Embrace the Multifaceted Role of a General Manager (GM)
A general manager (GM) oversees either a department’s operations or an entire company’s operations. This encompasses generating revenue, controlling costs, and enhancing efficiency. In smaller companies, the GM might be one of the top-level executives.
In hierarchical settings, GMs rank above most employees but stand below corporate-level executives, with their roles varying across different organizational structures.
Key Takeaways
- GMs drive efficiency and profit while managing overall operations of a division or company.
- Responsibilities include managing staff, overseeing budgets, executing marketing strategies, and more.
- They report to higher management and supervise lower-level managers.
- GMs can have titles such as branch manager, brand manager, or operations manager.
Understanding the Crucial Role of a General Manager
The GM supervises lower-level managers, who manage smaller divisions and report directly to them. GMs provide specific directions and oversee their hiring, training, and coaching. They ensure departmental efficiency by setting strategic business plans aligned with company goals.
GMs manage all business facets, from daily operations to administrative functions and financial oversight. Due to the extensive nature of the job, effective delegation is critical.
To meet objectives, GMs collaborate with higher-level managers, executives, and supervise lower-level employees. They allocate resources for marketing, supplies, hiring, and equipment. Owing to their complex duties and need for significant experience, GMs typically receive higher compensation than entry-level roles.
Essential Requirements for a General Manager
A GM generally accumulates experience in lower management positions before ascending to the GM role. They advance by transitioning to top executive roles or larger companies. GMs need comprehensive knowledge of business operations and should excel in leadership and decision-making.
Key skills include:
- Budgeting, planning, and strategic insight
- Problem-solving capabilities
- Understanding of business processes and functions
- Advanced communication skills
- Analytical skills
- Relevant college or graduate degrees (varies by industry)
Core Responsibilities of a General Manager
General managers oversee daily operations and the overall workforce. Their responsibilities often extend to:
- Maintaining and improving budgets
- Setting policies and processes
- Overseeing recruitment and training
- Evaluating operational and financial performance
- Ensuring compliance with regulations
- Providing solutions to issues
Diverse Titles for General Managers
While the title might differ, GMs essentially oversee operations and high-level functions like finance, marketing, and staffing. In the executive suite, the CEO is the GM of the entire company, while departmental GMs oversee specific units or segments. Examples include:
- Product Manager in tech companies
- Branch Manager at bank locations
- Managing Partner or Managing Director in consulting firms
- Brand Manager in consumer-focused companies
Salary Insights and Job Outlook for General Managers
Compensation for GMs can vary by industry and company. Here are average GM salaries for top industries:
| Industry | Hourly Wage | Annual Salary |
|---|---|---|
| Restaurants | $31.10 | $64,680 |
| Management Consulting | $69.91 | $145,400 |
| Enterprise Management | $76.55 | $159,230 |
| Computer Systems Design | $70.65 | $146,950 |
| Merchant Wholesalers | $57.91 | $120,440 |
Projected employment for GMs shows moderate growth, anticipated to rise by 6.7% through 2031, with substantial changes across various sectors.
Industries like coal mining, tobacco manufacturing, and retail are expected to see a decline in GM positions due to several trends, including technological advancements and shifts to greener energy.
Conversely, industries such as solar and wind energy, electric components manufacturing, and passenger transportation foresee significant growth.
General Manager vs. CEO
GMs manage various departments within a company, ensuring that their departments achieve executive-set goals. On the other hand, CEOs are top leadership figures responsible for strategic planning, long-term decisions, and overall fiscal oversight.
General Manager vs. Operations Manager
GMs oversee all business aspects, while operations managers focus solely on production and operations. GMs’ roles are broader, covering HR, marketing, and strategy, while operations managers have a more niche-specific role with specialized knowledge in a particular industry.
What Does a General Manager Do?
A GM supervises a workforce, manages budgets, ensures adequate staffing, and oversees numerous high-level business functions.
Is General Manager a High Position?
Generally, GMs have several lower-level managers reporting to them. Although not typically at executive level, they often report to executives.
Difference Between a General Manager and a Manager
The managerial level differs based on business structure. Managers typically supervise at a division level, while GMs do so at a departmental level.
The Bottom Line
General managers play a vital role in supervising daily operations, maintaining budgets, and aligning company goals. With progressive management experience and relevant education, GMs remain in high demand and receive competitive compensation, especially in growing industries.
Related Terms: Chief Executive Officer (CEO), Operations Manager, Branch Manager, Brand Manager, Management Skills.
References
- U.S. Bureau of Labor Statistics. “11-1021 General and Operations Managers”.
- U.S. Bureau of Labor Statistics. “Employment Projections | 11-1021 General and Operations Managers”.
