Question

In: Economics

What constitutes a managerial employee?

What constitutes a managerial employee?

Solutions

Expert Solution

Answer: Managerial Employees: It is an individual who is engaged in execution and management functions like hire, transfer, promote suspend, dismiss, reward, discipline, address the grievances, etc, and is charged with the responsibility of directing management policies in an organization.

Constitutes a managerial employee:  

  • Managerial functions are those that involve planning, policymaking, strategizing, leading, and controlling.
  • Managerial employees are found in hierarchal levels in the organization. LIke in the top-level managers who frame policies and decision making in organizations as a whole. like CEO( chief executive officer)  
  • The same way the middle-level managers are the link between top and lower-level managers. They are juniors to top managers and upper level to the first-line managers. these juniors are responsible for implementing and controlling plans and strategies developed by top management. At the same time, they are responsible for all the activities of first-line managers. Their main task is to interpret the plans made by the top managers. For this they need to: (i) ensure that their department has the necessary personnel, (ii) assign necessary duties and responsibilities to them
  • the last hierarchy is lower-level managers Foremen and administrators comprise the lower level in the hierarchy of the organization. administrators directly oversee the efforts of the workforce. Their authority and duties are limited according to the plans drawn by the top management. Supervisory management plays a very important role in the organization since they interact with the actual workforce and pass on instructions of the middle management to the workers.
  • Managerial employees have wide duties as they are in charge of steering the overall running of the business activities just like the prime minister and its cabinet has a duty to determine objectives for the people of the country in the same way managers need to   Determining objectives, framing policies, overseeing functioning in line with policies, coordinating, and supervising employees are some of their important responsibilities.
  • managerial employees have a more critical role, they draw higher pay packages as compared to the non-managerial employees within their department.
  • The performance of managerial employees is generally done by other managerial employees who are top-level managers. For example – performance appraisal of Human resource head is done by the CEO.

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