DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 10 Executive Development
What is meant by executive or management development ? State the importance of executive development.
Executive Development – Meaning And Importance:
The rapid advancement in technology, social development, the effect of new political policies, the pressure of competition etc. demand a shift to new techniques which are the over riding elements in growth and survival. There is a strong need of those leader managers of the organisation who can demonstrate the necessary managerial skill and imagination in coping with the enormous changes around them. The development of managerial talent has become one of the most important and complex tasks.
Management development is a planned, systematic and continuous process of learning and growth designed to induce behavioural change in individuals by cultivating their mental abilities and inherent qualities for more effective performance of the work of managing.
A manager cannot be developed only by taking a course attending lectures and conferences. Management development implies development of people of different attitudes, talents, aspirations, needs and motivation. The management development is necessary to help managers to keep up with technological developments to build high morale at different levels and to help them to create all ideal inter personnel relations in the organisations.
According to Management Development Institute of India – “Management development is the development of management over and above its science and theory, of its practice and application in organisations, corporations and institutions, alike in relations to the organisation and manager, so as continuously to re-equip both to fulfil their purposes more effectively and in harmony with each other and both with the environment in which they function and have their being and hope to thrive upon arid grow…”
In the words of Michael J. Jucius, “Executive development is the programme by which executive capacities to achieve desired objectives are increased”. In explaining the terms used in the above definition. Mr. Jucius has written that ‘Programme’ must be related to development of various interrelated matters, factors and needs. Executive capacities involves different individuals abilities of present and prospective managers at different levels of management. The desired objectives include the objectives of the concern, its executives and the persons to be’managed.
Though it is believed that it is the responsibility of all the line managers to train their immediate subordinate in the organisation and guide them in their own self-development, yet, the ‘drive’ and ‘spark’ must come from within the individual because he and he alone knows where the shoe pinches. He should realise his weak points and try to remove his blind spots and to improve his performance in managing the people.
Nature of Executive Development. The specific features of economic development are as follows –
- Executive development is more a kin of education than specific training in skills. It is not lectures or specific courses to develop but it is a process of learning on an executives part to be accepted as a disciplined of self-education.
- Executive development is planned process of learning and growth designed to bring behavioural change among the executives. The executive should be able to perform his presents assignment better and will improve his potentials for future assignments.
- It is a self development programme where he learns new skills by participating in training programme. They make use of his actual job experience in learning new behaviours. The organisation merely provides facilities for development.
- It is a continuous and never ending process and not a one shot affair. It continues throughout the career of the executive.
Need Or Importance Of Management Development :
The success of an organisation depends to a great extend on the quality of leadership provided by the managers. The common belief that managers are born and not made, has been replaced by the view that managers can be made by giving them proper opportunities for development. An employee cannot be a good manager by his experience for a long time as a worker only. A manager’s job requires certain abilities to lead and motivate the people in the organisation. Therefore, it is necessary for the organisation to develop the talented employees by giving them the best training and education. The importance of management development may be gathered from the following quotations –
According to Michael Haider, “In the life of a corporation, today’s success is largely a production of three types of executive actions taken yesterday selecting the right people,, placing them, in the right job; and seeing to it that they are able to grow to meet both their own needs and those of the organisation”’. J.R.D. Tata observed, “Trained managers are vital to the economic development ofthe country. The business of executive management has been one of the most crucial, essential and at the same time one of the most difficult elements in providing continuity and efficient management.”
The importance of management development may be discussed in the following points :
1. Shortage of Trained Managers – There is a shortage of trained managers and it is very difficult to recruit and select the qualified managerial personnel to man the various managerial jobs from the labour market. Therefore, it becomes necessary for the organisation to develop the talented and able employees through a systematic development programme and maintain an inventory of executive skills to meet the future demands.
2. Competition. There is a tough competition in the market today and the consumers have become more conscious of their rights. It is, therefore, not easy to misguide the consumers. Executive development can be of great help in understanding the needs of the consumer.
3. Motivation of Workers. Today’s worker is educated ans socially aware. The workers ask for their rights such as workers participation in management, better wages and working conditions for the betterment of the organisation. In order to satisfy them or motivate them to contribute to the achievement of organisational objectives, development of executors.
4. To Resolve Peace. Frequent labour management conflicts need trained managers to handle the situation and resolve the matter amicably. Only a trained manager can bring peace by resolving the conflict amicably.
5. Complexity of Job. Managerial position is a complex one today which claimed separation of managerial skill from the ownership has widely recognised the peculiarity of managerial skill. It has contributed the belief that management is a complex job calling for certain skill, knowledge and aptitude which can be learned only by systematic development programmes.
