7 ways of Measuring Effectiveness of Management

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

In this post we will discuss the ways or bases of identifying and measuring effectiveness of management.

1. Amount of Profit or Surplus

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

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

2. Rate of Productivity

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

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

3. Quality of Techniques

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

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

4. Response Rate of Managers to the Feedbacks

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.

5. Working Environment of Organization

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

6. Labor-Management Relationship

Labor-Management Relationship is a base for measuring 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 a organization.

7. Relationship with External Interested Parties with Management

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

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

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 organization, resources availability, economic condition of country.

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