Sports is one field where team managers are consistently either praised to the hilt or derided for the performances. In the business world, the glorification of management practices though is less obvious. To cite an example management consulting has long been known as a profession where the expert simply arranges already known obvious facts in an aesthetic manner. This perception however is inaccurate as a recent study on firms’ performances vis-à-vis the practices adopted shows. Data is paradoxically low when it comes to the field of management, and even the material available is often in the form of case studies on top companies taught at various MBA institutions. Thus in this latest study a more holistic approach was adopted with manufacturing plants all over the US sampled. Questions were phrased under three broad heads- monitoring, targets and incentives. It clearly emerges that only a fifth of them make use of the latest management practices recommended but these were far more productive. For each ten percent increase in adoption of best management practices, there was a fourteen percent productivity increase. There was even a difference in performance within the same firm’s separate plants. Other factors were also studied and it emerged that for every increase in productivity, eighteen percent may be directly attributed to management practices, a bit less to research and development, then come employee skills and finally IT investment at single digits.


Uploaded Date:07/07/2017

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