The Management of Knowledge Work
We explore the role of management in knowledge-intensive work. Our theory posits that the function of the manager mainly consists of (i) ex ante coordination in terms of specifying and delegating tasks to her team and (ii) ex post coordination of the team’s execution of those tasks as unexpected events unfold. Consistent with the predictions generated from this view, and using microlevel data from architectural design teams, we find that the manager’s involvement in a project is high in the beginning but decreases as the project progresses. However, when the manager has better ex ante information, she decreases her involvement ex ante. We also find a higher workload of the manager not only strains her involvement but also the team’s time spent on the project. Our analysis on workload implies that the manager and the team synchronize their involvement under shifting workloads. Finally, both over- and under- involvement by the manager from our predicted involvement correlates with higher team hours and hence lower profitability. Our study broadly highlights the importance of managerial coordination and rational inattention in organizing knowledge workers in modern economies.
Authors: Wouter Dessein (Columbia University), Desmond Lo (Santa Clara University), Ruo Shangguan (Jinan University), and Hideo Owan (Waseda University)