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Career Planning & Management

Instructor: Shahid Khan

Week - 2
1st March, 2012

APCOMS, Rawalpindi

•Human Resource Management
Definition
“HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is the way of managing people at work, so that they give their best to the organization” — Invancevich and Glueck

•Career Planning & Management
Employee: Old vs. New

I will work hard for and act with loyalty towards my employer. In return I expect to be retained as an employee provided I do not act against the interests of the organization. I also expect to be given opportunities for development and promotion should circumstances make this possible.

I will bring to my work effort and creativity. In return I expect a salary that is appropriate to my contribution and market worth. While our relationship may be short term, I will remain for as long as I receive the developmental opportunities I need to build my career.

. Limitations Organizational careers: the rumors of their death have been premature New psychological contracts 2. Process. Advantages. 4. 3. Need.•Agenda 1. Career??? Career Planning & Management What.

•Career What? • • • • • Psychologists define career as. roles.related positions. Hall and Lawrence from the USA regard career as ‘an evolving sequence of a person’s work experience over time’. . activities and experiences encountered by a person’. However. a balanced definition can be: ‘a process of development by [an] employee along a path of experience and roles in one or more organizations’. careers are. ‘The pattern of work-related experience that span the course of a person’s life’. to a certain extent. Arthur. Therefore. Arnold defines career as ‘the sequence of employment. a ‘property’ of organizations. and managed by them as part of HRM.

.•Career What? • The basic roles of HRM are to obtain and retain employees. of retaining (and sometimes releasing an excess of) employees. and career systems deal with the latter role.

No honest poet can ever feel quite sure of the permanent value of what he has written: He may have wasted his time and messed up his life for nothing. Arnold Schwarzenegger Poetry is not a career.•Career Planning & Management What People Think of Careers • I didn't leave bodybuilding until I felt that I had gone as far as I could go. I feel that the highest honor comes from serving people and your country. When I feel the time is right. T. S. I still don't get young men standing up and saying. Eliot But the problem is that when I go around and speak on campuses. I will then consider public service. but a mug's game. 'How can I combine career and family?' Gertrude Stein • • . It will be the same with my film career.

. Unfortunately. or Ph. but you can’t curl up with it on a cold night. stupid. stupid. monotonous work. they don’t have a J.A.O. chances are you’ll end up boring.D. – Bob Black Don’t confuse having a career with having a life. – Fats Domino By working faithfully eight hours a day you may eventually get to be a boss and work twelve hours a day.•Career Planning & Management What People Think of Careers • A career is wonderful. – Marilyn Monroe • A lot of fellows nowadays have a B. – Robert Frost You are what you do.. and monotonous. – Hillary Clinton • • • . If you do boring.B. M.D.

Need. 3. Process. 4. . Advantages. Limitations Organizational careers: the rumors of their death have been premature New psychological contracts 2.•Agenda 1. Career??? Career Planning & Management What.

•Career Planning & Management What? • • • • Career planning is the process by which one selects career goals and the path to these goals. Career planning and management is necessary to each and every employee in an organization. . Career management is the process of designing and implementing goals. plans and strategies to enable the organization to satisfy employee needs while allowing individuals to achieve their career goals. Career management is those personal improvements one undertakes to achieve a personal career plan.

training.•Career Planning & Management What? • • Career Management consists of personal improvements undertaken by the individual employee. . The most important aspect of career planning & management is that every employee must accept his/her responsibility for development. development and educational programs provided by the organization and various institutes.

To improve motivation and morale. To increase the utilization of managerial reserves within an organization. To correct employee placement. To provide suitable promotional opportunities. To reduce employee dissatisfaction and turnover. . To enable the employees to develop and take them to meet the future challenges.•Career Planning & Management Need • • • • • • • To attract competent persons and to retain them in the organization.

experience and training received etc. Preparing and implementing action plan including acquiring resources for achieving goals. 3. abilities. 4. knowledge. and in terms of qualifications. 2. Formulating career strategy covering areas of change and adjustment. Establishing realistic goals both short-term and long-term. aptitudes etc.•Career Planning & Management Process 1. Analysis of career opportunities both within and outside the organization. Relating specific jobs to different career opportunities.. 5. 7. Analysis of career demands on the incumbent in terms of skills. . aptitude etc. knowledge. 6. Analysis of individual skills. abilities.

boost up their morale and also result in increased job satisfaction. This knowledge helps him select the career that is suitable to his life styles. scope for self-development etc.•Career Planning & Management Advantages • For Individuals: • The process of career planning helps the individual to have the knowledge of various career opportunities. Increased job satisfaction enhances employee commitment and creates a sense of belongingness and loyalty to the organization. • • • • . Internal promotions. preferences. upgradation and transfers motivate the employees. his priorities etc. It helps the organization identify internal employees who can be promoted. family environment.

