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Transcript of role of MDP on Ludhiana Industry
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A Project Report
On
Role of MDP in development of organizationsA study on the industries in
Ludhiana.
Submitted to Punjab College of Technical Education, Baddowal, Ludhiana
As a part of assessment of MBA- Major Research Project Session: 2010-2012
Submitted to: Submitted By:
Navtej Singh Sahil Arora
Acknowledgement
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I am fortunate enough to study in Punjab College of Technical Education, Baddowal in the
guidance of the Management Faculty.
I am very thankful to Prof. Navtej Singhfor giving me such an important live project, which
can be made use of in the practice. This project work would never have been an achievable task,
had I not been under the great shelter of guidance of respectedProf. Navtej Singhwho helped
me till the very last minute (at the oddest of hours) of the final dictate and supported me
summing up the work without whom this work would not have reached this place.I wish to
express my deep sense of gratitude to such a cheerful, energetic and enthusiastic person.
Mentioning needs to be made of various industries in Ludhiana, where I have carried out
necessary field study for the project work. They were very supportive while replying to my
questionnaire.
An ample use of various reference readings has been very frequently made while compiling data
for this project. I am very much grateful to the library staff of the college for their unfailing co-
operation.
At last but not the least, I express my sincere sense of gratitude to my Parentsfor their blessings,
that is always a source of Inspiration for me, and the Almightywithout whom there wont be any
existence of mine.
SAHIL ARORA.
(MBA 2013-15)
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Preface
The generation of such dynamic leadership is the crucial concern of organizations, which occupythe commanding heights in the Indian economy. This requires very efficient and effective
management of the process of growing executive leadership in the organizations and how well
this is accomplished today will determine the future of the organizations in the economy.
Executive development programs can be organized in various situations i.e. on-the-job or off-
the-job in the company or outside the company. It involves the use of many techniques e.g.
decision-making skills, interpersonal skills, job knowledge, organizational knowledge, general
knowledge by special courses, meetings, conferences, group discussion, seminars, get together
etc. These techniques of executive development program are deployed by executive trainers,
specialists, external trainers and educationists.
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Certificate
This is to certify that the research project report entitled, Role of MDP in development of
organizationsA study on the industries in Ludhiana. Submittedin partial fulfillment of the
requirement for the degree of Master of Business Administration at Ludhiana, of the Punjab
Technical University, Jallandhar is a research work carried out by SAHIL ARORA under my
supervision and that no part of this research project has been submitted for any other degree.
The assistance and help received during the course of this investigation has been fully
acknowledged.
MR NAVTEJ SINGH
(Faculty Advisor)
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Contents
Chapter No Contents Page No.
1. Introduction 1-14
2. Review Of Literature 15-18
3. Research Methodology 19-21
4. Data Analysis & Interpretation 22-34
5. Results & Findings 35-37
Bibliography 38
Annexure 39-41
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List of Tables
Table No. Heading Page No.
4.1 Organizations conducting MDP in Ludhiana 23
4.2 Type of MDPs conducted in the organizations 24
4.3 Reasons for conducting MDP in organizations 25
4.4 Type of Programs which are conducted in Executive Development 26
4.5 Impact of MDPs on performance of employees 27
4.6 No of times training programs for senior executives take place every year 29
4.7 Duration of training programs for senior executives 30
4.8 Any change in trend of executive education pattern in your organization 31
4.9 Kind of changes which have taken place due to MDP programs 32
4.10 Benefit for organizations with the launch of MDP program. 33
4.11 Kind of benefit with MDP 34
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List of Figures
Figure No. Heading Page No.
4.1 Organizations conducting MDP in Ludhiana 23
4.2 Type of MDPs conducted in the organizations 24
4.3 Reasons for conducting MDP in organizations 25
4.4 Type of Programs which are conducted in Executive Development 26
4.5 Impact of MDPs on performance of employees 27
4.6 No of times training programs for senior executives take place every year 29
4.7 Duration of training programs for senior executives 30
4.8 Any change in trend of executive education pattern in your organization 31
4.9 Kind of changes which have taken place due to MDP programs 32
4.10 Benefit for organizations with the launch of MDP program. 33
4.11 Kind of benefit with MDP 34
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EXECUTIVE SUMMARY
The generation of such dynamic leadership is the crucial concern of organizations, which occupy
the commanding heights in the Indian economy. This requires very efficient and effective
management of the process of growing executive leadership in the organizations and how well
this is accomplished today will determine the future of the organizations in the economy.
