Jean Phillips & Stanley Gully (mostly)
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-1
After studying this chapter, you should be able
to:





Identify the goals of internal assessment.
Discuss how internal assessment can enhance a
firm’s strategic capabilities.
Describe different internal assessment methods.
Discuss the importance of integrating succession
management and career development.
Describe two models of internal assessment.
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-2




The evaluation of a firm’s current employees
for training, reassignment, promotion, or
dismissal purposes
Evaluates employees’ fit with other jobs
Assesses employees to enhance the firm’s
strategic capabilities by aligning a firm’s
talent with its vision, goals, and business
strategy
Informs downsizing decisions
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-3
Laurence J. Peter and Raymond Hull in their 1969 book:
"in a hierarchy every employee tends to rise to his level
of incompetence"
The first corollary is that employees who are dedicated to
their current jobs should not be promoted for their efforts, and
instead should be rewarded with, say, a pay raise, while
remaining in their current position.
The second corollary is that employees might be promoted
only after being sufficiently trained to the new position. This
places the burden of discovering individuals with poor
managerial capabilities before (as opposed to after) they are
promoted.









Maximize fit
Accurate assessment
Maximize return on investment
Positive stakeholder reactions
Support talent philosophy and HR strategy
Establish and reinforce HR strategy and employer
image
Identify employees’ development needs
Assessing ethically
Legal compliance
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-5







Skills inventories
Mentoring programs
Performance reviews of task and
interpersonal behaviors
Multi-source (360-degree) assessments
Job knowledge tests
Assessment center methods
Clinical assessments
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-6
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-7
Copyright © 2011
Copyright © 2012 Pearson
Education,
Inc.
publishing as Prentice Hall
Pearson
Education,
Inc.
Publishing as Prentice Hall
10-8

Nine box matrix: a combined assessment of
an employee’s performance and potential.
◦ Is a method for displaying judgments made about
employees, not for making those judgments.


Its value depends on the quality of the
assessment methodology that determines
the box each individual is placed in.
It can help companies understand the
overall strength of their workforce, but only
if the employees were accurately evaluated
in the first place.
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-9
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-10
a person's progress through different
positions, jobs and roles in the firm
111



Different leadership levels requires different sets of
characteristics → managerial career needs changes.
Focuses on managerial and leadership positions
rather than technical or professional work.
The natural hierarchy of work that exists in most
large, decentralized business organizations
consists of six career passages from the entry level
to the top job, with each passage representing
increased complexity. The six passages are:
◦
◦
◦
◦
◦
◦
◦
Starting Point: Managing yourself
Passage 1: Managing others
Passage 2: Managing managers
Passage 3: Managing a function
Passage 4: Managing a business
Passage 5: Managing multiple businesses
Passage 6: Managing the enterprise
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-12



Succession management: an ongoing
process of systematically identifying,
assessing, and developing an organization’s
leadership capabilities to enhance its
performance
Succession management plans: written
policies that guide the succession
management process
Replacement planning: the process of
creating back-up candidates for specific
senior management positions
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-13
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-14
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-15

Understanding the nature of talent gaps with
enough time before the talent is needed can
allow the organization to:
◦ Plan for and remedy any workforce talent
deficiencies
◦ Develop an external recruiting strategy to bring
in external talent
◦ Redesign the work to reduce the need for the
talent expected to be in short supply
◦ Plan alternate career paths for surplus talent
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-16

The succession management process needs
to make sense to and be usable by different
business units.
◦ A standardized process can help to focus and
guide the development of employees to meet the
strategic needs of the organization, and increase
employee perceptions of the program’s fairness
by reducing opportunities for favoritism.


The process should also align with other
human resource processes including
recruitment, selection, rewards, training,
and performance management.
Continually evaluate and improve the
system.
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-17
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-18



Career planning: a continuous process of self-
assessment and goal setting.
To be strategic, career planning needs to
complement the expected future talent needs of
the organization.
When integrated with the organization’s succession
management and labor forecasting processes,
career planning and succession management can
help give any organization a snapshot of available
talent for meeting current and future needs.
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-19



Assessment centers simulate the position an employee
is interested in pursuing and whether or not they are a
good fit for the job.
Career counseling and career development workshops
help individuals understand the jobs that best match
their motivations and talents, and help them develop
the skills they need to successfully compete for these
opportunities.
Training and continuing education – skills in training in
a more formalized educational setting.

Job rotation, challenging assignments and mentoring
Sabbaticals (rest from work) – used to reenergize

Challenging and developmental job assignments can

employees
enhance key competencies and build experience in
important job tasks before the individual assumes the
position.
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-20

Assess yourself

Set goals

Develop an action plan
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-21

Validity—whether the assessment method

Return on investment—whether the assessment

Applicant reactions—including the perceived job
predicts relevant components of job performance
method generates a financial return that exceeds
the cost associated with using it
relatedness and fairness of the assessment
method
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-22

Selection ratio—having a low selection ratio

Usability—people in the organization must be

Adverse impact—an assessment method is more
means hiring only a few applicants, which allows
an assessment method to have maximal impact in
improving the performance of the people hired
willing and able to use the method consistently
and correctly
effective if it predicts job performance and other
important hiring outcomes without discriminating
against members of a protected class.
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-23



How is internal assessment useful for
more than just evaluating employees for
other positions in the company?
Do you feel that multi-source feedback is
appropriate? Why or why not?
Using the nine box matrix, an employee
doing a good job might actually be rated
lower than a mediocre employee who has
been working in a developmental stretch
assignment. Do you feel that this is fair?
Why or why not?
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-24


Given how important succession
management programs are, how can
companies persuade their managers to
support and commit to their succession
management activities?
Why is it important to integrate succession
management with career planning?
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-25
Working in groups of 3-5 students, read the following vignette
and develop some suggestions for the company based on the
material you read in this chapter. Be prepared to share your
ideas with the class.
Twisted is a small company with big dreams. The shopping-mall
oriented hot pretzel company has successfully grown its revenues by a
rate of 10% annually over the last 10 years. Twisted wants to sustain its
growth rate in the years ahead. The company has traditionally hired
new store managers from outside of the company. However, in the last
few years, it has had a difficult time recruiting enough of these people.
The CEO feels that there are probably a large number of employees who
might make good managers. However, the company has no good
internal assessment systems in place to identify them.
The CEO asks your group to help the firm identify internal managerial
talent so it can continue to pursue its growth strategy. What methods
would you suggest for doing so?
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-26
In this chapter’s opening vignette, you learned how
WellPoint combines succession management and
performance appraisals into one annual process that
allows it to quickly identify and assess internal
candidates for managerial positions.
Working in a group of 3-5 students, reread the
vignette. Be prepared to share with your class your
answers to the following questions:
◦ Why do you think that WellPoint’s internal assessment and
development system is so successful?
◦ What additional ideas do you have that could help WellPoint
fill as many managerial positions as possible with its
current employees?
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-27
All rights reserved. No part of this publication may be reproduced, stored in
a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
10-28