C H A PT E R 9

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					Chapter 09 - Employee Development

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Chapter Summary

This chapter begins by discussing the relationship between development, training, and
careers. Then, four approaches (education, assessment, job experiences, and interpersonal
relationships) used to develop employees, managers, and executives are presented. The third
section of the chapter provides an overview of the steps of the development planning process.
The chapter concludes with a discussion of special issues, including succession planning,
melting the glass ceiling, and helping dysfunctional managers.

Learning Objectives

After studying this chapter, the student should be able to:

1.     Explain how employee development contributes to strategies related to employee
       retention, developing intellectual capital, and business growth.
2.     Discuss the current trends in using formal education for development.
3.     Relate how assessment of personality type, work behaviors, and job performance can
       be used for employee development.
4.     Explain how job experience can be used for skill development.
5.     Develop successful mentoring programs.
6.     Describe how to train managers to coach employees.
7.     Discuss the steps in the development planning process.
8.     Explain the employees’ and company’s responsibilities in planning development.
9.     Discuss what companies are doing for management development issues including
       succession planning, melting the glass ceiling, and helping dysfunctional managers.

Extended Chapter Outline

Note: Key terms appear in boldface and are listed in the "Chapter Vocabulary" section.

Chapter 09 - Employee Development

Opening Vignette:
Helping Consultants Manage Their Own Development and Careers Leads to Retention
at Accenture Consulting

Accenture Consulting, with offices in 150 cites and 178,000 employees, has created several
different types of mechanisms to help employees manage their careers. These mechanisms
include career counseling with a more seasoned employee in the same line of business; a new
philosophy replacing the ―get promoted or leave‖ whereby employees are encouraged to
explore different career paths within the organization, and a website called ―Careers
Marketplace‖ to help employees learn about opportunities within the organization. All of
these steps are designed to enhance retention and provide employees with more ways to
develop and grow within the company.

Discussion Question

      1. Explain how Accenture has created the conditions to motivate its senior employees to
         care about employee development.

         Every employee is evaluated on people development skills as part of the annual
         performance review, which is tied to their annual pay increase. Accenture’s
         performance and compensation system encourages senior employees to make time in
         their schedules for career counseling. These types of steps create conditions that
         encourage employee development.

I.       Introduction

II.      The Relationship between Development, Training, and Careers (See Table 9.1 in text)

         A.     Development refers to formal education, job experiences, relationships and
                assessment of personality and abilities that help employees prepare for the

         B.     While development involves learning what is not necessarily related to one’s
                current job, training is focused on helping employees’ performance in their
                current job.

         C.     Development and Careers- Careers have been described as the sequence of
                positions held within an occupation. Each employee’s career consists of
                different jobs, positions, and experiences.

Chapter 09 - Employee Development

               1.     A new concept of the career is often called a protean career. A protean
                      career is a career that is based on self-direction with the goal of
                      psychological success in one’s work. Employees are taking major
                      responsibility for managing their career.

                      a.      Evaluating the psychological contract between employees and
                              the company has influenced the development of the protean
                              career. A psychological contract is the expectations that
                              employees and employers have about each other.

                      b.      The goal of a new career for an employee is psychological
                              success or the feeling of pride and accomplishment that comes
                              from achieving life goals.

               2.     The types of knowledge that an employee needs to be successful have
                      changed. In the traditional career, ―knowing how‖ was critical. Now
                      employees also need to ―know why‖ and ―know whom.‖

               3.     The emphasis on continuous learning and learning beyond knowing
                      how as well as changes in the psychological contract are altering the
                      direction and frequency of movement within careers.

                      a.      Traditional career patterns consisted of a series of steps
                              arranged in a linear hierarchy, with higher steps in the hierarchy
                              related to increased authority, responsibility, and compensation.

                      b.      Expert career patterns involve a lifelong commitment to a field
                              or specialization.

                      c.      The most appropriate view of a career is that it is
                              ―boundaryless.‖ It may include movement across several
                              employers or even different occupations.

               4.     To retain and motivate employees companies need to provide a system
                      to identify and meet employees’ development needs. This system is
                      often known as career management or development planning

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III.   Approaches to Employee Development

       A.      Formal Education

               1.     Formal education programs include off-site and on-site programs
                      designed specifically for the company's employees, short courses
                      offered by consultants or universities, executive MBA programs, and
                      university programs in which participants actually live at the university
                      while taking classes.

                      Example: The Bank of Montreal (BMO) has invested more than $400
                      million in training and development, including building the Institute for
                      Learning, with high-tech classrooms, rooms to accommodate out-of-
                      town employees, a presentation hall, restaurants and a gym. Each year
                      8,000 employees receive training at the Institute for Learning.

               2.     Table 9.3 lists the five largest institutions for executive education.
                      Many companies and universities are increasingly using distance
                      learning to reach executive audiences.

               3.     Another trend in executive education is for companies and the
                      education provider to create short, custom courses, with the content
                      designed specifically to meet the needs of the audience.

               4.     The final important trend in executive education is to supplement
                      formal courses from consultants or university faculty with other types
                      of development activities. For example, Avon Products’ ―Passport

               5.     Tuition reimbursement refers to the practice of reimbursing
                      employees’ costs for college and university courses and degree

Chapter 09 - Employee Development

Competing Through Technology:
E-Learning and the Internet Help Employees Manage Careers and Build Management

IBM is at the forefront of using technology to help employees manage their careers. IBM’s
Blue Opportunities reinforces to employees that it is important for them to grow their careers,
and there are several ways employees can do that. They can work on assignments that help
them develop skills across business units, and they can locate and identify training and
development activities that interest them. These activities include short-and long-term job
rotation, on-site job shadowing, and cross-functional projects. Managers benefit from Blue
Opportunities, too, because they can assist employees in developing their careers.
Additionally, The Role of the Manager @ IBM is an expert system that provides a customized
learning portfolio for each manager.

Discussion Question

   1. What are some of the features of IBM’s ―Blue Opportunities‖ that would appeal to
      you as an employee? Why?

       Student responses can vary. They might identify the short or long term job rotation, so
       that they can actually experience performing a job in a different business unit. They
       might identify job shadowing, so that they can work side by side with another
       employee and learn a different set of skills or competencies. They might even be
       drawn to the opportunity to work with an employee from another culture.

