Executive Development

Asst. Prof. Parasmani Jangid
SDJ International College

 The term ‘development’ implies multi-dimensional
process for overall development in a person.
 Executive development or manager development is a
systematic process of learning and growth by which
managerial personnel gain and apply knowledge,
skills, attitudes and insights to manage the work in
their organization effectively and efficiently.
 Executive development helps to understand cause and
effect relationship, synthesizes from experience,
visualizes relationships or thinks logically.
 Executive development harnesses untapped
potential.

 Michael J. Jucius has said, “Executive
Development is the programme by which
executive capacities to achieve desired
objectives are increased.”
 Flippo has viewed that
“executive/management development
includes the process by which managers and
executives acquire not only skills and
competency in their present jobs but also
capabilities for future managerial tasks of
increasing difficulty and scope”.

Inaugurating the Tata Management
Training Centre at Pune in 1965, Mr. J.R.D
Tata extolled the importance of
management training in these words.

 To develop leadership qualities
 To meet shortage of trained managers
 Development of companies
 To cope up with rapid technological
changes
 To fulfill social responsibility
 To develop managerial knowledge

 Improve the performance of managers at all levels.
 Identify the persons in the organization with the required
potential and prepare them for higher positions in future.
 Ensure availability of required number of executives /
managers succession who can take over in case of
contingencies as and when these arise in future.
 Prevent obsolescence of executives by exposing them to the
latest concepts and techniques in their respective areas of
specialization.
 Replace elderly executives who have risen from the ranks by
highly competent and academically qualified professionals.
 Improve the thought processes and analytical abilities.
 Provide opportunities to executives to fulfill their career
aspirations.
 Understand the problems of human relations and improve
human relation skills.

 The various techniques of executive development may be classified
into two broad categories: -
1. On the job techniques: - On-the-job methods are most popular for
developing executive talent. Here, both the trainee executive and
trainer are not free from their daily chores and the pressure of their
executive routine jobs. Some of the most commonly techniques of
executive development which fall under the category of on-the-job
techniques are as follows:
 It consists of: -
o Coaching
o Under study
o Position/Job rotation
o Special Project and Committee Assignment
o Selected readings/ reading literatures

 On-the-job coaching by a superior is an important and
potentially effective approach if superior is properly
trained and oriented. The technique involves direct
personnel instruction and guidance, usually, with
extensive demonstration and continuous critical
evaluation and correction. The advantage is increased
motivation for the trainee and the minimization of the
problem of learning transfer from theory to practice.
 This technique is more appropriate for orientation of
new employee and for helping disadvantaged
employees to learn specific jobs. The supervisor must
have interpersonal competence and be able to
establish helping relationship with the trainee.

 Also known as attachment method, under this system, a
person is picked up and subjected to training so that he in
future, assumes the full duties and responsibilities of the
position currently held by is superior.
 It is necessary to ensure a fully-trained person to replace a
manager (superior) during his long absence or illness or on his
retirement, transfer or promotion. ‘Understudy’ method is
aimed at providing a person who is going to replace the
existing superior.
 The understudy method makes the trainee an assistant to the
current job holder. The trainee learns by experience,
observation and imitation. If decisions are discussed with the
under study, he can be informed the policies and theories
involved.

 ‘Job rotation’ is also known as the Channel
Method. Under the job rotation method, the
specialists are translated into generalises or all-
rounder’s because the executives are moved from
one job to another on some planned basis in order
to learn and develop all-round knowledge.
 As pointed out by H. Bedroslan, “Job rotation is
designed for beginning level managers while
planned progression is more likely to occur at
higher managerial levels.”
 This method helps in injecting new ideas into
different departments of the organization.

 Under this method, a trainee executive is
assigned a special project involving heavy
responsibility. The trainee is supposed to
study the project, understand the problem
issues, and prescribe appropriate solutions,
and make a recommendation on the viability
of the project. Trainees not only acquire
knowledge about the assigned activities, but
also learn how to work with others.

This is similar to the special project
method. Here the trainee executives
become members of special committees
designed to solve specific problems.
Through committee assignments solve
different problems; they may now be
effective in bringing rapid executive
development.

 Some organizations maintain huge libraries involving a
large collection of useful material on the subjects of
interest to the enterprise. The executives go through
the books, journals, articles, notes, and magazines and
assimilate knowledge. The executives, during their
leisure hours, try to exchange their views with others
and in this process learn new ways to looking at things.
 For Example, Many organizations purchase some high
level journals like the Commerce, the Capitalist, the
Management in Govt., etc. And dailies like the
Economic Times, the Financial Express, etc.

