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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
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 The Reason Behind Why Your Manager Gets Paid More Than You

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.

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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.

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.
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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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