Management Development

Management development is the systematic process of creating effective managers. Managers' critical function is
to translate leadership and shareholder objectives into legal and effective actions to achieve those objectives.

Management development is defined as a process in which managers improve and learn their skills and
knowledge so that they benefit not only themselves but also the entire organization.
Management development is simultaneously rigorous, academic and practical. An organization's approach to
management development should include a variety of techniques to constantly build on a manager's existing
KSAs. It is a systematic process of training and growth by which individuals apply knowledge and gain insights
to manage their workers effectively. It is a planned and guided process undertaken by a manager to help himself
become more competent in his current role. Managers may receive inspiration and direction from leaders.

Need of Management Development

A formalized approach to management development is worth the effort because well-trained managers can play a
key role in the organization's success and future development by, for example, allowing them to do the following:
 Have a major impact on employee performance and morale.
 Revitalize unmotivated employees and thereby avoid the disruption and costs of firing and rehiring.
 Act as translators between levels and groups of employees and with other organizations.

Objectives of Management Development

1. Right Person at the Right Job: Ensuring that the organization is correctly staffed now as well as in the
future with a relevant number of managers having the necessary experience and skills. They will have to
ensure that the managers are committed to growth and maintaining or increasing the profitability by placing
the correct man for the proper job. This will also ensure that there are competent people in the organization
at every level.
2. Efficient utilization of Human resource: Ensuring that the organization‟s human resources are entirely
used so that humans‟ talent and potential as a resource are optimally utilized. They should neither be
wasted nor underutilized. Also, to ensure that the needs of both individuals as well as organizations are
correctly and timely met.
3. Equal Opportunity: Providing Equal opportunity for the staff in the organization so that they can prepare
themselves for senior assignments. The career expectations of the staff should be fulfilled with the help of
training. Training will enable them for bigger jobs and better responsibilities.
4. Business Objectives: Apart from that, there could be many other objectives: preventing the obsolescence
of managers, expanding the existing business or starting a new business, replacing old executives with
young talent, and promoting high ethical values in the organization.

Steps to Develop for Management Development Program

Following are a few of the steps to develop a formalized management development program:
1. Identify goals for the program: The first step in any program development is to identify the
ultimate goals that are to be achieved by the group.
2. Determine the learning objective: Identify your learning objectives and consider what you want to
accomplish with it. You should identify the end goal correctly. Do not think about the method of achieving it
perfectly because objectives can be modified as you work your way towards the goal.
3. Use of materials need to achieve learning objectives: Study materials may be required for orderly
implementation programs. The next step is the implementation of the program. During the implementation of the
program, ensure that there are no surprises.
4. Evaluation and follow-up: Evaluate the quality of the activities which were performed during the program.
Ensure that goals are achieved immediately after the program.

Contents of Management Development

There are three areas in which management development training happens. These three areas are as follows:
1. Knowledge: Lower-level managers will not require very high administrative skills, but they will require
technical skills a lot. On the other hand, higher-level executives will require abundant administrative skills.
This requirement is based on their functions, which are assigned to them. The managers are more into
technicalities, which is why technical knowledge is compulsory.
2. Skills: There are primarily three skills: industry-specific technical skills, human relation skills, which are skills
related to dealing with people at various levels, and finally, conceptual skills. Conceptual skills are a combination
of intelligence, vision, and imagination, and all of these skills can be developed over time.
3. Attitudes: Attitudes are thinking like an executive, having empathy, team concept, and recognizing human
values. Empathy here is defined as the ability to put yourself in other people‟s positions and understand their
minds and thoughts.