•Career Planning & Management
Advantages

For Individuals:

Employee will await his turn of promotion rather than changing to another organization. This will lower employee turnover. It improves employee’s performance on the job by taping their potential abilities and further employee turnover. It satisfies employee esteem needs.

For Organizations:

A long-term focus of career planning and development will increase the effectiveness of human resource management.

Efficient career planning and development ensures the availability of human resources with required skill, knowledge and talent.

•Career Planning & Management
Advantages

For Organizations:

The efficient policies and practices improve the organization’s ability to attract and retain highly skilled and talent employees. The proper career planning ensures that the women and people belong to backward communities get opportunities for growth and development.

The career plan continuously tries to satisfy the employee expectations and as such minimizes employee frustration.
By attracting and retaining the people from different cultures, enhances cultural diversity.

Protecting employees’ interest results in promoting organizational goodwill.

•Career Planning & Management
Limitations

Dual Career Families: With the increase in career orientation among women, number of female employees in on increase. With this, the dual career families have also been on increase. Consequently, one of those family members might face the problem of transfer. This has become a complicated problem to organizations. Consequently other employees may be at disadvantage. Low Ceiling Careers: Some careers do not have scope for much advancement. Employees cannot get promotions despite their career plans and development in such jobs.

Solution for such problem is career shift.•Career Planning & Management Limitations • • Declining Career Opportunities: Career opportunities for certain categories reach the declining stage due to the influence of the technological or economic factors. . technological changes and business environmental factors force the business firms to restructure the organizations by de-layering and downsizing. and degrading some other employees. Downsizing/De-layering and Careers: Business process reengineering. Downsizing activities result in fixing some employees.

Need. Advantages. .•Agenda 1. 4. Limitations Organizational careers: the rumors of their death have been premature New psychological contracts 2. 3. Career??? Career Planning & Management What. Process.

•Career Planning & Management Organizational Careers • • There is a change. does not make sense. Inner satisfaction. life balance. career paths have become blurred since the 1980s and the 1990s. just for the sake of being higher in the hierarchy. autonomy and freedom have entered the formula. With the flattening of organizations and the elimination of entire managerial layers. (Edward Abbey) Climbing up the organizational ladder. and a transition. Realization of this notion has enabled significant changes to the meaning of career advancement. • • • • . a transformation. “Growth for the sake of growth is the ideology of the cancer cell”. Mounting the hierarchy is no longer the sole criterion.

• • . and the privatization of many services are translated into limited options for longterm career plans at organizational level. The transformation of careers in general. combined with business globalization and competitiveness. demographic and cultural forces. One aspect is the short horizons of career planning.•Career Planning & Management Organizational Careers • These changes mean that a different approach to the management of careers should be sought. one that would cope with and fit the new reality of work and working life. is due to large economic. and of psychological contracts specifically. ‘Just-in-time’ and business process re-engineering (mostly in manufacturing).

4. Need. 3. Advantages. Career??? Career Planning & Management What. .•Agenda 1. Process. Limitations Organizational Careers: The Rumors of their Death have been Premature New psychological contracts 2.

The evolution of the new psychological contracts led to a situation where there are no long-term contracts of loyalty and no mutual commitment. not present in the small print of the employment contract. legal employment contracts in their context and expected impact. motivational levels and satisfaction are associated with each other. of what *the+ employer gives. As a result the downsizing process has had very negative outcomes. the psychological contract is ‘The unspoken promise. • Such a contract is fundamentally different from the formal. • • Organizational commitment was commonly accepted as the desired norm. Organizational commitment. for both organizations and employees. and a high level of these will lead to improved performance and a tendency to remain in an org.•Career Planning & Management New Psychological Contracts – Evolution of Employment Relationship • In lay terms. • . and what employees give in return’.

new ideas need to be introduced to compensate for the loss of balance in the relationship equation. the relevance of the construct of organizational commitment has declined. • • • . We can now find ideas based on Employability. Others argue for the need to maintain organizational commitment even in such times for the benefits it generates to organizations. with the organization being expected to invest in the training and development of its employees. and the employee being expected to exert effort and be flexible. since mutual commitment has diminished or ceased to exist and the trust-based relationship has deteriorated in the industrial world. For this purpose.•Career Planning & Management New Psychological Contracts – Evolution of Employment Relationship • However.

employees will be able to find either good jobs if the company has no further need for their services. Now. and the company will be released from a lifelong obligation to employees. and is not necessarily the one employees would prefer. nor the one that organizations would easily adopt. This means a new deal. Employees do not always welcome such a transformation. It is a developmental process of progression. no more mutual loyalty.•Career Planning & Management New Psychological Contracts – Evolution of Employment Relationship • Through the concept of employability. a career is more than a single job. • • • . The individual and the organization share duties and responsibilities. It means no more lifetime employment (or a promise of such). a single position or a single role. which is different from that of mutual commitment. both are equal partners in the game.

