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.
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Boundless Business
Management
Types o f Management
Management Levels: A Hierarchical View
An organization can have many different managers, across many different titles, authority levels, and levels of the management hierarchy.
Learning Objectives
Recognize the difference between low-level, middle-level and top-level management
Key Takeaways
Key Points
The three levels of management typically found in an organization are low-level management, middle-level management, and top-level
management.
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 an
intermediary 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 Terms
hierarchy: 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 organization
m i d d l e management: company employees that are accountable for controlling and overseeing a department
Management Levels: An Overview
Most organizations have three management levels:
Low-level managers;
Middle-level managers; and
Top-level managers.
Management
Types o f Management
Management Levels: A Hierarchical View
An organization can have many different managers, across many different titles, authority levels, and levels of the management hierarchy.
Learning Objectives
Recognize the difference between low-level, middle-level and top-level management
Key Takeaways
Key Points
The three levels of management typically found in an organization are low-level management, middle-level management, and top-level
management.
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 an
intermediary 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 Terms
hierarchy: 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 organization
m i d d l e management: company employees that are accountable for controlling and overseeing a department
Management Levels: An Overview
Most organizations have three management levels:
Low-level managers;
Middle-level managers; and
Top-level managers.
These managers are classified i n a hierarchy of authority, and perform different tasks. In many organizations, the number of managers i n every
level resembles a pyramid.
Below, you'll find the specifications of each level's different responsibilities and their likely j o b titles.
Top-level managers
The 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 managers
General managers, branch managers, and department managers are all examples of middle-level managers. They are accountable to the top
management 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 importantly
Inspiring 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.
level resembles a pyramid.
Below, you'll find the specifications of each level's different responsibilities and their likely j o b titles.
Top-level managers
The 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 managers
General managers, branch managers, and department managers are all examples of middle-level managers. They are accountable to the top
management 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 importantly
Inspiring 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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Subject
Business Management