Evidence-Based HR

Tuition costs for executive execution and tuition reimbursement programs are not a trivial
expense for companies, so many companies are now asking for evaluation data that show the
value of a program. There are several ways to obtain this data. Columbia Business School,
for example, uses performance measures to track success of program participants. The
University of Virginia’s Graduate School of Business Administration asks participants to
complete surveys three months after attending their programs, to judge the practical value of
those programs. Companies who provide tuition reimbursement often have a graduated
schedule for reimbursement: students are reimbursed 100% if they earn an A or B, and 50% if
they earn a C. Verizon Wireless has even started on-site college degree programs for
Associates, Bachelors, and MBA degree programs in 14 corporate offices. They have found
that employees who earn degrees are one and a half times more likely to receive a promotion
or lateral move within the company.

Chapter 09 - Employee Development


Break the class into groups of threes or fours, and have each small group discuss the
following questions. Give each group 10 to 15 minutes, and have them appoint a reporter to
report back to the large group:

What is the value of emphasizing evaluation data on tuition costs for executive education and
tuition reimbursement programs? What might the “ideal” tuition reimbursement program
look like—in other words, what are the key features and stipulations?

Student responses should include the notion that a company should assess its return on
investment for executive education and tuition reimbursement programs. This return can be
assessed through the performance of employees as obtained, for example, through their
performance reviews. It can also be obtained through their own self-assessments and surveys.
Clearly, too, the business results provide evaluative data. For the second question, students
might identity the relevance of the degree being pursued as a key feature and stipulation of a
tuition reimbursement program. In other words, it might not be wise for a company to provide
tuition reimbursement for a student pursuing a degree in an entirely non-related or non-
relevant field.

       B.      Assessment involves collecting information and providing feedback to
               employees about their behavior, communication style, or skills.

               1.     Myers-Briggs Type Indicator (MBTI)

                      a.      MBTI, the most popular psychological test for employee
                              development, consists of more than 100 questions about how
                              the person feels or prefers to behave in different situations.

                      b.      The MBTI identifies individuals' preferences for energy
                              (introversion versus extroversion), information gathering
                              (sensing versus intuition), decision-making (thinking versus
                              feeling), and lifestyle (judging versus perceiving).

                      c.      Sixteen unique personality types result from the four MBTI
                              preferences (Text Table 9.4).

                      d.      MBTI is used for understanding such things as communication,
                              motivation, teamwork, work styles, and leadership.

                      e.      Research on the validity, reliability, and effectiveness of the
                              MBTI is inclusive.

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               2.      Assessment Center

                      a.      The assessment center is a process in which multiple raters
                              evaluate employees' performance on a number of exercises

                      b.      From 6 to 12 employees usually participate at one time, and the
                              assessment center is usually held at an off-site location.

                      c.      A leaderless group discussion is a process in which a team of
                              five to seven employees solve an assigned problem together
                              within a certain time period.

                      d.      An Interview refers to when employees are questioned about
                              their work and personal experiences, skills, and career plans.

                      e.      In-basket is a simulation of the administrative tasks of a
                              manager’s job.

                      f.      Role-plays refer to a participant taking the part or role of a
                              manager or other employee.

                      g.      Assessment center exercises are designed to measure
                              employees’ administrative and interpersonal skills.

                      h.      Assessment centers are useful for development purposes
                              because employees who participate in the process receive
                              feedback regarding their attitudes, skill strengths, and

                      i.      The evaluators are normally managers from the organization
                              who have been trained to identify behaviors related to the skills

                              Example: Steelcase, the office furniture manufacturer based in
                              Grand Rapids, Michigan, uses assessment centers for first-level
                              managers. The assessment center exercises include in-basket,
                              interview simulation, and a timed scheduling exerciser requiring
                              participants to fill positions created by absences.

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               3.      Benchmarks

                      a.      Benchmarks are an instrument designed to measure the factors
                              that are important to being a successful manager.

                      b.      There are 16 skills and perspectives believed to be important for
                              becoming a successful manager that are measured by
                              benchmarks (Text Table 9.6).

                      c.      The managers’ supervisors, peers, and the managers themselves
                              complete the instrument, and a summary report includes
                              self-ratings and ratings by others, along with comparative
                              information with other managers. A development guide is also

               4.      Performance Appraisals and 360-degree Feedback Systems

                      a.      Performance appraisals are the process through which an
                              organization gets information on how well an employee is doing
                              his or her job.

                      b.      Upward feedback involves collecting subordinates’
                              evaluations of managers’ behaviors or skills.

                      c.      The 360-degree feedback system is a performance appraisal
                              system for managers that includes evaluations from a wide
                              range of persons who interact with the manager. A sample
                              competency and items from a 360-degree feedback instrument
                              is provided in Table 9.7 of the text.

                              1).    The benefits of 360-degree feedback include collecting
                                     multiple perspectives of managers' performance,
                                     allowing the employees to compare their own personal
                                     evaluation with the view of others, and formalizing
                                     communications between employees and internal and
                                     external customers.

Chapter 09 - Employee Development

                              2).     Some of the potential limitations of 360-degree feedback
                                      include the time demands placed on the raters to
                                      complete the evaluation, managers seeking to identify
                                      and punish raters who provide negative information, the
                                      need to have a facilitator to help interpret results, and
                                      companies' failure to provide ways that managers can
                                      act on the feedback they receive.

       A.      Job Experiences—Most employee development occurs through job
               experiences: relationships, problems, demands, tasks, or other features that
               employees face in their jobs (Text Table 9.9).

               Example: At Andersen Consulting, during the first five years as a consultant,
               the individual receives nearly 800 hours of formal training supplemented with
               carefully chosen on-the-job experiences. Early job assignments often cross
               business and technical areas to allow employees to discover interests and

               1.     Enlarging the Current Job – Job enlargement refers to adding
                      challenges or new responsibilities to an employee’s current job.

                      Example: Joanne has recently had her management job enlarged by
                      being assigned an additional employee to supervise.

               2.      Job Rotation

                      a.      Job rotation gives employees a series of job assignments in
                              various functional areas of the company or movement among
                              jobs in a single functional area or department.

                      b.      Job rotation helps employees gain an overall appreciation of the
                              company's goals, increases their understanding of different
                              company functions, develops a network of contacts, and
                              improves their problem solving and decision making skills.

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               3.     Transfers, Promotions, and Downward Moves

                      a.      A transfer is the movement of an employee to a different job
                              assignment in a different area of the company.

                      b.      Promotions are advancements into positions with greater
                              challenges, more responsibility, and more authority than in the
                              previous job; they usually include a pay increase.

                      c.      Since transfers requiring relocations can be anxiety producing,
                              many companies have difficulty getting employees to accept

                              (1)    Employee characteristics associated with a willingness
                                     to accept transfers include high career ambitions, a
                                     belief that one's future with the company is promising,
                                     and a belief that accepting a transfer is necessary for
                                     success in the firm.

                              (2)    Among married employees, the spouse's willingness to
                                     move is the most important influence on whether
                                     employees will accept a transfer.

                      c.      A downward move occurs when an employee is given less
                              responsibility and authority. Temporary cross-functional moves
                              to lower-level jobs, which give employees experience working
                              in different functional areas, are most frequently used for
                              employee development.

                      d.      To ensure that employees accept transfers, promotions, and
                              downward moves as development opportunities, companies can
                                  Information about the content, challenges, and potential
                                     benefits of the new job and location.
                                  Involvement in the transfer decision by sending the
                                     employees to preview the new location and giving them
                                     information about the community.
                                  Clear performance objectives and early feedback about
                                     their job performance.
                                  A host at the new location to help them adjust to the new
                                     community and workplace.

Chapter 09 - Employee Development

                                       Information about how the job opportunity will affect
                                        their income, taxes, mortgage payments, and other
                                       Reimbursement and assistance in selling and purchasing
                                        or renting a place to live.
                                       An orientation program for the new location and job.
                                       Information on how the new job experiences will
                                        support the employees’ career plans.
                                       Assistance for dependent family members, including
                                        identifying schools and child care and elder care options.
                                       Help for the spouse in identifying and marketing skills
                                        and finding employment.

                      e.      Externship refers to a company allowing employees to take a
                              full-time operational role at another company.

               4.     Temporary Assignments with Other Organizations

                      a.      First Chicago National Bank and Kodak participated in an
                              employee-exchange program so that the two companies could
                              better understand each other’s business and discover ways to
                              improve the services provided.

                      b.      Temporary assignments can include a sabattical (a leave of
                              absence from the company to renew or develop skills).

Chapter 09 - Employee Development

Competing Through Globalization:
Going Around the World Develops Leadership Skills

In order to develop leadership skills in a global economy and environment,
PricewaterhouseCoopers (PWC) developed the Ulysses program, which sends participants
selected on the basis of leadership skills and potential, to locations all over the world.
Participants spend two weeks in training to prepare for the assignment, eight weeks on
assignment, and then a de-briefing. Participants engage in projects outside their areas of
expertise, and the project involve multi-cultural teams in developing countries in
collaboration with local social or governmental organizations, social entrepreneurs, and
international institutions. PWC has begun to see evidence of the success of the program, as
evidenced by the fact that all 24 program participants are still working at PWC, half have
been promoted, and most have new job responsibilities.

Discussion Question

   1. How does working on a socially oriented project, like the community AIDS crisis
      project in Namibia, Africa, develop leadership skills?

       By engaging in multi-cultural activities outside of their areas of expertise, program
       participants are able to develop the ability to see beyond the bounds of their particular
       culture, and their particular part of the PWC business. Because the world of business
       is a global world, and because businesses like PWC impact social, political, and
       economic spheres, participants in this program are broadened and they are likely to
       approach business challenges with a more capable perspective. This broadened
       perspective enhances their ability to lead people as well as projects.

       D.      Interpersonal Relationships

               1.     Mentoring

                      a.      A mentor is an experienced, productive senior employee who
                              helps develop a less-experienced employee (protege).

                              Example: Ernst & Young has mentoring programs pairing
                              high-potential employees with executive mentors (Executive
                              Mentoring Program) and minority employees with senior
                              leaders (Learning Partnerships).

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                      b.      Developing Successful Mentoring Programs—Most mentoring
                              relationships develop informally; however, companies can have
                              formal mentoring programs.

                              (1)    One of the limitations of formal mentoring programs is
                                     that the mentors may not be able to provide counseling
                                     and coaching in a relationship that has been artificially

                              (2)    One of the major advantages of formalized mentoring
                                     programs is that they ensure access to mentors for all
                                     employees, regardless of gender or race.

                              (3)    Characteristics of a successful formal mentoring
                                     program include such things as voluntary participation
                                     and the length of the program being specified (Text
                                     Table 9.11).

               2.     Benefits of Mentoring Relationships

                      a.      Mentors provide career support, which is coaching, protection,
                              sponsorship, and providing challenging assignments, exposure,
                              and visibility.

                      b.      Mentors offer psychological support, which is serving as a
                              friend and role model, providing positive regard and
                              acceptance, and creating an outlet for a protégé to talk about
                              anxieties and fears.

                      c.      Proteges normally receive higher rates of promotion, higher
                              salaries, and greater organizational influence.

                      d.      Mentoring relationships provide opportunities for mentors to
                              develop their interpersonal skills and increase their feelings of
                              self-esteem and worth to the organization.

               3.     Purposes of Mentoring Programs

                      a.      Mentor programs are used to socialize new employees, to
                              increase the likelihood of skill transfer from training to the work
                              setting, and to provide opportunities for women and minorities
                              to gain the exposure and skills needed to move into managerial

Chapter 09 - Employee Development

                      b.      As part of their approach to managing a diverse work force,
                              many companies are using mentoring programs in which
                              women and minorities gain the skills and visibility needed to be
                              promoted. Pacific Bell's mentoring program received an award
                              from the Department of Labor for its commitment to equal
                              employment opportunity.

                      c.      In group mentoring programs, a successful senior employee
                              is paired with a group of four to six less experienced proteges.
                              One potential advantage of the mentoring group is that proteges
                              can learn from each other as well as from a more experienced
                              senior employee.

