Management Development

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Lecture 5

• Management Development

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Lecture Outline

• Definition of management development
• Importance of management development
• Historical overview of management development
• Current issues in management development
• Management competencies
• Karpin report 1995 - recommendations for best
  practice management
• Joss 2001 Post Karpin report

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Definition of management development

• The total, continuous improvement process
  through which managers develop their competence
  for successful personal and enterprise
  performance. This includes learning through a
  variety of formal and informal, structured and
  unstructured experiences including from the work
  role and from work relationships from self
  development from formal training and from
  tertiary and higher education programs Karpin
  Report 1995.

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The growing importance of management development

• There are a significant number of managers in
  Australia - approximately 800 000.
• Management becoming an internationalised
  occupation.
• Australian managers education and training
  profiles do not match the European, American and
  Japanese managers.
• The performance of Australian managers has also
  been criticised - short-term/ profit orientated
  as compared with the strategic/ long-term
  orientated Japanese and German management.
• Questioning the success of conventional
  approaches to management development.

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Historical overview of management development in
Australia

• Barry (1996) has suggested that management
  development activities in Australia can be
  analysed with three phases
• The first phase (up to 1965)
• The second phase (1965-95)
• The current scene

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The first phase

• Post WWI growing recognition by some employers
  that university education might be superior to
  OJT in a specialised field - due to economic
  pressures such as problems of currency and trade
  protection.
• The majority of management development took place
  outside universities - (ie.) technical colleges.
• During WWII - est. Australian Institute of
  Management 1941 Melbourne Technical College est.
  1938 introduced Certificate in Foremanship 1948
  this became known as a Diploma in Management.
• 1950s/early1960s increase pace of developments
  - Australian Administrative Staff College
  (Monash-Mount Eliza Graduate school of
  Business) MBA est. University of Melbourne in
  1962.

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The second phase (1965-95)

• Increasingly understood that economic growth
  depended to a large extent on a well-educated and
  trained workforce.
• Realisation of the important role of
  higher-education .
• Federal government has set up three committees of
  inquiry to investigate management development -
  1969 chaired by Cyert 1980 chaired by Ralph and
  Karpin 1992.
• Karpin report - importance of management in
  sustaining growth, increased employment
  opportunities, improving productivity and
  increased international competitiveness.

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Karpin Report

• Best Australian managers were equal or better
  than those in the rest of the world.
• Although the functional skills of Australian
  managers in large organisations were well
  developed, the majority of Australias managers
  did not have either education or skill levels of
  their international counterparts.
• Significant gap areas - soft skills strategic
  skills management development and team-working.
• Over all industries - management spent 7 days per
  year (3) of their time on training and
  development activities - Motorola 20 days of
  training per year.

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Karpin report

• Australian management education institutions
  compared favourable with overseas.
• The Karpin report contained 28 recommendations to
  the government - movement from an employee
  culture to an employer culture greater role for
  women in management managing diversity
  professional accreditation of business schools
  and establishment of applied research program to
  be run jointly with industry national training
  program for front-line managers and an industry
  based program to enable Australian managers to
  participate in study tours.

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The current scene

• The demise of the traditional career
• Credentialism becomes an aid to mobility
• The growth in management education - short
  courses new credential ladders - graduate
  diploma, then to a MBA and in some cases DBA.

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Issues in management development

• Something to Think about? Controversial?The link
  between knowledge and managerial performance may
  be tenuous - the correlation between academic
  attainment and career success is small. Cox and
  Cooper (1988) suggest that there is no evidence
  that academic learning changes behaviour or
  develops practical skills such as those required
  by management.
• The major contribution of universities -
  facilitation of independent thought, curiosity,
  ability to think logically, and the ability to
  learn and disseminate information.

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Developing mgt competencies

• In an attempt to make the mechanics of
  management development more relevant to the
  actual practice of management, competency based
  approaches have become increasingly popular.
• The competency framework has been widely adopted
  without a clear definition of what constitutes a
  competency (Antonacopoulou and FitzGerlad 1994).
• Competency consists of the virtues unique to each
  individual which are expressed in the process of
  interacting with others in a given context.
• This definition does not limit competency to
  specific knowledge and skills, instead it
  embraces attitudes, perceptions and emphasises
  that competence is defined and redefined as
  personal and situational.

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Definitions of competence

• The ability to perform effectively in a given
  context, the capacity to transfer knowledge and
  skills to new tasks and situations and the
  inclination or motivation to energise these
  abilities and capacities (Hunt and Wallace 1997).
• According to Hearn, Close, Smith and Southey
  (1996) the competence of professionals derives
  from possessing a set of relevant attributes such
  as knowledge, abilities, skills and attitudes.

