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Introduction• Restructuring of organizations makes it essential that companies reconsider the concepts of career and career management in order to retain and motivate employees.• Companies successful at managing employee growth that accompanies business expansion emphasize that employees are to be responsible for career management.
Introduction (continued) • These companies do provide resources supporting careers such as development opportunities, mentoring, and training managers in how to coach employees. • A major challenge is how to balance advancing current employees’ careers with simultaneously attracting and acquiring employees with new skills.
Top 15 Retention DriversRetention Items %1. Exciting work & challenge 48.42. Career Growth, Learning & Development 42.63. Working with great people & relationships 41.84. Fair pay 31.85. Supportive management/great boss 25.16. Being recognized, valued & respected 23.07. Benefits 22.08. Meaningful work, making a difference & contribution 17.09. Pride in organization, its mission & product 16.510. Great work environment / culture 16.011. Flexibility 13.612. Autonomy, creativity and a sense of control 12.613. Job security & stability 10.514. Location 10.315. Diverse, changing work assignments 7.7Source: Career Systems International, 2005
Other ResearchRetention Items1. Career growth, learning and development2. Exciting work and challenge3. Meaningful work, making a difference and a contribution4. Great people5. Being part of a team6. Good boss7. Recognition for work well done8. Fun on the job9. Autonomy, sense of control over work10. Flexibility – for example, in work hours and dress code11. Fair pay and benefits12. Inspiring leadership13. Pride in organization, its mission and quality of product14. Great work environment15. Location Source: Love ‘Em or Lose ‘Em, 1999
Purpose of Human ResourceManagementHuman Resource Management -involves attracting, developing, andmaintaining a quality workforce. Basic Responsibilities of Human Resource Management 1. Attract a quality workforce—human resource planning, recruitment, and selection. 2. Develop a quality workforce—employee orientation, training, performance appraisal. 3. Maintain a quality workforce—retention and career development.
Step One: Mission, Vision, and Values• Mission – The basic purpose of the organization as well as its scope of operations• Strategic Vision – A statement about where the company is going and what it can become in the future; clarifies the long-term direction of the company and its strategic intent• Core Values – The strong and enduring beliefs and principles that the company uses as a foundation for its decisions
Step Two: Environmental ScanningThe systematic monitoring of the major external forcesinfluencing the organization. 1. Economic factors: general and regional conditions 2. Competitive trends: new processes, services, and innovations 3. Technological changes: robotics and office automation 4. Political and legislative issues: laws and administrative rulings 5. Social concerns: child care and educational priorities 6. Demographic trends: age, composition,and literacy
Scanning the Internal EnvironmentCultural Audits -Audits of the culture and quality ofwork life in an organization. How do employees spend their time? How do they interact with each other? Are employees empowered? What is the predominant leadershipstyle of managers? How do employees advance within theorganization ?
Competitive Advantage through People • Core Competencies – Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. • Sustained competitive advantage through people is achieved if these human resources: 1. Are valuable. 2. Are rare and unavailable to competitors. 3. Are difficult to imitate. 4. Are organized for synergy.
Composition: The Human Capital Architecture• Core knowledge workers – Employees who have firm-specific skills that are directly linked to the company’s strategy. • Example: Senior software programmer• Traditional job-based employees – Employees with skills to perform a predefined job that are quite valuable to a company, but not unique. • Example: Security guard
Composition: The Human Capital Architecture (cont’d) • Contract labor – Employees whose skills are of less strategic value and generally available to all firms. • Example: General electrician • Alliance/partners – Individuals and groups with unique skills, but those skills are not directly related to a company’s core strategy. • Example: Independent product label designer
Human Resource Practices• Human resource planning is the process of analyzing staffing needs and identifying actions that should be taken to satisfy them over time.
Traditional Versus Career Development FocusSource: Adapted from Fred L. Otte and Peggy G. Hutcheson, Helping Employees ManageCareers (Upper Saddle River, NJ: Prentice Hall, 1992), p. 10.
