Management is responsible for a number of critical tasks. Managers are expected to act as role models. They must resolve conflicts, develop performance standards, maintain positive relationships with customers and other stakeholders, foster a learning environment, and manage the business or their functional area within that business to ensure long term success. Managers are also responsible for rewarding success, for creating new channels of communication, for permitting risk taking, and for allocating the company's scarce resources between and among competing priorities.
A common problem associated with outsourcing of management is that the individuals to whom tasks are outsourced do not have the total confidence of the company that has hired them. As a result, their authority and autonomy are intentionally limited. However, this limits their effectiveness since many of the tasks or roles managers must play require managers to exercise a significant amount of authority and autonomy. For example, in order to reward superior performance, the manager must have the authority to authorize a promotion, a raise or a bonus and in many instances the outsourced manager will not be given this amount of functional autonomy.
The solution I propose to this problem would be for senior management to evaluate the qualifications of the individual to whom a management role is being outsourced. Once the decision is made to outsource the job function, a commensurate amount of autonomy and authority should be conferred on the individual for him or her to be effective in this role.
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