CHAPTER-I

MANAGERIAL EFFECTIVENESS
(Theoretical Aspects)

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1.1 INTRODUCTION

Management is basically concerned with ideas, things

and people. In fact there are various definitions of management.

But none has been universally accepted. Mary Parker Follett has

suggested one simple definition, which is very popular. According

to her management is, "The art (process), of getting things

done through people"/

The implication of this definition is simple enough:-

Managers strive to attain their goals by arranging for others to

perform whatever tasks are necessary - not by performing the task

themselves. In the words of Robert L. Trewatha and M.G. Newport,

" management is defined as the process of planning, organizing,

actuating and controlling an organizations operations in order to

achieve a coordination of the human and material resources

essential in the effective and efficient attainment of objectives".^

1.2 MANGERIAL EFFECTIVENESS

Management definition suggests that managers get

things done by others. But no mention has been made so far about

the responsibilities of managers to perform well. In this context P.F.

Drucker^ has suggested that a manager's performance can be

measured in the terms of two related concepts, efficiency and

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effectiveness. Efficiency means 'doing things right' and

effectiveness means ' doing the right things'. It may be mentioned

that efficiency (or the ability to get things done correctly) is basically

an input - output concept. On the contrary, effectiveness is the

ability to choose appropriate objectives or the appropriate means

for achieving a given objective. Effective manager is one who

selects the right thing to get done or the right methods for getting a

particular thing done. For example a manager insists on producing

only black and white camera when the demand for coloured

camera is increasing very fast is supposed to be an ineffective

manager, even if he achieves efficiency by producing black and

white camera at the lowest possible cost or with maximum possible

efficiency.

Needless to say, the responsibilities of manager

require performance that is both efficient and effective. As Drucker

has argued, although efficiency is important, the key to the success

of an organization is effectiveness. The pertinent question is not

how to do things right but how to find the right things to do and to

concentrate resources and efforts on them.

1.3 MEANING OF MANAGERIAL EFFECTIVENESS

Managerial effectiveness is the extent to which

managers achieve the output requirement of their Position^

Managerial effectiveness is not an aspect of

personality. It is not something a manager has, but something a

manager produces by handling a situation correctly. It is output not

input.

Effectiveness^ is measured by the value of output.

The effect can be materialistic, spiritual or a combination of both.

The measure of materialistic can be output but industries, which

are providing services or intangible output, are concerned with

spiritual effect. If client value the service, then only the service

industry has made a spiritual effect on the clients. Therefore, the

measure of effectiveness in service industry will be the value of

their output, not the output itself. Managerial effectiveness is the

relationship between performance and task objectives, and

between achievement assessed against goals and purposes, with

in the constraint imposed by the manager himself, by his position in

the organization and by the socio-economic environment. A

Company can form its own methods to measure the performance.

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However any method of measurement has to be weighted against

definitions for its appropriateness.

1.4 IMPORTANCE OF MANAGERIAL EFFECTIVENESS

Managerial effectiveness is central issue in the

management. Every independent organization wants to achieve

goals effectively and efficiently. Managerial effectiveness is

essential for smooth running of organization. It helps in the co-

ordination of management and workers. Managerial effectiveness

creates value-based leaders in the organization and innovates new

devices of motivation. Future oriented leadership and motivational

technique are utmost requirements of managerial effectiveness.

Thinkers have suggested various methods of managerial

effectiveness such as role playing, Case Study, MBO, Learning on

Jobs, Business Schemes, Junior Boards, Seminar, Student

sponsorship etc. They should be applied to different organization

according to their needs. Managerial effectiveness should be

directly linked to organization Philosophy, Induction Training

Organization Development and business environment in the

economy.

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1.5 TYPES OF MANAGERIAL EFFECTIVENESS

To understand what managerial effectiveness is, it is

necessary to distinguish sharply the three terms: -

a Managerial effectiveness,
Q Apparent Effectiveness,
Q Personal Effectiveness.

1.5.1 MANAGERIAL EFFECTIVENESS

Managerial Effectiveness is not an aspect of

personality. It is best seen as something a manager produces from

a situation by managing it appropriately. In current terminology it

represent output not input. The manager must think in terms of

performance, not personality. It is not so much what managers do,

but what they achieve.

1.5.2 APPARENT EFFECTIVENESS

Apparent effectiveness is the extent to which a

manager looks effective. Some characteristics that make people

simply look effective include

a Usually on time
Q Answer promptly
Q Makes quick decisions
Q Liked by subordinates
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a Good communicator
a Good at Public relation
a Writes clearly.

