LECTURE 12 : THE CONCEPT OF MANAGEMENT DEVELOPMENT

Introduction
Many managers are promoted into managerial roles because they exhibited
strong performance as technicians. The shift from technical to strategic can be a
difficult one, however, and many new managers flounder. Too often
organizations provide no formal development program for its new managers—
and no "refresher" training for existing managers or high-potential employees.
An organization's managers are its direct link to employees—they have a strong
influential role and impact on performance and morale. The business
environment is changing at an ever-quickening pace requiring ongoing
education. Managerial work has become increasingly fast-paced, less structured
and more reliant on strong interpersonal and leadership skills than ever before.
In addition, with a shrinking labor pool, organizations need to take steps to
identify strong leaders and provide the appropriate development opportunities
for them. Growing talent from within is becoming an increasingly prevalent
staffing alternative.

What is management development?

Management development, as a process, is usually considered to be something
for senior management in the organisation. Of course, the development of
managers is part of the general learning processes, ensuring competence at all
levels in the organisation but the development of senior management is
generally a little different. Significantly, it is less about the development of
managers than the development of “management”. This implies a strong
corporate focus and a team approach, as well as the concern for individual
effectiveness.

Thus, three dimensions can be identified:

At the personal level: The continuous acquisition of the skills and abilities
necessary for the management of oneself and others, allied, at senior level, to
effective performance in team working, high level communication skills (both
within and outside the organisation) and importantly, working with boards and
committees in both formal and informal structures in the interplay of policy and
decision making.
 In respect of the management team: The need to build and consolidate strong,
innovative working relationships, which provide for mutual respect and allow
for individual abilities and aptitudes to be recognised and brought to bear in
corporate decision making.

From the organizational perspective: The definition and development of the

purposes and ethos of management itself, within the organization and the
structures and processes through which these may be effected.

Management development is concerned, then, with the totality of managing

(running) the whole organization. It is not just about improving the knowledge,
skills and attitudes of managers. It is about effective management behaviour; the
development of appropriate management styles and practices from the top down,
in the search for improved performance in meeting the challenges facing the
organization. It is an integral part of planning and organising to meet corporate
goals.

Management development activities focus on:

Every manager within the company
Future and present needs
Self-development and performance: knowledge, experience, attitude and
skills
Team development and team working.

What is personal development?

Personal development may be seen as a process of preparing oneself to meet the
future requirements of one’s own career. In the rapidly changing conditions of
the modern business environment, personal development can assist progress and
flexibility in employment, both within organizations and in the wider labour
market. Increasingly, the adaptability of individuals to change to meet new
needs and the possession of appropriate skills, is seen as an important personal
attribute. This demands that the individual takes responsibility for themselves.
The context within which a great deal of personal development takes place, is
the organization in which individuals work. The focus for this is often the formal
appraisal system, with its emphasis on two-way communication and the
appraisee raising issues relevant to their development. However, in modern
organizations the emphasis is, also, often placed on individuals taking
responsibility for their own development. There is a view that the development
process should be individual-led as much as organizational-led. The function of
management should be to encourage this self-development and channel it for the
benefit of the individual and the organization.
The process of personal development is very much the same, as we shall
consider below in relation to learning in general. However, it is essentially based
on self-audits of skills and gaps. Career development is an important aspect of
personal development in organizations. This involves employees formulating
their own personal development plans (PDPs) which outline objectives and
timescales for career development activities. Action plans/development plans
should be reviewed on a regular basis to see if objectives have been achieved.
Many professional institutes require their members to undertake continuous
professional development (CPD) to keep their knowledge, skills and experience
up-to-date Personal development also includes elements of employability;
knowledge, competencies and skills that enhance an employee’s employment
portfolio. It also encompasses desirable experience that can be transferred to
another job. This very much places an emphasis on the individual organising
their own development activities. It is also a way of improving employee
motivation and morale.

LEARNING, TRAINING, DEVELOPMENT OR EDUCATION?:

No organization can function without developed people. An appropriately

trained and developed human resource can mean the difference between
organizational success and failure. Organizations are in a constant state of
change: production processes change, to improve the quality and output of
products and systems change, to improve the flow of inputs and outputs. If skills
and knowledge are not updated too, then employees will be unable to
adapt to these changes.

