The importance of management

development in an organizational
system
Published on August 10, 2015

Abraham D.Follow
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Management development contributes to business success by requires to

meet it present and future needs.

FIVE AIMS OF MANAGEMENT DEVELOPMENT IN AN

ORGANIZATIONAL SYSTEM:

 Is to ensure that managers understand what is expected of them.

 Is to ensure that managers agreeing with the objectives against
which their performance will be measured and the level of
competence required in their roles.
 Is to encourage managers to carry out their personal development
plans and also to ensure that they receive the require training
development programmes.
 Is to identify managers with potential skills,experience e.t.c
 Is to provide for management succession,creating a system in place
to keep this under review.

TEN IMPORTANCE CHARACTERISTICS OF MANAGEMENT

DEVELOPMENT IN AN ORGANIZATIONAL SYSTEM

 It tries to bring to the surface human abilities which are untapped

and it is these which in the final analysis determine the success or
failure of any enterprise.
  It helps the organization to make the right choice at the appropriate
time in need.
 It helps the management of the organization to focus on the need
to any kind of change that might occur within an organization.
 It allows the organization to apply the useful methods or
techniques of selecting a rightful candidates for any post available
within an organization.
 It foster towards economic growth and development of an
organization.
 It set out a focus in which the objectives and goals of the firm are
realized or achieved.
 It try to see to the smooth working performance within an
organization
 It try to bridge the gap of cultural diversity within an
organization(i.e between employee to employee relationship or
between employee to employer relationship).
 It tends to forcast the future orientation of the firm and how it can
adjust quickly to any kind of shock that might likely arise.
 It tends to see that workers perform their work effectively and
efficiently according to the guidelines (blue prints) of the
organization.

According to Edwin Flippo, "No organisation has a choice of whether to

develop employees or not, the only choice is that of method." The need for
management development is well accepted in the present business, which
is fast changing due to technological and social developments.

1. Shortage of trained managers : Talented and matured managers are

not easily available. It is not possible to appoint managers from
outside for the key managerial posts. The better alternative is to
select talented persons as trainee managers and develop their
qualities through special training and wider exposures. In this way,
the organisation can create its own team of talented managers to lead
the whole Organisation.
 2. Complexity of management jobs : The jobs of managers are now
complicated and more challenging. They need varied skills for
dealing with the complex organizational problems. For this, talented
persons should be selected and proper training should be given to
them.
3. Technological and social changes : Rapid technological and social
changes are taking place in the business world. In India, such
developments are fast taking place along with the liberalization and
globalisation of business. Managers should be given proper training
and exposure in computer applications and information technology.
4. Management obsolescence : Executive obsolescence occurs due to
mental deterioration and aging process. This can be corrected by
offering self-development opportunities to managers. In fact, self-
development must continue throughout the career of an executive.
5. Complexity of business management : Business management is
becoming very complicated due to government legislations, market
competition, social pressures and consciousness among consumers.
Well-trained and matured managers are therefore required. Such
managers are not available easily. The best way is to train existing
managers through management development programmes.

Management Development:
Concept and Need in Present
Scenario
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Read this article to learn about the concept and need of

management development in present scenario.
Concept of Management Development:
Management development or executive development is a process of
developing the managing ability of managers and executives. One
should note that the managers and executives are made, not born. It
is, therefore, necessary to take up continuous management
development programmes to enhance the managerial abilities and
skills and insight of the managers and executives.

The global competition has increased the need for executive

development. Not only realization of its need but also to reengineer
the executive development process in order to be more effective to
have a competitive edge in respect of managerial ability over rivals.
This will increase productivity and improve quality.

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The managers and executives need to be developed to instill

proficiency and loyalty in them. Organisation’s responsibility is to
socialize its members, refine them to accomplish the objectives.
Management development has become a regular activity of many
organisations.

They are now implementing progressively the development

programmes and evaluating them consistently. The management
development programmes should be linked with the challenges and
imperatives of the business. Effective management development is
possible through the integration of knowledge from many sources
available recently.

The executive development is possible if the executive or manager

takes interest in it because it is self development. The organisation
must take initiative in management development and encourage the
managers to take part in development programmes. They should be
provided opportunities to do so by the organisations.

The executives cannot be created in the classrooms only; the

organisation must shape, restructure and refine them by designing
and implementing suitable management development programmes.
The areas which require to be developed among managers are
multiple skills, team spirit, leadership qualities, entrepreneurship,
customer orientation, technical knowledge and skill, strategic
decision-making, behavioural aspect etc.

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Overall he should possess generic competencies. The managers

must be capable of training their subordinates and juniors. The
management development provides scope for career development
which encourages them for training and instills confidence in them.

Employees in general and managers in particular are the backbone

of the organisation and they need to be trained and developed. If
their knowledge and skill is developed, they will be the biggest asset
to the organisation, else liabilities.

The management development is the responsibility of the

organisation but the managers cannot shirk their responsibility.
They should be committed to the management development. The
senior managers may come together and form a committee and be
assigned the job of management development.

The committee then should chalk out the management development

programmes for the executives at all levels separately and
implement them. All these activities should be initiated from the
human resource department, while human resource manager
playing a key role.

