Directors vs. managers

Directors are generally responsible for long-term planning, high-level decision-making and overseeing the work of managers. They may use business analytics to inform new strategies, take a more high-level approach to guiding the company to success and ensure the organization remains competitive. 

Managers are usually focused on day-to-day operations, managing resources and supporting the development of their teams. While directors typically lead the overall strategy, managers often implement the procedures and ensure daily functions are completed effectively.

For example, a company director might develop a new business strategy to expand into a new market. The manager would then be responsible for managing the team, overseeing daily operations and ensuring that the strategy is executed according to plan. 

The director would likely monitor progress through performance reviews and business analytics. Then, the manager would provide feedback and coaching to individual team members.

Understanding where directors and managers fit within the organizational hierarchy can help support effective leadership, communication and collaboration. Recognizing the different roles and responsibilities can help your company successfully develop and implement business strategies, potentially leading to greater efficiency and stronger teams.

What is a manager’s role in an organization?

By overseeing a department, managers ensure the company uses its resources as effectively and efficiently as possible.

A manager’s roles and responsibilities often involve working directly with the team members in that department. They handle personnel responsibilities for the department. This includes managing the employee hiring and firing process, vetting candidates and participating in interviews. 

They might also be responsible for identifying high performers for promotions and assessing the workforce to determine training and development requirements. Managers are often the ones who provide feedback, conduct performance reviews and offer on-the-job coaching. 

Members of the management team are also typically responsible for overseeing the day-to-day functions within their departments to ensure smooth operations. They often spend time handling phone calls to coordinate activities and address issues within their teams. They’re accountable to senior managers and directors.

Levels of management 

In most organizations, managers are in the middle of a hierarchy. Individual contributors and employees without supervisory responsibilities are at the lowest level. Next come managers and then directors. 

However, there are also hierarchies within management. Understanding the different titles within management, such as manager, director and executive, is important for career development and organizational clarity. 

Middle managers are the link between directors and lower-level managers, while supervisory managers directly interact with the workforce and communicate the plans and policies their senior leadership team devises.

Middle managers

Let’s check out how middle managers usually contribute to an organization:

• Motivating employees: Middle managers often act as ambassadors for an organization. They typically help set the tone for the lower-level managers and employees through their attitude, work ethic and recognition of employee achievements.
• Interpreting policies devised by directors: These management professionals take direction from senior managers and relay their expectations to lower-level managers.
• Assigning duties and responsibilities to supervisors: At this level, managers may write job descriptions and delegate employees’ tasks. They may also ensure that supervisors’ roles are aligned with organizational goals.
• Managing performance: Middle managers often conduct performance reviews and handle disciplinary procedures for their teams.
• Identifying areas of overspending: Middle management is usually responsible for curbing overspending, especially regarding labor and consumables costs. They may be involved in developing and monitoring the department’s budget. 
• Acting as a link between senior management and the workforce: Managers at this level can help employees and supervisors understand what’s expected of them. They also typically communicate what’s happening at the ground level to directors.

Supervisory managers

Supervisors, sometimes called team leaders, typically work under middle managers and communicate organizational goals and expectations directly to employees. They may also provide instructions to the people working directly under them and inform middle managers about problems and areas of achievement. 

These are some key responsibilities of a team leader:

• Instructing team members on their roles and responsibilities and supervising them day-to-day
• Assigning work, answering questions and providing encouragement
• Representing employees when they have issues
• Maintaining a safe, positive work environment
• Assisting middle managers when necessary
• Ensuring employees feel valued and appreciated

What is a director’s role in an organization?

Directors usually represent the most senior level of management within a company and supervise the middle managers. Directors are generally responsible for the company’s overall direction and long-term success. They focus on strategy and often work long hours to maintain a business’s health. A director sets the course for the organization and guides long-term strategic initiatives.

Directors are considered part of the executive team and are responsible for setting vision and strategy.

