What is Management Development?
Today’s business is characterised by constant change and dynamism in every sphere. Organisations have become more human resource oriented and it is the human resource capital that plays a dominant role in helping the organization to stand apart in the crowd. The success and growth of an organisation depend largely upon the calibre and performance of its executives/managers. Hence, it becomes imperative for managers to continuously educate themselves and stay updated on the ever-changing management practices.
Management development is a long-term educational process utilising a systematic and organised procedure by which managerial personnel get conceptual and theoretical knowledge. It refers not to technical knowledge and educational concepts, but rather to technical knowledge and operational skills. It involves a broader education approach aimed at fostering long-term development. Thus, management development is a systematic process of growth and development by which the managers develop their abilities to manage.
According to Koontz and Donnell, “Manager development concerns how a person cultivates those skills which application will improve the efficiency and effectiveness with which the anticipated results of a particular organisational segment are achieved”.
According to Dale S. Beach, “Management development is a systematic process of training and growth by which individuals gain and apply knowledge, skills, insights and attitudes to manage orientation effectively”.
According to Flippo, “Management development includes the processes by which managers and executives acquire not only skills and competency in their present jobs but also capacities for future managerial tasks”.
Objectives of Management Development
Objectives for the development of managerial personnel for various levels of management are given below:
1) Top Management
i) To broaden the outlook of the executive regarding their role, position and responsibilities in the organisation and outside.
ii) To think about various problems that may confront the organisation now or in the future.
iii) To gain a comprehensive understanding of the problems of human relations.
iv) To improve thought process and analytical ability to uncover and examine problems and make decisions in the best interests of the country and organization,
v) To understand economic, technical and institutional forces to solve business problems.
2) Middle Line Management
i) To raise awareness of the wider management issues and foster understanding and appreciation for inter-departmental relationships,
ii) To establish a clear picture of executive functions and their associated responsibilities.
iii) To develop familiarity with the managerial uses of psychology, financial accounting, business law and business statistics.
iv) To inculcate a deep understanding of human motivation and relationships.
v) To develop the ability to analyse problems and to take appropriate action.
vi) To develop responsible leadership.
3) Middle Functional Executive and Specialists
i) To increase proficiency in management techniques such as work-study, inventory control, operations research, quality control, etc.
ii) To stimulate creative thinking to improve methods and procedures.
iv) To develop the ability to analyse problems in one’s area or functions.
v) To understand the functions carried out within a company.
vi) To understand human relations problems.
Importance of Management Development
The importance of management development is explained as follows:
1) It helps to develop effective managers who understand the basic principles of supervision, planning and organising their work effectively, directing and coordinating the activities of workers with materials, machines, and time, and acquiring know-how about when to delegate responsibility and authority.
2) It helps in spreading a greater understanding of company policies and rules, including the proper interpretation and application of collective bargaining agreements.
3) It helps in providing more effective training to workers, both new and old, to make them efficient in their present jobs and to enable them to perform new operations demanded by changing conditions.
4) It helps to promote and maintain good employee relations through knowledge of how to get along with people and inspire them to greater achievement, understanding their capacities and personal characteristics, and enhancing their proper attitude towards their work and their company.
5) It improves the quality of managers and the ability to meet problems involved in managing human resources.