There are various techniques and methods developed for

management or executive development. The use of these methods
varies from company to company and organisation to organisation.
These techniques can be broadly classified as on the job and off the
job methods.
The Need for Management Development:
Managers are the valuable assets of any organisation. They must
therefore be retrained for survival and growth of organisation. The
increased productivity and total quality depends upon the drive and
initiative capacity, core competence, skill and technical knowledge
of managers.

The well developed managerial manpower can change the face of

the organisation and can take it to any height. The efficient
managers are always in short supply. They are to be conserved. To
conserve these rare species a rare substantial efforts for their
development are needed.

The managers at the lower and middle level need to be developed

through proper in-company and off-the-job training programmes.
There should not be any compromise on the quality of efficient
managerial manpower.

The expenditure on management development is a profitable

investment. The development of lower and middle level managers
shall build up second and third line of defense who remain ready to
take charge in the event of vacancy created by retirement, death,
transfer or resignation of senior executives.

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The aim of management- development programme is to increase

the managerial efficiency thereby contributing to the growth of
country’s economy. The cause of low rate of economic growth in the
undeveloped countries can be singled out as lack of efficient
management.

The presence or absence of this single factor can make the

difference. The management development enables in boosting up
the morale of the managers and increases their versatility. They
gain in analytical ability and creative thinking.

Management development is the essence of HRM. It is a continuous

activity which absolutely has no end. New ideas, new challenges
come in. Novel skills are required to meet them. New strategies are
required to overcome the storm created by the new trend. Managers
must be shrewd enough to prove their dominance over rivals. This
is an era of tough competition where weak can hardly survive.

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:

1. To develop managers/executives for better performance on their present job

or assignment
2. To provide a steady source of competent persons at different levels so as to
meet the future requirements of the organisation.
 3. 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.
4. To create conditions and a climate which contribute to the growth process.
5. To replace elderly executives, who have risen from low ranks, by highly
competent and academically qualified professionals.
6. To increase morale of the managers.
7. To acquire knowledge about the problems of human relations.
8. To create the second line of defence in the organization so as to meet the
emergencies.
9. To broaden the outlook of the various levels of management especially top
management regarding their role, position and responsibilities.
10. To help the top management to understand the economic, technical and
institutional forces in order to solve business problems.
11. To increase the versatility of the managers
12. To stimulate creativity in the thoughts of the managers.
13. To create a sense of inter-departmental coordination among managers.
14. To indicate how to apply to practical problems the knowledge of the physical
and social aspects of business problems and management

Objectives of Management Development in HRM:

Main objective of management development is to prepare managers for overall
responsibilities. More specially, management development has following objectives:
1. To increase managerial capabilities:
One of the primary objectives of management development is to increase managerial
capability. Managers require accomplishing varieties of activities. They need to supervise,
motivate, communicating, leading, planning, organizing, etc. Such functions demand
special skills, knowledge and capabilities. Management development programs aim to
increase capabilities essential to conduct such managerial functions.
2. To enhance managerial potential:
Management development also aims to increase the future potentiality of each managerial
employees. Each managerial employee may have specific skills and qualities. Such
qualities should be awarded with special responsibilities. Management development
prepares different plans and programs to prepare them.

Also read: Job Satisfaction in HRM: Factors Affecting, Dimensions, Techniques

3. To provide personal growth:

In order to increase the tenure of managerial employees at the organization, their personal
growth should be ensured. Future of each manager should be planned in the organization.
Through management development programs, the opportunity for personal growth is
secured.
4. To improve decision making:
Managerial decisions are vital for the success and failure of organization. The quality of
decisions of managers determines the milestone of the organization. Customer
satisfaction, relation with venders, relation with employees, productivity and profitability of
organization all are dependent on decision of managers. So, decision making quality of
employees should be improved. Management development aims to improve decision
making capability of employees.
5. To aim succession planning:
Managerial positions at the future can be generated by market expansion, resignation,
expiry, etc. For managerial job, it is risky to fulfill through external source. So, organization
prepare succession plans to prepare future managers. In this course of action,
management development plays vital role.

Also read: Performance Appraisal in HRM: Use or Importance, Methods

6. To cope with change:

Managing change is one of the most important objective of management development. To
analyze the changing environment, managers required special skills, knowledge and
capability. Management development prepares managerial employees for this purpose.
So, by preparing managers for analyzing the changing environment, it aims to adapt
change.
7. To bring change in behavior:
Behavior of managerial employees is the most important in motivating employees. Their
attitude and behavior towards employees, job and organization affects on behavior of
subordinates. Therefore, by implementing educational programs, management
development aims to change the behavior of employees.
8. To foster team work:
Managerial success depends upon the team work. Management development develops
mutual understanding, feelings of cooperation and mutual trust. This foster team work
which leads for the organizational success.
9. To increase job satisfaction:
Managerial employees get the opportunity of personal growth. They enhance their skills,
knowledge and capability by which their efficiency will be increased. Their effort will have
the constructive support for organizational success. All these facts help to increase
managerial job satisfaction.