India is still operating far below par in its managerial capabilities and there’s considerable room for improvement, according to a new study.
The Managerial Capability Index – a measure of management performance across large and small organisations and multinationals – stands at 77.8% for the year 2011, according to a report released recently.
The survey was conducted by the All India Management Association (AIMA) and Mercer India. This is the second such report, and the country’s index has shown a slight improvement from its score in the inaugural report — which was a mere 74.6%.
The total score was computed based on scores across 10 different parameters after asking chief executive officers and managing directors to evaluate the organisation's current performance on a scale. The results were drawn from responses from 412 organisations across sectors surveyed from June to December 2011.
“India is still working at three-fourths of its capacity,” said Rekha Sethi, director general of AIMA. “There is still a long way to go before we can say we are 100% effective. While there is an improvement compared to last year, it is very minor. We can do better.”
Organisations had the highest score on the parameter of integrity and corporate governance, at 80.1%, with the lowest score for people leadership at 74.9%.
“… Indian organisations perform relatively better in the more tangible, performance-oriented measures such as organisational results and comparative performance and performance leadership,” the report said. “In contrast, Indian organisations continued to perform weaker on the softer aspects of leadership and management, such as people leadership and organisational capability.”