Executive development in hrm is one of the forms of training programs which are conducted in an organization. It allows employees to be better leaders and improve their performance. On the other hand, top management can identify future leaders.
This form of training includes theoretical and practical knowledge. An executive development program enhances the employee’s skills and knowledge for better future performance and problem-solving.
What Is Executive Development In HRM?
Executive development in hrm refers to the training and development programs which are conducted in an organization to develop future managers and leaders.
The term executive is referred to signify the top-level management which consists of 5- 10% of the organization.
This executive training helps the organization to find dedicated, loyal employees with good leadership skills for growth and secure the organization future.
For example, Amazon with 1298000 employees worldwide offers a training and leadership program which is a month-long training program. In which Amazon pays 95% of tuition fees. Which develops the skills of how to work from home.
Definition Of Executive Development In HRM
Executive development is a process of bringing change in behaviour, performance and adaptability. It helps in gaining skills, knowledge, and growth to become a better leader.
The purpose of executive development in hrm is to develop an attitude of adaptability to new and tough situations. So, it will improve their decision and problem-solving skills.
Need Of Executive Development In HRM
Executive Development in HRM has become an important part of organization growth. The need for executive development is different for everyone. So, we are gonna discuss how the need for executive development in hrm is different for organization and person.
It is important to identify the need prior for both organization and employees.
Before going to the process of executive development organization make sure that they know the requirement of what kind, how many executives and managers are required now and in future.
So, let’s start discussing why there is a need for executive development in hrm for the organization and personally.
First, we discuss the need for an organization to have executive development programs. The organization has to secure its future and for good growth and development, it requires great leadership.
It takes years to build great leaders who can lead to greater paths. Here are some needs of the organization for executive development in HRM:
Appraisal of Present Managerial Talent
The very first need for an organization is to motivate and employee retention. Moreover, there is a need to appreciate current and present talent. Most of the time organizations like to promote their talents i:e their employees.
For example, Sundar Pichai started in product management at Google and later he is appointed as the CEO of Alphabet Inc. and its subsidiary Google.
Organizations need to build higher productive and efficient levels of their employees. Plus, there is a constant need to improve employees’ problem solving and tackling tough environment skills.
Inventory of Executive Manpower
With a constantly changing environment, employees’ preference is also kept on changing. So, an organization needs to develop an inventory of executive manpower, to have sufficient leadership in a changing environment.
An organization with a strong inventory of executive manpower builds a strong and futuristic image in the market.
It creates the need to start creating executives or leaders from the beginning of peoples career to build strong leaders and dynamic executives.
An organization needs for executive development surface whenever there is a discussion of growth or plans. As these bases with the future leaders. The organization plans its future growth plans according to the executive power they have.
Many business deals and investments, mergers, lack out because of no young and future leadership.
An organization with large executive leadership or young leadership can have longer and bigger growth plans.
As we discussed earlier that with a changing environment it’s important to have strong leadership and as the environment is becoming more competitive, the need for executive development in hrm is also growing. Since the competition is getting tougher to break an organization needs to build plans which are futuristic and have strong leaders to lead the correct way.
For example CEO of Snapchat, Evan Spiegel is 30 years old as of the year 2021. As, executive management has strong leadership skills organization can give high competition in a highly competitive industry- social media.
After we discussed the reason for executive development at the organization level, it’s time to understand why it is equally important for a person.
As the person starts gaining experience in their career, it is obvious to expect some promotions and development. But to handle bigger post/job titles it’s important to have some additional skills which are required for higher positions.
Here are the
Individual career planning
A very first need of an individual for executive training is to plan their career. As every person wants to be at their career in their 40s. For such success, it is important to plan your career and to learn all required skills.
For example, a lot of working people e do their MBA or any masters from a distance or regular schools, while working or they take a break. This education is required to take their career to the next level.
Employees always struggle with career planning. As employees want to be satisfied and have constant growth. Companies offer career planning counselling to improve their work experience and satisfaction.
The need for executive development in HRM for individuals is to get appraisals and their financial growths. To achieve their constant career growth and success every individual needs training and development.
So, an individual needs constant growth to achieve their appraisal and for that employees needs to skilled and efficient. As a result, employees need to enrol in executive training.
These were the reasons for executive development in HRM at the organization and individual level.
