While job descriptions attempt to formalize the roles we have at work, it is nonetheless inevitable that all of us take on many more, informal responsibilities as part of our job. This is no less true in the boardroom, as research from Cambridge Judge Business School demonstrates.

The paper finds that informal role structure usually works in two clear ways. For instance, while it can sometimes complement the formal structure, it can also create conflict by competing with the more formal structure for power and influence.

A holistic view

The authors suggest that too often we look at roles individually and in isolation, but in reality, it is the way roles interact and complement one another that is key. As such, it’s not simply the structure of the role that matters but rather the orchestration of the different roles together.

“The study addresses the fact that previous studies on top management teams have focused more on composition and incentives than on role structure,” the authors explain. “So our aim was to develop a framework for understanding these different aspects of role structure and how it affects firm strategy and performance.”

The informal roles managers have are a key part of developing this understanding. For instance, the role structure of top management teams is often reflective of particular resource dependencies or even institutional pressure. They may even highlight particular power relationships within the company.

This can often result in behavior differences, such as that between managers who head up business units and those that head up functional areas, both of whom interact very differently with one another, as business unit heads tend to work far more independently and compete for resources more intensely.

The authors hope to continue their investigation into more specific types of organization, such as startups or professional firms, as these kinds of organizations often face unique institutional and strategic challenges.

“For example, entrepreneurial ventures may need to organise executive roles flexibly for adaptability and at the same time need to install clear formal roles to attain legitimacy,” they explain.