Human Resource Management 15th Edition by Robert Mathis,John Jackson,Sean Valentine ,Patricia Meglich

Exercise 2

HiPo or Non-HiPo?
Identifying employees as having high potential and creating development programs tailored to their needs is not without controversy. Issues regarding the process used to identify HiPo employees, along with the process used to notify employees about their status, can pose ethical dilemmas for an organization.
The assessment of potential is part science and part art. Using methods such as manager nomination or evaluation is highly subjective. It is likely to result in some biased decisions about which employees will be enrolled into HiPo programs. In addition, relying on past performance evaluation ratings can lead to unfair choices as well. Unless the performance assessment process is valid and well grounded, too much personal discretion can influence ratings and render them ineffective for accurately measuring employee potential. To combat some problems with assessing potential, organizations are wise to adopt objective assessments administered by qualified professionals.
There is no clear best practice regarding notification and public identification of HiPo employees. In an era in which transparency is a key watchword, only a small percentage of executives describe their companies as open about how employees are selected for admission to HiPo and leadership programs. This secrecy seems to be driven by two factors-lack of management courage and concerns about managing HiPo employee expectations. Some executives worry about the fallout from broadcasting the criteria for selection around the organization. Further, they are concerned that once an employee is told that he or she is a HiPo, expectations for promotion or special treatment will exceed what the organization can fulfill.
Managing expectations of both HiPo and non-HiPo employees can best be accomplished by explaining and disseminating the selection standards. If employees understand how the decisions about entry into HiPo programs are made, they can better reconcile their own status. Mystery surrounding the process leads employees to question the fairness of decisions and suspect that the organization chooses these individuals arbitrarily.
Disclosing the names of those in HiPo programs can cut both ways. However, it is naïve to believe that employees will not figure out who is in the program and who isn't. Special training and networking opportunities, job assignments, and other obvious development practices will be offered to HiPo employees. It doesn't take others long to determine which list they are on. However, publicly acknowledging and identifying HiPos may lead to work-group dysfunction, envy, and other negative employee conduct.
Establishing valid selection criteria, assessing potential using appropriate tools, and managing employee expectations all contribute to a HiPo program that effectively navigates the ethical issues inherent in these development opportunities. After reading the section on HiPo programs, consider the following questions:
How can managers deal with expectations HiPos might have regarding their career trajectory? What can be done to keep those expectations in check?