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Strategic Staffing Third Edition

Chapter 10

Assessing

Internal

Candidates

Learning Objectives

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.

Internal Assessment

• 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

Internal Assessment Goals

• 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

Internal Assessment Methods

• Skills inventories

• Mentoring programs

• Performance reviews of task and interpersonal behaviors

• Multi-source assessments

• Job knowledge tests

• Assessment center methods

• Clinical assessments

Multisource Assessment

Who Best Rates Which Behaviors?

Table 10-1 The Frequency with Which Different Raters are Able to Observe an Employee’s

Task and Interpersonal Behaviors

Blank Self Supervisor Subordinates Peers

Internal

Customers

External

Customers

Task

Behaviors

High

Frequency

Medium

Frequency

Low Frequency Medium-to-High

Frequency

Medium

Frequency

Low

Frequency

Interpersonal

Behaviors

High

Frequency

Low

Frequency

Medium-to-High

Frequency

Medium-to-High

Frequency

Medium

Frequency

Medium

Frequency

Nine Box Matrix

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.

Career Crossroads Model

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

Succession Management

• 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

Succession Management Database

Steps in Developing a

Succession Management System

Table 10-2 Steps in Developing a Succession Management System

1. Assess current and future competencies, behaviors, values, etc., needed for

future job performance in the chosen position

2. Assess each identified and interested candidate’s strengths, weaknesses,

and readiness to move into other positions

3. Create a plan to continually and systematically improve the capabilities of all

identified succession candidates

4. Create a plan to identify qualified and interested internal candidates for open

positions

5. Evaluate the system on relevant criteria including the number of positions

filled with candidates who have been the target of succession management

activities

6. Continually improve the system

What Makes Succession Management

Effective?

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

Effective Succession Management

Systems

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.

Succession Management Tips Table 10-3 Succession Management Tips

Here are some experts’ recommendations for creating and maintaining an effective succession

management system:

• Keep the process simple. Make the process logical and simple so that busy line managers do

not feel that the process is burdensome.

• Use technology to support the process. Information technology enables the timely monitoring

and updating of developmental needs and activities.

• Align your succession management plan with your firm’s overall business strategy. Top

executives and line managers will be more supportive of a system that clearly reinforces the

organization’s corporate goals and objectives.

• Focus on development. Succession management must be a flexible system oriented toward

developmental activities rather than merely a list of high-potential employees and future

positions they might fill.

• Model effective succession management behaviors at the top. company executives need to

both model effective succession management behaviors and hold line managers responsible for

developing their subordinates’ skills and knowledge.

• Approach succession management as a key business activity. because it plays a key role

in a firm’s long-term business strategy execution, succession management should be treated as

a key activity for the firm.

Career Planning

• 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.

Career Development Tools

• 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 – used to reenergize employees

• Challenging and developmental job assignments can enhance key

competencies and build experience in important job tasks before the

individual assumes the position.

Making a Career Development Plan

1. Assess yourself

2. Set goals

3. Develop an action plan

4. Revisit and revise as needed

Evaluating Internal Assessment (1 of 2)

• Validity—whether the assessment method predicts relevant

components of job performance

• Return on investment—whether the assessment method

generates a financial return that exceeds the cost

associated with using it

• Applicant reactions—including the perceived job

relatedness and fairness of the assessment method

Evaluating Internal Assessment (2 of 2)

• Selection ratio—having a low selection ratio means hiring

only a few applicants, which allows an assessment method

to have maximal impact in improving the performance of the

people hired

• Usability—people in the organization must be willing and

able to use the method consistently and correctly

• Adverse impact—an assessment method is more effective

if it predicts job performance and other important hiring

outcomes without discriminating against members of a

protected class.

Discussion Questions (1 of 2)

1. How is internal assessment useful for more than just

evaluating employees for other positions in the company?

2. Do you feel that multi-source feedback is appropriate?

Why or why not?

3. 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?

Discussion Questions (2 of 2)

4. Given how important succession management programs

are, how can companies persuade their managers to

support and commit to their succession management

activities?

5. Why is it important to integrate succession management

with career planning?

Strategy Exercise

Working in groups of 3-5, 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?

Opening Vignette Exercise

In this chapter’s opening vignette, you learned how Fluor

combines succession management and career development

to ensure a solid talent pipeline of project managers and

senior executives. Working in a group of three to five

students, reread the vignette. Be prepared to share with your

class your answers to the following questions:

1. Why do you think that Fluor’s internal assessment and

development system is so successful?

2. What additional ideas do you have that could help Fluor fill as

many internal positions as possible with its current employees?

Chern’s Case Assignment

a) Make recommendations to Chern’s regarding how it can

improve its internal promotion practices.

b) Recommend ways to identify and develop sales

associates who have the potential to become department

managers.

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