Continuing economic uncertainty and job losses create an uncertain labour market. But there is another significant and regularly unconsidered element, which is helping to cause additional concerns.

There is an often repeated belief that middle managers feel more nervous than most workers as rumours of redundancies surface in a company. Right or wrong, it is a perception that persists and research suggests it is unlikely to diminish.

London Business School academic Linda Gratton, for example, proclaims the death of middle management in her latest book The Shift, suggesting we are in an age where big companies can shed executives easily as they are viewed as a dispensable layer that is simply responsible for shuffling paper (see further reading, below).

In such an environment, no manager is going to take steps that could jeopardise their status. And technology – with its focus on increased automation – is sometimes viewed by under pressure finance and IT executives as a significant threat. But is that reasonable?

Through the downturn, companies have continued to increase efficiency with more technology and fewer workers. Executives operating in such conditions can be concerned that the implementation of new IT systems will raise questions about past inefficiencies with the board likely to question why time-saving technologies were not adopted earlier.

The combined result of this confluence of circumstances is a type of management fear that could have very real and very negative effects on your business. Job protectionism is genuine and IT and finance managers are likely to do everything they can in the current economic climate to look after their own position and perhaps also the positions of their colleagues.

If the status quo works at a personal level, managers might avoid pushing for an investment in systems that could expose long-standing flaws. Organisations must consider such concerns when an executive swerves technology implementations.

The ultimate action must be for c-suite leaders to ask more questions about the potential benefits of new technologies. All board members must be aware of the potential impact of systems rather than a select few.

Potential fears surrounding automation means your company must also take steps to carefully manage the introduction of new IT. New technology doesn’t have to equal middle management job losses, but it could mean lost productivity and cost cutting opportunities if you don’t take steps to prevent apprehension!

Further reading:
http://www.hrmtoday.com/leadership/the-death-of-middle-management/

The cost of running scared is a post from Advanced Business Solutions - Supplier of accounting software, business intelligence and document managment

• Strengthening the devolution settlement in Scotland.
• Increasing the financial accountability of the Scottish Parliament.
• Renewing the policy responsibility split between the UK and Scottish Parliament.
• Improving the relationship between the UK Government and Scottish Ministers

This may well see the Scottish parliament given further revenue raising powers and could see the subject of the Scottish variable rate of tax back on the agenda. For those employers with nationwide workforces this will be a big issue. It will also impact the software developers too as we will see tax codes prefixed with an ‘S’ to indicate that the individual is classed as a scottish taxpayer. Originally, this was proposed to be determined by days of residence in Scotland in a tax year.

I think it’s time to revisit my old discussions with HM Revenue & Customs on Scottish tax and also how the other recommendations of the Calman Commission, that this Bill is intending to implement, would impact on employers. Watch this space for an article that brings you up to speed

Scottish variable rate tax – back on the agenda? is a post from Advanced Business Solutions - Supplier of accounting software, business intelligence and document managment