Although technology still dominates, human resources and how they are managed is receiving increased attention in the analysis of gaining competitive advantage. Yet, many complex questions remain. This study first examines the theoretical understanding of employee engagement. Then an empirical investigation is made of the role that a wide variety of managers’ (n = 170) psychological state of self‐efficacy plays in the relationship between their employees’ (average of about 16 per manager) measured engagement and a multiple measure (self, subordinates and peers) of the managers’ effectiveness. Results of the statistical analysis indicate that the manager’s self‐efficacy is a partial mediator of the relationship between his or her employees’ engagement and the manager’s rated effectiveness. Overall, these findings suggest that both employee engagement and manager self‐efficacy are important antecedents that together may more positively influence manager effectiveness than either predictor by itself. Implications for effective management development and practice are discussed.
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