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Learning objectives!
34.3-Purpose and objective of management development
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Managers, supervisors and executives are the most crucial in effective decision-making
and therefore most of the enterprises want to ensure that these personnel are up-to-date
34.1-Introduction! and well-motivated. Without competent executive reservoir, no organisation can hold a
place of leadership despite its vast resources like capital, technology and others. Other
resources would remain unproductive and underutilised when there is a dearth of
A manager is considered, in modern complex organisations, as the dynamic life- executive talent in the organisation. It is the executive who plan, organise, direct and
giving element and the success of an enterprise largely depends on his calibre control the resources and activities in an organisation; it is the executives who are
and performance. Every business unit is interested in improving the quality of responsible for translating the resources into output. Thus, undoubtly, the executives
managers (including the chair-person, departmental head, personnel represent basic building blocks of an organisation. Realising the fact that executives form
administrator, a planner, an organiser, and a coordinator, a supervisor, executive, the crucial activating elements in building strong organisations, managements are laying
administrator etc). All organisations, in order to ensure high quality of emphasis on executive development programmes on a mass scale and spending huge
management, should devote great attention to improve the quality, introduce amount of money. Organisations have recognised the fact that without adequate
imaginative and innovative management development programmes and achieve executive development programmes it would not be possible for the executives to
the organisational objectives. shoulder heavy responsibilities and accept towering assignments in the wake of troubling,
uncertain, unpredictable environmental challenges.
34.2-What is executive development?
34.4-Why to develop Executives
The terms 'executive development' and 'management development' are used
synonymously and interchangeably. Management development is "the (i) In the context of rapidly changing technology and changing business scenario, the skills
development of management over and above its science and theory, its practice of executives become obsolete, sooner than later when there are no training and
and application in organisations, corporations and institutions, alike in relation to development programmes in the organisation. As pointed out by Dale Yoder, "Without
the organisation and manager, so as continuously to re-equip both to fulfill their training, the executives lose their punch and drive and they die on the vine. Training and
purposes more effectively and in harmony with each other, and both with the development are the only ways of overcoming the executive dropouts.”
environment in which they function and have their being and hope to thrive upon
and grow...” (ii) Basic change in the style and functioning of management and the posture of managers
today emphasizes the role of training and development of traditional managers. The
Thus, management development (i) involves making exercises in managerial modern-day manager is more of a diagnostician rather than one who follows blindly the
manpower flows and future inventories of human skills, abilities and resources to dogmatic principles. Dale Yoder points out that "the new manager is a connoisseur of all
match the demands of expanding and diversifying operations of the enterprise, (ii) goodies coming into the shelves from behavioral scientists". Learning is an important
is concerned with forecasting of human resources balance sheets and factor for achieving success in the job performed by executives. Peter F. Drucker is of the
programmes to even out manpower surpluses and deficits, (iii) attempts at opinion that the executive's job is to be effective and the effectiveness can be 'learned/
increasing professionalisation of management in order to replace the outdated, Executives learn through the 'development programmes'.
traditional, dogmatic and centralized authoritarian pattern of management by
more democratic norms, (iv) attempts to adapt the organisation structure, (Iii) In the present era of stifling competition, the survival and success of a firm depends on
systems, procedures and development of managers of today to meet the demand the manpower and managerial quality. Special programmes for developing managerial
of tomorrow to make the organisation more challenging and successful. skills are considered vital to encounter the costly game of 'manpower obsolescence.'
