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The Creation Of A New Class

In the context of complex decisions with uncertain outcomes and no obvious right answer, the managerial mind inevitably longs for some handrails to grasp amid the smoke and flames. Strategic planning offers that consolation— or illusion— of a sure path to the future – Stewart, Matthew

In “The Management Myth“, Matthew Stewart researches how the business of “Business Strategy” got started and how it evolved over the decades. He (dis)credits Igor Ansoff with starting the phantom fad founded on “nonfalsifiable tautologies, generic reminders, and pompous maxims“. Mr. Stewart also credits mainstream strategy guru Michael Porter with growing the beast in the nineties into the mega-business it is today.

Perhaps the most interesting outcome from the rise of the business of strategy was the stratification of “management” into two classes, top management and middle management:

Top management takes responsibility for deciding on the mix of businesses a corporation ought to pursue and for judging the performance of business unit managers. Middle management is said to be responsible for the execution of activities within specific lines of business. This division within management has created a new and problematic social reality. In earlier times, there was one management and there was one labor, and telling the two apart was a fairly simple matter of looking at the clothes they wore. The rise of middle management has resulted in the emergence of a large group of individuals who technically count as managers and sartorially look the part but nonetheless live very far down the elevator shaft from the people who actually have power  – Stewart, Matthew

I always wondered how the delineation between “top” and “middle” management came about. Now I know why.

top and middle

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