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Management and competence

• To examine management competence it is important
  to understand the concept of management.
• Functional-prescriptive approach (ie.) Fulop
  (1992) - planning, organising, leading and
  controlling.
• Observational-descriptive - observe those who are
  termed management practitioners (ie.) Mintzberg
  (1975).
• Third approach is to focus upon the range of
  specific skills that managers might be said to
  require - focus on managerial effectiveness
  holistic focus on management.

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Process of generating competencies

• Managerial competencies can be derived from
  knowledge of management practice - these relate
  to managerial effectiveness.
• Second step clarifying the uncertainties
  surrounding the competency approach to management
  is to develop a wide-ranging and comprehensive
  list of management skills, behaviours and
  attributes which could then be evaluated against
  the organisation and managerial levels.
• Third step is to derive meaningful clusters from
  the list in order to provide a competency
  framework for assessment and development.

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The importance of competence

• Long term challenge of building a skilled
  workforce
• The need to establish a clear link between
  training and job performance - competency is seen
  as a way of focusing and controlling the costs of
  training and contributing towards organisational
  goals.
• Evaluation and performance
• Establishing of a common language between
  organisational expectations and individuals
  needs.
• Competency based models are used as the basis for
  developing a syllabus for specific management
  development initiatives.
• Organisations have an idea about the right
  qualities managers should possess.

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Different conceptualisations of competency

• Universalism - standardisation of managerial
  roles
• Individual and context - the importance of social
  and group interaction
• Competency synonymous with performance
• Competency as defined by current activity

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Cross-cultural management competencies

• Fish and Wood (1997)
• Transformational management skills - shifting
  from ethnocentric approach to geocentric approach
  to management.
• Interactional management skills - understanding
  of comparative HRM practices such as leadership
  style,staffing etc.
• Transactional management communication skills -
  advancing the presence of the business enterprise
  in foreign business locations.
• Foreign language skills

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Key themes concerning competence

• Issue of communication - the link between defined
  competencies and effective performance has to be
  established.
• The need to balance between fixed elements while
  at the same time allowing room for continuous
  improvement.
• Inadequacy in the concept of competency -
  competency developing the whole person - ultimate
  stage of completeness.
• The role of management development and learning
  organisations.

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Recommendations to achieve best practice
management development

• Achieving best practice management development
  has two broad elements
• Setting out broad areas of leadership and
  management competence which need to be improved
  in Australia.
• The need for the management development agenda to
  be driven by enterprises themselves.

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Competencies that need to be improved

• Two types of competencies required for a job -
  knowledge and skill specific to the job (industry
  and specific competencies) general abilities and
  characteristics (general competencies).
• The Task Force identified a number of broad areas
  where generic and specific skills need improving
  -
• People skills leadership skills strategic
  skills international orientation
  entrepreneurship inner values and accepting
  responsibility network building skills and
  managing diversity.

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The need to reframe our view of how managers learn

• Most commonly held assumption made about
  management learning is that it is derived from
  formal instruction.
• The Task Force suggests that management should
  have a wider view of how managers learn -
  learning from experience - as management spend
  98 of their time at the workplace most learning
  would occur on the job.
• Four sources of learning - work role work
  relationships formal training and formal
  education.
• The need for continuous improvement - learning
  from all sources.

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Responsibility for management development

• Individual managers must take responsibility for
  their own learning.
• Gunzburg (1994) effective learners
• Continual search for diversity and risk
• Strong desire to learn on a continual basis
• Taking personal responsibility for learning
• Awareness of learning strengths/weaknesses
• Effective use of modelling - observational
  learning
• Effective use of feedback
• Willingness/capacity to challenge personal
  paradigms

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Best practice management development

• Key element one an enterprise strategic plan
  drives the management development agenda
• Key element two a management development
  strategy that provides a framework for all
  management development activities for up to five
  years
• Key element three a management development model
  that emphasises learning from a rich variety of
  sources
• Key element four management development linked
  to the entire management system

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Best practice management development

• Key element five responsibilities for management
  development shared between managers and their
  enterprise - the role of coaching.
• Key element six management competencies that are
  identified for all management levels - changes in
  behaviour to meet emerging business innovation.
• Key element seven priorities for management
  development that are agreed by the stakeholders.
• Key element eight work experience is recognised
  as a primary developmental opportunity - study
  tours.

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Best practice management development

• Key element nine - an enterprise culture that
  encourages all managers to learn and pursue
  personal continuous improvement.
• Key element ten - management training and
  development programs that improve management
  performance.

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Post Karpin Report

• Joss 2001 Australian Journal of Management
• Where is Australia today in terms of management
  capability?
• Trailing behind the US in terms of management
  expertise because American companies confronted
  market deregulation, global competition and
  shareholder demands for performance about 10 to
  15 years earlier than did most Australian
  companies.
• The best way forward?
• The right market conditions for management
  development.
• Sound management education programs.
• Strong understanding and support for the
  management role and capability.