Principles of Management  © T Thomas; contributors: Source: PEOI

 



 

Many managers work in an organization. However, these managers do not work at the same level. They work and operate at different positions. Each level possesses certain job responsibilities within their position to ensure the effective overall operation of the organization. At each level, individual manager has to carry out different roles and functions because each level of management serves a unique purpose. Hierarchy of these managerial positions is called Levels of Management. A part of an organization that maintains responsibility for the productivity and the work performance of employees.

There are generally three (3) levels of management within an organization including top-level, middle-level, and first level that are tiered in numbers with more first level managers, a smaller amount of middle managers, and less top-level managers within one organization. The traditional organizational model has a pyramid structure of management - a few TOP-level managers, more MIDDLE-level managers, and the most SUPERVISORS (also called low-level managers).

Three Levels of Management:

Generally, there are Three Levels of Management, viz.,

TOP Level of Management:

The Top Level Management consists of the Board of Directors (BOD) and the Chief Executive Officer (CEO). The Chief Executive Officer is also called General Manager (GM) or Managing Director (MD) or President. The Board of Directors are the representatives of the Shareholders, i.e. they are selected by the Shareholders of the company. Similarly, the Chief Executive Officer is selected by the Board of Directors of an organization. These top managers are responsible for setting the overall direction of a company and making sure that major organizational objectives are achieved. Their leadership role can extend over the entire organization or for specific divisions such as finance, marketing, human resources, or operations.

Role of the top level management is summarized as follows:

MIDDLE Level of Management:

The second layer of management is called middle-level management. This level of managers’ report to top management and serve as the head of major departments and their specialized units. Middle managers serve as a liaison between top managers and the rest of the organization from a very unique standpoint. They are typically much more visible to the greater workforce than top management, but they spend most of their time developing and implementing strategic actions plans needed to achieve the organizational goals set by top management. Middle managers essentially have the important role of designing, selecting, and carrying out the best plan possible as a means of propelling a company towards its overall goals

The Middle Level Management consists of the Departmental Heads (HOD), Branch Managers, and the Junior Executives. The Departmental heads are Finance Managers, Purchase Managers, etc. The Branch Managers are the head of a branch or local unit. The Junior Executives are Assistant Finance Managers, Assistant Purchase Managers, etc. The Middle level Management is selected by the Top Level Management.

The middle level management emphasize more on following tasks:

LOWER Level of Management:

The lower level management consists of the Foremen and the Supervisors. They are selected by the middle level management. It is also called Operative/Supervisory level or First Line of Management. They are responsible for directing the day-to-day activities of operative employees. The Lower Level Management consists of the Supervisors, Line Managers, Section Chief, and Office Manager.

The lower level management performs the following activities: