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How do you find a Good Manager

Author

Listed:
  • Bhalotra, Sonia R.

    (University of Warwick)

  • Deming, David J.

    (Harvard Kennedy School)

  • Said, Farah

    (Lahore University of Management Sciences)

  • Vecci, Joseph

    (University of Gothenburg)

  • Weidmann, Ben

    (Harvard Kennedy School)

Abstract

This paper develops a novel method to identify the causal contribution of managers to team performance. The method requires repeated random assignment of managers to multiple teams and controls for individuals’ skills. A good manager is someone who consistently causes their team to produce more than the sum of their parts. Good managers have roughly twice the impact on team performance as good workers. People who nominate themselves to be in charge perform worse than managers appointed by lottery, in part because self-promoted managers are overconfident, especially about their social skills. Managerial performance is positively predicted by economic decision-making skill and fluid intelligence – but not gender, age, or ethnicity. Selecting managers on skills rather than demographics or preferences for leadership could substantially increase organizational productivity. JEL Codes: J24 ; M54 ; O15

Suggested Citation

  • Bhalotra, Sonia R. & Deming, David J. & Said, Farah & Vecci, Joseph & Weidmann, Ben, 2024. "How do you find a Good Manager," The Warwick Economics Research Paper Series (TWERPS) 1506, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:1506
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2024/twerp_1506_-_bhalotra.pdf
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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