•Career Planning & Management New Psychological Contracts – Evolution of Employment Relationship • The typical traditional deal was: employees offer loyalty. To a certain extent employees can easily understand and accept this type of relationship. reward for performance and above all. assume added responsibility. whereas employers offer high pay. employers offer security of employment. Under the new deal. Both sides based the relationship on ‘trust’. commitment. employees offer long hours. • • . The archetype was a full-time career with a single employer. conformity. the fact of having a job. career prospects. provide broader skills and tolerate change and ambiguity. training and development and care in trouble. When there is readiness for changes and adjusted expectations there will not be a process of disillusionment and a feeling of betrayal on the part of employees.

Vertical: Breaking down vertical barriers is crucial since hierarchical bureaucracies tend to restrict the flow of information. suggest that breaking down barriers is one of the ways in which organizations can struggle to survive and flourish. • 1. According to Ashkenas et al. are reluctant to respond to changing environments and are inflexible in both their thinking and their actions. Horizontal: Breaking down horizontal barriers means.. there are FOUR types of barriers to overcome. 2. . according to Ashkenas et al.•Career Planning & Management New Psychological Contracts – Boundaryless Orgs & Careers • • Boundaryless Organizations: Ashkenas et al. eliminating the traditional barriers between the conventional functions and operations of organizations.

but working with joint ventures. .•Career Planning & Management New Psychological Contracts – Boundaryless Orgs & Careers 3. etc. breaking down geographical boundaries is reflected at both the national and the international levels or in the form of ‘virtual organizations’. suppliers. on organizational career systems. Boundaryless Careers: The boundaryless organization is the site of the boundaryless career. blurs the boundaries. Geographical: Lastly. • • • These four ‘deviations’ from the traditional type of organization have a direct impact on individuals and. government agencies. customers. 4. in particular. Environmental: Breaking down the barriers between the organization and the environment or other organizations is complex.

from home to the other side of the world. High levels of interactivity with the environment. • . but a widespread evolution. the new deal does not represent a full revolution.•Career Planning & Management New Psychological Contracts – Boundaryless Orgs & Careers • The breaking down of hierarchical bureaucracies demolishes the old-style system of a career ladder. strict rules for promotion and upward movement. enable new practices (e. all in all. secondments). There is exaggeration in the new deal and is criticized also.g. the global realm offers a wide range of opportunities to grow and develop anywhere. But. • The elimination of the barriers between organizational functions opens up new career paths that cross boundary lines within organizations. • • Finally. including competitors.

company specific.Boundaryless Orgs & Careers Aspect Environmental characteristic Traditional deal Stability Transformed deal Dynamism Career choice made Main career responsibility lies with: Once. at different age stages Individual Career horizon (workplace) Career horizon (time) Employer expects/Employee gives: Single organization Long Loyalty and commitment Several organizations Short Long-time working hours Employer gives/Employee expects: Job security Investment in employability Progress criteria Advancement according to tenure Advancement according to results and knowledge Success means Winning the tournament i. sometimes ad hoc . at early age in career Organization Series. generalist .e.•Career Planning & Management New Psychological Contracts . Inner feeling of achievement Training On-the-job. progress on the hierarchy ladder Formal programs.

Process. Career??? Career Planning & Management What.•Agenda 1. . Advantages. Need. 4. Limitations Organizational Careers: The Rumors of their Death have been Premature New psychological contracts 2. 3.

Thank You Questions??? .

Rawalpindi .Career Planning & Management Instructor: Shahid Khan Week – 3 8th March. 2012 APCOMS.

political and economic environment) 2. Interactive nature in the sense of relationship between the organization and the individual. • . They outline four properties they feel an established career model should possess: 1. Conceptualization (i. Cyclical and processual nature of the model 3. but also the business. Subjectivity (rather than normativity) for the meaning of career success 4.•Career Planning & Management Balancing Individual & Organizational Needs Herriot and Pemberton offer the model presented in next slide. taking into account not merely the organization.e.

