managerial capitalism

Managerial capitalism is an economic system where businesses are run more by professional managers than by owners or shareholders. In this model, managers make decisions that focus on efficiency, productivity, and profit maximization, often without direct ownership stakes in the companies they manage. This approach aims to separate management from ownership, allowing professionals to apply their expertise for organizational success, while owners may prioritize financial returns. It emphasizes the importance of management in navigating complex markets and adapting to changes, ensuring companies can thrive in a competitive environment.