Management performance: an empirical study of the manufacturing companies in Taiwan

This paper proposes a methodology to measure the management performance of the firms of an industry. The idea is to break down the very complicated concept of management into subjects such that the performance of each subject can be measured. The performances of all subjects are then aggregated to form an overall performance of management. The weights associated with the subjects which play a decisive role in aggregation are determined from a two-stage method. This method takes into account both the experience of the experts and the reality reflected by the data collected from the firms. Therefore, the weights generated are more acceptable to the firms. An example of the manufacturing firms in Taiwan illustrates how management is broken down into subjects and how their performances are aggregated. A regression analysis shows that management, in addition to capital and labor, makes a significant contribution to organizational performance. Although the discussion of this paper is confined to the manufacturing industry in Taiwan, the methodology can be applied to other industries and other countries.