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Business and
Managerial Occupations
ISBN 0-16-043049-6
Reprinted from the
Occupational Outlook Handbook, 1994-95 Edition
90000
U.S. Department of Labor
Bureau of Labor Statistics
9 780160 430497
Bulletin 2450-2
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Accountants and Auditors
(D.O.T. 160 through .167-042, -054, and .267-014)
Nature of the Work
Managers must have up-to-date financial information in order to
make important decisions. Accountants and auditors prepare, ana
lyze, and verify financial reports and taxes, and monitor informa
tion systems that furnish this information to managers in all busi
ness, industrial, and government organizations.
Four major fields of accounting are public, management, and
government accounting, and internal auditing. Public accountants
have their own businesses or work for public accounting firms. They
perform a broad range of accounting, auditing, tax, and consulting
activities for their clients, who may be corporations, governments,
nonprofit organizations, or individuals. Management accountants,
also called industrial, corporate, or private accountants, record and
analyze the financial information of the companies for which they
work. Internal auditors verify the accuracy of their organization’s
records and check for mismanagement, waste, or fraud. Govern
ment accountants and auditors maintain and examine the records of
government agencies and audit private businesses and individuals
whose activities are subject to government regulations or taxation.
Within each field, accountants often concentrate on one phase of
accounting. For example, many public accountants concentrate on
tax matters, such as preparing an individual’s income tax returns
and advising companies of the tax advantages and disadvantages of
certain business decisions. Others concentrate on consulting and of
fer advice on matters such as employee health care benefits, and
compensation; the design of companies’ accounting and data
processing systems; and controls to safeguard assets. Some special
ize in forensic accounting—investigating and interpreting bankrupt
cies and other complex financial transactions. Still others work pri
marily in auditing—examining a client’s financial statements and
reporting to investors and authorities that they have been prepared
and reported correctly. However, fewer accounting firms are per
forming this type of work because of potential liability.
Management accountants analyze and interpret the financial in
formation corporate executives need to make sound business deci
sions. They also prepare financial reports for nonmanagement
groups, including stock holders, creditors, regulatory agencies, and
tax authorities. Within accounting departments, they may work in
financial analysis, planning and budgeting, cost accounting, and
other areas.
Internal auditing is rapidly growing in importance. As computer
systems make information more timely and available, top manage
ment can base its decisions on actual data rather than personal ob
servation. Internal auditors examine and evaluate their firms’ finan
cial and information systems, management procedures, and internal
controls to ensure that records are accurate and controls are ade
quate to protect against fraud and waste. They also review company
operations—evaluating their efficiency, effectiveness, and compli
ance with corporate policies and procedures, laws, and government
regulations. There are many types of highly specialized auditors,
such as electronic data processing auditors, environmental auditors,
engineering auditors, legal auditors, insurance premium auditors,
bank auditors, and health care auditors.
Accountants and auditors also work for Federal, State, and local
governments. Government accountants see that revenues are re
ceived and expenditures are made in accordance with laws and regu
lations. Many persons with an accounting background work for the
Federal Government as Internal Revenue Service agents or in finan
cial management, financial institution examination, and budget
analysis and administration.
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In addition, a small number of persons trained as accountants
teach and conduct research at business and professional schools.
Some work part time as accountants or consultants.
Computers are widely used in accounting and auditing. With the
aid of special computer software packages, accountants summarize
transactions in standard formats for financial records or organize
data in special formats for financial analysis. These accounting
packages are easily learned and require few specialized computer
skills, and greatly reduce the amount of tedious manual work associ
ated with figures and records. Personal and laptop computers en
able accountants and auditors in all fields—even those who work in
dependently—to use their clients’ computer system and to extract
information from large mainframe computers. Internal auditors
may recommend controls for their organization’s computer system
to ensure the reliability of the system and the integrity of the data. A
growing number of accountants and auditors have extensive com
puter skills and specialize in correcting problems with software or
developing software to meet unique data needs.
Working Conditions
Accountants and auditors work in offices, but public accountants
may frequently visit the offices of clients while conducting audits.
Self-employed accountants may be able to do part of their work at
home. Accountants and auditors employed by large firms and gov
ernment agencies may travel frequently to perform audits at clients’
places of business, branches of their firm, or government facilities.
The majority of accountants and auditors generally work a stan
dard 40-hour week, but many work longer, particularly if they are
self-employed and free to take on the work of as many clients as they
choose. For example, about 4 out of 10 self-employed accountants
and auditors work more than 50 hours per week, compared to 1 out
of 4 wage and salary accountants and auditors. Tax specialists often
work long hours during the tax season.
Employment
Accountants and auditors held about 939,000 jobs in 1992. They
worked throughout all types of firms and industries, but nearly one-
1 %
CPA's have the widest range ofjob opportunities.
For sale by the U.S. Government Printing Office
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third worked for accounting, auditing, and bookkeeping firms, or
were self-employed.
The majority of accountants and auditors were unlicensed man
agement accountants, internal auditors, or government accountants
and auditors. However, in 1992 there were on record over 475,000
State-licensed Certified Public Accountants (CPA’s), Public Ac
countants (PA’s), Registered Public Accountants (RPA’s), and Ac
counting Practitioners (AP’s). The vast majority of these—over
400,000—were CPA’s, but there may have been far fewer practicing
CPA’s in the country; many CPA’s hold licenses in several States at
once.
Most accountants and auditors work in urban areas where public
accounting firms and central or regional offices of businesses are
concentrated. Roughly 10 percent of all accountants were self-em
ployed, and less than 10 percent worked part time.
Some accountants and auditors teach full time in junior colleges
and colleges and universities; others teach part time while working
for private industry or government or as self-employed accountants.
Training, Other Qualifications, and Advancement
Most public accounting and business firms require applicants for ac
countant and internal auditor positions to have at least a bachelor’s
degree in accounting or a related field. Those wishing to pursue a
bachelor’s degree in accounting should carefully research account
ing curricula before enrolling. Many States will soon require CPA
candidates to complete 150 semester hours of coursework prior to
taking the CPA exam, and many schools have altered their curric
ula accordingly. Some employers prefer those with a master’s degree
in accounting or a master’s degree in business administration with a
concentration in accounting. Most employers also prefer applicants
who are familiar with computers and their applications in account
ing and internal auditing.
For beginning accounting and auditing positions in the Federal
Government, 4 years of college (including 24 semester hours in ac
counting or auditing) or an equivalent combination of education
and experience is required.
The number of accounting graduates
remained stable between 1986 and 1991, but
more women than men obtained bachelor's
degrees in accounting.
Degrees awarded (thousands)
Women
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Source: National Center for Education Statistics
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Previous experience in accounting or auditing can help an appli
cant get a job. Many colleges offer students an opportunity to gain
experience through summer or part-time internship programs con
ducted by public accounting or business firms. Such training is in
valuable in gaining permanent employment in the field.
Professional recognition through certification or licensure also is
helpful. In the majority of States, CPA’s are the only accountants
who are licensed and regulated. Anyone working as a CPA must
have a certificate and a license issued by a State board of account
ancy. The vast majority of States require CPA candidates to be col
lege graduates, but a few States substitute a certain number of years
of public accounting experience for the educational requirement.
Based on recommendations made by the American Institute of Cer
tified Public Accountants and the National Association of State
Boards of Accountancy, some States currently require that CPA
candidates complete 150 semester hours of college coursework, and
many other States are working toward adopting this law. This 150hour rule requires an additional 30 hours of coursework beyond the
usual 4-year bachelor’s degree in accounting.
All States use the four-part Uniform CPA Examination prepared
by the American Institute of Certified Public Accountants. The 2day CPA examination is rigorous, and only about one-quarter of
those who take it each year pass each part they attempt. Candidates
are not required to pass all four parts at once, although most States
require candidates to pass at least two parts for partial credit. Many
States require all sections of the test to be passed within a certain pe
riod of time. Most States also require applicants for a CPA certifi
cate to have some accounting experience.
The designations PA or RPA are also recognized by most States,
and several States continue to issue these licenses. With the growth
in the number of CPA’s, however, the majority of States are phasing
out the PA, RPA, and other non-CPA designations by not issuing
any more new licenses. Accountants who hold PA or RPA designa
tions have similar legal rights, duties, and obligations as CPA’s, but
their qualifications for licensure are less stringent. The designation
Accounting Practitioner is also awarded by several States. It re
quires less formal training than a CPA license and covers a more
limited scope of practice.
Nearly all States require both CPA’s and PA’s to complete a cer
tain number of hours of continuing professional education before
their licenses can be renewed. The professional associations repre
senting accountants sponsor numerous courses, seminars, group
study programs, and other forms of continuing education.
Professional societies bestow other forms of credentials on a vol
untary basis. Voluntary certification can attest to professional com
petence in a specialized field of accounting and auditing. It also can
certify that a recognized level of professional competence has been
achieved by accountants and auditors who acquired some skills on
the job, without the amount of formal education or public account
ing work experience needed to meet the rigorous standards required
to take the CPA examination. Increasingly, employers seek appli
cants with these credentials.
The Institute of Internal Auditors confers the designation Certi
fied Internal Auditor (CIA) upon graduates from accredited col
leges and universities who have completed 2 years’ work in internal
auditing and who have passed a four-part examination. The EDP
Auditors Association confers the designation Certified Information
Systems Auditor (CISA) upon candidates who pass an examination
and who have 5 years of experience in auditing electronic data
processing systems. However, auditing or data processing experi
ence and college education may be substituted for up to 3 years.
Other organizations, such as the National Association of Certified
Fraud Examiners and the Bank Administration Institute, confer
other specialized auditing designations.
The Institute of Management Accountants (IMA), formerly the
National Association of Accountants, confers the Certified Man
agement Accountant (CMA) designation upon college graduates
who pass a four-part examination, agree to meet continuing educa
tion requirements, comply with standards of professional conduct,
and have at least 2 years’ work in management accounting. The
3
CMA program is administered through an affiliate of the IMA, the
Institute of Certified Management Accountants. The Accreditation
Council for Accountancy and Taxation, a satellite organization of
the National Society of Public Accountants, awards a Certificate of
Accreditation in Accountancy to those who pass a comprehensive
examination, and a Certificate of Accreditation in Taxation to those
with appropriate experience and education. It is not uncommon for
a practitioner to hold multiple licenses and designations. For in
stance, one internal auditor might be a CPA, CIA, and CISA.
Persons planning a career in accounting should have an aptitude
for mathematics, be able to analyze, compare, and interpret facts
and figures quickly, and make sound judgments based on this
knowledge. They must be able to clearly communicate the results of
their work, orally and in writing, to clients and management.
Accountants and auditors must be good at working with people
as well as with business systems and computers. Accuracy and the
ability to handle responsibility with limited supervision are impor
tant. Perhaps most important, because millions of financial state
ment users rely on their services, accountants and auditors should
have high standards of integrity.
Capable accountants and auditors should advance rapidly; those
having inadequate academic preparation may be assigned routine
jobs and find promotion difficult. Many graduates ofjunior colleges
and business and correspondence schools, as well as bookkeepers
and accounting clerks who meet the education and experience re
quirements set by their employers, can obtain junior accounting po
sitions and advance to more responsible positions by demonstrating
their accounting skills on the job.
Beginning public accountants usually start by assisting with work
for several clients. They may advance to positions with more re
sponsibility in 1 or 2 years and to senior positions within another
few years. Those who excel may become supervisors, managers, or
partners, open their own public accounting firms, or transfer to ex
ecutive positions in management accounting or internal auditing in
private firms.
Beginning management accountants often start as cost account
ants, junior internal auditors, or as trainees for other accounting po
sitions. As they rise through the organization, they may advance to
accounting manager, chief cost accountant, budget director, or
manager of internal auditing. Some become controllers, treasurers,
financial vice presidents, chief financial officers, or corporation
presidents. Many senior corporation executives have a background
in accounting, internal auditing, or finance.
There is a large degree of mobility among public accountants,
management accountants, and internal auditors. Practitioners often
shift into management accounting or internal auditing from public
accounting, or between internal auditing and management account
ing. However, it is less common for accountants and auditors to
move from either management accounting or internal auditing into
public accounting.
Job Outlook
Employment of accountants and auditors is expected to grow faster
than the average for all occupations through the year 2005. Quali
fied accountants and auditors should have good job opportunities.
Although the profession is characterized by a relatively low rate of
turnover, because the occupation is so large many openings also will
arise as accountants and auditors retire, die, or move into other oc
cupations. CPA’s should have the widest range of opportunities, es
pecially as more States enact the 150-hour rule and it becomes more
difficult to become a CPA.
As the economy grows, the number of business establishments in
creases, requiring more accountants and auditors to set up their
books, prepare their taxes, and provide management advice. As
these businesses grow, the volume and complexity of information
developed by accountants and auditors on costs, expenditures, and
taxes will increase as well. More complex requirements for account
ants and auditors also arise from changes in legislation related to
taxes, financial reporting standards, business investments, mergers,
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and other financial matters. In addition, businesses will increasingly
need quick, accurate, and individually tailored financial informa
tion due to the demands of growing international competition.
The changing role of public accountants, management account
ants, and internal auditors also will spur job growth. Public ac
countants will perform less auditing work due to potential liability,
and less tax work due to growing competition from tax preparation
firms, but they will assume an even greater management advisory
role and expand their consulting services. These rapidly growing
services will lead to increased demand for public accountants in the
coming years. Management accountants also will take on a greater
advisory role as they develop more sophisticated and flexible ac
counting systems, and focus more on analyzing operations rather
than just providing financial data. Similarly, management will in
creasingly need internal auditors to develop new ways to discover
and eliminate waste and fraud.
Despite growing opportunities for qualified accountants and au
ditors, competition for the most prestigious jobs—such as those
with major accounting and business firms—will remain keen. Ap
plicants with a master’s degree in accounting, a master’s degree in
business administration with a concentration in accounting, or a
broad base of computer experience will have an advantage. Moreo
ver, computers now perform many simple accounting functions, al
lowing accountants and auditors to incorporate and analyze more
information. This increasingly complex work requires greater
knowledge of more specialized areas such as international business
and current legislation, and expertise in specific industries.
Earnings
According to a College Placement Council Salary Survey in 1993,
bachelor’s degree candidates in accounting received starting salary
offers averaging nearly $28,000 a year; master’s degree candidates in
accounting, over $30,000.
According to a survey of workplaces in 160 metropolitan areas,
accountants with limited experience had median earnings of
$24,700 in 1992, with the middle half earning between $22,200 and
$27,500. The most experienced accountants had median earnings of
$76,000, with the middle half earning between $68,500 and $84,600.
Public accountants—employed by public accounting firms—with
limited experience had median earnings of $28,000 in 1992, with the
middle half earning between $26,500 and $29,400. The most exper
ienced public accountants had median earnings of $42,400, with the
middle half earning between $36,900 and $50,400. Many owners
and partners of firms earned considerably more.
Based on a survey by the Institute of Management Accountants,
the average salary of IMA members was about $55,100 a year in
1992. IMA members who were certified public accountants aver
aged $61,900, while members who were certified management ac
countants averaged $58,700.
According to a survey by the Institute of Internal Auditors, sala
ries of internal auditors in 1992 ranged from $26,500 for those with
less than 2 years of experience to $60,700 for those with over 10
years of experience.
In the Federal Government, the starting annual salary for junior
accountants and auditors was about $18,300 in 1993. Candidates
who had a superior academic record could begin at about $22,700.
Applicants with a master’s degree or 2 years’ professional experi
ence began at $27,800. Accountants employed by the Federal Gov
ernment in nonsupervisory, supervisory, and managerial positions
averaged $46,300 a year in 1993; auditors, $48,200.
Related Occupations
Accountants and auditors design internal control systems and ana
lyze financial data. Others for whom training in accounting is inval
uable include appraisers, budget officers, loan officers, financial
analysts and managers, bank officers, actuaries, underwriters, tax
collectors and revenue agents, FBI special agents, securities sales
workers, and purchasing agents.
Sources of Additional Information
Information about different accounting licenses and the standards
for licensure in your State may be obtained from your State board of
accountancy. A list of the addresses and chief executives of all State
boards of accountancy is available from:
National Association of State Boards of Accountancy, 380 Lexington
Ave., Suite 200, New York, NY 10168-0002.
Information about careers in certified public accounting and
about CPA standards and examinations may be obtained from:
©' American Institute of Certified Public Accountants, 1211 Avenue of the
Americas, New York, NY 10036-8775, or call 1-800-862-4272.
Information on management and other specialized fields of ac
counting and auditing and on the Certified Management Account
ant program is available from:
© Institute of Management Accountants, 10 Paragon Dr., Montvale, NJ
07645-1760.
.
©National Society of Public Accountants and the Accreditation Council
for Accountancy and Taxation, 1010 North Fairfax St., Alexandria, VA
22314.
©“The Institute of Internal Auditors, 249 Maitland Ave., Altamonte
Springs, FL 32701-4201.
©■The EDP Auditors Association, 455 Kehoe Blvd., Suite 106, Carol
Stream, IL 60188-0180.
For information on accredited accounting programs and educa
tional institutions offering a specialization in accounting or business
management, contact:
©= American Assembly of Collegiate Schools of Business, 605 Old Balias
Rd., Suite 220, St. Louis, MO 63141.
Administrative Services Managers
“ergonomic” (user-friendly); ensure that facilities comply with gov
ernment regulations; and supervise maintenance, grounds, and cus
todial staffs. In some firms, these workers are called facilities man
agers, and may work in facilities management departments.
Administrative services managers who work as office managers
oversee supervisors of large clerical staffs. In small firms, however,
clerical supervisors—who are discussed in the Handbook statement
on clerical supervisors and managers—perform this function. Ad
ministrative services managers who work as contract administrators
direct the preparation, analysis, negotiation, and review of contracts
related to the purchase or sale of equipment, materials, supplies,
products, or services. However, procurement functions are gener
ally directed by purchasing agents and managers, also discussed in a
separate Handbook statement.
Property management is divided into the management and use of
personal property such as office supplies, an administrative services
management function, and real property management, a function of
property and real estate managers—who are discussed elsewhere in
the Handbook. Personal property managers acquire, distribute, and
store supplies, and sometimes sell or dispose of surplus property.
Some property managers are engaged solely in surplus property dis
posal, the resale of scraps, rejects, and other unneeded supplies and
machinery, which is an increasingly important source of revenue for
many organizations. In government, surplus property officers may
acquire and then sell or dispose of government property.
Other administrative services managers oversee unclaimed prop
erty disposal. In government, this activity includes locating owners
of unclaimed liquid assets—such as stocks, bonds, savings accounts,
and the contents of safe deposit boxes—and locating owners of, or
auctioning off, unclaimed personal property—such as motor vehi
cles.
(D.O.T. 162.117-014; 163.167-026; 169.167-034; 188.117-122, .167-106)
Working Conditions
Nature of the Work
Administrative services managers work throughout private indus
try and government, and their range of duties is broad. They coordi
nate and direct supportive services, which may include secretarial
and correspondence; administration; preparation of payrolls; con
ference planning and travel; information processing; mail; facilities
management; materials scheduling and distribution; printing and
reproduction; records management; telecommunications manage
ment; personal property procurement, supply, and disposal; data
processing; library; food; security; and parking.
In small firms, one administrative services manager may oversee
all supportive services. In larger firms, however, administrative ser
vices managers work within the same managerial hierarchy as other
managers. Supervisory-level, or “first-line,” managers report to
their mid-level counterparts who, in turn, report to proprietors or
top-level managers. These managers—such as the vice president or
director of administration—are included in the Handbook state
ment on general managers and top executives.
Supervisory-level administrative services managers directly over
see supervisors or staffs involved in supportive services. Mid-level
managers develop overall plans, set goals and deadlines, develop
procedures to direct and improve supportive services, define the re
sponsibilities of supervisory-level managers, and delegate authority.
They often are involved in the hiring and dismissal of employees but
generally have no role in the formulation of personnel policy.
As the size of the firm increases, administrative services managers
increasingly specialize in one or more supportive services activities.
For example, administrative services managers may work primarily
as facilities managers, office managers, contract administrators,
property managers, or unclaimed property officers. In some cases,
the duties of these administrative services managers are quite simi
lar to those of other managers and supervisors, some of whom are
discussed in other Handbook statements.
Administrative services managers who specialize in facilities
management engage in facilities planning, including buying, selling,
or leasing facilities; redesign work areas to be more efficient and
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Administrative services managers generally work in comfortable of
fices. However, since their duties involve a wide range of activities,
they must maintain regular contact with personnel in other depart
ments, and working conditions may vary. In small firms, for in
stance, they may work alongside the supervisors and staffs they
oversee, and the office area may be crowded and noisy.
T?
Some administrative services managers run their own management
consulting firms.
5
Their work can be stressful, as they attempt to schedule work to
meet deadlines. Although the 40-hour week is standard, uncompen
sated overtime is often required to resolve problems. Managers in
volved in contract administration and personal property procure
ment, use, and disposal may travel extensively between home
offices, branch offices, vendors’ offices, and property sales sites. Fa
cilities managers who are responsible for the design of work spaces
may spend time at construction sites. Facilities managers also may
monitor the work of maintenance, grounds, or custodial staffs, and
often travel between different facilities.
Employment
Administrative services managers held about 226,000 jobs in 1992.
Over two-fifths worked in services industries, including manage
ment, business, social, and health services organizations. Others
were found in virtually every other industry. A few run their own
management services, management consulting, or facilities support
services firms.
Training, Other Qualifications, and Advancement
Many administrative services managers advance through the ranks
in an organization, acquiring several years’ work experience in vari
ous administrative services before assuming supervisory duties. For
example, managers who oversee clerical supervisors should be fa
miliar with office procedures and equipment and have a working
knowledge of word processing, communications, data processing,
and recordkeeping. Facilities managers often have a background in
architecture, engineering, construction, interior design, or real es
tate, in addition to managerial or other administrative experience.
Managers of personal property acquisition and disposal need experi
ence in purchasing and sales and knowledge of a wide variety of sup
plies, machinery, and equipment. Managers concerned with supply,
inventory, and distribution must be experienced in receiving, ware
housing, packaging, shipping, transportation, and related opera
tions. Contract administrators may have worked as contract special
ists, cost analysts, or procurement specialists. Managers of
unclaimed property often have experience in claims analysis and
records management.
Educational requirements vary widely. For supervisory-level ad
ministrative services managers of secretarial, mail room, and related
administrative support activities, many employers prefer an associ
ate of arts degree in business or management, although a high school
diploma may suffice. For managers of audiovisual, graphics, and
other more technical activities, postsecondary technical school
training is preferred. For managers of highly complex services such
as contract administration, a bachelor’s degree, preferably in busi
ness administration or finance, is usually required. The curriculum
should include courses in office technology, accounting, business
mathematics, computer applications, and business law. Similarly,
facilities managers often need a bachelor’s degree in engineering, in
terior design, or business administration. Some administrative ser
vices managers have advanced degrees. Whatever the manager’s du
ties, his or her educational background must be accompanied by
work experience reflecting demonstrated ability.
Persons interested in becoming administrative services managers
should be able to communicate and establish effective working rela
tionships with many different people—managers, supervisors, pro
fessionals, clerks, and blue-collar workers. They should be analyti
cal, detail-oriented, flexible, and decisive. The ability to coordinate
several activities and to quickly analyze and resolve specific
problems is important. Ability to work under stress and cope with
deadlines is also important.
Advancement is easier in large firms that employ several levels of
administrative services managers. Attainment of the “Certified Ad
ministrative Manager” (CAM) designation, through work experi
ence and successful completion of examinations offered by the
Academy of Administrative Management, can increase one’s ad
vancement opportunities. A bachelor’s degree enhances a supervi
sory-level manager’s opportunities to advance to a mid-level man
agement position, such as director of administrative services, and
eventually to a top-level management position, such as executive
vice president for administrative services, in one’s own or a larger
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firm. Those with the required capital and experience can establish
their own management consulting, management services, or facili
ties support services firm.
Job Outlook
Employment of administrative services managers is expected to
grow more slowly than the average for all occupations through the
year 2005. Moreover, the occupation is characterized by relatively
low turnover—similar to other managerial occupations—and rela
tively few of the administrative services managers who leave their
jobs leave the profession permanently. These factors, coupled with
the ample supply of competent, experienced workers seeking mana
gerial jobs, should result in keen competition for administrative ser
vices management positions in the coming years.
Although administrative services are becoming more complex,
many firms are increasingly contracting out administrative services
and otherwise streamlining these functions in an effort to cut costs.
Corporate restructuring has tempered growth of administrative ser
vices managers in recent years, and this trend is expected to con
tinue.
As it becomes more common for firms to contract out administra
tive services, however, demand for administrative services managers
will increase in management services, management consulting, and
facilities support services firms to which these services are con
tracted out. In addition, some types of administrative services man
agers may grow more quickly than others. Facilities managers, a rel
atively young and quickly growing occupation, may not be subject
to the same cost-cutting pressures as other administrative services
managers. Also, the extent to which governments at all levels, par
ticularly Federal, contract out for goods and services could affect
demand for contract administrators and personal property manag
ers.
Earnings
According to a salary survey by the A.M.S. Foundation (Adminis
trative Management Society), building services/facilities managers
averaged about $48,000 a year in 1993; office/administrative ser
vices managers, over $40,000; and records managers, about $35,000.
Average salaries ranged from $28,000 for the lowest paid records
managers to $58,000 for the highest paid building services/facilities
managers.
In the Federal Government, contract specialists in nonsupervisory, supervisory, and managerial positions averaged $43,800 a year
in 1993; facilities managers, $42,600; administrative officers,
$42,100; industrial property managers, $41,300; property disposal
specialists, $38,300; and support services administrators, $32,900.
Related Occupations
Administrative services managers direct and coordinate supportive
services and oversee the purchase, use, and disposal of personal
property. Occupations with similar functions include administrative
assistants, appraisers, buyers, clerical supervisors, contract special
ists, cost estimators, procurement services managers, property and
real estate managers, purchasing managers, marketing and sales
managers, and personnel managers.
Sources of Additional Information
Information about careers and certification in administrative ser
vices management is available from:
O” Academy of Administrative Management, 550 W. Jackson Blvd., Suite
360, Chicago IL 60661.
Detailed data on salaries of administrative services managers is
available from:
ter A.M.S. Foundation, 550 W. Jackson Blvd., Suite 360, Chicago, IL 60661.
For information about careers in the management of personal
property, contact:
W National Property Management Association, 380 Main St., Suite 290,
Dunedin, FL 34698.
For information about careers in facilities management, contact:
X3“ International Facility Management Association, 1 East Greenway Plaza,
11th Floor, Houston, TX 77046-0194.
For information on careers in records and information manage
ment, contact:
iw Association of Records Managers and Administrators, 4200 Somerset
Dr., Suite 215, Prairie Village, KS 66208.
Budget analysts who work for local or State governments may
also spend time answering inquiries from constituents.
Working Conditions
Budget Analysts
(D.O.T. 161.117-010 and 161.267-030)
Nature of the Work
Budget analysts play a primary role in the development, analysis,
and execution of budgets. Budgets are financial plans used to esti
mate future requirements and organize and allocate expenditures
and capital resources effectively. The analysis of spending behavior
and the planning of future operations are an integral part of the deci
sion-making process in most corporations and government agencies.
Budget analysts work in both private industry and the public sec
tor. In private industry, a budget analyst examines, analyzes, and
seeks new ways to improve efficiency and increase profits. Although
analysts working in government generally are not concerned with
profits, they too are interested in finding the most efficient distribu
tion of funds and resources among various departments and pro
grams.
A major responsibility of budget analysts is to provide advice and
technical assistance in the preparation of annual budgets. At the be
ginning of the budget cycle, managers and department heads submit
proposed operating and financial plans to budget analysts for re
view. These plans outline expected programs—including proposed
program increases or new initiatives, estimated costs and expenses,
and capital expenditures needed to finance these programs.
Analysts begin by examining the budget estimates or proposals
for completeness, accuracy, and conformance with established pro
cedures, regulations, and organizational objectives. They review fi
nancial requests by employing cost-benefit analysis, assessing pro
gram trade-offs, and exploring alternative funding methods. They
also examine past and current budgets, and research economic and
financial developments that affect the organization’s spending. This
process allows analysts to evaluate program proposals in terms of
the organization’s priorities and financial resources.
After this review process, budget analysts consolidate the individ
ual department budgets into operating and financial budget summa
ries. The analyst submits preliminary budgets to senior manage
ment, or sometimes, as is often the case in local and State
governments, to appointed or elected officials, with comments and
supporting statements to justify or deny funding requests. By re
viewing different departments’ operating plans, analysts gain insight
into an organization’s overall operations. This generally proves very
useful when they interpret and offer technical assistance to officials
approving the budget. At this point in the budget process, budget
analysts help the chief operating officer, agency head, or other top
managers analyze the proposed plan and devise possible alternatives
if the projected results are unsatisfactory. The final decision to ap
prove the budget, however, is usually made by the organization head
or elected officials.
Throughout the rest of the year, analysts periodically monitor the
operating budget by reviewing reports and accounting records to de
termine if allocated funds have been spent as specified. If deviations
appear between the approved budget and actual performance,
budget analysts may write a report explaining the causes of the vari
ations along with recommendations for new or revised budget pro
cedures. They suggest reallocation of excess funds or recommend
program cuts to avoid or alleviate deficits. They also inform pro
gram managers and others within their organization of the status
and availability of funds in different budget accounts. Before any
changes are made to an existing program or a new one is started, a
budget analyst assesses its efficiency and effectiveness. Analysts also
may project budget needs for long-range planning.
Analysts also assist in developing procedural guidelines and poli
cies governing the development, formulation, and maintenance of
the budget. If necessary, they conduct training sessions for agency
or company personnel on new budget procedures.
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Budget analysts work in a normal office setting and generally work
40 hours per week. However, during the initial development and
mid-year and final reviews of budgets, they often experience the
pressure of deadlines and tight work schedules. The work during
these periods can be extremely stressful, and analysts are usually re
quired to work more than the routine 40 hours a week.
Budget analysts spend the majority of their time working inde
pendently, compiling and analyzing data and preparing budget pro
posals. Nevertheless, their routine schedule can be interrupted by
special budget requests, meetings, and training sessions. Others may
travel to obtain budget details and explanations of variances from
coworkers, and to personally observe what funding is being used for
in the field.
Employment
Budget analysts held about 67,000 jobs throughout private industry
and government in 1992. Federal, State, and local governments are
major employers, accounting for 1 of every 3 budget analyst jobs.
The Department of Defense employed 7 of every 10 budget analysts
working for the Federal Government. Schools, hospitals, banks, and
manufacturers of transportation equipment, chemicals and allied
products, electrical and electronic machinery, and industrial ma
chines are other major employers of budget analysts.
Training, Other Qualifications, and Advancement
Most private firms and government agencies require candidates for
budget analyst positions to have at least a bachelor’s degree. Within
the Federal Government, a bachelor’s degree in any field is suffi
cient background for an entry-level budget analyst trainee position.
State and local governments have varying requirements, but a bach
elor’s degree in one of the following areas usually qualifies one for
entry into the occupation: Accounting, finance, business or public
administration, economics, political science, planning, statistics, or
a social science such as sociology. Sometimes, a field closely related
to the employing industry or organization within an industry, such
as engineering, may be preferred. Some employers prefer that candi
dates possess a master’s degree to ensure adequate analytical and
I
Budget analysts assure that actual expenditures comply with the
approved budget plan.
7
communication skills. Financial experience can occasionally be sub
stituted for an advanced degree when applying for a budget analyst
position. Some companies prefer to promote from within; therefore,
competent accounting or payroll clerks and other clerical staff who
have worked closely with the budget process are sometimes given
the opportunity to advance to entry level budget analyst positions
even if they do not meet the educational requirements.
Because developing a budget involves manipulating numbers and
requires strong analytical skills, courses in mathematics, statistics,
or accounting are helpful, regardless of the prospective budget ana
lyst’s major field of study. Because most financial analysis per
formed by organizations is automated, a familiarity with the finan
cial software packages used by most organizations in budget
analysis, as well as word processing, is generally required by em
ployers. Software packages commonly used by budget analysts in
clude electronic spreadsheets and database and graphics software.
Job candidates who already possess these computer skills may be
preferred over those who need to be trained.
In addition to analytical and computer skills, those seeking a ca
reer as a budget analyst must also be able to work under strict time
constraints. Strong oral and written communication skills are essen
tial for analysts to prepare, present and defend budget proposals to
decision makers.
Entry level budget analysts may receive some formal training
when they begin their jobs. However, most employers feel that the
best training is obtained by working through one complete budget
cycle. During the cycle, analysts become familiar with all the steps
involved in the budgeting process.
The Federal Government, on the other hand, offers extensive onthe-job and classroom training for entry level analysts, who are ini
tially called trainees. Analysts are encouraged to participate in the
various classes offered throughout their careers.
Beginning analysts usually work under close supervision. Capable
entry level analysts can be promoted into intermediate level posi
tions within 1 to 2 years, and then into senior positions within a few
more years. Progressing to a higher level means added budgetary re
sponsibility and can lead to a supervisory role.
In the Federal Government, for example, beginning budget ana
lysts compare projected costs with prior expenditures; consolidate
and enter data prepared by others; and assist higher grade analysts
by doing research. As analysts progress, they begin to develop and
formulate budget estimates and justification statements; perform in
depth analyses of budget requests; write statements supporting
funding requests; advise program managers and others on the status
and availability of funds in different budget activities; and present
and defend budget proposals to senior managers.
Because financial and analytical skills are vital in any organiza
tion, budget analysts often are able to transfer to a related field in
other organizations.
control, and evaluate activities within their organizations more ef
fectively.
Despite the increase in demand for budget analysts, competition
for jobs should remain keen because of the substantial number of
qualified applicants. Job opportunities are usually best for candi
dates with a college degree, particularly a master’s. In some cases,
experience is more beneficial than a degree and can be used to offset
a lack of education. A working knowledge of computer financial
software packages can also enhance one’s employment prospects in
this field.
The financial work performed by budget analysts is an important
function in every organization. Financial and budget reports must
be completed even during periods of economic slowdowns. There
fore, employment of budget analysts generally is not as adversely af
fected as other workers during economic slumps.
Earnings
Salaries of budget analysts vary widely by experience, education,
and employer. According to a 1993 survey of financial, accounting,
banking, and information systems professions conducted by Robert
Half International Incorporated, average annual starting salaries of
budget and other financial analysts ranged from $23,500 to $28,000
for those working in medium-size firms, and from $24,000 to
$29,000 for those employed by larger organizations. Analysts with 1
to 3 years of experience earned from $27,000 to $35,000 a year in
medium-size firms and from $28,500 to $37,500 in larger compa
nies. Senior analysts earned from $34,500 to $41,200 in medium-size
firms and from $36,000 to $44,000 in larger firms. Earnings of man
agers in this field ranged from $41,000 to $51,000 in medium-size
firms to $45,000 to $62,000 in large organizations.
A survey of workplaces in 160 metropolitan areas reported that
experienced budget analysts had median annual earnings of about
$39,700 in 1992, with the middle half earning between about
$35,700 and $44,300 a year.
In the Federal Government, budget analysts generally started as
trainees earning about $18,300 a year in 1993. Candidates with a
master’s degree began at $27,800. The average annual salary for
budget analysts employed by the Federal Government in nonsupervisory, supervisory, and managerial positions was $42,033 in 1993.
Related Occupations
Budget analysts review, analyze, and interpret financial data; make
recommendations for the future; and assist in the implementation of
new ideas. Workers who use these skills in other occupations in
clude accountants and auditors, economists, financial analysts, fi
nancial managers, and loan officers.
Sources of Additional Information
Job Outlook
Employment of budget analysts is expected to grow about as fast as
the average for all occupations through the year 2005. In addition to
employment growth, many job openings will result from the need to
replace experienced budget analysts who transfer to other occupa
tions or leave the labor force.
