Middle managers and strategy: Microdynamics of inclusion

Abstract

This paper examines the role of middle management in strategic processes in bureaucratic organizations. There is evidence of extensive dissatisfaction among middle managers, who often perceive that they are excluded from strategic processes. This exclusion is de‐energizing, inefficient, and in the end, expensive. Although an element of exclusion is probably inevitable, the extent to which it occurs varies across organizations. This suggests that both exclusion and its consequences can be alleviated. An application of microsociological theory to this problem focuses attention on discrete communications about strategic generalities between superior and subordinate. This paper argues that middle managers may either be excluded or included in such ‘strategic conversations’, but inclusion does not guarantee satisfaction. When included they may emerge energized or de‐energized around strategic issues, depending on several important factors. Finally, the paper discusses the implications of these dynamics for more macro level processes, in particular, strategy as allocation of resources and strategy as interpretative schema. A set of propositions as to the likelihood of increasing or decreasing feelings of inclusion and motivation, and of sustaining such feelings over time, concludes this discussion.

Tipping Toward Sustainability: Emerging Pathways of Transformation

“…In large, continuously innovating firms, the strategic apex sets strategic direction, but innovation occurs at the front lines, on the shop floor, or in small designated teams. Top management does not so much ''control or direct'' the innovation process, as provide resources and opportunities for exploration and experimentation (Nonaka and Nishiguchi 2001;Westley 1990). There is a key role here for intermediaries, or knowledge brokers, at the middle management level, who are able to question the strategic context to understand why and where a firm wishes to move, frame that for those working on the front lines, identify promising innovations, and sell these to the strategic apex (Nonaka and Takeuchi 1995;Burgelman 1983).…”

Achieving strategic renewal: the multi-level influences of top and middle managers’ boundary-spanning

“…Scholars have shown that MM who experience role conflict can suffer from ''reluctance'' (Goffee and Scase 1992), ''disillusionment'' and ''disaffection'' (Johnson and Frohman 1989), or ''paralysis'' (Westley 1990). Indeed, Dess et al (2003) argue that managers caught in role conflict are unlikely to display entrepreneurial behavior successfully, which will disrupt the information exchange needed for CE.…”

Middle managers' knowledge of strategy: antecedents, cognitive accuracy and self-awareness

“…A third, and the most related body of work to our research, explores the cognitive processes of middle managers' involvement in strategy (e.g., Balogun and Johnson, 2004;Dutton et al, 1997;Guth and MacMillan, 1986;Huy et al, 2014;Mangaliso, 1995;Ren and Guo, 2011;Westley, 1990). For example, Balogun and Johnson's (2004), and Rouleau and Balogun's (2011) studies reveal the pivotal role of middle managers in sense-making during organisational change.…”

“…This sentiment is echoed in numerous studies indicating that participation in strategic decision-making is likely to increase knowledge and commitment to strategic decisions and improve execution (e.g., Raes et al, 2011;Raman, 2009;Suominen and Mantere, 2010;Westley, 1990;Floyd, 1989, 1990). It is a concept that also appears in strategic involvement, commitment and goal setting research (e.g., Lawler, 1999;Locke and Latham, 1990).…”

“…As organisational structures become larger, more complex and global in scope, the role of middle managers in strategy diffusion throughout the organisation becomes ever more important (Dutton et al, 1997;Huy et al, 2014;Klagge, 1996;Miles et al, 2010;Mollick, 2012;Westley, 1990). Instead of being viewed as receivers of upper echelon directives, middle managers roles are redefined as essential to strategic change success.…”