Executive development programs can be organized in various situations i.e. on-the-job or off-
the-job in the company or out side the company. It involves the use of many techniques e.g.
decision-making skills, interpersonal skills, job knowledge, organizational knowledge, general
knowledge by special courses, meetings, conferences, group discussion, seminars, get together
etc. These techniques of executive development program are deployed by executive trainers,
specialists, external trainers and educationists.
The First chapterIntroduce about the subject under study, it clears some of relevant concepts
about managers and executives and there Development with putting some light on Executive
Development.
The Second chapteris devoted to examinethe concept and importance of the Management development
for Senior Executives.
The Third Chapterreviews the basic requisites of MDPs for senior executives and essential Ingredients.
The fourth Chaptergives brief introduction about the organization under study i.e. BHEL, New Delhi.
The fifth Chapterprovides information about data collected from Field study
In the sixth chapter a detailed analysis and interpretation of the data available by the survey through
questionnaire and personal observation is provided in the modified and simplified way to fulfill the
Objectives of Research work.
The seventh chapterconcludes the Research Project and last chapter provides Recommendations.
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STATEMENT OF OBJECTIVES
To study different categories of management development programs for executives.
To study the role of management development programs in job affectivity.
To analyze the benefits and outcome of MDPs for organization.
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RESEARCH METHODOLOGY
The research will be based on non-doctrinal method under which a field study will be carried out
to collect the primary data through questionnaires and interview of Managers of Ludhiana
Industry .Use of secondary data in form of various facts and figures with respect to the
framework of MDP,s for Executives be resorted to whenever necessary.
The nature of the data that has been used in the project under study is both primary and
secondary in nature.
Primary data
Questionnaire, personal meetings, interview method with the concerned persons will be used to
collect the primary data.
Secondary data
Offer documents, fact sheets, news papers, magazines published from time to time and Internet,
Company sources.
Research Design
A descriptive research design will be used in this project.
Sampling Plan
Convenient Sampling plan will be used in this project.
Universe
All the executives/ managers in Ludhiana industry.
Sample size
Sample size is 20-30 for this project
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organizations may have different levels of managers, including top managers, middle managers
and first-line managers.
Top (or executive) managers are responsible for overseeing the whole organization and
typically engage in more strategic and conceptual matters, with less attention to day-to-day
detail. Top managers have middle managers working for them and who are in charge of a major
function or departmentiii
. Middle managers
may have first-line managers working for
them and who are responsible to manage
the day-to-day activities of a group of
workers.
Note that you can also have different types
of managers across the same levels in the
organization. A project manager is in
charge of developing a certain project, e.g.,
development of a new building.iv
A functional manager is in charge of a major function, such as
a department in the organization, e.g., marketing, sales, engineering, finance, etc. (For example,
see Program Planning) A product manager is in charge of a product or service. Similarly, a
product line manager is in charge of a group of closely related products. General Managers are in
charge of numerous functions within an organization or department.
Executives as a term generally applies to those people or specific positions in top levels of
management, e.g., chief executive officers, chief operating officers, chief
financial officers, vice presidents, general managers of large organizations,
etcv
. In large organizations, executives often have different forms of
compensation or pay, e.g., they receive portions of the company's stock,
receive executive-level "perks, etc. Chief executives usually pay strongattention to strategic plans and organizational performance, whether measured
financially or from impact of services to a community. Many people think of the Chief Executive
Officer as heading up large, for-profit corporations. This is not entirely true. The majority of
businesses in the United States are small businesses, whether for-profit or nonprofit. Their top
executives could be called Chief Executive Officers.
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Management Developmentrefers to the activities involved in enhancing leaders', managers' and
supervisor's abilities to plan, organize, lead and control the organization and
its members. Consequently, many view the term "management
development" to include executive development (developing executives),
leadership development (developing leaders), managerial development
(developing managers) and supervisorial development (developing
supervisors).vi
Management Development is best described as the process
from which managers learn and improve their skills not only to benefit
themselves but also their employing organizations.