Expanding use of automation may make analysts more produc
tive, allowing them to process more data in less time. Also, com
puters are increasingly used to organize, summarize, and dissemi
nate automated data to the top levels in organizations, thereby
centralizing decision-making and reducing the need for middle
managers. Any computer-induced effects on employment may be
offset, however, by a greater demand for information and analysis.
Easier manipulation of and accessibility to data provide manage
ment more considerations on which to base decisions. Also, because
of the growing complexity of business and the increasing specializa
tion of functions within organizations, more attention is being given
to planning and financial control. Many companies will continue to
rely heavily on budget analysts to examine, analyze, and develop
budgets to determine capital requirements and to allocate labor and
other resources efficiently among all parts of the organization. Man
agers will continue to use budgets as a vehicle to plan, coordinate,
8
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Information about career opportunities as a budget analyst may be
available from your State or local employment service.
Persons interested in working as a budget analyst in the Federal
Government can obtain information from:
tar U.S. Office of Personnel Management, 1900 E St. NW., Washington, DC
20415.
Construction Contractors and Managers
(D.O.T. 182.167 except-022)
Nature of the Work
Construction contractors and managers assume various levels of re
sponsibility and are known by a wide range of job titles that are
often used interchangeably—for example, constructor, construction
superintendent, general superintendent, production manager, pro
ject manager, general construction manager, executive construction
manager, general contractor, contractor, and subcontractor. Con
struction contractors and managers may be owners or salaried em
ployees of a construction contracting firm or individuals under con
tract with the owner, developer, contractor, or management firm
overseeing the construction project.
This Handbook statement uses the term “construction manager”
broadly to encompass all supervisory-level salaried and self-em
ployed construction managers who oversee construction supervisors
and workers. Supervisory level managers report to mid-level and
top-level construction managers, who are included in the Handbook
statement on general managers and top executives.
Within the construction industry, the term “construction man
ager” is used more narrowly to denote the firm or individual in
volved in a special form of control to perform a construction man
agement function. A construction manager frequently acts as the
owner’s or developer’s consultant regarding the scheduling and co
ordination of all design and construction processes over the life of
the project.
On small construction projects such as remodeling a home, con
struction managers are usually self-employed construction contrac
tors who directly oversee their employees. However, large construc
tion projects like an industrial complex are too complicated for one
person to supervise. These projects are divided into many segments:
Site preparation, including land clearing and earth moving; sewage
systems; landscaping and road construction; building construction,
including excavation and laying foundations, erection of frame
work, floors, walls, and roofs; or building services, including car
pentry, electrical, plumbing, air-conditioning, and heating. Con
struction managers may be in charge of one or more of these
activities, and may have several subordinates, such as crew supervi
sors, reporting to them.
Construction contractors and managers plan, budget, and direct
the construction project. The planning, often in collaboration with
design professionals, requires sophisticated scheduling techniques
with flow charts, bar charts, and other graphic presentations. They
often use computers to evaluate various construction methods and
to determine the most cost-effective plan. They determine the ap
propriate construction methods and schedule all required construc
tion site activities into logical, specific steps, leading to an interme
diate or final objective. They budget the time required to complete
each step in an effort to meet established deadlines for a particular
task. Construction managers determine the labor requirements and
supervise or monitor the hiring and dismissal of workers.
On the job, construction contractors and managers direct con
struction supervisors and monitor the progress of construction ac
tivities including the delivery and use of materials, supplies, tools,
machinery, equipment, and vehicles. They are responsible for all
necessary permits and licenses and, depending upon the contractual
arrangements, direct or monitor compliance with building and
safety codes and other regulations.
They regularly review engineering and architectural drawings
and specifications and confer with design professionals to monitor
progress and ensure compliance with plans and specifications. They
meet with cost estimators in order to keep track of construction
costs and to avoid cost overruns. Based upon direct observation and
reports by subordinate supervisors, these managers may prepare
daily reports of progress and requirements for labor, material, and
machinery and equipment at the construction site. Construction
managers meet regularly with owners, other contractors and man
agers, and design professionals to monitor and coordinate all phases
of the construction project.
Working Conditions
Construction contractors and managers work out of a main office
from which the overall construction project is monitored or out of a
field office at the construction site. Management decisions regarding
daily construction activities are usually made at the job site. Manag
ers may have to travel when the construction site is in another State
or when the manager is responsible for activities at two or more
sites. Overseas projects usually entail temporary residence in an
other country.
Construction contractors and managers are “on call” to deal with
accidents, delays, or bad weather at the site. The standard 40-hour
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________
Construction contractors review engineering and architectural
drawings and specifications with clients.
week is rare. Indeed, construction may proceed round-the-clock for
days, even weeks to meet special project deadlines.
Although the work generally is not considered dangerous, con
struction contractors and managers must be careful while touring
construction sites, especially when machinery, equipment, and vehi
cles are being operated. Because of the rapid pace of construction
activities, they must always be prepared to quickly answer ques
tions, establish priorities, and assign duties. This requires the con
tractor and or manager to observe job conditions and to be alert to
potential problems and to ways to make the work go faster, easier,
and safer. Due to the inherent dangers involved in construction, the
manager in the field must be alert to and actively manage the safety
aspects ofjobsite operations.
Employment
Construction contractors and managers held about 180,000 jobs in
1992. About 85 percent were employed in the construction industry,
primarily by special trade contractors—for example, plumbing,
heating and air-conditioning, and electrical—and general building
contractors. Many worked as self-employed independent contrac
tors in the specialty trades. Others were employed by local govern
ments, educational institutions, real estate developers, and engineer
ing, architectural, surveying, and construction management
services firms.
Training, Other Qualifications, and Advancement
A growing number of entrants into this occupation have a strong ac
ademic background. Completion of a bachelor’s degree program in
construction science with emphasis on construction management
can greatly enhance one’s opportunities. In 1992, about 130 colleges
and universities offered 4-year degree programs in construction sci
ence. These programs include courses in project control and devel
opment, site planning, building design, construction methods, con
struction materials, value analysis, cost estimating, scheduling,
contract administration, building codes and standards, inspection
procedures, and electives in engineering and architectural sciences,
mathematics, statistics, and computer science. Recent graduates
from these 4-year degree programs usually are hired as assistants to
project managers, field engineers, schedulers, or cost estimators. A
growing number of graduates in related fields—engineering, archi
tecture, and cost estimating—also enter construction management,
often after having had substantial experience on construction
projects.
About 30 colleges and universities also offer a master’s degree
program in construction science, and one, the University of Florida,
offers a doctoral degree program in this field. Master’s degree recipi
ents, especially those with experience, typically become construc
tion managers in very large construction companies. Doctoral de
gree recipients generally become college teachers.
9
Many contractors and managers have substantial experience as
construction craft workers—for example, carpenters, masons,
plumbers, or electricians—and proven supervisory ability. Many
managers have worked as construction supervisors or as indepen
dent contractors overseeing workers in one or more construction
trades—for example, structural steel, roofing, or excavation. Many
have also attended training and educational programs sponsored by
industry associations, usually in collaboration with postsecondary
institutions. In 1992, over 200 2-year colleges offered construction
management or construction technology programs.
Persons interested in becoming a construction contractor or man
ager should be adaptable and be able to work effectively in a fast
paced environment. They should be decisive and able to quickly se
lect among alternative courses of action. The ability to coordinate
several major activities at once, while being able to analyze and re
solve specific problems is imperative, as is the ability to understand
engineering, architectural, and other construction drawings. They
must be able to establish a good working relationship with many dif
ferent people—entrepreneurs, other managers, construction profes
sionals, supervisors, and craft workers.
Advancement depends upon the size of the construction com
pany. In large companies, they may become mid-level and eventu
ally top-level managers. Highly experienced individuals may be
come consultants; some serve as expert witnesses in court or as
arbitrators in disputes. Those with the required capital may estab
lish their own firms and offer construction management services.
Others may establish their own general contract construction firms
that oversee construction projects from start to finish—including
project planning, design, and construction.
Job Outlook
Employment of construction contractors and managers is expected
to increase much faster than the average for all occupations through
the year 2005 as the number and complexity of construction projects
continues to grow. In addition to this rising demand, many openings
should result from the need to replace workers who transfer to other
occupations or leave the labor force. Prospects are expected to be
particularly favorable—especially in rapidly growing construction
management services firms—for experienced construction manag
ers with a bachelor’s (or higher) degree in construction science with
emphasis on construction management.
Increased spending on the Nation’s infrastructure—highways,
bridges, dams, schools, subways, airports, water and sewage sys
tems, and electric power generation and transmission facilities—
will be the primary stimulus to the demand for construction con
tractors and managers. Additional jobs will be created by growth in
less rapidly expanding construction activities as well. The need to
build more residential housing, commercial and office buildings,
and factories, as well as maintenance and repair of all kinds of ex
isting structures will stimulate further demand for these workers.
In addition to growth in the level of construction activity, the in
creasing complexity of construction projects will lead to more jobs
being created. Advances in building materials and construction
methods and the growing number of multipurpose buildings, elec
tronically operated “smart”buildings, and energy-efficient struc
tures will require the expertise of more construction managers. In
addition, the proliferation of laws setting standards for buildings
and construction materials, worker safety, energy efficiency, and en
vironmental pollution has further complicated the manager’s job
and should increase demand for these workers.
Employment of construction contractors and managers is sensi
tive to the short-term nature of many construction projects and cyc
lical fluctuations in construction activity. During periods of dimin
ished construction activity—when many construction workers are
laid off—many construction contractors and managers remain em
ployed in their own or other firms planning, scheduling, or estimat
ing costs of future construction projects. When these downturns oc
cur, some self-employed contractors may merge operations or
dissolve their business and seek salaried employment with other
contractors.
10
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Earnings
Earnings of salaried construction managers and incomes of self-em
ployed contractors vary depending upon the size and nature of the
construction project, its geographic location, and economic condi
tions. Based on limited information, average starting salaries of con
struction managers in 1992 were about $32,000; annual earnings of
most experienced managers ranged from $35,000 to $110,000.
Many salaried construction managers receive fringe such as bo
nuses, liberal motor vehicle and per diem allowances, paid vaca
tions, and life and health insurance. The income of self-employed
contractors varies even more widely than that of salaried managers.
The failure rate of small, newly formed construction firms is higher
than that of other newly established small businesses.
Related Occupations
Construction contractors and managers participate in the concep
tual development of a construction project and organize, schedule,
and oversee its implementation. Occupations with similar functions
include architects, civil engineers, construction supervisors, cost en
gineers, cost estimators, developers, electrical engineers, industrial
engineers, landscape architects, and mechanical engineers.
Sources of Information
For information about careers for construction managers contact:
13" American Institute of Constructors, 9887 North Gandy Blvd., Suite 104,
St. Petersburg, FL 33702.
IS" Associated Builders and Contractors, 729 15th St. NW, Washington,
DC 20005.
X3" Associated General Contractors of America, 1300 North 17th St. Rossyln, VA 22209-3883.
13" Construction Management Association of America, 1893 Preston White
Dr., Suite 130, Reston, VA 22091.
Information on construction science and management program
accreditation requirements is available from:
t3" American Council for Construction Education, 901 Hudson Lane,
Monroe, LA 71201.
Cost Estimators
(D.O.T. 169.267-038; 221.362-018, and .367-014)
Nature of the Work
Being able to accurately predict the cost of future projects is vital to
the economic survival of any business. Cost estimators develop this
information for owners or managers to use in making bids for con
tracts or in determining if a new product will be profitable, or in de
termining which of a firms’ products are making a profit.
Regardless of industry, estimators compile and analyze data on
all the factors that can influence costs—materials, labor, location,
and special machinery requirements, including computer hardware
and software. Job duties vary widely depending upon the type and
size of the project. Estimators working in the construction industry
and manufacturing businesses have different methods of, and rea
sons for, estimating costs.
On a large construction project, for example, the estimating pro
cess begins with the decision to submit a bid. After reviewing the ar
chitect’s drawings, specifications, and other bidding documents, the
estimator visits the site of the proposed construction project to
gather information on access to the site and availability of electric
ity, water, and other services, as well as surface topography and
drainage. If the project is a remodeling or renovation job, the esti
mator might consider the need to control noise and dust and to per
form work in such a way that occupants can continue to carry out
their activities as normally as possible. The information developed
during the site visit generally is recorded in a signed report that is
made part of the project estimate.
After the site visit is completed, the estimator must determine the
quantity of materials and labor that the firm will have to furnish.
This process, called the quantity survey or “takeoff,” is completed
by filling out standard estimating forms that provide spaces for the
entry of dimensions, number of units, and other information. A cost
estimator working for a general contractor, for example, will esti
mate the costs of the items the contractor must provide. Although
subcontractors will estimate their costs as part of their own bidding
process, the general contractor’s cost estimator often analyzes bids
made by subcontractors as well. Allowances for the waste of materi
als, inclement weather, shipping delays, and other factors that may
increase costs are made as the takeoff proceeds. In large construc
tion companies with several estimators, it is common practice for
them to specialize. For instance, one person may estimate only elec
trical work, whereas another may concentrate on excavation, con
crete, and forms. Also during the takeoff process, the estimator
must make decisions concerning equipment needs, sequence of op
erations, and crew size.
On completion of the quantity surveys, a total project cost sum
mary is prepared by the chief estimator that includes the cost of la
bor, equipment, materials, subcontracts, overhead, taxes, insurance,
markup, and any other costs that may affect the project. The chief
estimator then prepares the bid proposal for submission to the de
veloper.
In manufacturing and other firms, cost estimators generally are
assigned to the engineering or cost department. The estimators’ goal
in manufacturing is to accurately allocate costs of making products
to the people and machines they are produced by. Their job may be
gin with a request by managers to estimate the costs associated with
a major redesign of an existing product or the development of a new
product or production process. For example, to develop a new prod
uct, the estimator, working with engineers, first reviews blueprints
or conceptual drawings to determine the machining operations,
tools and gauges, and materials that would be required for the job.
The estimator then must prepare a parts list and determine whether
it is more efficient to produce or to purchase the parts. To do this,
the estimator must initiate inquiries for price information from po
tential suppliers. The next step is to determine the cost of manufac
turing each component of the product. Some high technology prod
ucts require massive amounts of computer programming during the
design phase. The cost of software is one of the fastest growing and
most difficult activities to estimate. Some cost estimators now spe
cialize in estimating computer software development and related
costs.
The cost estimator then prepares time-phase charts and learning
curves. The former indicate the time required for tool design and
fabrication, tool “debugging” (finding and correcting all problems),
manufacturing of parts, assembly, and testing. Learning curves re
present graphically the rate at which performance improves with
practice. These curves are commonly called “problem-elimination”
curves because many problems, such as engineering changes, re
work, parts shortages, and lack of operator skills, diminish as the
number of parts produced increases, resulting in lower unit costs.
Using all this information, the estimator then calculates the stan
dard labor hours necessary to produce a predetermined number of
units. Standard labor hours are then converted to dollar values, to
which are added factors for waste, overhead, and profit to yield the
unit cost in dollars. Then the estimator compares the cost of
purchasing parts with the firm’s cost of manufacturing them to de
termine which is cheaper.
Computers are widely used because cost estimating may involve
complex mathematical techniques. For example, to undertake a par
ametric analysis, a process used to estimate project costs on a per
unit basis subject to the specific requirements of a project, cost es
timators use a computer database containing information on costs
and conditions of many other similar projects. Although computers
cannot be used for the entire estimating process, they can relieve es
timators of much of the drudgery associated with routine, repetitive,
and time-consuming calculations. This leaves estimators with more
time to study and analyze projects and can lead to more accurate es
timates. (Details on various cost estimating techniques are available
from the organizations listed under Sources of Additional Informa
tion below.)
Working Conditions
Estimators spend most of their time in an office. Nevertheless, con
struction estimators must make frequent visits to work sites that are
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Cost estimators use quantitative techniques to analyze factors that
influence cost.
dirty and cluttered with debris. Likewise, estimators in manufactur
ing must spend time on the factory floor where it can be hot, noisy,
and dirty. Cost estimators usually operate under pressure, especially
when facing deadlines, because inaccurate estimating can cause a
firm to lose out on a bid that would have been profitable or to take
on a job that proves to be unprofitable. Although estimators usually
work a 40-hour week, much overtime is often required. In some in
dustries, frequent travel between the parent firm and its subsidiaries
or subcontractors is required. Government and other estimators
often visit firms to substantiate bids or prices.
Employment
Cost estimators held about 163,000 jobs in 1992, primarily in con
struction industries. Others worked for manufacturing industries.
Some worked for engineering and architectural services firms, busi
ness services firms, and a wide range of other industries. Construc
tion analysts in the Department of Housing and Urban Develop
ment and operations research, production control, cost, and price
analysts in the Departments of Defense and Energy may do signifi
cant amounts of cost estimating in the course of their regular duties.
(For more information, see the statement on operations research
analysts elsewhere in the Handbook.)
Cost estimators work in all parts of the country, usually in or near
major industrial, commercial, and government centers and in cities
and suburban areas undergoing rapid change or development where
large amounts of construction are taking place.
Training, Other Qualifications, and Advancement
Entry requirements vary by industry. In construction, employers
prefer applicants with a thorough knowledge of construction mater
ials, costs, and procedures in areas ranging from heavy construction
to electrical work, plumbing systems, or masonry work. In fact,
most construction estimators have experience as a construction
craft worker or as a contractor. Persons who combine this experi
ence with some postsecondary training in construction estimating or
a bachelor’s or associate degree in civil engineering, architectural
drafting, or building construction have the edge in landing jobs.
Those with an academic background who lack work experience
11
qualify for some jobs, but are at a distinct disadvantage when com
peting for jobs with experienced applicants. In manufacturing, em
ployers prefer persons with a degree in engineering, science, opera
tions research, mathematics, or statistics, or in accounting, finance,
business, or a related subject. In high-technology industries, great
emphasis is placed on experience involving quantitative techniques.
Computer literacy and, in some cases, programming capability are
required.
Regardless of background, estimators receive much training on
the job. Working with an experienced estimator, they become famil
iar with each step in the process. Those with no experience reading
construction specifications or blueprints first learn that aspect of the
work. Then they may accompany an experienced estimator to the
construction site or the shop floor where they observe the work be
ing done, take measurements, or perform other routine tasks. As
they become more knowledgeable, they learn how to tabulate quan
tities and dimensions from drawings and how to select which mate
rial prices are to be used.
Cost estimating is included as part of the civil engineering, indus
trial engineering, and construction management or construction en
gineering technology curriculums in many colleges and universities.
Many technical schools, junior colleges, and universities offer
courses and programs in cost estimating techniques and procedures.
In addition, cost estimating is a significant part of the master’s de
gree program in construction management offered by many colleges
and universities. Organizations that represent cost estimators, such
as AACE International and the Society of Cost Estimating and
Analysis, also sponsor educational programs. These programs help
students, estimators-in-training, and experienced estimators stay
abreast of changes affecting the profession.
Professional recognition through certification is valuable, because
it is a mark of the estimator’s competence and experience. To be
come certified, estimators generally must have between 3 and 7
years of estimating experience and must pass both a written and an
oral examination. In addition, certification requirements may in
clude publication of at least one article or paper in the field.
Cost estimators should have an aptitude for mathematics, be able
to quickly analyze, compare, and interpret detailed and sometimes
poorly defined information, and be able to make sound and accurate
judgments based on this knowledge. Assertiveness and self-confi
dence in presenting and supporting their conclusions are important.
For most estimators, advancement takes the form of higher pay
and prestige. Some move into a management position, such as pro
ject manager for a construction firm or manager of the industrial en
gineering department for a manufacturer. Others may go into busi
ness for themselves as consultants, providing estimating services for
a fee to government or construction and manufacturing firms.
Job Outlook
Employment of cost estimators is dependent primarily upon the
level of construction and manufacturing activity. Growth of the
construction industry, where about 58 percent of all cost estimators
are employed, will be the driving force behind the rising demand for
these workers, whose employment is expected to increase faster than
the average for all occupations through the year 2005. The fastest
growing sectors of the construction industry will be those associated
with spending on the Nation’s infrastructure. Construction and re
pair of highways and streets, bridges, and construction of more sub
way systems, airports, water and sewage systems, and electric
powerplants and transmission lines will stimulate demand for many
more cost estimators. In addition, spending on hotels, office and
other commercial buildings, and construction of residential units,
will add to the demand for cost estimators to predict the costs of
these projects. Job prospects should be best for those workers who
have substantial experience in various phases of construction or a
specialty craft or those with a degree in construction management,
engineering, or architectural drafting.
Employment of cost estimators in manufacturing should expand
as output increases and as more firms use the services of cost estima
tors to identify and control their operating costs. In manufacturing,
12
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experienced persons with degrees in engineering, science, mathe
matics, business administration, or economics and who have com
puter expertise should have the best job prospects. Certification is
an asset in all instances.
Earnings
Salaries for cost estimators vary widely by experience, education,
size of firm, and industry. According to limited data available, most
starting salaries in the construction industry for those with limited
training ranged from $17,000 to $21,000 in 1992. College graduates
in fields such as engineering or construction management that pro
vide a strong background in cost estimating can start at $30,000 or
more. Highly experienced individuals earned $75,000 or more.
Starting salaries and annual earnings in the manufacturing sector
were usually somewhat higher.
Related Occupations
Other workers who quantitatively analyze information based upon
relatively imprecise data include appraisers, cost accountants, cost
engineers, economists, evaluators, financial analysts, loan officers,
operations research analysts, underwriters, and value engineers.
Sources of Additional Information
Information about career opportunities, certification, schools, and
continuing education programs in cost estimating in the construc
tion industry may be obtained from:
W AACE International, P.O. Box 1557, Morgantown, WV 26507-1557.
13° Professional Construction Estimators Association of America, P.O. Box
11626, Charlotte, NC 28220-1626.
Similar information about cost estimating in government and
manufacturing and other industries is available from:
tse Society of Cost Estimating and Analysis, 101 S. Whiting St., Suite 313,
Alexandria, VA 22304.
Employment Interviewers
(D.O.T. 166.267-010)
Nature of the Work
Whether you are looking for a job or trying to fill one, you could
find yourself turning to an employment interviewer for help. Some
times called personnel consultants, human resources coordinators,
manpower development specialists, or employment brokers, em
ployment interviewers help jobseekers find employment and help
employers find qualified staff.
Working largely in private personnel supply firms or State em
ployment security offices (also known as job or employment service
centers), employment interviewers act as brokers, putting together
the best combination of applicant and job. To accomplish this, they
obtain information from employers as well as jobseekers.
Being a private industry employment interviewer is a sales job.
Counselors pool together a group of qualified applicants and try to
sell them to many different companies. Often a consultant will call a
company that has never been a client (cold-calling) with the aim of
filling their employment needs.
Employers generally pay private (but not public) agencies to re
cruit workers. The employer places a “job order” with the agency
describing the opening and listing requirements such as education,
licenses or credentials, and experience. Employment interviewers
often contact the employer to determine their exact personnel needs.
Jobseekers are asked to fill out forms or present resumes that detail
their education, experience, and other qualifications. They may be
interviewed or tested and have their background, references, and
credentials checked. The employment interviewer then reviews the
job requirements and the jobseeker qualifications to determine the
best possible match of position and employee. Although computers
are increasingly used to keep records and match employers with job
seekers, personal contact with an employment interviewer remains
an essential part of an applicant’s job search.
«
i
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Maintaining good relations with employers is an important part
of the employment interviewer’s job because this helps assure a
steady flow of job orders. Being prepared to fill an opening quickly
with a qualified applicant impresses employers most and keeps them
as clients.
Besides helping firms fill job openings, employment interviewers
help individuals find jobs. The services they provide depend upon
the company or type of agency they work for and the clientele it
serves.
Employment interviewers in personnel supply firms who place
permanent employees are generally called counselors. They usually
place job applicants who have the right qualifications but lack
knowledge of the job market for their desired position. Counselors
in these firms offer tips on personal appearance, suggestions on
presenting a positive image of oneself, background on the company
with which an interview is scheduled, and recommendations about
interviewing techniques. Many firms specialize in placing applicants
in particular kinds ofjobs, for example secretarial, word processing,
computer programming and computer systems analysis, engineer
ing, accounting, law, or health. Counselors in such firms usually
have 3 to 5 years of experience in the field into which they are plac
ing applicants.
Some employment interviewers work in temporary help services
companies. These companies send out their own employees to firms
that need temporary help. Employment interviewers take job orders
from client firms and match their requests against a list of available
workers. The employment interviewer selects the best qualified
worker available and assigns him or her to the firm requiring assis
tance. Sometimes these employees are placed with a company as a
temporary and later become a permanent employee.
Traditionally, firms that placed permanent employees usually
dealt with highly skilled applicants, such as lawyers or accountants,
and those placing temporary employees dealt with less skilled work
ers, such as secretaries or data entry operators. However, temporary
help services increasingly place workers with a wide range of educa
tional backgrounds and work experience; businesses are turning to
temporary employees to fill all types of positions to reduce costs of
pay and benefits associated with hiring permanent employees.
Regular evaluation of employee job skills is an important part of
the job for those interviewers working in temporary help services
companies. Initially, interviewers evaluate or test new employees’
skills to determine their abilities and weaknesses. The results, which
are kept on file, are referred to when filling job orders. In some
cases, the temporary help company will train employees to improve
their skills. Periodically, the interviewer may reevaluate or retest
employees to identify any new skills they may have developed.
The duties of employment interviewers in job service centers dif
fer somewhat because applicants may lack marketable skills. In
these centers, jobseekers present resumes and fill out forms that ask
about educational attainment, job history, skills, awards, certifi
cates, and licenses. An employment interviewer reviews these forms
and asks the applicant about the type of job sought and salary range
desired. Applicants sometimes have exaggerated expectations. Em
ployment interviewers must be tactful, but persuasive, if an appli
cant’s job or salary requests are unreasonable.
Applicants may need help identifying the kind of work for which
they are best suited. The employment interviewer evaluates the ap
plicant’s qualifications and either chooses an appropriate occupa
tion or class of occupations, or refers the applicant for vocational
testing.
After identifying an appropriate job type, the employment inter
viewer searches the file of job orders seeking a possible job match,
and refers the applicant to the employer if a match is found. If no
match is found, the interviewer shows the applicant how to use list
ings of available jobs.
Some applicants are hindered by problems such as poor English
language skills, no high school diploma, a history of drug or alcohol
dependency, or a prison record. The amount and nature of special
help for such applicants vary from State to State. In some States, it is
the employment interviewer’s responsibility to counsel hard-toplace applicants and refer them elsewhere for literacy or language
instruction, vocational training, transportation assistance, child
care, and other services. In other States, specially trained counselors
perform this task.
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i NwW
Dirt*!
Employment interviewers help bring jobseekers and employers
together.
Working Conditions
Employment interviewers usually work in comfortable, well-lighted
offices. Some interviewers may spend much of their time out of the
office interviewing clients or at a computer terminal. The work can
prove hectic, especially in temporary help service companies which
supply clients with immediate help for short periods of time, or
longer spells, depending on the client’s needs. Some overtime may
be required, and temporary workers may need their own transporta
tion to make employer visits. The private placement industry is
competitive, so counselors feel pressed to give their client companies
the best service.
Employment
Employment interviewers held about 79,000 jobs in 1992. Three out
of 5 worked for personnel supply services, generally of employment
firms or temporary help services companies, in the private sector.
One out of 5 worked for State or local government.
Employees of career consulting or outplacement firms are not in
cluded in these estimates. Workers in these firms help clients market
themselves; they do not act as job brokers, nor do they match indi
viduals with particular vacancies.
Training, Other Qualifications, and Advancement
Although most public and private agencies prefer to hire college
graduates for interviewer jobs, a degree is not always necessary. Hir
ing requirements in the private sector reflect a firm’s management
approach as well as the placements in which its interviewers special
ize. Those that place highly trained individuals such as accountants,
lawyers, engineers, physicians, or managers generally have some
training or experience in the field in which they are placing workers.
Thus, a bachelor’s, master’s, or even a doctoral degree may be a pre
requisite for some interviewers. Even with the right education, how
ever, sales ability is still required to succeed in the private sector.
Educational requirements play a lesser role for interviewers plac
ing secretaries, word processing operators, and other clerical per
sonnel. In these positions, qualities such as energy level, telephone
voice, and sales ability take precedence over educational attainment.
Entry level employment interviewer positions in the public sector
are generally filled by college graduates, even though the positions
do not always require a bachelor’s degree. Some States allow substi
tution of suitable work experience for college education. Suitable
work experience is generally defined as public contact work or time
spent at other jobs (including clerical jobs) in a job service office. In
States that permit employment interviewers to engage in counseling,
course work in counseling may be required.
Most States and many large city and county governments use
some form of merit system for hiring interviewers. Applicants may
take a written exam, undergo a preliminary interview, or submit
records of their education and experience for evaluation. Those who
13
meet the standards are placed on a list from which the top-ranked
candidates are selected for later interviews and possible hiring.
Other desirable qualifications for employment interviewers in
clude good communications skills, a desire to help people, office
skills, and adaptability. A friendly, confidence-winning manner is
an asset because personal interaction plays a large role in this occu
pation. Increasingly, employment interviewers use computers as a
tool; thus, knowledge of computers is helpful.
Advancement as an employment interviewer in the public sector
is often based on a system providing regular promotions and salary
increases for those meeting established standards. Advancement to
supervisory positions is highly competitive. In personnel supply
firms, advancement often depends on one’s success in placing work
ers and generally takes the form of greater responsibility and higher
income. Successful individuals may form their own businesses.
Job Outlook
Employment in this occupation is expected to grow as fast as the av
erage for all occupations through the year 2005. Most new jobs will
be with temporary help or personnel supply firms. Relatively little
growth is anticipated in State job service offices because of budget
ary problems and the increasing use of computerized job matching
and information systems. Some additional job openings will result
from the need to replace interviewers who do not meet their employ
er’s requirements for placing job applicants, and to replace exper
ienced interviewers who transfer to other occupations, retire, or
leave the labor force for other reasons.
Expansion of firms supplying temporary help will be responsible
for much of the growth in this occupation. Businesses of all types are
turning to temporary help services companies for additional work
ers during busy periods, for handling short-term assignments or
one-time projects, for launching new programs, and to reduce costs
of pay and benefits associated with hiring permanent employees.
Expansion of the personnel supply industry in general will also
spur job growth. Job orders will increase as the economy expands
and new businesses are formed; this is expected to heighten demand
for employment interviewers. Firms that lack the time or resources
to develop their own screening procedures will likely turn to person
nel firms.
Employment opportunities should be better in private placement
firms than in State job service centers. Entry to this occupation is
relatively easy for college graduates, or people who have had some
college courses, except in those positions specializing in placement
of workers with highly specialized training, such as lawyers, doc
tors, and engineers.
Employment interviewers who place permanent workers may
lose their jobs during recessions because employers reduce or elimi
nate hiring for permanent positions during downturns in the econ
omy. Also, during periods of high unemployment, employers have
fewer problems finding the workers they need, so they turn less
often to employment agencies for help. However, during these times
the need for the services of employment interviewers who place tem
porary employees may increase. Employers are increasingly turning
to temporary services because temporary employees cost less to hire
than permanent employees and are more flexible in terms of hours
and working conditions. Those who place permanent or temporary
personnel are more susceptible to layoffs than State job service em
ployment interviewers.
The salary, usually small by normal standards, guarantees these in
dividuals security through slow times. The commission provides the
incentive and opportunity for higher earnings.
Some personnel supply firms employ new workers for a 2-to 3month probationary period during which they draw a regular sal
ary. This gives new workers time to develop their skills and acquire
some clients. At the end of the probationary period, the new em
ployees are evaluated, and they are either let go or switched to a
commission basis.
According to the limited data available, average earnings of inter
viewers or counselors in personnel supply and temporary help ser
vices firms ranged from about $17,000 to $25,000 in 1991; some
earned considerably more. Salaries for those placing professional
workers are usually higher than those placing clerical workers.
Starting salaries for employment interviewers in State job service
centers vary from State to State and ranged from about $13,000 to
$20,000 a year in 1992.
Related Occupations
Employment interviewers serve as intermediaries for jobseekers and
employers. Workers in several other occupations do similar jobs.
Personnel officers screen and help hire new employees, but they
concern themselves mainly with the hiring needs of the firm; they
never represent individual jobseekers. Personnel officers may also
have additional duties in areas such as payroll or benefits manage
ment.
Career counselors help students and alumni find jobs, but they
primarily emphasize career counseling and decision making, not
placement.
Counselors in community organizations and vocational rehabili
tation facilities help clients find jobs, but they also assist with drug
or alcohol dependencies, housing, transportation, child care, and
other problems that stand in the way of finding and keeping a job.
Sources of Additional Information
For information on a career as an employment interviewer/coun
selor, contact:
13= National Association of Personnel Consultants, 3133 Mt. Vernon Ave.,
Alexandria, VA 22305.
t3= National Association of Temporary Services, 119 S. Saint Asaph St., Al
exandria, VA 22314.
For information on a career as an employment interviewer in
State employment security offices, contact:
13= Interstate Conference of Employment Security Agencies, 444 North
Capitol St. NW., Suite 142, Washington, DC 20001.
Engineering, Science, and Data Processing
Managers
(D.O.T.
007.167012.167029.167-
002.167-018; 003.167-034 and -070; 005.167-010 and -022;
014; 008.167-010; 010.161-010, -014, and .167-018; 011.161-010;
058 and-062; 018.167-022; 019.167-014; 022.161-010; 024.167-010;
014; 162.117-030; 169.167-030 and-082; and 189.117-014)
Nature of the Work
Earnings
Earnings in private firms vary, in part because the basis for compen
sation varies. Workers in personnel supply firms tend to be paid on a
commission basis; those in temporary help service companies re
ceive a salary.
When workers are paid on a commission basis (or salary plus
commission), total earnings depend on how much business they
bring in. This is usually based on the type as well as the number of
placements. Those who place more highly skilled or hard-to-find
employees earn more. An interviewer or counselor working strictly
on a commission basis often makes around 30 percent of what he or
she bills the client, although this varies widely from firm to firm.
Some work on a salary-plus-commission basis because they fill diffi
cult or highly specialized positions requiring long periods of search.
14
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Engineering, science, and data processing managers plan, coordi
nate, and direct research, development, design, production, and
computer related activities. They supervise a staff which may in
clude engineers, scientists, technicians, computer specialists, data
processing workers, along with support personnel.
Engineering, science, and data processing managers determine
scientific and technical goals within broad outlines provided by top
management. These goals may include the redesign of an industrial
machine, improvements in manufacturing processes, the develop
ment of a large computer program, or advances in basic scientific re
search. Managers make detailed plans for the accomplishment of
these goals—for example, they may develop the overall concepts of
new products or identify problems standing in the way of project
completion. They forecast costs and equipment and personnel needs
for projects and programs. They hire and assign scientists, engi
neers, technicians, computer specialists, data processing workers,
and support personnel to carry out specific parts of the projects, su
pervise their work, and review their designs, programs, and reports.
Managers coordinate the activities of their unit with other units
or organizations. They confer with higher levels of management;
with financial, industrial production, marketing, and other manag
ers; and with contractors and equipment suppliers. They also estab
lish working and administrative procedures and policies.
Engineering managers direct and coordinate production, opera
tions, quality assurance, testing, or maintenance in industrial plants;
or plan and coordinate the design and development of machinery,
products, systems, and processes. Many are plant engineers, who di
rect and coordinate the maintenance, operation, design, and instal
lation of equipment and machinery in industrial plants. Others man
age research and development activities that produce new products
and processes or improve existing ones.
Natural science managers oversee activities in agricultural sci
ence, chemistry, biology, geology, meteorology, or physics. They
manage research and development projects and direct and coordi
nate testing, quality control, and production activities in industrial
plants.
Electronic data processing managers direct, plan, and coordinate
data processing activities. Top level managers direct all computerrelated activities in an organization. Others manage computer oper
ations, software development, or data bases. They analyze the data
processing requirements of their organization and assign, schedule,
and review the work of systems analysts, computer programmers,
and computer operators. They determine computer hardware re
quirements, evaluate equipment options, and make purchasing deci
sions.
