Question

Helen is leading a management seminar at Graeber Associates. One of the employees in the seminar raises his hand and says, "Right now I'm accountable to my team leader, but the folks in top management are only accountable to themselves and each other, right?" How should Helen respond?

a) That's true, top managers can pursue their dreams without many constraints.

b) That's not true—top managers are held accountable by boards of directors.

c) That's true, top managers are only accountable to themselves and their closest mentors.

d) That's not true—top managers are accountable to their employees.

Answer 1

Top managers at Graeber Associates are held accountable by the board of directors, which represents the shareholders' interests. The hierarchy of authority establishes this accountability structure from employees up to top management and the board.

Step-by-step explanation:

In response to the question about accountability in top management, the correct answer Helen should provide is: b) That's not true—top managers are held accountable by boards of directors.

Top managers have a significant role in shaping the board, but ultimately, they must answer to this body, which acts on behalf of the shareholders.

The hierarchy of authority within a company establishes that each level of management, including the top, is accountable to a higher level, with the board of directors ultimately answering to the shareholders.

The traditional manager/employee relationship is evolving into more of a partnership, where both parties bring value to the organization.

While top management has influence, they are still held accountable for their decisions and performance by the board of directors, which represents the interests of the shareholders.

This ensures that the company runs in alignment with the owners' objectives, although shareholders may not always have the resources to nominate alternative board members.