A company’s organization can be a complicated one because of its web of a network of individuals in different ranks and departments. These rankings might sound similar but are actually different in their own duties and responsibilities. Some of the most confusing titles are the ones in the top of the organizational structure. An example of which is the executive director and managing director.
The top ranks in a company were confused in terms of their powers. Undoubtedly, the managing director is the highest ranking officer which is also linked in between the board of directors and the administration. To put it into perspective, the managing director is like the captain of the ship who is responsible for taking important decisions in hard times. The executive director, on the other hand, has demarcated responsibilities and roles. If there are existing managing director and executive director, the managing ultimately holds the most power in the organization with the roles specified for the executive director. Although the managing director has to listen to the board of directors, still he reigns higher rank than an executive director.
In some cases where an organization has no MD or CEO, the standing highest rank is the executive director which is the head of all employees. This is a reason on why there is a confusion between these two company rankings.