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Unit 11: Performance Appraisal and Career Strategy

or job titles both in public and private sectors. In such cases, individuals nurture their own Notes
perceived stages of career progression.
3. It is better defined as an integrated pace of lateral movement in an occupation of an
individual over his employment span. Individual-centered career being not an objective
or at times even realistic description of career steps in a given occupation, often goes
against the hopes and expectations of employees as organisations may have a different
perceived career plan for the employees. Integrated approach, therefore, minimizes such
dissonance and ensures a mutually acceptable and satisfying career progression.

11.7 Overview of Career Development

Career development essentially means the process of increasing an employee’s potential for
advancement and career change. In other words, it is a process of planning the series of possible
jobs which an individual may hold in the organisation over time and developing strategies
designed to provide necessary job skills as the opportunity arises.
Therefore, career development relates to the readiness for progression through a series of
positions during an individual’s working life. Career development may be differentiated from
career planning and career management. Career development is a systematic process of guiding
the movement of human resources of an enterprise through different hierarchical positions,
whereas career planning is a process of establishing career objectives for an employee (or by the
person himself) and developing planned strategies to achieve them including activities which
help in making choices with respect to occupations, organisation’s job assignments and self
development measures. Career management, on the other hand, relates to specific human resource
management activities, such as recruitment, selection, placement, and appraisal to facilitate
career development.
Every organisation needs to provide career development opportunities to its employees. The
Indian corporate sector, at present, is facing major restructuring to keep pace with the economic
restructuring programme of the country.
Market globalization, technology upgradation, import liberalization, delicensing, increased
competition together have now prompted Indian companies to restructure their production vis-
à-vis organisation. Redeploying the manpower, through proper training, in restructured jobs is
one of the important priorities for the organisations, particularly for those who are down the
level. But employees with matching skill and knowledge now find them in better bargaining
position due to increased job mobility. Most of the foreign and multinational companies are
now winning away the employees with matching skill and knowledge from Indian organisations
with better offer of pay and career. Therefore, poor career development programme may affect
an organisation at least in two ways:
1. High employee turnover, particularly those in their beginning of their career.
2. Decreasing employment involvement.
Recruitment expenses, training expenses and reduced performance during orientation (loss of
output, increased wastages, etc.) together add to the cost of employee turnover.
Decreased employee involvement also affects functional efficiency and productivity of the
employees. Other important reasons for career development can be listed as follows:

1. Changing environment is now making jobs more complex. A suitable career development
programme enables employees to be better prepared for future positions in the
organisation. It also gives the opportunity to identify prospective managers from within.
Manning vacancies from within is cost efficient and at the same time the system motivates
employees.

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