General manager
From Wikipedia, the free encyclopedia
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For the term general manager used in professional wrestling, see List of authority figures in professional wrestling.
The term general manager is a descriptive term for certain executives in a business operation. It is also a formal title held by some business executives, although the duties of the general manager role vary by industry.
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[edit] Generic usage
Most commonly, the term general manager refers to any executive who has overall responsibility for managing both the revenue and cost elements of a company's income statement. This is often referred to as Profit & Loss (P&L) responsibility. This means that general managers usually oversee most or all of the firm's marketing and sales functions as well as the day-to-day operations of the business. Frequently, the general manager is also responsible for leading or coordinating the strategic planning functions of the company.
In many cases, the general manager of a business is given a different formal title or titles. Most corporate managers holding the titles of Chief Executive Officer (CEO) or President, for example, are the general managers of their respective businesses. More rarely, the Chief Financial Officer (CFO), Chief Operating Officer (COO), or Chief Marketing Officer (CMO) will act as the general manager of the business. Depending on the company, individuals with the title Regional Vice President, Country Manager, Product Manager or Segment Manager may also have general management responsibilities.
In consumer products companies, general managers are often given the title Brand Manager or Category Manager. In professional services firms, the general manager may hold titles such as Managing Partner, Senior Partner, or Managing Director.
In non-profit enterprises, the general manager is often given the title Executive Director.
[edit] Industry-specific usages
[edit] Hotels
In the hotel industry, the General Manager is the head of hotel operations. He or she oversees the entire operation including food and beverage, housekeeping, maintenance and repairs, and sales and marketing. The 'GM' typically works long hours and often has significant industry experience. He or she is supported by other managers, such as the Director of sales, Chief engineer, executive housekeeper and sometimes, in larger or busier facilities, an assistant general manager.
A Hotel GM handles the budget, forecasting, payroll, accounting (payables and receivables) and oftentimes coordinates with corporate management and or property owners on strategic planning for the hotel.
[edit] Retail stores
The title of General Manager in the context of retail establishments often refers to the top manager of a given store. The general manager has the ultimate operational authority for the store and manages the outlet's budget and personnel. (See also: store manager)
[edit] Sports teams
In most professional sports, the General Manager is a team executive responsible for acquiring the rights to player personnel, negotiating their contracts and reassigning or dismissing players no longer desired on the team. The general manager may also have responsibility for hiring the head coach of the team.
For many years in U.S. professional sports, coaches often served as general managers for their teams as well, deciding which players would be kept on the team and which ones dismissed, and even negotiating the terms of their contracts in cooperation with the ownership of the team. In fact, many sports teams in the early years of U.S. professional sports were coached by the owner of the team, so in some cases the same individual served as owner, general manager and head coach.
As the amount of money involved in professional sports increased, many prominent players began to hire agents to negotiate contracts on their behalf. The intensified contract negotiations that resulted and the overall increased need for professional business management drove many sports teams to separate the positions of coach and general manager. Some coaches, however, still insist on being allowed to fill both positions as a condition of employment.
In some sports leagues salary caps have been adopted to maintain a competitive balance and in these leagues it is one of the functions of the general manager to ensure all player contracts are in accordance with these caps, as well as consistent with the desires of the ownership and its ability to pay.
General managers are usually responsible for the selection of players in player drafts and work with the coaching staff and scouts to build a strong team. In sports with developmental or minor leagues, the general manager is usually the team executive with the overall responsibility for "sending down" and "calling up" players to and from these leagues, although the head coach may also have significant input into these decisions.
Some of the most successful sports general managers have been former players and coaches, while others have backgrounds in ownership and business management.
