management hierarchy diagram

Management hierarchy / Level of management – Principles of Management

Hierarchy of Management/ Management level


Hierarchy means a system with unbroken levels or status from the lowest to the highest and vice versa. In other words, the management hierarchy is the way of the structure through the top level to bottom level employees & vice versa, in an organization. For e.g. 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 known as a hierarchy.

In an organization, the level of management is three types.Hierarchy management diagram

  • Top level management
  • Middle-level management
  • Lower level management


Top level management

Top level management determines the overall organizational goals. Preparation of overall plans, policies, and strategies to achieve predetermined goals. Establishment the standards for control. Directing (leading, motivating, supervision, communication) employees for central plans and policies of an organization. Assembling resources (human, capital, technology, and information) and encouraging employees for wise utilization of such resources. Representing the organization in the external world. Interacting between the organization and the external environment.

May we also point out some function of top levels management as below:

  • Define the overall objective of the organization.
  • Set up an organizational structure to complete the work in an efficient and systematic manner.
  • To prepare a strategic plan and policies of the organization.
  • Direct, coordinate and leads all the subordinates.
  • Appoint departmental manager 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.


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. Interpretation of plans and policies developed by the management to department level management. Guiding, instructing and controlling to the departments and lower level. Assigning duties and responsibilities for first line manager. Communicating plans, policies and guidelines set by top-level management to lower level management. Recruiting and selecting the suitable staffs.

Some basic function 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 the top level management.
  • Prepare departmental plan and strategies on the basis of guidance and information from top-level.
  • Divides work among subordinates and maintain coordination among them.
  • Delegate authority and responsibility to the first line management.
  • Make provisions of training, workshop, seminar, and other activities.
  • Submit a progress report to the top-level management, etc.


Lower Level of Management

Lower level management works as arranging the necessary tools, equipment’s etc. for the workers. Maintaining good human relations and discipline in the organization. Classifying and assigning the duties to first-line employees. Directing for activities and solving the problems of workers. Improving morale of the workers. Arranging and providing training to workers. Reporting success or failure of the operation to the middle-level management. Arranging job responsibilities in case of absenteeism.

Some basic function 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 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.

For offline read download pdf file Level of Mgmt

Also, read

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Four levels of The Brave Little Parrot

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