Spiderman once said 'with great power comes great responsibility.' This is true for developing employees on the job. It has been seen in survey after survey that empowered employees come closest to performing to their full potential.
The organization must have career paths charted for every position. This will include a timeline in which the employee can climb the various rungs. It is the duty of the organization to provide the employee with the ideal environment to perform. There must be a formal training period where a new recruit will be taken through the various aspects of his/her job. Some companies will go to the extent of taking the employee through various departments to see where the best possible fit is possible.
Job design and job rotation are techniques that help the employee develop further. The employee should have targets that are measured using various metrics. There are organizations that also have a formal mentorship program in place.