Factors Influencing Executive Development Training
There are some reasons or factors which influence the company to create executive development in HRM. An organization views some factors change in their environment, which influences them to start executive development. Here are factors influencing executive development in HRM:
- One of the leading factors influencing executive development is any kind of loss faced by the company. It can be lower sales, loss of shares, low profits etc.
- Changing the environment is forcing companies to upgrade their employees. As the environment is kept on changing, companies are forced to build their strong future leaders.
- Another factor influencing executive development in HRM is demotivated employees. With regular same work over and over employees get bored with their work. So, with executive development, it gives them new opportunity and motivation.
- A company always needs to keep an inventory of executives. So, when a firm feels their executive inventory is getting low or there is a need to restock the inventory, executive training takes place.
- Wrong or no training to managers can lead to inefficiency, low productivity, poor leadership etc, which forces organizations to invest in executive development in HRM.
- Last but not least companies do feel the pressure of when their competitors are investing in training and getting good results. As a result, organizations feel competitive pressure to do the same.
These were the factors that influence an organization to invest in executive development in HRM.
Objectives Of Executive Development
Before choosing an executive development program a company needs to finalize the objectives for executive development in hrm.
An objective for executive development can be differential for optimizing the companies resources, plans, performance, techniques, changes etc.
So here are different objectives which companies set as there executive development training:
The organization constantly wants to improve its manager’s performance. In this objective company is determinant to educate its employees about new or update their skills, technology to improve their performance.
For example, Tata Motors provides its employees to regulate pieces of training. They have segregated their employee’s training programs for white and blue-collar employees, National Employability Enhancement Mission (NEEM) (for the blue-collar) which is used trains and enhances their existing knowledge and Learning Management System (LMS) which aims managers on strategy and technology(for the white-collar).
Organizations use these objectives to update with trends and polish their employee’s skills.
Preparation For Future Responsibilities
One basic objective which every organization develops for executive development in HRM is to prepare their second line of command or their future of line of command.
It takes years for an organization to build an executive who can lead the company in the right direction.
To Enhance Managers
One important objective which each organization aspires to is to enhance its managers to make them better leaders. These objectives are set when organizations desire to build good, strong and dynamic managers.
An organization brings constant changes. These changes are in process, quality or some more manager quality. In these cases, organizations set these objectives to change the introduction.
For example, with rapid changes in technology, organizations keep on bringing changes in their IT structure. And, to implement these changes, it is important to guide managers.
This objective brings more adaptability, as the managers have to implement these changes it helps them to create good feedback from their team.
Implementing Latest Management Techniques
In executive development in hrm an organization wants to develop the latest management techniques and wants its management to be as updated as the outside world. To improve the company’s productivity management keeps on experimenting to change old or traditional techniques.
To implement these changes management keeps bringing the executive training. O keep their managers competitive and dynamic.
To Build Competitive Executives
A company keeps on creating executive development in HRM to build its executive task force highly competitive. With the constant changes and increasing competition in the business, and environmental organization requires leaders who can understand and compete in these environments.
So, companies create executive training to train their future executives about the changing environment, competition, changes in different industries etc.
Employee Career Planning
In today’s world where employees spend their maximum time in offices, career planning has become a crucial part. An organization takes full responsibilities to support its employees.
So, to guide their employees about their future opportunities a company builds strong executive development programs.
For example, Digital Ocean is a New York-based company that provides developers and cloud services worldwide. They allow their employees to map down what they are expecting to achieve this year and then how their goals can be linked to their department and companies goals.
Acknowledge New Talent
The process of executive training is continuous as hiring and leaving is ongoing. So, a company wants to acknowledge their new talents as well.
A process of creating or training to become executives starts from the hiring of employees and acknowledging their talent about leadership, skills in their fields etc.
These were the different objectives that companies set to achieve their desired goals from executive training.
Importance of Executive Development
It becomes difficult for people to understand why executive development is important. The growth of executive development in HRM has become an important part of companies, with continuous market growth, more competition, and changing technology. But, the development has its benefits as well. Here is the importance of executive development:
Dynamic Size of the Organization
A company with regular investment in executive development in HRM has a huge inventory of managers or executives. These organizations focus on creating future executives from the very beginning of their career. As a result, organizations always have the second line of command ready.
