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I will not feel threatened, rather i will appreciate and tell him to continue to do the good work. If Subordinates are smarter, than its a positive side to, not only negative. The positive side, you have mentored and motivated him to be in the position he is now. So this should rather be taken as a grooming of your subordinate for a leadership position in near future rather than a threat. A confident person works with his employees and promotes them, trusts them and motivates them, he should not feel threatened if they are performing well. However he should ensure he follows the management control hierarchy when reporting and leading the activities or tasks assigned to him.
Why Smart Subordinates May Come Across as Threatened
In their relentless pursuit of appearing smart, upcoming subordinate sometimes do not realize that they may appear threatening to the manager.
The perception of being threatening may happen for a number of reasons, which the upcoming manager should be conscious of. Possible reasons are as follows:
I. Unknown to you, subordinate is going through a lean patch-- Everyone is human, and the manager may be a bit insecure. Your attempt to portrait your self as an intelligent subordinate, especially to his or her boss, may not be interpreted well.
II. You present your self to the outside world as stronger than the boss-- You may not be doing so consciously but your behavior may be having that effect. It is you who needs to be sensitive and consider how to change your behavior.
III. You have a solution to every problem, and have time for more--Some subordinates never seem to be in doubt. If the boss hesitates on a subject because he sees other dimensions, Mr Smart 'cuts through the adipose tissues of the issue' and offers pat solutions.
IV. You are in reality an uppity little guy with a big head-- Everyone goes through this phase periodically. You have to become more self-aware and pipe down a bit. Remind your self that the company's really major problems are better solved through human relations rather than through intellect.
If my subordinate constantly get the better over me in critical work situations, instead of nurturing unproductive and unprofessional rivalry between him and I, I will step up my professional skills.
Accounting is a very dynamic profession with new IAS' frequently issued or ammended to prepare up to standard reports. It is possible that the "smart" subordinate has fresh hands on the latest changes in the IAS' and they lead him to better analysis.
As a superior, in such a situation, I will recommend that training be conducted to update the skills of all my team members and I. Also, a motivation system will be put in place to reward the smart and contributing subordinate, while at the same time implementing a communication channel within the team so as to better manage all contributions.