Partial Fulfillment of the Requirements of the TERM 1, PGDM (Finance) 2009-2011

PRESENTED TO: Mrs. Libby Simon, Professor, Department of HR, IFIM.


Any project attempted by a team will face problems of all sorts. As expected a number of problems were encountered during the undertaking of this project. Without the numerous helping hands that were extended our way we would not have been able to wrap up this project. Therefore it is only appropriate that we acknowledge the same and express our appreciation and thanks. First and foremost we would like to offer our thanks to God without whose blessings this project was hardly possible. We express our gratitude to our institution and management for providing us with good infrastructure, qualified and inspiring staff and their guidance was immense help in completion of this project successfully. We thank our project guide Mrs. Libby Simon, Professor, HR Department, for her timely help, support and advice. We are grateful and would like to avail the opportunity to acknowledge our indebtedness for her encouragement and favour. We would like to add some personal note. If there is a driving force that kept us going and what has not changed is the constant support and blessings of our parents.


Management Development is an effort (hopefully, planned in nature) that enhances the learner¶s capacity to manage organization (or oneself). Very simply put, managing include activities of planning, organizing, leading and coordinate resources. A critical skill for anyone is the ability to manage their own learning. Management development program come in informal and formal and other-directed or self-directed. Management development is a planned, systematic and continuous process of learning and growth by which managers develop their conceptual and analytical abilities to manage. It is the result of not only participation in formal courses of instruction but also of actual job experience. It is primarily concerned with improving the performance of mangers by giving them stimulating opportunities for growth and development. As organizations have faced a new paradigm, management development organization must embrace a new paradigm as well.

Literature Review

A study of the key ratios relating to the management development and training forming a major part of the HRD, shows that the training & management development expenditure per employee was US $960 in Europe, US $531 in Canada, US $386 in Japan and US $650 in USA. The training and management development expenditure as percentage of payroll was 3 percent in Europe, 1.5 percent in Canada, 1 percent in Japan and 1.8 percent in the USA. The employee to trainer ratio was 257:1 in Asia and Pacific, 504:1 in Canada, 1706:1 in Japan and 400:1 in USA. The percentage of employees receiving training was 75.5 in Europe, 68.9 in Canada, 44.9 in Japan and 75 percent in the USA. The payments made to outside experts / training institutions as percentage of total expenditure was 45.4 percent in Europe, 27 in Canada, 31 in Japan and 27 percent in USA. The Indian proportions are miniscule and do not deserve any mention. This can be seen in the context of the expenditure on HRD as a percentage of GDP. USA and France spend about 20 percent of their GDP on HRD. A small country such as Belgium spends about 40 percent on HRD. India pledged to spend a mere 6 percent of GDP on HRD in 1986. Currently it spends about 3 percent of its GDP on HRD. All these countries spent about 1-4 percent of the money on training and management development as a percentage of their turnover. They have integrated their management development and training activities with the primary, secondary and higher education. Motorola, a US based company spends about US $1Billion on management development and training. The company proposes to hike this outlay. On an average each employee spends about 160 hours per year on training. The company has set up a university and has adopted 32 districts in the USA to upgrade the standards of education. In Japan, informal management development and training is more widespread as compared to the formal, on the job and off the job training and management development as existing in India. An average Japanese employee spends about a 100 hours in training per year. Technologically, an average Japanese employee is conversant with the use of CD-ROM, e-mail and company internet, although to a lesser extent than the average US employee. It is claimed that India is emerging as an IT superpower. However, an average Indian employee is wide off the mark as compared to US and Japanese employee. There are some latest example where we can see how management development programme help organisaton employee and help to improve their productivity:Auchrannie named as top resort Published: 30 December, 2009« Staff at The Auchrannie Resort in Brodick got an early Christmas present this year when they were honoured with three new awards. The first of these ± the RCI Gold Crown award - has already been held for a staggering 17 years by the Auchrannie¶s Country Club. This means that the country club is recognised as one of the top five per cent of similar resorts worldwide. The RCI¶s Gold Crown designation requires resorts to meet certain standards of excellence based on customer feedback and other areas like check-in, hospitality, maintenance, housekeeping and resort amenities.

