EMPLOYEE DEVELOPMENT
This chapter breaks employee development into four broad areas for discussion: 1.) Formal
education; 2.) Assessment; 3.) Job experiences; and 4.) Interpersonal relationships. In the realm
of formal education, examples of courses and activities are highlighted. In terms of assessment,
the chapter describes two major instruments, i.e., the Myers-Briggs Type Indicator (MBTI) and
Benchmarks. It also explains the assessment center and the types of exercises employed, and
performance appraisal for developmental purposes, including upward feedback and the currently
popular 360-degree feedback. Vehicles for development in the realm of job experiences that the
chapter addresses include job enlargement, job rotation, transfers, promotions, and downward
moves. The section on interpersonal relationships focuses largely on mentoring and also on
coaching. Finally, the process of development planning is described in terms of steps and the
responsibilities of the employee and the company (or manager) at each step. The theme
throughout the chapter is that the company should provide the employee with opportunities for
development, but that the employee must take responsibility for and initiate the planning process.
This is important material for the training and development student. The chapter closes with Key
Terms, Discussion Questions, and Application Assignments.
Objectives
After reading and discussing this chapter, students should be able to
1.
2.
3.
4.
5.
6.
7.
8.
9.
1. Introduction
A. Development refers to activities and experiences, such as formal education, job
experiences, relationships, and assessments that help employees to grow and prepare for
the future. It involves voluntary learning that is not tied directly to the employees current
job. Training, on the other hand, is related to current job performance and is often
required of the employee.
B. Employee development is necessary in todays companys efforts to continuously improve
quality, stay competitive in the global market, and to incorporate new technologies and
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new work systems. Employees must also be able to perform roles traditionally reserved
for managers.
C. The comparison between training and development is shown in Table 9-1 on p. 267.
II. Approaches to Employee Development (often used in combination): Four approaches are used
to develop employees: formal education, assessment, job experiences, and interpersonal
relationships.
A. Formal education programs are on-site or off-site programs tailored specifically for a
companys employees, short courses offered by consultants or academic institutions,
executive MBA programs, and on-campus university programs. Many learning methods
are likely involved, mostly active learning (see examples in Figure 9-1, p. 270):
1. Corporate entry leadership conferences.
2. New manager development course.
3. Senior functional program.
4. Executive programs.
5. Officer workshops.
B. Assessment involves the collection of information, followed by the provision of feedback
to employees about themselves, including information about their behaviors, learning or
communication styles, aptitudes or skills. Data may be collected from the individual,
peers, the manager, and customers.
1. Assessment is often used to identify employees with managerial potential, to measure
the strengths and weaknesses of current managers, to identify managers with executive
potential, and/or to measure the strengths and weaknesses of team members and team
functions.
2. Myers-Briggs Type Indicator (MBTI) (See Table 9-3, p. 274-275) is a highly
popular psychological test used for employee assessment and development.
a. The MBTI identifies individuals preferences for:
1.) Energy: introversion versus extroversion
2.) Information gathering: sensing versus intuition
3.) Decision making: thinking versus feeling
4.) Life-style: judging versus perceiving
b. Sixteen personality types result from the various combinations of the above
dichotomies (see Table 9-3, p. 274-275).
c. The MBTI is used to understand communication, team dynamics, work styles, and
leadership styles.
d. Research on the reliability and validity of the MBTI is inconclusive.
3. The assessment center refers to a process involving multiple raters or assessors on
multiple exercises or activities. The entire process is usually conducted off-site.
a. Outcomes include identifying managerial potential in terms of personality
characteristics, administrative skills, and interpersonal skills; and identifying
employees with team skills (see Table 9-4, p. 277).
b. Exercises include:
1.) Leaderless group discussion, involving a team of employees who must solve
an assigned problem in a given amount of time.
2.) An in-basket, which is a simulation of managers administrative tasks which
must be addressed.
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3.) Role plays, typically involving the participant playing the part of a manager in
a predetermined situation which must be resolved.
4.) Personality, interest and ability tests may also be involved.
4. Benchmarks is an instrument designed to measure key factors in being an effective
manager.
a. Items measure managers skills in dealing with subordinates, acquiring resources,
and creating an effective work climate, based on research on critical learning
events in managers careers.
b. Self-ratings and ratings of others are incorporated into a summary report or
profile.
c. Skills related to managerial success are illustrated in Table 9-5 (p.278) and include:
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, and
acting with flexibility.
