Understanding the Three Key Levels of Organizational Management

Management typically refers to the administration of corporations, many of which operate across multiple product lines or countries. To effectively oversee such vast operations, various levels of management are required. These levels represent distinct layers of command within an organization, enabling work to be divided and ensuring that the broader vision established by top-level management is executed thoroughly by lower-level executives.

From the above-mentioned discussion, it can be discerned that there are three levels of management :

Top level management

Middle-level management

Lower level management or executive-level management

Top Level Management

Administrative management, also referred to as the top-level of management, is responsible for overseeing and directing the overall strategy of an organization. However, they typically do not make day-to-day decisions and instead focus on long-term planning and goal-setting for the organization.

At the highest level of the organizational hierarchy, the president, vice president, board of directors, COO, CEO, and CFO hold the weightiest and most critical duties. These individuals bear the responsibility of determining the organization's objectives, devising strategic plans, and formulating policies.

The highest level of management within an organization holds the ultimate authority. It serves as the central hub that oversees and coordinates the activities of all departments. This level of management not only exercises control over departmental activities but also manages departmental budgets, agendas, and operational techniques.

The members of the top-level management are responsible for representing the organization to the market. They are accountable to the shareholders and strive to maintain a favorable reputation for the organization. Let's delve into the various functions of top-level management within an organization.

Functions of top-level management

Top-level management provides guidance and direction to the employees of the organization.

It decides the policies and objectives of the organization.

It is responsible for the performance of the organization and is answerable towards the shareholders of the organization.

Gives instructions regarding the budget, procedures, and schedules, etc. of all departments.

Coordinates the activities of all departments and keeps control over them.

Is responsible for hiring executives for middle-level management.

Is responsible for maintaining the image of the organization in the market and keep contact with the outside world.

Ensure that the organization has the necessary resources and infrastructure to carry out its daily operations effectively. This includes making important decisions regarding fixed assets and other key resources. Ultimately, the organization's survival and prosperity rests on the shoulders of this individual, who must constantly strive to promote growth and stability.

Middle Level Management

The level of management below the top level is known as the executory level or middle management. Individuals at this level are responsible for overseeing and directing the lower level of management, while reporting to their superiors at the top level. They serve as a critical communication bridge between the two levels, receiving instructions from the top and implementing them at the lower level.

At the middle level of management, departmental and branch managers are responsible for ensuring maximum output from their respective departments. This can be a challenging task as they must balance the demands of upper management with the needs of their team. Within this level, there are senior and junior managers with varying levels of experience and responsibility.

The middle management team is responsible for overseeing the employees at the lower level of management. This includes recruiting and providing job-specific training.

Additionally, they play a crucial role in facilitating communication between the top and lower levels of management, acting as a vital link between the two.

They play a crucial role in relaying instructions from top management to lower-level employees and collect pertinent data and reports from lower management to report back to the higher-ups.

Functions of a middle level of management

The middle-level management executives manage the executives of the low level of management.

They are responsible for taking the maximum output from the low level of management.

They are responsible and answerable for the performance of the respective departments they manage.

They make a plan for the departments they are responsible for.

They evaluate the performance of employees of junior level and forward their work performance report to the top level of management.

They take part in the recruitment and training process for junior-level employees.

They forward the policies obtain from top-level management to the employees of low level.

They are a common connection between top-level management and low-level management.

They not only control but also motivate employees to achieve their goals.

The executives of the middle level of management coordinate with other departments in the organization.

Low Level Management

Low level of management is the last level of management, and they are also referred to as the supervisory or operative level of management.

These managers are closely involved with their employees and focus on managing their day-to-day activities. Their primary responsibility is to ensure that the department operates smoothly in accordance with the directives set by top management. Additionally, they serve as a liaison between their team and the middle management, relaying any issues or concerns that arise.

They collaborate with their staff to find resolutions to any issues that arise. Rather than escalating problems to higher management, they mediate and resolve conflicts between employees. Additionally, lower-level executives report to middle management rather than directly to the top level.

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The low level of management is responsible for providing training to employees and ensuring they work efficiently. Operative employees can directly approach first line managers if they lack necessary equipment or tools, and the managers ensure the employees have everything they need to complete their work.

Functions of the low-level management

Low level of managers give instructions to the workers and guide them for day-to-day activities.

They are responsible for dividing work and tasks among the employees.

They build the image of the organization as they are the first line of the manager and have direct contact with employees.

They motivate employees and encourage them to use their full potential.

They make sure that the production process runs without any interruption and also the quality of the production process.

They prepare reports of the performance of employees and present them to the upper level of management.

They are responsible for creating discipline among the employees who work in their department.

They settle disputes among the employees.

They provide training to the employees and help them in their work whenever they need.

They are responsible for arranging material, machinery, and tools required for the production process.