Management development

CH-13 Copyright 2008 Werner et al 1

Management Development

Chapter 13


Learning Objectives• Define management development and describe

the extent to which it is used in U.S. organizations

• Describe the approaches that have been taken to describe the managerial job

• Explain specific ways that management development can be linked to organizational goals and strategies

• Describe the options and trends in management education


Learning Objectives• Explain how training and on-the-job experiences

can be used to develop managers• Describe the components of two approaches

frequently used in management development programs: – leadership training– behavior modeling training

• Use the HRD process model to design, implement, and evaluate management development programs


Questions• Do you think the following statements are true or false?

– It is predicted that there will be fewer managers in the United States by the end of this decade than there are presently

– Researchers have been able to describe the managerial job with a high degree of precision

– The systems model of HRD (assess-design-implement-evaluate) is not very helpful when it comes to management development

– Management education is a small and decreasing proportion of all the post-secondary educational opportunities that students in the United States are taking

– Corporate universities are only popular among very large organizations

– Behavior modeling training may work fine for entry-level training, but it has not been found to be very effective for management development efforts


Today’s Management

• An organization must have a high-quality, flexible, and adaptive management team if it is to survive and succeed– managers are ultimately responsible for

making the decision to change their organizations’ strategies and structures

– managers ensure that these new approaches are implemented, modified, and executed in a way that achieves the organizations’ goals


Management Development (MD)

• An organization’s 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 of managers with the skills necessary to function effectively in that organization


Comments on Definition

• Management development – should be seen as specific to a particular

organization– consists of providing employees with

opportunities for learning, growth, and change– must be a conscious effort on the part of the

organization– should be directly linked to the organization’s

strategy


The Main Components of MD

• Management Education• Management Training• On-the-Job Experiences


Management Education

• The acquisition of a broad range of conceptual knowledge and skills in formal classroom situations in degree-granting institutions– includes a wide range of activities, with the

classroom setting increasingly being used to bring together and process the results of outside activities to draw conclusions


Management Training

• Focuses more on – providing specific skills or knowledge that

could be immediately applied within an organization

– a specific position or set of positions within an organization (e.g., middle managers)


On the Job Experiences

• Planned or unplanned opportunities for a manager– to gain self-knowledge – enhance existing skills and abilities– obtain new skills or information within the

context of day-to-day activities • mentoring • coaching• assignment to a task force


Addressed Issues• Efforts to describe the managerial job

– including roles managers must perform and competencies necessary for performing them effectively

• Making management development strategic options available for management education

• Options available for management training and using on-the-job experiences for management development

• A description of two common approaches used to develop managers (leadership training and behavior modeling training for interpersonal skills)

• The design of management development programs


Uniqueness of HRD in MD

• There is a need for HRD professionals to identify what the management job is (and needs to be) in their own organization before they can design and deliver management development processes and programs that will meet the needs of their own business and contribute to its competitiveness and effectiveness


Initial Efforts

• Designers of such programs should begin their efforts by obtaining a clear understanding of – the organization (including its external

environment, goals, strategic plan, culture, strengths and weaknesses)

– the characteristics of the target population


Approaches to Understanding the Job of Managing

• Characteristics approach• Observational approach• Empirical approach• Integrated competency model


Characteristics Approach

• Characteristics approach involves– observing the tasks managers perform – grouping them into meaningful categories


Observational Approach

• Identify the roles that managers are typically assigned– Fayol’s Five Management Functions

• planning, organizing, commanding, coordinating, and controlling

– Mintzberg’s Managerial Roles • interpersonal (figurehead, leader, liaison)• informational (monitor, disseminator,

spokesperson)• decisional (entrepreneur, disturbance handler,

resource allocator, and negotiator)


Empirical Approach

• Relies on a descriptive questionnaire– The Management Position Description

Questionnaire


Integrated Competency Model • Based on interviews of over 2,000 managers in twelve

organizations• Focuses on managerial competencies

– skills and/or personal characteristics that contribute to effective performance

• Twenty-one competencies that are grouped into six categories: – human resource management– leadership – goal and action management – directing subordinates – focus on others– specialized knowledge


Integrated Competency Model Clusters and Competencies

Table 13-1

NOTE: * Identified as “threshold competencies,” that is, characteristics essential to performing a job, but not causally related to superior job performance.SOURCE: From Schoenfeldt, L. F., & Steger, J. A. (1990). Identification and development of managerial talent. In Ferris, G. R., & Rowland, K. M. (Eds.), Organizational entry (p. 210). Greenwich, CT: JAI Press.