5. Performance appraisal refers to the process of measuring employees performance.
a. Different approaches include:
1.) Ranking employees
2.) Rating employees work behaviors
3.) Rating employees traits, e.g., leadership
4.) Measuring results of work performance, e.g., productivity
b. The appraisal system needs to give employees specific information regarding
improvement that is needed, clear expectations, and specific suggestions for ways
to improve.
c. Upward feedback is the process of appraising performance by collecting
subordinates evaluations of their managers behaviors and skills.
d. 360-degree feedback is the process of appraising performance by collecting
evaluations from all the way around the employee, i.e., from subordinates, peers,
customers, the manager, and his/herself. These different perspectives can be
compared and create a summary of perspectives on the employees performance
(see Figure 9-2, p. 279).
1.) Steps involved in development planning using 360-degree feedback include
(see Table 9-7, p. 280):
a.) Understanding strengths and weaknesses.
b.) Identifying a development goal.
c.) Identifying a process for recognizing goal accomplishment.
d.) Identifying strategies for reaching the goal.
2.) Benefits of 360-degree feedback include:
a.) Gathering multiple perspectives of performance, allowing the employee to
compare his/her self-evaluation with the evaluation of others.
b.) Formalizing communications between the employee and both internal and
external customers.
3.) Potential limitations include:
a.) The time demands placed on multiple raters.
b.) Negative ramifications for raters.
c.) The need for a facilitator to interpret the results.
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6.) All employees are given equal opportunity for job rotation assignments without
regard for their demographic status.
6. Transfers, promotions, and downward moves.
a. A transfer refers to reassigning an employee to a different job in a different area of
the company, most likely a lateral move. Job responsibilities and compensation are
not necessarily increased.
1.) Transfers may involve relocating, which can be very stressful to the employee
and his/her family, and are not always well received.
2.) The employees most willing to transfer are those with high career ambitions, a
belief that his/her future with the company is promising, and a belief that
accepting the transfer is necessary to advance and succeed in the company.
b. A promotion involves advancing an employee into a position of greater challenge,
responsibility and authority. This usually involves an increase in compensation.
1.) Obviously, employees are more willing to accept promotions than they are to
accept lateral moves or downward moves.
2.) Promotions are most available when the company is profitable and growing.
c. A downward move involves giving an employee a position with less responsibility
and authority. The primary types include:
1.) A lateral demotion, which is a move to a position at the same level but with
less authority and responsibility.
2.) A temporary cross-functional move for developmental purposes.
3.) A demotion to a lower level position because of poor performance.
d. To ensure that employees approach transfers, promotions, and downward moves
as opportunities for development, particularly when relocation is required,
companies can:
1.) Provide information about the content, challenges and potential benefits of the
new job and, perhaps, location.
2.) Involve the employee in the decision by sending him/her to preview the new
location or job, giving them information about the location, etc.
3.) Assign a host at the new location to help with the adjustment.
4.) Inform the employee how the new job will affect their income, taxes, and
expenses.
5.) Reimburse and assist the employee in selling a home and renting or purchasing
another.
6.) Provide an orientation program.
7.) Show the employee how the new job experiences fit with the employees career
plans.
8.) Assist family members in the relocation, e.g., identifying schools, as well as
child and elder care.
9.) Help for spouses in identifying and marketing their skills and finding
employment.
7. Externships allow employees to take temporary full-time positions at another
company.
8. Temporary assignment with other organizations may emerge from two companies
agreeing to exchange employees in order for the companies to better understand each
other.
D. Interpersonal relationships can also be a vehicle for developing employees skills and
increasing their knowledge about the company and its customers.
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c. Helping women and minorities gain experience and exposure needed for
managerial positions.
d. Sharing information.
5. In a group mentoring program, one mentor is paired with four to six protgs,
allowing protgs to learn from each other as well as from the mentor and requiring
fewer mentors than traditional one-on-one arrangements.
6. Coaching relationships:
a. A coach is a peer or manager who works directly with an employee to help
him/her develop skills, generate his/her motivation, and provide reinforcement and
feedback. The coach can play three roles:
1.) One-on-one directing the employee and giving him/her feedback.
2.) Helping the employee learn for him/herself, e.g., pointing him/her to
appropriate resources.
3.) Providing resources, e.g., mentors, courses, or experiences, to which the
employee might not otherwise have access.
b. To develop coaching skills, four issues need to be addressed:
1.) Managers may be reluctant to discuss performance issues to avoid
confrontation.
2.) Managers may be better able to identify performance issues in employees than
to solve them.
3.) Managers may fear that employees will perceive coaching as criticism.
4.) Managers may feel they dont have time to coach effectively.
III.
