MBA PROJECT - MANAGEMENT DEVELOPMENT STRATEGIES USED BY INSURANCE COMPANIES IN KENYA - CAROLYN A. JUMBA.pdf

7/30/2019 MBA PROJECT - MANAGEMENT DEVELOPMENT STRATEGIES USED BY INSURANCE COMPANIES IN KENYA - CAROLYN

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MANAGEMENT DEVELOPMENT STRATEGIES USED BY

INSURANCE COMPANIES IN KENYA

By

JUMBA, CAROLYN ASIGO

Research Project submitted in Partial Fulfillment of the Requirements of Master of

Business Administration (MBA) Degree, School of Business,University of Nairobi


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DECLARATIONThis research project is my original work and has never been presented in any other university or

college for the award of degree or diploma or certificate.

Signature: ------------------------------------------------------Carolyn Asigo Jumba

Registration No. D61/P/8030/00

Date: 15 / 11 / 2008

This research project has been submitted for examination with my approval as the UniversitySupervisor.

Signature: ----------------------------------------------------Mr. Duncan Ochoro

Lecturer, Department of Business Administration

School of Business, University of Nairobi


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ACKNOWLEDGEMENTMy appreciation goes to all who made it possible for me to accomplish the task of completing

this project.

To the almighty God for his strength and wisdom. To my supervisor, Mr. Duncan Ochoro for his patience and brilliant guidance. To my husband Patrick for his love, patience and inspiration. To my children, Jade and Nigel for their understanding and support as I prepared for this

work.


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DEDICATIONThis research project is dedicated to my husband Patrick, and children Jade and Nigel who

offered support and encouragement throughout the period.


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TABLE OF CONTENTS

TABLE OF CONTENTS ................................................................................................................ vLIST OF TABLES ........................................................................................................................ viiABSTRACT ................................................................................................................................... ixINTRODUCTION .......................................................................................................................... 1

1.1 Background ........................................................................................................................... 11.1.1 Management Development ................................................................................................ 21.1.2 Factors Influencing Strategies for Management Development in organizations ............... 41.2 Insurance Companies In Kenya ............................................................................................ 51.3 Statement of the Problem ...................................................................................................... 61.4 Objectives of the Study ......................................................................................................... 71.5 Importance of the Study ........................................................................................................ 7

CHAPTER TWO ............................................................................................................................ 9LITERATURE REVIEW ............................................................................................................... 9

2.0 Introduction ........................................................................................................................... 92.1 Management Development ................................................................................................... 92.2 The Managers job: Roles and Competencies..................................................................... 102.3 Planning Management Development .................................................................................. 122.3.1 Management Development Activities .............................................................................. 132.3.2 Managing the Development Process ................................................................................ 152.4 Approaches to Management Development ......................................................................... 162.4.1. Learning through Work (Informal Management Development) ..................................... 162.4.2 Formal Approaches to Management Development ......................................................... 182.4.2 (i) Promotion (Moving to a new Job)............................................................................... 182.4.2 (ii) Fertilization within the Job (Opportunities for Learning) .......................................... 182.4.2 (iii) Learning Within The Job ( Feedback, Facilitation And Support)............................. 202.4.3 Planned Development off the Job .................................................................................... 212.5 Measuring the Effectiveness of Management Development .............................................. 242.6 Challenges / Issues in Management Development ............................................................. 252.7 Management Development: Summary and Conclusion...................................................... 28


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RESEARCH METHODOLOGY .................................................................................................. 29CHAPTER THREE....................................................................................................................... 29

3.1. Research Design ................................................................................................................. 293.2 Population ........................................................................................................................... 293.3 Data Collection ................................................................................................................... 293.4 Data Analysis ...................................................................................................................... 29

CHAPTER FOUR ......................................................................................................................... 31DATA ANALYSIS AND FINDINGS ......................................................................................... 31

4.1 Introduction ......................................................................................................................... 314.2 General Information ............................................................................................................ 314.3 Strategies Used For Management Development ................................................................. 33

CHAPTER FIVE........................................................................................................................... 52DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS ........................................... 52

5.1 Discussions.......................................................................................................................... 525.2 Conclusions ......................................................................................................................... 565.3 Recommendations ............................................................................................................... 57

REFERENCES.............................................................................................................................. 58APPENDICES .............................................................................................................................. 61

Appendix 1: Insurance Companies in Kenya ............................................................................ 61Appendix II: Mumfords approaches to development .............................................................. 63Appendix III: Burgoynes Model.............................................................................................. 64Appendix IV: Letter of Introduction ......................................................................................... 65Appendix V: Study Questionnaire ............................................................................................ 66


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LIST OF TABLES

Table 1: Development Needs of Different Levels of Management .............................................. 14

Table 2: Informal Learning Opportunities .................................................................................... 17

Table 3: Duration the Organization Has Been In Operation ......................................................... 31

Table 4: Ownership of the Organization ....................................................................................... 31

Table 5: Duration of Working in the Organization ....................................................................... 32

Table 6: Number of Managers in the Organization ...................................................................... 32

Table 7: Expatriates in the Firm .................................................................................................... 33

Table 8: Strategic Plan, Vision, Objectives, Formal Statement and Business Plans .................... 33

Table 9: Role of Management Development in the Organization ................................................ 33

Table 10: Internal Factors Influencing Management Development in the Organizations ............ 34

Table 11: Impact of External Factors on Management Development in the Organization .......... 35

Table 12: Level of General Management Skills in the Company ................................................. 36

Table 13: Functional Management Skills within the Company .................................................... 36

Table 14: Identifying Needs for Improved Skills or Knowledge .................................................. 37

Table 15: Existing potential skills and competence ...................................................................... 38

Table 16: Processes Helpful In Defining the Effectiveness of Individual Manager and Their

Development Needs ...................................................................................................................... 39

Table 17: Informal Learning Opportunities Worked For the Organizations ................................ 40

Table 18: Level of Contribution Made By the Processes in the Development of Managers ........ 41

Table 19: Factors That Have Attributed To the Success of Formal Management Development

Processes ....................................................................................................................................... 42

Table 20: Ownership of the management development scheme ................................................... 43

Table 21: Major Change in the Appraisal Processes over the Last 5 Years ................................. 44

Table 22: Bases of the Appraisal Process ..................................................................................... 45

Table 23: Potential Objectives Focused When Setting Up an Appraisal Scheme ........................ 45

Table 24: Development Processes/Activities Used By the Organizations ................................... 47

Table 25: Whether Sufficient Management Training Is Being Undertaken By the Managers at

Present ........................................................................................................................................... 48


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Table 26: Overall Level of Change in Provision of Management Development Services and

Supports Required For the Managers............................................................................................ 48

Table 27: Current Contribution of a Range Of Education and Training Providers of Management

Development within the Company ............................................................................................... 49

Table 28: Barriers to Management Training and Development ................................................... 50

Table 29: Budget Allocated To the Training and Development of Managers .............................. 51


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ABSTRACT

Management development has been described as having three main components: Management

education, Management Training and on- the- job experiences (Keys & Wolfe, 1988).