Specific responsibilities of a director include:

• Establishing and reassessing organizational goals: Directors might work with company owners and other relevant groups to shape company culture and devise goals and objectives. They may also develop implementation methods to ensure teams successfully execute strategic plans.
• Writing policies and procedures: Senior managers usually have extensive experience within their industry, which they can use to create procedural frameworks and write policies. They often develop these procedures to ensure legal compliance with various regulations.
• Hiring managers: Directors are often responsible for the recruitment and disciplinary protocols of managers.
• Conducting managers’ performance reviews: They typically analyze performance, conduct reviews and provide feedback to managers.
• Business analytics and intelligence: Company directors may use data and their experience to ensure the business environment is optimal for meeting targets.
• Assembling resources: Top-level managers are often in charge of overseeing and managing budgets, making forecasts and allocating resources to departmental managers.

Directors typically must possess strong leadership skills to inspire teams and drive organizational change.

Organizational structure and hierarchy: Where do directors and managers fit?

Organizational structure often helps clarify roles, responsibilities and reporting lines. For example, employees are followed by lower-level managers. In more senior roles, middle managers coordinate between teams and departments, while senior managers and directors take on broader oversight and long-term planning. The vice president or CEO sets the overall direction for the company.

Directors usually hold senior leadership positions within this hierarchy. As company directors, they typically oversee managers in their particular department or division.

Managers typically report to directors within the typical organizational chart. They supervise the individual contributors who are within their assigned company segment. Higher-level managers may supervise other management team members, such as assistant managers or supervisors, and they typically report to directors.

What are the main differences between managers and directors?

Managers and directors are both responsible for a company’s success and accountable for the activities and outcomes of their part of the organization. Each role may require a distinct set of skills tailored to its specific responsibilities and organizational impact. Here’s how the roles differ.

Risk and responsibility

Due to their higher position within the company, a director’s role sometimes involves more risk and responsibility than a manager’s. Directors typically take on the responsibility of ensuring the department is successful and follows all regulatory guidelines. 

Managers are a major part of achieving that success, but they may not be held to the same high standards as directors. They’re often responsible for overseeing new hires’ training, leading employees on daily tasks and quarterly goals and overseeing employee development through performance reviews and one-on-one or team meetings.

Decision making

Directors often make decisions for the company based on industry knowledge and experience while considering the company’s goals and any applicable regulations. When making decisions, directors may need to consider company and collaborator priorities.

Meanwhile, managers often implement the decisions made by directors. They may have the authority to make some decisions regarding their team, such as hiring decisions. For example, members of senior leadership may request that a new role be added to the team to support company operations. The manager may work with a recruiter to source candidates for this position.

Procedure vs. process

Directors often establish the company’s processes and procedures. They create these processes to ensure the company is as cost-effective and profitable as possible. This might involve identifying bottlenecks, which are delays in a workflow, and solving problems. 

Managers are more likely to train employees on procedures to help ensure they follow them consistently. They might also offer input to directors to help improve workflow procedures and methods. For example, they might suggest rearranging the office ergonomics to make communication between departments more efficient or adding increasing resources, such as workbenches, to a manufacturing floor.

Strategy vs. daily planning

Generally, a director’s role is to focus on strategy to help the company remain competitive. However, they may have relatively little to do with day-to-day planning.

The role of the manager commonly includes implementing the director’s strategic plans for their team. Their day-to-day planning often involves setting short-term goals that align with long-term objectives.

Values and ethics

Directors are often influential in establishing the values and ethics of the company and devising ways to implement them throughout the operation. Managers are often expected to embody the company culture and help translate it to the employees.

Direct vs. indirect support

Directors are considered upper-level management, focusing on strategic oversight rather than direct supervision. The managers that they supervise typically need less direct support. 

Managers often need to be more involved and spend time continuously motivating, encouraging, mentoring and disciplining employees. This can be particularly true in a department with a high turnover rate, where managers often need to train new employees.