chapter 14

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14

Career Planning and Development

McGraw-Hill/IrwinHuman Resource Management, 10/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

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Introduction

Global competition and economic changes are causing organizations of all sizes to restructure Self-management is the reality for the coming years Organizations must know how to best utilize the

talents of employees at all levels of the companyEven organizations facing a stable or contracting

future recognize that performance is tied to development of human resources

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Introduction

As organizations change, so do their employees Careers follow a fairly uniform pattern of phasesEach phase produces different opportunities and

stresses that affect job performance Effective managers help employees confront and

deal with career and life needs

Managers and employees should be involved with their own career development Employees often lack the ability and information

to develop their own career plans

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Introduction

This chapter reviews programs that organizations and employees can use to plan and develop careers Career stages are influenced by attitudes, motivation,

the task, economic conditions, and so forth Be sensitive to the “career cycle” and its influences

Matching individual needs, abilities, preferences, motivation, and opportunities will not just happen Everyone must take responsibility for the things they

can control

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Introduction

Insert Exhibit 14-1 here (Linking Org Needs with Individual Needs)

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The Concept of Career

The concept of career has many meanings The most popular is “moving upward in one’s chosen

line of work” It also means making more money, having more

responsibility and acquiring more status, prestige, and power

The concept of career can apply to other life pursuitsHomemakersParentsVolunteer workers

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Greenhaus offers this definition: A career is the pattern of work-related experiences and activities over the span of the person’s work life The term “career” does not imply success or failure

except in the judgment of the individual A career consists of both attitudes and behavior It is an ongoing sequence of work-related activities

A person’s nonwork life and roles play a significant part in a career

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The values of society change over time A growing number of people are less obsessed with

advancement, continual success, and a continually increasing salary

Family needs and spending time off the job are becoming important personal issues

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Career Stages

Most people:Undergo some form of organized education Take a first job Move to jobs in the same organization, or in other

organizations Eventually settle into a position and hold it until

retirement

The duration of each stage varies among individuals, but most working people go through all of them

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Career Stages

Needs and expectations change over time, as individuals move through the career stages:Establishment phaseAdvancement phaseMaintenance phase

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Career Stages

Insert Exhibit 14-2 here (Career stages and important needs)

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Career Stages

The maintenance phase:A period of creativity because many of the

psychological and financial needs associated with earlier phases have been satisfied

Esteem and self-actualization are the most important needs

During this phase, many people experience a mid-career crisis

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Career Stages

Retirement phase:The individual has completed one career and may

be ready to start another Self-actualization may be experienced through

activities impossible to pursue while working Financial and health status may make it necessary

to worry about satisfying needs Pre-retirement planning programs are becoming

more common

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Career Stage I

Young professionals have technical knowledge, but often do not understand the organization’s demands

They must work closely with experienced people (apprenticeship)

Apprentices are expected to show competence, including learning and following directions

Moving through Stage 1 requires accepting the psychological state of dependence

Some cannot cope with a situation similar to school

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Career Stage II

Stage II calls for working independently Passage to this stage depends on having demonstrated

competence in some area The primary activity is being an independent

contributor The psychological state is one of independence Those who fail at this stage typically do so because they

lack self-confidence

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Career Stage III

Stage III professionals mentor those in Stage I They broaden their interests and deal more with people

outside the organization The central activities are training and interaction with

others They assume responsibility for the work of others,

which can cause considerable psychological stress Individuals who cannot cope with this new

requirement may shift back to Stage II Individuals who enjoy seeing others move to bigger/

better jobs are content in Stage III until retirement

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Mentoring

The experienced person is expected to contribute to the junior employee’s:

InstructionJob performanceRetention

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Mentoring

In a successful relationship, the junior person’s career is enhanced by the coaching, exposure, and protection the senior person facilitatesThe relationship helps the junior person acquire a

sense of personal identity The mentor derives satisfaction from the growth,

development, and advancement of a protégé

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Mentoring

It has been difficult for women and minorities to establish mentoring relationships Men hesitate to mentor female protégé because of the

sexual innuendoes attached to such relationships Senior women are reluctant to

mentor junior women because they perceive significant organizational risks in doing so

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Career Stage IV

Not all professionals experience Stage IV, which involves shaping the direction of the organization itself

