MANAGEMENT DEVELOPMENT STRATEGIES USED BY INSURANCE COMPANIES IN KENYA

By JUMBA, CAROLYN ASIGO

Research Project submitted in Partial Fulfillment of the Requirements of Master of Business Administration (MBA) Degree, School of Business, University of Nairobi

DECLARATION
This research project is my original work and has never been presented in any other university or college for the award of degree or diploma or certificate.

Signature:

-----------------------------------------------------Carolyn Asigo Jumba Registration No. D61/P/8030/00 15 / 11 / 2008

Date:

This research project has been submitted for examination with my approval as the University Supervisor. Signature: ---------------------------------------------------Mr. Duncan Ochoro Lecturer, Department of Business Administration School of Business, University of Nairobi

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ACKNOWLEDGEMENT My appreciation goes to all who made it possible for me to accomplish the task of completing this project. To the almighty God for his strength and wisdom. To my supervisor, Mr. Duncan Ochoro for his patience and brilliant guidance. To my husband Patrick for his love, patience and inspiration. To my children, Jade and Nigel for their understanding and support as I prepared for this work.

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DEDICATION This research project is dedicated to my husband Patrick, and children Jade and Nigel who offered support and encouragement throughout the period.

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TABLE OF CONTENTS
TABLE OF CONTENTS ................................................................................................................ v LIST OF TABLES ........................................................................................................................ vii ABSTRACT ................................................................................................................................... ix INTRODUCTION .......................................................................................................................... 1 1.1 Background ........................................................................................................................... 1 1.1.1 Management Development ................................................................................................ 2 1.1.2 Factors Influencing Strategies for Management Development in organizations ............... 4 1.2 Insurance Companies In Kenya ............................................................................................ 5 1.3 Statement of the Problem ...................................................................................................... 6 1.4 Objectives of the Study ......................................................................................................... 7 1.5 Importance of the Study ........................................................................................................ 7 CHAPTER TWO ............................................................................................................................ 9 LITERATURE REVIEW ............................................................................................................... 9 2.0 Introduction ........................................................................................................................... 9 2.1 Management Development ................................................................................................... 9 2.2 The Managers job: Roles and Competencies..................................................................... 10 2.3 Planning Management Development .................................................................................. 12 2.3.1 Management Development Activities .............................................................................. 13 2.3.2 Managing the Development Process ................................................................................ 15 2.4 Approaches to Management Development ......................................................................... 16 2.4.1. Learning through Work (Informal Management Development) ..................................... 16 2.4.2 Formal Approaches to Management Development ......................................................... 18 2.4.2 (i) Promotion (Moving to a new Job)............................................................................... 18 2.4.2 (ii) Fertilization within the Job (Opportunities for Learning) .......................................... 18 2.4.2 (iii) Learning Within The Job ( Feedback, Facilitation And Support)............................. 20 2.4.3 Planned Development off the Job .................................................................................... 21 2.5 Measuring the Effectiveness of Management Development .............................................. 24 2.6 Challenges / Issues in Management Development ............................................................. 25 2.7 Management Development: Summary and Conclusion...................................................... 28 v

RESEARCH METHODOLOGY .................................................................................................. 29 CHAPTER THREE....................................................................................................................... 29 3.1. Research Design ................................................................................................................. 29 3.2 Population ........................................................................................................................... 29 3.3 Data Collection ................................................................................................................... 29 3.4 Data Analysis ...................................................................................................................... 29 CHAPTER FOUR ......................................................................................................................... 31 DATA ANALYSIS AND FINDINGS ......................................................................................... 31 4.1 Introduction ......................................................................................................................... 31 4.2 General Information ............................................................................................................ 31 4.3 Strategies Used For Management Development ................................................................. 33 CHAPTER FIVE........................................................................................................................... 52 DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS ........................................... 52 5.1 Discussions.......................................................................................................................... 52 5.2 Conclusions ......................................................................................................................... 56 5.3 Recommendations ............................................................................................................... 57 REFERENCES.............................................................................................................................. 58 APPENDICES .............................................................................................................................. 61 Appendix 1: Insurance Companies in Kenya ............................................................................ 61 Appendix II: Mumfords approaches to development .............................................................. 63 Appendix III: Burgoynes Model .............................................................................................. 64 Appendix IV: Letter of Introduction ......................................................................................... 65 Appendix V: Study Questionnaire ............................................................................................ 66

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LIST OF TABLES Table 1: Development Needs of Different Levels of Management .............................................. 14 Table 2: Informal Learning Opportunities .................................................................................... 17 Table 3: Duration the Organization Has Been In Operation ......................................................... 31 Table 4: Ownership of the Organization ....................................................................................... 31 Table 5: Duration of Working in the Organization ....................................................................... 32 Table 6: Number of Managers in the Organization ...................................................................... 32 Table 7: Expatriates in the Firm .................................................................................................... 33 Table 8: Strategic Plan, Vision, Objectives, Formal Statement and Business Plans .................... 33 Table 9: Role of Management Development in the Organization ................................................ 33 Table 10: Internal Factors Influencing Management Development in the Organizations ............ 34 Table 11: Impact of External Factors on Management Development in the Organization .......... 35 Table 12: Level of General Management Skills in the Company ................................................. 36 Table 13: Functional Management Skills within the Company .................................................... 36 Table 14: Identifying Needs for Improved Skills or Knowledge.................................................. 37 Table 15: Existing potential skills and competence ...................................................................... 38 Table 16: Processes Helpful In Defining the Effectiveness of Individual Manager and Their Development Needs ...................................................................................................................... 39 Table 17: Informal Learning Opportunities Worked For the Organizations ................................ 40 Table 18: Level of Contribution Made By the Processes in the Development of Managers ........ 41 Table 19: Factors That Have Attributed To the Success of Formal Management Development Processes ....................................................................................................................................... 42 Table 20: Ownership of the management development scheme................................................... 43 Table 21: Major Change in the Appraisal Processes over the Last 5 Years ................................. 44 Table 22: Bases of the Appraisal Process ..................................................................................... 45 Table 23: Potential Objectives Focused When Setting Up an Appraisal Scheme ........................ 45 Table 24: Development Processes/Activities Used By the Organizations ................................... 47 Table 25: Whether Sufficient Management Training Is Being Undertaken By the Managers at Present ........................................................................................................................................... 48

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Table 26: Overall Level of Change in Provision of Management Development Services and Supports Required For the Managers............................................................................................ 48 Table 27: Current Contribution of a Range Of Education and Training Providers of Management Development within the Company ............................................................................................... 49 Table 28: Barriers to Management Training and Development ................................................... 50 Table 29: Budget Allocated To the Training and Development of Managers .............................. 51

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ABSTRACT Management development has been described as having three main components: Management education, Management Training and on- the- job experiences (Keys & Wolfe, 1988). Management Education can be defined as the acquisition of conceptual knowledge and skills in formal classroom situations in degree granting institutions (Keys & Wolfe, 1988). Management Training focuses more on providing specific skills or knowledge that could immediately be applied within an organization and/or a specific position or set of positions within an organization (Keys & Wolfe, 1988). On the Job experiences are planned or unplanned opportunities for a manager to gain self knowledge, enhance existing skills and abilities, or obtain new skills or information within the context of day to day activities e. g. mentorship, coaching, assignment to a task force. The objectives of the study were to establish the strategies used for management development among insurance companies in Kenya and also to determine the factors that influence strategies for management development among insurance companies in Kenya. The study used a descriptive census survey design. The target population was human resource managers of various insurance companies. The researcher sampled 41 human resource managers although the insurance companies that responded and returned the questionnaire were 30. Once the questionnaires were received, they were edited to ensure that they were well completed and the responses consistent. The data collected was analyzed using the content analysis technique. Descriptive statistics were used to compare the approaches used by the insurance companies on the basis of size and other demographic variables. From the findings most companies developed their managers in order to develop their potential and also to remedy their weaknesses. These organizations used strategies such as appraisal and performance reviews and also informal identification for management development. The factors that influenced management development in the organizations were commitment to professional, top management support and interest in the profession, initiative and group factors, communication, negotiation skills, feedback, culture, involvement of consultants, organization re-structure, board of directors, history, lack of motivation, increased responsibility, job redesign, time factors, insufficient learning culture and unclear roles and follower factors developments in

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technology and demands by clients of the organization, and availability of development interventions and Macro Economic conditions.

CHAPTER ONE INTRODUCTION

1.1 Background The history of business in the region shows that in the early years, trading patterns and markets were stable, technology was static, customers were passive, speed in getting to the market was secondary, competition was limited to sectors and regions, and hierarchies were generally accepted in all walks of life. (The East African, March 15 21, 2004, Pg 16).

This is no more. Customers demand that businesses do it better, faster, cheaper. The new rules of the game require speed, flexibility and innovation. The second half of the 20th century saw nations around the world become part of the global village, with trade barriers between them reduced or removed completely. The paradigm - shift to a single global company has opened up new economic opportunities. Events of the last five years of the previous century focused our attention on knowledge industries. Developing quality human resources has therefore become an important tool with which to respond to the emerging environment. (The East African, March 15 21, 2004, Pg 16).

Within organizations there is now a growing awareness that the managerial role has become a critical component in business strategies designed to deliver competitiveness, change and renewal. This has led many organizations to review the nature of their managerial assumptions, attitudes and behaviors to determine the degree of fit with strategic goals and desired levels of business performance. As a consequence, we are witnessing the emergence of a new agenda of organizational demands and expectations in respect of the managers role. Managers are now being told they must manage differently in some cases, management itself has to be reinvented (Mullins, 1999).

Adaptation to change includes the training and development interfaces in organizations. Everyone must learn how to change and learn ways to prepare for it.

For the last 40 years, managers have been viewed as a dynamic and important element of business organizations. Given the turbulence in todays environment (e. g. a global economy, the emergence of trading blocs, increased competition, and technological change), organizations need a high quality, high-performance management team that can help them meet these challenges. This is true even for organizations that are using downsizing and employee empowerment techniques. While it may have been believed that the ability to manage (like the ability to lead) was primarily an inborn capability, the current view holds that the KSAs required to perform effectively as a manager can be learned and / or enhanced (Campbell, Dunnette, Lawler & Weick, 1970).

Organizations must now prepare its managers to guide the organization in the future. This is at the heart of management development activities (Mathis & Jackson, 1979).

1.1.1 Management Development Despite the varied origins of management development, (G. A. Cole, 2002) has identified three underlying trends in the variety of possible approaches to management development. These are; the improvement of individual manager effectiveness (i. e. The extent to which a manager achieves the output requirements of his position.[Reddin, 1970]), the improvement of management performance as a whole and the improvement of organizational effectiveness (i.e. the achievement of corporate objectives by means of collaborative efforts throughout the enterprise).

Management development has been described as having three main components: Management education, Management Training and on- the- job experiences (Keys & Wolfe, 1988). Management Education can be defined as the acquisition of conceptual knowledge and skills in formal classroom situations in degree granting institutions (Keys & Wolfe, 1988). Management Training focuses more on providing specific skills or knowledge that could immediately be applied within an organization and/or a specific position or set of positions within an organization (Keys & Wolfe, 1988). On the Job experiences are planned or unplanned opportunities for a manager to gain self knowledge, enhance existing skills and

abilities, or obtain new skills or information within the context of day to day activities e. g. mentorship, coaching, assignment to a task force.

According to Armstrong (2006), Management Development contributes to business success by helping the organization to grow the managers it requires to meet its present and future needs. It ensures that managers understand what is required of them; agreeing with them objectives against which their performance will be measured and the level of competence required in their roles. It improves managers performance, gives them development opportunities, and provides for management succession. Development processes may be anticipatory (so that managers can contribute to long term objectives), reactive (intended to resolve or preempt performance difficulties) or motivational (geared to individual career aspirations). Cole (2002), he lists some of the important outcomes from successful management development as: Individual managers performing at a fully satisfactory level, Improved

performance from work-teams as a result of better leadership, having a pool of managers ready and able to take up promotion or stand in for absentees, managers working collaboratively together, improved communication between managers and their staff, and between managers and colleagues and the improved problem solving capacity throughout the organization.

In Mullins (1999), he talks of the importance of management education, training and development as highlighted by two major reports, sponsored by the British Institute of Management, published in 1987. The Constable & McCormick report and the Handy report both drew attention to the low level of management and development of British managers. In the Constable & McCommick report The Making of British Managers, the authors warn that many managers need professional training and education if they are to compete successfully. The Handy report warns that in future, technical and functional skills alone will not be enough. Managers will require business knowledge, human and conceptual skills.

1.1.2 Factors Influencing Strategies for Management Development in organizations Management Development in organizations is influenced diverse factors. According to various writers in http://wikibooks.org/wiki/Learning, a number of influencing factors have been discussed, as below.

