Tag: ORGANIZATIONAL DEVELOPMENT

Executive Corporate Processes are generic processes aiming at safeguarding that the organization is effectively and efficiently governed and managed at all levels and are collectively executed. They are herein distinguished from ‘Management Processes/Duties’, which aim at safeguarding that ‘Line Managers’ at all levels carry out in a balanced way all their ‘Managing Duties’ and from ‘Corporate Core and Support Processes’, which aim at realizing the Corporate Mission.

Analysing Development Needs:

In the first instance, once a decision is made to launch an executive development programme, a close and critical examination of the present and future developmental needs of the organisation is made. It becomes necessary to know how many and what type of managers are required to meet the present and future needs of the organisation.

This requires organisational planning. A critical examination of the organisation structure in the light of the future plans of the organisation reveals what the organisation needs in terms of departments, functions and executive positions.

After getting the information, it will be easy to prepare the descriptions and specifications for different executive positions, which in turn gives information relating to the type of education, experience, training, special knowledge, skills and personal traits for each position.

By comparing the existing talents including those to be developed from within with those which are required to meet the projected needs enables the management to make a policy decision as to whether it wants to fill these positions from within or from outside sources.

Appraisal of Present Management Needs:

For the purpose of making above mentioned comparison, a qualitative assessment the existing executives will be made to determine the type of executive talent available within the organisation and an estimate of their potential for development is also added to that. Then comparison is made between the available executive talent and the projected required talent.

Inventory of Executive Manpower:

An inventory is prepared to have complete information about each executive. For each executive, a separate card or file is maintained to record therein such data as name, age, length of service, education, experience, health, test results, training courses completed, psychological test results, performance appraisal results etc.

An analysis of such information will reveal the strengths and weaknesses of each executive in certain functions relative to the future needs of the organisation.

Planning Individual Development Programmes:

Guided by the results of the performance appraisal which reveal the strengths and weaknesses of each executive, the management is required to prepare planning of individual development programmes for each executive. According to Dale S. Beach, “Each one of us has a unique set of physical, intellectual, emotional characteristics. Therefore, a development plan should be tailor-made for each individual”.

“It would be possible to impart knowledge and skills and mould behaviour of human beings, but it would be difficult to change the basic personality and temperament of a person once he reaches adult-hood stage”.

Establishing Training and Development Programmes:

It is the responsibility of the personnel or human resource department to prepare comprehensive and well-conceived development programmes. It is also required to identify existing levels of skills, knowledge etc. of various executives and compare them with their respective job requirements.

It is also required to identify development needs and establish specific development programmes in the fields of leadership, decision-making, human relations etc. But it may not be in a position to organise development programmes for the executives at the top level as could be organised by reputed institutes of management.

In such circumstances, the management deputes certain executives to the development programmes organised by the reputed institutes of management.

Further, the personnel or human resource department should go on recommending specific executive development programmes based on the latest changes and development in the management education.

Evaluating Development Programmes:

Since executive development programmes involve huge expenditure in terms of money, time and efforts, the top management of the organisation is naturally interested to know to what extent the programme objectives have been fulfilled. Such programme evaluation will reveal the relevance of the development programmes and the changes that have been effected by such programmes.

If the objectives of the programme have been achieved, the programme is said to be successful. But it is difficult to measure the changes or effects against the pre-determined objectives.

While the effect of certain programmes can be noticed only in the long-run in a more general way, the effect of certain other programmes may be noticed in the short-run in a specific way. Grievance reduction, cost reduction, improved productivity, improved quality etc. can be used to evaluate the effects of development programmes.

Factors Influencing the Executive Development Processes in Organizations

1. Failure to train the managers will lead to ineffective and inefficient managers who negatively affect the organization’s performance.
2. In the absence of training and developmental avenues, the performing managers may get de-motivated 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.
3. The organizational performance may be affected by the loss of market shares, lower sales, reduced profitability, etc.
4. The absence/shortage of trained and skilled managers makes 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.
5. 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.
6. 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.

