PROJECT REPORT ON Carrier development and planning in a company.

Submitted by: P.M.Nanda Nanjappa FW 09-11 31st July 2012.

Contents
1. Introduction 2. Components of a 3. 4. 5. 6.
Career Development System Designing Career Development Systems Objectives of Career Development Systems Importance of Career Development Need for Career Development for Employees. Carrier planning

7. 8. Bibliography

Introduction

What is carrier Development?

Carrier development: MEANING OF CAREER: A Career has been defined as the sequence of a person's
experiences on different jobs over the period of time. It is viewed as fundamentally a relationship between one or more organizations and the individual. To some a career is a carefully worked out plan for self advancement to others it is a calling-life role to others it is a voyage to self discovery and to still others it is life itself. A career is a sequence of positions/jobs held by a person during the course of his working life .According to Edwin B. Flippo,A career is a sequence of separate but related work activities that provide continuity, order and meaning to a persons life. According to Garry Dessle , The occupational positions a person has had over many years .Many of today's employees have high expectations about their jobs. There has been a general increase in the concern of the quality of life. Workers expect more from their jobs than just income. A further impetus to career planning is the need for organizations to make the best possible use of their most valuable resources the people in a time of rapid technological growth and change. Career development, both as a concept and a concern is of recent origin. The reason for this lack of concern regarding career development for a long time, has been the careless, unrealistic assumption about employees functioning smoothly along the right lines, and the belief that the employees guide themselves in their careers. Since the employees are educated, trained for the job, and appraised, it is felt that the development fund on is over .Modern personnel administration has to be futuristic, it has to look beyond the present tasks ,since neither the requirements of the organization nor the attitudes and abilities of employees are constant. It is too costly to leave 'career' to the tyranny of time and casualty of circumstances, for it is something which requires to be handled carefully through systematization and professional promoting. Fortunately, there has lately been some appreciation of the value of career planning and acceptance of validity of career development as a major input in organizational development. Career development refers to set of programs designed to match an individuals needs, abilities, and career goals with current and future opportunities in the organization. Where career plan sets career path for an employee, career development ensures that the employee is well developed before he or she moves up the next higher ladder in the hierarchy.

Components of a Career Development System

A career development system includes a variety of components for use in the organizations. In order to increase the efficiency of the system, the HR mangers must have complete knowledge about these tools since they play a role of consultant when employees and supervisors use this system. Plus, they are responsible for designing and developing an effective career development system for their organization. Some activities or components are known as individual career planning tools while some are used for organizational career management. To achieve greater efficiency, most organizations use a right combination of both types of activities. Self Assessment Tools: This is the first technique that is widely used by organizations in their efforts to career management of their employees. This is a career exploration tool where individuals complete selfassessment exercises and fill information about their skills, interests, competencies, work attitudes and preferences, long and short term goals and obstacles and opportunities. The whole exercise helps them understand their own desires and aspirations and likes and dislikes. Career Planning Workshops: Once employees are through their selfassessment, they share their findings with other individuals and their supervisors in career-planning workshops. It allows them to receive feedback from others and check the reality of their plans and aspirations. They may change their plans if they find them unrealistic and move in new direction. Individual Counseling: It is one of the most common activities that are undertaken by almost all people developing organizations. Generally, individual counseling is provided by career development specialists, HR specialists or life skills development trainers. Some organizations hire them from outside while some have their own full fledged departments where they recruit and hire trainers for full time. It helps employees in understanding their own goals, making a change in them if required and working on improving their skills and competencies. Organizational Assessment Programs: Organizational assessment programs include tools and methods for evaluating employees potential for growth within the organization. Johnson & Johnson is one company that uses these programs to assess the careers of their employees and evaluate their potential in order to facilitate the staffing and development of special teams known as tiger teams. These special teams are formed to speed up the development of new products. The most popular programs under this category include assessment centers, psychological testing, 360 degree appraisal, promo ability forecasts and succession planning. Developmental Programs: Developmental programs are used by an organization to develop their employees for future positions. They can be internal as well as external and can be performed under the supervision of human resource staff or trainers and specialists from outside. These

programs include assessment centers, job rotation programs, tuition refund plans, internal training programs, external training seminars and formal mentoring programs. In addition to these programs, there are several other components of a career development system such as career programs for special target groups, fasttrack or high potential employees, supervisors, senior-level employees, women, technical employees, minorities and employees with disabilities, etc.

