DREM releases, for the first time, the results of the Management Practices Survey
The Regional Directorate of Statistics of Madeira (DREM) is releasing today the key findings of the Management Practices Survey (MPS) for the reference year 2022.
This qualitative survey is part of a series of statistical operations aimed at providing information about factors that, while not explicitly having a monetary translation in companies' accounting, influence their competitiveness in a context of increasing integration into the global economy.
The MPS targeted one of the top management members, preferably the top manager, with a thorough understanding of the company's activities, aiming to understand their perception regarding the management practices of the companies they lead.
The main results now released were based solely on the set of 749 valid responses obtained from companies headquartered in the Region and were segmented by four stratification variables: Company Age, Membership in an Economic Group, Company Size, and Economic Activity. The MPS had already been conducted in the Autonomous Region of Madeira (ARM) for the reference year 2016, but with a very small sample size that did not allow for regional results to be determined. For this 2022 edition, DREM requested Statistics Portugal (INE) an increase of the sample for the ARM, which allowed for data to be obtained for the Autonomous Region, making this type of characterisation of companies headquartered in ARM available for the first time.
From the analysis of the MPS results, the following conclusions are highlighted:
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- 62.0% of the companies were not part of an economic group, and 43.6% were 20 years old or older;
- 39.7% of the persons in management roles were women;
- 51.4% of the companies were owned by founders or relatives of founders;
- The majority of management decisions were made solely within the company;
- 91.3% of large-sized companies had top managers with a bachelor's or higher academic degree;
- The top manager carried out their role exclusively in 71.4% of the companies;
- For at least 2/3 of the companies, the best description of the top manager was assuming responsibilities and making decisions;
- In about half of the companies, the top manager adopted a democratic and team-centred leadership style;
- In 58% of the companies, the timeline of defined objectives resulted from a combination of short and long-term;
- 67.8% of the companies considered the established objectives for the company moderately ambitious;
- 60.9% of large-sized companies monitored between 6 and 20 key performance indicators;
- Persons in top management roles evaluated key performance indicators on a monthly basis in 40.1% of the companies;
- Encouraging worker autonomy was the primary human resources management practice, chosen by 38.9% of the companies;
- For 60.9% of large-sized companies, hiring specialists was the main management practice;
- 31.4% of the companies awarded performance bonuses to their employees;
- Persons’ employee performance was the main criterion for awarding performance bonuses;
- 33.1% of the companies mentioned that persons in management roles were promoted solely based on performance and capabilities.
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