Management

And Management Structures

Levels of Management
Vocabulary
 Vertical Organization
 Top Management
 Middle Management
 Supervisory-Level Management
 Horizontal Organization
Types of Management Structures
 To facilitate effective management,
businesses are organized in two ways:
 Vertically
 Horizontally
Vertical Organization
 Usually in large, traditional companies.
 Managers look up to higher levels of
management or down to employees all
within a single department.
 Their goal is to perform a particular
department function well.
Vertical Organization
There are three levels of management in
vertically organized companies:

 Top Management
 Middle Management

 Supervisory-Level Management
Example:
Top Management
 These are people who make planning decisions
that affect the whole company. They are the
persons with the greatest responsibility.
 Top management job titles include:
 Chief Executive Officer
 President
 Chief Operating Officer
 Vice President
Middle Management

 These managers
implement the
decisions of top
management.
 They are the link
between the top and
supervisory-levels
of management.
Supervisory-Level Management
 They supervise the
activities of employees
who carry out the tasks
determined by the plans of
middle and top
management.
 They assign duties and
evaluate the work of
production or service
employees.
 Management that interacts
directly with employees
on the job.
Horizontal Organization
 This type of organizational structure involves self-
managing teams that set their own goals and make
their own decisions.
 This type of management structure is organized by
process instead of
function and is customer-oriented.
 A newer method of management brought about by
downsizing in the late 1980s and early 1990s, to
make companies more efficient and productive.
Example
 There are three
characteristics of a
Horizontal
Organization
 Self-Managing Teams
 Organization by
Process
 Customer Orientation
Self-Managing Teams
 Instead of reporting up a chain of command,
employees are organized into teams that
manage themselves.
 Each team has an "owner" who has ultimate
responsibility for ensuring the team meets its
goals. He or she acts
like a coach.
 The team shares responsibility for the
consequences of its decisions.