Typical general influencing factors in management development include are context (culture), history, and survival. The idea of context is intrinsically tied to socially constructed elements. Lane (2001) discusses this factor saying, assumption of most management development theory is that learning is socially constructed, that is, what is learned and how learning occurs are fundamentally connected to the context in which that learning occurs (p. 704). Second is the issue or factor of history. The implications of past endeavors and attempts at growth or learning will affect the long-term view of the development of managers within that organization. Lastly, is the issue of survival. In order for an organization to exist long term, it must learn more than just new fads or moments of knowledge, it must learn consistently over time for this is a learning organization.

Lohman (2005) found the human resource factors influencing the development of managers to include initiative, positive personality traits, commitment to professional development, interest in the profession, self-efficacy and love of learning enhanced the motivation for informal management development. Albert (2005) found that top management support and involvement of consultants also facilitated management development. A European study showed that lack of motivation, extra work, unclear roles, lack of confidence, perception of role, insufficient learning culture, lack of innovation, lack of time, and lack of resources negatively impacted organizational learning (Sambrook & Stewart, 2000). From the positive perspective, motivation, enthusiasm, involvement, clarity and understanding of role, increased responsibility, perception as a strategic partner, a developed learning culture, senior management support, organization restructure, job redesign, and investment in human resources, and the learning environment made a significant difference in organizational culture.

Time factors have a role in influencing management development. Weber and Berthoin Antal (2003) describe six key dimensions of time: the organizations time perspective and orientation to time, time pressure, simultaneity, synchronization and windows of opportunity, learning cycles and life cycles, and history (p. 354). Management Development in organizations is also influenced by group factors. According to McConnell and Zhao (2004), the factors that must be considered include "interaction, communication, negotiation, skills, strategies, feedback, leader, role play, brainstorming, and motivation" (p.7).Lastly in evaluation, the following factors must be considered, performance, effectiveness, outcomes, contributions, history, experiences, and productivity".

Follower factors too have an influence on the development of managers. Goldsmith, Morgan, and Ogg (2004), state, "Organizations in all fields suffer when key employees cannot effectively influence upper management" (p. 20).The board of directors do have an influence on development. Tainio, Lilja, and Santalainen (2003) suggest, "Boards represent the interests of the firm's shareholders...they have the power to hire, fire, and compensate senior executives and to provide high level counsel.; By performing these tasks, boards can facilitate or limit management development" (p. 428).

The external factors include availability of development interventions, macro economic conditions, developments in technology and work processes and demands by clients of the organization.

1.2 Insurance Companies In Kenya Insurance as it is known today was introduced to most developing countries during the colonial rule. Before this, subsistence economies prevailed and here was hardly any need for insurance in the modern sense. They placed their risks with insurance companies in their countries of origin. As the need for local insurance became more apparent, they themselves became agents for these foreign companies. Given the highly technical nature of this industry, expatriates were engaged to assume the main responsibility in the insurance field, leaving the local staff, if any, to carry out simple tasks that required no skills.

Insurance business remained a foreign domain until the government became indigenous through the attainment of independence (The Kenya Underwriter, Vol 9, Aug 1985). After independence, the government sought more effective control of the industry by localizing its activities at appropriate intervals (Weekly Review, June 22, 1979). This saw the emergence of a number of purely local firms. The Insurance Industry Report for the year 2006 lists insurance companies in Kenya currently as 41 insurance. (See Appendix 1).

According to a publication of the Insurance Institute of Kenya (2000), the roles of insurance have been described the main role of insurance as relieving of catastrophes or smoothening of loses indemnity. Others include reduction of uncertainty, infrastructure development, provision of old age social security, contributor to the development of money and capital markets, creator and protector of jobs.

1.3 Statement of the Problem Kenya, like other countries in Africa is still developing. Insurance as a business has made tremendous progress. The 1990s have seen growth of the insurance industry especially with the emergency of many purely Kenyan owned firms. Liberalization has increased competition and meant better services. The growth of the insurance industry has made it a significant player in the financial services market with very heavy investments in the country.

Conversely, the increase in the volume of business has not seen an equal rise in Management Development. Many approaches to development being adopted have characteristics similar to Mumfords Type 1 development and Burgoynes Level 1 and 2. (See Appendix 2) They may be labeled as piecemeal approaches, which have led to inefficient and ineffective development characterized by a lack of managerial development infrastructure; Development is not linked to business strategy. Activities are unrelated, and lack overall direction or philosophy. They fail to reinforce each other, and reduce the potential for organizational effectiveness. Others include:

Development often focuses on the needs of the organization, and fails to meet the learning needs and aspirations of individuals and groups. Development has largely defined in terms of a range

of universal, off- the shelf internal or external courses. There is tacit support for managerial education and training because it is seen as a good thing to be doing irrespective of organizational needs.

There is lack of common vision among those responsible for management development. Some see development as a central part of their jobs, other see it as peripheral and a nuisance. Management development efforts are therefore be wasted because it is used as a solution to the wrong problem. Rather than developing managers, the correct solution may be to change aspects of organizational structure or systems.

Given the above realities, it becomes difficult to evaluate the effectiveness of a piecemeal approach that lacks clear direction and established objectives. Management Development therefore is failing managers in the sense that it is unable to deliver the skills and knowledge they require to meet the requirements of the new agenda. That the wrong people are being trained in the wrong way and with the wrong consequences has become one of todays paradigms (East African, November, 2004).

1.4 Objectives of the Study The objectives of this study were: -

1.

To establish the strategies used for management development among insurance companies in Kenya.

2.

To determine the factors that influence strategies for management development among insurance companies in Kenya.

1.5 Importance of the Study Insurance companies will understand the best practices of delivering management development for the realization of their objectives.

Other organizations will also gain from the findings of this study as it will facilitate identification of performance driven management development approaches, which they may copy. Academicians can use the findings of this study as foundation or base for further research on Management Development programmes not only in Insurance Institutions, but, also in other sectors too. The public The study will help interested readers acquire a clear perceptual understanding of the field of management development approaches in an organization.

This study will hence contribute to an appreciation of the different rationales aimed at justifying the development of managers within a wider environmental, social, ethical and political context.

CHAPTER TWO LITERATURE REVIEW

2.0 Introduction This chapter covers available literature that puts forward the significance of management development in insurance companies in Nairobi, Kenya. It is aimed at highlighting the meaning of management development; management development framework; basis for identifying and developing manage needs; management development approaches that may be used to develop managers.

2.1 Management Development There are as many definitions of management development as there are individuals who have written about the topic. These include:

According to (McCall, Lombardo & Morrison, 1988,), Management Development is an organizations conscious effort to provide its managers (and potential managers) with opportunities to learn, grow and change in hopes of producing over the long term a cadre of managers with the skills necessary to function effectively in that organization. manager development must embrace all managers in the enterprise. It must aim at challenging all to growth and self development. It must focus on performance rather than on promise, and on tomorrows requirements rather than those of today. (Drucker, 1955). development is a continuing improvement of effectiveness within a particular system, which may be a person, but in the case of management development is within the management function of an organization (Morris, 1978).

In some organizations the focus of management development will primarily be upon the training and education of managers. In other(s) (it) may be seen to be aiming to change the 9

managerial style In yet others the main focus will be on formalized systemsassociated with performance appraisal and career planning (Easterby-Smith et al., 1980) Thomson et al (2001) concurs. He writes we have used the term in a comprehensive sense to encompass the different ways in which managers improve their capabilities. It includes management education, which is often taken to refer to formal, structured learning in an institutional context and management training which is often used to mean acquiring knowledge and skills related to work requirements, also by formal means. But our use of the term development goes beyond the sum of these to mean a wider process than the formal learning of knowledge and skills, which includes informal and experiential modes of human capital formation. Management Development is thus a multi-faceted process in which some aspects are easier to identify and measure than others. 2.2 The Managers job: Roles and Competencies Surprisingly, little is known about what managers do, how they learn to do it and how they should be developed (Schoenfeldt & Steger, 1990). While it is true that popular conceptions of the managers work and development are available, scientific research has yet to p rovide a clearly supported and accepted model that can be used to guide management development (Harris & DeSimone, 1994). Meaningful management development is likely to differ given the context and challenges facing a particular organization.

Studies examining the job of managing have done so from at least three perspectives: describing the characteristics of the job as it is typically performed, describing the roles managers serve and developing process models that show the various components of managing relate to each other (Schoenfeldt & Steger, 1990).

The characteristics approach involves observing the tasks managers perform and grouping them into meaningful categories. (McCall, Morrison and Hannan, 1978) reviewed the results of a group of observational studies and concluded that ten elements of managing were consistently present. The elements include long hours of work, high activity levels, fragmented work (e.g.

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many interruptions), varied activities, primarily oral communication, many contacts, information gathering and spending most of the working time within the organization. In addition managers tend not to be reflective planners (given the variety of tasks and fragmented nature of the work) and do poorly in accurately estimating how they spend their time. A common conclusion from such studies is that important questions remain unanswered and that knowing that the managerial job is varied and complex is not particularly helpful in the identification and / or developmental process (Schoenfeldt & Steger, 1990).

A second approach is to identify roles that managers are typically assigned. An observational or empirical approach is used. The observational approach is typified by Fayols (1949) five management functions planning, organizing, commanding, coordinating and controlling, and Mintzbergss (1973, 1975) ten managerial roles: interpersonal (figurehead, leader, liaison), informational (Monitor, disseminator, spokesperson) and decisional (entrepreneur, disturbance handler, resource allocator, and negotiator).The empirical approach relies on a descriptive questionnaire (e.g. Management Position Description Questionnaire) as completed by managers themselves and / or others who work with them. This approach has failed to provide practical, meaningful descriptions of the job (Schoenfeldt & Steger, 1990). Taken together, the observational and empirical approaches to categorizing the managerial role have not proven useful in defining the managerial role or as guides to developing managers.

To overcome these limitations, the process models were developed taking into account the particularly relevant competencies and constraints in performing the management job. The Integrated Competency Model focuses on managerial competencies, skills and / or personal characteristics that contribute to effective performance, rather than the role that managers perform. 21 competencies are identified and grouped into six categories; human resource management, leadership, goal and action management, directing subordinates, focus on others and specialized knowledge (Boyatzis, 1982). This approach can be useful in guiding management development programs ( Harris & DeSimone, 1994).The primary weakness of the model is that it is based on a narrow range of measuring devices (McClellands need theory and Kolbs learning style theory), which do not represent all of the traits, skills and knowledge needed for managerial performance (Schoenfeldt & Steger, 1990). 11

The Four-Dimensional model (Schoenfeldt & Steger, 1990) is based on various information sources (e.g. managerial diaries, interviews, performance evaluation documents, observation). It represents the managerial role as having the following dimensions; Six functions forecasting and planning, training and development, persuasive communication, influence and control, expertise / functional area and administration. Four roles Innovator, Evaluator, Motivator, Director. Five (relational) targets peers, subordinates, superiors, external and self. An unspecified number of managerial styles (attributes that describe the image and approach of the manager), include objectivity, personal impact, leadership, energy level and risk taking.

Research available on what managers do, how they do it and how they develop capabilities to do it provides a useful conceptual model to begin the needs assessments process and serve as a source of possible developmental topics and issues. It is however unrealistic to expect such research no matter how advanced, to provide a blueprint for any particular organizations management development strategy (Harris & DeSimone, 1994).

2.3 Planning Management Development Planned development ought to be based on a clear, formal view of the content of the managers job. To attempt to develop managers for jobs whose purpose and nature are unclear, constraints and opportunities are unspecified and where the boundaries are undefined is to risk losing commitment to any subsequent developmental process.

Clarity of job purpose and clarity about priorities is a considerable step as this helps to at least address the issue of what kind of problems and circumstances the manager needs to be able to overcome and what the purpose of developmental activities might be.

The first step in management development is to determine policy guidelines.

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Management development will fail if there is no clear policy (Margerison, 1991). Policy statements are useful as they express the organizations commitment to development, and sets out clearly a framework within which it can take place. It makes explicit who is responsible for development, and sets out a framework within which it can take place. According to Thomas J, L (2001), those organizations having a formal policy for developing their managers undertook significantly more management training than did companies without such a policy.

2.3.1 Management Development Activities The three essential management development activities are:

Firstly is the analysis of present and future management needs. This is carried is carried out through Human Resource planning processes. In todays changeable, if not chaotic, conditions it may not be feasible to make precise forecasts of the number of managers required. What should be done is to assess the skills and competencies managers will need to meet future demands and challenges arising from competitive pressures, new product market strategies and the introduction of new technology. The analysis of needs may be achieved through Appraisal and performance reviews, Psychological tests, Informal Identification, Panel or Group interviews, Management Simulation processes, Assessment Centers, Intuitive methods and Assignments and special responsibilities.

