There is a well-established correlation between management practices and productivity. According to experts quoted by The Economist, the UK’s productivity gap with its leading competitors could in great part be due to differences in the quality of management.
Analysis by the ONS found that management practices played a part in variations in productivity, and that people management practices – including performance reviews, managing underperformance, training and promotion – were the practices most connected to productivity. CIPD research also highlights a link between the quality of people management and employee engagement, performance, health and wellbeing.
This paper examines how effective current policies are in raising management capability, especially in small and medium-sized enterprises (SMEs) and how enhanced UK Government action could improve this.