Do Managers Matter?

Question 1

Term

Answer 1

Definition

Question 2

Do Managers Matter?

Answer 2

Central question of whether individual managers meaningfully shape organizational performance.

Question 3

New Public Management (NPM)

Answer 3

Reform movement that applied private-sector practices to public organizations.

Question 4

Reform Logic of NPM

Answer 4

Give managers autonomy, accountability, and performance pay to drive efficiency.

Question 5

Reform Hypothesis

Answer 5

If CEOs matter in private firms, public-sector managers should also matter.

Question 6

NHS England Reform Test

Answer 6

Large-scale test of whether public hospital directors impact performance.

Question 7

Director Effects

Answer 7

Statistical measure of how much managers affect organizational outcomes.

Question 8

Key NHS Finding

Answer 8

Directors had minimal impact on hospital performance.

Question 9

Non-Portable Performance

Answer 9

Good performance at one hospital did not transfer to another.

Question 10

Pay-Performance Disconnect

Answer 10

Higher-paid directors did not perform better.

Question 11

Organizational Complexity

Answer 11

Large size and professional autonomy weaken manager control.

Question 12

Professional Autonomy

Answer 12

Doctors control clinical work, limiting managerial authority.

Question 13

Short Tenure Problem

Answer 13

Average 3.7-year tenure limits managers’ ability to create change.

Question 14

Selection vs. Causation

Answer 14

Good performance may result from good matching, not just leadership skill.

Question 15

Limited Talent Pool

Answer 15

NHS promoted internally and lacked private-sector competition.

Question 16

Public vs. Private Pay Gap

Answer 16

Public executives earn far less than private-sector executives.

Question 17

Political Interference

Answer 17

Frequent political intervention distorts manager incentives.

Question 18

Political Goal Chasing

Answer 18

Managers focus on avoiding political scandals instead of improving performance.

Question 19

VA Scandal

Answer 19

Manipulation of wait-time data to meet unrealistic performance targets.

Question 20

Perverse Incentives

Answer 20

Incentives that encourage harmful behavior like data manipulation.

Question 21

Gaming the Metrics

Answer 21

Manipulating performance data to appear successful without real improvement.

Question 22

Wrong Metrics Problem

Answer 22

Managers were judged on goals outside their control.

Question 23

Broken Internal Controls

Answer 23

Lack of audits allowed data manipulation at the VA.

Question 24

Broken Performance Management

Answer 24

Bonuses rewarded everyone regardless of actual performance.

Question 25

NYC Medicaid Case

Answer 25

Successful example of participatory, bottom-up management reform.

Question 26

Bottom-Up Design

Answer 26

Frontline workers designed solutions rather than managers imposing them.

Question 27

Psychological Safety

Answer 27

Environment where employees feel safe sharing ideas without punishment.

Question 28

Theory X

Answer 28

Assumes workers dislike work and must be tightly controlled.

Question 29

Theory Y

Answer 29

Assumes workers are motivated and capable of self-direction.

Question 30

Leadership Paradox

Answer 30

Effective leadership sometimes means stepping back, not controlling.

Question 31

Directive Leadership

Answer 31

Top-down leadership effective in crises and simple technical problems.

Question 32

Participative Leadership

Answer 32

Bottom-up leadership effective for complex operations and morale-building.

Question 33

Hybrid Leadership

Answer 33

Blends directive and participative approaches based on context.

Question 34

Systems Thinking

Answer 34

Understanding how incentives, metrics, and structures shape behavior.

Question 35

Context Over Traits

Answer 35

Manager effectiveness depends more on situation than personality.

Question 36

Systems Shape Behavior

Answer 36

Managers design incentive systems that drive employee behavior.

Question 37

Participation Unlocks Potential

Answer 37

Empowerment outperforms control in many public-sector settings.

Question 38

Heuristics in Management

Answer 38

Managers rely on mental shortcuts when making decisions.

Question 39

Procedural Bias

Answer 39

Preference for following rules even when flexibility is needed.

Question 40

Loss Aversion (Managers)

Answer 40

Managers fear reputational loss more than potential gains.

Question 41

Managerial Identity

Answer 41

Managers internalize organizational roles and values.

Question 42

Manager Emotions

Answer 42

Stress, fear, and frustration influence decision-making.