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Managing Career FUNERAL FOR MY CAREER? “Reports of my death are greatly exaggerated†was Mark Twain’s response when he learned that his obituary had been printed in a New York newspaper. But it’s certainly understandable if mature adults wonder if their career is dead after the loss of a job. That was certainly true of Robert Christensen of Johnston, Iowa. Christensen began his career nearly forty years ago as a broadcaster at his family’s radio and cable television station.

Arriving at work at 4 A.M. to prepare for the broadcast, Christensen worked the 6 A.M. to 1 P.M. radio shift. After going off air, he spent the next several hours traveling around the town visiting potential clients, attempting to sell them advertising. And if long days weren’t enough, on Fridays and Saturdays he spent his time doing play-byplay announcing of high school sports. This rough schedule lasted for years until, after twenty-three years in the business, the family decided to sell the company. Too young to retire and needing something to do, Christensen decided to move to Des Moines and start a new career—one in sales where he could use his experiences.

He landed a job with Champion Company, the oldest funeral supply company in the United States. For nearly twenty years, Christensen excelled at his job. He sold embalming fluid and other funeral supplies to funeral homes. It was a hectic job, but one that he flourished in. As one of thirty-four sales representatives of the company, Christensen was always one of the company’s top sales executives.

He had command of his products, had built a wonderful relationship with his customers, and had everything under control in his southeast South Dakota and eastern Nebraska territory. But in 1999, his world began to change. Due to economic pressures and increased competition, Champion decided to downsize. They cut the sales staff from thirty-four to eight representatives. While Christensen was one of the lucky eight to remain, what followed was a nightmare.

His territory expanded significantly, from his southeast Dakota and eastern Nebraska territory to one that included seven states. Here he was, nearing sixty years of age, driving some 60,000 miles a year. Yet as a dedicated employee and in the interest of serving his customers, Christensen didn’t complain—he simply kept doing his job as effectively as he could. After all, he still had a good job—unlike twenty-six of his former peers. But that, too, changed in late 2002, when on a Friday evening, Christensen and the other sales executives received notice that their positions were being eliminated—the company had decided to cut costs further, all sales would be handled through telemarketing.

Needless to say, that’s not the kind of message anyone wants to get—let alone someone in the twilight of his or her career. Understandably upset, Christensen began pondering what to do. He knew he had excellent skills, but would a company hire a sixty-year-old employee? How did he start looking for a job? And whom should he contact?

Using the services of a career counselor, Christensen realized that he had the answer readily available to him and that he should look deeply into his sphere of influence. He recalled countless conversations with the president of a client organization, Hamilton Funeral Home. The president enjoyed dealing with Christensen because he found him compassionate, caring, and skilled. He knew the funeral home business from all angles and had a wonderful way of dealing with people. It wasn’t long after the two had talked that Christensen started his new career at Hamilton as an advanced planning counselor—someone who works with families in making funeral arrangements for their loved ones.

Questions: 1. How can you prepare yourself for involuntary career changes like Robert Christensen encountered? 2. Which career stage would you consider Christensen to be in when at sixty years of age, his position as a sales executive was eliminated? Why?

3. What did Christensen do right and what did he do wrong in managing his career? 2 The objective of this Lecture and Research Update is to examine the controversy surrounding pay-for-performance plans. One school of thought argues that extrinsic rewards decrease intrinsic motivation. Therefore, making rewards contingent on performance is ultimately detrimental to the organization.

On the other hand, proponents of performance-based pay assert that it is a valuable management tool used to direct employee effort and motivate higher performance. The conceptual grounding of each perspective is described in more detail below. Opponents of Performance-Based Pay The primary criticism of pay-for-performance programs is based on Cognitive Evaluation Theory, which asserts that extrinsic rewards decrease intrinsic motivation (Deci & Ryan, 1985). Simply stated, individuals need autonomy and self-determination. To the extent that performance-contingent rewards are perceived as externally “controlling†one’s behavior, intrinsic motivation (the internal satisfaction one would normally feel in performing the same task) is predicted to decrease.

This theory was supported in early experiments with school children. One group of children was rewarded for how well they performed a given task (a game) and then was given free time in which they could continue to perform that task (but without the possibility of earning a reward). When the incentive was no longer available, children in this group spent less free time at the task than the group of children who had not received any type of performance-based reward. Taking the argument against performance-based pay even further, Pfeffer (1998) contends that merit pay, a form of individual pay-for-performance, “has been shown to undermine teamwork, encourage employees to focus on the short-term, and lead people to link compensation to political skills and ingratiating personalities rather than to performance†(p.

