Senior managers in high performing businesses are more satisfied with the performance of line managers than low performing contemporaries, research shows.

Some 80 per cent of line managers in successful businesses are deemed to be effective by higher powers, while only 39 per cent of those in underperforming companies are viewed in the same light, according to a survey compiled by the Chartered Management Institute (CMI) and Penna.

The report, which draws on findings from 4,500 managers, including 300 CEOs and 550 HR managers, shows that, overall, 43 per cent of managers consider line managers to be ineffective.

Produced with Henley Business School, the survey also shows that management and leadership development activities can lead to increases of up to 32 per cent in people performance and 23 per cent in overall organisational performance.

Christopher Kinsella, acting chief executive for CMI, comments, ‘This report contains good and bad news for UK managers. The bad news is that a culture of bad management continues to damage UK plc.’

He adds, ‘But the good news is that those organisations who have got things right stand a much greater chance of being a high performing organisation. What’s more, it’s within an organisation’s own power to make that change – by investing in management and leadership development wisely.’

The research finds that ‘too few’ employers are doing the right things to secure the returns on investment in management and leadership with the types of training being offered found to be not rated by managers as effective. Examples of well rated training includes accredited learning and qualifications such as MBAs.

Gary Browning, chief executive of Penna, says the research shows that having an effective manager means employees get better development and feel more positive about their ability to manage their own careers.