Financial Aspects of Career Planning

16/05/2020 0 By indiafreenotes



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:

  1. To attract competent persons and to retain them in the organization.
  2. To provide suitable promotional opportunities.
  3. To enable the employees to develop and take them ready to meet the future challenges.
  4. To increase the utilization of managerial reserves within an organization.
  5. To correct employee placement.
  6. To reduce employee dissatisfaction and turnover.
  7. To improve motivation and morale.

Process of Career Planning:

The following are the steps in Career Planning:

  1. Analysis of individual skills, knowledge, abilities, aptitudes etc.
  2. Analysis of career opportunities both within and outside the organization.
  3. 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.
  4. Relating specific jobs to different career opportunities.
  5. Establishing realistic goals both short-term and long-term.
  6. Formulating career strategy covering areas of change and adjustment.
  7. Preparing and implementing action plan including acquiring resources for achieving goals.

Pre-requisites for the success of career planning.

  1. Strong commitment of the top management in career planning, succession planning and development.
  2. Organization should develop, expand and diversify its activities at a phased manner.
  3. Organization should frame clear corporate goals.
  4. Organization should have self-motivated, committed and hard working employees.
  5. Organization’s goal in selection should be selecting the most suitable man and place him in the right job.
  6. Organization should take care of the proper age composition in manpower planning and in selection.
  7. Organization should take steps to minimize career stress.
  8. Organization should have fair promotion policy.
  9. Organization should publicize widely the career planning and development programmes.

Advantages of Career Planning:

For Individuals:

  1. The process of career planning helps the individual to have the knowledge of various career opportunities, his priorities etc.
  2. This knowledge helps him select the career that is suitable to his life styles, preferences, family environment, scope for self-development etc.
  3. It helps the organization identify internal employees who can be promoted.
  4. Internal promotions, upgradation and transfers motivate the employees, boost up their morale and also result in increased job satisfaction.
  5. Increased job satisfaction enhances employee commitment and creates a sense of belongingness and loyalty to the organization.