Methods Used for Management Development

Method # 1. Coaching: Coaching is a method which is used in developing managerial thinking processes as well
as operative skills. In coaching, the superior plays the role of the guide and the instructor. The coach sets mutually
agreed goals. What needs to be done is also highlighted. The way to get things done is also indicated in clear
terms.
Method # 2. Job Rotation: Job rotation represents an excellent method for broadening the manager or potential
manager, for turning specialists into generalists. It refers to the transfer or movement of executives from one job
to another and from one plan to another on some planned basis for educational learning purposes.
“Job rotation is often designed for beginning level managers while planned progression is more likely to occur at
higher managerial levels.” Such rotation may continue for a period ranging from 6 months to 24 months.
Method # 3. Understudy: An „understudy‟ is a person who is under training to assume, at a future time, the fall
duties and responsibilities of the position currently held by his superior. In this way, it is ensured that a fully
trained person is available to replace a manager during his long absence or illness, or on his retirement, transfer or
promotion.
Method # 4. Multiple Management: It is a technique whereby juniors are assigned to Board or Committees, by
the chief executive. They are asked to participate in deliberations of these Board and Committees. In these
sessions, real- life actual problems are discussed, different views are debated and decisions are taken.
The juniors get an opportunity to share in managerial decision-making, to learn by watching others and to delve
into specific organisational problems.
Method # 5. Project Assignments: In this method, a trainee is put on a project closely related to the objectives of
his department. For example, a new recruit in a property evaluation firm may be asked to do a small project
reviewing the prospects of selling commercial space in satellite townships (like Gurgaon, Faridabad, Manesar and
Ghaziabad) near Delhi.
Method # 6. Committee Assignment: In this method, an ad hoc committee is appointed to discuss, evaluate and
offer suggestions relating to an important aspect of business. For example, a group of experts may be asked to
look into the feasibility of developing a Software Technology Park in an upcoming area by the Delhi
Development Authority.
All the trainees participate in the discussions and deliberations of a committee. They toss around ideas freely and
work on a solution through consensus building. The problem is subject to critical study and thorough analysis.
Method # 7. The Case Study: Case method is an excellent medium for developing analytical skill. It was started
by Harvard Business School. This method is increasingly being used by many other prestigious and not so
prestigious management institutes in India.
A case is “a written description of an actual situation in business which provokes in the reader the need to decide
which is going on, what the situation really is or what the problems are and what can and should be done.”
Method # 8. Simulation: It is a training technique which indicates the duplication of organizational situations in
a learning environment. It is a mock-up of a real thing. This technique has been used for developing technical and
interpersonal skills.
Method # 9. Role-Playing: Role-playing is the concept of creating a more realistic situation, usually one of
human problems and conflicts, and then acting out the various parts. The role assuming closely approximate a real
situation and affords the participants the vicarious experiences that enhance their sensitivity, growth and
development.
Method # 10. Business or Management Game: Business games are classroom simulation exercises in which
teams of individuals compete against one another or against an environment in order to achieve a given objective.
These games are designed to be representative of real-life conditions. Under these, an atmosphere is created in
which the participants play a dynamic role, and enrich their skills through involvement and simulated experience.
Method # 11. Conferences: The conference method is another commonly used method of executive
development. Topics such as human relations, safety education, customer relations, sales training, are often
discussed, debated, spoken about at conferences specially organised and designed for the purpose.
Method # 12. Lectures: Lectures are formal presentations on a topic by an experienced and knowledgeable
person. The presentation is generally supported by discussions, case studies, audiovisual aids and film shows. It is
a simple and inexpensive way of imparting knowledge on a topic of special importance to a large audience.
________________________________

HRD MATRIX

HRD matrix shows the interrelationship between HRD instruments, processes, outcomes and organizational
effectiveness.

HRD Instruments: These include performance appraisal, counseling, role analysis, potential development,
training, communication policies, job rotations, rewards, job enrichment programmes, etc. These instruments may
vary depending on the size of the organization, the internal environment, the support and commitment of the top
management, the competitive policies etc.

HRD Processes: HRD instruments lead to the generation of HRD processes like role clarity, performance
planning, development climate, risk-taking, dynamism in employees. Such HRD processes should result in more
competent, satisfied and committed people that would make the organization grow by contributing their best to it.

HRD Outcomes: HRD instruments and processes make people more committed and satisfied, where they tend to
give their best to the organization enthusiastically.

Organizational Effectiveness: The HRD outcomes influence the organizational effectiveness, which in turn,
depends on a number of variables like environment, technology, competitors, etc.
HRD Mechanisms or Subsystems: Many HRD mechanisms are available to develop the competencies of
employees and improved the overall organizational climate. The major ones are discussed below:

1. Performance Appraisal: performance appraisal have become increasingly important tools for
organizations to use in managing and improving the performance of employees, in making timely and
accurate staffing decisions and improving the overall quality of the firms products and services. The
appraisal process is the formal way of evaluating the employee‟s performance. Its purpose is to provide an
accurate picture of post and future employee‟s performance.