Executive Educationis the term used for programs at graduate-level business schools that aim
to give classes for Chief Executives and other top managers or entrepreneurs. These programs do
not usually end in a degree, although there is an ever-growing number of an Executive MBA
program that are very similar and offer a Masters of Business Administration upon completion of
the coursework.
Executive Development
(Today's organizations are changing dramatically. Successful change requires strong leadership
from top positions in the organizations. Therefore, writers often interchange use of the phrases
"leadership development" with "executive development". They are not the same. As noted above,
this is handy, but it can cause substantial confusion.)
Executive development refers to the activities involved in enhancing one's ability to carry out
top-level roles in the organization. Some key skills for executives to have included understanding
the external environment of the organization, leadership, strategic planning, financial forecasting
and analysis, organizing, program planning and human resource management.
vii
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Management Development Program for senior executivesis the whole of activities aimed at
developing the skills and competencies of those that (will) have executive positions in
organizations. While "executive" and "manager" and "leader" is often used interchangeably,
"executive" is commonly used to signify the top 5% to 10% of the organization. Similarly,
"development" and "training" and "education" are often used as synonyms, however
"development" is generally seen as the most encompassing of the three in terms of activities that
build skills and competencies.viii
While it is typical to find
organizations that have
dedicated corporate training &
development people and
processes, it is not always the
case that an organization will
have a dedicated executive
development set of activities.
In some organizations (typically large multi-nationals), there is a separate executive development
team, in other organizations executive development is handled as one of many activities by the
larger corporate training group, and in yet other scenarios there is no executive development
activity to speak of.
In contrast to other corporate training & development activities, which have as their core purpose
to build tactical skills for employees, executive development plays a different role for the
organization. Indeed some executive development is conducted for the purpose of building
tactical skills (sometimes referred to as "hard skills" such as business fundamentals- finance,
marketing, operations and also "soft skills" such as communication and team building), yet
executive development is also used to evaluate future potential future executives as well as amechanism for the CEO and the executive team to cascade their strategies, goals, and even
elements of the culture to the rest of the management team and ultimately the organization. In the
best of cases, executive development not only helps an organization execute its key strategies, it
can also help provide input to the strategy creation process.ix
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In this way, executive development is much more strategic than typical corporate training &
development which is used for most employees of an organization.
While executive development continues to become enriched by many approaches, one approach,
adult development and its subfield Positive Adult Development is beginning to create
opportunities for what has been essentially reserved for academic research to become an
increasing part of executive practices.
UNIT-II
MANAGEMENT DEVELOPMENT PROGRAMES FOR SR.
EXECUTIVES: AN OVERVIEW
Raining and development are Intentional efforts to improve current and future performance by
helping the employees acquiring Skill, Knowledge, and Attitude required to give competitive
Advantage. Management development is also part of Training and Development
Training is the formal and systematic modification of behavior through learning which occurs as
a result of education, instruction, development and planned experience, while Development is
any learning activity, which is directed towards future, needs rather than present needs, and
which is concerned more with career growth than immediate performance.x
What is Management Development?
Management development is a systematic process of growth and development by which the
managers develop their abilities to manage .So it is the
result of not only participation in formal courses of
instruction but also of actual job experience .It is
concerned with improving the performance of the
managers by giving them opportunities for growth and
development.xi
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Global economy is also experiencing increasing clustering of some industries in the nations that
have achieved disproportionate worldwide success. This has consequently resulted in swift
changes in the business environment and the modern business world demands quality, ethics and
excellence, properly injected into the organization at the level of person, process, product and
services. To cope with these changes, core competency is identified and leverage for success and
all this is made possible through competitive, skilled and professional executives. This kind of
changing management requires training and development i.e. executive development. Technical
skills are less important whereas the conceptual skills are especially important at the top levelxii
.
Executive development should not be viewed just as a capital investment and asset building for
the future but also as a tool of employee motivation and retention. It helps contribute in job
satisfaction and creates new roles and functions for existing employees of the organizationxiii
.