Dessler (1991) identified that different levels of management have different development needs. 15 highly ranked needs identified are:

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Table 1: Development Needs of Different Levels of Management

Executive Level Managing Time Middle Level Evaluating employees Team Building Organizing and planning Evaluating employees. Coping with stress Understanding Human Behavior Organization and planning Understanding human behavior Understanding Human Behavior Developing subordinates Self Analysis Motivating others Financial Management Budgeting Setting Objectives and priorities. Holding effective meetings Oral Communication Labor/Management relations Written Communication Managing time Team Building Leadership Decision Making Holding effective meetings Delegation Developing subordinates Decision Making Developing strategies and policies.
Adapted from Personnel / Human Resources Management, Gary Dessler pp. 285.

and

Supervisory Level appraising Motivating others

Motivating others Setting objectives and priorities appraising Oral Communication

Evaluating and appraising others Leadership Oral Communication

and

and

training

Role of the Manager Setting objectives and priorities Written Communication Discipline Organizing and planning Managing Time Counseling and Coaching

and

training

Selecting Employees

Selecting employees.

Decision Making

Secondly is the assessment of existing and potential skills and competencies against these needs. This can be carried out by performance management processes. The CIPD survey of performance management in 2003 (Armstrong & Baron, 2004) revealed that in order of importance, the among some of the performance measures that were used by the respondents included the achievement of objectives, productivity, competence, flexibility, quality, skills, contribution to team, business awareness, customer care, financial awareness, working relationships and aligning personal objectives with organizational objectives.

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The third management development activity is the production of strategies and plans to meet those needs. The strategies will be concerned with what the organization intends to do and provide its future management needs in the light of its business plans. The plans will be concerned with the roles of the parties involved and with the approaches the organization proposes to use to develop its managers.

2.3.2 Managing the Development Process When planning for management development, there should be a close interaction with performance management systems, where performance related pay (PRP) and performance appraisal are key components: the former to produce the extrinsic financial rewards in the form of shares, income differentials, profit sharing schemes and bonuses, and the latter to provide the essential mechanism for setting objectives and feeding back performance (Hendry, 1995). Performance management systems must be seen to reward personal development and achievement. The achievement of objectives is also closely linked to management training and education, which act to provide the skills and knowledge required to meet objectives.

Intrinsic rewards through praise, encouragement and reassurance are also vital components in management development, especially in coaching and mentoring. For example, for younger managers who may be on graduate programmes, continuous positive feedback during the early stages of the programme is vital to sustain motivation and commitment. Older more experienced managers also need regular praise, encouragement and reassurance that their skills and experience are still valued and appreciated, and that any investment in personal development is seen as being positive from the organizations point of view (Mumford, 1997).

For management development to be effective, consideration should be given to career paths and opportunities for promotion and progression (Mumford, 1997). There should be a welldeveloped human resource plan that is future oriented. In terms of career progression, the emphasis is shifting towards individuals who display greater flexibility, adaptability and personal characteristics such as emotional resilience.

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Career progression is likely to involve a greater emphasis on horizontal or diagonal rather than vertical movements e. g projects, departmental and job shifts, internal consultancy roles, acting as mentors and coaches etc (Thomson J. L, 2001). This should also involve individual appraisal and counseling. However, care should be taken to avoid giving staff too long or over ambitious career expectations. If these expectations cannot be fulfilled, staff may become disillusioned and frustrated.

Burgoyne (1988) argues that managerial development may be considered as progressing through different levels of maturity to the point where management development is making the fullest contribution to organization development. (See Appendix 1).

2.4 Approaches to Management Development There must be an understanding of the approaches that can be used both to develop managers and also assess existing managerial resources and how they meet the needs of the enterprise. The management development activities required depend on the organization, its technology, its environment and its philosophy. A traditional bureaucratic/mechanistic type of organization may be inclined to adopt the programmed routine approach, complete with a range of courses, intentions, replacement charts, career plans, and results oriented review systems. An innovative and organic type of organization would provide its managers with the opportunities, challenges and guidance they require, seizing the chance to give people extra responsibilities, and ensuring that they receive the coaching and encouragement they need. There may be no replacement charts, inventor or formal appraisal schemes, but people know how they stand, where they can go and how to get there. The three basic approaches to management development are learning through work, formal training and through feedback, facilitation and support. These have been addressed in detail below. 2.4.1. Learning through Work (Informal Management Development) This is a byproduct of a variety of managerial tasks, the dynamic nature of managerial priorities, changes in working environment, changes in colleagues and bosses, which all provide opportunities and stimuli. Excluding the informal processes from the models of management

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development takes us away from reality and eliminates from conscious consideration a number of potential opportunities for learning (Mumford 2002).

Informal accidental experiences are widely present but often badly identified and in consequence inefficiently used. Learning from experience, although present, is for many purposes insufficient. Mumford (2002) lists the following examples of informal learning opportunities: Table 2: Informal Learning Opportunities
Situations within the organization Meetings Tasks Familiar Unfamiliar Task Force Customer Visit Visit to plant / office Managing a change Social occasions Foreign travel Acquisitions / Mergers Closing something down. Processes Coaching / counselling Modeling Mentoring Negotiating Problem solving Observing Questioning Reading / Listening Reviewing / Auditing Clarifying responsibilities Public Speaking Walking the floor Situations outside the organization Charity Domestic Life Industry Committee. Professional Meetings. Sports Club. People Boss Mentor Network Contacts Peers Consultants Subordinates. Strategic Planning Visioning Problem diagnosis Selling

Total reliance on these informal processes may result in problems such as idealization, narrowness and obsolescence. Depending on the nature of the organization, there is the issue of bosses and colleagues. These may be excellent providers of advice and good models of effective 17

behavior, neither. People develop skills from the natural process of doing the job, and finding out whether the way they do it works. If it does, they assume that they have a skill. The skill they have acquired may be either inappropriate or at an insufficiently high performance level. At worst, it may also be the wrong kind of skill.

2.4.2 Formal Approaches to Management Development These are planned and deliberate. They can be achieved through:

2.4.2 (i) Promotion (Moving to a new Job) The move may be planned by the managers current employer, or a new organization takes the arriving manager on. According to Mumford (2002), the transition between jobs, whether promotion or movement sideways involves more than some prior training and development activities and an initial induction period. It is possible to see in advance what at least some of those learning needs will be and to plan for them formally.

Secondment may be defined as a way of moving a manager into a job outside his employing organization. It may include moving people across divisions or from one company to another within a group of companies. Secondments are about responsibility, authority and the application of some management knowledge not fully utilized by the sponsoring organization.

2.4.2 (ii) Fertilization within the Job (Opportunities for Learning) Instead of being moved to a different location to get development benefit, the manager can extract more from the existing location. Formal management development does this by identifying particular kinds that can be available within / around the existing job. The fertilization involves the construction of effective learning and development processes around the opportunities provided. Some of the opportunities are:

Stretching boundaries and acquiring new tasks - This is the process by which a manager, without changing job title, is given additional responsibilities e.g. a sales director handing over to a sales manager responsibility for a major national account. 18

Committees / working parties / task forces - Line managers frequently assign managers to special committees or task forces for purely managerial reasons. When one is appointed for

development reasons, it is much more desirable to discuss those reasons and identify the development opportunities and ways of benefiting from them.

Junior Boards/ Conference Leadership - Managers can stay in their existing jobs but be given experience in simulating the processes of their board of directors. Junior boards are so purely developmental that they have not really been widely accepted. The main reason seems their lack of responsibility and accountability, meaning that the discussions are frustratingly lacking in identifiable results. The knowledge acquired seems to be outweighed by feelings of psychological and managerial impotence. Conference leadership requires that the trainee organize and chair problem solving conferences. (Mathis & Jackson, 1979).

Visits to customers, suppliers and others - These visits can be seen as acquiring knowledge or developing the understanding managers have of appropriate practices for which it is envisaged he might be. Projects and on-the-job development - There should be discussions with the individual as to why they are given projects as a development exercise and how to take advantage of the development opportunity. Projects provide major potential developmental benefits as they often include managers in looking at a wide range of issues, in greater depth, across a wider range of functions than might otherwise be encountered. They should carry responsibility for implementation as well as recommendation.

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2.4.2 (iii) Learning Within The Job ( Feedback, Facilitation And Support) Coaching/Understudy Approach - According to Armstrong (2004), he describes coaching as the art of facilitating the enhanced performance, learn in and development of others. It takes the form of one to one on the job approach to helping people develop their skills and levels of competence. Singer (1979) says it is concerned more with asking questions which help a man to think than teaching him what to do.

One issue with coaching is that the manager as a coach primarily wants the task done well and only secondarily wants the individual to learn from doing it. As a third factor, he/she may also want the individual to learn from the process of discussing the task. Ordinary human beings do not always manage to achieve these three objectives with the appropriate degree of balance.

To create an effective coaching relationship within a formal management system, it is necessary to assist managers to develop the skills involved, such as effective listening, observation and giving non-evaluative feedback. It is also necessary to help the coach and the subordinate understand the learning processes involved in the act of coaching.

Counseling - In many management development systems the processes (coaching and counseling) are often confused. Most managers do not see themselves as coaches and counselors.

Mentoring - The idea of an older manager choosing a younger manager for whom he will act as coach, counselor or sponsor is one that has long existed informally and accidentally. There are different aspects of the role. Some mentors are door openers: they try and ensure that their protgs are considered for important jobs, assignments and projects. They ensure that those who make decisions about people know what their protg has achieved, and why that level of achievement is noteworthy.

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In formal development schemes, a more experienced manager coaches a less experienced one via discussions about work issues, job performance, politics and relationships. This is especially helpful in encouraging the development of women managers. Mentoring is a highly personal relationship which can sometimes lead to a level of dependence. Some organizations run formal programmes in training both mentors and protg. This can be helpful in defining expectations at both organizational and individual level. As with other processes, the styles of mentor and protg need to be compatible.

Modeling on boss, colleagues outsiders - Some managers learn by observing others. Modeling may be positive or negative. Formal management development ought to include help on how to observe others at work, and how to build in review processes after the observation. Acquiring feedback - We have long passed the stage of accepting that a manager is responsible for developing his/her subordinates. It is the job of the boss to monitor and give feedback on performance.

Reading - Managers read a great deal, but they usually read technical, professional or industrial material connected with their work. Sometimes articles are circulated, particularly among senior managers, for your interest, sometimes by the chief executive or human resources manager. Managers buy and quite often read at least part of best sellers like In Search of Excellence or Lee Iacocca (Mumford 2002). The formal scheme ought to integrate this kind of relatively casual reading into the planned development of individuals. This could better be done by suggesting discussion meetings or recommending that a time be set aside at normal management meetings.

2.4.3 Planned Development off the Job Development processes centered on the job has its strength in reality. The case for taking managers away from that reality and putting them on a course is precisely that they are then able to concentrate entirely on learning rather than managing. In addition to this, Oberg (1963) further adds that:

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The executive is able to get away from the pressures of the job and work in a climate in which party line thinking is discouraged and self analysis is stimulated. It provides resources people and resources materials faculty members, fellow executives and books that contribute suggestions and ideas for the executive to try on for size, develop and grow. It presents a challenge to the executive that enhances his motivation to develop himself.

A number of methods may be used:Courses / Classroom Training -The advantage of classroom training is that it is widely accepted because most people are familiar with it. It can be conducted by specialists either employed by the organization or outside experts. A disadvantage is that classrooms often produce passive listeners and lack of participation. Sometimes trainees have little time to question, clarify and discuss lecture material. (Bass & Vaughn, 1966).

T- Group Training (Sensitivity / Encounter Group / Training).Laboratory - A technique for learning about oneself and others by observing and participating in a group situation. The small groups may meet for one to two hours or more daily or for a period of a week or longer, usually off the job site. T Group is supposed to develop an awareness of human, group and personal behavior. Even though people may be changed by the training, findings suggest that the sponsoring organization does not always benefit from the changes. One study found that sensitivity training ranks low as an effective management tool when compared to several other common approaches (Kearney and Martin, 1974).

Special Programs - This involves sending managers to university sponsored courses or short courses. These courses are offered by many colleges and universities and professional associations. The managers in the courses are exposed to a variety of problems and learning materials. However, a common complaint about these programs is that they do not deal with the realities of an individuals workplace.

Some larger organizations have established training centers exclusively for their own employees. The aim of the center concept is to stimulate new ideas and discussions between speakers and 22

participants, to expose participants to new ideas from other people, to recharge participants administrative batteries, and to stimulate them intellectually. (Rehfuss, 1970). Psychological testing - These are used to determine the managers developmental potential. Intelligence tests, verbal and mathematical reasoning tests are often being used. Such testing can provide useful information to employees in understanding such aspects as motivation, reasoning difficulties, leadership styles, interpersonal response traits and job preferences. The biggest problem lies in interpreting the results. An untrained manager cannot accurately interpret the results. It should also be recognized that some psychological test are tests are of limited validity and can easily be faked. Psychological testing appears appropriate only when closely supervised by a qualified professional throughout the testing and feedback process.

