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TOPIC 1- THE EFFECTIVENESS OF MANAGEMENT ¿Does Management really work? -…
TOPIC 1- THE EFFECTIVENESS OF MANAGEMENT
¿Does Management really work?
3 practices that are generally considered to be the essential elements of good management:
INCENTIVES
Does the organization reward high performers with promotions and bonuses while re- training or moving underperformers?
MONITORING
Does the organization rigorously collect and analyze performance data to identify opportunities for improvement?
TARGETS
Does the organization support long- term goals with tough but achievable short- term performance benchmarks?
Researchers learned three things
Indicators of better management and superior performance are strongly correlated with measures such as productivity, return on capital employed, and firm survival
Management makes a difference in shaping national performance.
Many organizations throughout the world are very badly managed
Well-run companies set stretch targets on productivity and other parameters, base the compensation and promotions they offer on meeting those targets, and constantly measure results
Article information
Why are some organizations motivated to change and others aren’t?
Leaders often initiate transformations in response to extremely challenging conditions.
A call for “better management” may sound prosaic, but given the potential effect on incomes, productivity, and delivery of critically needed services worldwide, it’s actually quite radical.
On average, firms that received the management intervention cut defects by half, reduced
inventory by 20%, and raised output by 10%.
Evidence based management
Decision Making Process
Best available experimental evidence
Organizational values and stakeholders' concerns
Best avilable scientific evidence
Best available organizational evidence
Bloom et al., 2012
The sample
Independent and multinational--owned companies with 50 to 5000 workers
20 countires in developed and developing worlds
Medium-size manufactures
More than 8,000 firms
Data collection started in 2004