Difference Between Executive Director vs Managing Director
In a dynamic business world, many executives and management jobs share their responsibilities, depend upon the specific field of business. Managing directors have the utmost responsibility of managing the resources and regulate the operations of the organization, which results in company prosper and profit. While Executive directors are acting as an intermediary between the company and the board under their supervision company take progressive action and attain the predefined goal of the organization.
Executive Director plays a vital role in the organization who take charge of the day-to-day activities and put best efforts for future endeavors while working with other board of directors. They work proactively and design better strategies to advance the company that helps to make financially stable and forward. Executive directors are the solely responsible bodies who take their own decisions independently in favor of the organization without consent to the chairman of the board. Nevertheless, they also motivate their subordinates in critical affairs. And continuously put efforts in the development of their subordinates, promote the company’s philosophy.
Job responsibilities of executive director comprise of:
- Investigate the company’s operation and upgrade the system to enhance productivity.
- Maintain the ethic from top to bottom of the business chain.
- Estimate the operational amount require and maintain a surplus to meet the unexpected demand.
- Keep an update on market trend what a proximate changes require to meet the demand.
- Supervising department managers and quality reviews.
- Align different opinions and shape them into a strong plan.
- Ensure that the company adheres to ethical practice.
- Formulate different sets of policy to run an organization and adhere to it.
- Managing their direct reports, with hire/fire capabilities.
- Develop, then manage policies and programs to obtain the company’s mission.
Managing directors fuel the businesses through their years of experience and leadership that helps to systematize the workflow, manage the budgets and regulate the expenses. They maintain professionalism and don’t lose their patience even in a drastic situation to maintain a positive outlook. Managing directors are primarily in their offices working 9 to 5. More occasionally, being a face of the company they travel far to meet the business need, attain meetings or give speeches to other boards, regional executives or the media. The managing is also responsible for research and development program that will help cater to new business with new technology.
Managing Directors involve himself as such:
- Directing company resources.
- Insist coworkers and subordinates and mediating into issues.
- Assign responsibilities to individuals for department projects.
- Maintaining a competitive outlook to meet business needs.
- Interacting with clients and the public.
- Ensure the selection and retention of the right person.
- Monitor company’s progress by making corporate and business plans.
- Design strategic plan and assistance to members of the board in the development of the industry.
- Ensure the right policies that comply with relevant regulations are created.
Head to Head Comparison between Executive Director vs Managing Director (Infographics)
Below is the top 7 difference between Executive Director vs Managing Director
Key Differences between Executive Director vs Managing Director:
Both Executive Director vs Managing Director is a topmost and important position in the organization. Let us discuss some of the major differences between Executive Director vs Managing Director:
- The executive director plays a key role in decision making and has a right to interfere in daily activities. While the Managing Director is the most senior role in the organization and they control and direct the company’s work.
- Executive Directors are more likely to respond to design, develop and implement the strategic plan and monitor the ongoing activities in the organization. while Managing Director’s major concern towards implementation of company policy.
- Executive Directors act as a figurehead and answerable to top managers the success and failure of the organization. Managing Directors ensure the business performance from heads and conduct meeting for improvement.
- Executive Director is rank below the managing directors if the MD or CEO is not available in the organization then executive director reserve rights to take a decision in the favor of organization.
Executive Director vs Managing Director Comparison Table
Let’s look at the top 7 Comparison between Executive Director vs Managing Director
|The Basis Of Comparison between Executive Director vs Managing Director||
|Definition||A full-time employee has specified decision making the role as a director in any of the specific field of business such as finance, marketing, operations etc on an ongoing basis.||The Managing Director is the most challenging and senior role of the organization. With many responsibilities reports to the company’s board of directors and shareholders|
|Responsibilities||To design, develop and implement strategic plans and keep an eye on the day to day operation of the organization.||Primary: Responsible for implementing company policy and any changes to it.
Secondary: Responsible for representing the company in a public event and mentoring to the Board of Directors.
|Workload||Act as figureheads and answerable to all the top managers and the ones ultimately responsible for the success or failure of the organization and operation.||Ensure business performance heads in a positive direction. Demanding and high pressurized role to conduct meeting with other departments.|
|Benefits||Apart from base salary.they are offered bonuses, incentives such as stock options, income protection, and a guaranteed severance package, signing bonus & perquisites.||Significant remuneration which makes difference, not only in terms of salary but also bonuses, company shares and many more.|
|Challenges||Abundance challenges in management, fundraising, strategizing, innovation and implementation. Juggle among them lead to success or failure of an executive director.||High pressure and result oriented role. Pressure due to the detrimental cost of work-life balance with tight deadlines.|
|Ranking||Lower than Managing Director||Highest ranking executive|
|Reporting||The executive director takes their decision own without any consent of the Board of directors in the development of the organization.||Managing Director has to listen to the advice of the board of directors and work for the interest of the shareholder.|
Executive Directors vs Managing director both are challenging role and sometimes it is used interchangeability. Managing directors represent the company’s philosophy in public and recruiting, training, terminating and delegating employees. However, Executive directors are answerable to the board of directors, join the meetings, listen to their views and decide what is the best move for the company.
This has a been a guide to the top difference between Executive Director vs Managing Director Here we also discuss the Executive Director vs Managing Director key differences with infographics and comparison table. You may also have a look at the following articles to learn more.