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Remember, your first obligation is your job and your responsibilities to your employer, not the employees who report to you. A good manager knows how to balance both. Hard to give practical examples since different types of jobs require different skills from a management perspective.
The common denominator in any situation is that your role as manager is to bring out the best in each employee to make them as productive as possible for the company. It means working with each direct report as well as your manager to make it work for each employee. Also remember, it is your job to enforece company policy, not be a nice guy to everyone who asks for a favor.