Monday, 2 December 2013

MANAGEMENT AND MEASURING MANAGERIAL PERFORMANCE



What is Management and how do we measure Managerial Performance? This is one of the favorite question in tests and final exams.


There are many definitions discussed by scholars and experts in the field of management. The most famous is the definition coined by Mary Parker Follet, a lecturer and management theory writer from UK. She defined management as the "art of getting things done through other people".  From her definition, we can conclude to say that management is convincing people to towards achieving goals and objectives set by the organization. Another broader definition of management is mentioned by Stoner, Freeman and Gilbert (1995) stating that management is “the process of planning, organizing, leading and controlling the efforts of organization members using all other organizational resources to achieve stated organizational goals”. Organizational resources refer to land, labor, capital, technology, raw materials and process. Goodman and Fandt (2004) described management as “the process of administering and coordination resources effectively, efficiently, and in an effort to achieve organizational goals”. Based in the above definitions, the key words most commonly use here is influencing people, utilizing resources and achieving organizational goals.
 
A manager’s performance can be measured by looking at two criteria i.e., effectiveness and efficiency.  Effectiveness is achieved when the organization pursues the appropriate goals while efficiency is achieved by using the fewest inputs to generate a given output in other words minimizing cost of resources needed to achieve goals. Effectiveness can be seen as “Doing the right things” while efficiency can be said as “Doing things right”.

1 comment:

  1. Your managers are one of the most important parts of your company’s infrastructure, as they’re responsible for the success of your individual projects, for the performance of any retail and/or wholesale outlets your company manages, and for the overall effectiveness of your management team.

    But while management candidates may look wonderful on paper or may “feel” like a good fit for the position – especially if they’ve been promoted from within the company – objectively evaluating your management team is an essential skill that must be cultivated. In order to do so, you must first disassociate yourself personally in order to measure individual managers and candidates based on standard expectations, performance and group cohesion.

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