So what is the difference between training, learning, education and

development?
In considering the subject of employee development, we shall constantly make
reference to these terms and it is important to be clear about each of them at the
outset.

Development
The Manpower Services Commission defined development as “the growth or
realisation of a person’s ability, through conscious or unconscious learning”
(1981). Thus, it more concerned with long-term individual, or organizational,
development than short-term performance, although it encompasses this. It
emphasises continuous learning and growth. For the organization, it provides a
focus to plan its own future through its human resources.
 Training
Training has been defined as “a planned process to modify attitude, knowledge
or skill behaviour through learning experience to achieve effective performance
in an activity or range of activities”. Training is essentially concerned with
short-term performance of the job or task in hand. As such, it provides the
preparation to undertake specific requirements by, usually, the development of
particular skills. So, for example, it may include training to use a new piece of
equipment or a new computer application, or to improve letter writing or report
writing skills. It may also be linked to development plans, for the individual
and/or the organization, in which case it may be applied to assist with career
growth and the building of skills, which may or may not be immediately
required but will be in the future.

Education
Education has been defined as activities that “aim to develop knowledge, skills,
moral values and understanding required in all aspects of life rather than a
knowledge and skill relating only to a limited sphere of activity”. As such, it
encompasses the concept of why things happen, rather than simply how they
happen (or can be made to happen). This can help to make skills more
transferable. Education is also about the wider knowledge underpinning
processes and procedures, and their contexts. It is, therefore, a key element of
development and closely associated with professional development.

Learning
Learning is the process by which individuals acquire the knowledge, skills and
behaviours/attitudes that they use to deal with all aspects of life.
The study of learning is a whole subject in itself but managers need to
understand certain aspects of the process, to help others to learn and develop. It
underpins the way in which effective training and education is provided and a
misunderstanding of the processes involved can easily render such provision
ineffective.

VALUE OF LEARNING
Learning is one of the keys to ensuring the effectiveness of an organization’s
workforce; that employees have the necessary knowledge, skills and attitudes to
undertake the jobs that they currently hold and that there is a pool of such
attributes in the workforce, which will enable the organization (or, by extension,
the whole economy) to meet its future needs.
Is learning the solution to all problems?
Learning is not a universal panacea for the ills of an organization or even an
individual. It can certainly be applied to resolve problems of effective
performance. However, such problems may need to be addressed by alternative
courses of action, such as organizational change, the application of new
technology or working practices, or even the redeployment of individuals.

What is the purpose of learning?

This needs to be clearly understood as a basis for the appropriate use of learning.
From the organization’s point of view, the purpose of learning is to:
Maximize productivity or service provision
Develop the adaptability of the workforce
Develop the organization as a whole
Increase job satisfaction, motivation and morale
Improve standards and safety at work
Make the best use of existing material, resources and equipment
Standardise working practices and procedures.

What is driving organisations to change?

All organisations are faced with rapid and continuous change. This comes from
both internal and external forces:

(a) Internal forces

New products and services
New ways of doing things
New people and equipment in carrying out processes
Financial pressures, such as budgetary constraints.

(b) External forces

Political changes, including legislation
Changes brought about by the economic cycle
Social and demographic changes creating new demands on the organization,
especially as customers become better informed and more demanding
Changes in the external technological environment.

Proactive organizations adopt a positive approach to these challenges by seeking

to incorporate development in the strategic plan. This should chart not only
where the organization is going in the medium to long term, but should also
have constituent plans for each part of the organization, including human
resources. Learning is inextricably linked to the process of change.
Who is responsible for the training and development function?
Training originally evolved as one activity within the human resource
management function. As a consequence, many organizations recruited trainers
to work directly for the human resources manager. This link with human
resources management continues today, though most accept that learning is of
such importance to an organization that there may be a fairly high level
executive, perhaps even board member, responsible for these activities.
Some organizations recognise the value of development and are more proactive
about it.