               4.     Coaching

                      a.      A coach is a peer or manager who works with an employee to
                              motivate him, help him develop skills, and provide
                              reinforcement and feedback.

                      b.      There are three roles that a coach can play. Part of coaching
                              may be one-on-one with an employee. Another role is to help
                              employees learn for themselves. Third, coaching may involve
                              providing resources such as mentors, courses, or job
                              experiences that the employee may not be able to gain access to
                              without the coach’s help.

                      c.      To develop coaching skills, training programs need to focus on
                              four issues related to mangers’ reluctance to provide coaching.
                              First, managers may be reluctant to discuss performance issues
                              even with a competent employee because they want to avoid
                              confrontation. Second, managers may be better able to identify
                              performance problems than to help employees solve them.
                              Third, managers may also feel that the employee interprets
                              coaching as criticism. Fourth, as companies downsize and
                              operate with fewer employees, managers may feel that there is
                              not enough time for coaching.

Chapter 09 - Employee Development

Competing Through Sustainability:
Mentoring Programs Have Potential to Pay Individual, Corporate, and Societal

Because they see the value in developing management talent that can help sustain a business
strategy, companies like KLA-Tencor, The Woman’s Alliance at Xerox, and General Electric
encourage women and minorities to move into management positions. KLA-Tencor is a
supplier of process control solutions for the semi-conductor industry. KLA-Tencor uses
mentoring to improve senior managers’ skills. The Woman’s Alliance at Xerox (TWA) uses
electronic self-service mentor matching to help women overcome one of the problems they
face in establishing a mentor relationship: finding a suitable mentor. Top females at General
Electric (GE) are assigned leadership roles within GE’s Women’s Network (GEWN) and they
also have the opportunity to meet and talk with members of GE’s senior management team.

Discussion Question

      1. Explain why it is important for companies to create opportunities that help women and
         minorities develop leadership skills. Who benefits from these types of programs?

         Because women and minorities have historically been under-represented in senior
         management and leadership positions, these types of developmental opportunities help
         them overcome the barriers they face. Mentoring programs help mentees, and
         leadership development programs enable emergent leaders to acquire skills and
         competencies needed for senior positions. By creating particular opportunities for
         women and minorities, it sends a signal to those employees that the company indeed
         values them and wants them to have similar opportunities as everyone in the
         organization. By doing so, everyone benefits. The employee benefits through access to
         promotional opportunities. The organization benefits by having greater depth and
         breadth of people in their leadership ranks. The organization also benefits because it
         can sustain its strategic business objectives by having a stronger and more diverse
         leadership team.

IV.      Career Management and Development Planning Systems

         A.     Steps and Responsibilities in the Career Management Process (Figure 9.3)

                1.      Self-Assessment

                        a.     Self-assessment helps employees determine their interests,
                               values, aptitudes, and behavioral tendencies.

Chapter 09 - Employee Development

                      b.      Self-assessment often involves the use of psychological tests
                              such as the Strong-Campbell Interest Inventory and the Self-
                              Directed Search.

               2.     Reality Check

                      a.      Employees receive information about how the company
                              evaluates their skills and knowledge and where they fit into the
                              company's plans.

                      b.      Usually, employees receive this information from their
                              managers as part of the performance appraisal process.

               3.     Goal Setting

                      a.      Employees determine their short-term and long-term career
                              goals during this phase of the career planning process.

                      b.      These goals are often discussed with the manager and written
                              into a development plan (Text Figure 9.3).

               4.     Action Planning

                      a.      During this phase, employees determine how they will achieve
                              their goals.

                      b.      Action plans may involve enrolling in training courses and
                              seminars, conducting informational interviews, or applying for
                              job openings within the company.

               5.     Examples of Career Management and Development Systems

                      a.      Effective career management and development systems include
                              several important design features (Text Table 9.13).

V.     Special Issues in Employee Development

       A.      Melting the Glass Ceiling

Chapter 09 - Employee Development

               1.     The glass ceiling is a barrier to advancement to the higher levels of the
                      organization. This barrier may be due to stereotypes or company
                      systems that adversely affect the development of women or minorities.

               2.     Managers making developmental assignments need to carefully
                      consider whether gender biases or stereotypes are influencing the types
                      of assignments given to women versus men.

                      Example: Safeway has taken steps to help women advance into
                      management. A woman’s initiative, Championing Change for Women:
                      An Integrated Strategy, includes programs that focus on leadership
                      development, mentoring and work/life balance. To help support
                      women’s success, the company ensures that women who work part-
                      time and use flexible schedules have similar opportunities for coaching,
                      advancement, and development.

       B.      Succession Planning

               1.     Succession planning primarily involves the identification and tracking
                      of high-potential employees capable of filling higher-level managerial
                      positions. High-potential employees are those that the company
                      believes are capable of being successful in higher-level managerial
                      positions. These employees typically participate in fast-track
                      development programs that involve education, executive mentoring and
                      coaching, and rotation through job assignments.

               2.     Research suggests that the development of high-potential employees
                      involve three stages: In Stage I, high-potential employees are selected.
                      In Stage II, high-potential employees receive development experiences.
                      In Stage III, high-potential employees usually have to be seen by top
                      management as fitting into the company's culture and having the
                      personality characteristics needed to successfully represent the

Chapter 09 - Employee Development

       C.      Helping Managers with Dysfunctional Behaviors

               1.     A number of studies have identified managerial behavior that can cause
                      an otherwise competent manager to be a ―toxic‖ or inefficient manager.

               2.     Typically, a combination of assessment, training, and counseling is
                      used to help managers change the dysfunctional behavior.

A Look Back

The chapter opener described Accenture Consulting’s career management and employee
development efforts.


1.     How might job experiences that provide consultants with different types of work or
       the opportunity to serve different clients help them develop?

       Student responses may vary, but could include the observation that by providing
       opportunities that stretch consultants beyond their usual scope of business, and beyond
       their scope of cultural competence, consultants have the opportunity to learn and

2.     What should be included in a development plan that a consultant at Accenture
       Consulting would complete with his or her career counselor?

       Student answers may vary. They may include that the employees need to perform
       self-assessments to see what they need to improve upon and what opportunities that
       already have. Then, employees need to get information about how the company
       evaluates their skills and knowledge and where they stand in the company’s plans.
       Next, employees need to decide where they want to advance to, regarding job
       positions, skills, work setting, and/or skill acquisition. Finally, the employees need to
       determine paths to take to achieve their goals.

