MODERN BUSINESS

PRACTICES

Prepared by DEEPALI MITTAL (SDJIC)

EXECUTIVE DEVELOPMENT
AND ITS METHODS
• Executive Development refers to structured programs designed to improve the skills,
knowledge, and overall abilities of managers and executives within an organization. These
programs aim to enhance their leadership, decision-making, and problem-solving abilities.
• The PURPOSE of executive development is not only to improve their professional competencies
but also to foster personal growth, allowing them to manage teams effectively and contribute to
the company's long-term success. These programs combine formal training with experiential
learning, where executives grow by performing their daily managerial tasks.
• Key Points of Executive Development Programs:
1.Skill Enhancement: Focuses on improving decision-making, leadership, communication, and
strategic thinking.
2.Personal Growth: Aims at the overall development of personality, enhancing creativity,
resilience, and emotional intelligence.
3.Learning Through Experience: Emphasizes learning during the performance of managerial
duties, encouraging self-motivation and a continuous learning mindset.
4.Formal Training: Includes workshops, seminars, and courses aimed at specific skill improvement.
• As defined by Michael J. Jucius: "Executive Development is the programme by which executive
capacities to achieve desired objectives are increased."
NEED FOR EXECUTIVE DEVELOPMENT
1. • To develop leadership qualities

2. • To meet shortage of trained managers

3. • Development of companies

4. • To cope up with rapid technological changes

5. • To fulfill social responsibility

6. • To develop managerial knowledge

• To Develop Leadership Qualities: The success of an organization depends on its
managers' leadership. Executive development programs help improve leadership and
management skills. Top management must select and train managers to become
effective leaders who can motivate their teams.

• Shortage of Trained Managers: Businesses often face a shortage of skilled managers,

especially during expansion. It's difficult to find managers with the required skills in the
job market, so companies need to train their own talented employees.

• Development of Companies: As companies grow, the need for skilled managers

increases. Many managers may lack the necessary abilities for their roles, so executive
development programs are crucial for improving their skills. Management isn't fully
professionalized yet, so systematic training is essential.
• Rapid Technological Changes: With fast technological advancements like automation
and international competition, managers must stay updated to manage business
effectively. Executive development helps managers cope with these changes.

• Social Responsibility: Businesses are increasingly seen as responsible to society, not just
shareholders. Managers need training to meet these new responsibilities, especially in
the context of social and technological changes.

• Development of Managerial Knowledge: Management knowledge is constantly

evolving. A successful manager today may become outdated tomorrow without
continuous learning. Executive development programs help keep managers updated
with new skills and knowledge.
METHODS OF EXECUTIVE DEVELOPMENT
ON-THE-JOB METHODS OFF-THE-JOB METHODS