Some engineering, science, and data processing managers head a
section of perhaps 3 to 10 or more scientists, engineers, or computer
professionals. Above them are heads of divisions composed of a
number of sections, with as many as 15 to 50 scientists or engineers.
A few are directors of large laboratories or directors of research.
Working Conditions
Engineering, science, and data processing managers spend most of
their time in an office. Some managers, however, may also work in
laboratories or industrial plants, where they normally are exposed
to the same conditions as research scientists and may occasionally
be exposed to the same conditions as production workers. Most
work at least 40 hours a week and may work much longer on occa
sion to meet project deadlines. Some may experience considerable
pressure to meet technical or scientific goals within a short time or
within a tight budget.
Employment
Engineering, science, and data processing managers held about
337,000 jobs in 1992. Although these managers are found in almost
all industries, nearly two-fifths are employed in manufacturing, es
pecially in the industrial machinery and equipment, electrical and
electronic equipment, transportation equipment, instruments, and
chemicals industries. They also work for engineering, management,
and computer and data processing services companies. Others work
for government, colleges and universities, and nonprofit research
organizations. The majority are most likely engineering managers,
often managing industrial research, development, and design
projects.
Training, Other Qualifications, and Advancement
Experience as an engineer, mathematician, natural scientist, or
computer professional is the usual requirement for becoming an en
gineering, science, or data processing manager. Consequently, edu
cational requirements are similar to those for scientists, engineers,
and data processing professionals.
Engineering managers start as engineers. A bachelor’s degree in
engineering from an accredited engineering program is acceptable
for beginning engineering jobs, but many engineers increase their
chances for promotion to manager by obtaining a master’s degree in
engineering or business administration. A degree in business admin
istration or engineering management is especially useful for becom
ing a general manager.
Natural science managers usually start as a chemist, physicist, bi
ologist, or other natural scientist. Most natural scientists engaged in
basic research have a Ph.D. degree. Some in applied research and
other activities may have lesser degrees. First-level science manag
ers are usually specialists in the work they supervise. For example,
the manager of a group of physicists doing optical research is almost
always a physicist who is an expert in optics.
Most data processing managers have been systems analysts, al
though some may have experience as programmers, operators, or in
other computer specialties. There is no universally accepted way of
preparing for a job as a systems analyst. Many have degrees in com
puter or information science, computer information systems, or
data processing and have experience as computer programmers. A
bachelor’s degree is usually required and a graduate degree often is
preferred. A typical career advancement progression in a large or
ganization would be from programmer to programmer/analyst, to
systems analyst, and then to project leader or senior analyst. The
first real managerial position might be as project manager, program
ming supervisor, systems supervisor, or software manager.
In addition to educational requirements, scientists, engineers, or
computer specialists generally must have demonstrated above-aver
age technical skills to be considered for promotion to manager.
Superiors also look for leadership and communication skills, as well
as managerial attributes such as the ability to make rational deci
sions, to manage time well, to organize and coordinate work effec
tively, to establish good working and personal relationships, and to
motivate others. Also, a successful manager must have the desire to
manage. Many scientists, engineers, and computer specialists want
to be promoted but actually prefer doing technical work.
Some scientists and engineers become managers in marketing,
personnel, purchasing, or other areas or become general managers.
Job Outlook
I 4
Engineering managers direct the research, development, and
manufacture of a product.
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Employment of engineering and science managers is expected to in
crease faster than the average for all occupations through the year
2005. Opportunities for those who wish to become engineering, sci
ence, and data processing managers should be closely related to the
growth of the occupations they supervise and the industries in
which they are found. (See the statements on natural scientists, engi
neers, computer programmers, and computer scientists and systems
analysts elsewhere in the Handbook.)
Underlying much of the growth of managers in science and engi
neering are competitive pressures and advancing technologies
which force companies to update and improve products more fre
quently. Research and investment in plants and equipment to ex
pand output of goods and services and to raise productivity also will
15
add to employment requirements for science and engineering man
agers involved in research and development, design, and the opera
tion and maintenance of production facilities.
Many of the industries which employ engineers and scientists de
rive a large portion of their business from defense contracts. Because
defense expenditures are being reduced, employment growth and
job outlook for managers in these industries may not be as strong in
the future as in the 1980’s, when defense expenditures were increas
ing.
Employment of data processing managers will increase rapidly
due to the fast paced expansion of the computer and data processing
services industry and the increased employment of computer sys
tems analysts. Large computer centers are consolidating or closing
as small computers become more powerful, and more automated
systems are resulting in fewer opportunities for data processing
managers at computing centers. However, as the economy expands
and as advances in technology lead to broader applications for com
puters, opportunities should increase and employment growth
should be brisk.
Despite growth in employment, most job openings will result
from the need to replace workers who leave the occupation. Because
many engineers, natural scientists, and computer specialists are eli
gible for management and seek promotion, there can be substantial
competition for these openings.
Earnings
Earnings for engineering, science, and data processing managers
vary by specialty and level of management. Science and engineering
managers had average salaries that ranged from $50,000 to well over
$100,000 for the most senior managers in large organizations, ac
cording to the limited data available. Data processing managers had
salaries that ranged from $35,000 to $80,000. Managers often earn
about 15 to 25 percent more than those they directly supervise, al
though there are cases where some employees are paid more than
the manager who supervises them, especially in research.
In addition, engineering, science, and data processing managers,
especially those at higher levels, often are provided more benefits
than non-managerial workers in their organizations. Higher level
managers often are provided with expense accounts, stock option
plans, and bonuses.
Related Occupations
The work of engineering, science, and data processing managers is
closely related to that of engineers, natural scientists, computer per
sonnel, and mathematicians. It is also related to the work of other
managers, especially general managers and top executives.
Sources of Additional Information
Contact the sources of additional information on engineers, natural
scientists, and systems analysts that are listed in statements on these
occupations elsewhere in the Handbook.
Farm Operators and Managers
(D.O.T. 180.117, .161, .167-018, -026 through -046, -058, and -066; 401.161;
402.161; 403.161; 404.161; 405.161; 407.161; 410.161; 411.161; 412.161;
413.161; and 421.161)
Nature of the Work
American farm operators and managers direct the activities of one
of the world’s largest and most productive agricultural sectors.
They produce enough food and fiber to meet the needs of our Nation
and to export huge quantities to countries around the world.
Farm operators may be farmer-owners or tenant farmers who rent
the use of land. Their specific tasks are determined by the type of
farm they operate. On crop farms- -farms growing grain, cotton and
other fibers, fruit, and vegetables—farm operators are responsible
for planning, tilling, planting, fertilizing, cultivating, spraying, and
harvesting. After the harvest, they make sure that the crops are
16
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properly stored or packaged, loaded, and promptly marketed. On
livestock, dairy, and poultry farms, farm operators must plan, feed,
and care for the animals and keep bams, pens, coops, and other farm
buildings clean and in repair. They also oversee breeding, some
slaughtering, and marketing activities. On horticultural specialty
farms, farm operators oversee the production of ornamental plants,
nursery products—such as flowers, bulbs, shrubbery, and sod—and
fruits and vegetables grown in greenhouses.
Farm operators must make many managerial decisions. Their
farm output is strongly influenced by the weather, disease, fluctua
tions in prices of domestic and foreign farm products, and, in many
cases, Federal farm programs. Farm operators must determine the
best time to seed, fertilize, cultivate, harvest, and market. They must
carefully plan the combination of crops they grow so that, if the
price of one crop drops, they will have sufficient income from an
other to make up for it. Also, prices of crops and livestock change
from one month to another, and farm operators who plan ahead
may be able to store their crops or keep their livestock to take ad
vantage of better prices later in the year. Farm operators may have
to secure loans from credit agencies to finance the purchase of ma
chinery, fertilizer, livestock, and feed. They also keep extensive fi
nancial and inventory records of the farm operation; increasingly,
farm operators are turning to computers to assist in these tasks.
Farm operators perform tasks ranging from caring for livestock,
to operating machinery, to erecting fences and sheds. The size of the
farm often determines which of these tasks operators will handle
themselves. Operators of large farms have employees who do much
of the physical work that small-farm operators do themselves. Oper
ators are responsible for training workers in the use of equipment
and supervising them in the performance of their work. Although
employment on most farms is limited to the farm operator and one
or two family workers or hired employees, some large farms have
100 or more full-time and seasonal workers. Some of these workers
are in nonfarm occupations, such as truckdriver, sales representa
tive, bookkeeper, and computer specialist.
Farm managers have duties and responsibilities that vary widely.
For example, the owner of a very large livestock farm may employ a
farm manager to oversee a single activity such as feeding livestock.
When managing a small crop farm for an absentee owner, on the
other hand, the farm manager may assume responsibility for all
functions, from planning the crop to participating in planting and
harvesting activities. Farm management firms and corporations in
volved in agriculture employ highly trained professional farm man
agers who may manage some or all farm operations or oversee ten
ant operators of several farms. In these cases, farm managers may
establish output goals, determine financial constraints, and monitor
production and marketing.
Working Conditions
The soil, topography of the land, and the climate of an area gener
ally determine the type of farming that is done. For example, wheat,
com, and other grains are most efficiently grown on large farms on
level land where large, complex machinery can best be used. Thus,
these crops are prevalent on the prairies of Iowa and Illinois or the
plains of Nebraska and Kansas. Crops that require longer growing
seasons, such as cotton, tobacco, and peanuts, are grown chiefly in
the South. Most of the country’s fruits and vegetables come from
California, Texas, and Florida. Many dairy herds are found in the
areas of good pastureland, such as Wisconsin, New York, and Min
nesota. Livestock production requires large tracts of land for graz
ing and feed grain production and thus is concentrated in Texas,
Nebraska, Iowa, and some Western States.
Many types of farming are seasonal. Although many farm opera
tors and managers on crop farms work from sunup to sundown dur
ing the planting and harvesting seasons, they often work on the farm
only 6 to 7 months a year, and many have second jobs off the farm.
On farms that raise animals for meat or dairy products, work goes
on constantly throughout the year. Because animals must be fed and
watered every day and cows must be milked twice daily, operators
of these farms must share work with others or they will rarely get
the chance to be away.
Farm work can be hazardous. Farmers may be injured by plant
ing and harvesting machinery or large livestock. In addition, they
“RSrS--
On some large farms, farm operators and managers direct 100 or
more full-time and seasonal workers.
are subject to illnesses and diseases from improper handling and
breathing of dangerous pesticides and chemicals.
On very large farms, farm operators spend substantial time meet
ing with farm managers or farm supervisors in charge of various ac
tivities. Professional farm managers overseeing several farms may
divide their time between traveling to meet with farm operators and
planning and scheduling farm operations while in their offices.
Employment
Farm operators and managers held about 1,218,000 jobs in 1992.
Most managed crop production activities while others managed
livestock production. A relatively small number were involved in
agricultural services such as contract harvesting and farm labor
contracting.
Training, Other Qualifications, and Advancement
Growing up on a family farm and participating in agricultural pro
grams for young people sponsored by the National FFA Organiza
tion or the 4-H youth educational programs are important sources
of training for those interested in pursuing agriculture as a career.
However, modem farming requires increasingly complex scientific,
business, and financial decisions. Thus, even young people who have
lived on farms must acquire a strong educational background. High
school training should include courses in mathematics and the sci
ences. Completion of a 2-year and preferably a 4-year program in a
college of agriculture is becoming increasingly important.
Not all people who want to become a farm manager grew up on a
farm. For these people, a bachelor’s degree in agriculture is essen
tial. In order to qualify for a farm manager position, they will need
several years’ work experience in many different phases of farm op
eration.
Students should select the college most appropriate to their spe
cific interests and location. All States have land-grant universities
that include a college of agriculture; their major programs of study
include areas such as dairy science, agricultural economics and busi
ness, horticulture, crop and fruit science, soil science, and animal
science. Also, colleges usually offer special programs of study cover
ing products important to the area in which they are located, such as
animal science programs at colleges in the Western and Plains
States. Whatever one’s interest, the college curriculum should in
clude courses in farm production and in business, finance, and eco
nomics.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Professional status can be enhanced through voluntary certifica
tion as an accredited farm manager (AFM) by the American Society
of Farm Managers and Rural Appraisers. Certification requires sev
eral years’ farm experience and the appropriate academic back
ground—a bachelor’s degree or preferably a master’s degree in a
field of agricultural science—and passing courses and examinations
relating to business, financial, and legal aspects of farm manage
ment.
Farm operators and managers need to keep abreast of continuing
advances in farming methods both in the United States and abroad.
They should be willing to try new processes and adapt to constantly
changing technologies to produce their crops or raise their livestock
more efficiently. Keeping abreast of changing foreign agricultural
policies and international exchange rates is important to operators
of farms producing internationally traded crops and livestock. Op
erators also must have enough technical knowledge of crops and
growing conditions and plant and animal diseases to be able to make
decisions that ensure the successful operation of their farms.
Knowledge of the relationship between farm operations—for exam
ple, the use of pesticides—and environmental conditions is essential.
Mechanical aptitude and the ability to work with tools of all kinds
also are valuable skills for the operator of a small farm, who often
must maintain and repair machinery or farm structures.
Farm operators and managers must have the managerial skills
necessary to organize and operate a business. A basic knowledge of
accounting and bookkeeping can be helpful in keeping financial
records, and a knowledge of credit sources is essential. They also
must keep abreast of complex safety regulations, requirements of
government agricultural support programs, and paperwork faced by
other small businesses. Familiarity with computers is important, es
pecially on large farms, where computers are often used for record
keeping and business analysis. For example, some farmers use per
sonal computers connected to telephones to get the latest
information on prices of farm products and other agricultural news.
Job Outlook
Employment of farm operators and managers is expected to con
tinue to decline through the year 2005. The expanding world popu
lation is increasing the demand for food and fiber. However, in
creasing productivity in the highly efficient U.S. agricultural sector
is expected to easily meet domestic and export requirements with
fewer but larger farms. Although requirements for machinery and
equipment will remain stable or increase slightly, land and labor re
quirements in the agricultural sector will decrease, but at a slower
rate than in the past. The overwhelming majority of job openings
will result from the need to replace farmers who retire or leave the
occupation for economic or other reasons.
The trend toward fewer and larger farms, primarily through
mergers, is expected to continue to reduce the number of jobs for
farm operators. A farm can be acquired by inheritance; however,
purchasing a farm is expensive and requires substantial capital. In
addition, sufficient funds are required to withstand the adverse ef
fects of climate and price fluctuations upon farm output and income
and to cover operating costs—livestock, feed, seed, and fuel. Also,
the complexity of modern farming and keen competition among
farmers leave little room for the marginally successful farmer or the
“gentleman” farmer who considers farming a hobby rather than a
necessity. Small and medium-size farms, many of which do not gen
erate sufficient income to support the desired standard of living, are
expected to decrease in number. However, the small but increasing
number of horticultural farms may provide some employment op
portunities.
The increase in the average size of farms and in the complexity of
farming are expected to spur demand for highly trained and exper
ienced farm managers. Additional demand will come from the in
creasing number of absentee owners who, rather than work their
farms, often hire farm managers to run the farm or oversee tenant
farmers.
Earnings
Farmers’ incomes vary greatly from year to year, since prices of
farm products fluctuate depending upon weather conditions and
other factors that influence the amount and quality of farm output
17
t3’ American Society of Farm Managers and Rural Appraisers, 950 South
Cherry St., Suite 106, Denver, CO 80222.
Farms are decreasing in number but
increasing in size.
Number of farms (thousands)
Average size (acres)
For general information about farm occupations, opportunities,
and 4-H activities, contact your local county extension service of
fice.
farms
Financial Managers
- 460
2,300
(D.O.T. 160.167-058; 161.117-018; 169.167-086; 186.117-066, -070, -078,
-086; .167-054, -086; and 189.117-038)
Nature of the Work
2,050 -
2,000
Source: U.S. Department of Agriculture
and the demand for those products. A farm that shows a large profit
in one year may show a loss in the following year. Many farmers—
primarily operators of small farms—have income from off-farm
business activities often several times larger than their farm income.
Farm income also varies greatly depending upon the type and size
of farm. According to the U.S. Department of Agriculture, average
cash income net of expenses in 1993 was over $100,000 for operators
of vegetable and fruit, cotton, and poultry and egg farms. On the
other hand, cattle and tobacco farms generated less than $15,000 in
cash income, on the average. Generally, large farms generate more
income than small farms. Exceptions include some specialty farms
producing low-volume but high-value horticultural and fruit prod
ucts.
Farm managers who were paid a wage or salary and who worked
full time had median earnings of $382 a week in 1992. The middle
half earned between $382 and $545 a week. The highest paid manag
ers earned over $696 a week in 1992, while the lowest paid made less
than $185 a week.
Farmers and self-employed farm managers make their own provi
sions for benefits. As members of farm organizations, they may de
rive benefits such as group discounts on health and life insurance
premiums. Salaried farm managers may receive housing and the
usual benefits such as paid vacations and health insurance.
Related Occupations
Farmers and farm managers strive to improve the quality of agricul
tural products and the efficiency of farms. Workers with similar
functions include agricultural engineers, animal breeders, animal
scientists, county agricultural agents, dairy scientists, extension ser
vice specialists, feed and farm management advisors, horticulturalists, plant breeders, and poultry scientists.
Sources of Additional Information
For general information about farming and agricultural occupa
tions, contact:
tw American Farm Bureau Federation, 225 Touhy Ave., Park Ridge, IL
60068.
For information about certification as an accredited farm man
ager, contact:
18
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Practically every firm—whether in manufacturing, communica
tions, finance, education, or health care—has one or more financial
managers. Some of them are treasurers, controllers, credit manag
ers, cash managers; they prepare the financial reports required by
the firm to conduct its operations and to ensure that the firm satis
fies tax and regulatory requirements. Financial managers also over
see the flow of cash and financial instruments, monitor the exten
sion of credit, assess the risk of transactions, raise capital, analyze
investments, develop information to assess the present and future fi
nancial status of the firm, and communicate with stock holders and
other investors.
In small firms, chief financial officers usually handle all financial
management functions. However, in large firms, these officers over
see all financial management departments and help top managers
develop financial and economic policy and establish procedures,
delegate authority, and oversee the implementation of these policies.
Highly trained and experienced financial managers head each fi
nancial department. Controllers direct the preparation of all finan
cial reports—for example, income statements, balance sheets, and
special reports such as depreciation schedules. They oversee the ac
counting, audit, or budget departments. Cash and credit managers
monitor and control the flow of cash receipts and disbursements to
meet the business and investment needs of the firm. For example,
cash flow projections are needed to determine whether loans must
be obtained to meet cash requirements, or whether surplus cash may
be invested in interest-bearing instruments. Risk and insurance
managers oversee programs to minimize risks and losses that may
arise from financial transactions and business operations under
taken by the institution. Credit operations managers establish credit
rating criteria, determine credit ceilings, and monitor their institu
tion’s extension of credit. Reserve officers review their institution’s
financial statements and direct the purchase and sale of bonds and
other securities to maintain the asset-liability ratio required by law.
User representatives in international accounting develop integrated
international financial and accounting systems for the banking
transactions of multinational organizations. A working knowledge
of the financial systems of foreign countries is essential.
Financial institutions—such as banks, savings and loan associa
tions, credit unions, personal credit institutions, and finance compa
nies—may serve as depositories for cash and financial instruments
and offer loans, investment counseling, consumer credit, trust man
agement, and other financial services. Some specialize in specific fi
nancial services. Financial managers in financial institutions include
vice presidents—who may head one or more financial depart
ments—bank branch managers, savings and loan association man
agers, consumer credit managers, and credit union managers, for
example. These managers make decisions in accordance with policy
set by the institution’s board of directors and Federal and State laws
and regulations.
Due to changing regulations and increased government scrutiny,
financial managers in financial institutions must place greater em
phasis on accurate reporting of financial data. They must have de
tailed knowledge of industries allied to banking—such as insurance,
real estate, and securities—and broad knowledge of business and in
dustrial activities. With growing domestic and foreign competition,
knowledge of an expanding and increasingly complex variety of fi
nancial services is becoming a necessity for financial managers in fi
nancial institutions and other corporations. Besides supervising fi
nancial services, financial managers in financial institutions may
advise individuals and businesses on financial planning.
Working Conditions
Financial managers are provided with comfortable offices, often
close to top managers and to departments which develop the finan
cial data these managers need. Although overtime may sometimes
be required, financial managers typically work a 40-hour week. At
tendance at meetings of financial and economic associations and
similar activities is often required. In very large corporations, some
traveling to subsidiary firms and to customer accounts may be nec
essary.
Employment
Financial managers held about 701,000 jobs in 1992. Although
these managers are found in virtually every industry, one-third were
employed by financial institutions—banks, savings institutions, fi
nance companies, credit unions, insurance companies, securities
dealers, and real estate firms, for example. Nearly another third
were employed by services industries, including business, health, so
cial, and management services.
Training, Other Qualifications, and Advancement
A bachelor’s degree in accounting or finance, or in business admin
istration with an emphasis on accounting or finance, is suitable aca
demic preparation for financial managers. A Master of Business Ad
ministration (MBA) degree is increasingly valued by employers.
Many financial management positions are filled by promoting ex
perienced, technically skilled professional personnel—for example,
accountants, budget analysts, credit analysts, insurance analysts,
loan officers, and securities analysts—or accounting or related de
partment supervisors in large institutions.
Due to the growing complexity of global trade, shifting Federal
and State laws and regulations, and a proliferation of new, complex
financial instruments, continuing education is becoming vital for fi
nancial mangers. Firms often provide opportunities for workers to
broaden their knowledge and skills and encourage employees to
take graduate courses at colleges and universities or attend confer
ences sponsored by the company. In addition, financial manage
ment, banking, and credit union associations, often in cooperation
with colleges and universities, sponsor numerous national or local
training programs. Persons enrolled prepare extensively at home,
then attend sessions on subjects such as accounting management,
budget management, corporate cash management, financial analy
sis, international banking, and data processing and management in
formation systems. Many firms pay all or part of the costs for those
who successfully complete courses. Although experience, ability,
and leadership are emphasized for promotion, advancement may be
accelerated by this type of special study.
In some cases, financial managers may also broaden their skills
and exhibit their competency in specialized fields by attaining pro
fessional certification. For example, the Association for Investment
Management and Research confers the Chartered Financial Ana
lyst designation to investment professionals who have a bachelor’s
degree, pass three test levels, and have 3 or more years of experience
in the field. The National Association of Credit Management ad
ministers a three-part certification program for business credit pro
fessionals. Through a combination of experience and examinations,
these financial managers pass through the level of Credit Business
Associate, to Credit Business Fellow, to Certified Credit Executive.
The Treasury Management Association confers the Certified Cash
Manager designation to those who pass an examination and have 2
years of relevant experience.
Persons interested in becoming financial managers should like to
work independently, deal with people, and analyze detailed account
information. The ability to communicate, both orally and in writing,
is increasingly important. They also need tact, good judgment, and
the ability to establish effective personal relationships to oversee su
pervisory and professional staff members.
Financial analysis and management have been revolutionized by
technological improvements in personal computers and data
processing equipment. Knowledge of their applications is vital to
upgrade managerial skills and to enhance advancement opportuni
ties.
Because financial management is critical for efficient business op
erations, well-trained, experienced financial managers who display a
strong grasp of the operations of various departments within their
organization are prime candidates for promotion to top manage
ment positions. Some financial managers transfer to closely related
positions in other industries. Those with extensive experience and
access to sufficient capital may head their own consulting firms.
Job Outlook
Outstanding financial managers are prime candidates for promotion
to top management jobs.
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Federal Reserve Bank of St. Louis
Like other managerial occupations, the number of applicants for fi
nancial management positions is expected to exceed the number of
job openings, resulting in competition for jobs. Employment of fi
nancial managers is expected to increase about as fast as the average
for all occupations through the year 2005. In addition, job openings
will arise each year as financial managers transfer to other occupa
tions, start their own businesses, or retire. Similar to other manag
ers, most financial managers who leave their jobs seek other posi
tions in their field; relatively few experienced workers leave the
occupation permanently each year.
Although the need for skilled financial management will increase
due to the demands of global trade, the proliferation of complex fi
nancial instruments, and continually changing Federal and State
laws and regulations, employment growth among financial manag
ers will be tempered by corporate restructuring and downsizing in
many industries. Many firms are reducing their ranks of middle
managers in an effort to be more efficient and competitive. Simi
larly, as the banking industry consolidates and banks merge their
operations, some financial management positions may be elimi
nated. These forces will prevent the growing need for skilled finan
cial managers from resulting in dramatic employment growth.
Many opportunities will still exist for the most skilled, adaptable,
and knowledgeable financial managers. Those who keep abreast of
the latest financial instruments and changing regulations, and those
familiar with a range of financial services—for example, banking,
business credit, credit unions, insurance, real estate, and
securities—and with data processing and management information
19
systems will enjoy the best employment opportunities. Developing
expertise in a rapidly growing industry, such as health care, also
may prove helpful.
banks and savings and related institutions, as well as the names of
their principal officers, consult one of the following directories.
XS° The American Financial Directory (Norcross, Ga., McFadden Business
Publications).
Earnings
The median annual salary of financial managers was $39,700 in
1992. The lowest 10 percent earned $20,200 or less, while the top 10
percent earned over $77,800.
According to a survey by Robert Half International, a staffing
services firm specializing in accounting and finance, salaries of chief
financial officers/treasurers ranged from $56,000 in the smallest
firms to $290,000 in the largest firms in 1993; controllers, $44,000 to
$129,000; and assistant controllers, $38,000 to $75,000.
The salary level depends upon the manager’s experience and the
size and location of the organization, and is likely to be higher in
large organizations and cities. Many financial managers in private
industry receive additional compensation in the form of bonuses,
which also vary substantially by size of firm.
Related Occupations
Financial managers combine formal education with experience in
one or more areas of finance—such as asset management, lending,
credit operations, securities investment, or insurance risk and loss
control. Workers in other occupations which require similar train
ing and ability include accountants and auditors, budget officers,
credit analysts, loan officers, insurance consultants, portfolio man
agers, pension consultants, real estate advisors, securities analysts,
and underwriters.
Sources of Additional Information
For general information about financial management careers, con
tact:
XS’ Financial
Management Association, Inti., College of Business Adminis
tration, University of South Florida, Tampa, FL 33620-5500.
O’Financial Managers Society, 8 S. Michigan Ave., Suite 500, Chicago, IL
60603.
For information about financial management careers in banking
and related financial institutions, contact:
XS" American Bankers Association, Center for Banking Information, 1120
Connecticut Ave. NW., Washington, DC 20036.
For information about financial management careers in credit un
ions, contact:
W Credit Union Executives Society, P.O. Box 14167, Madison, WI 53714.
For information about financial careers in business credit man
agement, the Certified Credit Executive program, and institutions
offering graduate courses in credit and financial management, con
tact:
W National Association of Credit Management (NACM), and Credit Re
search Foundation, the education and research affiliate of NACM, 8815
Centre Park Dr., Columbia, MD 21045-2117.
For information about careers in corporate cash management and
the Certified Cash Manager program, contact:
O’Treasury Management Association, 7315 Wisconsin Ave., Bethesda,
MD 20814.
For information about the Chartered Financial Analyst program,
contact:
XS1 Association for Investment Management and Research, 5 Boar’s Head
Lane, P.O. Box 3668, Charlottesville, VA 22903.
For information about financial management careers in the
health care industry, contact:
O’ Healthcare
Financial Management Association, 2 Westbrook Corporate
Center, Suite 700, Westchester, IL 60154.
For information on careers and courses for financial managers in
the banking industry, contact:
O’ Savings
and Community Bankers of America, Education Services,
Center For Financial Studies, 200 Barlow Rd., Fairfield, CT 06430.
Information about careers with the Federal Reserve System is
available from:
O’ Board of Governors, The Federal Reserve System, Division of Human
Resources Management, Washington, DC 20551, or from the human re
sources department of the Federal Reserve bank serving each geographic
area.
State bankers’ associations can furnish specific information about
job opportunities in their State. Or write directly to a particular
bank to inquire about job openings. For the names and addresses of
20
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Federal Reserve Bank of St. Louis
The U.S. Savings and Loan Directory (Chicago, Rand McNally & Co.).
O’ Rand McNally Credit Union Directory (Chicago, Rand McNally & Co.).
O’ Polk’s World Bank Directory (Nashville, R.L. Polk & Co.).
XS”
Funeral Directors
(D.O.T. 187.167-030)
Nature of the Work
Since the earliest of times, most peoples have held funeral ceremo
nies. The dead have ritually been interred in pyramids, cremated on
burning pyres, and sunk beneath the oceans’ waves. Even today, fu
neral practices and rites vary greatly among various cultures and re
ligions. Among the many diverse groups in the United States, fu
neral practices generally share some common elements: Removal of
the remains of the deceased to a mortuary, preparation of the re
mains, performance of a ceremony that honors the deceased and ad
dresses the spiritual needs of the living as well as the dead, and the
burial or destruction of the remains. To unburden themselves of ar
ranging and directing these tasks, grieving families turn to funeral
directors.
Funeral directors are also called morticians or undertakers. Al
though this career does not appeal to everyone, the men and women
who work as funeral directors take great pride in the fact that they
provide efficient and appropriate services that give comfort to their
customers.
Funeral directors interview the family to learn what they desire
with regard to the nature of the funeral the clergy members or other
persons who will officiate, and the final disposition of the remains;
sometimes the deceased leave detailed instructions for their own fu
nerals. Directors establish with the family the location, dates, and
times of wakes, memorial services, and burials. They also send a
hearse to carry the body to the funeral home or mortuary.
Burial in a casket is the most common method of disposing of re
mains in this country, although entombments also occur. Crema
tion, which is the burning of a body in a special furnace, is increas
ingly selected. Even when remains are cremated, the ashes are often
placed in an urn and buried. Funeral directors usually stock a selec
tion of caskets and urns for families to purchase.
Directors arrange the details and handle the logistics of funerals.
They prepare obituary notices and have them placed in newspapers,
arrange for pallbearers and clergy, schedule with the cemetery the
opening and closing of a grave, decorate and prepare the sites of all
services, and provide for the transportation of the remains, mourn
ers, and flowers between sites. They also direct preparation and
shipment of remains for out-of-State burial.
Funeral services may take place in the home, a house of worship,
or the funeral home and at the grave site or crematory. Services may
be nonreligious, but often they reflect the religion of the family, so
funeral directors must be familiar with the funeral and burial cus
toms of many faiths, ethnic groups, and fraternal organizations. For
example, members of some religions seldom have the bodies of the
deceased embalmed or cremated.
Most funeral directors are also trained, licensed, and practicing
embalmers. In large funeral homes, an embalming staff of one or
more embalmers, plus several apprentices, may be employed. Em
balming is a sanitary, cosmetic, and preservative process through
which the body is prepared for interment. If more than 24 hours or
so elapses between death and interment, State laws usually require
that remains be embalmed. The embalmer washes the body with
germicidal soap and replaces the blood with embalming fluid to pre
serve the body. Embalmers may reshape and reconstruct disfigured
or maimed bodies using materials, such as clay, cotton, plaster of
Paris, and wax. They also may apply cosmetics to provide a natural
appearance, and then dress the body and place it in a casket. Em
balmers may maintain records, such as itemized lists of clothing or
valuables delivered with the body and the name of person em
balmed.
Funeral directors also handle the paper work involved with the
person’s death. They may help family members apply for veterans’
burial benefits, notify the Social Security Administration of the
death, apply on behalf of survivors for the transfer of any pensions
or annuities, and submit papers to State authorities so that a formal
certificate of death may be issued and copies distributed to heirs.
Funeral directors are also responsible for the success and the
profitability of their businesses. Directors keep records on expenses,
purchases, and services rendered; prepare and send invoices for ser
vices; prepare and submit reports for unemployment insurance; pre
pare Federal, State, and local tax forms; and prepare itemized bills
for customers. Directors also strive to foster a cooperative spirit and
friendly attitude among employees and a compassionate demeanor
toward the families.
Most funeral homes have a chapel, one or more viewing rooms, a
casket-selection room, and a preparation room. Equipment may in
clude a hearse, a flower car, limousines, and sometimes an ambu
lance.
Working Conditions
Funeral directors often work long, irregular hours. Shift work is
sometimes necessary because funeral home hours include evenings
and weekends. In smaller funeral homes, working hours vary, but in
larger homes employees generally work 8 hours a day, 5 or 6 days a
week.
Funeral directors occasionally come into contact with the re
mains of persons who had contagious diseases, but the possibility of
infection is remote if strict health regulations are followed.
To show proper respect and consideration for the families and the
dead, funeral directors must dress appropriately. The profession
usually requires short, neat hair cuts and trim beards if any, for men.
Suits, ties, and dresses are customary for a conservative look.
Employment
Funeral directors held about 27,000 jobs in 1992. About one-third
were self-employed. Nearly all worked in the funeral service and
crematory industry, but a few worked for the Federal Government.
Training, Other Qualifications, and Advancement
Funeral directors must be licensed in all but one State, Colorado. Li
censing laws vary from State to State, but most require applicants to
be 21 years old, have a high school diploma, complete some college
training in mortuary science, and serve an apprenticeship. After
passing a State board licensing examination, new funeral directors
may join the staff of a funeral home. Embalmers are required to be
licensed in all States, and some States issue a single license for both
funeral directors and embalmers. In States that have separate licens
ing and apprenticeship requirements for the two positions, most
people in the field obtain both licenses. Persons interested in a career
as a funeral director should contact their state board for specific
state requirements.
College programs in mortuary science usually last from 1 to 4
years, depending on the school. There were 40 mortuary science
programs accredited by the American Board of Funeral Service Ed
ucation in 1992. One-year mortuary science programs offered by
some vocational schools emphasized basic subjects such as anat
omy, physiology, embalming techniques, and restorative art. Twoyear programs were offered by a small number of community and
junior colleges, and a few colleges and universities offered both 2and 4-year programs. Longer mortuary science programs include
courses in business management, accounting, and use of computers
in funeral home management and client services. They also included
courses in the social sciences and legal, ethical, and regulatory sub
jects, such as psychology, grief counseling, oral and written commu
nication, funeral service law, business law, and ethics.
The National Foundation of Funeral Service offers a continuing
education program designed for active practitioners in the field. It is
a 3-week program in communications, counseling, and manage
ment. Some States have continuing education requirements that fu
neral directors must meet before a license can be renewed.
Apprenticeships must be completed under an experienced and li
censed funeral director or embalmer. Depending on State regula
tions, apprenticeships last from 1 to 2 years and may be served
before, during, or after mortuary school. They provide practical ex
perience in all facets of the funeral service from embalming to trans
porting remains.
State board licensing examinations vary, but they usually consist
of written and oral parts and include a demonstration of practical
skills. Persons who want to work in another State may have to pass
the examination for that State, although many States will grant li
censes to funeral directors from another State without further exam
ination.
High school students can start preparing for a career as a funeral
director by taking courses in biology and chemistry and participat
ing public speaking or debating clubs. Part-time or summer jobs in
funeral homes consist mostly of maintenance and clean-up tasks,
such as washing and polishing limousines and hearses, but these
tasks can help students become familiar with the operation of fu
neral homes.
Important personal traits for funeral directors are composure,
tact, and the ability to communicate easily with the public. They
also should have the desire and ability to comfort people in their
time of sorrow.
Advancement opportunities are best in large funeral homes at
which directors and embalmers may earn promotions to higher pay
ing positions such as branch manager or general manager. Some di
rectors eventually acquire enough money and experience to estab
lish their own funeral businesses.
Job Outlook
Employment of funeral directors and embalmers is expected to in
crease about as fast as the average for all occupations through the
year 2005. Employment opportunities are expected to be excellent,
because the number of graduates in mortuary science is likely to
continue to be less than the number ofjob openings in the field.
