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Chapter: Business Science : Managerial Behavior and Effectiveness : Concept of Managerial Effectiveness

Concept of Managerial Effectiveness

1 Concept of Managerial Effectiveness 2 Measuring managerial effectiveness 3 Methods of Measuring Managerial Effectiveness 4 Current Industrial and Government Practices in the Management of Managerial Effectiveness 5 Effective Manager as an Optimizer



1 Concept of Managerial Effectiveness

2 Measuring managerial effectiveness

3 Methods of Measuring Managerial Effectiveness

4 Current Industrial and Government Practices in the Management of Managerial Effectiveness

5 Effective Manager as an Optimizer



1 Concept of Managerial Effectiveness


—    Definition :Managerial effectiveness is made measurable, verifiable, operational and more specific with the help of effectiveness areas, standards and objectives


—    Describing managerial effectiveness is in terms of effectiveness areas, effectiveness standards and objectives.


—    Effectiveness areas indicate general output requirements of managerial position.


—    The idea of effectiveness is based on the view that all managerial positions are best seen in terms of the output associated with it.


—    For e.g., the areas could be in terms of sales level, production level, inventory control, best utilization of resources etc., the effectiveness areas emanate from the strategy of the firm to make its organizational structure operational.


—    The effectiveness areas are divided into sub-division


—    Effectiveness areas can be broken down into effectiveness standards.


—    When effectiveness standards are made more specific, they are called objectives.


—    Objectives have time limits and numerical values are attached to them


2 Measuring managerial effectiveness


—    Managerial effectiveness is measured through comparing the actual standard set with the achieved standard.


—    Both the standards will match perfectly provided the managers prove to be an effective delegator, frank and fearless, well-defined, award subordinates for good job, pro-active, innovative, energetic and adaptive in approach.



3 Methods of Measuring Managerial Effectiveness


1.The Person, Process, Product Approaches – Bridging the gap


2.Managerial Grid


—    A graphic presentation of a two dimensional view of leadership style has been developed by Blake and Mouton


—    They proposed a Managerial Grid based on the styles of ‘concern for people’ and ‘concern for production’


The grid identified five basic styles of leadership.


—    The 9,1 (task management) leader is primarily concerned with production and has little concern of people. This person believes in getting work done at all costs.


—    The 1,9 (country club management) leader is primarily concerned with people.


—    The 5,5 (middle of the road management) leader represents a moderate concern for both.


—    The 9,9 (team management) style demonstrates high concern for both production and people and is therefore the ideal approach to leadership.


—    The 1,1 ( impoverished management) has minimum concern for people and production.


—    The model is useful to managers in as much as it helps them identify their current styles and develop the most desirable style.


—    It seems unlikely that the 9,9 management style is appropriate for organizations experiencing different growth rates, labour relations, competition, and a host of other differentiating problems




Managerial Effectiveness an also be measured through


—    Supervisory rankings


—    Salary


—    Hierarchical position


Strengths of such a measurement


—     Period of assessment is long, so it is fairly stable.


—    It can be used for validation.


—    Close monitoring by supervisor is there.


—    Peer rankings form a basis of comparison.


Weaknesses-It suffers from deficiency


—     Measures only a small portion of variance caused by behaviour


—    Variations are dependent on many other factors


—    Some factors are not controllable by managers.


—    Subjective criteria need to be relied on.


Example : In General Electric Company the evaluator evaluates effectiveness based on


—    Absence rate


—    Separation rate


—    Medical leave


—    Disciplinary actions


—    Suggestion submitted


—    Grievance


Certain other Industries


—     Use observations.


—    Use tests.


—    Use correlation measurements.


—    Personality inventories.- emotional stability, sociability, general activity



—    Leadership ability test


4 Current Industrial and Government Practices in the Management of Managerial Effectiveness


—    The government and industries have adopted certain practices to ensure the effectiveness of managers which involves


—    completion of work on time


—     effective and efficient output


—     management of knowledge and information


—    careful preparations of meetings and


—    presentations and follow-up with deviations and corrections to ensure that agreements and commitments have been fulfilled.


1.     Sets up procedures to ensure high quality of work (e.g., review meetings).


2.     Arrange for training and executive development programs


3.     Involvement in career development program of its employees.


4.     Monitor the quality of work through performance appraisal.


5.       Verification of information through feedback.


6.       Checking the accuracy of one‘s own and others‘ work.


7.     Developing and using systems to organize and keep track of information or work progress.


8.     Carefully preparing for meetings and presentations.


9.     Organizing information or materials for others.


10.                        Carefully reviewing and checking the accuracy of information in work reports (e.g., production, sales, financial performance) provided by management, management information systems, or other individuals and groups.`


Some other areas, which require attention of both the government and the industries in the management of managerial effectiveness


1. Developing Initiative


—    Drive : High motivation for work and also encourage others to work towards a common goal.