Learning from experience
Need Expert in company
Very slow result
Not generally used by large companies

 On-the-job methods of executive development just discussed above
may not be adequate because of the complexities of management
process and inadequate facilities, environment and teaching
experience, calling for more sophisticated and comprehensive
methods of development.
 Off-the-job training methods aim at placing the executives in a highly
maneuvered and stimulated atmosphere so that they are exposed to
new ideas, new ways of analysis and are in a position to introspect
themselves by studying their own behaviour.
 It consists of : -
o Lectures/Special classes
o Simulation-Case studies, Role Playing, Business
games, In Basket Technique
o Structured Insight
o Conference and special meetings
o Multiple Management
o Sensitivity training

 Special courses and lectures can be established by business organisations
in numerous ways as a part of their development programmes. First, there
are courses which the organisations themselves establish to be taught by
members of the organisation. Some organizations have regular instructors
assigned to their training and development departments such as Tata and
Hindustan Lever in private sector, Life Insurance Corporation, State Bank of
India and other nationalised commercial banks, Reserve Bank, Hindustan
Steel, Fertilizer Corporation and many others in public sector.
 A second approach to special courses and lectures is for organisations to
work with universities or institutes in establishing a course or series of
courses to be taught by instructors of these institutes.
 A third approach is for the organisations to send personnel to programmes
established by the universities, institutes and other bodies, Such courses are
organised for a short period ranging from 2-3 days to a few weeks.
 such courses are organised frequently by the Institute of Management,
Administrative Staff College of India, National Productivity Council, NITIE, All
India Management Association and some other organisations

 Simulation is a special training technique conducted in a
duplicate environment which is a mock up of a real life
environment. Under the simulation method a single hour may
be equated for a month, or a quarter of a month in real life.
Like this, several events may be experienced in a relatively
short span of time.
 Simulation is a useful technique of executive development
because the decisions taken are reversible (if wrong decisions
are taken) and less costly o the enterprise. One long-standing
deficiency of the simulation technique is that it is difficult to
duplicate the reality (specially the presses and problems) of
actual decision-making on jobs. Quite truly, individuals might
act differently in real life situations than the, actions in
simulation exercises.

 This technique, which has been developed and popularised by
the Harvard Business School, U.S.A. is one of the most
common form of training. The case study method involves
diagnostic and problem solving study of usually a written
description of some event or set of circumstances on
organisational problems providing relevant details.
 The method is appropriate for developing analytical and
problem solving orientation and skill, providing practice in
applying management concepts, tools and techniques and
enhancing awareness of the management concepts and
processes. The method is relevant for developing o-
generational, conceptual and functional skills among top and
senior level executives.
 Cases may be used in either of the two ways:- (i) They can be
used after exposing the formal theory under which the trainee
applies their skill to specific situation, or (ii) They may be
assigned to the trainees for written analysis or oral discussion
without any prior discussion of the theory.

 Role playing is used in helping trainees to diagnose human
relations problems, to develop insight through in-depth
analysis of problems relating to human interaction and to
acquire skills in interpersonal communication with particular
emphasis on empathy and listening.
 Under this method, two or more trainees are assigned
different roles to play by creating an artificial conflict situation.
No dialogue is given before hand. The role players are
provided with the written or oral description of the situation
and the role to play. Sufficient time is given to the role players
to plan their actions and they must act their parts before the
class. E.g. For instance role playing situation may be a
supervisor discussing grievances with his subordinate.

 In-Basket on In-Tray technique involves simulation
of a series of decisions a trainee might have to
make in real life. The trainee is presented with
pack of papers and files in a tray containing
administrative problems and is asked to take
decisions within specified time limit.
 The decisions taken by several trainees are
recorded and compared with one another.
Learning occurs as trainees reflect and evaluate
the decisions taken on priorities, customer’s
complaint, superior’s demand, irrelevant
information and the like.

 Also termed as ‘management games’, these games refer to the classroom
simulation exercises in which different teams consisting of individual
executives are required to compete with one another in order to achieve a
given objective. Here, an artificial atmosphere close to the real life situation is
created in which the participant executives play a dynamic role and enrich
their skills through involvement and simulated experience.
 The teams usually consist of two to six members and each team takes
decisions on production, prices, research expenditure, advertisement
expenditure, marketing, and the amount of expected profits under
hypothetical conditions.
 Management games are aimed at teaching the executives how to take useful
and profitable managerial decisions and make the executives aware of the
existence of various group processes, conflicts, leadership problems, and
ways of maintaining ties of friendship with peers in other departments or
functional areas.
 Gaming involves several teams, each of which is given a firm to operate for a
number of periods. Usually the period is a short one, one year or so. In each
period, each team makes decisions on various matters such as fixation of
price, level of production, inventory level, and so forth'. Since each team is
competing with others, each firm's decisions will affect the results of all
others. All the firm's decisions are fed into a computer which is programmed
to behave somewhat like a real market. The computer provides the results,
and the winner is the team which has accumulated largest profit. In the light
of such results, strengths and weaknesses of decisions are analysed.

