Career planning is the systematic process by which one selects career goals and the path to these goals.

From the organisation’s viewpoint, it means helping the employees to plan their career in terms of their capacities within the context of organisation’s needs.

A career can be developed by an individual within one organization or several others. Considering career planning as a process within the organization, career planning is that part of personnel adminis­tration which aims at developing paths through which employees may progress in the organization over time.

Schwind Das and Wagar defines as, “Career planning is the process of enhancing an employee’s future value.”

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Learn about:-

1. Introduction to Career Planning 2. Definitions of Career Planning 3. Need of Career Planning 4. Objectives and Purposes 5. Characteristics 6. Features

7. Elements 8. Principles 9. Steps 10. Pre-Requisites 11. Guidelines 13. Advantages 14. Limitations 15. Requisites.

What is Career Planning in HRM: Introduction, Definitions, Steps, Features, Characteristics, Objectives, Need, Elements and a Few Others


Contents:

  1. Introduction to Career Planning
  2. Definitions of Career Planning
  3. Need of Career Planning
  4. Objectives and Purposes of Career Planning
  5. Characteristics of Career Planning
  6. Features of Career Planning
  7. Elements of Career Planning
  8. Principles of Career Planning
  9. Steps in Career Planning Process
  10. Pre-Requisites of Career Planning
  11. Guidelines of Career Planning
  12. Advantages of Career Planning
  13. Limitations of Career Planning
  14. Requisites for Effective Career Planning

What is Career Planning in HRM – Introduction

The term career means advancement in terms of achievements or higher assignments/positions in activi­ties one is pursuing. Career reflects the individual and organizational definition of what is worthwhile set of activities to pursue throughout a life time.

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In a sense, one speaks of two aspects of a career:

(i) A career as reflected in a set of job description and organizational norms, and the rights and duties of a given position in an organization. The head of production, for instance, is expected to perform certain tasks; he/she carries certain set of responsibilities and is held accountable for certain areas of organizational performance.

(ii) A career as reflected in a set of needs and motives, which the individual tries to fulfil through his/her work and the rewards he/she obtains for that work—money, prestige, organizational membership, challenging work, freedom, and other satisfaction. The reward he/she seeks can be thought of as his/her job values which he/she is looking for in a job.

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These values, in turn, also reflect an underlying pattern of needs that the individual is trying to fulfil. Thus, as the head of production, he/she may seek to exercise his/her basic need for influencing and controlling a number of people and resources or he/she may be trying to meet the challenge of successfully building something, or getting something accom­plished that is a proof of his/her competence.

Organizations which want to retain the best of employees develop careers for them. They can create rewarding and mean­ingful careers for their employees, giving them a sense of satisfac­tion of knowing the direction of their work. Career planning is more effective if the employee is interested in developing a career and his/her superior is willing and able to counsel him/her well.

Career planning, thus, is a shared responsibility. Development of individuals is possible only when they are able to recognize that in developing themselves to meet the organizational needs, their needs are also being met; where career planning is not a shared responsibility but only a responsibility of the organiza­tion, it means that there is no career planning, although there may be organizational planning for human resources.


What is Career Planning in HRM – Definitions Suggested by Schwind Das and Wagar and Douglas T. Hall 

Schwind Das and Wagar defines as, “Career planning is the process of enhancing an employee’s future value.”

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Douglas T. Hall states that, “An individually perceived sequence of attitudes and behaviours associated with work related experiences and activities over the span of the person’s life.”

A career can be developed by an individual within one organization or several others. Considering career planning as a process within the organization, career planning is that part of personnel adminis­tration which aims at developing paths through which employees may progress in the organization over time.

Careers paths are not designed for each individual within the organizational set-up and task requirements. Various career paths are designed, and individuals with the support of the organization have the choice to develop themselves as they wish depending upon their needs, ability, interest, etc.

The combination of needs and desires act as career anchors which create a drive to take up a career. These drives are based upon his/her technical and managerial competence besides his/her desire for risk-taking innovation and autonomy.

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A career maybe defined as all the positions occupied by a person during his working life. Career planning is the process by which one selects career goals and the path to these goals. The major focus of career planning is on assisting the employees achieve a better match between personal goals and the opportunities that are realistically available in the organisation.

Every employee has a desire to grow and scale new heights in his workplace continuously. If there are enough opportunities, he can pursue his career goals and exploit his potential fully.

He feels highly motivated when the organisation shows him a clear path as to how he can meet his personal ambitions while trying to realise corporate goals. Unfortunately, as pointed out by John Leach, organisations do not pay adequate attention to this aspect in actual practice for a variety of reasons.

