If you are the owner of the company, or head of a department, if you have employees that fall under your direction, than you are the boss. And bosses are not just one of the gang. It is important for you, the company and your employees to have a clear demarcation between you and them. Friendly is one thing, friends is not what the relationship should be between yourself and those who work for you.

In a small company or department this is often a hard line to draw. It is very easy to become close to the people you work with on an every day basis. But it is very important to be clear in your own mind your position and responsibilities to the company. For example, most people will find it very difficult if not impossible to discipline, lay off or fire someone they consider a friend. Reviews and increases in pay are other areas which may become cloudy if relationships are too close. How can you be impartial when reviewing a friends work?

And as human nature is prone to be, your employees will expect more of you as a friend than as a boss. Not their fault, we rely on our friends to look out for our best interests even when those interests contradict with the companys best interests. And when you choose the company over them, there will be problems on both side of the relationship. It is not fair to your employees to have them think of you as their friend when your job is to treat them as employees.