Restaurant Employee Training and Development Noe by mjq65510

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									CHAPTER 9

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, dealing with
dysfunctional managers, and melting the glass ceiling.

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

     1. Discuss the current trend in using formal education for development.
     2. Discuss how assessment of personality type, work behaviors, and job performance can be
        used for employee development.
     3. Develop successful mentoring programs.
     4. Explain how job experience can be used for skill development.
     5. Explain how to train managers to coach employees.
     6. Discuss the steps in the development planning process.
     7. Discuss the employees‟ and company‟s responsibilities in the development planning
     8. Explain 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.

Opening Vignette: Jewell Food Stores
Jewell Food Stores has supermarkets located in Illinois, Indiana, Iowa, and Wisconsin. Jewell is
notorious for developing managerial talent. The company recruits talent from local colleges and
places them in accelerated development programs. Jewell believes that quality managers are
necessary to create optimal working conditions and store performance. The company‟s
management program has produced top-level managers at Toys R Us, Staples, and Kmart.

I.        Introduction—Development refers to formal education, job experiences, relationships and
          assessment of personality and abilities that help employees prepare for the future. It
          involves learning what is not necessarily related to the employee‟s current job.

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

A. 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.
   Development helps prepare employees for other jobs within the organization.

   Example: Southwest Industries, an aerospace engineering company, uses teams to
   identify specific customer needs, and the team is responsible for determining how
   those needs can be best met.

B. 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.

   1. A new concept of the career is often called a protean career. A protean career is a
      career that is frequently changing based on both changes in the person‟s interests,
      abilities, values, and changes in the work environment. Employees are taking
      more responsibility for managing their careers compared to the traditional 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

       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
          that are not limited to achievements at work.

   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. Career patterns involving movement across specializations or disciplines (a
          spiral career pattern) will become more prevalent.

       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 system.

                            A related reading from Dushkin‟s
                         Annual Editions: Human Resources 99/00:

                  “HR 2008: A Forecast Based on Our Exclusive Study”
                                  by Floyd Kemske

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.

                            A related reading from Dushkin‟s
                         Annual Editions: Human Resources 99/00:

                               “State of the Industry Report”
                           by Laurie J. Bassi & Mark E. VanBuren

               Example: The University of Tennessee at Chattanooga has an executive MBA
               Program that includes a week of study abroad in the final year of the program.

          2.   Table 9.2 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 Program.”

          5.   Most companies consider the primary purpose of education programs to be
               providing the employee with job-specific skills.

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 and TM 9.2).

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

       e.   MBTI scores appear to be related to one‟s occupation but are not necessarily
            stable over time.

   2. Assessment Center

       a.   The assessment center is a process in which multiple raters evaluate
            employees‟ performance on a number of exercises such as role-plays,
            interviews, in-baskets, and leaderless group discussions (a team of 5-7
            employees are assigned a problem and must work together to solve it within
            a certain time period).

            Example: Allied Domecq Spirits and Wine, North America (formerly
            Hiriam\Yialker), arranges a yearly regional assessment center, called their
            Management Development Center, at Eastern Michigan University‟s
            Corporate Education Center in Ypsilanti, Michigan. The center‟s purpose is
            to assist upper-level managers achieve their full professional and career
            potential through specific actions derived from feedback and reports
            generated as a result of testing and evaluation over a number of days at an
            off-site location.

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

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

       d.   Assessment center exercises are designed to measure employees‟
            administrative and interpersonal skills.

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

   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 9.5 and
          TM 9.3).

       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 available.

   4. Performance Appraisals and 360-degree Feedback Systems

       a. To be useful for development, performance appraisals must provide specific
          information to employees about their performance problems and ways they
          can improve their performance.

       b. Upward feedback involves subordinates‟ evaluation of managers‟ behaviors
          or skills.

       c. The 360-degree feedback process is a case where managers‟ behaviors and
          skills are evaluated by subordinates, peers, customers, their bosses, and

            (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.

            (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.

C. Job Experiences—Most employee development occurs through job experiences, and
   development is most likely to occur when employees must stretch their skills (Text
   Table 9.8, Figure 9.2, and TM 9.4).

   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 abilities.

          Competing through Globalization: Successful Penetration of
          World Markets Requires More than Just an Overseas Vacation

The increasing number of international assignment companies has allowed for qualified
employees to work in international locations. Edward Barrell, a Human Resource manager,
had experience with a former job in Moscow. Barrell was sent over by his present
company to set up a HR department. Barrell had to incorporate the culture of Russia with
the company‟s culture. At GE, managers were put through a program to develop
managerial global skills. The program involved giving managers a challenging assignment
in an international location. The managers visited the international locations and afterwards
shared results with each other. Several ideas that the teams learned from the exercise were

         1. Enlarging the Current Job—Job enlargement refers to adding challenges and new
            responsibilities to employees‟ current jobs.

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

         2. Job Rotation

             a. Job rotation involves providing employees with 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.

         3. Transfers, Promotions, and Downward Moves

             a. A transfer is usually a lateral move in which an employee is given 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 them.

                 (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.

       d. A downward move occurs when an employee is given a reduced level of
          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.

       e. To ensure that employees accept transfers, promotions, and downward moves
          as development opportunities, companies can provide such things as an
          orientation program for the new location and job or employee involvement in
          the transfer decision.

   4. Temporary Assignments with Other Organizations

       a. Many companies use temporary assignments in nonprofit organizations as a
          method to help employees apply their current skills to new problems and to
          develop new skills.

       b. 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.

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

D. Interpersonal Relationships

   1. Mentoring

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

           Example: NCR, headquartered in Dayton, Ohio, has sponsored mentoring for
           five years and uses it as an early identification program for high-potential
           employees who are selected by their mentors to be advised. Mentoring at
           NCR is viewed as an educational tool to train and track “green” talent (new
           college graduates).

       b. 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 created.

