Managers Are Trained — Not Born There is a b o o m in university-sponsored executive development p r o g r a m s teamed with in-company supervisory t r a i n i n g J f OUR OUT O F FIVE cliemical
process
industry companies t o d a y are using formalized "in-plant" t r a i n i n g programs for supervisory personiiel. And t w o o u t of three of these companies a r e currently sending executives t o universitysponsored advanced management courses. Result: M o r e t h a n 9 0 % of the companies confidently expect over the next 10 years to fill top m a n a g e m e n t ranks from within. T h e s e facts were revealed i n a r e c e n t industry-wide survey by C & E N . But with all that h.as b e e n said a n d written about "executive development," just what approach is proving most effective? It is too early for a clearcut answer applicable to b o t h large a n d small companies. Thus much is apparent: A canvass of dhemical companies shows emphasis t o d a y is o n t h e top a n d 2356
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bottom rungs of t h e administrative ladder. Faced w i t h keen competition for n e w technical graduates, companies a r e revamping trainee a n d indoctrination programs t o m a k e t h e m m o r e comprehensive a n d thereby more attractive to many potential employees. "An overall perspective of t h e company's operations within t h e first few years" is a selling point to management-minded technical graduates. Expansion a n d diversification a r e putting a premium on technical m e n with business sense. Chemical firms are turning to t h e university-sponsored programs to improve t h e executive talent t h e y have—to p r e p a r e p l a n t managers for vice presidents jobs, for example. These university programs for executive development have
blossomed in t h e past 10 years. At t h e end of t h e last w a r , programs of this type were offered b y only two universities—today at least 29 schools i n North America conduct executive training courses. T o these must b e added t h e m a n a g e m e n t course sponsored by t h e American Management Association a n d several others sponsored t»y consulting firms a n d t r a d e associations. T h e broad-purpc*se outside development p r o g r a m s (with e n e or two exceptions) r u n fn>m one t o 1 3 weeks. More t h a n 2500 men a x e currently taking p a r t each year. If Harvard's Advanced Management program is representative, as many a s one third of these people are from i:he chemical process industries (see C & E N , April 30, p a g e 2 1 4 2 ) . University-sponsored p r o g r a m s date
grams in the industry, C&EN has interviewed executives of a number of well known chemical companies. Here a r e the results:
Supervisory Training at Dow Three programs -for development of supervisors at D o w Chemicars Midland division are indicative of the companywide supervisory program: • A supervisory development program was initiated in 1947; it consists of a series of discussion meetings and lectures by outside experts and company executives for all first-line supervisors, assistant superintendents, superintendents, and section heads. Dow's SDP has a long-range objective and today from 900 to 10OO men are participating. One two-hour meeting is held each month. Topics discussed include: economics, labor contracts, human relations, job evaluation, job efficiency, interdepartmental problems, annual reports, and retirement and stock dividend plans. During t h e past year and a half, a study of work simplification has been initiated.
from 1 9 3 1 when M I T inaugurated its executive development program. By 1938 the MIT program was formally established as t h e Sloan Fellowship Program—a 12-month course for a few carefully selected executives. But best known, a n d certainly a pioneer in the field, is t h e advanced management program given by the Harvard Graduate School of Business Administration. Most recent addition to this growing list of university-sponsored courses is the executive development course to be started late this spring by the School of Commerce of McGill University. The McGill course will be limited to 40 people a n d extend for four weeks. Finance, h u m a n relations, and marketing are t h e proposed areas of study. W i t h all the emphasis on top and bottom m a n a g e m e n t levels, middle m a n a g e m e n t has not been completely neglected. Harvard and other universities h a v e tailor-made courses for this echelon. And the aim of the McGill course is " . . . t o prepare middle m a n a g e m e n t men for more senior responsibilities." But in-plant development for those in middle management is in m a n y cases limited to planned job rotation. To get a first-hand, up-to-the-minute, picture of personnel development pro-
• Supplementing Dow's long-range training program is another program referred to as the supervisory induction program established in 1951. First and second level supervision participate. It is a more concentrated program. Purpose is to train new plant a n d laboratory supervisors who have joined the company since the outset of the SDP. Some 400 men have taken part in the SIP five-day discussion course.
