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Business
Managers
second edition
Careers in Focus: Business Managers, Second Edition
All rights reserved. No part of this book may be reproduced or utilized in any
form or by any means, electronic or mechanical, including photocopying, record-
ing, or by any information storage or retrieval systems, without permission in
writing from the publisher. For information contact
Ferguson
An imprint of Infobase Publishing
132 West 31st Street
New York NY 10001
MP MSRF 10 9 8 7 6 5 4 3 2 1
Careers in Focus: Business Managers
Careers in Focus: Business Managers
The Job
Management is found in every industry, including food, clothing,
banking, education, health care, and business services. All types of
businesses have managers to formulate policies and administer the
firm’s operations. Managers may oversee the operations of an entire
company, a geographical territory of a company’s operations, or a
specific department, such as sales and marketing.
Business managers direct a company’s or a department’s daily
activities within the context of the organization’s overall plan. They
implement organizational policies and goals. This may involve devel-
oping sales or promotional materials, analyzing the department’s
budgetary requirements, and hiring, training, and supervising staff.
Business managers are often responsible for long-range planning
for their company or department. This involves setting goals for
the organization and developing a workable plan for meeting those
goals.
A manager responsible for a single department might work to
coordinate his or her department’s activities with other departments.
A manager responsible for an entire company or organization might
work with the managers of various departments or locations to
oversee and coordinate the activities of all departments. If the busi-
ness is privately owned, the owner may be the manager. In a large
Business Managers
Requirements
High School
The educational background of business managers varies as widely
as the nature of their diverse responsibilities. Many have a bachelor’s
degree in liberal arts or business administration. If you are inter-
ested in a business managerial career, you should start preparing
in high school by taking college preparatory classes. According to
Business Managers
Postsecondary Training
Business managers often have a college degree in a subject that per-
tains to the department they direct or the organization they adminis-
ter; for example, accounting or economics for a business manager of
finance, computer science for a business manager of data processing,
engineering or science for a director of research and development. As
computer usage grows, many managers are expected to have experi-
ence with the information technology that applies to their field.
Graduate and professional degrees are common. Bowe, along
with many managers in administrative, marketing, financial, and
manufacturing activities, has a master’s degree in business admin-
istration. Managers in highly technical manufacturing and research
activities often have a master’s degree or doctorate in a technical or
scientific discipline. A law degree is mandatory for business manag-
ers of corporate legal departments, and hospital managers generally
have a master’s degree in health services administration or busi-
ness administration. In some industries, such as retail trade or the
food and beverage industry, competent individuals without a college
degree may become business managers.
Other Requirements
There are a number of personal characteristics that help one be a
successful business manager, depending upon the specific respon-
sibilities of the position. A manager who oversees other employ-
ees should have good communication and interpersonal skills. The
ability to delegate work is another important personality trait of
a good manager. The ability to think on your feet is often key in
business management, according to Bowe. “You have to be able
to think extremely quickly and not in a reactionary manner,” he
says. Bowe also says that a certain degree of organization is impor-
tant, since managers often manage several different tasks simulta-
neously. Other traits considered important for top executives are
intelligence, decisiveness, intuition, creativity, honesty, loyalty, a
10 Careers in Focus: Business Managers
Exploring
To get experience as a manager, start with your own interests.
Whether you’re involved in drama, sports, school publications, or
a part-time job, there are managerial duties associated with any
organized activity. These can involve planning, scheduling, manag-
ing other workers or volunteers, fund-raising, or budgeting. Local
businesses also have job opportunities through which you can get
firsthand knowledge and experience of management structure. If
you can’t get an actual job, at least try to schedule a meeting with
a business manager to talk with him or her about the career. Some
schools or community organizations arrange job-shadowing, where
you can spend part of a day “shadowing” a selected employee to see
what his or her job is like. Joining Junior Achievement (http://www.
ja.org) is another excellent way to get involved with local businesses
and learn about how they work. Finally, take every opportunity to
work with computers, since computer skills are vital to today’s busi-
ness world.
Employers
There are approximately 2.2 million general and operations man-
agers and executives employed in the United States. These jobs are
found in every industry. However, approximately 75 percent work
in service industries.
Virtually every business in the United States has some form of
managerial positions. Obviously, the larger the company is, the more
managerial positions it is likely to have. Another factor is the geo-
graphical territory covered by the business. It is safe to say that com-
panies doing business in larger geographical territories are likely to
have more managerial positions than those with smaller territories.
Starting Out
Generally, you will need a college degree, although many retail
stores, grocery stores, and restaurants hire promising applicants who
Business Managers 11
have only a high school diploma. Job seekers usually apply directly
to the manager of such places. Your college career services office is
often the best place to start looking for these positions. A number of
listings can also be found in newspaper help wanted ads.
