Which of the following best describes the activities that managers exhibit when serving interpersonal roles?

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Interpersonal roles center on how a manager relates to people inside and outside the organization. Being a figurehead involves representing the organization in ceremonies and formal duties, while acting as a liaison involves building and maintaining contacts across boundaries to get things done. These activities illustrate the essence of interpersonal roles by focusing on interaction and relationship-building with others.

The other activities shift into different kinds of managerial work: setting budgets is about deciding how to allocate resources (a decisional/administrative task), and developing strategy is about planning and directing the organization's future (also decisional and strategic). Conducting performance reviews relates to leading and managing people, which is connected to interpersonal work, but the phrase that best captures the classic interpersonal activities is indeed to act as a figurehead or a liaison.