Do Middle-Level Managers Have a Role in Strategy Formulation and Implementation? Insights into an Indian Public and Private Sector Organization

Purpose: As the Indian economy struggles to recover, the corporate balance sheets have become vulnerable. The challenge before every Indian organization, facing threat from competition, global economic slump, and demand-supply mismatch, is to sustain and take strategic decisions that stop further downward revision of growth forecasts. The key to managing in recovering markets is to get more actors involved in the formulation and implementation of strategic decisions. The structural position of middle-level managers in organizations helps them to be effective in various strategic roles. The purpose of this paper is to explore how middle-level managers contribute to the formulation and implementation of strategic decisions that impact organizational performance. Quest is to find out if the roles differ or are similar in a private and a public sector organization. Design/Methodology/Approach: Discussions with around 12 middle-level managers in an Indian Power Solution Company (private sector organization) and around 15 middle-level managers in an Indian Power Transmission Company (public sector organization) helped to present a narration of various roles of middle-level managers and draw a comparison. Findings: Although most of the middle-level managers do not take corporate strategy decisions, in their various roles, they are in a position to influence many decisions. The study brings out the relative importance of the various roles. Research Limitations/Implications: It being a qualitative study is based on two case studies, one of an Indian private sector organization and the other of an Indian public sector organization. It can be extended to quantitatively test the relationship between different roles and organizational performance. Practical Implications: The findings support the contribution of middle-level managers in formulation and implementation of strategic decisions. It provides cue to practitioners to leverage the entrepreneurial spirit and mindset of middle-level managers, a spirit that enables organizations to wade through difficult times. Originality/Value: The study fills a gap in literature by exploring the role of middle-level managers in an Indian public sector organization and by doing a comparative analysis of the roles in an Indian public and private sector organization.