µThis new Gold Crown award is testament to Auchrannie¶s on going development in enhancing the reputation of it¶s luxury lodges as some of the best in the UK¶, said country club manager, Mandy Barnett. The second honour is again one that the Auchrannie has previously held - the Investors In People award that is recognised nationally as a framework for improving business. The resort has gained the additional bronze level for higher achievement. µBy applying the µplan ± do ± review¶ approach we get our strategy right, enhance employee engagement, improve management effectiveness and evaluate what¶s working best to continuously improve our performance,¶ said Mandy. A much improved, more efficient approach to personnel management at the resort combined with further investment in training and development of staff along with improved induction and review procedures, have resulted in staff turnover dropping by 50 per cent in 2009 compared to the following year. Mandy added: µHuge expenditure and continuing improvements to our staff accommodation, as well as an increase in staff benefits have also helped this retention. µThe latest development in our constant desire to provide a first class customer experience is a our new bespoke management development program, currently being implemented to encourage up and coming talent and school leavers, especially those from the island, into the industry.¶ The final award is through the Green Tourism Business Scheme, which sees the Auchrannie being assessed against a rigorous set of criteria, covering a range of areas like energy and water efficiency, waste management and biodiversity. The resort achieved silver awards for both the Country House Hotel and Spa Resort with the Country Club lodges gaining a bronze award. Richard Small, general manager, said: µSupporting a more sustainable tourism benefits the environment by conserving resources, reducing waste and costs, fulfilling customer expectations

and experiences, benefiting the local community, supporting the local economy and helping to enhance Arran¶s natural environment.¶ There are some latest new techniques which also help to improve training and development in the organization. The latest technology from one Coventry management development specialist could revolutionise the way firms make decisions on how they spend money when it comes to training staff. The system, which has cost GPSVision some £200,000 to develop, is said to be able to track, and calculate bottom-line changes ± positive or negative ± attributable to training and development programmes. ³It is applicable to a wide spread of organisations, ranging from companies to local authorities and hospitals,´ said director Patrick Taggart. ³We long ago realised that most money spent on training is an act of faith, that people spend and hope with no real way of measuring the effects.´ The company, based in Puma Way, has spent the past five years and around £200,000 on working to change that and in November launched the Odissy system. It is already a nominee for the Advantage West Midlands-sponsored Business Innovation Award, part of the Coventry Telegraph Business Awards presented in association with Coventry & Warwickshire Chamber of Commerce. Its web-based system is designed to take clients through six stages of organisational change, and can help turn the image of the learning and development function from cost to a profit centre. Mr Taggart added: ³A PricewaterhouseCoopers¶ 2005 report added impetus to our work, saying £1 billion was being wasted on leadership development across Europe, with little impact on bottom lines. ³We had been running a performance improvement cycle programme, taking in six elements from evaluation of client problems through to measurement of results, since 2003. ³Odissy does that role electronically, taking on all the legwork of running and assessing learning and development programmes. ³Among other things, it will simplify training needs analysis, align individual objectives with corporate ones, project manage development and automate talent management and succession planning. Most importantly it will produce return on investment reports by programme, individual, team, division and organisation.´

Management Development Program

Management Development can be ³An organization¶s conscious effort to provide its managers (and potential managers) with opportunities to learn, grow, and change, in hopes of producing over the long term a cadre of managers with the skills necessary to function effectively in that organization.´ Managers are the indispensable resources, the prices less asset of an organization. They generate creative ideas, translate them into concrete action plans and produce results. When they succeed, they are able to keep anyone in good humor ± including shareholders, employee and the general possessions of a country. When they fail, they destroy the scarce corporate resources and make everyone cry. The outcomes of managerial actions, thus, are going to be deep, profound and decisive. To get ahead in the race especially in a complex, dynamic and ever-changing world, managers need to develop their capabilities that go beyond those required by the current job. The basic purpose of Management development is to improve managerial performance by imparting knowledge, changing attitudes or increasing skills. Training certainly helps in improving job-related skills but when the intent is to enhance executives¶ ability to handle diverse jobs and prepare them for future challenges the focus must shift to Management development. Management Development has become very important in today¶s competitive environment. According to a survey, those companies that align their management development with tactical planning are more competitive than the companies who are not. It has also been indicated that 80% of the companies report MDP, compared with 90% that provide executive leadership training. For most of the companies 37% of the training budgets go to management development and learning programs. Therefore, it is important to consider management development as an important part of organizational competitiveness. The Management Development Program enhances managerial talent and responds to the needs of today's organizations. Sharpen skills that require you to accomplish organizational goals through influencing others Acquire effective management behaviors Accelerate your growth as a high-potential individual

Some of the reasons behind the management development programs are: y y y y It is managements¶ responsibility of ensuring the success of the organization It is the management who deal with people of different background, culture, language, etc Mergers and acquisitions, downsizing, etc are all under management¶s control It is managements¶ responsibility to ensure that the employees obtain the required KSAs to perform the tasks


It is managements¶ responsibility to ensure that right people is hired for the right job, at the right time for the right place Manager¶s job is complex i.e. for the managers understanding the training need is not easy because his training need is determined by how well his department is meeting its objective and goal. It is the management who makes decisions on the basis of judgment and intuition It is the manager who performs several routine duties as well as handling the exceptions in their own as well as subordinates¶ routine Managers are engaged in varied, discontinues, and brief activities


y y

y y

It is the management that understand the organization, its vision, mission, ethics, values, strategies, capabilities, and how his organization fits into the industry, and how his behavior will influence people outside the organization

Therefore, managers must be able to get the required knowledge, skills, and attitudes (KSAs) to meet the challenges as soon as they arise.

