Managing Director Roles
What authority does a managing director have? Is it essential in a company to have managing director? What are the qualifiers to be a managing director?
A managing director is one of the senior executive in a company that has special authority next to the chairman of the board. The MD has the power to lead the organization that’s why they are given the title of CEO or Chief Executive Officer.
The title itself describes the role of the managing director; he/she is in-charge of the full management of the company including organizing staff, strategic planning, business planning, budgeting and other operational needs to support the company.
The managing director is responsible for all the necessary reports needed to be presented to the Board of Directors, for them to know where the company stands. Although the managing director has the power to lead the company, the board has the authority as well to vote or appoint or change the managing director, as the MD will be reporting directly to the board.
To be a managing director you need to be a bachelor’s degree holder in business administration or any related field. There are various fields that require managing director; it may be hospitals, financial institution, trading and industry companies, telecommunication companies, airline companies and many more.
Functions of a Managing Director
- Assigned to lead and promote the welfare of the company and motivates employees for better operation.
- Mediator between the board and the employees and provides updated information to both parties.
- Plans for the future of the company, provides better opportunities for the employees.
- Provides recommendation, develops and implements plans, overseer of the the company operation
- Gives direction to its subordinates of what needs to be done and how to do it.
- Provides updated information about its annual objectives and goal, and presents it to the board and has it approved.
- Assigned to develop new business ideas, how to have potential customers, how to increase the organizations profit
- Must keep and develop business relationship with new and old customers
- Supervises promotional strategy
- Able to manage financial budget approved by the board
- Able to manage the workforce of the company (its human resources), delegate task.
- Must be able to maintain good relation with employees and stays in contact with them and keep them satisfied with their work.
- Responsible for hiring and developing employees
- Lastly, provides information about the overall performance of the company to its board of directors
Being a managing director is a heavy responsibility, you are not just responsible for the company but also to its employee, to the customer and to the community.
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