Human Relations Training - This originated in the Hawthorne Studies. The idea was to prepare supervisors to handle the people problems brought to them by their employees. The trainin g focuses on the development of human skills. Human relations programs typically deal with motivation, leadership, communication and humanizing the work place. Participation is emphasized and components of morale are carefully examined. The major problem with such training is difficulty in measuring effectiveness. Consequently such programs are often measured using only the participants reaction to them. Case Study - This is a classroom oriented development that has been used widely in such well known institutions such as the Harvard Business School. (Mathis & Jackson, 1979). It provides a medium through which the trainee can study the application of management or behavioral concepts. A common complaint is that the cases cannot be made sufficiently realistic to be useful.

Role Playing - A development technique that requires the trainee to assume a role in a given situation and act out behaviors associated with the role. Hopefully, participants gain an understanding of the factors in a certain situation.

Simulation (Business Games) - These may be computer interactive games where individuals or teams draw up a set of marketing plans for an organization, such as trying to determine the 23

amount of resources to be allocated toward advertising, product design, selling. The participants make a decision and then the computer tells them how well they did in relation to competing individuals/teams. Other games often have to do with labor (management negotiations). When properly done, simulation can be a useful management development tool. However it receives the same criticism as role playing. Realism is sometimes lacking and the learning experience is diminished. Learning must be the focus, not just playing the game.

Sabbaticals and leaves of absence - These have been popular in the academic world. Similar sorts of plans have been adopted in the business community. Paid sabbaticals can be an expensive proposition. Also the nature of the learning experience is not within the control of the organization and the exact nature of the developmental experience is left to chance.

There is a bewildering array of management education and development methods to choose from. According to (Huczynski, 1983) who has reviewed more than 200 management development techniques, there is perhaps a greater diversity of teaching and learning methods in use in management education than in any other subject, and the already extensive range is ever increasing due to the unremitting rate of innovation.

2.5 Measuring the Effectiveness of Management Development Cole (2002) states that the assessment of the effects of management development activities is a complex matter. The so-called Management Development Audit aims to ensure that the provisions adopted by any organization for developing its managers do produce the intended results. The essence of the Audit approach is to ask individual managers to describe their own experiences of, and views about, management development, and then reflect the collective view back to those responsible for making decisions about the development of managers.

The Audit represents a through review of management development activities, enabling senior management to pinpoint strengths and weaknesses of the current system as well as obtaining a feel for the way the system is operating.

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2.6 Challenges / Issues in Management Development According to Beardwell et al (2004) some of the issues that confront organizations in developing their managers, which management development should tackle include;

Senior Manager Development: On one hand, senior managers are viewed as a valuable and critical resource to the survival and success of the organization. On the other hand, their training appears inadequate or rejected, reasons ranging from pressure / lack of time to emotional and political attitudes about their perceived need for development.

Developing professionals as managers: These include the actuarial scientists, accountants, doctors etc. They display what Bittel (1998) deems as counterproductive characteristics. These include: Over application of their analytical skills becoming paralyzed by analysis, feeling that they are above organizational policies, expect their technical expertise to solve organizational problems, respect logic and intuition over emotion, lack feeling, empathy and awareness of commonsense solutions to problems. Companies have to realize that professionals have special needs and prefer to plan and organize their own development to meet these needs in a contingent manner.

Management Development in small firms: Small firms appear to ignore or avoid investing in management development. The main barriers include: Lack of time diversity and uniqueness, finding ways to overcome the bureaucracy and provide accessible and affordable approaches to development, not knowing where or how to get advice and assistance, complicated procedures and bureaucracy when applying for assistance. These may be overcome by: Identifying the knowledge and skills required by small firm owner/managers, delivering development in a way that acknowledges the sectors diversity and uniqueness and finding ways to overcome the bureaucracy and provide accessible and affordable approaches to development.

Development of Women Managers: Mullins (1999) identify three barriers: -

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The attitude and behavior of women managers e. g. their lack of confidence and perceived low career orientation and lack of competition, structural factors such as human resource policies and practices which discriminate against women managers e. g appraisal and selection criteria that foreclose consideration for certain positions and organizational cultural factors such as the attitudes of male managers and informal clubs and networks which serve to exclude women and reinforce gender stereotypes. Practical measures that can be taken to develop women managers are: - Integrating womens development into mainstream human resource development, mentoring / providing role models, reviewing child care provisions, auditing attitudes towards women, providing women only training, putting equality on the organizational agenda, reviewing selection / promotion / appraisal procedures, moving women out of the ghetto into frontline positions and career planning strategies for women.

Technology: According to Cole (2002), technological changes are having a profound impact on training and development, increasing the need to assess the developmental requirements of current and future managers, professionals and technical people. The developments have created a situation in which the knowledge and skill of the people is the real human resource. Management development is hence vital if institutions are to emerge as successful users of technology and more so if the developing countries are to compete in the world as well as domestic markets.

Multinational Needs: Managers need to move beyond simply recognizing that people from other countries are different, thereby inferior or less effective. Working abroad or in your country with managers from other countries causes culture shock as expectations of the right way of doing things differs. The difficulties may be made worse by language.

Ethics of managers are another aspect of cultural belief. Values differ within countries e.g. competition is not important for the Swedish or Japanese but it is for Americans. The question of tightness of structure and responsibility and the degree of openness in managerial relationships, is especially important in Management Development. (Mumford 2002). 26

From a systematic managerial point of view, opportunities for posting abroad are diminishing at exactly the time when there is greater understanding of what needs to be done in order to make a successful management development programme abroad. The advantages of distance and greater autonomy have to be balanced against the solitary and isolated nature of the managers work. There are risks, both political and commercial. Domestic problems can also contribute to failure as well as success. There is also the re-entry difficulty. Finding the right slot for the returning manager, or even promising to do so before his departure abroad, can cause major headaches.

Graduates: A number of organizations recruit graduates primarily to fill immediate technical or functional needs. Aftertime, experience and achieved performance they merge into the unit they have joined and their development as managers follows the normal path for that organization. Other organizations recruit graduates to create a pool of intelligent people with high potential as a means of providing for management for the future. The difference in objectives and immediate location for these different kinds of graduates recruitment raises problems. Whereas the first group goes into a proper job, although it may be below their intellectual level or ambition, the latter often go into no clear functional stream.

There needs to be a formal management development programme which includes appropriate courses, assignments in their particular units long enough to establish that they have done a definable piece of work. If sharp distinctions are made between themselves and others of equivalent age but with no degree, the expectations and motivation of non-degree people will be reduced. There is some thinking that MBA recruits are seen as expensive and simply want to do the managing directors job before they have shown that they can manage a department. They are characterized as arrogant, possessing intellectual and analytical skills rather than practical skills on which so much effective management is believed to be based. Current developments in MBA programmes all emphasize relevance and reality. The future growth of MBA programs is more likely to be in terms of more appropriate general management processes and more specific relevance to their own organization.

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2.7 Management Development: Summary and Conclusion From the foregoing literature review, a number of points stand out clearly. Because of the rapid technological changes and growth of organizations into complex operations, managers need to be constantly developed. Thus development that fosters on manager self development and versatility should be planned, administered and accepted as vital to organizational success.

The decision as to what type of approach to use in any working organization should be made only after careful analysis of the job, the information to be transmitted, the behavior to be mastered, the job, level, abilities of trainer, etc. The type of approach should provide a specific purpose. Careful consideration should be given to both immediate and long needs of the individual managers and at the same time to the organization as well.

An integrated approach to Management Development will make judicious use of both the formal and informal methods. Five governing principles to be adhered to are the reality of management, relevance, self development, experiential learning and formal training. Programmes need evaluation to see if they have achieved the objectives for which they were established.

In conclusion, it is extremely difficult to suggest that a particular approach is ideal, since each has certain advantages, disadvantages and limitations in a specific developmental situation. Managers need to discover the degree to which their programmes accomplish the attainment of organizational goals and objectives.

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RESEARCH METHODOLOGY CHAPTER THREE

3.1. Research Design This study used a descriptive census survey. This design was considered appropriate for this study since it involved a description of the what and how of the various management approaches are utilized in insurance companies.

3.2 Population The population of the study consisted of all the insurance companies in Kenya. According to the annual report of the Commissioner of Insurance, 2008, there are 41 Insurance companies in Kenya today. All of them were included in the survey. (See appendix 3).

3.3 Data Collection The main instrument used in the collection of data for the study was the questionnaire. Most of the questions were open ended; a few were closed ended. The respondents were the Human Resource Managers in the various insurance companies. The open-ended questions allowed the respondents to give answers in their own way. The drop and pick method was used to administer the questionnaires. This gave the respondents a chance to fill the questionnaire during their free time. Envelopes were provided for confidentiality purposes. These sealed envelopes were then picked one week after delivery. The questionnaire were divided into two parts, Section A was used to collect general information on company profiles. Section B aimed at collecting data that addresses the objectives of the study.

3.4 Data Analysis Once the questionnaires were received, they were edited to ensure that they were well completed and the responses consistent. The data collected was analyzed using the content analysis technique, as the interviewer sought in-depth information on the management development 29

approaches adopted by the insurance companies. Descriptive statistics were used to compare the approaches used by the insurance companies on the basis of size and other demographic variables.

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CHAPTER FOUR DATA ANALYSIS AND FINDINGS 4.1 Introduction This chapter presents the analysis and findings from the data collected from the field based on the specific objectives. From the study population targets of 41 respondents, 30 respondents responded to the questionnaire, comprising 73.2% response rate. 4.2 General Information Respondents title From the study, the researcher found that the respondents titles included; administration officers, assistant human resource manager, claims and underwriting managers, deputy human resource managers, group training managers, head of sales and marketing, human resource managers, ICT managers and training managers. Table 3: Duration the Organization Has Been In Operation less than 5 years between 5 and 10 years over 10 years Total Frequency 4 3 23 30 Percent 13.3 10.0 76.7 100.0

On the duration that the organizations had been in existence, the study found that the majority of the organizations had been in existence for over 10 years as shown by 76.7%, 13.3% of the organizations had been in existence for less than 5 years, while 10% of the organizations had been in existence for 5-10 years. Table 4: Ownership of the Organization Frequency locally owned 20 both local and foreign 10 Total 30 The findings in the above table show Percent 66.7 33.3 100.0 the ownership of the organizations. From the study, the 31

majority of the organizations as shown by 66.7% were locally owned, while 33.3% of the organizations were both local and foreign. Table 5: Duration of Working in the Organization less than 5 years between 5 and 10 years over 10 years Total Frequency 18 6 6 30 Percent 60.0 20.0 20.0 100.0

The study also sought to find out the duration that the respondents had been working in their organizations. From the findings, the majority of the respondents had been working in their respective organizations for less than 5 years as shown by 60%, while the respondents who reported that they had been working in their respective organizations for 5-10 years and for over 10 years tied at 20%. Table 6: Number of Managers in the Organization <5 5 to 10 10 to 20 20-30 >30 Total Frequency 2 9 8 6 5 30 Percent 6.7 30.0 26.7 20.0 16.7 100.0

The findings in the above table show the number of managers in the organizations. From the study, the majority of the organizations had 5-10 managers as indicated by 30%, 26.7% had 10 to 20 managers, 20% of the organizations had 20 to 30 managers, 16.7% had over 30 managers, while 6.7% of the organizations had less than 5 managers.

Summary of the Number of Managers In the insurance companies, the number of senior management ranged between 2-18 managers, middle management ranged between 2 to 42, junior management ranged from 2-58, while the supervisors ranged from 1 to 25.

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Table 7: Expatriates in the Firm 1 2 others Total Frequency 6 6 18 30 Percent 20.0 20.0 60.0 100.0

On the number of expatriates in the firms, the majority of the respondents said others i.e. none, while the respondents who said that they had 1 and those who said 2 expatriates tied at 20%. Table 8: Strategic Plan, Vision, Objectives, Formal Statement and Business Plans yes no the organization has a strategic plan 93.3 6.7 the organization has spelt out its vision 100 0 the organization has spelt out its strategic objectives 100 0 institution has a published formal statement of its philosophy of management education and training 46.7 53.3 the company's management development strategy is related to the company's business plans 90 10 From the findings in the above table, it was clear that all the firms had spelt out their vision, and also they had spelt out their strategic objectives. The study further revealed that the majority of the organizations as shown by 93.3% had a strategic plan and also 90% of the companies management development strategy was related to the companies business plan. Few respondents as shown by 46.6% reported that their institutions had a published formal statement of its philosophy of management education and training.

