Managerial Roles in Organization
Modern businesses are very complex. A whole gamut of knowledge of many subjects such as economics and the role of managerial economics, econometrics, statistics, managerial accounting, human resource management, organization behaviour and so on is an absolute necessity these days. A systematic study of these subjects provides an understanding of different managerial roles in organization. It enables one to develop those skills which eventually help in strategic decision making. There are many managerial roles in management but the basic functions of all managers remain the same- planning, organizing, staffing, leading, and controlling. This article aims to discuss the various managerial roles and functions in an organization.
What are the types of Managerial Roles?
There are three main types of managerial roles in an organization:
Interpersonal- In this group of managerial roles and functions, the manager plays a pivotal role in the organization that includes legal as well as social duties. Here, the manager must have leadership qualities so that he/she can build a team, motivate the employees, coach them whenever necessary and contribute towards building a strong relationship. Lastly, it also requires developing and maintaining a good network of people that can provide assistance and valuable information when required.
Informational- This role requires the manager to have relevant information about things that are affecting the company. The manager here needs to monitor the information flow in and outside the organization. Also, he needs to disseminate important information that concerns the organization. In other words, the manager should be the spokesperson of the organization.
Decisional- This role requires the manager to handle unexpected challenges with suitable and immediate action plans. He/she needs to ensure that the resources of the company are being utilised in an optimum manner. He/she is also required to participate in all the negotiations of the company.
Besides these three types, there are three more managerial roles and functions in the principle of management. These are:
General Managers: They oversee the performance of the entire organization or a major self-reliant subunit of the enterprise.
Functional Managers: They are responsible for specific task/s or operations such as sales, marketing, R&D, PR and communication, production, logistics, and information technology. In other words, functional managers lead a function or a particular subunit of a function.
Frontline managers: Found at the lowest level of an organization’s management hierarchy, frontline managers manage employees directly.
Therefore, these are basically managerial roles definition. Before discussing other types of managerial roles and managerial rules, let us see- what is the role of managerial economics in business, followed by the management accountant role.
Role of Managerial Economics
The role of managerial economics is to apply the knowledge of economic concepts and analytical tools to the managerial decision-making process. One of the main functions of managerial economist is to identify profit-maximizing ways by equating marginal cost with marginal revenue. Managerial economics unlike traditional economics deals with real people in real business setups.
Management Accountant Role
Managerial roles in organization involve the management of the accounts. The risk managers take care of all the financial aspects of the business including budgeting, resource allocation, monitoring of the resource utilisation, evaluation of the output, and report generation. They look after the accounts of the company and formulate strategies that can be implemented to generate maximum profits. The managerial roles and skills involved in such a position include deep-thinking, cost-benefit analysis, and a 360-degree awareness about the market.
Hence, the management accountant role is to ensure that the organization is in the pink of financial health, always. Without their contribution, a company cannot flourish. Therefore, going by the managerial rules, the management accountant role is a crucial one and so are the functions of managerial economist.
Briefly Explain all Managerial Roles
The role of managerial economics in decision making is key to its success. The other managerial roles and functions are as follows:
Planning: Preparing a schedule of events that will happen in a project or creating a blueprint of activities that will be done to complete the project.
Organizing: Arranging everything needed for the successful completion of the project and synchronizing the same.
Staffing: Grouping of personnel in different teams and allocating them tasks.
Leading/Coordinating: Guiding team members towards a common goal and facilitating communication between the teams.
Budgeting: Resource planning and allocation to ensure optimal utilisation of the same during the course of project completion within the given time period.
Reporting: Preparing reports and presenting the same to the management for further evaluation.
Controlling: Bringing everything under control and taking accountability.
This is all about the managerial roles in management. For further clearing of doubts, you may refer to the solved question on managerial roles.
FAQs on Roles of a Manager in Modern Organizations
1. What are managerial roles according to management theory?
Managerial roles refer to the specific sets of behaviours and responsibilities associated with a manager's position. According to renowned management theorist Henry Mintzberg, these roles describe what managers actually do to get their jobs done. Rather than just broad functions, they are specific actions grouped into three main categories: interpersonal, informational, and decisional roles, which together encompass the full scope of managerial work.
2. What are the 10 managerial roles identified by Henry Mintzberg?
Henry Mintzberg identified 10 specific managerial roles that are crucial for organisational success. These are grouped into three categories and describe the different types of work a manager performs. The ten roles are: Figurehead, Leader, Liaison, Monitor, Disseminator, Spokesperson, Entrepreneur, Disturbance Handler, Resource Allocator, and Negotiator.
3. How are Mintzberg's 10 managerial roles grouped for better understanding?
To simplify their application, Mintzberg's 10 managerial roles are organised into three primary categories based on the nature of the work:
- Interpersonal Roles: These roles focus on interactions with people. They include the Figurehead, Leader, and Liaison roles.
- Informational Roles: These roles involve the processing and sharing of information. They include the Monitor, Disseminator, and Spokesperson roles.
- Decisional Roles: These roles are centred on making significant choices that affect the organisation. They include the Entrepreneur, Disturbance Handler, Resource Allocator, and Negotiator roles.
4. How do a manager's informational roles support their decisional roles? Provide an example.
A manager's informational roles are the foundation for their decisional roles. To make effective decisions, a manager must first gather and analyse relevant information. For instance, in the Monitor role (an informational role), a manager gathers data on competitor pricing and market trends. This information is then critically used in the Resource Allocator role (a decisional role) to decide the budget for a new marketing campaign. Without accurate information, the decision would be based on assumptions and could lead to significant financial loss.
5. Why is the 'leader' role considered one of the most crucial interpersonal roles for a manager?
The 'leader' role is considered crucial because it directly influences an organisation's most valuable asset: its people. While other roles deal with processes or information, the leader role involves motivating, inspiring, and guiding employees to achieve organisational goals. An effective leader builds a positive work culture, improves team morale, and ensures that all employees are aligned with the company's vision. Without strong leadership, even the most effective plans and abundant resources can fail to produce results.
6. How has the role of a manager evolved in modern, 21st-century organizations?
In modern organisations, a manager's role has transformed from being a traditional 'boss' to a 'coach' or 'enabler'. Key evolutions include:
- Focus on Collaboration: Instead of top-down commands, modern managers foster teamwork and communication across departments.
- Adaptability to Technology: They must be skilled in using digital tools and managing hybrid or fully remote teams effectively.
- Empowerment over Control: The emphasis is on empowering employees to take ownership and develop their skills, rather than micromanaging their tasks.
- Promoting Agility: Managers must help their teams adapt quickly to market changes, prioritising organisational agility over rigid, long-term plans.
7. What is the practical difference between a manager's 'disturbance handler' and 'negotiator' roles?
The key difference between these two decisional roles lies in their nature and objective. The Disturbance Handler role is reactive; the manager responds to an unforeseen crisis, such as a sudden machine breakdown, a supplier strike, or a major client complaint. The primary goal is to resolve the conflict and restore stability. In contrast, the Negotiator role is proactive and planned. The manager represents the organisation in formal negotiations, such as finalising a contract with a new partner or discussing terms with a trade union. The objective is to secure an advantage and reach a favourable agreement for the organisation.
