International Journal of Management and Economics Fundamental
73
https://theusajournals.com/index.php/ijmef
VOLUME
Vol.05 Issue 05 2025
PAGE NO.
73-79
10.37547/ijmef/Volume05Issue05-15
Theoretical Foundations for Assessing the Effectiveness
of Managerial Activities of Managerial Staff
Sardor Abdullayev
Tashkent state university of transport, Uzbekistan
Received:
31 March 2025;
Accepted:
29 April 2025;
Published:
31 May 2025
Abstract:
This article analyzes the theoretical foundations and the essence of assessing the effectiveness of
managerial activities of managerial staff in organizations. It also examines scientific approaches and modern
trends in evaluating managerial effectiveness.
Keywords:
Effectiveness, managerial effectiveness, managerial staff, performance assessment, KPI, systematic
approach.
Introduction:
In recent years, within the framework of
ongoing reforms in Uzbekistan, improving the
efficiency and achieving results in the management of
tasks assigned to government bodies has become one
of the pressing issues on the agenda. This involves
refining public administration efficiency methods
through advanced international experience and
scientific research. It is crucial to focus on developing
organizational, socio-economic, and legal relations and
improving evaluation mechanisms in the development
of management in public administration and in
increasing the efficiency of managerial staff.
The effectiveness of managerial staff activities is an
important factor in the development of enterprises and
organizations. In today's rapidly changing world,
introducing new standards and methods for improving
and assessing the effectiveness of managerial
personnel is of great importance in achieving economic
growth and successful reforms.
Literature Review
The theory of management and its fundamental
concepts were emphasized by American scholar Peter
Drucker in his book “The Practice of Management”,
where he stated that “the primary
function of
management is economic efficiency, and its main task
is governance.” [1]
Among the scholars in the field,, Frederick Taylor, in his
work “The Principles of Scientific Management”,
described how planning, standardization, and control
can lead to efficiency. His approach serves as a basis for
the orderly organization of managers' activities. [2]
In addition, the scientific approaches of management
schools and scholars such as A. Fayol, M. Weber, M.
Follett, E. Mayo, A. Maslow, F. Herzberg, R. Likert, D.
McGregor, R. Ackoff, N. Wiener, and V. Pareto provide
an opportunity to further develop the research topic.
Researchers A. Fedyainov, A. Sokolov, I. Yu. Chazova, V.
Yu. Voitovich, V. Kochetkov, and others have
theoretically and practically investigated managerial
effectiveness.
Among local scholars, Sh. Zayniddinov has conducted
research on evaluating social and economic
effectiveness and influencing factors in the managerial
activities of organizations.
Scientific research in the field, through a deep study of
management science, provides a theoretical basis for
achieving effectiveness in the management of
executive personnel in organizations. This serves to
form a scientifically grounded approach that
comprehensively
covers
the
effectiveness
of
managerial staff activities.
METHODOLOGY
In this study, systematic, historical-analytical, and
content analysis methods were used. Scientific
approaches and theoretical concepts related to
evaluating managerial effectiveness were analyzed.
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
RESULTS AND DISCUSSION
Today, in all state organizations, employee work
effectiveness is a process dependent on the effective
management of executive personnel. For this reason,
based on the goals and objectives of the scientific
research, it is necessary to study the scientific
investigations of scholars in the field regarding the
history of the emergence of concepts such as
"effectiveness," "managerial activity effectiveness
indicators (KPI)," and "performance assessment," and
solutions to problems in the assessment system.
The concept of effectiveness has been considered one
of the important areas to be investigated by
philosophers and scholars with the emergence of state
governance in ancient civilizations. For example, Han
Fei-tzu, a representative of the Legalist School in
ancient China, stated that "Effective governance
requires effective laws, defined powers, and
competent leaders" [3].
In the 11th century AD, the statesman Nizam al-Mulk,
in his work "Siyasatnama," studied the experiences of
rulers in state governance and expressed the idea that
a capable leader should be at the head of governing the
state and society for all times.
During the Middle Ages, Amir Temur, during his reign,
conducted the country's governance activities based on
"Temur's Code," and his instructions that "nine-tenths
of state affairs should be accomplished through
consultation, deliberation, and counsel, and the
remaining one-tenth with the sword" are still used
today as a guide in the practice of increasing the
effectiveness of managerial personnel.
The term "effectiveness" has been widely used in
scientific works. However, the meaning and scientific
significance of the concept of effectiveness vary due to
its application in different fields, indicating that it does
not have a single precise definition or rule.
In economic fields, the concept of "effectiveness" has
various definitions in literature and dictionaries. For
example, in Russian dictionaries published online,
"effectiveness" is defined as "achieving certain results
with the minimum possible costs or obtaining the
maximum possible volume of output from a given
amount of resources."[4].
