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How can I clarify reporting structures, within the team, without sounding egomaniacal?

I work for a large public-sector organisation, in a managerial capacity, based in the UK.

I started on this role about two months ago and then another team member was recruited, who I believe, as per the job description and all related conversations with management, was to report to me.

However, she (the team member) believes that she reports directly to my manager. Honestly, I do not have a problem with who she reports to. However, I do not want to be challenged at a critical moment in the project, when there are conflicting requirements.

My wife thinks that I should let the matter rest and wait for an opportune moment to clarify this with the team member itself.

Please can you advice, how I might resolve this diplomatically? and without sounding power-hungry or conceited?