Criteria for evaluating the effectiveness of a management team

The effectiveness of a Management team can be evaluated based on various parameters. Generally, the percentage of achievement against the targets is one way of evaluating the effectiveness of the team. For example, a company is being operated by a team of managers and they will be the management team of the company.
The budget for the year can be discussed and decided just before the new financial year starts. These budgets will be decided based on the market performance last year and the abilities of the company. These will be discussed in detail with all the concerned people and agreed upon. During the course of the year at the prescribed periodicity reviews will be conducted. And in the end year, the actual achievements will be seen and compared to the initial projections and percentages will be calculated. Based on the achievement one can decide on the effectiveness of the Management will be assessed.
The budget will include the budget for each department. This is the best way to evaluate the criteria for assessing management effectiveness.
The sales, the production, the finances, the total expenditure, the total turnover and the profit will be taken in the year beginning as the budget and the actual achievements during the year will be compared to the above individually.

There are many functions in an organisation and the purpose of forming a management team is to achieve a overall growth and success in meeting the organisational goals and objectives.

In light of this a management team is supposed to meet periodically to discuss the plan and ongoing projects and taking their mid term review. As there are people from different departments in a management team, it is imperative that the team can find solutions while discussing the performance and monitoring the progress.

The main thrust of the management team is to provide the funds for the budgeted projects and workflows and also to assess the progress and revise the budget if needed. Other important consideration is the sale of the items in market vis-a-vis the production levels. This is an important consideration as the management team will have to upgrade or slowdown the production depending upon the sale data. There is no point in increasing the inventory and store it in warehouse. A long self time is always an adverse situation for a particular product.

Management team has also to see the availability of manpower and if any change is required in that depending upon the work activity. If so it has to suggest recruitment of people or shifting of excess hands from one department to other department.

There is a big competition in the market today and the management team has to find out how their items are being bought and ranked in the market. So they have to come out with innovative schemes in the market to promote their product. For example they can declare special discount schemes or cash back schemes linked with various paying mechanism right from credit card to PayTM.

In the link Discussion of Functions of Manager in detail we briefed on the responsibilities of a manager in any big or large sized organization.

Going ahead, how far the responsibilities in context with the assigned job profiles have been fulfilled or executed would be playing the major role in evaluating the effectiveness of a management team.

We already having an idea that the different strata or level of the management / organization are concerned with a particular set of job responsibilities with a pre-defined set of expectations in the form of objectives / goals & the manner in which these objectives / goals have been complied with will decide on about how efficient the system is or if the same is required with some sort of training to be carried away with.

Let's try to understand this with a simple example wherein being on a technical side you are instructed to perform a 100 tasks within a certain duration but being the case that this can only be possible with the combined effort of other co-workers as well which may have direct or indirect implications on the final outcome. The challenges in performing the job would even be extended with the inclusion of the outside customers & with the involvement of the time constraints. Above this & when seeing yours own limitations in dealing with the situations how far you are able to manage to complete will make this whole a bit more complicated raising several suspicions on your capabilities.

Now out of 100 tasks how many that you are able to execute would be the deciding factor on the final evolution of yours. This is not an end here but this will also include about yours efficiency in utilizing with the allocated resources to you. But the overall performance may not be the satisfied one for others because the numbers of errors occurred resulting onto with increased wastage of the company's resources on your account.

Everything included in this & therefore everything matters here.

Efficiency of the management team for a particular section or the department would depend upon achievement of the target as decided by the management team in advance prior to commencement of the financial - year and at the end of the the said financial year, the figure obtained would indicate the efficiency of the management team. In fact it is the ratio of the target achieved/ target set for the period ^ 100.
However, the different sections of the plant/ unit would have to deal with different parameters such as the volume of production in the different units, quantity of the material being despatched from an unit to the other unit of the same plant, effective utilisation of the man - power in achieving the target already set are taken into account.
In all the cases, as discussed above, the work - function of the managers would vary but the end - result in terms of a mathematical - model would indicate their performance rate.
Production alone is not the criteria of efficiency of the management team but this has to be accompanied by faster depletion of the material from the unit so that the inventory cost is reduced effectively and more space is available for stacking the fresh material.
Hence the manager of the finishing mill would co- ordinate with the marketing and Railway department for the speedy disposal of the finished products by speedy despatch of the rakes in the stock - yard/ direct party despatch. More the despatch, more is his efficiency. Though, there are certain parameters affecting his performance such as breakdown of cranes, locating the material from the huge stacking of the material in a haphazard ways, unavailability of wagons from Railways. These would affect the performance of the manager beyond his control. However, any lapse in this regard is not excusable, he is being held responsible.