Financial Aspects of Career Planning
16/05/2020|
A |
B |
| Job | Work that you do mainly to earn money |
| Career | Is a commitment to work in a field that you find interesting and fulfilling |
| Standard of living | A measure of quality of life based on the amounts and kinds of goods and services a person can buy |
| Trends | Developments that mark changes in a particular area-indicate that some people are making career decisions that allow them to spend more time with their families or to enjoy their hobbies and interests |
| Potential earning power | The amount of money you may earn over time. |
| Aptitudes | Are the natural abilities that people possess |
| Interest inventories | Are tests that help you identify the activities you enjoy the most. |
| Demographic trends | Are ways in which groups of people change over time? |
| Service industries | Those that provide services for a fee, will offer some of the greatest employment potential in coming years |
| Internship | Is a position in which a person receives training by working with people who are experienced in a particular field |
| Cooperative education | Programs allow students to enhance classroom learning with part-time work related to their majors and interests |
| Networking | Is a way of making and using contacts to get job information and advice |
| Informational interview | A meeting with someone who works in your area of interest who can provide you with practical information about the career or company you’re considering |
| Resume | one page document that summarizes a person’s skills, education, experience, and achievements |
| Cover letter | Sent with the resume to provide information about your qualifications and why you are interested in the job. Also, to help you get an interview. |
| Cafeteria-style employee benefits | Programs that allow workers to choose the benefits that best meet their personal needs. |
| Pension plan | A retirement plan that is funded at least in part by an employer |
| Mentor | An experienced employee who serves as a teacher and counselor for a less experienced person. |
Need for Career Planning:
Career Planning is necessary due to the following reasons:
- To attract competent persons and to retain them in the organization.
- To provide suitable promotional opportunities.
- To enable the employees to develop and take them ready to meet the future challenges.
- To increase the utilization of managerial reserves within an organization.
- To correct employee placement.
- To reduce employee dissatisfaction and turnover.
- To improve motivation and morale.
Process of Career Planning:
The following are the steps in Career Planning:
- Analysis of individual skills, knowledge, abilities, aptitudes etc.
- Analysis of career opportunities both within and outside the organization.
- Analysis of career demands on the incumbent in terms of skills, knowledge, abilities, aptitude etc., and in terms of qualifications, experience and training received etc.
- Relating specific jobs to different career opportunities.
- Establishing realistic goals both short-term and long-term.
- Formulating career strategy covering areas of change and adjustment.
- Preparing and implementing action plan including acquiring resources for achieving goals.
Pre-requisites for the success of career planning.
- Strong commitment of the top management in career planning, succession planning and development.
- Organization should develop, expand and diversify its activities at a phased manner.
- Organization should frame clear corporate goals.
- Organization should have self-motivated, committed and hard working employees.
- Organization’s goal in selection should be selecting the most suitable man and place him in the right job.
- Organization should take care of the proper age composition in manpower planning and in selection.
- Organization should take steps to minimize career stress.
- Organization should have fair promotion policy.
- Organization should publicize widely the career planning and development programmes.
Advantages of Career Planning:
For Individuals:
- The process of career planning helps the individual to have the knowledge of various career opportunities, his priorities etc.
- This knowledge helps him select the career that is suitable to his life styles, preferences, family environment, scope for self-development etc.
- It helps the organization identify internal employees who can be promoted.
- Internal promotions, upgradation and transfers motivate the employees, boost up their morale and also result in increased job satisfaction.
- Increased job satisfaction enhances employee commitment and creates a sense of belongingness and loyalty to the organization.