Management Levels: A

Hierarchical View
An organization can have many different
managers, across many different titles,
authority levels, and levels of the
management hierarchy.
LEARNING OBJECTIVE[ EDIT ]
Recognize the difference between low-level, middle-level and top-level
management

KEY POINTS[ EDIT ]

o The three levels of management typically found in an
organization are low-level management, middle-level management, and
top-level management.
o Top-level managers are responsible for controlling and
overseeing the entire organization.
o Middle-level managers are responsible for executing
organizational plans which comply with the company's policies. These
managers act at an intermediary between top-level management and low-
level management.
o Low-level managers focus on controlling and directing. They
serve as role models for the employees they supervise.

TERMS[ EDIT ]
hierarchy
Any group of objects ranked so that every one but the topmost is
subordinate to a specified one above it.
manager
A person whose job is to manage something, such as a business, a
restaurant, or a sports team.
board of directors
A group of people, elected by stockholders, to establish corporate policies,
and make management decisions.
 top management
company employees responsible for controlling and overseeing the entire
organization
middle management
company employees that are accountable for controlling and overseeing a
department

EXAMPLE[ EDIT ]
o Examples of top-level managers include a company's board of
directors, president, vice-president and CEO; examples of middle-level
managers include general managers, branch managers, and department
managers; examples of low-level managers include supervisors,
section leads, and foremen.
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FULL TEXT[ EDIT ]

Management Levels: An Overview

Most organizations have three management levels:

Low-level managers;

Middle-level managers; and

Top-level managers.

These managers are classified in a hierarchy of authority, and

perform different tasks. In many organizations, the number of

managers in every level resembles a pyramid.

Below, you'll find the specifications of each level's different

responsibilities and their likely job titles.

 Top-level managers
The board of directors, president, vice-president, and CEO are all

examples of top-level managers.

These managers are responsible for controlling and overseeing the

entire organization. They develop goals, strategic plans, company

policies, and make decisions on the direction of the business.

In addition, top-level managers play a significant role in the

mobilization of outsideresources.

Top-level managers are accountable to the shareholders and general

public.

Middle-level managers
General managers, branch managers, and department managers

are all examples of middle-level managers. They are accountable to

the top management for their department's function.

Middle-level managers devote more time to organizational and

directional functions than top-level managers. Their roles can be

emphasized as:

Executing organizational plans in conformance with the

company's policies and theobjectives of the top management;

 Defining and discussing information and policies from top

management to lower management; and most importantly

Inspiring and providing guidance to low-level managers

towards betterperformance.

Some of their functions are as follows:

Designing and implementing effective group and intergroup

work and informationsystems;

Defining and monitoring group-level performance indicators;

Diagnosing and resolving problems within and among work

groups;

Designing and implementing reward systems

supporting cooperative behavior.

Low-level managers
Supervisors, section leads, and foremen are examples of low-level

management titles. These managers focus on controlling and

directing.

Low-level managers usually have the responsibility of:

Assigning employees tasks;

 Guiding and supervising employees on day-to-day activities;

Ensuring the quality and quantity of production;

Making recommendations and suggestions; and

Upchanneling employee problems.

Also referred to as first-level managers, low-level managers are role

models for employees. These managers provide:

Basic supervision;

Motivation;

Career planning;

Performance feedback; and

Staff supervision.
Management Levels

Hierarchical view of management in organizations

Levels of Management
The term Levels of Management refers to a line of demarcation between various managerial positions
in an organization. The number of levels in management increases when the size of the business and
work force increases and vice versa. The level of management determines a chain of command, the
amount of authority & status enjoyed by any managerial position. The levels of management can be
classified in three broad categories:

1. Top level / Administrative level

2. Middle level / Executory

3. Low level / Supervisory / Operative / First-line managers

Managers at all these levels perform different functions. The role of managers at all the three levels is
discussed below:
 LEVELS OF MANAGEMENT

1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the
ultimate source of authority and it manages goals and policies for an enterprise. It devotes more
time on planning and coordinating functions.

The role of the top management can be summarized as follows -

a. Top management lays down the objectives and broad policies of the enterprise.

b. It issues necessary instructions for preparation of department budgets, procedures,

schedules etc.

c. It prepares strategic plans & policies for the enterprise.

d. It appoints the executive for middle level i.e. departmental managers.

e. It controls & coordinates the activities of all the departments.

f. It is also responsible for maintaining a contact with the outside world.

g. It provides guidance and direction.

h. The top management is also responsible towards the shareholders for the performance
of the enterprise.

2. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible
to the top management for the functioning of their department. They devote more time to
organizational and directional functions. In small organization, there is only one layer of middle
 level of management but in big enterprises, there may be senior and junior middle level
management. Their role can be emphasized as -

a. They execute the plans of the organization in accordance with the policies and directives
of the top management.

b. They make plans for the sub-units of the organization.

c. They participate in employment & training of lower level management.

d. They interpret and explain policies from top level management to lower level.

e. They are responsible for coordinating the activities within the division or department.

f. It also sends important reports and other important data to top level management.

g. They evaluate performance of junior managers.

h. They are also responsible for inspiring lower level managers towards better performance.

3. Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of
supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, Supervisory
management refers to those executives whose work has to be largely with personal oversight and
direction of operative employees. In other words, they are concerned with direction and
controlling function of management. Their activities include -

a. Assigning of jobs and tasks to various workers.

b. They guide and instruct workers for day to day activities.

c. They are responsible for the quality as well as quantity of production.

d. They are also entrusted with the responsibility of maintaining good relation in the
organization.

e. They communicate workers problems, suggestions, and recommendatory appeals etc to

the higher level and higher level goals and objectives to the workers.

f. They help to solve the grievances of the workers.

g. They supervise & guide the sub-ordinates.

h. They are responsible for providing training to the workers.

i. They arrange necessary materials, machines, tools etc for getting the things done.
 j. They prepare periodical reports about the performance of the workers.

k. They ensure discipline in the enterprise.

l. They motivate workers.

m. They are the image builders of the enterprise because they are in direct contact with the
workers.

Source:

https://www.boundless.com/business/textbooks/boundless-business-textbook/management-
8/types-of-management-61/management-levels-a-hierarchical-view-293-7468/

http://www.managementstudyguide.com/management_levels.html