Increased complexity and the dynamic changes in the environment in which organizations operate require that organizations in order to survive and sustain become learning organizations in a very specific way. A key feature of future top organizations will be to know how to tap into the motivation and learning potential on all levels of the organization. Developmental efforts help executives to realize their own career goals and aspirations in a planned way. The program helps managers to broader their outlook, look into various problems dispassionately, examine the consequences carefully, appreciate how others would react to a particular solution and discharge their responsibilities taking a holistic view of the entire organization. Management development is an invaluable investment in the long run. It helps managers to acquire knowledge, skills and abilities required to grapple with complex changes in environment, technology and processes quite successfully. They can have a better grip over market forces and get ahead of others in the race in a confident manner. With this Management Development program, the company offers a unique development opportunity to talented managers who have been identified by the companyµs Talent Management Process. The program is designed to drive and support the individual development of these Talents along the following core disciplines: Personal Mastery, Mental Models, Building Shared Vision, Team Learning, System Thinking.

The five Core Disciplines
1. Personal Mastery ± Openness to ongoing individual development in order to be ready for the continuously changing challenges in a learning organization, To create a context for oneself that as a creative network stimulates learning and growth. 2. Mental Models ± The reflection on the ³inner maps´ and the deeply ingrained assumptions that influence how we understand the world and how we take action. Above all, this means to comprehend the strong interconnections between our thinking and our actions. 3. Building a shared Vision ± Creating identification by building a shared Ãpicture of the future and translating it into a set of Principles and guiding practices. 4. Team Learning ± Ability for effective communication, conflict solving and consensus building in work groups and teams, in order to make optimal use of existing resources and capacities. 5. Systems Thinking ± Thinking in complex interconnections, evaluating organizational challenges in terms of interdependencies unaffecting cycles and developing effective ways to design systems.

Conceptual Translation of the 5 Core Disciplines context

Developing a creative Network
Definition of Individual Development Goals (SDW) In close relationship to the company guidelines Professional Leadership Creating identification with the company guiding principles for leadership Developing a shared vision of the future Team Learning Communication und Feedback culture Making optimal use of resources und capacities Thinking & Acting in interrelated Systems Interrelations and effecting cycles Taking the consequences and effects of decisions into account Changes in the heads/minds Checking the Äinner maps³ Updating oneµs beliefs and assumptions

Management Development Approach
Management development is a long term and continuing phenomenon equipping a person with skills and concepts that could prepare him to take up new responsibilities and challenges. And Training is a short term facet of HRD concerned with the development of present skills of a job and also the future skills that would help in its efficient execution. The method to be adopted for Management Development and Training for the different layers of Management.

The global competition, initiation of economic reforms and the country¶s ambition to join ranks with the developed countries require that its existing approach to management development and training undergo a fundamental change as explained in Exhibit-II.

Exhibit-II Management development and Training in India From To Conservative Liberal Specific Generic Functional Cross-Functional Hierarchical Participative Periodic Continuous Risk Aversion Risk Taking Formal Informal Traditional Modern & Topical Unsystematic Systematic General Goal Oriented Closed Open Skill Based & Narrow Concept Based & Comprehensive Static Dynamic Ad hoc Planned Structured Customised Inorganic Organic Directed Environment Driven

Example of Management Development Approaches.
Leadership Training 1. Transformational leadership  Focus on leader qualities such as vision, inspiration, and charisma  ³Transforming followers, creating vision of the goals that may be attained, and articulating for the followers the ways to attain those goals.´ (Bass, 1985) Leadership Training 2. Leaders developing leaders  Involvement of CEOs and other senior managers in developing leaders within their own organizations. Example: Intel  Effective leaders create engaging personal stories to communicate their vision for the future (Cohen & Tichy). Behavior Modeling Training Typically includes five steps:  Modeling  Retention  Rehearsal  Feedback  Transfer of training Demonstrated effectiveness for changing learning, behavior, and results

Managers Job
After analyzing the core discipline of management development we should also describe job require to do by the manager. Several approaches have been used to understand the job of managing: Job - 1 Characteristics approach Managerial roles approach Process models 

