Although there have been constant negative changes to the business environment, such as economic downsizing and restructuring that have led to fewer hierarchical positions, there has also been an increase in the need for productivity improvement while keeping up with rapidly evolving technology. So, organizations prefer to promote their current employees to a certain position rather than hiring a new person from the market because they are already familiar with the corporate culture and do not require training. This Importance of Career Development of employees as well as ongoing employee development and preparation for future top positions.
The process of organizational career development is important for both employees and employers. The entire situation could change due to a number of unanticipated and undesirable developments as well as consequences. Both employees and employers must be prepared to adapt to the changing environment in such a scenario. Organizations must be equipped with personnel who can handle pressure effectively and reduce the danger of succumbing to new circumstances, while individuals must continuously improve their skills and competences to meet current expectations. Therefore, it is crucial for both parties to recognize the value of career development.
Business Environment Factors that can Bring Undesired Changes
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Economic Downsizing: The biggest of all the factors that has badly affected the careers of millions of individuals is economic downsizing. The jobs are cut from the organizations and the fittest of all employees survive. Employees who consistently acquire new and improved abilities stand to benefit less from the current economic climate than other people.
De-layering: Delayering refers to reclassifying jobs. This organizational change project involves reclassifying the jobs in a more inclusive manner. However, old reporting lines do exist in order to maintain managerial control but some jobs may be removed or cut down during the process. Again, those individuals have to leave the organization who are not competent enough to be shifted to other job with different nature.
Cost Reduction Strategies of the Organization: Organizational cost-cutting tactics are once more extremely hazardous for people who are not ready to advance. If organizations have to cut down their operating costs, the employment of those individuals is at stake who are not employable or who have not performed up to the mark in past. Employees continuously need to upgrade themselves and show their talent in order to remain in the organizations till long.
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IT Innovations: One of the main drivers of change is the ongoing development and improvement of technology. While some people can keep up with the rapidly evolving technology and are constantly willing to learn and use new IT applications, others exhibit extreme resistance that is unacceptable to enterprises. Employees need to keep themselves updated and show willingness to accept changes as and when they occur and mould themselves accordingly.
The business changes affect both organizations and employees. The need is to understand them and discover a strategy to manage with them properly.
Designing Career Development Systems
Both individuals and institutions are included in the organizational career development process. While institutions or organizations control the careers of the employees, people design their own careers. An individual’s career planning process encompasses a number of subprocesses, including career self-development, organizational, job assignment, and occupational options. Organizations’ primary career management subprocesses include hiring and selecting employees, allocating human resources, evaluating performance, and providing training and development. Designing automated career development systems, which integrate a number of activities linked to individual career planning and organizational career management including individuals, management, and the organization, is essential for businesses to have effective career development efforts.
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A person’s career is a collection or progression of work-related activities and future goals. It is influenced by a number of things, including the person’s actions, attitudes, values, goals, and desires, as well as opportunities, threats, and strengths and weaknesses, as well as the external environment and economic situations. It is an intentional process that a person does based on their ambitions and aspirations throughout their lifetime.
While designing, implementing, and monitoring succession planning based on the future needs of a company, career management takes into account a specific job title or designation. Naturally, it also considers human variables, but the entire process is guided and run according to the requirements and convenience of a company. The greatest planning takes into account both organization’s and individual’s objectives and develops a perfect blend where both the parties can be rewarded.
HR professionals can help improve the effectiveness of the overall career management process by designing career development systems in accordance with the unique objectives and requirements of an organization. The system must be specifically designed because it aims to incorporate all of an employee’s, management’s, and organization’s operations. As each firm has a unique nature and each employee has various objectives depending on the industry, there is no one size fits all solution. In most businesses, career management programs are combined with employee career assessments. They will accurately analyze their professions and provide accurate information about themselves if they are in a supportive environment with tools like a facilitator and an automated system that works.
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The majority of businesses, including Xerox, IBM, Wal-Mart, Lincoln Electric, and Bell Atlantic, offer unique career development programs. Additionally, they offer their staff a culture and atmosphere that encourage professional development from start to finish. These businesses are regarded as the finest places to work because of this. A very high percentage of university graduates prefer joining them even though they offer low pay because they take care to manage the careers of their employees and treat them as the most valuable assets of the company.
Benefits of a Career Development System
Career development programs are most effective when they are integrated with the organization’s ongoing training and development strategies. For being able to do this, an organization must have a carefully designed career development system especially designed to meet its own unique needs and requirements. An automated and well-designed career management system not only benefits organizations but also help employees and managers or supervisors in establishing effective communication with each other. All the parties gain different benefits and combining which they can together set an organizational culture that supports such types of activities in an organization.
Benefits of a Career Development System to Organization
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Organizations are better equipped to utilize employee abilities and place them in the appropriate positions after they have a good understanding of an employee’s strengths and limitations, attitude and behavior, values, and future goals.
- The organization can disseminate all important details and information at all organizational levels in order to ensure effective communication at all levels. It fosters and lays emphasis on better communication within the organization as a whole.
- It also helps organization retain valued employees by providing them what they want. Since the organization is able to collect all necessary information about a specific individual, it can make efforts to retain them.
- It establishes a reputation of the organization in the market. More and more working professionals see it as a people developer and get attracted towards it.
Benefits of a Career Development System to Employees
- The major benefit of career development system to employees is that they get helpful assistance and guidance with their career decisions. They get to know about their own aspirations, objectives and desires and understand how to shape their career.
- By using this system, they can set more realistic goals and objectives that are feasible to be accomplished over the span of one’s life.
- It fosters better communication between the employee and the manager as well as at all levels of the organization.
- The best part is that they can get feedback on their performance. This helps them improve their working style and compels them to upgrade their skills.
- The process leads to job enrichment and enhanced job satisfaction.
Benefits of a Career Development System to Managers/Supervisors
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- A career development system helps managers and supervisors in improving and upgrading their skills in order to manage their own career. Even they get to where they are heading to and what their aspirations are.
- It fosters better communication between managers and employees.
- It helps them in retaining valued employees as they get to know about their skills and competencies and future aspirations as well.
- It helps in discussing productive performance appraisal of employees and planning their promotions as well as their career graph.
- It leads to greater understanding of the organization as a whole and cultivate a supportive and conducive culture in the organization.
- It helps managers in understanding the hidden aspects of employees and guides them to allocate employees the right job that matches to their skills and competencies.
