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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The Right Thing for your Company


Make sure that the outcomes you define for your people are in line with your company’s current strategy. With the dizzying pace of change in today’s business world, it is sometimes hard for managers to keep track. The key distinction is between mission and strategy. A company’s mission should remain constant, providing meaning and focus for generations of employees. A company’s strategy is simply the most effective way to execute that mission. It should change according to the demands of the contemporary business climate.

Although the constant reassessment of strategy is vital to the health of the company, it does place managers in a rather difficult position. They are the intermediaries, charged with explaining the new strategy to the employees and then translating it into clearly defined performance outcomes.

Often this can be as simple as telling your salespeople that with the new company strategy focused on growing market share rather than profit, each salesperson will now be encouraged to focus on the outcome, ‘sales volume,’ rather than the outcome ‘profit margin per sale.’

However, sometimes the changes in strategy are more radical and the pressures on managers to refocus employees on different outcomes are more acute. For example, the most effective strategy for many high-tech companies used to be innovation. Hence the large R&D budgets, the hordes of dishelved but creative software designers, and the unpredictable, slightly unfocused work environments. For the major players who dominate the marketplace, critical mass—getting your product to be accepted as the standard—is now more important than innovation. Innovation can be brought from the smaller boutique houses. Thus these larger companies need to change the way they operate to ensure that virtually everyone’s efforts are focused on spreading the new language/platform/product into the marketplace. This means that managers in these companies will have to hustle to redefine the desired outcomes and find new definitions of success. Number of users, for example, may now be more important than revenue per user.

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.