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When Managers Strike Out

Discusses about the effects of firing managers after a losing season in an organization. Comparisons between managerial turnover and team performance in 1980 and 1993; Causes of poor team performance.

In major league baseball, too many strikes often mean the team's manager is out—of a job. But firing the manager after a losing season may be an error, according to a new study. Like corporate CEOs, managers are often convenient scapegoats for larger problems within an organization.

Comparing managerial turnover and team performance between 1980 and 1993, researchers at the State University of New York, Albany, found that acquiring a new manager had no bearing on a team's subsequent performance. "This really contradicts what you would expect from major league baseball," says head researcher Steven J. Lorenzet, Ph.D. "They're constantly firing these guys." Lorenzet believes that a team's poor performance is more likely due to players' ability and motivation, player-manager relationships, and the team's market and payroll size.

Similarly, in the corporate world--where as many as 16 percent of CEOs are replaced each year—axing the boss won't necessarily improve business. "When you replace the leader but the system is faulty," warns Lorenzet, "the new leader is just going to experience the same problems—and the company has usually lost a great deal of money in the process."

PHOTO (COLOR): When managers strike out