Stage IV professionals direct their attention to long-range strategic planning

They play the roles of manager, entrepreneur, and idea generator

Primary tasks are:Identify and sponsor the careers of successors Interact with key people outside the organization

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Career Choice and Personality

John L. Holland, a career counseling expert, suggests that: The choice of a career is an expression of personality

and not a random event, although chance plays a role What a person accomplishes and derives from a

career depends on the congruence between his or her personality and the job environment

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Personality types: Realistic (machinist) Investigative (research scientist) Artistic (interior decorator) Social (school counselor) Enterprising (lawyer) Conventional (accountant)

The more one resembles a given type, the more likely one is to display the behavior/traits of that type

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Insert Exhibit 14-4 here (Holland’s hexagon)

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Holland suggests that many personalities fall within the boundaries of two or more types The closer the orientations, the more similar are the

personality types If a person’s predominant and secondary orientations

are similar, he/she will have a relatively easy time selecting a career

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Various quantitative instruments can assess a person’s personality type: The Vocational Preference Inventory asks a person

to select appealing vocations from a list of 84 occupational titles

The higher a person’s score on a scale, the greater the resemblance to the type that scale represents

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Examining Your Skills

Simply preferring one career or occupation over another is not enough A person must have, or be able to develop, the skills

required to perform the job The Dictionary of Occupational Titles (DOT)

provides information on the skills required for more than 20,000 jobs

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Another way to measure interests and skills is the Campbell Interest and Skill Survey (CISS) A six-part response scale is used to assess 200 items

about interests and 120 items about skills Scores are translated into seven orientations:

Influencing Organizing HelpingCreating Analyzing ProducingAdventuring

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The seven orientations are further subdivided into 29 areas, such as leadership, writing, and science If a person scores high on interests and skills, he/she

should seriously consider the orientation or activity

High interest, low skill = develop skills

Low interest, high skill = exploration is needed

Low interest, low skill = avoid the orientation/activity

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Career Development: A Commitment

Career development can range from simply reimbursing tuition to detailed counseling These programs are most valuable when they are:

Offered regularly Open to all employeesModified as evaluation indicates change is necessary

The goal is to match employees’ needs and goals with current or future career opportunities in the organization

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Career Development: A Commitment

A well-designed career development effort will: Help employees determine their own career needs Develop and publicize career opportunities in the

organization Match employees’ needs/goals with those of the

organization

Career planning is important during all phases of a career, but three points are particularly crucial:Recent hireeMidcareer personPre-retirement person

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Career Development For Recent Hirees

Employees select their positions on the basis of: Expectations regarding the demands that the

organization will make of them What will be received in exchange for meeting those

demands

Young managers, particularly college graduates, expect recognition and advancement Recently hired managers are often disappointed with

their initial career decisions

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Causes of Early Career Difficulties

Early career disappointments vary from person to person, but reality shock is often a factor Reality shock is a mismatch between what they

thought the organization was and what it actually is

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Causes of Reality Shock

Initial job challengeFirst jobs often demand far less of managers than

they are capable of delivering Employees may be unable to create challenge from

routine jobs

Initial job satisfactionRecently hired college graduates often believe they

can perform at levels beyond their initial assignments Disappointment and dissatisfaction result when

these self-evaluations are not shared by others

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Reality Shock

Reality shock is caused by:Initial job challengeInitial job satisfactionInitial job performance evaluation

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Counteracting Early Career Problems

Most early career interventions focus on developing managers, but other employees can benefit too Blue-collar workers are valuable assets who also need

career development Workers at any level accumulate skill, therefore must

have access to systematic career development

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Realistic Job Previews (RJPs)

RJP is based on the idea that recruits should know both the good and bad things about a job and an organization The recruitment rate is the same for those who

receive RJP as for those who do not Those who receive RJPs are more likely to remain on

the job and be satisfied with it

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Challenging Initial Assignments

The newly hired should be put into the most demanding job available This policy is risky because managers are

accountable for the performance of subordinates Most managers bring subordinates

along slowly by giving them progressively more difficult jobs

However, managers who experience initial job challenge are more effective in their later years

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Enriched Initial Assignments

