3 Management Levels in Organizational Hierarchy

3 levels of management in organizational hierarchy; (1) Top-level, (2) middle-level, (3) lower level. Top-level managers are responsible for setting organizational goals. Middle-level managers are engaged in carrying out their goals. Lower-level managers are responsible for running every work unit in an organization.

Top-level managers are responsible for setting goals, creating plans and supervise the entire organization.

Middle-level managers are engaged in diverting organizational activities to attain the goals set by top management.

The lower-level managers are running every work unit in the organization and carrying out the essential tasks. They are the foot soldiers of the company.

3 Levels of Management

3 Management Levels in Organizational Hierarchy

The job of a manager is practically the same. But there is a difference in a manager’s role depending on the skills, ability, strength, experience, intellectual ability, etc.

So, in the organizational hierarchy, we see three levels of management. Each level has a different set of jobs and responsibilities but all are toward fulfilling a goal.

Top-Level Management

Top-level managers, or top managers, are also called senior management or executives. Leaders of the organization are setting in top-level management.

These individuals are at the top one or two levels in an organization, and hold titles such as: Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operational Officer (COO), Chief Information Officer (CIO), Chairperson of the Board, President, Vice president, Corporate head.

  • Top-level managers make decisions affecting the entirety of the firm.
  • Top managers do not direct the day-to-day activities of the firm; rather, they set goals for the organization and direct the company to achieve them.
  • Top managers are ultimately responsible for the performance of the organization, and often, these managers have very visible jobs.

Top-level managers require having very good conceptual and decision-making skills.

Middle-Level Management

Middle-level managers, or middle managers, are those in the levels below top managers.

Middle managers’ job titles include General Manager, Plant manager, Regional manager, and Divisional manager.

  • Middle-level managers are responsible for carrying out the goals set by top management. They do so by setting goals for their departments and other business units.
  • Middle managers control, motivate and assist first-line managers to achieve business objectives.
  • Middle managers also communicate upward, by offering suggestions and feedback to top managers. Because middle managers are more involved in the day-to-day workings of a company, they may provide valuable information to top managers to help improve the organization’s bottom line.

Middle-level managers’ job’s perfection depends very much on this communication and interpersonal skills.

Lower-Level Management

First-level managers are also called first-line managers, shop-level managers, or supervisors.

These managers have job titles such as office manager, Shift Supervisor, Department Manager, Foreperson, Crew leader, Store manager.

  • First-line managers are responsible for the daily management of line workers—the employees who produce the product or offer the service.
  • There are first-line managers in every work unit in the organization. Although first-level managers typically do not set goals for the organization, they have a very strong influence on the company. These are the managers that most employees interact with daily, and if the managers perform poorly, employees may also perform poorly, may lack motivation, or may leave the company.

A First-level manager requires having technical skill knowledge for the particular work that he is supervising.