Companies with dynamic create the specified executives i:e executives in every specialization. It gives an organization a specialized and qualified leader in every field.
With this huge leadership support, an organization has high competitive and dynamic power.
Change In Technology
Another importance of executive development in HRM is the ease in bringing the change in technology in an organization. With rapid changes in technology and countdown changes in the environment, companies keep on bringing the changes in their organization.
For example, Amazon Technical Academy teaches employees about software engineering to build strong skills and capabilities. It creates a win-win situation for both employees and the company to enhance their professional careers.
So, training and developments train their managers to build an environment where quick changes are adaptable. Plus, train the managers about how to introduce a new change.
These days where training and development have become an integral and continuous part of companies. Executive Development in HRM has become more of social responsibility for the corporate world. As its awareness and its importance are very good the o them, it becomes the social responsibility of the companies towards young new employees.
As the first and second generation got their career opportunity with leadership development. It becomes their social responsibility to give the same opportunity to others.
The need for executive development in HRM is also increasing because the competition is increasing. With increasing competition, the value of good leadership is required. As a result, with this increasing competition companies invest more in leadership programs to build strong leaders.
As the environment is becoming competitive and their rapid changes it has become extremely important to build the executive who can be as competitive.
To survive and top these competitive environments, companies guide their future leaders, to have constant growth and development.
Few Skilled Managers
An organization needs constant leadership programs as the world is changing techniques and strategies are changing. So, it’s important to have leadership with skills and abilities.
In case the company’s managers are not efficient, which impacts on the company’s performance.
To keep the organization efficient it is important to keep training and developing the employees.
Changes In Social And Cultural Environment
Organizations always have to work according to the business environment. The external environment can be easily understood by the concept of PESTAL. As the social and cultural environment changes their beliefs about education and career.
With the growing belief in education and career, organizations have invested in employees ' career planning.
Plus engaging their employees with training, executive development in HRM. Moreover, it creates a ripple effect on organizations. It promotes the valve and image of the company.
It means that the process of training and development is not a one time process. It is a continuous process, which means that the benefits are also not one time. The process of executive development in HRM take place in:
- Lower Level Management
- Middle-Level Management
- Top Level Management
Plus, the different programs are designed according to the experience level of an employee. So, these programs create a huge leadership inventory for the organization.
Change in Labour-Management Relations
With the industrial revolution, the concept of labour and management relations has changed. Management now desires to build strong relations with its employees. Management has created an environment where their employees can grow.
Developing strong executive development HRM for their career growth, to showcase opportunities, attracts employees and their trust in an organization.
High competition, technology changes have brought more professionalism in the corporate world. But, the professional manner of working needs to build in an organization. To achieve this, organizations take help for executive development in HRM.
Continuous training and development among employees teach them more productive and efficient ways to work. With the high learning environment, organization leads to a more professional way of working.
So, these were the importance of executive development in HRM for organization and employees.
What is the Executive Development Program?
The executive development program- a training and development program that is used to create future leaders who can constantly strive to take on new challenges.
Executive Development in HRM programs can be divided into many different programs. The different executive development programs are divided according to the need and objectives.
Here is some condition to look for before finalising any executive development program:
Look for program rankings
This is one of the basic criteria which we look at before applying for the program, check for rankings, comments reviews etc.
Note: It is important to analyse programs which essential to your requirements and skills.
This is a very basic and crucial step to do because it will give you an idea of what is curriculum and the structure of the executive development program.
Flexible Curriculum and Structure
When you are looking for programs in executive development in hrm it’s important to choose a flexible program i:e program will have the flexibility to adapt to new things, trendy corporate tools or environments.
It is only effective to attend an executive development program when the program structure is updated and works with current trends.
Another thing to look at in the executive development program is the structure. The structure provides practical training, real-world exposure. Moreover, the structure should allow the skills of both business and leadership.
Program for your current stage of career
Another thing to look at in the executive development program is the entry-level or requirements. There are different leadership programs designed for different level of management.
As there are three different levels of management: top, middle and lower, the programs are also different in each level of management.
So, it’s important to choose a program that suits your career level.
One important thing to look at in executive development in hrm programs is how students are learning and how much engaging learning is involved.
