Difference Between Manager and Director

and Whole-Time Director

Difference Between Manager and Director

In many
organization, the directors themselves plays the role of a manager, but it does not mean that the
role of the two important ranks of the company is same. A director can be an employee, member
or any other person, who is unanimously chosen by the company’s shareholder at the general
meeting. In contrast, a manager is a paid employee of the company who possesses a substantial
amount of knowledge, expertise, and abilities to manage the organization.

The paramount difference between director and manager is that the director is a manager of all the
managers working in the organization, i.e. production manager, sales manager, human resource
manager, accounts manager, customer relationship manager and so on.

On the other hand, the manager manages the work and performance of a particular division or
department which is handed over to him/her. Take a read of the article presented to you, to learn
some other differences.

Contents: Manager Vs Director

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion

Comparison Chart
 Basis for Manager Director
Comparison
Meaning A manager is the person who is in A director is a person appointed by
charge of the specific unit or the shareholders to monitor and
department of the organization and is regulate the company's activities, as
responsible for its performance. per the vision of the company.
Leadership A manager provides leadership to its A director provides intrinsic
subordinates, by guiding what to do, leadership and direction.
when to do and by whom it is to be
done.
Level of Middle-level management Top-level management
management
Responsible Management Administration
for
Role Executive Decisive
Basic function Implementation of plans and policies. Formulation of plans and policies.
Planning Short-term planning Long-term planning
Accountable to Directors Stakeholders
Ethics and The managers enact the ethics and The directors determine the ethics
Values values in the organization, formulated and values of the organization.
by the directors.
Provisions on There are several duties and No such statutory provisions are
insolvency responsibilities levied on the imposed on directors, when the
directors, at the time of insolvency of company becomes insolvent.
the company.

Definition of Manager

In a real sense, the term manager can be defined as the individual who is responsible for the
governing and controlling the organization. He/She is someone who always has his/her
organization’s overall perspective in the mind and whatever he/she does are aligned towards the
company’s objectives.

A manager is the practitioner of management, which involves making optimum use of resources,
i.e. Men, Machine, Material, Money, and Method, in order to attain the goals of the organization.
He/she is an employee of the organization who is appointed by and reports to the board of directors.
A manager supervises a certain group of people or a unit of the organization and is held responsible
for its performance. He/She is the one who:

• Hires or fires the staff

• Provide training to new employees
• Looks after the day to day operations of the organization.
• Plans and organize tasks and duties.
• Convert corporate goals into the goals of the employees.
• Undertakes periodical performance evaluation.
• Monitors and controls expenses.
• Checks whether the tasks are performed as planned.

Definition of Director

A director can be defined as the elected and appointed member of the organization, whose primary
function is to look after the activities of the organization. They are jointly known as the board of
directors or say board. Board of Directors frames the plans and policies, create strategies, set
objectives and goals of the organization. They are the ones, who decides the success or failure,
along with the culture and practices of the company.

A director is chosen by the company’s shareholder, at the annual general meeting of the company,
who need not be a member or employee of the company. He/She derive their power and authorities
from the law governing it and also from the articles of association of the company.

Role of Director
The directors are the agent of the company and occupy the top position in the corporate hierarchy.
They can enter into the contract on behalf of the company with a third party and thus bind the
company.

Key Differences Between Manager and Director

The difference between manager and director can be drawn clearly on the following grounds:

1. The person who is the chief of the specific unit or division of the organization and is
responsible for its performance is called manager. In contrast, An individual selected by
the shareholders to monitors and regulates the company’s activities, as per the vision of the
company.
2. One of the major function of the manager is to lead its subordinates by supervising or
instructing them what to do, when to do and by whom it is to be done. On the contrary, the
directors provide intrinsic leadership and direction to the managers and other senior staff
of the company.
3. While a manager belongs to middle-level management, director belongs to top-level
management.
4. A manager is responsible for the company’s overall management, i.e. work and
performance of the entire department or unit, which is monitored by them. As against this,
the director looks after the administration of the entire company.
5. The role of a manager is executive and governing in nature. Unlike, the role of the director
is purely decisive and legislative.
6. The primary function of the director is to frame the plans and policies for the organization.
On the other hand, the manager is supposed to implement the policies and plans formulated
by the top management.
7. A manager looks after the day to day operations of the enterprise and thus makes short-
term plans for the company. Conversely, the director makes long-term plans for securing
the company’s future.
8. The managers report to directors while a director reports to the company’s stakeholders.
9. The managers implement the ethics and values in the organization, formulated by the
directors whereas the directors determine the ethics and values of the organization.
10. At the time of insolvency, there are several statutory responsibilities levied on company’s
directors which is not in the case of a manager.

Conclusion

All in all, the scope of a director is greater than a manager, as it is a director who is responsible for
the success or failure of the company. A manager only works as per the orders of the directors.
The director is the key man of the company, who lays down all the plans, policies, procedures,
programs etc. so as to attain the ultimate goals of the organization. On the other hand, a manager
follows the instructions of the Director and supervises his/her subordinates to work in the
pursuance of the goals of the organization.