Integrated competency model  Four-dimensional model Holistic approach (Mintzberg) Job - 2 Characteristics approach:  Long hours  Primarily focused within the organization  High activity levels  Fragmented work  Varied activities  Primarily focused on oral communication  Many contacts  Much information gathering is conducted

Job ± 3 Roles approach: Fayol¶s observational approach  Planning, organizing, commanding, coordinating, and controlling Holistic approach managerial roles  Interpersonal  Informational  Decisional Job ± 4 Process models: Integrated competency model  Competencies ± skills or personal characteristics that contribute to effective performance. These include:  Human resource management 

Leadership  Goal and action management  Directing subordinates  Focus on others  Specialized knowledge

Job ± 5 Process models: Four-dimensional model:  Six management functions  Four roles  Five relational targets  Various managerial styles

Job ± 6 Holistic approaches: Criticisms of earlier approaches by Holistic Approach and Vaill  ³Managing as a performing art´ (Vaill) Response by Holistic Approach: A ³well rounded´ model of the managerial job:  The person in the job  The frame of the job  The agenda of the work  The actual behaviors that managers perform

Holistic approach ³Well-Rounded´ Model

Design of Management Development Program
1. Management development must be tied to the organization¶s strategic plan. 2. A thorough needs analysis is essential. 3. Specific objectives should be established for each component. 4. Senior management involvement and commitment in all phases is critical. 5. A variety of developmental opportunities should be used. 1. Formal (programs) 2. Informal (on the job) 6. Ensure that all participants are motivated to participate. 7. The regular evaluation updating of all programs is essential. For designing Management Development Program we should also take care of certain things to make it more effective for the executives or managers: Guidelines  Principle of cooperation  Leadership profile Under this things we will design certain things and decide how much time require for particular task these are:Kick-Off Meeting (0,5 days) and Self-Development Workshop ( 3,5 days) Development report Development Talks based on Development Report Superior/ Participant (2 hours) Leadership & Personality (5 days) Focus: Leadership Models and Instruments; Career Planning Team & Organization (4 days) Focus: Simulation; Experiencing Project work Evaluation Meeting (1 day)

Management development program focus area
1. Focus leadership & personality 
Leadership in Transition  Value driven leadership  From Boss To Coach  Professional Leadership  Guidelines of leadership and cooperation  Leadership profile  HR instrument  Leadership and Communication  Situational dialogue with employee  Performance Appraisals and Assessment of Potential  Goal agreement and employee feedback  Leadership and Motivational Theory  Leadership styles and models  Hygiene and motivational factors  Leading Change  Leading in turbulent times  My life time  Professional and private life  Self Management  Life and Career Planning  Life planning  Career Anchor 2. Focus team and system  Development phase of team  Forming, Storming, Norming, Performing  Team dynamic  The twelve Team Boosters  Leadership, qualification, climate etc.  Cross-Cultural Management  Building Cross-Cultural Competence  Leading international team 

Cooperation & Competition  Self, group and task orientation  Decision making and problem solving  Approaches and methods  Reconciliation of dilemmas  Building Trust and Relationship  Entrepreneurial thinking and acting in complex system  Simulation  Managing change and complexity  Initiating change and transformation  Managing projects  Functional & Relationship networks  System analysis  Stake analysis  Peer Consulting on actual cases  Acting/supervision

Methods of Management Development Program
Management Development program help in aquairing and developing types of managerial skills and knowledge. Different types of techniques are used to aquire and develop various types of managerial skills and knowledge. They are:1. Decision making skills a) In-basket b) Business game c) Case study 2. Interpersonal skills a) Role play b) Sensitivity training c) Behavior modellig 3. Job knowledge a) On the job experience b) Coaching c) Understudy 4. Organizational knowledge a) Job rotation b) Multiple management

5. General knowledge a) Special courses b) Special meeting c) Specific meeting 6. Specific individual needs a) Special projects b) Committee assignments There are some off ±the ±Jobs methods too a. b. c. d. Conference Lecture Group discussion Programmed instruction

The objective of the programme should be kept in mind while choosing a particular method. The success of any management development programme largely depends on the selection of the method. No single technique may prove to be sufficient, but only a suitable combination of techniques may yield results.

Steps in the organization Management Development Programme
a. b. c. d. e. f. Analysis of organizational development needs. Appraisal of present management talents. Inventory of management manpower. Planning of individual development programmes. Establishing of development programmes. Evolutions of result.