•Career Planning & Management Balancing Individual & Organizational Careers .

Career Planning & Management Shahid Khan Week – 4 20th December. Rawalpindi . 2011 APCOMS.

As a result. began from that time. the traditional emphasis on reward outcomes was progressively rejected. The general model of performance appraisal. naturally. could also have a major influence. as it is known today.•Managing the Performances Concept • In the absence of a carefully structured system of appraisal. It was found that other issues. ethical and legal problems in the workplace. • . including subordinates. In the 1950s in the United States. the potential usefulness of appraisal as tool for motivation and development was gradually recognized. such as morale and self-esteem. people will tend to judge the work performance of others. The human inclination to judge can create serious motivational. Early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. informally and arbitrarily.

•Managing the Performances Concept • • • After employee selection. performance appraisal is arguably the most important management tool a firm employer has at his disposal. in the traditional performance appraisal. the focus is on blame rather than on helping the employee assume responsibility for improvement. when properly carried out. unfortunately. can help to fine tune and reward the performance of present employees. . By so doing. Strengths of the negotiated performance appraisal are its ability to promote candid two-way communication between the supervisor and the person being appraised and to help the latter take more responsibility for improving performance. In contrast. The performance appraisal. the supervisor acts more as a judge of employee performance than as a coach.

Performance management and improvement can be thought of as a cycle: 1. 3. where Actual is less than Desired.•Managing the Performances Performance • • • • • Actual Results vs. Desired results. could constitute the performance improvement zone. Any discrepancy. 2. Performance planning where goals and objectives are established. Performance coaching where a manager intervenes to give feedback and adjust performance. Performance Appraisal .

The appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases. demotion. By the same token. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay). structured system that compares employee performance to established standards. dismissal or decreases in pay. Assessment of job performance is shared with employees being appraised through one of several primary methods of performance appraisals”. bonuses.•Managing the Performances Performance Appraisal • “Performance appraisal is a formal. or in extreme cases. Successful appraisal methods have clearly defined and explicitly communicated standards or expectations of employee performance on the job. • • . appraisal results are used to identify the poorer performers who may require some form of counseling. and promotions.

selection. ..g. culture. training.•Managing the Performances Performance Appraisal Why? • (1) validate and refine organizational actions (e. and • (2) provide feedback to employees with an eye on improving future performance. policies etc).

•Managing the Performances Performance Appraisal .

“ "If you give him a penny for his thoughts. you'd get change.“ "Some drink from the fountain of knowledge.•Managing the Performances Performance Appraisal Results "He's got two brains cells.“ CAREFUL THINKER: Won’t take decision LOYAL: Can’t get another job USES LOGIC ON DIFFICULT JOBS: Get someone else to do it A KEEN ANALYST: Thoroughly confused EXCEPTIONALLY GOOD JUDGEMENT: Lucky CAREER MINDED: Back stabber JOB IS HIS FIRST PRIORITY: Too ugly to get a date . he only gargled. one is lost and the other is out looking for it.

giving an appraisal result that has the direct effect of negating a promotion is another. They work together on a daily basis and may. Suggesting that a subordinate needs to brush up on certain work skills is one thing. and are typically in a direct subordinate-supervisor relationship. at times. soured relationships and productivity declines. Appraisers often know their appraisees well. • Many appraisers feel uncomfortable with the combined role of judge and executioner. The result can be resentment and serious morale damage. mix socially. .•Managing the Performances Controversy Controversy • Linking performance appraisals with pay raises and rewards. leading to workplace disruption.

It has also been claimed that appraises themselves are inclined to believe that appraisal results should be linked directly to reward outcomes—and are suspicious and disappointed when told this is not. decent and consistent reward outcomes.•Managing the Performances Controversy Controversy • • • There is a critical need for remunerative justice in organizations. Performance Appraisal and Organizational Development . The advocates of linking PA to reward say that organizations must have a process by which rewards—which are not an unlimited resource—may be openly and fairly distributed to those most deserving on the basis of effort & results. Performance appraisal—whatever its practical flaws—is the only process available to help achieve fair.

Objectives and Performance Standards (also MBO) Means vs.•Managing the Performances Controversy Controversy • • • • Performance reviews can be regarded as learning events. To keep development separate from performance and salary discussions. Ends Team’s Performance Reward .g. in which individuals can be encouraged to think about how and in which ways they want to develop. anniversary of joining an organization. not least their managers) to develop themselves. development reviews may be held at other times e.. This can lead to the drawing up of a Personal Development Plan (PDP) setting out the actions they propose to take (with the help of others.

