Excessive management is costing the US economy $3 trillion annually. This figure is based on the cost of managers who aren’t actively adding value to the economy, along with the opportunity cost of entrepreneurial activities they could otherwise be engaged in. Despite technological advancements, the number of managers has grown rather than diminished, with the proportion of managers and supervisors in the workforce increasing from 17.6% in 1983 to 17.7% in 2014.
This trend of managerial intensification is not necessarily beneficial. It can lead to over-supervision, which can stifle employee creativity and productivity. Additionally, it can create a culture of compliance rather than innovation.
A shift towards a more entrepreneurial culture could be beneficial. For instance, Google has adopted a strategy where engineers are allowed 20% of their time to work on personal projects, fostering innovation and engagement.
The US economy could benefit from a reduction in managerial roles and a shift towards more entrepreneurial activities. This could potentially unlock trillions of dollars in economic value, leading to increased productivity and innovation.
Go to source article: https://hbr.org/2016/09/excess-management-is-costing-the-us-3-trillion-per-year