THE

MANAGEMENT
DEVELOPMENT
PROCESS
 THE MANAGEMENT DEVELOPMENT
PROCESS
Management development is concerned with
developing the experience, attitudes, and skills
necessary to become or remain an effective manager.
To be successful, it must have the full support of the
organization’s top executives.
Management development should be designed,
conducted, and evaluated on the basis of
•the objectives of the organization,
•the needs of the individual managers who are to
be developed, and
•anticipated changes in the organization’s
management team.
Organizational Management Inventory Changes in the
Objectives and Succession Plan Management Team

Net Management
Requirements

Needs Assessment

Management
Development Objectives

Management
Development Programs

Evaluation of Programs

Figure 2.1: Management Development Process

 Determining the Net Management Requirements
THE MANAGEMENT DEVELOPMENT PROCESS

Organizational Objectives:
An organization’s objectives play a significant role
in determining the organization’s requirements for
managers. For instance, if an organization is
undergoing a rapid expansion program, new
managers will be needed at all levels. If, on the
other hand, the organization is experiencing
limited growth, few new managers may be
needed, but the skills of the present management
team may need to be upgraded.
 Determining the Net Management Requirements
THE MANAGEMENT DEVELOPMENT PROCESS

Management Inventory and Succession Plan:

A management inventory, which is a specialized
type of skills inventory, provides certain types of
information about an organization’s current
management team. Management inventories often
include the information such as present position,
length of service, retirement date, education, and past
performance evaluations. Table 2.1 illustrates a
simplified management inventory.
 

A management inventory can be used to fill

vacancies that occur unexpectedly-for example, as a
result of resignations or deaths. Another use in
planning the development needs of individual
managers and using these plans to pinpoint
development activities for the total organization.
 Length
Present Retirement Replacement Previous Training
Name of
Position Year Position Received
Service

Industrial
B.B.A., University of
relations Corporate
James W. South Carolina; middle
Manager, 5 years 2013 industrial
Burch management program,
Greenville relation staff
Harvard.
plant
Plant
engineering
Judy S. Engineering 9
2020 manager, B.E.E., Georgia Tech
Chesser trainee months
corporate
engineering staff

Supervisor, Department
High school diploma,
Thomas receiving manager,
15 years 2015 supervisory skills
R. Lackey department, shipping and
training
night shift receiving

Eastern
B.B.A., M.B.A.,
Brenda C. regional Vice president,
8 years 2018 executive development
Sabo marketing marketing
program, Stanford.
manager

Table 2.1: Sample of a Simplified Management Inventory

 Determining the Net Management Requirements
THE MANAGEMENT DEVELOPMENT PROCESS

A management inventory can also be used to

develop a management succession plan,
sometimes called a replacement chart or schedule.

A management succession plan records potential

successors for each manager within the organization.
Usually presented in a format similar to an organization
chart, this plan may simply be a list of positions and
potential replacements. Other information, such as
length of service, retirement data, past performance
evaluations, and salary, might also be shown on the
replacement chart. Figure 2.2 is an example of a
replacement chart for a company’s administrative
division.
 Vice President-
Administration
 Shah Masud Imam
Khaled Mahmud
Md. Kamruzzaman
Md. Mohidul Hasan

Accounting Department Finance Department Personnel Department Planning Department

Manager Manager Manager Manager
 Shakil Mansur  Ferdous Mollah  Faizul Kabir  Khaled Mahmud
Md. Zahangir Alam Nigar Sultana Md. Younus Ali Md. Mizanur Rahman
Md. Ziaur Rahman Md. Asaduzzaman Md. Shahinul Islam Md. Ibrahim Hossain
Md. Hasebur Rahman Md. Ferdaus Kabir Abdullah Al Maruf Raktim Sarker

Employment Department Employees Benefits Wage and Salary

Manager Manager Department Manager
 Md. Younus Ali  Marufa Siddika Ehsanul Kabir

Md. Mukul Hossain Md. Shakhawat Hossain Md. Zahangir Alam

Md. Shariful Alam Md. Zaidul Islam Md. Enamul Haque
Md. Mezbah Uddin Md. Enamul Hoque Raktim Sarker

Training and Development Labor Relations Manager

Department Manager
 Md. Faruk Alam
 Md. Shahinul Islam
Md. Kawsar Alam
Md. Masud Rana
Md. Shahidul Alam
Sk. Zubaeid Mahmud
Md. Shabbir
Md. Asaduzzaman

Figure 2.2: Replacement Plan for Administrative Division of a Typical Organization

 Replacement chart
• A chart used to estimate vacancies in higher level jobs and
identify how potential HR supply can fill these vacancies via
internal movements from lower levels jobs.

