JULY 20, 2003
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Q&A: Jan P. Oosterveld
Meet a Dutch engineer who describes his company as "too old, too male and too Dutch". This is Jan P. Oosterveld, 59, Member, Group Management Committee & CEO (Asia Pacific), Royal Philips Electronics, a $31.8-billion company going through tough times. His mission is to turn Philips market agile and global in outlook.


Bio-dynamic Tea Estate
Is there a way to rejuvenate tea consumption? Rajah Banerjee, the idiosyncratic owner of the 1,500-acre Makai Bari tea estate, among India's largest, thinks he has the answer to the industry's woes: value-added tea. 'Bio-dynamic' tea, to use his phrase. Here's a look at some of his organic and flavoured tea experiments.

More Net Specials
Business Today,  July 6, 2003
 
 
Caught In The Middle
Middle managers are trapped in managerial no-man's land, between ambitious junior managers and younger-than-young CEOs. P.S: You won't believe how little they earn.

Ever met a happy middle manager? Well, this writer hasn't. At one level, that's strange. People in middle management purportedly carry out the crucial task of serving as the link between the brains of a company (read: senior management), and its hands and feet (read: junior management). And as R. Sankar, the Country Head of hr consulting firm Mercer points out, middle management offers the ideal launch pad for senior management positions. So, what explains the unhappiness?

Numbers could provide a clue. According to a BT-Omam Consultants survey of middle manager salaries across 100 companies in 17 sectors, the typical senior manager earns 172.2 per cent more than what the typical middle manager does. And, average middle manager salaries, circa 2003, are just around 73 per cent higher than what they were in 1997-98, a CAGR of less than 10 per cent a year.

Then, there's the attitude of companies. "Most companies are focused on retaining people at the senior level," says Ashok Sehgal, the Head of hr at Samsung India. Middle managers, he adds, constitute a "replaceable set". Most middle managers reciprocate this sentiment by just not caring about the big picture. Kiriti Sen, the Vice President in charge of hr at Grasim's Textiles division, discovered that when he introduced his managers to the concept of variable pay. Senior managers embraced the idea of performance-linked-variable-pay easily; middle-managers just didn't get it. "Psychologically, middle managers just don't seem to be able to see the link (their performance has) with the organisation's profitability." Adds Azfar Hasib, the hr Manager at Churchill India, a subsidiary of the UK insurance major, "The role of the middle manager has been reduced to that of a facilitator-picking up broader specs from the top and communicating them to junior management, with no perceptible value addition."

LIFE BEYOND
MIDDLE MANAGEMENT

For the ambitious corporate executive the final frontier lies in making it to the 'corner office'. However, the road from middle management to senior leadership roles is a difficult one (and littered with the ruined careers of several middle managers without the requisite stamina). Here are some things that every one hitting the road should pack.

Volunteer for the jobs no one else wants and do more than what is expected of you. This should also help in increasing your visibility internally and externally.

Wear this on your sleeve. Most people who land senior jobs do so because, apart from everything else, they have proved their commitment to the organisation (often, at a personal cost).

Remember this, companies like to reward employees who can see the big picture. Start with the basics: try your hand at understanding the company's vision, mission, and culture before embarking on tougher issues such as its strategy.

Always seek opportunities to learn. As anyone can tell you, this will improve your employability.

Specialise and let the world know your niche.

Find a senior manager who can serve as a mentor and guide you through the treacherous power corridor.

Although, I'd personally recommend the real thing, a dash of confidence. Most successful people are entrepreneurial by nature, and willing to work hard.

Or any other device that helps you spot the Big O before others do. Grab these opportunities, internal and external, before others do and you are sure to be chief executive officer some day.

In effect, the family of middle managers is constituted by star junior managers just passing through on their way to senior management (some actually manage to bypass this level), past-their-prime tree huggers who have probably come to terms with the fact that not everyone can be a senior manager, and the eternal hopefuls who are confident of making the elusive leap, whether in their present companies or elsewhere.

Manish Kumar, a HR manager at ICICI Bank, belongs to the first category. "The bank is growing and when I link this to my individual competency, I have little doubt that I can break into senior management in a short time." That's where, he adds, the future lies, not in the tactical role he performs.

Expectedly, middle manager salaries have stagnated, although the trend isn't visible across sectors, with fast-growth ones such as telecom, it services, insurance, and private banking actually bucking it. "These are nascent industries that are growing rapidly," explains Atul Vohra, a Partner at search firm Heidrick & Struggles, "and there are more opportunities for middle managers to grow if they perform." Still, these sectors, and a few others like auto and steel are, at best, exceptions. Elsewhere, "pay and promotions (in the middle level) have stagnated over the past three-to-four-years," says Shailesh Shah, the CEO of hr consulting firm Watson Wyatt.

Flatter organisations and younger chief executives (some people actually make senior management by their early 30s) haven't helped the cause of middle managers. Today, as Purvi Sheth of executive search firm Shilputsi puts it, middle management is a heterogenous group, "which has had to accommodate all sorts of people from those with six years' experience to those with 13." And with the emergence of a new aggressive generation of junior managers willing and able to understand a company's strategy, middle managers find their very utility under threat.

If things continue in the same vein-and middle management salaries continue to stagnate-companies could do worse than do away with the level altogether. Middles, as must be evident to anyone in today's fitness-conscious world, are horribly out of fashion.

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