Management and

Organizational Development

Chapter 9

Learning Objectives

After studying this chapter, you should be able to:

1. Define management development.

2. Describe a management inventory.

3. Describe a management succession plan.

4. Define the in-basket technique.

5. Describe a business simulation

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Learning Objectives (cont.)

6. Describe adventure learning.

7. Define an assessment center.

8. Describe organizational development (OD).

9. Outline the four phases in organizational development.

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Management Development Process

Management development

└ Process concerned with developing the experience, attitudes, and skills necessary to become or remain an effective manager.

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The Management Development Process

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Figure 9.1

Determining the Net Management Requirements

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Organizational Objectives

Management Inventory and Succession Plan

Changes in the Management Team

Determining the Net Management Requirements

Management inventory

└ Specialized, expanded form of skills inventory for an organization’s current management team

└ in addition to basic types of information, it usually includes a brief assessment of past performance and potential for advancement

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Management Inventory

Can be used to fill vacancies that occur unexpectedly

Planning development needs of individual managers

Pinpointing development activities for the total organization

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Determining the Net Management Requirements

Management succession plan

└ Chart or schedule that shows potential successors for each management position within the organization.

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Needs Assessment

Needs assessment

└A systematic analysis of the specific management development activities required by the organization to achieve its objectives

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Determining Management Development Needs

Training needs survey

└ Focuses on knowledge and skills required in performing the job

Competency studies

└ Examine the competencies required in performing the managerial job

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Determining Management Development Needs

Task analysis

└Concerned with what tasks are required in performing managerial job

Performance analysis

└Deals with job performance requirements in performing managerial job

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Establishing Management Development Objectives

Management development objectives can be categorized as:

Instructional

Organizational and departmental

Individual performance and growth

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Establishing Management Development Objectives

Instructional objectives

└ Targets relating to number of trainees to be taught

└ Hours of training

└ Cost per trainee

└ Time required for trainees to reach a standard level of knowledge

└ Objectives needed for principles, facts, and concepts to be learned

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Establishing Management Development Objectives

Organizational and departmental

└ Concern the impact programs will have on organizational and departmental outcomes

└ absenteeism, turnover, safety, and number of grievances

Individual performance and growth

└ impact on behavioral and attitudinal outcomes of individual

└ involve the impact on personal growth of individuals participating

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Selected Methods Used in Management Development

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Table 9.3

Methods Used in Management Development

Understudy assignments

└ Method of on-the-job training in which one individual, designated as the heir to a job, learns the job from the present jobholder

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Understudy Assignments

Advantages

└Heir realizes purpose of the training

└Can learn in a practical and realistic situation without being directly responsible for operating results

Disadvantages

└Understudy learns the bad as well as the good practices of incumbent

└Understudy assignments maintained over a long period can become expensive

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Methods Used in Management Development

Coaching

└ Method of management development conducted on the job that involves experienced managers advising and guiding trainees in solving managerial problems.

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Coaching

Advantage

└ Trainees get practical experience and see results of their decisions

Disadvantage

└Danger of the coach neglecting training responsibilities or pass on inappropriate management practices

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Experience

Experience

└ Individuals are promoted into management jobs and allowed to learn on their own from daily experiences

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Experience

Advantage

└ Individual, in performing a specific job, may recognize need for management development and look for a means of satisfying it

Disadvantage

└ Employees allowed to learn management only through experience can create serious problems by making mistakes

└ Frustrating to attempt to manage without necessary background and knowledge

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Job Rotation

Job rotation

└ Designed to give an individual broad experience through exposure to many different areas of organization

└ Trainee goes from one job to another within the organization, generally remaining in each from six months to a year

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Job Rotation

Advantage

└ Trainees can see how management principles can be applied in a cross section of environments

└ Training is practical and allows the trainee to become familiar with entire operation of company

Disadvantage

└ Trainee is frequently given menial assignments in each job

└ Tendency to leave trainee in each job longer than necessary

└ Can produce negative attitudes

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Special Projects and Committee Assignments

Special projects require trainee to learn about a particular subject

└ Critical that they provide a developing and learning experience for trainee and not just busywork

Committee assignments

└ Individual works with committee on its regularly assigned duties and responsibilities