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Evaluation of the existing managerial talent is another indispensable component of a 34.13 Evaluating the development programmes
management development programme. Here, the performance of existing executives
is compared with that of expected performance to note the differences between the Evaluation is an attempt to obtain feedback on the effects of an executive
standards and actual performance. This would help the management to become development programme and to assess the value of training in the light of the
aware of the good performers and bad performers. Appraisal of managerial talent is information. Evaluation is necessary to stimulate a high level of involvement and
also necessary to know the growing potential of executives so that organisations interest of executives; to know whether programmes have really contributed to the
prepare them for vertical advancement. effectiveness of the enterprise; to decide whether the programmes need to be
continued or replaced by other activities, etc. The methods of conducting evaluation
of executive development programmes include; observation method (i.e. observing
the behaviour of executives systematically, quantitatively and specifically), rating
method (under which various elements of the training system should be rated
independently), trainee surveys (conducted for the purpose of knowing the opinion of
the trainees about the programmes) and
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(a)-Case studies,
(b)-Role playing,
trainee interviews (to elicit the ideas and views of the trainees). (c)-In-basket methods,
(d)-Business games,
Finally, it must be pointed out that a management development programme cannot (E)-Sensitivity training,
take place in an unfavourable climate of an organisation. The management (f) Simulation,
development process is largely influenced by the environ- j merit of an organisation (g) Incident method,
and the manner in which superiors and peers i receive the programme and how they (h) Conferences,
encourage ideas, take initiative I and how they cooperate with the trainees. There (i) Lectures, and
must be a wholehearted support from the top management and willingness on the part (j) Syndicate method
of the concerned executives who act as trainees. To ensure success of the executive I
Let us briefly discuss these methods of bringing about executive development.
development programme, a blue print should be prepared and communicated to the
top management which in turn accepts and gives necessary instruction to the On-the-job techniques
personnel department for conducting the programme. The personnel department
should communicate the contents, purpose and objective of the programme to the On-the-job methods are most popular for developing executive talent. Here, both the
trainee executives. trainee executive and trainer are not free from their daily chores and the pressure of
their executive routine jobs. Some of the most common techniques of executive
34.14- Techniques of Executive development development which fall under the category of on-the-job techniques are as follows:-
Management development techniques are several and diverse depending on the (a) Coaching method
context and purpose. These include: conferences, lectures, seminars, group Under this method, the superior acts as a guide and coaches the trainee executives
discussions, case studies, films and slides, outside reading, role playing, workshop, as to what he wants them to do, suggests how the work may be done, follow-up
study panels, etc. Some other techniques include: job rotation, coaching and suggestions and corrects the mistakes. The main objective of coaching the
counseling, professional lectures, membership in professional and technical executives is to provide them with diversified knowledge and teach them the methods
associations, committee assignments, management courses in reputed institutes and of performing the immediate assignments effectively. The superior delegates
universities, in-basket techniques, business games and T-group training, etc. Each authority to subordinate executives to prepare them to handle complex situations.
technique has a unique purpose of its own. Edwin Filippo contends, "techniques such The coaching method enjoys the following merits:-
as in-basket methods, business games and case studies purport to develop decision-
making skills, while role-playing, sensitivity, training and structural insight are likely to 1-The coaching method is akin to learning by doing.
develop interpersonal skills for the executives. Further, while special projects, 2-Coaching method requires the least centralised co-ordination from staff because
counseling, etc meet the specific needs of executives, on the job-experience, coaching every superior can coach his subordinates even without a formal management
and understudy provide job knowledge and multiple management and position rotation development programme.
enhance an executive's organisational knowledge. These methods can be discussed
under the following heads:- 3-Immediate feedback and periodic evaluation enable the trainee executives to learn
the job easily and without mistakes.
1. On-the-job techniques: These methods comprise of The chief demerits of the coaching methods are as follows:-
(a)-The coaching method, 1. The trainer may impose upon the trainees his work habits, ideas, beliefs, and
(b)-Understudy method, methods of doing the work. Coachingmethod, therefore, has a tendency to
(c)-Job rotation, perpetuate the current management styles and practices rather than promoting
(d)-Special projects, innovative styles.
(e)-Committee assignments, and
(f)-Selective readings. 2. The effectiveness of coaching methods depends on the ability of the trainer. If the
trainer is inexperienced, possesses pseudo-knowledge, and follows dogmatic
principles, there would not be any use of coaching the trainee executives
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2-The motivation of all other employees in the unit (other than the 'understudy')
would be adversely affected because they become aware cf the 'understudy' in
advance, who would become the next occupant for higher mana
gerial position.