Therefore, the basic purpose of executive development program is to promote managerial
performance by imparting knowledge, changing behavior and enhancing professional and
attitudinal skills. Hence the knowledge is the need of the 21st century due to changing business
environment not only in India but also globally.
It is a systematic process of growth and development by which managers develop their abilities
to manage.
Executive development may be referred as systematic process of growth and development by
which the managers develop their abilities and managerial skills to manage. It is the result of not
only participation in formal courses of instruction but also of actual job experience.xiv
Evaluation
of executive development programs literally means the assessment of value and work. Therefore,
evaluation of executive development program may be defined as an attempt to obtain feedback
on the effects of development program, which helps to improve future development programs on
the basis of current experience. The important tools of evaluation of executive development
programs are observation, rating, trainee survey and trainee interviews, job satisfaction, morale,
promotions, results of behavioral changes such as increased sales, increased productivity and
efficiency.
There is a need to develop professionalism among the executives in order to face the global
competitive environment. Hence, every organization has to ask what are the competencies that
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contribute for the effectiveness of executives; their competencies used to be sharpened and this
needs appropriate training. Effectiveness itself helps in the achievement of organizational goals
Management Development Programs for senior Executives are referred as Executive
Development.
The term Executive Development is used essentially as an indication of a complex process of
raising managerial ability in order to improve the effectiveness of management actions.
Executive Development is the planned experience, guided growth and training opportunities
provides for those who perform the management functions.xv
This includes all members of
management from the president through all supervisory levels and staff personnel.
By executive development programs, an executive gets unprecedented growth and has come to
acquire an added relevance and a more central role in business operations and enterprise
management. These programmes prepare the candidate for Senior Executive Services.
Development programs offer a window of opportunity and provides a platform for young
executive development professionals to present innovative and new ideas that could further
stretch the envelope for executive development, besides also helping to devise effective
strategies for cracking perennial evaluation issues of the development programs like retention
and compensation patterns, improvement in taking the managerial decisions and skills, value
creation in employee-employers relationships and bridging the generation and gender gap.
Some of the players in the field of executive Education are: Business schools, Nonprofit
organizations, Corporate universities, Foundations Trade associations, Consulting firms,
Freelance educators, Online learning companies.
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UNIT-III
BASIC REQUISITS & INGRADIENTS OF
MDPSFOR SENIOR EXECUTIVES
The concept of executive development program is not new to the
world. It has flourished in the US and produced magnificent
outcomes. However, in our country, development program of
executives is still in its formative stages. The Indian mindset needs
to change to adapt to this practice. A limited number of
organizations have made use of this development programs. It needs to be understood that
development program is not always a remedial measure but more of a developmental technique.
Executive development is to socialize the vision, values and mission of an organization.
SENIOR executives play a vital and significant role in the upper echelons of management. The
efficacy of their performance will determine the success or failure of an organization. As an
executive moves vertically in an organization, a metamorphosis takes place at some point of time
in the scope and scale of his job. When it happens, it is a paradigm shift and a jump.xvi
There are some basic competencies which are very essential in Development aspect of senior
Executives and to outperform competitors. These 7 workplace competencies are:
1. Learning to learn;
2. Communication and collaboration;
3. Creative thinking and problem-solving;
4. Technological literacy;
5. Global business literacy;
6. Leadership development;
7. Career self-management.
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For Executive development programs basically following methodologies are applied:
Lesson by both in-house and guest faculty.
Panel discussion to promote appreciation divergence of opinions and views.
Case study.
Films.
Group discussion.
Simulation exercise.
Seminars.
Moot Court and Mock Trial.
Order and judgments writing practice.
Practical demonstration.
Problem solving exercises.
Report Writing (Term Paper, Syndicate Paper)
Group Work.
The important steps or ingredients of a management development programs are:
1. Analysis of Organizational Present and Development Needs
2. Appraisal of Present Management Talent
3. Inventory of Management Manpower
4. Planning of Individual Development Programs
5. Establishment of development Programs
6. Evaluation of the programs
Analysis of Organizational Present and development Needs:
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The decision to launch a management development programs having been made, the next
thing to do is the close and critical examination of organizational present and future
developmental needs. We should know how many and what type of managers are required to
meet the present and future needs. An examination of the organizational structure in the light
of the future plans of the organization should help one know what the organization requires
in terms of functions, departments and executive positions.
