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4349 The World without Bankruptcy Laws

Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks. When companies take risks, some of them succeed, whereas others fail. Hence failure is a natural part of the business. However, many critics of bankruptcy laws believe that there isn’t a need for an elaborate […]

4348 The Wirecard and Infosys Scandals are a Lesson on How NOT to Treat Whistleblowers

What is the Wirecard Scandal all about and Why it is a Wakeup Call for Whistleblowers Anyone who has been following financial and business news over the last couple of years would have heard about Wirecard, the embattled German payments firm that had to file for bankruptcy after serious and humungous frauds were uncovered leading […]

4347 Why the Digital Age Demands Decision Makers to be Like Elite Marines and Zen Monks

How Modern Decision Makers Have to Confront Present Shock and Information Overload We live in times when Information Overload is getting the better of cognitive abilities to absorb and process the needed data and information to make informed decisions. In addition, the Digital Age has also engendered the Present Shock of Virality and Instant Gratification […]

4346 Why Indian Firms Must Strive for Strategic Autonomy in Their Geoeconomic Strategies

Geopolitics, Economics, and Geoeconomics In the evolving global trading and economic system, firms and corporates are impacted as much by the economic policies of nations as they are by the geopolitical and foreign policies. In other words, any global firm wishing to do business in the international sphere has to be cognizant of both the […]

4345 Why Government Should Not Invest Public Money in Sports Stadiums Used by Professional Franchises

In the previous article, we have already come across some of the reasons why the government should not encourage funding of stadiums that are to be used by private franchises. We have already seen that the entire mechanism of government funding ends up being a regressive tax on the citizens of a particular city who […]

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The purpose of organization assessment programs is to evaluate the potential of employees for growth and development within the organization. Many organizations such as Johnson & Johnson, Ford, Intel and IBM use such programs to fulfill their staffing requirements. Since these organizations are known for continuous innovation, they need special target groups in order to handle their very special department. These specially formulated teams consist of those individuals who have greater employability and are able to work under pressure. To speed up high-priority development of new products and innovation of entirely different products, highly competent individuals are required. In order to fulfill their staffing requirements, these organizations take help of assessment programs.

Organizational Assessment Programs

  • Assessment Centers: Assessment centers are popular decision-making tools that are used by most companies including Pratt & Whitney, AT & T, Sears Reobuck & Co., TVA, JC Penney, IBM, GE and Bendix. All the individuals (participants) in assessment centers are engaged in a variety of exercises and put in different situations including tests, group discussions, interviews, in-baskets and business games. Their performances are evaluated by the experts. After that a panel of trainers gives them an in-depth feedback on their strengths and weaknesses. They then are given an opportunity to improve their skills and set their future career goals.

  • Psychological Testing: Psychological testing consists of written test that help individuals as well as organizations understand their personality, career interests, work attitudes, vocational interests and other personal characteristics. It reveals their career needs and preferences and then they are given jobs that suit their personality as well as skills and competencies.

  • Promotability Forecasts: Promotability forecasting is a tool that helps organizations is identifying the individuals with exceptionally high potential to perform different types of jobs. This technique is used in making early forecasts. Once individuals are identified, they are made to attend conferences and training programs and other relevant developmental experiences in order to groom them for higher positions. Several companies have different programs to groom different groups of employees. Along with this, high potential employees are given developmental assignments that are a real test for them.

  • Succession Planning: Succession planning is a formal process with an aim to groom lower level individuals to replace next-higher level individual in case he or she leaves the organization or gets retired.

    The process involves continuous review top executives and the next lower level employees in order to determine whether he or she is the right backup for the senior executive or not. This is the most important exercise which often takes several years in grooming the next person for the senior position.

    It includes overall development of the selected individual and continuous review of his or her performance. This is a common assessment tool in Fortune 500 companies that choose their CEO by the same process. Organizations create a pool of talented employees who have high leadership potential. They are put to different jobs in different situations and are evaluated by a panel of experts. The process is usually restricted to senior level management only.

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