Management Education can be defined as the acquisition of conceptual knowledge and skills

in formal classroom situations in degree granting institutions (Keys & Wolfe, 1988).

Management Training focuses more on providing specific skills or knowledge that could

immediately be applied within an organization and/or a specific position or set of positions

within an organization (Keys & Wolfe, 1988). On the Job experiences are planned or

unplanned opportunities for a manager to gain self knowledge, enhance existing skills and

abilities, or obtain new skills or information within the context of day to day activities e. g.

mentorship, coaching, assignment to a task force.

The objectives of the study were to establish the strategies used for management development

among insurance companies in Kenya and also to determine the factors that influence strategies

for management development among insurance companies in Kenya.

The study used a descriptive census survey design. The target population was human resource

managers of various insurance companies. The researcher sampled 41 human resource managers

although the insurance companies that responded and returned the questionnaire were 30.

Once the questionnaires were received, they were edited to ensure that they were well completedand the responses consistent. The data collected was analyzed using the content analysis

technique. Descriptive statistics were used to compare the approaches used by the insurance

companies on the basis of size and other demographic variables.

From the findings most companies developed their managers in order to develop their potential

and also to remedy their weaknesses. These organizations used strategies such as appraisal and

performance reviews and also informal identification for management development. The factors

that influenced management development in the organizations were commitment to professional,

top management support and interest in the profession, initiative and group factors,

communication, negotiation skills, feedback, culture, involvement of consultants, organization

re-structure, board of directors, history, lack of motivation, increased responsibility, job redesign,

time factors, insufficient learning culture and unclear roles and follower factors developments in


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technology and demands by clients of the organization, and availability of development

interventions and Macro Economic conditions.


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CHAPTER ONE

INTRODUCTION

1.1 Background

The history of business in the region shows that in the early years, trading patterns and markets

were stable, technology was static, customers were passive, speed in getting to the market was

secondary, competition was limited to sectors and regions, and hierarchies were generally

accepted in all walks of life. (The East African, March 15 21, 2004, Pg 16).

This is no more. Customers demand that businesses do it better, faster, cheaper. The new rules of

the game require speed, flexibility and innovation. The second half of the 20th

century saw

nations around the world become part of the global village, with trade barriers between them

reduced or removed completely. The paradigm - shift to a single global company has opened up

new economic opportunities. Events of the last five years of the previous century focused our

attention on knowledge industries. Developing quality human resources has therefore become an

important tool with which to respond to the emerging environment. (The East African, March 15

21, 2004, Pg 16).

Within organizations there is now a growing awareness that the managerial role has become a

critical component in business strategies designed to deliver competitiveness, change and

renewal. This has led many organizations to review the nature of their managerial assumptions,

attitudes and behaviors to determine the degree of fit with strategic goals and desired levels of

business performance. As a consequence, we are witnessing the emergence of a new agenda of

organizational demands and expectations in respect of the managers role. Managers are now

being told they must manage differently in some cases, management itself has to be reinvented(Mullins, 1999).

Adaptation to change includes the training and development interfaces in organizations.

Everyone must learn how to change and learn ways to prepare for it.


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For the last 40 years, managers have been viewed as a dynamic and important element of

business organizations. Given the turbulence in todays environment (e. g. a global economy, the

emergence of trading blocs, increased competition, and technological change), organizations

need a high quality, high-performance management team that can help them meet these

challenges. This is true even for organizations that are using downsizing and employee

empowerment techniques. While it may have been believed that the ability to manage (like the

ability to lead) was primarily an inborn capability, the current view holds that the KSAs

required to perform effectively as a manager can be learned and / or enhanced (Campbell,

Dunnette, Lawler & Weick, 1970).

Organizations must now prepare its managers to guide the organization in the future. This is at

the heart of management development activities (Mathis & Jackson, 1979).

1.1.1 Management Development

Despite the varied origins of management development, (G. A. Cole, 2002) has identified three

underlying trends in the variety of possible approaches to management development. These are;

the improvement of individual manager effectiveness (i. e. The extent to which a manager

achieves the output requirements of his position.[Reddin, 1970]), the improvement of

management performance as a whole and the improvement of organizational effectiveness (i.e.

the achievement of corporate objectives by means of collaborative efforts throughout the

enterprise).

Management development has been described as having three main components: Management

education, Management Training and on- the- job experiences (Keys & Wolfe, 1988).

Management Education can be defined as the acquisition of conceptual knowledge and skills

in formal classroom situations in degree granting institutions (Keys & Wolfe, 1988).

Management Training focuses more on providing specific skills or knowledge that could

immediately be applied within an organization and/or a specific position or set of positions

within an organization (Keys & Wolfe, 1988). On the Job experiences are planned or

unplanned opportunities for a manager to gain self knowledge, enhance existing skills and


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abilities, or obtain new skills or information within the context of day to day activities e. g.

mentorship, coaching, assignment to a task force.

According to Armstrong (2006), Management Development contributes to business success by

helping the organization to grow the managers it requires to meet its present and future needs. It

ensures that managers understand what is required of them; agreeing with them objectives

against which their performance will be measured and the level of competence required in their

roles. It improves managers performance, gives them development opportunities, and provides

for management succession. Development processes may be anticipatory (so that managers can

contribute to long term objectives), reactive (intended to resolve or preempt performance

difficulties) or motivational (geared to individual career aspirations).

Cole (2002), he lists some of the important outcomes from successful management

development as: Individual managers performing at a fully satisfactory level, Improved

performance from work-teams as a result of better leadership, having a pool of managers ready

and able to take up promotion or stand in for absentees, managers working collaboratively

together, improved communication between managers and their staff, and between managers

and colleagues and the improved problem solving capacity throughout the organization.

In Mullins (1999), he talks of the importance of management education, training and

development as highlighted by two major reports, sponsored by the British Institute of

Management, published in 1987. The Constable & McCormick report and the Handy report both

drew attention to the low level of management and development of British managers. In the

Constable & McCommick report The Making of British Managers, the authors warn that many

managers need professional training and education if they are to compete successfully. The

Handy report warns that in future, technical and functional skills alone will not be enough.

Managers will require business knowledge, human and conceptual skills.


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1.1.2 Factors Influencing Strategies for Management Development in organizations

Management Development in organizations is influenced diverse factors. According to various

writers in http://wikibooks.org/wiki/Learning, a number of influencing factors have been

discussed, as below.

Typical general influencing factors in management development include are context (culture),

history, and survival. The idea of context is intrinsically tied to socially constructed elements.

Lane (2001) discusses this factor saying, assumption of most management development theory

is that learning is socially constructed, that is, what is learned and how learning occurs are

fundamentally connected to the context in which that learning occurs (p. 704). Second is the

issue or factor of history. The implications of past endeavors and attempts at growth or learningwill affect the long-term view of the development of managers within that organization. Lastly,

is the issue of survival. In order for an organization to exist long term, it must learn more than

just new fads or moments of knowledge, it must learn consistently over time for this is a learning

organization.

