Management development programs Providing recommendations based on scientific evidence

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

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

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

4. 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

5. 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)

6. What management skills are most valuable?

7. 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)

8. 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)

9. Tonidandel et al. (2012) - Relative importance of managerial skills for predicting effectiveness 0.26 looks like: From http://rpsychologist.com/d3/correlation/

10. Tonidandel et al. (2012) - Relative importance of managerial skills for predicting effectiveness 0.36 looks like: From http://rpsychologist.com/d3/correlation/

11. Tonidandel et al. (2012) - Relative importance of managerial skills for predicting effectiveness 0.26 vs. 0.36 From http://rpsychologist.com/d3/correlation/

12. 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.

13. 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

14. 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

15. 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)

16. Can these skills be trained?

17. 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

18. Collins & Holton (2004) • Key findings • Objective managerial knowledge

19. 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 http://rpsychologist.com/d3/cohend/

20. 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 http://rpsychologist.com/d3/cohend/

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

22. 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 http://rpsychologist.com/d3/cohend/

23. 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 http://rpsychologist.com/d3/cohend/

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