GM Vs FM

Absolutely, let's delve into a detailed description of the differences between a General Manager and a
Functional Manager, presented in a tabular format with comprehensive examples:
Aspect General Manager Functional Manager
A General Manager holds a top leadership A Functional Manager is responsible for a

position responsible for the overall success of a specific functional area within the
Role business or division. organization.
The scope of a General Manager's role is A Functional Manager's scope is narrower,

broader, encompassing multiple functions or focusing solely on the activities and
departments. They are concerned with the responsibilities of their designated
Scope holistic success of the organization. functional area.
General Managers make strategic decisions that Functional Managers make operational
shape the entire direction of the organization. decisions that directly affect their specific
These decisions impact various functions and area, often related to day-to-day activities
Decision-Making departments. and processes.
Functional Managers mainly coordinate

General Managers need to coordinate and align activities within their own functional area,
different functions, ensuring they work collaborating with their team to optimize
Coordination together to achieve overall business goals. processes.
An example of a General Manager is the CEO of A Marketing Manager can serve as a

a multinational corporation. They oversee all Functional Manager. They focus exclusively
aspects of the company and make crucial on marketing activities, such as advertising
Example decisions that influence the entire organization. campaigns and market research.
General Managers have responsibilities for the Functional Managers are accountable for
entire profit and loss of the business, setting the performance of their specific function,
growth strategies, and making decisions that ensuring that tasks and objectives within
Responsibilities affect the overall organization. that area are met.
Functional Managers need expertise in

General Managers require strong leadership, their functional area, as they are
strategic thinking, and the ability to manage responsible for optimizing processes and
Skill Emphasis complex business operations. ensuring excellence within that domain.
Functional Managers are assessed based

General Managers are evaluated based on on performance indicators specific to their
Performance overall business performance, including area, such as marketing campaign success
Metrics revenue growth, profitability, and market share. rates or production efficiency.
Accountability General Managers are accountable for the Functional Managers are accountable for
overall performance and success of the entire achieving goals and maintaining efficiency
Aspect General Manager Functional Manager
business or division. within their functional area.
Functional Managers primarily interact

General Managers interact with cross-functional with their team members, peers in other
teams, executive leadership, and external functional areas, and occasionally higher
Interactions stakeholders. management.
Example Illustrations:
General Manager:
Imagine being the General Manager of a global retail company. You would oversee departments like
Marketing, Sales, Finance, and Operations. Your decisions would impact the company's entire strategy,
such as expanding into new markets, launching new product lines, and allocating resources across
various functions.
Functional Manager:
Suppose you're a Functional Manager as the Research and Development Manager within the same retail
company. Your role revolves around managing the R&D team, developing new products, and improving
existing ones. You make decisions related to product innovation, research strategies, and resource
allocation within the R&D department.
In summary, General Managers have a wider leadership role that encompasses multiple functions and
strategic decisions, while Functional Managers focus on a specific area, making operational decisions to
excel within that domain and contribute to the organization's overall success.
Aspect Centralized Structure Decentralized Structure
Concentrated at the top, typically by a

few individuals or a single authority Distributed among multiple individuals or teams
Decision-Making figure. throughout the organization.
Hierarchical, with a clear chain of More distributed authority and autonomy among
Authority command. various levels or units.
Typically follows a top-down Encourages open and bidirectional

Communication communication model. communication among team members and units.
High level of control and oversight from Lower level of central control, with more
Control the top. individual or team autonomy.
Slower to respond to changes or adapt

to new situations due to centralized More agile and responsive to changes in the
Responsiveness decision-making. environment due to distributed decision-making.
Can be efficient in executing

standardized processes and maintaining May sacrifice some efficiency in favor of
Efficiency consistency. adaptability and innovation.
Innovation often depends on the vision Encourages innovation at various levels and
Innovation of top leadership. allows for diverse ideas and experimentation.
Centralized structures can struggle with

Risk risk identification and mitigation due to Decentralized structures may have a better ability
Management limited perspectives. to identify and manage risks at various levels.
Clear lines of accountability but

potential for blame to concentrate at the Multiple points of accountability, which can
Accountability top. enhance responsibility and ownership.
Resource allocation can be more localized,

Resource Resources are allocated by top reflecting the needs and priorities of individual
Allocation management based on their priorities. units or teams.
Decision-making processes may lack