—    Energy : Enthusiastic in work place.


—    Self-starter : Does jobs proactively and seizes the opportunities.


2.Encouraging self management approach


—     Team player : Works in a team, supports and encourages team members.


—    Leader : Defines goals and standards of performance, delegates and allocates work according to abilities.


—    Develops subordinates : Identifies, train and involves people in all activities.


—    Individual / Disciplined : Maintains decorum of the workplace, has respect for seniors and juniors


3.Facilitating appropriate Communication


—    Articulate / expressive: Can communicate (verbal & written) in a fashion, which is understood and appreciated by people.


—    Persuasive/ winning : Sticks to a problem until it is resolved.


—    Supportive : Supports subordinates in their work.


—    Confident : Has confidence in his values and action


The skills and competencies of their managers would help them perform better in certain core areas like:

—     Ability to plan : Formulate, plans and business goals.


—     Organize : Divide jobs into logical entities.


—     Execute : Works according to plans.


—     Meet Deadlines : Follow a strict schedule and completes a job.


Adoption of Skills by Managers for Effective Management of Corporate


—    Certain skills should be practiced and developed by the managers in order to efficiently perform their responsibilities in a competitive driven business environment.


1. Problem solving:


—    Identifies the specific information needed to clarify a situation or to make a decision.


—     Gets more complete and accurate information by checking the multiple sources.


—    Probes skilfully to get at the facts, when others are reluctant/unwilling to provide full, detailed information.


—     Routinely walks around to see how people are doing and to hear about any problems they are encountering.


—     Questions others to assess whether they have thought through a plan of action.



—    Questions others to assess their confidence in solving a problem or tackling a situation.


—     Asks questions to clarify a situation.


—    Seeks the perspective of everyone involved in a situation.


—    Seeks out knowledgeable people to obtain information or clarify a problem.


2. Analytical thinking: The ability to tackle a problem by using a logical, systematic, sequential approach.

—    Makes a systematic comparison of two or more alternatives.


—    Notices discrepancies and inconsistencies in available information.


—    Identifies a set of features, parameters or considerations to take into account, in analyzing a situation or making a decision.


—    Approaches a complex task or problem by breaking it down into its component parts and considering each part in detail.


—    Weigh the costs, benefits, risks and chances for success, in making a decision.


—    Identifies many possible causes for a problem.


—    Carefully weighs the priority of things to be done.


3. Forward thinking: The ability to anticipate the implications and consequences of situations and take appropriate action to be prepared for possible contingencies.

—    Anticipates possible problems and develops contingency plans in advance.


—    Notices trends in the industry or market place and develops plans to prepare for opportunities or problems.


—    Anticipates the consequences of situations and plans accordingly.


—    Anticipates how individuals and groups will react to situations and information and plans accordingly.


4. Conceptual thinking: The ability to find effective solutions by taking a holistic, abstract, for theoretical perspective.

—    Notices similarities between different unrelated situations.


—    Quickly identifies the central or underlying issues in a complex situation.


—    Creates a graphic diagram showing a systems view of a situation.


—     Develops analogies or metaphors/ descriptions to explain a situation.


—     Applies a theoretical framework to understand a specific situation.



—    Adjusts behavior, strategies according to changing environment and circumstances.


—    Goes beyond conventional thinking and produces imaginative or unique response to a problem


5. Strategic thinking: The ability to analyze the organization‘s competitive position by considering market and industry trends, existing and potential customers (internal and external), and strengths and weaknesses as compared to competitors.

—     Understands the organization‘s strengths and weaknesses as compared to competitors.


—    Understands the industry and market trends affecting the organization‘s competitiveness.


—    Has an in-depth understanding of competitive products and services available within the marketplace.


—    Develops and proposes a long term (3-5 year) strategy for the organization based on an analysis of the industry and marketplace and the organization‘s current and potential capabilities to other competitors.


6. Technical expertise: The ability to demonstrate depth of knowledge and skill in a technical area.


—    Effectively applies technical knowledge to solve a range of problems.


—    Possesses an in-depth knowledge and skill in a technical area.


—    Develops technical solutions to new or highly complex problems that cannot be solved using existing methods or approaches.


—    Is sought out as an expert to provide advice or solutions in his/her technical specialization


—     Keeps informed about cutting-edge technology in his/her technical area.


