Page 688 - Business Principles and Management

Chapter 25 • Developing an Effective Organization

25.3 Career Development

Goals Terms
• Describe the requirements for a • career path • career centers
career development program. • individual career
• Identify the specific career plan
development responsibilities of
various groups in a business.

The Importance of Career Development

In the past, many companies were short-sighted when they planned for their
employment needs. When a position was vacant, they would begin the recruit-
ment and selection process. If they no longer needed certain employees, they
might terminate those employees without considering future employment needs.
Those procedures were based on the belief that companies could easily find the
employees they needed. Those companies did not view employees as a particu-
larly valuable resource.

CHANGING VIEWS OF EMPLOYEES
Successful businesses view their relationships with employees very differently
today. They realize that it is not easy to find employees with the required quali-
fications. It is also very expensive to hire and train a new employee. Compa-
nies invest in employees and want to get the greatest value from them. That
occurs when companies hire employees with skills that closely match the needs
of the job, train them, and then keep them happy, so they will stay with the
company for a long time. Companies following this new philosophy recognize
that the knowledge and performance of their employees are major factors in
their success.
Changing technology requires employees to update their skills. For example,
not many years ago, businesses processed most information manually, using
typewriters and calculators. Today, companies process information with com-
puters. Auto mechanics used to rely on hand tools and their own knowledge
and observational skills to repair automobiles. Now they have access to a vari-
ety of electronic tools, machines, and computerized diagnostic equipment.
Every business has similar examples of new skills that are required of employ-
ees. It is not possible to be successful with the old equipment and old skills.
To get the needed skills, businesses offer training to current employees when
new technology requires it and search for new employees with up-to-date
skills to fill vacancies.
In the scenario at the beginning of the chapter, James Lane had been a very
valuable employee to Alliance Industries for many years. Even though the
company was undergoing major changes, it was attempting to include James
in its plans by offering him another job and the needed training to prepare for
that job.

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