6. Technological and Social Changes – Rapid growth of technological and social changes in the modem society has made it imperative to develop the executive talent to cope with these developments. These changes have been brought by various factors like automation, computers, intense market competition, Government controls, awakening of labour, change in the concept of labour etc.
7. Social Responsibility of Management – Social responsibility of management has widely recognised by the business leaders because of the changing social philosophy. The increased management task and leadership responsibilities arising out of social and technological changes has made the executive development absolute necessary.
8. Unending Process – Executive development is an unending process. It is not a ‘one-shot’ affair. It must continue throughout the management career, otherwise an acceptable management of yesterday will not be acceptable today and an executive of today will not be good enough for future. In order to be dynamic and to meet the future challenges, a manager should continually educate himself.
It may be concluded that management development programme is absolutely necessary for the success of any organisation. The better management, better are the results or the organisation. It is a continuous process to develop the skill of the person and maintain the desired managerial manpower to meet the new challanges.
What are the steps inolved in the process of executive development?
Process Of Executive Development:
The planning of an executive development programme should be conducted by the chief executive officer of the organisation. The essential components or steps of a comprehensive programme are discussed below:
- Looking at organisational objectives.
- Ascertaining development needs.
- Appraisal of present management talents
- Preparation of manpower inventory
- Planning of individual development programmes
- Establishment of training and development programmes
- Programme evaluation
1. Looking at Organisational Objectives – The first step in management development programme is to Identify the organisation’s objectives. The objectives tell “Where we are going” and will develop a framework from which the executive needs can be determined.
2. Ascertaining Development Needs – Next step is ascertaining development needs which requires forecast of its needs for present and future growth. This is based upon a comprehensive job analysis with particular reference to the kind of management work performed. The kind of executive needed and the kind of education, experience, training, special knowledge, skills, personal traits etc., required for such work.
3. Appraisal of Present Management Talents – Appraisal of present management talent is made with a view to determining qualitatively the type of personnel available within an organisation itself. The performance of a management individual is compared with the standard expected of him”. His personal traits are also analysed so that a value judgement may be made of his potential for advancement.
4. Management Manpower Inventory – Now, a management manpower inventory is prepared for the purpose of getting complete information about each management individual’s bio-data and educational qualifications, the results of tests and performance appraisal. From these it can be known that several capable executives are available for training for higher positions. An analysis of the information will bring to the attention of the management the potential obsolescence of some of the present executives, the inexperience or shortage of managers in certain functions and skill deficiencies relative to the future needs of the organisation.
5. Individual Development Programme – The planning of individual development programme is undertaken to meet the needs of different individuals, keeping in view the differences in the attitudes and behaviour, and in their physical intellectual and emotional qualities. The weak and strong points of an individual are known from his peformance appraisal reports and on this basis, training programmes are framed and launched.
6. Establishment of Training and Development Programmes – This job is done by the personnel department. A comprehensive and well conceived programme is prepared, containing concentrated brief courses in different fields viz. human relations, decision making, leadership time and motion study, creative thinking etc. depending on organisational needs and the time and cost involved.
7. Evaluating Development Programmes – Evaluation of training is any attempt to obtain information (feed back) on the effects of a training programme and assess the value of training. The most important means of evaluating development programmes are observation, ratings, trainee surveys, trainee interview etc.
Discuss the objectives of Executive development. Describe the effective methods of developing managers.
Objectives Of Executive Development:
The primary’ and continuing objectives of executive development, programme are are :
- To impart basic knowledge and decision making skills to the new entrants
- To assist the employees to function more effectively in their present positions by exposing these to the latest concepts, information and techniques and developing the skills required in their respective fields ;
- To build up a second line of competent officers and prepare them as a part of their carrier progression to occupy more responsible positions as and when required.
- To broaden the minds of the senior managers by providing them opportunities for interchange of experiences within and outside with a view to correcting the narrowness of outlook that may arise from overspecialisation;
- To impart customer education for effective dealing with the customer
- To assign competent men in all management positions to achieve the common objectives of the organisation ; and
- To develop and implement the latest management systems in place of traditional systems in order to increase productivity.
- To indianise the management of units managed by foreign executives.
What are various methods of executive developments?
Various Methods Of Executive Development:
A great variety of management development techniques are used by different organisations to develop their executive manpower. The selection of technique rests on one philosophy of development. There are two principal methods of executive development which are generally used by the firms. One is on the job development and the other is off the job development. We shall discuss hereunder the various on the job and off-the job executive development techniques –
1. On-the-job Methods. These may include the following techniques:
(c) Job rotations
(d) Committee assignments
(e) Multiple Management
2. Off-the-job Methods :
(a) Special curses
(b) Role playing
(e) Special projects
(f) Management games
(g) Syndicate method
(h) Sensitivity training
(i) Programmed instructions
(j) In-basket Training
The different methods outlined above are not mutually exclusive in nature. An executive development programme may include a number of methods in both categories because no single method suits all the organisations at all places.
