A
managing director or
MD is a
director of a
company given special powers by its
articles of association. In most companies, the managing director is the senior
executive director, subordinate only to the
chairman of the board.
The managing director is usually the most senior manager of the company, heading the organisation, and so may have a title such as
Chief Executive Officer or CEO. He may be responsible for the routine operation of the company or this role may be delegated to a separate
Chief Operating Officer, leaving the CEO free to plan and direct the
company's strategy.
The managing director is a leadership role for an organisation and the MD may fulfill a motivational role for the workforce, in addition to an operational role in the running of the business. MDs motivate and mentor members of the management team and chair meetings. The MD leads the company and develops the corporate culture for the organisation.
As the title suggests, the managing director has responsibility for the overall management of a company. This includes the staff, the
customers, the budget, the company's
assets and all other company resources to make the best use of them and increase the company's profitability.
The MD or Senior MD reports to the Board of Directors on a weekly, monthly, quarterly, semi-annual, annual or every decade basis to keep them informed of how the company is doing. The board will offer suggestions and ideas about how to improve the company to the Managing Director. It is the MD's responsibility to implement, improve upon or ignore these ideas.
See also