Lohman (2005) found the human resource factors influencing the development of managers to

include initiative, positive personality traits, commitment to professional development, interest in

the profession, self-efficacy and love of learning enhanced the motivation for informal

management development. Albert (2005) found that top management support and involvement

of consultants also facilitated management development. A European study showed that lack of

motivation, extra work, unclear roles, lack of confidence, perception of role, insufficient learning

culture, lack of innovation, lack of time, and lack of resources negatively impacted

organizational learning (Sambrook & Stewart, 2000). From the positive perspective, motivation,

enthusiasm, involvement, clarity and understanding of role, increased responsibility, perception

as a strategic partner, a developed learning culture, senior management support, organization re-

structure, job redesign, and investment in human resources, and the learning environment made a

significant difference in organizational culture.
http://wikibooks.org/wiki/Learninghttp://wikibooks.org/wiki/Learninghttp://wikibooks.org/wiki/Learning


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Time factors have a role in influencing management development. Weber and Berthoin Antal

(2003) describe six key dimensions of time: the organizations time perspective and orientation

to time, time pressure, simultaneity, synchronization and windows of opportunity, learning

cycles and life cycles, and history (p. 354).

Management Development in organizations is also influenced by group factors. According to

McConnell and Zhao (2004), the factors that must be considered include "interaction,

communication, negotiation, skills, strategies, feedback, leader, role play, brainstorming, and

motivation" (p.7).Lastly in evaluation, the following factors must be considered, performance,

effectiveness, outcomes, contributions, history, experiences, and productivity".

Follower factors too have an influence on the development of managers. Goldsmith, Morgan,

and Ogg (2004), state, "Organizations in all fields suffer when key employees cannot effectively

influence upper management" (p. 20).The board of directors do have an influence on

development. Tainio, Lilja, and Santalainen (2003) suggest, "Boards represent the interests of

the firm's shareholders...they have the power to hire, fire, and compensate senior executives and

to provide high level counsel.; By performing these tasks, boards can facilitate or limit

management development" (p. 428).

The external factors include availability of development interventions, macro economic

conditions, developments in technology and work processes and demands by clients of the

organization.

1.2 Insurance Companies In Kenya

Insurance as it is known today was introduced to most developing countries during the colonial

rule. Before this, subsistence economies prevailed and here was hardly any need for insurance in

the modern sense. They placed their risks with insurance companies in their countries of origin.

As the need for local insurance became more apparent, they themselves became agents for these

foreign companies. Given the highly technical nature of this industry, expatriates were engaged

to assume the main responsibility in the insurance field, leaving the local staff, if any, to carry

out simple tasks that required no skills.


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Insurance business remained a foreign domain until the government became indigenous through

the attainment of independence (The Kenya Underwriter, Vol 9, Aug 1985). After independence,

the government sought more effective control of the industry by localizing its activities at

appropriate intervals (Weekly Review, June 22, 1979). This saw the emergence of a number of

purely local firms. The Insurance Industry Report for the year 2006 lists insurance companies in

Kenya currently as 41 insurance. (See Appendix 1).

According to a publication of the Insurance Institute of Kenya (2000), the roles of insurance

have been described the main role of insurance as relieving of catastrophes or smoothening of

losesindemnity. Others include reduction of uncertainty, infrastructure development, provision

of old age social security, contributor to the development of money and capital markets, creator

and protector of jobs.

1.3 Statement of the Problem

Kenya, like other countries in Africa is still developing. Insurance as a business has made

tremendous progress. The 1990s have seen growth of the insurance industry especially with the

emergency of many purely Kenyan owned firms. Liberalization has increased competition and

meant better services. The growth of the insurance industry has made it a significant player in the

financial services market with very heavy investments in the country.

Conversely, the increase in the volume of business has not seen an equal rise in Management

Development. Many approaches to development being adopted have characteristics similar to

Mumfords Type 1 development and Burgoynes Level 1 and 2. (See Appendix 2) They may be

labeled as piecemeal approaches, which have led to inefficient and ineffective development

characterized by a lack of managerial development infrastructure; Development is not linked to

business strategy. Activities are unrelated, and lack overall direction or philosophy. They fail to

reinforce each other, and reduce the potential for organizational effectiveness. Others include:

Development often focuses on the needs of the organization, and fails to meet the learning needs

and aspirations of individuals and groups. Development has largely defined in terms of a range


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of universal, off- the shelf internal or external courses. There is tacit support for managerial

education and training because it is seen as a good thing to be doing irrespective of

organizational needs.

There is lack of common vision among those responsible for management development. Some

see development as a central part of their jobs, other see it as peripheral and a nuisance.

Management development efforts are therefore be wasted because it is used as a solution to the

wrong problem. Rather than developing managers, the correct solution may be to change aspects

of organizational structure or systems.

Given the above realities, it becomes difficult to evaluate the effectiveness of a piecemeal

approach that lacks clear direction and established objectives. Management Development

therefore is failing managers in the sense that it is unable to deliver the skills and knowledge they

require to meet the requirements of the new agenda. That the wrong people are being trained in

the wrong way and with the wrong consequences has become one of todays paradigms (East

African, November, 2004).

1.4 Objectives of the Study

The objectives of this study were: -

1. To establish the strategies used for management development among insurance

companies in Kenya.

2. To determine the factors that influence strategies for management development among

insurance companies in Kenya.

1.5 Importance of the Study

Insurance companies will understand the best practices of delivering management development

for the realization of their objectives.


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CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter covers available literature that puts forward the significance of management

development in insurance companies in Nairobi, Kenya. It is aimed at highlighting the meaning

of management development; management development framework; basis for identifying and

developing manage needs; management development approaches that may be used to develop

managers.

2.1 Management Development

There are as many definitions of management development as there are individuals who have

written about the topic. These include:

According to (McCall, Lombardo & Morrison, 1988,), Management Development is an

organizations conscious effort to provide its managers (and potential managers) with

opportunities to learn, grow and change in hopes of producing over the long term a cadre ofmanagers with the skills necessary to function effectively in that organization.

manager development must embrace all managers in the enterprise. It must aim at challenging

all to growth and self development. It must focus on performance rather than on promise, and on

tomorrows requirements rather than those of today. (Drucker, 1955).

development is a continuing improvement of effectiveness within a particular system, which

may be a person, but in the case of management development is within the management function

of an organization (Morris, 1978).

In some organizations the focus of management development will primarily be upon the training

and education of managers. In other(s) (it) may be seen to be aiming to change the


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managerial style In yet others the main focus will be on formalized systemsassociated

with performance appraisal and career planning (Easterby-Smith et al., 1980)

Thomson et al (2001) concurs. He writes we have used the term in a comprehensive sense to

encompass the different ways in which managers improve their capabilities. It includes

management education, which is often taken to refer to formal, structured learning in an

institutional context and management training which is often used to mean acquiring knowledge

and skills related to work requirements, also by formal means. But our use of the term

development goes beyond the sum of these to mean a wider process than the formal learning of

knowledge and skills, which includes informal and experiential modes of human capital

formation. Management Development is thus a multi-faceted process in which some aspects are

easier to identify and measure than others.