3.     Would the development activities for the highest performing consultants vary from the
       activities used for satisfactory performing consultants? Why? Explain the differences.

       Student answers may vary, however it is important to note that all employees should
       receive some form of developmental activities. However, high-performing consultants
       probably would prefer to have opportunities that challenged them, and that enabled
       them to develop depth and breadth of skills and competencies. Satisfactory performing
       consultants may or may not care to be stretched.

Chapter 09 - Employee Development

Chapter Vocabulary

These terms are defined in the "Extended Chapter Outline" section.

Protean career
Psychological contract
Psychological success
Career management system
Formal education programs
Myers-Briggs Type Indicator (MBTI)
Tuition reimbursement
Assessment center
Leaderless group discussion
Role plays
Performance appraisal
Upward feedback
360-degree feedback systems
Job experiences
Job enlargement
Job rotation
Downward move
Career support
Psychological support
Group mentoring programs
Glass ceiling
Succession planning
High-potential employees

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Discussion Questions

1.     How could assessments be used to create a productive work team?

       Assessment could be used to create a productive work team by selecting individuals
       that would work well together. Also, assessment would help individuals understand
       themselves and their work style so that they can better understand their reactions to
       others. MBTI is an especially useful tool to help teams understand the different
       personality types and how they work together. Assessment can also help match teams
       with assignments that allow them to capitalize on their preferences and strengths.

2.     List and explain the characteristics of effective 360-degree feedback systems.

       An effective 360-degree feedback system is where employees’ behaviors and skills are
       evaluated not only by subordinates, but also by peers, customers, their bosses, and
       themselves. The raters are given a questionnaire to complete asking them to rate the
       person on a number of different dimensions. Raters are often asked to rate the degree
       to which each particular item is considered a strength or needs development. Some
       benefits of the system include collecting multiple perspectives of mangers’
       performance, allowing the employee to compare his own personal evaluation with the
       views of others, and formalizing communications about behaviors and skills rated
       between employees and their internal and external customers. By performing this
       system, studies have shown that performance improvement and behavior change occur
       as a result. Reliable or consistent ratings are provided, raters’ confidentiality is
       maintained, the behaviors or skills assessed are job-related (valid), the system is easy
       to use, and mangers receive and act on the feedback.

3.     Why do companies develop formal mentoring programs? What are the potential
       benefits for the mentor? For the protégé?

       Companies develop mentoring programs because it allows employees to increase their
       knowledge and develop skills by interacting with a more experienced employee. A
       mentor is an experienced, productive senior employee who helps develop a less
       experienced employee. One major reason why companies form formal mentoring
       programs is because they ensure access to mentors for all employees, regardless of
       race or gender. Also, participants in the mentoring relationship know exactly what is
       expected of them. Mentor programs are used to socialize new employees, increase the
       likelihood of skill transfer from training to the work setting, and to provide
       opportunities for women and minorities to gain the exposure and skills needed to
       evolve into managerial positions.

Chapter 09 - Employee Development

       Mentoring relationships provide opportunities for mentors to develop their
       interpersonal skills and increase their feelings of self-esteem and worth to the
       organization. Mentors provide career support and psychological support to their

       Protégés normally receive higher rates of promotion, higher salaries, and greater
       organizational influence.

4.     Your boss is interested in hiring a consultant to help identify potential managers
       among current employees of a fast food restaurant. The manager’s 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 help motivate employees to provide high-quality service. The manager
       is also responsible for resolving disputes that might occur between employees. The
       position involves working under stress and coordinating several activities at a time.
       She asks you to outline the type of job assessment program you believe would do the
       best job of identifying employees who will be successful managers. What will you tell

       The best type of assessment program that should be used is the MBTI. One reason for
       this is because to become a manager in a type of stressful and active atmosphere as a
       restaurant or fast food restaurant you need to have a certain type of personality. The
       MBTI will let a consultant know what each employee’s personality is and which one
       will work best under this high-pressure job. A person taking this type of position
       needs to be flexible, able to work with others, agreeable and stern, approachable, etc.
       in order for the employees’ and customers to feel comfortable to approach him/her
       when things go wrong. Another assessment program could be benchmarks or
       assessment center.

5.     Many employees are unwilling to relocate because they like their current community,
       and spouses and children prefer not to move. Yet employees need to develop new
       skills, strengthen skill weaknesses, and be exposed to new aspects of the business to
       prepare for management positions. How could an employee’s current job be changed
       to develop management skills?

       Some ways that an employee’s current job could be changed to develop his or her
       leadership skills include job rotation assignments, enlarging the current job by adding
       challenges or new responsibilities, and transfers or promotions. Also, the current
       employees could be sent to workshops updating them on the various management
       skills where they have to interact and participate to gain a feeling for the different
       management skills when in practice.

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6.      What is coaching? Is there one type of coaching? Explain.

       Coaching is when a peer or manager works with an employee to motivate him, help
       him develop skills, and provide reinforcement and feedback. Coaching can take on
       three different roles. One role is the one-on-one with an employee, which includes
       giving them feedback. The second role is to help employees learn for themselves
       which involves helping them find experts who can assist them with their concerns and
       teaching them how to obtain feedback from others. The third role includes providing
       resources such as mentors, courses, or job experiences that the employee may not be
       able to gain access to without the coach’s help.

7.     Why are many managers reluctant to coach their employees?

       Managers are reluctant to coach their employees because they would rather avoid
       confrontation so they are reluctant to discuss performance issues with even a
       competent employee. This occurs usually when the manager is less of an expert than
       the employee; for instance, when a new manager is trying to discuss performance with
       a long term employee. Second, managers may be better able to identify performance
       problems than to help employees solve them. Third, managers may also feel that the
       employee interprets coaching as criticism. Fourth, as companies downsize and operate
       with fewer employees, managers may feel that there is not enough time for coaching.

8.     Why should companies be interested in helping employees plan their careers? What
       benefits can companies gain? What are the risks?

