What is Key Management Personnel?

//What is Key Management Personnel?
What is Key Management Personnel? 2017-10-05T04:30:18+00:00

Definition: Key management personnel are employees who have the authority to directly or indirectly plan and control business operations. The term key management personnel is a relative term dealing with specific operations.

What Does Key Management Personnel Mean?

Top business management usually includes the CEO, CFO, COO, as well as a number of Vice presidents depending on the company. These positions are all considered key management because they have the power to influence and direct company operations, but they are not the only key management personnel in an organization.\

Every department head and manager can be considered a key manager to some degree because they have influence in planning and directing their departments’ operations.

Example

For example, a shop foreman is considered a key management employee when it comes to the manufacturing operations. The foreman traditionally runs the manufacturing floor and is in charge of the manufacturing employees as well as the efficiency of the shop operations. Based on the foreman’s analysis, he usually has freedom to change workflow and production processes. This authority makes the foreman a key management employee.

Another manager who works closely with the shop foreman is the quality control manager. After the products leave the assembly line, they are sent to the quality control department when the manager sets requirements for employees and quality checks. It is up to the manager to make sure quality checks run smoothly and defects are found. In the area of quality control, the quality control manager is considered key management personnel.