4.3 Strategies Used For Management Development Table 9: Role of Management Development in the Organization yes no remedying weaknesses 53.3 46.7 developing potential 80 20 On the role that management development played in the organizations, the study found that in the majority of the organizations, management development was for developing potential as shown by 80% of the respondents, while 53.3% of the respondents reported that management 33

development was for remedying weaknesses. Table 10: Internal Factors Influencing Management Development in the Organizations to a to a to a to a very to no less moderate large large extent extent extent extent extent Mean culture 16.7 3.3 30 36.7 13.3 3.3 history 16.7 33.3 10 10 30 3 initiative 0 10 46.7 36.7 6.7 3.4 commitment to professional 6.7 0 16.7 36.7 40 4 development 6 13.3 23.3 40 23.3 3.7 interest in the profession 6.7 0 16.7 60 16.7 3.8 top management support 0 3.3 26.7 36.7 33.3 4 involvement of consultants 20 6.7 33.3 40 10 3.1 lack of motivation 23.3 13.3 30 13.3 20 2.9 unclear roles 16.7 46.7 16.7 6.7 13.3 2.5 lack of confidence 20 50 6.7 23.3 0 2.3 insufficient learning culture 23.3 23.3 26.7 20 6.7 2.6 lack of resources 26.7 46.7 6.7 6.7 13.3 2.3 increased responsibility 13.3 23.3 33.3 16.7 13.3 2.9 organization re-structure 16.7 23.3 13.3 26.7 20 3.1 job redesign 10 23.3 33.3 26.7 6.7 2.9 time factors 6.7 33.3 46.7 13.3 0 2.7 group factors e.g. interaction, communication, negotiation skills, feedback 3.3 0 53.3 36.7 6.7 3.4 follower factors i.e. employees managed 13.3 30 53.3 3.3 0 2.5 board of directors 20 10 30 23.3 16.7 3.1 In her study, the researcher requested the respondents to indicate the extent that the above internal factors influenced management development in the insurance industry. From the findings, the study found that the factors that influenced management development in the organizations to a large extent were commitment to professional and top management support as shown by a mean score of 4.0 in each case, interest in the profession as shown by a mean score of 3.8 and also development as shown by a mean score of 3.7. Further the study found that there were other factors that influenced management development to a moderate extent. These factors included; initiative and group factors e.g. interaction, communication, negotiation skills, feedback as shown by a mean score of 3.4 in each case, culture as shown by a mean score of 3.3, involvement of consultants, organization re-structure 34

and board of directors as shown by a mean score of 3.1 in each case, history as shown by a mean score of 3, lack of motivation, increased responsibility and job redesign as shown by a mean score of 2.9 in each case, time factors shown by a mean score of 2.7, insufficient learning culture shown by a mean score of 2.6 and also unclear roles and follower factors i.e. employees managed as shown by a mean score of 2.5 in each case. The factors that influenced the management development to a less extent were lack of confidence and lack of resources as shown by a mean score of 2.3 in each case. Table 11: Impact of External Factors on Management Development in the Organization to a to a to a to a very to no less moderate large large extent extent extent extent extent mean availability of development interventions 10 23.3 46.7 16.7 3.3 2.8 Macro Economic conditions 10 33.3 23.3 33.3 0 2.8 developments in technology 0 10 30 43.3 16.7 3.7 demands by clients of the organization 10 10 33.3 10 36.7 3.5 The findings in the above table show the extent of the impact of the external factors in the table on management development in the organizations. From the findings, developments in technology and demands by clients of the organization had an impact to the management to a large extent as shown by mean score of 3.7 and 3.5 respectively. Availability of development interventions and Macro Economic conditions had a moderate impact on the management development as shown by a mean score of 2.8 in each case.

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Table 12: Level of General Management Skills in the Company excellent good average inadequate management of quality 13.3 56.7 23.3 6.7 management of innovation 0 60 33.3 6.7 planning 20 50 16.7 6.7 organization 20 50 30 0 structuring the organization 26.7 13.3 40 20 controlling the business 10 56.7 20 13.3 project management 6.7 40 40 13.7 delegation 13.3 26.7 33.3 26.7 crisis management 10 50 23.3 16.7 developing company culture 20 13.3 30 30

poor 0 0 6.7 0 0 0 0 0 0 6.7

mean 2.2 2.5 2.3 2.1 2.5 2.4 2.6 2.7 2.5 2.9

The respondents were also requested by the researcher to assess the level of the above management skills in their respective organizations. From the study, the general management skills that were found to be good in the majority of the companies were organization as shown by a mean score of 2.1, management of quality as shown by a mean score of 2.2, planning shown by a mean score of 2.3 and controlling the business as shown by a mean score of 2.4. The general management skills that were average in the majority of the organizations were structuring the organization and crisis management as shown by a mean score of 2.5 in each case, project management shown by a mean score of 2.6, delegation shown by a mean score of 2.7 and developing company culture as shown by a mean score of 2.9. Table 13: Functional Management Skills within the Company excellent good average inadequate poor sales 10 76.7 0 13.3 0 training 23.3 26.7 43.3 0 6.7 marketing 13.3 50 10 13.3 13.3 IT 13.3 16.7 56.7 13.3 0 R&D 6.7 23.3 26.7 43.3 0 human resources 6.7 46.7 33.3 13.3 0 customer service 23.3 53.3 16.7 6.7 0 operations 6.7 63.3 23.3 0 6.7 finance 13.3 67.7 6.7 6.7 6.7 supply chain 0 63.3 36.7 0 0 mean 2.2 2.3 2.6 2.7 3.1 2.5 2.1 2.4 2.3 2.4

The respondents were also requested to rate the functional management skills in the above table 36

in their organizations. From the study, the functional management skills that were rated as good in the majority of the organizations were customer service as shown by a mean score of 2.1, sales shown by a mean score of 2.2, training and finance as shown by a mean score of 2.3, operations and supply chain as shown by a mean score of 2.4 in each case. The functional management skills that were rated as average in the majority of the organizations were human resources as shown by a mean score of 2.5, marketing as shown by a mean score of 2.6, I.T as shown by a mean score of 2.7 and R and D as shown by a mean score of 3.1.

Table 14: Identifying Needs for Improved Skills or Knowledge yes no appraisal and performance reviews 93.3 6.7 psychological tests 10 90 informal identification 53.3 46.7 panel or group interviewers 33.3 66.7 assessment centres 20 80 intuitive methods 26.7 73.3 assignment and special responsibilities 40 60 The researcher also asked the respondents to state how their respective organizations identified needs for improved skills or knowledge. From the findings, the majority of the respondents reported that their organizations identified needs for improved skills or knowledge by appraisal and performance reviews as shown by 93.3% of the respondents and also by informal identification as shown by 53.3% of the respondents.

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Table 15: Existing potential skills and competence to a to no less extent extent 0 6.7 0 6.7 0 0 0 30 0 6.7 0 6.7 0 6.7 6.7 6.7 6.7 6.7 13.3 0 6.7 3.3 to a moderate extent 0 0 16.7 16.7 6.7 20 20 20 23.3 63.3 13.3 to a to a very large large extent extent mean 40 53.3 4.4 46.7 46.7 4.3 50 33.3 4.2 40 13.3 3.4 56.7 30 4.1 33.3 40 4 23.3 50 4.1 36.7 30 3.8 20 43.3 3.9 23.3 0 2.9 56.7 20 3.8

achievement of objectives Productivity Competence Flexibility Quality Skills contribution to team business awareness customer care financial awareness working relationships aligning personal objectives with organizational objectives 10

13.3

23.3

30

23.3

3.4

The respondents were also requested to asses the existing skills and potential using the above performance measures. From the study, performance measure that were used in assessing the existing /potential skills and competencies to a large extent were; achievement of objectives as shown by mean score of 4.4, productivity as shown by a mean sore of 4.3, competence and contribution to team as shown by mean score of 4.1 in each case, skills as shown by mean score of 4, customer care as shown by mean score of 3.9, business awareness and working relationships as shown by a mean score of 3.8 in each case. The performance measure that were used to a moderate extent were; Flexibility and aligning personal objectives with organizational objectives as shown by a mean score of 3.4 in each case and financial awareness as shown by a mean score of 2.9.

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Table 16: Processes Helpful In Defining the Effectiveness of Individual Manager and Their Development Needs to a to a to a to a very to no less moderate large large extent extent extent extent extent mean appraisal and performance reviews 3.3 6.7 13.3 33.3 43.3 4.1 psychological tests 76.7 10 3.3 10 0 1.5 informal identification 20 16.7 50 6.7 6.7 2.6 panel or group interviews 40 13.3 26.7 10 10 2.4 assessment centres 56.7 20 16.7 0 6.7 1.8 intuitive methods 33.3 16.7 33.3 0 16.7 2.5 assignments and special responsibilities 20 13.3 16.7 16.7 33.3 3.3 The respondents were requested to rank different processes on how they helped in defining the effectiveness of individual manager and their development needs. The study found that the processes that were helpful in defining the effectiveness of individual managers and their development needs to a large extent were appraisal and performance reviews as shown by a mean score of 4.1. The processes that were found to be helpful to a moderate extent in the majority of the organizations were assignments and special responsibilities as shown by a mean score of 3.3, informal identification shown by a mean score of 2.6 and intuitive methods as shown by a mean score of 2.5, while the processes that were helpful in defining the effectiveness of individual managers and their development needs to a less extent were panel or group interviews shown by a mean score of 2.4 and psychological tests as shown by a mean score of 1.5.

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Table 17: Informal Learning Opportunities Worked For the Organizations to a to a to a to a very to no less moderate large large extent extent extent extent extent mean Situations within the organization meetings 0 3.3 50 46.7 0 3.4 tasks/projects 6.7 6.7 36.7 40 10 3.4 customer visits 6.7 0 30 33.3 20 3.7 foreign travel 20 40 23.3 13.3 3.3 2.4 processes coaching 0 13.3 60 23.3 3.3 3.2 counselling 3.3 20 66.7 6.7 3.3 2.9 modelling on boss 3.3 43.3 26.7 26.7 0 2.8 problem solving 3.3 3.3 46.7 40 6.7 3.4 mentoring 3.3 46.7 36.7 6.7 6.7 2.7 public speaking 10 53.3 26.7 10 0 2.4 Situations outside the organization charity/social responsibility 3.3 industry committee 10 sports club 33.3 People mentor 20 network contacts 10 consultants 13.3 subordinates 20

30 43.3 36.7 16.7 23.3 26.7 26.7

36.7 6.7 13.3 56.7 46.7 26.7 36.7

23.3 30 10 6.7 10 33.3 16.7

6.7 10 6.7 0 10 0 0

3.3 2.9 2.2 2.5 2.9 2.8 2.5

The respondents were also requested to indicate the extent that the informal learning opportunities with regards to situations within the organization, processes, situations outside the organization and people in the above table worked for the organization. From the findings, on the situations within the organization customer visits worked for the organizations to a large extent as shown by a mean score of 3.7, meetings and tasks/projects worked for the organization to a moderate extent as shown by a mean score of 3.4 in each case, while foreign travel worked for the organization to a les extent as shown by a mean score of 2.4. On processes, the study found that problem solving worked for the organization to a moderate extent as shown by a mean score of 3.4, coaching shown by a mean score of 3.2, counselling shown by a mean score of 2.9, modelling on boss as shown by a mean score of 2.8 and 40

mentoring as shown by a mean score of 2.7, while public speaking worked for the majority of the organizations to a less extent as shown by a mean score of 2.4. On situations outside the organizations, the study found that charity/social responsibility and industry committee worked for the majority of the organizations to a moderate extent as shown by mean score of 3.3 and 2.9 respectively, while sports club worked for the majority of the organizations to a less extent as shown by a mean score of 2.2. On people, mentors, network contacts, consultants and subordinates all worked for the majority of the organizations to a moderate extent as shown by a mean score of 2.5, 2.9, 2.8 and 2.5 respectively.