The demands of employees are not matched with organisational needs, no effort is made to show how the employees can grow within certain limits, what happens to an employee five years down the line if he does well, whether the organisation is trying to offer mere jobs or long-lasting careers, etc.

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When recognition does not come in time for meritorious performance and a certain amount of confusion pre­vails in the minds of employees whether they are ‘in’ with a chance to grow or not, they look for greener pastures outside. Key executives leave in frustration and the organisation suffers badly when turnover figures rise.

Any recruitment effort made in panic to fill the vacancies is not going to be effective. So, the absence of a career plan is going to make a big difference to both the employees and the organisation.

Employees do not get right breaks at a right time; their morale will be low and they are always on their toes trying to find escape routes. Organisations are not going to benefit from high employee turnover.

New employees mean additional selection and training costs. Bridging the gaps through short-term replacements is not going to pay in terms of productivity. Organisations, therefore, try to put their career plans in place and educate employees about the opportunities that exist internally for talented people. Without such a progressive outlook, organisations cannot prosper.


What is Career Planning in HRM – Need

1. To provide suitable promotional opportunities to the employees who are really deserve for it.

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2. To attract competent capable, skilled trained candidate toward the company and to retain them in the organisation.

3. To improve and increase motivation and morale among the employees.

4. To enable the employees to develop themselves and keep them ready to meet the various future challenges.

5. To correct employee placement if there are errors in placement of some employees.

6. To optimize the utilization of managerial reserves within an organisation.

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7. To reduce employee dissatisfaction and turnover.


What is Career Planning in HRM – Objectives and Purposes

Objectives of Career Planning:

The main objectives of career planning are mentioned below:

Objective # 1. To Anticipate Future Vacancies:

The future vacancies that may arise due to retirement, resignation, death, etc., at managerial level are anticipated by career planning. Therefore, it provides a fairly reliable guide for manpower forecasting. A forward career plan is of great help to avoid dislocation in managerial positions.

Objective # 2. To Develop an Awareness:

To Develop an Awareness of Each Employee’s Uniqueness Career planning maps out careers of employees suitable to their ability and their willingness to be trained and developed for higher positions.

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Objective # 3. To Improve Employee Morale and Motivation:

Career planning improves employee morale and motivation by closely matching skills to job requirements and by providing opportunities for promotion.

Objective # 4. To Attract and to Retain the Right Type of Employees:

The main objective of career planning is hard working and talented employees. Workforce becomes more stable in the event of low employee turnover. The fact that the organisation provides opportunity for promotion and career growth wins more loyalty of employees. This helps to reduce the cost of hiring new people. Moreover, a unique corporate culture can develop and thrive, when people grow inside the organisation.

Objective # 5. To Facilitate Expansion and Growth of Enterprise:

Career planning plays a vital role in facilitation of expansion and growth of the enterprise. The employees who are required to fill job vacancies in future, can be identified and developed in time.

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Through systematic career planning, jobs enlargement can be introduced to meet future needs arising from job design and technological changes. It also helps to achieve higher productivity and organisational development.

Objective # 6. To Utilise Managerial Talent Available at Overall Levels within the Organisation:

Career planning through more satisfied and productive employees ensures better shaping of human resources. It also ensures that promising persons get experiences that will equip them to rise to the posts where they have to bear greater responsibilities for which they are able and receive handsome remuneration for which they deserve.

Objective # 7. To Integrate Individual and Organisational Needs:

Career planning aims at integration of individual and organisational needs. Career planning identifies positive characteristics about employees, which can harnessed for organisational development. It helps in understanding of the relationship between personality and occupational/ professional goals and how they can be aligned to organisational mission and objectives.

Objective # 8. To Provide Guidance and Encouragement to Employees:

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Providing guidance and encouragement to the employees fulfill their potentials. It also makes identification of personal interests, abilities, strengths and weaknesses and how they relate to careers.

Purposes of Career Planning:

Career planning seeks to achieve two purposes:

1. To help match individual needs, goals and abilities with organisational job demands, current or future, so that individuals may experience fulfillment and the organisation may have the right persons, at the right time, at the right places

2. To assist individuals acquire experience in organisational activities, of varying and increasing responsibilities.

For an employee to grow into higher positions he / she have to widen his / her awareness beyond his / her limited function. This opportunity is provided by career path planning. Career paths charts are worked out for incumbents in different job dusters.