Engaging learning involves:
- Projects related to Job
- Leadership and management coaching
- Interactive Lectures
- Different Industry Expeditions
- Individual Leadership Plan
Adopt a plan which involves these factors, which will provide you with the true skills and knowledge required in the corporate world.
An executive development program that can immediately apply the skills in your work. Choosing the program which can help you to implement the skills right away.
Choosing the program through which you can apply your skills immediately helps you to measure the progress and the value-added.
These kinds of programs help in implementing the skills in the right way and to solve the problems with leaders. So, it will give the smooth implementation of leadership in a person.
These were the few executive development program criteria on which you can evaluate the program before applying.
Leadership Development Training?
Leadership development training is designed to identify people with a high potential for becoming leaders. These individuals have the abilities and skills to pursue roles with high responsibilities and manage other people.
Leadership development training involves both hard and soft skills which are required by the leaders as they progress in their career.
For example, with the change in leadership roles leaders requires skills like conflict management, time management, listening etc to be efficient and productive in their future roles.
On the other hand, leaders on the senior-level need leadership development training because it is important to be updated with the latest technology and trends. Like, cloud computing, artificial intelligence, virtual reality. So, that they can update the company’s vision.
Why Is Leadership Development Important?
Leadership development important part of executive development in HRM. This process is used to train employees in leadership.
Leadership development training is a generic training program that organizations conduct with executive development programs.
So here are the reasons why leadership development important:
As leadership development training improves the manager’s soft skills, efficiency. A good executive finds different ways to improve an organization’s productivity, effectiveness. Results of the training can be easily seen in lower-level management.
Here are some indicators to measure:
- Errors In Production
- Cost Of The Product
- Wastage In organization
- Time To Complete A Task
Another leadership development important to an organization is that it helps to secure talent. Leadership development training allows excelling in their careers. As result companies have huge employee retention rates.
Moreover, with such great opportunities organization attracts young and new talent. So, such leadership development training makes sure companies do not have a shortage of talent.
Leadership development and training are considered a huge part when strategies are planned. As the success of strategies depends on future leadership. Moreover, while formulating and implementing strategic leadership development important.
An organization with huge investment in executive development in HRM, can easily implement strategies. And, good leadership can implement the strategy in the most effective and efficient way.
This is the most common leadership development important that can drive change in an organization very easily. Leadership development training creates the ability in a person to adapt to a new environment and skill to implement a change.
These were the few importance of leadership training and development. And how it benefits organizations and employees.
Methods of Executive Development
An executive development in HRM has different methods or strategies. Choice of method depends upon the objective of executive development training. Two broad categories in which methods of executive development is separate are:
- On the Job Techniques
- Off the Job Techniques
On the Job Techniques
These techniques of executive development are implemented while working in an office. That is why it is called on the job training. These are the most inexpensive methods of executive development in HRM. These activities used to improve behaviour and work process, job techniques.
Here are the different techniques which supervisor can opt for leadership development training:
In this technique, the position of one manager rotates from one position to another. A rotational schedule is prepared, and employees have to manage some other work. In the case of developing or enhancing some skills of managers, this method is widely famous.
Advantages of Job Rotation
- It improves the communication and work acknowledgement among the employees, inter departments.
- Optimal utilization of resources.
- Enhances managers skills.
- Motivation among employees helps in reducing boredom
- Opportunities for promotion
Disadvantages of Job Rotation
- It can be difficult to manage two different tasks which can cause errors. As result, organizations may have to face losses.
- Employees can disrupt their rotational job.
- Not every person can adapt to frequent changes very quickly.
It is the most common and oldest method of executive development in HRM. The simplest method where a senior officer instructs the junior on the job. A junior employee works as an assistant to a senior member.
Advantages Of Coaching
- Senior or supervisor plays the role of an instructor or guide.
- Process of learning while doing help in quick and accurate feedback and evaluation
- Most useful in operational and lower-level management
Disadvantages of Coaching
- The environment must be hassle-free, and the ease of learning should be there.
- A supervisor or guide needs a good instructor or a guide.
In this method of executive development in HRM, a subordinate is trained to become a second line of command in case of the absence of the senior. And, for future promotion as well. An understudy performs a few task of his supervisor as well.
Advantages of Under Study
- It is a good way to train an employee for a future position and a solution in case of the absence of a superior.