HR is growing in importance, if……we envision and manage HR as a business Consumer Markets Consumer Markets Value delivery better than Value delivery better than What Business is competitors competitors HR In? Enterprise Strategy and Objectives Human Capital Strategy to Achieve the Enterprise Strategy Talent Markets Talent Markets High High Competitive Financial Markets Financial Markets Performance Performance HR Employer of choice – Employer of choice – Talent Organization Services Returns in excess of Returns in excess of Employees of choice Employees of choice alternatives alternatives Dependable HR Controls Public Policy and Public Policy and Reputation Reputation Conformity with Conformity with expectations expectations
Performance Appraisals • Performance Appraisal – The process of formally evaluating performance and feedback to an employee Two Purposes of Performance Appraisal 1. Evaluation—document and let people know how well they are doing; judgmental role. 2. Development—identify how training and support can improve performance; counseling role.
Retention And Career Development• Career Development – Manages how a person grows and progresses in their career• Career Planning – The process of managing career goals and individual capabilities with opportunities for their fulfillment
Career and Health • High levels of career uncertainty and occupational dissatisfaction are positively correlated with high levels of psychological and physical distress (Herr, 1989). • High levels of unemployment are associated with increased rates of chemical dependency, interpersonal violence, suicide, criminal activity, and admissions to psychiatric facilities (Herr, Cramer, & Niles, 2004).
The Basics of Career Management• Career – The occupational positions a person has had over many years.• Career management – The process for enabling employees to better understand and develop their career skills and interests, and to use these skills and interests more effectively.• Career development – The lifelong series of activities that contribute to a person’s career exploration, establishment, success, and fulfillment.
The Basics of Career Management • Career planning – The deliberate process through which someone becomes aware of personal skills, interests, knowledge, motivations, and other characteristics; and establishes action plans to attain specific goals. • Careers today – Careers are no simple progressions of employment in one or two firms with a single profession. – Employees now want to exchange performance for training, learning, and development that keep them marketable.
The Meaning of “WORK” “Work is undeniably one of the mostessential of all human activities. For a start, it is the basis of economic survival of individuals… and society. Beyond this, an individual’s job structures much of her orhis time and, one hopes, provides a sourceof personal fulfillment. An occupation also shapes one’s identity and, in the eyes of others, largely determines an individual’s status or position in society”Work, Industry, and Canadian Society, Krahn & Lowe. 1996 26
Why Is Career Management Important?From the company’s perspective, the failure tomotivate employees to plan their careers can resultin: – A shortage of employees to fill open positions – Lower employee commitment – Inappropriate use of monies allocated for training and development programs
Why Is Career Management Important? (continued) • From the employees’ perspective, lack of career management can result in: – Frustration – Feelings of not being valued by the company – Being unable to find suitable employment should a job change be necessary due to mergers, acquisitions, restructuring, or downsizing.
