How to Measure Management Effectiveness

culled from:wikihow.com

Measuring management effectiveness requires defining the meaning of effectiveness within the context of your organization. In a profit-driven corporation, effectiveness may be defined as revenue generation. For managers of non-profit organizations, manager effectiveness might involve factors like successful outreach, mission fulfillment and employee satisfaction. In a government setting, the primary role of management may be to properly train and guide employees and the public to comply with government standards. Here are some different ways to measure management effectiveness.

Steps

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Define the goals of your organization. The goal may be to generate profits, educate the public or enforce policies.

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   Identify specific indicators for measuring management success and effectiveness. In a publicly traded company, the effectiveness indicator may be the market value of the company's stock from quarter to quarter or year to year. An indicator in a health care institution may be the safety of patients resulting from management's implementation of sound safety policies.
   • Consider factors that might render the indicator insufficient as a true measurement. For example, the market value of a company may be affected by macroeconomics and forces outside the control of management.
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   Conduct periodic assessments of manager performance. Review the performance of managers on a monthly, quarterly, biannual or annual basis.
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   Evaluate the manager's ability to balance the external and internal needs of the organization. The most effective managers are those who are able to network and manage relationships with clients while ensuring that the communication, training and safety needs of employees are simultaneously met.
   • Develop performance evaluation forms. Create forms that allow managers to assess their own performance.
   • Include questions related to processes, projects and employees. Ask managers to gauge their own effectiveness in relation to established goals for the department or company. For example, managers may be asked to rate their effectiveness in managing employee conflicts.
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   Gather information from employees about management effectiveness.
   • Ask employees to fill out feedback forms. Include questions about employee satisfaction in regards to management of conflicts, availability of training programs and management's communication of company goals and processes.
   • Interview employees about their satisfaction on the job. Speaking to employees about their relationships with management might lend insight into areas in which a manager excels, is ineffective or can benefit from some degree of improvement.
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   Compare the responses of management to feedback from their subordinates. Large divergences between a manager self-evaluation and employee responses may be areas indicating ineffectiveness. For example, a manager might be satisfied with the level of training provided to employees, but employees may complain across the board that they do not have the right tools or skills to perform their jobs.
   • Consider situations in which employees may not respond honestly due to fear. Fear of losing a job, being demoted or ostracized may be reasons that employees may not respond honestly to questions about management.
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   Observe employee retention rates. An organization that experiences repeated employee turnover may be suffering from manager ineffectiveness.
   • Weigh other factors leading to employee turnover. Low pay, unsafe work conditions and unreasonable work demands may be the real reasons behind employee resignations, and may be conditions that the particular manager cannot control.