COMPANIES NEED to create stronger links between their management development programs and corporate strategy, according to David Edwards, CEO of the Committee for Economic Development of Australia (CEDA)
COMPANIES NEED to create stronger links between their management development programs and corporate strategy, according to David Edwards, CEO of the Committee for Economic Development of Australia (CEDA).
Commenting on a CEDA study which found that Australian employers need to improve their approach to management development, Edwards noted the importance of a business focused approach to HR.
“It’s no coincidence that the highest performing workplaces have strong ties between their corporate and HR strategies,” he said.
The study found managers believe that management development programs are very beneficial and help them to think strategically. Yet, management development is not seen as a priority by top management in nearly half the organisations in the sample.
Additionally, HR managers perceive a significantly stronger link between management development efforts and corporate strategy and also believe that line management support is strong, compared to other managers in the study.
Surprisingly, HR managers perceived significantly lower beneficial effects of external management development programs compared to other managers.
The study recommended HR managers need to gain a better understanding of corporate strategy and implement management development initiatives, policies and procedures that reinforce corporate strategy.
“HR managers overestimate the real link between management development efforts and corporate strategy and the support that line management provides to subordinates,” the report said.
“HR managers are not actively involved in the strategic planning process and do not have an in-depth understanding of the business issues facing their organisation.
“Since HR managers are usually the architects of the organisation’s management development strategy, failure to fully understand corporate strategy is likely to reduce the effectiveness of management development efforts.”
Failing to use management development effectively would compromise Australia’s ability to compete internationally, said Brian D’Netto, a senior lecturer in HR management at the Mt Eliza Business School, and author of the report.
“Management development is a necessity, and becoming more so every day because of the rapid pace of change in workplaces. If we don’t create first-class human capital, we will be left behind in the global economic race.
“To be effective, management development must be linked to corporate strategy, it must be systematic, and organisations must allow managers to apply skills learned in development programs,” D’Netto said.
“By and large, this is not happening.”
The study, which surveyed 206 managers in 153 organisations, also found younger people are being overlooked for management development, and that women derive fewer benefits from attending programs.
“It is sad to note that female managers perceived management development to be significantly less effective than their male counterparts,” the report said.
“Improvements in job satisfaction, productivity, customer management and motivation are significantly less for female managers when compared to male managers.
“It is possible female managers may not be getting job opportunities that allow them to utilise theirnew skills.”
