Methods of Measuring Managerial Effectiveness

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

GLOBAL MEASURES OF MANAGERIAL EFFECTIVENESS

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