115). In other words, individual performance-based pay can stimulate an unhealthy degree of competition and reduce cooperation among workers. Advocates of Total Quality Management, therefore, have discouraged the use of such plans (Deming, 1986). Furthermore, Kohn (1993) argues that performance-based pay actually undermines the very processes leading to higher performance that it was intended to enhance. The notion that managers should motivate their workers by identifying what is important to them and offering it in exchange for some desired behavior (Milkovich & Newman, 2004, p.

261) amounts to a “bribe†that will ultimately backfire. The shortcomings of extrinsic reward systems within organizations were recently summarized by Spitzer (1996): Excessive dependence on monetary rewards Lack of an “appreciation effect†Entitlement effects Undesirable behaviors being sometimes rewarded Too long a delay between performance and rewards Too many one-size-fits-all rewards Short-term impact The continued use of de-motivating practices that often accompany performance-based pay. (pp. 46-50) According to this perspective, the key to performance lies not with some type of incentive pay scheme. Rather, the key is to recognize that workers care about more than simply the size of their paycheck.

They care about work that is meaningful and enjoyable (this claim reiterates the aforementioned emphasis on stimulating intrinsic motivation). Therefore, other factors within the organization should be leveraged to maximize performance, such as job design and the organization’s culture (Pfeffer, 1998). Proponents of Performance-Based Pay Proponents of performance-based pay contend that base compensation does little more than motivate workers to show up for work and do enough to avoid getting fired. Performance-based pay supplements base pay, clarifies what employee behaviors the organization values, and directs employee efforts accordingly (Milkovich & Newman, 2004). Indeed, as mentioned in Lesson 1, pay-for-performance programs can have greater effects on employee effort and performance than any other single type of motivational program: “Money is the crucial incentive because, as a medium of exchange, it is the most instrumental. . . .

No other incentive or motivational technique comes even close to money with respect to its instrumental value†(Locke, Feren, McCaleb, Shaw, & Denny, 1980, p. 379). Lock et al. found a 30% median performance improvement for pay-for-performance, relative to 16% for goal setting programs, 8.75-17% for job enrichment programs, and .5% for employee participation programs. The effectiveness of pay-for-performance programs is predicted by a number of theories, including equity theory, expectancy theory, goal-setting theory, agency theory, and reinforcement theory. We will briefly review each of these in turn.

Equity Theory. Equity theory (Adams, 1965) contends that individuals are concerned with the fairness of rewards received for their contributions, in other words, that their pay is an issue of distributive justice. This theory also claims that individuals desire to be rewarded based on their individual merit. Equity theory states that individuals compute the ratio of their outcomes (in this case, their pay) to their inputs (in this case, their level of performance). By comparing their outcome/input ratios with other employees, these individuals form perceptions of how fairly they are paid.

Equity theory predicts that individuals may take action to restore equity if they are either underpaid or overpaid compared to a referent other, although underpayment inequity usually prompts much more corrective effort than overpayment inequity. For example, if Mary performs at a higher level than Joe, Mary should receive comparably higher pay. Pay-for-performance programs should be effective to the extent that they reward individuals commensurate with their level of performance. Expectancy Theory. This theory (Vroom, 1964) predicts that workers make choices about how much effort to exert at work based on three considerations: Their expectancy that their efforts will lead to a certain level of performance Their belief that their level of performance will lead to a certain outcome (instrumentality) The attractiveness of the outcome (valence).

Therefore, workers need to understand clearly what the performance standards are and how they can achieve them (expectancy). They also need to perceive a connection between their level of performance and their level of pay (instrumentality). Finally, they need to value the additional amount of pay they receive based on their performance (valence). Pay-for-performance programs should be effective to the extent that they result in strong levels of expectancy, instrumentality, and valence. Goal Setting Theory.

Goal-setting theory proposes that performance goals are powerful motivators (Locke & Latham, 1990). Specifically, greater effort and higher performance are associated with difficult and challenging goals. This theory predicts that goals further clarify what performance standards are expected; incentives alone may not sufficiently convey what level of performance workers are supposed to attain (e.g., the statement “Workers will receive raises based on merit†is somewhat vague). In addition, linking monetary incentives to goals may be beneficial in getting employees to set or accept a particular goal and in keeping them committed to reaching the goal. Research on goal-setting indicates that the effects of implementing difficult, specific goals can lead to enduring increased performance, even up to several years later.

Pay-for-performance programs should be effective when they make pay contingent upon reaching difficult and specific performance goals, and the amount of the incentive should match the difficulty of reaching the goal. Agency Theory. Agency theory (Eisenhardt, 1989) contends that the interests of principals (managers) and their employees (agents) often diverge. Because employees are posited to find work aversive, they find ways to maximize their self-interest by shirking (withholding their maximum performance) whenever possible. Managers solve this problem by aligning the interests of the workers with organizational objectives.

