Roles & Responsibility (Cambridge (CIE) A Level Business)

Line & Staff Functions

• The organisational structure of a business determines the roles, responsibilities and relationships between managers and individuals in the organisation 

Diagram: Business Roles

Directors delegate authority to senior managers, who carry the final responsibility for the work of everyone in the department. Tasks are delegated to subordinates, who are accountable for the tasks they complete

The role of Directors

• Larger businesses often have a board of directors who make key strategic business decisions such as

  • Implementing new corporate policies

  • Investment of retained profit and share capital

  • Growth objectives
    

• The board normally consists of a senior employee from each department, officers (such as treasurer or secretary) and the owner or chief executive officer (CEO) of a business

The role of Managers

• Managers have many responsibilities in the business and help it to operate effectively on a day-to-day basis

• Types of managers include senior and functional managers, line managers and supervisors
    

Roles & Responsibilities of Managers

The role of Operational & Support Staff

• Operational staff complete tasks to which they are directed by their manager(s)

  • E.g. In a department store, operational staff include customer service representatives, sales assistants and security staff
    

• Support staff assist with the non-core operations of a business

  • E.g. In a bank, support staff may include cleaners, IT technicians and human resources assistants

Delegation & Accountability

• Delegation is a process where responsibility for specific tasks is given to subordinates by managers 

  • Delegation usually involves transferring authority from manager to subordinate

  • E.g. The Human Resources Director of a large company delegates authority for recruitment and training to the Recruitment and Training Manager
     

• Delegation is particularly important in businesses with a flat organisational structure, where managers have wide span of control
   

• Accountability means that an individual has the responsibility to report on and explain their actions fully and honestly
  

  • Accountability requires several important components to be present

    • Clear expectations of anticipated outcomes are agreed upon

    • The accountable employee has appropriate skills, training and experience

    • Effective communication throughout the delegated task takes place, including ongoing feedback

    • There are clear consequences related to performance
      

• Effective delegation involves giving both authority to subordinates to make decisions and demanding accountability for those decisions 
  

  • Tasks that are delegated need to be well-defined and instruction may be required
     

The Advantages of Delegation

Control, Authority & Trust

• Control refers to a manager's ability to oversee, supervise and measure their subordinates' performance

  • Autocratic managers exert high levels of control over subordinates

  • Democratic and laissez-faire managers exert less control over subordinates but expect them to be accountable for decisions
     

• Authority refers to the level of power a manager has to direct subordinates
  

  • Autocratic managers retain high levels of authority, closely monitoring and directing employees

  • Democratic and laissez-faire managers maintain authority over subordinates but employees are less closely monitored and directed
     

• Trust in subordinates is necessary if managers are to delegate effectively and relinquish some control over tasks

  • Despite its advantages, some managers are reluctant to delegate as they lose some control over decision-making

    • Managers may need support to be able to balance trust and control to delegate effectively

    • Autocratic leaders may not be willing to give authority to others

    • Some managers may feel threatened by highly skilled subordinates seeking promotion