Effective management implies truthful and satisfactory performance of management activities. A high performing productive management typically perform activities effectively and efficiently. Accordingly, companies and countries can be economically viable when the available human, physical, and financial resources are effectively and efficiently managed to ensure the economic growth and well-being. Growth is most powerful organisational device to compete and to sustain by creating profits and by providing prosperity. Nevertheless, the essential management principles alone, could not provide sufficient support to achieve and sustain the ultimate goal of growth and affluence. Therefore, deep focusing on management effectiveness is needed to achieve higher organisational performance, and thereby better economic growth. Accordingly, this paper analyses the factors triggering the management effectiveness within organisational structure, and outlines the role of effective management on economic growth. The study is focused on several important factors that contribute to building an effective management climate, such as: leadership, motivation, knowledge, and skills