2.2 The Managers job: Roles and Competencies

Surprisingly, little is known about what managers do, how they learn to do it and how they

should be developed (Schoenfeldt & Steger, 1990). While it is true that popular conceptions of

the managers work and development are available, scientific research has yet to p rovide a

clearly supported and accepted model that can be used to guide management development

(Harris & DeSimone, 1994). Meaningful management development is likely to differ given the

context and challenges facing a particular organization.

Studies examining the job of managing have done so from at least three perspectives: describing

the characteristics of the job as it is typically performed, describing the roles managers serve and

developing process models that show the various components of managing relate to each other

(Schoenfeldt & Steger, 1990).

The characteristics approach involves observing the tasks managers perform and grouping them

into meaningful categories. (McCall, Morrison and Hannan, 1978) reviewed the results of a

group of observational studies and concluded that ten elements of managing were consistently

present. The elements include long hours of work, high activity levels, fragmented work (e.g.


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many interruptions), varied activities, primarily oral communication, many contacts, information

gathering and spending most of the working time within the organization. In addition managers

tend not to be reflective planners (given the variety of tasks and fragmented nature of the work)

and do poorly in accurately estimating how they spend their time. A common conclusion from

such studies is that important questions remain unanswered and that knowing that the

managerial job is varied and complex is not particularly helpful in the identification and / or

developmental process (Schoenfeldt & Steger, 1990).

A second approach is to identify roles that managers are typically assigned. An observational or

empirical approach is used. The observational approach is typified by Fayols (1949) five

management functions planning, organizing, commanding, coordinating and controlling, and

Mintzbergss (1973, 1975) ten managerial roles: interpersonal (figurehead, leader, liaison),

informational (Monitor, disseminator, spokesperson) and decisional (entrepreneur, disturbance

handler, resource allocator, and negotiator).The empirical approach relies on a descriptive

questionnaire (e.g. Management Position Description Questionnaire) as completed by managers

themselves and / or others who work with them. This approach has failed to provide practical,

meaningful descriptions of the job (Schoenfeldt & Steger, 1990). Taken together, the

observational and empirical approaches to categorizing the managerial role have not proven

useful in defining the managerial role or as guides to developing managers.

To overcome these limitations, the process models were developed taking into account the

particularly relevant competencies and constraints in performing the management job. The

Integrated Competency Model focuses on managerial competencies, skills and / or personal

characteristics that contribute to effective performance, rather than the role that managers

perform. 21 competencies are identified and grouped into six categories; human resource

management, leadership, goal and action management, directing subordinates, focus on others

and specialized knowledge (Boyatzis, 1982). This approach can be useful in guiding

management development programs ( Harris & DeSimone, 1994).The primary weakness of the

model is that it is based on a narrow range of measuring devices (McClellands need theory and

Kolbs learning style theory), which do not represent all of the traits, skills and knowledge

needed for managerial performance (Schoenfeldt & Steger, 1990).


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The Four-Dimensional model (Schoenfeldt & Steger, 1990) is based on various information

sources (e.g. managerial diaries, interviews, performance evaluation documents, observation). It

represents the managerial role as having the following dimensions;

Six functions forecasting and planning, training and development, persuasive communication,

influence and control, expertise / functional area and administration.

Four roles Innovator, Evaluator, Motivator, Director.

Five (relational) targets peers, subordinates, superiors, external and self. An unspecified

number of managerial styles (attributes that describe the image and approach of the manager),

include objectivity, personal impact, leadership, energy level and risk taking.

Research available on what managers do, how they do it and how they develop capabilities to do

it provides a useful conceptual model to begin the needs assessments process and serve as a

source of possible developmental topics and issues. It is however unrealistic to expect such

research no matter how advanced, to provide a blueprint for any particular organizations

management development strategy (Harris & DeSimone, 1994).

2.3 Planning Management Development

Planned development ought to be based on a clear, formal view of the content of the managers

job. To attempt to develop managers for jobs whose purpose and nature are unclear, constraints

and opportunities are unspecified and where the boundaries are undefined is to risk losing

commitment to any subsequent developmental process.

Clarity of job purpose and clarity about priorities is a considerable step as this helps to at least

address the issue of what kind of problems and circumstances the manager needs to be able to

overcome and what the purpose of developmental activities might be.

The first step in management development is to determine policy guidelines.


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Management development will fail if there is no clear policy (Margerison, 1991). Policy

statements are useful as they express the organizations commitment to development, and sets out

clearly a framework within which it can take place. It makes explicit who is responsible for

development, and sets out a framework within which it can take place. According to Thomas J,

L (2001), those organizations having a formal policy for developing their managers undertook

significantly more management training than did companies without such a policy.

2.3.1 Management Development Activities

The three essential management development activities are:

Firstly is the analysis of present and future management needs.This is carried is carried out through Human Resource planning processes. In todays changeable,

if not chaotic, conditions it may not be feasible to make precise forecasts of the number of

managers required. What should be done is to assess the skills and competencies managers will

need to meet future demands and challenges arising from competitive pressures, new product

market strategies and the introduction of new technology.

The analysis of needs may be achieved through Appraisal and performance reviews,

Psychological tests, Informal Identification, Panel or Group interviews, Management Simulation

processes, Assessment Centers, Intuitive methods and Assignments and special responsibilities.

Dessler (1991) identified that different levels of management have different development needs.

15 highly ranked needs identified are:


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Table 1: Development Needs of Different Levels of Management

Executive Level Middle Level Supervisory Level

Managing Time Evaluating and appraising

employees

Motivating others

Team Building Motivating others Evaluating and appraising others

Organizing and planning Setting objectives and priorities Leadership

Evaluating and appraising

employees.

Oral Communication Oral Communication

Coping with stress Organization and planning Understanding Human Behavior

Understanding Human Behavior Understanding human behavior Developing and training

subordinates

Self Analysis Written Communication Role of the Manager

Motivating others Managing time Setting objectives and priorities

Financial Management Team Building Written Communication

Budgeting Leadership Discipline

Setting Objectives and priorities. Decision Making Organizing and planning

Holding effective meetings Holding effective meetings Managing Time

Oral Communication Delegation Counseling and Coaching

Labor/Management relations Developing and training

subordinates

Selecting Employees

Decision Making Selecting employees. Decision Making

Developing strategies and policies.

Adapted from Personnel / Human Resources Management, Gary Dessler pp. 285.

Secondly is the assessment of existing and potential skills and competencies against these needs.

This can be carried out by performance management processes. The CIPD survey of

performance management in 2003 (Armstrong & Baron, 2004) revealed that in order of

importance, the among some of the performance measures that were used by the respondents

included the achievement of objectives, productivity, competence, flexibility, quality, skills,

contribution to team, business awareness, customer care, financial awareness, working

relationships and aligning personal objectives with organizational objectives.


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The third management development activity is the production of strategies and plans to meet

those needs. The strategies will be concerned with what the organization intends to do and

provide its future management needs in the light of its business plans. The plans will be

concerned with the roles of the parties involved and with the approaches the organization

proposes to use to develop its managers.

