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Human Resource Decisions

Job roles in small and large businesses

The number of job roles in a business, and how specialised each one is, depends on the size of the business. A small business has few people who each cover several roles, while a larger business divides work into many specialised roles with clearer responsibilities.

FeatureSmall businessLarge business
Number of rolesFew; one person covers severalMany; each covers a narrower set of tasks
SpecialisationLowHigh
ResponsibilitiesShared and flexibleClearly defined for each role
CommunicationQuick, face to faceSlower, through more people

Small businesses: one person, several roles

In a small business, one person may carry out several roles, such as owner, manager and salesperson. Picture a small escape room venue that employs four people. The owner takes bookings, pays the bills and deals with suppliers, but on a busy Saturday she also checks players in and resets rooms between games, while the other three staff swap between running games, mending props and answering the phone. With only four wages to pay, labour costs stay low, and problems are sorted out on the spot because everyone is working in the same few rooms. The downside is that each person needs a very wide mix of skills, and if two staff are off sick the venue struggles to open.

Larger businesses: specialised roles

In a larger business, there is enough work of each type to keep someone busy, so roles become specialised: each employee concentrates on a narrow range of tasks and has clear responsibilities. A large bicycle manufacturer, for example, has separate teams for design, buying components, marketing and finance, each led by its own manager. Repeating a narrow set of tasks helps employees become skilled and fast, and because each person knows exactly what they are accountable for, less is missed. The drawback is that departments can end up working separately and messages take longer to travel, so managers must work harder to keep everyone coordinated.

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