Self development on Special courses

the job
Role-playing
Coaching
Case study method
Understudy
Conference method
Job rotation
Simulation or Business
Games
Special projects
Multiple management
Committee
assignments Syndicate method
Reading literature
Sensitivity training
ON-THE-JOB METHODS:
Self Development on the Job: This is the best method in which the executive will
learn himself from his experience. This is because he gets a real idea about the
problems when he is working in that position. But he needs expert knowledge
which he does not get from the job. Hence, his knowledge must be supplemented
by outside courses.
Coaching: This is a method in which a superior coaches the manager about the job
knowledge and skills. The objective of coaching is not only to teach the trainee
necessary skills for doing his job, but also to provide him with diversified
knowledge.
Understudy: An understudy is a trainee who gets trained under his superior to
assume his duties and position when the superior will retire or leave the job. The
future of understudy depends on what happens to his superior. The department
manager selects one person from his department to become his understudy. He
will then guide him to learn his job.
Job Rotation :In order that the trainee may learn all the jobs, he is transferred from
one job to another in a planned way. This will help him to grasp the problems of all
departments in the business.
The benefits are as follows:
• It helps in removing the feeling of superiority of any one department over others.
• As all have worked in various departments the interdepartmental cooperation is
possible.
• He learns the importance of management principles and he will be equipped to
hold the superior position.
Special Projects: Here, the trainee is assigned a project which is closely related to
the work of his department.
Example: He may be assigned the task of developing a cost control system in the
execution of an order.
Thus, the trainee gets practical knowledge and valuable experience. He will also
learn to work with others having different viewpoints.
Committee Assignments: This is very much like project assignment. Here an adhoc
committee is constituted. It is given a subject to discuss and make
recommendations. Here every member of a committee gets a chance to learn from
the other.
Reading Literature: While on the job, reading materials like business magazines
and books on business management are provided to them. The horizons of
knowledge in the field of business is fast expanding and so many companies
subscribe to various business magazines.They maintain a library from which books
are issued to trainees. Thus, this method leads ‘to read and develop’.
OFF-THE-JOB METHODS:
• Special Courses: Under special courses, One method is that the company may
develop its own course for trainees. Teaching is carried out partly by the managers of
the company and partly by inviting experts from outside. The second method is to
send the trainees to the special training programmes arranged by colleges,
universities and other prestigious institutes. The expenses are borne by the
organization.
• Role-playing Method: This method was originally developed by J.L. Moreno for
group therapy for mentally disturbed people. At present, it is widely used for human
relations and leadership training. It’s purpose is to increase the trainee’s skill in
dealing with other people. Under this method, two or more trainees are assigned
parts to play before the rest of the class. Typical role playing situations are there: a
supervisor discussing a grievance with a worker. Thus students get an opportunity to
actually put into practice the knowledge they have obtained from text-books and
lectures.
• Case Method : At present this method is extensively used in teaching personnel
management, production management, marketing and labour relations etc. Under
this method, actual cases are assigned to the candidates for written analysis or for
oral discussion. They are expected to think over problem and find out the solutions.
This method requires that students have a good deal of prior knowledge and some
background in the subject area. It increases interest of students and develops
analytical thinking and problem solving ability.
• Conference Method: Under this method, frequently small group meetings of
supervisors are held and problems that a supervisor has to face - are discussed. The
leader invites participation from the trainees. So its recommended that the group
size must be-15to20 persons. The participants should sit facing one another around
a conference table. They should have some knowledge of the subject to be
discussed before coming to the conference.
• Business Games : Under this method, an attempt is made to imagine the problems
that are likely to arise in actual operation of the business organization. Supervisors
are classified into different groups and each group is asked to work out its solutions.
From among them that group is declared as the winner which suggests the most
effective solution of the problem given to them. This is done after recording and
reviewing the solutions of the same problem as suggested by different groups of
supervisors.
• Multiple Management: This is a method in which permanent advisory committees
of executives are formed. They study problems of organization and make
recommendations. Of course, the final decisions are taken by higher management.
Sometimes, junior board of directors are formed in which trainees are made the
members. They are given power to discuss any problem which the regular board of
directors are empowered to discuss. The unanimous recommendations of junior
board are then sent to the senior board. This method gives the trainees an
opportunity to gain knowledge and experience in various problems of business.
• Syndicate Method This method is generally used to prepare executives for
assuming positions at the top or near the top of business.
Trainees are selected between the age group of 30-40 years having 10 to 12
years’ experience. Participants are divided into groups of 10 members. There are
general 5 to 6 groups. Each group is called ‘Syndicate’.
Each group is then given an assignment prepared in advance. Each member of
the group in turn is appointed as the leader or chairman and each one acts as a
secretary to the group, in turn. The group has to study the problem and should
prepare its report and submit it to the management. Then there will be inter
group meeting also and all will get an opportunity to put his viewpoint.
• Sensitivity Training: In spite of emphasizing the development of business skill and
ability of trainees, Sensitivity training helps them to develop skill in dealing with
people. They attend lectures on topics such as leadership and communication. The
trainees are divided into groups called T-Groups.
DIFFERENCE BETWEEN TRAINING AND DEVELOPMENT
BASIS FOR
TRAINING DEVELOPMENT
COMPARISON

Training is a learning process in which Development is an educational

employees get an opportunity to process which is concerned with
Meaning
develop skill, competency and the overall growth of the
knowledge as per the job requirement. employees.

Term Short Term Long Term

Focus on Present Future
Orientation Job oriented Career oriented
Motivation Trainer Self

To improve the work performances of To prepare employees for future

Objective
the employees. challenges.
 Number of
Many / Group of individuals Only one / An individual
Individuals
Personal and professional growth
Aim Specific job related
of an employee
Development comprises of
Vis-a-vis Training is a means to development
training

Undertaken by superiors, outside

Who Imparts Imparted by supervisors
experts and self

Emphasis is on off-the-job
Methods Emphasis is on-the-job methods
methods

Scope Limited Wide

Emphasis is placed on practical or Emphasis is placed on conceptual

Theory / Practical
technical aspect of work and theoretical aspect of work