Definition of Director: Duties, Authorities, Qualifications and Special Expertise

Director is – For those of you who work in an institution or company, you must be familiar with the figure of a director. Often they have authority and privileges that not all groups or company employees have. However, not many people know what the function of the director is. The following is a more complete explanation of the director.

Definition of Director

According to the Big Indonesian Dictionary

Director / director·rector / /director/ n 1 highest leader in a company; 2 middle school principals; 3 heads of directorates (within departments); 4 people in charge of providing guidance through direction, advice, assistance, information, and so on;

According to the Financial Services Authority

One of the members of the board of directors, namely the person appointed and elected in accordance with the articles of association or the provisions that apply to lead the company.

In general, the director is someone who leads or supervises certain areas of a company. Directors usually report company developments directly to the vice president or to the CEO directly to inform about organizational developments. Not only directors, large companies sometimes have assistant directors or deputy directors.

In some companies the executive director is equivalent to the vice president or senior director position. Companies also have regional directors and area directors to assist the chief executive. Regional directors are present in companies which are organized by location and have departments under them. They are responsible for the operations of their respective divisions or areas.

Director Duties

The duties of a person who serves as a director of a company vary from company to company. But in general the duties of a director are as follows.

  1. Manage the business and develop business strategies for the progress of the company
  2. Evaluate the performance of employees in the company so that all employee performance can be improved or maintained.
  3. Determining and selecting staff who help in the company.
  4. Approve the company budget
  5. Send regular reports to shareholders
  6. Conduct meetings with all levels of the company
  7. Implementing the company’s vision and mission

Director’s Authority

Not only carrying out their duties, the Director also has responsibilities that must be carried out.

  1. Representing the company to cooperate with other institutions both domestic and foreign institutions
  2. Representing the company in court or legal cases on a domestic or international scale.
  3. Manage and manage the interests of the company in accordance with the aims and objectives in accordance with the policies previously made.
  4. Carry out management in accordance with the appropriate policies that have been stipulated in the Limited Liability Company Law and the company’s articles of association.

Director Responsibilities

A director is fully responsible for the loss of a PT or company caused by negligence in managing a company that is not in accordance with the regulations, goals and guidelines and the company’s articles of association. This does not apply if he has made his company arrangements in accordance with all applicable company regulations and legal regulations. This policy is in accordance with Law No. 40 of 2007 concerning Limited Liability Companies.

Types of Director’s Special Duties

A director has several specific tasks that are intended to be able to carry out his duties and positions in more detail and detail. The special duties of the director are as follows.

1. Main Director

The President Director is a person authorized to formulate and determine a general policy and program of the company or organization in accordance with the limits of authority granted by a governing body or similar governing body such as the board of commissioners.

The main director’s job is to be the coordinator, communicator, decision maker, leader, manager, and executor in a company. The real form of the duties of a director is as follows.

  • Lead and be responsible for running the company
  • Responsible for losses that may be experienced by the company, also responsible for the profits that the company gets
  • Determine, formulate, and decide a policy in the company
  • Plan, develop and manage various sources of income and expenditure of the company’s assets
  • Develop and establish various strategic strategies so as to achieve the company’s vision and mission
  • Coordinate and supervise all activities in the company, from administration, staffing to procurement of goods
  • Appoint and dismiss company employees
  • Become a company representative in relation to the outside world of the company

director of Operations

The operational director is someone who has responsibility for all operational activities of the company. This includes the planning process to operational implementation.

The duties of the operational director besides assisting the duties of the main director are carrying out operational tasks related to the company’s operations. The real form of the duties of an operational director is as follows.

  • Responsible for operational processes, production, projects to production quality
  • Responsible for the development of product quality and the employees involved
  • Develop a strategy in meeting the company’s targets, and how to achieve these targets
  • Checking, supervising and determining all needs in the company’s operational processes
  • Plan, determine, supervise, make decisions and coordinate in terms of the budget for the company’s operations
  • Supervise all employees and ensure that they carry out their duties as ordered.
    Make activity reports to be given to the main director.

3. Finance Director

The finance director has almost the same duties as other directors, but the scope of his duties includes the finance department. Following are some of the duties of the finance director.

  • Responsible for the financial performance of a company
  • Responsible for making regular company financial reports
  • Supervise the company’s financial reports from all divisions
  • Developing strategies and increasing the company’s financial growth
  • Minimizing financial risks that can harm the company
  • Seeing the company’s opportunities to achieve profits

4. Director of Personnel

The personnel director is the person in charge of developing a personnel planning system and controlling a policy for employees. In addition, the director of personnel also serves the administrative needs of his employees and carries out training for the development of administrative staff.

The duties of the personnel director are as follows.

  • Handle and see the workings of all employees in the company.
  • Act as a liaison between management and staff and assist in their communications.
  • Notify all employees when there is a change in existing policies within the company.
  • Designing programs or events that will increase employee morale is useful for increasing company productivity.
  • Supervise all terminations in the employment relationship of employees.
  • Answer all employee related questions about salary.

5. Director of Marketing

The marketing director is responsible for marketing operations with the whole company such as planning, directing and overseeing all marketing activities within the company.

