Expectations and accountability in managerial work

Abstract

Based on a direct observation study of eight CEOs for large corporations, this paper examines how control is exercised in the era of financial transparency. In particular, the link between corporate governance and managerial work is investigated. The CEOs felt accountable for the company performance to exchange market actors. Inside their own companies the CEOs governed through setting and maintaining expectations rather then relying on centralised decision-making and giving instructions. Subordinate managers were given discretion, but their performance was closely watched and they had to fulfil expectations. This resulted in self-sacrificing work in the management cadre but also in conformity and non-constructive communication. In the end of the paper, the effects of managing by expectations are discussed with regard to issues about governance ethics, organizational learning and work balance.