Every manager is having a m idlife crisis

Every manager is having a m
idlife crisis

Human vulnerabilities exposed by the pandemic could revitalise our working practices

Women at a German Ford production line in 1947. Early management studies focused on factories © Fred Ramage/Keystone Features/Getty

   

June 1, 2020 3:00 am by Gianpiero Petriglieri

The writer is an associate professor of organisational behaviour at Insead

Until the start of this year, the future of work was the main focus of the academics, consultants and executives whose business it is to make profitable predictions. The century of management seemed past. Some lamented the lack of new management theories. Others observed that the bureaucracies of the 20th century, whose existence depended on managers, were giving way to tech platforms that had little use for them. Algorithms were better at coordinating those platforms' loosely affiliated and widely distributed workers. The robots were slowly coming for managers' offices. Only tech-savvy leaders would survive.

Then the virus came, and all that future seemed to arrive at once. The pandemic turned out to be a boon for that new breed of tech leaders and their platforms, turning them from disrupters to protectors of our working lives overnight. Zoom, Skype, Slack and their likes were there to bolster the productivity of people who can work from home, the very knowledge workers whose jobs tech was meant to threaten next.

The new normal does not just look like the old future of work. It looks a lot like its distant past. The digital revolution — a world of work without workplaces and management without managers — owes much to a theory dreamt up by Frederick Taylor, considered by many to be the first management guru, in the early 20th century. Putting forward his principles of "scientific management", Taylor cast managers in his own image, as dispassionate engineers whose duty was to use hard data to improve efficiency and minimise human errors.

Taylor's vision sparked the same sort of opposition that today's techno-utopian disrupters encounter from management pundits. In his case it came from Elton Mayo, a Harvard Business School professor whose work provided the inspiration for the "human relations" movement. Experimenting with conditions at a Western Electric plant outside Chicago, Mayo and his colleagues observed that employees were most productive when they were given enough rest and attention, and were encouraged to cultivate informal relationships.

The distillation of the scholars' tussle became a mantra that survives to this day: managers must be ruthless, nicely. Business school curricula and many corporate models still have that imperative at their core.

There have always been those who argue that management should be a more human, artistic, and political profession. That it should foster wellbeing, civility, equality, and democracy at work. But these concerns have earned, at best, secondary roles in the history of management. The pursuit of efficiency remained its protagonist.

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This mechanical view has drained many organisations of the humanity they needed when things get tough — and it set management up for disruption. It was only a matter of time until actual machines could provide the comforting surveillance that managers did.

No wonder that the pandemic seems to have plunged management into a midlife crisis, the kind of existential strain that many of us experience when a sudden illness reveals our vulnerabilities. The break in our routines, and suddenly salient mortality, force us to ask questions that we can easily ignore in the daily grind of work. What is the purpose of what I do? Whose life is it that I am really living? What must I let go? What can I no longer postpone?

If they are not wasted amid blame and denial, those crises can change our way of life. So while the existential crisis of management was under way before the coronavirus arrived, it has now become impossible to ignore. The pandemic has exposed the limits of managers with a singular concern for productivity. But it has renewed appreciation for those who show equal concern for people's wellbeing.

Ever since the crisis hit, many of us have been moved by managers' gestures of care big and small, be they efforts to avoid lay-offs and keep workers safe, or reassurances that performance assessments would take into account individuals' circumstances. Those concrete gestures have been far more convincing and inspiring than statements about caring for purpose as much as profits.

Building a movement on those sentiments could let us humanise management, at last. We could call it "Human Relations 2.0", although the name doesn't matter. As long as it helps management mature into an enterprise that counters digitally enhanced isolation and polarisation and frees people up to live and work in pluralistic institutions.

Then this existential crisis might bring to life a new future of work. One in which rumours of the demise of management will turn out to have been greatly exaggerated.