Job enrichment can motivate employees with strong needs for growth and achievement Give new managers more authority and responsibility Permit new managers to interact directly with

customers and clients Enable new managers to implement their own ideas

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Demanding Bosses

To increase the retention rate of young managers, assign them initially to demanding supervisors Demanding is not the same as “autocratic” The boss most likely to get new hires off in the right

direction is one with high but achievable expectations

The benefits of challenging experiences are not limited to the early phase of a career Those who meet early challenges are better prepared

to contribute in their middle and late careers as well Setting the stage for successfully managing a career

can help avoid stagnation and dissatisfaction

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Career Development During Midcareer

Common mid-career problems: Higher levels of stressPersonal and family problems associated with

midlife crisis and transition Dealing with the notion that one’s most productive

years may already be past

Trying to deal with these pressures can lead to: Job withdrawalSubstance abuseDepression

Mid-career can be rewarding if career management programs are in place

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Career Development During Midcareer

Training is an important way to help midcareer managers: Improve skillsImprove knowledgeGrow intellectually

Merely showing an interest introduces the Hawthorne effectIt is especially important at midcareer to receive

such signals from the organization

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The Midcareer Plateau

Managers face a midcareer plateau during the adult stage of life and the maintenance phase of careers The likelihood of upward promotion is low because

there are fewer jobs at the top Openings may exist, but the manager lacks the

ability, skills, or desire to fill them

Managers in this position cope in consistent ways: Depression, poor health, and fear of/hostility toward

subordinates They “retire” on the job or leave the organization

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The Midcareer Plateau

Midcareer crisis is real It has psychological and physical effects that can

become dangerous if not properly handled

Individuals who have coped effectively: John W. Culligan was 64 when promoted to chair-

person of American Home Products Thomas S. Derek started the Ugly Duckling Rent-A-

Car agency after retiring from a 30-year career as a life insurance agent

Joyce Fox got her first job at 41 and became VP of international loans at American Express Bank

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Counteracting Midcareer Problems

Counteracting midcareer problems involves counseling and providing alternatives

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Midcareer Counseling

Midcareer managers are often well-educated and articulateVerbalizing problems to an

objective listener is often enoughto allow them to recognize theirproblems and cope with them constructively

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Midcareer Counseling

At times, the organization needs to accept career moves that are usually viewed as unacceptable:Lateral transfers Downward transfersFailback positions

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Lateral Transfer

A lateral transfer means moving from one depart-ment to another at the same organizational level The manager must learn the technical demands of the

new position quickly There will be a period of reduced performance as this

learning occurs Once qualified, the manager will bring the

perspectives of both areas to bear on decisions

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Downward Transfer

Downward transfers are equated with failure, unless one or more of these conditions exist:The manager wants to stay in, or move to, a specific

geographic areaThe manager wants to establish a base for future

promotions The manager must choose between dismissal or a

downward move The manager wants to pursue autonomy and

self-actualization in non-job activities

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Failback Positions

Having a failback position means identifying a position to return to if the new job doesn’t work outAllowing a failback position means the organization

accepts some of the responsibility for the transfer

It protects the careers of those who are making their first moves into managementThis does not excuse managers from taking

responsibility for themselves Formulating career plans early on minimizes the risk

of becoming obsolete or redundant

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Pre-retirement Problems

Many organizations are ill-prepared to help retirees develop a truly secure retirement The problem is becoming increasingly important as

workers retire at earlier ages and organizations cut retirement benefits to reduce costs

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Retirement Adjustment Problems

Organizations must consider questions such as: When do employees plan to retire? Who is attracted by early retirement? What do employees plan to do during retirement? Can the organization help prepare for these activities? Do retirees plan a second career? Can the

organization assist in this preparation? Which retirees can still be consulted by the

organization to help new employees?

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Retirement is feared by some, anticipated by others Counseling and education programs can make the

transition from employment to retirement easier

In most cases, a retired person must learn to: Accept a reduced role Manage a less structured life Make accommodations for family and community

IBM aids this transition by offering tuition for courses on any topic within three years of retirement

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By 2016, the annual number retiring will be 4 million In the wake of downsizing, a growing number of

companies will need retirees to come back to work This is due to a skills gap between new employees and

organizational needs

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Career Planning and Pathing

Organizational career planning means matching an individual’s career aspirations with opportunitiesCareer pathing is the sequencing of the specific jobs

associated with those opportunitiesIf career management is to be successful, the

individual and the organization must assume an equal share of the responsibility for it