Many organizations have management trainee programs that col-
lege graduates can enter. Such programs are advertised at college
career fairs or through college job placement services. Often, how-
ever, these management trainee positions in business and government
are filled by employees who are already working for the organization
and who demonstrate management potential. Jeff Bowe suggests
researching the industry you are interested in to find out what might
be the best point of entry for that field. “I came into the printing
company through customer service, which is a good point of entry
because it’s one of the easiest things to learn,” he says. “Although it
requires more technical know-how now than it did then, customer
service is still not a bad entry point for this industry.”
Advancement
Most business management and top executive positions are filled by
experienced lower-level managers and executives who display valu-
able managerial traits, such as leadership, self-confidence, creativity,
motivation, decisiveness, and flexibility. In small firms, advance-
ment to a higher management position may come slowly, while pro-
motions may occur more quickly in larger firms.
Advancement may be accelerated by participating in different
kinds of educational programs available for managers. These are
often paid for by the organization. Company training programs
broaden knowledge of company policy and operations. Training
programs sponsored by industry and trade associations and continu-
ing education courses in colleges and universities can familiarize
managers with the latest developments in management techniques.
In recent years, large numbers of middle managers were laid off as
companies streamlined operations. Competition for jobs is keen,
and business managers committed to improving their knowledge of
the field and of related disciplines—especially computer information
systems—will have the best opportunities for advancement.
Business managers may advance to executive or administrative
vice president. Vice presidents may advance to peak corporate posi-
tions—president or chief executive officer. Presidents and chief exec-
utive officers, upon retirement, may become members of the board
of directors of one or more firms. Sometimes business managers
establish their own firms.
12 Careers in Focus: Business Managers
Earnings
Salary levels for business managers vary substantially, depending
upon the level of responsibility, length of service, and type, size, and
location of the organization. Top-level managers in large firms can
earn much more than their counterparts in small firms. Salaries in
large metropolitan areas, such as New York City, are higher than
those in smaller cities.
According to the U.S. Department of Labor, general and operations
managers had a median yearly income of $85,230 in 2006. The low-
est 10 percent of this group earned approximately $42,000 annually.
To show the range of earnings for general and operations managers,
however, the department notes that those in the computer and periph-
eral equipment manufacturing industry had annual mean earnings of
$139,800; those in architectural, engineering, and related services,
$120,620; and those employed in local government, $79,130.
Chief executives earned a mean salary of $144,600 annually in
2006, according to the U.S. Department of Labor. Similarly, sala-
ries varied by industry. For example, the mean yearly salary for
those involved in the management of companies and enterprises was
$166,010, while those employed by financial investment firms earned
a mean salary of $185,540. The business publication The NonProfit
Times, which conducts periodic salary surveys, reports the aver-
age earnings for CEOs and executive directors at nonprofit social
services and welfare organizations were approximately $100,118
in 2006. Some executives, however, earn hundreds of thousands of
dollars more than this annually.
Benefit and compensation packages for business managers are
usually excellent, and may even include such things as bonuses, stock
awards, company-paid insurance premiums, use of company cars,
paid country club memberships, expense accounts, and generous
retirement benefits.
Work Environment
Business managers are provided with comfortable offices near the
departments they direct. Top executives may have spacious, lavish
offices and may enjoy such privileges as executive dining rooms, com-
pany cars, country club memberships, and liberal expense accounts.
Managers often travel between national, regional, and local
offices. Top executives may travel to meet with executives in other
corporations, both within the United States and abroad. Meetings
and conferences sponsored by industries and associations occur
regularly and provide invaluable opportunities to meet with peers
Business Managers 13
Outlook
Overall, employment of business managers and executives is expected
to experience little or no growth through 2016, according to the U.S.
Department of Labor. Many job openings will be the result of man-
agers being promoted to better positions, retiring, or leaving their
positions to start their own businesses. Even so, the compensation
and prestige of these positions make them highly sought-after, and
competition to fill openings will be intense.
Projected employment growth varies by industry. For example,
employment in the professional, scientific, and technical services
industry should increase faster than the average, while employment
in some manufacturing industries is expected to decline.
The outlook for business managers is closely tied to the overall
economy. When the economy is good, businesses expand both in
terms of their output and the number of people they employ, which
creates a need for more managers. In economic downturns, busi-
nesses often lay off employees and cut back on production, which
lessens the need for managers.
Business managers who have knowledge of one or more foreign
languages (such as Spanish or Mandarin) and experience in market-
ing, international economics, and information systems will have the
best employment opportunities.
15
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