Career Development At Electronic Applications ✓ Solved
Career Development At Electronic Applicationselectronic Applications C
Electronic Applications Corporation is a major producer of silicon chips for the computer industry. It is located southeast of San Francisco in an area of high technology firms. Since its founding in 1972, the company has grown rapidly in terms of sales and profits, thus enhancing its stock price many times over. However, human resource policies have tended to lag behind company growth. Emphasis has been on reactive policies to meet the requirements of external organizations such as the federal government.
Human resources have not been a high priority. Recently, Harold Sweeney has been hired as Director of Human Resources for the company. Sweeney had previously served as an Assistant Personnel Director for a large “blue-chip” corporation in southern California. He took his present position not only because of an increase in pay and responsibility, but also because of what he termed “the challenge of bringing this company from a 1950s human resource mentality to one more compatible with the realities of 1990s.” Sweeney has been on the job for four months and has been assessing the situation to determine the more significant human resource problems. One significant problem seems to be high turnover among electrical engineers who work in Research and Development.
This is the core of the research function and turnover rates have averaged about 30 percent per year over the past three years. In assessing the cause of the problem, Sweeney checked area wage surveys and found Electronic Applications paid five to eight percent above the market for various categories of electrical engineers. Since the company did not have a formal exit interview system, he could not check out other possible explanations through that mechanism. However, through informal conversations with a large number of individuals, including the engineers themselves, he learned that many of the engineers felt “dead-ended” in the technical aspects of engineering. In particular, the Research and Development Department had lost some of the younger engineers who had been considered to be on the “fast track.” Most had gone to competitors in the local area.
One particular Research and Development employee who impressed Sweeney was Helen Morgan. Helen was 29 years old, had a B.S. degree in Electrical Engineering from California Institute of Technology, and was studying for her M.B.A. at the University of Santa Clara at night. Helen had been employed for seven years, three in an entry-level engineering position and four as a section chief. The latter promotion was the highest position in Research and Development other than the position of Director of Research and Development. Helen claimed that “the company doesn’t really care about its good people.” In her view, the present director, Harry James, doesn’t want to allow his better people to move up in the organization.
He is more interested in keeping them in his own department so he can meet his own goals without having to orient and train new people. Helen also claimed she was told she “has a bright future with the company” by both James and the former Personnel Director. Her performance appraisals have been uniformly excellent. She went on to criticize the company for using an appraisal form with no section dealing with future potential or future goals, no rewards for supervisors who develop their subordinates, no human resource planning to identify future job openings, no centralized job information or job positioning system, no career paths and/or career ladders, and attitudinal barriers against women in management positions.
Sweeney checked out the information Morgan had provided him and found it to be accurate. Moreover, he heard through the “grapevine” that she is in line for an excellent position with a nearby competitor. Clearly, he has an even greater challenge than he had anticipated. He realizes he has an immediate problem concerning high turnover of certain key employees. In addition, he also has a series of interconnected problems associated with career development. However, he is not quite sure what to do and in what order.
1. Describe the nature and causes of the problem faced by Mr. Sweeney.
2. What additional questions should Sweeney ask or what additional information is needed before proceeding toward a solution to this problem? Why?
3. What are the individual and organization benefits of a formalized career development system?
4. If Sweeney decides to develop a formalized career development system for Electronic Applications, what components or types of service should be offered? Why?
5. Should the career development activities be integrated with other human resource management activities? If yes, which one? Why?
6. What criteria should Sweeney consider to evaluate good candidates for promotion? What criteria could be used to evaluate the performance of supervisors in the development of their subordinates?
Paper For Above Instructions
The challenges faced by Harold Sweeney at Electronic Applications Corporation are multi-faceted, rooted primarily in high turnover rates among electrical engineers, particularly within the Research and Development department. This turnover has averaged about 30 percent per year, which is alarming for any organization but especially for one that relies heavily on innovative engineering talent. The primary nature of this problem appears to stem from a lack of career development opportunities for the engineers. Informal feedback from employees suggests feelings of stagnation and a perception that their career progression is stifled. Employees feel they have no clear career path and that their contributions are not valued. This disconnect between the employees’ aspirations and the company’s policies contributes significantly to the turnover problem (Cappelli, 2008).
In order to effectively address these issues, Sweeney must ask additional questions to diagnose the root causes accurately. First, he should explore specific reasons why engineers feel “dead-ended.” Is it a lack of training, mentorship, or support from management? Secondly, Sweeney should inquire about the role of management practices in the department that may be preventing upward mobility. For example, are there barriers in the organizational structure or culture that deter managers from promoting talent? Understanding the responses to these questions will help Sweeney to grasp the entire scope of the issues (Noe, 2017).
A formalized career development system can offer numerous individual and organizational benefits. For individuals, such a system provides clarity on career progression, enhances skills through targeted training, and aligns personal goals with organizational objectives. Employees are more likely to remain loyal to a company that invests in their professional development (Huang et al., 2018). For the organization, career development initiatives can lead to higher employee satisfaction, lower turnover rates, and improved overall productivity. Companies that promote from within also tend to have reduced hiring costs and foster a strong employer brand in the marketplace (Saks, 2019).
If Sweeney opts to develop a formalized career development system, various components should be integral to the program. First, a mentoring program could be established to pair less experienced engineers with seasoned professionals, promoting knowledge transfer and career guidance. Additionally, having structured career paths (e.g., technical versus managerial tracks) can help employees visualize their growth opportunities. Regular performance appraisals that focus on future potential and personalized development plans should also be included, along with workshops on soft skills and leadership (Eisenberger et al., 2019). Finally, leveraging technology through a centralized job information system can help employees better navigate available opportunities within the organization.
Moreover, Sweeney should consider integrating career development activities with other human resource management processes, such as performance management and succession planning. Integration ensures that career development is not viewed as a standalone initiative but rather as part of a broader approach to managing talent. For example, performance reviews should feed into career development planning, ensuring that employees' aspirations and performance are aligned (Dyer & Elias, 2019).
When considering candidates for promotion, Sweeney should evaluate both technical skills and soft skills, such as leadership and teamwork abilities. Moreover, criteria like adaptability, innovation, and track record in mentorship or training of others should also be taken into account. These dimensions not only foster individual performance but contribute to a collaborative and innovative organizational culture (Zahra & George, 2002). To evaluate supervisors’ performance in developing their subordinates, metrics such as employee retention in their teams, progress of team members in career paths, and successful initiatives led by their supervisees can provide valuable insights.
Addressing the multifaceted issues surrounding career development within Electronic Applications is crucial for the company to retain its top talent and foster a thriving work environment. Given Sweeney's extensive observations, developing a robust career development system and integrating it with existing HR practices pose viable paths forward. With these strategic implementations, the organization stands to benefit from enhanced employee engagement, reduced turnover rates, and a stronger competitive advantage.
References
- Cappelli, P. (2008). Talent Management for the Twenty-First Century.
- Dyer, L., & Elias, S. (2019). The role of HRM in career development: A literature review.
- Eisenberger, R., Stinglhamber, F., & Vandenberghe, C. (2019). Perceived Organizational Support: A Review of the Literature.
- Huang, J., et al. (2018). The effects of career development practices on employee retention: A study of IT companies in China.
- Noe, R. A. (2017). Employee training and development.
- Saks, A. M. (2019). The role of social and organizational factors in promoting career development: A review.
- Zahra, S. A., & George, G. (2002). Absorptive Capacity: A Review, Reconceptualization, and Extension.