The year is 1958. It’s a time of prosperity, productivity, and industrial growth for U.S. corporations, which dominate the world economy. Organizations are growing bigger and more complex by the day. Transatlantic cable service, which has just been initiated, and advances in transportation are allowing companies to expand into international markets. To handle the growth, companies are decentralizing decision making. To keep track of these burgeoning operations, they are hiring middle managers in droves. In fact, for the first time ever, white-collar workers outnumber blue-collar workers. Large companies are installing their first computers to automate routine clerical and production tasks, and “participatory management” is the buzzword.

A version of this article appeared in the November 1988 issue of Harvard Business Review.