2.3.2 Managing the Development Process

When planning for management development, there should be a close interaction with

performance management systems, where performance related pay (PRP) and performance

appraisal are key components: the former to produce the extrinsic financial rewards in the form

of shares, income differentials, profit sharing schemes and bonuses, and the latter to provide theessential mechanism for setting objectives and feeding back performance (Hendry, 1995).

Performance management systems must be seen to reward personal development and

achievement. The achievement of objectives is also closely linked to management training and

education, which act to provide the skills and knowledge required to meet objectives.

Intrinsic rewards through praise, encouragement and reassurance are also vital components in

management development, especially in coaching and mentoring. For example, for younger

managers who may be on graduate programmes, continuous positive feedback during the early

stages of the programme is vital to sustain motivation and commitment. Older more experienced

managers also need regular praise, encouragement and reassurance that their skills and

experience are still valued and appreciated, and that any investment in personal development is

seen as being positive from the organizations point of view (Mumford, 1997).

For management development to be effective, consideration should be given to career paths and

opportunities for promotion and progression (Mumford, 1997). There should be a well-

developed human resource plan that is future oriented. In terms of career progression, the

emphasis is shifting towards individuals who display greater flexibility, adaptability and personal

characteristics such as emotional resilience.


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Career progression is likely to involve a greater emphasis on horizontal or diagonal rather than

vertical movements e. g projects, departmental and job shifts, internal consultancy roles, acting

as mentors and coaches etc (Thomson J. L, 2001).

This should also involve individual appraisal and counseling. However, care should be taken to

avoid giving staff too long or over ambitious career expectations. If these expectations cannot be

fulfilled, staff may become disillusioned and frustrated.

Burgoyne (1988) argues that managerial development may be considered as progressing through

different levels of maturity to the point where management development is making the fullest

contribution to organization development. (See Appendix 1).

2.4 Approaches to Management Development

There must be an understanding of the approaches that can be used both to develop managers

and also assess existing managerial resources and how they meet the needs of the enterprise. The

management development activities required depend on the organization, its technology, its

environment and its philosophy. A traditional bureaucratic/mechanistic type of organization may

be inclined to adopt the programmed routine approach, complete with a range of courses,

intentions, replacement charts, career plans, and results oriented review systems. An innovative

and organic type of organization would provide its managers with the opportunities, challenges

and guidance they require, seizing the chance to give people extra responsibilities, and ensuring

that they receive the coaching and encouragement they need. There may be no replacement

charts, inventor or formal appraisal schemes, but people know how they stand, where they can

go and how to get there.

The three basic approaches to management development are learning through work, formal

training and through feedback, facilitation and support. These have been addressed in detail

below.

2.4.1. Learning through Work (Informal Management Development)

This is a byproduct of a variety of managerial tasks, the dynamic nature of managerial priorities,

changes in working environment, changes in colleagues and bosses, which all provide

opportunities and stimuli. Excluding the informal processes from the models of management


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development takes us away from reality and eliminates from conscious consideration a number

of potential opportunities for learning (Mumford 2002).

Informal accidental experiences are widely present but often badly identified and in consequence

inefficiently used. Learning from experience, although present, is for many purposes insufficient.

Mumford (2002) lists the following examples of informal learning opportunities:

Table 2: Informal Learning OpportunitiesSituations within the organization Processes

Meetings Coaching / counselling

TasksFamiliar Modeling

Unfamiliar Mentoring

Task Force Negotiating

Customer Visit Problem solving

Visit to plant / office Observing

Managing a change Questioning

Social occasions Reading / Listening

Foreign travel Reviewing / Auditing

Acquisitions / Mergers Clarifying responsibilities

Closing something down. Public Speaking

Walking the floor

Situations outside the organization Strategic PlanningCharity Visioning

Domestic Life Problem diagnosis

Industry Committee. Selling

Professional Meetings.

Sports Club. People

Boss

Mentor

Network Contacts

Peers

Consultants

Subordinates.

Total reliance on these informal processes may result in problems such as idealization,

narrowness and obsolescence. Depending on the nature of the organization, there is the issue of

bosses and colleagues. These may be excellent providers of advice and good models of effective


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behavior, neither. People develop skills from the natural process of doing the job, and finding

out whether the way they do it works. If it does, they assume that they have a skill. The skill they

have acquired may be either inappropriate or at an insufficiently high performance level. At

worst, it may also be the wrong kind of skill.

2.4.2 Formal Approaches to Management Development

These are planned and deliberate. They can be achieved through:

2.4.2 (i) Promotion (Moving to a new Job)

The move may be planned by the managers current employer, or a new organization takes the

arriving manager on. According to Mumford (2002), the transition between jobs, whether

promotion or movement sideways involves more than some prior training and development

activities and an initial induction period. It is possible to see in advance what at least some of

those learning needs will be and to plan for them formally.

Secondment may be defined as a way of moving a manager into a job outside his employing

organization. It may include moving people across divisions or from one company to another

within a group of companies.

Secondments are about responsibility, authority and the application of some management

knowledge not fully utilized by the sponsoring organization.

2.4.2 (ii) Fertilization within the Job (Opportunities for Learning)

Instead of being moved to a different location to get development benefit, the manager can

extract more from the existing location. Formal management development does this by

identifying particular kinds that can be available within / around the existing job. The

fertilization involves the construction of effective learning and development processes around

the opportunities provided. Some of the opportunities are:

Stretching boundaries and acquiring new tasks - This is the process by which a manager, without

changing job title, is given additional responsibilities e.g. a sales director handing over to a sales

manager responsibility for a major national account.


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Committees / working parties / task forces - Line managers frequently assign managers to special

committees or task forces for purely managerial reasons. When one is appointed for

development reasons, it is much more desirable to discuss those reasons and identify the

development opportunities and ways of benefiting from them.

Junior Boards/ Conference Leadership - Managers can stay in their existing jobs but be given

experience in simulating the processes of their board of directors.

Junior boards are so purely developmental that they have not really been widely accepted. The

main reason seems their lack of responsibility and accountability, meaning that the discussions

are frustratingly lacking in identifiable results. The knowledge acquired seems to be outweighed

by feelings of psychological and managerial impotence.

Conference leadership requires that the trainee organize and chair problem solving conferences.

(Mathis & Jackson, 1979).

Visits to customers, suppliers and others - These visits can be seen as acquiring knowledge or

developing the understanding managers have of appropriate practices for which it is envisaged

he might be.

Projects and on-the-job development - There should be discussions with the individual as to why

they are given projects as a development exercise and how to take advantage of the development

opportunity. Projects provide major potential developmental benefits as they often include

managers in looking at a wide range of issues, in greater depth, across a wider range of functions

than might otherwise be encountered. They should carry responsibility for implementation as

well as recommendation.


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2.4.2 (iii) Learning Within The Job ( Feedback, Facilitation And Support)

Coaching/Understudy Approach - According to Armstrong (2004), he describes coaching as the

art of facilitating the enhanced performance, learn in and development of others. It takes the

form of one toone on the job approach to helping people develop their skills and levels of

competence.