The 1990s heralded an increase in the investment made in learning, but this has
not always been the case. Only 20 years ago training, along with marketing, was
often a “Cinderella” activity in UK businesses, extremely vulnerable to cuts in
budgets and other resources during times of financial strain. The reasons for this
are clear. Most managers would consider both training and marketing to be vital
activities, but many of the outcomes are difficult or impossible to quantify in
terms of tangible benefits to the enterprise. Training is also costly and in times
of financial constraint, presents an easy target for savings since it does not
immediately impact on production.

In 1985 Coopers and Lybrand published a major report on the state of training in
organizations. The report, entitled A Challenge to Complacency outlined poor
training investment by organizations, operating in a state of complacency and
failing to recognise the importance of training.

The report:
Encouraged companies to invest in human resource development
Encouraged companies to adopt a more systematic and planned approach,
including the organization of the training function and the utilisation of expert
learning practitioners
Encouraged companies to be more rigorous in the way they cost and
evaluated training programmes, to enable managers to appreciate its benefits and
effectiveness to the organization in relation to its cost
Encouraged the use of case studies to highlight best practice: how training can
be used to help the company achieve its mission, corporate objectives and
strategy and, importantly, how failure to train can stunt organizational growth
and promote a culture of failure.

Some of the assumptions underlying the position reported by Coopers and

Lybrand may be described as follows:
 The assumption that only well-off organizations can afford training:

This is not correct. Any organization, large or small, has a wealth of learning
and training opportunities at its fingertips. Employers do not have to spend
thousands of pounds on a training programme. Valuable learning and training
experiences can be gained from:
(i) Observing others by job shadowing
(ii) Sitting with Nellie and watching what a trained person does on a day-to-day
basis
(iii) Mentoring or coaching, etc.

The assumption that education, learning is the responsibility of the

human resources department:

It is true that learning has to be someone’s responsibility and it appears natural

and logical that it should be the responsibility of the human resource
department, since learning forms part of human resource strategy and the human
resource plan. However, laying the responsibility for learning at human
resources’ door should not be an excuse to ignore the whole organisation’s
responsibility to ensure that learning is carried out.

(i) Top management has a responsibility to ensure that it allocates sufficient

money to support and finance development activity and that it forms part of the
overall corporate strategy.
(ii) Line managers have a responsibility to ensure that they encourage their
staff to develop themselves and that time is allocated for learning activities.
(iii) Employees have a responsibility to ensure that they develop their
knowledge, skills and experience and that learning activities are mentioned in
their formal appraisals.
(iv) Finally, the human resources department is responsible for ensuring that
all learning activities in the organisation are identified, planned for,
implemented and evaluated in a cost effective way, with the organisation’s
needs in mind and in line with the organisation’s objectives and strategy.

The assumption that any training is relevant:

In some ways any training is good but it must be appropriate for the individual,
the organisation and for the strategic direction of the company. Companies who
feel that they must train staff but do so without any specific planning or focus
have wasted much money over the years. As such, training becomes just another
chore and line managers and employees do not take it seriously. It is, therefore,
vital that all training carried out is relevant and necessary and not merely
training for training’s sake! The changes in attitude towards learning have been
brought about by many factors:

Change - In a constantly changing environment it is impossible to function

without training and developing people, otherwise, how can they cope with new
circumstances, issues and problems?
People - As early as the 1930s, theorists such as Elton Mayo confirmed the
strong identification of workers with their employers’ businesses; people
generally want to be involved and want work to be a learning experience.
Government - Successive governments in the UK have focused on
development through a wide range of initiatives in both education and training,
within industry and commerce and in the general field of further and higher
education.
Compliance - Various Acts of Parliament have forced many businesses to
take training seriously, including:
(i) Health and safety and occupiers’ liability legislation
(ii) Minimum standards laid down for financial advisers.
Quality - The movement towards a total quality management approach by
many organisations has meant that properly structured training programmes
have to be in place so that quality cannot be compromised by poor output.