Designing Career Development Systems

Organizational career development process includes both individuals and institutions. Individuals plan their own careers whereas institutions or organizations manage the careers of the employees. Career planning by an individual includes several sub processes such as occupational choices, organizational choices, job assignment choices and career self-development. While the major sub processes of career management by organizations include recruitment and selection, human resource allocation, appraisal and evaluation and training and development. In order to have effective career development attempts by the organizations, designing automated career development systems plays a crucial role as it integrates a series of activities related to individual career planning and organizational career management involving employees, management and the organization. An individuals career is a series or sequence of work-related activities as well as his or her future aspirations. It is affected by several factors such as his or her behavior, attitude, values, ambitions and desires and opportunities and threats and weaknesses and strengths plus the outer environment and economic conditions. It is a deliberate process followed by an individual depending upon his or her desires and aspirations over the span of ones life. Career management is an ongoing process that takes into account a particular job title or designation while preparing, implementing and monitoring succession planning depending upon the future requirements of an organization. Obviously, it also takes human factors in account but the entire process is directed and operated as per the needs and convenience of an organization. The best planning takes into account both organizations and individuals aspirations and creates a perfect mix where both the parties can be benefited. Designing Career Development Systems Designing career development systems according to specific needs and requirements of an organization can help HR specialists in bringing efficiency to the entire process of career management. Since the system tries to integrate all the activities of an employee, management as well as an organization, it has to be tailor-designed. There is nothing that fits all since the nature of the every business is different and aspirations of every employee in every industry are different. Most companies along with career management programs also involve career assessment process by the employee. If they have supportive environment such as a facilitator and properly automated system, they will properly assess their careers and fill genuine information about themselves. Most organizations such as Xerox, IBM, Wal-Mart, Lincoln electric and Bell Atlantic have their own specific career development systems. Along with this, they provide their employees with supportive environment and a culture that supports the whole process of career development. This is the reason why these companies are considered as the best places to work. Since they manage the careers of their employees seriously and treat them as the most valuable assets

of the organization, a very high percentage of university graduates prefer joining them even if they offer low compensation. While designing career development system for an organization, the nature of their business, the industry and the business environment they are operating in should also be considered. Although it is an internal process of an organization but outer environment factors such as job market, current trends, economic conditions, etc affect the entire process.

Objectives of Career Development Systems

Career development has become primary activity of organizations in order to create a pool of talented employees as well as enhance their career satisfaction. Along with this, it is also considered as an organized and planned process to improve the efficiency of organization. In common terms, we may look upon it as an effort to strike a balance between organizational workforce requirements and individual career needs. Employees have their own personal desires and aspirations and need to effectively utilize their personal skills to attain their career goals and objectives. On the other hand, organizations have needs for staffing and meeting present and future human resource requirements. A career development system is a mechanism that takes both the parties in to consideration and helps them meet their requirements as well as objectives. Objectives of Career Development Systems Fostering Better Communication in Organization: The main objective of designing a career development system is to foster better communication within the organization as a whole. It promotes communication at all levels of organizations for example manager and employee and managers and top management. Proper communication is the lifeblood of any organization and helps in solving several big issues. Assisting with Career Decisions: A career development system provides employees as well as managers with helpful assistance with career decisions. They get an opportunity to assess their skills and competencies and know their goals and future aspirations. It helps them give a direction so that they can focus on achieving their long term career goals. Better Use of Employee Skills: A career development system helps organization make better use of employee skills. Since managers know their skills and competencies and therefore, can put them at a job where they will be able to produce maximum output. Setting Realistic Goals: Setting realistic goals and expectations is another main objective of a career development system. It helps both employees and organization to understand what is feasible for them and how they can achieve their goals. Creating a Pool of Talented Employees: Creating a pool of talented employees is the main objective of organizations. After all, they need to meet their staffing needs in present and future and a career development system helps them fulfill their requirements. Enhancing the Career Satisfaction: Organizations especially design career development systems for enhancing the career satisfaction of their employees. Since they have to retain their valuable assets and prepare them for top notch positions in future, they need to understand their career requirements and expectations from their organization. Feedback: Giving feedback on every step is also required within an organization to measure the success rate of a specific policy implemented and initiatives taken by the organization. In addition to this, it also helps

managers to give feedback for employees performance so that they can understand what is expected of them. A career development system can be very effective in creating a supportive culture in the organization and help employees grow and utilize their skills to achieve their desires and aspirations related to their career. Both organization and employees can meet their goals simultaneously.