Singer (1979) says it is concerned more with asking questions which help a man to think than

teaching him what to do.

One issue with coaching is that the manager as a coach primarily wants the task done well and

only secondarily wants the individual to learn from doing it. As a third factor, he/she may also

want the individual to learn from the process of discussing the task. Ordinary human beings donot always manage to achieve these three objectives with the appropriate degree of balance.

To create an effective coaching relationship within a formal management system, it is necessary

to assist managers to develop the skills involved, such as effective listening, observation and

giving non-evaluative feedback. It is also necessary to help the coach and the subordinate

understand the learning processes involved in the act of coaching.

Counseling - In many management development systems the processes (coaching and

counseling) are often confused. Most managers do not see themselves as coaches and counselors.

Mentoring - The idea of an older manager choosing a younger manager for whom he will act as

coach, counselor or sponsor is one that has long existed informally and accidentally.

There are different aspects of the role. Some mentors are door openers: they try and ensure that

their protgs are considered for important jobs, assignments and projects. They ensure that

those who make decisions about people know what their protg has achieved, and why that

level of achievement is noteworthy.


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In formal development schemes, a more experienced manager coaches a less experienced one via

discussions about work issues, job performance, politics and relationships. This is especially

helpful in encouraging the development of women managers.

Mentoring is a highly personal relationship which can sometimes lead to a level of dependence.

Some organizations run formal programmes in training both mentors and protg. This can be

helpful in defining expectations at both organizational and individual level. As with other

processes, the styles of mentor and protg need to be compatible.

Modeling on boss, colleagues outsiders - Some managers learn by observing others. Modeling

may be positive or negative. Formal management development ought to include help on how to

observe others at work, and how to build in review processes after the observation.

Acquiring feedback - We have long passed the stage of accepting that a manager is responsible

for developing his/her subordinates. It is the job of the boss to monitor and give feedback on

performance.

Reading - Managers read a great deal, but they usually read technical, professional or industrial

material connected with their work. Sometimes articles are circulated, particularly among senior

managers, for your interest, sometimes by the chief executive or human resources manager.

Managers buy and quite often read at least part of best sellers like In Search of Excellence orLee

Iacocca (Mumford 2002).

The formal scheme ought to integrate this kind of relatively casual reading into the planned

development of individuals. This could better be done by suggesting discussion meetings or

recommending that a time be set aside at normal management meetings.

2.4.3 Planned Development off the Job

Development processes centered on the job has its strength in reality. The case for taking

managers away from that reality and putting them on a course is precisely that they are then able

to concentrate entirely on learning rather than managing.

In addition to this, Oberg (1963) further adds that:


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The executive is able to get away from the pressures of the job and work in a climate in which

party line thinking is discouraged and self analysis is stimulated.

It provides resources people and resources materials faculty members, fellow executives and

books that contribute suggestions and ideas for the executive to try on for size, develop and

grow.

It presents a challenge to the executive that enhances his motivation to develop himself.

A number of methods may be used:-

Courses / Classroom Training -The advantage of classroom training is that it is widely accepted

because most people are familiar with it. It can be conducted by specialists either employed by

the organization or outside experts. A disadvantage is that classrooms often produce passive

listeners and lack of participation. Sometimes trainees have little time to question, clarify and

discuss lecture material. (Bass & Vaughn, 1966).

T- Group Training (Sensitivity / Encounter Group / Training).Laboratory - A technique for

learning about oneself and others by observing and participating in a group situation. The small

groups may meet for one to two hours or more daily or for a period of a week or longer, usually

off the job site. T Group is supposed to develop an awareness of human, group and personal

behavior. Even though people may be changed by the training, findings suggest that the

sponsoring organization does not always benefit from the changes. One study found that

sensitivity training ranks low as an effective management tool when compared to several other

common approaches (Kearney and Martin, 1974).

Special Programs - This involves sending managers to university sponsored courses or short

courses. These courses are offered by many colleges and universities and professional

associations. The managers in the courses are exposed to a variety of problems and learning

materials. However, a common complaint about these programs is that they do not deal with the

realities of an individuals workplace.

Some larger organizations have established training centers exclusively for their own employees.

The aim of the center concept is to stimulate new ideas and discussions between speakers and


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participants, to expose participants to new ideas from other people, to recharge participants

administrative batteries, and to stimulate them intellectually. (Rehfuss, 1970).

Psychological testing - These are used to determine the managers developmental potential.

Intelligence tests, verbal and mathematical reasoning tests are often being used. Such testing can

provide useful information to employees in understanding such aspects as motivation, reasoning

difficulties, leadership styles, interpersonal response traits and job preferences. The biggest

problem lies in interpreting the results. An untrained manager cannot accurately interpret the

results. It should also be recognized that some psychological test are tests are of limited validity

and can easily be faked. Psychological testing appears appropriate only when closely supervised

by a qualified professional throughout the testing and feedback process.

Human Relations Training - This originated in the Hawthorne Studies. The idea was to prepare

supervisors to handle the people problems brought to them by their employees. The trainin g

focuses on the development of human skills. Human relations programs typically deal with

motivation, leadership, communication and humanizing the work place. Participation is

emphasized and components of morale are carefully examined.

The major problem with such training is difficulty in measuring effectiveness. Consequently

such programs are often measured using only the participants reaction to them.

Case Study - This is a classroom oriented development that has been used widely in such well

known institutions such as the Harvard Business School. (Mathis & Jackson, 1979).

It provides a medium through which the trainee can study the application of management or

behavioral concepts. A common complaint is that the cases cannot be made sufficiently realistic

to be useful.

Role Playing - A development technique that requires the trainee to assume a role in a given

situation and act out behaviors associated with the role. Hopefully, participants gain an

understanding of the factors in a certain situation.

Simulation (Business Games) - These may be computer interactive games where individuals or

teams draw up a set of marketing plans for an organization, such as trying to determine the


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amount of resources to be allocated toward advertising, product design, selling. The participants

make a decision and then the computer tells them how well they did in relation to competing

individuals/teams. Other games often have to do with labor (management negotiations). When

properly done, simulation can be a useful management development tool. However it receives

the same criticism as role playing. Realism is sometimes lacking and the learning experience is

diminished. Learning must be the focus, not just playing the game.

Sabbaticals and leaves of absence - These have been popular in the academic world. Similar

sorts of plans have been adopted in the business community. Paid sabbaticals can be an

expensive proposition. Also the nature of the learning experience is not within the control of the

organization and the exact nature of the developmental experience is left to chance.

There is a bewildering array of management education and development methods to choose

from. According to (Huczynski, 1983) who has reviewed more than 200 management

development techniques, there is perhaps a greater diversity of teaching and learning methods

in use in management education than in any other subject, and the already extensive range is ever

increasing due to the unremitting rate of innovation.

2.5 Measuring the Effectiveness of Management Development

Cole (2002) states that the assessment of the effects of management development activities is a

complex matter. The so-called Management Development Audit aims to ensure that the

provisions adopted by any organization for developing its managers do produce the intended

results. The essence of the Audit approach is to ask individual managers to describe their own

experiences of, and views about, management development, and then reflect the collective view

back to those responsible formaking decisions about the development of managers.