•Managing the Performances Performance Appraisal • • • • • Measurement: Managers performance may be measured with respect to meeting objectives. But of production staff. peers. immediate subordinate. Performance vs. self)? Would you study differently or exert a different level of effort for a college course graded on a pass-fail basis than for one in which letter grades from A to F are used? 360 Degree Feedback . Potential or Competence Who should appraise (immediate boss. it can be measured with respect to attaining output.

•Managing the Performances Performance Appraisal – 360 Degree Feedback .

•Managing the Performances Performance Appraisal Confidentiality??? .

. 5. and he always *finishes given assignments on time. Kindly read only the odd numbered lines (1. sometimes skipping coffee *breaks. Bob works independently. I duly recommend that Bob be *promoted to executive management. the type which cannot be *dispensed with. Bob never *thinks twice about assisting fellow employees.) for my true assessment of him.•Managing the Performances Performance Appraisal Results • • The Boss asked for a letter describing Bob Smith for his performance appraisal: *Bob Smith. and a proposal will be *executed as soon as possible. etc. . Often Bob takes extended *measures to complete his work. can always be found *hard at work in his cubicle. without *wasting company time talking to colleagues. A memo was soon sent following the letter: That idiot was reading over my shoulder while I wrote the report sent to you earlier today.. my assistant programmer. Bob is a dedicated individual who has absolutely no *vanity in spite of his high accomplishments and profound *knowledge in his field. I firmly believe that Bob can be *classed as a high-caliber employee. 3. Consequently.

•Managing the Performances Performance Appraisal • • • • • • • • • Process or Steps: To Improve Performance Appraisal: Focus on behavior rather than traits Keep a diary of incidents Focus more on future than past???? Link trainings to Performance Appraisal Use multiple evaluators (for subjectivity) Separate compensation conversation from PA Train evaluators .

2011 APCOMS.Career Planning & Management Shahid Khan Week – 5 29th December. Rawalpindi .

Input for Succession Planning 3.What? Why? Competence.•Agenda Week 3 1. . Competency Mapping . competency 2. Input for Succession Planning Compensation Strategy & Structure – What? Why? How? Philip Model. Potential Appraisal – What? Why? How? Philip Model.

potential characteristics. . Competencies exist at different levels of personality. showing flexibility. Skills: An individual’s ability to do something well (e. Accounting. HR etc). The various levels are: • Knowledge: Information that an individual has in a particular area (e-g.•Managing the Performances Competency • Competency is an underlying skill. Behavior: Action of a person in a given situation. Motives: A fundamental and often unconscious driver of thoughts and behavior for example concern for excellence. the ability to make effective • presentations. or • • • • to negotiate successfully). or motive demonstrates by various observable behaviors that contribute to outstanding performance in a job. Traits: A typical way of behaving such as taking initiatives.g..

e.. training.. compensate those who exhibit behaviors aligned against the model. PA. recruitment) of the organization. hire those who “have it”. thus drive your organization to achieve a higher level of success. Knowledge and skills (essential competencies) are easy to develop so training is cost effective. and you can create a model to codify that. you can promote those who “have it”. . train those who don’t have it on how to “have it”.. • Competency Mapping is a process of identifying key competencies (through job experts or past successful employees in similar position) for an organization and/or a job and incorporating those competencies throughout the various processes (i. job evaluation. • • Competency-based HR If it is possible to define the behaviors that create exemplary employees.•Managing the Performances Competency Mapping • Personal characteristics (differentiating competencies) are hard to develop and it is more cost effective to select people having the desired personality traits.

Don’t focus too much on weaknesses but on possibilities and potential. you’ve taken the person out of the exact environment in which he or she succeeds and likes—possibly reducing his or her success in the new position. Tap into what he or she discerns as his or her strengths by asking what he or she enjoys most. Also. and in what role he or she believes she or he is of most value to the organization. • . you cannot fully uncover a person’s strengths without his or her input.•Managing the Performances Maximizing Potential and how to unearth employee strengths • • People get hired for what they know and are fired for how they behave. Ask the employee what he/she likes to do: There’s a funny equation applied to many promotions: People who excel at a specific job are promoted to management level. and why. Often. • Make time for positive recognition with examples to make them realize what is valued more and to convert “can’t do” to “can do”.

yet more of his or her strengths would blossom in another role. This test-drive might spark new ideas about increased value from the employee. and allow you to see where a role-shift may make sense for the company. .•Managing the Performances Maximizing Potential and how to unearth employee strengths • • Identify ways to apply existing strengths in new ways: Thomas Edison saw sewing-thread as a light bulb filament. These may be areas where the employee has not had a real opportunity to demonstrate the potential ability. Allow the employee to test-drive a new role: May be you’ re seeing the employee in his or her specific role.

