Management development programs Providing recommendations based on scientific evidence Presented to Altria October 2, 2014

Questions of interest What management skills are most valuable? Can management skills be trained? If so, how effective are training programs?

Summary of group presentations Identified key management skills: Time management Leadership Communication Strategic thinking & planning

Examining the best scientific evidence We’ll examine two studies: Tonidandel et al. (2012) - Relative importance of managerial skills for predicting effectiveness Collins & Holton (2004) - The effectiveness of managerial leadership development programs: A meta-analysis of studies from 1982 to 2001

Examining the best scientific evidence Why did I pick these studies? Tonidandel et al. (2012) – Study focused on our question and had multiple sources of data (Level 4) Collins & Holton (2004) – A meta-analysis, which is an accumulation of the evidence (Level 1)

What management skills are most valuable?

Tonidandel et al. (2012) - Relative importance of managerial skills for predicting effectiveness Study details 733 managers Ratings of their managerial skills rated by peers Ratings of managerial effectiveness rated by their supervisor Managerial skills Human skills (e.g., interaction, collaboration) Administrative skills (e.g., organizing, delegating) Technical skills (e.g., technical knowledge) Citizenship behaviors (e.g., helping employees)

Tonidandel et al. (2012) - Relative importance of managerial skills for predicting effectiveness Study findings All management skills had a statistically significant positive correlation with managerial effectiveness (range from 0.26 to 0.36)

Tonidandel et al. (2012) - Relative importance of managerial skills for predicting effectiveness 0.26 looks like: From

Tonidandel et al. (2012) - Relative importance of managerial skills for predicting effectiveness 0.36 looks like: From

Tonidandel et al. (2012) - Relative importance of managerial skills for predicting effectiveness 0.26 vs From

Tonidandel et al. (2012) - Relative importance of managerial skills for predicting effectiveness So not a huge difference between the skills with the largest and smallest correlations. But… Then they asked what management skills explained supervisor-rated effectiveness more.

Tonidandel et al. (2012) - Relative importance of managerial skills for predicting effectiveness And found that: Administrative skill explained almost 39% of managerial effectiveness Human skills explained a little more than 32% of managerial effectiveness

Tonidandel et al. (2012) - Relative importance of managerial skills for predicting effectiveness Overall: Administrative & human skills most important Administrative skills Delegating Organizing Setting goals for others Attracting and hiring the best people Human skills Motivating employees Communicating with others Showing interest in employee needs From Scullen et al. (2003) - Evidence of the construct validity of developmental ratings of managerial performance

Tonidandel et al. (2012) - Relative importance of managerial skills for predicting effectiveness Overall: Administrative & human skills most important. This overlaps with our overall findings: Time management (Administrative skill) Leadership (Human skill) Communication (Human skill) Strategic thinking & planning (Administrative skill)

Can these skills be trained?

Collins & Holton (2004) - The effectiveness of managerial leadership development programs: A meta- analysis of studies from 1982 to 2001 Study details Statistically combined 83 studies All 83 studies had a formal training intervention aimed at improving managerial skills

Collins & Holton (2004) Key findings Objective managerial knowledge

Collins & Holton (2004) Key findings In comparison to a control group (group with no training) – managers that went through formal training program had an almost 1 standard deviation increase in objective managerial knowledge From

Collins & Holton (2004) Key findings 84% of the treatment group will be above the mean of the control group, 62% of the two groups will overlap There is a 76 % chance that a person picked at random from the treatment group will have a higher score than a person picked at random from the control group If 100 people go through the treatment, 34 more people will have a favorable outcome compared to if they had received the control treatment From

Collins & Holton (2004) Key findings Objective (other-rated) & subjective (self-rated) gain in managerial expertise

Collins & Holton (2004) Key findings In comparison to a control group (group with no training) – managers that went through formal training program had about a 0.4 standard deviation increase in managerial expertise from the pre-test and post-test From

Collins & Holton (2004) Key findings 66% of the treatment group will be above the mean of the control group, 84 % of the two groups will overlap There is a 61 % chance that a person picked at random from the treatment group will have a higher score than a person picked at random from the control group If 100 people go through the treatment, 15 more people will have a favorable outcome compared to if they had received the control treatment From

Conclusions What management skills are most valuable? o Administrative skills o Human skills Can management skills be trained? If so, how effective are training programs? o Yes o Compared to those who didn’t have any training, there’s a large increase in knowledge o Compared to before training, there’s a moderate increase in managerial expertise