After reading this article you will learn about:- 1. Meaning of Management Development 2. Objectives of Management Development 3. Importance 4. Techniques 5. Programmes 6. Performance Appraisal.

Meaning of Management Development:

Management development is a planned and organised process and programme of training and growth whereby an individual manager or executive (at each level of management hierarchy) gains knowl­edge, skills and attitude to manage workers and work organizations effectively.

Objectives of Management Development:

1. To ensure the availability of competent managers to achieve the goals of the organization.

2. To ensure optimum utilisation of human capital.


3. To prepare present employees for higher assignments.

4. To replace retiring executives with younger talents.

5. And as a result, to promote progress, productivity and profits of the enterprise.

Importance of Management Development:

In the words of Peter Drucker- An institution that cannot produce its own managers will die. Hence, the ability of an institution to produce managers is more important than its ability to produce goods efficiently and cheaply.


No modern business can grow and succeed without planned attention towards the development of certain attitudes, skills, knowledge and insights in its employees.

Techniques of Management Development:

Management development techniques may be classified as:

(i) On the Job Experience and Teaching Techniques:

(a) Coaching and assigning challenging tasks.


(b) Rotational assignments e.g., rotation among managerial training positions, creation of ‘Assistant to…..’, positions etc.

(c) Multiple management, e.g., Committees, junior boards etc.

(d) Conference programmes and problem solving committees.

(e) Understudy for management succession.


(f) Management workshop programmes.

(g) Temporary promotions.

(h) Planned reading programmes.

(ii) Off-the-Job Teaching Techniques:


a. Lectures and programmed instructions.

b. Case study and case problems.

c. Role playing.

d. Business games.


e. Conference, seminars, etc.

f. Project study.

g. Brain-storming method.

h. Observations tours and visits abroad, etc.

Programmes for Management Development:


A. Junior Managers/Executive Development Programme:

(a) Observation assignments to work under a number of managers to observe as how they perform managerial functions.

(b) Assignment to managerial positions-the trainee is appointed to a supervisory job so that he learns to get things done through others.

(c) Job rotation among different managerial positions to gain actual experience in managing.

(d) Serving on committees-Committee experience will warn the young executive against believing that this point of view is always the right one to have, and it will show him the importance of having an open mind towards any problem.

B. Senior Managers/Executive Development Programmes:


(a) Lecturing:

The lecture method followed by discussions is the best method to pass on ideas, concept, information and knowledge.

(b) Brain-Storming:

A problem is posed and ideas are invited which are critically examined.

(c) Case Studies:

It is a real life situation for studying a problem. Case studies are widely used in teaching, Law, personnel management, labour relations etc.


(d) Conferences:

The conference leader makes a preliminary statement indicating the scope of the subject and submits issues for discussion. He puts questions and induces other members of the group to participate in the discussion.

This method is very useful for the development of conceptual knowledge and also for the creation and modification of attitudes.

(e) Role Playing:

It is spontaneous acting of a realistic situation involving two or more persons under class-room situation.

Typical examples of role playing are:


(i) A medical representative presenting a sales talk on a medicine to a doctor,

(ii) A finance officer conducting a budget meeting etc.

Role playing involves action, doing and practice.

(f) Project Method:

A special project-such as marketing of a new product—may be given to an individual executive who will work on the project, collect data, carry out analysis and offer his recommendations.

(g) Management Games:


It is a classroom simulation exercise in which trainee teams compete against each other to achieve given objectives.

(h) Sensitivity Training:

It involves face-to-face contact with a small group for a couple of weeks. The learning takes place not on an intellectual level but on a feeling level, since the individual is actually experiencing events rather than talking about them.

Performance Appraisal as the Basis of Management Development Programme:

Appraisal is the basis of all development programmes. Managerial appraisal is the process of judging the effectiveness of executives. Performance appraisal shows-how much effective the management development programme was.

Performance appraisal methods may be divided into two groups:

(i) Appraisal of employees according to their traits, attributes and general behaviour on the job, known as Trait Approach.


(ii) Appraisal by results

(i) Trait Approach — Different techniques under this approach are:

(a) Rankine Method:

One employee is compared with all other employees and then he is placed in a simple rank order. In doing so, the appraiser considers the employee and his performance as an entity.

(b) Grading Method:

Certain categories of worth are established in advance and are carefully defined, such as-outstanding, satisfactory and unsatisfactory. Employee performance is then compared with these grade definitions and the person is allocated a grade which best describes his performance.

(c) Forced Choice Method:

In this method, the rating elements are sets of four phrases pertaining to the proficiency or personal qualification of the employees.

Such as:

(1) He is hardworking.

(2) He gives very clear instructions to his subordinates.

(3) He is not loyal to the institution.

(4) He is indifferent.

The rater indicates which of these four is most characteristics of the rate, and which is least characteristic; and repeats this selection for each of the sets included.

(ii) Appraisal by Results:

Performance in itself is the most reliable indicator of the potential and quality of an employee. In this approach, the manager observes the performance of the subordinate against specific predetermined goals. Conclusions are based on observation and evidence of performance rather than the superior’s opinions of the subordinates.