A large part of the attributes needed to perform excellently in a future job which people call potential. Unleashing the iceberg may be the difficult. what you see above the surface (Performance) is only a small part. but it is also critical for corporate survival. . People are like icebergs. is not immediately visible. It is hidden below the surface”.•Managing the Performances Maximizing Potential and how to unearth employee strengths • • Potential Appraisal: Measuring an employees potential in order to gauge today what he could achieve tomorrow may be the stiffest challenges ever posed to the science of performance appraisal. Not only does potential appraisal help in catching high fliers but snapshot of breeding CEOs for the corporate.

Operational effectiveness: Result orientation. Professional. Risk-taking. Verbal behavior 3.•Managing the Performances Maximizing Potential and how to unearth employee strengths • • • • • Potential Appraisal: The potential appraisal system normally uses a five point grading scale—excellent. ambition. Conceptual effectiveness: Vision. Individual effectiveness. Sense of reality 2. Personal influences. Achievement motivation: Drive. Interpersonal effectiveness: Network directedness. Stability . Control 4. Negotiating power. good/adequate. Innovativeness. Entrepreneurial orientation. weak and insufficient— to evaluate employees on the four broad attributes of: 1. Business orientation. very good.

•Managing the Performances Maximizing Potential and how to unearth employee strengths Fig: Philip Model (Matrix Model) .

or job profile changes. in 8 out of 10 cases. • High potential–low performance: These are the problem children. they groom to become star performers. if location. If those efforts fail. boss. it works towards a planned separation. they are reclassified as question marks and the separation process is initiated. These are the race horses. High skilled but limited capability to grow beyond their current job–profile they constitute 70 to 75% of the companies employees. To tap their potential such employees are given a new scenario to work in and are closely monitored. .•Managing the Performances Maximizing Potential and how to unearth employee strengths • Low potential-low performance: It defines these employees as question marks. • High potential–high performance: These are the star performers. • Low potential–high performance: Defined as the solid citizens’. Or they will leave. However. They are to be kept engaged with complex assignments all the time and groomed to take up the top positions in the organization. The company asks such employees to improve their performance levels. The company constantly recognizes their limitations and look after their needs. if the performance levels still remain low.

.•Managing the Performances Maximizing Potential and how to unearth employee strengths • Potential appraisal along with performance appraisal provide a reasonable input to SUCCESSION PLANNING.

Rawalpindi . 2011 APCOMS.Career Planning & Management Shahid Khan Week – 6 29th December.

income and other monetary rewards). .e. and thus the definition of internal career success depends on the inner feelings and values of the person.g. social status (e. An internal career is subjective. Success in an external career is assessed mainly in terms of hierarchy level and pace of progress on such a ladder. but it still depends on the particular observer’s viewpoint. External Careers: how other people and organizations perceive a person’s career.•Individual Career Models Internal External & Organizational Careers • • • Internal Careers: a person’s self-perception about his or her own career. professional qualifications and financial success (i. Evaluating career success by means of external evaluation is more objective than internal career measurement. occupational status).

We now look at individual career choice models. People will plan and manage their careers. such comparisons are less clear or may even be meaningless for dynamic careers.g. Here comparisons might be Impractical or irrelevant. army v. . Career progress or advancement can be quite objective and measurable within a single organization or between organizations with equivalent promotion scales (e. in terms of the positions and the roles they fill during their working life. (For example is the CEO of an organization employing 1000 people ‘higher’ than a Vice President who manages 3000 employees in a company of 10 000?) • While organizations retain career systems through which they plan and manage people’s careers. navy). not always according to an organization’s plans and schemes.•Individual Career Models Internal External & Organizational Careers • Organizational Career: is a path people move along. as moves involve multiple transitions. It may be most appropriate to consider careers as being under ‘mutual ownership’ – that of people and organizations. it is people who have careers. However.

•Individual Career Models Holland’s RAISCE Model • Hand outs .

.•Individual Career Models Protean Career • • From Greek “Proteus” god (changes appearance at his own will) Individual is the master of his career.