Demand for funeral services will rise as the population grows, and
with it the number of deaths. The population is projected to become
older because the number of persons age 55 and over is expected to
increase significantly faster than the population as a whole. Deaths
will also increase among members of the younger population due to
AIDS.
Cremations have been increasing over the years. This trend may
lessen the demand for embalming somewhat, because in some
States, embalming is not required before cremation. As a conse
quence, fewer services would be needed from funeral directors.
Earnings
Most funeral directors are also trained, licensed, and practicing
embalmers.
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Salaries of funeral directors depend on the size of the establishment
and the number of services performed. A survey conducted by the
21
National Funeral Directors Association found that the average sal
ary, including bonus, for funeral directors who were owner/manag
ers was $59,574 in 1991; mid-level managers averaged $41,393. Embalmers had average salaries of $27,421, and apprentices averaged
$17,489.
Related Occupations
The job of a funeral director requires tact, discretion, and compas
sion when dealing with grieving people. Others who need these qual
ities include members of the clergy, social workers, psychologists,
psychiatrists, and other health care professionals.
Sources of Additional Information
Information on a career as a funeral director is available from:
Br The National Funeral Directors Association, 11121 West Oklahoma
Ave., Milwaukee, WI53227.
gr National Selected Morticians, 1616 Central St., Evanston, IL 60201.
For a list of accredited programs in mortuary science and scholar
ship information contact:
S'" The American Board of Funeral Service Education, 14 Crestwood Rd.,
Cumberland, ME 04021.
For information on continuing funeral service education contact:
Er The National Foundation of Funeral Service, 2250 East Devon Ave.,
Suite 250, Des Plaines, IL 60018.
General Managers and Top Executives
(List of D.O.T. codes available on request from the Chief, Division of
Occupational Outlook, Bureau of Labor Statistics, Washington, DC 20212.)
Nature of the Work
Chief executive officer, executive vice president for marketing, de
partment store manager, financial institution president, brokerage
office manager, college president, school superintendent, and police
chief—these are examples of general managers and top executives
who, at the upper end of the management hierarchy, formulate the
policies and direct the operations of the Nation’s private firms and
government agencies. (Top executives who formulate policy in pub
lic administration are discussed in detail in the Handbook statement
on government chief executives and legislators.)
The fundamental objectives of private organizations are to main
tain efficiency and profitability in the face of shifting consumer
tastes and needs, accelerating technological complexity, economic
interdependence, and domestic and foreign competition. Similarly,
nonprofit organizations and government agencies must effectively
implement programs subject to budgetary constraints and shifting
public preferences. General managers and top executives try to en
sure that their organizations meet these objectives.
An organization’s general goals and policies are established by
the chief executive officer in collaboration with other top executives,
usually executive vice presidents, and often with a board of direc
tors. In a large corporation, a chief executive officer may frequently
meet with top executives of other corporations, domestic or foreign
governments, or outside consultants to discuss matters affecting the
organization’s policies. Although the chief executive officer retains
ultimate authority and responsibility, the chief operating officer
may be delegated the authority to oversee executive vice presidents
who direct the activities of various departments and are responsible
for implementing the organization’s policies in these departments.
The scope of executive vice presidents’ responsibility depends
greatly upon the size of the organization. In large corporations,
their duties may be highly specialized. For example, they may over
see general managers of marketing, sales promotion, purchasing, fi
nance, personnel, training, industrial relations, administrative ser
vices, electronic data processing, property management,
transportation, or legal services departments. (Some of these and
other managerial occupations are discussed elsewhere in this section
of the Handbook.) In smaller firms, an executive vice president
might be responsible for a number of these departments.
22
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General managers, in turn, direct their individual department’s
activities within the framework of the organization’s overall plan.
With the help of supervisory managers and their staffs, general man
agers oversee and strive to motivate workers to achieve their depart
ment’s goals as rapidly and economically as possible. In smaller or
ganizations, such as independent retail stores or small
manufacturers, a general manager may be responsible for purchas
ing, hiring, training, quality control, and all other day-to-day super
visory duties. (See the Handbook statement on retail managers.)
Working Conditions
General managers in large firms or government agencies are pro
vided with offices close to the departments they direct and to the top
executives to whom they report. Top executives may be provided
with spacious offices and often meet and negotiate with top execu
tives from other corporations, government, or other countries. Long
hours, including evenings and weekends, are the rule for most top
executives and general managers, though their schedules may be
flexible. Though still uncommon, more executives are accepting
temporary positions, sometimes only working for the duration of
one project or several months.
Substantial travel is often required. General managers may travel
between national, regional, and local offices to monitor operations
and meet with other executives. Top executives may travel to meet
with their counterparts in other corporations in the country or over
seas. Many attend meetings and conferences that are sponsored by
industries and associations and provide invaluable opportunities to
meet with peers and keep abreast of technological and other devel
opments. Perquisites such as reimbursement of an accompanying
spouse’s travel expenses may help executives cope with frequent or
extended periods away from home.
In large corporations, job transfers between the parent company
and its local offices or subsidiaries, here or abroad, are common.
With increasing domestic and international competition, general
managers and top executives are under intense pressure to attain, for
example, ever higher production and marketing goals. Executives in
charge of poorly performing companies or departments often find
that their jobs are in jeopardy.
Employment
General managers and top executives held nearly 2.9 million jobs in
1992. They are found in every industry—wholesale and retail trade
Corporate restructuring and downsizing will limit employment
growth among general managers and top executives.
and services industries employ over 6 out of 10 general managers
and top executives.
members of the board of directors of one or more firms. Some gen
eral managers and top executives with sufficient capital and experi
ence establish their own firms or become independent consultants.
Training, Other Qualifications, and Advancement
The educational background of managers and top executives varies
as widely as the nature of their diverse responsibilities. Many gen
eral managers and top executives have a bachelor’s degree in liberal
arts or business administration. Their major often is related to the
departments they direct—for example, accounting for a general
manager of finance or computer science for a general manager of in
formation systems. Graduate and professional degrees are common.
Many managers in administrative, marketing, financial, and manu
facturing activities have a master’s degree in business administra
tion. Managers in highly technical manufacturing and research ac
tivities often have a master’s or doctoral degree in an engineering or
scientific discipline. A law degree is mandatory for general manag
ers of corporate legal departments, and hospital administrators gen
erally have a master’s degree in health services administration or
business administration. (For additional information, see the Hand
book statement on health services managers.) College presidents and
school superintendents generally have a doctorate, often in educa
tion administration; some have a law degree. (See the Handbook
statement on education administrators.) On the other hand, in some
industries, such as retail trade, competent individuals without a col
lege degree may become general managers.
Many general managers in the public sector have a liberal arts de
gree in public administration or in one of the social sciences such as
economics, psychology, sociology, or urban studies. For others, ex
perience is still the primary qualification. For park superintendents,
a liberal arts degree also provides a suitable background. Police
chiefs are graduates of police academies, and a degree in police sci
ence or a related field is increasingly important. Similarly, fire chiefs
are graduates of fire academies, and a degree in fire science is gain
ing in importance as well. For harbormasters, a high school educa
tion and experience as a harbor pilot are sufficient.
Most general manager and top executive positions are filled by
promoting experienced, lower level managers. Some companies pre
fer that their top execuitves have specialized backgrounds—in fi
nance or marketing, for example. However, certain qualities, includ
ing leadership, self-confidence, motivation, decisiveness, flexibility,
the ability to communicate effectively, and sound business judgment
are far more important. In small firms, where the number of posi
tions is limited, advancement to a higher management position may
come slowly. In large firms, promotions may occur more quickly.
Advancement may be accelerated by participation in company
training programs to broaden knowledge of company policy and op
erations. Attendance at national or local training programs spon
sored by numerous industry and trade associations and continuing
education, normally at company expense, in colleges and universi
ties can familiarize managers with the latest developments in man
agement techniques. Every year, thousands of senior managers, who
often have some experience in a particular field such as accounting,
engineering, or science, attend executive development programs to
facilitate their promotion from functional specialists to general
managers. In addition, participation in interdisciplinary conferences
and seminars can expand knowledge of national and international
issues influencing the manager’s firm.
Persons interested in becoming general managers and top execu
tives must have highly developed personal skills. A highly analytical
mind able to quickly assess large amounts of information and data is
very important. The ability to consider and evaluate the interrela
tionships of numerous factors and to select the best course of action
is imperative. In the absence of sufficient information, sound intui
tive judgment is crucial to reaching favorable decisions. General
managers and top executives also must be able to communicate
clearly and persuasively with customers, subordinates, and other
managers in their firm.
General managers may advance to top executive positions, such
as executive or administrative vice president, in their own firm or
to a corresponding general manager position in a larger firm.
Similarly, top-level managers may advance to peak corporate posi
tions—chief operating officer and, finally, chief executive officer.
Chief executive officers and other top executives may also become
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Job Outlook
Employment of general managers and top executives is expected to
grow more slowly than the average for all occupations through the
year 2005 as companies restructure managerial hierarchies in an ef
fort to cut costs. General managers and top executives may be more
affected by these cost-cutting strategies than in the past, thus mod
erating employment growth.
Although this is a large occupation, and many openings will oc
cur each year as executives transfer to other positions, start their
own businesses, or retire, competition for top managerial jobs will
be keen. Many executives who leave their jobs transfer to other exec
utive or managerial positions, limiting openings for new entrants,
and large numbers of layoffs resulting from downsizing and restruc
turing will lead to an ample supply of competent managers. Moreo
ver, the aging of the workforce will result in more senior middle
managers vying for a limited number of top executive positions.
Projected employment growth of general managers and top exec
utives varies widely among industries. For example, employment
growth is expected to be faster than average in all services industries
combined, but slower than average in all finance, insurance, and real
estate industries combined. Employment of general managers and
top executives is projected to decline in manufacturing industries
overall.
Managers whose accomplishments reflect strong leadership qual
ities and the ability to improve the efficiency or competitive position
of their organizations will have the best opportunities in all indus
tries. In an increasingly global economy, certain types of experience,
such as international economics, marketing, or information sys
tems, or knowledge of several disciplines, will also be advantageous.
Earnings
General managers and top executives are among the highest paid
workers in the Nation. However, salary levels vary substantially de
pending upon the level of managerial responsibility, length of ser
vice, and type, size, and location of the firm.
At the highest level, chief executive officers (CEO) are extremely
well paid. According to a survey by Fortune magazine, CEO’s at 200
major companies averaged $3.2 million in 1993, including bonuses
and stock awards, which are often tied to performance. According
to a similar survey of 365 companies by Business Week magazine,
CEO salaries and bonuses averaged $1.1 million in 1992; total com
pensation, including stock options and dividends, averaged $3.8
million. Salaries are related to the size of the corporation—a top
manager in a very large corporation can earn significantly more
than a counterpart in a small firm.
Salaries also vary substantially by type and level of responsibili
ties and by industry. According to a salary survey by Robert Half
International, a staffing services firm specializing in accounting and
finance, senior vice presidents/heads of lending in banks with $1 bil
lion and higher in assets earned about $200,000 in 1993. Based on a
survey sponsored by the Society for Human Resource Management,
the average base salary for top human resources managers was
about $136,000 in 1993. A survey by Network World newsweekly
found that upper level computer network managers—including
chief information officers, vice presidents, and directors—averaged
$83,900 in 1993; mid-level managers—including network, data
communications, telecommunications, and technical support man
agers—averaged $59,400 in that year. Among top network manag
ers, those in the health care industry were the highest paid, averag
ing $142,500 in 1993, while those in wholesale/retail trade were the
lowest paid, averaging $56,000. Among other industries, top net
work managers in manufacturing/finance and utilities were among
the highest paid, while those in education and government were
among the lowest paid.
Company-paid insurance premiums, physical examinations, exec
utive dining rooms, use of company cars, paid country club mem
berships, and expense allowances are among the benefits enjoyed by
some general managers and top executives in private industry.
23
Related Occupations
General managers and top executives plan, organize, direct, control,
and coordinate the operations of an organization and its major de
partments or programs. The members of the board of directors and
supervisory managers are also involved in these activities. Occupa
tions in government with similar functions are governor, mayor,
postmaster, commissioner, director, and office chief.
Sources of Additional Information
For a wide variety of information on general managers and top exec
utives, including educational programs and job listings, contact:
XW American Management Association, Management Information Service,
135 West 50th St., New York, NY 10020.
W National Management Association, 2210 Arbor Blvd., Dayton, OH
45439.
Information about general managers and top executives in spe
cific industries may be obtained from organizations listed under a
number of headings—for example, administration, administrators,
directors, executives, management, managers, and superintend
ents—in various encyclopedias or directories of associations in pub
lic libraries.
Government Chief Executives
and Legislators
Nature of the Work
Go to school. Pay your taxes. Register for the draft. Stop at the stop
sign. It seems as though the Government is always telling us what to
do. Who, then, tells the Government what to do? Chief executives
and legislators at the Federal, State, and local level do the telling.
They are elected or appointed officials who strive to meet the needs
of their constituents with an effective and efficient government.
Chief executives are officials who run governmental units that
help formulate, carry out, and enforce laws. These officials include
the President and Vice President of the United States, State gover
nors and lieutenant governors, county executives, town and town
ship officials, mayors, and city, county, town, and township manag
ers. All except local government managers are elected; managers are
appointed by the local government council or commission.
Government chief executives, like corporation presidents and
other chief executives, have overall responsibility for how their or
ganizations perform. In coordination with legislators, they establish
goals and objectives and then organize programs and form policies
to attain these goals. They appoint people to head departments, such
as highway, health, police, park and recreation, economic develop
ment, and finance. Through these departmental heads, chief execu
tives oversee the work of civil servants, who carry out programs and
enforce laws enacted by the legislative bodies. They prepare budg
ets, specifying how government resources will be used. They insure
that their government uses resources properly and carries out pro
grams as planned by holding staff conferences, requiring work
schedules and periodic performance reports, and conducting per
sonal inspections.
Chief executives meet with legislators and constituents to solicit
their ideas, discuss programs, and encourage their support. They
also may confer with leaders of other governments to solve mutual
problems. Chief executives nominate citizens for government
boards and commissions to oversee government activities or ex
amine and help the government solve problems such as drug abuse,
crime, deteriorating roads, and inadequate public education.
They also solicit bids from and select contractors to do work for
the government, encourage business investment and economic de
velopment in their jurisdictions, and seek Federal or State funds.
Chief executives of large jurisdictions rely on a staff of aides and as
sistants, but those in small ones often do much of the work them
selves. City, county, town, and other managers, although appointed
officials, may act as, and refer to themselves as, chief executives.
24
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Legislators are the elected officials who make laws or amend ex
isting ones in order to remedy problems or to promote certain activi
ties. They include U.S. Senators and Representatives, State senators
and representatives (called assemblymen and assemblywomen, or
delegates in some States), county legislators (called supervisors,
commissioners, councilmembers, or freeholders in some States), and
city and town council members (called aldermen and alderwomen,
trustees, clerks, supervisors, magistrates, and commissioners,
among other titles).
Legislators introduce bills in the legislative body and examine and
vote on bills introduced by other legislators. In preparing legisla
tion, they read reports and work with constituents, representatives
of interest groups, members of boards and commissions, the chief
executive and department heads, consultants, and legislators in
other units of government. They also approve budgets and the ap
pointments of department heads and commission members submit
ted by the chief executive. In some jurisdictions, the legislative body
appoints a city, town, or county manager. Many legislators, espe
cially at the State and Federal levels, have a staff to help do research,
prepare legislation, and resolve constituents’ problems.
In some units of government, the line between legislative and ex
ecutive functions blurs. For example, mayors and city managers
may draft legislation and conduct council meetings, and council
members may oversee the operation of departments.
Both chief executives and legislators perform ceremonial duties—
they open new structures and businesses, make proclamations, wel
come visitors, and lead celebrations.
Working Conditions
Working conditions of chief executives and legislators vary depend
ing on the size of the governmental unit. Time spent at work ranges
from meeting once a month for a local council member to 60 or
more hours per week for a legislator. U.S. Senators and Representa
tives, governors and lieutenant governors, and chief executives and
legislators in some large local jurisdictions work full time year
round, as do almost all county and city managers. Some city and
town managers work for several small jurisdictions. Most State leg
islators work full time while legislatures are in session (usually for a
few months a year) and part time the rest of the year. Local elected
officials in most jurisdictions work part time; however, even though
the job is officially designated part time, some incumbents actually
work a full-time schedule.
In addition to their regular schedules, chief executives are on call
at all hours to handle emergencies.
Some jobs require only occasional out-of-town travel, but others
involve more frequent travel—often to attend sessions of the legisla
ture or to meet with officials of other units of government. Officials
in districts covering a large area may drive long distances to perform
their regular duties.
Government chief executives exercise authority over local, State, and
National political institutions.
Employment
Chief executives and legislators held about 73,000 jobs in 1992.
About 5 of 6 worked in local government; the rest worked primarily
in State governments. The Federal Government had 535 Senators
and Representatives and 2 chief exexutives. There were about 7,500
State legislators and, according to the International City/County
Management Association (ICMA), about 11,000 city managers. Ex
ecutives and council members for local governments made up the
remainder.
Chief executives and legislators who do not hold full-time, yearround positions normally work in a second occupation as well (com
monly the one they held before being elected), are retired from an
other occupation, or attend to household responsibilities. Business
owner or manager, teacher, and lawyer are common second occupa
tions, and there are many others as well.
Training, Other Qualifications, and Advancement
Choosing from among candidates who meet the minimum age, resi
dency, and citizenship requirements, the voters try to elect the indi
vidual who they decide is most fit to hold the position at stake. The
question is thus not “How does one become qualified?” but “How
does one get elected?”
Successful candidates usually have a strong record of accomplish
ment in paid and unpaid work. Many have business, teaching, or le
gal experience, but others come from a wide variety of occupations.
In addition, many have served as volunteers on school boards or
zoning commissions; with charities, political action groups, and po
litical campaigns; or with religious, fraternal, and similar organiza
tions.
Work experience and public service help develop the planning,
organizing, negotiating, motivating, fundraising, budgeting, public
speaking, and problem solving skills needed to run a political cam
paign. Candidates must make decisions quickly and fairly with little
or contradictory information. They must have confidence in them
selves and their employees to inspire and motivate their constituents
and their staff. They should also be sincere and candid, presenting
their views thoughtfully and convincingly. Additionally, they must
know how to hammer out compromises with colleagues and constit
uents. National and Statewide campaigns also require a good deal of
energy, stamina, and fund raising skills.
Town, city, and county managers are appointed by a council or
commission. Managers come from a variety of educational back
grounds. A master’s degree in public administration—including
courses such as public financial management and legal issues in pub
lic administration—is widely recommended but not required. Virtu
ally all town, city, and county managers have at least a bachelor’s
degree and many hold a master’s degree. In addition, working as a
student intern in government is recommended—the experience and
personal contacts acquired can prove invaluable in eventually secur
ing a position as a town, city, or county manager.
Generally, a town, city, or county manager in a smaller jurisdic
tion is required to have some expertise in a wide variety of areas;
those who work for larger jurisdictions specialize in financial, ad
ministrative, or personnel matters. For all managers, communica
tion skills and the ability to get along with others are essential.
Advancement opportunities for most elected public officials are
not clearly defined. Because elected positions normally require a pe
riod of residency and because local public support is critical, offi
cials can usually advance to other offices only in the jurisdictions
where they live. For example, council members may run for mayor
or for a position in the State government, and State legislators may
run for governor or for Congress. Many officials are not politically
ambitious, however, and do not seek advancement. Others lose their
bids for reelection or voluntarily leave the occupation. A lifetime ca
reer as a government chief executive or legislator is rare.
Town, city, and county managers have a clearer career path. They
generally obtain a master’s degree in public administration, then
gain experience as management analysts or assistants in government
departments working with councils and chief executives and learn
ing about planning, budgeting, civil engineering, and other aspects
of running a city. After several years, they may be hired to manage a
town or a small city and may eventually become manager of pro
gressively larger cities.
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Job Outlook
Little, if any, growth is expected in the number of government chief
executives and legislators through the year 2005. Few, if any, new
governments are likely to form, and the number of chief executives
and legislators in existing governments rarely changes. The addition
of one or two States to the union would lead to several additional
U.S. Senators and Representatives. Some small increase may occur
as growing communities—in the rapidly growing South and West,
for example—become independent cities and towns and elect a chief
executive and legislators and, perhaps, appoint a town manager. A
few new positions may also develop as cities and counties without
managers hire them and as unpaid offices—which are not counted
as employment—are converted to paid positions. On the other
hand, attempts by governments to cut costs and streamline opera
tions, in response to tight budgets, could reduce the number of paid
positions, particularly at the local level.
The number of State legislators recently declined slightly when
States, as required by law, completed their decennial redistricting.
Elections give newcomers the chance to unseat incumbents or to
fill vacated positions. In many elections, there is substantial compe
tition, although the level of competition varies from jurisdiction to
jurisdiction and from year to year. Generally, there is less competi
tion in small jurisdictions, which have part-time positions offering
relatively low salaries and little or no staff to help with tedious work,
than in large jurisdictions, which have full-time positions offering
higher salaries, more staff, and greater status. In some cases, usually
in small jurisdictions, an incumbent runs unopposed, or an incum
bent resigns, leaving only one candidate for a job. The high cost of
running for such positions in large jurisdictions may serve as a de
terrent to running, or may leave the challenger dependent on contri
butions from special interest groups.
Earnings
Earnings of public administrators vary widely, depending on the
size of the government unit and on whether the job is part time, full
time and year round, or full time for only a few months a year. Sala
ries range from little or nothing for a small town council member to
$200,000 a year for the President of the United States.
According to the International City/County Management Asso
ciation, the average annual salary of mayors was about $9,900 in
1991. In cities with a population under 2,500, they averaged about
$1,800; in cities with a population over 1 million, around $78,000.
ICMA data indicate that the average salary for the chair of the
county legislative body in 1991 was about $19,700. Those in coun
ties with populations over 1 million earned an average of $76,900.
County managers earned $68,100 on average in 1991. In counties
with a population over 1 million, they earned an average of
$120,000. The average annual salary of city managers was about
$60,000 in 1991. Salaries ranged from $35,000 in towns with fewer
than 2,500 residents to $127,000 in cities with a population over 1
million.
According to Book of The States, 1992-93, published by the
Council of State Governments, the average salary for legislators in
the 40 States that paid an annual salary was about $23,000 in 1992.
In 10 States, legislators just received a per diem while legislatures
were in session. Salaries and per diem were generally higher in the
larger States.
Data from Book of the States, 1992-93 also indicate that guberna
torial annual salaries ranged from $35,000 in Arkansas to $130,000
in New York. In addition to a salary, most governors received per
quisites such as transportation and an offical residence. Lieutenant
governors averaged over $57,000 annually.
Related Occupations
Related occupations include managerial positions that require a
broad range of skills in addition to administrative expertise, such as
corporate chief executives and board members, and generals in the
military.
Sources of Additional Information
For more information on careers in public administration, consult
your elected representatives and local library.
25
Information on State governments can be obtained from:
^•Council of State Governments, P.O. Box 11910, Iron Works Pike, Lex
ington, KY 40578.
Information on appointed officials in local government can be ob
tained from:
XW International City/County Management Association, 777 North Capitol
St. NE., Suite 500, Washington, DC 20002.
Health Services Managers
(D.O.T. 072.117; 074.167; 075.117-014, -022, -026, and -030; 076.117;
077.117;078.131, .161-010, -014, and. 162; 079.117-010, .131, .151, .167-014
and .267; 187.117-010,-058,-062, and .167-090; 188.117-082
themselves, larger groups generally employ a full-time administra
tor to advise on business strategies and coordinate day-to-day busi
ness.
A small group of 10 or 15 physicians might employ a single ad
ministrator to oversee personnel matters, billing and collection,
budgeting, planning, equipment outlays, and patient flow. A large
practice of 40 or 50 physicians may have a chief administrator and
several assistants, each responsible for different areas.
Health services managers in health maintenance organizations
(HMO’s) perform functions similar to those in large group prac
tices, except their staffs may be larger. The size of the administrative
staff in HMO’s may vary according to the type of HMO and the size
of the enrolled population.
Some health services managers oversee the activities of a number
of facilities in multifacility health organizations.
Working Conditions
Nature of the Work
Health care is a business, albeit a special one. Like every other busi
ness, it needs good management to keep it running smoothly. The
term “health services manager” encompasses individuals in many
different positions who plan, organize, coordinate, and supervise the
delivery of health care. Health services managers include both gen
eralists—the administrators managing or helping to manage an en
tire facility—and health specialists—the managers in charge of spe
cific clinical departments or services that are found only in the
health industry.
The top administrator or chief executive officer (CEO) and the as
sistant administrators without specific titles are health care general
ists. They set the overall direction of the facility. They also are con
cerned with community outreach, planning, policymaking, and
complying with government agencies and regulations. Their range
of knowledge is necessarily broad, including developments in the
clinical departments as well as in the business arena. They often
speak before civic groups, promote public participation in health
programs, and coordinate the activities of the organization with
those of government or community agencies. CEO’s make long term
institutional plans by assessing the need for services, personnel, fa
cilities, and equipment and recommending changes such as opening
a home health service. CEO’s need leadership ability as well as tech
nical skills to provide quality health care while, at the same time,
satisfying demand for financial viability, cost containment, and pub
lic and professional accountability.
CEO’s prepare for oversight and scrutiny of their facility’s past
performance and plans by consumer groups, government agencies,
professional oversight bodies, and insurance companies and other
third-party payers.
Larger facilities typically have several assistant administrators to
aid the top administrator and to handle day-to-day decisions. They
may direct actitivies in clinical areas such as nursing, surgery, ther
apy, food service, and medical records; or the activities in nonhealth
areas such as finance, housekeeping, human resources, and informa
tion management. (Because the nonhealth departments are not di
rectly related to health care, these managers are not included in this
statement. For information about them, see the statements on man
agerial occupations elsewhere in the Handbook). In smaller facili
ties, top administrators may handle more of the details of day-to
day operations. For example, many nursing home administrators di
rectly manage personnel, finance, operations, and admissions.
Clinical managers have more narrowly defined responsibilities
than the generalists to whom they report and have training and/or
experience in the field. For example, directors of physical therapy
are experienced physical therapists, and most medical records ad
ministrators have a bachelor’s degree in medical records administra
tion. These managers establish and implement policies, objectives,
and procedures for their departments; evaluate personnel and work;
develop reports and budgets; and coordinate activities with other
managers.
In group practices, managers work closely with the physician
owners. While an office manager may handle business affairs in
small medical groups, leaving policy decisions to the physicians
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Many health services managers work long hours. Facilities such as
nursing homes and hospitals operate around the clock, and adminis
trators and managers may be called at all hours to deal with
problems. The job also may include travel to attend meetings or to
inspect satellite facilities.
Employment
Health services managers held about 302,000 jobs in 1992. Over
one-half of all jobs were in hospitals. About 1 in 7 were in nursing
and personal care facilities, and 1 in 8 were in offices and clinics of
physicians. The remainder worked in home health agencies, medical
and dental laboratories, offices of dentists and other practitioners,
and other health and allied services.
Training, Other Qualifications, and Advancement
Health services managers must be familiar with management princi
ples and practices. Some learn from work experience. However, for
mal education is usually necessary for advancement. For most CEO
positions, a graduate degree in health services administration, nurs
ing administration, or business administration is required. For some
generalist positions, employers seek applicants with clinical experi
ence (as nurses or therapists, for example) as well as academic prep
aration in business or health services administration.
Health services managers plan, organize, coordinate, and supervise
the delivery of health care.
Bachelor’s, master’s, and doctoral degree programs in health ad
ministration are offered by colleges, universities, and schools of pub
lic health, medicine, allied health, public administration, and busi
ness administration. There are also some certificate or diploma
programs, generally lasting less than 1 year, in health services ad
ministration and in medical office management. A master’s
degree—in hospital administration, health services administration,
long term care administration, health sciences, public health, public
administration, or business administration—is regarded as the stan
dard credential for most generalist positions in this field. However, a
bachelor’s degree is adequate for some entry-level positions and a
few top positions in smaller operations, and for some middle man
agement jobs in larger ones. Bachelor’s degrees may not be needed
in smaller nursing homes, physicians’ offices, and other facilities.
Appropriate experience or certificates and diplomas are sometimes
acceptable. For clinical department heads, a degree in the appropri
ate field and work experience are usually sufficient, but courses in
health services administration are helpful.
In 1993, 29 colleges and universities offered bachelor’s degree
programs in health services administration. Sixty-four schools had
accredited programs leading to the master’s degree in health ser
vices administration, according to the Accrediting Commission on
Education for Health Services Administration.
Some graduate programs seek students with undergraduate de
grees in business or health administration; however, many programs
prefer students with a liberal arts or health professions background.
Competition for entry to these programs is keen, and applicants
need above-average grades to gain admission. The programs gener
ally last between 2 and 3 years. They include up to 1 year of super
vised administrative experience, and course work in areas such as
hospital organization and management, accounting and budgeting,
human resources administration, strategic planning, health eco
nomics, and health information systems. Students generally special
ize in one type of facility—hospitals; nursing homes; mental health
facilities; HMO’s; or outpatient care facilities, including medical
groups.
New graduates with master’s degrees in health services or hospi
tal administration may start as assistant hospital administrators, or
as managers of nonhealth departments, like finance. Postgraduate
residencies and fellowships are offered by hospitals and other health
facilities; these are normally staff jobs. Graduates from master’s de
gree programs also take jobs in HMO’s, large group medical prac
tices, clinics, mental health facilities, and multifacility nursing home
corporations.
New recipients of bachelor’s degrees in health administration
usually begin as administrative assistants or assistant department
heads in larger hospitals, or as department heads or assistant admin
istrators in small hospitals or in nursing homes.
A Ph.D. degree may be required to teach, consult, or do research.
Nursing service administrators are usually chosen from among su
pervisory registered nurses with administrative abilities and ad
vanced education.
All States and the District of Columbia require nursing home ad
ministrators to pass a licensing examination, complete a State-ap
proved training program, and pursue continuing education. Most
States also have additional requirements. A license is not required in
other areas of health services management.
Health services managers are often responsible for millions of dol
lars of facilities and equipment and hundreds of employees. To
make effective decisions, they need to be open to different opinions
and good at analyzing contradictory information. To motivate
others to implement their decisions, they need strong leadership
qualities. Tact, diplomacy, and communication skills are essential.
Health services managers advance by moving into more responsi
ble and higher paying positions such as assistant or associate admin
istrator and, finally, CEO, or by moving to larger facilities.
Job Outlook
Employment of health services managers is expected to grow much
faster than the average for all occupations through the year 2005 as
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health services continue to expand and diversify. Hospitals will con
tinue to employ the most managers, although the number of jobs
will not be growing as fast as in other areas.
Employment in home health agencies and nursing and long term
care facilities will grow the fastest, due to an increased number of
elderly who will need care. Demand in medical group practices will
grow, too. As medical group practices and HMO’s become larger
and more complex, more job opportunities for department heads
should emerge.
Health services managers in hospitals will face very keen competi
tion for upper level management jobs, a reflection of the pyramidal
management structure characteristic of most large organizations. In
nursing homes and other long term care facilities, job opportunities
for individuals with strong business and management skills will con
tinue to be good.
Earnings
Earnings vary by type and size of the facility, as well as by level of
responsibility. For example, the Medical Group Management Asso
ciation reported that the median salary for administrators in small
group practices—with net revenues of $2 million or less—was
$46,600; for those in very large group practices—with net revenues
over $50 million—$166,700.
According to a survey sponsored by the Hay Group and the
American Society of Healthcare Human Resources Administration,
half of all hospital CEO’s earned $140,900 or more in 1993. The
lowest 10 percent earned less than $77,000; the top 10 percent
earned $223,600 or more.
Clinical department heads’ salaries varied too. According to a
survey by Modern Healthcare magazine, average salaries in 1993 for
heads of the following clinical departments were: Medical records,
$47,600; home health, $52,500; imaging/radiology, $53,300; physi
cal therapy, $54,700; rehabilitation services, $58,800; and nursing
services, $65,700.
According to the American College of Health Care Administra
tors, nursing home administrators had median annual total com
pensation of $44,100 in 1992. The middle 50 percent earned between
$36,000 and $54,000. Those in facilities with less than 50 licensed
beds earned $36,500; those in facilities with 400 or more beds,
$68,200. Licensed assistant administrators earned median total
compensation of $35,000.
Related Occupations
Health services managers have training or experience in both health
and management. Other occupations that require knowledge of
both fields are public health directors, social welfare administrators,
directors of voluntary health agencies and health professional as
sociations, and underwriters in health insurance companies and
HMO’s.
Sources of Additional Information
General information about health administration is available from:
lw American College of Healthcare Executives, 840 North Lake Shore Dr.,
Chicago, IL 60611.
Information about undergraduate and graduate academic pro
grams in this field is available from:
Association of University Programs in Health Administration, 1911
North Fort Myer Dr., Suite 503, Arlington, VA 22209.
For a list of accredited graduate programs in health services ad
ministration, contact:
xw Accrediting Commission on Education for Health Services Administra
tion, 1911 North Fort Myer Dr., Suite 503, Arlington, VA 22209.
For information about career opportunities in long term care ad
ministration, contact:
X3" American
College of Health Care Administrators, 325 S. Patrick St., Al
exandria, VA 22314.
For information about career opportunities in medical group
practices and ambulatory care management, contact:
13* Medical Group Management Association, 104 Inverness Terrace East,
Englewood, CO 80112-5306.
27
Hotel Managers and Assistants
(D.O.T. 187.117-038, .137-018; .167-046, -078, -106, -122; and 320)
Nature of the Work
For vacationing families and persons whose jobs take them out of
town, a comfortable room, good food, and a helpful hotel staff can
make being away from home an enjoyable experience. Hotel manag
ers and assistant managers work to insure that guests’ visits are
pleasant.
Hotel managers are responsible for the efficient and profitable op
eration of their establishments. In a small hotel, motel, or inn with a
limited staff, a single manager may direct all aspects of operations.
However, large hotels may employ hundreds of workers, and the
manager may be aided by a number of assistant managers assigned
among departments responsible for various aspects of operations.
The general manager has overall responsibility for the operation of
the hotel. Within guidelines established by the owners of the hotel or
executives of the hotel chain, the general manager sets room rates,
allocates funds to departments, approves expenditures, and estab
lishes standards for service to guests, decor, housekeeping, food
quality, and banquet operations. (For more information, see the
statement on general managers and top executives elsewhere in the
Handbook.) Assistant managers must insure that the day-to-day op
erations of their departments meet the general manager’s standards.
Resident managers live in hotels and are on call 24 hours a day to
resolve any problems or emergencies, although they normally work
an 8-hour day. As the most senior assistant manager, a resident
manager oversees the day-to-day operations of the hotel. In many
hotels, the general manager also serves as the resident manager.
Executive housekeepers are responsible for insuring that guest
rooms, meeting and banquet rooms, and public areas are clean, or
derly, and well maintained. They train, schedule, and supervise the
work of housekeepers, inspect rooms, and order cleaning supplies.
Front office managers coordinate reservations and room assign
ments and train and direct the hotel’s front desk staff that deals with
the public. They insure that guests are handled courteously and effi
ciently, complaints and problems are resolved, and requests for spe
cial services are carried out.
Food and beverage managers direct the food services of hotels.
They oversee the operation of hotels’ restaurants, cocktail lounges,
and banquet facilities. They supervise and schedule food and bever
age preparation and service workers, plan menus, estimate costs,
and deal with food suppliers. (For more information, see the state
ment on restaurant and food service managers elsewhere in the
Handbook.)
Convention services managers coordinate the activities of large ho
tels’ various departments for meetings, conventions, and other spe
cial events. They meet with representatives of groups or organiza
tions to plan the number of rooms to reserve, the desired
configuration of hotel meeting space, and any banquet services
needed. During the meeting or event, they resolve unexpected
problems and monitor activities to check that hotel operations con
form to the expectations of the group.