(a) On-the-Job Methods. It is most popular method of developing the executive talent. The main techniques are :
(a) Coaching. Under this technique, the superior coaches the job knowledge and skill to his subordinates. He briefs the trainees what is expected of them and guides them how to get it. He also watches their
performance and directs them to correct the mistakes. The main objectives of this training is to provide them diversified knowledge. Coaching is recognised as one of the managerial responsibilities and the manager has an obligation to train and develop the subordinates working under him. He delegates his authority to the subordinates to prepare them to handle the non- c routine complex situations.
(b) Understudy. Under this system, a person is specially designated as the heir-apparent who is called the understudy. The understudy’s future depends on what happens to his superior. Such understudy is likely to assume the full duties and responsiblities, currently held by his superior when he leaves his post due to promotion, retirement or transfer.
The department manager picks up one individual from the department to become his understudy. He guides him to learn his job and tackle the problems that confront the manager. The problem may be discussed with the understudy to get his views on the problem and to give him an experience of decision making. The understudy may be asked to supervise and guide a number of people at work in order to develop the leadership skill in him.
(c) Job Rotation. Under this system, an individual is transferred from one job to another or from one department to another in the coordinated and planned manner with a view to broaden the general background of the trainee in the business. The trainee is rotated from one job to another and thus he acquires a general background of all jobs in the business. A new entrant at junior executive level requires a considerable degree of specialised knowledge and skill but a man can never acquire the diversified skill needed for promotion unless he is deliberately put in different types of situations.
(d) Committee Assignments. Under this system an ad-hoc committee is constituted and is assigned a subject related to the business to discuss and make recommendations. The committee studies and discusses the problem assigned to it and submits the report containing various suggestions and recommendations. With a view to avoid the unnecessary hardship in studying the problems, the number of persons should be selected from different departments having specialised knowledge in different fields but connecting to the problem. The committee submits its report to the departmental head.
Committee assignment provides a trainee the necessary general background and the trainee becomes acquainted with the different view points and acquires a wider perspective.
(e) Multiple Management. Under this system, a permanent advisory Board or committee of executives is constituted by the shareholders to study problems of the organisation and make recommendation to top management and’ top management takes the final decisions. The another device is the establishment of a junior Board of Directors for the training of the executives.. The Junior Board is empowered to discuss any problem with the senior Board. The utility of Junior Boardisto train the juniors executive. Membership of the Junior Board is a prerequisites to the membership of the senior Board. The Junior Board may discuss a variety of subjects which a senior board can discuss. All recommendations forwarded to the senior Board must be unanimous. The recommendations of the junior Board are of advisory nature.
The method has the following advantages –
- It is inexpensive.
- It gives Boards members an opportunity to gain knowledge and experience in various aspects of business.
- It identifies those who have good executive talents.
2. Off-the-job Methods. The main techniques under this method are: –
(a) Special courses. The method of special courses requires the trainee to leave the work place and to devote his entire time to developmental objectives. The prime object of such special courses is to provide an opportunity to the trainee to acquire knowledge with devotion. Development is primary and work is secondary. These courses may be conducted in a number of ways – First, the organisation establishes such courses to be taught to the trainees by the numbers of the firm or by the regular instructor appointed by the firm or by the specialists (Professors and lecturers) from other outside institutions. The second approach to this technique is to send the personnel to programmes established by the colleges or universities.
The organisation sponsors some of its members to the courses and bears the expenses. The third approach to the technique is to work with a college or other institutions in establishing a course or a series of courses to be taught by faculty members. A big organisation may start its own training school. In India, almost all the leading banks .have their own training colleges and the college experts devise the courses in consultation with the top executives.
The lecture method is generally employed in such cases for all courses which may be supplemented by other techniques as group discussion, film, case study etc.
(b) Role-playing. Under this method, two or more trainees are assigned different roles to play creating an artificial conflict situation. No dialogue is given before hand. The role-players are provided with the written or oral description of the situtation and the role to play. Sufficient time is given to the role players to plan their actions and they must have acted on their parts before the class.
For instance, role-playing situation may be a supervisor discussing grievances with his subordinate. This technique is generally used for human relations and leadership training so as the trainee may, learn the human relation skills through practice. The dialogues between role players may be recorded so that the role-players may listen performance and know their strengths and weakness. Role-playing is a laboratory method which can he used rather easily as a supplement to other conventional training methods.