Executive Development and E-learning:

The IT environment has, in a way, created challenges and also opportunities for organizations. The challenges include the rapid pace of changes, and on the opportunities front, it has provided the following advantages-

• Knowledge management has become easy for implementation. In the traditional environment, sharing of intellectual resources and knowledge was a herculean task. Organizations had to prepare, print, and mail the circulars across the organization for the dissemination of information, which frequently led to the obsoleteness of information by the time the employees, because of the time gap, received it.

Further, it was tough for the organiza­tions to come up with strategies to continuously collect, update, and dissem­inate the information.

• Knowledge management has provided various forums such as Intranets, on-line discussion forums, expert panels, etc.
• E-learning has made learning easy, irrespective of the time and distance factors, e-learning has led to the empowerment of employees, since the employers are now able to decide upon the pace and content of learning, depending on their requirements.

The above developments have affected the executive development process in a significant way and have helped in transforming the brick-and-mortar learning scenario to an e-learning scenario.

Important Methods of Executive Development: On the Job Techniques and Off the Job Techniques

The methods of executive development are broadly classified into two broad categories:

1. On the Job Techniques.
2. Off the Job Techniques.

1. On the Job Techniques:

On the job development of the managerial personnel is the most common form which involves learning while performing the work. On the job techniques are most useful when the objective is to improve on the job behaviour of the executives. This type of training is inexpensive and also less time consuming. The trainee without artificial support can size up his subordinates and demonstrate his leadership qualities.

The following methods are used under on the job training:

(i) Coaching:

In this method the immediate superior guides and instructs his subordinates as a coach. It is learning through on the job experience because a manager can learn when he is put on a specific job. The immediate superior briefs the trainees what is expected from them and guides them how to effectively achieve them. The coach or immediate superior watches the performance of their trainees and directs them in correcting their mistakes.

Advantages of the Coaching Method:

(a) It is the process of learning by doing.

(b) Even if no executive development programme exists, the executives can coach their subordinates.

(c) Coaching facilitates periodic feedback and evaluation.

(d) Coaching is very useful for developing operative skill and for the orientation of the new executives.

Disadvantages of the Coaching Method:

(a) It requires that the superior should be a good teacher and the guide.

(b) Training atmosphere is not free from the problems and worries of the daily routine.

(c) Trainee may not get sufficient time for making mistakes and learn from the experience.

(ii) Under Study:

The person who is designated as the heir apparent is known as an understudy. In this method the trainee is prepared for performing the work or filling the position of his superior. Therefore a fully trained person becomes capable to replace his superior during his long absence, illness, retirement, transfer, promotion, or death.

Advantages of Under Study Method:

(a) Continuous guidance is received by the trainee from his superior and gets the opportunity to see the total job.

(b) It is a time saving and a practical process.

(c) The superior and the subordinate come close to each other.

(d) Continuity is maintained when superior leaves his position.

Disadvantages of Under Study Method:

(a) The existing managerial practices are perpetuated in this method.

(b) The motivation of the personnel is affected as one subordinate is selected for the higher position in advance.

(c) The subordinate staff may ignore the under study.

(iii) Job Rotation:

Job rotation is a method of development which involves the movement of the manager from one position to another on the planned basis. This movement from one job to another is done according to the rotation schedule. It is also called position rotation.

Advantages of Job Rotation:

(a) By providing variety in work this method helps in reducing the monotony and the boredom.

(b) Inter departmental coordination and cooperation is enhanced through this method.

(c) By developing themselves into generalists, executives get a chance to move up to higher positions.

(d) Each executive’s skills are best utilized.

Disadvantages of Job Rotation:

(a) Disturbance in established operations is caused due to the job rotation.

(b) It becomes difficult for the trainee executive to adjust himself to frequent moves.

(c) Job rotation may demotivate intelligent and aggressive trainees who seek specific responsibility in their chosen responsibility.

(iv) Special Projects Assignment:

In this method a trainee is assigned a project which is closely related to his job. Further sometimes the number of trainee executives is provided with the project assignment which is related to their functional area. This group of trainees is called the project team. The trainee studies the assigned problem and formulates the recommendations on it. These recommendations are submitted in the written form by the trainee to his superior.

Advantages of the Special Projects:

(a) The trainees learn the work procedures and techniques of budgeting.

