“Good management matters…If you’re reading this you probably don’t need convincing, but one of the most significant milestones in economic research over the last several years was documenting empirically that it really is true.”
After reading that in an article by Walter Frick, I was wondering how significant it really is and what kind of evidence the author has to prove that.
Reading on, I found the evidence that proves the hypothesis of how management matters to a firm. Businesses were surveyed, and those with better management showed 23% greater productivity. “Variation in management accounts for nearly a quarter of the roughly 30% productivity gap between the U.S. and Europe”.
After reading this, I learned the importance of having good managers at the start of my career. Also I have to be a good leader when I rise to that level in a firm.
I do have some questions for the author. First is how do you define the good or bad management in a firm or company? Because the statistics provided by the author stated that firm with good management had 23% greater productivity. The article did not really illustrate how they compared with other firms. Second, what about other factors? Because it did not say how they evaluate the manager either.
So, in summary, this article shows some elements of good management that are required. However, I’d like to see more evidence.