“Differences” between decision-makers in Romanian companies

“Differences” between decision-makers in Romanian companies

Within a company, there are leaders who are strategic decision-makers and leaders who are decision-makers at operational level. The first are top management while later are middle management. Their views are often convergent, but sometimes they may differ regarding the company’s evolution. These differences arise when one and the other are asked about the estimate of turnover, profit, investment, employee numbers, or wages for the next year, as the consulting company Valoria did in Business Outlook in 2018. The results are following:

Only 11% of top executives forecast a 10% -20% turnover increase in 2018

Top management of respondents seems to be more reserved than middle management. Only 7% of top managers say the company’s turnover will grow by over 30% while 9% of middle managers say this. The difference is even greater on the + 10% – + 20% growth range where only 11% of top managers see this increase in turnover while 21% of middle managers see the same. The opinions of the two management categories are relatively similar for the + 5% – + 10% increase in turnover, top management (31%) vs. middle management (30%).

Expectations to increase profits are similar to top and middle management

In terms of profit, top management and middle management have roughly the same view. The only two notable differences relate to profit growth over the range of + 10% – + 20%, top management 11% vs. middle management 17% and the expectation that profit will stagnate for 10% of top top managers and 6% of middle managers. The pessimism of profit decline is equally shared by top and middle management around 13%.

Major differences between top and middle management arise when forecasting investments

Regarding the investment, there is the greatest discrepancy between top management and middle management opinions. While middle management is more confident (16% vs 5% top management) on the top range of + 10% – + 20% (7% vs 4% top management) or + 20% – + 30% (10% vs. 1% top management) and on the over + 30% benchmark, compared to middle management, top management predicts higher + 1% – + 5% investment growth (40% vs. 21% middle management).