(Logan Pearsall Smith) Criteria of career success is different for different people but mostly: The criteria for evaluating success can be. to enjoy it.•Individual Career Models Career Success • There are two tragedies in life. This sobering process is most apparent in jobs such as nursing (with high proportion of nurses leaving the profession). Only the wisest of mankind achieve the second. first. • • how far doing so helped to fulfill your needs. . One is to lose your heart’s desire. and. reaching what you aimed for. This takes us back to Shaw again: obtaining entrance to the profession. and second. (G. after that. The other one is to gain it. Shaw) • There are two things to aim at in this life. first to get what you want.B. organization or specific job you have always dreamed of does not necessarily mean that you will be happy or even satisfied with your career once you have achieved it.

but the first one has exceeded his target whereas his friend has failed to achieve his. In the end he is promoted to Colonel. In the end he manages to reach the rank of Major. Who has the greater success – the one who reached the higher rank or the one who surpassed his goal? Should success be measured externally or internally? . His friend set himself the target to become a LieutenantGeneral.•Individual Career Models Career Success • • • • Think of two young men opting for a career in the army. One has set himself the goal of becoming a Captain. The rank of the first is lower than that of the second.

(b) Getting secure: Having a solid position within the organization.•Individual Career Models Derr’s Framework of Career Success • • Traditional Measures: formal education. (d) Getting free: Being motivated by a need for autonomy and the ability to create one’s own work environment. . (e) Getting balanced: Attaching equal or greater value to non-work interests. (c) Getting high: Being inspired by the nature and content of the work performed. lifelong employment with job security and hierarchical progress. Derr’s Measures: (a) Getting ahead: Motivation derives from the need to advance both in professional standing and up the organizational ladder.

•Individual Career Models Derr’s Framework of Career Success .

•Individual Career Models Desert Generation • Hand Outs .

Career Planning & Management Shahid Khan Week – 6 29th December. Rawalpindi . 2011 APCOMS.

leave some money for savings (perhaps for retirement) and leisure. keep up with inflation.•Compensation Strategy & Structure Compensation • • • • • Compensation is the outcome (rewards) employees receive in exchange for their work Wage vs. Benefits The compensation package offered a firm’s employees is important not only because it costs money. An expectation that wages cover basic living expenses. Salary: (non-exempt vs. Compensation packages with good pay and benefits can help attract and retain the best employees. . but because it’s likely to be the primary reason the employees work for the firm. and are fair. exempt) Salary vs. increase over time.

and loyalty.•Compensation Strategy & Structure Objectives • • • • • • • Attract suitable staff. responsibility. Comply with legal requirements. Reward performance. Ensure that rewards and salary costs adjust to changes in market rates or organizational change. . Retain qualified personnel. Adjust pay structures to reflect inflationary effects. Develop reward structures that are equitable with consistent and fair pay relationships between differently valued jobs.

Cost-effective: The pay should not be excessive than what organization can afford. Secure: Pay should be enough to help employees feel secure. 7. Balanced: Pay. Compensation policy depends on certain criteria as below: Adequate: Minimal Governmental.•Compensation Strategy & Structure Compensation Policy • 1. abilities. in the line with his or her effort. 6. 4. 3. Equitable: Each person should be paid fairly. benefits & other rewards should provide a reasonable total rewards package. union and managerial levels should be met. 5. Incentive providing: Pay should motivate effective and productive work. Acceptable to the employee: . 2.

acquisition of skills and knowledge. Foreign Demand. the compensation of employees is on the basis of group performances recognize the importance of employee affiliations with groups. . In collectivistic society (Japan).•Compensation Strategy & Structure Factors affecting Compensation Package • External Factors: Industry. Long Term Goals. Labor Market • Internal Factors: Financial Conditions. Organizational Product Life Cycle. HRM Application. Competitors. Organizational Culture • Other Factors: National Culture Individualism/Collectivism: The individualistic cultures (US) adopt compensation strategies that reward individual performance.

•Compensation Strategy & Structure Factors affecting Compensation Package Other Factors: National Culture • Uncertainty Avoidance: methods by which a particular society deals with risk and the instability of their members. welcoming random events. On the other hand. facing challenges and seeking risks characterize by the low uncertainty avoidance. employers probably use incentive pay programs. value of stability and routines and the risk aversion are the hallmarks of high uncertainty avoidance (Italy. • Fear of random events. Greece etc. . When the low uncertainty avoidance (Singapore and Denmark). • Where the uncertainty avoidance is high. employers normally emphasize fixed pay than variable pay.).

