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.
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.
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.
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.
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.
1. What are the functions of Managerial Economist?
Ans. The managerial economists look after the economy of the company. They are the ones who take care of the accounts, investments, profits and every possible expense of the company. They are the ones performing the risk analysis, cost analysis, budgeting, profit planning, demand forecasting and so on. Further, they lay down budget and strategy considering the financial situation of the organization and also the government regulations.
2. What are the Managerial Roles in the Organization?
Ans. There are numerous managerial roles in an organization that includes management of the hindrance, allocating the resources, acting as an entrepreneur and negotiating financial deals whenever necessary and representing the company from time to time. They are the ones promoting communication inside an organization and fostering a healthy goal-driven work environment.
3. What are the Traits of a Successful Manager?
Ans. To become a successful manager, it is essential to lead by example and ask for feedback. A person should also be consistent and should be well aware and confident about utilising the resources of the company in the best possible way. All successful managers have vision, passion and consistency. Therefore, to understand the managerial roles in management, it is important to understand the value of setting an objective and working towards it.