Components or Strategies for Management Development.
Three main components or strategies used to provide management development: Management education Management training On-the-job experiences

Management Education
Bachelor¶s and master¶s programs at colleges and universities (B.B.A., MBA) Executive education ± e.g., 

Condensed MBA programs 

Short courses by:  Colleges and universities  Consulting firms  Private institutes  Professional and industry associations Although very popular, there are many challenges facing management education at present ± e.g.,  Ensuring timeliness  ³Just-in-time management education´  Ensuring value-added  Linking classroom with on-the-job experiences  Connecting education to real-life issues  Intense competition among providers

Management training and experience
Company-designed courses  e.g., General Electric Company academies, ³colleges,´ and corporate universities  e.g., Motorola, Xerox On-the-job experiences  Center for Creative Leadership research  Action learning ± a ³living case´ approach

Example of Management Development Program
Management Development & Training in Public Enterprises There are about 1400 public enterprises at the central, state and local levels organised principally in the form of government companies, statutory corporations, departmental enterprises, commissions, authorities, boards, mixed corporations and port trusts. These employ about 6 million personnel. The investments in these enterprises is about US $120 billion. The salaries and wages in these enterprises constitute 12 percent of their turnover which may be as much as US $120 billion. The expenses on training and management development are about 0.5 percent of the turnover. Features Training and management development is an important activity in public enterprises which is discernable from the following features: 1. There is a definite direction existing in relation to management development and training in public enterprises. The Department of Public Enterprises, Govt. of India and the nodal agencies on state level public enterprises have their respective policies incorporating guidelines on themes to be covered, types and number of programmes to be conducted, duration of the programmes and the resource persons to be deployed. The policy covers even items such as the remuneration for the resource persons and the evaluation of the training programmes. 2. In the management structure, at the board level, invariably the function is represented by Director(Personnel) who in turn is supported by Executive Director (Personnel) / General Manager (Personnel), Deputy General Manager (Personnel), Assistant General Manager (Personnel), Senior Manager (Personnel), Executive (Personnel), Personnel Officer, etc. In many a case, General Manager (Training) is appointed as in-charge of the function. In other words, training and management development is a high level function in public enterprises. The state level public enterprises also accord high importance to this function though in many such enterprises it is not placed at the level of General Manager due to a consideration of size. 3. Separate budget provisions are earmarked for this function although they are very miniscule as related to turnover and expenses incurred on wages and salaries. 4. In terms of hardware, separate space is allocated for the functionaries dealing with management development and training, equipment provided and support structure created in terms of assistance, transport facilities etc. It may however be noted that the quality of budget support and assistance differs widely from enterprise to enterprise. 5. A Training Needs Survey is carried out once in 5-6 years on the basis of which a training calendar is formulated. The operating departments and the management services department/ corporate strategy department are approached for obtaining appropriate inputs. Small changes are carried out in the training calendar depending on the feedback of the participants. The major gaps in different areas for the three levels of management are given in the Exhibit ±III:

6. Training programmes for workers, supervisors and juniorexecutives are organised inhouse. For the middle level personnel the programmes are arranged in house with a mix of internal and external faculty. For senior and top level personnel, slots are provided for training in external institutions and abroad. 7. Induction Training/ Foundation Training is a rule rather than exception. The period of the training varies from 6 months to 2 years at this level. 8. About 40 large central public enterprises such as Bharat Heavy Electricals Ltd., Steel Authority of India Ltd. , National Thermal Power Corporation, Coal India Ltd., Electronics Corporation of India Ltd, Mishra Dhatu Nigam Ltd, Bharat Dynamics Ltd, Hindustan Aeronautics Ltd, HMT Ltd., have set up their own in house training institutes. These provide training to senior managers in general management, middle/ junior managers in functional areas of management and specialised courses to senior and top managers in total quality management, quality circles, memorandum of understanding and corporate planning. These in house institutes run Junior Management Induction Programmes. 9.At the State level, such inhouse training institutes are maintained by the state electricity boards and the state road transport corporations. The state financial corporations and the state industrial development corporations also take up the management development training activities on systematic basis, though they do not have their own inhouse training institutions. 10.The public sector banks form the lifeline of the financial system in the country. There are in all about 90 banks excluding the cooperative banks. Most of these banks have their inhouse training departments. The large banks such as the State Bank of India, Punjab National Bank, Central Bank of India, Bank of Baroda, Andhra Bank have their own inhouse training institutes. In a study conducted by Mishra and Ravishankar4 about the Human Resource Development in State Bank of India, the largest commercial bank and one of the 500 Fortune Companies with a sample of officers numbering 850 in senior/middle management cadres. It was noted that there was an urgent need to develop technical and managerial skills and bring about attitudinal changes in the work behaviour of the executives. The linkage of the training with the operations process of the bank was not complete. The deputation of trainees to a programme was not always on grounds of actual needs. Much subjectivity operated in the field. The managers at operations level felt that deputing personnel for training interface with the operations work. Moreover, the

skills imparted and the change brought in the behaviour of the trainees fade out quickly and regression sets in once they face the operational realities and mounting skeptics from their colleagues. With the integration of information technology and banking operations the inhouse training institutes of Banks have to now prepare a new menu. In fact, the experience emanating even from a country like the USA reveals that the bank personnel would like to redefine their operations and needs in the perspective of information technology. They feel that the run of the mill training programmes are a mere waste of their time. What they need today is an intensive understanding of information technology which can keep them relevant for society.





