According to Harvard, individuals who actively seek managerial roles often perform worse than those who are randomly assigned to the position
Finding good managers is a significant challenge for many companies. According to research from the National Bureau of Economic Research, most organizations tend to select managers based on factors like personality traits, age, or experience. However, these criteria might not be the most effective in predicting managerial success.
The Qualities of a Good Manager
Being a good manager requires a unique blend of skills and qualities, many of which rarely coexist in the same person. One critical quality is the ability to relate well to others and foster a sense of psychological safety, a concept highlighted by Harvard’s Amy Edmondson. Psychological safety means creating an environment where employees feel secure and valued, which encourages them to be open to feedback and willing to share their ideas.
Communication is another essential skill for managers. However, it’s not just about conveying information but also about understanding the nuances of how feedback is delivered. The choice of words and the manner in which they are framed can significantly impact how the message is received and acted upon by employees.
In addition to interpersonal skills, a good manager must also be analytically minded. This involves being open to new ideas and approaches, as well as the ability to step back and assess whether the team or organization is functioning at its best. Having a strategic vision is also crucial, as managers need to understand the broader goals of their organization and how their team can contribute to achieving those goals.
The Challenge of Selecting Good Managers
One of the most surprising findings from the study is that individuals who actively seek managerial roles often perform worse than those who are randomly assigned to the position. The researchers found that these self-nominated managers tend to be overconfident in their abilities and often misjudge the needs and motivations of their team members. This overconfidence can lead to ineffective management practices and poor team performance.
This insight is particularly important because many organizations tend to promote individuals who express a strong desire to lead. However, as the study suggests, there is a significant difference between wanting to be a manager and actually being effective in that role.
Predicting managerial success
So, what are the best predictors of a good manager? According to the research, traditional metrics like age, experience, personality traits, or even gender do not reliably predict managerial success. Instead, two key factors stand out:
- IQ: General and fluid intelligence, as measured by tests like the Raven’s Progressive Matrices, is a strong predictor of a manager’s ability to solve problems and make effective decisions.
- Economic Decision-Making Skill: This refers to a manager’s ability to allocate resources effectively, a skill that directly impacts team performance and productivity.
The study highlights that these two factors are more closely aligned with the actual tasks managers are expected to perform, such as organizing and motivating team members to achieve the highest possible output under various constraints.
The Importance of good management
At a broader level, good management is crucial for organizations to navigate complex strategic landscapes. Whether it’s a large corporation or a small team, managers face the challenge of determining priorities, assigning roles, and providing feedback. Effective managers not only ensure that their teams are productive but also contribute to the overall success of the organization.
Good managers are not always the most vocal or charismatic leaders; sometimes, they are the quiet but effective individuals who know how to bring out the best in their teams. This is why organizations must adopt more scientific and analytical approaches to identifying and selecting managers, rather than relying on subjective criteria like personality traits or expressed interest in leadership roles.
A new approach to identifying good managers
The research paper introduces a novel method for identifying good managers by randomly assigning managerial roles in a controlled lab setting. This approach allows researchers to isolate the manager’s impact on team performance by controlling for the quality of the team members.
The main contribution of this research is to demonstrate that management skills can be measured and that these measurements can lead to significant productivity gains for organizations. While the study was conducted in a lab environment, the researchers are optimistic that the methodology can be applied in real-world settings, offering companies a new way to identify and develop effective managers.