Lesson: 21. Career & Succession Planning:

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1 Lesson: 21 Career & Succession Planning: Contents: Definition of Competency Competency Mapping Career Processes and life stages Career Planning Meaning, need, process, prerequisites, advantages and limitations Tips for effective Career Development Succession Planning Case Study Competency Competency is defined as behaviors that describe excellent performance in a particular work context (e.g. job, role or group of jobs, function, or whole organisation). In other words competency means actual application of knowledge. skill and motives/attitude/temperament in carrying out assigned tasks. A manager may be knowledgeable and skilled but he hardly applies his/her knowledge and skill on assigned tasks, the said manager cannot be rated as a competent person. Competency Mapping Competency mapping is a process of identify key competencies for an organisation and/ or a job and incorporate those competencies through the various process (i.e. job evaluation, training, recruitment, career and succession planning) of the organisation.

2 COMPETENCIES - HR - LEADERSHIP CLUSTER Business Oriented Strategy/ Vision Continuous Improvement Leadership Competencies Customer Service Team/ Relationship Building Negotiations COMPETENCIES - HR - MANAGEMENT MANAGING WITH RESPECT CONSULTING EXECUTION IMPLEMENTATI ON MANAGEMENT COMPETENCIE S PLANNING / PRIORITY SETTING COMMUNICATI ANALYTICAL SKILLS / SECISION MANAGING DEVELOPING PEOPLE

3 COMPETENCIES - HR - FUNCTIONAL INFORMATIO NMANAGME STAFFING COMPENSATI CARRER PLANNING & DEVELOPMENT MANAGEMENT COMPETENCIE S BENEFITS EDUCATION & TRANNING LABOUR RELATIONS EMPLOYEE RELATIONS HUMAN RESOURCES COMPETENCY MIX Benchmar k position ( sample ) Specialist Manager Director Mix of Competencies Demonstrated Management Leadership 0 Functional Management Leadership

4 CAREER PLAN NIN G & GROWTH OPPORTUNITIES Ma npower planning is a n important adjunct of business planning or corporate planning. T here cannot be effe ctive ma npower planning if there is ineffective care er planni ng in the organisation. Career planning is an integral part of manpower planning. Career planning is choosing an occupation, keeping in view one's re sources a nd e nvironme ntal conditions. Career planning is not an event or an end in itself, but a proce ss which requires continuous examination of the goal; the strategies to be ch osen ; th e re sou r ces a nd lim itation s o n th e par t of th e in div idu al; th e o rga nisatio n an d th e environment. This i s aim ed at - to i mpr ov e the p erf orm an ce of su bor di nates in th eir pr esent jo b in ter ms of re su lts to be ac com plishe d; to prepare e mpl oyees to accept increa sing responsibility i n their present job; to help subordinates to grow and develop for higher level jobs. Care er planning is basically an individua l's responsibil it y. H owever, in the organisational conte xt, i t is the orga nisation's responsibility to guide and direct the em ploye es to develop a nd utilize their knowledge, a bilities and resources towards organisation devel opm ent a nd e ffectiveness. E mployee's goals have to be appropriately integrated with organisational goals. The organisation must provide career counselling service s. 1. LIFE STAGES & PROCESSES OF CAREER PEOPLE CHANGE CONSTANTLY & THUS VIEW THEIR CAREERS DIFFERENT AT VARIOUS STAGES OF THEIR LIVES.SOME OF THESE CHANGES RESULT FROM AGING PROCESS & OTHERS FROM OPPOPTUNITIES FOR GROWTH & STATUS. BASIC STAGES :- EXPLORATION ESTABLISHING /IDENTITY(10-20) INDIVIDUAL EXPLORES CAREER ALTERNATIVES & BEGINS TO MOVE INTO THE ADULT WORLD 2. GROWTH & GETTING ESTABLISHED(20-40) PERSON CHOOSES AN OCCUPATION.ESTABLISHED CAREER PATH MAINTENANCE & ADJUSTMENT TO SELF(40-50) DECLINE PEOPLE SERIOUSLY QUESTION THE QUALITY OF THEIR LIVES PERSON MAY HAVE LOWER ASPIRATIONS & LESS MOTIVATION RESULTING ADDITIONAL CAREER ADJUSTMENT

