3 Levels of Management: Definition, Functions, Examples, & Importance

What are the Hierarchy/Levels of Management?

The management hierarchy or levels of management refers to the arrangement of managerial positions in the organization. This practice is brought to divide authority and responsibility among different levels.

Managing different levels is essential to systematically running organizational operations. These managerial levels are based on their positions enjoying authority, being responsible to fulfill the given duties, and bringing coordination and mutual understanding to their levels so as to do work as effectively and efficiently as they are appointed for.

Different levels represent different managers appointed to each level. Based on levels they have different roles to perform. It further makes the managers clear what duties and power they hold.

What are the Three Levels of Management?

Top-level, middle-level and lower-level management are the three levels found in the organization. They are responsible to perform their level-wise duties with given authorities.

3 levels of management do perform level-wise duties but their ultimate goal is to support the achievement of overall organizational goals and objectives.

These managerial levels are different from each other in terms of the roles they perform and the power they hold which are mentioned below.

Top-Level Management

Top-level management is the head of the organization also known as the organization’s administrative body. They have the authority and responsibility relating to maintaining the overall function, image, direction, and performance of the organization.

As the head of the family (organization), top-managers does make formal long-term plans and strategies, bring coordination to the organization, manage organizational resources, and guide & control other lower managerial positions.

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As said they have a responsibility to change or maintain the future of the organization so as they enjoy the formal power to supervise and control middle and lower managerial hierarchies in order to realize the expected future.

Top managers are keen on their qualifications and performing given tasks. They are appointed by such as shareholders and management committees. And, are accountable to them for the overall performance of the firm.

Some major functions of top-level management include:

  • Top-level managers set the overall direction and objective of the organization.
  • Makes plans, policies, and strategies aligning organizational resources and middle-lower managerial competencies to best carry out them.
  • Direct, coordinate, and control all the organizational members.
  • Evaluate and review the overall performance of the organization so as to make plans for implementation in the right direction and achievement of expected goals and objectives.
  • Represent and maintain the organization’s image in the outside world.

Some examples of top-level management include:

  • Chief Executive Officer (CEO)
  • Chairman
  • Vice-Chairman
  • General Manager (GM)
  • Deputy General Manager (DGM)
  • President
  • Managing Director (MD), etc.

Middle-Level Management

Middle-level management is also called the executory level. Middle-level managers are responsible to execute plans and policies given by top managers. They are also given adequate authority and responsibility to execute the given tasks.

Middle-level management consists of functional heads of different departments and is responsible for preparing and implementing departmental plans. Middle-level managers are different departmental heads of the organization. They are the largest group of managers found in the organization.

This level is also known as the backbone of the organization. They subordinate to top management and direct lower-level management. They have a significant role in the execution of plans formulated by top managers as they play a mediator role between top management and lower management in terms of plan execution, progress report submission, and controlling lower managers who actually perform the tasks.

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This level of management can also be of two types in some big organizations such as junior and senior middle-level management. The department heads come under the senior level and branch heads are considered junior level.

The other tasks of middle-level managers include:

  • Middle managers play a mediator role between the top and lower management.
  • Execute the plans and strategies according to the instruction given by top management.
  • Make plans and policies for departmental goals.
  • Control and train lower-level managers.
  • Submit progress reports and provide valuable suggestions to top managers.
  • Conduct different training programs and inspire junior levels to work with ease and efficiency.

Examples of middle-level managers include different department heads like,

  • Production Manager
  • Marketing Manager
  • Accountant Manager
  • Finance Manager
  • Procurement Manager

Lower-Level Management

Lower-level management is also called the operating level which is directly involved in the implementation of plans. Lower managers have direct relations with operative employees. They are responsible for the implementation of works laid down by senior levels management mainly by the middle level.

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The lower-level management consists of titles like,

  • Supervisors
  • Foreman
  • Sales Officers
  • Accounts Officers
  • Superintendent
  • Section Officer
  • and, other Operational Heads.

Lower-level managers are strongly responsible for effectively and efficiently conducting of day to day activities which ensures short-term goals achievement.

They are given the necessary authority and responsibility by the middle managers to command operative employees. They further train, motivate, control, and inspire working employees. They communicate the problems faced by workers to senior managers.

They are mainly responsible to manage working employees and strengthen the workforce of the organization to effectively and efficiently execute given tasks. They further manage the necessary tools and equipment to successfully work to be done.

Some major functions of middle-level managers include:

  • Arranging necessary tools, machines, equipment, and others for the workers.
  • Maintain a healthy relationship and discipline in the organization.
  • Classifying and assigning duties to first-line managers.
  • Directing activities and solving the problems of workers.
  • Giving necessary training and inspiration workes.
  • Reporting success or failure of work to middle-level management.
  • Maintaining the morale of employees.
  • and maintaining short-term activities which ultimately help the achievement of longer goals.

What is the Importance of Different Levels of Management in the Organization?

It is obvious that a single manager can not do all the work of the top, middle, and lower managers as effectively and efficiently as the individual managers do. The significance of having different levels of management in the workplace may be pointed out below:

  • It makes roles and responsibility clarification among organizational members.
  • Bring effectiveness and efficiency to the working of the organization
  • Lowers the burdens and confusion among managers they face while handling all the organizational activities alone.
  • Maintains hierarchy in the organization.
  • Maintains discipline and cooperation in the workplace.
  • May help in the effective and efficient accomplishment of organizational goals and objectives.

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