Casting a Vote for Middle Managers As Most Valuable Players in Shaping How Nonprofit Workers Feel about Organizational Leadership and Performance

Background

Research shows a strong connection between leader inclusiveness (helping workers feel valued) and improved worker performance. However, little is known about how top leadership and middle manager inclusiveness separately influence worker performance. This gap is important in nonprofit human service organizations, which often face resource constraints. To maximize impact, it is essential to identify which level of leadership plays the most pivotal role in shaping worker perceptions and performance. This study examined whether top leaders or middle managers serve as the “most valuable players” (MVPs) in improving worker views of leadership inclusiveness and enhancing performance. Findings can inform how nonprofits allocate limited resources to drive performance improvement.

Methods

Workers from 21 workgroups within a healthcare department in the western United States were surveyed across three time points six months apart. At Time 1, 213 (71%) completed surveys using pre-validated measures. After new hires, the sample grew to 330. At Time 2, 245 (74%) and at Time 3, 239 (72%) completed surveys. Two models were examined using longitudinal multilevel path analysis: Model 1 assessed whether top leadership inclusiveness influences how workers view middle managers, which in turn influences worker performance (positioning top leaders as MVPs). Model 2 assessed the reverse: whether middle managers influence worker perceptions of top leadership inclusiveness and subsequently performance (framing middle managers as MVPs).

Results

Model 2 demonstrated a better fit (χ² = 5.197; df = 5; p > .05; RMSEA = .01; CFI = .99; TLI = .98) compared to Model 1 (χ² = 6.152; df = 5; p > .05; RMSEA = .04; CFI = .97; TLI = .88). In Model 2, perceptions of middle manager inclusiveness at Time 1 significantly influenced perceptions of top leadership at Time 2 (β = .31, SE = .11, z = 2.85, p < .01, 95% CI = .13, .49), and worker performance at Time 3 (β = .22, SE = .08, z = 2.78, p < .01, 95% CI = .09, .35). A significant indirect effect also emerged, showing that middle managers influenced worker performance by shaping perceptions of top leadership inclusiveness (β = .11, SE = .05, z = 2.31, p < .05, 95% CI = .03, .18). The reverse pathway (Model 1) did not show significant results: top leadership at Time 1 did not significantly influence worker perceptions of middle managers at Time 2, and no indirect effect was found between top leadership and worker performance through middle managers.

Conclusion

Findings highlight the critical role of middle managers as MVPs in shaping worker perceptions of top leadership inclusiveness and positively influencing worker performance. Interventions aimed at increasing inclusion and worker performance would be most effective at the middle manager level. By acknowledging middle managers as MVPs in the implementation of inclusive organizational policies, nonprofit organizations can better align research with policy and practice to create more inclusive workplaces.