5 CAREER PLANNING IMPLIES HELPING THE EMPLOYEES TO PLAN HIS OR HER CAREER IN TERMS OF HIS OR HER CAPABILITIES WITHIN THE CONTEXT OF ORG. NEEDS CAREER PLANNING DOES NOT IMPLY: PREDICTING / ENVISAGING / ENSURING HIGHER POSITIONS FOR EACH EMPLOYEE ORAGANISATIONAL REALITIES GROWTH OR PROGRESSION OPPORTUNITIES AT DIFFERENT PLACE IS DIFFERENT - SOME PLATEAUS - PYRAMIDAL HIERARCHY CAN NOT CREATE MANY POSITIONS UNIFORM RATE OF PROGRESSION NOT POSSIBLE IN ALL DEPTTS / UNITS COMPETENCE INDIVIDUAL KNOWS ORG. DOES NOT KNOW ORG. KNOWS INDIVIDUAL DOES NOT KNOW BOTH DON T KNOW INDIVIDUAL CP PERFORMANCE CAREER PLANNING SYSTEM ORGANISATIONAL CP FORECASTING POTENTIAL ORGANISATIONAL PLANNING MANPOWER PLANNING PREFERENCE PERSONAL ASSESSMENT ORGANISATIONAL ASSESSMENT PERSONAL ASSESSMENT INDIVIDUAL ABILITIES DESIRES POSSIBILITIES MATCHING ORGANISATION PERSONNEL NEEDS CAREER PATHS POSSIBILITIES

6 COMPONENTS OF CAREER PLANNING ORGANISATION DESIGN / HR PLANS CORPORATE PLAN CAREER PATHS / ROLE REQUIREMENT CAREER PLANNING DEVELOPMENT OPPORTUNITIES POTENTIAL / PERFORMANCE APPRAISAL PROMOTION POLICY So, dear students there is every need of learning about the meaning of Career Planning and Development. So let us try to familiarize ourselves with the meaning of Career Planning and Development Meaning: Career planning is the process by which one selects career goals and the path to these goals. Career development is those personal improvements one undertakes to achieve a personal career plan. 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. So, due to this career planning and development is necessary to each and every employee in an organization. The need of career planning and development is felt in each and every organization of today s global world. So, in today s session let us discuss the need for career planning in depth Need for Career Planning: - Career Planning is necessary due to the following reasons: 1. To attract competent persons and to retain them in the organization. 2. To provide suitable promotional opportunities. 3. To enable the employees to develop and take them ready to meet the future challenges. 4. To increase the utilization of managerial reserves within an organization.

7 5. To correct employee placement. 6. To reduce employee dissatisfaction and turnover. 7. To improve motivation and morale. Today s class is intended for discussing the process of career planning and development. Why in today s modern global organizations the need for career planning and development is given much importance? The process of career planning and development is discussed below. So, after discussion of the process of career planning and development, you all can know the importance of it. Process of Career Planning and Development: - The following are the steps in Career Planning and Development: 1. Analysis of individual skills, knowledge, abilities, aptitudes etc. 2. Analysis of career opportunities both within and outside the organization. 3. Analysis of career demands on the incumbent in terms of skills, knowledge, abilities, aptitude etc., and in terms of qualifications, experience and training received etc. 4. Relating specific jobs to different career opportunities. 5. Establishing realistic goals both short-term and long-term. 6. Formulating career strategy covering areas of change and adjustment. 7. Preparing and implementing action plan including acquiring resources for achieving goals. I hope that every one is well versed with the career planning and development and it s importance. Now, you have to know what are the steps involved in career development system. Steps involved in Career Development System: - There are four steps in establishing a career development system. They are: 1. Needs: -Defining the present system i.e. this step involves in the conducting a needs assessment as in a training programme. 2. Vision: -The needs of the career system must be linked with the interventions. An ideal career development system known as the vision links the needs with the interventions.

