Leveraging Maximum Benefit from the Intangible Asset - Knowledge: An Model: Empirical Evidence in IT Industry in Bangalore

When organizations are well managed, they adapt to changes in the environment and develop cultures that inspire commitment and innovation. They have clear plans, organized structures, systems, and processes. Managers are able to carry out activities efficiently, monitor and evaluate results. The research paper emphasizes that IT organisations have realised the importance of MD and are increasing their investments on training managers. The data collected through structured questionnaire has been analysed using statistical tests like Descriptive Statistics, Chi-Square test, contingency coefficient analysis, Independent sample, ANOVA-repeated measure. The collected primary data has been converted into nine factors model & a confirmatory path analysis is used to identify the key factors which have an impact on MD. The results of the research highlight that Training need identification’ and ‘Individual growth and job performance’– in terms of factor loadings that has emerged as most critical aspects from the perspective of employees. It is also evident from the research that there is need for management to lay more emphasis on those factors that have been ranked the least so that further refinement would be made in MDP in future. THE CONTEXT FOR MANAGEMENT DEVELOPMENT: Since managers play a critical role in the success of a business, one primary strategy to promote and develop managerial performance and effectiveness is the training process (Mullins, 1993; Parry, 1996; Pickett, 1998; Willcocks, 1998). Identifying the qualities that define effective managers for achievement in an occupational field is a critical process in human resource management in the midst of organizational change. Training activity remains a very large part of human resource development (HRD) practice (Nordhaug, 1989). Management Development is one of the most pervasive methods for enhancing the productivity of individuals and communicating organizational goals to personnel. Management development needs arise partly from the day to day activities of managers, the need to ensure there is a group of effective managers able to translate the organizations’ aims into action, and also from the need to change and shape the organization’s direction as the environment changes. WHY IS DEVELOPING MANAGERS DIFFERENT? Managers at all levels, and not just those at the top, need a common set of skills associated with their management role, and these need are to be developed. Just assuming that well qualified or professional people will be able to assume the management role on promotion does not necessarily help them become effective. Moreover personality and individual style is important. There is a need for more individual solutions as the management cadre is small even in large organisations. Some very senior people, such as CEOs, can feel isolated and have the perception that others in the organisation don’t understand the pressures they face. In addition senior managers often need highly refined political skills to navigate and use influence. Managers at board level or at the senior ranks can be sensitive to their senior status, and may reject the idea that they need to learn, but the neutrality of the term 'development' usually appeals. Small firms are not simply smaller versions of big companies but have different priorities and needs, not least the need to be entrepreneurial. Their management development needs may relate to functional skills more normally demonstrated in large environments by specialists. They have to become a ‘Jack and Jill of all trades’ to an extent and therefore may require more skills based approaches. MANAGEMENT DEVELOPMENT OBJECTIVES The principal objective of management development is to make sure the availability of a skilled and willing workforce to an organization. In addition to that, there are four other objectives. 1) Individual objectives 2) Organizational objectives 3) Functional objectives 4) Societal objectives Individual Objectives – help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization. International Journal of Management and Social Sciences Research (IJMSSR) ISSN: 2319-4421 Volume 2, No. 9, September 2013 i-Xplore International Research Journal Consortium www.irjcjournals.org 55 Organizational Objectives – assist the organization with its primary objective by bringing individual effectiveness. Functional Objectives – maintain the department’s contribution at a level suitable to the organization’s needs. Societal Objectives – ensure that an organization is ethically and socially responsible to the needs and challenges of the society. THE GROWING IMPORTANCE OF MANAGEMENT DEVELOPMENT PROGRAMS Corporate personnel at all levels of the hierarchy represent the cornerstone of organizations, spearheading operating objectives in the short and long terms. Management development initiatives are essential tools that senior leaders use to improve the productivity of personnel. Therefore, managers must be able to get the required knowledge, skills, and attitudes (KSAs) to meet the challenges as soon as they arise. REVIEW OF LITERATURE In a systematic research investigation is imperative for the researcher to carry out a comprehensive literature survey. This will serve two purposes. Firstly it will enable the researcher to get a clear perspective about the works already carried out; this will enhance his knowledge base on the subject. Secondly, it enables him to identify the research gap. It also avoids reparative researching on the topic. In the following pages an attempt has been made to review all the research work’s pertaining to Management Development Programmes. Cannon (1994) proposed that MD needed a renewed emphasis on its impact on corporate performance and improved competitiveness. Constable and McCormick (1987) recommended that MD should be an integral part of strategic plans and strategic change. Krouwell and Goodwill (1994) define management development as the branch of management education "which address the 'softer' skills of enterprise, developing managers' competence in handling of interpersonal matters, getting the best from through improved understanding of the human condition and developing as an individual. Wightman, Stephen; McAleer, Eddie, (1995), examine management development requirements in small companies within the software industry, and suggests that firms' effectiveness in this sector in the long term requires the presence of a significant proportion of managers who can demonstrate both managerial and technical expertise. Authors: Jansen, Paul; Velde, Mandy van der; Mul, Wim (2001) in their research work on a survey of 92 Dutch companies concerning their MD policy and practice, identified four types of MD: 1). administrative MD, found in lifetime employment environments; 2). derived MD, where in "up or out" environments MD is strictly planned and linked closely to company strategy; 3). partner MD, primarily found in innovative and IT environments where it is imperative to combine business development with human development; and 4). leading MD, in turbulent market situations. Hunt J.W.; Baruch Y. (2003) in their study, at a leading business school, designed to assess the impact of interpersonal skills training on top managers, based on subordinate feedback of 252 executives from 48 organizations, conducted before, and six months after the training programme took place, indicate significant impact on some, but not all, of the competencies and skills under study. Vesa Suutari, Riitta Viitala, (2008) worked on the preferences for management development methods used in the development of senior managers, and to discover the perceived effectiveness, as well as strengths and weaknesses, of different methods. The results indicate that the dominance of traditional short-term management development activities continues while more longitudinal methods emphasizing experience-based learning were reported to be more effective in supporting the development of senior managers. In addition, various key strengths and weaknesses of different methods were identified.