Product Life Cycle: Growth. Decline • . While that of feminine culture will focus on medical. Maturity.•Compensation Strategy & Structure Factors affecting Compensation Package Other Factors: National Culture • Power Distance: The extent to which people accept a hierarchical system or power structure in the companies (status consciousness) • • Masculinity-Femininity: It refers to whether masculine or feminine value is dominant in the society. The compensation policies of the company of masculine culture are likely to focus mostly on material benefits. “Feminity” encourages caring and nurturing behavior (Finland and Norway). “Masculinity” favors material possession (Germany). children care etc as well.

Incentives are typically given in addition to the base wage. or plant-wide performance. They can be paid on the basis of individual. Individual incentive plans encourage competition among employees. . group. group or plant-wide incentive plans encourage cooperation and direct the efforts of all employees toward achieving overall company performance.•Compensation Strategy & Structure Pay Plans • • • Incentive Compensation Plan: Incentive compensation pays proportionately to employee performance.

Team Based Compensation Plan: Recognizing the importance of close cooperation and mutual development in a work group (eg. As employees gain one skill and then another. companies want to encourage employees to work as a team by offering pay based on the overall effectiveness of the team.•Compensation Strategy & Structure Pay Plans • • • Skill/Knowledge based Compensation Plan: Skill-based pay is a system that pays employees based on the skills they possess or master. . not for the job they hold. self-managed teams). their wage rate goes up until they have mastered all the skills.

resulting in substantially more benefit for highly ranked employee performance.•Compensation Strategy & Structure Pay Plans • • Performance based Compensation Plan: Traditionally. Other incentives and bonuses are calculated based on this new merit pay. pay was considered entitlement that employees deserve in exchange for showing up at work and doing well enough to avoid being fired. While base pay was given to employees regardless of performance. It increases even the base pay—so-called merit increases—to reflect how highly employees are rated on a performance evaluation. incentives and bonuses are extra rewards given in appreciation of their extra efforts. . Pay-for-performance is a new movement away from this entitlement concept.

Besides that other sources of information (surveys.•Compensation Strategy & Structure Pay Structure • • • • The way the organization structures its compensation packages is primarily a matter of organizational philosophy though the market trends play an important role. reports etc. Or the second method is tenure based. The job evaluation methods give us the inputs for developing an organizational over all pay structure. It can be using a single rate structure in which all the employees perform the same work receive the same pay. .) can be utilized as well. that is based on the time for which an individual has been associated with the organization.

or jobs of comparable importance may be grouped into a single wage classification. Job evaluations compare positions in an organization with respect to such factors as effort.•Compensation Strategy & Structure Job Evaluations & Market Considerations (Going Rates) • • • • • The job evaluation is a set of systematic procedures to determine the relative worth of jobs within the organization.” Each job might be given its own rate. skill. a detailed list of compensable factors needs to be articulated. For the job evaluation to be useful. working conditions. . Through job evaluations. or pay grades (based on some grading systems). responsibility. jobs in the firm may be rated according to their relative “importance. and so on.

•Compensation Strategy & Structure
Job Evaluations & Market Considerations (Going Rates)

Job Evaluations are subjective and remain controversial because they have often been found to contain gender biases. In practice, results of job evaluations are often compromised by market considerations. For example, no matter what the firm’s job evaluation may indicate, it is unlikely that the firm will be able to pay wages drastically lower (or higher) than the going rate (due to competition or legal regulations). EXECUTIVES PAY:

•Compensation Strategy & Structure
Pay Equity
• •

• •

Internal Equity, External Equity, Cross Industry Equity Employees will act to restore equity if they perceive an imbalance. In evaluating the fairness of their pay, employees balance the ratio of their inputs (e.g., work effort, skills) and outcomes (e.g., pay, privileges) against those of their coworkers. Workers may thus experience guilt if they feel overcompensated, or they may feel anger if they perceive that they are being under-compensated. The greater the perceived disparity, the greater the tension. In order to relieve this tension, employees may seek balance in a number of ways:

•Compensation Strategy & Structure
Pay Equity

Modify input or output (e.g., if underpaid, a person may reduce his efforts or try to obtain a raise; if overpaid, he/she may increase efforts or work longer hours without additional compensation.

Adjust the notion of what is fair (e.g., if underpaid, a worker may think of himself as being the
recipient of other benefits—such as doing interesting work; if overpaid, an employee may come to believe he deserves it).

Change source of equity comparison (e.g., an employee who has compared himself with a promoted

co-worker may begin to compare himself with another worker)

Attempt to change the input or output of others (e.g., asking others not to work so hard or to work harder).

• •

Withdraw (e.g., through increased absenteeism, mental withdrawal or quitting). Force others to withdraw (e.g., trying to obtain a transfer for a co-worker or force him to quit).

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