Earlier training programmes in industrial organisations were mostly concentrated on improved performance in a particular job. They were intended to emphasise on learning whatever skill and knowledge necessary for the satisfactory performance of the job. Training were for the most part job holders in rank and file-positions. With the passage of time organisations are growing and the complexity in the work is also increasing. Now. the role of the mangers is not as easy as it was earlier. The term manager has been used to mean people at different levels of hierarchy. All those persons who have authority over the others and are responsible for their activities and for the operation of an enterprise are managers. They have not only to deal with the staff but also with other outsiders etc.. and have a decided influence on the organisation. Even the corporate chairman, departmental head, personnel administrator, planner or coordinator is. in fact a manager, although many of them do not supervise others but are on the board of management. So the title of manager cannot be standardized. It is their actions which are significant. Even a worker may be considered a manager, some times. So a manager is the dynamic life-giving element in any concern. His caliber and performance will largely determine the success of any enterprise. If any concern wants to expand, it must attempt to improve the quality of managers, it should introduce imaginative and systematic development schemes for them. So it can be said that due to the increasing role and its complexities and importance a new word like management development came into existence. Because the term training seemed inappropriate.
Management Development is a systematic process of training and growth by which managerial personnel gain and apply skill, knowledge, altitude and insights to manage the work in their organisation effectively and efficiently. In other words.
"Management Development is an educational process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and technical knowledge for general purpose."
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.
Some of the reasons behind the management development programs are:
- 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 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
The more future oriented method and more concerned with education of the employees. To become a better performer by education implies that management development activities attempt to instill sound reasoning processes.
Objectives of Management Development
The objective of management development is. in general, to improve the quality of managers/executives performance now and in future. Some main objectives of the management development ore as under:
- To develop managers/executives for better performance on their present job or assignment
- To provide a steady source of competent persons at different levels so as to meet the future requirements of the organisation.
- To enable the managers to understand the problems of the business organisation in so far as they arise out of its policies and system of control.
- To create conditions and a climate which contribute to the growth process.
- To replace elderly executives, who have risen from low ranks, by highly competent and academically qualified professionals.
- To increase morale of the managers.
- To acquire knowledge about the problems of human relations.
- To create the second line of defence in the organization so as to meet the emergencies.
- To broaden the outlook of the various levels of management especially top management regarding their role, position and responsibilities.
- To help the top management to understand the economic, technical and institutional forces in order to solve business problems.
- To increase the versatility of the managers
- To stimulate creativity in the thoughts of the managers.
- To create a sense of inter-departmental coordination among managers.
- To indicate how to apply to practical problems the knowledge of the physical and social aspects of business problems and management.
So we can say that management development is an educational process utilizing a systematic and organized procedure by which management personnel learn conceptual and theoretical knowledge for general purpose. These purpose are (i) Productivity (ii) Quality (iii) Human Resource Planning (iv) Morale (v) Obsolescence prevention, and (vi) Personnel growth.
Management development method is further divided into two parts:
Techniques for management development
- On the Job Methods of Management Development
- Off The job methods of Management Development