Cluster Competencies

Leadership Self-confidenceUse oral presentationsConceptualizationLogical thought*



Table 13-1



Goal and Action Management

Pro-activityConcern with impactDiagnostic use of concepts



Table 13-1



Directing Subordinates

Use of unilateral power*Spontaneity*Developing others*



Table 13-1



Focus on Others Perceptual objectivitySelf-controlStamina and adaptabilityConcern with close relationships



Table 13-1



Specialized Knowledge

MemorySpecialized job knowledge*


Four-Dimensional Model• Six functions

– forecasting and planning, training and development, persuasive communication, influence and control, expertise/functional area, administration

• Four roles– innovator, evaluator, motivator, director

• Five (relational) targets– peers, subordinates, superiors, external, and self

• An unspecified number of managerial styles


Mintzberg’s “Well Rounded” Model

• Seven interrelated roles – conceiving – scheduling – communicating – controlling– leading – linking– doing


Mintzberg’s “Well Rounded” Model of the Managerial Job

Fig. 13-1

SOURCE: Reprinted from Mintzberg, H. (1994). Rounding out the manager’s job. MIT Sloan Management Review, 36(1): 1994, pp. 23, by permission of publisher. Copyright 1994 by Massachusetts Institute of Technology. All rights reserved.

Linking

Communicating

Conceiving

Scheduling

Controlling

Doing

Leading

Doing


Some Practical Implications• HRD professionals should:

– recognize that one of the goals of management development is to develop the whole person, so that he or she can manage effectively within the context of the organization and external environment

– design programs and processes that go beyond the one-shot event

• include ongoing activities that provide the opportunity to reinforce and refine what has been learned in the context of performing the work


Some Practical Applications

• HRD professionals should:– build into programs and practices a

recognition of the interrelationships between the “components” of managing, so that participants can see and feel how what they are learning can be integrated into the whole of the management job



• HRD professionals should:– implement programs and processes in a way

that recognizes and takes advantage of the values, knowledge, and experiences that participants bring to the management experience

– consider what the person brings to the job of managing when dealing with learning and transfer of training issues



• HRD professionals should:– include recognition of these issues when

conducting needs assessment and evaluation activities for management development programs


Importance of Needs Assessment

• Importance of conducting a thorough needs assessment before designing a management development program is amplified

• Many organizations are likely wasting critical resources on inadequately focused management development efforts


The Globally Competent Manager

• Organizations need a network of managers who are specialists in global issues

• Categories are– Business Managers– Country Managers– Functional Managers– Corporate Managers


Business Manager

• This type of manager plays three roles, serving as– the strategist for the organization,– the architect of its worldwide asset

configuration, and– the coordinator of transactions across national

borders


Country Manager

• This type of manager – works in the organization’s national

subsidiaries• Plays three roles, serving as

– the sensor and interpreter of local opportunities and threats

– the builder of local resources and capabilities– the contributor to active participation in global

strategy


Functional Manager

• These managers are functional specialists – (e.g., in engineering, marketing, human resources)

• who – “scan” for specialized information worldwide– “cross-pollinate” leading-edge knowledge and best

practice– champion innovations that may offer transnational

opportunities and applications


Corporate Managers

• These managers serve in corporate headquarters and orchestrate the organization’s activities playing the roles of – leader and talent scout

(i.e., by identifying potential business, country, and functional managers)

– developing promising executives


Predicting International Executive Potential

• Eight end-state competency dimensions– sensitivity to cultural differences, business

knowledge, courage to take a stand, bringing out the best in people, acting with integrity, insight, commitment to success, and risk taking

• Six learning-oriented dimensions– use of feedback, cultural adventurousness,

seeking opportunities to learn, openness to criticism, feedback seeking, and flexibility


What Competencies Will Future Managers Need?

