Environmental Change and Management Staffing: An Empirical Study

In 1980, the U.S. railroad industry underwent massive deregulation that has significantly altered the environment in which managers must operate. This article discusses the relationship between environmental change and executive staffing as an adaptive organizational response. It is hypothesized that background characteristics of managers (such as tenure, level of education, etc.) employed by railroads during the regulated era will significantly differ from those employed following deregulation. Results generally support expectations. Relative to the regulated environment, managers in the deregulated era have fewer years of industry and company service, are better educated, and have differentfunctional backgrounds.