While these qualities may be useful in some jobs at

some times they give absolutely no indication of level of Managerial

Effectiveness. They simply point to a level of apparent

effectiveness, to a naive observer unless outputs are the focus of

attention, the results can be a serious distortion of what is really

going on.

1.5.3 PERSONAL EFFECTIVENESS

Personal effectiveness is related to achieving your

own personal objectives. This may include keeping your jobs, a

preferred career root, Larger office, larger desk, bigger budget,

feeling good and winning arguments. All these are in the service of

personal needs. As with the indicators of apparent effectiveness

they may or may not contribute to managerial effectiveness^.

1.6. MANAGERIAL EFFECTIVENESS VERSUS

MANAGERIAL EFFICIENCY

Conventional job descriptions often lead to an

emphasis on what could be called managerial efficiency i.e., the

ratio of output to input. The problems are that if both input and

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output are low, efficiency could still be one hundred percent. In fact

a manager or department could easily be one hundred percent

efficient and zero percent effective. The qualities of efficient

managers and effective managers are illustrated below:-

EFFICIENT MANAGERS EFFECTIVE MANAGERS

Do things right rather than - Do right things

Solves problems rather than Produce creative

alternafives

Safe guard resources rather than Optimize resource

utilization

Discharge duties rather than - Obtain results

Pracfice apparent rather than - Practice Managerial

effectiveness effectiveness

1.7 COMMON MANAGERIAL EFFECTIVENESS

AREAS

All management positions, no matter how different, do

have some common effectiveness areas. Common effecfiveness

areas are those, which may be, and usually are, associated with

every management position. The other areas, which are specific to

particular management positions, are called specific areas. The

common effectiveness areas are called subordinates, innovative,

project, development, system and co-workers.

(a) SUBORDINATE EFFECTIVENESS AREA

Every management position having positions

subordinate to it need to have subordinate effectiveness as an

effectiveness areas. The effectiveness area serves to focus sharply

on the true relationship needed between the supervisor and the

subordinate.

(b) INNOVATIVE EFFECTIVENESS A R E A

The innovative effectiveness area refers to doing

something new on one's own initiative. It does not refer to doing

things better or to implementing innovations which others propose.

(c) PROJECT EFFECTIVENESS AREA

Another common effectiveness area is project

effectiveness. Project concern activities, which are not a normal

part of the job and are not innovations to the existing job. They

most usually arise from an assignment from the manager's

superior.

(d) DEVELOPMENT EFFECTIVENESS AREA

The term development effectiveness area refers to that

area involved with preparing to meet the objectives of the position.

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This may include - Human Skill Acquisition, Technical Skill

Acquisition, Conceptual Skill Acquisition and Work Habit

Modification.

(e) SYSTEM'S EFFECTIVENESS AREA

A manager is part of the system. If the system does

not work, the achievement or lack of achievement of their

objectives is inconsequential. System effectiveness relates to

managers responsibility to see that their position and units fits well

into the broader scheme of budget and procedures of organization.

(f) CO-WORKER EFFECTIVENESS AREA

Co-worker effectiveness is a common effectiveness

area only for those who have co-workers. It is to emphasize the

role of managers as external representatives of their department. It

gives recognition to the essential linking needed for a firm's

subparts if organization effectiveness is to be achieved^.

According to Bill Reddin^, the root to effectiveness is

managerial style and situation. Clearly managers must be

concerned first with effectiveness than with the situation in which

this effectiveness must occur and then with the style they must use

as an input to the situation to create the effectiveness. Managerial

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effectiveness area should meet four tests - output, measurable,

Important and authority. Obviously effectiveness areas must

represent output not input. No less important, they must lead to

associated objectives which are measurable. Another test is

importance. Five to ten important things is usually enough. Stick to

important things otherwise the list becomes un manageable for

planning purpose. Obviously, the output must be within your

authority.

1.8 GUIDES FOR TESTING EFFECTIVENESS AREA

Once effectiveness areas are identified they should

satisfy ten tests. These check on the adequacy of effectiveness

areas individually, collectively, and with respect to the associated

positions. Each effectiveness area should -

Represent output not input

lead to associated objectives which are measurable
Be an important part of position
Be within actual limits of authority and responsibility
Represent hundred percent of the outputs of position
Not be so many as to avoid dealing with the essence of the
job or so few as to make planning difficult
Avoid over laps.
Avoid under laps.
Align vertically.
Align horizontally.

