GENERAL MANAGER: ACTIVITIES AND FUNCTIONS - CULTURE VOCABULARY - 2025

A general manager is the person who is in charge of directing the board of directors of the organization in which he works. It is appointed by promotion within the company or by the selection process of external human talent.

Has responsibilities of being the legal representative of the organization before public and private entities to grant notarized powers with specific scope to delegate responsibilities in customs and other matters. She is responsible for being the employer before the public entities in charge of Social Security.

The responsibilities of the general manager are to maintain the profitability of the business, serve the most important clients, manage resources before financial institutions regarding equity and debt capital, review internal goals with the management team, and ensure compliance with the budget.

The general manager is accountable to the shareholders and the board of directors for their actions during each financial year, through administrative management and accounting audit reports. This provides stability to the organization in the market.

The profile of this position should be aimed at a fourth-level university professional, who has the tools that allow them to have a holistic view of the market.

General Manager Characteristics

The general manager must be a person who inspires his collaborators to be agents of positive change within the organization.

For this, the general manager must be empathetic with his work team, a role model, capable of taking advantage of the qualities of human talent and his own.

It is necessary to use assertive language when congratulating, claiming, giving feedback or exhorting collaborators. In this way, trust is generated and communication improves, the main element of any work environment. Leading by example also brings the GM closer to the entire staff.

An important function is to share knowledge, showing consistency in their actions, with the ability to self-evaluate, correct mistakes and turn them into positive aspects.

Goals and functions of the general manager

Among the objectives of a general manager we can mention the following:

Opportunities

Look for opportunities that allow covering more space in the market where the organization is located, in order to meet more demand and improve profitability levels, which would result in benefits for shareholders and workers.

Counseling to the Board of Directors

Establish recommendations to the Board of Directors on the gaps that may arise in the organizational goals, qualitative and quantitative measurements. Therefore, work meetings must be productive to stimulate work activities in the departments.

Preserve heritage

Maintain the organization's equity, through healthy financial decisions in which the cash flow is greater than the credit provided, the investments are successful for the improvement and expansion of installed capacity.

Optimization

Optimize the production process in a harmonized way, to avoid bottlenecks that can occur in the manufacturing or services sector. Understanding the management of available versus planned resources is important in order to maintain operability over time.

Signing contracts

Establish and negotiate contracts before public and private entities, according to the proposals prepared by the Board of Directors, according to the interests of the shareholders and the financial and operating results in a given financial year.

Follow trends

Review the market trends in which the organization operates, in order to adjust the action plans, the budget and other details that may compromise the financial, operational and social health of the company.

Search and evaluation of opportunities

Evaluate the opportunities to export production or service to international markets, in order to obtain profits in foreign currency that will allow the organization to access its own resources for supply processes or investments.

What are the challenges of the general manager?

In the current global context, the general manager has the challenge of complying with the plan approved by the board of directors and this must be framed within the national and international legal framework.

Retaining human talent is another priority, to minimize frequent staff turnover. The global economic situation has made migration processes accentuated and the decapitalization of human talent in organizations is generated. Staff incentives should be evaluated with the board of directors.

It is also important to maintain control of expenses in order to gradually improve management indicators such as productivity, profitability and transparency in the activities of the organization, without deteriorating the quality levels within its processes.

Knowing the characteristics of competitors, national and international, makes it possible to form strategic alliances in situations of supply problems or feasible alternative solutions to be applied in the organization, without undermining the ethical and legal principles.

What studies should you have?

Studies related to Business Administration with a global approach are required, in which knowledge is acquired or reinforced in matters of production planning and scheduling, finance with an emphasis on the study of cash flow, legislation, strategic planning and organizational climate..

These tools allow the general manager to make decisions in a comprehensive manner, since an organization is not a single department but a set of interrelated processes, the balance of which allows fluidity within each stage of work.

Thinking about the organization as a system made up of its parts and interactions in a harmonious way, allows solving problems that could be caused by a lack of communication, problems in the internal or external environment. It allows to anticipate possible scenarios with feasible solutions.

Social responsability

Each promotion obtained in life must have a way of rewarding the effort and that is by being aware of social responsibility in each professional and personal stage.

Donating time, creating and representing the organization with strategic alliances for the purpose of sustainable social projects over time is commendable.

Supporting social project initiatives within the organization allows the voluntary participation of Human Talent and the integration of the general manager with it.

Sharing common goals for a better society bring positive benefits within the internal environment of the organization.

References

1. Functions and Responsibilities of the General Manager. Recovered from andino.com.pe.
2. Gallo, M. (1988). The Role of the General Manager in the First Stages of Internationalization. Barcelona, ​​Business School of the University of Navarra.
3. General Manager Job Description. Recovered from snbhotels.com.
4. Organization and General Management Functions Manual. Recovered from bn.com.pe.

Sanoja, M. (2005). The Role of the Country or Subsidiary General Manager: A Study of Information Technology Subsidiaries Established in Venezuela. Caracas. Andres Bello Catholic University.