The 3 Important Levels of Management in an Organization

The term Management is generally construed as relating to the management of corporations. There are a big number of companies that have operations in more than one product lines or in many countries. There is a need for various levels of management to manage such huge scale of affairs.

The levels of management mean various layers of command in an organisation. This chain of command helps in dividing the work and ensures that the vision conceptualized by the top-level management is executed by the lower levels of executives thoroughly.

From the above-mentioned discussion, it can be discerned that there are three levels of management :

1. Top level management
2. Middle-level management
3. Lower level management or executive-level management

Top Level Management

The top-level of management is also known as administrative management. The top-level of management doesn’t feel responsible for making day-to-day decisions of an organization.

The top management level consists of the president, vice president, the board of directors, chief operating officer (COO), chief executive officer (CEO), and chief financial officer (CFO).

The tougher and most important responsibilities lie on the shoulders of top management. The top-level of management is responsible for deciding the goals, strategic planning, and policies for the organization.

The top-level of management is considered the source of authority for an organization. All the department’s of an organization are centrally controlled by the top level of management of an organization.

It coordinates the activities of all departments of the organization. In addition to controlling the activities of all departments, it also controls the budget slotted to each department, their agenda, and techniques used by them.

The top management level is the face of the organization in the market. The members of the top-level management are answerable to the shareholders and make sure that the organization has a positive image in the market.

Let us learn about the functions of the top-level management of an organization.

Functions of top-level management

1. Top-level management provides guidance and direction to the employees of the organization.
2. It decides the policies and objectives of the organization.
3. It is responsible for the performance of the organization and is answerable towards the shareholders of the organization.
4. Gives instructions regarding the budget, procedures, and schedules, etc. of all departments.
5. Coordinates the activities of all departments and keeps control over them.
6. Is responsible for hiring executives for middle-level management.
7. Is responsible for maintaining the image of the organization in the market and keep contact with the outside world.
8. Take all important decisions such as fixed assets to carry out the day to day activities of the organization.
9. Is responsible for the welfare and the survival of the organization. It makes all possible efforts for the continuous growth of the organization

Middle Level Management

This Management Level comes below the top level of management and is referred to as an executory level of management. The executives of this level work as the subordinates big the top level of management and are responsible for managing and directing the low level of management.

The middle management level establishes a communication link between top-level management and low-level management. They take instructions from the top-level management and apply them to low-level management.

The members of this level of management consist of departmental managers and branch managers. The job of this level of management is quite tough as they are required to get maximum output from the department they are responsible for, and on the other hand, they are the ones who are questioned by the top level of management.

The members of the middle level of management can further be divided into two parts, such as senior middle-level management and junior middle-level management.

The middle level of management controls the employees of the low level of management. They recruit them and provide training as per their respective jobs.

They establish communication between the top level of management and low level of management as they are the common link of connection between both levels of management.

For example, they take instructions from the top level of management and forward them to the low level of management and gathers reports, information, and other data from the low level of Management and forward it to the top level of management.

Let us learn about the functions of a middle level of management.

Functions of a middle level of management

1. The middle-level management executives manage the executives of the low level of management.
2. They are responsible for taking the maximum output from the low level of management.
3. They are responsible and answerable for the performance of the respective departments they manage.
4. They make a plan for the departments they are responsible for.
5. They evaluate the performance of employees of junior level and forward their work performance report to the top level of management.
6. They take part in the recruitment and training process for junior-level employees.
7. They forward the policies obtain from top-level management to the employees of low level.
8. They are a common connection between top-level management and low-level management.
9. They not only control but also motivate employees to achieve their goals.
10. The executives of the middle level of management coordinate with other departments in the organization.

Low Level Management

Low level of management is the last level of management, and they are also referred to as the supervisory or operative level of management.

The executives of this level directly connected with the employees and spend most of their time in managing the employees and giving instructions to them. They make sure that their department functions as per the directions are given by the top level of management.

They are first-line managers who first come to know about the problems faced by the employees of their department, and they are responsible for conveying the problems to the middle level of management.

They work with the employees to provide solutions to the problems amongst themselves. They settle the disputes between the employees rather than taking them to the upper level of management.

The executives of the low level of management report to the middle level of management and not directly to the top level of management.

 They provide training to the operative employees and ensures that they work at their utmost efficiency. The operating employees go directly to the first line managers whenever they feel lack of something such as a machine or a tool, etc. and they make sure that the operating employees get all the machines, material and tools to carry out the work.

Let us further learn about the functions of the low level of management

Functions of the low-level management

1. Low level of managers give instructions to the workers and guide them for day-to-day activities.
2. They are responsible for dividing work and tasks among the employees.
3. They build the image of the organization as they are the first line of the manager and have direct contact with employees.
4. They motivate employees and encourage them to use their full potential.
5. They make sure that the production process runs without any interruption and also the quality of the production process.
6. They prepare reports of the performance of employees and present them to the upper level of management.
7. They are responsible for creating discipline among the employees who work in their department.
8. They settle disputes among the employees.
9. They provide training to the employees and help them in their work whenever they need.
10. They are responsible for arranging material, machinery, and tools required for the production process.