The “Quality Management Systems –
Fundamentals
and
Vocabulary”
(ISO
9000:2015)
refers
to
effectiveness as the relationship between achieved
results and resources expended [5].
It is important to note that the definitions of
effectiveness found in sources are based on the
scientific research and investigations of theoretical and
scientific scholars, thinkers, and specialists in the field
of management.
The concept of "effectiveness" has its own approaches
through the theoretical and practical views of foreign
researchers and scholars. Researcher A. Fedyainov
expressed the following scientific conclusions
regarding the concept of effectiveness:
•
Achieving set goals with minimal costs;
•
Achieving the highest results with allocated
expenses;
•
Achieving the highest possible results with
minimal expenditures [6].
Fedyainov, building on P. Drucker's scientific view,
focused on general directions from the perspective of
achieving results through cost-effectiveness in the
concept of effectiveness. In short, we can understand
that ensuring activity effectiveness in management
means achieving a final result through organizational
and practical actions based on cost-effectiveness for
specified tasks.
Researcher A. Sokolov, in his scientific study, defines
the concept of "effect" as a direct or indirect result of
management
and
other
economic
activities,
represented by the difference between the income
received and the resources spent. "Efficiency", on the
other hand, is generally described as the ratio of the
achieved result to the value of the resources expended
to attain that result. [7]
I.Yu. Chazova and V.Yu. Voitovich, in their textbook
"Effectiveness of State and Municipal Administration,"
noted that the concept of activity effectiveness consists
of four groups of factors (Figure 1).
Their research reflects the practical relevance of the
viewpoints expressed by the aforementioned scholars.
In defining the notion of efficiency, Chazova and
Voitovich propose considering the alignment of actions
with goals and requirements, the use of the most
rational methods to achieve planned results, and the
effective utilization of available resources as key
components in attaining management efficiency.
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
Figure 1. Factors Influencing Activity Efficiency [8]
In the textbook published by Uzbek scholars M.
Sharifkhojaev and Yo. Abdullayev, the definitions of the
concepts “effect” and “efficiency” are provided based
on the Explanatory Dictionary of the Uzbek Language.
Specifically, “effect” is defined as “a result,
consequence, fruit, or the product of creative labor.”,
“efficiency” is described as “an expected or
even
greater-than-expected result; being productive or
efficient.” For example: “effective labor” (samarali
mehnat). [9]
Based on the above-mentioned scientific studies, the
concept of “efficiency” can be understood as the
degree to which defined goals and tasks are fulfilled
—
that is, a result achieved economically through the
proper application of appropriate tools and methods.
Considering that the concept of efficiency is applied
across all fields of activity, it is advisable to examine its
intrinsic link to the management process and the
performance of managerial staff. In line with the
objectives of this scientific research, it is essential to
conduct a scholarly analysis of the concepts of
“management activity efficiency” and “ managerial
staff perfo
rmance efficiency.”
There are various interpretations of the concept of
management efficiency proposed by scholars from
different schools of management thought. These
approaches are directly related to the specific research
directions emphasized by each scientific school (Table
1).
Table 1
Views of Management Science Schools on Management Efficiency
Name of the Scientific
School of Management
Management-Related Ideas
Note
Scientific Management
School (F. Taylor)
Full implementation of scientific
management in the enterprise.
These schools of
thought
were
effective to some
extent
for
their
time.
Classical
or
Administrative
Management School (A.
Fayol, M. Weber)
Focus on only two aspects: (1) a
rational system of management
and
(2)
the
structure
of
management for the organization
and employees.
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Human
Relations
School in Management
(M. Follett, E. Mayo, A.
Maslow)
Care for employees and ensuring
their satisfaction.
Ethical
Sciences
or
Behavioral School (F.
Herzberg, R. Likert, D.
McGregor)
Applying ethical science concepts
to help employees realize their
personal potential, i.e., focusing on
human resource effectiveness.
Management
Science
School or Quantitative
Approach (R. Ackoff, N.
Wiener, V. Pareto, V.
Glushkov,
L.
Kantarovich)
Using data from mathematics,
statistics, and engineering sciences
to develop models of operations
and situations and apply research
results.
Nowadays, they are
widely applied in
management
through
the
introduction
of
digital
technologies.
Table 1 provides an analysis of various approaches to
the concept of management efficiency as developed by
different schools of management science and their
representatives. These scientific schools have explored
management efficiency at different levels:At the
production level, at the level of the entire
organizational activity, and by considering the human
factor as a key element in management efficiency.In
addition, representatives of the modern management
school known as New Public Management (NPM) have
emphasized the application of advanced management
practices that ensure efficiency and effectiveness
specifically at the public administration level.
