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'Fgn MNCs better than Indian peers in management capability'

Press Trust of India  |  New Delhi 

Foreign multinational companies have outperformed their Indian peers in an index mapping management capabilities, owing to their technological edge and optimum utilisation of resources, a report says.

"With an overall MCI score of 80.2 per cent this year, foreign multinationals continue to receive the highest score. The reason for global companies performing at such a level can be attributed to the increase in economic structure investments, reduction in technological gap and optimum utilisation of resources," the KPMG-All Management Association report said.

The Management Capability Index (MCI) 2016 noted that foreign multinationals surpassed their Indian counterparts in all dimensions.

The MCI is a measure to help companies guage the effectiveness and growth of their business performance by benchmarking their management practices against competitors and similar organisations.

Business performance, organisational capability and certain leadership competencies are some of the key indicators of management capability.

The index observed that the lack of formal mechanisms to identify capable leaders and build structured talent processes resulted in a dip in the overall MCI score for educational institutions (68 per cent) and government establishments (65.9 per cent).

Banking and financial services, retail and consumer markets take the lead with an overall MCI score of 82.6 per cent and 81.4 per cent respectively, owing to their strength in innovation of services and products and organisational results and overall performance.

The relatively lower MCI scores observed in education or academia and manufacturing industry (70.8 and 70.5 per cent respectively) could be attributed to the need to benchmark their practices with key competitors in the market.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, October 18 2016. 21:42 IST