Management Development: Why It’s Important and How To Create an Effective Strategy
Are you developing your managers? Good managers equal good financials. Companies earn an average of 147% higher earnings per share when their number of talented managers increases. Read that again.
Management development is more critical than some might think — 59% of employees agree with the statement, “I don’t see any leaders at my company today that I aspire to be.” The first step to changing this is to understand the main objective of management development: to help build confident managers who support both the workforce and the company’s long-term success.
This article looks into what the benefits and opportunities management development provides, how to identify the right development methods, and how you can drive and support the management development process at your organization.
Contents
What is management development?
Management development: Benefits and challenges
Key areas covered in management development
5 types of management development programs
7 steps to create a management development strategy
Measuring the success of your management development program
What is management development?
Management development is the process of developing the skills and competencies needed to perform effectively on all levels of management, from first-line supervisors to top-level executives. Also called leadership development, it improves core skills like conflict resolution and communication and is a long-term investment in both new and experienced managers.
HR’s role in management training and development
HR plays a crucial role in management training and development. Here’s a breakdown of what HR does in this area:
- Identify training needs: Evaluate the training required by looking at performance data, employee feedback, and business goals. They then design programs that cover performance management, conflict resolution, team building, and more.
- Cultivate a culture of learning: Promote continuous learning by updating training as policies or leadership change and planning for succession to develop future managers and leaders.
- Provide learning resources/programs: Select training methods — such as classroom sessions, online courses, or mentoring — that fit the company’s goals and budget.
- Facilitate leadership development: Develop programs like mentorship, job rotations, and coaching in the workplace to build leadership skills at all levels.
- Ensure legal compliance: Make sure training covers essential laws and regulations (e.g., FMLA, FLSA, ADA, and OSHA) to minimize legal risks.
- Track progress and provide support: Measure training effectiveness through assessments, reviews, and feedback, and then adjusts programs as needed.
Management development: Benefits and challenges
The key benefits of management development include increased productivity and efficiency, and stronger leadership and decision-making skills. Skilled managers boost team performance and align with business goals, while training enhances decision-making and critical thinking.
Other benefits are higher employee engagement and improved business agility and adaptability. Effective managers create a supportive work environment, which improves the employee retention rate, and a well-prepared management team can adapt quickly to market changes.
However, management development also comes with a few challenges, such as managerial resistance to change and budget and resource constraints. Some managers may see training as extra work and the organizations may cut development programs when budgets tighten.
It can also be difficult to measure the success of a leadership development plan and identify the right training methods. Benefits like improved leadership are sometimes hard to quantify, and HR must spend time researching training programs that suit the company’s unique needs.
7 types of managers (and why management development is necessary)
Different types of managers may require different training and development approaches. Here’s an overview of the different types of managers and how they benefit from management development:
- Executives: Executives set the organization’s overall direction. Development programs for executives should focus on strategic thinking, high-level decision-making, and “visionary” leadership.
- Middle managers: Middle managers act as the bridge between top-level management and first-line managers. They need training in communication, conflict resolution, and leadership to help them effectively manage teams and ensure goals are met.
- First-line managers or supervisors: These managers oversee daily operations and supervise employees. Development for them should emphasize performance management, employee growth rate, team coordination, and operational decision-making.
- Project managers: Project managers require skills in planning, execution, monitoring, and keeping projects on track. Development programs for them should emphasize time management, resource allocation, and problem-solving.
- Functional managers: These managers are in charge of specific departments, such as HR, finance, or marketing. Their development needs typically include specialized knowledge in their functional area, as well as leadership and collaboration skills.
- Coaching managers: These managers help employees develop their skills through feedback, mentorship, and training. Coaching managers need training in active listening, coaching techniques, and constructive feedback.
- Crisis managers: These managers help companies handle change or crisis, such as restructuring, mergers, or emergencies. Their training should cover stress management, business continuity, resilience-building, and decision-making under pressure.
Learn to drive effective management development
Obtain the skills you need to facilitate effective management development. To do so, you must provide targeted training, coaching, and support systems to equip managers with the skills, knowledge, and tools to lead well and drive business success.
AIHR’s Learning & Development Certificate Program will teach you to create a sound development program and a culture of learning, as well as the advantages of managerial coaching and how to choose the right coach for your organization.
Key areas covered in management development
Management development training must cover a range of leadership competencies to prepare managers to oversee multiple aspects of work and business. As such, it typically covers the following key areas:
Leadership skills training
Effective leadership is the foundation of manager development. It focuses on leading by example, inspiring teams, goal-setting, and helping employees understand business goals and how their respective roles impact the company.
Active listening, communication, and interpersonal skills
Managers must be able to communicate clearly and effectively to help build strong, trustworthy relationships with their employees. This includes both verbal and non-verbal communication, as well as active listening and conflict resolution skills.
