What’s interesting is that people often treat middle managers as the dispensable layer of the organization. This may be a contracting issue. Those at the very top are incentivized with high compensation tied to stock options. Those at the very bottom have simpler tasks that are spelled out in legally enforceable hourly contracts. Not so for those in the middle, who are responsible for implementing the strategy, managing up, laterally and down to make it happen, and they do it all in the absence of extrinsic rewards and incentives, like for those at the top, and without it being specified in formal contracts, like for those at the bottom. They work for meaning, without an obvious contracting relationship. So, having high purpose-clarity among this cohort makes them more valuable than you think, especially if you realize they are driving firm performance.
Author: Claudine Gartenberg
Source: IESE Insight
Subjects: Human Resources, Motivation, Organizational Behavior
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