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Career Planning and Pathing

Sample career path for a managerInsert Exhibit 14-8 here

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Career Planning

Per the American Management Association (AMA), the most widely used informal approaches are: Counseling by the personnel staff Career counseling by supervisors

More formal but less used approaches involve:WorkshopsSeminarsSelf-assessment centers

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Informal Counseling

Organizations often offer counseling services for employees who wish to assess their abilities/interests Counseling can also involve personal concerns,

which are important for determining career aspirations

Career counseling is usually part of evaluations Employees should be told how well they have done,

and what the future holds Few supervisors know about needs and opportunities

throughout the organization, so more formal and systematic counseling approaches are often needed

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Formal Counseling

Workshops, assessment centers, and career development centers are being used more often Management trainees and “high-potential” or “fast-

track” candidates have received most attention to date Women and minority employees are receiving

increased attention Development programs for women and minorities

indicate an organization’s commitment to affirmative action

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Formal Counseling

Syntex Corp.’s Career Development Center found eight skill areas related to effective management:Problem analysisCommunicationGoal settingMaking decisions and handling conflictsSelecting, training, and motivating employeesControlling employeesInterpersonal competenceUse of time

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Formal Counseling

Practices to facilitate an employee’s career plans:Tuition aidJob posting

At a minimum, job postings should: Include promotions, transfers, permanent vacancies Be posted 3-6 weeks prior to external recruitingHave explicit and straightforward eligibility rulesClearly state selection and bidding instructionsGive vacationing employees an opportunity to applyNotify rejected applicants in writing

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Formal Counseling

HRIS technology is now one of the most significant career management tools It enhances an individual’s career planning activities

and saves money for the organization

Many corporations are relying more heavily on filling job vacancies from within The key is making sure applicants know about the job

opening and its requirements The organization must also know which current

employees are qualified for the vacancy An effective HRIS job posting program does both

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Formal Counseling

The World Wide Web is becoming a valuable resource for people who want to help their careers Thousands of organizations utilize their websites to

recruit and inform employees

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Career Pathing

An organization’s future workforce depends on the passage of individuals through the ranks A career path is the sequence of jobs that one wants

to undertake to achieve personal and career goals Systematic planning can close the gap between

individual and organizational needs

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Career Pathing

Traditional career paths have emphasized upward mobility in a single operation or functional area There is a pervasive attitude that not moving up

within an expected time frame equals failureThis makes it hard to use lateral and downward

transfers as alternatives for managers who no longer wish to pay the price of upward promotion

As one nears the top of the organization, the number of openings declines and the number of candidates increases

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Career Pathing

An alternative method bases career paths on real-world experiences and individualized preferencesPaths of this kind:

Include lateral, downward, and upward possibilities

Are not tied to “normal” rates of progress Are tentative and responsive to organizational

needs Take into account the qualities of individuals Specify jobs in terms of acquirable skills,

knowledge, and other specific attributes

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Career Development Programs:Problems and Issues

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Career Development & Workforce Planning

Career development provides a supply of talent and ability Workforce planning projects the demand

It seems that organizations undertaking one activity would undertake the other Some organizations have one or the other, not both

Integrating development and planning is hard to do: Development is done by psychologists; economists

and systems analysts handle planning Career development occurs in personnel departments;

workforce planning is the function of planning staffs

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Managing Dual Careers

In the past, many companies wouldn’t employ both a husband and wife Organizations now try to accommodate the unique

pressures that exist when both spouses work

Relocation is difficult for dual-career couplesMany offer special career planning programs for

dual-career couplesTalented people can be lost if the organization is too

inflexible

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Maternity leave has negative overtonesTaking six months off is assumed

fatal to a career Peer pressure perpetuates the belief

that paternity leave unfairly burdens coworkers with extra work

Some couples compromise by having the husband work at home while the wife recovers

There are currently more than 25 million dual-career couples

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According to the Department of Labor, 29 percent of working wives make more than their husbands This figure has grown by 53% since 1988 Among upper-income women, the numbers are

higher

Why is this happening when women, on average, make only 70% of their male counterparts? Women are better educated than they used to be More women are working full-time EEO laws removed or lowered barriers that hold

women back

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Hints for Dealing With Dual Careers

