Boundless Business

Learn about the three key management levels—top, middle, and low—in a business hierarchy. Understand their roles, responsibilities, and how they work together to lead, plan, and supervise within an organization.

Daniel Miller
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Boundless BusinessManagementTypes o f ManagementManagement Levels: A Hierarchical ViewAn organization can have many different managers, across many different titles, authority levels, and levels of the management hierarchy.Learning ObjectivesRecognize the difference between low-level, middle-level and top-level managementKey TakeawaysKey PointsThe three levels of management typically found in an organization are low-level management, middle-level management, and top-levelmanagement.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. These managers act at anintermediary between top-level management and low-level management.Low-level managers focus o n controlling and directing. They serve as role models for the employees they supervise,Key Termshierarchy:Any group of objects ranked so that every one but the topmost is subordinate to a specified one above it.manager:A person whose j o b is to manage something, such as a business, a restaurant, o r a sports team,board o f directors:A group of people, elected by stockholders, to establish corporate policies, and make management decisions,t o p management:company employees responsible for controlling and overseeing the entire organizationm i d d l e management:company employees that are accountable for controlling and overseeing a departmentManagement Levels: An OverviewMost organizations have three management levels:Low-level managers;Middle-level managers; andTop-level managers.

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These managers are classified i n a hierarchy of authority, and perform different tasks. In many organizations, the number of managers i n everylevel resembles a pyramid.Below, you'll find the specifications of each level's different responsibilities and their likely j o b titles.Top-level managersThe board of directors, president, vice-president, and CEO are all examples of top-level managers.These managers are responsible for controlling and overseeing the entire organization. They develop goals, strategic plans, company policies,and make decisions on the direction of the business.In addition, top-level managers play a significant role in the mobilization o f outside resources.Top-level managers are accountable to the shareholders and general public.Middle-level managersGeneral managers, branch managers, and department managers are all examples of middle-level managers. They are accountable to the topmanagement for their department's function.Middle-level managers devote more time to organizational and directional functions than top-level managers. Their roles can be emphasized as:Executing organizational plans in conformance with the company's policies and the objectives of the top management;Defining and discussing information and policies from t o p management to lower management; and most importantlyInspiring and providing guidance to low-level managers towards better performance.Some of their functions are as follows:Designing and implementing effective group and intergroup work and information systems;Defining and monitoring group-level performance indicators;Diagnosing and resolving problems within and among work groups;Designing and implementing reward systems supporting cooperative behavior.
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