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IMPORTANCE OF CAREER DEVELOPMENT AS A DETERMINANT OF
ORGANIZATIONAL GROWTH
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF
THE STUDY
Career development as a phenomenon is regarded as a concern
to scholars, researchers, decision makers and human resources experts. These
stakeholders in human capital development strive to manage issues such as
recruitment, selection, training and development, promotion, and so on
emanating from career development. Further, organizations in particular
endeavor to manage career development issues and how they affect organizational
growth. However, career development is defined as “an ongoing, formalized
effort by an organization that focuses on developing and enriching the
organization’s human resources in light of both the employees’ and the
organization’s needs” (Byars and Rue, 2004). As obtained in the definition,
both the employees’ and organization’ needs are factors into career
development. Therefore, the concept of career development can be regarded as a
platform that aids employees look beyond their present jobs and prepare for
brighter future positions within organizations and sometimes outside the
organizations. This process enables organizations to have adequate, required,
and formidable human resources for their growth and relevance in the industry.
It is worthy to note that some challenges such as restructuring, mergers,
acquisitions, etc., have great impact on the approach in which employees and
organizations view career.
Career development is not a new issue, but the controversial
aspect of it, is who should be responsible for its implementation? Should it be
sole responsibility of employees or the employers? However, in the recent past,
individuals engage in personal career development (Hall, 2002) by getting
involved in personal educational advancement and professional training; which
may or may not align with their present organizational goals. On the other
hand, organizations may choose to training or develop their employees in
alignment to their present needs and also prepare them for future
organizational needs (Humphries and Dyer, 2001). Essentially, employers may not
be able to retain their trained and developed employees in this present
competitive labour market having exposed them to various training and
development opportunities, which could be detrimental to the organizational
growth
The business competition requires the company to make
innovation not only on product produced but also on services quality provided.
On the other hand, the company also must be able to defend human resources who
owned by the company because they are a component of main resources in the
company operational activities. One of ways to maintain the human resources is
giving a chance to the fairly career development. Activities in career
developmnet can be sponsored by human resources development, the manager and
been made individually without depending on company (Ivancevich and Glueck,
1989). Career development looks at the long-term career effectiveness and
success of organizational personnel (Decenzo &Robbins, 2010:211). Career
development need the involvements of organization and individual efforts. Human
resources department and manager efforts related to the organization efforts
like held training and development programs and give promotion opportunity.
According to Leibowitzet al., (1986), training is used for technical skill
taught, while development usually refer to programs that try to improve human
relations and conceptual of manager. Human resources department often hold
training and development programs for the employees because they are very
beneficial of the organization and employee. While, Simamora (2003) said that,
“promotion is transferring employee from one job to another job that has higher
level in terms of payment, responsibility and the level of organization.” So,
when an employee has a good promotion chance, he has done the development of
his career.
Workers in contemporary society are expressing a strong
desire to pursue more than just a job. They are looking for employment
opportunities that promise an extension of their interests, personality and
abilities. Then want a variety of things from their jobs besides a pay cheque
and a few fringe benefits, and their loyalty to the organization depends upon
the degree to which their employer satisfies these wants (Kent & Otte,
1982, Agba, 2004). With improved living standards, workers are no longer
satisfied to have just a job and the usual fringe benefits. They want a career
that expresses their interests, personality, abilities and that harmonizes with
their total life situation. Unfortunately, most employers have failed to
recognize this need, and the tools and experiences they provide do not enable
workers to develop in their career.
Today an individual's career is no longer tied to a single
organization, as career changes and job mobility have become common phenomena
(Rousseau, 1998). To be successful in one's career, employees today have to
balance the relationship between their desire for career growth and their
attitudes toward their current organizations. Recent research has shown career
growth opportunities to be an important determinant of employee–organizational
relationships. Organizations that provide mechanisms for employee career growth
create a mutual investment type of relationship with their employees (Tsui,
Pearce, Porter, & Tripoli, 1997), a relationship that ties career growth to
important outcomes such as organizational commitment (Weng, McElroy, Morrow,
& Liu, 2010). However, one would expect that any relationship between
career growth and employee outcomes would depend on whether the employee is
committed to pursuing a career, rather than simply holding a job, in the first
place.
Rather than considering career growth in terms of the general
utility of one's present job for future career outcomes (Bedeian, Kemery, &
Pizzolatto, 1991), we use Weng's (2010) multidimensional conceptualization of
career growth. His model suggests that career growth consists of four factors:
meeting career goals, developing one's professional abilities, and receiving
promotions, and compensation commensurate with those abilities. In essence,
this view of career growth is an individual-level, organization specific,
concept. That is, he argues that career growth is a measure of the degree to
which an individual perceives that their current organization creates an
environment in which the employee is able to meet his/her career-related needs
and reinforces those accomplishments through promotions and compensation (Weng
et al., 2010). Therefore, this study focuses on the importance of career
development as a determinant of organizational growth, a case study of indomie
plc.
1.2 STATEMENT OF
THE PROBLEM
High salaries, good working conditions, health and dental
insurance, retirement plans, stock purchase programmes, reduced work hours,
technological advancement, educational reimbursement programmes among others
might seem to be the necessary ingredients for individual happiness and
fulfillment in the world of work. Despite these benefits, there are many
employees at all levels that appear to be dissatisfied and delusion with
themselves, their work and their future. Most workers realize that in any
organizational setting, they must have opportunities for continuing growth and
advancement if they are to be satisfied. Where the employer can provide the
worker with these opportunities, a proper attitude of loyalty and satisfaction
can be developed and performance enhanced.
In the past, the word “work” often had a negative
connotation, implying something that was done for economic survival and was not
expected to provide personal employment. Most workers today are looking for a
career that means something more than just a job with the usual fringe benefits.
These problems necessitates the need to carry out a study on the importance of
career development as a determinant of organizational growth, a case study of
indomie plc.
1.3 OBJECTIVES OF
THE STUDY
The general objective of this study is to examine the
importance of career development as a determinant of organizational growth. The
specific objectives include the following:
1. To find out
the extent to which management show interest in the career development of its
employees.
2. To ascertain the relationship between career
development and employees’ commitment.
3. To investigate
the impact of career development on the productivity of indomie PLC.
4. To examine the
effects of variables such as skills, experience, promotion exercise, values and
recognition and reward have on organizational growth.
5. To know
examine the relationship between career development variables such as career
opportunities, career advancement, career counseling and employee commitment in
indomie plc.
1.4 RESEARCH
QUESTIONS
The relevant research questions related to this study include
the following:
1. What is the
extent to which management show interest in the career development of its
employees?
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