8 3. Action Plan: -An action plan should be formulated in order to achieve the vision. The support of the top management should be obtained in this process. 4. Results: -Career development programme should be integrated with the organization s on-going employee training and management development programmes. The programme should be evaluated from time to time in order to revise the programme. The above points can further elaborated in the following way: - Steps and Tasks in establishing a career development system Step 1: Needs: Defining the present system Establish roles and responsibilities of employees, managers, and the organization. Identify needs; establish target groups. Establish cultural parameters; determine organizational receptivity, support, and commitment to career development. Assess existing HR Programme or structure; consider possible links to a career development programme. Determine prior attempts at solving the problem or need. Establish the mission or philosophy of the programme. Design and implement needs assessment to confirm the data or collect more data. Establish indicators or criteria of success. Step 2: Vision: Determining New Directions and Possibilities Create a long-term philosophy. Establish the vision or objectives of the programme. Design interventions for employees, managers, and the organization. Organize and make available career information needed to support the programme. Step 3: Action Plan: Deciding on practical first steps Assess the plan and obtain support from top management Create a pilot programme Assess resources and competencies. Establish an advisory group. Involve advisory group in data gathering, programme design, implementation, evaluation and monitoring

9 Step 4: Results: Maintaining the change Create long-term formalized approaches. Publicize the programme. Evaluate and redesign the programme and its components. Consider future trends and directions for the programme. Career development is essential to implement career plan. Career development consists of personal improvements undertaken by the individual employee, training, development and educational programmes provided by the organization and various institutes. The most important aspect of career development is that every employee must accept his/her responsibility for development. Various career development actions prove useful if an employee is committed to career development. I think and hope that everybody is well versed with career planning and development. Now let us try to explore the pre-requisites for the success of career planning. Pre-requisites for the success of career planning. 1. Strong commitment of the top management in career planning, succession planning and development. 2. Organization should develop, expand and diversify its activities at a phased manner. 3. Organization should frame clear corporate goals. 4. Organization should have self-motivated, committed and hard working employees. 5. Organization s goal in selection should be selecting the most suitable man and place him in the right job. 6. Organization should take care of the proper age composition in manpower planning and in selection. 7. Organization should take steps to minimize career stress. 8. Organization should have fair promotion policy. 9. Organization should publicize widely the career planning and development programmes. Advantages of Career Planning and Development After learning about all the above things, we have to have a look on advantages of career planning and development. Following are the advantages of career planning and development: Infact both individuals and the organization are going to benefit from career planning and development. So the advantages are described below: For Individuals:

10 1. The process of career planning helps the individual to have the knowledge of various career opportunities, his priorities etc. 2. This knowledge helps him select the career that is suitable to his life styles, preferences, family environment, scope for self-development etc. 3. It helps the organization identify internal employees who can be promoted. 4. Internal promotions, upgradation and transfers motivate the employees, boost up their morale and also result in increased job satisfaction. 5. Increased job satisfaction enhances employee commitment and creates a sense of belongingness and loyalty to the organization. 6. Employee will await his turn of promotion rather than changing to another organization. This will lower employee turnover. 7. It improves employee s performance on the job by taping their potential abilities and further employee turnover. 8. It satisfies employee esteem needs. For Organizations: - A long-term focus of career planning and development will increase the effectiveness of human resource management. More specifically, the advantages of career planning and development for an organization include: i. Efficient career planning and development ensures the availability of human resources with required skill, knowledge and talent. ii. The efficient policies and practices improve the organization s ability to attract and retain highly skilled and talent employees. iii. The proper career planning ensures that the women and people belong to backward communities get opportunities for growth and development. iv. The career plan continuously tries to satisfy the employee expectations and as such minimizes employee frustration. v. By attracting and retaining the people from different cultures, enhances cultural diversity. vi. Protecting employees interest results in promoting organizational goodwill. Limitations of career planning Apart from advantages, there are some limitations. So, let us have a look at the limitations of career planning? Despite planning the career, employees face certain career problems. They are: 1. 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.

11 2. 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. 3. Declining Career Opportunities: -Career opportunities for certain categories reach the declining stage due to the influence of the technological or economic factors. Solution for such problem is career shift. 4. Downsizing/Delayering and careers: - Business process reengineering, technological changes and business environmental factors force the business firms to restructure the organizations by delayering and downsizing. Downsizing activities result in fixing some employees, and degrading some other employees. There are some suggestions for effective career development. They are: - Challenging Initial Job Assignments: - There is an evidence indicating that employees who take up initial challenging jobs perform better at later stages. Dissemination of Career Option Information: - Mostly employees lack information about career choices/options. The managers identify career paths and succession paths. This information should be made available to all. Job Positioning: - Management should provide job information to employees through job positioning. For posting the jobs organizations can use bulletin board displays, company publications, electronic billboards and similar means. Assessment Centres: - The assessment centers evaluate the people regarding their ability to certain jobs. This technique helps to identify the available skills, abilities and knowledge. Career Counseling: - Career Counseling helps employees in setting directions, reviewing performance, identifying areas for professional growth. Succession Planning Succession may be from internal employees or external people. Succession from internal employees is advantageous to the organization as well as to the internal employees. Organization can buy the employees loyalty and commitment, belongingness, shared feeling of development along with the organization by promoting the internal employees. Employees get the benefits of growth in the organization. The organization mostly prefers to encourage the growth and development of its employees and as such tends to prefer succession from within. Organizations, appraise employee s potentialities, identify training gaps for future vacancies, and develop them for higher and varied jobs. The scope of succession plan would be more when the organization grows steadily and employees have potentialities to take up higher responsibilities. Professionally run organizations ask their managers to identify the internal employees having potentialities and develop them in order to occupy their positions as and when they feel vacant. However, it is necessary to allow the inflow of new blood also. Hence, organizations should also search for outside talent in certain cases like when competent internal people are not available, when major expansion, diversification and growth plans are in offing, complete dependence on either internal source or external source not advisable to any organization.

12 The following two articles can know the importance of succession planning. These articles highlight the importance of succession planning and highlights the challenges of succession planning. (Gooooggl ( lee..ccoom hht ttpp: ://www.bbuussi inneessss..ccoom/ /ddi ireecct toor ryy/ /maannaaggeemeennt t/ /ccoor rppoor raat tee ggoovveer rnnaannccee/ /ssuucccceessssi ioonn ppl laannnn inngg/ i / aanndd w.familybizz.net/article_sp.asp) Case: In the Dark Could you come to my office for a minute, Rao asked Mehta, the plant manager. Sure, be right there, said Rao. Rao was the plant s control director. He had been with the company for four years. After completing his degree in mechanical engineering, he worked as a production supervisor and then as maintenance supervisor, prior to moving to his present job. Rao thought he knew what the call was about. Your letter of resignation catches me by surprise, began Mehta. I know that Malhotra products will be getting a good person, but we sure need you here, too. I thought about it a lot, said Rao, but there doesn t seem to be a future for me here. Why do you say that? asked Mehta. Well, replied Rao, the next position above mine is yours. With you being only 39, I don t think it slightly that you ll be leaving soon, said Mehta. That s why it s even more of a shock to learn that you are resigning. I think I ll be moving to the corporate office in June of next year. Besides, the company has several plants that are larger than this one, and we need good people in those plants from time to time, both in quality control and in general management. Well, I heard about an opening in the Daruhera plant last year, said Rao, but by the time I checked, the job had already been filled. We never know about opportunities in other plants until we read about incumbent in the company paper. All this is beside the point now. What would it take to get you to change your mind? asked Mehta. I don t think I will change my mind now, replied Rao, because I have given my word that I am going to join them. Questions 1. Evaluate the career planning and the development programme at this company. 2. What actions might have prevented Rao s resignation?

13 Career & Succession Planning Competency Competency is defined as a behaviour that describes excellent performance in a particular work context (e.g. job, role or group of jobs, function, or whole organisation).

14 Competency Mapping Competency Mapping is a process of identifying key competencies for an organisation and or a job and incorporate those competencies through the various process of the organisation Life Stages of Career Establishing Identity Growth and Getting Established Maintenance & Adjustment to Self Decline

15 Career Planning Career planning is the process by which one select career goals and the path to these goals. Career Development Career Development is those personal improvements one undertakes to achieve a personal career plan.

16 Needs Vision Steps involved in Career Development System Action Plan Results Pre-requisites for the success of career planning. Advantages of Career Planning and Development Limitations of career planning Suggestions for effective career development

17 Succession Planning Succession may be from internal employees external people. Succession from internal employees is advantageous to the organisation as well as to the internal employees. Organisation can by the employees loyalty and commitment, belongingness, shared feeling or development along with the organisation by promoting the internal employees

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