Analysis of Challenges Faced by Graduates in a Volatile Global Economy - Coursework Example

xxx Career Management xxx xxx Within the context of the boundaryless career critically analyze the challenges faced by graduates in a volatile global economy Introduction This paper analyses the challenges faced by graduates in a volatile global economy in the context of the boundaryless career. The theoretical underpinnings of the concept are explored along with criticisms meted out since its conception. Additionally, it looks at how globalisation has impacted the traditional organisation in such a way that organisations are now operating not only outside of their physical location but are moving aspects of their operations to other locations. Furthermore, it points to the increasing need of graduates to be well rounded and be given the skills and knowledge required for them to be able to think outside of the box as well as for them to be able to apply themselves in any given situation. Theoretical Perspective The notion of the boundaryless career was introduced by Arthur (1994) and has become a very popular concept (Pringle and Mallon 2006, p. 839). According to Arthur et al (qtd. in Arthur and Rousseau 1996, p. 4) the term career refers to “the unfolding sequence of a person’s work experiences over time.” This definition indicates the importance of time. It impacts “employment stability; skills and experience gained; relationships nurtured; and opportunities encountered” Arthur and Rousseau (1996). According to Sullivan (1999, p. 457) the way we view career has changed significantly. It is tradition that the careers of most individuals will evolve within the context of one or two organisations. The essence of this idea is that an individual’s career is not confined to a particular organisation as it has been traditionally. The traditional organisational career is one in which the individual simply moves up a job ladder in a single firm without the thought of having to work for any other organisation in order to gain additional experiences. In that setting success is defined by the organisation and measured by promotions and salary increases (Sullivan 1999, p. 457). The individual is thus seen as dependent on the organisation for the rest of his or her life as the skills gained are firm specific. This is in stark contrast to the boundaryless career where skills are transferable (see Appendix). Arthur (1994, p. 296) points out that boundaryless career is the opposite of organisational or bounded careers. Pringle and Mallon (2006, p. 841) indicates that this concept was developed to distinguish itself from the ‘bounded’ – organisational career and therefore ‘to avoid the subordination of the meaning of careers’ to that which is represented in larger and more stable firms. DeFillippi and Arthur (1996, p. 116) defines boundaryless career as “sequences of job opportunities that goes beyond the boundaries of a single employment settings.” This thinking relates to and is in response to the changing economic context at the time and appears to be in keeping with some of the tenets of globalisation which is a critical factor in the challenges affecting the traditional organisational career. However, globalisation is about interdependence which would invalidate the independence assumption of the boundaryless career. Therefore, Tam and Arthur (2010) indicates that the relevance of this concept “will depend on its openness to the challenges of careers within the inherently dynamic, uncertain, and complex arena of an interdependent global economy”. Sullivan (1999) points to some important characteristics of boundaryless career when compared with traditional careers - see Appendix. As organisations make changes careers are affected. The quest for increasing profitability and in some cases, mere survival, has led firms to move certain aspects of their business to other countries and this means that jobs are also moving with them. This therefore supports the changes that will inevitably lead to boundaryless careers. According to Brown et al (2006, p.5) globalisation represents a driving force in the software, semi-conductor and financial services industry. However, as large firms move out they make way for smaller companies. Firms are increasingly looking for ways to cut costs and so outsourcing aspects of their operations are in order and results in job losses in one firm and job openings in another. Arthur and Rousseau (1996, p. 3) suggested that there are six forms of careers that are based on independence rather than dependence are as follows. Careers that involve mobility across the boundaries of separate employers like the typical Silicon Value career; Careers that draw validation or marketability outside the current employer, for example, the carpenter or the academic; Careers that depend most on external networks and information rather than internal structures; for example, that of a real estate agent Careers where hierarchical reporting and advancement principles are broken; Careers that are primarily constructed around personal and family commitments, and Careers that individuals perceive to be relatively free from structural constraints. Forret et al (2010, p. 648) indicates that the forms given by Arthur and Rousseau (1996) encapsulates both physical and psychological mobility – movements within and outside of firms and the perceptions held in relation to career options respectively. However, they see the definition of psychological mobility as more complex. Sullivan and Arthur (2006, p. 21) relates this to the ability to move as seen through the career actors mind. They point to several variations of physical mobility from self employment and temporary contract work to voluntary work, less demanding employment and the pursuit of new occupations. The Boundaryless career is significant as Arthur (1994) points to the median employment tenure for all US workers in the distant past. A recent news release from the United States Bureau of Labour Statistics suggests that the median employment tenure was 4.4 years in January 2010, up from 4.1 in 2008 (BLS 2011). However, this