These charts will map out the positions through which, a new entrant will be moved, within a specified period of time. Such career paths are drawn so that, all employees will have the same opportunity and exposure.

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Exceptions can be made to suit individual preferences or unique concerns, being understood what such changes may imply. For example, it may be stipulated that for promotion from one cadre to another among other things, experience in at least two different functional departments are necessary, so if an employee does not accept an offer to move, he / she may be at a disadvantage. He / she may accept the disadvantage, because he/she wants to specialise, in a particular function, or a shift is not convenient.

Career paths; usually seek to move people through:

1. Different functions in banking, like agriculture finance, industrial finance, priority sector, foreign exchange, treasury management, planning and development, personnel management, loan department, recovery of loans department etc.

2. Different levels of offices like rural / semi-urban / urban / metropolitan branch, regional office and various departments in Head Office.

3. Different places or cities

It is possible, that a legal expert may choose to specialise in legal function / personnel expert may like to specialise is industrial relations only and take opportunities as they come along in that function, not seeking prospects in other operations.

But such persons would need exposure to other functions viz., loan, recovery, deposit marketing, customers’ services etc. so that they have a total perspective of operations. But such exposure need not be deep enough to let him/her team, all the manner.


What is Career Planning in HRM – 5 Characteristics: Development of Human Resources, Involvement Survey of Employees Abilities and Attitudes and a Few Others

The main characteristics of career planning are as under:

1. Development of Human Resources – It is a process of developing human resources rather than an event. It is not an end in itself. Instead, it is a mean of managing people to obtain optimum results.

2. Involvement Survey of Employees Abilities and Attitudes – A survey of employee’s abilities and attitudes is done under career planning. It becomes possible, therefore, to group together people talking on a similar wavelength and place them under supervisors who are responsive to that wavelength. This results in more homogeneous or cohesive work teams. The organisation can identify the employee who can be promoted from within.

3. Participative Process – It is a participative process and under it, job assignments are based on merit alone. This helps to make improvement in the morale and productivity of employee.

4. Pervasive Process – Generally, career planning is an individual’s responsibility. But it is the responsibility of an organisation to provide guidance and counselling to its employees in planning their careers and in developing and utilising their knowledge and skills. Goals of employees should be integrated with the organisational goals.

5. Continuous Process – Due to an ever changing environment career planning is a continuous process.


What is Career Planning in HRM – 5 Salient Features of Career Planning

Career planning is the systematic process by which one selects career goals and the path to these goals. From the organisation’s viewpoint, it means helping the employees to plan their career in terms of their capacities within the context of organisation’s needs.

It involves designing an organisational system of career movement and growth opportunities for employees from the employment stage to the retirement stage. Individuals who can fill planned future positions are identified and prepared to take up these positions.

It is a managerial technique for mapping out the entire career of young employees. It tells an individual employee as to where he will be in the organisation say, after five years and ten years and what the prospects of growth are in an organisation. For example, an MBA may be offered the following career plan by an industrial enterprise.

The salient features of career planning include the following:

(i) Career planning is a process of developing human resources rather than an event.

(ii) It is a continuous process due to an ever changing environment.

(iii) It is not an end in itself but a means of managing people to obtain optimum results.

(iv) It is the responsibility of the organisation to provide guidance and counselling to its employees in planning their careers and in developing and utilising their knowledge and skills.

(v) The basic aim of career planning is integration of individual needs and organisational needs.


What is Career Planning in HRM – 3 Important Elements: Preparation of Job Inventory, Preparation of Personnel Inventory of Current and Anticipated Manpower Resources and a Few Others

The following are the important internal and external elements of career planning:

Element # 1. Preparation of Job Inventory:

Job inventory position gives information about the duties, responsibilities and functions of each job and the requisite academic qualification, training and skills and personality traits essential for performing the job. Information collected on various positions would help subsequent development of career and placement of personnel who will best meet job requirements.

Element # 2. Preparation of Personnel Inventory of Current and Anticipated Manpower Resources:

Such an inventory of manpower resources is very useful to the organisation in identifying weaknesses in personnel and thereby organising a management development programmes. This inventory provides a scientific basis for planned career progression and selection of eligible personnel for career advancement and promotion.

Element # 3. Career Planning and Development:

It is very important from organisation point of view to take into account both the short term and long term goals and aspirations of the individuals at the time of developing the career programme which will help the employees in showing career paths towards the attainment of their goals. The development of career paths will guide the employees in self-development from low level career upto higher level career.


