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Hierarchy of Management Levels Explained

There are three levels of management in most organizations: top level, middle level, and operational/lower level. [1] The top level focuses on long term goals and strategy, the middle level interprets plans and sets actions, and the lower level implements plans. [2] The top level establishes objectives, policies, and strategic plans for the organization and appoints middle managers. [3] The middle level executes plans, coordinates activities, and oversees lower managers. The lower level directly manages operations and staff.

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16 views3 pages

Hierarchy of Management Levels Explained

There are three levels of management in most organizations: top level, middle level, and operational/lower level. [1] The top level focuses on long term goals and strategy, the middle level interprets plans and sets actions, and the lower level implements plans. [2] The top level establishes objectives, policies, and strategic plans for the organization and appoints middle managers. [3] The middle level executes plans, coordinates activities, and oversees lower managers. The lower level directly manages operations and staff.

Uploaded by

Arkar Moe
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Reading: Levels of Management

Business Management for Every Enterprise

Unit 1

Levels of Management

Levels of Management

The hierarchy of management positions from top to bottom is called Levels of


Management. In an organization three levels are usually identified.

Top Level
- Long Term Goals, Products, Markets, Business Organization
- Job Titles: CEO, CFO, COO

Middle Level
- Interpret Plans & Set Actions
- Job Titles: Managers

Operational or Low Level


- Implement Plans
- Job Titles: Team Leaders 

Top Level of Management

Board of directors, chief executive officer, managing director, etc. are in this level of
management.

The top management is the ultimate source of authority.

It manages goals and policies for an enterprise.

It devotes more time planning and coordinating functions 

Top Level Management


Roles & Responsibilities
Top management lays down the objectives and broad policies of the enterprise. 

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


schedules etc.

It prepares strategic plans & policies for the enterprise.

It appoints the executive for middle level management. i.e. Department managers

It controls and coordinates the activities of all departments

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

It provides guidance and direction.

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

Middle Level Management

The branch managers and department managers constitute middle management.

They are responsible to top level management for the operations of their department.

They devote more time to organizational and directional functions.

In small organizations, there only one layer of middle management. In larger enterprises,
there may be senior and junior middle level managers.

Middle Level Management


Roles and Responsibilities

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

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

They participate in employment & training of lower level management.

They interpret and explain policies from top level management to lower level.
They are responsible for coordinating the activities within the division or department. 

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

They evaluate performance of junior managers.

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

Lower Level Management

Lower level is also known as supervisory/operations level of management

It consists of supervisors, foreman, section officers, superintendent, etc.

Lower level managers work closely with personal oversight and direct business operations
on the ground level. 

Lower level managers are concerned with direction and controlling functions of
management.

Lower Level Management


Roles and Responsibilities

Assigning jobs and tasks 

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