Importance of Management Development:
Management development is the process by which managers learn and improve their management skills. Only training cannot provide the requirement of knowledge, personality, attitude, behaviorism etc. Organizations need a process for developing the skills of their managers as these employees direct and organize the work of all of your other employees.
Executive talent is the most important asset of an organization. It is not shown on the corporate balance sheet, but it influences appreciably the growth, progress, profits, and the shared values than any other corporate assets. A managerial asset is not costly to acquire. It is a low-cost resource with a high-profit potential. In reality, top management should give more thought and care to the acquisition, maintenance and growth of men and women who possess managerial talent and caliber than the thought and care are given to planning and development of a plant or a product.
In the life of a corporation, present success is largely a product of three types of top management actions taken in the past:
- Scientific selection of the right people in the management cadre;
- Placement of properly selected people in the right job;
- Assurance that these properly placed managers could grow as per expectations and could meet both the needs of the organization as well as their own needs. In underdeveloped and developing countries, management is the single factor acting as the master-key for unlocking the forces of economic development.
No modern business can continue to be successful without planned attention to the growth and development of its managerial staff. It is due to the unbelievably rapid expansion of technology demanding numerous specialized and qualified employees to manage the complex, sophisticated and dynamic business.
“An institution that cannot produce its own managers will die. From an overall point of view, the ability of an institution to produce managers is more important than its ability to produce goods efficiently and cheaply”—P. Drucker.
Drucker’s statement illustrates the importance of management (executive) development. Yet we find that industry, on the whole, has failed to recognize its importance, particularly in developing countries like India.