       This question could be used as a brainstorming exercise in which students try to think
       of as many benefits as they can. Some benefits would include improved employee
       morale if employees feel that the company cares about their careers, better career
       planning for the company, a better fit with the company and the employees, and so on.
       The risks are that employees may decide to change careers and leave the company
       after the company has spent time and money training them.

9.     What are the manager’s roles in a career management system? Which role do you
       think is most difficult for the typical manager? Which is the easiest role? List the
       reasons why managers might resist involvement in career management.

Chapter 09 - Employee Development

       The manager’s roles in a career management system include self-assessment, reality
       check, goal setting, and action planning. In self-assessment managers’ provide
       assessment information to identify strengths, weaknesses, interests, and values. In the
       reality check role, managers’ communicate performance evaluation to show where
       employee fits into long range plans of the company. In the goal setting role,
       managers’ ensure that the goal is specific, challenging, and attainable as well as
       committing to help the employees reach the goal. In the action-planning role,
       managers’ identify resources employees need to reach goal including courses, work
       experience, and relationships.

       The most difficult role is the reality check role because here managers’ have to
       communicate with their employees about their performance and evaluations. This
       may be very hard for some managers because not many are comfortable with
       commenting on employees’ progress because they don’t want to create conflict, may
       not be as knowledgeable as the employee being evaluated, and the manager may feel
       that the employee will take it as criticism and become defensive. The easiest role for
       managers is the goal setting role because almost every manager has an idea on what
       the goals for the company are to be and in this role they have to make those goals clear
       and attainable to the employee.

       Managers may resist involvement in the management career program because they
       may not feel comfortable with such a structured program. Many managers are not
       comfortable in being involved in all the steps.

10.    What are the characteristics of the most effective company development strategies?
       Which characteristics do you believe is most important? Why?

       Student answers may vary. Successful companies use a wide array of development
       strategies. Certainly, many use mentoring and coaching as a method for developing
       new employees. In these programs, the most important characteristic is fairness and
       flexibility. Companies should not discriminate in terms of who is given development
       opportunities. Diversity should be encouraged

11.    Nationwide Financial, a 5,000 employee life insurance company based in Columbus
       Ohio, found that their management development program contained four types of
       managers. One type, unknown leaders, have the right skills but their talents are
       unknown to top managers in the company. Another group, arrogant leaders believe
       they have all the skills they need. What types of development program would you
       recommend for these managers?

       Student answers may vary. Mentoring programs would work better for unknown
       leaders, while transfers may be suggested for arrogant leaders.

Chapter 09 - Employee Development

Self-Assessment Exercise

Refer to the text for the self-assessment exercise.

Manager’s Hot Seat Exercise: Personal Disclosure: Confession Coincidence?

I. Introduction

       This scenario demonstrates how disclosure of personal information and how
       friendships between managers and employees can create difficult situations.
       Management and Organizational Behavior students will enjoy analyzing this case and
       discussing the pros and cons of various actions. This case could also be used in a
       Human Resources course when discussing the Americans with Disabilities act, as the
       situation deals with a recovering alcoholic and potential discrimination.

II. Learning Objectives

   1. To assess students’ understanding of the self-disclosure process in the workplace.
   2. To analyze and evaluate the ―friend/manager‖ role in the workplace.
   3. To analyze organizational downsizing strategies.

III. Scenario Description:

       Overview: Kathleen Doerder has set up a meeting with an employee, Janeen
       Winthrop, who has a recent record of poor performance. Although Kathleen has met
       with Janeen on two prior occasions to discuss the issue, the poor performance and
       frequent absences and tardiness, have continued. Janeen’s behavior has disrupted
       workflow, negatively affecting a number of colleagues within the department.

            Kathleen Doerder is the Manager of a 65-employee marketing department at
      , an internet travel agency selling customized surprise adventure
                trips around the world.
            Janeen Winthrop works with the creative marketing department to produce
                radio and print advertisements. She works within a team of 15, generating
                concepts and assisting in the implementation and layout of designs.

       References: The references included in the DVD are:
           Components of Self-Disclosure (PPT 11-3)
           Benefits of Self-Disclosure (PPT 11-4)
           Elements of Trust (PPT 11-7)
           Tips for Developing Trust (PPT 11-8)

Chapter 09 - Employee Development

       Back History: Janeen has never been known for her punctuality, which has never
       been a big deal – it’s actually become one of the running jokes in the department. But
       now it is becoming a big deal – very big. Janeen has been showing up later and later,
       more and more frequently over the course of six weeks. It is becoming problematic –
       Kathleen is quite torn: she feels she should be lenient, knowing Janeen is truly
       devoted to maintaining an enthusiastic and content staff and is always persistent in her
       efforts to make things work out.

       Janeen is a recovered alcoholic and has been sober for eight years. Over the past six
       weeks, she’s had a few relapses. Janeen has been very close-mouthed about her
       alcoholism and has shared it with no one – on social occasions, she claims to never
       have had any interest in alcohol and simply prefers to not partake. As of two weeks
       ago she’s been going to AA twice a day. She’s not drinking and is over the hump.

       Scene Set-up: Kathleen meets with Janeen to discuss her tardiness and performance

       Scene Location: Kathleen’s Office

       The Meeting - Summary: Kathleen explains to Janeen that she has noted increased
       tardiness and poor performance. Kathleen tries to get Janeen to divulge what is going
       on in her life personally that could explain this sudden downturn in performance.
       Janeen breaks down in tears and reveals that she is a recovering alcoholic who had a
       relapse in the past six weeks but she is returning to AA and is getting back on track.
       Kathleen is sympathetic to this issue and suggests that she take the rest of the week off
       and then return on Monday. Kathleen indicates that if Janeen continues to be late,
       she’ll have to report the issue to HR, otherwise, she will not share this information
       with anyone.

       Two months later – The company has suffered financially and needs to lay off
       employees. Kathleen explains that Janeen is being laid off because of her seniority,
       not her performance. Janeen is outraged and accuses Kathleen of using the personal
       information she divulged against her. She threatens to sue and storms out.

       Afterthoughts – Summary: Kathleen says that it was hard not to get emotionally
       involved with Janeen when she broke down and cried but she had to stay even-keeled.
       Kathleen says that being friends with her employees is a strategy she uses to improve
       relations among co-workers. Being Janeen’s friend made it hard to tell her she was
       being laid off. If she didn’t lay her off, others would think it was because of nepotism.
       When she did lay her off Janeen thought it was because of the personal information
       Janeen shared.

