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Assessment centers allow trained raters to observe managers or potential managers
as they behave in various management situations. The exercises are designed to
measure competencies such as prioritizing and delegating, interpersonal skills, business
acumen, communication, and long-term planning. Assessment centers typically take
a day to a few days to complete.
The information gathered during an assessment center is rich in detail and valuable
behavioral examples. This information can be used for selecting new managers,
identifying promotable managers, or creating succession plans or developmental
programs. Whatever the intended application, assessment centers have consistently
generated impressive results:
A division of General Motors used assessment centers to identify developmental
needs in 100 of their senior managers. This resulted in a 21% improvement in
performance and satisfaction, producing a return on investment of 430%.
Many studies have shown that using assessment centers for selecting managers
produces between an average ROI of around 300% per year in productivity
increases.
A public utility found that using an assessment center to select first line
managers created $1.7 million per year in gains over using a paper-and-pencil
selection test.
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