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Home › Manage Your Business

Manager: Definition, Interests, Types, Functions

January 21, 2025 · Ahmad Nasrudin

Manager Definition Interests Types Functions

Contents

  • Importance of manager
  • Manager types
  • Manager functions
  • The difference between a manager and a leader
  • LEARN MORE

Who’s it: Managers are employees whose functions are to plan, organize, control, and make decisions to achieve company goals. They may head a project, work unit, branch office, or company department/division.

In carrying out their functions, managers must carry out various roles. They play an interpersonal role, dealing with and motivating staff. They also act as sources, receivers, and transmitters of information. Then, they take on the role of decision-makers, especially those related to organizational resources and their allocations.

Importance of manager

Managers define goals and determine how best to achieve them, taking into account existing resources. They create assistance, provide direction, and control resources to achieve these goals. They are critical because they affect their performance, taking into account their interactions in:

  • Day-to-day decision making
  • Supervision and employee performance
  • Policymaking for employees
  • Recruitment, training, and layoffs of employees
  • Budget setting
  • Determination operational procedure

The company entrusts the day-to-day business operations to them. Not only for themselves, but they must also be able to motivate employees to achieve predetermined goals.

The manager’s interests in the company include:

  • Higher salaries
  • Promotion of position
  • Job security

Manager types

Managers are the primary key in the process of creating and implementing a company strategy. In most companies, the two main types of managers are:

  • General manager
  • Functional manager

The general manager is in charge of the company’s overall performance or an independent subunit or division. They are usually responsible for developing a strategy and the profit and loss for a product, business, or company as a whole. They may be referred to as executive managers or top managers.

Meanwhile, functional managers are responsible for serving specific business functions, such as finance and accounting, production, marketing, development (R&D), human resources, and information technology. They are responsible for the efficiency and authority of each function.

Manager functions

Managers are responsible for setting goals and planning to organize, direct, and control resources to achieve company goals. They don’t do it alone but work together and delegate it to others.

The five functions of a manager are:

  1. Planning
  2. Organizing
  3. Leading
  4. Coordination
  5. Control

Planning

Managers should think ahead to set goals and plan. Top-level management sets total strategic objectives. It was further broken down and entered into tactical goals for lower management.

Once goals are set, they make plans to make those goals happen. It includes plans to allocate resources and employees, delegate responsibilities, define schedules and standards, and monitor teams.

Organizing

This function is not only about giving orders and delegating tasks but also on the following aspects:

  • Define business processes and structures
  • Divide tasks and jobs for each division or department within the company
  • Allocating adequate resources for each task or job

Senior managers think about the proper business structure. They organize divisions or departments to allow for a clear division of tasks and work towards common goals.

Managers need to recruit staff with care tailored to the needs of the organization. They are encouraged to assume specific authority, accept accountability through delegation, and ensure they have what it takes to accomplish their tasks.

Leading

This function includes directing and motivating employees. Managers guide, lead and supervise them to carry out their assigned tasks and jobs.

They also encourage, develop, and motivate staff to be more productive in performing jobs and tasks through training and incentives. Additionally, they may also need to handle conflicts reasonably and decisively if they arise among team members.

Coordinating

This function is increasingly important for large companies. They have various parts of the organization such as departments or business units as in multinational companies, each of which has its own objectives.

Coordination is essential to ensure harmony and synergy between parts of the organization, whether related to targets or other tactical issues. The goals of each part are put together to achieve the same goal. On a technical level, it’s possible to get rid of duplication. For example, two same divisions use the same inputs but buy them from two different suppliers, reducing the potential economies of scale from purchases.

Controlling

This function is concerned with measuring performance and taking action if it does not comply with predetermined targets. It ensures targets are adequately met and makes the necessary changes if they are not. It may require feedback or corrective action.

The difference between a manager and a leader

Meanwhile, managers can delegate and command staff because they have the authority to delegate and implement plans. Leaders are more about motivating and inspiring to influence staff to follow them to achieve common goals through shared charisma and vision.

Some points to distinguish managers from leaders are as follows:

Manager

  • Followed by staff because of the official authority they have
  • Direct and monitor others
  • Skilled and qualified to perform the role accordingly
  • Trying to do things right
  • Trusted and listened to because of their status
  • Trying to adapt to the culture of change
  • Seeks stability and tries to solve problems quickly

Leader

  • Being followed by staff because of personalities such as visionary and charisma
  • Motivate and inspire others
  • Trying to do the right thing
  • Respected and trusted by followers
  • Creating and developing a company culture
  • Tolerates chaos

LEARN MORE

  • Lower-Level Management: Examples, Roles and Skills
  • Middle-Level Management: Examples, Roles, Skills
  • General Manager: Definition and Brief
  • Functional Manager: Roles and Responsibilities, Required Skills

About the Author

I'm Ahmad. As an introvert with a passion for storytelling, I leverage my analytical background in equity research and credit risk to provide you with clear, insightful information for your business and investment journeys. Learn more about me

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