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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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