Chapter 09 - Employee Development

       Dossier: The specific artifacts included in the DVD are:
                 1. J. Winthrop Performance Notes: 4/8/02
                 2. J. Winthrop Performance Notes: 6/7/02
                 3. Company-wide Notice on Layoffs

IV. Discussion Questions:

The References and related Discussion Questions may be found in PowerPoint slides 11-1 to
11-10 on the instructor’s side of the text’s Website.

Learning Objective #1: To assess students’ understanding of the self-disclosure process in
the workplace.

   1. Review the Components of Self-Disclosure (PPT 11-3). Based on Janeen’s behavior
      in the scenario, what basic steps and tips did she exemplify or violate?

        Janeen did share her feelings and focused mainly on the present by indicating what
        she was doing now to solve the problem. It’s unclear what level of disclosure she
        had provided to Kathleen in the past so it’s hard to tell if it was gradual or not. From
        the scenario, it appears that she did not maintain a reciprocal level with her
        manager, but, again, we don’t know what prior personal conversations may have
        taken place.

        Student’s answers will vary as to the appropriateness of the disclosure at this point in
        time. Discuss the level of disclosure Janeen provided and what other approach she
        may have taken.

Chapter 09 - Employee Development

   2.   What benefits of self-disclosure (see PPT 11-4) did Janeen realize? What were the
        disadvantages of her self-disclosure?

        Janeen probably enjoyed many of the benefits listed on the slide. Specifically, she
        was given time off to continue to make progress on her recovery. Janeen perceives
        that her disclosure was a major disadvantage because it caused her to be fired. Again,
        it may be useful to discuss more moderate levels of disclosure that Janeen could have
        taken to prevent this situation.

              1. What is Kathleen’s strategy [in the initial meeting]?
                     A. Identify problem
                     B. Threaten Janeen
                     C. Be compassionate

               Janeen wants to understand Janeen’s problem because her work performance is
               suddenly different.

              2. Janeen’s disclosure [about her relapse] is:
                   A. Inappropriate
                   B. Appropriate
                   C. Irrelevant

               Because she was pressed by Kathleen, Janeen’s disclosure was appropriate. It
               appeared that that was the type of information Kathleen was looking for.
               However, it may not have been the best course of action for Janeen.

Learning Objective #2: To analyze and evaluate the “friend/manager” role in the workplace.

   1. What tips for building trust did Kathleen employ in this scenario? Provide examples
      from the scenario to support your answer. (see PPT 11-7 and PPT 11-8)

        She kept the lines of communication open by soliciting information with Janeen and
        by having repeated meetings with her regarding her performance. She says she kept
        the information about Janeen’s alcoholism confidential.

Chapter 09 - Employee Development

   2. How did the friendship with Janeen affect Kathleen when the company decided to

       Kathleen was stuck in a very difficult situation because she had used her friendship
       with Janeen to get her to reveal information that may have affected her decision on
       who to lay-off. Even if the information did not affect her decision, the appearance that
       it did is hard to defend. On the one hand, Kathleen wants to be open and honest with
       her employees, but she also wants to maintain complete professionalism and make
       business-related decisions. This scenario depicts the fact that this is a hard line to

             3. Kathleen’s response [that she will have to write Janeen up and tell human
       resources if she doesn’t improve] is:

               A. Too strict
               B. Too gentle
               C. Irresponsible

       Student’s answers will vary and this should generate a good discussion about how the
       friendship/management role differentiation is challenging.

Learning Objective #3: To analyze organizational downsizing strategies.

   1. After reviewing the ―Company-wide Notice on Layoffs‖, do you believe Kathleen
      made the right decision in laying off Janeen? Why or why not?

       The memo says that the first round of lay-offs will be based on performance, not
       seniority. Then, seniority will be the determining factor if more layoffs are required.
       During her conversation with Janeen, Kathleen refers to her seniority as the reason she
       is being laid off. Janeen indicates that she is the first one to be laid off and her
       performance has been excellent. Kathleen agrees and ―J. Winthrop Performance
       Notes: 6/7/02‖ describe Janeen’s excellent recent performance. Therefore, it doesn’t
       make sense that Janeen should be the one laid off first. Perhaps, her performance
       when she suffered her relapse was taken into consideration? Discuss the students’
       perspectives on this.

Chapter 09 - Employee Development

              4. Kathleen’s delivery [regarding Janeen’s layoff] is:
                   A. Compassionate
                   B. Cold
                   C. Professional

               Student’s answers will vary. It seems that she may be a little cold and also
               doesn’t really provide an adequate explanation or effectively refute Janeen’s

              5. Janeen’s argument [that she is being discriminated against] is:
                   A. Valid
                   B. Over-emotional
                   C. Off target

               She seems to jump to conclusions without asking for more information which
               indicates that she is a little over-emotional. However, her suspicions could be
               valid if Kathleen’s choice was biased and based on seniority rather than overall
               performance to determine her layoff.

              6. Is there a discrimination case?
                   A. Absolutely
                   B. Definitely not
                   C. Possibly

               It’s definitely possible because individual’s who are recovering from a drug or
               alcohol addiction and actively seeking help are protected under the Americans
               with Disabilities Act. Therefore, for the reasons mentioned in the answer to #1
               above, Janeen may have a case.

Chapter 09 - Employee Development

Exercising Strategy: Employees in Motion at EMC Corporation


1.     EMC is relying on moving employees to new positions as a development strategy.
       What things should EMC do to ensure this is a successful strategy? Are other
       development activities necessary? Why?

       Student answers may vary. EMC has been continually acquiring new companies to
       expand their growth opportunities in the industry. Development activities will be
       necessary to ensure that current and newly acquired employees are not discouraged by
       recent acquisitions.

2.     What data on outcomes should be collected to monitor the effectiveness of EMC’s
       IDP and development program?

       Student answers may vary. The company could perform cost-benefit analyses to see if
       this strategy is working. In addition, the company could interview employees or
       submit questionnaires.

