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Essay: Benefits and Challenges of Personal Development Plans for Accounting Profession

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  • Published: 1 April 2019*
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1. Introduction

This essay will describe and discuss the definitions, explanations, importance, benefits, challenges and examples of personal development plans within the accounting profession. Personal development plans are a constant cycle of self reflection, recording and action. The purpose of PDP is to encourage employees to learn to develop themselves and plan for the future by becoming more aware of their capabilities and the opportunities. PDP can be applied in a variety of contexts, changing the way e ployees make decisions within work and in their personal life.

2. Definition and Expl anation of PDP

2.1 Definitions

To ensure the professional development of the employees, the organisations interests in setting up assessment cycles, consisting of development-, follow-up-, and performance interviews have expanded within the last decade (James and Pedder,  2006, p.).

Personal development planning is the process of creating an action plan based on awareness, reflection, goal-swetting and planning for personal development within contrext of a career, education or for self-improvement. Smith (2012)

2.2 Explanations

This paragraph will explain what the definitions are saying and go indepth in regards to the definitons. It will aslo cover the similarities and differences between the defintions and discuss why they have different perspectives.

3. The importance of PDP for accounting profession

3.1 Self-development

We are always learning, constantly. Development is a progressive process in everybody’s life. When you create your personal development plan, it can provide you with that time for self-reflection. It should be an open door for you to inspect what are the opportunities you can work on that are going to help you succeed and do something about it. (in text citation)

A clear objective of this process is to analyse your knowledge, skills, capabilities and other qualifications. This self-evaluation gives you a clear awareness about your possible development areas. This is a good starting point to narrow down what it can be a big list, to just the top three actions you will take to improve yourself in the next year. Of course, you can pick more, but for the sakes of staying focused and accomplishing some of them, it is easier to start small and maybe add some more actions later as we progress.

This process is critical, as it can set your path straight in terms of career (citation). When you know which areas, you would like and need to develop, and have taken steps to enhance to do so, you may have a clearer picture of where you are heading in the next five years (citation).  Your personal development plan should be geared toward progress in your personality and career so be careful not to pick just trainings that you will take in the next few months. This could be particularly tricky if the company is putting you through this training, as it will likely align with enhancing your current role more than getting you ready for the future (citation). 

3.2 Goals

The approach to inspiration via conscious target setting was born in the 1960’s as an substitute to these approaches. Target setting theory was based on the foundation that human action is purposeful in that it is directed by conscious targets. Actually target directedness characterizes the actions of all living organisms (O’Neil and Drillings, 2012).

3.3 Performance appraisal

Performance appraisal/review is a process for individual employees and those concerned with their performance, to discuss their performance and development. As well as the support they need in their role. It’s used to assess both their recent performance and focus on future objectives, opportunities and resources needed. Performance appraisal shares many similarities with performance management. However, they aren’t the same.

4. Examples of the use of PDP for accounting professional development

4.1 It is the learning and development that you’ll do throughout your ACCA membership. CPD will provide you with the skills that you need to perform your day-to-day job as well as enhance your employability for the future. (ACCA 2016)

4.2  CPD is applicable to all professional accountants, regardless of sector or size of the organization in which they operate, because:

1. all professional accountants have an obligation of due care to their clients, employers, and relevant stakeholders, and are expected to demonstrate their ability to competently discharge this responsibility;

2. professional accountants in all sectors are subject to public accountability and the maintenance of public trust;

3. the public is likely to rely on the designation and professional standing of the professional accountant. Professional accountants carry a professional designation. Any lack of competence of an individual accountant has the potential to damage the reputation and standing of both the individual and the profession as a whole;

4. all sectors are affected by the rapid changing environment and consequently adapt the strategic or business plans of those organizations relying on the professional accountant’s professional competence; and

5. employers recruiting professional accountants in any sector rely, to  some extent, on the professional designation as proof of professional competence

International Accounting Education Standards Board (2011, p.11)

5. The benefits and challenges of using PDP for accounting profession

Benefits

Challenges

Record personal progress and achievements

Time consuming in creation and updating

Be able to recognise their own strengths and be able to use them effectively. Also be able to develop and imorove on areas of weakness.

Reduction of flexibility

Identify learning experiences within the workplace as well as within personal life.

Increased pressure

Increase awasreness of the diversity of the skills and qualifications that they have achieved throughout their lives.

Sense of failure if goals aren’t met

Increase self-awareness of personal development of career related skills and abilities which will increase employability

Expensive

maintain a clear perspective on your professional and vocational development as your career progresses

Based on estimates about the future

(Cottrell 2003)

Table of Contents

Conclusion

References

Beausaert, S. & Segers, M. (2012) Effect of using a personal development plan on learning and development. Journal of Workplace Learning, 25(3), pp.145–158.

Beausaert, S. et al., 2013. Effect of using a personal development plan on learning and development. Journal of Workplace Learning, 25(3), pp.145–158. Access date: 8th October Available at: http://www.emeraldinsight.com/doi/abs/10.1108/13665621311306538.

Beausaert, S., Segers, M. & Gijselaers, W., 2011. The Personal Development Plan Practice Questionnaire: The development and validation of an instrument to assess the employee’s perception of personal development plan practice. International Journal of Training and Development, 15(4), pp.249–270.

Beausaert, S., Segers, M. & Gijselaers, W., 2011. The use of a personal development plan and the undertaking of learning activities, expertise-growth, flexibility and performance: the role of supporting assessment conditions. Human Resource Development International, 14(February 2015), pp.527–543.

Beausaert, S.A.J., Segers, M.S.R. & Gijselaers, W.H. (2011) Using a Personal Development Plan for Different Purposes: Its Influence on Undertaking Learning Activities and Job Performance. Vocations and Learning, 4(3), pp.231–252.

BUCKINGHAM, M. and GOODALL, A. (2015) Reinventing performance management: how one company is rethinking peer feedback and the annual review, and trying to design a system to fuel improvement. Harvard Business Review. Vol 93, No 4, April. pp40-50.

BUDWORTH, M-H., LATHAM, G.P. and MANROOP, L. (2015) Looking forward to performance management: a field test of the Feedforward interview for performance management. Human Resource Management. Vol 54, No 1, January/February. pp45-54.

Cottrell, S., 2003. Skills for success : Personal Development and Employability, [Online] Access date: 8th November Available at: http://copac.ac.uk/search?rn=3&au=cottrell&ti=study+skills&sort-order=ti,-date

Eisele, L. et al., 2013. Employee motivation for personal development plan effectiveness. European Journal of Training and Development, 37(6), pp.527–543. Access date: 8th November [Online] Available at: http://dx.doi.org/10.1108/EJTD-02-2013-0015.

James, M., & Pedder, D. (2006). Beyond method: assessment and learning practices and  values. The Curriculum Journal, 17, 109–138.

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