Marketing Director Duties:

  • Identifying, developing and evaluating marketing strategies that have been implemented based on the company’s vision and mission and market needs.
  • Formulate, mobilize and coordinate policies related to the marketing of goods or services.
  • Establish intensive cooperation with promotion managers to discuss promotional materials as desired.
  • Developing a pricing strategy according to market needs and the company’s promotional objectives.
  • Monitor the list of product or service offerings from competitors.
  • Maybe not only the positions above, but there are companies that have other directors according to the needs of each company.

Special Expertise to Support the Director’s Duties

1. Leadership

One of the special skills that must be possessed by a company leader is leadership or leadership. Leadership or leadership is even the first thing a director must have. The spirit of leadership must indeed be owned by a leader of an institution.

With this leadership spirit, a director can of course supervise its members. He can guide his members in doing all kinds of work.

Apart from that, with his leadership spirit, he can certainly coordinate all work teams in the company. Finally, each member of the company will be able to work well according to their respective roles and duties.

2. Communication

The second special skill that must be possessed by a director is communication skill or skill. Basically communication will occur and must be carried out by company leaders to various parties. Starting from communicating with company owners to communicating with company employees.

Communication must also be carried out with several clients or work partners that can affect corporate relations. In addition, communication is also needed to be able to relate to residents around the company.

Communication is also an important part that must exist in the director. Communication skills also need to be owned by the director so that he can properly lead company meetings so that all knowledge or knowledge can later be communicated to all members of the company more easily.

3. Creativity

Furthermore, the skill that must be owned by a company leader is creativity. A company leader must be able to create various creative ideas to develop the company. There are many creative ideas that can be implemented by a company leader in an effort to develop the company he leads.

For example, such as a creative idea to develop a marketing system that is used in the company. Or maybe creative ideas in other fields. With this creativity, of course the company will grow.

4. Teamwork

The next skill that a company leader should have is being able to work in a team. Or it could also be a company leader who has a good cooperative attitude. Everyone needs to have the skill to work in a team, especially a leader. Trust in colleagues or teams also needs to be fostered so that the attitude of cooperation can be very well established.

Besides that, self-control or emotional control is also needed when working together in a team so that it can reduce the risk of bickering or conflict. Working together in a team can actually train other positive attitudes such as having a big heart or wanting to give in and fostering mutual caring and other attitudes.

5. Dare to Try

For the last skill or ability that also needs to be owned by a company leader is the attitude of being brave to try. A company leader must have the courage to get out of his comfort zone and try new things, so that he can bring the company to experience success. Not only that, but a company leader also needs to have the courage to implement the innovations that have been created.

So any ideas or thoughts that are innovative should not hesitate to be implemented in the company. Because all kinds of ideas that emerge can lead the company to success. Therefore a company leader should never be afraid to try. Of course, this attitude is accompanied by a sense of responsibility.

Director Qualifications

Becoming a director is not arbitrary, friends, usually there are several qualifications that need to be considered so that the selected director is suitable and competent. The following are the general qualifications of directors that are commonly used.

1. Age over 25 years

A director should have an age that is not too young. Because a company leader must at least have sufficient experience. Experience usually makes people wiser in dealing with any situation or condition. So that every decision taken will always be appropriate and useful both for the company and for the surrounding environment.

2. Minimum S1 education

In addition to being quite mature, of course a company leader must have a minimum educational level of bachelor or bachelor’s degree. Someone with a higher level of education certainly has knowledge that is also quite high. Then this knowledge can be a provision for him to become a director.

3. Honest and Responsible

Honesty and responsibility are general attitudes that every employee needs to have, especially for a company leader. With an honest and responsible attitude, the director will be able to bring his company in a better direction. Because the director will lead his team well too.

4. Thorough and Dexterous

A company leader must also be able to work carefully and deftly. Have a way of working that should not be slow but must be done with great care. The accuracy possessed by a director will prevent him from various kinds of mistakes that might occur. Meanwhile, a nimble attitude can also be applied to teams or subordinates to advance the company to grow faster.

5. Able to work under pressure

Every hard worker is certainly able to work under pressure. Therefore a leader must be able to work under pressure. Working under pressure is not easy. But this must be done by those of you who want to pursue a career as a director. By working under pressure, directors don’t give up easily and get used to pressure.

6. Good Personality

The last requirement or qualification that must be owned by a company leader is a good personality. With a good personality, the director will certainly be liked by the team as well as clients and customers. Then the company will grow and create a positive environment.

7. Carry out the Director’s duties properly

The director as the leader of an institution or company must be able to lead all members of his team. Various matters covering the expertise and capabilities of the directors also need to be developed. Not only abilities but personality or character also needs to be developed even better. If the ability allows but the character or personality is not very good, it is feared that it can have a negative impact on all employees.

Apart from that, as a leader, the director’s duties must also be able to see all situations and working conditions that exist inside as well as outside the company. Therefore, it is better not to underestimate the task of the director, which is quite heavy every day. So that both employees and directors can get a good relationship with mutual respect.