Paul Osterman

Middle management" is a term associated with relentless downsizing, corporate drudgery, and career dead-ends. Bashed by management gurus, dismissed by social scientists, and painted as victims by the media, middle managers seem permanently relegated to the sidelines of corporate power. But is this popular picture accurate? Are middle managers really no longer valued by today's performance-driven organizations? The truth is surprising. MIT management scholar Paul Osterman has analyzed over thirty years' worth of employment data, interviewed a wide sample of managers, and uncovered a very different picture of middle managers today. Not only have their numbers increased dramatically, but middle managers are wealthier, more productive, more autonomous--and they gain real pleasure from their day-to-day work. But there's another side to the story: while managers have maintained their commitment to their tasks and to their colleagues, they are increasingly cynical and distant from their organizations. They are confused about their future and how to manage their careers. This comes at a time when the value of middle management is much greater than ever before. Organizations must rethink their understanding of this vital workforce segment--now. Understand the issues for yourself with The Truth About Middle Managers' refreshing and counter-intuitive look at what's really going on.

We live in an age of economic paradox. The dynamism of America's economy is astounding--the country's industries are the most productive in the world and spin off new products and ideas at a bewildering pace. Yet Americans feel deeply uneasy about their economic future. The reason, Paul Osterman explains, is that our recent prosperity is built on the ruins of the once reassuring postwar labor market. Workers can no longer expect stable, full-time jobs and steadily rising incomes. Instead, they face stagnant wages, layoffs, rising inequality, and the increased likelihood of merely temporary work. In Securing Prosperity, Osterman explains in clear, accessible terms why these changes have occurred and lays out an innovative plan for new economic institutions that promises a more secure future. Osterman begins by sketching the rise and fall of the postwar labor market, showing that firms have been the driving force behind recent change. He draws on original surveys of nearly 1,000 corporations to demonstrate that firms have reorganized and downsized not just for the obvious reasons--technological advances and shifts in capital markets--but also to take advantage of new, team-oriented ways of working. We can't turn the clock back, Osterman writes, since that would strip firms of the ability to compete. But he also argues that we should not simply give ourselves up to the mercies of the market. Osterman argues that new policies must engage on two fronts: addressing both higher rates of mobility in the labor market and a major shift in the balance of power against employees. To deal with greater mobility, Osterman argues for portable benefits, a stronger Unemployment Insurance system, and new labor market intermediaries to help workers navigate the labor market. To redress the imbalance of power, Osterman assesses the possibilities of reforming corporate governance but concludes the best approach is to promote "countervailing power" through innovative unions and creative strategies for organizing employee voice in communities. Osterman gives life to these arguments with numerous examples of promising institutional experiments.

This book illuminates what is really happening in the American workplace. The contributors explain how the widespread restructuring of American firms--usually resulting in a reduction of the workforce to cut costs--has had a profound impact on the lives of workers. The book explains how the new relationship requires high skill levels, but does not provide training for them. Workers themselves now must take charge of their personal development instead of relying on their employers. Their alienation from their firms is compounded by the large disparity between the pay of top managers and that of workers. The future is uncertain, but the authors argue that the traditional relationship between employer and employees will continue to erode.