Where do the gains come from (2)?

Citation

(2006), "Where do the gains come from (2)?", International Journal of Productivity and Performance Management, Vol. 55 No. 8. https://doi.org/10.1108/ijppm.2006.07955hab.003

Where do the gains come from (2)?

Cutting middle managers might save money but it jeopardises productivity according to a study by McMaster University.

“Middle managers are the front line communicators with employees”, says Rick Hackett, Canada Research Chair in Organizational Behaviour and Human Performance at the DeGroote School of Business at McMaster University. “One-on-one social exchanges between bosses and their workers have a real impact on employee productivity, behaviour and commitment, and when you cut middle-management, often you lose that interaction”.

Hackett’s research suggests that interactions between employers and employees must be reciprocal. For example, if a supervisor entrusts an employee with an important project and takes some risk by making the assignment, the employee is more likely to feel obligated to reflect positively on his supervisor, even after the project has finished. And in return, the employee is more likely to trust that the employer will reward his performance and give him further opportunities.

In his study published in the Academy of Management Journal, Hackett emphasized that rewards are not necessarily monetary. They can be as simple as increased autonomy, access to privileged information or more opportunities to develop.