Coaching method would be effective if the superior has extraordinary communicative 3-If a wrong person is selected as 'understudy' (due to favouritism or any other
skills and if he provides a common platform for exchanging the ideas with the trainee factor) there are opportunities for sizeable errors which may turn out to be costly
executives 'Without becoming dominant and if he has the capacity to stins»late the to the entire organisation.
executives to learn and practise the work. As pointed out by Stephen P. Robbins,
"Coaching method would work well if the coach provides a good model with whom the
trainee can identify; if both can be open with each other, if the coach accepts his (c) Job rotation method
responsibility fully and if he provides the trainee with recognition of his improvement
and suitable rewards". Another excellent method for broadcasting the knowledge of a manager is 'job
rotation' (also known as the Channel Method) emphasizing the diversified instead of
(b) Understudy method specialized skills ind knowledge. Under the job rotation method, the specialists are
translated into 'generalists' or 'all-rounders' because the executives are moved from
Also known as 'attachment method', under this system, a person is picked up and one job to another on some planned basis in order to learn and develop all-round
subjected to training so that he in future, assumes the full duties and responsibilities knowledge. As pointed out by H. Bedrosian, "Job rotation is designed for beginning
of the position currently held by his superior. It is necessary to ensure a fully trained level managers while planned progression is more likely to occur at higher
person to replace a manager (superior) during his long absence or illness, or on his managerial levels." Under the job rotation method, the trainees are rotated over
retirement, transfer or promotion. 'Understudy' method is aimed at providing a person various routine jobs in a department, division, or unit before they are promoted as
who is going to replace the existing superior. A manager can pick up a subordinate managers. This rotation period may vary between six months to two years. Job
(from the existing lot of subordinates) and trains him by assigning a project, which is rotation is aimed at broadening the knowledge of potential executives in an
most closely related to the work of superior. Here, the subordinate learns the organisation. Job rotation may be horizontal or lateral. It also includes moving people
complexities of a problem, and h»w to solve the problem; learns the art of making between line and staff positions. Job rotation programmes can be instituted on a
decisions effectively. planned basis or situational basis. On a planned basis, an executive may be
The chief merits of understudy method are as under:- subjected to an activity (like training) and then is moved onto a job. On a situational
basis, an executive may be moved onto another job because of the requirements of
1-This is perhaps the better method of training subordinates to assume higher the situation.
responsibilities in future.
2-The trainee learns on-the-job and hence the learner's motivation and interest The merits of job rotation are as under:-
would be high.
3-The superior may be relieved of heavy work load because he can delegate a 1-The innovative ideas of executives who are on rotation are in fused into
part to the 'understudy'. departmental personnel and then diffused throughout the organisation.
4-The leadership qualities of the trainee would be developed because he may be 2-Executives take a broad, company-point-of-view, rather than narrow,
asked to supervise and guide a number of subordinates at work. departmental-view, and hence take fruitful decisions.
5-The trainee is not overburdened with the work and responsibility and at the 3-Job rotation gives equal chance for all the executives for development and
same time he continuously obtains guidance from his superior manager. promotion.
6-The 'understudy' method ensures continuity of managerial talent even when the 4-Job rotation roots out the possibility of monotony and boredom of executives.
superior leaves (retires, transfers, or gets promotion) the department or 5-Each executive's talents, intelligence, abilities and behaviour is tested at several
organisation. places as they move on from one job to another.
7-The 'understudy' method is not a costly affair because it is coming within the 6. Job rotation promotes inter-departmental co-operation.
purview of 'on-the-job training
programme.’ Job rotation suffers from the following defects:
On the negative side of the coin, the following are the chief demerits of understudy 1.- Job rotation may involve frequent transfers, which may upset the executive's
method:- organisational, family and home life.