Career Management and Career Motivation• Career motivation refers to: – Employees’ energy to invest in their careers – Their awareness of the direction they want their careers to take – The ability to maintain energy and direction despite barriers they may encounter• Career motivation has three aspects: – Career resilience – Career insight – Career identity
The Value of Career MotivationComponents of Career Motivation Career Resilience Company Value • Innovation • Employees adapting to unexpected changes • Commitment to Company • Pride in Work Career Insight Employee Value • Be aware of skill strengths and weaknesses • Participate in learning activities • Cope with less than ideal working conditions • Avoid skill obsolescence Career Identity
What Is A Career? • Traditional Career – Sequence of positions held within an occupation – Context of mobility is within an organization – Characteristic of the employee • Protean Career – Frequently changing based on changes in the person and changes in the work environment – Employees take major responsibility for managing their careers
Comparison of Traditional Career and Protean Career Dimension Traditional Career Protean CareerGoal Promotions Psychological success Salary increasePsychological contract Security for commitment Employability for flexibilityMobility Vertical LateralResponsibility for Company EmployeeManagementPattern Linear and expert Spiral and transitoryExpertise Know how Learn howDevelopment Heavy reliance on formal Greater reliance on relationships training and job experiences
A Model of Career Development• Career development is the process by which employees progress through a series of stages.• Each stage is characterized by a different set of developmental tasks, activities, and relationships.• There are four career stages: – Exploration – Establishment – Maintenance – Disengagement
A Model of Career Development (continued) Exploration Establishment Maintenance DisengagementDevelopmental Identify interests, Advancement, Hold on to Retirementtasks skills, fit between growth, security, accomplishments planning, change self and work develop life style , update skills balance between work and non- workActivities Helping Making Training Phasing out of Learning independent Sponsoring work Following contributions Policy making directionsRelationships Apprentice Colleague Mentor Sponsorto otheremployeesTypical age Less than 30 30 – 45 45 – 60 61+Years on job Less than 2 years 2 – 10 years More than 10 More than 10 years years
The Individual • Accept responsibility for your own career. Roles in Career • Assess your interests, skills, and values. Development • Seek out career information and resources. • Establish goals and career plans. • Utilize development opportunities. • Talk with your manager about your career. • Follow through on realistic career plans.The Manager • Provide timely performance feedback. • Provide developmental assignments and support. • Participate in career development discussions. • Support employee development plans.The Organization • Communicate mission, policies, and procedures. • Provide training and development opportunities. • Provide career information and career programs. Source: Fred L. Otte and Peggy G. Hutcheson, Helping Employees Manage Careers (Upper Saddle River, NJ: Prentice Hall, 1992), p. 56. • Offer a variety of career options.
Career Development Process 1. Discovery Determine Where You Want To Go 4. Preparation Get closer to your goal Management Support and Coaching 2. Assessment Identify strengths & development areas 3. Planning Make a Career Development Plan
Succession-PlanningChecklistRATE THE SUCCESS OF YOURSUCCESSION PLANNINGFor each characteristic of a best-practice succession-planning andmanagement program appearing inthe left column below, enter anumber to the right to indicate howwell you believe your organizationmanages that characteristic. Askother decision makers in yourorganization to complete this formindividually. Then compile thescores and compare notes.Scores Source: From William J. Rothwell, “Putting Success into Your Succession Planning,” The Journal of Business Strategy 23, no. 3 (May/June 2002): 32–37. Republished with permission— Thomson Media, One State Street, 26th Floor, New York, NY 10004.
Sample Agenda— Two-Day Career Planning WorkshopSource: Fred L. Otte and Peggy Hutcheson, Helping EmployeesManage Careers (Upper Saddle River, NJ: PrenticeHall, 1992), pp. 22–23. In addition to career developmenttraining and follow-up support, First USA Bank has also outfittedspecial career development facilities at its work sites thatemployees can use on company time. These contain materialssuch as career assessment and planning tools.
Employee CareerDevelopment Plan Source: Reprinted with permission of the publisher, HRnext.com Copyright HRnext.com, 2003.
Design factors of Effective Career Management Systems• System is positioned as a response to a business need.• Employees and managers participate in development of the system.• Employees are encouraged to take an active role in career management.• Evaluation is ongoing and used to improve the system.
Design factors of Effective Career Management Systems (continued)• Business units can customize the system for their own purposes.• Employees need access to career information sources.• Senior management supports the career system.• Career management is linked to other human resource practices such as training, recruiting systems, and performance management.
