Do Managers Matter? Manager Effects on Organization Performance

Abstract

In this study, we examine how pre‐managerial experience and performance relates to managerial success. Some prior research has documented that managers contribute to organization performance, but the link between specific manager characteristics and performance has been dubious because data about managers' prior work history are typically quite limited. We overcome this limitation by examining our research question in the context of Major League Baseball, where data on pre‐managerial work history are available for a large subset of managers. This allows us to focus on two questions that have not been adequately addressed in prior studies. First, does success prior to becoming a manager translate into success as a manager? Second, what is the relative importance of measurable versus unobservable manager characteristics on performance? Copyright © 2015 John Wiley & Sons, Ltd.