• Five categories of KSAOs will be important for managerial careers in this new century: – a knowledge-based technical specialty – cross-functional and international experience – collaborative leadership– self management skills – personal traits, including integrity, trust-

worthiness, and flexibility


Making Management Development Strategic

• Management development should be tied to the organization’s structure and strategy for accomplishing its business goals

• Three desired linkages– the link between the business environment and

business strategy– the link between business strategy and the

organization’s management development strategy– The link between the management development

strategy and management development activities


Four Guiding Principles to Make Strategic Links

• Begin by moving out and up to business strategy

• Put job experiences before classroom activities, not vice versa

• Be opportunistic• Provide support for experience-based

learning


Management Education

• Bachelor’s or Master’s programs in business administration (B.B.A. or M.B.A.) offered at colleges and universities

• Executive education, which can range from condensed M.B.A. programs to short courses delivered by colleges and universities, consulting firms, private institutes, and professional and industry associations


Course Content

• Ethical and legal responsibilities in organizations and society

• Financial theories, analysis, reporting, and markets

• Creation of value through the integrated production and distribution of goods, services, and information


Course Content

• Group and individual dynamics in organizations• Statistical data analysis and management

science as they support decision making processes throughout an organization

• Information technologies as they influence the structure and processes of organizations and economies, and as they influence the roles and techniques of management


Course Content

• Domestic and global economic environments of organizations

• Other management-specific knowledge and abilities as identified by the school


Degree Programs…

• … at both the graduate and undergraduate levels should be seen as only one component of a manager’s development

• Produce graduates are “works-in-progress,” with the potential to become effective managers with further development and experience


Executive Education Programs

• Range from condensed MBA programs known as Executive MBAs (EMBAs), to short courses on given topics and issues, to one-time sessions


Executive MBA Programs

• Designed to be completed in two years• Students tend to be older, full-time

managers from a variety of organizations who have a significant amount of experience as managers


Other Approaches to Executive Education

• Courses in a wide range of management topics• Providers offer courses that can be used as part

of a total management development program – colleges and universities – organizations such as the Center for Creative

Leadership – industry associations– consultants


Course Content

• Mix theory with a great deal of practical relevance in order to provide participants with information and tools that have immediate application to their current jobs


Long-Distance Learning • A growing part of executive education• Advantages of using such courses offered by

external providers include

– controlling the costs of in-house courses– the specialized expertise of the provider – the design and packaging of such courses– a practitioner-oriented approach

• particularly among courses not offered by universities

• Significant disadvantage of such courses – a lack of quality control


The Educator’s Challenge

• To ensure the timeliness and “value-added” of what is presented


Management Training and Experiences

• A combination of externally provided and internally developed courses and programs

• A wide variety of possibilities exist• Three approaches

– company-designed courses – corporate universities– on-the-job experiences


Company-Designed Courses

• Advantage of being tailored to the specific issues, skills, and individual attributes of the organization and its managers

• Range from a specific course focusing on one skill or issue to a series of inter-connected courses

• The issues in designing and implementing such courses are the same as for any HRD program


Corporate Universities• Company academy or college in which all

managers at certain levels are required to complete a specific curriculum

• Specific educational mission geared toward the organization’s specific needs and preferred ways of doing things

• Transmit knowledge and skills that all participants at a particular level should know

• Expensive component of management development


On-the-Job Experiences

• Important role in the development of managers

• Many on-the-job experiences tend to reinforce old attitudes and behaviors

• Too often organizations leave such development to chance– managers discover the lessons to be learned

on their own


Characteristics of Effective MD• Opportunism

– taking advantage of opportunities for growth and learning• Individualism

– taking into account the unique attributes of the individuals being developed

• Long-term perspective– taking the view that developing managers is a multiyear process

(e.g., 10–20 years)• Encouragement of self-motivation

– encouraging the individuals being developed to be self-motivated• Online approach

– centered on learning on the job


Potential Lessons of ExperienceTable 13-2

• Setting and Implementing Agendas– Technical/professional skills– All about the business one is in– Strategic thinking– Shouldering full responsibility– Building and using structure and control

systems– Innovative problem-solving methods

SOURCE: Reprinted with permission from Key Event in Executives’ Lives, Technical Report No. 32 (Greensboro, NC: Center for Creative Leadership, 1987), p. 227.




