Whenever the talk is about a company or an enterprise there are several people involved in the process of its upbringing and growth. Every individual in the company is assigned different roles and responsibilities according to their skill set and knowledge. After all, a delegation of work is the key to success because a single individual cannot be burdened with all the work and the pressure. Above all, you look into the working scenario, if an individual is assigned with specific designation or task he tends to work and concentrate better.
An individual working in the company is designate with a variety of posts and names like CEO, CMD, MD or COO. All these names indicate the authority and rights carried on by a particular person in the company. These designations also symbolize that an individual carries certain responsibilities over the decisions and other vital elements of the company. At times people get confused with the titles and the names, because every organization uses a different set of protocol and term to address an individual.
Consider this circumstance as an example:
If you take the bank into consideration, VP (Vice President) is less superior than the MD (Managing Director) whereas if you consider a pharmaceutical company VP plays the superior role than that of the MD both in terms of work and payment. Thereby, this tells us very clearly that the title of designation varies according to the nature and characteristics of the company or an enterprise. It also varies depending upon the country and region.
Brief Explanation To The Roles Which Is Often Leaves You Confused !!!!
You might have definitely come across these titles or substitute of these titles in companies. Have you ever wondered ? What makes each of these good authoritative titles sound different ? Well..!!! Each designation has a different set of meaning in the different company. And each title’s nature of work also varies depending upon the company they work in. In some companies CEO (Chief Executive Officer) is termed as President is some companies, but if you have both the titles working for the company then the CEO is considered as superior.
On the other hand, in some companies COO (Chief Operating Officer) reports the CEO and overlooks on the managerial and operational type of work, whereas some companies have the COO within the group who helps in organizing several things and are directed to report the MD or the Executive director.
Well..!!!! The following part would help you understand the different roles and their functions in the company or enterprise:
CEO (Chief Executive Officer):
This is the officer who occupies the highest position in the company. And is liable and responsible for all the crucial and vital decisions, overall operation, policy, resource management, strategy building and other key element of the company. A CEO reports the Board of Directors who are supreme by nature. And he also acts as a connector by channelizing all communication between the board and other members. All the individuals associated with the company are authorized to report to the CEO. The heads of varied departments like:
- Business Development
- Human Resource
- Operations and others.
CMD (Chief Managing Director):
CMD or MD both mean the same in terms of the nature of work and authority. This person is a whole time acting person in the company. He is responsible for the day to day happenings in the concern. MD occupies a prime importance in the growth and working of the company. He has the authority to guide the individuals towards the accomplishment of goals and targets. MD is the chief administrator appointed to manage the company.
COO (Chief Operating Officer):
This officer comes in second line of the flow chart. He is directed to report the CEO of the company. A COO is held responsible to overlook the business operation and the other tasks within the company. He exercises all his responsibility with the consent of the CEO. He communicates the task and duties of every managerial and operational level staff.
Responsibilities and Functions:
A CEO occupies the top stand in the company. He builds and frames the policies and procedure for the functioning of the company. Thereby the main lead for the growth of the enterprise flows from their minds and they are accountable for the success and failure and a big scale. They do not generally take part in the day to day operations and working of the company. He is a Guider or say a Mentor.
Other the other hand, we have Managing Directors (MD) who are the “Action Seekers”. They tend to impart all their effort into the day to day operation. They are accountable to numerous parties like CEO, shareholders and Board of Directors.
And the other key person is the COO who works in lieu of the CEO. Because a CEO cannot concentrate on all the petty issues and also cannot be present in all places.
On the whole, we can conclude saying that every person allocated with a specific title holds a responsibility to accomplish their work in good terms. And every person’s role complements the work of other. Altogether a good combination of effort and hard work is the core reason for a company to flourish and grow to great heights.