The Audit represents a through review of management development activities, enabling senior

management to pinpoint strengths and weaknesses of the current system as well as obtaining a

feel for the way the system is operating.


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2.6 Challenges / Issues in Management Development

According to Beardwell et al (2004) some of the issues that confront organizations in developing

their managers, which management development should tackle include;

Senior Manager Development: On one hand, senior managers are viewed as a valuable and

critical resource to the survival and success of the organization. On the other hand, their training

appears inadequate or rejected, reasons ranging from pressure / lack of time to emotional and

political attitudes about their perceived need for development.

Developing professionals as managers: These include the actuarial scientists, accountants,

doctors etc. They display what Bittel (1998) deems as counterproductive characteristics. Theseinclude: Over application of their analytical skills becoming paralyzed by analysis, feeling that

they are above organizational policies, expect their technical expertise to solve organizational

problems, respect logic and intuition over emotion, lack feeling, empathy and awareness of

commonsense solutions to problems.

Companies have to realize that professionals have special needs and prefer to plan and organize

their own development to meet these needs in a contingent manner.

Management Development in small firms: Small firms appear to ignore or avoid investing in

management development. The main barriers include: Lack of time diversity and uniqueness,

finding ways to overcome the bureaucracy and provide accessible and affordable approaches to

development, not knowing where or how to get advice and assistance, complicated procedures

and bureaucracy when applying for assistance.

These may be overcome by: Identifying the knowledge and skills required by small firm

owner/managers, delivering development in a way that acknowledges the sectors diversity and

uniqueness and finding ways to overcome the bureaucracy and provide accessible and affordable

approaches to development.

Development of Women Managers: Mullins (1999) identify three barriers: -


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The attitude and behavior of women managers e. g. their lack of confidence and perceived low

career orientation and lack of competition, structural factors such as human resource policies and

practices which discriminate against women managers e. g appraisal and selection criteria that

foreclose consideration for certain positions and organizational cultural factors such as the

attitudes of male managers and informal clubs and networks which serve to exclude women and

reinforce gender stereotypes.

Practical measures that can be taken to develop women managers are: - Integrating womens

development into mainstream human resource development, mentoring / providing role models,

reviewing child care provisions, auditing attitudes towards women, providing women only

training, putting equality on the organizational agenda, reviewing selection / promotion /

appraisal procedures, moving women out of the ghetto into frontline positions and career

planning strategies for women.

Technology: According to Cole (2002), technological changes are having a profound impact on

training and development, increasing the need to assess the developmental requirements of

current and future managers, professionals and technical people.

The developments have created a situation in which the knowledge and skill of the people is the

real human resource. Management development is hence vital if institutions are to emerge as

successful users of technology and more so if the developing countries are to compete in the

world as well as domestic markets.

Multinational Needs: Managers need to move beyond simply recognizing that people from other

countries are different, thereby inferior or less effective.

Working abroad or in your country with managers from other countries causes culture shock as

expectations of the right way of doing things differs. The difficulties may be made worse by

language.

Ethics of managers are another aspect of cultural belief. Values differ within countries e.g.

competition is not important for the Swedish or Japanese but it is for Americans. The question of

tightness of structure and responsibility and the degree of openness in managerial relationships,

is especially important in Management Development. (Mumford 2002).


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From a systematic managerial point of view, opportunities for posting abroad are diminishing at

exactly the time when there is greater understanding of what needs to be done in order to make a

successful management development programme abroad. The advantages of distance and greater

autonomy have to be balanced against the solitary and isolated nature of the managers work.

There are risks, both political and commercial. Domestic problems can also contribute to failure

as well as success. There is also the re-entry difficulty. Finding the right slot for the returning

manager, or even promising to do so before his departure abroad, can cause major headaches.

Graduates: A number of organizations recruit graduates primarily to fill immediate technical or

functional needs. Aftertime, experience and achieved performance they merge into the unit they

have joined and their development as managers follows the normal path for that organization.

Other organizations recruit graduates to create a pool of intelligent people with high potential as

a means of providing for management for the future. The difference in objectives and immediate

location for these different kinds of graduates recruitment raises problems. Whereas the first

group goes into a proper job, although it may be below their intellectual level or ambition, the

latter often go into no clear functional stream.

There needs to be a formal management development programme which includes appropriate

courses, assignments in their particular units long enough to establish that they have done a

definable piece of work. If sharp distinctions are made between themselves and others of

equivalent age but with no degree, the expectations and motivation of non-degree people will be

reduced. There is some thinking that MBA recruits are seen as expensive and simply want to do

the managing directors job before they have shown that they can manage a department. They

are characterized as arrogant, possessing intellectual and analytical skills rather than practical

skills on which so much effective management is believed to be based.

Current developments in MBA programmes all emphasize relevance and reality. The future

growth of MBA programs is more likely to be in terms of more appropriate general management

processes and more specific relevance to their own organization.


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2.7 Management Development: Summary and Conclusion

From the foregoing literature review, a number of points stand out clearly. Because of the rapid

technological changes and growth of organizations into complex operations, managers need to be

constantly developed. Thus development that fosters on manager self development and

versatility should be planned, administered and accepted as vital to organizational success.

The decision as to what type of approach to use in any working organization should be made

only after careful analysis of the job, the information to be transmitted, the behavior to be

mastered, the job, level, abilities of trainer, etc. The type of approach should provide a specific

purpose. Careful consideration should be given to both immediate and long needs of the

individual managers and at the same time to the organization as well.

An integrated approach to Management Development will make judicious use of both the formal

and informal methods. Five governing principles to be adhered to are the reality of management,

relevance, self development, experiential learning and formal training.

Programmes need evaluation to see if they have achieved the objectives for which they were

established.

In conclusion, it is extremely difficult to suggest that a particular approach is ideal, since each

has certain advantages, disadvantages and limitations in a specific developmental situation.

Managers need to discover the degree to which their programmes accomplish the attainment of

organizational goals and objectives.


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RESEARCH METHODOLOGY

CHAPTER THREE

3.1. Research Design

This study used a descriptive census survey. This design was considered appropriate for this

study since it involved a description of the what and how of the various management approaches

are utilized in insurance companies.

3.2 Population

The population of the study consisted of all the insurance companies in Kenya. According to the

annual report of the Commissioner of Insurance, 2008, there are 41 Insurance companies in

Kenya today. All of them were included in the survey. (See appendix 3).

3.3 Data Collection

The main instrument used in the collection of data for the study was the questionnaire. Most of

the questions were open ended; a few were closed ended. The respondents were the Human

Resource Managers in the various insurance companies.

The open-ended questions allowed the respondents to give answers in their own way. The drop

and pick method was used to administer the questionnaires. This gave the respondents a chance

to fill the questionnaire during their free time. Envelopes were provided for confidentiality

purposes. These sealed envelopes were then picked one week after delivery. The questionnaire

were divided into two parts, Section A was used to collect general information on company

profiles. Section B aimed at collecting data that addresses the objectives of the study.

