What is managerial capacity?

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Where the employee manages the organization, department, subdivision, function or component; supervises and controls the work of other supervisory, professional or managerial employees or manages an essential function within the organization or department or subdivision; has authority to hire and fire or recommend personnel actions, or if not direct supervision, functions at a senior level within hierarchy or as to function managed; and exercises discretion over day-to-day operations of the activity or function, s/he is employed in a managerial capacity.