Management Development

Chapter#8
 Definition of Management Development:

Management development is a systematic

continuous process of enhancing skills,
knowledge, efficiencies, insights and change of
behavior and attitude of manager's and executives
so that they can deploy their utmost sincerity and
commitment of organizational effectiveness.

Various authors in various ways have defined

"Management Development: (Pls. see next slide)
Koontz& Weihrlch: "Management development
is the process a person makes in learning how to
manage effectively".

Gary Dessler, 2001: "Any attempt to improve

current or future management performance by
imparting knowledge, changing attitude or
increasing skills."

Sadler, 1998: "Management development has a

deceptively simple sound to it. Clearly it means
developing the ability of people to manage in
their own organizational environment''.
Objectives of Management Development:

Following objectives are important which can

be discussed in short. With the fulfillment of
these objectives management development
becomes successful:

1. To develop efficiency:
2. To ensure same performance:
3. To change behavior:
4. To train up subordinates:
5. To increase job satisfaction:
Contd.

6. To make the organization effective:

7. To attract good people:
8. To develop a learning environment:
9. To establish high ethical levels:
10. To ensure overall improvement:
11. To reduce the wastage of time and efforts:
12. To use technologies properly:
13. To help managers for Career Planning and
Development (CPD):
14. To ensure discipline:
15. To develop a good working condition:
Importance of Management Development

There are some points of importance of

Management Development in the organization.
Importance of Management Development can be
with these points. If all these things are properly
managed, we can say that there is an importance
of Management Development.

1. Increase in productivity:
2. Increase in efficiency:
3. Increase in profitability:
4. Increased motivation:
Contd.

5. Improvement of good LMR:

6. Development of leadership:
7. Development of ethics:
8. Consciousness about service rules:
9. Increase in sales volume:
10. Effective Advertising:
11. Awareness about social responsibility:
12. Attitude of citizenship in organization:
13. Effective Socialization:
14. Effective use of time:
15. Overall development of organization:
Advantages of Management Development

Management Development is a process by which

employees gain and apply knowledge, skills and
attitudes to manage work in the organization
effectively. As a result, employees are able to get
various types of advantages from their organization.
These are discussed below:

1. Increased Proficiency:
2. Increased Productivity:
3. Increase knowledge:
4. Increase confidence:
Contd.

1. Increased Proficiency:
2. Increased Productivity:
3. Increase knowledge:
4. Increase confidence:
5. Behavior change:
6. Increased skill:
7. Development of labor management relations:
8. Reduced employee turnover:
9. Inspired employees:
10. Increased motivation:
Disadvantages of Management Development

There are so many advantages of management

development process but on the other side there
are some disadvantages which create problems in
the organization. The disadvantages of
management development are given below:

1. Lower Productivity:
2. Insincerity of Managers:
3. Selection of Trainer:
Contd.

4. Improper Recruitment:
5. Non availability of Modern Aids/Equipments:
6. Lack of Fund:
7. Misuse of Fund:
8. Lack of Good Working Environment:
9. Lack of Proper Evaluation:
10. Absence of Good Relation between Management
and Employees:
Principles of Management Development:

Managing organizational development will be more

successful if we can apply the following principles:

1. Honesty: 7. Matching with Company Policy:

2. Timeliness: 8. Good Behavior:
3. Sincerity: 9. Responsibility:
4. Commitment: 10. Requires managers,
5. Ethics/Values: executives and employees to
6. Goal Orientation: be disciplined
Management Development Process/Model:

Figure: Management Development Process

 Management Development Process
1. Organizational Analysis: An organizational analysis plays a significant
role in determining the organization's requirements for mangers.

2. Manpower Review: For management development, manpower has to be

reviewed.

3. Performance Appraisal: For management development, there should be

performance appraisal system in the organization in which employee's job
performance is rated on a regular basis, usually once a year.

4. Management by Objectives (MBO): Management by objectives is a

comprehensive management approach which is adopted for performance
appraisal and so also for organizational development.

5. Training: For management development, after evaluating the performance

of the employees placing them in the right place and the next step is to train
and develop the employees.
 Guidelines for Management Development:
There are some guidelines for Management Development Program.
These are followings:

Guidelines for Managers:

For managers, such guidelines are mostly general intended
to develop their understanding and decision making
power. Such guidelines can be listed as below:
To improve the quality and consistency of the
programs and strengthen their strategic content.
To improve the consensus building in the preparation
implementation and review of development program.
To broaden the outlook in regard to their role,
position and responsibilities in the organization and
outside.
Contd.