Performance management
Managers must be trained to effectively assess and manage employee performance, provide constructive feedback, and set performance goals. This is also an important component in helping to drive organizational success.
Change management
Organizational changes require managers to have the skills to guide their teams through the transition period. Whether it’s adopting new technologies or shifting departmental priorities, managers must lead their teams effectively to maintain employee satisfaction and retention.
Coaching and mentoring
To drive employee engagement, satisfaction, and retention, managers must be trained to support their teams’ growth through coaching and mentoring. HR often provides support in this aspect by working with management to give employees the necessary tools and resources.
Decision-making
Being a skilled decision-maker involves critical thinking, analyzing information objectively, and considering potential outcomes. Managers must also weigh risks against benefits, understand compliance considerations, and make the best decisions based on business needs.
Common areas for manager training
Some of the most common topics for manager training include:
- Bias: Recognize and address unconscious bias for a fair workplace.
- Conflict resolution: Learn to resolve team disputes effectively.
- Employee communication: Build trust through clear, effective communication.
- Time management: Prioritize tasks to meet deadlines efficiently.
- Compliance: Understand and follow key employment laws and regulations.
5 types of management development programs
To develop managers, HR can implement various types of management development programs, including:
- On-the-job training: This is a hands-on approach where managers learn through real-life experiences. This ‘real-time’ training is effective for developing problem-solving skills, operational knowledge, and effective decision-making skills.
- Formal education programs: These programs include degree programs, job-related certifications, or specialized courses. They help managers gain a deeper understanding of management principles and business strategy.
- Workshops and seminars: Workshops and seminars provide short, focused learning experiences where managers can enhance specific skills, such as in leadership or communication.
- Mentorship and coaching programs: These programs pair less experienced managers with senior leaders for guidance, feedback, and support to aid in the management development process.
- Online learning and e-learning platforms: There are digital learning platforms that offer flexibility for managers to learn at their own pace. They usually cover a wide variety of topics, from technical skills to leadership development.
7 steps to create a management development strategy
Here are seven critical steps to follow when you’re creating a management development strategy for your organization:
Step 1: Assess current skills gaps
Start by evaluating your management team’s current skills to pinpoint areas that need improvement. Use performance reviews, feedback, and clear data to understand where strengths lie and where training is necessary. This step helps you identify real challenges so your training initiatives address actual needs rather than assumptions.
Step 2: Define clear objectives
Set clear, measurable goals for the development program. Decide what success looks like (e.g., better team performance, improved decision-making, or increased employee engagement) and ensure these targets match your business strategy. With well-defined objectives, everyone involved should understand the purpose and be able to track progress effectively.
Step 3: Choose your development methods
Select the training methods that best suit your managers’ and company’s needs. Options can include on-the-job training, formal courses, workshops, or online learning. Pick one or a combination that fits your company’s budget and time constraints while delivering the specific skills your managers require.
Step 4: Solicit leadership buy-in
Secure strong support from top management to ensure your development program receives the resources it requires. Present your plan clearly, showing how improving management skills will drive overall business success. Having leaders backing the initiative creates an organizational culture that values development and encourages active participation.
Step 5: Implement and track progress
Launch your training program and monitor its progress from the start. Use regular check-ins, assessments, and performance reviews to see how well your managers are adopting new skills. This ongoing tracking helps you spot issues early and adjust the program as needed, ensuring your investment delivers tangible results.
Step 6: Adjust and refine
Gather feedback throughout the program to understand what works and what doesn’t. Use this information to make timely improvements, keeping the training relevant and effective. Regular adjustments based on real-world results ensure the program continues to meet the organization’s evolving needs.
Step 7: Integrate with succession planning
Integrate your development efforts with detailed succession planning to build a strong pipeline of future leaders. Identify high-potential employees early and include them in your training programs so they’re ready to step into larger roles. This proactive approach ensures long-term leadership continuity and strengthens your business for the future.
Measuring the success of your management development program
To assess the success of your management development program, you can use the following methods:
- Employee pulse surveys: These surveys can help you gauge how well managers are motivating their teams and creating a positive work environment.
- Manager performance reviews: These reviews help evaluate how managers are applying their development training to their day-to-day duties.
- Retention and promotion metrics: Track the success of development programs by measuring how many managers are retained or promoted within the organization.
- Productivity and team performance improvements: Monitor the impact of management development on team performance and productivity.
- Additional metrics to consider: Include feedback from peers and direct reports, and organizational performance indicators such as revenue/financial growth.
To sum up
Management development is necessary for a company to grow and thrive. It enhances leaders’ skills and abilities by providing them with the tools and resources needed to build, lead, and develop teams, deliver results, and contribute to overall organizational development.
HR can create a culture of continuous learning that supports growth for every management level by proactively assessing training needs, selecting relevant programs, tracking progress, and making changes when needed. In doing so, companies can ensure their leaders are equipped to confidently run the business and handle challenges, ultimately benefiting the entire workforce.
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