Unlike the approaches proposed by scholars from the
aforementioned management schools, researcher V.
Kochetkov has examined management efficiency from
both
theoretical
and
practical
perspectives,
distinguishing between broad and narrow scopes:
In a broad sense, management efficiency corresponds
to the effectiveness of the organization’s core activities
(e.g., production, financial-economic performance,
etc.). The efficiency of management activities is
determined by the performance of the management
system and is reflected through final outcomes. This
reflects an economic approach to evaluating efficiency.
In a narrow sense, management efficiency refers
specifically to the effectiveness of the management
process itself. Here, the efficiency of management
activities is seen as the final result of the organization's
functioning, which reflects a social approach to
evaluation. [10]
Building upon Kochetkov’s perspective, it can be
concluded that the content of management efficiency,
as noted above, possesses both economic and social
dimensions, depending on the evaluation approach
used. The classification of efficiency into these types is
explained by the differences in their objectives and the
forms of efficiency they represent.
In summary, the concept of management efficiency can
be divided into two types: economic and social.
•
Economic efficiency refers to the ratio of the
achieved result to the costs incurred under conditions
of limited resources.
•
Social efficiency implies taking into account
and satisfying the interests and needs of the
organization’s employees.
The goals of economic and social efficiency often
compete but also complement each other. [11]
Economic efficiency primarily applies to enterprises in
the private sector whose activities focus on production
or service delivery, thus requiring a stronger economic
approach.
Social efficiency, on the other hand, pertains to the
activities of organizations in the public sector. These
organizations mainly aim to improve the living
standards and welfare of the population, as mentioned
above, and their results are measured accordingly.
In this context, from an economic perspective, social
efficiency is more appropriate.
However, the role of the management system and
management process within the organization is crucial
for implementing all aspects of efficiency mentioned
above.
The efficiency of the management system and
management process is the integrated result of the
interaction between the manager and the managed
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
systems. Evaluating this result
—
i.e., management
efficiency
—
entails
identifying
the
relationship
between production outcomes and the performance of
the management system.
In other words, it is necessary to find an optimal
balance between these two approaches to effectively
assess the activity. [10]
In management science, the concept of management
efficiency in production refers to the effectiveness of
the management process, that is, the productivity of
management activities. Since the final results of
management activities are formed by the ultimate
outcomes of the work of leaders and employees, the
concept of management activity efficiency is more
complex and represents a broad socio-economic
dimension.
It encompasses all aspects of management activities
and reflects the characteristic features of economic-
social, marketing, technological, organizational, and
other relationships within the management process.
Management activity is defined as the organization of
coordinating and controlling employees’ work to
achieve the set goals and results of a given
organization. Management activity is part of the
system of management processes. These management
processes represent the activities of management
subjects united within a certain system aimed at
achieving the organization’s objectives, carried out by
the manager.
The concept of management activity efficiency has a
broad meaning, within which the key aspects of the
management system can be distinguished.
From the definitions of management activity efficiency
presented in Figure 2, we can understand its
possibilities and interconnections.
Figure 2. Key Concepts of Management Activity Efficiency
Through the concepts of management activity
efficiency, we can conclude that the efficiency of
mana
gement personnel’s work is closely connected to
overall performance. The efficiency of management
personnel’s activities is understood as the ratio of
activity results to total expenditures.
Forming and implementing effective management
activity is a long-term and complex process. Evaluating
the efficiency of production and management involves
its own complexities, where the effectiveness of
management personnel and departments plays a
particularly important role.
Management efficiency can be reflected in various
indicators of both the management object and subject.
These indicators include relative characteristics
composed of quantitative and qualitative aspects. The
effectiveness of the management system is assessed
based on these characteristics and is shaped as a result
of their interaction.
By evaluating efficiency in management activities
—
that is, by assessing the sequence of actions and the
results achieved through necessary means in reaching
set tasks and goals
—
it is possible to determine the
effectiveness of the management process.
When assessing management activity efficiency, the
following factors must be taken into account:
•
The proper development of the evaluation
mechanism;
•
The organizational and economic system for
implementing this mechanism.
Management processes at different stages vary in
quality, and each organizational management system
operates under specific socio-economic conditions. All
concepts of management mechanism efficiency are
interrelated and influence the formation of the
management mechanism itself.
In conclusion, the content of the management process
Labor efficiency of management
personnel
Efficiency of the management
process (including functions,
communications, development, and
implementation of management
decisions)
Efficiency of the management
system (taking into account the
management hierarchy)
Efficiency of the management
mechanism (structural and
functional, financial, production,
marketing, and others)
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is the comprehensive management activity of leaders
and staff, and the evaluation process should be
organized based on the scale of work distribution.