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1.9 JOB DESCRIPTION IN TERMS OF
MANAGERIAL EFFECTIVENESS

The use of job effectiveness description is likely to

improve managerial effectiveness; the use of other type is likely to

inhibit it.

Conventional job descriptions emphasize inputs:-

The source of much of the problem surrounding

effectiveness is found in the way job descriptions are written.

Lengthy job description or Crash Programs to write them or update

them usually have little actual usefulness. Position description

without objective standards of output associated with them can

lead to the maintenance of managers in a business organization

who are not contributing to the organization in any useful way.

Job effectiveness descriptions emphasize outputs:

Its purpose is to help a manager become effective. It

does this by dealing with the position almost exclusively in output

terms. It contains a list of the effectiveness areas of the position.

Effectiveness areas are the general output requirements of the

manager's position. Together with each of the effectiveness areas

are one or more effectiveness standards; which are specific output

requirements. Associated with each effectiveness standard, the

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manager develops a specific objective usually annually, and he

measures his degree of attainment of the objective by the

established measurement method also contained in the job

effectiveness description. Job effectiveness descriptions are

prepared for each managerial position and also for each unit, which

would include a manager and all of his subordinates^.

1.10 DETERMINENT OF MANAGERIAL

EFFECTIVENESS

What a manager achieve is more important than what

he does. An effective manager has to all the time beware of the

dead wood that gathers in the course of his daily chores, namely

unnecessary correspondence, meetings and minor decisions or

jobs which juniors could do. One has to develop the knack of

picking out the key jobs and doing them well. The business

acumen and entrepreneurial flair that one keeps on developing

helps him to effectively do the jobs selectively. A manager must

learn how to make short-term tactical decision without hindering

long-term strategic consideration.

The ability to persuade other people to adopt one's

ideas and secure willing participation is equally important. He must

continuously develop and shape necessary plans for higher

turnover, profit, expenditure control, Man-power, product

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development and introduction of new methods. To operate as an

effective business manager one must have:-

(a) Knowledge of scales of management and

organization, this involves learning the art and techniques of

various management functions, namely establishing objectives,

synthesizing information, analysis of problem, selecting from

alternatives, direction, mechanics of co-ordination, staffing,

communication, motivation, control and measuring results.

(b) Ability to grasp strategic situations and problems

power of expression, numeracy, drive, leadership and initiative,

maturity of judgment, creativity, integrity, awareness of social

responsibility, ability to act through stresses and emergencies

makes a manager effective in his organization.

Managerial effectiveness can be increased through

self imposed disciplines (for himself and subordinates) radiating

confidence, control through inspiration, development of

enthusiasm, loyalty and co-operation, being more positive than

negative, avoiding creating favorites, learning to adjust flex,

according to the exigencies of circumstances, preferring team work

suitable for improving organization and operational efficiency and

having ability to size up a situation, self development, this may be

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through acquiring ever increasing l<nowledge, skill and experience

relating to the profession or business.

1.11 LEADERSHIP FOR MANAGERIAL

EFFECTIVENESS

Leadership nnakes a difference - management alone

will not bring organizational success, organizations of all types are

discovering that something more is needed - leadership. If

managers are to succeed, they must cultivate leadership skills.

Among those skills are a commitment to quality and integrity, a

willingness to innovate, and a sensitivity to the concerns of other.

However the development of leadership skills is dependent upon

the employing institution's giving the aspiring manager the freedom

and responsibility to be an innovative leader early in the managerial

career.

1.11.1 LEADERSHIP DEFINED

Leadership may be defined as both a process and a

property. As a process leadership is the use of non-coercive

influence to shape or direct the activities of a group towards group

goals. As a property leadership is the set of characteristics

attributed to those individuals who are perceived to use that

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influence successfully. In other words leaders are those who have

ability to influence the behaviour of others without the use of force.

1.11.2 TRAITS OF SUCCESSFUL LEADERS

In the early 1980's Kotler'^O conducted in depth

studies of successful general managers and found certain

characteristics more helpful than others. Examples of these

characteristics are as follows-

(a) Needs/ Motives of Successful Leaders :-

(i) Liked power

(ii) Liked achievement
(iii) Ambitious

(b) Temperament of Successful leaders.

(i) Emotionally stable and even

(ii) Optimistic

(c) Cognitive Orientation of Successful Leaders

(i) Above average intelligence ( but not brilliant)

(ii) Moderately - Strong Analytically
(iv) Strong intuitively

(d) Interpersonal Orientation of Successful Leaders

(i) Personable- would act developing relationship

with people

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 (ii) Unusual set of interest that allowed them to
relate easily to a broad set of business
specialists.

(e) Knowledge of successful Leaders

(i) Knowledge about their business

(ii) Knowledge about their organizations

(f) Relationship of Successful Leaders

(i) Had co-operative relationships with a very large

no. of people in their organizations.

(ii) Had Co-operative relationships with many

people in their industry

1.11.3 LEADERSHIP BEHAVIOURS

Leadership is an observable activity or process.

Research (Misumi and Peterson, 1985) concluded that successful

leadership was associated with three fundamental leadership

behaviours, as follows-

I. Task performance behaviours :- If leadership is to

be successful, the leader must get the job done. Task performance

behaviour refers to the things the leader does to ensure that the

group reaches its objectives. The most common task performance

factors were found to be (i) Fast Work Speed (ii) Good Quality (iii)

High Accuracy (iv) High Quantity (v) Observation of Rules .

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II. Group Maintenance behavoiurs:- Maintenance
oriented behaviours are those taken by the leader to ensure the
social stability of group, to develop and maintained harmonious
work relationships, and to maximize the satisfaction of group
members. This leadership dimension is known as concern for
people. Group maintenance behaviours were directed towards
group or member (i) Feelings (ii) Comfort (ill) Stress reduction (iv)
Appreciation

III. Participation in Decision making:- The successful

leader knows that employees want to take part in making

decisions. That will have an impact on their work environment.

However, the successful leaders also know that the amount of

participation that is possible or desirable varies with the situation.

According to Tannenbaum and Schmidt (1973)'''', the decision

participation factor is influenced by subordinate characteristics.

They found that a leader can allow greater participation when

1. Subordinate have a strong desire for independence

and freedom of action.

2. Subordinates desire decision-making responsibility.

3. Subordinates relate to and identify with the

organization roles.

4. Subordinates are sufficiently knowledgeable and

experienced to deal with the problem efficiently and
effectively.

5. Subordinates have prior experience with the previous

manager that leads them to expect participative
treatment.
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1.11.4. ROLE OF MANAGER AS LEADER

Managers who possess the quality of guiding and

directing the subordinates to perform their jobs efficiently can be

called business leaders. A leader interprets the objective of the

group and guides it towards the achievement of these objective.

According to Louis. A. Allen, " a leader is one who guides and

directs other people" ''2. Thus manager at all levels have to

perform the function of a leader. As a leader manager has not only

to show the way, but also lead the group towards a predetermined

goal. This can be explained by the diagram 1.1 as given below -

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 Leader's Qualities Leader's
Ability to Influ«X3e

Leadership involves the way a manager behaves in his

man to man relationship with his subordinates. In interacting with

employees in the work environment the manager has to play four

different leadership roles. These are: -

(1) Educator: - Prima facie, a manager have to perform

the role of educator by teaching employees not only

jobs skills but also acceptable behavior and

organizational values. The work habits, attitudes and

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 behavior of management leaders serves as a role

model to the followers.

(2) Counselor- In his second leadership role of counselor

the manager has to listen, give advice, as also to

prevent and solve problems faced by employees. In

performing this role, managers have to fulfill two

expectations of employees.

(i) Awareness of and concern for the individual

employee.
(ii) Assistance in solving problems

(3) Judge:- The role involves (a) appraising or evaluating

the performance of subordinates (b) Enforcing

policies, Procedures and regulations (c) Setting

disputes (d) Dispensing justice.

(4) Spokes Person:- In this role managers have to relay

their suggestion, concerns and points of view to higher

authorities. To do justice to this role a manger must be

willing to represent the views of subordinates even

when they disagree with it.^^.

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1.12 MOTIVATION FOR MANAGERIAL
EFFECTIVENESS

Motivation is a management task and it moves the

organization most effectively to reach the enterprise goals. By

continuous efforts management seeks to modify employees

behaviour to bring Unison in the individual objectives, group

objective and the enterprise objective in order to effectively achieve

the enterprise goals. The process of motivation involves creation

and substance of desire to work for certain goals among the people

in the organization. Motivation is related with needs satisfaction.

