Managerial Efficiency, Managerial Succession and Organizational Performance

✍ Scribed by John L. Fizel; Michael P. D'Itri

• Publisher: John Wiley and Sons
• Year: 1997
• Tongue: English
• Weight: 154 KB
• Volume: 18
• Category: Article
• ISSN: 0143-6570
• DOI: 10.1002/(sici)1099-1468(199706)18:4<295::aid-mde828>3.0.co;2-w

✦ Synopsis

Data envelopment analysis (DEA) is used to create a measure of managerial ef®ciency in an attempt to reassess the con¯icting theories concerning the impact of organizational performance on manager succession, and the counter-theories concerning the impact of manager succession on organizational performance. The analysis uses data for 147 college basketball teams from 1984 to 1991. The results indicate that winning, not ef®ciency, is the key criterion used in determining managerial retention. Yet when managers of losing teams are dismissed the teams tend to do even worse. If, however, the ef®ciency of the new manager is greater than that of the former, the disruptive effect of succession is minimized. Because administrators appear to focus on winning, not ef®ciency, they will often select new managers who are less ef®cient than departed managers. These results are unique to this literature and indicate promise for the use of DEA in analyses of the internal ef®ciencies of organizations.