3.4 Data Analysis

Once the questionnaires were received, they were edited to ensure that they were well completed

and the responses consistent. The data collected was analyzed using the content analysis

technique, as the interviewer sought in-depth information on the management development


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approaches adopted by the insurance companies. Descriptive statistics were used to compare the

approaches used by the insurance companies on the basis of size and other demographic

variables.


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CHAPTER FOUR

DATA ANALYSIS AND FINDINGS

4.1 Introduction

This chapter presents the analysis and findings from the data collected from the field based on

the specific objectives.

From the study population targets of 41 respondents, 30 respondents responded to the

questionnaire, comprising 73.2% response rate.

4.2 General Information

Respondents title

From the study, the researcher found that the respondents titles included; administration

officers, assistant human resource manager, claims and underwriting managers, deputy human

resource managers, group training managers, head of sales and marketing, human resource

managers, ICT managers and training managers.

Table 3: Duration the Organization Has Been In Operation

Frequency Percent

less than 5 years 4 13.3

between 5 and 10 years 3 10.0over 10 years 23 76.7

Total 30 100.0

On the duration that the organizations had been in existence, the study found that the majority of

the organizations had been in existence for over 10 years as shown by 76.7%, 13.3% of the

organizations had been in existence for less than 5 years, while 10% of the organizations had

been in existence for 5-10 years.

Table 4: Ownership of the Organization

Frequency Percent

locally owned 20 66.7

both local and foreign 10 33.3

Total 30 100.0

The findings in the above table show the ownership of the organizations. From the study, the


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majority of the organizations as shown by 66.7% were locally owned, while 33.3% of the

organizations were both local and foreign.

Table 5: Duration of Working in the Organization

Frequency Percent

less than 5 years 18 60.0

between 5 and 10 years 6 20.0

over 10 years 6 20.0

Total 30 100.0

The study also sought to find out the duration that the respondents had been working in their

organizations. From the findings, the majority of the respondents had been working in their

respective organizations for less than 5 years as shown by 60%, while the respondents who

reported that they had been working in their respective organizations for 5-10 years and for over

10 years tied at 20%.

Table 6: Number of Managers in the Organization

Frequency Percent

30 5 16.7

Total 30 100.0

The findings in the above table show the number of managers in the organizations. From the

study, the majority of the organizations had 5-10 managers as indicated by 30%, 26.7% had 10 to

20 managers, 20% of the organizations had 20 to 30 managers, 16.7% had over 30 managers,

while 6.7% of the organizations had less than 5 managers.

Summary of the Number of Managers

In the insurance companies, the number of senior management ranged between 2-18 managers,

middle management ranged between 2 to 42, junior management ranged from 2-58, while the

supervisors ranged from 1 to 25.


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Table 7: Expatriates in the Firm

Frequency Percent

1 6 20.0

2 6 20.0

others 18 60.0Total 30 100.0

On the number of expatriates in the firms, the majority of the respondents said others i.e. none,

while the respondents who said that they had 1 and those who said 2 expatriates tied at 20%.

Table 8: Strategic Plan, Vision, Objectives, Formal Statement and Business Plans

yes no

the organization has a strategic plan 93.3 6.7

the organization has spelt out its vision 100 0

the organization has spelt out its strategicobjectives 100 0

institution has a published formal statement of itsphilosophy of management education and training 46.7 53.3

the company's management development strategyis related to the company's business plans 90 10

From the findings in the above table, it was clear that all the firms had spelt out their vision, and

also they had spelt out their strategic objectives. The study further revealed that the majority of

the organizations as shown by 93.3% had a strategic plan and also 90% of the companies

management development strategy was related to the companies business plan. Few respondents

as shown by 46.6% reported that their institutions had a published formal statement of its

philosophy of management education and training.

4.3 Strategies Used For Management Development

Table 9: Role of Management Development in the Organization

yes no

remedying weaknesses 53.3 46.7developing potential 80 20

On the role that management development played in the organizations, the study found that in

the majority of the organizations, management development was for developing potential as

shown by 80% of the respondents, while 53.3% of the respondents reported that management


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development was for remedying weaknesses.

Table 10: Internal Factors Influencing Management Development in the Organizations

to no

extent

to aless

extent

to amoderate

extent

to alarge

extent

to a verylarge

extent Mean

culture 16.7 3.3 30 36.7 13.3 3.3

history 16.7 33.3 10 10 30 3

initiative 0 10 46.7 36.7 6.7 3.4

commitment to professional 6.7 0 16.7 36.7 40 4

development 6 13.3 23.3 40 23.3 3.7

interest in the profession 6.7 0 16.7 60 16.7 3.8

top management support 0 3.3 26.7 36.7 33.3 4

involvement of consultants 20 6.7 33.3 40 10 3.1

lack of motivation 23.3 13.3 30 13.3 20 2.9

unclear roles 16.7 46.7 16.7 6.7 13.3 2.5

lack of confidence 20 50 6.7 23.3 0 2.3

insufficient learning culture 23.3 23.3 26.7 20 6.7 2.6

lack of resources 26.7 46.7 6.7 6.7 13.3 2.3

increased responsibility 13.3 23.3 33.3 16.7 13.3 2.9

organization re-structure 16.7 23.3 13.3 26.7 20 3.1

job redesign 10 23.3 33.3 26.7 6.7 2.9

time factors 6.7 33.3 46.7 13.3 0 2.7

group factors e.g. interaction,communication, negotiation

skills, feedback 3.3 0 53.3 36.7 6.7 3.4

follower factors i.e. employeesmanaged 13.3 30 53.3 3.3 0 2.5

board of directors 20 10 30 23.3 16.7 3.1

In her study, the researcher requested the respondents to indicate the extent that the above

internal factors influenced management development in the insurance industry.

From the findings, the study found that the factors that influenced management development in

the organizations to a large extent were commitment to professional and top management

support as shown by a mean score of 4.0 in each case, interest in the profession as shown by a

mean score of 3.8 and also development as shown by a mean score of 3.7.

Further the study found that there were other factors that influenced management development to

a moderate extent. These factors included; initiative and group factors e.g. interaction,

communication, negotiation skills, feedback as shown by a mean score of 3.4 in each case,

culture as shown by a mean score of 3.3, involvement of consultants, organization re-structure


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and board of directors as shown by a mean score of 3.1 in each case, history as shown by a mean

score of 3, lack of motivation, increased responsibility and job redesign as shown by a mean

score of 2.9 in each case, time factors shown by a mean score of 2.7, insufficient learning culture

shown by a mean score of 2.6 and also unclear roles and follower factors i.e. employees

managed as shown by a mean score of 2.5 in each case.

The factors that influenced the management development to a less extent were lack of

confidence and lack of resources as shown by a mean score of 2.3 in each case.

Table 11: Impact of External Factors on Management Development in the Organization

to no

extent

to aless

extent

to amoderate

Documents

MBA PROJECT - MANAGEMENT DEVELOPMENT STRATEGIES USED BY INSURANCE COMPANIES IN KENYA - CAROLYN A. JUMBA.pdf