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The manager effect: building better managers to build better workplaces

Employees experience an organisation through everyday interactions with their managers. That makes manager capability a core HR priority, not simply a leadership-development topic.

By Arun SehrawatPublished 5 min read

Organisations spend significant time defining values, designing policies and communicating strategy. Employees, however, often judge the workplace through something much more immediate: the manager they work with every day. How priorities are explained, how mistakes are handled, whether good work is noticed and whether concerns can be raised all shape the employee experience.

A capable manager turns organisational intent into daily practice. A manager who is unclear, inconsistent or unsupported can unintentionally undermine even well-designed HR programmes. That is why manager effectiveness deserves attention as a business issue, not a one-off training intervention.

Why the manager role has become harder

Managers are expected to deliver results, coach employees, manage change, handle conflict, maintain standards and complete administrative processes, often while managing larger teams, shifting priorities and limited time. Promoting a strong individual contributor into a people-management role does not automatically prepare that person for these responsibilities.

A 2026 report by Gallup and the Institute of Directors (India) highlights the pressure on managers in Indian workplaces: 30% of Indian managers were engaged in 2025, down from 39% in 2024, and only 23% of Indian employees were engaged in 2025. These findings do not mean every organisation has the same experience, but they show why businesses should look closely at manager capacity, support and the conditions in which teams work.

Organisations should be careful not to treat every people problem as a manager attitude problem. Workload, unclear processes, insufficient decision rights and conflicting targets can limit even a conscientious manager’s effectiveness.

Select for the role, not only for past performance

High individual performance is valuable, but people management needs a different combination of skills. Managers need to set expectations, listen, coach, make decisions, handle disagreement and build trust. Promotion decisions should consider these capabilities and the person’s willingness to lead others, not just technical expertise or tenure.

Before a promotion, organisations can use structured discussions, examples of how the employee has supported colleagues, feedback from cross-functional work and realistic scenarios involving conflict or performance challenges. None of these is a perfect predictor, but together they are a better basis for the decision than assuming the best individual contributor will become the best manager.

Build a practical manager-development system

Manager development should be connected to the situations managers actually face. Core learning can include setting goals, giving feedback, conducting performance conversations, addressing underperformance, managing workload, responding to concerns and supporting employee development.

Training is more likely to change behaviour when it is reinforced at work. Managers need opportunities to practise conversations, receive coaching, learn from peers and revisit skills after trying them. HR can provide toolkits and guidance, but senior leaders must also model the behaviours they expect.

A simple manager playbook can set common expectations without scripting every interaction. It may include a regular one-to-one rhythm, guidance on documenting decisions, clear escalation routes and a set of questions for discussing performance and development.

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Give managers the conditions to succeed

Capability alone is not enough. Organisations should review how much time managers spend on low-value approvals, repetitive reporting and processes that could be simplified. They should also clarify which decisions managers can take, which need consultation and which must be escalated.

Span of control should be considered in context. There is no universal team size that guarantees success; complexity, employee experience, work patterns and administrative burden all matter. When managers have too many direct reports to coach effectively, organisations may need to redesign responsibilities, strengthen team support or remove unnecessary work.

Managers also need support for their own wellbeing and development. A system that asks managers to care for everyone else but gives them no space to raise concerns is likely to produce fatigue rather than consistent leadership.

Measure management by the experience it creates

Manager effectiveness should not be judged only by delivery targets. Organisations can also look at clarity of goals, quality of feedback, team development, fairness, regrettable attrition and employee feedback. These indicators need thoughtful interpretation rather than simplistic league tables; teams work in different contexts, and a manager cannot control every outcome.

The more useful question is whether managers have the skills, capacity and organisational support to help people perform. Where gaps appear, the answer may be coaching, role clarity, process changes or a different management structure, not just another workshop.

Frequently asked questions

What is manager effectiveness?

Manager effectiveness is a manager’s ability to set clear expectations, support and develop people, make fair decisions and deliver results through the team, given the time and authority the organisation provides.

Why do good individual performers sometimes struggle as managers?

Because the role changes. Success shifts from doing the work well to helping others do it well, which calls for coaching, delegation and difficult conversations that the previous role may never have required.

How can an organisation improve its managers quickly?

Start with the basics: a regular one-to-one rhythm, clear decision rights, practical guidance for performance conversations and less low-value administration. These changes often help more than a single training programme.

Make management a supported profession

Managers are not simply a layer between leadership and employees. They translate priorities into work, address friction and help teams grow. Organisations that select managers carefully, develop them continuously and remove avoidable barriers give their HR strategies a far better chance of working in practice.

Better workplaces are built one everyday interaction at a time. Supporting the people responsible for those interactions is a practical investment in culture, accountability and sustained performance.

Source: Gallup and Institute of Directors (India), Rebuilding Indian Workplaces for the Future (2026).

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