Are chief executives and managers overrated?

The cult of the CEO appears to be losing touch with reality

In today’s corporate culture, many are arguing that the cult of the CEO has reached absurd proportions, with their portraits gracing business magazine covers and their words of wisdom being quoted throughout the media world. Some bosses believe the hype, and an Economist Intelligence Unit survey found that many of them are convinced that their words and actions are crucial in motivating employees. However, another recent study found that chief executives account for just 5% of the performance of a typical Fortune 500 company.
Middle managers, meanwhile, are finding that their days may be numbered. Large companies have cut down on bureaucracy by dismissing hundreds of thousands of them since the financial crisis began. But a certain number are essential in acting as a filter for the company – a bridge between lower ranking workers and the strategy and wisdom of the board.
The Economist

x

Check Also

Emirates, Ryanair, Flybe, Austrian, Virgin, British Airways, easyjet, American Airlines, airlines, load factor, PLF, fullest, planes, aircraft, environment, business, profit

Airlines with best and worst load factor

Flying planes full makes airlines far more profitable, and it’s better for the environment.

Svart, hotel, Svartisen, environment, energy positive, carbon neutral, glacier, Bodo, Norway, stay, circular, Snøhetta, design, architecture

World’s first energy-positive Arctic Hotel

A Nordic firm of architects has designed a future hotel that will produce more energy than it uses.

Delta, airlines, United, American Airlines, pay, pilots, bonus, wage, profit share, usa, captains

Airline gives employees $1.1bn

Delta Airlines is being generous, and people working for its competitors are not too happy.

Avinor, Oslo, airport, Gardermoen, ski, equipment, baggage, rules, dates, busiest, winter holiday, fly

Busiest winter dates to fly from Oslo

Hundreds of thousands of passengers will be using Oslo Gardermoen in the next couple of weeks.

Deutsche Bahn, DB, delay, storm, compensation, passengers, stranded, climate change, Spiegel, trees, branches

Deutsche Bahn “twists” climate change

German media accuse rail operator of exploiting climate change to avoid blame for delays.

Hoseasons, sale, Wyndham, rentals, holiday, vacation, business, M&A, hotel, Europe, private equity, James Villa Holidays, cottages.com, Landal GreenParks, Novasol

Wyndham sells European business

The US hospitality giant sells its European business to a private equity firm for $1.3 billion.