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C. The approach to development is dependent on needs and goals; a need can emerge from a
gap between current capabilities and those required or interests the employee wants to
pursue in future work.
D. The most effective development strategies involve individualization, learner control, and
ongoing support. Employees also need people in whom they can confide to discuss their
weaknesses, problems, and insecurities. This can take the form of mentoring, coaching, or
face-to-face electronic support groups.
CHAPTER 9 SUMMARY
The framework of Chapter 9 provided the student with an interesting discussion of employee
development. Four major approaches to development were addressed. First, formal education
programs were highlighted. Second, assessment for developmental purposes was discussed,
including much information on the popular Myers-Briggs Type Indicator (MBTI) and on
Benchmarks, an instrument for measuring key factors in being a manager. Other assessment
activities the chapter described were the assessment center and performance appraisals. The
currently popular appraisal method called 360-degree feedback was detailed. Third, job
experiences for development were discussed, with focus on job rotation and transfers. Fourth,
interpersonal relationships were addressed, with the focus being on mentoring. Benefits and
limitations of the various development vehicles were discussed. Finally, the chapter concluded by
describing the steps of the development planning process highlighting the responsibilities of both
the employee and the company at each step. This chapter provides the student a very current look
at the activities and events through which employees can intentionally develop. The key is for
both the employee and the company to plan for development and to very intentionally engage in
activities that are developmental.
Discussion Questions
1. How could assessment be used to create a productive work team?
Answer: Assessment of employees can be used to identify deficiencies in necessary job skills,
which could be remedied by training, as well as identify employees with management potential.
This would be useful in ensuring the work force is well trained, and put in positions where their
skills are best utilized. (p. 272-273)
2. How can competencies be used in employee development?
Answer: By identifying important competencies, and measuring strengths and weaknesses in
those areas, companies can set up training programs which strengthen employees abilities. (p.
268)
3. List and explain the characteristics of effective 360-degree feedback systems.
Answer: the system must provide reliable or consistent ratings, feedback must be job-related, the
system must be easy to use, understand, and relevant, and the system must lead to managerial
development. (p. 280)
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4. Why do companies develop formal mentoring programs? What are the potential benefits
for the mentor and for the protg?
Answer: Mentoring programs can develop employee skills and increase employee knowledge of
the company. By developing formal mentoring programs, companies can ensure that all
employees have access to this kind of support, regardless of gender or race. In these relationships
the mentor can develop their interpersonal skill and increase their feelings of self-esteem and
worth to the company. The protg can gain career support, including coaching, protection,
sponsorship, exposure, and visibility, and psychosocial support. (p. 287-289)
5. Your boss is interested in hiring a consultant to help identify potential managers from
current employees of a fast food restaurant. The managers job is to help wait on
customers and prepare food during busy times, oversee all aspects of restaurant operations
(including scheduling, maintenance, on-the-job training, and food purchase), and motivate
employees to provide high-quality service. The manager is also responsible for resolving
disputes between employees. The position involves working under stress and coordinating
several activities at one time. Your boss asks you to outline the type of assessment
program you would believe would best identify employees who could be successful
managers. What will you tell your boss?
Answer: The ideal management assessment program for this type of position would rely heavily
on role-plays, in which the potential managers ability to motivate and resolve conflicts between
employees, as well as their technique in handling customer complaints. The assessment should
also have an in-basket to gauge their ability to make a work schedule, and order food. (p. 275276)
6. Many Employees are unwilling to relocate geographically because they like their current
community and because spouses and children prefer not to move. As a result, it is difficult
to develop employees through job experiences that require location (e.g., transfer to a new
location). How could an employees current job be changed to develop that employees
leadership skills?
Answer: The employee would need an enlargement of their job experiences, so it would be useful
to increase their responsibility, giving them a leadership position over a task force or committee.
7. What is coaching? Is there only one type of coaching? Explain.
Answer: Coaching is working with employees to motivate them. There are many ways to coach,
involving a combination of providing one-on-one feedback, putting the employee in touch with
experts, and teaching how to get feedback from others, and putting the employee in touch with
resources that they may otherwise not have access to. (p. 291)
8. Discuss reasons why managers are reluctant to coach their employees.
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Answer: First, managers may be reluctant to discuss performance issues because they want to
avoid confrontation. Second, managers may be better able to identify problems than to solve
them. Finally, managers may feel that the employee will interpret coaching as criticism. (p. 292)
9. Discuss the characteristics of the most effective company development strategies. Which
characteristic do you believe is the most important? Why?
Answer: The most effective strategies involve individualization, which is important for focusing
development on the employees weaknesses, learner control, and ongoing support. (p. 293)
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