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

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Methods of Measuring Managerial Effectiveness

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

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

 

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