Having got the above the information it is easy to prepare the descriptions and specifications
for all management positions which in turn, gives us the information as to the kind of
education, experience, training, special knowledge, skills and personal traits required for
each job..
Appraisal of Present Management Talent:
In order to make the above suggested comparison, a qualitative assessment of the existing
management talent should be made and an estimate of their potential for development should
be added to that. Only then can it be compared with the projected required talent.
Inventory of Management Manpower:
This is prepared to have complete information about each executive in each position. For
each member of the management team, a card is prepared listing such data as name, age,
length of service, education, work experience, training courses completed, health record,
psychological test results and performance appraisal data etc. The selection of the individuals
for the management development programs is made on the basis of the kind of background
they possess. The management may set certain standards in terms of each of the above
factors mentioned on the cards to qualify for the management development programs.
Such information when analyzed discloses the strengths as well as the deficiencies of
managers in certain functions relative to the future needs of the organization.
Planning of Individual development Program:
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Guided by the results of the performance appraisal which indicate the strengths and
weaknesses of each of his subordinates the executive performs this activity of planning of
individual development programs. Each of us has unique set of physical, intellectual,
emotional characteristics. Therefore, a development plan should be tailor-made for each
individual.
It would be possible to impart knowledge, skills and mould behavior of human beings, but it
would be difficult to change the basic personality and temperament of a person once he
reaches adulthood stage.
Establishment of Development Program:
It is the duty of the HR department to establish the well-conceived development
opportunities.
The HR department has to identify the existing level of skills, knowledge etc, of various
executives and compares them with their respective job requirements. Thus, it identifies
developmental needs and will establish specific development programs like leadership
courses, Management games, and Sensitivity training. The department may not be in a
position to organize development programs for executives at the top level as could be
organized by reputed institutes of management. In such situations, top management deputes
certain individuals to the executive development programs organized by the reputed
institutes.
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UNIT VII
CONCLUSION
Management Development Program is an in-depth professional intervention, which enhances
managerial functioning through multiple interactions with key executives, one-on-one or in
groups. Development is more effective when it includes senior level officials, as it then helps
change mind-set, and influence behavior throughout their organizations. It is customized to the
specific needs of employees, is based on on-the-job experience, has direct application to work
situations and thrives on the feedback of participants. The exercise involves continual guidance,follow-ups and learning.
By doing an intensive study on the various parameters to evaluate the effectiveness of the
executive development programs the researcher concluded that the executives are the dynamic
life-giving element in a business.
The caliber and performance of managers will largely determine the success of a business. If the
business wants to improve the quality of its managers, it must make a considerable investment on
its human resource and introduce imaginative and systematic development schemes for them-in
which managers themselves play a crucial role. All enterprises need to devote great attention to
the continuous supply of their future managers, both functional and general.
Management of most Indian companies which are striving to become major players in their
sectors are immersed in day-to-day issues and often do not devote adequate time and effort to
build long-term strength in their organizations. The executive developer or instructor is the
catalyst encouraging and supporting the CEO and his team to build an effective management.
Executive development program embodies professionalism in executives through correct,
deliberate and objective application of knowledge, skills and attitudes towards the
accomplishment of a set of objectives.
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Executive development program is an investment in human resource with a promise of better
returns in future. A companys executive development program pays dividends to the executives
and the organization by leads to enhance profitability and more positive attitude towards profit
orientation. It improves the job knowledge and skills at all levels of the organization. At last, the
researcher concluded that the executive development programs will return values to the
organizations in terms of increased productivity heightened morale, reduced costs, greater
organizational stability and flexibility to adopt the rapid changing business environment.
Change is the name of the game in which a senior executive is put to an acid test. The bad news
is that it has a beginning, but the end never seems to be in sight. There is an intrinsic danger that
people have a propensity to relax and turn complacent after the trauma of going through a
massive change programmer. Like termite to timber, this malaise may not be transparent, until
much damage has already been done below the surface.