Table 18: Level of Contribution Made By the Processes in the Development of Managers very very low low moderate high high mean classroom-lectures, seminars, full time study 0 26.7 40 33.3 0 3.1 laboratory and workshop 36.7 26.7 23.3 13.3 0 2.1 projects/additional tasks 10 13.3 40 26.7 10 3.1 secondments 33.3 33.3 30 0 3.3 2.1 job rotation 23.3 60 13.3 0 3.3 2 promotions (vertical and horizontal) 20 20 23.3 26.7 10 2.9 competency training- 'can do' elements of work 0 43.3 20 26.7 10 3 open and distant learning 16.7 70 3.3 10 0 2.1 computer aided and web based learning (decision making, systems operations, 'what if') 23.3 63.3 0 13.3 0 2 mentoring, coaching and counselling 10 53.3 26.7 6.7 3.3 2.4 reading (circulation of important articles) 3.3 23.3 23.3 23.3 6.7 2.9 junior boards/conference leadership (organize and chair problem solving conferences) 16.7 50 16.7 6.7 10 2.4 The researcher also requested the respondents to indicate the level of contribution made by the processes in the above table in the development of managers. From the study, the processes that contributed in the development of managers to a moderate extent were classroom-lectures, seminars, full time study and projects/additional tasks as shown 41

by a mean score of 3.1 in each case, competency training- 'can do' elements of work as shown by a mean score of 3 and also promotions (vertical and horizontal) and reading (circulation of important articles) as shown by a mean score of 2.9 in each case. Further, the study found that the other factors contributed in the development of managers to a less extent. These factors were mentoring, coaching and counselling and junior boards/conference leadership (organize and chair problem solving conferences) as shown by a mean score of 2.4 ion each case, laboratory and workshop, secondments and open and distant learning as shown by a mean score of 2.1 in each case, and job rotation and computer aided and web based learning (decision making, systems operations, 'what if') as shown by a mean score of 2 in each case. Table 19: Factors That Have Attributed To the Success of Formal Management Development Processes not at all a little fairly extremely mean the enthusiasm and commitment of top management 13.3 20 43.3 23.3 2.8 the content of the scheme 20 20 60 0 2.4 your own involvement and influence 13.3 6.7 66.7 13.3 2.8 the involvement and influence of the predecessor 30 20 43.3 6.7 2.3 The findings in the above table shows the extent to which the factors in the above table had attributed to the success of formal management development process. From the study, the enthusiasm and commitment of top management and own involvement and influence had attributed to the success of formal management development process fairly as shown by a mean score of 2.8 in each case, while the content of the scheme and the involvement and influence of the predecessor attributed to the success of formal management development process to a little extent as shown by mean score of 2.4 and 2.3 respectively.

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Table 20: Ownership of the management development scheme Frequency the department managers the human resource managers both none Total 6 2 16 6 30 Percent 20.0 6.7 53.3 20.0 100.0

The study also sought to find out who really owned the management development scheme. From the study, the majority of the respondents reported that it was owned by both the departmental managers and also the human resource manager, the respondents who said that it was owned by the departmental managers and those who said none tied at 20%, while 6.7% of the respondents said that it was owned by the human resource managers.

Demonstration of the Ownership of the Management Development Process The respondents were also requested to indicate how the ownership of the management development process was demonstrated. From the study, the ownership was demonstrated by identification of needs, commitment to the programs, by individual authority, some corporate goals, achievement of objectives, implementation decisions are made collectively, full participation, identifying the areas of need and training solutions and also by participating in assessing training needs and nominating individuals for training and there after assessing learning.

Balance of the formal as compared to informal processes of development From the study, on the balance of formal as compared to informal processes of development, the formal processes were found to have a greater percentage than the informal processes. This was because some companies were young and there was currently more focus on business development and growth, most development was done through formal training and the organization was yet to get informal training, because of lack of real ownership of the process and also because of lack of insufficient informal structure.

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Table 21: Major Change in the Appraisal Processes over the Last 5 Years yes no Not applicable Total Frequency 19 10 1 30 Percent 63.3 33.3 3.3 100.0

The respondents were also asked whether there had been a major change in their appraisal processes over the last 5 years. The majority of respondents as shown by 63.3% said that there was a major change in their appraisal processes over the last 5 years, 33.3% reported that there was no major change in their appraisal processes over the last 5 years, while 3.3% of the respondents reported that this was not applicable in their organization. Causes of the changes The study also found that the changes were caused by the demands of the business and company strategy, high turnover of the management, previous process outdated, introduction of more interactive appraisal form, recommendation by consultant, demand of business and company strategy and also because of the dynamism of the industry.

The study also found that if there had been no change, this would be attributed to fear of change, the organization is still new and working, it had been considered irrelevant and it had been based on bad decision.

The far up the organization that formal performance appraisal go On how far up the organization that the formal performance appraisals go, the study found that in the majority of the organizations, it goes up to the top management.

Whether the CEO appraise his/her direct reports From the study, the chief executive directors in the insurance industry appraised their direct reports.

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Table 22: Bases of the Appraisal Process yes personality characteristics 76.7 performance/results 90 behaviour/skills 90

no 23.3 10 10

The respondents were also asked to state the bases that their appraisal process. From the findings, the majority of the respondents said that it was based on the performance/results and behaviour/skills as shown by 90% in each case, while 76.7% of the respondents reported that the appraisal process in their organization was based on the personality characteristics. Reasons for the Bases of Appraisal Process The respondents also said that the basis of the appraisal process depended on the nature of the job, client focused, it is an interactive appraisal process, all the bases were important for financial service organization, the combination gives a true analysis of the individual, all contribute to desired performance, its the fairest way to appraise, to get good feel of the individual and also to evaluate both performance and behaviour of the individual. Table 23: Potential Objectives Focused When Setting Up an Appraisal Scheme yes no personality characteristics 56.7 43.3 performance/results 100 0 behaviour/skills 76.7 23.3 The study also sought to establish the potential objectives that the organizations would focus on if they were setting up an appraisal scheme. From the study all the respondents said that that they would focus on performance/results, majority of the respondents as shown by 76.7% said that they would focus on behaviour/skills, while 56.7% of the respondents reported that they would focus on personality characteristics. The respondents also reported that the reasons for the above basis were that ones personality will influence their job, their performance will measure their results and their behaviour may lean towards their character, performance because of the time the results are target based, to make it fair as possible, people do the work and need to be equipped to deliver results, ones personality will influence their job, behaviour may run towards their character, results are key to any 45

organization success and it also indicates the staff ability to achieve key performance indicators. Greatest strengths of the organizations processes for establishing potential According to the study, the greatest strengths of the organizations processes for establishing potential were human capital development efforts, psychometric testing and evaluation, behaviour interviews, people skills, special assignment and monitoring individual capability, recruiting professionals, sponsorship training seminars and workshops in relevant fields, qualified personnel in IT, flexibility and innovation and ability of staff to harmonize their growth and potential.

Greatest weaknesses of the processes The study also found that the greatest weaknesses of the organizations processes for establishing potential were time and financial pressures, poor services, no clear structure for promotion, features not formally recorded, some staff are unable to bring important aspect of themselves to light due to personal traits and also culture for structuring the organization strategic plans and resistance to change.

Greatest strengths in the promotion process On the greatest strengths in the promotion process, the study found them to be open and result based, large pool of qualified staff, hard work and honesty, performance and demonstration of excellent skills and competence, results oriented, promotion on merit which is the fairest, transparency and fair and transparent appraisal system. Greatest weakness in the process The greatest weaknesses in the promotion process were found to be positions are few and most staff give up, lack of motivation, its not clear on the basis of promotion, time taken in promotion, hard work can be overlooked, subjective at times and change in remuneration is below staff expectations.

46

Planning for future management succession The respondents were also asked to state what they had in terms of planning for future management succession. From the findings, the respondents reported that the organizations had management training programs, job rotation and growing staff competency, strategic succession planning, succession planning policy, well designed succession plan for all departments through the ICT system, long term retention scheme, identifying the possible successors for all key positions and planned development plans for all individuals and also implementation of a full human resource process that will address succession in the organization.

Whether formal plans are used when vacancies arise The study also sought to find out whether formal plans were used when vacancies arose. From the findings, the majority of the organizations used the formal plans through the staff audit, interviews from within and they were also used in the process of selecting candidates to fill positions that arose or were created.

Whether the concept of a succession plan are attractive to the managers The concept of succession plan was attractive to the managers in most organizations, but to the others, it was not attractive to the managers as it was found to be a threat, there was high internal competition on promotion, managers think that they will be faced out, they are not well structured especially for middle management and also it results to some managers loss of income. Table 24: Development Processes/Activities Used By the Organizations yes no appropriate to need 66.7 30 convincing to managers 63.3 33.3 appropriate to individual 46.7 50 based on management reality 73.3 23.3 The study also sought to find out whether the development processes/activities used by the organizations in the above table were used by the insurance companies. From the findings the development processes/activities used by the majority of the organizations were management reality as shown by 73.3% of the organizations, appropriate to need as shown by 66.7% and

47

convincing to managers as shown by 63.3% of the respondents. Appropriate to individual was not used by the majority of the organizations as shown by 50% of the respondents. Table 25: Whether Sufficient Management Training Is Being Undertaken By the Managers at Present yes no Total Frequency 7 23 30 Percent 23.3 76.7 100.0

The findings in the above table revealed that sufficient management training was not being undertaken by the managers as shown by 76.7% of the respondents, while 23.3% of the respondents reported that sufficient management training was not being undertaken by the managers. Table 26: Overall Level of Change in Provision of Management Development Services and Supports Required For the Managers no change tweaking the existing arrangements a new programme a fundamental restructuring Total Frequency 2 8 1 19 30 Percent 6.7 26.7 3.3 63.3 100.0

The study also sought to establish the overall level of change in provision of management development services and supports required for the managers. The majority of respondents as shown by 63.3% said that there was a fundamental restructuring, 26.7% said that there was tweaking the existing arrangements, 6.7% of the respondents said that there was no change, while 3.3% of the respondents said that there was a new programme.

48

Responsibility of providing/delivering management development to the company if change is required The study found that management development in the companies should be provided/delivered by HR consultants, HR managers in collaboration with the line managers and the directors, reputable programs within the country, all staff-management and non-management, company directors, special consultants, CEO and others said departmental managers in collaboration with HR managers. Table 27: Current Contribution of a Range Of Education and Training Providers of Management Development within the Company not at all a frequently a little little fairly used mean Kenyan universities 13.3 13.3 23.3 40 3 open university 23.3 33.3 33.3 0 2.1 private trainers/training companies 13.3 13.3 23.3 46.7 3.1 E-learning 16.7 33.3 33.3 6.7 2.3 popular management literature 13.3 20 43.3 33.3 2.6 The researcher also sought to find out the extent of the current contribution of a range of education and training providers of management development within the company. From the findings, private trainers/training companies, Kenyan universities and popular management literature contributed to the range of education and training providers of management development within the company fairly as shown by mean score of 3.1, 3 and 2.6 respectively, while E-learning and open university contributed to a little extent as shown by a mean score of 2.3.

49

Table 28: Barriers to Management Training and Development to a to a to a to no less moderate large extent extent extent extent time constraint 10 0 40 23.3 cost of courses 10 3.3 30 13.3 lack of relevance 23.3 43.3 23.3 10 local unavailability 16.7 26.7 36.7 10 key topics unavailable 30 50 16.7 3.3 insufficient course information 36.7 43.3 13.3 6.7 insufficient information on quality 23.3 46.7 16.7 6.7

to a very large extent 26.7 43.3 0 10 0 0 6.7

mean 3.6 3.8 2.2 2.7 1.9 1.9 2.3

The study also sought to establish the extent that the above were barriers to management training and development in the insurance industry. From the study, the variables that were barriers to management training and development to a large extent were cost of courses and time constraint as shown by mean scores of 3.8 and 3.6 respectively, while local unavailability was a moderate barrier to management training and development. Further, the study found that the variables that were barriers to management training and development to a less extent were insufficient information on quality as shown by a mean score of 2.3, lack of relevance as shown by a mean score of 2.2, and key topics unavailable and insufficient course information as shown by a mean score of 1.9 in each case. Other barriers to management development The other barriers identified as barriers to management development were the company culture, poor priority by management, lack of funds within the organization, top management support, reward structure, lack of focus/vision, lack of proper planning, inadequate communication, lack of planning especially in finance, infighting of managers in various levels, lack of clear identification of management development needs, lack of commitment and lack of shared value.

Remedying the principal barriers to management development The respondents were also requested to suggest the remedies of the principal barriers to management development. From the study, the respondents suggested that training and team 50

building activities should be conducted to bring about cohesion amongst staff members, but it needs to start with the management, involvement of staff in planning for training, assisting managers identify and appreciate needs and benefits of training, frequent internal communication, training on change of management, management training on the company projection of the year, employees should also be allocated a number of training days per year, business rewards restructuring, sensitization on the need to strike a balance between management and its development, there should be a constant consultation with other players and also there should be allocation of funds for training. Table 29: Budget Allocated To the Training and Development of Managers 10% 30% 40% 70% none Total Frequency 21 1 1 2 5 30 Percent 70.0 3.3 3.3 6.7 16.7 100.0

The study also sought to find out the budget that was allocated to the training and development of managers. From the findings, the majority of the respondents reported that the budget that was allocated to the training and development of managers in their organization was 10% as shown by 70% of the respondents, 16.7% said that there was no budget allocated for the training and development of managers in their organization, 6.7% said 70%, while the respondents who said 30% and 40% tied at 3.3%.

Evaluation of investment in management development The respondents were also requested to suggest how they evaluated their investment in management development. From the findings, the study found that the investment in the management development was very low, there was no good trend, and it was rarely done. Others said that there were improved results, better coordination and communication results, employee morale/motivation had been boosted while other said that it needs to increase in their organization.

