Let us now consider the definition of Executive Management in this post. Scroll down to learn more about the topic.
What Is the Definition of Executive Management?
Executive Management is the management of a company that is not in charge of a particular department or section of the company. But, it is also responsible for overseeing the functioning of the entire organization.
Thus, Executive Management plays a very crucial role in an organization.
Executive Management takes care of the entire operations of a company, is responsible for making strategic decisions, and has a clear vision for the future. This management team also holds all the powers in terms of making critical decisions such as hiring and firing employees, buying or selling property, and so on.
The members of the Executive Management team are selected by the topmost positions in the company and are appointed as per their expertise and experience. Although they do not have any direct control over any particular department in the company, they are responsible for managing the entire organization.
Executive Management is a very challenging and demanding field. The members of this management team have to work under tremendous pressure, face a lot of criticism from all sides, and are required to make tough decisions daily. They must also be able to think on their feet and make quick decisions based on their analysis of the situation.
Executive Management is one of the most crucial parts of an organization. If the members of this management team do not perform well, the company will surely suffer losses. Thus, it becomes very important for them to perform well and deliver excellent results.
Now that you know what Executive Management is, it is time to look at its role in an organization. You will learn more about its functions in the next section. Keep reading!
Role of Executive Management: Functions & Responsibilities
Let us now look at some of the functions performed by Executive Management in an organization:
Implementation and Execution of Strategies
Executive managers are responsible for carrying out strategies devised by upper management departments such as the marketing and finance departments. They are also responsible for implementing strategies at all levels of the organization.
Making Critical Decisions
Executive managers have a lot of power to make important decisions such as hiring or firing employees and acquiring or selling property.
Setting Up Business Goals
Executive managers are responsible for setting up goals for their departments and monitoring them closely to ensure that they are met within stipulated time frames. They also monitor performance indicators such as sales targets, profit targets, etc. Also, make sure that these targets are achieved by the department concerned within stipulated timeframes.
Financial Planning
Executive managers work with topmost management positions to plan future expenditures by their departments and create budgets accordingly. They also help create business plans to achieve long-term business goals.
Meeting Deadlines
Executive managers must ensure that all deadlines set by top management positions are met within stipulated time frames to meet short-term organizational goals such as quarterly profits or annual profits. This means that if any deadlines are missed, deadlines set for other departments will also be missed.
Monitoring Performance Indicators
Executive managers must monitor performance indicators such as sales figures, profit figures, etc. Also, take appropriate action whenever performance indicators fall below expectations set by top management positions of the company.
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