Corporate responsibility

As companies grow from family operations into big businesses and further into corporations, relationships, interactions, and responsibilities change. No matter the organization's size, employees are responsible for the whole; their actions represent the company's actions. We all are obligated to each other in the activities and output we produce.

?The relationship changes as “Mom & Pop" grows in structure. Company owners will have added responsibilities and rely on their employees to perform with less direct oversight. There is just so much time in a day. The owners will stay involved in the daily operations but less engaged in the details. The employees then take on a new responsibility for filtering and forwarding critical information. The owner will make many decisions based on this filter information, so its accuracy and reliability are essential for the wheels to stay in motion.

?As a company expands, departments form to disburse the owner's direct responsibility so they can focus on critical aspects removed from the day-to-day. H.R., Finance, I.T., and separate divisions help ensure the work gets done and permit the growth and promotion of critical individuals. In this environment, the employee's role changes again. Information requested may appear to be irrelevant or even useless. H.R. forms, proper coding of financial data, and monthly reports all serve no purpose. Still, when viewed together by department managers or owners, they provide an ongoing picture of the corporation. Middle managers review information to coordinate with other departments to evaluate sales requirements or forecast cash flow, and the employees need to be responsible for timely and accurate reporting.

?The corporate managers are primarily looking at the same information as the “Mom & Pop” operation, but back then, it was gathered by stopping in and looking over someone's shoulder—now there are too many shoulders, and reporting is required. The transition from oral to written history is the only way to share information effectively.

?Management tip:

?Ask and learn the use of report information. It will make the work more relevant and give insight into what a manager or owner is looking for and how it is applied. It will also provide a basis for how different departments utilize information and how the separate parts work together.