WHY MANAGEMENT HAS GOTTEN WORSE AND THE LEADERSHIP ISSUES BEHIND THAT

Abstract

AbstractThe author, Professor of Management at The Wharton School and Director of Wharton’s Center for Human Resources, discusses the background of what in his view is the worsening of management of employees in today’s organizations. He cites considerable research and historical background to this effect, while also relating the leadership issues that have led to this situation. For instance: “Remarkably, 29% of those who are promoted now leave within a month because promotions often come with no pay increase and with more work and responsibility. A third of US managers now report that they received no management training of any kind either before becoming a manager or after.” He also cites the power and “influence of the investor world, which relies on financial accounting to judge company performance, and the fact that financial accounting simply cannot address human capital.” In looking for ways to improve these systemic issues, he believes that “the way forward starts with Boards of Directors who have the long‐run success of their companies in mind and who guide the top executives. It is important that they help executives avoid blind spots about people issues that are common in a ‘finance‐first’ approach to management.”