It will be chaired by CMI president Peter Ayliffe and All-Party Parliamentary Group on Management chairman Barry Sheerman.
CMI research published earlier this year showed 43% of UK managers are rated as 'ineffective' or 'highly ineffective'.
The commission will focus on how line management can be transformed to drive growth across UK businesses.
It also aims to highlight instances where employers have successfully used innovative approaches to management that have helped create growth.
Sheerman said: "Poor management affects every aspect of our lives and ultimately leads to our country underperforming. The hard truth is too many businesses fail because of bad management.
"This has to change because the quality of management and leadership will be absolutely key to how well our businesses do in creating jobs and wealth in the years ahead."
