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Learn More!The 3 DifferentLevelsof Management
Levels of Management
The termLevelsof Management refers to the line of division that exists between various managerial positions in an organization. As the size of the company and workforce increases, the number oflevelsin management increases along with it, and vice versa. The differentLevelsof Managementcan determine the chain of command within an organization, as well as the amount of authority and typically decision-making influence accrued by all managerial positions.
Levels of Management can be generally classified into three principal categories, all of which direct managers to perform different functions.
In this article, we will explore the specific definition of these levels, as well as the roles and responsibilities of the managers that fall into these categories.
1. Administrative, Managerial, or Top Level of Management
Thislevel of managementconsists of an organization’sboard of directors and the chief executive or managing director. It is the ultimate source of power and authority, since it oversees the goals, policies, and procedures of a company. Their main priority is on the strategic planning and execution of the overall business success.
The roles and responsibilities of the top level of management can be summarized as follows:
- Laying down the objectives and broad policies of the business enterprise.
- Issuing necessary instructions for the preparation of department-specific budgets, schedules, procedures, etc.
- Preparing strategic plans and policies for the organization.
- Appointing the executives for middle-level management, i.e. departmental managers.
- Establishing controls of all organizational departments.
- Since it consists of the Board of Directors, the top management level is also responsible for communicating with the outsideworld andis held accountable towards an organization’s shareholders for the performance of the enterprise.
- Providing overall guidance, direction, and encouraging harmony and collaboration.
2. Executive or Middle Level of Management
Thebranch and departmental managersform this middle management level. These people are directly accountable to top management for the functioning of their respective departments, devoting more time to organizational and directional functions. For smaller organizations, there is often only one layer of middle management, but larger enterprises can see senior and juniorlevelswithin this middle section.
The roles and responsibilities of the middle level of management can be summarized as follows:
- Executing the plans of the organization in accordance with the policies and directives laid out by the top management level.
- Forming plans for the sub-units of the organization that they supervise.
- Participating in the hiring and training processes of lower-level management.
- Interpreting and explaining the policies from top-level management to lower-level management.
- Sending reports and data to top management in a timely and efficient manner.
- Evaluating the performance of junior managers.
- Inspiring lower level managers towards improving their performance.
3. Supervisory, Operative, or Lower Level of Management
Thislevel of managementconsists ofsupervisors, foremen, section officers, superintendents,and all other executives whose work must do largely with HR oversight and the direction of operative employees. Simply put, managers at the lower level are primarily concerned with the execution and coordination of day-to-day workflow that ensure completion of projects and that deliverables are met.
The roles and responsibilities of the lowerlevel of managementcan be summarized as follows:
- Assigning jobs and tasks to various workers.
- Guiding and instructing workers in day-to-day activities.
- Overseeing both the quality and quantity of production.
- Maintaining good relations within lowerlevelsof the organization.
- Acting as mediators by communicating the problems, suggestions, and recommendatory appeals, etc. of workers to the higherlevel of management, and in turn elucidating higher-level goals and objectives to workers.
- Helping to address and resolve the grievances of workers.
- Supervising and guiding their subordinates.
- Taking part in the hiring and training processes of their workers.
- Arranging the necessary materials, machines, tools, and resources, etc. necessary for accomplishing organizational tasks.
- Preparing periodical reports regarding the performance of the workers.
- Upholding discipline, decorum, and harmony within the workplace.
- Improving the enterprise’simage as a whole, dueto their direct contact with the workers.
Levels of Management Summary
An organization can have many different managers, across a variety of titles, authority levels, andlevelsof the management hierarchy that we illustrated above. In order to properly assign roles and responsibilities to all managerial positions, it is important to recognize the key differences between low-level, middle-level, and top-level management.
The key takeaways from this distinction are as follows:
- 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. They act as an intermediary between top-level and low-level management.
- Low-level managers focus on the execution of tasks and deliverables, serving as role models for the employees they supervise.
All businesses are comprised of a vast array of different managerial tasks. When these are coordinated properly, and there is a strong hierarchal manager system in place, an organization can be extremely efficient in creating value through the production of their products, services and overall workflow.
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3 Levels of Management
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As an expert in organizational management and business structures, I can confidently provide insights into the concepts discussed in the article "Independent Contractor or Employee? - Ask a Lawyer!" and the subsequent information on the three levels of management.
Firstly, distinguishing between independent contractors and employees is crucial for legal and organizational purposes. Independent contractors typically work on a project basis, have more control over their work, and are responsible for their own taxes and benefits. Employees, on the other hand, work regularly for an employer, follow set work hours, and receive benefits.
Now, delving into the article's exploration of the three levels of management:
-
Top Level of Management (Administrative, Managerial, or Top Level):
- Definition: This level includes the board of directors and the chief executive or managing director.
- Roles and Responsibilities:
- Setting organizational objectives and broad policies.
- Issuing instructions for department-specific budgets, schedules, and procedures.
- Strategic planning and policymaking.
- Appointing executives for middle-level management.
- Establishing controls for all organizational departments.
- Communicating with the outside world and being accountable to shareholders.
- Providing overall guidance and direction.
-
Middle Level of Management (Executive or Middle Level):
- Definition: Comprising branch and departmental managers.
- Roles and Responsibilities:
- Executing organizational plans according to top-level directives.
- Formulating plans for sub-units they supervise.
- Participating in hiring and training processes for lower-level management.
- Interpreting and explaining top-level policies to lower-level management.
- Sending reports to top management.
- Evaluating the performance of junior managers.
- Inspiring lower-level managers to improve performance.
-
Lower Level of Management (Supervisory, Operative, or Lower Level):
- Definition: Includes supervisors, foremen, section officers, superintendents, and other executives dealing with HR oversight and direction of operative employees.
- Roles and Responsibilities:
- Assigning jobs and tasks to workers.
- Guiding and instructing workers in day-to-day activities.
- Overseeing the quality and quantity of production.
- Maintaining good relations within lower levels of the organization.
- Acting as mediators between workers and higher-level management.
- Addressing and resolving workers' grievances.
- Participating in hiring and training processes.
- Upholding discipline and decorum.
- Improving the enterprise’s image through direct contact with workers.
In summary, understanding the distinctions and roles within the three levels of management is vital for effective organizational functioning. Top-level managers focus on strategic planning, middle-level managers execute plans, and lower-level managers ensure day-to-day operations run smoothly. This hierarchical structure contributes to organizational efficiency and goal achievement.