Contextual Influences on the Decision Making Role of Salaried Managers in Small Businesses

Abstract

This paper reports on the decision making role performed by small business salaried managers (those managers employed and that do not own the business). These managers are yet to move into the research spotlight even though, as second tier managers, they perform an important role in daily operations of small businesses. A qualitative investigation involving four case studies of Australian salaried managers found that contextual factors create consequences for their decision making role. In particular, business owners shape the organisational culture which is the setting for work relationships between salaried managers and owners, and these relationships are important in determining the scope of salaried managers’ authority to make decisions. The delegated authority of salaried managers proved illuminating as the connection with owners was an integral component of granting and exercising authority to make decisions. Insights into this decision making role are provided for academics and practitioners.