51

CHAPTER FIVE DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS 5.1 Discussions The aim of this study was to establish the management development strategies used by insurance companies in Kenya. From the study, the researcher found that the role that management development played in the insurance companies was developing the managers potential and also remedying their weaknesses. The internal factors that influenced management development in the organizations to a large extent were commitment to professional, top management support and interest in the profession. Other factors that influenced management development to a moderate extent were initiative and group factors e.g. interaction, communication, negotiation skills, feedback, culture, involvement of consultants, organization re-structure, board of directors, history, lack of motivation, increased responsibility, job redesign, time factors, insufficient learning culture and unclear roles and follower factors i.e. employees managed. The external factors that had an impact on management development in the organizations to a large extent were developments in technology and demands by clients of the organization, while availability of development interventions and Macro Economic conditions had a moderate impact on the management development in the organizations. The study also found that the general management skills in the insurance industry in terms of organization, management of quality, planning and controlling the business were rated as good in most organizations, while structuring the organization, crisis management, project management, delegation and developing company culture were rated as average in the majority of the organizations. The functional management skills that were rated as good in the majority of the organizations were customer service, sales, training, finance, operations and supply chain, while the human resources, marketing, I.T and research and development were rated as moderate in the majority of the organizations. The study also established that the needs for improved skills or knowledge in most organizations were identified by appraisal and performance reviews and also by informal identification. The researcher also found that the performance measures that were used in assessing existing/potential skills and competencies to a large extent were achievement of objectives, 52

productivity, competence, contribution to team, skills, customer care, business awareness and working relationships, while flexibility and aligning personal objectives with organizational objectives were used to a moderate extent. The study also found that there were some processes that were helpful in defining the effectiveness of individual managers and their development needs. These processes were appraisal and performance reviews which were helpful to a large extent, while the processes that were found to be helpful to a moderate extent in the majority of the organizations were assignments and special responsibilities, informal identification and intuitive methods. From the study, the informal learning opportunities that had worked for the organization were customer visits, meetings, and tasks/projects, problem solving, coaching, counselling, and modelling on boss, mentoring, charity/social responsibility, industry committee, mentors, network contacts, consultants and subordinates. The processes that had contributed in the development of managers but to a moderate extent were classroom-lectures, seminars, full time study, projects/additional tasks, competency training- 'can do' elements of work and also promotions (vertical and horizontal) and reading (circulation of important articles). The factors that fairly attributed to success of formal management development processes in the majority of the organizations were the enthusiasm and commitment of top management and own involvement and influence. The study also found that both the departmental managers and the human resource managers in most organizations owned the management development scheme and they demonstrated the ownership of the management development process by identification of needs, commitment to the programs, by individual authority, some corporate goals, achievement of objectives, implementation decisions are made collectively, full participation, identifying the areas of need and training solutions and also by participating in assessing training needs and nominating individuals for training and there after assessing learning. The study also found that formal process of development had a greater percentage than the informal processes of development in most organizations. This was because some companies were young and there was currently more focus on business development and growth, most development was done through formal training and the organization was yet to get informal training, because of lack of real ownership of the process and also because of lack of insufficient informal structure. It was also clear that there were major changes in the appraisal processes in the insurance industry over the last 5 years. These changes were caused by the demands of the business and company 53

strategy, high turnover of the management, previous process outdated, introduction of more interactive appraisal form, recommendation by consultant, demand of business and company strategy and also because of the dynamism of the industry. The researcher also found that in most organizations the formal performance appraisal went up to the senior management level and the chief executive directors appraised their direct reports. In most organizations, the appraisal process was based on performance/results, behaviour/skills and also on the personality characteristics. The majority of respondents also reported that if they were setting up an appraisal scheme, they would focus on performance/results, behaviour/skills and also on personality characteristics. According to the study, the greatest strengths of the organizations processes for establishing potential were human capital development efforts, psychometric testing and evaluation, behaviour interviews, people skills, special assignment and monitoring individual capability, recruiting professionals, sponsorship training seminars and workshops in relevant fields, qualified personnel in IT, flexibility and innovation and ability of staff to harmonize their growth and potential, while the greatest weaknesses were time and financial pressures, poor services, no clear structure for promotion, features not formally recorded, some staff were unable to bring important aspect of themselves to light due to personal traits and also culture for structuring the organization strategic plans and resistance to change. The study also found that the greatest strengths in the promotion process were open and result based promotions, large pool of qualified staff, hard work and honesty, performance and demonstration of excellent skills and competence, results oriented, promotion on merit which is the fairest, transparency and fair and transparent appraisal system, while the greatest weaknesses in the process were that positions were few and most staff give up, lack of motivation, its not clear on the basis of promotion, time taken in promotion, hard work can be overlooked, subjective at times and change in remuneration is below staff expectations. In terms of planning for future management succession, most organizations had management training programs, job rotation and growing staff competency, strategic succession planning, succession planning policy, well designed succession plan for all departments through the ICT system, long term retention scheme, identifying the possible successors for all key positions and planned development plans for all individuals and also implementation of a full human resource process that will address succession in the organization. The study also found that most of the 54

organizations used the formal plans through the staff audit, interviews from within and they were also used in the process of selecting candidates to fill positions that arose or were created. The concept of succession plan was also found to be attractive to most managers in the insurance companies. According to the study, the development processes/activities used by the organizations were management reality, appropriate to need and convincing to managers. The study also made it clear that sufficient management training was not being undertaken by the managers at present in the majority of the organizations. The overall level of change in provision of management development services and supports required by managers in most organizations was a fundamental restructuring. Most respondents also felt that management development in their companies should be provided / delivered by HR consultants, HR managers in collaboration with the line managers and the directors, reputable programs within the country, all staff-management and non-management, company directors, special consultants, CEO and departmental managers in collaboration with HR managers. The study also found that the education and training providers of management development such as private trainers/training companies, Kenyan universities and popular management literature contributed fairly to the companies. It was also found that the barriers to management training and development in most organizations were cost of courses and time constraint. Other barriers to management development identified were company culture, poor priority by management, lack of top management support, reward structure, lack of focus/vision, lack of proper planning, inadequate communication, and lack of planning especially in finance, infighting of managers in various levels, lack of clear identification of management development needs, lack of commitment and lack of shared value. The remedies to the principal barriers to management development identifies were that training and team building activities should be conducted to bring about cohesion amongst staff members, but it needs to start with the management, involvement of staff in planning for training, assisting managers identify and appreciate needs and benefits of training, frequent internal communication, training on change of management, management training on the company projection of the year, employees should also be allocated a number of training days per year, business rewards restructuring, sensitization on the need to strike a balance between management and its development, there should be a constant consultation with other players and also there should be allocation of funds for training. 55

In most companies, the budget allocated to the training and development of managers was 10%. The investment in management development was found to be very low, there was no good trend, and it was rarely done. Some respondents felt that there were improved results, better coordination and communication results, employee morale/motivation had been boosted while other said that it needs to increase in their organization. 5.2 Conclusions From the study, the researcher concluded that for the organizations to identify the needs for improved skills or knowledge, they used strategies such as appraisal and performance reviews and also informal identification. The informal learning opportunities that worked for the organizations development process were meetings, tasks/projects, customer visits, coaching, counselling, and modelling on boss, problem solving, mentoring, charity/social responsibility, industry committee, mentor, network contacts, consultants and subordinates. The factors that attributed to the success of formal development processes were the enthusiasism and commitment of top management and management own involvement and influence. The study also concluded that the internal factors that influenced management development in the organizations were commitment to professional, top management support and interest in the profession, initiative and group factors e.g. interaction, communication, negotiation skills, feedback, culture, involvement of consultants, organization re-structure, board of directors, history, lack of motivation, increased responsibility, job redesign, time factors, insufficient learning culture and unclear roles and follower factors i.e. employees managed. The external factors that had an influence on management development in the organizations were developments in technology and demands by clients of the organization, and availability of development interventions and Macro Economic conditions. There were also barriers to management training and development in the insurance companies. The barriers included; cost of courses and time constraint, company culture, poor priority by management, lack of top management support, reward structure, lack of focus/vision, lack of proper planning, inadequate communication, and lack of planning especially in finance, infighting of managers in various levels, lack of clear identification of management development needs, lack of commitment and lack of shared value.

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5.3 Recommendations From the findings, the study recommended that for managers in the insurance industry to effective and efficient in the management of their organizations, sufficient training should be undertaken. For efficient management, enough budgets should be allocated to the training and development of managers. The study also concluded that for the organizations to remedy the barriers to management development, the staff should be involved in the planning of training and development, managers should be assisted in identifying and appreciating the needs and benefits of training, there should be frequent internal communication, training on change of management should be provided, and also there should be a constant consultation with other players.

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Pedler, M (Ed) (1991). Action Learning in Practice. London. Gower. Pedler, M. et al. (1994), A Managers guide to Self Development, McGraw Hill.

Schoenfeldt, L. F, and Steger, J. A. (1990). Identification and development of managerial talent. Greenwich, CT: JAI Press. Terry, R. W,(1993) Authentic Leadership: Courage in action. San Francisco, CA: Jossey Bass.

Thompson, J. L (2001) Strategic Management. Thompson Learning William J. Kearney and Desmond D. Martin, Sensitivity Training: An Established Management Development Tool? Academy of Management Journal, 17 (December 1974),

http://en.wikibooks.org/wiki/Learning_theories/organizational_learning: influencing factors.

60

APPENDICES Appendix 1: Insurance Companies in Kenya 1. African Merchant Assurance Company Ltd. 2. A.I. G Kenya Insurance Co. Ltd 3. APA Insurance Co. Ltd 4. Blueshield Insurance Co Lt. 5. British American Insurance Co Ltd Transnational Plaza, Mama Ngina Street. Mamlaka, Road, Nairobi. Hughes Building, Kenyatta Avenue Raghvani House, Tom Mboya Street. British American Centre, Mara & Ragati Rds, Upper Hill. 6. Cannon Assurance (K) Ltd. 7. Concord Insurance Co Ltd 8. CFC Life Assurance Co Ltd 9. Cooperative Insurance Co Ltd 10. Corporate Insurance Co Ltd Haile Selasie Avenue. Harambee Plaza, Haile Selasie Avenue. Mamlaka Road. Mara Road, Upper Hill. Corporate Place, Kiambere Road. Upper Hill. 11. Directline Assurance Company Ltd 12. Fidelity Shield Insurance Co. Ltd Hazina Towers, Monrovia Street. Southern Shield Complex, Waiyaki Way. 13. First Assurance Co. Ltd 14. Gateway Insurance Co Ltd. 15. Geminia Insurance Co. Ltd 16. General Accident Insurance Co. Ltd Yaya Centre, Argwings Kodhek Rd. Gateway Place, Milimani Road. Agip House, Haile Selasie Avenue. General Accident House. Ralph House Road. 17. Heritage A. I. I. Insurance Co Ltd 18. Insurance Company of East Africa Ltd 19. Intra Africa Assurance Co Ltd. 20. Jubilee Insurance Co Ltd. 21. Kenindia Assurance Company Ltd 22. Kenya Orient Insurance Co Ltd. 23. Kenyan Alliance Insurance Co Ltd 24. Lion of Kenya Insurance Company Ltd C. F. C Centre, Chiromo Road. ICEA Building, Kenyatta Avenue. Williamson House, 4th Ngong Avenue. Jubilee Insurance House, Wabera Street. Kenindia House, Loita Street. Capitol Hill Towers, Cathedral Road. Chester House, Koinange Street. Williamson House, 4th Ngong Rd Av. 61

25. Madison Insurance Co. Ltd 26. Mayfair Insurance Ltd.

Madison House, Off Upper Hill Rd. Barclays Plaza, Loita Street.

27. Mercantile Life & General Assurance Co. Ltd. Fedha Towers, Muindi Mbingu Street. 28. Metropolitan Life Insurance Kenya International Life House, Mama Ngina Street. 29. Occidental Insurance Co Ltd. 30. Old Mutual Insurance Co Ltd. 31. Pacis Insurance Co Ltd. 32. Pan Africa Life Assurance Ltd. 33. Phoenix of East Africa Insurance Co Ltd. 34. Pioneer Assurance Co Ltd. 35. Real Insurance Company of East Africa 36. Standard Assurance Kenya Ltd. 37. Tausi Insurance Co Ltd Post Bank House, Market St. Mutual Building, Kimathi St. Centenary House, Off Ring Rd, Westlands. Pan African House, Kenyatta Av. Ambank House, Kenyatta Avenue. Pioneer House, Moi Avenue. Royal Ngao House, Hospital Rd. Haraambe Plaza, Haile Selasie Av. Swan Court, Mikindiri Rd. Westlands. 38. The Monarch Insurance Co. Ltd 39. Trident Insurance Co Ltd. 40. Trinity Life Assurance Co Ltd. 41. UAP Provincial Ins. Co Ltd. Chester House, Koinange St. Capital Hill Towers, Cathedral Rd. Reinsurance Plaza, Taifa Rd. Bishops Garden Towers, 1st Ngong Av.

