Importance of Career Development

Although the business environment has been endlessly experiencing negative changes such as economic downsizing and restructuring resulting in fewer hierarchical positions but at the same time the need for improving productivity while keeping a pace with continuously changing technology has also increased.

Organizations, therefore, instead of hiring a new individual from the market prefer to promote their already existing employee to a specific position as he or she is already aware of the organizational culture and does not need to be trained. This requires a careful succession planning of employees and developing and preparing them continuously for filling topmost designations in future.

The process of organizational career development is important for both employees and employers. There may be several unintended and undesired changes as well as consequences that can change the entire scenario. In such a situation both employees and employers must be ready to keep with the changing environment and act accordingly.

Employees continuously need to upgrade their skills and competencies to meet the current demands where as organizations must be ready with those employees who can handle the pressure efficiently and cease the risk of falling prey to the changed scenario. Therefore, understanding the importance of career development is very necessary for both the parties.

Business Environment Factors that can Bring Undesired Changes

  • Economic Downsizing: The biggest of all the factors that has badly affected the careers of millions of individuals is economic downsizing. The jobs are cut from the organizations and the fittest of all employees survive.

    If employees continuously learn new and better skills, chances are that economic conditions won’t hurt them that badly as compared to other individuals.

  • De-layering: De-layering means reclassification of jobs. This is an organizational change initiative where a company decides to reclassify the jobs more broadly. However, old reporting lines do exist in order to maintain managerial control but some jobs may be removed or cut down during the process. Again, those individuals have to leave the organization who are not competent enough to be shifted to other job with different nature.

  • Cost Reduction Strategies of the Organization: Cost-reduction strategies of the organizations are again very dangerous for those individuals who are not prepared to move on to the next level.

    If organizations have to cut down their operating costs, the employment of those individuals is at stake who are not employable or who have not performed up to the mark in past. Employees continuously need to upgrade themselves and show their talent in order to remain in the organizations till long.

  • IT Innovations: Continuous changes and upgradation in the technology is also one of the major factors that bring change. Some individuals can keep a pace with the changing technology and are always ready to learn and adopt new IT applications while some show immense resistance which is not acceptable to the organizations.

    Employees need to keep themselves updated and show willingness to accept changes as and when they occur and mould themselves accordingly.

The business changes affect both organizations and employees. The need is to understand them and find a way to cope with them effectively.


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The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.


Career Development