Authority Levels


Authority levels should never be engraved in stone. They must be adjusted from time to time to meet the changing needs of the business and the changing responsibilities of the jobs. Assigning the appropriate authority levels to jobs at all levels is critical to the efficient operation of any business, particularly those businesses that offer a service. One of the primary causes of consumer discontent stems from people not having sufficient authority; the customer is bounced around hither and yon before he finally reaches a person who is able to make a decision concerning his problem.

Here are some questions to ask yourself as you periodically reassess the authority levels assigned to jobs in your area:

  • Have the responsibilities of the jobs changed in my way?
  • If the responsibilities have changed, how should be authority levels be changed?
  • Do the authority levels enable the company to meet the clients’ and customers’ needs as efficiently as possible?

This reassessment of authority levels is especially important to maintaining employee morale. If a person is given an increase in responsibility without a corresponding increase in authority, the result can be as devastating as failing to give him an increase in salary.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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Determining Salary Range


Responsibilities and salary are always related. Once you have drawn up a list of job duties and responsibilities and have written a job description, determining a corresponding salary range should be easy.

Roughly speaking, all jobs can be sorted into three categories:

  1. Nonexempt jobs are those that involve performing prescribed, internal tasks and include little problem solving.
  2. Exempt jobs are those associated with supervising the performance of internal tasks and dealing with problems related to those tasks. These employees do not need to be overpaid overtime for extra hours. A good rule of thumb for determining whether a job is exempt is this: if you miss a day of work and someone else does your work for you during your absence, your job is probably nonexempt. But if you return to work and find your work waiting for you, you’re probably exempt.
  3. Management positions are those involving responsibility for addressing internal and external problems and programs, such as business objectives and challenges.

Avoid the temptation to inflate a job’s title by pasting the management label on a task-based job. People with management skills cost more money in the job market and are harder to hire. Let’s say you decide to speed up your company’s inefficient employee healthcare claims handling process by creating a new position: someone who will collect claim forms and coordinate with your insurance carrier. Don’t lose sight of the fact that you are hiring someone to perform a series of tasks, not to address a management problem. Advertise for a clerk or coordinator, not a manager.

Always establish the correct responsibility level and salary range for every opening you advertise. Doing so will provide consistency throughout your department and maintain internal equity in the structuring and compensation of jobs.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Markets as Networks


Actual firm relationships must be seen on a spectrum between outright competition at one end and collusion at the other. At the very least, such a self-evident observation raises the issue of the firm (or business unit) as the basic, and often only, unit of analysis: in certain circumstances we might more appropriately consider an information coalition of such firms as the key unit.

Earlier, the border of the company was seen as the dividing line between co-operation and conflict – cooperation within the company and conflict in relation to all external units. The corresponding means for coordination are heirarchy and the market mechanism. The existence of relationships makes this picture more diffuse. There are great opportunities for cooperation with a lot of external units forming, for example, coalitions. Thus, it is often more fruitful to see the company as a part of a network instead of a free and independent actor in an atomistic martket.

However, the recognition that there is a network of relationships is merely the first step. Approaches need to be developed for the analysis of the network.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight