Manager effectiveness has an enormous impact on a firm's success. Therefore, companies must provide instruction for managers and high-potential management candidates in order to help them perform current and future jobs with the utmost proficiency. Management development has long been an important component of corporate strategic planning. In fact, many companies consider the identification and development of next-generation managers to be their top human resource challenge.

Management development is important for new managers because these individuals really need instruction on how to perform their new supervisory jobs. Even so, companies often allow employees to make the transition to management with little or no training, leaving them with feelings of frustration, inadequacy, and dismay. More experienced managers also benefit from management development. A majority of first-line managers have their sights set on higher-level management jobs. Given these ambitions, companies need to provide lower-level...