- A subordinate can learn an actual job from an experienced person.
- Cost-effective method
Disadvantages of Under Study
- It can demotivate and disrupt the harmony among all the subordinates.
- It promotes the existing practises of managers. No role in innovation.
In this method of executive training, a special committee is formed. Later, they provide a problem or assignment to all the employees and ask them to provide recommendations. In these types of methods, each employee has to take part. In this method employees viewpoint, problem-solving techniques and interpersonal skills are evaluated.
Advantages of Committee Assignment
- Committee Assignment provide creative and innovative ideas for the organization’s problems
- Employees’ opinion or feedback can be evaluated.
- A good way to evaluate interpersonal and logical skills.
Disadvantages of Committee Assignment
- Difficult to judge employees’ seriousness.
- Difficult to motivate employees.
Here are different methods of job methods of executive development in HRM.
Off the Job Techniques
Off the job, technique refers to the methods which are conducted in different locations, in different ways. These methods of executive development in HRM are expensive and detail study. Here are the different methods off the job training:
Meetings and Lectures
In these methods, there are meetings or conferences from different guides. Lectures are like classroom training in which the guide focuses on theoretical knowledge. In the case of lectures, only one person is the speaker. Whereas, the meeting is an open group discussion.
Advantages of Meetings and Lectures
- Helpful in explaining the concepts from basics.
- Motivating employees about the change.
- Employees feel more motivated after lectures or meetings.
Disadvantages of Meetings and Lectures
- Not applicable in case of practical process.
- Long lectures can become boring.
Special Courses refers to the method of off the job executive development in HRM in which top management design a special course. Top management design includes all the skills they desired to develop. In some cases, they outsource the task of design of course.
Advantages of Special Courses
- Organizations can develop the course according to their requirements and their needs.
- Top management design courses in such a way, that courses will cover all the required skills.
- Industry oriented.
Disadvantages of special Courses
- Expensive to design a course
In the case of the case study method, top management or guides present a case or any problem to subordinates. The case can be a hypothetical or real situation. Afterwards, employees have to provide a solution and alternate solutions.
Advantages of Case Studies
- It enhances analytical and problem-solving skills.
- Improves creativity and innovation
Disadvantages Of Case Studies
- To practical training
In the case of the role-playing method of executive development of HRM, guides create a conflict situation and employees are asked to play different roles in conflicting situations. In this situation employee problem solving and problem handling skills are analysed.
Advantages of Role Playing
- A near experience of a real situation.
- It is easy to analyse employee’ behaviour in a conflicting situation.
Disadvantages Of Role Playing
- Employees might not feel confident in playing their role in front of everyone.
A regular department or group in an organization is divide into more small groups. Sensitive training promotes communication among employees. To create sensitivity among groups. Plus group members appreciate other members’ efforts.
Advantages of sensitive Training
- Improves harmony in the organization
- Appreciation for pears
Disadvantages of Sensitive Training
- Costly Process
These were the different methods which are used in executive development in HRM.
Executive Development Process
Process for executive development includes steps from analysing the need for an organization to analysing individual needs to designing, conducting and evaluating the program. Process of executive development in HRM ic a continuous and dynamic process.
Because the process is ongoing and takes place at every level of management. In order to fulfil the need for executive development in an organization, here are the steps for the executive development process:
Analysing Development Needs
Firstly, an organization needs to analyse its need for leadership or executive training and development. According to this step seniors or supervisors, identify the potential of their subordinates. And, identify the traits which can be improved or developed in order to become a good executive.
Also, this step takes place at the organizational level as well, top-level management identifies the departments which require training and development.
Note: Need analysing has to be conducted in all departments, level of management- at individual, group and organizational level to fully optimize training and development needs.
Appraisal of Current Talented Managers
After analysing the need for training and development, supervisors select managers which have the potential for leaders and the ability to become executives.
However, there is still scope for executive development and training. But, the organization appreciates the current talent, to motivate and guide employees in the right direction. Moreover, the organization provides appraisal to such talent.
As every organization’ top management decides about appraisals but it is equally important to define those parameters for the entire organization. Parameters in executive development in HRM can be a set of skills abilities that are necessary for an executive.
Moreover, parameters help organization and individuals to measure their performance and to set their targets and desired goals.
