How Effective Management Practices Boost Productivity and Business Growth

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How Effective Management Practices Boost Productivity and Business Growth

Topic: Strategy and Organisation 

Format: Article

Published Date: February 2026

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Management Techniques And Their Benefits
Effective management not only drives productivity and organisational success but also creates a culture that can help accelerate professional growth.

Rapid digital transformation, evolving employee expectations, and global economic volatility have ushered in a dramatic evolution of the business landscape over the last decade. And along with this, there has been an overhaul of the idea and discipline of management as well.  

Historically, management was considered to be a responsibility reserved for senior leaders at the top of the hierarchy. But today, it is widely recognised as a critical skill that is essential for any professional aspiring to advance their career trajectory. 

Research by Stanford Business highlights that management practices account for 20% of the variation in productivity. This shows that the right management practices are so much more than just an operational necessity—they are in fact a strategic lever with a direct influence on organisational productivity comparable to R&D and technology investments.  

But to get a better understanding of the wide-ranging impact of management, it is important to first understand its five key functions:  

Planning 

“Good fortune is what happens when opportunity meets with planning.” — Thomas Edison.  

Every success story begins with an idea, but what truly drives it forward is meticulous planning. 

Comprehensive planning forms the foundation upon which sustainable organisational success is built. This is because it addresses the most critical questions: what needs to be accomplished, how it will be executed, who will be accountable, and what the completion deadline is. It gives you a better understanding of how to approach new ventures and improve existing ones. 

Earlier, planning was often guided by immediate impulses. But today, organisational planning is highly data-driven, wherein information from multiple credible sources is gathered and analysed, and experts are consulted to create a comprehensive, holistic plan.  

According to a study in the International Journal of Management, a 20-30% goal attainment increase can be attributed to strategic planning. Once a plan’s details are defined and aligned, the different phases of business survival, profitability, and growth fall into place one by one.  

Organising 

While planning provides the details, its successful execution depends on the organisation. In the case of a well-structured organisation, planned actions unfold smoothly, reducing the chance of mistakes. This is particularly important when a lot is at stake, such as during a complete digital transformation.   

The first step in organising is to establish a clear company structure so that every employee has a well-defined role for which they are accountable. A straightforward approach always works best in creating a company’s structure. It strengthens operational efficiency and ensures open communication.  

Another critical, though somewhat overlooked, aspect of organising is the judicious allocation of resources, financial or otherwise. Ensuring optimal use of resources is key to creating and sustaining value.  

Staffing 

Simply put, staffing can either drive or derail a company's success. From manpower planning, to recruitment, selection, and placement, rigorous evaluation is required at each step to ensure competent, reliable talent is present across hierarchical levels in the organisation.  

Training and development are fast emerging as the most critical pillar of staffing, as both employer and employee expectations undergo a sea change. Not only do employers expect employees to stay abreast of new, critical skills entering the market, but today’s employees are also evaluating the value and benefits a role offers them. 

This is particularly true for the incoming Gen Z employees. According to the Deloitte Gen Z and Millennial Survey, learning and development are top priorities for them, and they expect their employers to provide these opportunities. 

Directing 

Directing, or leading, is another key function of management. Once the work is planned, and the right people are in place, a leader must take charge to guide and direct the entire process. This is critical to ensure that initiatives advance according to plan and deliver the intended strategic outcomes. 

Leadership styles vary, and the most effective leaders adapt their approach not only to their own personality but also to their team and the task at hand. Motivating employees is another key leadership responsibility. Employees may face a range of challenges stemming from demanding operational tasks or personal inhibitions. Through it all, a leader should constantly guide them to overcome these barriers and perform at their highest potential. Words of encouragement, formal recognition, and financial incentives are time-tested ways leaders inspire their teams.   

A Systematic Literature Review (SLR) of 20 peer-reviewed journal articles revealed a consistent positive correlation: democratic and transformational leadership styles can significantly enhance employee performance, especially when combined with high internal and external motivation. 

Supervising 

Each employee brings a distinct working style. Effective leaders aren’t those who compel employees to work in a certain way, but those who foster an employee’s individuality while ensuring alignment with organisational objectives and outcomes. Supervising in the workplace is essential to maintaining order, ensuring proper role execution, and achieving desired outcomes. 

A traditional yet highly effective way to exercise supervision is through close monitoring of operations. Several tech solutions have made this task easier. Implementing a standardised performance system allows you to track progress, evaluate standing, and adjust plans accordingly. 

Overseeing company operations also provides an opportunity to identify any deviations from the planned course and implement corrective measures.  

The Way Ahead 

Effective management is the cornerstone of organisational success. It brings calm to the chaos by implementing structure, enhancing decision-making, and increasing the likelihood of achieving strategic objectives.  

While management may appear straightforward, closer examination reveals significant depth and complexity. A rigorous understanding of its principles enables leaders to make more informed decisions, optimise processes, and accelerate professional growth. 

For senior professionals wishing to deepen their expertise, executive education programmes can help them master contemporary management practices. These programs provide exposure to cutting-edge business concepts, guidance from experts, and insights into the latest management practices, all within a carefully designed, multi-phase curriculum. 

FAQs 

  1. Why is effective management considered critical in today's business environment? 
    Modern organisations experience rapid digital change, shifting expectations from the workforce, and economic uncertainty. Effective management cuts through such complexity by providing clarity, enhancing decision-making, and aligning people with organisational goals. It is no longer confined to senior leaders but is a core capability for professionals across levels.  

  2. How does management practice affect productivity and broader business outcomes? 
    Management practices shape how work is planned, executed, and reviewed. A clear objective, clearly defined roles, efficient resource use, and consistent supervision reduce the chances of inefficiency and errors. Several studies show that strong management practices can account for significant productivity variation and thus can be a strategic lever for growth.  

  3. What is the role of planning to achieve success in an organisation? 
    Planning brings clarity on what should be done, how it needs to be done, who does it, and when the result is expected. Modern-day planning practices are more information-based and strategic, to facilitate improvement in the attainment of goals, risk management, and sustainability of organisations.

  4. Why is staffing and employee development important today? 
    Staffing is not just about finding the right talent but includes ongoing learning and development. Skills requirements keep changing, and therefore, employees, particularly Gen Z, would want opportunities for growth.

  5. How does leadership and supervision influence employee performance?  
    Effective leadership guides, encourages, and adapts according to the situation. Combined with structured supervision and performance tracking, it ensures accountability while allowing employees to perform at their best.