The level of management is defined as the vertical rank of the managers in the organization. Managers of each level have different tasks and responsibilities. There is three distinct level of management in the organization;
- Top(Executive) Level Management (
- Middle Level of management
- lower (first-line or supervisory) level management.
The authority flows from top level to middle level and middle level to the lower level of management. And after achieving the objective, the Lower-level report to the middle-level management and the middle-level management report to the top-level management.
Top level management
Those managers who are working in top-level management are known as top-level managers. Top-level management is also known as executive management. A minimum number of top executives lead the entire organization (such executives are chairman, managing director, or general manager). This level of management is responsible for the welfare and development of the organization. Top-level managers are concerned not only with the organization but also with the interaction between the organization and its internal environment. Top-level take responsibility for the organization’s success and failure.
The following are the major function of top-level management;
- It main job is to establish mission and goals, as well as the general operating policies of the organization.
- It sets up organizational structure to complete the work in efficient and also in systematic manner.
- Top management appoints departmental managers and guides them to do their works.
- It excise overall control to all the authorities of the organization.
- They emphasize the growth, survival and overall effectiveness of the organization
- It evaluates and reviews the performance of all departments and take necessary steps to achieve organizational objectives.
Middle level Management
Those managers who are working in middle-level management, known as middle-level managers. Such managers; marketing managers, human resources managers, finance managers, etc. The middle-level management lies between the top and operational (lower) levels of management. It is also called tactical management. The middle level is largely responsible for implementing strategic plans. It performs the job according to instructions provided by the top executives.
The following are the function of middle-level management;
- It plays the role of mediator between top level management and first line of management.
- It prepares departmental plans and strategy on the basis of guidance and information from top level of management.
- Middle level management delegates authority and responsibility to the first line management. So they can perform their work effectively and efficiently.
- It makes provision of training, workshop, seminar and other activities for the development of working efficiency of the employee.
- It submits report of achievement of work and recommended value suggestion to the top level for the overall development of the organization
Lower level Management
Those managers who are working in lower-level management, known as lower-level managers. The common job titles of lower-level management are supervisor, foreman, etc. The lower level management level, also known as the first-line or operational level of management. It is largely responsible for carrying out the day-to-day activities within the organization.
The following are the function of lower-level management;
- It makes day-to-day plans to implement plans laid-down by middle level of management.
- It distributes responsibilities and duties to the employee.
- Lower level management provides necessary instruction and guidance to do the work in the best possible way.
- It facilities to operate and create better environment for work.
- It submits the report of achievement of performance to the middle level of management.
Interaction between three level of Management
Top management establishes the policies, plans, and objectives of the organization as well as a general budget framework under which the various departments will operate. After that, these factors are passed down to the middle-level management. And then middle-level management issues the specific schedules and measurement yardsticks to the operating level to achieve the plans and objectives. The operating level has the job of producing goods and services required to meet the overall organization objectives. After completing the objective lower-level report to the middle-level management and middle-level management report to top-level management.