Conduct a survey to determine: How many employees are in a two-career situation How many people who interviewed for positions are

in a dual-career situation Where, and at what level in the organization, the

dual-career employees areWhat conflicts these employees have now If these dual-career couples perceive company policy

and practices to be helpful to their careers

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Present realistic previews of what the company offers dual-career couples

Revise policies regarding career development and transfer; most are based on a one-career family

Providiedual-career couples with special career management assistance

Establish cooperative employment arrangements with other organizations

Establish flexible working hours Remember that non-managerial personnel are also

members of dual-career families

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Relocating a spouse abroad is especially difficult in dual-career situations Visits homeExtended vacation benefitsFamily culture trainingElectronic communication needs

Unless both partners are relocated at the same time, to the same location, these issues must be addressed: AdjustmentStressDistance

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Career Planning and Equal Employment

The Civil Rights Act of 1964 is now 40 years old Tremendous strides have been made in providing

women and minorities with equal employment Still, few have made it to the top of organizations

A “glass ceiling” is still a reality Some still believe that women and minorities cannot

be effective managers Women and minorities feeling such resistance often

leave, resulting in a drain of needed talent

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Few minorities make it to the top of organizations90% of officers of large corporations are white males

White males feel threatened by affirmative action No data support the claim that they are being replaced

by minoritiesAbove-average males still progress; below-average

performers lag behind The threat is most felt when the economy slows and

the few promotions available go to women and minorities

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Nothing guarantees that white males will support affirmative action programs, but some practices offer promise Providing open and complete information about

promotions Allowing white males to see precisely where they

stand

If given such information, white males:Are less likely to over-estimate their disadvantage Can assess their position more accurately

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Downsizing and Job Loss

An increasing number of companies consider employees vital assets, but downsizing continues Downsizing seems sensible because it eliminates

unneeded positions and reduces bureaucracy However, it eliminates an organization’s memory

and sense of values

More humane options:RetentionLateral transfersTemporary work

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Downsizing and Job Loss

A job layoff exists when three conditions occur: There is no work and the employee is sent home Management expects the no-work situation to be

temporary Management intends to recall the employee

Job loss means the employee has permanently lost the job

No company is immune to eliminating

jobs

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Effects of Job Loss

Cobb and Kasl studied job loss and discovered that: Job loss is:

Stressful and requires several months to adjust Linked to depression, anomie, and suspicion

Illness and drug use were:High during the anticipation phaseDropped at terminationRose again at six months

Those who were unemployed longer and had less social support experienced more stress

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Effects of Job Loss

Higher levels of unemployment are linked to higher levels of:Social disordersFirst admissions to mental hospitalsSuicide

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Effects of Job Loss

Tentative conclusions:Denial/disbelief is a typical response to layoff rumorsAs rumors circulate and some lose their jobs, there is

high anxiety among the remaining employees Several weeks after job loss, there is a period of

relaxation, relief, optimism, and vigorous job huntingFriends and family play a major supporting role Those still unemployed after four or more months go

through a period of doubt; they may experience panic, rage, or erratic behavior

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Managerial Responses to Layoffs/Job Loss

Consistently strong performance is one way to guard against the need for job layoffs or job loss An efficient appraisal system can help pinpoint poor

performance and initiate corrective steps

Uncontrollable events that can require a cutback: Decrease in market demand Reduced availability of resources Competition

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The best time to prepare for job layoff and job loss is when business is good Establishing layoff criteria is an important step

Seniority is the criterion most commonly used A valid and reliable performance appraisal system

can also be used Some firms use a panel of managers from outside

the work unit to decide who will be laid off

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Creating an outplacement services unit is another valuable stepServices can include such things as:

Help with resumes Use of company telephonesLetters of introductionReference lettersPayment of placement feesCareer counselingRetraining

Some firms also provide

severance pay

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Job layoffs and job loss are expected to continue into the foreseeable futureManagement must continue to study the related

problems and experiment with solutions

At present, we need more information on: Women’s and minority workers’ reactions to job

layoffs and loss Long-range effects of job loss How personality predisposes reactions to job loss Effectiveness of outplacement services The effect of career halt

chapter 14

Documents

career stagespeople

career plans

career planning

career cycle

career stagesexhibit

term career

career development employees

career stagesmaintenance