Are you confused about whether to go for a general manager role or an operational manager? This post is your guide to help you decide by exploring the differences between both jobs. We will explain all the details about these differences, from their job description, roles and responsibilities to salary expectations.
Understanding the differences between general manager vs. operations manager’s roles can help you decide which is most compatible with your professional goal. In an overview, a general manager is the one who oversees the performance of the whole organization. In comparison, an operations manager is more focused on internal management.
General Manager Job Description
A general manager is a senior-level executive who oversees the complete management of the organization. The role has a broad scope of roles and responsibilities concerning every department. These include planning and directing, financial management, leadership roles, and communicating with all internal and external stakeholders.
In many small companies, the general manager has to assume the top role, leading the business forward while ensuring every department works according to organizational goals.
Operations Manager Job Description
An operations manager is a departmental-level executive who has to ensure that the day-to-day activities of the organization are running smoothly and cost-effectively. It is a tactical job that focuses on the effectiveness of processes within the organization that contribute to its effectiveness.
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General Manager vs. Operations Manager: Key Differences
1. Roles and Responsibilities
A general manager has a broad scope of roles and responsibilities towards all departments in the organization. They have to focus on planning, organizing, directing, and controlling and ensure that every department works efficiently and completes its responsibilities towards achieving organizational goals.
The operations manager is more concerned with handling the regular, day-to-day operations on a daily basis. Ensures that every internal process of their assigned departments runs efficiently and maintains the proper standard.
2. Position in the Organizational Structure
A general manager is a higher-level position in the organizational hierarchy. They usually report directly to the CEO or the COO of the organization. General managers are also authorized to make decisions for multiple functions and departments.
On the other hand, operational managers report to their general manager or department head. Moreover, they are responsible for handling operational-level tasks.
3. Strategic vs. Operational Decision-Making
General managers have to make decisions on a much broader scale that can affect the entire organization. These include decisions about marketing campaigns, product launches, expansion and more.
Operations managers have a much narrowing and focused area of decision-making. Their decisions are focused on improving daily internal processes. These include supply chain management, cost reduction, and production efficiency.
4. Skills and Competencies Required
Although both positions require leadership and management skills, the specifics differ. The general manager must be proficient in financial planning, strategic planning management, and general organizational leadership.
However, operations managers should excel in operational areas such as process optimization, project management, data analysis, and problem-solving to ensure operational efficiency.
5. Required Educational Background and Qualifications
General Manager: For the position of GM, a bachelor’s in Business Administration, Management, Finance, or a related field is needed. An advanced degree like a Master’s in Business Administration can enhance your profile for bigger organizations. Certificates in management, leadership, strategy, and executive management may further improve an applicant’s credentials.
Operations Manager: It requires a bachelor’s in business studies, operations, or engineering. An advanced degree like an MBA in operations management is also a huge plus. Certificates in project management (like PMP) and Six Sigma are also valuable in enhancing operational skills.
6. Salary Difference
General managers often have a higher salary average because of their wide range of responsibilities and higher hierarchy positions. General Manager compensation typically involves a larger base salary, bonuses based on performance, stock options, and incentives for executives, particularly in bigger companies. The average salary of a GM in the United States is $167,984 per annum by July 2024.
Operations managers usually have a moderate level of salary potential as their responsibility is typically on an operational level. They can receive bonuses tied to operational performance. The average salary for an operation manager is $118,987 annually by August 2024.
7. Career Advancement and Growth Opportunities
General managers have an advantage because of the leadership experience they gain that can help them advance to the company’s top in roles like Chief Executive Officer (CEO), Chief Operating Officer (COO), or other senior leadership positions. The exposure they gain in GM’s position helps them increase their decision-making skills and polish their leadership, making them a valuable asset in the industry with access to higher-level roles.
Operations managers also have the chance to rise to the top of the organization and become the Chief Operating Officer (COO), Director of Operations, or Vice president of operations. Their ability to optimize processes and direct resources makes them highly valuable in roles where they must provide strong operational leadership.
Final Statement
Becoming a General Manager (GM) or Operations Manager (OM) depends on your skills and career goals. If you’re competent and keen on organizing, supervising several departments, and overseeing the company’s vision, then the GM position is a good fit for you. The GM job allows you to develop into a leader, climb the ranks to the top of the business, and establish the direction for the company’s future.
Being an OM is a perfect choice If you’re looking for a way to oversee daily operations, enhance procedures and increase efficiency.
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FAQs
What is a higher operations manager or general manager?
General managers are at a higher level than operations managers in an organizational hierarchy. This is because GM’s responsibilities are much broader, including supervising many departments and concentrating on the overall strategy. Whereas OMs oversee daily operations in particular departments or regions.
What positions are higher than a general manager?
Posts that are higher than General Manager generally include executive positions like the Vice President (VP) and Chief Operating Officer (COO) or Chief Executive Officer (CEO), who have the responsibility for overall decisions and strategic direction across the company.
Is the operations manager in a high position?
Yes, an operations manager is a high-level position in an organization that is responsible for directing and improving daily operations in the company.