May 28, 2022

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ROLES OF A BUSINESSMAN

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ROLES OF BUSINESSMAN

A businessman is someone that has a business. It can be a school, a shop were he/she trade, a trader, and so on. The aim of businessman is profit-making. Therefore, some businessmen and women centered all their effort on profit. They fail to see other roles they are expected to do on their jobs.

Mintzberg (1973) developed a model of roles managers are expected to do on their jobs. Though the model applies to managers of big companies, however, it can also be applied to businessmen and women as well as managers of small business. The roles are divided into three sections. The interpersonal roles, information roles and decision roles.

INTERPERSONAL ROLES

Interpersonal roles means acting in various capacity such as figure head, leader and liaison. This is explained below:

FIGURE HEAD

The role of a figure head involves performing some ceremonial duties such as attending important ceremonies, providing entertainment to dignitaries and given special attention to important customers. A businessman or woman can perform this role by attending weddings and parties of their employees, customers and famous persons in the community in which their business is located. Giving birthday presents to their employees and organizing end of the year parties.

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LEADER

The role of a leader involves hiring, motivating and directing the activities of employees for the purpose of achieving the goals, and objectives of the business. This role is accomplished by conducting seminars, performing on the job training and off the job training. Setting standards which can be used for controlling purposes and providing job description for each staff.

LIAISON

The liaison role involves developing and maintaining contact of persons and group outside the organization for the purpose of coordinating efforts of the employees to achieve the objectives of the business. One way to accomplish this is by having a phonebook and email book for all persons and groups outside the company.

INFORMATION ROLES

Information is a blood of every business. Information must flow within and outside the organization. As a businessperson you can achieve this role by been a monitor, disseminator and a spokesperson.

MONITOR

This involves seeking and receiving unsolicited and solicited information within and outside the business.  This can be achieve by carrying out survey study of your product. Also, information relating to your business can received from news media.

DISSEMINATOR

This involves transmission of information to various staffs of the business. In a functional organization structure, information can flow from lower level management to higher level management in form of report and reult of responsibility. Information can also flow from higher level management to lower level management in terms of instructions about jobs to do, delegations and budget information.

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SPOKEPERSON

The businessperson serves as agent in providing information to individuals and group outside the business. He provide information in terms of tax returns to the tax authority, credit and discount information to consumers/customers/debtors, performance information to creditors and other owners of the business and social responsibility information to community.

DECISION MAKING ROLES

Decision making roles involves deciding between alternative course of action. There is a saying that not making any decision is a decision itself. Decision making role is action-driven. There are four decision making roles of a businessperson. These are: Entrepreneur role, Disturbance handler, Resource allocator and Negotiator.

ENTREPRENEUR ROLE

In this role, the businessman/woman is involved in creating new ideas, initiating new projects and programmes. This role also involve carrying out SWOT (Strength, Weakness, Opportunity and Threat) analysis so that needed change in the business can be effected.

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DISTURBANCE HANDLER

Here, the businessperson will take needed action to resolve unexpected disturbances and unforseen circumstances such as labour strike, natural disaster, accidents, break down of plants and machinery, etc. This role usually require immediate respond from the businessman/woman.

RESOURCE ALLOCATOR

This role involves ensuring scarce economic resources is allocated and apportioned among the various work centres of the business. The businessperson can achieve this by preparing and monitor budgets, acquiring new resources and determining future resource requirement for the business.

NEGOTIATOR

In this role, the businessperson negotiate with different stakeholders both internal and external stakeholder. A businessman can negotiate contract between his business and another business.

For futher reading:

Learn about the types of finance risk that can affect your business.

why you should assess the finance finance risk of your business.

Five ways to manage risk in your business.

Five things to put in mine for your savings to work.

Consistency and presentation of financial statement.

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