7. Entrepreneurial orientation: The ability to look for and seize profitable business opportunities; willingness to take calculated risks to achieve business goals.

—     Notices and seizes profitable business opportunities.


—    Stays abreast of business, industry and market information that may reveal many business opportunities.


—    Demonstrates willingness to take calculated risks to achieve business goals.


—    Proposes innovative business deals to potential customers, suppliers and business partners.


—     Encourages and supports entrepreneurial behavior in others


8. Fostering innovation: The ability to develop, sponsors, or support the introduction of new and improved method, products, procedures, or technologies.

—     Personally develops a new product or service, process or approach, methods and technologies.



—    Supports the development of new products, services, methods or procedures.


—    Develops better, faster, or less expensive ways to do things.


—    Works cooperatively with others to produce innovative solutions.


9. Results Orientation: The ability to focus on the desired result of one‘s own or one‘s unit‘s work‘s setting challenging goals, focusing effort on the goals and meeting or exceeding them.

—    Develops challenging but achievable goals.


—    Develops clear goals for meetings and projects.


—    Maintains commitment to goals in the face of obstacles and frustrations.


—    Finds or creates ways to measure performance against set goals.


—    Exerts unusual effort over time to achieve a goal.


—    Has a strong sense of urgency about solving problems and getting work done.


10.            Decisiveness: The ability to make difficult decisions in a timely manner.


—    Is willing to make decisions in difficult or ambiguous situations, when time is critical.


—    Takes charge of a group when it is necessary to facilitate change, overcome an impasse, face issues, or ensure that decisions are made.


—    Makes tough decisions (e.g., closing a facility, reducing staff, accepting or rejecting a high-stakes deal).


11.Self Confidence: Faith in one‘s ideas and capability to be successful; willingness to take an independent position in the face of any opposition.

—     Is confident of own ability to accomplish goals.


—    Presents oneself impressively


—    Is willing to speak up to the right person or group at the right time, when he/she disagrees with a decision or strategy.


—    Approaches challenging tasks with a ―can-do‖ attitude.


12.  Stress Management: The ability to keep functioning effectively when under pressure and maintain self control in the face of hostility or provocation/ frustration.

—    Remains calm under stress.


—    Can effectively handle several problems or tasks at once.


—    Controls his/her response when criticized, attacked or provoked.



—    Maintains a sense of humor under difficult circumstances.


—    Manages own behaviour to prevent or reduce feelings of stress.


13.            Personality Credibility: Demonstrated concern that one be perceived as responsible, reliable and trustworthy.

—    Does what he/she commits to doing.


—    Respects the confidentiality of information or concerns shared by others.


—    Is honest and forthright/direct with people.


—    Carries his/her fair share of the workload.


—    Takes responsibility for own mistakes; does not blame others.


—    Conveys a command of the relevant facts and information.


14.            Flexibility: Openness to different and new ways of doing things; willingness to modify one‘s preferred way of doing things.

—    Is able to see the merits of perspectives other than his/her own.


—    Demonstrates openness to new organizational structure, procedures and technology.


—    Switches to a different strategy when an initially selected one is unsuccessful.


—    Demonstrates a willingness to modify a strongly held position in the face of contrary evidence.



5 Effective Manager as an Optimizer


—    Effective manager focuses on what he is doing and efficiency deals with how well he does with minimum wastage of resources.


—    Since managers deal with input resource that is scarce such as money, people, equipment, and time, they should be more concerned about its efficient utility, minimizing resource cost and optimizing the output.



—    According to Campbell, in his behavioural approach, effective manager is said to be an optimizer in utilizing all available and potential resources.


—    Effective managerial job behaviour talks about as "any set of managerial actions believed to be optimal for identifying, assimilating/ incorporating and utilizing both internal and external resources towards the functioning of the organizational unit and sustaining in the long run, for which a manager has high degree of responsibility‖.


—    Therefore effective manager is expected to work as an optimizer by focusing on low waste and high goal attainment


—    Effective managers do differently from their less-effective counterparts.


—     Have high concern for people and productivity


—     Effective managers are able to communicate


—    Spend Time in Managing


—    Using General Style


—    Allow Employees to Influence them


—    Have influence upward


—    Minimize Status Differences


Spend Time Managing



The effective manager spend most of their time manager . That is they spend most of their time identifying opportunity for improvement, locating problems, training subordinates , developing contacts with other in the organization, working through inter- unit differences .


Manager as a Optimizer


The actions he is to take will arise from the answers a manager gives to these questions.

§    What is my potential contribution?


§    What are my objectives?


§    What does it take to be effective here?


§    What needs changing?


§    What is organization‘s philosophy


§    What can I do now?




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