Twitter @gpetriglieri

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Covid-19 scars may fade faster than we think


Covid-19 scars may fade faster than we think | Free to read We do learn from bitter experience, of course. But we also have a great talent for forgetting TIM HARFORD Add to myFT Just because shopping is legal again does not mean people will rush out to the shops © Victoria Jones/PA Share on Twitter (opens new window) Share on Facebook (opens new window) Share on LinkedIn (opens new window) Save Tim Harford YESTERDAY 163 Print this page Be the first to know about every new Coronavirus story Get instant email alerts My local cheesemonger, having reinvented itself as a general produce store, has been open throughout lockdown. The proprietor tells me something strange and new has started to happen. Customers he hasn’t seen since March as they diligently shielded themselves from human contact, have finally re-emerged, blinking in the daylight. What’s more, he says, they have no concept of physical distance. While the rest of us have been honing our skills for 15 weeks, these poor souls haven’t got a clue how to behave when in public. But then, do any of us, really? We’re all still working it out. Some people wonder around maskless, sneezing, snogging, shaking hands. Others are paranoid: “Keep two metres away from me! Get out into the road!”, I saw one masked gentleman scream as a perplexed woman jogged in his direction. It’s a reminder that there is more to this pandemic than what governments tell us to do. Each of us has our own feelings about what is safe. Those emotions have shaped the arc of the pandemic. They will also define the path of the recovery. Consider the impact of lockdowns. Common sense suggests they have been decisive in driving the disease into retreat, but they have not been the only factor. Hand-washing, handshake-aversion and working from home began long before legal enforcement. A working paper from the economists Austan Goolsbee and Chad Syverson tries to separate out the effect of mandatory measures from voluntary ones in the US. For example, Illinois imposed restrictions before Wisconsin did. The researchers looked at activity on either side of such borders, using cell-phone data to track journeys to shops and other businesses. They were able to gain insight into how much of shutdown was effectively voluntary. The answer: a surprisingly large proportion. “Total foot traffic fell by more than 60 percentage points,” they write. “Legal restrictions explain only around 7 percentage points of that.” A similar message comes from a comparison of Denmark, which had a firm lockdown, with Sweden, with its notoriously light-touch approach. Aggregate spending dropped 29 per cent in Denmark and 25 per cent in Sweden. That means voluntary measures did much of the damage to the economy — and, one hopes, have delivered much of the public-health benefit too. I wouldn’t put too much weight on the precise numbers, but the basic message is important. People didn’t lock down merely because governments told them to. Now the converse applies: just because shopping is legal again does not mean people will rush out to the shops. In Germany, they did: Germans spent more in May 2020 than they did in May 2019, suggesting that not only were they willing to visit the shops, they wanted to make up for lost time. That is encouraging, but only up to a point. Germany had a good crisis by western standards, with fewer than 10,000 excess deaths, compared with 25,000 in France, nearly 50,000 in Italy and Spain, and more than 65,000 in the UK. The US is currently averaging about a hundred times as many daily new cases as Germany. Perhaps Germans feel safe because they are safe. Not everyone can say that. Once the virus is suppressed, then a sharp recovery is possible. But might this experience leave a lasting mark on our thinking? Perhaps so. The economist Ulrike Malmendier has published several studies suggesting that our early economic experiences can be formative of enduring attitudes. If the stock market is weak when we are young adults, we tend to shy away from investing, permanently. Similarly, the hawkishness or dovishness of Federal Open Market Committee members is shaped by their personal experience of inflation. A new working paper by Prof Malmendier and Leslie Sheng Shen suggests recessions reshape consumer behaviour long after they have passed. The after-effects are wonderfully described as “experience-induced frugality” — that is, people who’ve seen periods of high unemployment save more and accumulate wealth, just in case. Such thrift could lead to more investment, of course, but another recent paper by Julian Kozlowski, Laura Veldkamp, and Venky Venkateswaran argues otherwise. They assert that the psychological scarring is destructive, since a vivid appreciation of catastrophic scenarios will leave people fearful of making bold investments. Why risk anything in a capricious universe? I wonder. We do learn from bitter experience, of course. But we also have a great talent for forgetting. In particular, we forget how bad things feel. The pandemic will long be remembered, but the pain will fade. After Hurricane Katrina, the US National Flood Insurance Program saw a spike in demand. Three years on, demand for flood insurance had fallen back to pre-Katrina levels. My guess is that clever statisticians will be able to detect the psychological aftershocks of the pandemic for decades to come — but that, to a casual gaze, everyday life in 2022 will look a lot like it did in 2018. Scars do not always heal, but they fade.