Management activity efficiency is observed through
the effectiveness of the organization’s (management
personnel’s) core activities. In this process, the
methodology for calculating management efficiency
plays a crucial role.
Depending on the objectives, the efficiency calculation
methodology is divided into absolute and relative
efficiency types, with a primary focus on the
importance of absolute efficiency aspects in assessing
management activity efficiency.
In evaluating modern management activities, the
following requirements must be met:
•
Economic efficiency or cost-effectiveness
—
achieving the highest results with the least expenditure
in management;
•
Promptness
—
adhering to the speed of
preparation and decision-making in production
dynamics;
•
Reliability
—
accurately reflecting the real state
of production in the decisions made, as any unreliable
information may mislead employees or lead to
incorrect decisions in the future.
Economic efficiency, promptness, and reliability are key
conditions for the effectiveness of management
activities. In this context, a certain set of indicators
describes the characteristics and aspects of the
evaluated subject or object.
When evaluating the efficiency of management
activities, a set of criteria and indicators is developed
according to the characteristics of any management
system. This set of criteria and indicators should be
descriptive in order to determine the efficiency of
management activities.
The indicators of management activity efficiency can be
classified into the following groups.
Table 2
Groups of Indicators:
Definition
Technical
It evaluates the degree of efficient use of the organization's
technological processes and resources.
Organizational
It indicates the efficiency of the management structure and
decision-making processes.
Social
It measures the working conditions created for the
organization's employees, their social protection, and its
impact.
Economic
It comprises indicators of financial stability, cost efficiency,
and economic results.
Researcher R. Shott, in his scientific study, compared
the main indicators of economic efficiency of
management activities between the private sector and
government organizations. According to him, economic
efficiency indicators for various management levels
have been developed and proposed to be evaluated at
the firm, municipality, regional, and national levels,
covering both micro and macro levels. [12]
However, R. Shott’s proposals may not be equally
applicable
to
all
organizations
because the
development of indicators requires a thorough study of
the region where the organization is located, its socio-
economic conditions, and its capabilities.
Researcher L.A. Isaeva, who studied economic and
social efficiency in the production process, defined that
“a certain achieved level of economic efficiency does
not always mean achieving a corresponding level of
social efficiency, as there can be not only differences
but also contradictions between economic and social
eff
iciency.”
According to American economist D. Haynen,
“efficiency and economy are almost synonyms. Both
terms describe the effectiveness of using resources to
achieve goals. Efficiency is inherently an evaluative
category.” [13]
Expert D. Parmenter provided explanations of modern
efficiency terms such as “Efficiency Indicators,” “Key
Performance
Indicators,”
and
“Key
Efficiency
Indicators.” [14]
Among scholars from Uzbekistan, Sh. Zainitdinov
conducted research in his textbook “Management” on
assessing social and economic efficiency in
management activities and the factors influencing
them.
According to his definition, the assessment of social
efficiency in management primarily pertains to private
sector areas and has a comparative nature. The labor
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
productivity of management employees is influenced
to some extent by improvements in the professional
skills and educational levels of workers, as well as by
enhancements in working conditions.
Improving management and ensuring economic
efficiency is not limited to reducing labor and material
costs in the management process, but also depends on
socio-economic factors such as the effectiveness of
managerial staff, labor activity, a decrease in
dissatisfaction, and the improvement of working
conditions for employees. [15]
Usually, two methods are used to calculate efficiency
indicators in management activities:
Me = Fr / Mc and Me = Pe / Mc
In these formulas:
•
Me
—
management efficiency (effectiveness);
•
Fr
—
final result (organization’s efficiency);
•
Pe
—
result of management staff performance
efficiency;
•
Mc
—
management costs (expenses).
CONCLUSION
Within the scope of this research, the concept of
management efficiency and its theoretical approaches
were analyzed comprehensively. The analysis of
scientific sources shows that management efficiency is
primarily a complex socio-economic process closely
linked with the productivity of managerial staff
activities. The evaluation of efficiency is an important
scientific and practical task carried out through
quantitative and qualitative criteria encompassing
social, economic, organizational, and technical
indicators.
Based on the conducted analysis, it can be concluded
that developing and improving scientifically based
mechanisms for evaluating the management efficiency
of managerial personnel in organizations contributes to
ensuring
transparency,
effectiveness,
and
accountability of management processes.
Therefore, in order to improve the system of evaluating
management efficiency in organizations, it is necessary
to deeply study theoretical foundations and implement
modern scientific approaches into practice. This, in
turn, will contribute to the modernization of the
national management model and the development of
human resource management.
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