(b) The trainees come to know the relationship between the accounts and other departments.

(c) It is a flexible training device due to temporary nature of assignments.

(v) Committee Assignment:

In this method the special committee is constituted and is assigned the problem to discuss and to provide the recommendations. This method is similar to the special project assignment. All the trainees participate in the deliberations of the committee. Trainees get acquainted with different viewpoints and alternative methods of problem solving through the deliberations and discussions in the committee. Interpersonal skills of the trainees are also developed.

(vi) Multiple Management:

This method involves the constitution of the junior board of the young executives. This junior board evaluates the major problems and makes the recommendations to the Board of Directors. The junior board learns the decision making skills and the vacancies in the Board of Directors are filled from the members of the junior board who have sufficient exposure to the problem solving.

(vii) Selective Readings:

Under this method the executives read the journal, books, article, magazines, and notes and exchange the news with others. This is done under the planned reading programmes organized by some companies. Reading of the current management literature helps to avoid obsolescence. This method keeps the manager updated with the new developments in the field.

2. Off the Job Training Programme:

The main methods under off the job training programme are:

(i) Special Courses:

Under this method the executives attend the special courses organized by the organisation with the help of the experts from the education field. The employers also sponsor their executives to attend the courses organized by the management institutes. This method is becoming more popular these days but it is more used by the large and big corporate organisations.

(ii) Case Studies:

This method was developed by Harvard Law professor Christopher C. Langdell. In this method a problem or case is presented in writing to a group i.e. a real or hypothetical problem demanding solution is presented in writing to the trainees.

Trainees are required to analyze and study the problem, evaluate and suggest the alternative courses of action and choose the most appropriate solution. Therefore in this method the trainees are provided with the opportunity to apply their skills in the solution of the realistic problems.

(iii) Role Playing:

In role playing the conflicting situation is created and two or more trainees are assigned different roles to play on the spot. They are provided with the written or oral description of the situation and roles to play. The trainees are then provided with the sufficient time, they have to perform their assigned roles spontaneously before the class. This technique is generally used for human relations and the leadership training. This method is used as a supplement to other methods.

(iv) Lectures and Conferences:

In this method the efforts are made to expose the participants to concepts, basic principles, and theories in any particular area. Lecture method emphasizes on the one way communication and conference method emphasizes on two way communication. Through this method the trainee actively participates and his interest is maintained.

(v) Syndicate Method:

Syndicate refers to the group of trainees and involves the analysis of the problem by different groups. Thus in this method, 5 or 6 groups consisting of 10 members are formed. Each group works on the problem on the basis of the briefs and the backgrounds provided by the resource persons. Each group presents their view on the involved issues along with the other groups.

After the presentation these views are evaluated by the resource persons along with the group members. Such exercise is repeated to help the members to look into the right perspective of the problem. This method helps in the development of the analytical and the interpersonal skills of the managers.

(vi) Management Games:

A management game is a classroom exercise, in which teams of students compete against each other to achieve certain common objectives. Since, the trainees are often divided into teams as competing companies; experience is obtained in team work. In development programmes, the management games are used with varying degrees of success. These games are the representatives of the real life situations.

(vii) Brainstorming:

It is a technique to stimulate idea generation for decision making. Brainstorming is concerned with using the brain for storming the problem. It is a conference techniques by which group of people attempt to find the solution for a specific problem by amazing all the ideas spontaneously contributed by the members of the group. In this technique the group of 10 to 15 members is constituted. The members are expected to put their ideas for problem solution without taking into consideration any type of limitations.

Advantages

Enhances Better Customer Service

CRM systems provide businesses with numerous strategic advantages. One of such is the capability to add a personal touch to existing relationships between the business and the customers. It is possible to treat each client individually rather than as a group, by maintaining a repository on each customer’s profiles. This system allows each employee to understand the specific needs of their customers as well as their transaction file.

The organization can occasionally adjust the level of service offered to reflect the importance or status of the customer. Improved responsiveness and understanding among the business employees results in better customer service. This decreases customer agitation and builds on their loyalty to the business. Moreover, the company would benefit more by getting feedback over their products from esteemed customers.

