-basket Scheduling
Exercise
Leaderless
Group
Discussion
Personality
Test
Role Play
Leadership X X X X
Problem
solving
X X X X
Interpersonal X X X
Administrative X X X
Personal X X X
EXERCISES

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Assessment Tools: BenchmarksAssessment 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 SuccessSkills 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:Assessment Tools:
Performance AppraisalsPerformance Appraisals
Performance appraisalPerformance 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 performanceConditions under which performance
measurement is useful for development: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:Assessment Tools: 360-Degree360-Degree
Feedback SystemFeedback System
Rating
Form
Rating
Form
Rating
Form
Rating
Form
Self
Peers
Customers Subordinates
Manager

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Activities involved in development planning usingActivities involved in development planning using
the 360-degree feedback process:the 360-degree feedback process: (1 of 2)(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 usingActivities involved in development planning using
the 360-degree feedback process:the 360-degree feedback process: (2 of 2)(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-degreeFactors necessary for a 360-degree
feedback system to be effective: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:360-Degree Feedback:
Important Issues to ConsiderImportant 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 ExperiencesJob 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 ThemJob 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

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How Job Experiences are Used for EmployeeHow Job Experiences are Used for Employee
Development:Development:
Enlargement of
Current
Job
Experiences
Promotion
Job Rotation
(Lateral Move)
Transfer
(Lateral Move)
Downward
Move
Temporary
Assignment
with Another
Organization

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Characteristics of Effective Job RotationCharacteristics of Effective Job Rotation
SystemsSystems (1 of 2)(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 RotationCharacteristics of Effective Job Rotation
SystemsSystems (2 of 2)(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 RelationshipsInterpersonal 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

32. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. 9 - 32
Characteristics of Successful FormalCharacteristics of Successful Formal
Mentoring Programs:Mentoring Programs: (1 of 2)(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 FormalCharacteristics of Successful Formal
Mentoring Programs:Mentoring Programs: (2 of 2)(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 RelationshipsCoaching 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 ProcessThe Development Planning Process
The development planning processdevelopment 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 PlanningDevelopment Planning (continued)(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 DevelopmentResponsibilities in the Development
Planning Process:Planning Process: (1 of 2)(1 of 2)
Development
Planning Process
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.

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Responsibilities in the DevelopmentResponsibilities in the Development
Planning Process:Planning Process: (2 of 2)(2 of 2)
Development
Planning Process
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

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Company Strategies for ProvidingCompany Strategies for Providing
Development:Development:
Individualization
Learner Control
Ongoing Support