• Replacement charts provide identification of potential

replacements for vacancies within an organization.
Replacement Chart
 Succession Planning

• Succession planning is a long-term process of

identifying and developing the potentiality of
internal employee to fill the key
management/key position of company. The
process of deciding how to fill the companies
most executive jobs.
 Determining the Net Management Requirements
THE MANAGEMENT DEVELOPMENT PROCESS

Changes in the Management Team:

Certain changes in the management team can be estimated
fairly accurately and easily, while other changes are not so
easily determined.
Changes such as retirements can be predicted from information in
the management inventory; changes such as transfers and
promotions can be estimated from such factors as the planned
retirements of individuals in specific jobs and the objectives of the
organization. Deaths, resignations, and discharges are, of course,
difficult to forecast.
However, when these changes do occur, the management
inventory and succession plan can be used to help fill these
vacancies.
Analyzing the organization’s objectives, studying the
management inventory and succession plan, and evaluating
changes in the management team can give the human
resource department a good picture of both the quantity and
quality of managers the organization will need.
 Needs Assessment
THE MANAGEMENT DEVELOPMENT PROCESS

Every organization has physical, financial, and human

resource needs. Needs related to what the organization
must have to achieve its objectives.
A fundamental need of any organization is the need for an
effective management team.
One method of meeting this need is the use of well-
organized management development program.
However, before management development activities are
undertaken, the specific development needs of the
managers in the organization must be determined. Thus,
needs assessment is a systematic analysis of the specific
management development activities the organization
requires to achieve its objectives. The management
development needs of any organization result from the
overall needs of the organization and the development
needs of individual managers.
 Needs Assessment
THE MANAGEMENT DEVELOPMENT PROCESS

Basically, four methods exist to determine management

development needs;
A training needs survey (focuses on the knowledge and
skills required in performing the job), competency studies
(examine the competencies required in performing the
managerial job), task analysis (is concerned with what
tasks are required in performing the managerial job), and
performance analysis (deals with job performance
requirements in performing the managerial job).
 
Table 2.2 summarizes the general approach, advantages,
and disadvantages of each of these methods of determining
management development needs.
 Establishing Management Development Objectives
THE MANAGEMENT DEVELOPMENT PROCESS

After the management development needs of the

organization have been determined, objectives for the
overall management development program and for individual
programs must be established to meet those needs. Both
types of objectives should be expressed in writing and
should be measurable.

Training objectives can be categorized within three broad

areas:
•instructional,
•organizational and departmental, and
•individual performance and growth.
This categories scheme can also be used for management
development objectives.
 Management Development Program
THE MANAGEMENT DEVELOPMENT PROCESS

After the company’s needs have been assessed and its

objectives stated, management development programs can
be implemented. Some of the more frequently used methods
of management development are illustrated in table 2.3. As
with employee training, management development can be
achieved both on and off the job.
On the Job Off the Job

Understudy assignments Classroom training

Coaching Lectures
Experience Case studies
Job rotation Role playing
Special projects and committee
In-basket technique
assignments
Programmed instruction
Business games
University and professional association seminars
Table 2.3: Selected Methods Used in Management Development
 Evaluation of Management Development Activities
THE MANAGEMENT DEVELOPMENT PROCESS

Four alternatives exist for evaluating management

development activities. Each alternative focuses on the
following questions:
•Alternative I- Are the trainees happy with the course?
•Alternative II- Does the training course teach the
concepts?
•Alternative II- Are the concepts used on the job?
•Alternative IV- Does the application of the concepts
positively affect the organization?
For each of the four alternatives, an organization must
determine what might be measured to answer the question
posed by the alternative and what source of data can help in
its measurement.