"Management development (MD) is widely regarded as a key element in a strategic approach to human resource management, yet there is still little empirical evidence that it actually contributes significantly to superior firm performance. In a study of 179 European firms across six countries, organization size explained some variance in productivity. However, the degree of variance explained is considerably enhanced when variables are introduced which capture the way MD is conceived and implemented. Specifically, line manager perceptions of the importance given to MD distinguish high- from low-performing companies when measured against an objective measure of firm productivity derived from a financial database."

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