What Is Management Effectiveness?

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  • Written By: Tess C. Taylor
  • Edited By: W. Everett
  • Last Modified Date: 28 March 2020
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Management effectiveness refers to the measurable results that show how well a manager can do his job. Managers contribute to a company's performance by overseeing people, processes, and resources. This can be measured by evaluating the skills demonstrated in situations such as client handling, work delegation, conflict resolution, sales achievements, and human resources management.

A seasoned manager should be able to demonstrate his management effectiveness by handling customers in a consistent, yet tactful manner. This effort often results in positive feedback from clients. Once this feedback is gathered, it can be compared to the actions of each manager to place value on the work that the manager does. This information is invaluable when trying to determine the effectiveness of managers at every level.

Another way to understand the management effectiveness of a particular person or department is to consider how well conflicts are handled. If employees and customers are happy, that means the manager is doing the job right. If there is unresolved conflict within groups of employees or teams, then the management effectiveness is not as it should be. Conflict evaluation helps to identify areas in which managers need to improve, and sets the stage for more productive environments once these matters are resolved.


In terms of project and work management effectiveness, a manager must be able to handle human resources and delegate work appropriately to stay ahead of the game. When managers assign tasks to employees who have the right skills to do the work, then management effectiveness increases exponentially. A well-managed team is productive, innovative, and effective.

Lastly, a good way to see the results of management effectiveness is through sales achievements as demonstrated by sales reports. By reviewing the numbers and noting what goals have been accomplished, a manager responsible for sales can provide a concrete record of effectiveness. Sales reports show the bigger picture over short and long periods of time, so that managers can continue to improve and be successful as managers.

Overall, a test of management effectiveness will include a formula for determining the rate of investment of people and resources. The goal of any for-profit business is to earn the maximum revenues based on the least amount of used resources. When the ratio of production to manpower is determined, a low number of people to goods or services produced is a good sign that management is doing well.



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