A simple way of looking at productivity in a business organization is to think of it in terms of the productivity model. Essentially, productivity is a ratio to measure how well an organization (or individual, industry, country) converts input resources (labor, materials, machines etc.) into goods and services. OUTPUT ---------------INPUT EFFECTIVENESS -------------------------EFFICIENCY


This is usually expressed in ratios of inputs to outputs. That is (input) cost per (output) good / service. It is not on its own a measure of how efficient the conversion process is. The Productivity Conceptual Model below, takes the form of a 'productivity tree'. The denominator denote the inputs to the system, the numerator the systems outputs. OUTPUT * * * OR EFFECTIVENESS reach wider market better output, better benefits. and increase sales/profit. EFFICIENCY material input undertake conversion efficiently. undertake work efficiently. latest technology for efficiency. latest technology for efficiency skill knowledge / and /abilities/leadership levels. expertise development attitude quantity organization of can

Increased volume -able to Improve service -better delivery, better quality, Reduce cost -lower the unit cost OR quality / procedure to ensure use use to the the

INPUT * * Material Systems process * Tools * Equipment * Processes * * * *

People--correct Knowledge --people Skills--training Management -skills

Using * * * * our

productivity model, improvements

can be

realized same less more less by: input input input input

achieving more output for achieving the same output achieving much more output for getting slightly less output for

the from slightly much

There are some lines of attack to improve the productivity ratio of an organization, namely: * * Improve basic process by research and development (long Improve and provide new plant, equipment, and machinery (long term) term)

* * * *

Simplify product and reduce variety (medium Improve existing methods and procedures (short Improve the planning of work and the use of manpower (short Increase the overall effectiveness of employees (short term/ medium

term) term) term) term)

FOCUS ON CAREER DEVELOPMENT / MANAGEMENT [medium/ long term ] That is, if employees are properly motivated, coached, receive the right information at the right time, use simple productivity improvement tools and techniques and are rewarded in an appropriate way.

The above analysis of productivity reveals one major input that is needed for productivity improvement , that is employee competences [ skills/knowledge/abilities/attitude] *For Improving *For Improving *For Managing [materials/money/processes'/systems Effectiveness Efficiency Effectively etc]

Resources etc

Career planning/ development/ management helps to plan/develop/fine tune employees competences which improves productivity. CAREER The PLANNING, process of DEVELOPMENT career P, & D, MANAGEMENT & M

Career P,D is the key process in career management. It uses all the information provided by the organization's -assessments of requirements, -the assessments of performance and potential and the management succession plans, and translates it in the form of individual career development programs and general arrangements for management development, career counseling, mentoring and management training. Career P , D the competency band approach

It is possible to define career progression in terms of the competencies required by individuals to carry out work at progressive levels of responsibility or contribution. These levels can be described as competency bands. Competencies would be defined as the attributes and behavioral characteristics needed to perform effectively at each discrete level in a job or career family. The number of levels would vary according to the range of competencies required in a particular job family. For each band, the experience and training needed to achieve the competency level would be defined. These definitions would provide a career map incorporating 'aiming points' for individuals, who would be made aware of the competency levels they must reach in order to achieve progress in their careers. This would help them to plan their own development, although support and

guidance should be provided by their managers, and HR specialists . The provision of additional experience and training could be arranged as appropriate, but it would be important to clarify what individual employees need to do for themselves if they want to progress within the organization. The advantage of this approach is that people are provided with aiming points and an understanding of what they need to do to reach them. One of the major causes of frustration and job dissatisfaction is the absence of this information. A competency band career development approach can be linked to

Aiming 1. Basic 2. Continuation 3. Continuation Career P , Competence band training Competence band of medium Competence band of advanced D is for core 1 and 2 training 3 training as and well as and

points definition experience definition experience definition experience high-flyers


The philosophy upon which career plans are based refers not only to advancing careers to meet organizational and individual requirements, but also the need to maximize the potential of the people in the organization in terms of productivity and satisfaction under conditions of change, when development does not necessarily mean promotion. career P , D is for individuals as well as the organization Career P, D procedures are always based on what the organization needs. But they have to recognize that organizational needs will not be satisfied if individual needs are neglected. Career P , D has to be concerned with the management of diversity. Career plans must therefore recognize that:

* members of the organization should receive recognition as individuals with unique needs, wants, and abilities; * individuals are more motivated by an organization that responds to their aspirations and needs; * individuals can grow, change and seek new directions if they are given the right opportunities, encouragement and guidance. Career P , D techniques Career P , D uses all the information generated by the succession plans, performance, and potential assessments and self-assessments to develop programs and procedures which are designed to implement career management policies, achieve succession planning objectives and generally improve motivation, commitment and performance. The procedures used are those concerned with: 1. 3.mentoring personal and development management planning . development. counseling



In addition, career planning procedures may cater for the rising stars by 'fast tracking' them, that is, deliberately accelerating promotion and giving them opportunities to display and enlarge their talents. But these procedures should pay just as much, if not more, attention to those managers who are following the middle route of steady, albeit unspectacular, progression. 1. Career counseling

Performance management processes, should provide for counseling sessions between individuals and their managers. These sessions should give the former the opportunity to discuss their aspirations and the latter the chance to comment on them - helpfully - and, at a later stage, to put forward specific career development proposals to be fed into the overall career management programs. 2. Personal development planning.

Personal development planning is carried out by individuals with guidance, encouragement and help from their managers/HRM as required. A personal development plan sets out the actions people propose to take to learn and to develop themselves. They take responsibility for formulating and implementing the plan, but they receive support from the organization and their managers in doing so. The purpose is to provide a 'self-organized learning framework'. Personal development planning consists of the following stages: 1. Analyse current situation and development needs. This can be done as part of a performance management process. 2. Set goals. These could include improving performance in the current job, improving or acquiring skills, extending relevant knowledge, developing specified areas of competence, moving across or upwards in the organization, or preparing for changes in the current role. 3. Prepare action plan. The action plan sets out what needs to be done and how it will be done under headings such as outcomes expected (learning objectives), the development activities, the responsibility for development (what individuals are expected to do and the support they will get from their manager, the HR department or other people), and timing. A variety of activities tuned to individual needs should be included in the plan, for example observing what others do, project work, planned use of e-learning programs and internal learning resource centres, working with a mentor, coaching by the line manager or team leader, experience in new tasks, guided reading, special assignments and action 3.MANAGEMENT Formal The formal approaches approaches to to management management development DEVELOPMENT development include:

* Development on the job through coaching, counseling, monitoring and feedback by managers on a continuous basis associated with the use of performance management processes to identify and satisfy development needs, and with mentoring; * Development through work experience, which includes job rotation, job enlargement, taking

part in project teams or task groups, 'action learning', and secondment outside the organization; *Formal training by means of internal or external courses;

*Structured self-development by following self-managed learning programs agreed as a personal development plan or learning contract with the manager or a management development adviser these may include guidance reading or the deliberate extension of knowledge or acquisition of new skills on the job. The formal approaches to management development are based on the identification of development needs through performance management or a development centre. The approach may be structured around a list of generic or core competences which have been defined as being appropriate for managers in the organization. Informal approaches to management development

Informal approaches to management development make use of the learning experiences that managers meet during the course of their everyday work. Managers are learning every time they are confronted with an unusual problem, an unfamiliar task or a move to a different job. They then have to evolve new ways of dealing with the situation. They will learn if they analyse what they did to determine how and why it contributed to its success or failure.




Competency-based management development uses competency frameworks as a means of identifying and expressing development needs and pointing the way to self* managed learning programs or the provision of learning opportunities by the organization. Competency-based management development may concentrate on a limited number of core or generic competences which the organization has decided will be an essential part of the equipment of their managers if they are going to take the organization forward in line with its strategic plans. For example: ‡ Strategic capability to understand the changing business environment, opportunities for product-market development, competitive challenges and the strengths and weaknesses of their own organization in order to identify optimum strategic responses; ‡ Change management capability to identify change needs, plan change programs and persuade others to participate willingly in the implementation of change ‡ Team management capability to get diverse groups of people from different disciplines to work well together. ‡ Relationship management to network effectively with others to share information and pool resources to achieve common objectives; ‡ International management to be capable of managing across international frontiers working well with people of other nationalities.

