Author: Jurgen Appelo

The evolution of AI could have significant consequences for the middle management layers of organizations.

Historically, middle managers have been the backbone of organizational alignment, coordination, and performance evaluation. However, the expected surge in AI technologies might be shrinking the importance of these roles. As AI becomes more sophisticated, tasks that were once the domain of middle managers will be easily delegated and automated, indicating a shift from static matrix structures to more fluid network structures.

First, AI-powered tools enable enhanced communication and collaboration among teams. They offer real-time translation, sentiment analysis, and effective coordination, essential for the cohesiveness of diverse and geographically dispersed teams. Such improved communication is critical in fostering an inclusive and innovative organizational culture. You don’t need middle managers to improve team collaboration.

Secondly, the emergence of AI unlocks new possibilities for innovative business models, revenue streams, and transformative services, acted upon directly by experimental teams. Embracing innovation is crucial for organizations aspiring to stay ahead in a rapidly shifting business landscape. But you don’t need middle managers for iterative experimentation, either.

Thirdly, administrating backlogs, prioritizing objectives, orchestrating meetings, evaluating team performance, and even contracting between business units are activities that many companies will happily offload onto automated systems. In fact, some of the most innovative companies, such as Tesla and Haier, have been doing just that. You don’t need middle managers for administrative work, either.

“[Chinese companies] are reinventing the role of management through an approach we call “digitally enhanced directed autonomy,” or DEDA. DEDA uses digital platforms to give frontline employees direct access to shared corporate resources and capabilities, making it possible for them to organize themselves around specific business opportunities without managerial intervention.”

— “How Chinese Companies Are Reinventing Management”, Mark J. Greeven, et al.

Of course, most managers don’t need to fear the loss of their jobs any time soon.

Today, AI lacks intrinsic desires, motivations, ambitions, and goals. It does not harbor aspirations or the capacity for self-improvement, self-reflection, or pursuing individual objectives. These remain inherently human endeavors, emphasizing the irreplaceable value of human insight, emotion, and intuition in managerial functions.

Also, AI’s ability to process and analyze vast troves of data enables managers to make more informed, insightful, and timely decisions. Applying AI in data analysis, trend prediction, and risk assessment empowers managers to enhance strategic planning. The availability of data-driven insights makes managerial strategy more efficient and effective.

Finally, AI is also becoming an invaluable asset in talent management. It revolutionizes recruitment processes, skills assessment, and performance management. By optimizing these aspects, managers can curate and develop more harmonious and high-performing teams. The ability of middle managers to align talent with organizational goals is fundamental in achieving a competitive advantage.

In conclusion, AI technologies are expected to reshape the role of middle managers, transitioning them from administrative coordinators to strategic visionaries. Some will lose their jobs; the rest will have to innovate. As AI systems evolve, the middle management role will continue to change, necessitating continuous learning, adaptability, and a renewed focus on human-centric leadership skills.

Wanna learn more? Check out Bets and Objectives, Collaboration Moments, Decision Methods, Delegation Levels, Goal-Setting Aspects, Human Drives, Meaning and Purpose, Role Attributes, Strategic Dimensions