Importance of Career Development

Although the business environment has been endlessly experiencing negative changes such as economic downsizing and restructuring resulting in fewer hierarchical positions but at the same time the need for improving productivity while keeping a pace with continuously changing technology has also increased. Organizations, therefore, instead of hiring a new individual from the market prefer to promote their already existing employee to a specific position as he or she is already aware of the organizational culture and does not need to be trained. This requires a careful succession planning of employees and developing and preparing them continuously for filling topmost designations in future. The process of organizational career development is important for both employees and employers. There may be several unintended and undesired changes as well as consequences that can change the entire scenario. In such a situation both employees and employers must be ready to keep with the changing environment and act accordingly. Employees continuously need to upgrade their skills and competencies to meet the current demands where as organizations must be ready with those employees who can handle the pressure efficiently and cease the risk of falling prey to the changed scenario. Therefore, understanding the importance of career development is very necessary for both the parties. Business Environment Factors that can Bring Undesired Changes Economic Downsizing: The biggest of all the factors that has badly affected the careers of millions of individuals is economic downsizing. The jobs are cut from the organizations and the fittest of all employees survive. If employees continuously learn new and better skills, chances are that economic conditions wont hurt them that badly as compared to other individuals. De-layering: De-layering means reclassification of jobs. This is an organizational change initiative where a company decides to reclassify the jobs more broadly. However, old reporting lines do exist in order to maintain managerial control but some jobs may be removed or cut down during the process. Again, those individuals have to leave the organization that is not competent enough to be shifted to other job with different nature. Cost Reduction Strategies of the Organization: Cost-reduction strategies of the organizations are again very dangerous for those individuals who are not prepared to move on to the next level. If organizations have to cut down their operating costs, the employment of those individuals is at stake who are not employable or who have not performed up to the mark in past. Employees continuously need to upgrade themselves and show their talent in order to remain in the organizations till long. IT Innovations: Continuous changes and up gradation in the technology is also one of the major factors that bring change. Some individuals can keep a pace with the changing technology and are always ready to learn

and adopt new IT applications while some show immense resistance which is not acceptable to the organizations. Employees need to keep themselves updated and show willingness to accept changes as and when they occur and mould themselves accordingly. The business changes affect both organizations and employees. The need is to understand them and find a way to cope with them effectively.

Need for Career Development for Employees. Providing constructive career development opportunities to employees is one of the most costs - effective ways to achieve the following: Raise Retention Rates - Best-in-class organizations understand that failing to retain employees is costly on many different levels. The cost of turnover adds hundreds of thousands of dollars to company expenses. Additional costs associated with employee turnover include loss of company knowledge, disruption of customer service, and loss of morale and engagement in remaining employees. Providing career development opportunities ensures that valuable individuals are more likely to look within the organization when they desire a job shift, not outside. Boost Engagement and Productivity - Todays employees expect to find meaning and direction in their day-to-day work, and expect not just jobs and tasks but meaningful careers and career goals. Employees who have access to a career development process, resources and tools feel much more engaged and taken care of by the organization. In addition, employees who drive their own development are far more likely to be motivated and optimally productive on a consistent basis. Strengthen the Succession Pipeline - The backbone of any effective succession planning process is a well-prepared talent pipeline that can be drawn upon at any moment in time. With an employee-driven career development initiative in place, top talent gains the opportunity apply for critical roles that may be vacant. Making such opportunities visible and available for all eligible employees, rather than handpicking based on qualitative judgment ensures that the most qualified individuals enter those critical roles. Generate Knowledge Transfer and Retention - With current and impending retirement of millions of Baby Boomers and an aging workforce, it is crucial for organizations to retain the wealth of knowledge and experience of more seasoned employees. Career development initiatives aimed at retaining experienced talent provide direct opportunities for knowledge sharing enhancing and tapping into knowledge capital within an organization, and ensuring that such valuable knowledge is not suddenly lost. Fill Internal Skill and Role Gaps - Skill and competency gaps, particularly within critical high-level roles, are becoming more and more common as roles become more demanding and the demands of leadership grow ever more complex. Creating a culture and process that facilitates internal mobility is one of the best ways to fill these gaps from within the organization. An internal mobility framework enables qualified employees to find roles most suited to them, and enables the organization to fill such roles without the extensive costs associated with hiring, training and on boarding external individuals. Create Positive Employer Branding - Organizations that achieve the most sustainable success are those that attract the best people to develop their strategies and achieve their goals. An effective career development initiative

