What are the functions of the general manager?

In every company, there are roles that are more important and carry more responsibilities than others. Recently, a definition from the Anglo-Saxon world, CEO, has become very popular. However, there is another position that, with some differences, is equally important. Let’s discover what a general manager is and what their functions are.

What is a general manager?

The general manager of a company is one of the most important figures in the organizational chart and holds a role of enormous responsibility. Every decision they make has consequences for all departments and every employee. It is a role that can make a real difference and influence revenue, expansion, and all other aspects of the business in which the company operates.

To answer the question of what a general manager is, one could say they are the beating heart of the organization. Their job is to ensure that every operation is carried out in the best possible way to generate profits for the company they lead. Therefore, finding the right general manager is an activity that usually requires significant economic resources and time. In fact, the person hired will have considerable responsibilities, and selection criteria are specific to each company.

Although the functions of a general manager grant them significant power, they are not the owner of the company and must answer for their actions and decisions to a higher authority, such as the Board of Directors, external shareholders, the president, the vice president, or the CEO. However, in most cases, a general manager enjoys the full trust of those who selected them, so they usually have good autonomy in decision-making.

What does a general manager do?

The functions of a general manager are many and indispensable. They are the brain and driving force of the company and must guide it toward success and maximum expansion. They are responsible for directing and managing the organization to complete each project in the best possible way (i.e., with maximum profit and minimal expense), as well as ensuring continuous growth.

The role of a general manager is one of enormous responsibility and leadership. In fact, they must serve as an example of behavior and professionalism for every member of the organization and know how to place each person in a position to give their best according to their capabilities. A good professional must also be an excellent motivator and have a forward-looking vision to anticipate market trends and leverage them for the benefit of the company. Among the functions of a general manager are:

• Ensure that every operation of the company is carried out in the best way to maximize profits. To do this, they must have a thorough knowledge of all company resources, the work of the commercial department, and all involved figures. They must also develop a repeatable and scalable system that guarantees the best results with the least possible effort, both in terms of time and money invested.
• Establish strategies for the development of new products and their subsequent market launch to attract new customers. In this regard, they will need to work with the Production and Marketing departments.
• Implement the decisions of the Board of Directors or the company CEO.
• Properly manage the company’s resources for the development of various activities. For example, ensuring each person is positioned in the role where they can contribute the most value to the company.
• Manage relationships with suppliers and unions.
• Oversee the company’s legal matters and maintain direct contact with lawyers and experts.

How to become a general manager?

Those who want to understand how to become a general manager should know that a specific degree is not required. However, individuals with a degree in Economics, Business Administration, or Law have a significant advantage when aiming for this position. In addition, it is almost always required to complete training with a specialized master’s program in business management, such as a Global MBA, which also provides an international perspective.

At the same time, specific training regarding new technological opportunities is increasingly necessary, so having obtained, for example, an MBA in AI (Artificial Intelligence) is a plus. That said, it is essential to have solid experience in the field and years of work in different companies and sectors. In fact, to perform the functions of a general manager, a professional must possess strong leadership and organizational skills and be able to successfully coordinate the work of others.

It should not be forgotten that the general manager’s communication must be very clear and direct. They have many responsibilities and cannot afford to spend too much time with each team member. Therefore, communication must be concise and effective, leaving no room for misunderstandings. This professional must also have initiative and a creative mind to seek new solutions and opportunities.

What is the salary of a general manager?

The salary of a general manager is high, but it is very difficult to establish an ideal compensation for this professional role. It is undoubtedly a significant salary in relation to the responsibilities of the role and the expectations of the rest of the management team. That said, it is possible to estimate average salaries for general managers of small, medium, and large companies to get an idea of potential earnings.

The salary of a general manager can range from an average of 90,000 euros per year for a small company to more than 200,000 euros for a large company. However, it can also reach much higher figures if they work for major multinationals. It should also be considered that a general manager’s compensation is influenced by various factors, such as the industry and country in which the company operates, tenure, and additional benefits.