Other assistant managers may be specialists responsible for activi
ties such as personnel, accounting and office administration, mar
keting and sales, purchasing, security, maintenance, and recrea
tional facilities. (For more information, see the related statements
on personnel, training, and labor relations specialists and managers;
financial managers; and marketing, advertising, and public relations
managers elsewhere in the Handbook.) Managers who work for
chains may be assigned to organize and staff a newly built hotel, re
furbish an older hotel, or reorganize a hotel or motel that is not op
erating successfully.
Working Conditions
Since hotels are open around the clock, night and weekend work is
common. Many hotel managers work considerably more than 40
hours per week. Managers who live in the hotel usually have regular
work schedules, but they may be called for work at any time. Some
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Front office managers coordinate reservations and room
assignments.
employees of resort hotels are managers during the busy season and
have other duties the rest of the year.
Hotel managers sometimes experience the pressures of coordinat
ing a wide range of functions. Conventions and large groups of tour
ists may present unusual problems. Dealing with irate patrons can
also be stressful. The job can be particularly hectic for front office
managers around checkin and checkout time.
Employment
Hotel managers and assistant managers held about 99,000 wage and
salary jobs in 1992. An additional number—primarily owners of
small hotels and motels—were self-employed. Others were em
ployed by companies that manage hotels and motels under contract.
Training, Other Qualifications, and Advancement
Postsecondary training in hotel or restaurant management is pre
ferred for most hotel management positions, although a college lib
eral arts degree may be sufficient when coupled with related hotel
experience. In the past, most managers were promoted from the
ranks of front desk clerks, housekeepers, waiters and chefs, and ho
tel sales workers. Although some persons still advance to hotel man
agement positions without the benefit of education or training be
yond high school, postsecondary education is increasingly
preferred. Nevertheless, experience working in a hotel—even part
time while in school—is an asset to all persons seeking to enter hotel
management careers. Restaurant management training or experi
ence is also a good background for entering hotel management be
cause the success of a hotel’s food service and beverage operations is
often of great importance to the profitability of the entire establish
ment.
A bachelor’s degree in hotel and restaurant administration pro
vides particularly strong preparation for a career in hotel manage
ment. In 1993, over 160 colleges and universities offered bachelor’s
and graduate programs in this field. Over 800 community and jun
ior colleges, technical institutes, vocational and trade schools, and
other academic institutions also have programs leading to an associ
ate degree or other formal recognition in hotel or restaurant man
agement. Graduates of hotel or restaurant management programs
usually start as trainee assistant managers, or at least advance to
such positions more quickly.
Hotel management programs usually include instruction in hotel
administration, accounting, economics, marketing, housekeeping,
food service management and catering, hotel maintenance engineer
ing, and data processing—reflecting the widespread use of com
puters in hotel operations such as reservations, accounting, and
housekeeping management. Programs encourage part-time or sum
mer work in hotels and restaurants because the experience gained
and the contacts made with employers may benefit students when
they seek full-time employment after graduation.
Hotel managers must be able to get along with all kinds of people,
even in stressful situations. They need initiative, self-discipline, and
the ability to organize and direct the work of others. They must be
able to solve problems and concentrate on details.
Sometimes large hotels sponsor specialized on-the-job manage
ment training programs which enable trainees to rotate among vari
ous departments and gain a thorough knowledge of the hotel’s oper
ation. Other hotels may help finance the necessary training in hotel
management for outstanding employees.
Most hotels promote employees who have proven their ability.
Newly built hotels, particularly those without well-established onthe-job training programs, often prefer experienced personnel for
managerial positions. Large hotel and motel chains may offer better
opportunities for advancement than small, independently owned es
tablishments, but relocation every several years often is necessary
for advancement. The large chains have more extensive career lad
der programs and offer managers the opportunity to transfer to an
other hotel or motel in the chain or to the central office if an opening
occurs. Career advancement can be accelerated by completion of
certification programs offered by the associations listed below.
These programs generally require a combination of course work, ex
aminations, and experience.
Job Outlook
Employment of salaried hotel managers is expected to grow about
as fast as the average for all occupations through the year 2005 as
more hotels and motels are built. Business travel will continue to
grow, and increased domestic and foreign tourism will also create
demand for additional hotels and motels. However, manager jobs
are expected to grow more slowly than the hotel industry because a
growing share of the industry will be comprised of economy proper
ties, which generally have fewer managers than full-service hotels.
In the face of financial constraints, guests are becoming more bar
gain-conscious, and hotel chains are increasing the number of rooms
in economy class hotels. Economy hotels offer clean, comfortable
rooms and front desk services without costly extras like restaurants
and room service. Because there are not as many departments in
each hotel, fewer managers are needed on the hotel premises. Econ
omy hotels have a general manager, and regional offices of the hotel
management company employ department managers, such as exec
utive housekeepers, to oversee several hotels.
Although new employment growth is expected to be concentrated
in economy hotels, large full-service hotels will continue to offer
many trainee and managerial opportunities. Most openings are ex
pected to occur as experienced managers transfer to other occupa
tions, retire, or stop working for other reasons.
Opportunities to enter hotel management are expected to be good
for persons who have college degrees in hotel or restaurant manage
ment.
Earnings
Salaries of hotel managers varied greatly according to their respon
sibilities and the size of the hotel in which they worked. In 1993, an
nual salaries of assistant hotel managers averaged an estimated
$32,500, based on a survey conducted for the American Hotel and
Motel Association. Assistants employed in large hotels with over
350 rooms averaged nearly $38,400 in 1993, while those in small ho
tels with no more than 150 rooms averaged more than $26,000. Sal
aries of assistant managers also varied because of differences in du
ties and responsibilities. For example, food and beverage managers
averaged an estimated more than $41,200, according to the same
survey, whereas front office managers averaged nearly $26,500. The
manager’s level of experience is also an important factor.
In 1993, salaries of general managers averaged more than
$59,100, ranging from an average of about $44,900 in hotels and
motels with no more than 150 rooms to an average of about $86,700
in large hotels with over 350 rooms. Managers may earn bonuses
ranging up to 15 percent of their basic salary in some hotels. In addi
tion, they and their families may be furnished with lodging, meals,
parking, laundry, and other services.
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Most managers and assistants receive 3 to 11 paid holidays a year,
paid vacation, sick leave, life insurance, medical benefits, and pen
sion plans. Some hotels offer profit-sharing plans, educational assis
tance, and other benefits to their employees.
Related Occupations
Hotel managers and assistants are not the only workers concerned
with organizing and directing a business in which pleasing people is
very important. Others with similar responsibilities include restau
rant managers, apartment building managers, retail store managers,
and office managers.
Sources of Additional Information
For information on careers and scholarships in hotel management,
contact:
The American Hotel and Motel Association (AH&MA), Information
Center, 1201 New York Ave. NW„ Washington, DC 20005-3931.
For information on educational programs, including correspon
dence courses, in hotel and restaurant management, write to:
W The Educational Institute of AH&MA, P.O. Box 1240, East Lansing, MI
48826.
Information on careers in housekeeping management may be ob
tained from:
.
ts- National Executive Housekeepers Association, Inc., 1001 Eastwind Dr.,
Suite 301, Westerville, OH 43081.
For information on hospitality careers, as well as how to purchase
a directory of colleges and other schools offering programs and
courses in hotel and restaurant administration, write to:
Council on Hotel, Restaurant, and Institutional Education, 1200 17th St.
NW., Washington, DC 20036-3097.
Industrial Production Managers
(D.O.T. 180.167-054; 181.117-010; 182.167-022; 183.117-010, -014,
.161-014, .167-010, -014, -018, -022, -026, -034, and -038; and 189.117-042,
.167-042, and -046)
Nature of the Work
Industrial production managers coordinate activities related to pro
duction of goods and direct the work of first-line supervisors. Due to
the variety of goods produced, few factories are exactly alike, so
managers’ duties may vary from plant to plant. However, industrial
production managers generally have the same major functions re
gardless of industry. These include responsibility for production
scheduling, staffing, equipment, quality control, inventory control,
and the coordination of activities with other departments.
Based on current and projected customer demand, management
determines what and how much will be produced. Working within
budgetary limitations and time constraints, industrial production
managers plan the production schedule. This entails analyzing the
plant’s personnel and capital resources and selecting the best way to
meet the production quota. They determine which machines will be
used, whether overtime or extra shifts are necessary, the sequence of
production, and related matters. They also monitor the production
run to make sure that it stays on schedule, and, if problems arise,
take action to solve them.
Industrial production managers also monitor product standards.
When quality drops below the established standard, product man
agers must determine why standards aren’t being maintained and
how to improve the product. If the problem is poor work, the man
ager may implement better training programs, reorganize the manu
facturing process, or institute employee suggestion or involvement
programs. If the cause is substandard materials, the manager works
with the purchasing department to improve the quality of the prod
uct’s components.
Maintaining the inventory of materials necessary for production
ties up the firm’s financial resources. Yet, insufficient quantities of
materials cause delays in production. Working with the purchasing
department, the production manager ensures that plant inventories
29
are maintained at their optimal level. A breakdown in communica
tions between departments can cause slowdowns and a failure to
meet production schedules.
Production managers usually report to the plant manager or the
vice president for manufacturing. (Information about these workers
can be found in the statement on general managers and top execu
tives elsewhere in the Handbook). In many plants, one production
manager is responsible for all production. In large plants with sev
eral operations—aircraft assembly, for example—there are manag
ers in charge of each operation, such as machining, assembly, or fin
ishing.
Because the work of many departments is dependent upon others,
managers work closely with heads of other departments such as
sales, purchasing, and traffic to plan and implement companies’
goals, policies, and procedures. Production managers also work
closely with, and act as a liaison between, executives and first-line
supervisors.
Computers play an integral role in the coordination of the pro
duction process by providing up-to-date data on such things as in
ventory, work-in-progress, and product standards. Industrial pro
duction managers then analyze these data and, working with those
from upper management and other departments, determine if ad
justments need to be made.
As the trend toward flatter management structure and worker
empowerment continues, production managers will increasingly
take on the role of a facilitator. Instead of singly making decisions
and giving and taking orders, production managers will review and
discuss recommendations with subordinates and superiors in the
hopes of improving productivity. Because of the additional duties
resulting from corporate downsizing, production managers are dele
gating more authority and responsibility to first-line supervisors.
Working Conditions
Most industrial production managers divide their time between the
shop floor and their office. While on the floor, they must follow es
tablished health and safety practices and wear the required protec
tive clothing and equipment. The time in the office—often located
on or near the production floor—is usually spent meeting with sub
ordinates or other department managers, analyzing production
data, and writing and reviewing reports.
Industrial production managers ensure that quality standards are
maintained.
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Most industrial production managers work more than 40 hours a
week, especially when production deadlines must be met. In facili
ties that operate around the clock, managers may have to work
shifts or may be called at any hour to deal with emergencies that
could result in production line downtime. Occasionally, this may
mean going to the plant to resolve the problem, regardless of the
hour, and staying until the situation is under control. Dealing with
production workers as well as superiors when working under the
pressure of production deadlines or emergency situations can be
stressful. In addition, restructuring has eliminated levels of manage
ment and support staff. As a result, production managers now have
to accomplish more with less and this has greatly increased job-re
lated stress.
Employment
Industrial production managers held about 203,000 jobs in 1992.
Although employed throughout manufacturing, about one-half are
employed in five industries: Industrial machinery and equipment,
transportation equipment, electronic and electrical equipment,
fabricated metal products, and food products.
Although production managers work in all parts of the country,
jobs are most plentiful in areas where manufacturing is concen
trated.
Training, Other Qualifications, and Advancement
Because of the diversity of manufacturing operations and job re
quirements, there is no standard preparation for this occupation.
Many industrial production managers have a college degree in busi
ness administration or industrial engineering. Some have a master’s
degree in business administration (MBA). Others are former pro
duction line supervisors who have been promoted. Although many
employers prefer candidates to have a degree in business or engi
neering, some companies hire liberal arts graduates.
As production operations become more sophisticated, an increas
ing number of employers are looking for candidates with MBA’s.
This, combined with an undergraduate degree in engineering, is
considered particularly good preparation. Companies also are plac
ing greater importance on a candidate’s personality. Because the job
demands technical knowledge and the ability to compromise, per
suade, and negotiate, successful production managers must be well
rounded and have excellent communication skills.
Those who enter the field directly from college or graduate school
often are unfamiliar with the firm’s production process. As a result,
they may spend their first few months on the job in the company’s
training program. These programs familiarize trainees with the pro
duction line, company policies and procedures, and the require
ments of the job. In larger companies, they may also include assign
ments to other departments, such as purchasing and accounting.
Blue-collar worker supervisors who advance to production man
ager positions already have an intimate knowledge of the production
process and the firm’s organization. To be selected for promotion,
these workers must have demonstrated leadership qualities, and
often take company-sponsored courses in management skills and
communications techniques. Some companies hire college gradu
ates as blue-collar worker supervisors and then promote them.
Once in their job, industrial production managers must stay
abreast of new production technologies and management practices.
To do this, they belong to professional organizations and attend
trade shows where new equipment is displayed; they also attend in
dustry conferences and conventions where changes in production
methods and technological advances are discussed.
Although certification in production management and inventory
control is not required for most positions, it demonstrates an indi
vidual’s knowledge of the production process and related areas. Va
rious certifications are available through the American Production
and Inventory Control Society. To be certified in production and in
ventory management, candidates must pass a series of examinations
that test their knowledge of inventory management, just-in-time sys
tems, production control, capacity management, and materials
planning.
Industrial production managers must be able to speak and write
effectively and deal tactfully with both subordinates and superiors
in pressure situations.
Industrial production managers with a proven record of superior
performance may advance to plant manager or vice president for
manufacturing. Others transfer to jobs at larger firms with more re
sponsibilities. Opportunities also exist as consultants. (For more in
formation, see the statement on management analysts and consul
tants elsewhere in the Handbook.)
Job Outlook
Little change in employment of industrial production managers is
expected through the year 2005. Although manufacturing output is
expected to rise significantly, the trend towards smaller manage
ment staffs and the lack of growth in production worker employ
ment will limit demand for production managers. Nevertheless,
many additional openings will result from the need to replace work
ers who transfer to other occupations or leave the labor force. How
ever, many of these openings may be filled through internal promo
tions.
Opportunities should be best for those with college degrees in in
dustrial engineering or business administration and MBA’s with un
dergraduate engineering degrees. Employers also are likely to seek
candidates who have excellent communication skills, and who are
personable, flexible, and eager to participate in ongoing training.
Earnings
Salaries of industrial production managers vary significantly by in
dustry and plant size. According to the limited data available, the
average salary for all production managers was about $60,000 in
1992. In addition to salary, industrial production managers usually
receive bonuses based on job performance.
Benefits for industrial production managers tend to be similar to
those offered many workers: Vacation and sick leave, health and life
insurance, and retirement plans.
Related Occupations
Industrial production managers oversee production staff and equip
ment, insure that production goals and quality standards are being
met, and implement company policies. Individuals with similar
functions include materials, operations, purchasing, and traffic
managers.
Other occupations requiring similar training and skills are sales
engineer, manufacturers’ sales representative, and industrial engi
neer.
Sources of Additional Information
Information on industrial production management can be obtained
from:
©•National Management Association, 2210 Arbor Blvd., Dayton, OH
45439.
©•American Manufacturing Association, 135 W 50th St., New York, NY
10020.
Loan Officers and Counselors
(D.O.T. 186.167-078, .267-018, -022, -026)
Nature of work
Banks and other financial institutions need up-to-date information
on companies and individuals applying for loans and credit. Cus
tomers and clients provide this information to the financial institu
tion’s loan officers and counselors, generally the first employees to
be seen by them. Loan officers prepare, analyze, and verify loan ap
plications, make decisions regarding the extension of credit, and
help borrowers fill out loan applications. Loan counselors help con
sumers with low income or a poor credit history qualify for credit,
usually a home mortgage.
Loan officers usually specialize in commercial, consumer, or
mortgage loans. Commercial or business loans help companies pay
for new equipment or to expand operations. Consumer loans in
clude home equity, automobile, and personal loans. Mortgage loans
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are made to purchase real estate or to refinance an existing mort
gage.
Loan officers represent lending institutions that provide funds for
a variety of purposes. Personal loans can be made to consolidate
bills, purchase expensive items such as an automobile or furniture,
or finance a college education. Loan officers attempt to lower their
firm’s risk by receiving collateral—security pledged for the payment
of a loan. For example, when lending money for a college education,
the bank may insist that the borrower offer his or her home as collat
eral. If the borrower were ever unable to repay the loan, the bor
rower would have to sell the home to raise the necessary money.
Loans backed by collateral also are beneficial to the customer be
cause they generally carry a lower interest rate.
Loan officers and counselors must keep abreast of new financial
products and services. To meet their customers’ needs, for example,
banks and other lenders now offer a variety of mortgage products,
including reverse equity mortgages, shared equity mortgages, and
adjustable rate mortgages. A reverse equity mortgage provides in
come to the owner of the property, and is paid back either through a
conventional mortgage or in a lump sum. A shared equity mortgage
allows a group of people to jointly own and be responsible for pay
ment of the mortgage. Adjustable rate mortgages have a fluctuating
interest rate, commonly based on the interest rate paid on govern
ment bonds—a change in interest rates affects the borrower’s
monthly payment.
Loan officers meet with customers and gather basic information
about the loan request. Often customers will not fully understand
the information requested, and will call the loan officer for assis
tance. Once the customer completes the financial forms, the loan of
ficer begins to process them. The loan officer reviews the completed
financial forms for accuracy and thoroughness, and requests addi
tional information if necessary. For example, the loan officer verifies
that the customer has correctly identified the type and purpose of
the loan. The loan officer then requests a credit report from one or
more of the major credit reporting agencies. This information, along
with comments from the loan officer, is included in a loan file, and is
compared to the lending institution’s requirements. Banks and other
lenders have established requirements for the maximum percentage
of income that can safely go to repay loans. At this point, the loan
officer, in consultation with company managers, decides whether or
not to grant the loan. A loan that would otherwise be denied may be
approved if the customer can provide the lender appropriate collat
eral. Whether or not the loan request is approved, the loan officer
informs the borrower of the lender’s decision.
Loan counselors meet with consumers who are attempting to
purchase a home or refinance debt, but who do not qualify for loans
with banks. Often clients rely on income from self-employment or
government assistance to prove that they can repay the loan. Coun
selors also help to psychologically prepare consumers to be home
owners and to pay their debts. Counselors frequently work with cli
ents who have no experience with financial matters.
Loan counselors provide positive reinforcement along with the fi
nancial tools needed to qualify for a loan. This assistance may take
several forms. Some clients simply need help in understanding what
information loan officers need to complete a loan transaction. Most
clients, however, need loans and grants for a down payment suffi
cient to qualify them for a bank-financed mortgage loan. Many cli
ents have been renting for years and want to buy their properties.
While they have the desire to improve their lives through home
ownership, they frequently have little or no resources for a down
payment. Other clients want to move to a safer and more secure en
vironment where, as owners, they can make decisions regarding the
property. The loan counselor helps the client complete an applica
tion, and researches Federal, State, and local government programs
that could provide the additional money needed for the client to
purchase the home. Often several government programs are com
bined to provide the necessary money.
Working Conditions
Loan officers and counselors work in offices, but mortgage loan of
ficers frequently move from office to office and often visit homes of
clients while completing a loan request. Commercial loan officers
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their work, orally and in writing, to customers and management.
Loan officers must enjoy public contact and be willing to attend
community events as a representative of their employer.
Persons interested in counseling should have a strong interest in
helping others and the ability to inspire trust, respect, and confi
dence. Because loan counselors frequently explain the complicated
world of banking to clients who have never been exposed to it, pa
tience and an understanding of mortgage banking is necessary to be
an effective loan counselor. Counselors should be sensitive to their
clients’ needs and feelings. Clients want to improve their lives, and
counselors must consider the importance and pride they attach to
home ownership. Counselors should be able to work independently
or as part of a team.
Job Outlook
Loan officers and counselors are particularly busy when interest rates
are low, resulting in a surge in loan applications.
employed by large firms may travel frequently to prepare complex
loan agreements.
Most loan officers and counselors work a standard 40-hour week,
but may work longer, particularly mortgage loan officers who are
free to take on as many customers as they choose. Loan officers and
counselors usually carry a heavy caseload and sometimes cannot ac
cept new clients until they complete current cases. They are espe
cially busy when interest rates are low, resulting in a surge in loan
applications.
Employment
Loan officers and counselors held about 172,000 jobs in 1992.
About 7 out of 10 are employed by commercial banks, savings insti
tutions, and credit unions. Others are employed by nonbank finan
cial institutions, such as mortgage brokerage firms and personal
credit firms. Most loan counselors work for State and local govern
ments, or for nonprofit organizations. Loan officers and counselors
generally work in urban areas where large banks are concentrated.
Training, Other Qualifications, and Advancement
Most loan officer positions require a bachelor’s degree in finance,
economics, or a related field. Most employers also prefer applicants
who are familiar with computers and their applications in banking.
A mortgage loan officer is the exception, with training or experience
in sales more crucial to potential employers. Many loan officers ad
vance through the ranks in an organization, acquiring several years
of work experience in various other occupations, such as teller or
customer service representative.
Capable loan officers may advance to larger branches of the firm
or to a managerial position, while less capable loan officers and
those having inadequate academic preparation may be assigned to
smaller branches and find promotion difficult. Advancement from a
loan officer position usually includes becoming a supervisor over
other loan officers and clerical staff.
Most loan counselors receive substantial on-the-job training,
gaining a thorough understanding of the requirements and proce
dures for approval of loans. Some acquire this knowledge through
work experience in a related field. In addition, accounting skills can
be very helpful. Educational requirements vary—some counselors
are high school graduates while others have a college degree in eco
nomics, finance, or a related field.
Like other workers, outstanding loan counselors can advance to
supervisory positions. However, promotion potential is limited, and
many loan counselors leave for better paying positions elsewhere.
Persons planning a career as a loan officer or counselor should
have good mathematical and communications skills. Developing ef
fective working relationships with different people—managers, cli
ents, and the public—is essential to success as a loan officer or coun
selor. They also must be able to clearly communicate the results of
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Employment of loan officers and counselors is expected to grow
faster than the average for all occupations through the year 2005. As
the population and economy grow, applications for commercial,
consumer, and mortgage loans will increase, spurring demand for
loan officers and counselors. Growth in the variety and complexity
of loans, and the importance of loan officers to the success of banks
and other lending institutions, also should assure rapid employment
growth. Although increased demand will generate many new jobs,
most openings will result from the need to replace workers who
leave the occupation or retire. College graduates and those with
banking or lending experience should have the best job prospects.
Loan officers are less likely to lose their jobs than other workers
in banks and other lending institutions during difficult economic
times. Since loans are the major source of income for banks, loan of
ficers are central to the success of their organizations. Loan counsel
ors typically have so many clients that a reduction in their numbers
would lead to a decline in the services provided to the community.
However, job security is influenced by the spending patterns of local
governments. Budget reductions could result in less hiring or even
layoffs of loan counselors.
Earnings
According to a salary survey conducted by Robert Half Interna
tional, a staffing services firm specializing in accounting and fi
nance, real estate mortgage loan officers earned between $25,000
and $45,000 in 1993; consumer loan officers, between $27,000 and
$44,000. Larger banks generally paid higher salaries than smaller
banks. Some mortgage loan officers, who typically are paid on a
commission basis, earn considerably more.
Based on limited information, most loan counselors earned be
tween $15,000 and $35,000 in 1993. Local government employees in
large cities earned the highest salaries.
Banks and other lenders sometimes offer their loan officers free
checking privileges and somewhat lower interest rates on personal
loans. Loan counselors sometimes get awards for their service to the
community.
Related Occupations
Loan officers and counselors help the public manage financial assets
and secure loans. Occupations that involve similar functions include
securities and financial services sales representatives, financial aid
officers, real estate agents and brokers, and insurance agents and
brokers.
Sources of Additional Information
For information on job opportunities as a loan officer or counselor,
contact local employers—banks, savings institutions, mortgage bro
kers, personal credit firms, or your municipal government—or the
local State employment service office.
Information about a career as a loan officer may be obtained
from:
XW American Bankers Association, 1120 Connecticut Ave. NW., Washing
ton, DC 20036.
Management Analysts and Consultants
(D.O.T. 100.117-014; 161.117-014, .167-010, -014, -018, and -022, .267
except -014 and -030; 169.167-074; and 310.267-010)
Nature of the Work
A rapidly growing small company needs a better system of control
over inventories and expenses. An established manufacturing com
pany decides to relocate to another State and needs assistance plan
ning the move. After acquiring a new division, a large company real
izes that its corporate structure must be reorganized. A division
chief of a government agency wants to know why the division’s con
tracts are always going over budget. These are just a few of the many
organizational problems that management analysts, as they are
called in government agencies, and management consultants, as
business firms refer to them, help solve. Although their job titles
may differ, their job duties are essentially the same.
The work of management analysts and consultants varies from
employer to employer and from project to project. For example,
some projects require several consultants to work together, each
specializing in one area; at other times, they will work indepen
dently. In general, analysts and consultants collect, review, and ana
lyze information; make recommendations; and often assist in the
implementation of their proposal.
Both public and private organizations use consultants for a vari
ety of reasons. Some don’t have the internal resources needed to
handle a project; others need a consultant’s expertise to determine
what resources will be required—or problems encountered—if they
pursue a particular course of action; while others want to get outside
advice on how to resolve organizational problems that have already
been identified or to avoid troublesome problems that could arise.
Firms providing consulting services range in size from solo prac
titioners to large international organizations employing thousands
of consultants. Some firms specialize by industry; others by type of
business function, such as human resources or information systems.
Consulting services usually are provided on a contract basis—a
company solicits proposals from consulting firms specializing in the
area in which it needs assistance. These proposals include the esti
mated cost and scope of the project, staffing requirements, and the
deadline. The company then selects the proposal which best meets
its needs.
Upon getting an assignment or contract, consultants define the
nature and extent of the problem. During this phase of the job, they
may analyze data such as annual revenues, employment, or expendi
tures; interview employees; or observe the operations of the organi
zational unit.
.
Next, they use their knowledge of management systems and their
expertise in a particular area to develop solutions. In the course of
preparing their recommendations, they must take into account the
general nature of the business, the relationship the firm has with
others in that industry, and the firm’s internal organization, as well
as information gained through data collection and analysis.
Once they have decided on a course of action, consultants usually
report their findings and recommendations to the client, often in
writing. In addition, they often make oral presentations regarding
their findings. For some projects, this is all that is required; for
others, consultants may assist in the implementation of their sugges
tions.
.
Management analysts in government agencies use the same skills
as their private-sector colleagues to advise managers in government
on many types of issues—most of which are similar to the problems
faced by private firms. For example, if an agency is planning to
purchase several personal computers, it first must determine which
type to buy, given its budget and data processing needs. Manage
ment analysts would assess the various types of machines available
and determine which best meets their department’s needs.
Working Conditions
Management analysts and consultants usually divide their time be
tween their offices and their client’s operation. Although much of
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Management consultants may spend a significant portion of their
time with clients.
their time is spent indoors in clean, well-lighted offices, they may
have to visit a client’s production facility where conditions may not
be so favorable. They must follow established safety procedures
when making field visits to sites where they may encounter poten
tially hazardous conditions.
Typically, analysts and consultants work at least 40 hours a week.
Overtime is common, especially when deadlines must be met. In ad
dition, because they must spend a significant portion of their time
with clients, they may travel frequently.
Self-employed consultants can set their workload and hours and
work at home. On the other hand, their livelihood depends on their
ability to maintain and expand their client base, which can be diffi
cult at times.
Employment
Management analysts and consultants held about 208,000 jobs in
1992. Four out of 10 of these workers were self-employed. Most of
the rest worked in management consulting firms and for Federal,
State, and local governments. The majority of those working for the
Federal Government were found in the Department of Defense.
Management analysts and consultants are found throughout the
country, but employment is concentrated in metropolitan areas.
Training, Other Qualifications, and Advancement
There are no universal educational requirements for entry level jobs
in this field. However, employers in private industry prefer to hire
those with a master’s degree in business administration or a disci
pline related to the firms’ area of specialization. Those individuals
hired straight out of school with only a bachelor’s degree are likely
to work as research associates or junior consultants, rather than fullfledged management consultants. It is possible for research associ
ates to advance up the career ladder if they demonstrate a strong ap
titude for consulting, but, more often, they need to get an advanced
degree to do so.
Many entrants to this occupation have, in addition to the appro
priate formal education, several years of experience in management
or in another occupation.
Most government agencies hire those with a bachelor’s degree
and no work experience as entry level management analysts, and
often provide formal classroom training in management analysis.
Many fields of study provide a suitable formal educational back
ground for this occupation because of the diversity of problem areas
addressed by management analysts and consultants. These include
most areas of business and management, as well as computer and in
formation sciences and engineering.
Management analysts and consultants who are hired directly
from school sometimes participate in formal company training pro
grams. These programs may include instruction on policies and pro
cedures, computer systems and software, research processes, and
33
management practices and principles. Because of their previous in
dustry experience, most who enter at middle levels do not partici
pate in formal company training programs. However, regardless of
background, analysts and consultants routinely attend conferences
to keep abreast of current developments in their field. Additionally,
some large firms offer in-house formal training programs for all
levels of staff.
Management analysts and consultants often work under little or
no supervision, so they should be independent and self-motivated.
Analytical skills, strong oral communication and written skills,
good judgment, the ability to manage time well, and creativity in de
veloping solutions to problems are other desirable qualities for pro
spective management analysts and consultants.
In large consulting firms, beginners usually start as a member of a
consulting team. The team is responsible for the entire project and
each consultant is assigned to a particular area. As consultants gain
experience, they may be assigned to work on one specific project
full-time, taking on more responsibility and managing their own
hours. At the senior level, consultants may supervise entry level
workers and become increasingly involved in seeking out new busi
ness. Those with exceptional skills may eventually become a partner
or principal in the firm. Others with entrepreneurial ambition may
open their own firm.
A high percentage of management consultants are self-employed,
partly because start-up costs are low. Little capital is required ini
tially, and it is possible for self-employed consultants to share office
space, administrative help, and other resources with other self-em
ployed consultants or small consulting firms, thus reducing over
head costs.
The Institute of Management Consultants (a division of the
Council of Consulting Organizations) offers the Certified Manage
ment Consultant (CMC) designation to those who pass an examina
tion and meet minimum levels of education and experience. Certifi
cation is not mandatory for management consultants to practice,
but it may give a jobseeker a competitive advantage.
In the private sector, job opportunities are expected to be best for
those with a graduate degree and some industry expertise, while op
portunities for those with only a bachelor’s degree will be best in the
Federal Government.
Because many small consulting firms fail each year for lack of
managerial expertise and clients, those interested in opening their
own firm should have good organizational and marketing skills,
plus several years of consulting experience.
Despite projected rapid employment growth, competition for jobs
as management consultants is expected to be keen in the private sec
tor. Because management consultants can come from such diverse
educational backgrounds, the pool of applicants from which em
ployers hire is quite large. Additionally, the independent and chal
lenging nature of the work combined with high earnings potential
make this occupation attractive to many.
Earnings
Salaries for management analysts and consultants vary widely by
experience, education, and employer. In 1992, those who were wage
and salary workers had median annual earnings of about $40,300.
The middle 50 percent earned between $26,500 and $60,100.
In 1991, according to the Association of Management Consulting
Firms (ACME), earnings—including bonuses and/or profit shar
ing—for research associates in ACME member firms averaged
$31,300; for entry level consultants, $39,100; for management con
sultants, $56,300; for senior consultants, $76,700; for junior part
ners, $105,600; and for senior partners, $166,100.
Typical benefits for salaried analysts and consultants include
health and life insurance, a retirement plan, vacation and sick leave,
profit sharing, and bonuses for outstanding work. In addition, all
travel expenses usually are reimbursed by their employer. Self-em
ployed consultants usually have to maintain an office and do not re
ceive employer-provided benefits.
Related Occupations
Job Outlook
Employment of management analysts and consultants is expected to
grow much faster than the average for all occupations through the
year 2005 as industry and government increasingly rely on outside
expertise to improve the performance of their organizations.
Growth is expected in large consulting firms, but also in small con
sulting firms whose consultants will specialize in highly specific ar
eas of expertise. Although most job openings will result from em
ployment growth of the occupation, additional opportunities will
arise from the need to replace personnel who transfer to other fields
or leave the labor force.
Increased competition has caused American industry to take a
closer look at its operations. In more competitive international and
domestic markets, firms cannot afford inefficiency and wasted re
sources or else they risk losing their share of the market. Manage
ment consultants are being increasingly relied upon to help reduce
costs, streamline operations, and develop marketing strategies. As
businesses downsize and eliminate needed functions as well as per
manent staff, consultants will be used to perform those functions on
a contractual basis. On the other hand, businesses undergoing ex
pansion, particularly into world markets, will also need the skills of
management consultants to help with organizational, administra
tive, and other issues. Continuing changes in the business environ
ment also are expected to lead to demand for management consul
tants: Firms will use consultants’ expertise to incorporate new
technologies, to cope with more numerous and complex government
regulations, and to adapt to a changing labor force. As businesses
rely more on technology, there are increasing roles for consultants
with a technical background, such as engineering or biotechnology,
particularly when combined with an MBA.
Federal, State, and local agencies also are expected to expand
their use of management analysts. In the era of budget deficits, ana
lysts’ skills at identifying problems and implementing cost reduction
measures are expected to become increasingly important. However,
because one-half of the management analysts employed by the Fed
eral government work for the Department of Defense, the pace of
Federal employment growth will vary with the defense budget.
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Management analysts and consultants collect, review, and analyze
data; make recommendations; and assist in the implementation of
their ideas. Others who use similar skills are managers, computer
systems analysts, operations research analysts, economists, and fi
nancial analysts.
Sources of Additional Information
Information about career opportunities in management consulting
is available from:
XW ACME, The Association of Management Consulting Firms, 521 Fifth
Ave., 35th Floor, New York, NY 10175-3598.
For information about a career as a State or local government
management analyst, contact your State or local employment ser
vice.
Persons interested in a management analyst position in the Fed
eral Government can obtain information from:
fW U.S. Office of Personnel Management, 1900 E St. NW., Washington, DC
Marketing, Advertising, and Public
Relations Managers
(D.O.T. 141.137-010; 159.167-022; 163.117-014, -018, -022, -026, .167-010
-018, -022, .267-010; 164.117-010, -014, -018, .167-010- 185 117-014’
.157-010,-014; 187.167-162; 189.117-018)
Nature of the Work
The fundamental objective of any firm is to market its products or
services profitably. In small firms, all marketing responsibilities
may be assumed by the owner or chief executive officer. In large
firms, which may offer numerous products and services nationally
or even worldwide, experienced marketing, advertising, and public
relations managers coordinate these and related activities.
The executive vice president for marketing in large firms directs
the overall marketing policy—including market research, market
ing strategy, sales, advertising, promotion, pricing, product devel
opment, and public relations activities. (This occupation is included
in the Handbook statement on general managers and top execu
tives.) These activities are supervised by middle and supervisory
managers who oversee staffs of professionals and technicians.
Marketing managers develop the firm’s detailed marketing strat
egy. With the help of subordinates, including product development
managers and market research managers, they determine the de
mand for products and services offered by the firm and its competi
tors and identify potential consumers—for example, business firms,
wholesalers, retailers, government, or the general public. Mass mar
kets are further categorized according to various factors such as re
gion, age, income, and lifestyle. Marketing managers develop pric
ing strategy with an eye towards maximizing the firm’s share of the
market and its profits while ensuring that the firm’s customers are
satisfied. In collaboration with sales, product development, and
other managers, they monitor trends that indicate the need for new
products and services and oversee product development. Marketing
managers work with advertising and promotion managers to best
promote the firm’s products and services and to attract potential
users.