It is the will and skill to stay in and sustain the game, despite no respite, which will take the
company to the top; and then, to retain it there may be a different ball game altogether; but the
key player everywhere will be the senior executive
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UNIT VII
RECOMMENDATIONS
Evaluation of training must be made a compulsory part of training.
At present BHEL spends just about 0.05%. The expenditure on training must be
increased in order to improve its turnover.
Executive Training in BHEL is not much advanced up to levels of Private firms LikeTATA, and Reliance there Mangers also go to foreign universities but there is no
occasion of Foreign education for BHEL executives.
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BIBLIOGRAPHY
Arthur, M., & Rousseau, D. (1996). A career lexicon for the 21st century. Academy of
Management Executive. (Web edition)
McCall, M. (1998). High Flyers: Developing the Next Generation of Leaders. Boston:
Harvard Business School Press.
Hoag, B. and Cooper, C.L. (2006) Managing Value Based Organizations: It's Not What
You Think.( e-book)
www.wikipedia.com.
www.themanagementor.com.
www.hindubusinessnews.om
www.books.google.co.in
www.sunholidays.co.in
www.eonomictimes.com
www.coolavenues.com
www.mbatuter.com
www.training.seedinfotech.com
www.high-impact-leaders.com
www.careerbuilder.com
www.bhel.co.in
http://www.wikipedia.com/http://www.wikipedia.com/http://www.themanagementor.com/http://www.themanagementor.com/http://www.themanagementor.com/http://www.wikipedia.com/ -
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ANNEXURE
Q1:- Do you conduct MDPs in your organization
Yes No
Q2:- If yes what types of MDPs are conducted in your organization
In House Out House
Q3:- What are the reasons for conducting MDPs in organization
Leadership Development
New Exposures
Enhancing Skills
Motivations
Technological literacy
Q4:- Type of Programs which are conducting in Executive Developments?
Symposiums
Workshops
Certificate Programs
Interactive meet
Seminars
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Q5:-MDPs have a very strong impact on performance of employees. Tick the appropriate
option
Strongly Agree Agree Neutral Disagree Strongly Disagree
Q6:- How many training programs for senior executives take place every year?
15-10
10-15
15-20
20-30
More than 30
Q7:- What is duration of training programs for senior executives?
2-4 hrs 4-6 hrs 8 hrs More than 8 hrs
Q8:- Is there any change in trend of executive education pattern in your organization?
Yes No
Q9:-If yes which of the following changes have taken place
Potential Leadership Styles
Managing Strategic Change
Stress Management
Dispute Resolutions
Improvements in Mentoring Skills
Any other
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As the BHEL is very big Organization to engage a meeting with HR manager was
very difficult job and he was not able to give much time to me.
There was lack of time in field study as this project requires comprehensive
discussions with the Managers. And the rule of deemed attendance is already
scraped in the university, so, researcher was not able to give more time of field
visits.
In BHEL pre analyzed data is not available with Organization on Executive
development Programs.
ihttp://www.indiaedu.com/career-courses/management-development.html as visited on 21 aug 2008
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iihttp://www.xlri.ac.in/scripts/faq_listing.php?section='Management%20Development%20Programme' as visited
on 26 august 2008
iiiwww.managementhelp.org/mgmnt/defntion as visited on 1 sept. 2008
ivibid
vwww.managementhelp.org/mgmnt/defntion.htm as visited on 23 august 2008.
viibid
viihttp://www.mbauniverse.com/executive_education.php?pageId=9 as visited on 27 august 2008.
viiihttp://www.indiastudychannel.com as visited on 21 august 2008
ixSupra note 1
xwww.nsph.gr/ecoman/word/humanresourcedevelopment.doc as visited on 12 sept.2008
xithttp://www.cieman.com/index.php/management-development/ as visited on 2 aug.2008.
xiiibid
xiiiSupra note 10.
xivwww.niceindia.com/qbank/MG1351_Principles_of_Management2.pdf as visited on 12 sept 2008
xven.wikipedia.org/wiki/Executive_development as visited 0n 12 sept. 2008
xviwww.economicstimes.com/june2408/ as visited on 22 aug 2008.