The level of customer service offered is the key difference between businesses that lead the charts and those that are surprised with their faulty steps. Customer service efficiency is measured by comparing turnaround time for service issues raised by customers as well as the number of service errors recorded due to misinformation.

A good business should always follow–up with customers on the items they buy. This strategy enables a business to rectify possible problems even before they are logged as complaints.

Facilitates discovery of new customers

CRM systems are useful in identifying potential customers. They keep track of the profiles of the existing clientele and can use them to determine the people to target for maximum clientage returns.

New customers are an indication of future growth. However, a growing business utilizing CRM software should encounter a higher number of existing customers versus new prospects each week. Growth is only essential if the existing customers are maintained appropriately even with recruitment of new prospects.

Increases customer revenues

CRM data ensures effective co-ordination of marketing campaigns. It is possible to filter the data and ensure the promotions do not target those who have already purchased particular products. Businesses can also use the data to introduce loyalty programs that facilitate a higher customer retention ratio. No business enjoys selling a similar product to a customer who has just bought it recently. A CRM system coordinates customer data and ensures such conflicts do not arise.

Helps the sales team in closing deals faster

A CRM system helps in closing faster deals by facilitating quicker and more efficient responses to customer leads and information. Customers get more convinced to turn their inquiries into purchases once they are responded to promptly. Organizations that have successfully implemented a CRM system have observed a drastic decrease in turnaround time.

Enhances effective cross and up selling of products

Cross–selling involves offering complimentary products to customers based on their previous purchases. On the other hand, up–selling involves offering premium products to customers in the same category. With a CRM system, both cross and up selling can be made possible within a few minutes of cross– checking available data.

Apart from facilitating quicker offers to customers, the two forms of selling helps staff in gaining a better understanding of their customer’s needs. With time, they can always anticipate related purchases from their customer.

Simplifies the sales and marketing processes

A CRM system facilitates development of better and effective communication channels. Technological integrations like websites and interactive voice response systems can make work easier for the sales representatives as well as the organization. Consequently, businesses with a CRM have a chance to provide their customers with various ways of communication. Such strategies ensure appropriate delivery of communication and quick response to inquiries and feedback from customers.

Makes call centers more efficient

Targeting clients with CRM software is much easier since employees have access to order histories and customer details. The software helps the organization’s workforce to know how to deal with each customer depending upon their recorded archives. Information from the software can be instantly accessed from any point within the organization.

CRM also increases the time the sales personnel spend with their existing customers each day. This benefit can be measured by determining the number of service calls made each day by the sales personnel. Alternatively, it could also be measured through the face–to–face contact made by the sales personnel with their existing customers.

Enhances Customer Loyalty

CRM software is useful in measuring customer loyalty in a less costly manner. In most cases, loyal customers become professional recommendations of the business and the services offered. Consequently, the business can promote their services to new prospects based on testimonials from loyal customers. Testimonials are often convincing more than presenting theoretical frameworks to your future prospects. With CRM, it could be difficult pulling out your loyal customers and making them feel appreciated for their esteemed support.

Builds up on effective internal communication

A CRM strategy is effective in building up effective communication within the company. Different departments can share customer data remotely, hence enhancing team work. Such a strategy is better than working individually with no links between the different business departments. It increases the business’s profitability since staff no longer have to move physically move while in search of critical customer data from other departments.

Facilitates optimized marketing

CRM enables a business understand the needs and behavior of their customers. This allows them to identify the correct time to market their products to customers. The software gives ideas about the most lucrative customer groups to sales representatives. Such information is useful in targeting certain prospects that are likely to profit the business. Optimized marketing utilizes the business resources meaningfully.

Disadvantages of Customer Relationship Management

Costly:

Implementation of CRM system requires huge cost to be spent by the business. CRM software are too costly as it came with different price packages as per the needs of organizations. It increases the overall expenses of business and may not be suitable for small businesses.

Training:

For proper functioning of CRM, trained and qualified staff is required. It takes a huge cost and time for providing training to employees regarding CRM systems. They need to learn and acquire information regarding CRM software for a proper understanding of it. All this takes large efforts both in terms of money and time on the part of the organization.