• A third program, relatively n e w .within the Midland division, is called the office supervisory development program. It is a three-day course with human relations being the principal theme. Purpose: to develop supervisors in the company departments with staff specialists functions, such as sales, purchasing, and engineering. Dow is starting this year to send employees to university-sponsored a d vanced management courses. And job rotation schemes are just getting established within the company on a somewhat formal basis. At Dow, development and administration of training programs for executives or supervisors is a responsibility of the industrial relations department.
Business Management at GE General Electric management has gone all out for manager training on the theory that the growth of any business can be limited fundamentally b y the extent to which i t can develop m e n to assume professional business leadership. This is the thinking in t h e company's chemical and metallurgical division. Here GE vice president Robert L . Gibson tells C&EN t h a t more than 100 men in his division are currently enrolled in a special coorse in professional business management. Before the e n d of this year Gibson expects to make this type of course available to m e n from all its seven departments.
Here is what they are saying about executive training— " N o t h i n g is more important t o the future of any company than proper training and development of its people," HARRY S. FERGUSON, vice president, Allied Chemical à- Dye. " M o r e than 100 men from our various departments (in chemical and metallurgical division) a r e currently enrolled in a special course in professional business management, a n d others will be enrolled shortly," ROBERT L. GIBSON, vice president, General Electric. " W e b r i e v e that our two-year trainee program will provide an exceller, source of future top m a n a g e m e n t personnel," RUSSELL F . ERIGKSON, vice president, Rayonier. " F o r e m o s t in Monsanto philosophy is that the most effective and useful development device—and it is generic in its application—is the successful doing of a job," A. J. PASTENE, manager, key employee development program, Monsanto Chemical. " W e have h a d over 3 0 m e n attend eight different programs during the last 4 years. . . . we feel w e have gained something very worth while from these programs," GEORGE W. BRICKER, JR., vice president, Celanese Corp. of America.
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GE's management consultation serv ice is conducting research into man agement principles a t a special manage m e n t school established b y that division just last fall a t Crotonville, Ν. Υ. "Professional business management courses have been designed especially for self-development of men through continued education that may or may not be directly related to a man's present job," says Gibson.
directed office for long range executive development planning. "It is our view that it is the responsibility of the head of each unit to practice himself, and to lead his organization to practice, careful evaluation of its professional, administrative, and supervisory people and to guide their development toward maximum utilization of their attitudes," says A. J. Pastene, manager of the company's key employee development program. Monsanto is using more formal uni versity education plans. Over the past few years 27 professional men have had a scholastic year's leave of absence with pay for advanced study in scien tific fields. In the same period, 3 5 men in advanced and administrative positions have been sent to university management courses such as those at Harvard, Columbia, and Pittsburgh. For supervisory and administrative men, Monsanto is encouraging partici pation in such outside activities as the American Management Association. The PRES board (C&EN, Dec. 5, 1955, page 5246) is a technique for management development being used by several Monsanto divisions. These are product-group boards comprising production, research, engineering, and sales representatives. Groups inten sively study and report opportunities for a particular range of products. The boards serve to develop in the partici pating individuals a view and knowl edge broader than their own regular daily function, says Pastene.
Responsibility At Monsanto
High Priority At Allied
As a decentralized company, Mon santo is not operating a centrally
Allied Chemical is devoting increas ing time and attention to the subject
But formal course instruction is only one of the areas in which his division is encouraging the development of men as potential managers. Gibson cites these as other important factors leading to t h e development of executive talent: • Well considered, thoughtful rota tion of personnel in jobs. • Promotion across department lines leading to broadened operational experience. • Company manpower pools—oper ated by GE's services division to make known to the various operating com ponents the human resources available to them in all functional areas, includ ing engineering, marketing, finance, employee and community relations, and legal staff. • Encouragement of advanced train ing including graduate study programs, attendance at various conferences and meetings, both within the company and through professional societies, and various courses of instruction arranged at t h e departmental level.
