Do Managers Matter? Manager Effects on Organization Performance

Abstract

In this study, we examine how pre-managerial experience and performance relates to managerial success. Some prior research has documented that managers contribute to organization performance, but the link between specific manager characteristics and performance has been dubious because data about managers' prior work history are typically quite limited. We overcome this limitation by examining our research question in the context of Major League Baseball, where data on pre-managerial work history are available for a large subset of managers. This allows us to focus on two questions that have not been adequately addressed in prior studies. First, does success prior to becoming a manager translate into success as a manager? Second, what is the relative importance of measurable versus unobservable manager characteristics on performance?

Manager impacts on worker performance in American football: Do offensive coordinators impact quarterback performance in the National Football League?

“…Similarly, managers with five or more years of major league experience are shown to contribute to slight increases in players' batting averages compared with managers with less than 5 years of major league experience. Hall and Pedace () performed a similar analysis. Contrary to the above study, the authors found no evidence that managing experience or playing experience in MLB impact a manager's team winning percentage.…”

The impact of participation in pan-European competition on domestic performance in association football

“…However, previous research shows that team managers, despite variations in efficiency (Frick & Simmons, 2008;Hall & Pedace, 2016), generally produce improved sporting outcomes from increased revenues (Dobson & Goddard, 1998;Hall, Szymanski, & Zimbalist, 2002;Kringstad & Olsen, 2016). This suggests that the money awarded for participation in pan-European competition may mitigate or wholly offset any fatigue effects by allowing teams to invest in additional or higher quality players.…”

Do analysts follow firms with able managers?

“…Bertrand and Schoar (2003) find that decisions of different managers are inconsistent, indicating that management decision‐making involves different styles. Subsequent studies investigate the impact of management, such as academic qualifications, age, educational background, reputation, industry experience, military experience, and childhood hunger experience, on financial decisions or performance (Malmendier, Tate, & Yan, 2011; Feng, Song, & Tian, 2019; Benmelech & Frydman, 2015; Feng & Johansson, 2018; Fizel & D'Itri, 1997; Hall & Pedace, 2016;). All these management characteristics can be ultimately reflected in managerial ability.…”