General manager
Encyclopedia
General manager is a descriptive term for certain executives in a business
operation. It is also a formal title held by some business executives, most commonly in the hospitality industry
.
and cost
elements of a company's income statement
. This is often referred to as profit & loss (P&L) responsibility. This means that a general manager usually oversees most or all of the firm's marketing
and sales
functions as well as the day-to-day operations
of the business. Frequently, the general manager is responsible for effective planning, delegating, coordinating, staffing, organizing, and decision making to attain desirable profit making results for an organization (Sayles 1979).
In many cases, the general manager of a business is given a different formal title or titles. Most corporate managers holding the titles of chief executive officer
(CEO) or president
, for example, are the general managers of their respective businesses. More rarely, the chief financial officer
(CFO), chief operating officer
(COO), or chief marketing officer
(CMO) will act as the general manager of the business. Depending on the company, individuals with the title managing director, regional vice president, country manager, product manager, branch manager, or segment manager may also have general management responsibilities.
In consumer products companies, general managers are often given the title brand manager or category manager. In professional services
firms, the general manager may hold titles such as managing partner, senior partner, or managing director.
In non-profit enterprises, the general manager is often given the title executive director.
, the general manager is a team executive responsible for acquiring the rights to player personnel, negotiating their contracts, and reassigning or dismissing players no longer desired on the team. The general manager may also have responsibility for hiring the head coach
of the team.
For many years in U.S. professional sports, coaches often served as general managers for their teams as well, deciding which players would be kept on the team and which ones dismissed, and even negotiating the terms of their contracts in cooperation with the ownership of the team. In fact, many sports teams in the early years of U.S. professional sports were coached by the owner of the team, so in some cases the same individual served as owner, general manager and head coach.
As the amount of money involved in professional sports increased, many prominent players began to hire agent
s to negotiate contracts on their behalf. The intensified contract negotiations that resulted, as well as the overall increased need for professional business management, drove many sports teams to separate the positions of coach and general manager. Some coaches, for example Andy Reid, Mike Holmgren and Mike Shanahan however, still insist on being allowed to fill both positions as a condition of employment.
In some sports leagues salary caps have been adopted to maintain a competitive balance and in these leagues it is one of the functions of the general manager to ensure all player contracts are in accordance with these caps, as well as consistent with the desires of the ownership and its ability to pay.
General managers are usually responsible for the selection of players in player drafts and work with the coaching staff and scouts
to build a strong team. In sports with developmental or minor league
s, the general manager is usually the team executive with the overall responsibility for "sending down" and "calling up" players to and from these leagues, although the head coach may also have significant input into these decisions.
Some of the most successful sports general managers have been former players and coaches, while others have backgrounds in ownership and business management.
The term is not commonly used in Europe, especially in soccer
, where the position of manager
or coach is used instead to refer to the managing/coaching position. The position of director of football
might be the most similar position on many European football
clubs.
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
operation. It is also a formal title held by some business executives, most commonly in the hospitality industry
Hospitality industry
The hospitality industry consists of broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry. The hospitality industry is a several billion dollar industry...
.
Generic usage
A manager may be responsible for one functional area, but the general manager is responsible for all areas. Sometimes, most commonly, the term general manager refers to any executive who has overall responsibility for managing both the revenueRevenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
and cost
Cost
In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this...
elements of a company's income statement
Income statement
Income statement is a company's financial statement that indicates how the revenue Income statement (also referred to as profit and loss statement (P&L), statement of financial performance, earnings statement, operating statement or statement of operations) is a company's financial statement that...
. This is often referred to as profit & loss (P&L) responsibility. This means that a general manager usually oversees most or all of the firm's marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
and sales
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
functions as well as the day-to-day operations
Business operations
Business operations are those ongoing recurring activities involved in the running of a business for the purpose of producing value for the stakeholders...
of the business. Frequently, the general manager is responsible for effective planning, delegating, coordinating, staffing, organizing, and decision making to attain desirable profit making results for an organization (Sayles 1979).
In many cases, the general manager of a business is given a different formal title or titles. Most corporate managers holding the titles of chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
(CEO) or president
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
, for example, are the general managers of their respective businesses. More rarely, the chief financial officer
Chief financial officer
The chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...
(CFO), chief operating officer
Chief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...
(COO), or chief marketing officer
Chief marketing officer
Chief Marketing Officer is a corporate title referring to an executive responsible for various marketing activities in an organization...
(CMO) will act as the general manager of the business. Depending on the company, individuals with the title managing director, regional vice president, country manager, product manager, branch manager, or segment manager may also have general management responsibilities.
In consumer products companies, general managers are often given the title brand manager or category manager. In professional services
Professional services
Professional services is an industry of infrequent, technical, or unique functions performed by independent contractors or by consultants whose occupation is the rendering of such services....
firms, the general manager may hold titles such as managing partner, senior partner, or managing director.
In non-profit enterprises, the general manager is often given the title executive director.