└ Person develops skills in working with others and learns through the activities of the committee

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Classroom Training

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Lectures

Case studies

Role playing

Lectures

Strengths

└ Communicates intrinsic interest of subject matter

└ Can cover material not otherwise available

└ Can reach many learners at one time

└ Lecturers can serve as effective models for their audience

└ More control for the instructor

└ Lectures pose a minimal threat to the learner

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Lectures

Weaknesses

└ Lectures often do not allow for feedback from the audience

└ Listeners are often passive

└ Length of lecture periods often does not match listener’s interest spans

└ Lectures are partially dependent on the public speaking skills and abilities of the lecturer

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Case Study

Case study

└ Method of classroom training in which the trainee analyzes real or hypothetical situations and suggests not only what to do but also how to do it.

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Case Study

Advantages

└ Emphasize analysis of a situation that is typical of manager’s world

└ Improves learner’s verbal and written communications skills

└ Expose learners to a wide range of true-to-life management problems

└ Inspire interest in otherwise theoretical and abstract training material

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Case Study

Weaknesses

└ Often focus on past and static considerations

└ Case analysis often lacks emotional involvement on the part of the student

└ Case analysis can sometimes confuse students who are used to definite solutions

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Case Study

Incident method

└ Form of case study in which learners are initially given the general outline of a situation and receive additional information from the instructor only as they request it.

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In-basket Technique

In-basket technique

└ Method of training in which the participant is required to simulate the handling of a specific manager’s mail and telephone calls and to react accordingly.

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Web-based Training

Web-based training

└ Method of training in which material is presented on computer video screens via either the Internet or company intranet

└ participants are required to answer questions correctly before being allowed to proceed.

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Business Simulation

Business simulation

└ Method of training that simulates an organization and its environment and requires a team of players to make operating decisions based on the situation.

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Adventure Learning

Adventure learning

└ Programs that use many kinds of challenging outdoor activities to help participants achieve their goals

└ Also called experiential learning

└ Group-focused, personal growth

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University and Professional Association Seminars

Colleges and universities offer both credit and noncredit courses intended to help meet management development needs of various organizations

Offerings range from courses in principles of supervision to advanced executive management programs

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Evaluation Matrix

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Evaluation Of Management Development Activities

Alternative I – Are trainees happy with the course?

Alternative II – Does the training course teach the concepts?

Alternative III – Are the concepts used on the job?

Alternative IV – Does application of the concepts positively affect the organization?

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Assessment Centers

Assessment center

└ Formal method used in training and/or selection and aimed at evaluating an individual’s potential as a manager by exposing the individual to simulated problems that would be faced in a real-life managerial situation

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Assessment Centers

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In-basket exercises

Business simulations

Group discussions

Cases

Interviews

Paper-and-pencil tests

Organizational Development

Organizational development (OD)

└ Organization wide, planned effort managed from the top, with the goal of increasing organizational performance through planned interventions and training experiences.

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Phases of Organizational Development

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Diagnosis

Strategy planning

Education

Evaluation

Phases of Organizational Development

Diagnosis

└ Involves gathering and analyzing information about organization to determine areas in need of improvement

Strategy planning

└ Involves developing a plan for organizational improvement based on data obtained

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Phases of Organizational Development

Intervention/education

└ Involves sharing diagnostic information with people affected by it and helping them realize need for change

Evaluation phase

└ Data are gathered to determine the effects of the OD effort on the total organization

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Diagnosis

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Available records

Survey questionnaires

Personal interviews

Direct observation

Strategy Planning

Data collected in diagnosis stage must be carefully interpreted to determine the best plan for organizational improvement

If similar diagnosis has been done before, data comparison can reveal obvious differences, if any

The key to interpreting data is to look for trends and areas of general agreement

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Education

Direct feedback

└ Process in which the change agent communicates the information gathered through diagnosis directly to the affected people

Sensitivity training

└ Method used in OD to make one more aware of oneself and one’s impact on others.

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Education

Team building

└ Process by which a work group develops awareness of conditions that keep it from functioning effectively and takes action to eliminate these conditions.

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Evaluation

Probably the most difficult phase in the OD process

Basic question to be answered is – Did the OD process produce the desired results?

Evaluation effort should be methodologically sound

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