Opening session of a special course in professional business management was held recently at GE's chemical and metal lurgical division, Pittsfield, Mass., headquarters. Course leader John L. Gait, manager of the chemical materials 2358
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of training and development of i t s people. Throughout the organization an atmosphere is being created to k e e p before management people the impor tance of doing the best possible job i n this area, according to Allied vice president Harry S. Ferguson. In the matter of promotions, says Ferguson, demonstrated ability to train and develop people is a most important factor. As a general rule before a n individual will be favorably regarded for promotion he must have trained someone to take over his job. Recogni tion of this provides one of the strong est incentives for training and develop ment of other people, says Ferguson. Transfer of plant managers to other locations where they may broaden their experience occurs frequently within t h e organization a n d has been successful. There is interchange of management people between the different Allied divisions. In addition, Allied divisions from time to time rotate plant person nel for a tour of duty at their N e w York headquarters. Within the plants, regular training courses are scheduled for supervisory employees; monthly technical seminars are held and speakers from the h e a d office or from other departments, such as sales and research, describe t h e operations of t h e company.
O n the Job At Stauffer Early this year Stauffer Chemical took a definite step directed toward a coordinated on-the-job training pro gram. An individual from the pro duction department was freed of all other responsibilities and made a staff
department's phenolics product plant is shown outlining the course to participants. More than 5 5 members from all sections of the chemical materials department were en rolled in the course, designed t o develop GE managers
University-Sponsored Programs for Management Training Program Massachusetts Institute of Technology Executive Development Program Program for Senior Executives Harvard University Advanced Management Program University of Western Ontario Management Training Course University of Pittsburgh Management Problems for the Executive University of Pennsylvania Executive Conference o n Admini strative Policies and Problems Northwestern University Institute for Management Columbia University Executive Program in Business Administration Indiana University Indiana Executive Development Program Stanford University Executive Development Program University of Washington Advanced Management Seminar Banff School o f Business Administration Advanced Management Course University of Buffalo Executive Development Program Cornell University (Business School) Executive Development Program Cornell University ( I . &L. R. School) Effective Executive Leadership ( originally known as Human Rela tions in Administration) University of Georgia Executive Development Program Harvard University Middle Management Program University of Houston Southwest Executive Development Program University of North Carolina The Executive Program Southern Methodist University Institute of Management Agricultural and Mechanical College of Texas Executive Development Course Carnegie Institute of Technology Program for Executives Massachusetts Institute of Technology Control Problems of the Executive University of Michigan Executive Development Program Syracuse University
Executive Controls Program University of Texas Executive Development Program University of Richmond Program for Executive Development University of Wisconsin Executive Leadership Program Washington University
Established 1931 1956 1943 1948
Length of Session 12 m ant hs (a competifive fellowship) 10 w e e k s 13 w e e k s ( 2 sessions α year) 5 weeks
1949
8 weeks ( 2 sessions α years)
1949
2 weeks
1951
4 weeks ( 3 sessions α years) 6 weeks ( 2 sessions α years)
1952 1952
3 weeks for 2 summers
1952
8 weeks
1952
6 weeks
1952
6 weeks
1953
3 weeks
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6 weeks
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4 weeks ( 2 sessions α years)
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4
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8 months (originally 16 months) 6 weeks
1953 1953
weeks
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8 alternate week ends between 2 full w e e k s 2 weeks
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3 weeks
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9 weeks
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3 weeks
1954 "
4
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utility executives h a d been s t a r t e d in 1 9 5 1 ) 4 weeks
1955
5 weeks
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3 weeks
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2 weeks
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2 weeks (with follow-up sessions) 4 weeks
weeks program
McCill University 1956 Executive Development Compiled by George W. Bricker, Jr., Celanese Corp.