Managing People

How to Groom the Next Boss


1.     What development activities did Kenneth Freeman use to strengthen the skills of
       Surya Mohapatra (his successor)? List the activities and the skills they were designed
       to improve. What other development activities could he have used? Identify the
       development activities and the skills they would be targeted to improve.

       Student answers may vary. Freeman used case assignments to see candidates’
       leadership skills in action. He used trial by fire to improve Mohapatra’s speaking
       skills. Weekly phone conversations were used to help Mohapatra become a faster
       thinker. Freeman asked Mohapatra to give board presentations to make him more
       participatory on the Board of Directors.

Chapter 09 - Employee Development

       Other recommendations may include mentoring or coaching with other supervisors to
       give Mohapatra an understanding of every facet of the organization.

2.     Could a coach help Mohapatra develop the skills needed to be an effective CEO?

       Student answers may vary. A coach would probably be effective because having
       someone by his side most of the day, talking to him constantly will improve his
       communication skills and ability to think quickly. It would also show Mohapatra how
       others apply their leadership skills in the organization. If the coach is on the Board, he
       or she could show Mohapatra how to be a more assertive member.

3.     What recommendations do you have for identifying and preparing managers for CEO
       positions? Indicate the succession planning process as well as the development
       activities you would recommend.

       Student answers may vary.

Additional Activities

Teaching Suggestions

Several interesting topics in this chapter lend themselves to additional activities, such as
diversity training, mentoring, and so on. A couple of in-class activities are suggested as well
as a possible library assignment.

1.     The following statements can be given to student groups (three to five students per
       group), and they can be asked to agree or disagree and prepare the rationale for their

       (Raymond Noe, Michigan State University)

Chapter 09 - Employee Development

       "For diversity training to work, it requires employees to explore values and
       stereotypes they hold about different ethnic, racial, and gender groups. This may
       actually result in even more alienation between groups. Why? One of the potential
       negative aspects of this approach is that it highlights the difficulty that employees will
       have in trying to determine the 'right' way to communicate and work with others from
       ethnic, racial, or religious backgrounds with whom they are not accustomed to dealing.
       Also, discussing stereotypes may expose the company to potential lawsuits due to the
       fact that the training is very personal in nature and may expose discriminatory
       practices and libelous and slanderous information."

       "Our company attempts to manage a diverse work force, not through training, but
       through affirmative action and strict adherence to the Civil Rights Act of 1991. We
       ensure that employees are treated fairly in terms of compensation, selection,
       development opportunities, and promotions."

       "Because diversity training is such a sensitive issue, we will use it only in response to
       incidents that occur that warrant attention."

2.     Mentoring is a subject that can be used for class discussion. An interesting article on
       mentoring is "Mentoring Takes a New Twist" by Beth Rogers, HR Magazine, August
       1992, pp. 48-51. What are the advantages and problems with formal mentoring
       programs? What are the advantages and problems with informal mentoring programs?
       What are the advantages and problems with the person serving as a mentoring? As the
       person being mentored?

3.     Part of dealing with diversity for most organizations includes dealing with an
       increasing number of women managers. Students could take a test called
       "Women-as-Managers Scale" to determine their stereotypes and possible
       misconceptions about women managers. This self-test can be found in Terborg, Peters,
       llgen, and Smith, "Organizational and Personal Correlates of Attitude toward Women
       as Managers." Academy of Management Journal, March 1977, p. 93.

4.     Library Assignment: Have students research examples of successful corporate
       mentoring programs, diversity training programs, and assessment centers. Students
       could write up their results and share them with the class.

Chapter 09 - Employee Development

5.     Research Assignment: Have students research the "glass ceiling" issue. Two available
       sources include "A Solid Investment: Making Full Use of the Nation's Capital" and
       "Good for Business: Making Full Use of the Nation's Human Capital." These are the
       two reports from the federal Glass Ceiling Commission created by the Civil Rights
       Act of 1991. Copies of these reports are available on the Internet at

HRM Failures

Case 9: Promoting without Discrimination

Laurie Chadwick, the mother of four children, worked as a claims specialist for a health
insurance company in Maine. When the team-leader job—a management position—
became available, Chadwick applied; however, she did not get the promotion.

Chadwick sued her employer under Title VII of the Civil Rights Act of 1964 and the Maine
Human Rights Act. The suit claimed that, in rejecting Chadwick’s bid for promotion, her
employer had considered her family responsibilities. Comments supporting Chadwick’s
claim included Chadwick’s supervisor saying, "You have a lot on your plate,’’ and "If [the
three interviewers] were in your position, they would feel overwhelmed.’’ Chadwick’s
employer defended its actions by declaring that child-care obligations cause mothers of
young children to neglect their job duties.

A district court dismissed the suit. It pointed out that, since her employer had not
expressly stated that gender was the reason Chadwick didn’t get the job, Chadwick had
not proved gender bias.

However, an appeals court reversed the lower court’s decision, saying that a direct
reference to gender is not required to establish a "sex plus’’ claim—that is, that
Chadwick’s sex plus her status as a mother with young children resulted in adverse

The court ruled that when employers assume a woman will perform her job less well
because of family obligations, they engage in sex stereotyping. And any adverse actions
an employer takes on that basis constitute gender discrimination. The court also said,
based on the supervisor’s remarks, a reasonable jury was likely to find that Chadwick
was passed over for promotion because of societal stereotypes about women, work, and
child care.

This case has important implications for employers regarding employee development.
Employers should be careful not to make decisions about employees based on any
assumptions regarding the employee’s personal life. Assuming a female employee—just
because she is female—will neglect her job responsibilities because of child-care
responsibilities can be seen as gender discrimination.

Chapter 09 - Employee Development

You’re a supervisor and one of your direct reports—a mother with one-year-old twins—is
interested in applying for a job opening that represents a promotion for her. What do you

Possible answers
    If asked, provide details of the job description for the open position.
    Be available to answer any questions the employee may have about the job.
    Refrain from making any comments related to the employee’s family status.

Case: Chadwick v. Wellpoint, 561 F 3d 38; 2009 U.S. App. Lexis 6426.
Source: James E. Hall, Mark T. Kobata and Marty Denis, ”Sex Stereotyping Claim
of Working Mother,” Workforce Management, May 2009,


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