General Manager vs. CEO

Certain CEOs are founders of a specific company, while others get promoted into the position or are hired from other companies. A CEO's primary function is to take part in high-level oversight, and planning for a company's future. They are in charge of making the most crucial decisions that affect a company.

Here are the key differences between a general manager and a CEO:

• A general manager oversees one or several departments of a company

• A CEO is the highest-ranking official and the leader of a company

• CEOs may be the founders of a company, while general managers are never the founders of a company

• Typically general managers have a bachelor's degree in areas like business, business administration, or economics

• CEOs generally have master's degrees in these areas of study

• CEO's have a much higher salary on average than general managers

• General managers perform managerial duties for a select group of employees, either in a unit, office, or store and handle day-to-day planning and supervision with some strategy responsibilities

• CEO's run an entire company and focus on long-term growth and development

In terms of skill sets, both general managers and CEOs require leadership skills, decision-making abilities, strategic thinking, and communication skills. However, the degree to which these skills are needed, and the specific contexts in which they are applied, greatly differ between the two roles.

• General managers must have strong operational skills as they often oversee the daily operations of their specific department or area. They must be able to handle issues that arise on a day-to-day basis, ensure the smooth functioning of their department, and manage their team effectively. The role often demands a high level of detail-oriented work.

• A CEO, on the other hand, requires a broader set of skills that extend beyond the operation of a single department. CEOs must be able to think strategically about the future of the entire company, make decisions that will impact all departments, and communicate effectively with all stakeholders, including board members, investors, employees, and customers. The CEO role is thus more strategic and visionary in nature.

• Given the scope of their roles, CEOs usually have more years of experience compared to general managers. A CEO's experience typically spans multiple departments or even industries, whereas a general manager's experience may be concentrated in a specific area of business.

• The reporting line also differentiates these two roles. General managers typically report to a higher-level executive such as a CEO or COO (Chief Operating Officer). CEOs report directly to the Board of Directors.

• Finally, while both roles involve making important decisions, the stakes are generally higher for CEOs. Decisions made by CEOs can significantly impact the overall direction and success of the company. In contrast, while a general manager's decisions are important for their department or unit's success, they may not have as profound an impact on the entire organization.

In conclusion, while there are similarities between the roles of general manager and CEO due to their leadership positions within an organization, they differ greatly in terms of responsibilities, required skills and expertise, decision-making authority, and the degree of impact on the organization's overall performance.