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Appendix II: Mumfords approaches to development

Type 1: Informal Managerial accidental process. Characteristics: Type 2: integrated managerial opportunistic process Characteristics:

Occurs within manages activities Explicit intention is on task performance No clear development objectives Unstructured in development terms learning experiences

- Occurs within managerial activities -Explicit intention is both task performance and development - Clear development objectives. - Planned beforehand and / or reviewed subsequently as

Not planned in advance Owned by managers. - Owned by managers. Development Consequences:

Development consequences:

Learning real, direct, unconscious, and insufficient. Type 3: Formalized development planned process Characteristics;

Learning is real, direct, conscious, and more substantial.

Often away from normal managerial activities Explicit intention is development Clear developmental objectives Structured for development by developers Planned beforehand or reviewed subsequently as learning experiences. Owned more by developers than managers

Development consequences; Learning may be real (through a job) or detached (through a course). Is more likely to be conscious, relatively infrequent.

63

Appendix III: Burgoynes Model

Levels of maturity of organizational management development
1 No systematic 2 Isolated tactical 3 Integrated coordinated structural development tactics. and 4 A management 5 Management Development to strategy input to corporate formation. policy 6 Strategic Development management corporate policy of of

management development.

management development.

development strategy implement corporate policy

There are isolated No systematic or deliberate management development in a structural developmental sense. Total and ad hoc tactical management development activities, of either structural developmental kinds, or both in response to local problems, crises or sporadically identify problems. general or The specific

management

Management development processes information corporate decision feed into policy making Management development processes enhance the nature and of policy

development strategy plays its part in

management development tactics impinge that directly

implementing corporate policies through managerial human resource planning,

quality corporate

on the individual manager, of career structure management of learning integrated coordinated. and

processes on the organizations managerial assets, strengths, weaknesses and potential, and and

forming processes, which they also inform and help implement.

reliance on laissez faire uncontrived process management development. of

and providing a strategic framework

assisting are and

direction for the tactics of career structure management of education training. and

contribute to the forecasting analysis of and the of

manageability

learning, and

proposed projects ventures.

Source: Burgoyne (1998)

64

Appendix IV: Letter of Introduction LETTER OF INTRODUCTION P. O. Box 51701, 00100 Nairobi. Dear Sir / Madam,

RE: RESEARCH ON A SURVEY ON APPROACHES ADOPTED FOR MANAGEMENT DEVELOPMENT AMONG INSURANCE COMPANIES IN NAIROBI, KENYA.

I am a student at the University of Nairobi dong my masters degree in business administration (MBA). I am undertaking the above research project as part of my academia requirements.

I would be grateful if you could spare some time and fill the attached questionnaire - answering as honestly as possible.

The information that you shall give shall be treated with the utmost confidentiality, and will be used solely for the purpose for this research. However, the findings of this research may be availed to you upon completion of the research.

Upon competition of the questionnaire, kindly enclose in the envelope provided, and I will pick it up from your offices. In case of any queries do not hesitate to call me on 0722 864879.

Thank you for your cooperation.

Yours sincerely,

Carolyn A. Jumba. MBA Student.

65

Appendix V: Study Questionnaire A SURVEY OF THE APPROACHES ADOPTED FOR MANAGEMENT

DEVELOPMENT AMONG INSURANCE COMPANIES IN NAIROBI, KENYA ___________________________________________________________________________

This questionnaire seeks to establish management development approaches among insurance companies in Nairobi, Kenya. The information in this questionnaire will be treated confidentially, and will not be used for any other purposes other than academic. The researcher will be at hand to clarify issues, during the data collection process. ___________________________________________________________________________ INSTRUCTIONS.

A. Kindly complete this questionnaire, assessing your organizations capacity in the listed factors.

B. For each question, kindly determine the most suitable description or select the answer which closely describes your organizations management development process. C. If a question is not applicable, kindly mark N/A or if you simply do not have knowledge, mark N/K. ___________________________________________________________________________

66

Section A : General Information

1. Name of organization __________________________________________________ Respondents Title: ____________________________________________________

2.

3.

How long has your organization been in operation? [ [ [ ] Less than 5 years. ] Between 5 and 10 years. ] Over 10 years.

4.

How would you classify your organization in terms of ownership? Locally Owned Foreign Owned Both Local & Foreign

If both local & foreign, please indicate percentage of ownership: Local Foreign ____________% ___________%

5.

Number of years worked in the organization [ [ [ ] Less than 5 years. ] Between 5 and 10 years. ] Over 10 years.

6.

How many managers do you have in your organization? [ [ [ [ [ ] ] ] ] ] <5 5 to 10 10 to 20 20 to 30 >30 67

7.

How many are in the following categories?

a) Senior Management b) Middle Management c) Junior Management d) Supervisors

___________ ___________ ___________ ___________

8.

How many expatriates are in your firm?

[ [ [

] ] ]

1 2 5

Other ______

9.

The organization has a strategic plan

Yes [ ]

No [

10.

The organization has spelt out its vision

Yes [ ]

No [

11.

The organization has spelt out its strategic objectives

Yes [ ]

No [

12.

Does your institution have a published formal statement of its philosophy of management education and training? Is the companys management development strategy is related to the companys business plans? Yes [ ] No [ ] Yes [ ] No [ ]

13.

68

SECTION B: STRATEGIES USED FOR MANAGEMENT DEVELOPMENT

14.

What role does management development play within your organization?

Remedying weaknesses Developing potential Other

Yes [ ] Yes [ ]

No [ No [

] ]

_______________________________________________________________________ ___________________________________________________________________

15.

To what extent have the following internal factors influenced Management development within your organization?
To no Extent To a less To a extent To a To a very large extent moderate large extent extent

Culture History Initiative Commitment to Professional Development Interest in the profession Top Management support Involvement of consultants Lack of Motivation Unclear Roles Lack of Confidence Insufficient Learning Culture Lack of resources Increased responsibility Organization re-structure 69

Job Redesign Time Factors Group Factors e.g interaction, skills,

communication, feedback.

negotiation

Follower factors i.e employees managed Board of Directors

16.

To what extent has been the impact of the following external factors on Management development within your organization?
To no Extent To a less To a extent To a To a very large extent moderate large extent extent

Availability interventions

of

development

Macro Economic conditions Developments in technology Demands by clients of the organization

17.

How would you assess the level of the following general management skills in your company?

A. Excellent B. Good

C. Average

D. Inadequate

E. Poor

A Management of Quality

Management of Innovation

70

Planning

Organization

Structuring the organization

Controlling the business

Project Management

Delegation

Crisis Management

Developing company culture

18.

Rate the following functional management skills within your company (where applicable), using the following scale.

A. Excellent B. Good

C. Average

D. Inadequate

E. Poor

Sales

Training

Marketing

IT

71

R&D

Human Resources

Customer Service

Operations

Finance

Supply Chain

19.

How does your organization currently identify needs for improved skills or knowledge?

(Tick the appropriate box) Appraisal and Performance Reviews Psychological Tests Informal Identification Panel or Group Interviews Assessment Centers Intuitive Methods Assignments and Special Responsibilities

72

20. In assessing existing / potential skills and competencies, the extent the following performance measures are used is as follows:

To no Extent

To a less To a extent moderate extent

To a large extent

To a very large extent

Achievement of objectives Productivity Competence Flexibility Quality Skills Contribution to team Business Awareness Customer Care Financial Awareness Working Relationships Aligning personal objectives with organizational objectives

21. To what extent have the following processes been helpful been in defining the effectiveness of individual managers and their development needs?

To no Extent

To a less To a extent

To a

To a very large extent

moderate large extent extent

(Tick the appropriate box) Appraisal and Performance Reviews Psychological Tests Informal Identification Panel or Group Interviews 73

Assessment Centers Intuitive Methods

Assignments and Special Responsibilities

22. To what extent have the following informal learning opportunities worked for the organization?
To no Extent To a less extent To a To a To a very large extent moderate large extent extent

(Tick the appropriate box)

Situations within the organization

Meetings Tasks/Projects Customer Visits Foreign Travel

Processes

Coaching Counseling Modeling on Boss Problem Solving Mentoring Public Speaking

Situations outside the organization

Charity / Social Responsibility Industry Committee Sports Club

People

Mentor Network Contacts Consultants Subordinates 74

23.

What level of contribution has been made by the following processes in the development of managers? Very Low (Tick the appropriate box) Classroom - lectures, seminars, Low Moderate High Very High

full time study Laboratory and workshop Projects / Additional Tasks Secondments Job Rotation Promotions horizontal) Competency training can do elements of work. Open and Distant Learning Computer Aided & Web Based Learning (decision making, systems operations, what if) Mentoring, Counseling Reading ( circulation of important articles) Junior Boards / Conference Coaching & ( Vertical and

leadership ( organize and chair problem solving conferences)

75

24.

To what extent have these factors attributed to the success of formal management development processes? 1. Not At All 2. A Little 3. Fairly 4. Extremely

The enthusiasm and commitment of top management

The content of the scheme

Your own involvement and influence

The involvement and influence of your predecessor

25.

Who really owns the management development scheme?

The Departmental Managers The Human Resource Manager Both None

ii) How do they demonstrate the ownership of the Management Development Process? _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________

26.

What has been the balance of formal as compared to informal processes of development?

76

Formal Processes Informal Processes

________% ________%

ii) Why is this so? _______________________________________________________________________ _______________________________________________________________________ _________________________________________________________________

27.

Has there been any major change in your appraisal processes over the last 5 years?

Yes No

[ [

] ]

If Yes, what caused these changes? _______________________________________________________________________ _______________________________________________________________________ _________________________________________________________________

If there has been no change in the processes, what would you attribute this to? _______________________________________________________________________ _______________________________________________________________________ _________________________________________________________________

28.

i) How far up the organization does formal performance appraisal go? _______________________________________________________________________ ___________________________________________________________________ 77

ii) Does the Chief Executive appraise his / her direct reports? _____________________________________________________________________ _____________________________________________________________________

29.

Is your appraisal process based Yes No

a) Personality characteristics

b) Performance/results

c) Behavior/skills

What is the reason for whatever basis that has been chosen? _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________

30.

If you were setting up an appraisal scheme, on which of the potential objectives listed above for such a scheme would you focus on?

a) Personality characteristics

b) Performance/results

c) Behavior/skills

What is the reason for whatever basis that has been chosen? _____________________________________________________________________ _____________________________________________________________________ 78

_____________________________________________________________________

31.

What are the greatest strengths of your organizations processes for establishing potential? _______________________________________________________________________ _______________________________________________________________________ _________________________________________________________________

b) What are the greatest weaknesses of the processes? _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________

32.

a) What are the greatest strengths in your promotion process? _______________________________________________________________________ _______________________________________________________________________ _________________________________________________________________

b) What are the greatest weaknesses in the process? _______________________________________________________________________ _______________________________________________________________________ _________________________________________________________________

33.

a) What do you have at the moment in terms of planning for future management succession? _______________________________________________________________________ _______________________________________________________________________ _________________________________________________________________

b) If you have formal plans, have you checked to see whether they are used when vacancies arise?

79

_______________________________________________________________________ ___________________________________________________________________ _____________________________________________________________________

c) Is the concept of a succession plan attractive to your managers? If no, give reasons. _______________________________________________________________________ _______________________________________________________________________ _________________________________________________________________

34.

Are Development processes / activities used by your organization? (Yes) (No)

a) Appropriate to need

b) Convincing to managers

c) Appropriate to individual

d) Based on management reality

35

.Do you think that sufficient management training is being undertaken by your managers at present? Yes [ ] No [ ]

36.

What overall level of change in provision of management development services and supports do you think is required for your managers?

80

No Change

Tweaking the existing arrangements

A new programme

A fundamental restructuring

37.

If you believe that change is required, who do you think should provide/deliver management development to your company) _______________________________________________________________________ _______________________________________________________________________ _________________________________________________________________

38.

Please rate the extent of the current contribution of a range of education and training providers of management development within your company.

1. Not at All 2. A Little

3. Fairly

4. Frequently used

Kenyan Universities

Open University

Private Trainers/ Training Companies E Learning

81

Popular Management Literature

39. Below are some barriers to management training and development. To what extent are you affected by the listed variables?

To no Extent

To a less extent

To a

To a

To a very large extent

moderate large extent extent

Time Constraint

Cost of Courses

Lack of relevance

Local Unavailability

Key topics unavailable

Insufficient course Information

Insufficient Information on quality

40.

Are you able to identify other barriers to management development?

82

_______________________________________________________________________ _______________________________________________________________________ _________________________________________________________________

41.

What do you think can be done to remedy the principal barriers to management development identified? _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________

42.

How much of your budget is allocated to the training and development of managers?

10% 20% 30% 40% 50% None _____________

60% 70% 80% 90% 100%

43.

How do you evaluate your investment in management development? _______________________________________________________________________ _______________________________________________________________________ _________________________________________________________________

83