What is Career Planning in HRM – 8 Principles for Effective Career Planning

Systematic career planning offers a large number of benefits to the individual as well as to the organisation. To ensure the success of such activity, a number of steps should be taken.

These are as follows:

1. For career planning, efforts to be effective, consistent, support and help from the top management must be received.

2. The corporate goals must be laid down clearly. It is not possible to develop appropriate goals for human resources, if the management is not sure about the corporate goals.

3. There must be appropriate rewards for the promising employees as well as managers. Employees must be made willing to expand their abilities and managers must be willing to coach, counsel and share their knowledge with employees.

4. Every effort must be made to put the employees on the job for which they are best suited. If a talented employee is put on a job below his standard, he will quit in frustration as soon as he gets the opportunity.

5. The career paths for different employees should be laid down clearly. Fast promotions should be made for talented people.

6. Career planning efforts should be carried out on a continuous basis, keeping the changing needs of the employees and the organisation in mind.

7. A record of career movements of employees must be kept and periodic assessment of who has gone where should be made.

8. There should be publicity of the career opportunities in the organisation, so that all the employees become aware of these.


Career Planning in HRM – 4 Step Process : Self-Appraisal, Identify Opportunities, Set Goals, Prepare Plans and Implement Plans

The steps in the career planning process are:

Step # 1. Self-Appraisal:

The starting point of career planning is get to know oneself. What kind of a person I am? What skills do I possess? What are my values and interests? What are strengths and limitations?

A good introductory exercise in this area would be to ask the individual to write his obituary as he would like it to appear x years hence upon death. The individual is asked to write down what he would like others to remember him by? What did he always want to do but never found time or opportunity to do? What are his life and career concerns?

Another exercise to assist in self-analysis requires the person to identify his or her strengths and weaknesses in regards to technical, interpersonal, communications, administrative and personal skills. He is then asked to indicate the degree of importance he attaches to such jobs characteristics as autonomy, security, affiliation with others, financial rewards, and influence over others.

Next is asked to describe jobs he has held that are most and least rewarding. Finally he is asked to describe his ideal next job.

Another means of finding out information about one’s self is to take aptitude and vocational interest tests. These are administered by career counselling centres at school and colleges.

Step # 2. Identify Opportunities:

One’s skills, interests, and values should be related to career opportunities. Although some would argue that there is always room for one more good person in a declining occupation, those choosing this course of action ought to recognise they will have a “tough row to hoe”. This course is like trying to swim upstream.

It is a good idea to study trends in the economy, population demographics, technology, and public policy because these shape the future job market.

The personnel office should publish information regarding jobs within the organization. This can take the form of organization chart, lists of titles, and actual description of jobs classified according to pay level, department, and location. The personnel office should also publish the requisite qualification for each of these jobs.

Job openings, as they occur can be announced through bulletin boards, notices, interoffice announcements and through advertising media like newspapers, televisions etc. Many technical and professional societies publish information about career in their specialities.

Step # 3. Set Goals:

After the individual has appraised personal strength, weaknesses, interests and values and after obtaining knowledge of job trends and opportunities, career goals can be properly established. This will require the setting of short-term, intermediate and long-term goals. Goals that lead to growth should be challenging so that the individual gains new skills and outlooks. The goals should be consistent with one’s capabilities and compatible with one’s self-image.

Step # 4. Prepare Plans:

In thinking through the measures one will need to take to meet one’s goals it is advisable to consult with one’s supervisor and with the responsible member of the personal department. Plans may be made for any of various actions designed to achieve the career goals. Reasonably one ought to start with feasible short-term on-the-job learning experiences and useful of-the-job training activities.

As success is achieved on the early activities, bigger and longer run developmental projects can be tackled. The planning should take into account the special needs of the person such as – skills and experiences required to reach the various goals.

Step # 5. Implement Plans:

For implementation of one’s plans, it is most desirable that the organizational climate be supportive. This means that top-level management must encourage all echelons of management to help their subordinates develop their careers.

Actions to implement the plans may include special project assignments, temporary job transfers, filling in for the boss’s vacation, in-service training classes, self- study reading assignments, assignment to a special task force and evening classes in an area college.


What is Career Planning in HRM – 9 Major Pre-Requisites

1. There should be strong commitment of the top management in career planning, succession planning and development.

2. The organisation has to frame clear cut and specific corporate goals.

3. The employees in an organisation should be self-motivated, committed, hardworking, loyal and sincere.

4. The organisation has to develop, expand and diversify its activities in a phased manner.

5. The organisation must have a fair promotion policy.

6. Proper publicity should be given to the career planning and development programmes.

7. The main objectives in selection of employees should be selecting the right man on the right place as a one of the Organizational goals.

