Are Indian organizations ready to march hand-in-hand with employees up the career path?
Post-liberalized India is witnessing restructuring at a steady pace. Delayering, downsizing, mergers and accquisitions, and reengineering have become a way of life in corporate India. Organizations are opting for flatter structures and the demand for flexible, transferable skills has increased.
Where does all this chaos leave the employee’s career path? What happens to career needs of people who continue with organizations involved in restructing? Does the organization look into the psychological contract of these employees? Does it provide career counseling and coaching?
The labyrinth of changes has seen the myth about life-long career shattered to smithereens, even in the public sector. As Jack Welch, CEO of General Electric, rightly commented, `There is a one day contract between employer and employee, in which all that counts is the current value that each party contributes to the relationship.’ Are careers reduced to a `one-day’ or `few-years affair’? If so, then are organizational systems geared up for short-span careers?
Career planning is an opportunity as well as a challenge. It is an opportunity, because a well-designed career planning system will offer a gamut of alternatives to employees. Instead of traditional corporate ‘on-theway-up’ ladder, now there is this concept of ‘multiple career paths’, where employees are shown plentiful lateral opportunities.
It is a challenge because all bright, talented employees eventually outgrow their jobs. This means that organizations have to rethink of ways be designed such that it not only provides employees with multiple alternatives, but will also help them hone their skills and widen their knowledge base. Basra’s study conducted in U.K found that organizational change leads managers to rely less on their organization and more on their own efforts to develop their careers. In such a contest, organizational commitment is balanced by commitment to domestic and personal life; and employees begin to define themselves less by occupation or an association with a specific employer, and more by their lifestyles (see www.anbar.uk.co).
We conducted a benchmarking study in six companies across industries to identify best HR practices and compare their career planning process. Our effort was to answer questions like “Which processes make them successful?” How much do they focus on employees while chalking out career paths”? “What tools do they use to assist in career planning”?
Some of the organizations in our survey had a history of restructuring in the mid 90’s, and had moved towards instituting TQM, voluntary retirement schemes reengineering, downsizing and delayering processes, and adoption of innovative work practices. The sample included two FMCGs, two pharmaceutical companies, a automobile manufacturer and a software firm. Structured questionnaires were used in conjunction with personal interviews.
Case 1: The FMCG company had a cross-functional career system and usually recruited from within, unless people with new skills were difficult to acquire. The objective of their system was ‘Bench Strength Index’ – a system whereby backup plan existed for every position vacated due to voluntary exit. The whole idea is to make the process more forward-looking and continuous.
The career planning system grades employees in one of two categories. The element of the process are more detailed for star performers. The entire database is computerized and developmental plans, for subordinates and their supervisors, are fed into the system so as to be automatically update the training needs and time frame for completion.
During performance appraisals, employees document their needs and aspirations. A review by the supervisor and his boss leads one-to-one session between the employee and his supervisor. This is a forum for discussions on the employee’s aptitude, competencies and skill gaps.
Case 2: The auto manufacturer had a crossfunctional system of career planning and the focus, once again, on recruitment form within. Performance appraisal was used as the primary tool. Apart from usual elements like-self-appraisal, review and discussion, the process had a unique aspect to it. The supervisor had the responsibility to make a presentation to a group, consisting of the company’s chairman, a cross-functional manager and a member from HR.
Training, coaching and counseling played a very important role in the whole process, especially in case of a mismatch between employee aspirations and organizational needs.
Promotions were awarded depending on the employee’s readiness for a new role, not availability of vacancies. The whole process was governed strongly by the HR department’s policy statement.
Case 3: The pharmaceutical manufacturer, again relied for 90% of its recruitment needs on internal candidates. This served as a facilitator to create balance between job and organizational career system.
In this company, too, vacancies had to exist before promotion decisions were considered. Eligibility for performance during the past three years. The management promotions are handled during April every year.
Case 4: The software design firm had crossfunctional career paths with all positions mapped to a dual career path. The objective of the process was to find a best fit between the employee potential / aspirations and company expectations and directly link performance to rewards. There were two major tools used for career planning.