•Handling Relationships - 1• Handling political situations• Getting people to implement solutions• What executives are like and how to work with them• Strategies of negotiation• Dealing with people over whom you have no authority• Understanding other people’s perspectives



• Handling Relationships - 2– Understanding other people’s perspectives– Dealing with conflict– Directing and motivating subordinates– Developing other people– Confronting subordinate performance

problems– Managing former bosses and peers




• Basic Values– You can’t manage everything all alone– Sensitivity to the human side of management– Basic management values




• Executive Temperament– Being tough when necessary– Self-confidence– Coping with situations beyond your control– Persevering through adversity– Coping with ambiguous situations– Use (and abuse) of power




• Personal Awareness– The balance between work and personal life– Knowing what really excites you about work– Personal limits and blind spots– Taking charge of your career– Recognizing and seizing opportunities



The Developmental EventsTable 13-3

• Setting the Stage– Early work experience– First supervisory job

• Leading by Persuasion– Project/task-force assignments– Line to staff switches

SOURCE: Reprinted with the permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group,from LESSONS OF EXPERIENCE: How Successful Executives Develop on the Job by Morgan W. McCall, Jr. MichaelM. Lombardo, Ann M. Morison. Copyright 1988 by Lexington Books. All rights reserved.



• Leading on Line– Starting from scratch– Turning a business around– Managing a larger scope

• When Other People Matter– Bosses




• Hardships– Personal trauma– Career setback– Changing jobs– Business mistakes– Subordinate performance problems



Developmental Challenge Profile (DCP)

• A ninety-six item questionnaire based on the research investigating job features that could be developmental

• Three Categories• Job transition

– unfamiliar responsibilities, – proving yourself

• Task-related characteristics– creating change– developing new directions, – inherited problems, – Reduction decisions– problems with employees


Developmental Challenge Profile (DCP)

• High level of responsibility– high stakes– managing business diversity,– job overload– handling external pressure

• Non-authority relationships– influencing without authority– obstacles– adverse business conditions– lack of top management support,– lack of personal support– difficult boss


Two Other Approaches

• Using on-the-job experiences systematically in management development– mentoring– action learning


Action Learning

• Involves having participants– select an organizational problem – write a case study describing the problem– meet with a group of other managers who

face similar problems to discuss ways the problem can be dealt with


Potential Advantages

• Discovery of a structured way to examine and analyze on-the-job events

• Provides the opportunity to motivate participants to seek additional development

• Motivation to learn and seek further development may be stronger


Key to Using On-the-Job Experiences

• Ensure that time and techniques are provided so that opportunities for learning are not overlooked


Approaches to Management Development

• Leadership Training• Behavior Modeling


Transformational Leadership

• Main elements of transformational leadership include – charisma

• offering a vision and raising the self-expectations of followers)

– intellectual stimulation • helping followers change their assumptions and

focus on rational solutions– individualized consideration

• providing coaching and individual development


Leadership Development

• Chief officers see leadership development as one of their primary responsibilities because– Organizations are judged by their sustained success– Winning companies have leaders at every level– The best way to get more leaders is to have leaders

develop leaders– To develop others, leaders must have a teachable

point of view– Leaders create stories about the future of their

organizations


Teachable Point of View

• Focuses on four leadership areas: – ideas about products– services– the marketplace– a real-world explanation of the leader’s

• values• edge (making the tough, go-no go decisions)• energy (motivating and energizing others)


Behavior Modeling Training

• Involves five steps – modeling – retention – rehearsal– feedback– transfer of training


Modeling Phase

• Trainees are usually shown a video clip in which a model performs the behavior to be learned

• The desired behavior is broken into a series of discrete learning points, or key behaviors


Retention Phase

• Trainees perform activities to enhance the memory of what they have observed

• These activities include – reviewing the learning points – discussing the rationale underlying each point– talking over the behaviors


Rehearsal Phase

• Each trainee role plays the desired behavior with another trainee


Feedback Phase

• Each trainee receives feedback on his or her performance based on what was done well and what should be improved


Transfer of Training Phase

• Trainees are encouraged to practice the newly learned behavior on the job


Designing Effective MD Programs

• Management development programs need to be constructed the way any sound HRD program is – through needs assessment– through effective design– through timely implementation– through accurate evaluation


MD Issues

• Management development must be tied to the organization’s strategic plan

• A thorough needs assessment is essential• Specific objectives, both for the overall

program and for each of its components, should be established

• Involvement in and commitment of senior management in all phases of the process is critical


MD Issues• A variety of developmental opportunities, both

formal and on the job, should be used – there must be a linkage between what is learned in

the classroom and what people are actually doing in their jobs.

• The program should be designed to ensure that the individuals to be developed are motivated to participate in such activities

• Action should be taken to evaluate the program regularly and modify and update it as needs change