This question brings to the forefront an overarching challenge that employees, managers, executives and even Board Directors may face at different levels of an organisation:
When your boss gives you an instruction that conflicts with your professional judgement, organisational policies, governance principles or the legitimate interests of the organisation, should you obey your boss or stand by what is right for the organisation?
The answer requires more than simply understanding the organisational hierarchy. It requires self-leadership, professional judgement, courage, emotional intelligence and a clear understanding of authority and accountability.
WHO IS YOUR BOSS?
Depending on your position within an organisation, your “boss” may include the company founders, shareholders, Board of Directors, Executive Management, Senior Management, Middle Management or Team Leads.
Ultimately, responsibility for decisions should rest with those who have the appropriate authority, responsibility and accountability for those decisions.
By organisational hierarchy, the reporting and authority relationships typically work as follows:
- The Board of Directors is accountable to the company’s shareholders and, where applicable, its founders or equity investors.
- The Managing Director/CEO and Executive Directors are accountable to the Board of Directors.
- The C-Suite and other executives below the CEO report to the CEO and/or the Executive Management structure, depending on the organisation.
- Senior Management reports to the relevant C-Suite executives and Executive Management.
- Middle Management reports to Senior Management and, through the hierarchy, to the relevant C-Suite and Executive Management.
- Team Leads generally report to Middle Management and, through the organisational hierarchy, to Senior Management, C-Suite and Executive Management. They typically have limited or no direct interaction with Non-Executive Directors.
However, being your boss does not mean having unlimited authority.
Authority is always subject to the scope of the person’s role, delegated powers, organisational policies, governance arrangements, applicable laws and professional responsibilities.
