Lesson eLearning

An organization evaluates the effectiveness of its three managers using the following weighted score: Planning (30%), Organising (25%), Staffing (20%), Directing (15%), Controlling (10%). Manager A scores 80, 70, 75, 85, 90 respectively; Manager B scores 70, 80, 65, 80, 85; Manager C scores 85, 75, 80, 70, 80. Compute the overall effectiveness percentage for each manager and identify the highest.

medium 3 marks Class 12 · Business Studies · Nature and Significance of Management
Answer
Manager A = 78.25%, Manager B = 74.5%, Manager C = 78.75%; Manager C has the highest effectiveness.

The correct answer is Manager A = 78.25%, Manager B = 74.5%, Manager C = 78.75%; Manager C has the highest effectiveness. — State the final percentages and the manager with the highest score.

Step-by-step solution

  1. Write the weighted average formula: Overall % = Σ(score × weight)/100.
  2. Convert each weight to a decimal by dividing by 100 (e.g., 30% = 0.30).
  3. For Manager A: 0.30×80 = 24, 0.25×70 = 17.5, 0.20×75 = 15, 0.15×85 = 12.75, 0.10×90 = 9. Add them → 78.25%.
  4. For Manager B: 0.30×70 = 21, 0.25×80 = 20, 0.20×65 = 13, 0.15×80 = 12, 0.10×85 = 8.5. Add → 74.5%.
  5. For Manager C: 0.30×85 = 25.5, 0.25×75 = 18.75, 0.20×80 = 16, 0.15×70 = 10.5, 0.10×80 = 8. Add → 78.75%.
  6. Compare the three overall percentages; the largest is 78.75% belonging to Manager C.
  7. State the final percentages and the manager with the highest score.
Common mistake: Using the weights as whole numbers instead of percentages, leading to totals above 100

Concept tested: Evaluating managerial effectiveness

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