Managers proven worthy by change
What is meant by leadership effectiveness is that senior management displays integrity and honesty, that a high level of trust exists between employers and employees and that bosses are skilled in managing change, explains Gabriela Domicelj, a principal consultant with Watson Wyatt.
Managers should have skills in attracting, retaining and developing talent. They should also be able to motivate their workforce, make decisions in a timely fashion, Ms Domicelj said.
Perhaps, most importantly, managers should behave consistently with the company's value system, she said. If they could do all these and provide a role model for their workforce, they would score highly.
The Watson Wyatt survey showed that, by industry, the construction sector had been the most negative about leadership effectiveness and manufacturing the most positive.
The results also showed that finance and financial services companies tended to have more sophisticated management and more mature human-resources processes.
Of the 36 companies surveyed, 10 were from the finance sector while the rest included wholesale and retail trade, automotive, engineering, manufacturing and construction firms.
About 58 per cent of the participants were local firms, and the rest foreign.
Almost 3,700 people responded to questions in 10 categories: work environment, job satisfaction, communication, teamwork, workplace innovation, performance management, supervision, employee development and training, leadership effectiveness, compensation and benefits.