Importance of Senior Managers Regime

Organisations in the United Kingdom are increasingly adopting and implementing the senior managers regime (SMR). This system will have a significant impact on these organisations. The main aim of the SMR is to increase accountability in firms by making employees rather than the firm itself more accountable. Under this system, senior managers will be held responsible for their juniors' actions. Because of the impact that this guidance will have on these firms, it is important that the implementing firms come up with a good plan to integrate it into their training and business strategies. Though this system sounds scary, it bears a lot of benefits to the firms. This article will highlight the importance of SMR in a corporate environment.


The SMR is designed to take accountability from the organization alone and give it to the employees. For this reason, this system will be of great benefit to the firms that implement it. The benefits of this system in a corporate setting include


Accountability


One major importance of SMR in a corporate environment is bringing the sense of accountability. In most cases, you can delegate tasks to your subordinates, but not responsibility. This system aims at making each individual more responsible for his or her actions. When you discharge a task to a subordinate, it is important that he or she becomes responsible for it, therefore, tackling it with high levels of competence. Your juniours need to know that they are responsible for how roles and responsibilities knit together. This system will also ensure that senior managers are held accountable for the actions of their subordinates. This way, these managers will do all that it takes to make sure that the members of the teams that they are leading perform their tasks diligently. SMR will ensure that all employees, regardless of their position in the organization, are accountable for their actions.


Better Governance


SMR will also improve governance in an organization. This is because, managers and those in senior positions will realize that delegating tasks and responsibilities is not enough, that someone needs to follow up and ensure that the tasks are done to perfection. Also, this system will ensure that decisions are made at the right levels and that the correct steps are taken to assess the seriousness and come up with the appropriate action in case an issue arises. SMR leaves no room for error when it comes to governance.


Sustainability


Another importance of SMR is sustainability. SMR encourages the employees of an organization to sustain and even develop or increase the current growth and performance levels of the organization. Because the employees are all accountable for their actions, they will strive to ensure that their performance is more than average. New employees will also have to understand that any below average performance by them will not be tolerated. As a result, the organization will realize sustainable growth.


Alignment


SMR will ensure that the objectives of the employees are aligned with those of the organization. This will minimize the chances of employees acting in a manner that is beneficial to them and costly to the organization. Alignment of objectives means that both parties will benefit from the growth of each other.