Answer #1

In every business organization, the top positions are usually occupied by its board of directors that may also be owners or shareholders of the company. Every board member is considered as leaders in their own field of expertise and that they are held responsible for the very success or failure of the organization. Generally, we call the highest managerial profession as the Chief Executive Officer (or CEO) or a Managing Director. The term CEO is commonly applied in American English associations, and is an equivalent position to the Managing Director (MD). The use of the term Managing Director is popular in the United Kingdom, Australia, India, and New Zealand while CEO is widely used in Canada and the US.

The differences between MD and CEO are mainly categorized by regional disparities. Others view that a CEO and a Managing Director do have differences in roles or functions to play within a firm.

First and foremost, a managing Director is the person responsible for the day-to-day operations of a business organization. In some regions, Managing Directors are only responsible in heading semi-autonomous units that are within a company. A Managing Director is a member of the board, creates and implements business plans, practice decision making, is held accountable for all the operations of the business units among many others.

In contrast to these, a CEO does not concern oneself with the everyday operations of the company. It is known to closely work with the company’s shareholders and investors, and keeps an eye on market fluctuations. A CEO’s responsibilities can either be wide ranging or limited depending on the kind of authority provided by the Board of Directors. CEOs also serves as a company leader, administrator, decision maker, and communicator in a manner that it connects the company through press with the rest of the world. In brief, the differences between an MD and CEO may also be grounded by the company’s jurisdiction.

Answered By: khristine [216 ]