Appraisals help an organization communicate its expectations regarding performance and connection
between performance and reward to employees. They increase employees‟ confidence and employees‟
feedback that their efforts are being adequately rewarded. The feedback is offered through an evaluation
interview. Here the rater tries to give both positive and negative sides of the employee performance. To be
useful, raters or supervisors should use HRD orientated appraisals as a mechanism to:
a) Uncover difficulties faced by the subordinate while handling assigned task and try to remove them.
b) Understand the strengths and weaknesses of subordinates and help the subordinates overcome
the obstacles in the way.
c) Encourage subordinates to meet problems head-on, accept responsibilities and face challenges
with confidence and courage. d) Plan for effective utilization of the talents of subordinates.
2. Potential Appraisal: the term „potential‟ refers to the abilities possessed by an employee but not put to
use currently or the abilities to assume challenging responsibilities in future assignments. “The objective
of potential appraisal is to identify the potential of a given employee to occupy higher positions in the
organizational hierarchy and undertaken higher technologies.” The appraisal is carried out on the basis of
(i) supervisor‟s observations;
(ii) performance data relating to various previous roles played by an employee;
(iii) performance on roles in simulating to a new position.
A good potential appraisal system helps management to pick up a suitable candidate for a given job and
offer additional training, if necessary.

3. Career Planning: A career is a sequence of positions held by a person in the course of a lifetime. Career
planning is a process of integrating the employees‟ needs and aspirations with organizational needs.
Career programmes and HR programmes are linked to the degree that they help each individual meet
individual and organization requirements.

In the HRD system, the long term growth plans of a company are not kept secret. They are made known to
the employees. Major changes are discussed at all levels to promote understanding and commitment
among employees. It enables employees to find out where do stand in such a road map.

4. Training and Employee Development: Training is a learning experience designed to achieve a relatively
permanent change in an individual that will improve the ability to perform on the job. Employee
development is a future oriented training process, focusing on the personal growth of the employee. Both
training and development focus on learning.

Training should be planned to meet the specific needs of organization and its employees. To survive and
grow in a competitive environment, organizations have to motivate their employees to get ready for all
kinds of future challenges.

5. Organisation Development: Organizations are never perfectly static. They keep on changing.
Employees‟ skills and abilities, therefore, require continual upgrading. It is not easy to fight the force of
change without adequate preparation and training. A systematic planned way of managing this change is
through the process of OD.

OD may be defined as a change effort that is planned, focused on an entire organization or a large subsystem,
managed from the top, aimed at enhancing organizational health and effectiveness and based on planned
interventions made with the help of change agent who is well versed in the behavioral science.

6. Rewards: People do what they do to satisfy needs. They choose to behave in way which will maximize
their rewards. The most obvious reward is pay but there are many others.
Intrinsic rewards come from their job itself such as feelings of achievement, pride in doing a job etc.
Extrinsic rewards come from a source outside the job including pay, promotion and benefits offered.
Reward could be linked to performance as well to motivate high achievers to do well. If rewards are allocated on
non-performance factors like seniority, job titles etc. then employees will reduce their efforts.

7. Employee welfare & quality of work life (QWL): The term employee welfare means “the efforts to
make life worth living for workmen”. It includes various services, facilities & benefits offered to
employees by the employers, unions & govt. The purpose is to improve the living standards of workers &
thereby improve the quality of work life. Employees voluntarily extend a number of benefits to employees
in the hope that these indirect compensation plans motivate employees to perform better.
Quality of work life (QWL) efforts are systematic efforts by organizations to give workers a greater
opportunity to affect the way they do their jobs & the contributions they make to the organization‟s overall
effectiveness. It is a way of empowering employees by giving them a greater „say‟ in the decision making
process. QWL means having good working conditions, good wages & benefits, good leadership &
interesting, challenging jobs. QWL efforts include the following:
• Employee involvement: Here employees are given the opportunity to participate in the decisions that
affect them & their relationship in the company.
• Quality circles: These are small group of employees who meet regularly to find, analyse & solve
quality & other work-related problems of a particular department/section/area.
• Socio-technical systems: These are interventions in the work situation that redesign the work, the
workgroups & the relationship between workers & the technologies they use to perform their jobs.
• Co-determination: In this method, representatives of workers meet mgt in a formal way to discuss &
vote important decisions that affect the lives of workers.
• Self-managed work teams: These are employee groups (also called autonomous workgroups) with a
high degree of decision-making, responsibility & behavioural control for completing their work. The
team is usually given the responsibility for producing an entire product or service.
• Suggestion programmes: It is a formal method for generating, evaluating & implementing employee
ideas.
• Open door policies: Where open door policies exist, employees are free to walk into any manager‟s
office with their problems & seek solutions. HRD system focuses on employee welfare & QWL by
continually examining employee needs & meeting them to the best possible extent.

______________________________