This section discusses the topic “Executive Management – What Does That Mean?” Read on to learn more. Let’s begin.
What Does Executive Management Mean?
All organizations have a management team of some kind. This team usually consists of five to six people from top management to middle management.
The term executive management refers to the highest level of management in an organization. This is the top-level, or the most senior layer, of management in an organization. It refers to the chief executive officer (CEO) and the executive board members.
In international organizations, it is referred to as the “board of directors” or “senior management group”. It may also refer to a group of managers that run an organization or a business unit.
What Do They Do?
The executive level is responsible for strategic planning, creating and implementing policies and procedures, maintaining relations with other departments, and being in charge of the overall performance of the company. It also has a role in ensuring that all its subsidiary departments are functioning efficiently as per their objectives and goals.
Executives are also responsible for planning strategies for their respective departments and monitoring their progress through regular implementation meetings and internal audits. They also oversee their employees’ performance through regular performance evaluation meetings with their subordinates.
Moreover, they are responsible for making sure that all operating norms, policies, and procedures are followed by the employees in their wing of responsibility, that is, by those who report directly to them. They are also responsible for conducting thorough business research periodically to find out what new trends and developments can affect their particular business unit’s bottom line and how they can be addressed efficiently through innovative actions and strategies.
Executives are also responsible for ensuring that their department remains profitable. They do this by restructuring if necessary (in case there is a loss). Executives can restructure by revising or even introducing new policies and procedures; making changes in the organizational structure; hiring new employees; eliminating unnecessary activities; altering staffing levels; changing employee duties; reducing operating expenses; etc. These measures make sure that the business unit continues to function smoothly while maintaining customer satisfaction at an optimum level.
Executive Management Skills Needed
Good Interpersonal Skills
That is good communication skills and the ability to lead and motivate people. A top executive should be able to easily interact with people from all levels of the organization. He or she should be able to build rapport with his or her subordinates and superiors. He or she should also be able to develop trust, respect, and confidence in his or her subordinates. This is an important quality as it enables the executive to get his or her issues addressed promptly by his or her employees.
Good Leadership Qualities
A top executive needs to be able to delegate work efficiently, that is, he or she must be able to assign tasks to people without micromanaging them. A good leader must also have the ability to manage his or her time effectively and efficiently so as not to waste any time on unnecessary activities.
Excellent Communication Skills
Great communication skills are a must as it enables a top executive to communicate with other leaders in the organization easily, that is, he or she must be able to make decisions very quickly and convey them effectively to others in the organization.