Executive development is more future oriented. It is more concerned with education than is employee training. In today’s competitive environment, an organization has to be concerned about the development of supervisors, middle level managers and top-level executive.
Executive development is important for the following reasons: –
- Executive development programmes are required to train and develop professional managers.
- It helps managers to develop skills to face cut throat competition.
- It enables managers to face problems related to technology and institution.
- It helps in developing better relations with the labors.
- Executives need training and education to understand and adjust to changes in socio-economic changes.
- Executive development is required to broader the outlook of managers.
Factors Influencing Executive Development
A host of factors influencing the executive development processes in organizations are as follows:-
Failure to train the managers will lead to ineffective and inefficient managers who negatively affect the organization’s performance.
In the absence of training and developmental avenues, the performing managers may get demotivated and frustrated in leading the organizations. This would lead to severe losses for the organization in financial parameters, in terms of the cost of recruiting and training the new incumbent.
The organizational performance may be affected by the loss of market shares, lower sales, reduced profitability, etc.
The absence/ shortage of trained and skilled managers make it important for the organizations to have appropriate retention strategies. Training and development is being used by organizations as a part of their retention strategy.
The competitive pressures make it necessary for organizations to continuously roll out new products and services, and also maintain the quality of the existing ones. The training and development of managers would help them in developing the competencies in these areas.
The competitive environment is making it imperative for the organizations to continuously restructure and re-engineer, and to embark upon these processes, it is essential for the organizations to train the managers for the new scenarios.
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