(A for
similar public
assistant to specialize in the manage m e n t development program of the p r o duction department. H e is coordinat ing efforts in various plants a n d advising p l a n t managers a n d other responsible heads as to t h e most desirable techniques of developing supervisory personnel. Presidential assistant A. E. Albright, points out t h a t Stauffer is tempering its management training program with t h e idea that a n y program first must b e properly administered a n d second must b e followed u p . A n individual selected for a particular training program is a p t to become restive if h e is not given a better assignment within a reasonable time after completion of the program, explains Albright. I n addition to t h e on-the-job training, Stauffer employees are participating in outside panels and conferences related to the current responsibilities of t h e individuals. In this category is t h e ΑΜΑ course in general management. Five employees have completed this course. Another example is t h e fourweek Sales Analysis Institute course. Nearly 100 Stauffer employees repre senting all departments h a v e completed this course. Several employees h a v e also completed the 10 weeks instructors course run b y the SAI. At the p l a n t m a n a g e r level, e m ployees are urged t o attend at least o n e personnel conference p e r year. T h e r e is considerable exchange of informa tion and experience a m o n g the m a n agers of various plants. Assistant plant managers are occasionally moved from one plant to another, although plant managers are seldom so rotated. Stauffer so far has not used t h e extended outside training programs sponsored b y universities. Company officials do n o t feel that they are in a position to drain off a t the middle management level a significant n u m b e r of people for formal long term outside training. But the plan for the future m a y involve more rotation among departments for a better grounding in all aspects of t h e business, says Albright.
Du Pont's Organization Planning Although D u Pont h a s no uniform formal development program for execu tive and middle m a n a g e m e n t people, the company does have a n organization planning division t o assist departments in all phases of management develop ment. Prime purpose of this division is to ensure availability of sufficient MAY
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Management Training Large Small Companies Companies"
Chemical P r o c e s s Industries . · · Have formalized 4*in-plant" training program for supervisory personnel
78%
84%
39%
63%
Use outside consultants, including university personnel, for in-plant training
44%
32%
Have a systematic plan for appraising per sonnel for advancement purposes
78%
68%
Sent people to university-sponsored advanced management courses during the past year
55%
74%
Were sending people to university-sponsored management courses 5 years ago
33%
68%
Intend to send more people to the university management courses this year than last
50%
53%
Expect top management ranks over the next 10 years can be filled predominantly from within
j 89%
95%
Employ a full time training director
j
β Distinction between "small company" and "large company" arbitrarily made at an annual sales figure of $160 million. NOTE: Based on information obtained in C&EN survey from 18 small companies and 19 large firms.
competent, well trained people to fill future managerial openings. T h e D u Pont philosophy is that people learn b y doing, and manage ment practice is geared to foster devel o p m e n t b y this means. On a depart mental basis, considerable time and effort is extended in analyzing the individual needs of employees for their own self-development. Training normally involves con siderable movement of employees b e t w e e n locations, fields of work, and departments. Normally in such moves, the m e n are not assigned as trainees or assistants, but are given the full responsibility of the assignment. At the midmanagement level D u Pont is practicing job rotation between divisions, within a department, or be t w e e n departments. This is being done on a reasonably well guided program on selected individuals but, to t h e ex tent practicable, conforms to the basic D u Pont philosophy of the administra tive autonomy vested in the heads of the various departments. D u Pont has quite a number of for mal training programs which are rel atively all inclusive for supervisor per sonnel u p to and including the level of plant manager or the equivalent. These include such programs as case problem techniques on leadership, economic education, conference leading, attend 2360
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ance at industrial conferences such as the ΑΜΑ, and a considerable n u m b e r of variations involving the primary ob jective of impressing supervision gen erally with the importance of h u m a n relations, including collective bargain ing. Over the past three years, D u Pont has sent some upper level management men to university-sponsored executive training courses. A D u Pont spokes man points out that t h e organization planning division is actively consider ing ways and means of introducing more formalized training programs to higher management echelons. This division is also serving as a coordinating agency in providing departmental m a n agement with information that may b e of assistance in considering cross de partmental transfers to key positions.
