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Reviewed by Jul 26, 2021| Updated on
A general manager refers to an individual overseeing the company's operations, including operational costs and revenues. A general manager may be an individual in an executive role.
The role is subordinate to the top management of a company but above the employees in the lower management and in operations. The position, roles, and responsibilities of a general manager vary with the type of company.
A general manager's role is supervisory in nature supervising over operational staff and lower-level management. The heads or managers of different departments report directly to the general manager.
The responsibilities of a general manager include laying down guidelines for labour management, issuing department-specific directions, drawing up incentive programs for workers, and appraisal policy.
The general manager reports to the top management the performance of various departments also identifying the efficiencies and inefficiencies.
A general manager also assists the top management in setting and reviewing the operational strategy for various departments, the broad strategy for the organisation as a whole, and how different departments collaborate to achieve the goals.
The general manager works with the top management, middle managers, and the workers to carry out the objectives of the organisation. All co-ordinate to draw up the operational plans in sync with the objectives of the organisation. Planning involves budgeting, allocation of resources, production scheduling, implementation of product or process improvements, and so on.
In order to become a general manager, an individual must have the necessary skills and experience. Skills include knowledge of budgeting, understanding the broad strategy and organisational goals.
A general manager should understand the structure and approach of an organisation. Experience includes working in the lower level management before promotion to a higher level.
The role of a general manager is largely supervisory and delegatory in nature. Their functions range from managing the operations to managing specific functions such as marketing, finance and others.
A Chief Executive Officer (CEO) is also a general manager responsible for overseeing the activities of the company. However, the rank of a CEO belongs to the top management, unlike a general manager who is below the top management.