Security Issues:

Another major drawback with CRM is the insecurity of data collected and stored. All of the data collected is stored at one centralized location which has a threat of being lost or hacked by someone. Employees may add inaccurate data or manipulate figures leading to wrongful planning.

Eliminates Human Element:

CRM has eliminated the involvement of humans as it works on a fully automated system. Whole Data is collected and processed automatically through CRM software. A company relationship with its customers can be properly managed through direct interaction between peoples and its staff. Loss of human touch may cause customers to shift anywhere else thereby reducing sales and revenue.

Third Party Access:

CRM data can be obtained and misused by other parties. There have been many cases where web hosting companies take and sells CRM data to the third party. Various sensitive data about customers may get into the wrong hands and cause loss to peoples.

Link Salary and Status Realistically to the Performance Appraisals

Most personnel departments have a very narrow outlook to appraisals. The general view is to receive the appraisal forms at a date (which usually is the deadline), issue instructions regarding increments and promotions, receive the data regarding the same and they issue letters to the concerned employee informing of their salary increase. The appraisal process gets polluted as the appraiser and appraise have at the back of their minds promotion and salary increase, rather than performance plans and participative reviews. This dilutes the objectives of appraisal to great extent. In fact, if organizations create, a culture of continuous feedback on the performance they would be making the appraisal system more relevant. Several organizations have already started delinking performance appraisal from salary increase.

Making Objectives of Performance Appraisals Clear to All Employees

If performance appraisal should not directly be linked to salary increase the question then arises, what should the objectives of performance appraisals be that could be realistically achieved?

• To do joint goal setting, and link the goals to the organizational objectives
• To provide role clarity by defining Key Result areas for Accounting.
• To establish a level of performance in the current job and seek ways of improving it.
• To identify potential for development and to support the total process of planning.
• To increase communication between the appraiser and the appraise.
• To identify factors that facilitate performance and other factors that hinder performance.
• To help the employees identify and recognize their own strengths and weaknesses. To make them assess their own competencies and how the same can be multiplied and improved.
• To generate data about the employee for various decisions like transfers, rewards, job-rotation, etc.

Focus on Developmental Appraisals

Managers should develop part ownership in the employee’s future. Any good appraisal system should focus on developmental appraisal. Developmental appraisal mean that an organization needs to develop not just isolated performance appraisal tool/system, but the total frame work for the individuals development, improvement in job and level of competence and preparing employees for future jobs. Thus, appraisal of people, which is a part of the total HRD system, lies to be linked to long-term development activity and carrier planning.

Organizations have to show vision for the future. Vision, strategies and objectives will give rise to individual objectives and performance standards. The immediate rewards and recognition do not lead to enduring performance and upgrading of competence and therefore are not real motivators. The appraisal as a tool not only gives the individual and the organization the idea of where the individual stands in terms of his skills, competencies and abilities, but also monitors the process of growth and development, together with the inputs that are required to develop a high level of competence by individuals.

Let Employees Appraise Their Own Performance

Subordinates need feedback more often on their performance. The best way to do it is to let them appraise their own performance.

Self-appraisal would;

• Motivate the employee to take more responsibility for his/her own performance.
• Focus on the job behavior only.
• Reduce ambiguity in performance and focus on change in job behavior.

Create a Climate for Open Appraisals in Organizations

In most organizations, the concept of open appraisal is misunderstood. Open appraisal does nut mean that the appraisal ratings are shown by the subordinate, and his/her signature is then obtained. What it does mean that both the appraiser and the appraise share their views on performance with each other, identify the areas of improvement and work towards it. One of the objectives of open communication between the appraiser and the appraise is to bring them together to solve organizational problems and performance related problems. The quality of ratings is likely to improve if there is shared understanding between the appraiser and the appraise.

Muscle Builds the Organization

In today’s competitive world, raising performance goals is essential. This entails analyzing the company’s current situation, projecting the future, establishing higher expectations, and selling the top management on the upgrading process and developing an action plan. Muscle builds the organization by;

• Enhancing your own performance
• Accelerating the professional growth of the best performers
• Not tolerating managerial performers. One cannot muscle build the organization, unless marginal performers are replaced.
• Developing multiple skills and competencies by worshiping success and potential.