Term Paper on "Best Predictors of Managerial Performance"

Term Paper 12 pages (4991 words) Sources: 1+

[EXCERPT] . . . .

Predictors of Managerial Performance

The definition of a manager is often incomplete without knowing the organization culture, and in many organizations there are owners who are directly involved with running the organization. It is useful to remember some brands launched by Ford Motors in this regard. This characteristic goes down the line and often a manger is delegated to just being a glorified order executor. We shall not look at those aspects, but view an ideal situation where a manager is given responsibility and expected to perform at a level to be able to match that responsibility.

The first question to be judged in this context is the expected level of performance of the manager, and then one needs to decide upon whether the manager will be in a position to meet the expectations which are being set. This is a problem that will have to be faced by the superiors to the managers. They will be the shareholders for a limited company or the owner for a smaller organization. There have been studies of small firms in the United Kingdom, which have explored the relations among managerial behaviors and these were focused on a competence model; entrepreneurial style which were focused on the theory of Covin and Slevin; and firm types which are measured on the basis of sales growth performance. Further analysis of management competence has found various broad categories of managerial behavior. There are also several measures relating to entrepreneurial style, and analysis on these behaviors have shown that managing culture and managing vision are linked to an entrepreneurial style, while managing of performance levels are being linked to a non-entrepreneurial style. (Sadler-Smith; Hampson; Chaston; Badger, 2003, p. 47)

Entrepreneurial operational style, even though is not directly linked to managerial behavior, was found to be linked with the possibility that a firm would be having an increased growth rate. This sort of an assessment is considered to be good from a point-of-view relating to knowledge growth, but it does not offer any guidance on selection of managers suitable for the organization. Finally, it needs to be understood that the nature of growth of any firm or organization would be based not on the manager, but on the other hand it would be on the proprietors or the owners of the organization. Again, if it is felt that a high-growth is always felt to be desired, it would be considered to be wrong from the angle of risk analysis as rapid amount of growth necessarily means taking the risks which are of higher levels rather than taking lower type of risks and accepting slower amount of growth. One of the basic principles of management is that equity should be to earn higher amount of return than that of loan, and in general it means that the investment in the nature of equity is only about half of the investment which is in the form of loan. Thus if an organization is really intending to take on high risks, and possibly grow at higher levels, then it should eschew the loan funds. How many organizations would be able to do that? Let us see what research says.

How to choose a manager?

Let us get back to the matter on hand, and that is the determination of the performance of a manager. It is clear that the final assessment is available in full and in a form which is not disputable after a point the manager has functioned. This is true not only in relation to the chief executives, but it also pertains to the junior managers, and this is in the nature of the results that the manager has been able to attain. This is seen in the operational capacity of the team for which the manager is considered to be the controller or director. If the team operates reasonably well, then it is considered to be due to the excellent performance of the manager. If a manager is not operating well, then it will be shown in terms of the excuses that will crop up among the rank and file of the organization. The first thing is that a manager needs to perform and this clear understanding is being sought from the time from which the manager joins the organization. The assessment of a manager begins right from the time the manager is being employed and even at that time the competence levels of the manager who has been recruited for the job has to be judged. The first criterion for any manager is an understanding the job. This is difficult for complex jobs but without a clear understanding of what is required for performance, it will be very difficult to make good decisions on the competence of the manager for the job. (Managerial Assessment in the 21st Century)

The second point is that the entire process of choosing a manager should be systematic. What this means is that hiring occurs through a systematic process in which several pieces of information are being collected and used for the process of decision making. This system must be able to account for the appropriate management of candidate information and also provide important data to those who have to make the decisions. The third point is of taking expert judgment. In many cases the hiring organization may not have managers capable of choosing the required manager and then experts are a good option. These experts allow organizations to take advantage of the value of their experience in selections for a wide variety of jobs than in the past for positions in that type of industry. This provides a great advantage for making sound hiring decisions for complex jobs. (Managerial Assessment in the 21st Century)

The fourth important factor is to always think of the human element. The use of experts to form a greatly detailed assessment report is an important factor for better managerial hiring, but it does not mean that it should be used as the only piece of information on which decisions are to be based upon. Effective decision making needs focusing on the expert judgment of hiring managers and recruiters who are experienced and who may not know much about the technicalities, but are able to understand the human qualities of the individual. Assessment results through technical methods and technical experts are meant to help provide these human experts with decision making support.

The fifth point is to relate assessment results to that of development. This is required for any kind of job and is particularly significant for managerial level jobs. Fewer organizations understand the significance of using assessment data collected at the time of the hiring process. These are meant to help create immediate developmental plans for new persons employed. The idea of hiring an employee at the managerial level who is perfect for the job is unlikely. The complexity of all managerial jobs needs the immediate determination of developmental requirements and providing ongoing coaching and performance planning in order to help development of new managers. (Managerial Assessment in the 21st Century) While there has been no clear indication or direct mention of qualities required for managerial performance, certain factors have been clearly mentioned. The first is that the manager has to meet the job expectations; the second is that the process of selections should be systematic since if it is not so, then the selectors may easily think that they have made a mistake; the third should be the evaluation of the manager for the technical knowledge required for the job; the fourth is the opinion of human relations experts as these qualities are not strictly quantifiable; and the last point is that managers have to be trained even after appointment.

The general rules

Among some reasons for managerial performance one can be thought to be intelligence, but what the management recruitment experts feel is that a good manager requires general intelligence. This is not the same as intelligence that is measured through intelligence tests. In the conventional intelligence, what is measured is the intelligence that is required for performance in examinations, and possibly education. This is available in the highest quantities among mathematics majors, and this can be seen in the Graduate Record Examination subject-matter tests. These are somewhat similar to the GRE aptitude examinations. The mathematics majors are generally on top, followed by physics and chemistry majors. The entire group of these individuals receives good marks in college. Yet while they are intelligent, there is no rush among the recruiting agencies to offer them positions as managers. (Sternberg, 1997, p. 51)

The type of intelligence which the managers require is not considered to be the same as are being measured in these tests and that should be viewed to be quite obvious -- none of these tests were being developed and formulated for the purpose of selecting and recruiting managers. There are however certain tests which are being used for selecting applicants into management colleges in some other countries where the… READ MORE

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