Mentoring Mentoring is the process of using specially selected and trained individuals to provide guidance and advice which will help to develop the careers of the 'prot6g6s' Allocated to them. Mentoring is aimed at complementing learning on the job, which must always be the best way of acquiring the particular skills and knowledge the job holder needs. Mentoring also complements formal training by providing those who benefit from it with individual guidance from experienced managers who are 'wise in the ways of the organization'. Mentors provide for the person or persons allocated to them :

advice in drawing up self-development programs or learning contracts; general help with learning programs; guidance on how to acquire the necessary knowledge and skills to do a new job; advice on dealing with any administrative, technical or people problems individuals meet, especially in the early stages of their careers; information on 'the way things are done around here' the corporate culture and its manifestations in the shape of core values and organizational behaviour ; 0 coaching in specific skills; 0 help in tackling projects - not by doing it for the trainees but by pointing them in the right direction, that is helping people to help themselves; 0 a parental figure with whom the trainee can discuss their aspirations and concerns and who will lend a sympathetic ear to their problems. KNOWLEDGE MANAGEMENT [ K M ] Knowledge management is a discipline that promotes an integrated approach to the creation, capture, organization, access, and use of an enterprise's information assets. These assets include structured databases, textual information such as policy and procedure documents, and most importantly, the tacit knowledge and expertise resident in the heads of individual employees. Large number of Companies still see knowledge management as a purely technology solution Organisations have adopted a number of relevant technologies for KM purposes. use the Internet to access external knowledge, -use an intranet, use data warehousing or mining technologies, document management systems, -decision support, -groupware and extranets. From the above analysis, it comes crystal clear, that knowledge management is the resource input for business productivity improvement. For existence and survival of any organization it is must to improve the productivity. To improve the employee productivity it is necessary to impart them with training and motivate them internally. Management development program improve executives skills, their decision making skill, train them for working in team. These developments in executives vary much helpful for improving overall productivity of the organization. Now, we can conclude that increment productivity of the employee or organization is dependent on training and development.

Questionnaire for Management Development Programme and Productivity:

1) Is MDP necessary for the Executives? a. Agree b. Strongly agree c. Disagree d. Strongly disagree e. Somewhat 2) Is MDP helpful for the Executives? a. Agree b. Strongly agree c. Disagree d. Strongly disagree e. Somewhat 3) Is MDP helpful for your organization in terms of improving productivity and work life? a. Agree b. Strongly agree c. Disagree d. Strongly disagree e. Somewhat

4) What should be the duration of MDP? a. A week b. 15 days c. one month d. 45 days e. two month 5) Is there any substitute for MDP? a. Yes b. No c. May be 6) How do you rank the effectiveness of MDP? a. High b. Very high c. Low d. Very low e. Medium 7) Is MDP linked to organization goals & strategy? a. Yes b. No c. May be d. Can t say

8) Is MDP needed to be given to the executives after every specific time intervals? a. yes b. no c. may be d. can t say 9) When does management provide MDP to their executives? a. at the time of joining of organization. b. one month often time of joining of organization. c. three month often time of joining of organization. d. six month often time of joining of organization. e. anytime, when management feels need.

We have circulated these question to HR of different companies and we have analyzed their replies. 1.) According to HRs, Management development program is vary important for every company. MDP helps to improving leadership, decision making skills of the executives. This help attaining the goal of the companies at ease. 2.) According to HRs, MDP is very helpful for the executives. MDP trains the executives to take smart decision in complex situation. MDP increases the skills of the executives. 3.) According to HRs, MDP is very helpful in organization for improving productivity and work life. 4.) HRs hold MDP in the organization for the duration of a 1week to 1month as per required. 5.) According to HRs there are many other programs held in the organization for improving the skills of the executives but no other program is as much effective as MDP. 6.) According to HRs MDP is one of the most effective programs for improving skills of the executives. 7.) According to HRs MDP is very much associated with organization goal and strategies as it improve the skills of human resources. 8.) MDP are frequently required for executives. Internal HRs or External HRs frequently held MDP in the organization.

Discussion and Finding:1.Management Development programme effects the employee right from the point of entry till the time of exit from the organization. 2.This programme is helpful for the executivies in developing their skills and abilities day by day. 3.The combination of techniques are required for making an effective Management Development Proramme. 4.Management development is a long term and continuing phenomenon equipping a person with skills and concepts that could prepare him to take up new responsibilities and challenges. 5.Management development is also helpful in attaining the goals of organization and helps the organization in its overall improvement.

Conclusion:Management Development program is a very sensitive function of an organization. Management development and training will play a significant role in the socio-economic and political emancipation of India especially in the changed context of globalization. Bitten by the globalization bug, the government, public sector and private sector are redefining their Vision of Management Development and Training. Although the management development and training function has not made significant headway so far, the country is now well set to undergo a paradigm shift in this direction. The role of training and development of an organization and individuals' productivity are immeasurable. Proper implementation of the program enhances individual performance and productivity.

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