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

        (3) Characteristics of a successful formal mentoring program include such
            things as voluntary participation and the length of the program being
            specified (Text Table 9.10).

2. Benefits of Mentoring Relationships

   a. Mentors provide career and psychological support to their proteges.

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

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

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 positions.

   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 commit-
        ment 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.

IV.   Career Management and Development Planning Systems

      A. Steps and Responsibilities in the Career Management Systems (Figure 9.3 and TM

         1. Self-Assessment

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

             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 9.4).

         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

                    Competing through High-Performance Work Systems:
                     Using the Intranet to Drive Development Planning

     Ford Motor Company has implemented the “Personal Development Roadmap” (PDR) that
     allows employees to take control of their personal and professional development.
     Annually, employees are asked to fill out an online self-assessment profile. The PDR
     compares the results to expected results and recommends activities to enhance employee
     development. The PDR recommends education inside of Ford, and outside of Ford, that
     will be beneficial to the organization. Although it is too early to evaluate the success of the
     PDR at Ford, it was developed to continually improve employees knowledge, skills, and
     abilities, to align their behavior with company goals and strategies.

V.        Special Issues in Employee Development

          A. Melting the Glass Ceiling

              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.   Many companies are using mentoring programs to ensure that women and
                   minorities gain the skills and visibility needed to move into managerial

                   Example: Mattel has been one of the companies shattering the glass ceiling.
                   Women have ascended into senior management positions with significant
                   responsibilities, including Jill Barad, CEO of Mattel Toys.

                                 A related reading from Dushkin‟s
                              Annual Editions: Human Resources 99/00:

                     “Prepared for the Future: Training Women for Corporate
                               Leadership” by Michelle Martinez

                     Competing by Meeting Stakeholders’ Needs:
                        Selling Women on a Career at P&G

  At P&G, a study of employee turnover found that two of every three high-performance
  employees who left the company were women and until recently, there were no women on
  the executive committee. P&G found that the management styles of the women conflicted
  with the command-control style of P&G. P&G developed a mentor program that had junior
  women mentor senior men on issues affecting women. The new programs helped male
  managers realize and understand gender problems.

      B. Succession Planning

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

          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 company.

      C. Development for Managers with Dysfunctional Behaviors

          1.    Some development programs are designed to develop managers with
                dysfunctional behaviors such as insensitivity to others, inability to be a team
                player, arrogance, and poor conflict-management skills.

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

          3.    One program designed specifically to develop managers with dysfunctional
                behavior is the Individual Coaching for Effectiveness (ICE) program. The ICE
                program includes diagnosis, coaching, and support activities. Clinical,
                counseling, or industrial/organizational psychologists are involved in all phases
                of the ICE program.

Chapter Vocabulary
  Protean Career
  Psychological Contract

  Psychological Success
  Formal Education Programs
  Myers-Briggs Type Indicator (MBTI)
  The Assessment Center
  Leaderless Group Discussion
  Role Plays
  Performance Appraisal
  Upward Feedback
  360-degree feedback Systems
  Job Experience
  Job Enlargement
  Job Rotation
  Downward Move
  Career Support
  Psychological Support
  Group Mentoring Programs
  Glass Ceiling
  Succession Planning
  ICE program

Discussion Questions
 1. How could assessment 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
3. Why do companies develop formal mentoring programs?
    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.
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 her?
    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.
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.
    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
     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.

Web Exercise
Students are asked to review the Mentoring Institution Inc. web page and answer question
pertaining to the different types of mentoring programs.


End-of-Chapter Case
Wanted: A Few Good CEOs
Summary With the blunt of CEOs from the postwar years beginning to retire, companies are
desperately searching for qualified individuals to fill the role. Jack Welch, CEO and Chairman of
GE, are retiring in the near future and says finding the right person to succeed him is a top
priority. Many CEOs in other companies are stretching their retirement dates because there is not
enough qualified individuals to fill the positions available.

  1. What recommendations would you have for identifying and preparing managers for CEO
     positions? Make sure you indicate the development the approach(es) you would use as well
     as the succession planning process.
      A recommendation for manager preparing for CEO positions would be to engage in fast-
      track development programs that involve education, executive monitoring and coaching,
      and rotation through job assignments. They should receive assignments such as making
      presentations and serving on committees and task forces. Some objectives of the fast-track
      program include developing future managers for midmanager to executive positions,
      providing companies with a competitive advantage in attracting and recruiting talented
      employees, and helping retain managerial talent within the company.
  2. What are the advantages and disadvantages of publicly identifying a group of managers as
     high-potential managers?
      The advantages of publicly identifying a group of managers include selecting employees
      with elite academic degrees or who have been outstanding performers are identified. Also,
      employees receive development experiences; those who will succeed will continue to
      demonstrate good performance. Third, these employees have been seen by top
      management as fitting into the company‟s culture and having the personality characteristics
      needed to successfully represent the company.
      Some disadvantages include that the numbers are reduced over time of the high-potential
      employees because of turnover, poor performance, or a personal choice not to strive for a
      higher-level position.
  3. What actions should companies take to ensure that women and minority managers have
     access to development opportunities needed to reach upper level of management?
      Companies should make sure that they equally include these individuals in every step of
      the company‟s operations. Also, they should evaluate all of the potential managers at the
      same level and with the same requirements. They should allow workshops and
      development programs for all individuals as well. Mentoring and coaching programs can
      ensure inclusion of minority managers.

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 decision.
   (Raymond Noe, Michigan State University)

   “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

   “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
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.
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


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