Hotels
In hotels, the General Manager is the executive manager responsible for the overall operation of a hotel establishment. The General Manager holds ultimate authority over the hotel operation and usually reports directly to a corporate office or hotel owner. Common duties of a General Manager include hiring and management of a management team, overall management of hotel staff, budgeting and financial management, creating and enforcing business objectives and goals, managing projects and renovations, management of emergencies and other major issues involving guests, employees, or the facility, public relations with the media, local governments, and other businesses, and many additional duties. The extent of duties of a hotel General Manager vary significantly depending on the size of the hotel and company; for example, General Managers of smaller hotels may have additional duties such as accounting, human resources, payroll, purchasing, and other duties that would usually be handled by other managers or departments in a larger hotel.Sports teams
In most professional sportsProfessional sports
Professional sports, as opposed to amateur sports, are sports in which athletes receive payment for their performance. Professional athleticism has come to the fore through a combination of developments. Mass media and increased leisure have brought larger audiences, so that sports organizations...
, the general manager is a team executive responsible for acquiring the rights to player personnel, negotiating their contracts, and reassigning or dismissing players no longer desired on the team. The general manager may also have responsibility for hiring the head coach
Coach (sport)
In sports, a coach is an individual involved in the direction, instruction and training of the operations of a sports team or of individual sportspeople.-Staff:...
of the team.
For many years in U.S. professional sports, coaches often served as general managers for their teams as well, deciding which players would be kept on the team and which ones dismissed, and even negotiating the terms of their contracts in cooperation with the ownership of the team. In fact, many sports teams in the early years of U.S. professional sports were coached by the owner of the team, so in some cases the same individual served as owner, general manager and head coach.
As the amount of money involved in professional sports increased, many prominent players began to hire agent
Sports agent
A sports agent procures and negotiates employment and endorsement contracts for an athlete.In return, the sports agent generally receives between 4 and 10% of the athlete's playing contract, and 10 to 20% of the athlete's endorsement contract, though these figures vary...
s to negotiate contracts on their behalf. The intensified contract negotiations that resulted, as well as the overall increased need for professional business management, drove many sports teams to separate the positions of coach and general manager. Some coaches, for example Andy Reid, Mike Holmgren and Mike Shanahan however, still insist on being allowed to fill both positions as a condition of employment.
In some sports leagues salary caps have been adopted to maintain a competitive balance and in these leagues it is one of the functions of the general manager to ensure all player contracts are in accordance with these caps, as well as consistent with the desires of the ownership and its ability to pay.
General managers are usually responsible for the selection of players in player drafts and work with the coaching staff and scouts
Scout (sport)
In professional sports, scouts are trained talent evaluators who travel extensively for the purposes of watching athletes play their chosen sports and determining whether their set of skills and talents represent what is needed by the scout's organization...
to build a strong team. In sports with developmental or minor league
Minor league
Minor leagues are professional sports leagues which are not regarded as the premier leagues in those sports. Minor league teams tend to play in smaller, less elaborate venues, often competing in smaller cities. This term is used in North America with regard to several organizations competing in...
s, the general manager is usually the team executive with the overall responsibility for "sending down" and "calling up" players to and from these leagues, although the head coach may also have significant input into these decisions.
Some of the most successful sports general managers have been former players and coaches, while others have backgrounds in ownership and business management.
The term is not commonly used in Europe, especially in soccer
Football (soccer)
Association football, more commonly known as football or soccer, is a sport played between two teams of eleven players with a spherical ball...
, where the position of manager
Manager (association football)
In association football, a manager is responsible for running a football club or a national team. The manager of a professional club is responsible directly to the club president. The position of manager is almost exclusively used in British football...
or coach is used instead to refer to the managing/coaching position. The position of director of football
Director of football
"Director of football" is a term describing a senior management figure at a football club, most commonly used in Europe. The exact nature of the role is often unclear and extremely variable and causes much debate in the sports media...
might be the most similar position on many European football
European football
European football is a colloquial term referring to any international football club competition that is organised by UEFA. Any club that wishes to participate in European football must qualify through their respective domestic league or domestic cup competitions...
clubs.
See also
- General manager (American football)General Manager (American football)In the National Football League, the general manager or GM of a team typically controls player transactions and bears the primary responsibility on behalf of the team during contract discussions with players....
- General manager (baseball)General manager (baseball)In Major League Baseball, the general manager of a team typically controls player transactions and bears the primary responsibility on behalf of the ballclub during contract discussions with players....
- General manager (basketball)General manager (basketball)In the National Basketball Association and Women's National Basketball Association, the general manager or GM of a team typically controls player transactions and bears the primary responsibility on behalf of the team during contract negotiations with players.The general manager is also normally...
- General manager (ice hockey)
- Managing director
- Sports Illustrated Top 10 GMs/Executives of the Decade (in all sports) (2009)
- Sporting News Executive of the YearThe Sporting News Executive of the Year AwardThe Sporting News Executive of the Year Award was established in 1936 by The Sporting News and is given annually to one executive — including general managers — in Major League Baseball....
(MLB) - NBA Executive of the Year AwardNBA Executive of the Year AwardThe National Basketball Association's Executive of the Year Award is an annual award given since the 1972–73 NBA season, to the league's best general managers. Before 2009, the Executive of the Year is presented annually by Sporting News, although it is officially recognized by the NBA. Since then,...