Final answer:
Managers often need sponsors to secure financial capital from outside investors like bondholders and shareholders, as personal knowledge of the management becomes less critical when the firm's performance data becomes widely available. Additionally, within an organization, a strong relationship with sponsors can facilitate career growth and job satisfaction.
Step-by-step explanation:
Most managers need to obtain sponsors because as a firm becomes established, and its strategy shows promise for forthcoming profits, the need for personal connections with managers diminishes. This is due to readily accessible information on company's products, revenues, costs, and profits. Consequently, outside investors such as bondholders and shareholders, who may not have personal knowledge of the managers, become more amenable to providing financial capital. This is especially true for startups that have progressed past the initial phase where angel investors and venture capitalists rely heavily on personal interactions with the founders and managers.
Furthermore, within an organization, a manager's influence on one's career trajectory can be profound. The manager may provide opportunities for skill development, influence raises and promotions, and affect job satisfaction. Developing a positive relationship with one’s manager can lead to enhanced support and resources, thus, making the need for sponsors, or advocates within the company, crucial for a manager's success.