Management Development

What is Management Development

According to Management Development Institute of India- “Management Development is the development of management done over and above its science and theory, of its practice and application in organizations, corporations and institutions, alike in relation to the organization and manager, so as to re-equip both to fulfill their purposes more effectively and in harmony with each other and both with the environment in which they function and have their being and hope to thrive upon and grow. Management development is a systematic process through which managers develop their abilities to manage. Through this process, managers get to learn more and increase their knowledge as well as they get to improve their skills which benefit them as well as their organization. The role played by the organization in management development is the establishment of programs and opportunities which will help in development of their existing potential managers. Management development embraces the entire process by which managers learn, progress and improve their competence to perform managerial tasks.

Henry Fayol, the staunch supporter of management education, developed the idea of management training and started the first school of management in Paris. Management is recognised as a social science today, and it has its organized body of knowledge, principles and techniques.

Effective executive development programs benefit all - the employees, managers, and the organization. Managers can benefit from executive development programs by being better able to communicate with their staff. Employees also may benefit from a development program by acquiring a deep appreciation for their own skills and career possi­bilities and resuming a greater responsibility for managing their own careers. The organization may gain from a career development system by increased employee loyalty, improved communication throughout the organisation, lower turnover rates, and strengthened human re­source systems.

The Need and Importance of Management Development

The need and importance for management development in today’s organisations arises because of the following factors:

• There is a rapid pace of technological development. Many automatic machines and equipments have been introduced. The managers must have working knowledge of the uses of the new technology.
• Change in the socio-cultural environment is taking at a fast speed. The managers must have up-to-date knowledge of these changes to understand the behaviour of people in a proper perspective.
• There is tough competition in the market and the consumers have become conscious of their rights. It is no longer easy to misguide the consumers. To understand the needs of the consumers properly, executive development can be of great help.
• Recognition of social responsibility of business managers has increased the need of executive development.
• Today’s workforce is educated and socially aware. They ask for their participation in management, better pay and better working conditions. In order to satisfy them and to motivate them to contribute to the achievement of organisational objectives, development of executives is necessary.
• Frequent labour-management conflicts need trained managers to maintain industrial peace in the enterprise.
• Management development can be used to impart knowledge to the managerial personnel in the latest management concepts, principles, techniques and practices.

Management development is essentially the process of enriching learning experiences of managerial personnel at various levels and improving their knowledge, skills and capabilities keeping in view the present and future needs of the organisation. It also lays emphasis on behavioural improvement in interpersonal relationships, team-work and capacity to lead.