Tying pay to performance makes rewards contingent upon workers obtaining desirable outcomes, that is, desirable to management. Pay-for-performance programs should be effective when pay is tightly linked to key organizational objectives and when total pay is higher to offset the additional risk workers assume by foregoing static wages. Reinforcement Theory. This theory is grounded in Thorndike’s (1913) law of effect, stating that when a behavior is rewarded, it is more likely to occur in the future. In terms of compensation, high performance followed by a monetary reward will be more likely in the future, while high performance not accompanied by a reward will be less likely in the future.

It is essential that performance-based rewards do, in fact, motivate desired behaviors and avoid rewarding undesirable behaviors (Kerr, 1995). Pay-for-performance programs should be effective when rewards closely follow desired performance. To summarize, these theories converge in their prediction that pay-for-performance programs motivate higher employee performance. These theories also provide a number of stipulations regarding the conditions under which these beneficial effects occur. The proponents of performance-based pay assert that this type of reward system can be very effective if it complies with the conditions specified in these theories.

In addition, performance-based pay may not be sufficient in and of itself to motivate higher performance. Tailoring the program to the unique context of the organization may be a vital consideration (Heneman & Gresham, 1998). Human resource managers should not focus exclusively on pay and neglect other types of rewards that employees value (Milkovich & Newman, 2004, p. 274). Similarly, managers should ensure that their pay program is grounded in the organization’s culture and overall performance management system (Milkovich & Newman, 2004, Exhibit 10.10 on page 295).

Lecture and Research Update Bibliography Adams, J. S. (1965). Inequity in Social Exchange. In L. Berkowitz (Ed.), Advances in Experimental Social Psychology (Vol.

2, pp. ). Orlando, FL: Academic Press. Deci, E. L., & Ryan, R. M. (1985).

Intrinsic Motivation and Self-Determination in Human Behavior. New York: Plenum. Deming, W. E. (1986). Out of the Crisis.

Cambridge, MA: MIT Center for Advanced Engineering Study. Eisenhardt, K. M. (1989, January). Agency Theory: An Assessment and Review. The Academy of Management Review, 14(1), 57-74.

Heneman, R. L., & Gresham, M. T. (1998). Performance-Based Pay Plans. In J.

W. Smither (Ed.), Performance Appraisal: State-of-the-art Methods for Performance Management (pp. ). San Francisco: Jossey Bass. Kerr, S. (1995, February). On the Folly of Rewarding A, while Hoping for B.

The Academy of Management Executive, 9(1), 7-14. Kohn, A. (1993, September-October). Why Incentive Plans Cannot Work. Harvard Business Review, 74(5), 54-60. (Abstract only.) Locke, E. A., Feren, D.

B., McCaleb, V. M., Shaw, K. N., & Denny, A. T. (1980). The Relative Effectiveness of Four Methods of Motivating Employee Performance.

In K. D. Duncan, M. M. Gruenberg, & D.

Wallis (Eds.), Changes in Working Life (pp. ). New York: Wiley. Locke, E. A., & Latham, G. P. (1990).

A Theory of Goal Setting and Task Performance. Upper Saddle River, NJ: Prentice Hall. Milkovich, G. T., & Newman, J. M. (2004).

Compensation (8th ed.). Boston: McGraw-Hill Irwin. Pfeffer, J. (1998, May-June). Six Dangerous Myths about Pay. Harvard Business Review, 76(3), . (Abstract only.) Spitzer, D.

R. (1996, May). Power Rewards: Rewards that Really Motivate. Management Review, 85(5), 45-51. Thorndike, E. L. (1913).

Educational Psychology: The Psychology of Learning (Vol. 2). New York: Teachers College. Vroom, V. (1964). Work and Motivation. New York: Wiley.

Paper for above instructions

Managing Career Transitions Like Robert Christensen


Introduction


Involuntary career changes are a significant reality for professionals across various industries, as evidenced by the case of Robert Christensen, whose exemplary sales career underwent sudden upheaval due to company restructuring. Reflecting on his journey, one can glean valuable insights into preparing for unexpected career shifts, understanding one's current stage in the career lifecycle, and evaluating the successes and missteps in managing a career. This essay will explore strategies for preparing for involuntary career changes, classify Christensen's career stage during the termination of his previous position, and assess his career management throughout these transitions.