Sales managers direct the firm’s sales program. They assign sales
territories and goals and establish training programs for their sales
representatives. Managers advise their sales representatives on ways
to improve their sales performance. In large, multiproduct firms,
they oversee regional and local sales managers and their staffs. Sales
managers maintain contact with dealers and distributors. They ana
lyze sales statistics gathered by their staffs to determine sales poten
tial and inventory requirements and monitor the preferences of cus
tomers. Such information is vital to develop products and maximize
profits.
Except in the largest firms, advertising and promotion staffs are
generally small and serve as a liaison between the firm and the ad
vertising or promotion agency to which many advertising or promo
tional functions are contracted out. Advertising managers oversee
the account services, creative services, and media services depart
ments. The account services department is managed by account ex
ecutives, who assess the need for advertising and, in advertising
agencies, maintain the accounts of clients. The creative services de
partment develops the subject matter and presentation of advertis
ing. This department is supervised by a creative director, who over
sees the copy chief and art director and their staffs. The media
services department is supervised by the media director, who over
sees planning groups that select the communication media—for ex
ample, radio, television, newspapers, magazines, or outdoor signs—
to disseminate the advertising.
Promotion managers supervise staffs of promotion specialists.
They direct promotion programs combining advertising with
purchase incentives to increase sales of products or services. In an
effort to establish closer contact with purchasers—dealers, distribu
tors, or consumers—promotion programs may involve direct mail,
telemarketing, television or radio advertising, catalogs, exhibits, in
serts in newspapers, in-store displays and product endorsements,
and special events. Purchase incentives may include discounts, sam
ples, gifts, rebates, coupons, sweepstakes, and contests.
Public relations managers supervise public relations specialists
(see the Handbook statement on public relations specialists). These
managers direct publicity programs to a targeted public. They use
any necessary communication media in their effort to maintain the
support of the specific group upon whom their organization’s suc
cess depends, such as consumers, stockholders, or the general pub
lic. For example, public relations managers may clarify or justify the
firm’s point of view on health or environmental issues to community
or special interest groups. They may evaluate advertising and pro
motion programs for compatibility with public relations efforts.
Public relations managers, in effect, serve as the eyes and ears of top
management. They observe social, economic, and political trends
that might ultimately have an effect upon the firm, and make recom
mendations to enhance the firm’s public image in view of those
trends. Public relations managers may confer with labor relations
managers to produce internal company communications—such as
news about employee-management relations—and with financial
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Federal Reserve Bank of St. Louis
managers to produce company reports. They may assist company
executives in drafting speeches, arranging interviews, and other
forms of public contact; oversee company archives; and respond to
information requests. In addition, public relations managers may
handle special events such as sponsorship of races, parties introduc
ing new products, or other activities the firm supports in order to
gain public attention through the press without advertising directly.
Working Conditions
Marketing, advertising, and public relations managers are provided
with offices close to top managers. Long hours, including evenings
and weekends, are common. Working under pressure is unavoidable
as schedules change, problems arise, and deadlines and goals must
be met. Marketing, advertising, and public relations managers meet
frequently with other managers; some meet with the public and gov
ernment officials.
Substantial travel may be involved. For example, attendance at
meetings sponsored by associations or industries is often
mandatory. Sales managers travel to national, regional, and local of
fices and to various dealers and distributors. Advertising and pro
motion managers may travel to meet with clients or representatives
of communications media. Public relations managers may travel to
meet with special interest groups or government officials. Job trans
fers between headquarters and regional offices are common—par
ticularly among sales managers—and may disrupt family life.
Employment
Marketing, advertising, and public relations managers held about
432,000 jobs in 1992. These managers are found in virtually every
industry. Industries employing them in significant numbers include
motor vehicle dealers; printing and publishing firms; advertising
agencies; department stores; computer and data processing services
firms; and management and public relations firms.
Training, Advancement, and Other Qualifications
A wide range of educational backgrounds are suitable for entry into
marketing, advertising, and public relations managerial jobs, but
many employers prefer a broad liberal arts background. A bache
lor’s degree in sociology, psychology, literature, or philosophy,
among other subjects, is acceptable. However, requirements vary
depending upon the particular job.
For marketing, sales, and promotion management positions,
some employers prefer a bachelor’s or master’s degree in business
administration with an emphasis on marketing. Courses in business
law, economics, accounting, finance, mathematics, and statistics are
also highly recommended. In highly technical industries, such as
V_ _ _ _ _
Increasing competition in products and services will spur rapid
employment growth among marketing, advertising, and public
relations managers.
35
computer and electronics manufacturing, a bachelor’s degree in en
gineering or science combined with a master’s degree in business ad
ministration may be preferred. For advertising management posi
tions, some employers prefer a bachelor’s degree in advertising or
journalism. A course of study should include courses in marketing,
consumer behavior, market research, sales, communications meth
ods and technology, and visual arts—for example, art history and
photography. For public relations management positions, some em
ployers prefer a bachelor’s or master’s degree in public relations or
journalism. The individual’s curriculum should include courses in
advertising, business administration, public affairs, political science,
and creative and technical writing. For all these specialties, courses
in management and completion of an internship while in school are
highly recommended. Familiarity with computerized word process
ing and data base applications also are important for many market
ing, advertising, and public relations management positions.
Most marketing, advertising, and public relations management
positions are filled by promoting experienced staff or related profes
sional or technical personnel—for example, sales representatives,
purchasing agents, buyers, product or brand specialists, advertising
specialists, promotion specialists, and public relations specialists. In
small firms, where the number of positions is limited, advancement
to a management position may come slowly. In large firms, promo
tion may occur more quickly.
Although experience, ability, and leadership are emphasized for
promotion, advancement may be accelerated by participation in
management training programs conducted by many large firms.
Many firms also provide their employees with continuing education
opportunities, either in-house or at local colleges and universities,
and encourage employee participation in seminars and conferences,
often provided by professional societies. Often in collaboration with
colleges and universities, numerous marketing and related associa
tions sponsor national or local management training programs.
Courses include brand and product management, international
marketing, sales management evaluation, telemarketing and direct
sales, promotion, marketing communication, market research, or
ganizational communication, and data processing systems proce
dures and management. Many firms pay all or part of the cost for
those who successfully complete courses.
Some associations (listed under sources of additional informa
tion) offer certification programs for marketing, advertising, and
public relations managers. Certification is a sign of competence and
achievement in this field that is particularly important in a competi
tive job market. While relatively few marketing, advertising, and
public relations managers currently are certified, the number of
managers who seek certification is expected to grow. For example,
Sales and Marketing Executives International offers a management
certification program based on education and job performance. The
Public Relations Society of America offers an accreditation pro
gram for public relations practitioners based on years of experience
and an examination. The American Marketing Association is devel
oping a certification program for marketing managers.
Persons interested in becoming marketing, advertising, and pub
lic relations managers should be mature, creative, highly motivated,
resistant to stress, and flexible, yet decisive. The ability to communi
cate persuasively, both orally and in writing, with other managers,
staff, and the public is vital. Marketing, advertising, and public rela
tions managers also need tact, good judgment, and exceptional abil
ity to establish and maintain effective personal relationships with
supervisory and professional staff members and client firms.
Because of the importance and high visibility of their jobs, mar
keting, advertising, and public relations managers often are prime
candidates for advancement. Well-trained, experienced, successful
managers may be promoted to higher positions in their own or other
firms. Some become top executives. Managers with extensive experi
ence and sufficient capital may open their own businesses.
Job Outlook
Employment of marketing, advertising, and public relations manag
ers is expected to increase faster than the average for all occupations
through the year 2005. Increasingly intense domestic and global
competition in products and services offered to consumers should
require greater marketing, promotional, and public relations efforts.
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Management and public relations firms may experience particularly
rapid growth as businesses increasingly hire contractors for these
services rather than support additional full-time staff.
In addition to faster than average growth, many job openings will
occur each year as a result of managers moving into top manage
ment positions, transferring to other jobs, or leaving the labor force.
However, many of these highly coveted jobs will be sought by other
managers or highly experienced professional and technical person
nel, resulting in substantial job competition. College graduates with
extensive experience, a high level of creativity, and strong communi
cation skills should have the best job opportunities.
Projected employment growth varies by industry. For example,
employment of marketing, advertising, and public relations manag
ers is expected to grow much faster than average in most business
services industries, such as computer and data processing, and man
agement and public relations firms, while average growth is pro
jected in manufacturing industries overall.
Earnings
According to a College Placement Council survey, starting salary
offers to marketing majors graduating in 1993 averaged about
$24,000; advertising majors, about $21,000.
The median annual salary of marketing, advertising, and public
relations managers was $41,000 in 1992. The lowest 10 percent
earned $22,000 or less, while the top 10 percent earned $79,000 or
more. Many earn bonuses equal to 10 percent or more of their sala
ries. Surveys show that salary levels vary substantially depending
upon the level of managerial responsibility, length of service, educa
tion, and the employer’s size, location, and industry. For example,
manufacturing firms generally pay marketing, advertising, and pub
lic relations managers higher salaries than nonmanufacturing firms.
For sales managers, the size of their sales territory is another impor
tant factor.
According to a 1992 survey by Abbot, Langer and Associates, of
Crete, Illinois, annual incomes for sales/marketing managers varied
greatly—from under $25,000 to over $250,000—depending on the
manager’s level of education, experience, industry, and the number
of employees he or she supervises. The median annual income for
top advertising managers was $45,000; product/brand managers,
$54,000; top market research managers, $55,000; regional sales
managers, $64,000; and chief marketing executives, $67,000.
Related Occupations
Marketing, advertising, and public relations managers direct the
sale of products and services offered by their firms and the commu
nication of information about their firms’ activities. Other personnel
involved with marketing, advertising, and public relations include
art directors, commercial and graphic artists, copy chiefs,
copywriters, editors, lobbyists, marketing research analysts, public
relations specialists, promotion specialists, sales representatives,
and technical writers. (Some of these occupations are discussed else
where in the Handbook.)
Sources of Additional Information
For information about careers in sales and marketing management,
contact:
is* American Marketing Association, 250 S. Wacker Dr., Chicago, IL
60606.
6
Sales and Marketing Executives International, 458 Statler Office Tower,
Cleveland, OH 44115.
For information about careers in advertising management, con
tact:
American Advertising Federation, Education Services Department, 1101
Vermont Ave. NW., Suite 500, Washington, DC 20005.
Information about careers in promotion management is available
from:
O’Council of Sales Promotion Agencies, 750 Summer St., Stamford, CT
06901.
Gr Promotion Marketing Association of America, Inc., 322 Eighth Ave.,
Suite 1201, New York, NY 10001.
Information about careers in public relations management is
available from:
O’ Public Relations Society of America, 33 Irving Place, New York, NY
10003-2376.
Personnel, Training, and Labor Relations
Specialists and Managers
(D.O.T. 079.127; 099.167-010; 166.067, .117, .167 except -046, .257,
.267-014 through -046; 169.107, .167-062, .207; 188.117-010, -086, .217)
Nature of the Work
Attracting the most qualified employees available and matching
them to the jobs they are best suited for is important for the success
of any organization. However, many enterprises are too large to per
mit close contact between top management and employees. Instead,
personnel, training, and labor relations specialists and managers,
commonly known as human resource specialists and managers, pro
vide this link. These individuals recruit and interview employees
and advise on hiring decisions in accordance with policies and re
quirements that have been established in conjunction with top man
agement. In an effort to improve morale and productivity and limit
job turnover, they also help their firms effectively use employees’
skills, provide training opportunities to enhance those skills, and
boost employees’ satisfaction with their jobs and working condi
tions. Although some jobs in the human resources field require only
limited contact with people outside the office, most involve frequent
contact. Dealing with people is an essential part of the job.
In a small organization, one person may handle all aspects of per
sonnel, training, and labor relations work. In contrast, in a large
corporation, the top human resources executive usually develops
and coordinates personnel programs and policies. (Executives are
included in the Handbook statement on general managers and top
executives.) These policies usually are implemented by a director or
manager of human resources and, in some cases, a director of indus
trial relations.
The director of human resources may oversee several depart
ments, each headed by an experienced manager, who most likely
specializes in one personnel activity such as employment, compen
sation, benefits, training and development, or employee relations.
Employment and placement managers oversee the hiring and sep
aration of employees and supervise various workers, including equal
employment opportunity specialists and recruitment specialists.
Recruiters maintain contacts within the community and may
travel extensively—often to college campuses—to search for prom
ising job applicants. Recruiters screen, interview, and, in some
cases, test applicants, and recommend those who are qualified to fill
vacancies. They may also check references before an offer is made.
These workers need to be thoroughly familiar with the organization
and its personnel policies to discuss wages, working conditions, and
promotional opportunities with prospective employees. They also
need to keep informed about equal employment opportunity (EEO)
and affirmative action guidelines and laws, such as the Americans
With Disabilities Act.
EEO representatives or affirmative action coordinators handle
this area in large organizations. They investigate and resolve EEO
grievances, examine corporate practices for possible violations, and
compile and submit EEO statistical reports.
Employer relations representatives—who usually work in gov
ernment agencies—maintain working relationships with local em
ployers and promote the use of public employment programs and
services. Similarly, employment interviewers—sometimes called
personnel consultants—help match jobseekers with employers. (For
more information, see the statement on employment interviewers
elsewhere in the Handbook.)
Job analysts, sometimes called position classifiers, perform very
exacting work. They collect and examine detailed information about
job duties to prepare job descriptions. These descriptions explain the
duties, training, and skills each job requires. Whenever a large or
ganization introduces a new job or reviews existing jobs, it calls
upon the expert knowledge of the job analyst.
Occupational analysts conduct research, generally in large firms.
They are concerned with occupational classification systems and
study the effects of industry and occupational trends upon worker
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relationships. They may serve as technical liaison between the firm
and industry, government, and labor unions.
Establishing and maintaining a firm’s pay system is the principal
job of the compensation manager. Assisted by staff specialists, com
pensation managers devise ways to ensure fair and equitable pay
rates. They may conduct surveys to see how their rates compare
with others and to see that the firm’s pay scale complies with chang
ing laws and regulations. In addition, compensation managers often
oversee their firm’s performance evaluation system, and they may
design reward systems such as pay-for-performance plans.
Employee benefits managers handle the company’s employee
benefits program, notably its health insurance and pension plans.
Expertise in designing and administering benefits programs contin
ues to gain importance as employer-provided benefits account for a
growing proportion of overall compensation costs, and as benefit
plans increase in number and complexity. For example, pension
benefits might include savings and thrift, profit sharing, and stock
ownership plans, and health benefits may include long-term cata
strophic illness insurance and dental insurance. Familiarity with
health benefits is a top priority at present, as more firms struggle to
cope with the rising cost of health care for employees and retirees. In
addition to health insurance and pension coverage, some firms offer
their employees life and accidental death and dismemberment insur
ance, disability insurance, and relatively new benefits designed to
meet the needs of a changing work force, such as parental leave,
child care and elder care, long-term nursing home care insurance,
employee assistance and wellness programs, and flexible benefits
plans, in which employees have the option of receiving cash instead
of benefits. Benefits managers must keep abreast of changing Fed
eral and State regulations and legislation that may affect employee
benefits.
Employee assistance plan managers—also called employee wel
fare managers—are responsible for a wide array of programs cover
ing occupational safety and health standards and practices; health
promotion and physical fitness, medical examinations, and minor
health treatment, such as first aid; plant security; publications; food
service and recreation activities; car pooling; employee suggestion
systems; child care and elder care; and counseling services. Child
care and elder care are increasingly important due to growth in the
number of dual-income households and the elderly population.
Counseling may help employees deal with emotional disorders, al
coholism, or marital, family, consumer, legal, and financial
problems. Career counseling and second career counseling for em
ployees approaching retirement age also may be provided. In large
firms, some of these programs—such as security and safety—are in
separate departments headed by other managers.
Training is supervised by training and development managers. In
creasingly, management recognizes that training offers a way of de
veloping skills, enhancing productivity and quality of work, and
building loyalty to the firm. Training is widely accepted as a method
of improving employee morale, but this is only one of the reasons for
its growing importance. Other factors include the complexity of the
work environment, the rapid pace of organizational and technologi
cal change, and the growing number of jobs in fields that constantly
generate new knowledge. In addition, advances in learning theory
have provided insights into how adults learn, and how training can
be organized most effectively for adults.
Training specialists plan, organize, and direct a wide range of
training activities. Trainers conduct orientation sessions and ar
range on-the-job training for new employees. They help rank-andfile workers maintain and improve their job skills and possibly pre
pare for jobs requiring greater skill. They help supervisors improve
their interpersonal skills in order to deal effectively with employees.
To help employees prepare for future responsibilities, they may set
up individualized training plans to strengthen existing skills or to
teach new skills. Training specialists in some companies set up pro
grams to develop executive potential among employees in lower
level positions. In government-supported training programs, train
ing specialists function as case managers. They first assess the train
ing needs of the client, then help guide the client through the appro
priate training method. After training, they either refer the client to
employer relations representatives or help them get a job.
Planning and program development is an important part of the
training specialist’s job. In order to identify and assess training
needs within the firm, trainers may confer with managers and super
visors or conduct surveys. They also periodically evaluate training
effectiveness.
Depending on the size, goals, and nature of the organization,
trainers may differ considerably in their responsibilities and in the
methods they use. Training methods include on-the-job training;
schools in which shop conditions are duplicated for trainees prior to
putting them on the shop floor; apprenticeship training; classroom
training; programmed instruction, which may involve interactive
videos, videodiscs, and other computer-aided instructional technol
ogies; simulators; conferences; and workshops.
The director of industrial relations forms labor policy, oversees
industrial labor relations, negotiates collective bargaining agree
ments, and coordinates grievance procedures to handle complaints
resulting from disputes under the contract for firms with unionized
employees. The director of industrial relations also advises and col
laborates with the director of human resources and other managers
and members of their staff, because all aspects of personnel policy—
such as wages, benefits, pensions, and work practices—may be in
volved in drawing up a new or revised contract.
Industrial labor relations programs are implemented by labor re
lations managers and their staff. When a collective bargaining
agreement is up for negotiation, labor relations specialists prepare
information for management to use during negotiation, which re
quires familiarity with economic and wage data as well as extensive
knowledge of labor law and collective bargaining trends. The labor
relations staff interprets and administers the contract with respect
to grievances, wages and salaries, employee welfare, health care,
pensions, union and management practices, and other contractual
stipulations. As union membership is continuing to decline in most
industries, industrial relations personnel are working more with em
ployees who are not members of a labor union.
Dispute resolution—that is, attaining tacit or contractual agree
ments—has become increasingly important as disputants attempt to
avoid costly litigation, strikes, or other disruptions. Dispute resolu
tion also has become more complex, involving employees, manage
ment, unions, other firms, and government agencies. Specialists in
volved in dispute resolution must be highly knowledgeable and
experienced, and often report to the director of industrial relations.
Conciliators, or mediators, advise and counsel labor and manage
ment to prevent and, when necessary, resolve disputes over labor
agreements or other labor relations issues. Arbitrators, sometimes
called umpires or referees, decide disputes and bind both labor and
management to specific terms and conditions of labor contracts. La
bor relations specialists who work for unions perform many of the
same functions on behalf of the union and its members.
Other emerging specialists include international human resources
managers, who handle human resources issues related to a com
pany’s foreign operations, and human resources information system
specialists, who develop and apply computer programs to process
personnel information, match jobseekers with job openings, and
handle other personnel matters.
Working Conditions
Personnel work is office work. Generally, the work setting is clean,
pleasant, and comfortable. Many personnel, training, and labor re
lations specialists and managers work a standard 35- to 40-hour
week. However, many work longer hours—for example, labor rela
tions specialists and managers—when contract agreements are be
ing prepared and negotiated.
Although most personnel, training, and labor relations specialists
and managers work in the office, some travel extensively. For exam
ple, recruiters regularly attend professional meetings and visit col
lege campuses to interview prospective employees.
Employment
Personnel, training, and labor relations specialists and managers
held about 474,000 jobs in 1992. They were employed in virtually
every industry. Specialists accounted for 281,000 positions; manag
ers, 193,000. About 10,000—mostly specialists—were self-em
ployed, working as consultants to public and private employers.
The private sector accounted for about 85 percent of salaried jobs.
Among these salaried jobs, services industries—including business,
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More personnel, training, and labor relations specialists and
managers will be needed as employers devote greater resources to
job-specific training programs.
health, social, management, and educational services—accounted
for nearly 4 out of 10 jobs; labor organizations—the largest em
ployer among specific industries—accounted for 1 out of 10. Manu
facturing industries accounted for over 2 out of 10 jobs, while fi
nance, insurance, and real estate firms accounted for about 1 out of
10.
Federal, State, and local governments employed about 15 percent
of salaried personnel, training, and labor relations specialists and
managers. They handled the recruitment, interviewing, job classifi
cation, training, salary administration, benefits, employee relations,
and related matters of the Nation’s public employees.
Training, Other Qualifications, and Advancement
Because of the diversity of duties and level of responsibility, the edu
cational backgrounds of personnel, training, and labor relations spe
cialists and managers vary considerably. In filling entry level jobs,
firms generally seek college graduates. Some employers prefer appli
cants who have majored in human resources, personnel administra
tion, or industrial and labor relations, while others look for college
graduates with a technical or business background. Still others feel
that a well-rounded liberal arts education is best.
Many colleges and universities have programs leading to a degree
in personnel, human resources, or labor relations. Some offer degree
programs in personnel administration or human resources manage
ment, training and development, or compensation and benefits. De
pending on the school, courses leading to a career in human re
sources management may be found in departments of business
administration, education, instructional technology, organizational
development, human services, communication, or public adminis
tration, or within a separate human resources institution or depart
ment.
Because an interdisciplinary background is appropriate for work
in this area, a combination of courses in the social sciences, business,
and behavioral sciences is useful. Some jobs may require a back
ground in engineering, science, finance, or law. Most prospective
personnel specialists should take courses in compensation, recruit
ment, training and development, and performance appraisal, as well
as courses in principles of management, organizational structure,
and industrial psychology. Other relevant courses include business
administration, public administration, psychology, sociology, politi
cal science, economics, and statistics. Courses in labor law, collec
tive bargaining, labor economics, labor history, and industrial psy
chology also provide a valuable background for the prospective
labor relations specialist. Knowledge of computers and information
systems is important for some jobs.
Graduate study in industrial or labor relations is increasingly im
portant for those seeking work in labor relations. A law degree sel
dom is required for entry level jobs, but many people responsible for
contract negotiations are lawyers, and a combination of industrial
relations courses and law is highly desirable. A background in law is
also desirable for employee benefits managers and others who must
interpret the growing number of laws and regulations. A degree in
dispute resolution provides an excellent background for mediators,
arbitrators, and related personnel. A master’s degree in personnel,
training, or labor relations, or in business administration with a con
centration in human resources management, is desirable for those
seeking general and top management positions.
For many specialized jobs in this field, previous experience is an
asset; for managerial positions, it is essential. Many employers pre
fer entry level workers who have gained some experience through an
internship or work-study program while in school. Personnel ad
ministration and human resources development require the ability
to work with individuals as well as a commitment to organizational
goals. This field also demands other skills that people may develop
elsewhere—computer usage, selling, teaching, supervising, and vol
unteering, among others. This field offers clerical workers opportu
nities for advancement to professional positions. Responsible posi
tions sometimes are filled by experienced individuals from other
fields, including business, government, education, social services ad
ministration, and the military.
Personnel, training, and labor relations specialists and managers
should speak and write effectively and be able to work with or super
vise people of all levels of education and experience as part of a
team. They must be patient to cope with conflicting points of view
and emotionally stable to deal with the unexpected and the unusual.
The ability to function under pressure is essential. Integrity, fairmindedness, and a persuasive, congenial personality are important
qualities.
Entry level workers often enter formal or on-the-job training pro
grams, in which they learn how to classify jobs, interview appli
cants, or administer employee benefits. Next, they are assigned to
specific areas in the personnel department to gain experience. Later,
they may advance to a managerial position, overseeing a major ele
ment of the personnel program—compensation or training, for ex
ample.
Exceptional personnel, training, and labor relations workers may
be promoted to director of personnel or industrial relations, which
can eventually lead to a top managerial or executive position. Others
may join a consulting firm or open their own business. A Ph.D. is an
asset for teaching, writing, or consulting work.
Though not widespread, some organizations offer certification
examinations to members who meet certain education and experi
ence requirements. Certification is a sign of competence and can en
hance one’s advancement opportunities. (Several of these organiza
tions are listed under sources of additional information.)
Job Outlook
The number of personnel, training, and labor relations specialists
and managers is expected to grow faster than the average for all oc
cupations through the year 2005. As in other occupations, job
growth among specialists is projected to outpace job growth among
managers. In addition, many job openings will result from the need
to replace workers who leave this occupation to transfer to other
jobs, retire, or for other reasons. However, the job market is likely to
remain competitive in view of the abundant supply of qualified col
lege graduates and experienced workers.
Most new jobs for personnel, training, and labor relations special
ists and managers will be in the private sector as employers, increas
ingly concerned about productivity and quality of work, devote
greater resources to job-specific training programs in response to the
growing complexity of many jobs, the aging of the work force, and
technological advances that can leave employees with obsolete
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skills. In addition, legislation and court rulings setting standards in
occupational safety and health, equal employment opportunity,
wages, and health, pension, family leave, and other benefits will in
crease demand for experts in these areas. The increasing cost of liti
gation related to labor-management disputes may spur demand for
labor relations workers to help resolve these disputes out of court.
Increasing demand for international human resources managers
and human resources information systems specialists may spur ad
ditional job growth. On the other hand, widespread use of comput
erized human resources information systems could make workers
more productive, thus limiting job growth.
Employment demand will be particularly strong in management
and consulting firms as well as personnel supply firms as businesses
increasingly contract out personnel functions or hire personnel spe
cialists on a contractual basis to meet the increasing cost and com
plexity of training and development programs. Demand should also
increase in firms that develop and administer the increasingly com
plex employee benefits and compensation packages for other organi
zations.
Demand for personnel, training, and labor relations specialists
and managers also is governed by the staffing needs of the firms
where they work. A rapidly expanding business is likely to hire addi
tional personnel workers—either as permanent employees or con
sultants—while a business that has experienced a merger or a reduc
tion in its work force will require fewer personnel workers. Similar
to other workers, employment of personnel, training, and labor rela
tions specialists and managers, particularly in larger firms, may be
adversely affected by corporate downsizing and restructuring. On
the other hand, as human resource management becomes increas
ingly important to the success of an organization, some small and
medium-size businesses that do not have a human resources depart
ment may employ workers to perform human resources duties on a
part-time basis while maintaining other unrelated responsibilities
within the company. In any particular firm, the size and the job du
ties of the human resources staff are determined by a variety of fac
tors, including the firm’s organizational philosophy and goals, the
labor intensity and skill profile of the industry, the pace of techno
logical change, government regulations, collective bargaining agree
ments, standards of professional practice, and labor market condi
tions.
Earnings
According to a 1993 College Placement Council salary survey,
bachelor’s degree graduates who majored in human resources, in
cluding labor relations, received starting offers averaging $22,900 a
year; master’s degree recepients, $30,500.
The median annual salary of personnel, training, and labor rela
tions specialists was about $32,000 in 1992. For managers, the me
dian annual salary was over $37,000. However, salaries varied
widely. The lowest 10 percent of specialists earned around $17,000,
while the highest 10 percent of managers earned nearly $64,000.
According to a 1992 survey of compensation in the human re
sources field, conducted by Abbott, Langer, and Associates of
Crete, Illinois, the median annual salaries for selected personnel and
labor relations occupations were: Industrial/labor relations manag
ers, $70,000; corporate training directors, $63,900; compensation
specialists (executive, managerial, and professional jobs), $40,200;
EEO/affirmative action specialists, $33,800; personnel research
specialists, $29,400; and benefits specialists (clerical jobs), $24,200.
According to a survey of workplaces in 160 metropolitan areas,
personnel specialists with limited experience had median earnings of
$25,100 a year in 1992, with the middle half earning between
$22,500 and $28,000 a year. The most experienced personnel spe
cialists had median earnings of $76,900, with the middle half earn
ing between $67,200 and $84,300. Personnel supervisors/managers
with limited experience had median earnings of $51,100 a year in
1992, with the middle half earning between $47,200 and $56,400 a
year. The most experienced personnel supervisors/managers had
median earnings of $105,000, with the middle half earning between
$94,800 and $123,900.
In the Federal Government in 1993, persons with a bachelor’s de
gree or 3 years’ general experience in the personnel field generally
started at $18,300 a year. Those with a superior academic record or
an additional year of specialized experience started at $22,700 a
39
year. Holders of a master’s degree started at $27,800, and those with
a doctorate in a personnel field started at $33,600. There are no for
mal entry level requirements for managerial positions. Applicants
must possess a suitable combination of educational attainment, ex
perience, and record of accomplishment.
Labor relations specialists in the Federal Government averaged
$50,400 a year in 1993; personnel managers, $48,200; equal employ
ment opportunity specialists, $47,200; position classification spe
cialists, $45,000; and personnel staffing specialists, $42,600.
Related Occupations
All personnel, training, and labor relations occupations are closely
related. Other workers with skills and expertise in interpersonal re
lations include employment, rehabilitation, and college career plan
ning and placement counselors; lawyers; psychologists; sociologists;
social workers; public relations specialists; and teachers. These oc
cupations are described elsewhere in the Handbook.
Sources of Additional Information
For general information on careers and certification in the human
resources field, send a self-addressed, stamped, legal-sized envelope
to:
{S’ Society for Human Resource Management, 606 N. Washington St., Al
exandria, VA 22314.
For information about careers in employee training and develop
ment, contact:
(^■American Society for Training and Development, 1640 King St., Box
1443, Alexandria, VA 22313.
For information about careers and certification in employee com
pensation and benefits, contact:
{S’ American Compensation Association, 14040 Northsight Blvd., Scotts
dale, AZ 85260.
Information about careers and certification in employee benefits
is available from:
(^•International Foundation of Employee Benefit Plans, 18700 W.
Bluemound Rd., Brookfield, WI 53008.
For information about careers in arbitration and other aspects of
dispute resolution, contact:
(S’ American
Arbitration Association, 140 West 51st St., New York, NY
10020.
For information about academic programs in industrial relations,
write to:
tw Industrial Relations Research Association, University of Wisconsin,
7226 Social Science Bldg., 1180 Observatory Dr., Madison, WI 53706.
Information about personnel careers in the health care industry is
available from:
W American Hospital Association, American Society for Healthcare
Human Resources, 840 North Lake Shore Dr., Chicago, IL 60611.
{S’ American Society for Healthcare Education and Training, 840 North
Lake Shore Dr., Chicago, IL 60611.
For information about personnel and labor relations careers in
government, contact:
{S’ International
Association of Personnel in Employment Security, 1801
Louisville Rd., Frankfort, KY 40601.
For additional information on government careers in personnel,
send a self-addressed, stamped envelope to:
{S’ International Personnel Management Association, IPMA Center for
Personnel Research, 1617 Duke St., Alexandria, VA 22314.
Property and Real Estate Managers
(D.O.T. 186.117-042, -046, -058, and -062, .167-018, -030, -038, -042, -046,
-062, -066, and -090; 187.167-190; 189.157; 191.117-030 and -042 through
-050)
Nature of the Work
Many people own real estate in the form of a home, but, to busi
nesses and investors, commercial real estate is a source of income
and profit rather than simply a place for shelter. For them, real es
tate—including land and structures such as office buildings, shop
ping centers, and apartment complexes—is a valuable asset that can
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produce income and appreciate in value over time if well managed.
Real estate can be a source of income when it is leased to others, and
a substantial business expense when it is leased from others. For this
reason, property managers perform an important function in in
creasing and maintaining the value of real estate investments for in
vestors. Property managers administer income-producing commer
cial and residential properties and manage the communal property
and services of condominium and community associations. Real es
tate managers plan and direct the purchase, development, and dis
posal of real estate for businesses.
Most property and real estate managers work in the field of prop
erty management. When owners of apartments, office buildings, re
tail and industrial properties, or condominiums lack the time or ex
pertise to assume the day-to-day management of their real estate
investments, they often hire a property manager, or contract for
one’s services with a real estate management company. Most prop
erty managers handle several properties simultaneously. Property
managers act as the owners’ agent and adviser for the property.
They market vacant space to prospective tenants, through the use of
a leasing agent, advertising, or by other means, and establish rental
rates in accordance with prevailing local conditions. They negotiate
and prepare lease or rental agreements with tenants and collect their
rent payments and other fees. Property managers also handle the
bookkeeping for the property. They see to it that rents are received
and make sure that mortgages, taxes, insurance premiums, payroll,
and maintenance bills are paid on time. They also supervise the
preparation of financial statements and periodically report to the
owners on the status of the property, occupancy rates, dates of lease
expirations, and other matters.
Property managers negotiate contracts for janitorial, security,
groundskeeping, trash removal, and other services. When contracts
are awarded competitively, managers must solicit bids from several
contractors and recommend to the owners which bid to accept.
They monitor the performance of the contractors, and investigate
and resolve complaints from tenants. Managers also purchase all
supplies and equipment needed for the property, and make arrange
ments with specialists for any repairs that cannot be handled by the
regular property maintenance staff.
Property managers hire the maintenance and on-site management
personnel. At smaller properties, the property manager might em
ploy only a building engineer who maintains the building’s heating,
ventilation, and air-conditioning systems and performs other rou
tine maintenance and repair. Larger properties require a sizable
maintenance staff supervised by a full-time on-site manager, who
works under the direction of the property manager.
Although some on-site managers oversee large office buildings or
shopping centers, most manage apartments. They train, supervise,
and assign duties to the maintenance staff and routinely inspect the
grounds, facilities, and equipment, determine what repairs and
maintenance are needed, and assign workers to do them. Occasion
ally, outside contractors are required, and the on-site manager may
obtain bids for the work and submit them to the property manager.
On-site managers schedule routine servicing of the heating, ventila
tion, and air-conditioning systems and ensure that the work of the
maintenance staff and contract workers is up to standards or con
tract specifications. They keep records of expenditures incurred for
operating the property and submit regular expense reports to the
property manager or owners. They may recruit maintenance staff,
interview job applicants, and make hiring recommendations to the
property manager.
Tenant relations is an important part of the work of on-site man
agers, particularly apartment and condominium managers. They
are responsible for enforcing rules and lease restrictions, such as pet
restrictions or use of parking areas. Aparfinent managers handle te
nants’ requests for service or repairs and try to resolve complaints.
They show vacant apartments to prospective tenants and explain
the occupancy terms. Property managers must understand the pro
visions of legislation such as the Americans With Disabilities Act
and local fair housing laws to be sure they are not being discrimina
tory in the renting or advertising of apartments.
Property and on-site managers employed by condominium and
homeowner associations must be particularly adept at dealing with
people. Instead of tenants, they must deal on a daily basis with
homeowners—members of the community association that employs
the manager. Hired by the volunteer board of directors of the associ
ation, the community association manager administers its daily af
fairs and oversees the maintenance of property and facilities that the
homeowners own and use jointly through the association. Many
community associations are small and cannot afford professional
management, but managers of larger condominiums have many of
the same responsibilities as the managers of large apartment com
plexes. Some homeowner associations encompass thousands of
homes, and, in addition to administering the associations’ financial
records, their managers may be responsible for the operation of
community pools, golf courses, community centers, and the mainte
nance of landscaping, parking areas, and streets.
Some real estate managers are employed by businesses to locate,
acquire, and develop real estate needed for their operations and to
dispose of property no longer suited to their uses. These managers
locate desirable sites for factories, retail stores, hotels and motels,
and other business ventures and arrange to purchase or lease the
property. They select a site based on their assessment of considera
tions such as property values, zoning, population growth, and traffic
volume and patterns. They negotiate contracts for the purchase or
lease of the property, securing the most beneficial terms for their
company. Real estate managers periodically review their company’s
real estate holdings, identifying properties that are no longer com
mercially attractive. They negotiate the sale or termination of the
lease of properties selected for disposal.