brands your organization as one that truly cares about its employees, helping your organization continuously attract the best people for the roles you need. Read our case study to learn more about the benefits of implementing bestpractice career development initiative.

CAREER PLANNING Career Planning is a relatively new personnel function. Established programs on Career Planning are still rare except in larger or more progressive organizations .Career Planning aims at identifying personal skills, interest, knowledge and other features; and establishes specific plans to attain specific goals. Aims and Objectives of Career Planning: Career Planning aims at matching individual potential for promotion and individual aspirations with organizational needs and opportunities. Career Planning is making sure that the organization has the right people with the right skills at the right time. In particular it indicates what training and development would be necessary for advancing in the career altering the career path or staying in the current position. Its focus is on future needs and opportunities and removal of stagnation, obsolescence, dissatisfaction of the employee. OBJECTIVE OF CAREER PLANNING To attract and retain the right type of person in the organization. To map out career of employees suitable to their ability and their willingness to be trained and developed for higher positions. To have a more stable workforce by reducing labor turnover and absenteeism. It contributes to man power planning as well as organizational development and effective achievement of corporate goals. To increasingly utilize the managerial talent available at all levels within the organization. It helps employee in thinking of long term involvement with the organization. To provide guidance and encourage employees to fulfill their potentials. To achieve higher productivity and organizational development. To ensure better use of human resource through more satisfied and productive employees. To meet the immediate and future human resource needs of the organization on the timely basis. NEED FOR CAREER PLANNING To desire to grow and scale new heights. Realize and achieve the goals. Performance measure. High employee turnover.13 To educate the employees It motivates employees to grow. It motivates employees to avail training and development. It increases employee loyalty as they feel organization cares about them.

In fact both individuals and the organization are going to benefit from career planning and development. So the advantages are described below:

For Individuals 1. The process of career planning helps the individual to have the knowledge of various career opportunities, his priorities etc 2. This knowledge helps him select the career that is suitable to his life styles, preferences, family environment, and scope for self-development etc 3. It helps the organization identify internal employees who can be promoted. 4. Internal promotions, up gradation and transfers motivate the employees, boost up their morale and also result in increased job satisfaction. 5. Increased job satisfaction enhances employee commitment and creates a sense of belongingness and loyalty to the organization. 6. Employee will await his turn of promotion rather than changing to another organization. This will lower employee turnover. 7. It improves employees performance on the job by taping their potential abilities and further employee turnover. 8. It satisfies employee esteem needs.

For Organizations A long-term focus of career planning and development will increase the effectiveness of human resource management. More specifically, the advantages of career planning and development for an organization include: 1. Efficient career planning and development ensures the availability of human resources with required skill, knowledge and talent. 2. The efficient policies and practices improve the organizations ability to attract and retain highly skilled and talent employees. 3. The proper career planning ensures that the women and people belong to backward communities get opportunities for growth and development. 4. The career plan continuously tries to satisfy the employee expectations and as such minimizes employee frustration. 5. By attracting and retaining the people from different cultures, enhances cultural diversity. 6. Protecting employees interest results in promoting organizational goodwill.

Bibliography Building a Career Development Program: Nine Steps for Effective Implementation by Richard L. Knowdell Career Planning and Succession Management: Developing Your Organization's Talent--for Today and Tomorrow by William J. Rothwell www.icaew.com