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Analysis of the concepts and definitions

The personnel development function is one of the basic functions of management. High level of motivation, quality and productivity of employee’s labor largely depends on the efficiency of personnel development program used by the organization. Managerial potential development is one of the most important stage of the personnel development in organization and can be considered as a kind of investment in its intangible assets, which helps to increase a value of human resources.

Nowadays managerial practice becomes more difficult and needs more individual mental capacity and internal forces of individuals because of the rapid changes in economy and business. Top-managers desire to see all of these characteristics in new hires and high potential managers. According to the research made on the base of 90 firms of the Samara region there are 5 the most common requirements for graduates in region. They are shown on the picture 1.

Picture 1. Requirements for graduates in Samara region from 2011 to 2013

Due to this data it is obvious that processes of identifying the best candidates and developing their managerial potential become the most important for increasing competitiveness of organization on the market.

The question of development of managerial potential had been studying by different scientists, for example, A. Y. Kibanov, T. U. Bazarov, V. R. Vesnin, A. P. Egorshin, A. Ashurst, M. Armstrong and others. First of all it is necessary to understand definitions of personal and managerial potential and the difference between them, because meanings of these terms are really close to each other. Analysis of the different sources let us to identify the most common definitions of personal potential and show them on the picture 2 as a scheme.

Picture 2. Different approaches to define of the “personal potential” term

The third definition of A. P. Egorshin is made in terms of the managerial approach to define the “personal potential” term. A. N. Lukshinov specifies the managerial potential as a cumulative capacity and abilities of the line and functional managers, which is expressed as an amount and quality of work which can be done by them [3, p. 258]. Another interpretation is given by V. L. Kubishko: “Managerial potential is the presence of special abilities, personal qualities and motivation for the career growth as well as professional knowledge and skills, which are necessary for managerial activity [2, p. 175]. In other words, it is a combination of social, personal and professional qualities of manager, which helps them to make their managerial work in the best way to develop the organization and reach organizational goals.

Authors have prepared a comparative table with psychophysiological components which describe personal and managerial potential (table 1).

Thereby, the managerial potential includes personal potential and additional elements and qualities. It is also necessary to understand that personal potential as a managerial potential can be developed and even has to be developed for the success of the organization.

Table 1

The comparison of the personal and managerial potential components

Personal potential

Managerial potential

·        Personal abilities ·        Personal potential
·        Positive inheritance ·        High level of adaption
·        Mental capacity ·        Professionalism, professional knowledge
·        Motives and needs ·        Skills
·        Personal qualities ·        Learning agility
·        Personal resources and reserves ·        Involvement in the work process
·        Creativity ·        Results agility
·        Internal forces of the person ·        Other qualities, needed for particular organization
·        Need for self-development and cognition

Development of the personal potential of managers precedes the managerial potential development (picture 3) [7, p. 60].

Picture 3. Levels of management system development

The main material and results

Managerial potential development usually becomes really challenging task for human resource department because it takes time and needs the creation of special mechanism which will suit for the particular organization.

First of all, it has to be mentioned that development of the managerial potential requires system approach. The qualitative state of the system of managerial potential development has a great impact on the achievement of organizational goals and development of the organization in general [1, p.57].

There are managing and controlled subsystems (subsystem which is managed) (picture 3). As it is noted on the picture 4 there are two ways of creating an efficient team of employees:

  1. To hire good professionals;
  2. To hire and develop high potential managers (HIPOs) [6].

Both variants have their strengths and weaknesses. However, it is complicated to find such a good professionals on the labor market nowadays. High level of the competition between companies determines the high demand on this kind of employees. On the other hand, hiring and developing HIPOs increases commitment and loyalty to the organization, internal motivation, improves processes of teambuilding and adapting to the external changes.

Picture 4. Elements of the system of managerial potential development in organization

In this article the second approach had been considered. The authors have developed their own methodology of the managerial potential development which is shown on the picture 5.

It is impossible to develop personnel separately if there are some organizational problems which have to be solved or organizational strategy improvements which have to be made. According to this  methodology of the managerial potential development on the first step it is necessary to analyze three levels of the organizational development:

  • micro level, which includes an operational objectives of the organization; abilities of the organization, business processes:
  • macro level, which includes organizational strategy, beliefs, culture and structure:
  • meta level, which includes mission and vision of the organization.

Picture 5. Methodology of the managerial potential development in the organization

This analysis will help to understand the position of the organization at the moment, the stage of the organizational development which it is attending now [4, p. 40]. Especially, it is necessary to know the exact strategy of the organization due to the strong connection between the strategy and the personnel development. Each type of the strategy requires special skills and qualities from workers and managers on all levels.

The second step involves the planning of the management concepts, concepts of the human relations within the organization, profile of the managerial personnel.

The third step is complicated because there are a lot of different approaches to assessment of the personnel and of its managerial potential. Research on the most common assessment tools used in practice of modern Russian companies has shown that it is effectively to use the model of the potential. The organization can use model which was previously devised or it can create model themselves. Furthermore, on this step candidates may be assessed by additional criteria.

The entire process of assessment is on the fourth step.

Managerial potential development program has to be created on the fifth step. It may also be different according to the assessment results. It depends on the level of the professional development of the manager, his personal desires, special needs of the organization. There can be used an efficient approach to the managerial potential development program creating. This approach is based on the Corporate Leadership Council’s research and suggests developing of the managerial potential with 4E: experience, exposure, education, effectiveness. Each of these elements assumes a certain complex of actions and measures for getting the most tangible impact on the managerial potential [6].


Managerial potential development has a great importance for the realization of the organizational development strategy. The professional and competency level of management predetermines an achievement of the organizational objectives. Organizations select and determine methods of managerial potential development themselves according to the contemporary stage of the organizational development. In the article there were considered definitions of the personal and managerial potential and the interconnection between them. The methodology which is proposed in this article is relatively universal and can be modified in accordance with needs and objectives of the particular organization.


  1. Kifa L. L. Methods the formation of professional competence of specialists in the field of personnel management [Text] / L. L. Kifa // Proceedings of the Samara Scientific Center of the Russian Academy of Sciences, 2008. — № 8. — P.50-55.
  2. Kubyshko V. L. Diagnosis and development of the managerial potential of the head of the internal affairs: teaching — handbook / V. L. Kubyshko.- M.: TSOKR the Russian Interior Ministry, 2006. — 320 p.
  3. Luksinov A. N. Strategic management: a manual for universities/ A. N. Lukshinov.- M.: UNITY-DANA, 2000. – 375 p.
  4. Maslov V. I. About the strategic personnel management [Text] / V. I. Maslov // Personnel management, 2005. — №5. – P. 38-44
  5. Roi R. How to select and develop high potential leaders. – [Electronic resource] – Mode for access: http://www.rightmanagement.com.au/thought-leadership/research/how-to-select-and-develop-high-potential-leaders.pdf
  6. Uzhakina U. Managerial capacity: how to measure and change. — [Electronic resource] – Mode for access: http://www.trainings.ru/library/articles/?id=14909
  7. Voronkova A. E. Personal potential of manager as a prerequisite of realization [Text] / A. E. Voronkova //Econtechmod. An international quarterly journal, 2013. № 2. — P. 59-63
    Written by: Andreeva Elena Vasilevna, Kifa Ludmila Leonidovna
    Date Published: 06/20/2017
    Edition: ЕВРАЗИЙСКИЙ СОЮЗ УЧЕНЫХ_ 30.12.2014_12(09)
    Available in: Ebook