How to Measure Management Performance and Effectiveness (Explained)

How to Measure Management Performance and EffectivenessIt is necessary that you know how your organization’s resources are being used and find out whether they are being spent effectively.

Measuring the effectiveness of the management team is done by using the financial performance and client feedback data of the company.

Just reaching a goal doesn’t indicate a manager’s effectiveness. Effective management means; reaching goals in an efficient manner using less amount of resources.

It is obvious measuring the management effectiveness is challenging, and it will not provide all the answers.

Management performance and effectiveness is measured by;

  1. Amount of Profit or Surplus.
  2. The rate of Productivity.
  3. Quality of Techniques.
  4. Response Rate of Managers to the Feedbacks.
  5. Working Environment of Organization.
  6. Labor-Management Relationship.
  7. Relationship with External Interested Parties with Management.

Amount of Profit or Surplus

Measure Management Performance and Effectiveness with profit and surplus

The sole objective of a business is to create a surplus. An effective manager creates a surplus in an efficient way.

The amount of profit or surplus is a base for measuring the effectiveness of management and manager.

Rate of Productivity

Measure Management Performance and Effectiveness and productivity

Productivity or production rate is also a way of identifying the effectiveness of a manager.

An efficient manager will increase the productivity without hampering the quality of the product. And he will do it in an efficient way.

Quality of Techniques

Measure Management Performance and Effectiveness for quality

Used what technologies the manager is using for the accomplishment of a goal, also indicates the effectiveness of a manager.

A good manager always finds ways to use the most advanced technology in the production and operation process within the budget of the organization it.

Response Rate of Managers to the Feedbacks

Measure Management Performance and Effectiveness with feedback

A manager receives feedbacks by monitoring and controlling the operations. But receiving feedback is not the end of the hob of management.

Management needs to respond to the feedback depending on this nature; good or bad. “The faster, the better” is not always the case. Management must response to feedbacks quickly and efficiently.

Working Environment of Organization

Factors of Internal and External Organizations environment

The working environment is also an indicator of the effectiveness of management. The Better and suitable the work environment is, the effective the Management will be.

Labor-Management Relationship

Measure Management Performance and Effectiveness by labor management relationship

Labor-Management Relationship is a base for measuring the effectiveness of management.

A good labor-management relationship is necessary for management for attaining goals.

Quality of labor-management relationship has to be maintained is well manner fashion as it has effects on the productivity and working environment of an organization.

Relationship with External Interested Parties with Management

Measure Management Performance and Effectiveness by client relationship

Managers are the liaison for the organization. They should have a good relationship with the parties outside of the organization.

Maintaining relationship with shareholders, creditors, bank and financial institutes, government, customers and any other interested parties is necessary for management.

Conclusion

Measuring effectiveness of management and its actions is a tricky task. Before this one needs to consider several things such as; the economic situation of the organization, resources availability, economic condition of the country.

The goal of measures is to improve the people of the organization and not the other way around.

The management processes should inspire employees to perform at the best with motivation and dedication towards the company goal.

MoreManagement /