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Chan Robles

C. Kinds of Employees:

• Distinction Between Managerial, Supervisory and Rank-


and-File Employees 1996/2003

• Distinction Between Managerial Employees and


Supervisory Employees 2002

• Distinction Between the Rights of Managerial Employees


and Members of Managerial Staff 1994

Types of Management

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 OBJECTIVES

Recognize the difference between low-level, middle-level and top-level management

KEY TAKEAWAYS

Key Points

 The three levels of management typically found in an organization are low-level


management, middle-level management, and top-level management.
 Top-level managers are responsible for controlling and overseeing the entire
organization.
 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.
 Low-level managers focus on controlling and directing. They serve as role
models for the employees they supervise.

Key Terms

 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

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 outside


resources.

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


the objectives 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 better
performance.

Some of their functions are as follows:

 Designing and implementing effective group and intergroup work and information
systems;
 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.

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3. Management Basics

4. Levels of Management

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.

3. https://www.managementstudyhq.com/levels-of-management-and-functions.html
The Levels of Management
Management is essential for an organized life and necessary to run all
types of management. Good management is the backbone of
successful organizations. Managing life means getting things done to
achieve life’s objectives and managing an organization means getting
things done with and through other people to achieve its objectives.

Management is a set of principles relating to the functions of planning,


organizing, directing, and controlling, and the application of these
principles in harnessing physical, financial, human, and informational
resources efficiently and effectively to achieve organizational goals.

Segmenting the management of an organization into levels is vital to


maintaining the productivity and work performance of employees.
Although when there is a change in the size of the business or the
workforce, there would also be a change in the number of levels of the
management.
Contents [show]
What Are The Three Levels of
Management?
The three levels of management provide a separation between the
managerial positions of the organization. The administrative rank of an
organization worker determines the extent of authority, the status
enjoyed, and the chain of command that can be controlled by the
worker. There are three levels of management found within an
organization, where managers at these levels have different roles to
perform for the organization to have a smooth performance, and the
levels are:

1. Top-Level Management/ Administrative level


2. Middle-Level Management/ Executory
3. Low-level Management/  Supervisory

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