Traditional talent management is not up to the challenge Acquire Develop Deploy Retain Largely a function Assignments for of training “A” PlayersHeavy reliance on Driven by compensation expendituresexternal recruitment benchmarks and surveysto meet immediateneeds Deficiencies • Minimal alignment with business strategy • Less effective given labor market realities • Does not maximize the “yield”
A new model focuses on develop, deploy, connect 1. Develop 2. Deploy Acquire Retain 3. Connect Develop Deploy Build capability Broaden and through on-the-job deepen capability learning through stretch Connect assignments Create networks and high-quality relationships that maximize performance Advantages • Focused on productivity of critical talent • Creates dividends for acquisition and retention
A new model focuses on develop, deploy, connectIn an environment of skills shortages and limited resources, thefocus must shift from managing “A” players to “A” positions From “A” Players To “A” Positions How do we support our How do we support top performers? our most critical positions? A Critical Workforce Segment-Based Talent Strategy
A new model focuses on develop, deploy, connectBuilding a critical workforce segment strategy: example Business Unit Strategic Plan Build new technologies Grow Asia HR, Finance, IT, Sales and Business Supply Chain Marketing Development HR Business Global Key Sales Technology Demand AP Analyst Partner Account Mgr Analyst Platform Mgr Planning Mgr Strategic Core Critical Strategic Critical Strategic Support Support Position Support Position SupportFor Core Support Positions For Critical Positions – regardless of level • Reduce talent investments or outsource • Increase access to investments and buildFor Strategic Support Positions talent by feeding from strategic support • Maintain investments and buy talent positions
A new model focuses on develop, deploy, connectWorkforce planning focuses HR programs levers that will mosteffectively meet the business demand for critical talent 3. Talent Management 1. Talent Demand 2. Talent Supply Objectives Forecast Forecast Internal and Driven by business plans external labor and workforce attrition 4. Talent Management market factors Programs Serves to define: • Future business demand for critical talent • Opportunities presented by the external market • Potential to maximize existing talent
A new model focuses on develop, deploy, connectDevelop: Ensuring that critical workforce segments are acquiringcutting edge skills to drive innovation • Formal training helpful for meeting specific requirements • Learning is social in nature - people Capability learn through their interactions with Develop Deploy others, especially when tasked with Performance real-life issues Commitment Alignment • People are more committed to the learning that occurs when they are Connect “tested” in ways that matter, especially when they collaborate with or are accountable to others
A new model focuses on develop, deploy, connectDeploy: Strategic deployment of critical workforce segments willenable intensified growth • People learn the most in jobs that stretch them to grow, tap their unique skills, and fuel their imaginations Capability • The best organizations avoid Develop Deploy pigeonholing people based on the Performance confines of their resumes Commitment Alignment • They also employ formal systems to manage performance - And they offer Connect frequent dialogue and feedback
A new model focuses on develop, deploy, connectConnect: Connecting talent in critical workforce segments convertsknowledge into productive action • People-to-People: Cultivate high- performance networks of high-quality relationships (i.e., CoPs, knowledge Capability management programs) Develop Deploy • People-to-Purpose: Build and sustain a Performance sense of personal and organizational Commitment Alignment mission • People-to-Resources: Manage Connect knowledge, technology, tools, capital, time, and physical space to achieve professional and business goals
Employees’ Role in Career Management• Take the initiative to ask for feedback from managers and peers regarding their skill strengths and weaknesses.• Identify their stage of career development and development needs.• Seek challenges by gaining exposure to learning opportunities.• Interact with employees from different work groups inside and outside the company.• Create visibility through good performance.
Managers’ Role in Career Management Roles ResponsibilitiesCoach Probe problems, interests, values, needs Listen Clarify concerns Define concernsAppraiser Give feedback Clarify company standards Clarify job responsibilities Clarify company needsAdvisor Generate options, experiences, and relationships Assist in goal setting Provide recommendationsReferral agent Link to career management resources Follow up on career management plan
HR Manager’s Role in Career Management • Provide information or advice about training and development opportunities. • Provide specialized services such as testing to determine employees’ values, interests, and skills. • Help prepare employees for job searches. • Offer counseling on career-related problems.
Company’s Role in Career ManagementCompanies are responsible forproviding employees with theresources needed to besuccessful in career planning: – Career workshops – Information on career and job opportunities – Career planning workbooks – Career counseling – Career paths
Evaluating Career Management Systems • Career management systems need to be evaluated to ensure that they are meeting the needs of employees and the business. • Two types of outcomes can be used to evaluate: – Reactions of the customers (employees and managers) who use the career management system – Results of the career management system • Evaluation of a career management system should be based on its objectives.