Unit 3-MBE

• Definition
• The person, process, product approaches
• Bridging the Gap
• Measuring Managerial Effectiveness
• Current Industrial and Government practices
in the Management of Managerial
Effectiveness
• The Effective Manager as an Optimizer.
 Definition
• Managerial effectiveness is a leader’s ability to
achieve desired results. How well he applies his
skills and abilities in guiding and directing others
determines whether he can meet those results
effectively.
AccordingtoMumford,“ManagerialEffectiveness
denotes the extent to which managers actually
achieve, in terms of results, what they are
supposed to achieve”.
 Components of Managerial Effectiveness

• Leadership
• Motivation
• People skills
• Administrative skills
 Factors involved in Managerial Effectives

• Role Performance
• Interpersonal roles
• Informational roles
• Decisional roles
• Learning Behaviors
• Resilience
• Business Knowledge
Perspective of Managerial Effectiveness
• Traditional / Conventional perspective
• Organizational level competency based
perspective
• Individual level competency based
perspective
 Methods of Measuring Managerial
Effectiveness
• The Person, Process, Product Approaches
• Managerial Grid
The Person, Process, Product Approaches
 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
 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
 GLOBAL MEASURES OF MANAGERIAL
EFFECTIVENESS

• Managerial Effectiveness an also be

measured through
• — Supervisory rankings
• — Salary
• — Hierarchical position
Effective Manager as an Optimizer
• 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 .
• 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 behavioral 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.
• 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?
Current Industrial and Government Practices in
the Management of Managerial Effectiveness

• Sets up procedures to ensure high quality of work (e.g., review

meetings).
• Arrange for training and executive development programs
• Involvement in career development program of its employees.
• Monitor the quality of work through performance appraisal.
• Verification of information through feedback.
• Checking the accuracy of one‘s own and others‘ work.
• Developing and using systems to organize and keep track of
information or work progress.
 Some other areas
government and the
industries of
managerial
effectiveness
 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.
 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 j
 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
Adoption of Skills by
Managers for Effective
Management of
Corporate
 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.
 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.
 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.
 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.
 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.