Teaching for Celanese Celanese is an example of a company that has made extensive use of organ ized teaching for executive develop ment. Vice president George W . Bricker, Jr. has made an exhaustive study of the various programs being offered by universities, consulting firms, and trade associations. During the past four years more than 30 Celanese employees have taken part in eight
different programs. L-evel of respon sibility of those attending the programs has ranged from assistant superintend ent to plant manager. Men returning from 'these advanced management training p r o g r a m s have a broader viewpoint, says Bricker. They have learned how to d ^ a l with and or ganize their own jobs. In many cases a new assignment is a r r a n g e d for the employee upon his r e t u r n . This usu ally involves increasedl responsibilities. But in some cases thte m e n selected realize that the extra training is pro vided to improve abilit y to handle their present job and do n o t expect an im mediate promotion. Bricker's long range h o p e for his company's manageme-nt development program is that it will be able to send a promising young roan to an appro priate low level course early in his man agement experience. Possibly five years later, d e p e n d i n g on continuing appraisal of his growth potential, h e may be sent to a more -advanced course. Bricker can see that im some instances a third very broad c o u r s e might b e worth while later on.
Flexible Program -At O M Over the past few y ^ a r s Olin Mathieson has developed a cromprehensive inplant training prograim. It follows a general pattern but i s flexible with re spect to material c o v e r e d . In this highly diversified organization of more than 75 plants, condi-tions vary widely from plant to plant aand, consequently, the specific training imust b e designed on an individual p l a n t basis, points out a company spokesman. O n e Kentucky plant, for example, conducts college l e v e l conference classes sponsored by college personnel and offered for college credit. In other locations w h e r e employees have easy access to a university or college, such an arrangement is n o t indicated. Tailor-making of t h e training pro grams in Olin Mathieson plants begins with a special three-man training com mittee m a d e u p of t o p superintendents from production, services, and main tenance. These people determine the content of the training program. Con ference leaders are s e l e c t e d from men at the plant superintendent level. Conference discussion groups are set u p composed of from 10 to 14 people. Examples of unit t o p i c s : supervisor and his job; accident prevention; h u man relations; work improvement. A unit is m a d e u p of six to 10 sessions
held once or twice a week on one topic. In many company plants two complete units of training are completed each year. A very important plus-value of this type of in-plant training is the "executive training" that middle management people receive as conference leaders, points out a company spokesman. Another benefit is improved communications both upward and downward in the management ranks. Some of t h e company plants are making use of advanced management training in universities. T h e number of people that attend is a matter for determination by division and plant management. In some of the larger plants two or three people attend each year. Some plants are sending as many as eight people. Results have been good and the trend has been to send more people each year. At higher levels of management, Olin Mathieson is using job rotation to develop people. Taking responsibility for the supervisors training program in a given plant is an excellent managem e n t development practice, says one company official.
A series of workshop seminars like this one will be h e l d by the new International Management Association on various aspects of managing foreign operations. These May and J u n e sessions are forerunners of a b r o a d educational program of seminars, courses for overseas executives; a seminar o n trade fairs is included
Corn Products' Case Studies Some 500 supervisors in the four plants, the chemical division, and the executive offices in New York are participating in case discussion type man-
Monscmto's Methods f o r D e v e l o p i n g K e y Employees
agement ti'aining in trie Corn Products Refining organization. Cases used are taken from the Harvard Business School files a n d discussion groups are led by line supervisors trained in t h e Harvard Business School. Sessions usually last for one, and a half hours and are held every three weeks. All formal training, excepting job rotation, is developed and supervised by the company training director. However, as training director John S. Wilson p u t s i t , "I believe in line supervisors doing the training, our job is to train the line supervisors to carry on." Every department supervisor in t h e organization with t h e exception of t h e sales branch managers are currently involved in m a n a g e m e n t development Gaining programs, says Wilson.^ Only geography keeps us from \vorldng with the sales b r a n c h managers, h e continues. . } Corn Products has ",sent one Sloan fellow to M I T and some 30 employees to t h e a d v a n c e d management program at Harvard Business Scjpj$bl. Wilson, who has participated i n : t h e Harvard program himself, is thoroughly sold on the case method b u t emphasizes that you must find the appropriate case material.
