3 Levels of Management/ Management Hierarchy
In every organization there are 3 levels of management 1) Top-Level Management, 2) Middle-Level Management, and 3) Lower-Level Management. They all are categorized on the basis of their strength, knowledge, capability, and authority level.
The top-level manager is responsible for defining the overall objectives of the organization, the middle-level manager is responsible for communicating the goals provided by the top-level manager to the lower-level manager, and lower-level managers are responsible for the day to day activities and implementation of plans formulated by middle-level management.
Levels of management and management hierarchy are similar terms that mean a system with unbroken levels or status from the lowest to the highest and vice versa. For example, an authority or work goes through the top-level management to middle or lower-level management as well as through lower or middle to top-level management in a clear hierarchy.
The 3 Levels of Management are
- Top-Level Management
- Middle-Level Management
- Lower-Level Management
Lets individually describe these management levels,
#1 Top level management
Top-level management is the highest level of the managerial hierarchy and also known as the brain of the organization. The top-level manager directly derives his authority from the owners of the enterprise, he elected from the management committee, shareholders and board of directors.
It determines the overall organizational goals. Preparation of overall plans, policies, and strategies to achieve predetermined goals. Assembling resources (human, capital, technology, and information) and encouraging employees for wise utilization of such resources.
Examples of top-level management
- Chief Executive Officers (CEO’s)
- Managing Director
- General Manager, etc.
Some major functions of top levels of management are:
- Top-level managers define the overall objectives of the organization.
- Set up an organizational structure to complete the work in an efficient and systematic manner.
- Preparing strategic plans and policies of the organization.
- Direct, coordinate, and leads all the subordinates.
- Appoint departmental managers and guide them to do their work.
- Evaluate and review the performance of all departments and take the necessary steps to achieve organizational objectives.
- Represent the organization in the outside world, etc.
#2 Middle-level management
Middle-level management works as the formulation of departmental goals, plans, policies, and strategies for each department on the basis of overall goals.
This level of management consists of departmental heads like human resource manager, production manager, marketing manager, finance manager, operation manager, and other similar positions. The top-level management delegates part of its authority and responsibility to this level. This level plays the role of mediator between the top and first-line management. Like, assigning duties and responsibilities to first-line managers, recruiting and selecting suitable staff.
Some basic functions of middle-level management are:
- To play the role of mediator between top-level management and first (lower) line management.
- Implement plans and policies laid down by top-level management.
- Prepare departmental plans and strategies on the basis of guidance and information from the top-level.
- Divides work among subordinates and maintain coordination among them.
- Delegate authority and responsibility to the first-line management.
- Make provisions for training, workshop, seminar, and other activities.
- Submit a progress report to the top-level management, etc.
#3 Lower Level of Management
This level is also known as first-line or operating level management. It is directly involved in the actual operation of production, marketing, financing, accounting, etc.
Middle-level management consists of supervisors, foremen, sales officers, account officers, clerks, and other operational heads.
This management level responsible for the implementation of plans and strategies developed by the middle-level management. It works as arranging the necessary tools, equipment, etc. for the workers.
Some basic functions of middle level management are:
- Make day-to-day plans and to implement plans formulated by middle-level management.
- Assign responsibilities and duties to the employees.
- Provides necessary instructions and guidance to the subordinates.
- Manage resources.
- Maintain a close and harmonious relationship among all the employees.
- Perform an intermediary function between middle-level management and operating level management.
- Submit a progress report to the middle-level management.
- Operate and create a better environment for work, etc.