1-The 'understudy' may be picked up by the superior and in this process he may
exhibit favouritism; this may promote the tendencies of sycophancy and 2-Executives may commit errors in the new seats because of lack of
perpetuation of the existing practices of in-breeding. understanding, experience, and operations in the new field (seat)
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Off-the-job methods
The chief disadvantages of the in-basket method are:- 3-Games represent merely simulations which may not be very close to reality and
therefore, it would be wrong to infer that those who are successful in mwould also
1-The in-basket method may discourage original ideas because the ideas of an be successful in real jobs.
executive may be turned down by the group as a whole.
2-The solutions prescribed by the group of executives may not be accepted by the top (e) Sensitivity training
management and hence the entire exercise may become redundant and Originally developed by a behaviourial scientist Kurt Lewin and popularised by the
unnecessary. National Training Laboratories, U.S.A., sensitivity training (also known as T-group
training) is a "group experience designed to provide maximum possible opportunity
(d) Business games for the individuals to expose their behaviour, give and receive feedback, experiment
Also termed as 'management games', these games refer to the classroom simulation with new behaviour and develop awareness of self and of others" (Chris Argyris). The
exercises in which different teams consisting of individual executives are required to fundamental objectives of sensitivity training are:-
compete with one another in order to achieve a given objective. Here, an artificial
atmosphere close to the real life situation is created in which the participant 1.To help the executives in improving their understanding of human behaviour and
executives play a dynamic role and enrich their skills through involvement and their ability to read others and predict actions of fellow-colleagues.
simulated experience. The team usually consists of two to six members and each 2-To increase the participant's awareness of the impressions created by him on
team takes decisions on production, prices, research expenditure, advertisement others.
expenditure, marketing and the amount of expected profits under hypothetical 3-To highlight the sensitivity of other executives for the actions and feelings
conditions. The decisions are fed into a computer, which has been programmed (opinions) of him.
according to the model of the market being followed. Such management games 4-To increase personal satisfaction from relationship with other executives.
continue for a period ranging between a fortnight to six months. At the end, the final 5-To achieve greater behaviourial effectiveness in transactions with one's various
results are worked out by each team and compared with that of the competing environments.
counterparts. 6-To develop concepts and theoretical insights that will serve as tools in linking
personal values, goals and intentions to actions that are consistent with these
Management games are aimed at teaching the executives how to take useful and inner factors and with the requirements of the situation under question.
profitable managerial decisions and make the executives aware of the existence of
various group processes, conflicts, leadership problems and ways of maintaining ties A T-group is a small group consisting of ten to fifteen executives who meet with no
of friendship with peers in other departments or functional areas: formal agenda and discuss on important problems. This is a leaderless group and
the essence to T-group training is a self-examination and introspection of the
The possible payoffs of management games can be listed thus: behaviour of oneself and also others. This is a kind of behaviourial training that is
aimed at bringing about organisational development.
1-It is very interesting for the dynamic executives to play games and learn, in this
process, the art of making decisions, developing the problem-solving skills, (f) Simulation
understand the importance of planning in management. Simulation is special training technique conducted on a duplicate environment which
is a mock up of a real life environment. Here the essential features of a real-life
2-Executives can analyze and select the relevant data from the available mass of situation in an organisation or activity are abstracted and presented before the
information and would be able to decide about the important aspects even with executives. The executives then are asked to assume different roles and asked to
incomplete information by filling up the gaps. make decisions that have a real effect in simulation and about which they receive
rapid feedback. Under the simulation method, a single hour may be equated for a
The chief limitations of the management games as a method of executive month, or a quarter of a month in real life. Like this, several events may be
development can be listed thus:- experienced in a relatively short span of time.
Simulation is a useful technique of executive development because the decisions
1-Games are expensive to develop and administer and small organisations cannot taken are reversible (if wrong decisions are taken) and less costly to the enterprise.
afford to manage them. One long-standing deficiency of the simulation technique is that it is difficult to
duplicate the reality (especially the pressures and problems) of actual decision-
making on jobs. Quite truly, individuals might act differently in real life