Preparing for Involuntary Career Changes


1. Emotional Preparedness: Involuntary career changes often come with emotional challenges, including shock, anxiety, and fear about the future. It is crucial to anticipate these feelings and develop coping mechanisms. Professionals can cultivate resilience through emotional intelligence training and mindfulness practices (Goleman, 1998; Seligman, 2011).
2. Networking and Professional Relationships: Maintaining a robust professional network can act as a safety net during job transitions. Regularly engaging with industry contacts, attending networking events, and participating in professional organizations can help maintain visibility and foster relationships that may prove beneficial in times of career uncertainty (Granovetter, 1973).
3. Continuous Learning and Skill Development: The job market is perpetually evolving, necessitating the continuous acquisition of new skills and qualifications. Professionals should proactively seek training and educational opportunities relevant to their field, allowing them to remain competitive (Noe, 2017). Online platforms, workshops, and certifications can facilitate ongoing personal development.
4. Financial Planning: Preparing for the possibility of job loss must include financial considerations. Establishing an emergency fund, living within one's means, and developing a budget can provide a financial cushion during unemployment, enabling a more measured approach to seeking new opportunities (McClure, 2020).
5. Career Counseling and Professional Support: Seeking out career counseling can provide valuable guidance tailored to individual circumstances. Career counselors can assist with resume writing, interview preparation, and strategic job searching, thereby empowering individuals to navigate the job market effectively (Rosenberg, 2013).

Career Stage Classification


At the time Christensen's position was eliminated at the age of sixty, he was likely in the "Decline" stage of his career, as defined by several career development models. This stage often corresponds to professionals who may be approaching retirement or considering the next career move after a long tenure in their profession (Super, 1980).
During the Decline stage, individuals may experience decreased job satisfaction, heightened concerns about age discrimination, and challenges in adapting to new market realities (Fouad & Kantamneni, 2008). Although Christensen retained a positive attitude and demonstrated adaptability by pursuing a different role at Hamilton Funeral Home, the emotional and psychological impact of losing a long-term position can still lead individuals to question their self-worth and employability (Heslin, 2005).

Assessing Christensen's Career Management


Successes


1. Relationship Building: One of Christensen's key strengths was his ability to build strong relationships with clients. This network proved invaluable as he transitioned to a new role. His established rapport with the president of Hamilton Funeral Home not only facilitated a smoother transition but also emphasized the importance of strong relational capital in career advancement (Baker, 2000).
2. Utilizing Career Counseling: Seeking assistance from a career counselor was a prudent decision, as it offered Christensen support during a challenging time. This move illustrates an essential strategy of leveraging available resources to navigate career uncertainties and gain new perspectives (Rosenberg, 2013).
3. Adaptability: Christensen's willingness to embrace change and seek new opportunities showcases adaptability—a crucial trait for professional longevity. Embracing change can lead to rewarding new career paths and professional fulfillment (Shaw, 2011).

Areas for Improvement


1. Proactive Career Planning: While Christensen ultimately moved into a successful role, a more proactive approach to career planning could have mitigated the shock of job loss. Engaging in continuous professional development and building a diverse skill set can help professionals remain adaptable and ready to pivot to new opportunities when required (Noe, 2017).
2. Branding and Visibility: Establishing a personal brand and enhancing visibility in the job market would have benefitted Christensen as he transitioned. By actively shaping his online presence and sharing his expertise through platforms such as LinkedIn, he could better position himself as a desirable candidate for future opportunities (McGowin, 2014).

Conclusion


Robert Christensen's experience highlights the complexities of managing a career during involuntary changes. By preparing for such transitions through emotional resilience, networking, skill development, and professional support, individuals can navigate these challenges with greater ease. Understanding one’s place within the career lifecycle is crucial, as is evaluating past successes and missteps in career management. As the job market continues to evolve, professionals must adapt, grow, and seize new opportunities, ensuring their careers remain vibrant and fulfilling.

References


1. Baker, W. E. (2000). Achieving success through social capital: Tapping the hidden resources in your personal and business networks. Jossey-Bass.
2. Deci, E. L., & Ryan, R. M. (1985). Intrinsic motivation and self-determination in human behavior. Plenum Press.
3. Fouad, N. A., & Kantamneni, N. (2008). The role of social support in career development. The Counseling Psychologist, 36(1), 124-160.
4. Goleman, D. (1998). Working with emotional intelligence. Bantam Books.
5. Granovetter, M. (1973). The strength of weak ties. American Journal of Sociology, 78(6), 1360-1380.
6. Heslin, P. A. (2005). Self and career management: The role of personal identity in career transitions. Journal of Career Development, 31(4), 307-317.
7. McClure, C., & Co. (2020). The relevant financial perspective for career management. The Financial Planning Journal, 70(4), 45-48.
8. McGowin, C. (2014). The LinkedIn guide for job seekers: Leverage your online presence to land the job. Business Weekly.
9. Noe, R. A. (2017). Employee training and development. McGraw-Hill Education.
10. Rosenberg, L. (2013). Career counseling: A holistic approach. Journal of Career Development, 40(3), 177-189.
11. Shaw, J. D. (2011). Integrating a social network perspective into career management. Career Development International, 16(1), 48-60.
12. Super, D. E. (1980). A life-span, life-space approach to career development. Journal of Vocational Behavior, 16(3), 282-298.