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Organizational Characteristics of Middle Managers’ Deterioration as Sources of Organizational Decline
Abstract
This chapter explores the mechanism of how structural and behavioral organizational characteristics lead to organizational deterioration as a source of organizational decline. First, using an original construct of organizational deterioration named “organizational deadweight” that is defined as ineffectual managerial load at the middle management level, the authors explore the relationships between the organizational characteristics and organizational deadweight. Data was collected through a questionnaire survey in 2006 involving more than 942 respondents from 128 business units of 16 large Japanese firms. The results suggest that reference to formal strategic planning, participation in the planning process, and vertical communication improve deterioration, whereas organizational size and layered hierarchical structure aggravate it. Finally, the authors discuss the roles of vertical communication and formal planning to safeguard against deterioration.
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