Plus, it shows the fair working culture in an organization and helps in for future appraisals.
Executive Manpower Inventory
Afterwards, an executive inventory is prepared which includes all the relevant information related to managers or executives. For instance, basic contact information, skills and abilities, areas where training and development are required.
Thus, the organization creates a separate file for every employee, which requires training and development for an executive level.
Plan For Individual Development
After an organization has created an inventory of manpower, an organization starts creating an individual plan. For instance, some employees will require training in soft skills or some might need technical skills. Although there might be some plans which will overlap each other.
For example, 10 employees include in executive inventory and out of 4 needs technical knowledge from the intermediate level. Whereas, others require training in soft skills.
However, a separate plan of training and development creates individual skills and workflow more efficient and effective by executive development in HRM.
Creating Training and Development Programes
Designing a training and development program is one of the import parts of executive development in HRM. Since it involves evaluating the current level of skills and evaluating the skills with the set parameter. Basically, the structure of the training depends upon the level of skills.
For example, for technical skills on the job training is preferred and for soft and technical skills off the job is preferred.
Top-level management and human resource department are responsible for designing and conducting the training.
Conducting Development Program
In conducting a development program it is important for the human resource department to schedule the training in such a way it won’t affect the office work. Plus, it is equally important to design training in such a way it won’t exhaust the employees.
So, it is important to keep in mind to conduct the training in such a way employees can benefit most from the process.
Evaluating Development Program
In last, the organization needs to conduct an evaluation series. According to the process in executive development in HRM, the effectiveness and efficiency compared to the parameter.
Factors or variables on which an organization can conduct the evaluations can be: Cost of the product Errors Wasage Time Management Work Flow Process
Since there is a huge cost involved in conducting training and development. So, its important to evaluate the position.
Executive development in HRM follows the 7 steps for conducting training and development.
Obstacles in Executive Development Training
As we discussed the process for executive development in HRM, there are equal obstacles that can disrupt the process. There is resistance among the employees. Time management in office work and training.
What and How development and training will benefit organization and employees?
So, its important to create sound process of executive development training to avoid obstacles.
Here are the obstacles in leadership development training:
social and cultural environment
First, obstacles are the social and cultural environment– People usually feel very secure and safe with their families. And, the thought of leaving or spending extra time away from their secure surroundings can drop the idea from their head. Plus there is an ideology of not learning and education after a certain age.
stability, job security, benefits, pension, retirement security etc
Second, obstacles are stability, job security, benefits, pension, retirement security etc. When an employee has given security and safety with their jobs they become reluctant to change or adapt. In these cases, employees feel secure in their job and they don’t feel the need to change or grow.
top management or senior or supervisor
Relations from a top management or senior or supervisor. There are often when the seniors do not provide an opportunity to their subordinates out of jealousy, ego etc. These can become obstacles for young and junior talent to grow. And, the organization will not be able to fully optimize their talent.
design of the program
The fourth obstacles in leadership development training can be the design of the program. It includes things from time management, program curriculum, instructors etc. It is important to plan:
- How will the program take place?
- What will be the timings of the training?
- How will employees manage work?
- Who will instruct the training?
- What kind of training?
People often feel demotivated from the idea of putting extra efforts or boring lectures into training. So, it is important in executive development in HRM to plan every aspect very carefully.
Focusing on obstacles and improving plans for executive development and training programs can show a lot more enrollments. These are the obstacles that are faced in executive development in HRM.
Evaluation Of Executive Development Program
Last but not least topic to know about executive development in HRM is the evaluation of executive development tanning. And in every method, it’s important to determine the position of an organization after the training.
So, an organization can evaluate a few simple parameters to determine the companies position and benefits from leadership development training:
- The very first is to evaluate the organization’s objectives with activities in training. Training will provide or enhance which skills?
- To measure the managers before and after efficiency and effectiveness in their performance.
- Measuring the ROI– the cot of training and the return from training. Like measuring the cost of the product, errors, time wastage etc, to evaluate true ROI.
- Whether the quality of the product and the process has changed.
- By evaluating from the reaction of everybody in the organization. Determining the thought process of people before and after the training.
- One of the last measures is to evaluate after training processes effectiveness and efficiency.
So these were the few factors or variants on which a company can evaluate the executive development In HRM.