8. The Organization must take care of the proper age composition in manpower planning and in selection of the persons.

9. The Organization should take appropriate steps to minimize carrier stress.


What is Career Planning in HRM – Guidelines

1. A recruitment policy should be formulated by taking into consideration the following aspects-

i. Prospective requirement of manpower in different category such as professional, technical, skilled and semi-skilled, etc.

ii. Whether the company is in position of offer career opening for all or only to part of the recruits.

iii. The effect of public policy and legal/regularity conditions on recruitment and selection, particularly preferences in employment to be given to the handicapped, physically disabled and members of backward classes, schedule castes and tribes.

iv. To what extent management will emphasis internal and external sources of recruitment.

2. Promotion policy should be formulated in conformity with the internal and external sources of recruitment promotion plans may be in the form of promotional charts or opportunity charts which must be showed by lines and arrows connecting various jobs, the lines of advancement upto and away from each job.

3. There is a relation between transfer policy and career planning. One is related with remedial transfer, is an employees performance is not satisfactory and he is more suitable for another job, remedial transfer takes place, where his or her capabilities can be better utilized.

The second objective related to the career planning with versality transfer in which an employee is transfer from one job to another to enable him to grain varied and broader work experience. Proper provision should be made for both of the transfer in transfer policy.

4. One more prerequisite of career planning is the existence of a climate of mutual confidence and trust between the supervisor and his subordinate. Free discussion between them must be done on how to improve the skill, knowledge, attitude, employees needs and opportunities for personal growth and development. Promotion, transfer, suggestions for improving the organisations in creating its benefits developing mutual understanding between them and so on.


What is Career Planning in HRM – 7 Important Advantages

There are several advantages of career planning given as under:

(1) Whenever career planning is pursued as an HRD effort by the management employees will work with loyalty, commitment to their assignment ultimately benefited to the organisation.

(2) Training and development programme will highly maintain to the employees, because training will improve their potential capabilities.

(3) Career plans and opportunities for advancement, enhances the morale of the employees.

(4) Designing of an open, non-evaluative, performance appraisal system and its implementation makes the career planning work easier ad helps in assessment of promotability of an employee and ascertaining the level of responsibility which an employee can execute.

(5) Self-appraisal by employees is good in view of career prospects.

(6) The methods and content of training programmes should be in accordance with the career prospects of employees.

(7) Counselling is likely to be more convincing and fruitful if it is administered in the light of career plans and opportunities of advancement.


What is Career Planning in HRM – 6 Main Limitations

1. Not suitable for small organizations and particularly for ownership ventures

2. Not suitable for unskilled and semi-skilled jobs (like what reported for employees working in the garments industry)

3. Long-term planning not feasible due to financial constraints and unfavourability of the business environment (economic conditions)

4. Political intervention and union pressurization

5. Careers in some sectors do not have much scope for advancement

6. Technological and economic factors may lead to declining stage to some career.


What is Career Planning in HRM – Requisites for Making Career Planning Effective

i. Top management support

ii. Growth and expansion

iii. Clear goals

iv. Proper selection

v. Motivated and hardworking staff

vi. Proper age balance

vii. Management of career stress

viii. Fair promotion policy

ix. Adequate publicity

Effective Career Planning:

Systematic career planning efforts offer innumerable benefits to both the individuals as well as to the entire organization.

To ensure successful career planning, a number of steps should be taken, these include:

1. Support – Career planning efforts must receive consistent support, commitment and assistance from the top management of the organization.

2. Goals – The corporate goals must be laid down clearly in terms of career development opportunities in the organization.

3. Reward-performance – Employees must be willing to expand their abilities, trainers must be willing to coach, counsel and share their knowledge with the employees. There must be appropriate rewards for people from both sides who show promise.

4. Placement – Every effort must be made to put employees on jobs that are in tune with their capabilities. If a talented employee is put on the routine job, he will quit in frustration.

5. Career Paths – The career paths for different types of employees must be laid down clearly. First the organization should track promotions for talented employees, seniors could be used on jobs requiring experience and judgement, juniors could be used for jobs that demand routine application of rules and procedures etc.

6. Continuous Tracking – Career planning efforts should be carried out on a continuing basis keeping the changing needs of the employees and the organization in mind. A record of career movements of employees could be generated and maintained by the effective use and implementation of a HRIS.

7. Publicity – Everyone should be aware of the career opportunities within the organization.