Decision transparency, leading to potential Decisions are often more transparent, fostering
Transparency mistrust. trust and understanding.
Less adaptable to rapidly changing

environments due to centralized More adaptable and flexible in dynamic
Adaptability decision-making. environments due to distributed decision-making.
Examples - Military organizations<br> - Traditional - Decentralized tech companies like Valve

corporations with a CEO and hierarchical Corporation.<br> - Agile project teams in
Aspect Centralized Structure Decentralized Structure
management.<br> - Autocratic software development.<br> - Some open-source

governments. communities like Linux development.
Again, it's essential to note that real-world organizations often fall on a spectrum between centralization
and decentralization, and they may adopt elements of both structures depending on their specific needs
and circumstances.
Geographic-based divisional structure: A geographic-based divisional structure

splits employees by their geographic location and each division functions as their
own company. This division allows businesses to better serve their customer base
because they can adhere to specific local preferences and improve logistics1. One
example of a FMCG company that follows this structure is Nestlé India Limited2.
Nestlé India has four regions: North, South, East and West, each headed by a
regional manager who reports to the managing director. Each region has its own
sales, marketing, distribution and manufacturing functions, and is responsible for
catering to the needs and preferences of the local consumers. For example, Nestlé
India offers different flavors of Maggi noodles in different regions, such as masala
in the North, curry in the South, jhaal in the East and chatpata in the West.
Product-based divisional structure: A product-based divisional structure is when a

structure is departmentalized by product line. This is useful when the products
don’t overlap and are designed, marketed, sold and managed completely
differently3. One example of a FMCG company that follows this structure is ITC
Limited4. ITC Limited has four product divisions: FMCG (including cigarettes,
foods, personal care, education and stationery products), Hotels, Paperboards and
Packaging, and Agri Business. Each division has its own CEO, who reports to the
chairman and managing director of the company. Each division also has its own
R&D, innovation, branding, supply chain and distribution functions, and is
accountable for its own performance and profitability. For example, ITC’s FMCG
division offers a range of products such as Aashirvaad atta, Sunfeast biscuits, Bingo
chips, Yippee noodles, Savlon antiseptic, Classmate notebooks and Wills Lifestyle
apparel.
Market-based divisional structure: A market-based divisional structure refers to an

organization segmented according to industry or customer type. This is useful
when the customers have different needs and expectations from the same
product or service3. One example of a FMCG company that follows this structure
is Hindustan Unilever Limited (HUL)5. HUL has three market divisions: Beauty &
Personal Care, Foods & Refreshment, and Home Care. Each division has its own
president, who reports to the chairman and CEO of the company. Each division
also has its own marketing, sales, innovation and supply chain functions, and is
focused on delivering value to the specific customer segments. For example, HUL’s
Beauty & Personal Care division offers products such as Dove soap, Lakme
cosmetics, Axe deodorant and Pears shampoo for different types of consumers
based on their age, gender, lifestyle and preferences.

GM Vs FM

Uploaded by

Copyright:

Available Formats

GM Vs FM

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

GM Vs FM

Uploaded by

Copyright:

Available Formats

Absolutely, let's delve into a detailed description of the differences between a General Manager and a

Functional Manager, presented in a tabular format with comprehensive examples:

Aspect General Manager Functional Manager

A General Manager holds a top leadership A Functional Manager is responsible for a

The scope of a General Manager's role is A Functional Manager's scope is narrower,

Functional Managers mainly coordinate

An example of a General Manager is the CEO of A Marketing Manager can serve as a

Functional Managers need expertise in

Functional Managers are assessed based

business or division. within their functional area.

Functional Managers primarily interact

Concentrated at the top, typically by a

Typically follows a top-down Encourages open and bidirectional

Slower to respond to changes or adapt

Can be efficient in executing

Centralized structures can struggle with

Clear lines of accountability but

Resource allocation can be more localized,

Decision-making processes may lack

Less adaptable to rapidly changing

Examples - Military organizations<br> - Traditional - Decentralized tech companies like Valve

management.<br> - Autocratic software development.<br> - Some open-source

Geographic-based divisional structure: A geographic-based divisional structure

Product-based divisional structure: A product-based divisional structure is when a

Market-based divisional structure: A market-based divisional structure refers to an

You might also like