Real estate managers who work for land development companies
acquire land and plan the construction of shopping centers, houses
and apartments, office buildings, or industrial parks. They negotiate
with representatives of local government, other businesses, commu
nity and public interest groups, and public utilities to eliminate ob
stacles to the development of the land and to gain support for the
planned project. It sometimes takes years to win approval for a pro
ject, and in the process managers may have to modify the plans for
the project many times. Once they are free to proceed with a project,
managers negotiate short-term loans to finance the construction of
the project, and later negotiate long-term permanent mortgage
loans. They then contract with architectural firms to draw up de
tailed plans, and with construction companies to build the project.
Working Conditions
Most property and real estate managers work in clean, well-lighted
offices, but many spend a major portion of their time away from
their desks. Property managers frequently visit the properties they
oversee, sometimes on a daily basis when contractors are doing ma
jor repair or renovation work. On-site apartment managers may
spend a large portion of their workday away from their office visit
ing the building engineer in the boiler room, checking up on the
janitorial and maintenance staff, or investigating a problem reported
by a tenant. Many real estate managers spend the majority of their
W -i
Property managers must quickly resolve tenants' complaints.
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time away from home, traveling to company real estate holdings or
searching for properties that might be acquired.
Property and real estate managers often must attend meetings in
the evening with property owners, community association boards of
directors, or civic groups. Not surprisingly, many property and real
estate managers put in long work weeks. Many apartment managers
are required to live in the apartments where they work so that they
are available to handle any emergency that occurs while they are off
duty. They usually receive compensatory time off, however, for
working at night or on weekends. Many apartment managers re
ceive time off during the week so that they are available on week
ends to show apartments to prospective tenants.
Employment
Property and real estate managers held about 243,000 jobs in 1992.
Most worked for real estate operators and lessors or for property
management firms. Others worked for real estate development com
panies, banks, government agencies that manage public buildings,
and corporations with extensive holdings of commercial properties.
Many were self-employed developers, apartment owner-managers,
or owners of property management or full-service real estate broker
age firms that manage as well as sell real estate for clients.
Training, Other Qualifications, and Advancement
Most employers prefer to hire college graduates for property and
real estate management positions. Degrees in business administra
tion, finance, real estate, public administration, or related fields are
preferred, but persons with degrees in the liberal arts are often ac
cepted. Good speaking and writing skills and an ability to deal tact
fully with people are essential. Most persons enter property and real
estate management as on-site apartment or community association
managers, or as assistants to property managers. Previous employ
ment as a real estate agent may be an asset to apartment managers
because it provides experience useful in showing apartments and
dealing with people, as well as an understanding that an attractive,
well-maintained property can command higher rental rates and
result in lower turnover among tenants. In the past, many persons
with backgrounds in building maintenance have advanced to
apartment manager positions on the strength of their knowledge of
building mechanical systems, but this is becoming uncommon as
employers are placing greater emphasis on administrative and com
munication abilities for managerial jobs.
On-site managers usually begin at a smaller apartment complex,
condominium, or community association, or as an assistant man
ager at a large property, association, or management company. As
they acquire experience working under the direction of a property
manager, they may advance to positions with greater responsibility
at larger properties. Persons who excel as on-site managers often
transfer to assistant property manager positions where they can ac
quire experience handling a broader range of property management
responsibilities.
Although most persons who enter jobs as assistant property man
agers do so on the strength of on-site management experience, em
ployers are increasingly hiring inexperienced college graduates with
bachelor’s or master’s degrees in business administration, finance,
or real estate for these jobs. Assistants work closely with a property
manager and acquire experience performing a variety of manage
ment tasks, such as preparing the budget, analyzing insurance cov
erage and risk options, marketing the property to prospective te
nants, and collecting overdue rent payments. In time, many
assistants advance to property manager positions.
The responsibilities and compensation of property managers in
crease as they manage larger properties. Most property managers
are responsible for several properties at a time, and as their careers
advance they are gradually entrusted with properties that are larger
or whose management is more complex. Many specialize in the
management of one type of property, such as apartments, office
buildings, condominiums and homeowner associations, or retail
properties. Managers who excel at marketing properties to tenants
may specialize in managing new properties, while those who are
particularly knowledgeable about buildings and their mechanical
systems might specialize in the management of older properties that
41
require renovation or more frequent repairs. Some experienced
property and real estate managers open their own property manage
ment or real estate firms.
Persons most commonly enter real estate manager jobs by trans
ferring from positions as property managers or real estate brokers.
Real estate managers must be good negotiators, adept at persuading
and handling people, and good at analyzing data to assess the fair
market value of property or its development potential. Resourceful
ness and creativity in arranging financing are essential for managers
who specialize in land development. Real estate managers may be
required to hold a real estate broker’s license.
Many property and real estate managers attend short-term for
mal training programs conducted by various professional and trade
associations active in the real estate field. Employers send managers
to these programs to improve their management skills and expand
their knowledge of specialized subjects, such as the operation and
maintenance of building mechanical systems, insurance and risk
management, personnel management, business and real estate law,
communications, and accounting and financial concepts. Managers
also participate in these programs to prepare themselves for posi
tions of greater responsibility in property and real estate manage
ment. Completion of these programs, together with meeting job ex
perience standards and achieving a satisfactory score on a written
examination, leads to certification, or the formal award of a profes
sional designation, by the sponsoring association. In addition to
these qualifications, some associations require their members to ad
here to a specific code of ethics.
Managers of public housing subsidized by the Federal Govern
ment are required to be certified, but many property and real estate
managers who work with all kinds of property choose to earn a pro
fessional designation voluntarily because it represents formal recog
nition of their achievements and status in the occupation. A number
of organizations offer such programs. The Institute of Real Estate
Management awards the designations Accredited Residential Man
ager and Certified Property Manager, while the National Associa
tion of Home Builders awards the designation Registered Apart
ment Manager. The National Apartment Association confers the
designations Certified Apartment Manager and Certified Apart
ment Property Supervisor. The Community Associations Institute
bestows the designation Professional Community Association Man
ager and Association Management Specialist, while the Building
Owners and Managers Institute International awards the designa
tions Real Property Administrator and Facilities Management Ad
ministrator. The International Association of Corporate Real Estate
Executives confers the designations Associate of Corporate Real Es
tate and Master of Corporate Real Estate.
Job Outlook
Employment of property and real estate managers is projected to in
crease faster than the average for all occupations through the year
2005. Despite the rapid growth in demand for these workers, the
vast majority ofjob openings are expected to occur as property man
agers transfer to other occupations or leave the labor force. Oppor
tunities should be best for persons with college degrees in business
administration and related fields.
Growth in the demand for office buildings and retail establish
ments will spur employment of property and real estate managers.
Nearly 9 of every 10 new jobs that will be created over the 1992
2005 period are expected to be in wholesale and retail trade; finance,
insurance, and real estate; and service industries. Because establish
ments in these industries are the primary tenants of commercial
properties, expansion of these industries is expected to require
growth in the Nation’s supply of office and retail space. Although
development in this area is slow now, it is expected to pick up within
several years. Some growth will come from adding on to existing
buildings. Although some of these additions will be handled by the
property manager already on the site, other additions will require
the hiring of additional property managers. More complex responsi
bilities combined with larger facilities may lead to the hiring of more
property managers per building.
In addition, the expected faster than average employment growth
in some retail trade industries should require greater numbers of
42
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Federal Reserve Bank of St. Louis
real estate managers to acquire and develop properties for ex
panding restaurant, food, apparel, and specialized merchandise
chains.
Growth in the Nation’s stock of apartments and houses also
should require more property and real estate managers. Although
the rate of new household formation is expected to slow somewhat
over the 1992-2005 period, the high cost of purchasing a home is ex
pected to force an increasing proportion of individuals to delay leav
ing rental housing. In addition, developments of new homes are in
creasingly being organized with community or homeowner
associations that provide community services and oversee jointly
owned common areas, requiring professional management.
A growing proportion of commercial and multiunit residential
property owners are expected to entrust the management of their
properties to a professional manager. Recent changes to income tax
laws have greatly limited the tax benefits that property owners and
investors can derive from unprofitable apartments and commercial
properties. To help properties become more profitable, more owners
are expected to place their investments in the hands of property and
real estate managers.
Earnings
Median earnings of all property and real estate managers were
$21,800 a year in 1992. The middle 50 percent earned between
$14,600 and $33,600. Ten percent earned less than $10,300 and 10
percent earned more than $47,300 annually.
Earnings of property and real estate managers vary widely by
level of responsibility. Those who are certified in their field tend to
earn a higher salary than those who are not. A survey conducted by
Huntress Real Estate Executive Search Inc. found that the middle
third of the on-site apartment managers surveyed had annual sala
ries averaging $33,000 in 1992. Property managers had considerably
higher earnings, with the middle third of property managers respon
sible for multiple apartment properties averaging $67,200. Of prop
erty managers responsible for regional shopping malls, the middle
third earned $72,700; of those who managed office buildings, the
middle third earned $75,200.
Earnings of corporate real estate managers were generally compa
rable to those of property managers, according to the same survey.
Among those employed by fast-food and restaurant chains, the mid
dle third of the lease negotiators and site selection representatives
averaged $62,300 annually, while the middle third of real estate di
rectors earned $68,900. Among real estate managers employed by
retail apparel chains, the middle third of the lease negotiators and
site selection representatives averaged $64,700 and the middle third
of real estate directors had an average annual salary of $64,500,
Community association managers received compensation compa
rable to on-site and property managers employed by other types of
properties. Many resident apartment managers receive the use of an
apartment as part of their compensation package. Property and real
estate managers often are given the use of a company automobile,
and managers employed in land development often receive a small
percentage of ownership in projects that they develop.
Related Occupations
Property and real estate managers plan, organize, staff, and manage
the real estate operations of businesses. Workers who perform simi
lar functions in other fields include restaurant and food service man
agers, hotel and resort managers and assistants, health services
managers, education administrators, and city managers.
Sources of Additional Information
General information about careers in property and real estate man
agement and programs leading to the award of a professional desig
nation in the field is available from:
RT Apartment Owners and Managers Association of America, 65 Cherry
Plaza, Watertown, CT 06795-0238.
Building Owners and Managers Institute International, 1521 Ritchie
Hwy., Arnold, MD 21012.
O'Community Associations Institute, 1630 Duke St., Alexandria, VA
22314.
13= Institute of Real Estate Management, 430 N. Michigan Ave., Chicago IL
60611.
©- International Association of Corporate Real Estate Executives, 440 Co
lumbia Dr., Suite 100, West Palm Beach, FL 33409.
©= National Apartment Association, 1111 14th St. NW., Suite 900, Wash
ington, DC 20005.
©•National Association of Home Builders, 15th & M Sts. NW., Washing
ton, DC 20005.
Public Relations Specialists
(D.O.T. 165.017,-167)
Nature of the Work
An organization’s reputation, profitability, and even its continued
existence can depend on the degree to which its goals and policies
are supported by its targeted “publics.” Public relations specialists
serve as advocates for businesses, governments, universities, hospi
tals, schools, and other organizations, and strive to build and main
tain positive relationships with the public. As managers recognize
the growing importance of good public relations to the success of
their organizations, they increasingly rely on public relations spe
cialists for advice on strategy and policy.
Public relations specialists handle such functions as media, com
munity, consumer, and governmental relations; political campaigns;
interest-group representation; conflict mediation; or employee and
investor relations. Public relations is not only “telling the organiza
tion’s story,” however. Understanding the attitudes and concerns of
consumers, employees, and various other groups also is a vital part
of the job. To improve communications, public relations specialists
establish and maintain cooperative relationships with representives
of community, consumer, employee, and public interest groups and
those in print and broadcast journalism.
Public relations specialists put together information that keeps
the general public, interest groups, and stockholders aware of an or
ganization’s policies, activities, and accomplishments. Their work
keeps management aware of public attitudes and concerns of the
many groups and organizations with which it must deal.
Public relations specialists prepare press releases and contact peo
ple in the media who might print or broadcast their material. Many
radio or television special reports, newspaper stories, and magazine
articles start at the desks of public relations specialists. Sometimes
the subject is an organization and its policies towards its employees
or its role in the community. Often the subject is a public issue, such
as health, nutrition, energy, or the environment.
Public relations specialists also arrange and conduct programs for
contact between organization representatives and the public. For
example, they set up speaking engagements and often prepare the
speeches for company officials. These specialists represent employ
ers at community projects; make film, slide, or other visual
presentations at meetings and school assemblies; and plan conven
tions. In addition, they are responsible for preparing annual reports
and writing proposals for various projects.
In government, public relations specialists—who may be called
press secretaries, information officers, public affairs specialists, or
communications specialists—keep the public informed about the ac
tivities of government agencies and officials. For example, public af
fairs specialists in the Department of Energy keep the public in
formed about the proposed lease of offshore land for oil exploration.
A press secretary for a member of Congress keeps constituents
aware of their elected representative’s accomplishments.
In large organizations, the director of public relations, who is
often a vice president, may develop overall plans and policies with
other executives. In addition, public relations departments employ
public relations specialists to write, do research, prepare materials,
maintain contacts, and respond to inquiries.
People who handle publicity for an individual or who direct pub
lic relations for a small organization may deal with all aspects of the
job. They contact people, plan and do research, and prepare mate
rial for distribution. They may also handle advertising or sales pro
motion work to support marketing.
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Public relations specialists maintain positive relationships between
their organizations and the public.
Working Conditions
Some public relations specialists work a standard 35- to 40-hour
week, but unpaid overtime is common. In addition, schedules often
have to be rearranged to meet deadlines, deliver speeches, attend
meetings and community activities, and travel out of town. Occa
sionally they may have to be at the job or on call around the clock,
especially if there is an emergency or crisis.
Employment
Public relations specialists held about 98,000 jobs in 1992. About
two-thirds worked in services industries—management and public
relations firms, educational institutions, membership organizations,
hospitals, social service agencies, and advertising agencies, for ex
ample. Others worked for a wide range of employers, including
manufacturing firms, financial institutions, and government agen
cies. Some were self-employed.
Public relations specialists are concentrated in large cities where
press services and other communications facilities are readily availa
ble, and where many businesses and trade associations have their
headquarters. Many public relations consulting firms, for example,
are in New York, Los Angeles, Chicago, and Washington, DC.
There is a trend, however, for public relations jobs to be dispersed
throughout the Nation.
Training, Other Qualifications, and Advancement
Although there are no defined standards for entry into a public rela
tions career, a college education combined with public relations ex
perience, usually gained through an internship, is considered excel
lent preparation for public relations work. The ability to write and
speak well is essential. Many beginners have a college major in pub
lic relations, journalism, advertising, or communications. Some
firms seek college graduates who have worked in electronic or print
journalism. Other employers seek applicants with demonstrated
communications skills and training or experience in a field related to
the firm’s business—science, engineering, sales, or finance, for ex
ample.
In 1992, well over 200 colleges and about 100 graduate schools of
fered degree programs or special curricula in public relations, usu
ally in a journalism or communications department. In addition,
many other colleges offered at least one course in this field. A com
monly used public relations sequence includes the following
courses: Public relations principles and techniques; public relations
management and administration, including organizational develop
ment; writing, emphasizing news releases, proposals, annual re
ports, scripts, speeches, and related items; visual communications,
including desktop publishing and computer graphics; and research,
emphasizing social science research and survey design and imple
mentation. Courses in advertising, journalism, business administra
tion, political science, psychology, sociology, and creative writing
43
also are helpful, as is familiarity with word processing and other
computer applications. Specialties are offered in public relations for
business, government, or nonprofit organizations.
Many colleges help students gain part-time internships in public
relations that provide valuable experience and training. The Armed
Forces also can be an excellent place to gain training and experience.
Membership in local chapters of the Public Relations Student Soci
ety of America or the International Association of Business Com
municators provides an opportunity for students to exchange views
with public relations specialists and to make professional contacts
that may help them find a full-time job in the field. A portfolio of
published articles, television or radio programs, slide presentations,
and other work is an asset in finding a job. Writing for a school pub
lication or television or radio station provides valuable experience
and material for one’s portfolio.
Creativity, initiative, good judgment, and the ability to express
thoughts clearly and simply are essential. Decision making, problem
solving, and research skills are also important.
People who choose public relations as a career need an outgoing
personality, self-confidence, an understanding of human psychol
ogy, and an enthusiasm for motivating people. They should be com
petitive, yet flexible and able to function as part of a team.
Some organizations—particularly those with large public rela
tions staffs—have formal training programs for new employees. In
smaller organizations, new employees work under the guidance of
experienced staff members. Beginners often maintain files of mate
rial about company activities, scan newspapers and magazines for
appropriate articles to clip, and assemble information for speeches
and pamphlets. After gaining experience, they may write news re
leases, speeches, and articles for publication, or design and carry out
public relations programs. Similar to other occupations, public rela
tions specialists in smaller firms generally get all-around experience,
whereas those in larger firms tend to be more specialized.
The Public Relations Society of America accredits public rela
tions specialists who have at least 5 years of experience in the field
and have passed a comprehensive 6- hour examination (5 hours
written, 1 hour oral). The International Association of Business
Communicators also has an accreditation program for professionals
in the communications field, including public relations specialists.
Those who meet all the requirements of the program earn the desig
nation, Accredited Business Communicator. Candidates must have
at least 5 years of experience in a communication field and pass a
written and oral examination. They also must submit a portfolio of
work samples demonstrating involvement in a range of communica
tion projects and a thorough understanding of communication plan
ning. Employers consider professional recognition through accredi
tation a sign of competence in this field, and it may be especially
helpful in a competitive job market.
Promotion to supervisory jobs may come as public relations spe
cialists show they can handle more demanding managerial assign
ments. In public relations firms, a beginner may be hired as a re
search assistant or account assistant and be promoted to account
executive, account supervisor, vice president, and eventually senior
vice president. A similar career path is followed in corporate public
relations, although the titles may differ. Some experienced public re
lations specialists start their own consulting firms. (For more infor
mation on public relations managers, see the Handbook statement
on marketing, advertising, and public relations managers.)
Job Outlook
Keen competition for public relations jobs will likely continue
among recent college graduates with a degree in communications—
journalism, public relations, advertising, or a related field—as the
number of applicants is expected to exceed the number of job open
ings. People without the appropriate educational background or
work experience will face the toughest obstacles in finding a public
relations job.
Employment of public relations specialists is expected to increase
about as fast as the average for all occupations through the year
2005. Recognition of the need for good public relations in an in
creasingly competitive business environment should spur demand
for public relations specialists in organizations of all sizes. However,
corporate restructuring and downsizing, in an effort to cut costs,
44
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Federal Reserve Bank of St. Louis
could limit employment growth. Employment in public relations
firms should grow as firms hire contractors to provide public rela
tions services rather than support full-time staff. The vast majority
ofjob opportunities should result from the need to replace public re
lations specialists who leave the occupation to take another job, re
tire, or for other reasons.
Earnings
Median annual earnings for salaried public relations specialists who
usually worked full time were about $32,000 in 1992. The middle 50
percent earned between $24,000 and $51,000 annually; the lowest 10
percent earned less than $17,000; and the top 10 percent earned
more than $62,000.
A College Placement Council salary survey indicated new college
graduates entering the public relations field were offered average
starting salaries of about $21,000 in 1993.
According to a 1992 salary survey by the Public Relations Jour
nal, the median entry level salary of public relations account execu
tives was almost $21,000 a year. Median annual salaries of all public
relations account executives ranged from $28,000 in public relations
firms to about $36,000 in corporations. Manufacturers, utilities, and
scientific and technical firms were among the highest paying em
ployers; museums and miscellaneous nonprofit organizations, relig
ious and charitable organizations, and advertising agencies were
among the lowest paying employers. The survey indicated an annual
median salary for all respondents, including managers, of about
$44,000. Some highly successful public relations workers earn con
siderably more.
In the Federal Government, persons with a bachelor’s degree gen
erally started at $22,700 a year in 1993; those with a master’s degree
generally started at $27,800 a year. Public affairs specialists in the
Federal Government in nonsupervisory, supervisory, and manage
rial positions averaged about $45,400 a year in 1993.
Related Occupations
Public relations specialists create favorable attitudes among various
organizations, special interest groups, and the public through effec
tive communication. Other workers with similar jobs include fun
draisers, lobbyists, promotion managers, advertising managers, and
police officers involved in community relations.
Sources of Additional Information
A comprehensive directory of schools offering degree programs or a
sequence of study in public relations, and a brochure on careers in
public relations, are available for $10 and $2, respectively, from:
W Public Relations Society of America, Inc., 33 Irving Place, New York,
NY 10003-2376.
Current information on the public relations field, salaries, and
other items is available from:
PR Reporter, P.O. Box 600, Exeter, NH 03833.
Career information on public relations in hospitals/health care is
available from:
©* The American Society for Health Care Marketing and Public Relations,
American Hospital Association, 840 North Lake Shore Dr., Chicago, IL
60611.
Purchasers and Buyers
(D.O.T. 162.117-010, and -018, .157-010, -018, -022, -030, -034, and -038,
.167-010,-014,-018,-022, and-030; 163.117-010; 169.167-054; 184.117-078and 185.167-034)
Nature of the Work
Purchasers and buyers seek to obtain the highest quality merchan
dise at the lowest possible price for their employers. The work gen
erally involves determining which commodities or services are best,
determining the suppliers of the product or service, negotiating the
lowest price, and awarding contracts that ensure that the correct
amount of the product or service is received at the appropriate time.
In order to accomplish these tasks successfully, purchasers and buy
ers study sales records and inventory levels of current stock, identify
foreign and domestic suppliers, and keep abreast of changes affect
ing both the supply of and demand for products and materials for
which they are responsible. Purchasers and buyers evaluate and se
lect suppliers based upon price, quality, availability, reliability, and
selection. They review listings in catalogs, industry periodicals, di
rectories, and trade journals, research the reputation and history of
the suppliers, and advertise anticipated purchase actions in order to
solicit bids from suppliers. Meetings, trade shows, conferences, and
visits to suppliers’ plants and distribution centers also provide op
portunities for purchasers and buyers to examine products, assess a
supplier’s production and distribution capabilities, and discuss
other technical and business considerations that bear on the
purchase. Although this describes the general activities of purchas
ers and buyers, specific job duties and responsibilities depend upon
the type of commodities or services to be purchased and on the em
ployer.
Purchasing professionals who are most often employed by gov
ernment agencies or manufacturing firms are usually called
purchasing directors, managers, agents, industrial buyers, or con
tract specialists. These workers acquire product materials, interme
diate goods, machines, supplies, and other materials used in the pro
duction of a final product. Purchasing agents and managers obtain
items ranging from raw materials, fabricated parts, machinery, and
office supplies to construction services and airline tickets. The flow
of work—or even the entire production process—can be slowed or
halted if the right materials, supplies, or equipment are not on hand
when needed. In order to be effective, purchasers and buyers must
have a working technical knowledge of the goods or services to be
purchased.
In large industrial organizations, a distinction is often drawn be
tween the work of a buyer or purchasing agent and that of a
purchasing manager. Purchasing agents and buyers typically focus
on routine purchasing tasks, often specializing in a commodity or
group of related commodities—for example, steel, lumber, cotton,
fabricated metal products, or petroleum products. This usually re
quires the purchaser to track such things as market conditions, price
trends, or futures markets. Purchasing managers usually handle the
more complex or critical purchases and may supervise a group of
purchasing agents handling other goods and services. Whether a
person is titled purchasing agent, buyer, or manager depends more
on specific industry and employer practices than on specific job du
ties.
Changing business practices have altered the traditional roles of
purchasing professionals. Manufacturing companies have begun to
recognize the importance of purchasing professionals and increas
ingly involve them at most stages of product development. Their
ability to forecast which materials will be most available, inexpen
sive, and acceptable for production standards can affect the entire
product design. For example, potential problems with the supply of
materials may be avoided by consulting the purchasing department
in the early stages of product design.
In addition, there is a trend toward limited-source, long-term
contracting. These contracts increase the importance of supplier se
lection because agreements are larger in scope and longer in dura
tion. A major responsibility of most purchasers is to work out
problems that may occur with a supplier because the success of the
relationship directly affects the buying firm’s performance. Increas
ingly, purchasing professionals work closely with other employees
in their own organization. For example, they may discuss the design
of custom-made products with company design engineers, quality
problems in purchased goods with quality assurance engineers and
production supervisors, or shipment problems with managers in the
receiving department.
Some purchasing managers who work in the industrial sector and
specialize in negotiating and supervising supply contracts are called
contract specialists or supply managers.
Contract specialists in the Federal Government typically use
sealed bidding, but sometimes use negotiated agreements for com
plex items. Government purchasing agents and managers must fol
low strict laws, statutes, and regulations in their work. These legal
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requirements are occasionally changed, so agents and contract spe
cialists must stay informed about the latest regulations and their ap
plications.
Other professionals, who buy finished goods for resale, are em
ployed by wholesale and retail establishments where they are com
monly referred to as “buyers” or “merchandise managers.” Whole
sale and retail buyers are an integral part of a complex system of
production, distribution, and merchandising that caters to the vast
array of consumer needs and desires. Wholesale buyers purchase
goods directly from manufacturers or from other wholesale firms
for resale to retail firms or to commercial establishments and other
organizations. Buyers in retail firms purchase goods from wholesale
firms or directly from manufacturers for resale to the public. Buyers
largely determine which products their establishment will sell.
Therefore, it is essential they have the ability to accurately predict
what will appeal to consumers. Buyers must constantly stay in
formed of the latest fashions and trends. Failure to do so could jeop
ardize profits and the reputation of their company. Buyers also fol
low ads in newspapers and other media to check competitors’ sales
activities and watch general economic conditions to anticipate con
sumer buying patterns. Buyers working for large and medium sized
firms usually specialize in acquiring one or two lines of merchan
dise. However, buyers working for small stores may purchase their
complete inventory.
The use of private-label merchandise and the consolidation of
buying departments have increased the responsibilities of retai buy
ers. Private-label merchandise, produced for a particular retailer, re
quires buyers to work closely with vendors to develop and obtain the
desired product. The downsizing and consolidation of buying de
partments is also increasing the demands placed on buyers because,
although the amount of work remains unchanged, there are fewer
people to accomplish it. The result is an increase in the workloads
and levels of responsibility.
Many merchandise managers assist in the planning and imple
mentation of sales promotion programs. Working with merchandis
ing executives, they determine the nature of the sale and purchase
accordingly. They also work with advertising personnel to create
the ad campaign. For example, they may determine the media in
which the advertisement will be placed—newspapers, direct mail,
television, or some combination of these. In addition, merchandis
ing managers often visit the selling floor to ensure that the goods are
properly displayed. Often, assistant buyers are responsible for plac
ing orders and checking shipments.
Although purchasers and buyers of farm products may work in
manufacturing or wholesale or retail trade, many are self-employed
brokers who store grain and sell it for a commission. These individu
als may also speculate on grain prices.
Computers are having a major impact on the jobs of purchasers
and buyers. In manufacturing and service industries, computers
handle most of the more routine tasks—enabling purchasing profes
sionals to concentrate mainly on the analytical aspects of the job.
Computers are used to obtain up-to-date product and price listings,
to track inventory levels, process routine orders, and help determine
when to make purchases. Computers also maintain bidders’ lists, re
cord the history of supplier performance, and issue purchase orders.
Computerized systems have dramatically simplified many of the
routine buying functions and improved efficiency in determining
which products are selling. For example, cash registers connected to
computers, known as point-of-sale terminals, allow organizations to
maintain centralized, up-to-date sales and inventory records. This
information can then be used to produce weekly sales reports that
reflect the types of products in demand. As well as monitoring their
company’s sales, buyers use computers to gain instant access to the
specifications for thousands of commodities, inventory records, and
their customers’ purchase records. Some firms are linked with man
ufacturers or wholesalers by electronic purchasing systems. These
systems speed selection and ordering and provide information on
availability and shipment. All this allows buyers to better concen
trate on the selection of goods and suppliers.
Working Conditions
Most purchasers and buyers work in comfortable, well-lighted of
fices at stores, corporate headquarters, or production facilities. They
frequently work more than a 40-hour week because of special sales,
45
C3,
Purchasers and buyers must stay informed about new products and
services.
conferences, or production deadlines. Evening and weekend work is
common. For those working in retail trade, this is especially true
prior to holiday seasons. Consequently, many retail firms discour
age the use of vacation time from Thanksgiving until early January.
Buyers and merchandise managers often work under great pres
sure since wholesale and retail stores are so competitive; buyers need
physical stamina to keep up with the fast-paced nature of their
work.
Traveling is usually required and most purchasers and buyers
spend at least several days a month on the road. High fashion buyers
and purchasers for worldwide manufacturing companies often
travel outside the United States.
Employment
Purchasers and buyers held about 624,000 jobs in 1992. Purchasing
agents and purchasing managers each accounted for slightly more
than one-third of the total while buyers accounted for the remain
der. Almost all worked full time.
About one-half of all buyers and purchasers worked in wholesale
and retail trade establishments such as grocery or department
stores. One-fourth worked in manufacturing.
Training, Other Qualifications, and Advancement.
Qualified persons usually begin as trainees, purchasing clerks, expe
diters, junior buyers, or assistant buyers. Retail and wholesale firms
prefer to hire applicants who are familiar with the merchandise they
sell as well as with wholesaling and retailing practices. Some retail
firms promote qualified employees to assistant buyer positions;
others recruit and train college graduates as assistant buyers. Most
employers use a combination of methods.
Educational requirements tend to vary with the size of the organi
zation. Large stores and distributors accept applicants who have
completed associate or bachelor’s degree programs from any field of
study, but prefer individuals with a business background. Manufac
turing firms tend to put a greater emphasis on formal training and
many desire applicants with a bachelor’s or master’s degree in busi
ness, economics, or technical training such as engineering or one of
the applied sciences. Regardless of academic preparation, new em
ployees must learn the specifics of the employers’ business.
Although training periods vary in length, most last several years.
In wholesale and retail establishments, most trainees begin by sell
ing merchandise, supervising sales workers, checking invoices on
material received, and keeping track of stock on hand, although
widespread use of computers has simplified some of these tasks. As
they progress, retail trainees are given more buying-related respon
sibilities. In manufacturing, new purchasing employees are often en
rolled in company training programs and spend a considerable
amount of time learning about company operations and purchasing
practices. They work with experienced purchasers to learn about
46
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commodities, prices, suppliers, and markets. In addition, they may
be assigned to production planning to learn about the material re
quirements system and the inventory system.
Persons who wish to become wholesale or retail buyers should be
good at planning and decision making and have an interest in mer
chandising. Anticipating consumer preferences and ensuring that
goods are in stock when they are needed require resourcefulness,
good judgment, and self-confidence. Buyers must be able to make
decisions quickly and take risks. Marketing skills and the ability to
identify products that will sell are also very important. Employers
often look for leadership ability and communication skills because
buyers spend a large portion of their time supervising assistant buy
ers and dealing with manufacturers’ representatives and store exec
utives.
Purchasing professionals must be able to analyze the technical
data in suppliers’ proposals, make buying decisions, and spend large
amounts of money responsibly. The job requires the ability to work
independently as well as a part of a team. In addition, these workers
must be able to get along well with people to balance the needs of de
partments within the organization with budgetary constraints. They
may consult with lawyers, engineers, and scientists when involved in
complex procurements.
Experienced buyers may advance by moving to a department that
manages a larger volume or by becoming a merchandise manager.
Others go to work in sales for a manufacturer.
An experienced purchasing agent or buyer may become an assis
tant purchasing manager in charge of a group of purchasing profes
sionals before advancing to purchasing manager, supply manager,
or director of materials management. At the top levels, duties may
overlap into other management functions such as production, plan
ning, and marketing.
In high technology manufacturing firms, continuing education is
essential for advancement. Many purchasers participate in seminars
offered by professional societies and take college courses in purchas
ing. Although no national standard exists, professional certification
is becoming increasingly important.
In private industry, the recognized marks of experience and pro
fessional competence are the designations Certified Purchasing
Manager (CPM), conferred by the National Association of Purchas
ing Management, Inc. and Certified Purchasing Professional (CPP)
and Certified Purchasing Executive (CPE), conferred by the Ameri
can Purchasing Society, Inc. upon candidates who pass examina
tions and meet specified educational, experience, and related re
quirements. In Federal, State, and local government, the indications
of professional competence are the designations Certified Profes
sional Public Buyer (CPPB) and Certified Public Purchasing Of
ficer (CPPO), conferred by the National Institute of Governmental
Purchasing, Inc. The CPPB is earned by passing a two-part written
examination and meeting certain experience requirements. To earn
the CPPO, a candidate must have additional purchasing and super
visory or management experience, pass a three-part written exam,
and undergo an oral interview assessment.
As more materials purchasing is conducted on a long-term basis,
both private and public purchasing professionals are specializing in
the contractual aspects of purchasing. The National Contract Man
agement Association confers the designations Certified Associate
Contract Manager (CACM) or Certified Professional Contract
Manager (CPCM). Candidates for these certifications must have re
lated work experience, complete academic course-work, and pass
written exams. These designations primarily apply to contract man
agers in the Federal Government and its suppliers.
Job Outlook
Employment of purchasers and buyers is expected to increase more
slowly than the average for all occupations through the year 2005.
Demand for these workers will not keep pace with the rising level of
economic activity; mergers and the resulting consolidations of buy
ing departments along with other changes such as limited source,
long-term contracting will reduce the need for purchasers and buy
ers. The increased use of point-of-sale inventory control, artificial
intelligence systems, electronic data interchange, and other auto
mated systems will restrict demand further. Consequently, most job
openings will result from the need to replace workers who transfer
to other occupations or leave the labor force.
Persons who have a bachelor’s degree in business should have the
best chance of landing a buyer job. A master’s degree or bachelor’s
degree in a technical field will be an advantage for those interested
in working for a manufacturing or industrial company. However,
graduates of 2-year programs in purchasing/buying should con
tinue to find good opportunities, especially in small firms.
Earnings
Median annual earnings of purchasers and buyers were $33,067 in
1992. The middle 50 percent earned between $23,092 and $44,684.
The lowest 10 percent averaged less than $13,959 while the top 10
percent earned more than $56,581. Merchandise managers and
purchasing managers generally earned higher salaries than buyers
or agents. As a general rule, those with the most education in their
field have the highest incomes.
Purchasing agents in the Federal Government averaged $24,400
in 1993 and contract specialists averaged $43,800.
Purchasers and buyers receive the same benefits package as their
coworkers, frequently including vacations, sick leave, life and health
insurance, and pension plans. In addition to standard benefits, retail
buyers often earn cash bonuses based on their performance and may
receive discounts on merchandise bought from the employer.
Related Occupations
Workers in other occupations who need a knowledge of marketing
and the ability to assess demand are retail sales workers, sales man
agers, comparison shoppers, manufacturers’ and wholesale sales
representatives, insurance sales agents, services sales representa
tives, procurement services managers, and traffic managers.
Sources of Additional Information
General information about a career in retailing is available from:
National Retail Federation, 100 West 31st St., New York, NY
10001.
Further information about careers in purchasing and certification
is available from:
tw American Purchasing Society, Inc., 11910 Oak Trail Way, Port Richey,
FL 34668.
National Association of Purchasing Management, Inc., P.O. Box 22160,
Tempe, AZ 85285.
O’National Institute of Governmental Purchasing, Inc., 11800 Sunrise Val
ley Dr., Suite 1050, Reston, VA 22091.
O* National Contract Management Association, 1912 Woodford Rd., Vi
enna, VA 22182.
t>> ■ Federal Acquisition Institute (VF), General Services Administration,
18th and F Sts. NW., Washington, DC 20405.
Restaurant and Food Service Managers
(D.O.T. 185.137; 187.161-010 and .167-026, -106, -126, -206, and -210;
319.137-014 and-018)
Nature of the Work
Food is consumed outside the home in a variety of settings. Eating
places range from restaurants that serve fast food or that emphasize
elegant dining, to institutional dining in school and employee cafete
rias, hospitals, and nursing facilities. The cuisine offered, its price,
and the setting in which it is consumed vary greatly, but the manag
ers of these diverse dining facilities have many responsibilities in
common. Efficient and profitable operation of restaurants and insti
tutional food service facilities requires that managers and assistant
managers select and appropriately price interesting menu items, effi
ciently use food and other supplies, achieve consistent quality in
food preparation and service, recruit and train adequate numbers of
workers and supervise their work, and attend to the various admin
istrative aspects of the business.
