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VP and GM

The Roles of the VP and GM

If you are confused about who a General Manager (GM) is and who a Vice President (VP) is, you are not alone. Largely because there isn’t a standard structure all companies follow for the roles of the VP and GM. Depending on the size of the company and their requirements, C-level roles are adjusted to fit that particular company. That includes the roles of the VP and GM.

But there are some guidelines.

Roles of Vice President and General Manager

Who is a VP? what does a VP do?

A VP is among the senior executives at any organization. That is a fact. They might be one or two positions from the CEO or the President of the company and will be reporting to one or both. If the VP is second to the CEO then they are in charge in the case that the CEO is unavailable or indisposed.

A VP’s responsibilities are usually similar to that of a CEO when they are second to the CEO. And when they are second to a President separate from the CEO, then they might manage the strategic goals of the company.

The fundamental job of a VP stems from the responsibilities of a manager. The big difference is that a manager would be in charge of their team or a project, while a VP is in charge of the whole company. But the responsibilities remain quite similar, but at a larger scale. While this is the general rule, a VP’s responsibilities will change depending on the company and the role of their peers within the company.

A VP can also be the leader or head of a function within the company. There could be a VP of Marketing, VP of Sales, VP of Operations, VP of Human Resources, etc. There could also be different ranks in multinational or larger organizations. At the highest position you will have an Executive VP followed by Senior VP, VP, Assistant VP, and Associate VP. It is not necessary that if there are ranking titles all of these will be present at a single company. Again, it depends on the size, structure, and requirements of that company. While all these different ranks will have the same or similar functions, their area of focus and scale will differ.

The day-to-day activities of a VP may include signing documents, approving paperwork, and overseeing other managers. They will also work on the long-term strategic goals of the company ensuring the goals are being worked towards.

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Who is a GM? what is the role of GM?

There are different levels at which a GM is appointed. A GM at a large company is responsible for the company’s profit and loss. This kind of GM overlooks the daily operations such as, delegating, organizing, planning, tracking goals, etc. They are also in charge of the marketing and sales that is connected to the profit and loss of the company.

A GM can be from a variety of backgrounds, such as a regional head, a product manager, a country, or zone manager. In some cases the CFO, COO, or CMO can also be the GM. At some companies the President and the GM are the same person.

On the other hand a GM can also be at a much smaller level. But with a role almost exactly like a CEO’s. So, you could have a GM on an outlet or branch of a company, and they will be the top most level of authority at that branch. Their duties will be almost exactly the same as a CEO’s, except it is limited to that one branch or outlet. They report to someone who might be a manager for a few outlets, most likely a Managing Director. And their goals will also come from someone higher up in the hierarchy.

A GM is very involved in everyday activities. They will overlook all the daily activities of that branch such as, policies, operations, sales, business, strategic goals, budgets, etc. As the title suggests they manage everything. Including the employees. They are entirely responsible for that branch or outlet. They are the CEO for that branch.

Difference – General Manager vs Vice President

The responsibilities of General Managers vs Vice Presidents or of GM vs VP are comparable – with slightly different roles. A GM is a title that can travel up and down the hierarchy at many different levels. While, a VP doesn’t branch out quite as much. They both handle a variety of responsibilities, but a GM spreads out a lot more and is much more involved in day-to-day activities. The roles of the VP and GM are unique in their own right and contribute to the company in their own way.

Read: Is a VP Position Higher Than a Director?

FAQs

Q. What is a VP or Vice President?
A. A VP is one among the senior most executives at any given organization. They are usually one or two positions from the CEO depending on the structural hierarchy of that company.

Q. What is a GM or General Manager?
A. A GM has various implications. There are different levels at which a GM is appointed. At a large company, a GM is responsible for the company’s profit and loss. But a GM could also be at a much smaller level like that of an outlet or branch of a company.

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