The relationship between managerial development and organizational effectiveness was investigated in this study. In order to demonstrate the importance of management development programs to overall organizational success, two theories were reviewed: social exchange theory and resource based theory (RBV). This study assessed literature from various studies on management development to see how it affects organizational effectiveness. It also sought to identify any arguments and gaps that exist in the literature on the subject. According to the research, there is a link between managerial development and organizational effectiveness. The findings demonstrated a significant association between the dimensions of management development, such as coaching and mentoring, and organizational success indicators, such as staff performance and customer satisfaction. The predictor and criteria variables were both affected by organizational culture. The conclusion was reached that inadequacies in development programs have led to organizations seeking managers from outside the organization, hence increasing competition for highly developed managers; As a result, it was suggested that management development needs be identified, as well as consultants who will enable externally sourced and domestically generated initiatives; those with vast years of experience on the job so that best organizational outcomes are elicited from the process.