In this post, let us consider the value of Executive Management. What are their functions? So, scroll down to learn more about this topic.
Let us get started with the discussion.
Introduction about The Value of Executive Management
The term executive management refers to the leadership and management of an organization. These functions are performed by top-level managers. Executive Management is also known as Chief Executive Officer (CEO) or managing director (MD).
Executive Management is the management function at the highest level of an organization. The main responsibilities of executive management are:
- To formulate and implement the policies and objectives of the company.
- Select, train and evaluate employees.
- To communicate with employees and assist in decision-making.
- To supervise and control operations.
According to Business Dictionary, Executive Management is defined as:
- “The highest-ranking group in a company’s organizational hierarchy that reports directly to the Board of Directors. It is responsible for the overall direction, success, and profitability of the company.” (Business Dictionary).
- The value of executive management can also be analyzed by looking at the value of its functions. Let’s go into the details of each function to fully recognize its value.
The Value of Executive Management – Functions
Executive management performs several functions. These are as follows:
1. To formulate and implement policies and objectives
The main function of an executive manager is to formulate and implement policies and objectives. These policies and objectives are also the major drivers of the organization. These policies and objectives direct all activities within an organization. Thus, these policies and objectives must be formulated properly.
2. To select, train, evaluate employees
Executive managers play a major role in selecting employees for the different positions within an organization. It is also their responsibility to make sure that employees are properly trained for their respective positions. They also play an important role in the performance evaluation of employees through regular monitoring.
3. To communicate with employees
Executive managers play an important role in communicating with employees for various reasons. This includes providing feedback regarding their performance, giving instructions to different employees regarding their tasks, etc.
4. To supervise and control operations
Executives also supervise and control operations within an organization through various channels including face-to-face meetings with department heads, telephone calls or emails, or any other means which are easy to use. Moreover, regular follow-ups on the progress of operations are carried out by these managers to keep track of how things are going on within an organization. They also help in decision-making by considering various points that will affect the overall functioning of an organization.
Conclusion – The Value of Executive Management
In conclusion, executive managers are the people who provide leadership to an organization. They are responsible for the overall success of the organization. They act as the link between the board of directors and employees.
So, they must perform their function efficiently to get the maximum benefits for an organization. Thus, it is necessary to recognize the importance of Executive Management in an organization.