Maslow has classified human needs in to five categories, namely

basic physiological needs, safety needs, social needs, esteem

needs or ego needs and need for self-actualization and

accomplishment. The needs of the employees that call for

satisfaction may therefore have to be identified.

Highlighting of motivating factors for managers and

supervisors, it is difficult to lay down universally applicable

principles since there are wide organizational and individual

differences. However through experience and empirical evidence, it

has been established that certain managerial policies, practices,

leadership styles, incentives, organizational climate, nature of work,

relationship with colleagues, superiors and similar other situational

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variables affect motivation, behaviour, performance and

satisfaction of employees. Tiie factors found to motivate executive

are listed as follow:-

1. Worthwhile accomplishments:- challenging and

responsible job, to fulfill the need of worthwhile

accomplishment.

2. Decision making authority.- A flexible organization, open

communication and a wide span provide the climate for

exercising initiative and for taking decisions.

3. Personal growth:- Opportunity for a personal growth,

development and promotions

4. Recognition and status:-Special emphasis on social status.

5. Organizational Prestige:- Healthy competition.

6. Pay, allowances and benefits, job security.

7. Positive leadership:-This means proper goals, identification

and availing individual potentiality by spotting men who can

shoulder greater responsibility.

8. Flat organizations with as few levels of authority as possible.

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9. Clearly defines responsibilities and appropriate authority

delegation, this encourages efficiency and reduces

misunderstanding'^f

Thus the most important factor for performance and

satisfaction of managers are, worthwhile accomplishment, work it

self, recognition, opportunities for personal growth, autonomy,

decision making authority followed by other factors such as pay

and benefits, organizational prestige and job security apart from

that, studies carried out on the subject also reveal that - a

challenge in jobs, satisfaction in interpersonal relations

management's support for decision, innovation and creative work,

clear jobs definition, congenial working condition and commitment

to goals also affect or influence managerial performance.

1.13 CONCLUSION

Managers and supervisors are measured by what they

and their organization achieved. When management is effective, it

produces result, which further company goals. Although all;

management personal fulfill technical or analytical on occasion,

their major function is to achieve results through managing their

own action and those of others.

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 In order to meet these performance expectations, each

manager and supervisor is expected to ensure that objective are

set which further company goals, plans are prepared and

implemented to meet each objective and actual performance is

reviewed against each objective. Specifically this involves -

(a) Developing measurable, time bound objective, which

are with in the framework of company goals.

(b) Preparing and implementing an action plan for each

objective which will lead to the objective being

achieved.

(c) Reviewing actual performance against each objective

using established measurement methods to ensure

desired results.

Thus managerial effectiveness is very essential for the

organization to run smoothly and efficiently. The stages given by

different authors which; are involved for making the management

effective should be properly executed to that good management is

possible. The effectiveness of a manager is influenced by factors

such as freedom to perform, resources availability, by proper

assessment and guidance where needed without giving the

impression of interference, through effective and specialized

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training, assessing and appreciating performance and achievement

by rewards and promotion.

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 REFERENCES

1. W. Haynes " Principle and Practice of Management",

Second Edition, Central Educational Enterprises 1996

page 5.

2.&3. S. Bhattacharya "Management Effectiveness", First

Edition, Oxford & IBH Publishing Company,1983, Page -

342.

4. W. J. Reddin, " Effective Management", Tata McGraw-

Hill, 1987 Page-6.

5. S. Bhattacharya, "Management Effectiveness", First

Edition, Oxford & IBH Publishing Company 1983, Page-7.

6. Bill Reddin, " Managerial Styles Made Effective", Tata Mc

Graw Hill, 1988 Page-22.

7. W. J. Reddin, "Effective Management", Tata Mc Graw Hill

1987.

8. Bill Reddin, "Managerial Styles Made Effective", Tat Mc

Graw Hill 1988, Page-30.

9. W.J. Reddin, " Effective Management by Objectives",

Mc Graw Book Company 1971 Page-7.

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10. Gene Burton & Manab Thakur, "Management Today",

Tata Mc Graw Hill Publishing Company 1995 Page-326.

11. Gene Burton & Manab Thakur, " Leadership for

Managerial Effectiveness", Tata Mc Graw Hill, Publishing

Company 1995.

12. K.K. Ahuja, " Personnel Management", Kalyani Publisher

1994Page-415.

13. W. Haynes, "Principle and Practice of Management",

Second Edition, Central Educational Enterprises 1996

Page-379.

14. N. Gopal Samy, "Effective Business Management",

Page-268.

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