To improve the thought process and analytical ability

so as to enable the top level managers to
understand the problems and take managerial
decisions in the best interest of the organizations in
particular and the country in general.
To think through the problems that confronts an
organization at present or might crop up in the future.
To understand economic, technical and institutional
forces to solve business problem, and
To acquire knowledge about the problems of human
relations.
 Guidelines for Trainers:
To learn about trainees before beginning the training program.
To discover what the trainees can already do and what they know about
organizational development.
To encourage the trainees to talk about themselves and their background in
the first training sessions.
To discover the extent of the trainees reading and writing skills during the
first sessions.
To know exactly what areas the trainees need training in and to make it
clear exactly what the trainees will expect to learn.
To arrange the means by which trainees can practice the skills they are
expected to develop.
To need carefully plan in teaching, practical arrangements and facilities in
order to facilitate the running of training program.
To demonstrate the benefits of the methods and encourage the trainees
through practice and discussion.
To arrange suitable facilities for training and to give the trainees access to
practice their skills.
 Guidelines for Trainees:

To improve their education levels for understanding

different functions an a company;
To increase sincerity for understanding economic, technical
and institutional forces to solve business problems;
To increase devotion for developing the ability to analyze
problems and to take appropriate action;
To acquire knowledge about the problems of human
relations;
To increase sincerity for improving their role, position
and responsibilities in the organization;
To increase their participation in decision making through
training program.
 Factors Affecting Management Development
When the organization has a clear set of policies,
objectives and approaches established it is in a
position to consider the best way to organize and
implement the development program.

Bardwell and Holden hold the view that if a

development program is to be successfully planned
and implemented, there has to be a clear and
unambiguous allocation of responsibility a
willingness to accept that responsibility. There are
several factors that need to be seriously considered in
organizing management development program.
Bardwell and Holden discuss these as follows:
Contd.

1. Availability of suitable managers: To achieve

strategic objectives, organizations need to ensure they
have the right numbers of managers, with the right
skills, available at the right time. A ' managerial audit' is
normally carried out, utilizing information from sources
such as performance appraisals, personnel files and
discussions with bosses, to reveal the skills available to
meet forecast demand. Established HUM plan and
development objectives.
Contd.
2. Reward and appraisal systems: Extrinsic reward
systems such as competitive salaries, and performance
related pay with fringe benefits such as company cars,
company pension schemes, share options, etc. are
important to successfully recruit and retain high caliber
managers.
3. Resourcing and support: To be successful,
development requires adequate resourcing and support.
In smaller organizations, the physical resources to carry
out development (trained personnel, training space and
materials) are rarely available and external resources in
the form of consultants, academics and professional
institutions are utilized.
Contd.
4. Promotion and succession planning: In conjunction
with reward and appraisal systems, careful
consideration needs to be given to career paths and
progression, especially for managers. This requires a
well-prepared human resource plan that looks to the
future.
5. Structures and systems: Implementing management
development successfully is dependent upon an
effective management development infrastructure that
identities and allocates responsibility;
provides and disseminates information efficiently;
provides administrative support;
Increases awareness and 'visibility.'
Contd.

6. The diversity of management: By now, it should be

clear that development has to be the reality of
managerial work. Development programs must make
room for the diversity of management skills, attitudes
and experience that reside within the organization.
 Steps of Management Development:

There are some steps for managing the organizational

development. These are discussed below:
1. Determining the objectives: Determining the
objective is the first steps of management
development such objective may include:
Attitudinal change;
Behavioral change;
Change in knowledge and skills;
Change in performance.
Contd.

2. Selecting development needs: Management

development is needed for the following reasons:
To face the challenge of competition;
To survive under economic uncertainty;
To take proper decisions;
To move quickly;
To improve the quality of work life;
Making the organization more socially
responsive and transparent; etc.
Contd.

3. Developing strategy:
While developing appropriate strategy, it is necessary to study
people, subsystems and organization as a total system. Strategy is the
direction and scope of an organization in the long run, matching
resources and changing environment.
4. Establishing training and development program: For management
development, training and development program should be
established. It is necessary:
o To make available managers and executives with requisite
knowledge and skills to meet the present and anticipated future
needs of the organization;
o To improve the functional competence of the managers;
o To sustain good performance of the employees; to acquire
knowledge about problems of human relations.
Contd.

5. Monitoring and supervision: For management development,

the overall activities of an organization should be monitored and
supervised properly. Without proper monitoring and supervision,
the organization can not achieve goals.

6. Implementing the program: Management development

program should be implemented in a phased manner. Since
total organizational change precedes attitudinal change,
change in values and beliefs of the people, the initial trust
should be given to training of employees, improvement of
their skill, developing self awareness, improving
interpersonal relationships, reducing conflicts, etc. To
implement management development program, sufficient
fund has to be ensured.
Contd.

7. Evaluation and Feedback: For management,

development the activities of the employees should be
evaluated properly. If the efficient and experienced
employees are not evaluated properly, they can lose
their interest to do the work. Manpower activities
should be evaluated properly and should be given to
them rewards so that the organization can reach its
target.
 Methods of Management Development:

1. Internal Methods: 2. External Methods:

a) Planned Progression a) Lecture
b) Job Relation b) Conference
c) Temporary Promotion c) Case Study
d) Coaching d) Discussion
e) Apprenticeship e) Programmed Instruction
f) Discussion f) T-Group training
g) Management games
h) Role playing
i) Brain storming
j) Executive speaking
k) Executive listening
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