Problem A t Rayonîer "No. 1 problem of the d a y vsx a growth company such as ours is development of adequate management manpower," says Rayonier vice president, Russel F . Erickson. Rayonier is building for t h e future through a twoMAY
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fold approach: first by procuring per sonnel with management potentials; and second by offering opportunities for qualified individuals to develop within the organization. Under the Rayonier recruitment pro gram the candidates may be offered either an opportunity to enter the company trainee program or a direct job placement. Training program is open both to those with technical back grounds and to business and commer cial graduates. All trainees regardless of their backgrounds go through an identical two year program. During this period the new employee is given an opportunity to become familiar with every phase of Rayonier's operations from timber to traffic. Rayonier personnel development program is aimed at both the plant level and at higher levels in the man agement ranks. W i t h i n each mill t h e , industrial relations department has de veloped a series of courses for the supervisory group. In many cases specialists come in to direct these courses. A certain amount of job rotation is
practiced within the various mills and, at the mill manager and plant engineer level, moves are occasionally made from plant to plant. Almost without exception these moves have resulted in improved attitude and performance and growth in management potential of the individuals involved, says Erickson. At the higher levels of management the special programs at Harvard, Yale, and Stanford have been used selec tively. West Coast mill managers at tend advanced management schools at Stanford. A man is usually selected for one of these university courses for a specific reason. For example, Erick son cites a case of one employee who had come up in t h e ranks and was thoroughly familiar with company op erations, policy, a n d philosophy; but on the other hand the employee was not broadly acquainted outside the company nor was h e familiar with the operations in related business activities. By attending a university-sponsored advanced management course this em ployee made important contacts and his stature was greatly improved in
the eyes of his business associates out side the company. Atlas a n d Interchemical
Although Atlas Powder has n o well organized executive development pro gram, t h e company is making use of some outside tiaining facilities. Each year Atlas is sending a number of men to ΑΜΑ. and other industry-sponsored conferences. In addition Atlas is send ing two men each year to t h e W h a r t o n executive conference and one m a n t o the Rutgers sales executive conference. The company has developed and is now placing in operation a c o m p r e hensive salary management plan. A performance rating of each salaried employee once a year is a part of this plan. Performance rating is t h e first step in any sound executive develop ment program, says Atlas director of industrial relations, Thomas Kennedy. O n c e we have the performance rat ing program in operation w e should b e in a position to set u p a promotion a n d development chart and move from there t o a formal program of executive development, says Kennedy. Such a program, he continues, would involve job rotation, training in companysponsored courses, and training in industry and university-sponsored courses. And in the most recent annual r e port of Interchemical Corp., president Η. Β. W o o d m a n had this to say: " T o keep building a n organization of high caliher requires constant emphasis on recruitment and training on t h e d e velopment of scientific, technical, manufacturing, sales, and managerial skills." One highly successful training m e t h o d used b y Interchemical consists of yearly seminars where groups of younger key employees are brought to gether from all operating departments to exchange ideas a n d analyze business problems under the guidance of pro fessors from the Harvard Business School. In recent years Interchemical has b e e n sending employees in posi tions of major managerial importance to advanced management programs conducted by the leading universities. General Aniline is another example of a company giving high priority to management training. In this company a tailor-made program is the k e y note. According to one company spokesman, it has 150 training programs for its top 150 executives. Executives a r e evalu Almost one out of three participants in Harvard's Advanced Management Pro ated, then courses are laid out to « gram (enrollment: 160) represents a chemical process industries company eliminate deficiencies. 2362
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