reflects large job losses in the last recession among less-senior workers (BLS 2011). The median tenure for workers in management, professional, and related occupations was 5.2 years which is the highest median tenure among the major occupational groups. Within this group however persons in management occupations had a tenure of 6.1 years which is similar to the figures presented by Arthur and Rousseau (1996). This may suggest that individuals are not staying very long in jobs for various reasons some of which are connected to economic turbulence including the great recession which lasted from 2008 to 2010 and is still continuing in some countries. However, the information does not indicate whether those who move on have gone on to develop their careers in another firm or through their own entrepreneurial ability. These reasons include the closure of some large firms, the expansion of some existing firms and the opening up of new and smaller firms. However, Pringle and Mallon (2003) cites the fact that the boundaryless career theory is headed in the direction of traditional career theory which is not useful to large segments of the society whose occupation do not conform to the traditional career, as previously alluded to by Fitzgerald and Betz (1994, p. 103). One of the problems with the boundaryless career and the lack of hierarchical structure is that “it’s hard to complain about gender and race discrimination or to isolate and assess blame” (Stone, qtd in IWS 2001). Challenges faced by graduates The challenges faced by graduate students are numerous; however, once they are well prepared they should be able to deal with the volatility in the global economy. Their skills are not generally firm specific and therefore the flexibility and fluidity that the boundaryless career may be best suitable for them. As countries all over the world experience rapid changes in their economic environment and the possibility of a double dip recession it is extremely important that graduates are entrepreneurial. This will help them to build their career and to make themselves more marketable. Saxenian (1996, p. 23) points out that in a volatile economic environment open labour markets and the corresponding career paths offer some very important competitive advantages over traditional corporate job ladders. Brown et al (2006) points to economic turbulence affecting industries dominated by small and young businesses which are “more volatile in creating and destroying jobs.” Graduates like anyone else have for a long time understood that networking is important to obtaining a job and moving from one firm to the next in order to benefit from new experiences and new challenges. The unemployment rate for graduates which include persons with Bachelors, Masters and Doctoral degrees was 4.2 percent for September 2011 - a reduction from 4.5% a year earlier (Bureau of Labor Statistics 2011). This suggests that most graduates in the US are finding jobs of some sort. However, these figures are for the U.S. alone and may not reflect what is happening in other parts of the world. Conclusion The boundaryless career is relevant to graduates whose training will allow them to pursue careers in keeping with their objectives. It is also very relevant to certain groups which Pringle and Mallon (2003) suggest are normally referred to as “other” and never seem to fit the traditional definition of career. Employment of graduates and a successful career will depend on the Universities relationships with businesses and the relevance of the education and training received to the changing needs of organisations, the society in which they operate and the global environment. Additionally, success will depend on the ability of graduates to apply their skills to new and different situations. References Arthur, M.B. (1994). A Boundaryless Career: A New Perspective for Organizational Inquiry Journal of Organizational Behavior. 15 p. 295-306 Arthur, M.B. and Rousseau, D.M. (1996). A Boundaryless Career: A New Employment Principle for a New Organizational Era. New York: Oxford Press Brown, C., Haltiwanger, J and Lane, J. (2006). Economic Turbulence: Is a Volatile Economy Good for America? USA: University of Chicago Press Bureau of Labor Statistics. (2010). Employee Tenure News Release. Retrieved Online. http://www.bls.gov/news.release/archives/tenure_09142010.htm. [Accessed 25th October 2011) Bureau of Labor Statistics. (2011). The Employment Situation – September 2011. Retrieved online. http://www.bls.gov/news.release/pdf/empsit.pdf. [Accessed 24th October 2011] Defillippi, R and Arthur, M.B. (1994). The Boundaryless Career: A Competency-based perspective, in A Boundaryless Career: A New Employment Principle for a New Organizational Era. New York: Oxford Press Fitzgerald, L.F. & Betz, N.E. (1994). ‘Career Development in Cultural Context: The role of gender, race, class, and sexual orientation’. in Savickas, M.L and Lent, W. (eds) Convergence in Career Development Theories: implications for science and practice. Palo Alto. California: CPP Books. Pringle, J and Mallon, M. (2003). Challenges for the Boundaryless Career Odyssey. The International Journal of Human Resource Management: 14(5). p. 839-853 Saxenian, A (1996). Beyond Boundaries: Open Labour Markets and Learning in Silicon Valley, (eds) Arthur, M.B and Rousseau, D.M., in A Boundaryless Career: A New Employment Principle for a New Organizational Era. New York: Oxford Press Stone (2001). Boundaryless Career. Cornell University: IWS Briefing Vol. 1(2) p. 1. Sullivan, S. (1999). The Changing Nature of Careers: A Review and Research Agenda. Journal of Management: 25(3). p. 457-484 Appendix Characteristics Traditional Boundaryless Employment relationship Job security for loyalty Employability for performance and flexibility Boundaries One or two firms Multiple firms Skills Firm specific Transferable Success measured by Pay, promotion, status Psychologically meaningful work Responsibility for career management organisation Individual Training Formal programmes On-the-job Milestones Age related Learning-related Adapted from: Sullivan (1999) p. 458 Read More