Under this method information about
expectations of the managers from their
superiors and their own behaviour with the
subordinates is collected, inconsistency is
found out and they are trained to remove
this inconsistency
This method is useful for changing the
attitude and behaviour of managers
towards their subordinates

 Originally developed by a behavioural scientist Kurt Lewin and popularised by the National
Training Laboratories, U.S.A., sensitivity training (also known as T-group training) is a “group
experience designed to provide maximum possible opportunity for the individuals to expose their
behaviour, give and receive feedback, experiment with new behaviour and develop awareness of
self and of others,” (Chris Argyris).
 The fundamental objectives of sensitivity training are:
 (i) To help the executives in improving their understanding of human behaviour and their ability to
read others and predict actions of fellow- colleagues.
 (ii) To increase the participant’s awareness of the impressions created by him on others.
 (iii) To highlight the insensitivity of other executives for the actions and feelings (opinions) of him.
 (iv) To increase personal satisfaction from relationship with other executives.
 (v) To achieve greater behavioural effectiveness in transactions with one’s various environments.
 (vi) To develop concepts and theoretical insights that will serve as tools in linking personal
values, goals and intentions to actions that area consistent with these inner factors and with the
requirements of the situation under question.
 A T-group is a small group consisting of ten to fifteen executives who meet with no formal agenda
and discuss on important problems. This is a leaderless group and the essence of T-group
training is a self- examination and introspection of the behaviour of oneself and also there. This is
a kind of behavioural training that is aimed at bringing about organisational development. . The
trainer, usually a psychologist, neither leads the discussion nor suggests what should be
discussed but only guides the discussion.

 Under this system, a permanent advisory board or
committee of executives study the problems of
organisation and make recommendations to the higher
management for final decision. There is another
device, constituting a junior board of directors in a
company for training the executives. The board is
given power to discuss any problem which the senior
board of directors (constituted by shareholders) could
discuss. The utility of junior board is only to train the
junior executives. Thus junior board discusses wide
variety of subjects which a senior board can discuss or
in other way, it is an advisory body.

 The conference method is used to help employees develop
problem- solving skills. Group discussions and Meetings are
the two common techniques often made use of in
organizations. The chairman or the trainer leads discussion,
involves trainees in attempting to solve problems and in
arriving at decisions.
 The conference leader must have the necessary skill to lead
the discussion in a meaningful way without losing sight of the
topic or theme. The conference method or group discussion
effects changes in the participants through modification of
their experiences due to sharing and reshaping of their views,
thinking and attitudes.
 Conferences may of three types:- (i) The directed or guided
conference, (ii) Consultative conference, and (ii) Problem
solving conference. However guided conference is generally
used for training purposes.

 1. Incident method: This method combines intellectual ability practical judgment, and
social awareness of the executives. The group members are required to address certain
questions to the discussion. The procedure is to ask general questions like what, when,
where and how of the situation in which an incident developed and who was present at that
time. Finally, the executives react why of the behaviour.

 2. Apprenticeship: used in training for the professions, including medicine, law, dentistry,
and teaching. Today's industrial organisations require large number of skilled craftsmen
who can be trained by this system. Such training is either provided by the organisations or it
is also imparted by governmental agencies.

3. Vestibule Schools: As far as possible, shop conditions are duplicated, but instructive,
not output, are major objective, with special instructors provided. Vestibule schools are
widely used in training for clerical and office jobs as well as for factory production jobs.
 4. Programmed Instruction: It includes teaching machines, auto instruction, automatic
instruction and programmed learning. It is an application of science of learning to the task of
training and education. The core feature of programmed instruction is the participation by
the trainee and immediate fed back by him. Programmed instruction machines include films,
tapes, programmed books, illustrations, printed material, diagrams, etc.

Sr. Point of
Difference
Training Development
1 Meaning Theoretical and practical
knowledge in particular
field
Developing all aspects of
personality
2 To whom Operative employees
(technicality)
Managerial Personnel
(mental abilities)
3 Who Imparts By supervisors By supervisors, outside
experts and self
4 Time Period Short term Long term
5 At the center Job is at the center Future career is at the
center
6 Costs Less expensive More expensive
7 Methods On-the Job Methods Off-the –Job Methods
8 Scope limited wide
9 Theory/practical Emphasis on Practical &
Technical aspect
Emphasis on Conceptual
& Theoretical
10 Why For skill development &
technical knowledge
Overall includes mental
abilities & inherent
qualities.

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