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General Managers and Top Executives

(A list of D.O.T.  codes is available upon request.  See page 468.)

Nature of the Work

Chief executive officer, executive vice president for marketing,
department store manager, financial institution president, brokerage
office manager, college president, school superintendent, and police
chief these are examples of general managers and top executives who,
at the upper end of the management hierarchy, formulate the policies
and direct the operations of the Nation's private firms and
government agencies.  (Top executives who formulate policy in public
administration are discussed in detail in the Handbook statement on
government chief executives and legislators.)

   The fundamental objectives of private organizations are to maintain
efficiency and profitability in the face of shifting consumer tastes
and needs, accelerating technological complexity, economic
interdependence, and domestic and foreign competition.  Similarly,
nonprofit organizations and government agencies must effectively
implement programs subject to budgetary constraints and shifting
public preferences.  General managers and top executives try to
ensure that their organizations meet these objectives.

   An organization's general goals and policies are established by the
chief executive officer in collaboration with other top executives,
usually executive vice presidents, and often with a board of
directors.  In a large corporation, a chief executive officer may
frequently meet with top executives of other corporations, domestic
or foreign governments, or outside consultants to discuss matters
affecting the organization's policies.  Although the chief executive
officer retains ultimate authority and responsibility, the chief
operating officer may be delegated the authority to oversee
executive vice presidents who direct the activities of various
departments and are responsible for implementing the organization's
policies in these departments.

   The scope of executive vice presidents' responsibility depends
greatly upon the size of the organization.  In large corporations,
their duties may be highly specialized.  For example, they may
oversee general managers of marketing, sales promotion, purchasing,
finance, personnel, training, industrial relations, administrative
services, electronic data processing, property management,
transportation, or legal services departments.  (Some of these and
other managerial occupations are discussed elsewhere in this section
of the Handbook.) In smaller firms, an executive vice president
might be responsible for a number of these departments.

   General managers, in turn, direct their individual department's
activities within the framework of the organization's overall plan.
With the help of supervisory managers and their staffs, general
managers oversee and strive to motivate workers to achieve their
department's goals as rapidly and economically as possible.  In
smaller organizations, such as independent retail stores or small
manufacturers, a general manager may be responsible for purchasing,
hiring, training, quality control, and all other day-to-day
supervisory duties.  (See the Handbook statement on retail
managers.)

   Corporate restructuring and downsizing will limit employment growth
among general managers and top executives.

Working Conditions

General managers in large firms or government agencies are provided
with offices close to the departments they direct and to the top
executives to whom they report.  Top executives may be provided with
spacious offices and often meet and negotiate with top executives
from other corporations, government, or other countries.  Long
hours, including evenings and weekends, are the rule for most top
executives and general managers, though their schedules may be
flexible.  Though still uncommon, more executives are accepting
temporary positions, sometimes only working for the duration of one
project or several months.

   Substantial travel is often required.  General managers may travel
between national, regional, and local offices to monitor operations
and meet with other executives.  Top executives may travel to meet
with their counterparts in other corporations in the country or
overseas.  Many attend meetings and conferences that are sponsored
by industries and associations and provide invaluable opportunities
to meet with peers and keep abreast of technological and other
developments.  Perquisites such as reimbursement of an accompanying
spouse's travel expenses may help executives cope with frequent or
extended periods away from home.

   In large corporations, job transfers between the parent company and
its local offices or subsidiaries, here or abroad, are common.

   With increasing domestic and international competition, general
managers and top executives are under intense pressure to attain,
for example, ever higher production and marketing goals.  Executives
in charge of poorly performing companies or departments often find
that their jobs are in jeopardy.

Employment

General managers and top executives held nearly 2.9 million jobs in
1992.  They are found in every industry wholesale and retail trade
and services industries employ over 6 out of 10 general managers and
top executives.

Training, Other Qualifications, and Advancement

The educational background of managers and top executives varies as
widely as the nature of their diverse responsibilities.  Many
general managers and top executives have a bachelor's degree in
liberal arts or business administration.  Their major often is
related to the departments they direct for example, accounting for a
general manager of finance or computer science for a general manager
of information systems.  Graduate and professional degrees are
common.  Many managers in administrative, marketing, financial, and
manufacturing activities have a master's degree in business
administration.  Managers in highly technical manufacturing and
research activities often have a master's or doctoral degree in an
engineering or scientific discipline.  A law degree is mandatory for
general managers of corporate legal departments, and hospital
administrators generally have a master's degree in health services
administration or business administration.  (For additional
information, see the Handbook statement on health services
managers.) College presidents and school superintendents generally
have a doctorate, often in education administration; some have a law
degree.  (See the Handbook statement on education administrators.)
On the other hand, in some industries, such as retail trade,
competent individuals without a college degree may become general
managers.

   Many general managers in the public sector have a liberal arts
degree in public administration or in one of the social sciences
such as economics, psychology, sociology, or urban studies.  For
others, experience is still the primary qualification.  For park
superintendents, a liberal arts degree also provides a suitable
background.  Police chiefs are graduates of police academies, and a
degree in police science or a related field is increasingly
important.  Similarly, fire chiefs are graduates of fire academies,
and a degree in fire science is gaining in importance as well.  For
harbormasters, a high school education and experience as a harbor
pilot are sufficient.

   Most general manager and top executive positions are filled by
promoting experienced, lower level managers.  Some companies prefer
that their top execuitves have specialized backgrounds in finance or
marketing, for example.  However, certain qualities, including
leadership, self-confidence, motivation, decisiveness, flexibility,
the ability to communicate effectively, and sound business judgment
are far more important.  In small firms, where the number of
positions is limited, advancement to a higher management position
may come slowly.  In large firms, promotions may occur more quickly.