(c) Case study. Case study technique is extensively used in teaching law, business management, human relations etc. to let the trainee understand that there may be different solutions to a particular problem. Under this method, the trainees are given a realistic prohlem to discuss, which is more or less related to the principles already taught. This method provides an opportunity to the trainee to apply his skill to the solution of realistic problems. Cases may be used in either of the two ways – (i) They can be used after exposing the formal theory under which the trainee applies their skill to specific situation, or (ii) They may be assigned to the trainees for written analysis or oral discussion without any prior discussion of the theory.
(d) Conference. A conference is a group meeting conducted according to an organised plan in which members participate in oral discussion of a particular problem and thus develop their knowledge and understanding. It is an effective training device for conference members and conference leaders. Both learn a lot from others viewpoint, and compare their opinions with others. The conference leaders may also learn how to develop their skill to motivate people through direction of discussion. Conferences may be of three types – (i) The directed or guided conference, (ii) Consultative conference, and (iii) Problem-solving conference. However, guided conference is generally used for training purposes.
(e) Special Projects. Under this device, a trainee is assigned a project that is closely related to his job. He studies the problem in depth collect and analyse the data and make recommendations upon it. The project will help in educating the trainee the various aspects of the problem and to understand the organisational relationship of the problem with different angles. Sometimes a task force is made consisting of a number of trainees representing different functions in the organisation. Each individual works as a member of the group. It is a temporary nature of assignment.
(f) Management games. It is classroom exercise, in which teams of students compete against each other to achieve common objecfive. The game is designed to be a close representations of real life conditions. The trainees are asked to make decisions about production. Cost, research and development etc. for a stimulated organisation. Since they are often divided into teams as competing companies, experience is obtained in team work. Under this method, the trainees learn by analysing problems by using some intention and by making trial and error type of decisions. Any wrong is corrected by the trainer or sometimes a second chance is given to do something all over again.
(g) Syndicate Method. Under this method, 5 or 6 groups consisting of about 10 members are formed. Each group (Syndicate) is composed of carefully selected men who, on the one hand, represents fair cross-section of the executive life of the country, i.e., men from public sector and private sector undertakings, civil and defence services, banking, insurance etc, and, on the other hand, a good well balanced team of management from different fields, i.e., production, marketing, personnel, finance etc.
The groups are given assignments made up before hand to be submit within a specified date and time. Each man in the group is appointed leader of the group for the performance of the given task by rotation and so for the secretary for the subdivision of the course. Each task is assigned in the form of a ‘Brief, a document prepared by the experts on the faculty with meticulous care. It indicates the nature and scope of the subject matter, a list of selected readings and background materials in the form of papers, exefcises and cases.
It also fixes the time by which the study is to be completed. Lectures by experts are also arranged to supplement the study. The report, prepared and submitted by a group, is .circulated among the members of the other groups for comparative study and critical evaluation. The leader or chairman of the group is required to present the views of his group in the joint session and justify his group’s view in case of criticism or questions.
This technique is particularly suitable for the development of executive who are already in positions of responsibility and marked out for assuming the top position or near the top position in business or public services.
(h) Sensitivity training or T-group. In sensitivity training, the executive spends about two work-hours attending’the lectures on the subject such as leadership and communication. The members, under this method, sit around a table and discuss. The trainer, usually a psychologist, neither leads the discussion nor suggests what should be discussed but only guides the discussion. The members freely discuss and criticise the behaviour of each other thereby giving a feedback positive or negative.
The technique of T-group is an important tool in the hands of management to view the cooperation of his fellow members. The aim of sensitivity training. – is to improve the trainees skills in dealing with the people.
(i) Programmed instruction. Programmed instruction has gained a lot of importance but in training and in industry in modern times. It includes teaching-machines, auto-instruction, automatic instructions and prbgrammed learning. It is an application of learning to the task of training and education. The core feature of programmed instructions is participation by the trainee and immediate feedback by him. Programmed instructions include films, tapes, programmed books, illustrations, printed materials, diagrams etc. It performs two functions – (i) provides information to the learner, and (ii) provides feedback whether the response is correct or wrong.
We have discussed here various methods of executive development but there is no ideal method or a combination of the methods of executive development which may suit the needs of the organisation. Each organisation must design its own particular programme taking the climate of the firm, the organisation level for which training is required, the particular characteristics of the personnel, to be developed, the recognised specific development needs and the availability of economic resources into consideration. The above methods may be studied as a guide to a specific training programme.