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The Reason Behind Why Your Manager Gets Paid More Than You

by Rukmani Krishna on  August 28, 2012 at 11:33 PM Lifestyle News   - G J E 4
A new study has found that the average manager is worth 1.75 employees.

The new research also suggests that the average boss motivates and teaches employees skills that last.
 The Reason Behind Why Your Manager Gets Paid More Than You
The Reason Behind Why Your Manager Gets Paid More Than You
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A report by the National Bureau of Economic Research (NBER) set to find out just how important the role of supervisor is.

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By studying data based on the productivity of a technology-based services company, the effects of the average supervisor are estimated and found to make a significant impact.

According to the Smithsonian magazine, the study evaluated about 24,000 workers and 2,000 employees.

For the study, the employees were given a repetitive task assessed and timed by a computer and the employees switched managers about every four months.

They discovered that the role of the boss to motivate, set goals, critique and assess workers actually had a huge impact on the productivity.

The choice of manager is crucial, as the quality of the boss directly effects worker productivity.

"Replacing a boss who is in the lower 10 per cent of boss quality with one who is in the upper 10 per cent of boss quality increases a team's total output by about the same amount as would adding one worker to a nine member team," the Daily Mail quoted the NBER as saying.

"Using a normalization, this implies that the average boss is about 1.75 times as productive as the average worker,' it said.

Secondly, a manager is responsible for teaching skills that last beyond the current role, making the employee more effective and accomplished.

By correctly assigning strong bosses to hard-working employees, they increase the productivity of high quality workers.

"Every new member in a hierarchical organization climbs the hierarchy until he/she reaches his/her level of maximum incompetence," it added.

Source: ANI
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