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.
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:
- Top-Level Management/ Administrative level
- Middle-Level Management/ Executory
- Low-level Management/ Supervisory
The levels of Management and Their Functions are Discussed Below:
Top Level Management
The Top-Level Management is also referred to as the administrative level. They coordinate services and are keen on planning. The top-level management is made up of the Board of Directors, the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the Chief Operating Officer (COO) or the President and the Vice President.
The Top level management controls the management of goals and policies and the ultimate source of authority of the organization. They apply control and coordination of all the activities of the firm as they organize the several departments of the enterprise which would include their budget, techniques, and agendas.
The Top-level management is accountable to the shareholders for the performance of the organization. There are several functions performed by the top-level management, but three of them are the most important, and they are:
- To lay down the policies and objective of the organization
- Strategizing the plans of the enterprise and aligning competent managers to the departments or middle level to carry them out.
- Keeping the communication between the enterprise and the outside world.
Middle Level of Management
The Middle level Management is also referred to as the executory level, they are subordinates of the top-level management and are responsible for the organization and direction of the low-level management. They account for the top-level management for the activities of their departments.
The middle-level managers are semi- executives and are made up of the departmental managers and branch manager. They could be divided into senior and junior middle-level management if the organization is big. They coordinate the responsibilities of the sub-unit of the firm and access the efficiency of lower-level managers.
The middle-level managers are in charge of the employment and training of the lower levels. They are also the communicators between the top level and the lower level as they transfer information, reports, and other data of the enterprise to the top-level. Apart from these, there are three primary functions of the middle-level management in the organization briefed below:
- To carry out the plans of the organization according to policies and directives laid down by the top level management.
- To organize the division or departmental activities.
- To be an inspiration or create motivation for junior managers to improve their efficiency.
Lower Level of Management
The lower level Management is also referred to as the supervisory or the operative level of managers. They oversee and direct the operative employees. They spend most of their time addressing the functions of the firm, as instructed by the managers above them.
The lower level managers are the first line of managers as they feature at the base of operations, so they are essential personnel that communicates the fundamental problems of the firm to the higher levels. This management level is made up of the foreman, the line boss, the shift boss, the section chief, the head nurse, superintendents, and sergeants. They are the intermediary, they solve issues amidst the workers and are responsible for the maintenance of appropriate relationship within the organization. They are also responsible for training, supervising and directing the operative employees.
The lower level managers represent the management to the operative workers as they ensure discipline and efficiency in the organization. The duty of inspiration and encouragement falls to them, as they strengthened the workforce. They also organize the essential machines, tools and other materials required by the employees to get their job done.
Briefed below are the primary functions of the lower-level management:
- To allocate tasks and responsibilities to the operative employees.
- To ensure quality and be responsible for the production quantity.
- To communicate the goals and objective of the firm laid down by the higher level
- managers to the employees and also the suggestions, recommendations, appeals and information concerning employee problems to the higher level managers.
- To give instruction and guided direction to workers on their day to day jobs.
- To give periodic reports of the workers to the higher level managers.