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In most restaurants and institutional food service facilities, the
manager is assisted by one or more assistant managers, depending
on the size and business hours of the establishment. In large estab
lishments, as well as in many others that offer fine dining, the man
agement team consists of a general manager, one or more assistant
managers, and an executive chef. The executive chef is responsible
for the operation of the kitchen, while the assistant managers over
see service in the dining room and other areas of the operation. In
some smaller restaurants, the executive chef may also be the general
manager, and sometimes an owner. In fast-food restaurants and
other food service facilities that operate long hours, 7 days a week,
the manager is aided by several assistant managers, each of whom
supervises a shift of workers. (For additional information, see the
Handbook statements on general managers and top executives and
chefs, cooks, and other kitchen workers.)
Many restaurants rarely change their menu, but other eating es
tablishments change it frequently. Institutional food service facili
ties and some restaurants offer a new menu every day. Managers or
executive chefs select menu items, taking into account the likely
number of customers, the past popularity of various dishes, and con
siderations such as food left over from prior meals that should not
be wasted, the need for variety on the menu, and the availability of
foods due to seasonal and other factors. They analyze the recipes of
the dishes to determine food, labor, and overhead costs and assign
prices to the menu items. Menus must be developed far enough in
advance that needed supplies may be received in time.
Ordering supplies and dealing with suppliers are important as
pects of the work of restaurant and food service managers. On a
daily basis, managers estimate food consumption, place orders with
suppliers, and schedule the delivery of fresh food and beverages.
They receive and check the content of deliveries, evaluating the
quality of meats, poultry, fish, fruits, vegetables, and baked goods.
Managers meet or talk with sales representatives of restaurant sup
pliers to place orders to replenish stocks of tableware, linens, paper,
cleaning supplies, cooking utensils, and furniture and fixtures. They
also arrange for equipment maintenance and repairs, and for a vari
ety of services such as waste removal and pest control.
Managers interview, hire, and, when necessary, discharge work
ers. They familiarize newly hired workers with the establishment’s
policies and practices and oversee their training. Managers schedule
the work hours of employees, insuring that there are enough work
ers present during busy periods, but not too many during slow peri
ods.
Restaurant and food service managers supervise the kitchen and
the dining room. They oversee food preparation and cooking,
checking the quality of the food and the sizes of portions to insure
that dishes are prepared and garnished correctly and in a timely
manner. They also investigate and resolve customers’ complaints
about food quality or service. During busy periods, managers may
roll up their sleeves and help with the cooking, clearing of tables, or
other tasks. They direct the cleaning of the kitchen and dining areas
and the washing of tableware, kitchen utensils, and equipment to
maintain company and government sanitation standards. They
monitor workers and observe patrons on a continual basis to insure
compliance with health and safety standards and local liquor regu
lations.
Managers have a variety of administrative responsibilities. In
larger establishments, much of this work is delegated to a book
keeper, but in others, managers must keep accurate records of the
hours and wages of employees, prepare the payroll, and do
paperwork to comply with licensing laws and reporting require
ments of tax, wage and hour, unemployment compensation, and So
cial Security laws. They also must maintain records of the costs of
supplies and equipment purchased and insure that accounts with
suppliers are paid on a regular basis. In addition, managers record
the number, type, and cost of items sold to weed out dishes that are
unpopular or less profitable. Many managers are able to ease the
burden of recordkeeping and paperwork through the use of com
puters.
Managers are among the first to arrive and the last to leave at
night. At the conclusion of each day, or sometimes each shift, man
agers must tally the cash received and charge receipts and balance
them against the record of sales. They are responsible for depositing
the day’s income at the bank, or securing it in a safe place. Managers
47
are also responsible for locking up, checking that ovens, grills, and
lights are off, and switching on alarm systems.
Working Conditions
Since evenings and weekends are popular dining periods, night and
weekend work is common. However, many managers of institu
tional food service facilities work more conventional hours because
factory and office cafeterias are often open only on weekdays for
breakfast and lunch. Many restaurant and food service managers
work 50 hours or more per week.
Managers often experience the pressure of simultaneously coordi
nating a wide range of activities. When problems occur, it is the re
sponsibility of the manager to resolve them with minimal disruption
to customers. The job can be hectic during peak dining hours, and
dealing with irate customers or uncooperative employees can be
particularly stressful.
Employment
Restaurant and food service managers held about 496,000 jobs in
1992. Most worked in restaurants or for contract institutional food
service companies, but small numbers also were employed by educa
tional institutions, hospitals, nursing and personal care facilities,
and civic, social, and fraternal organizations. About two-fifths were
self-employed. Jobs are located throughout the country, but are
most plentiful in large cities and tourist areas.
Training, Other Qualifications, and Advancement
Many restaurant and food service manager positions are filled by
promoting experienced food and beverage preparation and service
workers. Waiters, waitresses, chefs, and fast-food workers who have
demonstrated their potential for handling increased responsibility
sometimes advance to assistant manager or management trainee
jobs when openings occur. Executive chefs need extensive experi
ence working as a chef, and general managers need experience work
ing as assistant manager. However, most food service management
companies and national or regional restaurant chains also recruit
management trainees from among the graduates of 2-year and 4year college programs. Food service and restaurant chains prefer to
hire persons with degrees in restaurant and institutional food service
management, but they often hire graduates with degrees in other
fields who have demonstrated interest and aptitude.
A bachelor’s degree in restaurant and food service management
provides a particularly strong preparation for a career in this occu
pation. In 1992, more than 160 colleges and universities offered 4year programs in restaurant and hotel management or institutional
food service management. For persons who do not want to pursue a
4-year degree, a good alternative is provided by the more than 800
community and junior colleges, technical institutes, and other insti
tutions that offer programs in these fields leading to an associate de
gree or other formal award below the bachelor’s degree. Both 2-year
and 4-year programs provide instruction in subjects such as ac
counting, business law and management, food planning and prepa
ration, and nutrition. Some programs combine classroom and labo
ratory study with internships that provide on-the-job experience. In
addition, many educational institutions offer culinary programs
that provide food preparation training which can lead to a career as
a cook or chef and provide a foundation for advancement to an exec
utive chef position.
Most employers emphasize personal qualities. Restaurant and
food service management can be demanding, so good health and
stamina are important. Self-discipline, initiative, and leadership
ability are essential. Managers must be able to solve problems and
concentrate on details. They need good communication skills to
deal with customers and suppliers, as well as to motivate and direct
their subordinates. A neat and clean appearance is also required
since managers are often in close personal contact with the public.
Most restaurant chains and food service management companies
have rigorous training programs for persons hired for management
jobs. Through a combination of classroom and on-the-job training,
trainees receive instruction and gain work experience in all aspects
of the operations of a restaurant or institutional food service facil
ity—food preparation, nutrition, sanitation, security, company poli
cies and procedures, personnel management, recordkeeping, and
preparation of reports. Usually after 6 months or a year, trainees re
ceive their first permanent assignment as an assistant manager.
A measure of professional achievement for restaurant and food
service managers is to earn the designation of certified Foodservice
Management Professional (FMP). Although not a requirement for
employment or advancement in the occupation, voluntary certifica
tion provides recognition of professional competence, particularly
for managers who acquired their skills largely on the job. The Edu
cational Foundation of the National Restaurant Association awards
the FMP designation to managers who achieve a qualifying score on
a written examination, complete a series of courses that cover a
range of food service management topics, and who meet standards
of work experience in the field.
Willingness to relocate often is essential for advancement to posi
tions with greater responsibility. Managers advance to larger estab
lishments, or regional management positions with restaurant
chains. Some managers eventually open their own eating and drink
ing establishments. Others transfer to hotel management positions,
since management experience in their restaurant or institutional
food service is a good background for food and beverage manager
jobs at hotels and resorts.
Job Outlook
S .4 )
_______
Ordering supplies and dealing with suppliers are important aspects of
restaurant and food service managers.
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Federal Reserve Bank of St. Louis
Employment of restaurant and food service managers is expected to
increase much faster than the average for all occupations through
the year 2005. In addition to growth in demand for these managers,
the need to replace managers who transfer to other occupations or
stop working will create many job openings. Job opportunities are
expected to be best for persons with bachelor’s or associate degrees
in restaurant and institutional food service management.
Employment growth is expected to vary by industry. Eating and
drinking places will provide the most new jobs as the number of eat
ing and drinking establishments increases and other industries con
tinue to contract out their food services. Population growth, rising
personal incomes, and increased leisure time will continue to pro
duce growth in the number of meals consumed outside the home. To
meet the demand for prepared food, more restaurants will be built,
and more managers will be employed to supervise them. In addition,
the number of manager jobs will increase in eating and drinking
places as schools, hospitals, and other businesses contract out more
of their food services to institutional food service companies located
in the eating and drinking industry.
Employment of wage and salary managers in eating and drinking
places is expected to increase more rapidly than self-employed man
agers. New restaurants are increasingly affiliated with national
chains rather than being independently owned and operated. As this
trend continues, fewer owners will manage restaurants themselves,
and more restaurant managers will be employed to run the estab
lishments.
Employment in eating and drinking establishments is not very
sensitive to changes in economic conditions, so restaurant and food
service managers are rarely laid off during hard times. However,
competition among restaurants is always intense, and many restau
rants do not survive.
Food service manager jobs are expected to increase in other in
dustries, but growth will be slowed as contracting out becomes more
common. Growth in the population of elderly people is expected to
result in growth of food service manager jobs in nursing homes, resi
dential care facilities, and other health care institutions. Likewise,
growth in the population of young people enrolled in educational in
stitutions should result in growth of food service manager jobs in
school and college cafeterias.
Earnings
Median earnings for restaurant and food service managers were
$418 a week in 1992. The middle 50 percent earned between about
$300 and $600 a week. The lowest paid 10 percent earned $225 a
week or less, while the highest paid 10 percent earned over $815 a
week.
Earnings of restaurant and food service managers vary greatly ac
cording to their responsibilities and the type and size of establish
ment. Based on a survey conducted for the National Restaurant As
sociation, the median base salary of managers in restaurants was
estimated to be about $27,900 a year in early 1993, but managers of
the largest restaurants and institutional food service facilities often
had annual salaries in excess of $45,000. Managers of fast-food res
taurants had an estimated median base salary of $24,900 a year;
managers of full-menu restaurants with table service, almost
$30,400; and managers of commercial and institutional cafeterias,
nearly $29,300 a year in early 1993. Besides a salary, most managers
received an annual bonus or incentive payment based on their per
formance. In 1993, most of these payments ranged between $2,000
and $8,000 a year.
Executive chefs had an estimated median base salary of about
$33,600 a year in early 1993, but those employed in the largest res
taurants and institutional food service facilities often had base sala
ries over $49,000. Annual bonus or incentive payments of most ex
ecutive chefs ranged between $2,000 and $4,000 a year.
The estimated median base salary of assistant managers was over
$23,400 a year in early 1993, but ranged from less than $19,800 in
fast-food restaurants to over $31,700 in some of the largest restau
rants and food service facilities. Annual bonus or incentive pay
ments of most assistant managers ranged between $1,000 and
$4,000 a year.
Manager trainees had an estimated median base salary of about
$20,200 a year in early 1993, but had salaries of nearly $27,900 in
some of the largest restaurants and food service facilities. Annual
bonus or incentive payments of most trainees ranged between
$1,000 and $3,000 a year.
Most salaried restaurant and food service managers received free
meals, sick leave, health and life insurance, and 1 to 3 weeks of paid
vacation a year, depending on length of service.
Related Occupations
Restaurant and food service managers direct the activities of busi
ness establishments that provide a service to customers. Other man
agers in service-oriented businesses include hotel managers and as
sistants, health services administrators, retail store managers, and
bank managers.
Sources of Additional Information
Information about job opportunities may be obtained from local
employers and local offices of the State employment service.
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Federal Reserve Bank of St. Louis
Career information about restaurant and food service managers,
directories of 2- and 4-year college programs in restaurant and food
service management, and certification as a Foodservice Manage
ment Professional are available from:
X3* The
Educational Foundation of the National Restaurant Association,
Suite 1400, 250 South Wacker Dr., Chicago, IL 60606.
General information on hospitality careers may be obtained from:
(S’ Council on Hotel, Restaurant, and Institutional Education, 1200 17th St.
NW, Washington, DC 20036-3097.
Retail Managers
(D.O.T. 163.167-018; 184.167-114; 185.117, .137, .157-010, .167-014, -030,
-034, -038, -046, -082, and -158; 189.117-022, and -046, .167-014 and -018;
299.137-010 and-026)
Nature of the Work
Retail stores sell a wide range of merchandise and provide services
directly to the customer. Retail establishments are found every
where and include shops that sell a wide variety of goods, such as
large supermarkets and department and general merchandise stores.
Also included are stores that sell specific lines of merchandise, in
cluding meat and fish markets, bakeries, and clothing, shoe, hard
ware, electronic, furniture and homefurnishings, and drug and li
quor stores. Retail stores also provide services directly to the
customer, and include restaurants and bars, automotive and boat
dealers, and vehicle service stations. Managers who work in these
establishments, generally called retail managers, are responsible for
the success of retail stores. They insure that retail businesses func
tion smoothly and efficiently, and provide quality goods and ser
vices to the customer. (Managers in eating and drinking places, the
largest retail trade industry, are discussed in the Handbook state
ment on restaurant and food service managers.)
Retail managers have many responsibilities, depending on the
size and type of establishment. Managers coordinate and direct all
aspects of retail trade, including ordering, inspection, pricing, and
inventorying of goods; monitoring sales activity; developing mer
chandising plans; maintaining good customer relations; monitoring
profits and losses; and coordinating displays, advertisements, and
sales announcements.
Retail managers supervise, among others, chefs, cooks, and other
kitchen workers, food and beverage service workers, retail sales
workers, cashiers, customer service workers, stock and inventory
clerks, and grocery clerks. (Some of these occupations are discussed
elsewhere in the Handbook.) Retail managers also are responsible
for interviewing, hiring, and training employees, as well as prepar
ing work schedules and assigning workers to their specific duties.
Because the retail trade industry provides goods and services di
rectly to customers, the retail manager is ultimately responsible for
complete customer satisfaction. Answering customers’ complaints
and inquiries, and ensuring that customers receive prompt service
and quality goods, is the primary duty of retail managers.
As the size of the retail store and the types of goods and services
increase, retail managers increasingly specialize in one department
or one aspect of merchandising. Larger organizations tend to have
many layers of management. Similar to other industries, supervi
sory level retail managers usually report to their mid-level counter
parts who, in turn, report to top-level managers. Small stores and
stores that carry specialized merchandise typically have fewer levels
of management.
Supervisory level retail managers, often known as department
managers, provide the day-to-day management of individual depart
ments such as shoe, cosmetic, or housewares in large department
stores, produce and meat in grocery stores, and service and sales in
automotive dealerships. Department managers commonly are
found in large retail stores. These managers establish and implement
policies, goals, objectives, and procedures for their specific depart
ment; coordinate activites with other department heads; and strive
49
for a smooth operation within their specific department. They su
pervise employees who price and ticket goods and place them on dis
play, clean and organize shelves, displays, and inventory in stock
rooms, and inspect merchandise to ensure that none is outdated.
Department managers also may greet and assist customers to im
prove customer services and promote sales and good public rela
tions. Department managers also review inventory and sales
records, develop merchandising techniques, and coordinate sales
promotions.
Mid-level retail managers, often called store managers, have
broader responsibilities than supervisory level managers. Mid-level
managers set sales goals, create budgets, develop procedures to di
rect and improve customer services, define department managers’
responsibilities, and delegate authority within their store. Store
managers coordinate different departments so that sales promotions
and procedures are consistent throughout the store. They also may
open and close the store, and may even make bank deposits. Some
coordinate other activities within the store, such as safety and secur
ity, maintenance and cleaning, and meetings, seminars, and pro
grams for employees. Store managers usually are responsible for im
plementation and compliance with corporate programs and rules
within the store. They plan merchandise demonstrations and coor
dinate marketing events to promote products. They may implement
employee incentive programs, including bonuses and awards, that
increase motivation and morale and inspire good customer service.
Store managers may review purchasing and sales records and meet
with department heads to determine when to restock inventory or
announce price-slashing sales. Store managers meet frequently with
top management and other store employees to keep the lines of com
munication open.
Senior level retail managers, commonly known as district, area,
or regional managers in large chains and franchises, are covered in
the Handbook statement on general managers and top executives.
District managers coordinate sales and distribution operations for a
number of stores and franchises in a specific area or district of the
country, and choose the wholesalers that can supply the highest
quality goods to the stores. They define store managers’ responsibili
ties and regularly meet with them to make sure that stores attain
sales and profit goals, that merchandising and pricing techniques
are up to date and comply with company procedures, and that the
store and specific departments are clean and follow company guide
lines. In order to evaluate the productivity of each individual store,
district managers make on-site visits, and often report back to the
top executive of the company.
Working Conditions
Most retail managers have offices within the store itself, while senior
level managers may have offices at corporate headquarters. Though
much of their time is spent in the office completing merchandise or
ders or arranging work schedules, for example, a large portion of a
retail manager’s time is spent on the sales floor of the store.
Work hours vary greatly among retail establishments. The work
schedule of retail managers usually depends on consumers’ needs.
Most retail managers work around 40 hours a week, but longer
hours are common, especially during holidays, busy shopping hours
and seasons, sales, and store inventory. Retail managers are ex
pected to work evenings and weekends, but usually are compensated
by getting a weekday off. Hours can change weekly, and managers
sometimes may have to report to work on short notice, especially
when many employees are absent. Independent owners can set their
own schedules, but hours must be convenient to their customers.
Mid- and senior level managers’ jobs often require substantial
travel. District managers travel frequently between national head
quarters and regional and local store branches. Store managers
travel to vendors’ offices and trade shows to order goods. Meetings
and conferences sponsored by industries, vendors, and associations
occur regularly, and provide opportunities to meet with peers and
keep abreast of trends in consumer preferences.
Employment
Managers who work in retail trade held about 1,070,000 wage and
salary jobs in 1992. About 175,000—primarily owners of small re
tail establishments—were self-employed. Managers are found in
50
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&
Customer service and satisfaction are important duties of retail
managers.
every retail trade industry—eating and drinking places, grocery
stores, department stores, clothing and shoe stores, automotive
dealers, and furniture stores are among the largest industries. The
accompanying table shows the distribution of wage and salary em
ployment by industry.
Table 1. Distribution of managers, selected retail establishments, 1992
Total (percent).................................................................................
100.0
Eating and drinking places.................................................................
General merchandise stores................................................................
Grocery stores.....................................................................................
Department stores .............................................................................
Miscellaneous shopping goods stores................................................
Motor vehicle dealers.........................................................................
Building material and garden supplies...............................................
Clothing and accessories....................................................................
Furniture and home furnishings stores.............................................
Appliance, radio, TV, and music stores.............................................
Auto and home supply stores............................................................
Gasoline service stations....................................................................
Food stores, other than grocery stores...............................................
Shoe stores ..........................................................................................
Other...................................................................................................
34.7
9.3
9.0
7.6
6.0
5.9
5.7
4.3
3.8
3.1
2.3
2.2
1.6
1.2
3.3
SOURCE: Bureau of Labor Statistics
Training, Other Qualifications, and Advancement
Knowledge of management principles and practices is the essential
requirement for a management position in retail trade, and such
knowledge usually is acquired through work experience. Most man
agers begin their careers on the sales floor as a sales clerk, cashier,
customer service worker, or a food and beverage service worker, for
example. In these positions they learn merchandising, customer ser
vice, and the basic policies and procedures of the store.
Those individuals who display leadership skills, self-confidence,
motivation, and decisiveness become candidates for promotion to
assistant manager or department manager, depending on the size
and structure of the store. In many retail establishments, managers
are promoted from within the company. In small retail establish
ments, where the number of positions is limited, advancement to a
higher management position may come slowly. Larger establish
ments have more extensive career ladder programs and offer manag
ers the opportunity to transfer to another store in the chain or to the
central office if an opening occurs. Promotion may occur more
quickly in larger establishments, but relocation every several years
may be necessary for advancement. Purchasers and buyers (dis
cussed elsewhere in the Handbook), who purchase merchandise di
rectly from distributors for resale, is one career step within the cen
tral office. Other positions within the central office include
marketing, advertising, and public relations managers, who coordi
nate marketing plans, monitor sales, and propose advertisments and
promotions, and purchasing agents and managers, who purchase
goods and supplies for their organization. (Both occupations are
covered in other Handbook statements.)
Training varies from store to store. Many national chains have
formal training programs for management trainees, which include
both classroom and in-store training. Training may last from 1 week
to 1 year or more, as many retail organizations require their trainees
to gain experience during all shopping seasons. Other retail organi
zations may not have any formal training program at all.
Classroom training may include such topics as interviewing and
customer service skills, and employee and inventory management
and scheduling. Management trainees may be placed in one specific
department while training on the job, or they may be rotated among
several departments to gather a well-rounded knowledge of the
store’s operation. Training programs in franchises generally are ex
tensive, covering all functions of the operation, including promo
tion, marketing, management, finance, purchasing, product prepa
ration, human resource management, and compensation. College
graduates usually directly enter management training programs.
The educational background of managers in retail trade varies
widely. A high school diploma often is required, and a postsecon
dary degree is preferred for individuals who wish to advance in the
profession. Though generally not required, postsecondary educa
tion is a sign of motivation and maturity, increasingly important
qualities as the individual is promoted to more responsible positions.
Regardless of the education received, business courses including ac
counting, administration, marketing, management, and sales, as
well as courses in psychology, sociology, and communication, are
helpful. Managers also must be computer literate as cash registers
and inventory control systems become more computerized.
Most managers who have postsecondary education hold an asso
ciate or a bachelor’s degree in liberal arts, social science, business, or
management. Many postsecondary students participate in intern
ship programs to gain retail experience. Such programs usually are
planned between individual schools and retail firms.
Many managers who have worked in the retail industry for a long
time open their own store. However, retail trade is highly competi
tive, and although many independent retail owners succeed, some
fail to cover expenses and eventually go out of business. Retail own
ers need good business sense and strong customer service and public
relations skills.
Retail managers must get along with all kinds of people. They
need initiative, self-discipline, and the ability to organize and direct
the work of others. Patience and a mild temperament are necessary
when dealing with rude, angry, or demanding customers. Good
judgment and decisiveness are necessary when reacting to competi
tion from other stores. Retail managers also must be able to moti
vate subordinates and communicate clearly and persuasively with
customers and other managers.
Job Outlook
Employment of salaried retail managers is expected to grow about
as fast as the average for all occupations through the year 2005. Re
tail establishments are growing in number and size. However, simi
lar to other industries, corporate downsizing and restructuring may
temper demand for retail managers. In the face of intense competi
tion, many firms are improving operating efficiency by using com
puterized registers and inventory control systems, also slowing
growth of new retail management jobs.
Because retail managers comprise a large occupation, most job
openings are expected to occur as experienced managers retire or
stop working for other reasons. Many retail managers transfer to
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other occupations because of high pressure, long hours, and inabil
ity to meet sales quotas. Jobs in retail management vary greatly in
earnings, weekly hours, number of employees supervised, and type
of goods and services. Since most jobs in retail management do not
require education beyond high school, competition is expected for
jobs with the most attractive earnings and working conditions. Can
didates who have retail experience will have the best opportunities.
Projected employment growth of retail managers reflects pro
jected industry growth. For example, faster than average growth is
expected in appliance, radio, television, and music stores, while av
erage growth is expected in miscellaneous shopping goods stores.
On the other hand, slower than average growth is expected in de
partment stores, while employment of managers is expected to de
cline in gasoline service stations.
Earnings
Salaries of retail managers vary substantially, depending upon the
level of responsibility, length of service, and type, size, and location
of the firm.
According to a survey sponsored by the Association of Conve
nience Stores, the median salary for assistant store managers ranged
between $13,100 and $14,300 a year in 1992, depending on the size
of the organization. Store managers earned between $ 18,400 and
$23,700; district managers, $29,800 and $62,700; and regional man
agers, $47,000 and $128,500.
Compensation systems vary by type of establishment and mer
chandise sold. Most managers receive a commission or a combina
tion of salary and commission. Under a commission system, retail
managers receive a percentage of department or store sales. These
systems offer managers the opportunity to significantly increase
their earnings, but they may find that their earnings depend on their
ability to sell their product and the condition of the economy. Those
managers who sell large amounts of merchandise often are rewarded
with bonuses and awards, and receive recognition throughout the
store or chain.
Retail managers receive typical benefits and, in some cases, stock
options. In addition, retail managers generally are able to buy their
store’s merchandise at a discount, often from 10 to 40 percent below
regular prices. In some cases, this privilege is extended to the em
ployee’s family as well.
Related Occupations
Retail managers serve customers, supervise workers, and direct and
coordinate the operations of an establishment whose aim is to maxi
mize profits and satisfy the customer. Others with similar responsi
bilities include managers in wholesale trade, hotels, banks, hospi
tals, law firms, and a wide range of other industries.
Sources of Additional Information
Information on employment opportunities for retail managers may
be obtained from the employment offices of various retail establish
ments, or State employment service offices.
Information on educational programs for retail managers is avail
able from:
©"American Management Association, 135 W. 50th St., New York, NY
10020.
General information on management careers in retail establish
ments is available from:
W National Retail Federation, 701 Pennsylvania Ave. NW., Suite 710,
Washington, DC 20004.
Information on management careers in grocery stores, and
schools offering related programs, is available from:
©• Food Marketing Institute, 800 Connecticut Ave. NW., Washington, DC
20006-2701.
Information about management careers and training programs in
the motor vehicle dealers industry is available from:
fW National Automotive Dealers Association, 8400 Westpark Dr., McLean,
VA 22102.
Information about management careers in convenience stores is
available from:
©“National Association of Convenience Stores, 1605 King St., Alexandria,
VA 22314.
51
Underwriters
union or employer representatives to discuss the types of policies
available to their group.
Working Conditions
(D.O.T. 169.267-046)
Nature of the Work
Insurance companies assume billions of dollars in risks each year by
writing policies that transfer the risk of loss from their policyholders
to themselves. Underwriters appraise and select the risks their com
pany will insure. An insurance company may lose business to com
petitors if the underwriter appraises risks too conservatively, or it
may have to pay more claims if the underwriting actions are too lib
eral.
Underwriters decide whether an applicant for insurance is an ac
ceptable risk. They analyze information in insurance applications,
reports from loss control consultants, medical reports, and actuarial
studies—reports that describe the probability of insured loss. They
then decide whether to issue a policy and may outline the terms of
the contract, including the amount of the premium. Underwriters
frequently correspond with policyholders, agents, and managers
about policy cancellations or other matters. On rare occasions, they
accompany sales workers on appointments with prospective cus
tomers. (Life insurance agents and brokers are increasingly called
“life underwriters;” they are included in the statement on insurance
agents and brokers elsewhere in the Handbook.)
Most underwriters specialize in one of three major categories of
insurance: Life, property and casualty, or health. They further spe
cialize in group or individual policies. Property and casualty under
writers specialize by type of risk insured, such as fire, homeowner,
automobile, marine, property, or workers’ compensation. In cases
where casualty companies insure in a single “package” policy, cov
ering various types of risks, the underwriter must be familiar with
different lines of insurance. Some underwriters, called commercial
account underwriters, handle business insurance exclusively. They
often evaluate a firm’s entire operation in appraising its insurance
application.
An increasing proportion of insurance sales are being made
through group contracts. A standard group policy insures all per
sons in a specified group through a single contract at uniform pre
mium rates, generally for life or health insurance protection. The
group underwriter analyzes the overall composition of the group to
be sure that the total risk is not excessive. Another type of group
policy provides members of a group—a labor union, for example—
with individual policies reflecting their needs. These generally are
casualty policies, such as those covering automobiles. The casualty
underwriter analyzes the application of each group member and
makes individual appraisals. Some group underwriters meet with
Underwriters frequently correspond with policyholders, agents, and
managers about policy cancellations or other matters.
52
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Underwriters have desk jobs that require no unusual physical activ
ity. Their offices generally are comfortable and pleasant. Although
some overtime may be required, the normal workweek is 35-40
hours. Underwriters occasionally may attend meetings away from
home for several days. Construction and marine underwriters often
travel to inspect work sites and assess risks.
Employment
Insurance underwriters held about 100,000 jobs in 1992. The fol
lowing tabulation shows the percent distribution of wage and salary
jobs by industry.
Total...................................................................................................
100
Insurance carriers..................................................................................
Fire, marine, and casualty insurance................................................
Life insurance.....................................................................................
Medical service plans and health insurance.....................................
Pension funds and miscellaneous insurance.....................................
Insurance agents, brokers, and service..................................................
Banks and credit agencies......................................................................
Other industries.....................................................................................
61
40
14
4
3
32
5
2
The majority of underwriters worked for insurance companies (or
carriers). Most of the remaining underwriters worked throughout
the country in independent agencies—firms which represent one or
more insurance companies—and brokers—firms which may deal
with any insurance company but represent none. Small numbers of
underwriters worked for banks, mortgage companies, and real es
tate firms.
Underwriters in the life insurance industry are most likely to
work in an insurance company’s home office. In some large agen
cies, underwriters help life insurance agents determine if the risk
will be accepted or rejected by the home office. However, most re
gional life insurance offices deal predominantly with sales, not un
derwriting. Property and casualty underwriters also work in home
offices, but more work for agencies or regional branch offices, where
they have the authority to underwrite risks and determine an appro
priate rating without consulting the home office.
Training, Other Qualifications, and Advancement
For beginning underwriting jobs, many large insurance companies
prefer college graduates who have a degree in business administra
tion or finance, with courses or experience in accounting. However,
a degree in almost any field plus courses in business law and ac
counting provide a good general background. Basic familiarity with
computers is also needed.
Some companies also hire persons without a college degree for
underwriter trainee positions. In addition, some high school gradu
ates who begin as underwriting clerks may be trained as underwrit
ers after they demonstrate an aptitude for the work. In the property
and casualty industry, ratings clerks sometimes advance to under
writer jobs through their skill and experience in researching risk and
setting rates.
Underwriter trainee or assistant underwriter is the typical entrylevel position for this occupation. Beginners may help collect infor
mation on applicants and evaluate routine applications under the
close supervision of an experienced risk appraiser. Property and cas
ualty trainees study claim files to become familiar with factors asso
ciated with certain types of losses. Many larger insurers offer a
training program, lasting from a few months to a year, that com
bines study with work. As trainees develop the necessary judgment,
they are assigned policy applications that are more complex and
have a greater face value. These often require the use of computers
for more efficient processing.
Continuing education is necessary for advancement. Insurance
companies generally pay tuition for underwriting courses that their
trainees successfully complete; some also offer salary incentives. In
dependent study programs for experienced property and casualty
underwriters are also available. The American Institute for
Chartered Property Casualty Underwriters offers the designations
“Associate in Underwriting (AU),” and “Chartered Property Casu
alty Underwriter (CPCU).” Earning the AU designation usually re
quires a year and a half and the completion of an examination cover
ing course material. Earning the more advanced CPCU designation
generally takes about 5 years, and requires passing 10 examinations
covering such subjects as personal and commercial risk manage
ment, business law, accounting, finance, economics, and ethics. Al
though CPCU’s may be underwriters, the CPCU is intended for
prospective managers. An AU designation is sufficient for a career
in underwriting.
Underwriting can be a satisfying career for persons who like
working with detail and enjoy analyzing information. In addition,
underwriters must possess good judgment in order to make sound
decisions. They must also be imaginative and aggressive, especially
when they have to obtain information from outside sources.
Experienced underwriters who complete courses of study may ad
vance to chief underwriter or underwriting manager. Some under
writing managers are promoted to senior managerial jobs.
Job Outlook
Employment of underwriters is expected to increase about as fast as
the average for all occupations through the year 2005. Most job
openings, however, are expected to result from the need to replace
underwriters who transfer to other occupations or stop working al
together.
A number of factors underlie the continuing need for underwrit
ers. Shifts in the age distribution of the population will result in an
increase in the number of people who assume career and family re
sponsibilities. People in this group have the greatest need for life and
property and casualty insurance. A growing demand for insurance
coverage for working women also is expected. In addition, ex
panding long-term healthcare and pension benefits for retirees—an
increasing proportion of the population—will increase underwriting
requirements. Growing concerns for financial security and liability
should also contribute to demand for more insurance protection for
homes, automobiles, pleasure craft, and other valuables. New or ex
panding businesses will need protection for new plants and equip
ment, product liability, and insurance for workers’ compensation
and employee benefits.
On the other hand, the trend toward self-insurance is expected to
lower the demand for some property and casualty underwriters.
Businesses who self-insure set a rate for their own company and pay
premiums into a reserve fund. Additionally, many property and cas
ualty companies are foregoing personal lines of insurance—espe
cially automobile—and concentrating on commercial lines of busi
ness. Demand for health insurance underwriters should be lower if
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national health insurance legislation reduces insurers’ freedom to
refuse coverage to high-risk individuals. Underwriters specializing
in one particular area of insurance may find it difficult to transfer to
another type of insurance if their jobs are threatened.
Since insurance is usually regarded as a necessity, regardless of
economic conditions, underwriters are unlikely to be laid off be
cause of a recession.
Earnings
The following tabulation shows the median salaries of casualty and
property underwriters in 1991, according to a survey by the Alliance
of American Insurers in collaboration with the American Insurance
Association and the National Association of Independent Insurers.
Underwriters of personal lines
Entry level.................................................................................
Intermediate level.....................................................................
Senior level ................................................................................
Supervisor.................................................................................
Manager....................................................................................
$25,000
32,200
40,400
45,300
61,000
Underwriters of commercial lines
Entry level.................................................................................
Intermediate level .....................................................................
Senior level ................................................................................
Supervisor.................................................................................
Manager....................................................................................
$28,000
32,800
40,600
45,500
61,000
Most insurance companies have liberal vacation policies and
other employee benefits. Almost all insurance companies provide
employer-financed group life and retirement plans.
Related Occupations
Underwriters make decisions on the basis of financial data. Other
workers with the same type of responsibility include auditors,
budget analysts, financial advisors, loan officers, credit managers,
real estate appraisers, and risk managers.
Sources of Additional Information
General information about a career as an insurance underwriter is
available from the home offices of many life insurance and property
and liability insurance companies. Information about the insurance
business in general and the underwriting function in particular also
may be obtained from:
Society of Chartered Property and Casualty Underwriters, Kahler Hall,
P.O. Box 3009, 720 Providence Rd., Malvern, PA 19355-0709.
☆ U.S. GOVERNMENT PRINTING OFFICE: 1994 363-539 2450-2
53
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Occupational
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Bureau of Labor Statistics
A Statistical and Research Supplement
to the 1994-95 Occupational Outlook Handbook
Bulletin 2452
April 1994
U.S. Department of Labor
Bureau of Labor Statistics
May 1994
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BLS Bulletin 2451
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Occupational Projections and -framing
Data, 1994 Edition
The American Work Force:
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This supplement to the Occupational Outlook Handbook
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cuses on important issues raised by these projections.
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The 1992 Career Guide to Industries is a unique, new source of job information
It contains authoritative up-to-date reviews of 40 industries—from
agriculture of aerospace. You can find out which industries are growing,
where the jobs are, and which pay well. Other information includes:
O Description of the industry and its workplaces
O Principal occupations and their growth rates
O Working conditions and hazards
O Opportunities for training and advancement
O Jobs that do not require training beyond high school
O Jobs that require additional specialized education or training
If you need career information, you need industry information: That's
why Career Guide to Industries can be a useful addition to your library
Price $12.00. Stock # 029-001-03127-1
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