Running any type of business requires a significant amount of duties and responsibilities, which are typically divided among employees based on their role and level. The advantages of having various roles with their own responsibilities in an organization are numerous, from ensuring the business remains ethical to encouraging strong communication. 1.
Having specified roles and responsibilities in an organization is essential in maintaining proper records. Auditors and accountants regularly evaluate businesses to ensure accountability on fiscal matters, and without employees designated in roles with specific responsibilities, an organization might find itself in trouble when unable to produce receipts, bills or invoices. Businesses also need employees to be responsible for determining and distributing the compensation and benefits of all workers in the organization, matters which carry a high degree of legal responsibility. Ethics
One of the biggest advantages of having determined roles and responsibilities in an organization is that it helps that organization maintain ethical standards. It is the responsibility of those in executive roles, such as business owners and managers, to fully understand the organization’s standards, procedures and expectations. They in turn must communicate this to their workers and hold them accountable. Executives are held accountable by their board of directors, who in turn answer to the company’s stockholders, in the case of for-profit businesses, or stakeholders, in the case of nonprofit organizations. Communication
Communication is key in running a business from a small, independent cafe to an international firm. Organizations with clearly defined roles and responsibilities are naturally communicative, as ideally all employees will know precisely whom they must contact in certain situations. An business lacking in structure when in comes to duties and responsibilities will likely suffer from communication...
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