The first of these was a program conducted for an employee one year of his entire into the organization. This program aimed at helping an employee manage their career plan in the near future. Knowledge, skills and aptitude of the employee were assessed in this program and development discussions held between him and his supervisor along with periodic meetings to review progress of the development plan.
The second tool was performance review where the idea was to develop employees. The review as done twice a year and a MBO is submitted to the manager. The manager would meet the employee to give feedback and communicates performance ratings with justification.
A performance improvement plan was development stating measurable objectives and examples of work deficiencies. A time frame was attached to the development plan and results to be achieved stated.
Case 5: The pharmaceutical manufacturer had an exhaustive process for career planning. Eligibility for promotion depended on completion of minimum three years in the company and a certain minimum percentage during the two years. At this stage, capability criteria are set.
Written tests are used and 60% marks are allotted for managerial skills and 40% of marks for product knowledge. Group discussions are held on situational topics and behavioural traits are assessed. The immediate supervisor and area managers participate in the evaluation.
The final stage consists of two personal interviews by the same board. These interviews give an opportunity for the person to express his views and needs.
Promotion decisions are made after the entire process is complete The process is kept as objective as possible with a number of parameters that are assigned specific weightages.
Case 6: The FMCG company had a job-oriented systems, which was mostly closed and cross-functional moves were encouraged.
The employees were divided into two categories – those of staff and executives. Management trainees were taken into the company every year and promoted to higher grades, after which career planning started. The career planning was fine-tuned further for star performers.
The process had leadership and development review where employees’ strengths, weakness, competencies and skills were assessed by a cross-functional team. The employee’s choices were given due consideration while assigning new positions. MBO and performance appraisal were also used at background data for the review.
Some common themes emerged from all the surveyed companies. In all cases, objectives were set and reviewed, employee’s aspirations considered and the career path designed to align organization’s opportunities with employee needs.
The organizations had closed systems, they preferred to fill vacant positions by through internal moves, the required skills were not available in the organization.
Most of the companies started with a career planning process for their employees only after they had completed a certain minimum tenure.
Organizations had a more detailed and intrinsic path chalked out to retain star performers.
The career path design became more detailed as one moved higher up in the hierarchy.
There was more emphasis on potential and performance of an employee, instead of seniority. Employee aptitude and past / current performance was kept in mind while designing the career path.
After review of an employee’s needs, gap analysis of skills or knowledge, was usually done to design a proper developmental plan. In most cases, counseling was used to guide the employee, and counseling skills of managers were enhanced.
The career planning process was made objective. MBO and performance appraisal were the most widely used tools in career planning. Time frames were set with action plans set to make goals more realistic.
Most organizations depended on internal crossfunctional moves to giver more wider career choices to employees.
One important trend is the special attention given to star performers. However, retaining star performers in the face of increasing competition is difficult.
Focussing on the mediocre, yet steady group of employees must become the new focus for organizations. These employees deserve recognition and better career opportunities to increase their morale. The career planning process must be transformed into a more open, objective, and continuous process, with greater emphasis on employee participation.
There is a need to look at career issues form both economic and social angles. First, if the organization is to survive and prosper in an ever-changing environment, its human resource must be in constant state of development. A planned program can pays greater dividends than reliance on chance or frantic outside recruitment when needs suddenly appear.
Career development, cannot be an isolated activity, it has to be supported by the twin processes of training and manpower planning. It has to be strategic in nature. 3M has, for instance, established a career resources department to better integrate its career programs, performance management processes and HR planning system. In the same vein, Boeing has developed a program called ‘Careers’ to support its other HR subsystems. Several other organization like Chevron, CIGNA, Sears Information Services, Texaco, Tuner Broadcasting , Internal Revenue Services, and Marriott International are renowned for their cutting edge career management strategies.
It is time that corporate India looked at these practices more seriously, otherwise the roller coaster ride of change will leave them gulping for survival. A time will come when the organizational career will be dead and the protean career will be the trend.