   Advancement may be accelerated by participation in company training
programs to broaden knowledge of company policy and operations.
Attendance at national or local training programs sponsored by
numerous industry and trade associations and continuing education,
normally at company expense, in colleges and universities can
familiarize managers with the latest developments in management
techniques.  Every year, thousands of senior managers, who often
have some experience in a particular field such as accounting,
engineering, or science, attend executive development programs to
facilitate their promotion from functional specialists to general
managers.  In addition, participation in interdisciplinary
conferences and seminars can expand knowledge of national and
international issues influencing the manager's firm.

   Persons interested in becoming general managers and top executives
must have highly developed personal skills.  A highly analytical
mind able to quickly assess large amounts of information and data is
very important.  The ability to consider and evaluate the
interrelationships of numerous factors and to select the best course
of action is imperative.  In the absence of sufficient information,
sound intuitive judgment is crucial to reaching favorable decisions.
General managers and top executives also must be able to communicate
clearly and persuasively with customers, subordinates, and other
managers in their firm.

   General managers may advance to top executive positions, such as
executive or administrative vice president, in their own firm or to
a corresponding general manager position in a larger firm.
Similarly, top-level managers may advance to peak corporate
positions chief operating officer and, finally, chief executive
officer.  Chief executive officers and other top executives may also
become members of the board of directors of one or more firms.  Some
general managers and top executives with sufficient capital and
experience establish their own firms or become independent
consultants.

Job Outlook

Employment of general managers and top executives is expected to
grow more slowly than the average for all occupations through the
year 2005 as companies restructure managerial hierarchies in an
effort to cut costs.  General managers and top executives may be
more affected by these cost-cutting strategies than in the past,
thus moderating employment growth.

   Although this is a large occupation, and many openings will occur
each year as executives transfer to other positions, start their own
businesses, or retire, competition for top managerial jobs will be
keen.  Many executives who leave their jobs transfer to other
executive or managerial positions, limiting openings for new
entrants, and large numbers of layoffs resulting from downsizing and
restructuring will lead to an ample supply of competent managers.
Moreover, the aging of the workforce will result in more senior
middle managers vying for a limited number of top executive
positions.

   Projected employment growth of general managers and top executives
varies widely among industries.  For example, employment growth is
expected to be faster than average in all services industries
combined, but slower than average in all finance, insurance, and
real estate industries combined.  Employment of general managers and
top executives is projected to decline in manufacturing industries
overall.

   Managers whose accomplishments reflect strong leadership qualities
and the ability to improve the efficiency or competitive position of
their organizations will have the best opportunities in all
industries.  In an increasingly global economy, certain types of
experience, such as international economics, marketing, or
information systems, or knowledge of several disciplines, will also
be advantageous.

Earnings

General managers and top executives are among the highest paid
workers in the Nation.  However, salary levels vary substantially
depending upon the level of managerial responsibility, length of
service, and type, size, and location of the firm.

   At the highest level, chief executive officers (CEO) are extremely
well paid.  According to a survey by Fortune magazine, CEO's at 200
major companies averaged $3.2 million in 1993, including bonuses and
stock awards, which are often tied to performance.  According to a
similar survey of 365 companies by Business Week magazine, CEO
salaries and bonuses averaged $1.1 million in 1992; total
compensation, including stock options and dividends, averaged $3.8
million.  Salaries are related to the size of the corporation a top
manager in a very large corporation can earn significantly more than
a counterpart in a small firm.

   Salaries also vary substantially by type and level of
responsibilities and by industry.  According to a salary survey by
Robert Half International, a staffing services firm specializing in
accounting and finance, senior vice presidents/heads of lending in
banks with $1 billion and higher in assets earned about $200,000 in
1993.  Based on a survey sponsored by the Society for Human Resource
Management, the average base salary for top human resources managers
was about $136,000 in 1993.  A survey by Network World newsweekly
found that upper level computer network managers including chief
information officers, vice presidents, and directors averaged
$83,900 in 1993; mid-level managers including network, data
communications, telecommunications, and technical support managers
averaged $59,400 in that year.  Among top network managers, those in
the health care industry were the highest paid, averaging $142,500
in 1993, while those in wholesale/retail trade were the lowest paid,
averaging $56,000.  Among other industries, top network managers in
manufacturing/finance and utilities were among the highest paid,
while those in education and government were among the lowest paid.

   Company-paid insurance premiums, physical examinations, executive
dining rooms, use of company cars, paid country club memberships,
and expense allowances are among the benefits enjoyed by some
general managers and top executives in private industry.

Related Occupations

General managers and top executives plan, organize, direct, control,
and coordinate the operations of an organization and its major
departments or programs.  The members of the board of directors and
supervisory managers are also involved in these activities.
Occupations in government with similar functions are governor,
mayor, postmaster, commissioner, director, and office chief.

Sources of Additional Information

   For a wide variety of information on general managers and top
executives, including educational programs and job listings,
contact:

   American Management Association, Management Information Service, 135
West 50th St., New York, NY 10020.

   National Management Association, 2210 Arbor Blvd., Dayton, OH 45439.

   Information about general managers and top executives in specific
industries may be obtained from organizations listed under a number
of headings for example, administration, administrators, directors,
executives, management, managers, and superintendents in various
encyclopedias or directories of associations in public libraries.