Problems With Management Development

Too often management development is informal and disjointed, rather than part
of a strategic training plan. Classes and training are offered or managers are
encouraged to take advantage of training opportunities, but the offerings are not
part of a formal program that is linked to organizational goals and long-range
objectives.
It is not uncommon to encounter resistance from managers when providing
management development opportunities. They may be hesitant to admit to areas
of weakness—or an implication that they need additional training—and may
raise many barriers to participation, most commonly "lack of time." Resistance
to change and fear of failure are
natural. By positioning management development as a prerequisite to growth
within the organization you can provide an incentive for participation while at
the same time developing somewhat of a self-selection process for identifying
employees interested in advancement within the organization.
Another problem, common to any training initiative, is the difficulty in
measuring the impact and effectiveness of your management development
activities. To be effective, clear and specific objectives should be identified and
tied to the selection and implementation of training and development activities.
Follow up measurement should be designed to directly evaluate the impact of
these activities on meeting the stated objectives. When establishing objectives
consider specifically how you will measure whether the objectives have been
met. Build evaluation into the training process.

What Should Management Development Encompass?

Managers need a broad variety of skills—leadership and supervisory,
communication, general business, organizational and technology. They need a
solid understanding of the industry in which they operate and the structure and
functions of the organization. They need to be familiar and comfortable with
finance, marketing and operations—regardless of their particular area of
expertise. And they need to clearly understand the organization's culture,
philosophies, policies and procedures.
Training and development should be both general and organization specific.
Understanding how to prepare a budget is a first step, but without knowledge of
how the budgeting process works within your organization that information is
not very useful. Clearly identifying the unique industry and organizational issues
that managers need to understand can help you tie practice to theory.
Training and development opportunities are available through a wide variety of
resources: university courses, seminars, professional associations, CD-ROM,
on-line courses, company provided training, informal training (mentoring/ job
shadowing), project assignments, involvement in committees and task forces,
case studies. Experience is often the best teacher. Provide managers with ample
opportunities to apply what they learn in training events or to learn through
involvement in projects and assignments.
Establishing a Management Development Training Program
There are a number of steps to take in the establishment of a management
development training program.
• Assess where you are currently. Do you have a formalized training program
for new managers? Do you have a program designed to develop your
existing managerial staff? Conduct an audit of managers to determine how
they are currently receiving information and training, how they would
evaluate their existing training options and what additional training needs
they have.
• Analyze your workforce and project your management needs into the
future. Succession planning is an important part of management
development and a key to ensuring strong leadership. What are the gaps
between current management skills and future needs? What are the areas
of potential weakness or vulnerability?
• Determine existing skill level through standardized testing instruments,
questionnaires (ask managers to identify their own information gaps and
needs), peer and supervisor evaluation, or even vendor and customer
evaluation. Compare the existing skills of your workforce to your future
managerial needs. Identify the gaps to pinpoint specific high priority
training needs.
• Align management development training with your organization's strategic
plan. The key is not to just do something—it's to match the needs of the
organization to the interests and skills of each manager and then to select
the appropriate training and development tools to meet those needs.
Develop categories of training needs, clearly identifying both general and
specific topics within each. For instance, you may determine that
providing effective feedback is a critical need. You may determine that
managers need general information on techniques for giving and receiving
feedback. In addition, you might include specific training on your
organization's performance evaluation process.
• Develop individual development plans for key employees and managers
based on their existing skill level and interests and your organizational
needs.
• Identify training opportunities based on the categories and topics you
developed. These may include university courses, public seminars,
conferences, mentoring programs, in-house training, customized training
 applications, computer-based training, etc. Review each opportunity to
ensure that it meets your organizational needs and objectives.
• Recognize that employees and managers also have some responsibility for
their own training and development. Involve them in the process. To the
extent you can tie objectives to employee interests as well as company
needs.
• Evaluate each activity. Establish quantifiable objectives whenever possible.
Use the annual appraisal process as one checkpoint—but remember it is
only one means of measuring effectiveness. Each training and
development opportunity should meet specific objectives that can be
measured and evaluated.
• Work with local universities, technical colleges and other sources of
training to familiarize yourself with their offerings and to work together to
help strengthen those offerings to meet your organization's needs.
• Be honest with employees about their future with the company and need for
development. Provide feedback for positive change to occur.
• Finally, recognize that management development is an ongoing process, not
a one-time or annual event. Your management development plan should
be reviewed regularly and changed as necessary to accommodate industry
and organizational changes.